Document:

Exhibit 10.3

 

Execution Version

 

SECURITY AGREEMENT

 

THIS SECURITY AGREEMENT, dated
as of November 1, 2021, among Roller Bearing Company of America, Inc., a Delaware corporation (“Borrower”), RBC Bearings
Incorporated, a Delaware corporation (“Holdings”), each of the Subsidiaries listed on the signature pages hereto or
that becomes a party hereto pursuant to Section 8.14 (each such entity being a “Subsidiary Grantor” and, collectively,
the “Subsidiary Grantors”; the Subsidiary Grantors, Holdings and the Borrower are referred to collectively as the “Grantors”),
and Wells Fargo Bank, National Association, as collateral agent (in such capacity, the “Collateral Agent”) for its
benefit and the benefit of the Secured Parties.

 

WITNESSETH:

 

WHEREAS, the Borrower is a party
to the Credit Agreement, dated as of the date hereof (as the same may be amended, restated, supplemented or otherwise modified, refinanced
or replaced from time to time, the “Credit Agreement”), among Holdings, the Borrower, the Lenders from time to time
party thereto and Wells Fargo Bank, National Association, as Administrative Agent and as Collateral Agent;

 

WHEREAS, (a) pursuant to the
Credit Agreement, the Lenders have severally agreed to make Loans to the Borrower, the Swingline Lender has agreed to make Swingline Loans
and the Letter of Credit Issuer has agreed to issue Letters of Credit for the account of the Borrower and the Restricted Subsidiaries
upon the terms and subject to the conditions set forth therein and (b) one or more Cash Management Banks or Hedge Banks may from
time to time enter into Secured Cash Management Agreements or Secured Hedge Agreements with Holdings and/or its Subsidiaries;

 

WHEREAS, pursuant to the Guarantee
dated as of the date hereof (as amended, restated, supplemented or otherwise modified from time to time, the “Guarantee”),
each Grantor party thereto has agreed to unconditionally and irrevocably guarantee, as primary obligor and not merely as surety, to the
Collateral Agent for the benefit of the Secured Parties the prompt and complete payment and performance when due (whether at the stated
maturity, by acceleration or otherwise) of the Obligations;

 

WHEREAS, each Grantor is a Guarantor
or the Borrower;

 

WHEREAS, the proceeds of the
Loans, the issuance of the Letters of Credit and the provision of Secured Cash Management Agreements and Secured Hedge Agreements will
be used in part to enable the Borrower to make valuable transfers to the Grantors in connection with the operation of their respective
businesses;

 

WHEREAS, each Grantor acknowledges
that it will derive substantial direct and indirect benefit from the making of the Loans and the Swingline Loans and the issuance of the
Letters of Credit; and the provision of such Cash Management Agreements and Secured Hedge Agreements;

 

WHEREAS, it is a condition precedent
to the obligation of the Lenders to make their respective Loans, the Swingline Lender to make Swingline loans and to the obligation of
the Letter of Credit Issuer to issue Letters of Credit
under the Credit Agreement that the Grantors shall have executed and delivered this Security Agreement to the Collateral Agent for its
benefit and the benefit of the Secured Parties;

 

     

     

    

 

NOW, THEREFORE, in consideration
of the premises and to induce the Administrative Agent, the Collateral Agent and the Lenders to enter into the Credit Agreement and to
induce the Lenders to make their respective Loans, the Swingline Lender to make Swingline Loans and to induce the Letter of Credit Issuer
to issue Letters of Credit for the account of the Borrower and the Restricted Subsidiaries under the Credit Agreement and to induce one
or more Lenders or Affiliates of Lenders to enter into Secured Cash Management Agreements or Secured Hedge Agreements with Holdings and/or
its Subsidiaries, the Grantors hereby agree with the Collateral Agent, for its benefit and the benefit of the Secured Parties, as follows:

 

1. 
Defined Terms.

 

(a) 
Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in
the Credit Agreement. Sections 1.2 and 1.5 of the Credit Agreement are incorporated herein by reference, mutatis mutandis.

 

(b) 
Terms used herein without definition that are defined in the UCC have the meanings given to them in the UCC, including the following
terms (which are capitalized herein): Account, Chattel Paper, Commercial Tort Claims, Commodity Contract, Deposit Accounts, Documents,
Fixtures, Goods, Instruments, Inventory, Letter-of-Credit Right, Securities, Securities Accounts, Security Entitlement, Supporting Obligation
and Tangible Chattel Paper.

 

(c) 
The following terms shall have the following meanings:

 

“Borrower”
shall have the meaning assigned to such term in the recitals hereto.

 

“Collateral”
shall have the meaning provided in Section 2.

 

“Collateral Account”
shall mean any collateral account established by the Collateral Agent as provided in Section 5.1 or Section 5.3.

 

“Collateral Agent”
shall have the meaning provided in the preamble to this Security Agreement.

 

“Control”
shall mean “control,” as such term is defined in Section 9-104 or 9-106, as applicable, of the UCC.

 

“Copyright License”
shall mean any written agreement, now or hereafter in effect, granting any right to any third party under any Copyright now or hereafter
owned by any Grantor or that any Grantor otherwise has the right to license, or granting any right to any Grantor under any Copyright
now or hereafter owned by any third party, and all rights of any Grantor under any such agreement, including those material inbound exclusive
licenses in third party owned U.S. registered Copyrights listed on Schedule 2.

 

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“Copyrights”
shall mean, with respect to any Person, all of the following now owned or hereafter acquired by such Person: (i) all copyright rights
in any work subject to the copyright laws of the United States or any other country, whether as author, assignee, transferee or otherwise,
and (ii) all registrations and applications for registration of any such copyright in the United States or any other country, including
registrations, recordings, supplemental registrations and pending applications for registration in the United States Copyright Office,
including those U.S. registered copyrights owned by any Grantor and listed on Schedule 1.

 

“Credit Agreement”
shall have the meaning assigned to such term in the recitals hereto.

 

“Equipment”
shall mean all “equipment,” as such term is defined in Article 9 of the UCC, now or hereafter owned by any Grantor or to which
any Grantor has rights and, in any event, shall include all machinery, equipment, furnishings, movable trade fixtures and vehicles now
or hereafter owned by any Grantor or to which any Grantor has rights and any and all Proceeds, additions, substitutions and replacements
of any of the foregoing, wherever located, together with all attachments, components, parts, equipment and accessories installed thereon
or affixed thereto.

 

“Excluded
Property” shall mean (i) any Vehicles and other assets subject to certificates of title, (ii) Letter-of-Credit Rights
except to the extent perfection of a security interest therein may be accomplished by filing financing statements in appropriate
form in the applicable jurisdiction under the UCC, (iii) any property that is subject to a Lien permitted pursuant to clauses (6)
(solely with respect to clause (d) of Section 10.1 of the Credit Agreement) and (9) of the definition of “Permitted
Liens” in the Credit Agreement if the contract or other agreement in which such Lien is granted (or the documentation
providing for such Indebtedness) prohibits the creation of any other Lien on such property (other than to the extent that any such
prohibition would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the UCC (or any successor provision
or provisions) of any relevant jurisdiction or any other applicable law); provided that such property shall be
Excluded Property only to the extent and for so long as such prohibition is in effect; provided further that
immediately upon the repayment of all Indebtedness secured by such Lien, such Grantor shall be deemed to have granted a Security
Interest in all the rights and interests with respect to such property, (iv) all leasehold interests in real property, (v) any fee
owned real property with a value, on an individual basis, of less than $30,000,000, (vi) any commercial tort claims with a value, on
an individual basis, of less than $20,000,000, (vii) any foreign assets other than to the extent a security interest therein may be
accomplished by filing of financing statements in appropriate form in the applicable jurisdiction under the UCC, (viii) any
intent-to-use trademark application prior to the filing of a “Statement of Use” or “Amendment to Allege Use”
with respect thereto and (ix) any lease, license or other agreement or any property subject to a purchase money security interest,
capital lease obligation or similar arrangement, in each case permitted under the Loan Documents to the extent that a grant of a
security interest therein would violate or invalidate such lease, license or agreement or purchase money, capital lease or similar
arrangement or create a right of termination in favor of any other party thereto (other than the Borrower or a Guarantor) after
giving effect to the applicable anti-assignment provisions of the Uniform Commercial Code), other than proceeds and receivables
thereof, the assignment of which is expressly deemed effective under the UCC notwithstanding such
prohibition; provided that (x) the foregoing limitation shall not affect, limit, restrict or impair the grant by
such Grantor of a Security Interest pursuant to this Security Agreement in any Account or any money or other amounts due or to
become due under any such contract, agreement, instrument or indenture and (y) such property shall be Excluded Property only to the
extent and for so long as such prohibition is in effect; provided further that proceeds and products from any and
all of the of the foregoing that would constitute Excluded Property shall also not be considered Collateral and proceeds and
products from any and all of the of the foregoing that do not constitute Excluded Property shall be considered Collateral.

 

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“General Intangibles”
shall mean all “general intangibles” as such term is defined in Article 9 of the UCC and, in any event, including with respect
to any Grantor, all contracts, agreements, instruments and indentures in any form, and portions thereof, to which such Grantor is a party
or under which such Grantor has any right, title or interest or to which such Grantor or any property of such Grantor is subject, as the
same may from time to time be amended, supplemented or otherwise modified, including (a) all rights of such Grantor to receive moneys
due and to become due to it thereunder or in connection therewith, (b) all rights of such Grantor to receive proceeds of any insurance,
indemnity, warranty or guarantee with respect thereto, (c) all claims of such Grantor for damages arising out of any breach of or default
thereunder and (d) all rights of such Grantor to terminate, amend, supplement, modify or exercise rights or options thereunder, to perform
thereunder and to compel performance and otherwise exercise all remedies thereunder.

 

“Grantor”
shall have the meaning assigned to such term in the recitals hereto.

 

“Guarantee”
shall have the meaning assigned to such term in the recitals hereto.

 

“Holdings”
shall have the meaning assigned to such term in the recitals hereto.

 

“Intellectual Property”
shall mean all U.S. and foreign intellectual property, whether owned or licensed, including all (i) (a) Patents, inventions, processes,
developments, technology and know-how; (b) Copyrights including Copyrights in graphics, advertising materials, labels, package designs
and photographs; (c) Trademarks; (d) trade secrets, confidential, proprietary or non-public information and (ii) all rights, priorities
and privileges related thereto and all rights to sue at law or in equity for any infringement, misappropriation, dilution, violation or
other impairment thereof, including the right to receive all Proceeds therefrom.

 

“Intercreditor Agreement”
shall have the meaning assigned to such term in Section 8.1.

 

“Investment Property”
shall mean all Securities (whether certificated or uncertificated), Security Entitlements and Commodity Contracts of any Grantor (other
than Excluded Stock and Stock Equivalents), whether now or hereafter acquired by any Grantor.

 

“Patent License”
shall mean any written agreement, now or hereafter in effect, granting to any third party any right to make, use or sell any invention
on which a Patent, now or hereafter owned by any Grantor or that any Grantor otherwise has the right to license, is in existence, or granting
to any Grantor any right to make, use or sell any invention on which a Patent, now or hereafter owned by any third party, is in existence,
and all rights of any Grantor under any such agreement, including those material inbound exclusive licenses in third party owned U.S.
Patents and applications therefor listed on Schedule 4.

 

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“Patents”
shall mean, with respect to any Person, all of the following now owned or hereafter acquired by such Person: (a) all letters patent of
the United States or the equivalent thereof in any other country, all registrations and recordings thereof, and all applications for letters
patent of the United States or the equivalent thereof in any other country, including registrations, recordings and pending applications
in the United States Patent and Trademark Office or any similar offices in any other country, and (b) all reissues, continuations, divisions,
continuations-in-part, renewals or extensions thereof, and the inventions disclosed or claimed therein, including the right to make, use
and/or sell the inventions disclosed or claimed therein, including those U.S. patents and applications therefor owned by any Grantor and
listed on Schedule 3.

 

“Proceeds”
shall mean all “proceeds” as such term is defined in Article 9 of the UCC and, in any event, shall include with respect to
any Grantor, any consideration received from the sale, exchange, license, lease or other disposition of any asset or property that constitutes
Collateral, any value received as a consequence of the possession of any Collateral and any payment received from any insurer or other
Person or entity as a result of the destruction, loss, theft, damage or other involuntary conversion of whatever nature of any asset or
property that constitutes Collateral, and shall include (a) all cash and negotiable instruments received by or held on behalf of the Collateral
Agent, (b) any claim of any Grantor against any third party for (and the right to sue and recover for and the rights to damages or profits
due or accrued arising out of or in connection with) (i) past, present or future infringement of any Patent now or hereafter owned by
any Grantor, or licensed under a Patent License, (ii) past, present or future infringement or dilution of any Trademark now or hereafter
owned by any Grantor or licensed under a Trademark License or injury to the goodwill associated with or symbolized thereby, (iii) past,
present or future infringement of any Copyright now or hereafter owned by any Grantor or licensed under a Copyright License and (c) any
and all other amounts from time to time paid or payable under or in connection with any of the Collateral.

 

“Registered Intellectual
Property” shall mean all Copyrights, Patents and Trademarks issued by, registered with, renewed by or the subject of a pending
application before the United States Patent and Trademark Office or the United States Copyright Office (or any successor office).

 

“Security Agreement”
shall mean this Security Agreement, as the same may be amended, supplemented or otherwise modified from time to time.

 

“Security Interest”
shall have the meaning provided in Section 2.

 

“Short-form Intellectual
Property Security Agreement” shall have the meaning assigned to such term in Section 3.2(b).

 

“Subsidiary Guarantor”
shall have the meaning assigned to such term in the recitals hereto.

 

“Trademark License”
shall mean any written agreement, now or hereafter in effect, granting to any third party any right to use any Trademark now or hereafter
owned by any Grantor or that any Grantor otherwise has the right to license, or granting to any Grantor any right to use any Trademark
now or hereafter owned by any third party, and all rights of any Grantor under any such agreement, including those material inbound
exclusive licenses in third party owned U.S. registered Trademarks and applications therefor listed on Schedule 6.

 

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“Trademarks” shall mean, with respect
to any Person, all of the following now owned or hereafter acquired by such Person: (i) all trademarks, service marks, trade names, corporate
names, company names, business names, fictitious business names, trade styles, trade dress, logos, other source or business identifiers,
designs and general intangibles of like nature, now existing or hereafter adopted or acquired, all registrations and recordings thereof
(if any), and all registration and recording applications filed in connection therewith, including registrations and registration applications
in the United States Patent and Trademark Office or any similar offices in any State of the United States or any other country or any
political subdivision thereof, and all extensions or renewals thereof and (ii) all goodwill associated therewith or symbolized thereby,
including those U.S. registered trademarks and applications therefor owned by any Grantor and listed on Schedule 5 hereto.

 

“UCC” shall
mean the Uniform Commercial Code as from time to time in effect in the State of New York; provided, however, that,
in the event that, by reason of mandatory provisions of law, any of the attachment, perfection or priority of the Collateral Agent’s
and the Secured Parties’ security interest in any Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction
other than the State of New York, the term “UCC” shall mean the Uniform Commercial Code as in effect in such other jurisdiction
for purposes of the provisions hereof relating to such attachment, perfection or priority and for purposes of definitions related to such
provisions.

 

“Vehicles”
shall mean all cars, trucks, trailers, and other vehicles covered by a certificate of title law of any state and all tires and other appurtenances
to any of the foregoing.

 

(d) 
The words “hereof”, “herein”, “hereto” and “hereunder” and words of similar import
when used in this Security Agreement shall refer to this Security Agreement as a whole and not to any particular provision of this Security
Agreement, and Section, subsection, clause and Schedule references are to this Security Agreement unless otherwise specified. The words
“include”, “includes” and “including” shall be deemed to be followed by the phrase “without
limitation”.

 

(e) 
The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms.

 

(f) 
Where the context requires, terms relating to the Collateral or any part thereof, when used in relation to a Grantor, shall refer
to such Grantor’s Collateral or the relevant part thereof.

 

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2. 
Grant of Security Interest.

 

(a)  Each
Grantor hereby bargains, sells, conveys, assigns, sets over, mortgages, pledges, hypothecates and transfers to the Collateral Agent,
for the benefit of the Secured Parties, and grants to the Collateral Agent, for the benefit of the Secured Parties, a lien on and
security interest in (the “Security Interest”), all of its right, title and interest in, to and under all of the
following property now owned or at any time hereafter acquired by such Grantor or in which such Grantor now has or at any time in
the future may acquire any right, title or interest (collectively, the “Collateral”), as collateral security for
the prompt and complete payment and performance when due (whether at the stated maturity, by acceleration or otherwise) of the
Obligations:

 

	 	(i)	all Accounts;
	 	 	 
	 	(ii)	all Chattel Paper;
	 	 	 
	 	(iii)	all Commercial Tort Claims described on Schedule 7 (as such Schedule may be amended from time to time);
	 	 	 
	 	(iv)	all Documents;
	 	 	 
	 	(v)	all Equipment, Fixtures and Goods;
	 	 	 
	 	(vi)	all General Intangibles;
	 	 	 
	 	(vii) 	all Instruments;
	 	 	 
	 	(viii)	all Intellectual Property;
	 	 	 
	 	(ix)	all Inventory;
	 	 	 
	 	(x)  	all Investment Property;
	 	 	 
	 	(xi)	all Letter-of-Credit Rights;
	 	 	 
	 	(xii)	all Money and all Deposit Accounts;
	 	 	 
	 	(xiii) 	all Supporting Obligations;
	 	 	 
	 	(xiv) 	all books and records pertaining to the Collateral; and
	 	 	 
	 	(xv)	the extent not otherwise included, all Proceeds and products of any and all of the foregoing;

 

provided, that (x) the Collateral for
any Obligations shall not include any (A) Excluded Stock and Stock Equivalents with respect to such Obligations, (B) Excluded
Property or (C) assets with respect to which, (1) in the reasonable judgment of the Collateral Agent and the Borrower (as agreed in
writing), the cost or other consequences of granting a security interest in favor of the Secured Parties under the Security
Documents shall be excessive in view of the benefits to be obtained by the Lenders therefrom, or (2) granting a security interest in
such assets in favor of the Secured Parties under the Security Documents would result in materially adverse tax consequences or
would require obtaining the consent of any governmental authority, in each case as reasonably determined by the Borrower in
consultation with the Administrative Agent, and (y) none of the items included in clauses (i) through (xv) above shall constitute
Collateral to the extent (and only to the extent) that the grant of the Security Interest therein would violate any Requirement of
Law applicable to such Collateral; provided, however, that Collateral shall include any Proceeds, substitutions or replacements of
any assets referred to in the foregoing clauses (x) and (y) (unless such Proceeds, substitutions or replacements would constitute
assets referred to in clause (x) or (y)). No Grantor shall be required to take actions to (x) perfect security interests in
Letter-of Credit Rights except to the extent perfection of a security interest therein may be accomplished by filing of financing
statements in appropriate form in the applicable jurisdiction under the UCC or (y) enter into control agreements and perfection by
“control” (other than in respect of certificated pledged collateral) with respect to any Collateral (including, without
limitation, deposit accounts, commodities accounts or securities accounts) of the Grantors, as applicable.

 

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(b) 
Each Grantor hereby irrevocably authorizes the Collateral Agent and its Affiliates, counsel and other representatives, at any time
and from time to time, to file or record financing statements, amendments to financing statements and, with notice to the applicable Grantors,
other filing or recording documents or instruments with respect to the Collateral in such form and in such offices as the Collateral Agent
reasonably determines appropriate to perfect the Security Interests of the Collateral Agent under this Security Agreement, and such financing
statements and amendments may describe the Collateral covered thereby as “all assets”, “all personal property now owned
or hereafter acquired” or words of similar effect, provided that with respect to fixtures the Collateral Agent shall only file or
record financing statements in the jurisdiction of organization of a Grantor, except in connection with a Mortgage. Each Grantor hereby
also authorizes the Collateral Agent and its Affiliates, counsel and other representatives, at any time and from time to time, to file
continuation statements with respect to previously filed financing statements.

 

Each Grantor hereby agrees to
provide to the Collateral Agent, promptly upon request, any information reasonably necessary to effectuate the filings or recordings authorized
by this Section 2(b).

 

The Collateral Agent is further
authorized to file with the United States Patent and Trademark Office or United States Copyright Office (or any successor office), with
the signature of each applicable Grantor, such documents as the Collateral Agent reasonably determines as may be necessary or advisable
for the purpose of perfecting, confirming, continuing, enforcing or protecting the Security Interest granted hereunder by each Grantor
and naming any Grantor or the Grantors as debtors and the Collateral Agent, as the case may be, as secured party.

 

The Security Interests are granted
as security only and shall not subject the Collateral Agent or any other Secured Party to, or in any way alter or modify, any obligation
or liability of any Grantor with respect to or arising out of the Collateral.

 

3. 
Representations and Warranties.

 

Each Grantor hereby represents
and warrants to the Collateral Agent and each Secured Party on the date hereof that:

 

3.1 
Title; No Other Liens. Except for (a) the Security Interest granted to the Collateral Agent for the benefit of the Secured
Parties pursuant to this Security Agreement and (b) the Liens permitted by the Credit Agreement, such Grantor owns or has the right to
use each item of the Collateral free and clear of any and all Liens or claims of others. No security agreement, financing statement or
other public notice with respect to all or any part of the Collateral that evidences a Lien securing any material Indebtedness
is on file or of record in any public office, except such as (i) have been filed in favor of the Collateral Agent for its benefit and
the benefit of the Secured Parties pursuant to this Security Agreement, (ii) are permitted by the Credit Agreement or (iii) relate to
obligations no longer outstanding or are in respect of commitments to lend which have been terminated.

 

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3.2 
Perfected Liens.

 

(a) 
This Security Agreement is effective to create in favor of the Collateral Agent, for the benefit of the Secured Parties, legal,
valid and enforceable Security Interests in the Collateral (with respect to Collateral consisting of Capital Stock of Foreign Subsidiaries,
to the extent the enforceability of such Security Interest is governed by the UCC), subject to the effects of bankruptcy, insolvency or
similar laws affecting creditors’ rights generally and general equitable principles.

 

(b) 
Subject to the limitations set forth in clause (c) of this Section 3.2, the Security Interests granted pursuant to this Security
Agreement (i) will constitute valid and perfected first priority Security Interests in the Collateral (subject to Permitted Liens to the
extent perfection may be obtained by the filings or other actions described in clause (A), (B) or (C) of this paragraph) in favor of the
Collateral Agent, for the benefit of the Secured Parties, as collateral security for the Obligations, upon (A) with respect to Collateral
in which perfection can be obtained by filing a financing statement, the filing in the applicable filing offices of all financing statements,
in each case, naming each Grantor as “debtor” and the Collateral Agent as “secured party” and describing the Collateral,
(B) with respect to Instruments, Chattel Paper, Certificated Securities and negotiable Documents, delivery to the Collateral Agent (or
its bailee) of all Instruments, Chattel Paper, Certificated Securities and negotiable Documents in each case, properly endorsed for transfer
in blank and (C) with respect to Intellectual Property, completion of the filing of a fully executed agreement substantially in the form
of Annex B hereof (the “Short-form Intellectual Property Security Agreement”) and containing a description of all Collateral
constituting Registered Intellectual Property in the United States Patent and Trademark Office, with respect to U.S. registered and applied
for Patents and Trademarks, within 90 days from the execution date of such Short-form Intellectual Property Security Agreement or in the
United States Copyright Office, with respect to U.S. registered Copyrights, within 30 days from the execution date of such Short-form
Intellectual Property Security Agreement, as applicable and (ii) are prior to all other Liens on the Collateral other than Liens permitted
pursuant to Section 10.2 of the Credit Agreement.

 

(c) 
Notwithstanding anything to the contrary herein, no Grantor shall be required to perfect the Security Interests granted by this
Security Agreement by any means other than by (i) filings pursuant to the Uniform Commercial Code of the relevant State(s), (ii) filings
in the United States Patent and Trademark Office or United States Copyright Office (as applicable) with respect to Registered Intellectual
Property, (iii) delivery to the Collateral Agent (or its bailee) to be held in its possession of all Collateral consisting of Tangible
Chattel Paper, Instruments or Certificated Securities with a fair market value in excess of $20,000,000 individually and (iv) actions
to perfect a security interest in Commercial Tort Claims to the extent set forth in Section 4.1(f).

 

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(d) 
 It is understood and agreed that the Security Interests created hereunder in cash and Investment Property shall not prevent the
Grantors from using such assets in the ordinary course of their respective businesses.

 

4. 
Covenants.

 

Each Grantor hereby covenants
and agrees with the Collateral Agent and the Secured Parties that, from and after the date of this Security Agreement until the Obligations
are paid in full and the Commitments are terminated and all Letters of Credit have expired or terminated and all Letter of Credit Outstandings
have been reduced to zero (or all such Letters of Credit and Letter of Credit Outstandings have been Cash Collateralized):

 

4.1 
Maintenance of Perfected Security Interest; Further Documentation.

 

(a) 
Such Grantor shall maintain the Security Interest created by this Security Agreement as a perfected Security Interest having at
least the priority described in Section 3.1 and shall take commercially reasonable actions necessary to defend such Security Interest
against the claims and demands of all Persons whomsoever, in each case subject to Section 3.2(c).

 

(b) 
Such Grantor will furnish to the Collateral Agent and the Lenders from time to time statements and schedules further identifying
and describing the assets and property of such Grantor and such other reports in connection therewith as the Collateral Agent may reasonably
request.

 

(c) 
Such Grantor will furnish to the Collateral Agent at the time of the delivery of the financial statements provided for in Sections
9.1(a) of the Credit Agreement (or, if the Credit Agreement is no longer in effect, on an annual basis), a schedule setting forth (A)
(i) any additional Registered Intellectual Property owned by any Grantor which has not been previously disclosed to the Collateral Agent,
(ii) any additional material Registered Intellectual Property exclusively licensed from a third party to any Grantor which has not been
previously disclosed to the Collateral Agent, and (iii) any intent-to-use Trademark application for which a “statement of use”
or an “amendment to allege use” was filed, in each case, following the Closing Date (or following the date of the last supplement
provided to the Collateral Agent pursuant to this Section 4.1(c)), all in reasonable detail and (B) within sixty (60) days following the
delivery of such financial statements, execute and file appropriate documents or instruments with the United States Patent and Trademark
Office or the United States Copyright Office, as applicable, evidencing the Collateral Agent’s security interest in such new or
additional Registered Intellectual Property.

 

(d) 
Subject to clause (e) below and Section 3.2(c), each Grantor agrees that at any time and from time to time, at the expense of
such Grantor, it will execute any and all further documents, financing statements, agreements and instruments, and take all such further
actions (including the filing and recording of financing statements and other documents, including all applicable documents required
under Section 3.2(b)(C)), which may be required under any applicable law, or which, subject to the terms of the Intercreditor Agreement,
the Collateral Agent may reasonably request, in order (i) to grant, preserve, protect and perfect the validity and priority of the Security
Interests created or intended to be created hereby or (ii) to enable the Collateral Agent to exercise and enforce its rights and remedies
hereunder with respect to any Collateral, including the filing of any financing or continuation statements under the Uniform Commercial
Code in effect in any jurisdiction with respect to the Security Interests created hereby and all applicable documents required under
Section 3.2(b)(C), all at the expense of such Grantor.

  

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(e) 
Notwithstanding anything in this Section 4.1 to the contrary, (i) with respect to any assets acquired by such Grantor after the
date hereof that are required by the Credit Agreement to be subject to the Lien created hereby or (ii) with respect to any Person that,
subsequent to the date hereof, becomes a Subsidiary that is required by the Credit Agreement to become a party hereto, the relevant Grantor
after the acquisition or creation thereof shall promptly take all actions required by the Credit Agreement, this Section 4.1.

 

(f) 
If any Grantor shall at any time hold or acquire a Commercial Tort Claim, such Grantor shall promptly (and in any event within
60 days upon obtaining knowledge thereof, or such longer period as the Collateral Agent may reasonably agree) notify the Collateral Agent
in a writing signed by such Grantor of the brief details (in summary form) thereof and grant to the Collateral Agent in such writing a
security interest therein and in the Proceeds thereof, all upon the terms of this Security Agreement, with such writing to be in form
and substance reasonably satisfactory to the Collateral Agent. The requirements in the preceding sentence shall not apply to the extent
that the amount of such Commercial Tort Claim, together with the amount of all other Commercial Tort Claims held by any Grantor in which
the Collateral Agent does not have a security interest, does not exceed $20,000,000 in the aggregate for all Grantors.

 

(g) 
With respect to each material item of Intellectual Property owned by such Grantor and included in the Collateral, each Grantor
agrees to take, at its expense, commercially reasonable steps to preserve and protect such material Intellectual Property, including,
without limitation, to (i) maintain the validity and enforceability of such material Intellectual Property and maintain such material
Intellectual Property in full force and effect, and (ii) pursue the registration and maintenance of each Patent, Trademark or servicemark
registration or application, or Copyright registration or application, now or hereafter included in such material Intellectual Property
of such Grantor, including, without limitation, the payment of required fees and taxes, the filing of responses to office actions issued
by the United States Patent and Trademark Office and the United States Copyright Office, the filing of affidavits under Sections 8 and
15 of the U.S. Trademark Act, and the payment of maintenance fees. Each Grantor shall take commercially reasonable steps which it (or
the Collateral Agent during the continuation of an Event of Default) deems reasonable and appropriate under the circumstances to maintain
the quality of any and all products or services used or provided in connection with any of the material Trademarks, at least substantially
consistent with the quality of the products and services as of the date hereof, and taking commercially reasonable steps necessary to
ensure that all licensed users of any of the material Trademarks use such consistent standards of quality.

 

4.2 
Damage or Destruction of Collateral. The Grantors agree promptly to notify the Collateral Agent if any portion of the Collateral
is damaged or destroyed in any manner which could reasonably be expected to have a Material Adverse Effect.

 

4.3 
Notices. Each Grantor will advise the Collateral Agent and the Lenders promptly, in reasonable detail, of any Lien of which
it has knowledge (other than the Security Interests created hereby or Liens permitted under the Credit Agreement) on any of the Collateral
which would adversely affect, in any material respect,
the ability of the Collateral Agent to exercise any of its remedies hereunder.

 

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4.4 
Changes in Locations, Name, etc. Each Grantor will furnish to the Collateral Agent promptly (and in any event within 60
days (or such longer period as the Collateral Agent may reasonably agree) of such change) a written notice of any change (i) in its
legal name, (ii) in its jurisdiction of organization or location for purposes of the UCC, (iii) in its identity or type of organization
or corporate structure or (iv) in its Federal Taxpayer Identification Number or organizational identification number. Each Grantor
agrees promptly to provide the Collateral Agent with certified organizational documents reflecting any of the changes described in the
first sentence of this paragraph and take all other action reasonably necessary to maintain the perfection and priority of the security
interest of the Collateral Agent for the benefit of the Secured Parties in the Collateral and take all other action reasonably necessary
to maintain the perfection and priority of the security interest of the Collateral Agent for the benefit of the Secured Parties in the
Collateral.

 

4.5 
Investment Property. If any of the Collateral (other than any property included in the definition of “Collateral”
in the Pledge Agreement) is or shall become evidenced or represented by any Instrument, Chattel Paper or Certificated Securities, such
Instrument, Chattel Paper or Certificated Securities shall, in each case, be promptly delivered to the Collateral Agent, duly endorsed
in a manner reasonably satisfactory to the Collateral Agent, to be held as Collateral pursuant to this Security Agreement, if the fair
market value of any such individual Instrument, Chattel Paper or Certificated Securities exceeds $20,000,000, in each case except to the
extent constituting Excluded Property.

 

5. 
Remedial Provisions.

 

5.1 
Certain Matters Relating to Accounts.

 

(a) 
At any time after the occurrence and during the continuance of an Event of Default and after giving reasonable notice to the Borrower
and any other relevant Grantor, the Administrative Agent shall have the right, but not the obligation, to instruct the Collateral Agent
to (and upon such instruction, the Collateral Agent shall) make test verifications of the Accounts in any manner and through any medium
that the Administrative Agent reasonably considers advisable, and each Grantor shall furnish all such assistance and information as the
Collateral Agent may require in connection with such test verifications. The Collateral Agent shall have the absolute right to share any
information it gains from such inspection or verification with any Secured Party.

 

(b) 
The Collateral Agent hereby authorizes each Grantor to collect such Grantor’s Accounts and the Collateral Agent may curtail
or terminate said authority at any time after the occurrence and during the continuance of an Event of Default. If required in writing
by the Collateral Agent at any time after the occurrence and during the continuance of an Event of Default, any payments of Accounts,
when collected by any Grantor, (i) shall be forthwith (and, in any event, within two Business Days) deposited by such Grantor in the
exact form received, duly endorsed by such Grantor to the Collateral Agent if required, in a Collateral Account maintained under the
sole dominion and control of and on terms and conditions reasonably satisfactory to the Collateral Agent, subject to withdrawal
by the Collateral Agent for the account of the Secured Parties only as provided in Section 5.5 and (ii) until so turned over, shall be
held by such Grantor in trust for the Collateral Agent and the Secured Parties, segregated from other funds of such Grantor. Each such
deposit of Proceeds of Accounts shall be accompanied by a report identifying in reasonable detail the nature and source of the payments
included in the deposit.

 

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(c) 
At the Collateral Agent’s request at any time after the occurrence and during the continuance of an Event of Default, subject
to the terms of the Intercreditor Agreement, each Grantor shall deliver to the Collateral Agent all original and other documents evidencing,
and relating to, the agreements and transactions which gave rise to the Accounts, including all original orders, invoices and shipping
receipts.

 

(d) 
Upon the occurrence and during the continuance of an Event of Default, a Grantor shall not grant any extension of the time of payment
of any of the Accounts, compromise, compound or settle the same for less than the full amount thereof, release, wholly or partly, any
Person liable for the payment thereof, or allow any credit or discount whatsoever thereon if the Collateral Agent shall have instructed
the Grantors not to grant or make any such extension, credit, discount, compromise or settlement under any circumstances during the continuance
of such Event of Default.

 

(e) 
Effective solely upon the occurrence and during the continuance of an Event of Default, subject to the terms of the Intercreditor
Agreement, each Grantor hereby grants to the Collateral Agent a non-exclusive, fully paid-up, royalty-free, worldwide license to use,
assign, license or sublicense any of the Intellectual Property now or hereafter owned or licensed by such Grantor (subject to the rights
of any person or entity under any pre-existing Copyright License, Patent License, Trademark License or other agreements). Such license
shall include access to all media in which any of the licensed items may be recorded or stored and to all computer programs used for the
compilation or printout thereof; provided, however, that nothing in this Section 5.1 shall require any Grantor to grant any
license that is prohibited by any rule of law, statute or regulation or is prohibited by, or constitutes a breach of default under or
results in the termination of or gives rise to any right of acceleration, modification or cancellation under any contract, license, agreement,
instrument or other document evidencing, giving rise to a right to use or theretofore granted with respect to such property, provided, further,
that such licenses to be granted hereunder with respect to Trademarks shall be subject to the commercially reasonable quality control
standards applicable to each such Trademark as in effect as of the date such licenses hereunder are granted.

 

5.2 
Communications with Credit Parties; Grantors Remain Liable.

 

(a) 
The Collateral Agent in its own name or in the name of others may at any time after the occurrence and during the continuance of
an Event of Default, subject to the terms of the Intercreditor Agreement, after giving reasonable notice to the relevant Grantor of its
intent to do so, communicate with obligors under the Accounts to verify with them to the Collateral Agent’s satisfaction the existence,
amount and terms of any Accounts. The Collateral Agent shall have the absolute right to share any information it gains from such inspection
or verification with any Secured Party.

 

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(b) 
 Upon the written request of the Collateral Agent at any time after the occurrence and during the continuance of an Event of Default,
subject to the terms of the Intercreditor Agreement, each Grantor shall notify obligors on the Accounts that the Accounts have been assigned
to the Collateral Agent for the benefit of the Secured Parties and that payments in respect thereof shall be made directly to the Collateral
Agent.

 

(c) 
Anything herein to the contrary notwithstanding, each Grantor shall remain liable under each of the Accounts to observe and perform
all the conditions and obligations to be observed and performed by it thereunder, all in accordance with the terms of any agreement giving
rise thereto. Neither the Collateral Agent nor any Secured Party shall have any obligation or liability under any Account (or any agreement
giving rise thereto) by reason of or arising out of this Security Agreement or the receipt by the Collateral Agent or any Secured Party
of any payment relating thereto, nor shall the Collateral Agent or any Secured Party be obligated in any manner to perform any of the
obligations of any Grantor under or pursuant to any Account (or any agreement giving rise thereto), to make any payment, to make any inquiry
as to the nature or the sufficiency of any payment received by it or as to the sufficiency of any performance by any party thereunder,
to present or file any claim, to take any action to enforce any performance or to collect the payment of any amounts which may have been
assigned to it or to which it may be entitled at any time or times.

 

5.3 
Proceeds to be Turned Over To Collateral Agent. In addition to the rights of the Collateral Agent and the Secured Parties
specified in Section 5.1 with respect to payments of Accounts, if an Event of Default shall occur and be continuing and the Collateral
Agent, subject to the terms of the Intercreditor Agreement, so requires by notice in writing to the relevant Grantor (it being understood
that the exercise of remedies by the Secured Parties in connection with an Event of Default under Section 11.5 of the Credit Agreement
shall be deemed to constitute a request by the Collateral Agent for the purposes of this sentence and in such circumstances, no such written
notice shall be required), all Proceeds received by any Grantor consisting of cash, checks and other near cash items shall be held by
such Grantor in trust for the Collateral Agent and the Secured Parties, segregated from other funds of such Grantor, and shall, forthwith
upon receipt by such Grantor, be turned over to the Collateral Agent in the exact form received by such Grantor (duly endorsed by such
Grantor to the Collateral Agent, if required). All Proceeds received by the Collateral Agent hereunder shall be held by the Collateral
Agent in a Collateral Account maintained under its dominion and control and on terms and conditions reasonably satisfactory to the Collateral
Agent. All Proceeds while held by the Collateral Agent in a Collateral Account (or by such Grantor in trust for the Collateral Agent and
the Secured Parties) shall continue to be held as collateral security for all the Obligations and shall not constitute payment thereof
until applied as provided in Section 5.4.

 

5.4 
Application of Proceeds. The Collateral Agent shall apply the proceeds of any collection or sale of the Collateral as well
as any Collateral consisting of cash, at any time after receipt in the order set forth in the order set forth in Section 11.13 of the
Credit Agreement.

 

If, despite the provisions
of this Security Agreement, any Secured Party shall receive any payment or other recovery in excess of its portion of payments on account
of the Obligations to which it is then entitled in accordance with this Security Agreement, such Secured Party shall hold such
payment or other recovery in trust for its benefit and the benefit of all Secured Parties hereunder for distribution in accordance with
this Section 5.4.

 

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5.5 
Code and Other Remedies. Subject to the terms of the Intercreditor Agreement, if an Event of Default shall occur and be
continuing, the Collateral Agent may exercise in respect of the Collateral, in addition to all other rights and remedies provided for
herein or otherwise available to it, all the rights and remedies of a secured party upon default under the UCC or any other applicable
law and also may with notice to the relevant Grantor, sell the Collateral or any part thereof in one or more parcels at public or private
sale or sales, at any exchange, broker’s board or office of the Collateral Agent or any Secured Party or elsewhere for cash or on
credit or for future delivery at such price or prices and upon such other terms as are commercially reasonable irrespective of the impact
of any such sales on the market price of the Collateral. The Collateral Agent shall be authorized at any such sale (if it deems it advisable
to do so) to restrict the prospective bidders or purchasers of Collateral to Persons who will represent and agree that they are purchasing
the Collateral for their own account for investment and not with a view to the distribution or sale thereof, and, upon consummation of
any such sale, the Collateral Agent shall have the right to assign, transfer and deliver to the purchaser or purchasers thereof the Collateral
so sold. Each purchaser at any such sale shall hold the property sold absolutely free from any claim or right on the part of any Grantor,
and each Grantor hereby waives (to the extent permitted by law) all rights of redemption, stay and/or appraisal that it now has or may
at any time in the future have under any rule of law or statute now existing or hereafter enacted. The Collateral Agent and any Secured
Party shall have the right upon any such public sale, and, to the extent permitted by law, upon any such private sale, to purchase the
whole or any part of the Collateral so sold, and the Collateral Agent or such Secured Party may pay the purchase price by crediting the
amount thereof against the Obligations. Each Grantor agrees that, to the extent notice of sale shall be required by law, at least ten
days’ notice to such Grantor of the time and place of any public sale or the time after which any private sale is to be made shall
constitute reasonable notification. The Collateral Agent shall not be obligated to make any sale of Collateral regardless of notice of
sale having been given. The Collateral Agent may adjourn any public or private sale from time to time by announcement at the time and
place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned. To the extent
permitted by law, each Grantor hereby waives any claim against the Collateral Agent arising by reason of the fact that the price at which
any Collateral may have been sold at such a private sale was less than the price that might have been obtained at a public sale, even
if the Collateral Agent accepts the first offer received and does not offer such Collateral to more than one offeree. Each Grantor further
agrees, at the Collateral Agent’s request to assemble the Collateral and make it available to the Collateral Agent, at places which
the Collateral Agent shall reasonably select, whether at such Grantor’s premises or elsewhere. The Collateral Agent shall apply
the net proceeds of any action taken by it pursuant to this Section 5.5 in accordance with the provisions of Section 5.4.

 

5.6 
Deficiency. Each Grantor shall remain liable for any deficiency if the proceeds of any sale or other disposition of the
Collateral are insufficient to pay its Obligations and the fees and disbursements of any attorneys employed by the Collateral Agent or
any Secured Party to collect such deficiency.

 

5.7  Amendments,
etc. with Respect to the Obligations; Waiver of Rights. Each Grantor shall remain obligated hereunder notwithstanding that,
without any reservation of rights against any Grantor and without notice to or further assent by any Grantor, (a) any demand for
payment of any of the Obligations made by the Collateral Agent or any other Secured Party may be rescinded by such party and any of
the Obligations continued, (b) the Obligations, or the liability of any other party upon or for any part thereof, or any collateral
security or guarantee therefor or right of offset with respect thereto, may, from time to time, in whole or in part, be renewed,
extended, amended, modified, accelerated, compromised, waived, surrendered or released by the Collateral Agent or any other Secured
Party, (c) the Credit Agreement, the other Credit Documents and any other documents executed and delivered in connection therewith
and the Secured Cash Management Agreements, Secured Hedge Agreements and any other documents executed and delivered in connection
therewith may be amended, modified, supplemented or terminated, in whole or in part, as the Administrative Agent (or the Required
Lenders, as the case may be, or, in the case of any Secured Hedge Agreement or Secured Cash Management Agreement, the Hedge Bank or
Cash Management Bank party thereto may deem advisable from time to time and (d) any collateral security, guarantee or right of
offset at any time held by the Collateral Agent or any other Secured Party for the payment of the Obligations may be sold,
exchanged, waived, surrendered or released. Neither the Collateral Agent nor any other Secured Party shall have any obligation to
protect, secure, perfect or insure any Lien at any time held by it as security for the Obligations or for this Security Agreement or
any property subject thereto. When making any demand hereunder against any Grantor, the Collateral Agent or any other Secured Party
may, but shall be under no obligation to, make a similar demand on any Grantor or any other Person, and any failure by the
Collateral Agent or any other Secured Party to make any such demand or to collect any payments from any Grantor or any other Person
or any release of any Grantor or any other Person shall not relieve any Grantor in respect of which a demand or collection is not
made or any Grantor not so released of its several obligations or liabilities hereunder, and shall not impair or affect the rights
and remedies, express or implied, or as a matter of law, of the Collateral Agent or any other Secured Party against any Grantor. For
the purposes hereof “demand” shall include the commencement and continuance of any legal proceedings.

 

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6. 
The Collateral Agent.

 

6.1 
Collateral Agent’s Appointment as Attorney-in-Fact, etc.

 

(a) 
Each Grantor hereby appoints, which appointment is irrevocable (until termination of this Security Agreement in accordance with
Section 6.5) and coupled with an interest, effective upon the occurrence and during the continuance of an Event of Default, the Collateral
Agent and any officer or agent thereof, with full power of substitution, as its true and lawful attorney-in-fact with full irrevocable
power and authority in the place and stead of such Grantor and in the name of such Grantor or otherwise, for the purpose of carrying out
the terms of this Security Agreement, to take any and all appropriate action and to execute any and all documents and instruments that
may be necessary or desirable to accomplish the purposes of this Security Agreement, and, without limiting the generality of the foregoing,
each Grantor hereby gives the Collateral Agent the power and right, on behalf of such Grantor, either in the Collateral Agent’s
name or in the name of such Grantor or otherwise, without assent by such Grantor, to do any or all of the following, in each case after
the occurrence and during the continuance of an Event of Default and after written notice by the Collateral Agent of its intent to do
so:

 

		(i)	take possession of and endorse and collect any checks, drafts,
notes, acceptances or other instruments for the payment of moneys due under any Account or with respect to any other Collateral and file
any claim or take any other action or proceeding in any court of law or equity or otherwise deemed appropriate by the Collateral Agent
for the purpose of collecting any and all such moneys due under any Account or with respect to any other Collateral whenever payable;

 

		(ii)	in the case of any Intellectual Property, execute and deliver,
and have recorded, any and all agreements, instruments, documents and papers as the Collateral Agent may reasonably request to evidence
the Collateral Agent’s and the Secured Parties’ Security Interest in such Intellectual Property and the goodwill and general
intangibles of such Grantor relating thereto or represented thereby;

 

		(iii)	pay or discharge taxes and Liens levied or placed on or threatened
against the Collateral;

 

		(iv)	execute, in connection with any sale provided for in Section 5.5,
any endorsements, assignments or other instruments of conveyance or transfer with respect to the Collateral;

 

		(v)	obtain and adjust insurance required to be maintained by such
Grantor pursuant to Section 9.3 of the Credit Agreement;

 

		(vi)	direct any party liable for any payment under any of the Collateral
to make payment of any and all moneys due or to become due thereunder directly to the Collateral Agent or as the Collateral Agent shall
direct;

 

		(vii)	ask or demand for, collect and receive payment of and receipt
for, any and all moneys, claims and other amounts due or to become due at any time in respect of or arising out of any Collateral;

 

		(viii)	sign and endorse any invoices, freight or express bills, bills
of lading, storage or warehouse receipts, drafts against debtors, assignments, verifications, notices and other documents in connection
with any of the Collateral;

 

		(ix)	commence and prosecute any suits, actions or proceedings at law
or in equity in any court of competent jurisdiction to collect the Collateral or any portion thereof and to enforce any other right in
respect of any Collateral;

 

		(x)	defend any suit, action or proceeding brought against such Grantor
with respect to any Collateral (with such Grantor’s consent to the extent such action or its resolution could materially affect
such Grantor or any of its Affiliates in any manner other than with respect to its continuing rights in such Collateral);

 

		(xi)	settle, compromise or adjust any such suit, action or proceeding
and, in connection therewith, give such discharges or releases as the Collateral Agent may deem appropriate (with such Grantor’s
consent to the extent such action or its resolution could materially affect such Grantor or any of its Affiliates in any manner
other than with respect to its continuing rights in such Collateral);

 

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		(xii)	assign any Intellectual Property (along with the goodwill of the
business to which any such Intellectual Property pertains), throughout the world for such term or terms, on such conditions, and in such
manner, as the Collateral Agent shall in its sole discretion determine; and

 

		(xiii)	generally, sell, transfer, pledge and make any agreement with
respect to or otherwise deal with any of the Collateral as fully and completely as though the Collateral Agent were the absolute owner
thereof for all purposes, and do, at the Collateral Agent’s option and such Grantor’s expense, at any time, or from time
to time, all acts and things that the Collateral Agent deems necessary to protect, preserve or realize upon the Collateral and the Collateral
Agent’s and the Secured Parties’ Security Interests therein and to effect the intent of this Security Agreement, all as fully
and effectively as such Grantor might do.

 

Anything in this Section 6.1(a) to the contrary
notwithstanding, the Collateral Agent agrees that it will not exercise any rights under the power of attorney provided for in this Section
6.1(a) unless an Event of Default shall have occurred and be continuing.

 

(b) 
If any Grantor fails to perform or comply with any of its agreements contained herein, the Collateral Agent, at its option, but
without any obligation so to do, may perform or comply, or otherwise cause performance or compliance, with such agreement.

 

(c) 
The expenses of the Collateral Agent incurred in connection with actions undertaken as provided in this Section 6.1, together with
interest thereon at a rate per annum equal to the highest rate per annum at which interest would then be payable on any category of past
due ABR Loans under the Credit Agreement, from the date of payment by the Collateral Agent to the date reimbursed by the relevant Grantor,
shall be payable by such Grantor to the Collateral Agent on demand.

 

(d) 
Each Grantor hereby ratifies all that said attorneys shall lawfully do or cause to be done by virtue hereof. All powers, authorizations
and agencies contained in this Security Agreement are coupled with an interest and are irrevocable until this Security Agreement is terminated
and the Security Interests created hereby are released.

 

6.2  Duty
of Collateral Agent. The Collateral Agent’s sole duty with respect to the custody, safekeeping and physical preservation
of the Collateral in its possession, under Section 9-207 of the UCC or otherwise, shall be to deal with it in the same manner as the
Collateral Agent deals with similar property for its own account. The Collateral Agent shall be deemed to have exercised reasonable
care in the custody and preservation of any Collateral in its possession if such Collateral is accorded treatment substantially
equal to that which the Collateral Agent accords its own property. Neither the Collateral Agent, any Secured Party nor any of their
respective officers, directors, employees or agents shall be liable for failure to demand, collect or realize upon any of the
Collateral or for any delay in doing so or shall be under any obligation to sell or otherwise dispose of any Collateral upon the
request of any Grantor or any other Person or to take any other action whatsoever with regard to the Collateral or any part
thereof. The powers conferred on the Collateral Agent and the Secured Parties hereunder are solely to protect the Collateral
Agent’s and the Secured Parties’ interests in the Collateral and shall not impose any duty upon the Collateral Agent or
any Secured Party to exercise any such powers. The Collateral Agent and the Secured Parties shall be accountable only for amounts
that they actually receive as a result of the exercise of such powers, and neither they nor any of their officers, directors,
employees or agents shall be responsible to any Grantor for any act or failure to act hereunder, except for their own respective
gross negligence or willful misconduct as determined in a final non-appealable judgment of a court of competent jurisdiction. The
Collateral Agent shall not be responsible for or have any duty to ascertain or inquire into any representation or warranty regarding
the existence, value or collectability of the Collateral, the existence, priority or perfection of the Collateral Agent’s Lien
thereon, or any certificate prepared by any Grantor in connection therewith, nor shall the Collateral Agent be responsible or liable
to the Secured Parties for any failure to monitor or maintain any portion of the Collateral.

 

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6.3 
Authority of Collateral Agent. Each Grantor acknowledges that the rights and responsibilities of the Collateral Agent under
this Security Agreement with respect to any action taken by the Collateral Agent or the exercise or non-exercise by the Collateral Agent
of any option, voting right, request, judgment or other right or remedy provided for herein or resulting or arising out of this Security
Agreement shall, as between the Collateral Agent and the Secured Parties, be governed by the Intercreditor Agreement and the Credit Agreement,
and by such other agreements with respect thereto as may exist from time to time among them, but, as between the Collateral Agent and
the Grantors, the Collateral Agent shall be conclusively presumed to be acting as agent for the applicable Secured Parties with full and
valid authority so to act or refrain from acting, and no Grantor shall be under any obligation, or entitlement, to make any inquiry respecting
such authority.

 

6.4 
Security Interest Absolute. All rights of the Collateral Agent hereunder, the Security Interest and all obligations of the
Grantors hereunder shall be absolute and unconditional.

 

6.5 
Continuing Security Interest; Assignments Under the Credit Agreement; Release.

 

(a) 
This Security Agreement shall remain in full force and effect and be binding in accordance with and to the extent of its terms
upon each Grantor and the successors and assigns thereof and shall inure to the benefit of the Collateral Agent and the other Secured
Parties and their respective successors, indorsees, transferees and assigns until all Obligations (other than, in each case, any contingent
indemnity obligations not then due, any Secured Hedge Obligations or any Secured Cash Management Obligations) shall have been satisfied
by payment in full, the Commitments shall be terminated and all Letters of Credit have expired or terminated and after all Letter of Credit
Outstandings have been reduced to zero (or all such Letters of Credit and Letter of Credit Outstandings have been Cash Collateralized)
notwithstanding that from time to time during the term of the Credit Agreement, the Credit Parties may be free from any Obligations.

 

(b) 
A Grantor shall automatically be released from its obligations hereunder if it ceases to be a Credit Party in accordance with Section
13.1 of the Credit Agreement.

 

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(c) 
 The Security Interest granted hereby in any Collateral shall automatically be released (i) to the extent provided in Section 13.1
of the Credit Agreement and (ii) upon the effectiveness of any written consent to the release of the Security Interest granted hereby
in such Collateral pursuant to Section 13.1 of the Credit Agreement. Any such release in connection with any sale, transfer or other disposition
of such Collateral to a Person that is not a Credit Party permitted under the Credit Agreement shall result in such Collateral being sold,
transferred or disposed of, as applicable, free and clear of the Lien and Security Interest created hereby.

 

(d) 
In connection with any termination or release pursuant to paragraph (a), (b) or (c), the Collateral Agent shall execute and deliver
to any Grantor, at such Grantor’s expense, all documents that such Grantor shall reasonably request to evidence such termination
or release. Any execution and delivery of documents pursuant to this Section 6.5 shall be without recourse to or warranty by the Collateral
Agent.

 

6.6 
Reinstatement. Each Grantor further agrees that, if any payment made by any Credit Party or other Person and applied to
the Obligations is at any time annulled, avoided, set aside, rescinded, invalidated, declared to be fraudulent or preferential or otherwise
required to be refunded or repaid, or the proceeds of Collateral are required to be returned by any Secured Party to such Credit Party,
its estate, trustee, receiver or any other Person, including any Grantor, under any bankruptcy law, state or federal law, common law or
equitable cause, then, to the extent of such payment or repayment, any Lien or other Collateral securing such liability shall be and remain
in full force and effect, as fully as if such payment had never been made or, if prior thereto the Lien granted hereby or other Collateral
securing such liability hereunder shall have been released or terminated by virtue of such cancellation or surrender, such Lien or other
Collateral shall be reinstated in full force and effect, and such prior cancellation or surrender shall not diminish, release, discharge,
impair or otherwise affect any Lien or other Collateral securing the obligations of any Grantor in respect of the amount of such payment.

 

7. 
Collateral Agent As Agent.

 

(a) 
Wells Fargo Bank, National Association has been appointed to act as the Collateral Agent under the Credit Agreement, by the Lenders
under the Credit Agreement and, by their acceptance of the benefits hereof, the other Secured Parties. The Collateral Agent shall be obligated,
and shall have the right hereunder, to make demands, to give notices, to exercise or refrain from exercising any rights, and to take or
refrain from taking any action (including the release or substitution of Collateral), solely in accordance with this Security Agreement
and the Credit Agreement, provided that the Collateral Agent shall exercise, or refrain from exercising, any remedies
provided for in Section 5 in accordance with the instructions of Required Lenders. In furtherance of the foregoing provisions of this
Section 7(a), each Secured Party, by its acceptance of the benefits hereof, agrees that it shall have no right individually to realize
upon any of the Collateral hereunder, except to the extent specifically set forth in Section 5 of the Guarantee, it being understood and
agreed by such Secured Party that all rights and remedies hereunder may be exercised solely by the Collateral Agent for the ratable benefit
of the applicable Lenders and Secured Parties in accordance with the terms of this Section 7(a).

 

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(b)  The
Collateral Agent shall at all times be the same Person that is the Collateral Agent under the Credit Agreement. Written notice of
resignation by the Collateral Agent pursuant to Section 12.9 of the Credit Agreement shall also constitute notice of resignation as
Collateral Agent under this Security Agreement; removal of the Collateral Agent shall also constitute removal under this Security
Agreement; and appointment of a Collateral Agent pursuant to Section 12.9 of the Credit Agreement shall also constitute appointment
of a successor Collateral Agent under this Security Agreement. Upon the acceptance of any appointment as Collateral Agent under
Section 12.9 of the Credit Agreement by a successor Collateral Agent, that successor Collateral Agent shall thereupon succeed to and
become vested with all the rights, powers, privileges and duties of the retiring or removed Collateral Agent under this Security
Agreement, and the retiring or removed Collateral Agent under this Security Agreement shall promptly (i) transfer to such successor
Collateral Agent all sums, securities and other items of Collateral held hereunder, together with all records and other documents
necessary or appropriate in connection with the performance of the duties of the successor Collateral Agent under this Security
Agreement and (ii) execute and deliver to such successor Collateral Agent or otherwise authorize the filing of such amendments to
financing statements and take such other actions, as may be necessary or appropriate in connection with the assignment to such
successor Collateral Agent of the Security Interests created hereunder, whereupon such retiring or removed Collateral Agent shall be
discharged from its duties and obligations under this Security Agreement. After any retiring or removed Collateral Agent’s
resignation or removal hereunder as Collateral Agent, the provisions of this Security Agreement shall inure to its benefit as to any
actions taken or omitted to be taken by it under this Security Agreement while it was Collateral Agent hereunder.

 

(c) 
Neither the Collateral Agent nor any of its officers, directors, employees, agents, attorneys-in-fact or Affiliates shall be liable
to any party for any action taken or omitted to be taken by any of them under or in connection with this Security Agreement or any Security
Document (except for its or such Person’s own gross negligence or willful misconduct, as determined in a final non-appealable judgment
of a court of competent jurisdiction).

 

8. 
Miscellaneous.

 

8.1 
Intercreditor Agreement. Notwithstanding anything herein to the contrary, the liens and security interests granted to the
Collateral Agent pursuant to this Security Agreement and the exercise of any right or remedy by the Collateral Agent hereunder, are subject
to the provisions of any First Lien Intercreditor Agreement (the “Intercreditor Agreement”). In the event of any conflict
between the terms of the Intercreditor Agreement and the terms of this Security Agreement, the terms of the Intercreditor Agreement shall
govern and control. No right, power or remedy granted to the Collateral Agent hereunder shall be exercised by the Collateral Agent, and
no direction shall be given by the Collateral Agent, in contravention of the Intercreditor Agreement.

 

8.2 
Amendments in Writing. None of the terms or provisions of this Security Agreement may be waived, amended, supplemented or
otherwise modified except by a written instrument executed by the affected Grantor and the Collateral Agent in accordance with Section
13.1 of the Credit Agreement.

 

8.3 
Notices. All notices, requests and demands pursuant hereto shall be made in accordance with Section 13.2 of the Credit Agreement.
All communications and notices hereunder to any Grantor shall be given to it in care of
Holdings at Holdings’ address set forth in Section 13.2 of the Credit Agreement.

 

    20

     

    

 

8.4 
No Waiver by Course of Conduct; Cumulative Remedies. Neither the Collateral Agent nor any Secured Party shall by any act
(except by a written instrument pursuant to Section 8.2), delay, indulgence, omission or otherwise be deemed to have waived any right
or remedy hereunder or to have acquiesced in any Default or Event of Default or in any breach of any of the terms and conditions hereof.
No failure to exercise, nor any delay in exercising, on the part of the Collateral Agent or any other Secured Party, any right, power
or privilege hereunder shall operate as a waiver thereof. No single or partial exercise of any right, power or privilege hereunder shall
preclude any other or further exercise thereof or the exercise of any other right, power or privilege. A waiver by the Collateral Agent
or any other Secured Party of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy
that the Collateral Agent or such other Secured Party would otherwise have on any future occasion. The rights, remedies, powers and privileges
herein provided are cumulative, may be exercised singly or concurrently and are not exclusive of any other rights or remedies provided
by law.

 

8.5 
Enforcement Expenses; Indemnification.

 

(a) 
Each Grantor agrees to pay any and all reasonable and documented out of pocket expenses (including all reasonable fees and disbursements
of one primary counsel and one local counsel in each relevant jurisdiction) that may be paid or incurred by any Secured Party in enforcing,
or obtaining advice of counsel in respect of, any rights with respect to, or collecting, any or all of the Obligations and/or enforcing
any rights with respect to, or collecting against, such Grantor under this Security Agreement.

 

(b) 
Each Grantor agrees to pay, and to save the Collateral Agent and the Secured Parties harmless from, any and all liabilities with
respect to, or resulting from any delay in paying, any and all stamp, excise, sales or other taxes that may be payable or determined to
be payable with respect to any of the Collateral or in connection with any of the transactions contemplated by this Security Agreement.

 

(c) 
Each Grantor agrees to pay, and to save the Collateral Agent and the Secured Parties harmless from, any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever with respect
to the execution, delivery, enforcement, performance and administration of this Security Agreement to the extent the Borrower would be
required to do so pursuant to Section 13.5 of the Credit Agreement.

 

(d) 
The agreements in this Section 8.5 shall survive repayment of the Obligations and all other amounts payable under the Credit Agreement
and the other Credit Documents.

 

8.6 
Successors and Assigns. The provisions of this Security Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns permitted hereby, except that no Grantor may assign, transfer or delegate
any of its rights or obligations under this Security Agreement without the prior written consent of the Collateral Agent except pursuant
to a transaction permitted by the Credit Agreement.

 

    21

     

    

 

8.7 
Counterparts. This Security Agreement may be executed by one or more of the parties to this Security Agreement 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 Security Agreement signed by all the parties shall be
lodged with the Collateral Agent and Holdings. The words “execution,” “signed,” “signature,” and words
of like import in this Security Agreement shall be deemed to include electronic signatures or electronic records, each of which shall
be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system,
as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and
National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform
Electronic Transactions Act.

 

8.8 
Severability. Any provision of this Security Agreement that is prohibited or unenforceable in any jurisdiction shall, as
to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions
hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in
any other jurisdiction.

 

8.9 
Section Headings. The Section headings used in this Security Agreement are for convenience of reference only and are not
to affect the construction hereof or be taken into consideration in the interpretation hereof.

 

8.10 
Integration. This Security Agreement together with the other Credit Documents represents the agreement of each of the Grantors
with respect to the subject matter hereof and there are no promises, undertakings, representations or warranties by the Collateral Agent
or any other Secured Party relative to the subject matter hereof not expressly set forth herein or in the other Credit Documents.

 

8.11 
GOVERNING LAW. THIS SECURITY AGREEMENT 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.

 

8.12 
Submission To Jurisdiction Waivers. Each party hereto hereby irrevocably and unconditionally:

 

(a) 
submits for itself and its property in any legal action or proceeding relating to this Security Agreement and the other Credit
Documents to which it is a party, to the exclusive general jurisdiction of the courts of the State of New York sitting in New York County,
the courts of the United States of America for the Southern District of New York, and appellate courts from any thereof;

 

(b)  consents
that any such action or proceeding shall be brought in such courts and waives any objection that it may now or hereafter have to the
venue of any such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient court and
agrees not to plead or claim the same or to commence or support any such action or proceeding in any other courts;

 

    22

     

    

 

(c) 
agrees that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified
mail (or any substantially similar form of mail), postage prepaid, to such Person at its address referred to in Section 8.3 or at such
other address of which such Person shall have been notified pursuant thereto;

 

(d) 
agrees that nothing herein shall affect the right of the Administrative Agent, Lender or any Secured Party to effect service of
process in any other manner permitted by law or to commence legal proceedings or otherwise proceed against Holdings or the Borrower or
any other Credit Party in any other jurisdiction; and

 

(e) 
waives, to the maximum extent not prohibited by law, any right it may have to claim or recover in any legal action or proceeding
referred to in this Section 8.12 any special, exemplary, punitive or consequential damages.

 

8.13 
Acknowledgments. Each party hereto hereby acknowledges that:

 

(a) 
it has been advised by counsel in the negotiation, execution and delivery of this Security Agreement and the other Credit Documents
to which it is a party;

 

(b) 
neither the Collateral Agent nor any other Secured Party has any fiduciary relationship with or duty to any Grantor arising out
of or in connection with this Security Agreement or any of the other Credit Documents, and the relationship between the Grantors, on the
one hand, and the Collateral Agent and the other Secured Parties, on the other hand, in connection herewith or therewith is solely that
of debtor and creditor; and

 

(c) 
no joint venture is created hereby or by the other Credit Documents or otherwise exists by virtue of the transactions contemplated
hereby among the Lenders and any other Secured Party or among the Grantors and the Lenders and any other Secured Party.

 

8.14 
Additional Grantors. Each Subsidiary that is required to become a party to this Security Agreement pursuant to Section 9.11
of the Credit Agreement shall become a Subsidiary Grantor, with the same force and effect as if originally named as a Grantor herein,
for all purposes of this Security Agreement upon execution and delivery by such Subsidiary of a written supplement substantially in the
form of Annex A hereto. The execution and delivery of any instrument adding an additional Grantor as a party to this Security Agreement
shall not require the consent of any other Grantor hereunder. The rights and obligations of each Grantor hereunder shall remain in full
force and effect notwithstanding the addition of any new Grantor as a party to this Security Agreement.

 

8.15 
WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION
OR PROCEEDING RELATING TO THIS SECURITY AGREEMENT, ANY OTHER CREDIT DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

[SIGNATURE PAGES
FOLLOW]

 

    23

     

    

 

IN WITNESS WHEREOF, each of
the undersigned has caused this Security Agreement to be duly executed and delivered as of the date first above written.

 

	 	ROLLER BEARING COMPANY OF AMERICA,  INC.,
	 	as Grantor
	 	 
	 	By:	/s/ Daniel A. Bergeron
	 	 	Name:	Daniel A. Bergeron
	 	 	Title:	Vice President and Chief Operating Officer
	 	 	 	 
	 	RBC BEARINGS INCORPORATED,
	 	as Grantor
	 	 	 	 
	 	By:	/s/ Daniel A. Bergeron 
	 	 	Name:	Daniel A. Bergeron
	 	 	Title:	Vice President and Chief Operating Officer

 

[Signature Page to Security Agreement]

 

     

     

    

 

	 	RBC PRECISION PRODUCTS, INC.,
	 	INDUSTRIAL TECTONICS BEARINGS CORPORATION,
	 	RBC NICE BEARINGS, INC.,
	 	RBC LUBRON BEARING SYSTEMS, INC.,
	 	RBC OKLAHOMA, INC.,
	 	RBC AIRCRAFT PRODUCTS, INC.,
	 	RBC SOUTHWEST PRODUCTS, INC.,
	 	ALL POWER MANUFACTURING CO.,
	 	WESTERN PRECISION AERO LLC,
	 	CLIMAX METAL PRODUCTS COMPANY,
	 	RBC TURBINE COMPONENTS LLC,
	 	AIRTOMIC, LLC,
	 	DODGE ACQUISITION CO.,
	 	DODGE MECHANICAL POWER TRANSMISSION  COMPANY INC.
	 	SONIC INDUSTRIES, INC.,
	 	SARGENT AEROSPACE & DEFENSE, LLC
	 	RBC AEROSTRUCTURES LLC,
	 	each as Grantor

 

	 	By:	/s/ John Feeney
	 	 	Name:	John Feeney
	 	 	Title:	Vice President and Secretary

 

[Signature Page to Security Agreement]

 

     

     

    

 

	 	WELLS FARGO BANK, NATIONAL  ASSOCIATION,
	 	as Collateral Agent
	 	 
	 	By:	/s/ Evan Ingwers    
	 	 	Name:	Evan Ingwers
	 	 	Title:	Senior Vice President

 

[Signature Page to Security Agreement]

 

     

     

    

 

ANNEX A TO THE

SECURITY AGREEMENT

 

SUPPLEMENT NO. [ ] dated as
of [], to the Security Agreement dated as of November 1, 2021 (the “Security Agreement”) among Roller Bearing Company
of America, Inc., a Delaware corporation (“Borrower”), RBC Bearings Incorporated, a Delaware corporation (“Holdings”),
each of the Subsidiaries listed on the signature pages thereto or that becomes a party thereto pursuant to Section 8.14 (each such entity
being a “Subsidiary Grantor” and, collectively, the “Subsidiary Grantors”; the Subsidiary Grantors,
Holdings and the Borrower are referred to collectively as the “Grantors”), and Wells Fargo Bank, National Association,
as collateral agent (in such capacity, the “Collateral Agent”) for its benefit and the benefit of the Secured Parties.

 

A.   Reference
is made to the Credit Agreement dated as of the date of the Security Agreement (as modified and supplemented and in effect from time to
time, the “Credit Agreement”) among Holdings, the Borrower, the Guarantors, the Lenders from time to time party thereto
and Wells Fargo Bank, National Association, as Administrative Agent and as Collateral Agent.

 

B.   Capitalized
terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Security Agreement.

 

C.   The
Grantors have entered into the Security Agreement in order to induce the Administrative Agent, the Collateral Agent and the Lenders to
enter into the Credit Agreement and to induce the Lenders to make their respective Loans to the Borrower, the Swingline Lender to make
Swingline Loans and the Letter of Credit Issuer to issue Letters of Credit for the account of the Borrower and the Restricted Subsidiaries
under the Credit Agreement and to induce one or more Lenders or Affiliates of Lenders to enter into Secured Cash Management Agreements
or Secured Hedge Agreements with Holdings and/or its Subsidiaries.

 

D.   Section
9.11 of the Credit Agreement and Section 8.14 of the Security Agreement provide that each Subsidiary that is required to become a party
to the Security Agreement pursuant to Section 9.11 of the Credit Agreement shall become a Subsidiary Grantor, with the same force and
effect as if originally named as a Subsidiary Grantor therein, for all purposes of the Security Agreement upon execution and delivery
by such Subsidiary of an instrument in the form of this Supplement. Each undersigned Subsidiary (each a “New Grantor”)
is executing this Supplement in accordance with the requirements of the Security Agreement to become a Subsidiary Grantor under the Security
Agreement in order to induce the Lenders to make Loans, the Swingline Lender to make Swingline Loans and the Letter of Credit Issuer to
issue Letters of Credit.

 

Accordingly, the Collateral
Agent and the New Grantors agree as follows:

 

SECTION 1. In accordance
with Section 8.14 of the Security Agreement, each New Grantor by its signature below becomes a Grantor under the Security Agreement
with the same force and effect as if originally named therein as a Grantor and each New Grantor hereby (a) agrees to all the terms
and provisions of the Security Agreement applicable to it as a Grantor thereunder and (b) represents and warrants that the
representations and warranties made by it as a Grantor thereunder are true and correct on and as of the date hereof. In furtherance
of the foregoing, each New Grantor, as security for the payment and performance in full of the Obligations, does hereby bargain,
sell, convey, assign, set over, mortgage, pledge, hypothecate and transfer to the Collateral Agent for its benefit and the benefit
of the Secured Parties, and hereby grants to the Collateral Agent for the benefit of the Secured Parties, a Security Interest in all
of the Collateral of such New Grantor, in each case whether now or hereafter existing or in which it now has or hereafter acquires
an interest. Each reference to a “Grantor” in the Security Agreement shall be deemed to include each New Grantor. The
Security Agreement is hereby incorporated herein by reference.

 

     

     

    

 

SECTION 2. Each New Grantor
represents and warrants to the Collateral Agent and the other Secured Parties that this Supplement has been duly authorized, executed
and delivered by it and constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms, subject
to the effects of bankruptcy, insolvency or similar laws affecting creditors’ rights generally and general equitable principles.

 

SECTION 3. This Supplement may
be executed by one or more of the parties to this Supplement 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 Supplement signed by all the parties shall be lodged with the Collateral Agent and Holdings. This Supplement shall become effective
as to each New Grantor when the Collateral Agent shall have received counterparts of this Supplement that, when taken together, bear the
signatures of such New Grantor and the Collateral Agent. The words “execution,” “signed,” “signature,”
and words of like import in this Supplement shall be deemed to include electronic signatures or electronic records, each of which shall
be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system,
as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and
National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform
Electronic Transactions Act.

 

SECTION 4. Such New
Grantor hereby represents and warrants that (a) set forth on Schedule I hereto is (i) the legal name of such New Grantor, (ii) the
jurisdiction of incorporation or organization of such New Grantor, (iii) the identity or type of organization or corporate structure
of such New Grantor (iv) the Federal Taxpayer Identification Number and organizational number of such New Grantor and (v) the true
and correct location of the chief executive office and principal place of business and any office in which it maintains books of
records relating to Collateral owned by it and (b) as of the date hereof (i) Schedule II hereto lists all of each New
Grantor’s material inbound exclusive licenses in registered Copyrights, (ii) Schedule III hereto lists in all material
respects all of each New Grantor’s registered Copyrights (and all applications therefor), (iii) Schedule IV hereto lists all
of each New Grantor’s material inbound exclusive licenses in Patents, (iv) Schedule V hereto lists in all material respects
all of each New Grantor’s Patents (and all applications therefor), (v) Schedule VI hereto lists all of each New
Grantor’s material inbound exclusive licenses in registered Trademarks and (vi) Schedule VII hereto lists in all material
respects all of each New Grantor’s registered Trademarks (and all applications therefor) and (vii) Schedule VIII hereto lists
all of each New Grantor’s Commercial Tort Claims (except to the extent that the amount of such Commercial Tort Claim, together
with the amount of all other Commercial Tort Claims held by any Grantor in which the Collateral Agent does not have a security
interest, does not exceed $20,000,000 in the aggregate for all Grantors).

 

    2 

     

    

 

SECTION 5. Except as expressly
supplemented hereby, the Security Agreement and the rights and obligations of each Grantor thereunder shall remain in full force and effect
notwithstanding the addition of any New Grantor as a party to the Security Agreement.

 

SECTION 6. THIS SUPPLEMENT
AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS
OF THE STATE OF NEW YORK.

 

SECTION 7. Any provision of
this Supplement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof and in the Security Agreement, and any such
prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

SECTION 8. All notices, requests
and demands pursuant hereto shall be made in accordance with Section 13.2 of the Credit Agreement. All communications and notices hereunder
to each New Grantor shall be given to it in care of the Borrower at the Borrower’s address set forth on Schedule 13.2 to the Credit
Agreement.

 

[SIGNATURE PAGES FOLLOW]

 

    3 

     

    

 

IN WITNESS WHEREOF, each
New Grantor and the Collateral Agent have duly executed this Supplement to the Security Agreement as of the day and year first above written.

 

	 	[NAME OF NEW GRANTOR]
	 	 
	 	By:	                 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION,

 as Collateral Agent
	 	 	 
	 	By:	           
	 	Name:	 
	 	Title:	 

 

     

     

    

 

SCHEDULE I

TO SUPPLEMENT NO. ___ TO THE

SECURITY AGREEMENT

 

COLLATERAL

 

	Legal Name	 	Jurisdiction of

 Incorporation or

 Organization	 	Type of

 Organization or Corporate

 Structure	 	Federal Taxpayer

 Identification

 Number and 

Organizational 

Identification

 Number	 	
    Chief

 Executive Office

    

	 	 	 	 	 	 	 	 	 

 

     

     

    

 

SCHEDULE II

TO SUPPLEMENT NO. ___ TO THE

SECURITY AGREEMENT

 

MATERIAL INBOUND EXCLUSIVE LICENSES IN REGISTERED
COPYRIGHTS

 

     

     

    

 

SCHEDULE III

TO SUPPLEMENT NO. ___ TO THE

SECURITY AGREEMENT

 

UNITED STATES REGISTERED COPYRIGHTS

 

Registrations:

 

	OWNER	 	REGISTRATION NUMBER	 	TITLE
	 	 	 	 	 

 

     

     

    

 

SCHEDULE IV

TO SUPPLEMENT NO.___ TO THE

SECURITY AGREEMENT

 

MATERIAL INBOUND EXCLUSIVE LICENSES IN

PATENTS AND PATENT APPLICATIONS

 

     

     

    

 

SCHEDULE V

TO SUPPLEMENT NO.___ TO THE

SECURITY AGREEMENT

 

UNITED STATES PATENTS AND PATENT APPLICATIONS

 

	OWNER	 	APPLICATION

                                                                                NUMBER
	 	REGISTRATION

                                                                                NUMBER
	 	TITLE
	 	 	 	 	 	 	 

 

     

     

    

 

SCHEDULE VI

TO SUPPLEMENT NO. ___ TO THE

SECURITY AGREEMENT

 

MATERIAL INBOUND EXCLUSIVE LICENSES IN

REGISTERED TRADEMARKS AND TRADEMARKS APPLICATIONS

 

     

     

    

 

SCHEDULE VII

TO SUPPLEMENT NO. ___ TO THE

SECURITY AGREEMENT

 

UNITED STATES REGISTERED TRADEMARKS AND TRADEMARK
APPLICATIONS

 

	OWNER	 	APPLICATION 

NUMBER	 	REGISTRATION 

NUMBER	 	TRADEMARK
	 	 	 	 	 	 	 

 

     

     

    

 

SCHEDULE VIII

TO SUPPLEMENT NO. ___ TO THE

SECURITY AGREEMENT

 

COMMERCIAL TORT CLAIMS

 

     

     

    

 

ANNEX B TO THE

SECURITY AGREEMENT

 

FORM OF GRANT OF

SECURITY INTEREST IN TRADEMARK

 

[attached]

 

     

     

    

 

GRANT OF SECURITY INTEREST IN TRADEMARK
RIGHTS

 

This GRANT OF SECURITY INTEREST IN TRADEMARK RIGHTS
(“Agreement”), dated as of November [__], 2021, is made by the Credit Parties party hereto (the “Grantors”),
in favor of Wells Fargo Bank, National Association, as collateral agent (the “Agent”) for the several banks and other
financial institutions (the “Lenders”) from time to time parties to the Credit Agreement, dated as of November 1, 2021
(as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Roller Bearing Company
of America, Inc. (the “Borrower”), RBC Bearings Incorporated, a Delaware corporation (“Holdings”),
the Lenders party thereto and the Agent. Capitalized terms used but not otherwise defined herein have the meanings assigned to them in
the Credit Agreement.

 

W I T N E S S E T H:

 

WHEREAS, pursuant to the Credit Agreement, the Lenders
have severally agreed to make Loans to the Borrower, the Swingline Lender to make the Swingline Loans and the Letter of Credit Issuer
has agreed to issue Letters of Credit for the account of the Borrower and the Restricted Subsidiaries upon the terms and subject to the
conditions set forth therein;

 

WHEREAS, in connection with the Credit Agreement,
Grantors, the Borrower and any Subsidiaries that become a party thereto, have executed and delivered a Security Agreement, dated as of
November 1, 2021 in favor of the Agent (together with all amendments and modifications, if any, from time to time thereafter made thereto,
the “Security Agreement”); and

 

WHEREAS, pursuant to the Security Agreement, Grantors
have bargained, sold, conveyed, assigned, set over, mortgaged, pledged, hypothecated and transferred and granted to the Agent, for the
benefit of the Secured Parties, a lien on and security interest in all its Intellectual Property, including its Trademark, and has agreed
to execute this Agreement for purposes of recording the grant of the security interest in the United States Patent and Trademark Office.

 

NOW THEREFORE, for good and valuable consideration,
the receipt of which is hereby acknowledged, and in order to induce the Lenders to make loans and the Swingline Lender to make the Swingline
Loans and the Letter of Credit Issuers to issue Letters of Credit for the account of the Borrower and the Restricted Subsidiaries, and
to induce one or more Lenders or Affiliates of Lenders to enter into Secured Cash Management Agreements or Secured Hedge Agreements with
Holdings and/or its Subsidiaries, Grantors agree, for its benefit and the benefit of the Agent and the Secured Parties, as follows:

 

1. Definitions.
Unless otherwise defined herein or the context otherwise requires, terms used in this Agreement, including its preamble and recitals,
have the meanings provided or provided by reference in the Credit Agreement and the Security Agreement.

 

2. Grant
of Security Interest. Grantors hereby grant to the Agent, for the benefit of the Secured Parties, a lien on and security interest
in all of Grantors’ right, title and interest in, to and under its Trademarks (including, without limitation, those items listed
on Schedule A hereto), all goodwill associated therewith or symbolized thereby, and all rights, priorities and privileges related
thereto and all rights to sue at law or in equity for any infringement, dilution, violation or other impairment thereof, including the
right to receive all Proceeds therefrom, including the right to receive all Proceeds therefrom (collectively, the “Collateral”),
as collateral security for the prompt and complete payment and performance when due (whether at the stated maturity, by acceleration or
otherwise) of the Obligations; provided that, applications in the United States Patent and Trademark Office to register Trademarks
on the basis of Grantors’ “intent to use” such Trademarks will be deemed not to be Collateral unless and until an amendment
to allege use or a statement of use has been filed in the United States Patent and Trademark Office, whereupon such application shall
be automatically subject to the security interest granted herein and deemed to be included in the Collateral.

 

     

     

    

 

3. Purpose.
This Agreement has been executed and delivered by Grantors for the purpose of recording the grant of security interest herein with the
United States Patent and Trademark Office. The security interest granted hereby has been granted to the Secured Parties in connection
with the Security Agreement and is expressly subject to the terms and conditions thereof. The Security Agreement (and all rights and remedies
of the Secured Parties thereunder) shall remain in full force and effect in accordance with its terms.

 

4. Acknowledgment.
Grantors do hereby further acknowledge and affirm that the rights and remedies of the Secured Parties with respect to the security interest
in the Collateral granted hereby are more fully set forth in the Credit Agreement and the Security Agreement, the terms and provisions
of which (including the remedies provided for therein) are incorporated by reference herein as if fully set forth herein. In the event
of any conflict between the terms of this Agreement and the terms of the Security Agreement, the terms of the Security Agreement shall
govern.

 

5. Counterparts;
Electronic Signatures. This Agreement may be executed in counterparts, each of which will be deemed an original, but all of which
together constitute one and the same original. The words “execution,” “signed,” “signature,” and words
of like import in this Agreement shall be deemed to include electronic signatures or electronic records, each of which shall be of the
same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the
case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National
Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic
Transactions Act.

 

6. Governing
Law: This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York.

 

    

     

    

 

IN WITNESS WHEREOF, the parties hereto have caused
this Agreement to be duly executed and delivered by their respective officers thereunto duly authorized as of the day and year first above
written.

 

	 	[●], as Grantor
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

[Signature Page to Trademark Security Agreement]

 

     

     

    

 

	 	WELLS FARGO BANK, NATIONAL  ASSOCIATION, 

as Collateral Agent
	 	 	 
	 	By:	                                      
	 	Name:	 
	 	Title:	 

 

     

     

    

 

SCHEDULE A

 

United States Trademark Registrations and
Applications

 

	OWNER	 	APPLICATION NUMBER	 	REGISTRATION NUMBER	 	TRADEMARK
	 	 	 	 	 	 	 

 

Material Inbound Exclusive Licenses in Trademarks

 

	OWNER/

LICENSOR	 	GRANTOR/

LICENSEE	 	REGISTRATION NO./

APPLICATION NO.	 	TITLE	 	NAME OF LICENSEE	 	DATE 

OF

 LICENSE
		 		 		 	 	 	 	 	 

 

     

     

    

 

ANNEX C TO THE

SECURITY AGREEMENT

 

FORM OF GRANT OF

SECURITY INTEREST IN PATENTS

 

[attached]

 

     

     

    

 

GRANT OF SECURITY INTEREST IN PATENT RIGHTS

 

This GRANT OF SECURITY INTEREST IN PATENT RIGHTS
(“Agreement”), dated as of November [__], 2021, is made by Credit Parties party hereto (the “Grantors”),
in favor of Wells Fargo Bank, National Association, as collateral agent (the “Agent”) for the several banks and other
financial institutions (the “Lenders”) from time to time parties to the Credit Agreement, dated as of November 1, 2021
(as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Roller Bearing Company
of America, Inc. (the “Borrower”), RBC Bearings Incorporated, a Delaware corporation (“Holdings”),
the Lenders party thereto and the Agent. Capitalized terms used but not otherwise defined herein have the meanings assigned to them in
the Credit Agreement.

 

W I T N E S S E T H:

 

WHEREAS, pursuant to the Credit Agreement, the Lenders
have severally agreed to make Loans to the Borrower, the Swingline Lender to make the Swingline Loans and the Letter of Credit Issuer
has agreed to issue Letters of Credit for the account of the Borrower and the Restricted Subsidiaries upon the terms and subject to the
conditions set forth therein;

 

WHEREAS, in connection with the Credit Agreement,
Grantors, the Borrower and any Subsidiaries that become a party thereto, have executed and delivered a Security Agreement, dated as of
November 1, 2021 in favor of the Agent (together with all amendments and modifications, if any, from time to time thereafter made thereto,
the “Security Agreement”); and

 

WHEREAS, pursuant to the Security Agreement, Grantors
have bargained, sold, conveyed, assigned, set over, mortgaged, pledged, hypothecated and transferred and granted to the Agent, for the
benefit of the Secured Parties, a lien on and security interest in all its Intellectual Property, including its Patents, and has agreed
to execute this Agreement for purposes of recording the grant of the security interest in the United States Patent and Trademark Office.

 

NOW THEREFORE, for good and valuable consideration,
the receipt of which is hereby acknowledged, and in order to induce the Lenders to make loans and the Swingline Lender to make the Swingline
Loans and the Letter of Credit Issuers to issue Letters of Credit for the account of the Borrower and the Restricted Subsidiaries, and
to induce one or more Lenders or Affiliates of Lenders to enter into Secured Cash Management Agreements or Secured Hedge Agreements with
Holdings and/or its Subsidiaries, Grantors agree, for its benefit and the benefit of the Agent and the Secured Parties, as follows:

 

1. Definitions.
Unless otherwise defined herein or the context otherwise requires, terms used in this Agreement, including its preamble and recitals,
have the meanings provided or provided by reference in the Credit Agreement and the Security Agreement.

 

2. Grant
of Security Interest. Grantors hereby grant to the Agent, for the benefit of the Secured Parties, a lien on and security interest
in all of Grantors’ right, title and interest in, to and under its Patents (including, without limitation, those items listed on
Schedule A hereto), and all rights, priorities and privileges related thereto and all rights to sue at law or in equity for any
infringement, violation or other impairment thereof, including the right to receive all Proceeds therefrom (collectively, the “Collateral”),
as collateral security for the prompt and complete payment and performance when due (whether at the stated maturity, by acceleration or
otherwise) of the Obligations.

 

3. Purpose.
This Agreement has been executed and delivered by Grantors for the purpose of recording the grant of security interest herein with the
United States Patent and Trademark Office. The security interest granted hereby has been granted to the Secured Parties in connection
with the Security Agreement and is expressly subject to the terms and conditions thereof. The Security Agreement (and all rights and remedies
of the Secured Parties thereunder) shall remain in full force and effect in accordance with its terms.

 

4. Acknowledgment.
Grantors do hereby further acknowledge and affirm that the rights and remedies of the Secured Parties with respect to the security interest
in the Collateral granted hereby are more fully set forth in the Credit Agreement and the Security Agreement, the terms and provisions
of which (including the remedies provided for therein) are incorporated by reference herein as if fully set forth herein. In the event
of any conflict between the terms of this Agreement and the terms of the Security Agreement, the terms of the Security Agreement shall
govern.

 

5. Counterparts;
Electronic Signatures. This Agreement may be executed in counterparts, each of which will be deemed an original, but all of which
together constitute one and the same original. The words “execution,” “signed,” “signature,” and words
of like import in this Agreement shall be deemed to include electronic signatures or electronic records, each of which shall be of the
same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the
case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National
Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic
Transactions Act.

 

6. Governing
Law: This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York.

 

    

     

    

 

IN WITNESS WHEREOF, the parties hereto have caused
this Agreement to be duly executed and delivered by their respective officers thereunto duly authorized as of the day and year first above
written.

 

	 	[●], as Grantor
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

[Signature Page to Patent Security Agreement]

 

     

     

    

 

	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, 

as Collateral Agent
	 	 
	 	By:	                      
	 	Name:	 
	 	Title:	 

 

[Signature Page to Patent Security Agreement]

 

     

     

    

 

SCHEDULE A

 

United States Patent Registrations and Applications

 

	
    OWNER
	 	
    APPLICATION
    NUMBER
	 	
    REGISTRATION
    NUMBER
	 	
    TITLE

	 	 	 	 	 	 	 

 

Material Inbound Exclusive Licenses in Patents

 

	
    OWNER/

    LICENSOR
	 	
    GRANTOR/

    LICENSEE
	 	
    REGISTRATION
    NO./

    APPLICATION NO.
	 	
    TITLE
	 	
    NAME OF LICENSEE
	 	
    DATE OF LICENSE

	 	 	 	 	 	 	 	 	 	 	 

 

     

     

    

 

ANNEX D TO THE

SECURITY AGREEMENT

 

FORM OF GRANT OF

SECURITY INTEREST IN COPYRIGHT

 

[attached]

 

     

     

    

 

FORM OF GRANT OF

SECURITY INTEREST IN COPYRIGHT RIGHTS

 

This GRANT OF SECURITY INTEREST IN COPYRIGHT RIGHTS
(“Agreement”), dated as of November [__], 2021, is made by Credit Parties party hereto (the “Grantors”),
in favor of Wells Fargo Bank, National Association, as collateral agent (the “Agent”) for the several banks and other
financial institutions (the “Lenders”) from time to time parties to the Credit Agreement, dated as of November 1, 2021
(as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Roller Bearing Company
of America, Inc. (the “Borrower”), RBC Bearings Incorporated, a Delaware corporation (“Holdings”),
the Lenders party thereto and the Agent. Capitalized terms used but not otherwise defined herein have the meanings assigned to them in
the Credit Agreement.

 

W I T N E S S E T H:

 

WHEREAS, pursuant to the Credit Agreement, the Lenders
have severally agreed to make Loans to the Borrower, the Swingline Lender to make the Swingline Loans and the Letter of Credit Issuer
has agreed to issue Letters of Credit for the account of the Borrower and the Restricted Subsidiaries upon the terms and subject to the
conditions set forth therein;

 

WHEREAS, in connection with the Credit Agreement,
Grantors, the Borrower and any Subsidiaries that become a party thereto, have executed and delivered a Security Agreement, dated as of
November 1, 2021 in favor of the Agent (together with all amendments and modifications, if any, from time to time thereafter made thereto,
the “Security Agreement”); and

 

WHEREAS, pursuant to the Security Agreement, Grantors
have bargained, sold, conveyed, assigned, set over, mortgaged, pledged, hypothecated and transferred and granted to the Agent, for the
benefit of the Secured Parties, a lien on and security interest in all its Intellectual Property, including its Copyrights, and has agreed
to execute this Agreement for purposes of recording the grant of the security interest in the United States Copyright Office.

 

     

     

    

 

NOW THEREFORE, for good and valuable consideration,
the receipt of which is hereby acknowledged, and in order to induce the Lenders to make loans and the Swingline Lender to make the Swingline
Loans and the Letter of Credit Issuers to issue Letters of Credit for the account of the Borrower and the Restricted Subsidiaries, and
to induce one or more Lenders or Affiliates of Lenders to enter into Secured Cash Management Agreements or Secured Hedge Agreements with
Holdings and/or its Subsidiaries, Grantors agree, for its benefit and the benefit of the Agent and the Secured Parties, as follows:

 

1. Definitions.
Unless otherwise defined herein or the context otherwise requires, terms used in this Agreement, including its preamble and recitals,
have the meanings provided or provided by reference in the Credit Agreement and the Security Agreement.

 

2. Grant
of Security Interest. Grantors hereby grant to the Agent, for the benefit of the Secured Parties, a lien on and security interest
in all of Grantors’ right, title and interest in, to and under its Copyrights (including, without limitation, those items listed
on Schedule A hereto), and all rights, priorities and privileges related thereto and all rights to sue at law or in equity for
any infringement, violation or other impairment thereof, including the right to receive all Proceeds therefrom (collectively, the “Collateral”),
as collateral security for the prompt and complete payment and performance when due (whether at the stated maturity, by acceleration or
otherwise) of the Obligations.

 

3. Purpose.
This Agreement has been executed and delivered by Grantors for the purpose of recording the grant of security interest herein with the
United States Copyright Office. The security interest granted hereby has been granted to the Secured Parties in connection with the Security
Agreement and is expressly subject to the terms and conditions thereof. The Security Agreement (and all rights and remedies of the Secured
Parties thereunder) shall remain in full force and effect in accordance with its terms.

 

4. Acknowledgment.
Grantors do hereby further acknowledge and affirm that the rights and remedies of the Secured Parties with respect to the security interest
in the Collateral granted hereby are more fully set forth in the Credit Agreement and the Security Agreement, the terms and provisions
of which (including the remedies provided for therein) are incorporated by reference herein as if fully set forth herein. In the event
of any conflict between the terms of this Agreement and the terms of the Security Agreement, the terms of the Security Agreement shall
govern.

 

5. Counterparts;
Electronic Signatures. This Agreement may be executed in counterparts, each of which will be deemed an original, but all of which
together constitute one and the same original. The words “execution,” “signed,” “signature,” and words
of like import in this Agreement shall be deemed to include electronic signatures or electronic records, each of which shall be of the
same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the
case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National
Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic
Transactions Act.

 

6. Governing
Law: This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York.

 

     

     

    

 

IN WITNESS WHEREOF, the parties hereto have caused
this Agreement to be duly executed and delivered by their respective officers thereunto duly authorized as of the day and year first above
written.

 

	 	[●], as Grantor
	 	 
	 	By:	    
	 	Name:	 
	 	Title:	 

 

[Signature Page to Copyright Security Agreement]

 

     

     

    

 

	 	WELLS FARGO BANK, NATIONAL ASSOCIATION,

 as Collateral Agent
	 	 
	 	By:	                                                   
	 	Name:	 
	 	Title:	 

 

[Signature Page to Copyright Security Agreement]

 

     

     

    

 

SCHEDULE A

 

United States Copyright Registrations and Applications

 

	
    OWNER
	 	
    REGISTRATION
    NUMBER
	 	
    TITLE

	 	 	 	 	 

 

Material Inbound Exclusive Licenses in Copyrights

 

	
    OWNER/

    LICENSOR
	 	
    GRANTOR/

    LICENSEE
	 	
    REGISTRATION
    NO./

    APPLICATION NO.
	 	
    TITLE
	 	
    NAME OF LICENSEE
	 	
    DATE OF LICENSEExhibit 10.4

 

Execution Version

 

PLEDGE AGREEMENT

 

PLEDGE AGREEMENT, dated as of
November 1, 2021, among RBC Bearings Incorporated, a Delaware corporation (“Holdings”), Roller Bearing Company of America,
Inc., a Delaware corporation (“Borrower”), each of the Subsidiaries listed on the signature pages hereto or that becomes
a party hereto pursuant to Section 30 hereof (each such Subsidiary being a “Subsidiary Pledgor”
and, collectively, the “Subsidiary Pledgors”; the Subsidiary Pledgors, Holdings and the Borrower are referred to collectively
as the “Pledgors”) and Wells Fargo Bank, National Association, as collateral agent (in such capacity, the “Collateral
Agent”) for the benefit of the Secured Parties.

 

WITNESSETH:

 

WHEREAS, the Borrower is party
to the Credit Agreement, dated as of the date hereof (as the same may be amended, restated, supplemented or otherwise modified, refinanced
or replaced from time to time, the “Credit Agreement”), among the Borrower, Holdings, the Lenders from time to time
party thereto and Wells Fargo Bank, National Association, as Administrative Agent and as Collateral Agent;

 

WHEREAS, (a) pursuant to the
Credit Agreement, the Lenders have severally agreed to make Loans to the Borrower, the Swingline Lender has agreed to make Swingline Loans
and the Letter of Credit Issuer has agreed to issue Letters of Credit for the account of the Borrower and the Restricted Subsidiaries
upon the terms and subject to the conditions set forth therein and (b) one or more Cash Management Banks or Hedge Banks may from
time to time enter into Secured Cash Management Agreements or Secured Hedge Agreements with Holdings and/or its Subsidiaries;

 

WHEREAS, pursuant to the Guarantee,
dated as of the date hereof (as amended, restated, supplemented or otherwise modified from time to time, the “Guarantee”),
each Pledgor has agreed to unconditionally and irrevocably guarantee, as primary obligor and not merely as surety, to the Collateral Agent
for the benefit of the Secured Parties, the prompt and complete payment and performance when due (whether at the stated maturity, by acceleration
or otherwise) of the Obligations (as defined below);

 

WHEREAS, the proceeds of the
Loans, the issuance of the Letters of Credit and the provision of Secured Cash Management Agreements and Secured Hedge Agreements will
be used in part to enable the Borrower to make valuable transfers to the Pledgors in connection with the operation of their respective
businesses;

 

WHEREAS, each Pledgor acknowledges
that it will derive substantial direct and indirect benefit from the making of the Loans and the issuance of the Letters of Credit and
the provision of Secured Cash Management Agreements and Secured Hedge Agreements;

 

WHEREAS, it is a condition precedent
to the obligation of the Lenders to make their respective Loans and to the obligation of the Letter of Credit Issuer to issue Letters
of Credit under the Credit Agreement that the Pledgors shall have executed and delivered this Pledge Agreement to the Collateral Agent
for the benefit of the Secured Parties; and

 

     

     

    

 

WHEREAS, (a) the Pledgors are
the legal and beneficial owners of the Equity Interests, described in Schedule 1 hereto and issued by the entities named therein (such
Equity Interests are, together with any Equity Interests of the issuer of such Equity Interests or any other Subsidiary directly held
by any Pledgor in the future (the “After-acquired Shares”), in each case, except to the extent excluded from the Collateral
for the applicable Obligations pursuant to the last paragraph of Section 2 below, referred to collectively herein as the “Pledged
Shares”) and (b) each of the Pledgors is the legal and beneficial owner of the Indebtedness described in Schedule 1 hereto (together
with any other Indebtedness owed to any Pledgor hereafter and required to be pledged pursuant to Section 9.12 of the Credit Agreement,
the “Pledged Debt”);

 

NOW, THEREFORE, in consideration
of the premises and to induce the Administrative Agent, the Collateral Agent and the Lenders to enter into the Credit Agreement and to
induce the Lenders to make their respective Loans, the Swingline Lender to make Swingline Loans and the Letter of Credit Issuers to issue
Letters of Credit for the account of the Borrower and the Restricted Subsidiaries under the Credit Agreement and to induce one or more
Lenders or Affiliates of Lenders to enter into Secured Cash Management Agreements and Secured Hedge Agreements with Holdings and/or its
Subsidiaries, the Pledgors hereby agree with the Collateral Agent, for the benefit of the Secured Parties, as follows:

 

1. Defined Terms.

 

(a)
Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in
the Credit Agreement. Sections 1.2 and 1.5 of the Credit Agreement are incorporated herein by reference, mutatis mutandis. Any term used
herein or in the Credit Agreement without definition that is defined in the UCC has the meaning given to it in the UCC.

 

(b)
“Equity Interests” shall mean, collectively, Capital Stock and Stock Equivalents.

 

(c)
“UCC” shall mean the Uniform Commercial Code as from time to time in effect in the State of New
York; provided, however, that, in the event that, by reason of mandatory provisions of law, any of the
attachment, perfection or priority of the Collateral Agent’s and the Secured Parties’ security interest in any
Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State of New York, the term
“UCC” shall mean the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the
provisions hereof relating to such attachment, perfection or priority and for purposes of definitions related to such
provisions.

 

(d)
The words “hereof”, “herein” and “hereunder” and words of similar import when used in this Pledge
Agreement shall refer to this Pledge Agreement as a whole and not to any particular provision of this Pledge Agreement, and Section references
are to Sections of this Pledge Agreement unless otherwise specified. The words “include”, “includes” and
“including” shall be deemed to be followed by the phrase “without limitation”.

 

(e)
The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms.

 

    2

     

    

 

2. Grant of Security.
Each Pledgor hereby transfers, assigns and pledges to the Collateral Agent, for the benefit of the Secured Parties, and grants to the
Collateral Agent, for the benefit of the Secured Parties, a lien on and a security interest in (the “Security Interest”)
all of such Pledgor’s right, title and interest in, to and under the following, whether now owned or existing or at any time hereafter
acquired or existing (collectively, the “Collateral”):

 

(a)
the Pledged Shares held by such Pledgor and the certificates representing such Pledged Shares and any interest of such Pledgor
in the entries on the books of the issuer of the Pledged Shares or any financial intermediary pertaining to the Pledged Shares and all
dividends, cash, warrants, rights, instruments and other property or Proceeds from time to time received, receivable or otherwise distributed
in respect of or in exchange for any or all of the Pledged Shares.

 

(b)
the Pledged Debt and the instruments evidencing the Pledged Debt owed to such Pledgor, and all interest, cash, instruments and
other property or Proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all
of such Pledged Debt; and

 

(c)
to the extent not covered by clauses (a) and (b) above, respectively, all Proceeds of any or all of the foregoing Collateral.

 

Notwithstanding the foregoing,
the Collateral for the Obligations shall not include any Excluded Stock and Stock Equivalents.

 

3. Security for Obligations.
This Pledge Agreement secures the payment of all the Obligations of each Credit Party. Without limiting the generality of the foregoing,
this Pledge Agreement secures the payment of all amounts that constitute part of the Obligations and would be owed by any of the Credit
Parties to the Secured Parties under the Credit Documents but for the fact that they are unenforceable or not allowable due to the existence
of a bankruptcy, reorganization or similar proceeding involving any Credit Party.

 

4. Delivery of the Collateral.
All certificates or instruments, if any, representing or evidencing the Collateral shall be promptly (and in any event (i) with respect
to any certificates or instruments representing or evidencing Collateral in existence on the date hereof, on the date hereof and (ii)
with respect to certificates or instruments representing or evidencing Collateral acquired after the date hereof, within 45 days of such
acquisition, or such longer period as the Collateral Agent may reasonably agree) delivered to and held by or on behalf of the Collateral
Agent pursuant hereto to the extent required by the Credit Agreement and shall be in suitable form for transfer by delivery, or shall
be accompanied by duly executed instruments of transfer or assignment in blank, all in form and substance reasonably satisfactory to
the Collateral Agent. The Collateral Agent shall have the right, at any time after the occurrence and during the continuance of an Event
of Default, subject to the First Lien Intercreditor Agreement , and with notice to the relevant Pledgor, to transfer to or to register
in the name of the Collateral Agent or any of its nominees any or all of the Pledged Shares and to exchange the certificates representing
Pledged Shares for certificates of smaller or larger denominations for any purpose consistent with this Pledge Agreement.

 

    3

     

    

  

5. Representations and
Warranties. Each Pledgor represents and warrants as follows:

 

(a)
Schedule 1 hereto (i) correctly represents as of the Closing Date (A) the issuer, the certificate number, the Pledgor and the record
and beneficial owner, the number and class and the percentage of the issued and outstanding Equity Interests of such class of all Equity
Interests held by such Pledgor (other than Excluded Stock and Stock Equivalents) and (B) the issuer, the initial principal amount, the
Pledgor and holder, date of issuance and maturity date of all Indebtedness evidenced by a promissory note or Instruments held by such
Pledgor and (ii) together with the comparable schedule to each supplement hereto, includes all Equity Interests, debt securities and promissory
notes required to be pledged hereunder. Except as set forth on Schedule 1, and except for Excluded Stock and Stock Equivalents, the Pledged
Shares represent all (or 66% in the case of pledges of the Voting Stock of Foreign Subsidiaries) of the issued and outstanding Equity
Interests of each class of Equity Interests in the issuer on the Closing Date.

 

(b)
Such Pledgor is the legal and beneficial owner of the Collateral pledged or assigned by such Pledgor hereunder free and clear of
any Lien, except for Permitted Liens and the Lien created by this Pledge Agreement.

 

(c)
As of the Closing Date, the Pledged Shares pledged by such Pledgor hereunder have been duly authorized and validly issued and,
in the case of Pledged Shares issued by a corporation, are fully paid and non-assessable.

 

(d)
The execution and delivery by such Pledgor of this Pledge Agreement and the pledge of the Collateral pledged by such Pledgor hereunder
pursuant hereto create a legal, valid and enforceable security interest in such Collateral (with respect to Collateral consisting of the
Equity Interests of Foreign Subsidiaries, to the extent the creation of such Security Interest is governed by the UCC) and, upon delivery
of such Collateral to the Collateral Agent in the State of New York, shall constitute a fully perfected first priority Lien on and security
interest in the Collateral (subject to Permitted Liens), securing the payment of the Obligations, in favor of the Collateral Agent for
the benefit of the Secured Parties (with respect to Collateral consisting of the Equity Interests of Foreign Subsidiaries, to the extent
the creation and perfection of such Security Interest is governed by the UCC), except as enforceability thereof may be limited by bankruptcy,
insolvency or other similar laws affecting creditors’ rights generally and subject to general principles of equity.

 

(e)
Such Pledgor has full power, authority and legal right to pledge all the Collateral pledged by such Pledgor pursuant to this Pledge
Agreement and this Pledge Agreement constitutes a legal, valid and binding obligation of each Pledgor (with respect to Collateral consisting
of the Equity Interests of Foreign Subsidiaries, to the extent the enforceability of such Security Interest is governed by the UCC), enforceable
in accordance with its terms, except as enforceability thereof may be limited by bankruptcy, insolvency or other similar laws affecting
creditors’ rights generally and subject to general principles of equity.

 

    4

     

    

 

6. Certification of Limited
Liability Company, Limited Partnership Interests, Equity Interests in Foreign Subsidiaries and Pledged Debt.

 

(a)
No Pledgor shall take any action to cause any membership interest, partnership interest or other equity interest of any limited
liability company or limited partnership owned or controlled by any Pledgor comprising of Collateral to be or become a “security”
within the meaning of, or to be governed by Article 8 of the UCC; provided, however in the event that any
Equity Interests in any Subsidiary that is organized as a limited liability company or limited partnership and pledged hereunder is represented
by a certificate, the applicable Pledgor shall cause such certificate to be delivered to the Collateral Agent pursuant hereto and shall
cause the issuer of such interests to elect to treat such interests as a “security” within the meaning of Article 8 of the
Uniform Commercial Code of its jurisdiction of organization or formation, as applicable, by including in its organizational documents
language substantially similar to the following and, accordingly, such interests shall be governed by Article 8 of the Uniform Commercial
Code:

 

“The Partnership/Company hereby irrevocably
elects that all membership interests in the Partnership/Company shall be securities governed by Article 8 of the Uniform Commercial Code
of [jurisdiction of organization or formation, as applicable]. Each certificate evidencing partnership/membership interests in the Partnership/Company
shall bear the following legend: “This certificate evidences an interest in [name of Partnership/LLC] and shall be a security for
purposes of Article 8 of the Uniform Commercial Code.” No change to this provision shall be effective until all outstanding certificates
have been surrendered for cancellation and any new certificates thereafter issued shall not bear the foregoing legend.”

 

(b)
Each Pledgor will comply with Section 9.12 of the Credit Agreement.

 

(c)
In the event that any Equity Interests in any Foreign Subsidiary pledged hereunder are not represented by a certificate, the Pledgors
agree not to permit such Foreign Subsidiary to issue Equity Interests represented by a certificate to any other Person.

 

7. Further Assurances.
Each Pledgor agrees that at any time and from time to time, at the expense of such Pledgor, it will execute or otherwise authorize and
does hereby authorize the filing of any and all further documents, financing statements, agreements and instruments, and take all such
further actions (including the filing and recording of financing statements, fixture filings, mortgages, deeds of trust and other documents),
which may be required under any applicable law, or which the Collateral Agent or the Administrative Agent may reasonably request, in
order (x) to perfect and protect any pledge, assignment or security interest granted or purported to be granted hereby (including the
priority thereof) or (y) to enable the Collateral Agent to exercise and enforce its rights and remedies hereunder with respect to any
Collateral.

 

8. Voting Rights; Dividends
and Distributions; Etc. 

 

(a)
So long as no Event of Default shall have occurred and be continuing:

 

(i)
Each Pledgor shall be entitled to exercise any and all voting and other consensual rights pertaining to the Collateral or any part
thereof for any purpose not prohibited by the terms of this Pledge Agreement or the other Credit Documents.

 

(ii)
The Collateral Agent shall execute and deliver (or cause to be executed and delivered) to each Pledgor all such proxies and other
instruments as such Pledgor may reasonably request for the purpose of enabling such Pledgor to exercise the voting and other rights that
it is entitled to exercise pursuant to paragraph (i) above.

 

    5

     

    

 

(b)
Subject to paragraph (c) below, each Pledgor shall be entitled to receive and retain and use, free and clear of the Lien created
by this Pledge Agreement, any and all dividends, distributions, principal and interest made or paid in respect of the Collateral to the
extent permitted by the Credit Agreement, as applicable; provided, however, that any and all noncash dividends,
interest, principal or other distributions that would constitute Pledged Shares (other than Excluded Stock and Stock Equivalents) or Pledged
Debt, whether resulting from a subdivision, combination or reclassification of the outstanding Equity Interests of the issuer of any Pledged
Shares or received in exchange for Pledged Shares or Pledged Debt or any part thereof, or in redemption thereof, or as a result of any
merger, consolidation, acquisition or other exchange of assets to which such issuer may be a party or otherwise, shall be, and shall be
forthwith delivered to the Collateral Agent to hold as Collateral and shall, if received by such Pledgor, be received in trust for the
benefit of the Collateral Agent, be segregated from the other property or funds of such Pledgor and be forthwith delivered to the Collateral
Agent as Collateral in the same form as so received (with any necessary endorsement).

 

(c)
(x) Upon written notice to a Pledgor by the Collateral Agent following the occurrence and during the continuance of an Event of
Default pursuant to Sections 11.1 and 11.5 of the Credit Agreement, or (y) upon one (1) Business Day written notice to a Pledgor by the
Collateral Agent following the occurrence and during the continuance of an Event of Default (other than as set forth in the preceding
clause (x)), in each case, subject to the terms of the First Lien Intercreditor Agreement,

 

(i)
all rights of such Pledgor to exercise or refrain from exercising the voting and other consensual rights that it would otherwise
be entitled to exercise pursuant to Section 8(a)(i) shall cease, and all such rights shall thereupon become vested in the Collateral Agent,
which shall thereupon have the sole right to exercise or refrain from exercising such voting and other consensual rights during the continuance
of such Event of Default, provided that, unless otherwise directed by the Required Lenders, the Collateral Agent shall
have the right from time to time following the occurrence and during the continuance of an Event of Default, subject to the terms of the
First Lien Intercreditor Agreement, to permit the Pledgors to exercise such rights. After all Events of Default have been cured or waived,
each Pledgor will have the right to exercise the voting and consensual rights that such Pledgor would otherwise be entitled to exercise
pursuant to the terms of Section 8(a)(i) (and the obligations of the Collateral Agent under Section 8(a)(ii) shall be reinstated);

 

(ii)
all rights of such Pledgor to receive the dividends, distributions and principal and interest payments that such Pledgor would
otherwise be authorized to receive and retain pursuant to Section 8(b) shall cease, and all such rights shall thereupon become vested
in the Collateral Agent, which, subject to the terms of the First Lien Intercreditor Agreement, shall thereupon have the sole right to
receive and hold as Collateral such dividends, distributions and principal and interest payments during the continuance of such Event
of Default. After all Events of Default have been cured or waived, the Collateral Agent shall repay to each Pledgor (without interest)
all dividends, distributions and principal and interest payments that such Pledgor would otherwise be permitted to receive, retain and
use pursuant to the terms of Section 8(b);

 

    6

     

    

 

(iii)
all dividends, distributions and principal and interest payments that are received by such Pledgor contrary to the provisions of
Section 8(b) shall be received in trust for the benefit of the Collateral Agent shall be segregated from other property or funds of such
Pledgor and shall forthwith be delivered to the Collateral Agent as Collateral in the same form as so received (with any necessary endorsements);
and

 

(iv)
in order to permit the Collateral Agent to receive all dividends, distributions and principal and interest payments to which it
may be entitled under Section 8(b) above, to exercise the voting and other consensual rights that it may be entitled to exercise pursuant
to Section 8(c)(i) above, and to receive all dividends, distributions and principal and interest payments that it may be entitled to under
Sections 8(c)(ii) and (c)(iii) above, such Pledgor shall from time to time execute and deliver to the Collateral Agent, appropriate proxies,
dividend payment orders and other instruments as the Collateral Agent may reasonably request in writing, subject to the terms of the First
Lien Intercreditor Agreement.

 

9. Transfers and Other
Liens; Additional Collateral; Etc. Subject to the terms of the First Lien Intercreditor Agreement, each Pledgor shall:

 

(a)
not (i) except as permitted by the Credit Agreement, sell or otherwise dispose of, or grant any option or warrant with respect
to, any of the Collateral or (ii) create or suffer to exist any consensual Lien upon or with respect to any of the Collateral, except
for the Lien created by this Pledge Agreement provided that in the event such Pledgor sells or otherwise disposes assets
to a Person that is not a Credit Party as permitted by the Credit Agreement, and such assets are or include any of the Collateral, upon
the request of the applicable Pledgor the Collateral Agent shall release such Collateral to such Pledgor free and clear of the Lien created
by this Pledge Agreement concurrently with the consummation of such sale subject to, if reasonably requested by the Collateral Agent,
the Collateral Agent’s receipt of a certification by the Borrower and the applicable Pledgor stating that such transaction is in
compliance with the Credit Agreement and the other Credit Documents; and

 

(b)
defend its and the Collateral Agent’s title or interest in and to all the Collateral (and in the Proceeds thereof) against
any and all Liens (other than Permitted Liens and the Lien created by this Pledge Agreement), however arising, and any and all Persons
whomsoever.

 

10. Collateral Agent Appointed
Attorney-in-Fact. Each Pledgor hereby appoints, which appointment is irrevocable (until termination of this Pledge Agreement in accordance
with Section 14) and coupled with an interest, the Collateral Agent as such Pledgor’s attorney-in-fact, with full authority in
the place and stead of such Pledgor and in the name of such Pledgor or otherwise, to take any action and to execute any instrument, in
each case after the occurrence and during the continuance of an Event of Default (and with notice to such Pledgor), that the Collateral
Agent may deem reasonably necessary or advisable to accomplish the purposes of this Pledge Agreement, including to receive, indorse and
collect all instruments made payable to such Pledgor representing any dividend, distribution or principal or interest payment in respect
of the Collateral or any part thereof and to give full discharge for the same.

 

    7

     

    

 

11. The Collateral Agent’s
Duties. The powers conferred on the Collateral Agent hereunder are solely to protect its interest in the Collateral and shall not
impose any duty upon it to exercise any such powers. Except for the safe custody of any Collateral in its possession and the accounting
for moneys actually received by it hereunder, the Collateral Agent shall have no duty as to any Collateral, as to ascertaining or taking
action with respect to calls, conversions, exchanges, maturities, tenders or other matters relative to any Pledged Shares, whether or
not the Collateral Agent or any other Secured Party has or is deemed to have knowledge of such matters, or as to the taking of any necessary
steps to preserve rights against any parties or any other rights pertaining to any Collateral. The Collateral Agent shall be deemed to
have exercised reasonable care in the custody and preservation of any Collateral in its possession if such Collateral is accorded treatment
substantially equal to that which the Collateral Agent accords its own property. The Collateral Agent shall not be responsible for or
have a duty to ascertain or inquire into any representation or warranty regarding the existence, value or collectability of the Collateral,
the existence, priority or perfection of the Collateral Agent’s Lien thereon, or any certificate prepared by any Credit Party in
connection therewith, nor shall the Collateral Agent be responsible or liable to the Lenders for any failure to monitor or maintain any
portion of the Collateral.

 

12. Remedies. Subject
to the terms of the First Lien Intercreditor Agreement, if any Event of Default shall have occurred and be continuing:

 

(a)
The Collateral Agent may exercise in respect of the Collateral, in addition to other rights and remedies provided for herein or
otherwise available to it, all the rights and remedies of a secured party upon default under the UCC or any other applicable law (whether
or not the UCC applies to the affected Collateral) and also may with notice to the relevant Pledgor, sell the Collateral or any part thereof
in one or more parcels at public or private sale or sales, at any exchange broker’s board or at any of the Collateral Agent’s
offices or elsewhere, for cash, on credit or for future delivery, at such price or prices and upon such other terms as are commercially
reasonable irrespective of the impact of any such sales on the market price of the Collateral. The Collateral Agent shall be authorized
at any such sale (if it deems it advisable to do so) to restrict the prospective bidders or purchasers of Collateral to Persons who will
represent and agree that they are purchasing the Collateral for their own account for investment and not with a view to the distribution
or sale thereof, and, upon consummation of any such sale, the Collateral Agent shall have the right to assign, transfer and deliver to
the purchaser or purchasers thereof the Collateral so sold. Each purchaser at any such sale shall hold the property sold absolutely free
from any claim or right on the part of any Pledgor, and each Pledgor hereby waives (to the extent permitted by law) all rights of redemption,
stay and/or appraisal that it now has or may at any time in the future have under any rule of law or statute now existing or hereafter
enacted. The Collateral Agent or any Secured Party shall have the right upon any such public sale, and, to the extent permitted by law,
upon any such private sale, to purchase all or any part of the Collateral so sold, and the Collateral Agent or such Secured Party may
pay the purchase price by crediting the amount thereof against the Obligations. Each Pledgor agrees that, to the extent notice of sale
shall be required by law, at least ten days’ notice to such Pledgor of the time and place of any public sale or the time after which
any private sale is to be made shall constitute reasonable notification. The Collateral Agent shall not be obligated to make any sale
of Collateral regardless of notice of sale having been given. The Collateral Agent may adjourn any public or private sale from time to
time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to
which it was so adjourned. To the extent permitted by law, each Pledgor hereby waives any claim against the Collateral Agent arising by
reason of the fact that the price at which any Collateral may have been sold at such a private sale was less than the price that might
have been obtained at a public sale, even if the Collateral Agent accepts the first offer received and does not offer such Collateral
to more than one offeree.

 

    8

     

    

 

(b)
The Collateral Agent shall apply the Proceeds of any collection or sale of the Collateral in the manner specified in Section 11.13
of the Credit Agreement. Upon any sale of the Collateral by the Collateral Agent (including pursuant to a power of sale granted by statute
or under a judicial proceeding), the receipt of the Collateral Agent or of the officer making the sale shall be a sufficient discharge
to the purchaser or purchasers of the Collateral so sold and such purchaser or purchasers shall not be obligated to see to the application
of any part of the purchase money paid over to the Collateral Agent or such officer or be answerable in any way for the misapplication
thereof.

 

(c)
The Collateral Agent may exercise any and all rights and remedies of each Pledgor in respect of the Collateral.

 

(d)
All payments received by any Pledgor in respect of the Collateral after the occurrence and during the continuance of an Event of
Default, shall be received in trust for the benefit of the Collateral Agent shall be segregated from other property or funds of such Pledgor
and shall be forthwith delivered to the Collateral Agent as Collateral in the same form as so received (with any necessary endorsement).

 

(e)
Each Pledgor acknowledges and recognizes that (a) the Collateral Agent may be unable to effect a public sale of all or a part of
the Collateral consisting of securities by reason of certain prohibitions contained in the Securities Act of 1933, 15 U.S.C. §77,
(as amended and in effect, the “Securities Act”) or the securities laws of various states (the “Blue Sky Laws”),
but may be compelled to resort to one or more private sales to a restricted group of purchasers who will be obliged to agree, among other
things, to acquire such securities for their own account, for investment and not with a view to the distribution or resale thereof, (b)
private sales so made may be at prices and upon other terms less favorable to the seller than if such securities were sold at public sales,
(c) neither the Collateral Agent nor any other Secured Party has any obligation to delay sale of any of the Collateral for the period
of time necessary to permit such securities to be registered for public sale under the Securities Act or the Blue Sky Laws, and (d) private
sales made under the foregoing circumstances shall be deemed to have been made in a commercially reasonable manner. To the maximum extent
permitted by applicable law, each Pledgor hereby waives any claim against the Collateral Agent or any Secured Party arising because the
price at which any Collateral may have been sold at a private sale was less than the price that might have been obtained at a public sale,
even if the Collateral Agent accepts the first offer received and does not offer such Collateral to more than one offeree.

 

13. Amendments, etc. with
Respect to the Obligations; Waiver of Rights. Each Pledgor shall remain obligated hereunder notwithstanding that, without any reservation
of rights against any Pledgor and without notice to or further assent by any Pledgor, (a) any demand for payment of any of the Obligations
made by the Collateral Agent or any other Secured Party may be rescinded by such party and any of the Obligations continued, (b) the
Obligations, or the liability of any other party upon or for any part thereof, or any collateral security or guarantee therefor or right
of offset with respect thereto, may, from time to time, in whole or in part, be renewed, extended, amended, modified, accelerated, compromised,
waived, surrendered or released by the Collateral Agent or any other Secured Party, (c) the Credit Agreement, the other Credit Documents
and any other documents executed and delivered in connection therewith and the Secured Cash Management Agreements, Secured Hedge Agreements
and any other documents executed and delivered in connection therewith may be amended, modified, supplemented or terminated, in whole
or in part, as the Administrative Agent (or the Required Lenders, as the case may be, or, in the case of any Secured Hedge Agreement
or Secured Cash Management Agreement, the Hedge Bank or Cash Management Bank party thereto) may deem advisable from time to time and
(d) any collateral security, guarantee or right of offset at any time held by the Collateral Agent or any other Secured Party for the
payment of the Obligations may be sold, exchanged, waived, surrendered or released. Neither the Collateral Agent nor any other Secured
Party shall have any obligation to protect, secure, perfect or insure any Lien at any time held by it as security for the Obligations
or for this Pledge Agreement or any property subject thereto. When making any demand hereunder against any Pledgor, the Collateral Agent
or any other Secured Party may, but shall be under no obligation to, make a similar demand on any Pledgor or any other Person, and any
failure by the Collateral Agent or any other Secured Party to make any such demand or to collect any payments from any Pledgor or any
other Person or any release of the Company or any Pledgor or any other Person shall not relieve any Pledgor in respect of which a demand
or collection is not made or any Pledgor not so released of its several obligations or liabilities hereunder, and shall not impair or
affect the rights and remedies, express or implied, or as a matter of law, of the Collateral Agent or any other Secured Party against
any Pledgor. For the purposes hereof “demand” shall include the commencement and continuance of any legal proceedings.

 

    9

     

    

 

14. Continuing Security
Interest; Assignments Under the Credit Agreement; Release.

 

(a)
This Pledge Agreement shall remain in full force and effect and be binding in accordance with and to the extent of its terms upon
each Pledgor and the successors and assigns thereof, and shall inure to the benefit of the Collateral Agent and the other Secured Parties
and their respective successors, endorsees, transferees and assigns until all the Obligations under the Credit Documents (other than,
in each case, any contingent indemnity obligations not then due, any Secured Hedge Obligations or any Secured Cash Management Obligations)
shall have been satisfied by payment in full, the Commitments shall be terminated and all Letters of Credit have expired or terminated
and after all Letter of Credit Outstandings have been reduced to zero (or all such Letters of Credit and Letter of Credit Outstandings
have been Cash Collateralized in a manner reasonably satisfactory to the applicable Letter of Credit Issuers), notwithstanding that from
time to time during the term of the Credit Agreement the Credit Parties may be free from any Obligations.

 

(b)
Any Pledgor shall automatically be released from its obligations hereunder and the Collateral of such Pledgor shall be automatically
released as it relates to the Obligations (as defined in the Credit Agreement) upon such Pledgor ceasing to be a Credit Party in accordance
with Section 13.1 of the Credit Agreement.

 

(c)
The Collateral shall be automatically released from the Liens of this Pledge Agreement as it relates to the Obligations (as defined
in the Credit Agreement) (i) to the extent provided for in Section 13.1 of the Credit Agreement and (ii) upon the effectiveness of any
written consent to the release of the security interest granted in such Collateral pursuant to Section 13.1 of the Credit Agreement. Any
such release in connection with any sale, transfer or other disposition of such Collateral to a Person that is not a Credit Party permitted
under the Credit Agreement shall result in such Collateral being sold, transferred or disposed of, as applicable, free and clear of the
Liens of this Pledge Agreement.

 

(d)
In connection with any termination or release pursuant to the foregoing paragraph (a), (b) or (c), the Collateral Agent shall execute
and deliver to any Pledgor or authorize the filing of, at such Pledgor’s expense, all documents that such Pledgor shall reasonably
request to evidence such termination or release. Any execution and delivery of documents pursuant to this Section 14 shall be without
recourse to or warranty by the Collateral Agent.

 

15. Reinstatement.
Each Pledgor further agrees that, if any payment made by any Credit Party or other Person and applied to the Obligations is at any time
annulled, avoided, set aside, rescinded, invalidated, declared to be fraudulent or preferential or otherwise required to be refunded
or repaid, or the Proceeds of Collateral are required to be returned by any Secured Party to such Credit Party, its estate, trustee,
receiver or any other Person, including any Pledgor, under any bankruptcy law, state, federal or foreign law, common law or equitable
cause, then, to the extent of such payment or repayment, any Lien or other Collateral securing such liability shall be and remain in
full force and effect, as fully as if such payment had never been made or, if prior thereto the Lien granted hereby or other Collateral
securing such liability hereunder shall have been released or terminated by virtue of such cancellation or surrender), such Lien or other
Collateral shall be reinstated in full force and effect, and such prior cancellation or surrender shall not diminish, release, discharge,
impair or otherwise affect any Lien or other Collateral securing the obligations of any Pledgor in respect of the amount of such payment.

 

16. Notices. All notices,
requests and demands pursuant hereto shall be made in accordance with Section 13.2 of the Credit Agreement. All communications and notices
hereunder to any Pledgor shall be given to it in care of Holdings at Holdings’ address set forth in Section 13.2 of the Credit
Agreement.

 

17. Counterparts.
This Pledge Agreement may be executed by one or more of the parties to this Pledge Agreement 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. The words “execution,” “signed,” “signature,” and words of like import in this Pledge
Agreement shall be deemed to include electronic signatures or electronic records, each of which shall be of the same legal effect, validity
or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent
and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York
State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

 

    10

     

    

 

18. Severability.
Any provision of this Pledge Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition
or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

19. Integration. This
Pledge Agreement together with the other Credit Documents represents the agreement of each of the Pledgors with respect to the subject
matter hereof and there are no promises, undertakings, representations or warranties by the Collateral Agent or any other Secured Party
relative to the subject matter hereof not expressly set forth herein or in the other Credit Documents.

 

20. Amendments in Writing;
No Waiver; Cumulative Remedies.

 

(a)
None of the terms or provisions of this Pledge Agreement may be waived, amended, supplemented or otherwise modified except by a
written instrument executed by the affected Pledgor and the Collateral Agent in accordance with Section 13.1 of the Credit Agreement.

 

(b)
Neither the Collateral Agent nor any Secured Party shall by any act (except by a written instrument pursuant to Section 20(a) hereof),
delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in any Default or
Event of Default or in any breach of any of the terms and conditions hereof. No failure to exercise, nor any delay in exercising, on the
part of the Collateral Agent or any other Secured Party, any right, power or privilege hereunder shall operate as a waiver thereof. No
single or partial exercise of any right, power or privilege hereunder shall preclude any other or further exercise thereof or the exercise
of any other right, power or privilege. A waiver by the Collateral Agent or any other Secured Party of any right or remedy hereunder on
any one occasion shall not be construed as a bar to any right or remedy that the Collateral Agent or such other Secured Party would otherwise
have on any future occasion.

 

(c)
The rights, remedies, powers and privileges herein provided are cumulative, may be exercised singly or concurrently and are not
exclusive of any other rights or remedies provided by law.

 

21. Section Headings.
The Section headings used in this Pledge Agreement are for convenience of reference only and are not to affect the construction hereof
or be taken into consideration in the interpretation hereof.

 

22. Successors and Assigns.
This Pledge Agreement shall be binding upon the successors and assigns of each Pledgor and shall inure to the benefit of the Collateral
Agent and the other Secured Parties and their respective successors and assigns, except that no Pledgor may assign, transfer or delegate
any of its rights or obligations under this Pledge Agreement without the prior written consent of the Collateral Agent.

 

23. WAIVER OF JURY TRIAL.
EACH PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS PLEDGE AGREEMENT,
ANY OTHER CREDIT DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

    11

     

    

 

24. Submission to Jurisdiction;
Waivers. Each party hereto irrevocably and unconditionally:

 

(a)
submits for itself and its property in any legal action or proceeding relating to this Pledge Agreement and the other Credit Documents
to which it is a party to the exclusive general jurisdiction of the courts of the State of New York sitting in New York County, the courts
of the United States of America for the Southern District of New York and appellate courts from any thereof;

 

(b)
consents that any such action or proceeding shall be brought in such courts and waives any objection that it may now or hereafter
have to the venue of any such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient
court and agrees not to plead or claim the same or to commence or support any such action or proceeding in any other courts;

 

(c)
agrees that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified
mail (or any substantially similar form of mail), postage prepaid, to such Person at its address referred to in Section 16 or at such
other address of which the Collateral Agent shall have been notified pursuant thereto;

 

(d)
agrees that nothing herein shall affect the right of the Administrative Agent, any Lender or another Secured Party to effect service
of process in any other manner permitted by law or to commence legal proceedings or otherwise proceed against Holdings or the Borrower
or any other Credit Party in any other jurisdiction; and

 

(e)
waives, to the maximum extent not prohibited by law, any right it may have to claim or recover in any legal action or proceeding
referred to in this Section 24 any special, exemplary, punitive or consequential damages.

 

25. GOVERNING LAW.
THIS PLEDGE AGREEMENT 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.

 

26. Intercreditor Agreement.
Notwithstanding anything herein to the contrary, the liens and security interests granted to the Collateral Agent pursuant to this Pledge
Agreement and the exercise of any right or remedy by the Collateral Agent hereunder, are subject to the provisions of any First Lien
Intercreditor Agreement. In the event of any conflict between the terms of any First Lien Intercreditor Agreement and the terms of this
Pledge Agreement, the terms of such First Lien Intercreditor Agreement shall govern and control. No right, power or remedy granted to
the Collateral Agent hereunder shall be exercised by the Collateral Agent, and no direction shall be given by the Collateral Agent, in
contravention of any such First Lien Intercreditor Agreement.

 

27. [Reserved].

 

28. Enforcement Expenses;
Indemnification.

 

(a)
Each Pledgor agrees to pay any and all reasonable and documented out of pocket expenses (including all reasonable fees and disbursements
of one primary counsel and one local counsel in each relevant jurisdiction) that may be paid or incurred by any Secured Party in enforcing,
or obtaining advice of counsel in respect of, any rights with respect to, or collecting, any or all of the Obligations and/or enforcing
any rights with respect to, or collecting against, such Pledgor under this Pledge Agreement.

 

(b)
Each Pledgor agrees to pay, and to save the Collateral Agent and the Secured Parties harmless from, any and all liabilities with
respect to, or resulting from any delay in paying, any and all stamp, excise, sales or other taxes that may be payable or determined to
be payable with respect to any of the Collateral or in connection with any of the transactions contemplated by this Pledge Agreement.

 

(c)
Each Pledgor agrees to pay, and to save the Collateral Agent and the Secured Parties harmless from, any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever with respect
to the execution, delivery, enforcement, performance and administration of this Pledge Agreement to the extent the Borrower would be required
to do so pursuant to Section 13.5 of the Credit Agreement.

 

(d)
The agreements in this Section 28 shall survive repayment of the Obligations and all other amounts payable under the Credit Agreement
and the other Credit Documents.

 

    12

     

    

 

29. Acknowledgments.
Each party hereto hereby acknowledges that:

 

(a)
it has been advised by counsel in the negotiation, execution and delivery of this Pledge Agreement and the other Credit Documents
to which it is a party;

 

(b)
neither the Collateral Agent nor any other Secured Party has any fiduciary relationship with or duty to any Pledgor arising out
of or in connection with this Pledge Agreement or any of the other Credit Documents, and the relationship between the Pledgors, on the
one hand, and the Collateral Agent and the other Secured Parties, on the other hand, in connection herewith or therewith is solely that
of debtor and creditor; and

 

(c)
no joint venture is created hereby or by the other Credit Documents or otherwise exists by virtue of the transactions contemplated
hereby among the Lenders and any other Secured Party or among the Pledgors and the Lenders and any other Secured Party.

 

30. Additional Pledgors.
Each Subsidiary that is required to become a party to this Pledge Agreement pursuant to Section 9.11 of the Credit Agreement shall become
a Subsidiary Pledgor, with the same force and effect as if originally named as a Pledgor herein, for all purposes of this Pledge Agreement
upon execution and delivery by such Subsidiary of a written supplement substantially in the form of Annex A hereto. The execution and
delivery of any instrument adding an additional Pledgor as a party to this Pledge Agreement shall not require the consent of any other
Pledgor hereunder. The rights and obligations of each Pledgor hereunder shall remain in full force and effect notwithstanding the addition
of any new Pledgor as a party to this Pledge Agreement.

 

[Signature Pages Follow]

 

    13

     

    

 

IN WITNESS WHEREOF, each of
the undersigned has caused this Pledge Agreement to be duly executed and delivered by its duly authorized officer as of the day and year
first above written.

 

	 	RBC BEARINGS INCORPORATED,
 as Pledgor
	 	 
	 	By:	/s/ Daniel A. Bergeron
	 		Name:	Daniel A. Bergeron
	 		Title:	Vice President and Chief Operating Officer

 

	 	ROLLER
                    BEARING COMPANY OF AMERICA, INC.,
  as Pledgor

	 	 	 	 
	 	By:	/s/
    Daniel A. Bergeron
	 		Name:	Daniel A. Bergeron
	 		Title:	Vice President and Chief Operating Officer

 

[Signature Page to Pledge Agreement]

 

     

     

    

 

	 	RBC PRECISION PRODUCTS, INC.,
	 	INDUSTRIAL TECTONICS BEARINGS CORPORATION,
	 	RBC NICE BEARINGS, INC.,
	 	RBC LUBRON BEARING SYSTEMS, INC.,
	 	RBC OKLAHOMA, INC.,
	 	RBC AIRCRAFT PRODUCTS, INC.,
	 	RBC SOUTHWEST PRODUCTS, INC.,
	 	ALL POWER MANUFACTURING CO.,
	 	WESTERN PRECISION AERO LLC,
	 	CLIMAX METAL PRODUCTS COMPANY,
	 	RBC TURBINE COMPONENTS LLC,
	 	DODGE ACQUISITION CO.,
	 	DODGE MECHANICAL POWER TRANSMISSION COMPANY, INC.,
	 	AIRTOMIC, LLC,
	 	SARGENT AEROSPACE & DEFENSE, LLC,
	 	SONIC INDUSTRIES, INC.,

	 	RBC AEROSTRUCTURES LLC,
	 	each as a Pledgor
	 	 	 	 
	 	By:	/s/ John Feeney
	 	 	Name:	John Feeney
	 	 	Title:	Vice President and Secretary

  

[Signature Page to Pledge Agreement]

 

     

     

    

 

	 	WELLS FARGO
    BANK, NATIONAL ASSOCIATION, as Administrative Agent and Collateral Agent
	 	 
	 	By:	/s/ Evan Ingwers
	 		Name:	Evan Ingwers
	 		Title:	Senior Vice President

 

[Signature Page to Pledge Agreement]

 

     

     

    

 

ANNEX A

TO THE PLEDGE AGREEMENT

 

SUPPLEMENT NO. [ ] dated
as of [                             ] to the PLEDGE AGREEMENT (the “Pledge Agreement”),
dated as of November 1, 2021, among RBC Bearings Incorporated, a Delaware corporation, (“Holdings”), Roller Bearing
Company of America, Inc., a Delaware corporation, (the “Borrower”), each of the Subsidiaries listed on the signature
pages thereto or that becomes a party thereto pursuant to Section 30 thereof (each such Subsidiary being a “Subsidiary Pledgor”
and, collectively, the “Subsidiary Pledgors”; the Subsidiary Pledgors, Holdings and the Borrower are referred to collectively
as the “Pledgors”) and Wells Fargo Bank, National Association, as Collateral Agent (the “Collateral Agent”)
for the benefit of the Secured Parties.

 

A.
Reference is made to the Credit Agreement dated as of the date of the Pledge Agreement (as the same may be amended, restated, supplemented
or otherwise modified, refinanced or replaced from time to time, the “Credit Agreement”) among the Borrower, Holdings,
the Lenders from time to time party thereto and Wells Fargo Bank, National Association, as Administrative Agent, Collateral Agent, Swingline
Lender and Letter of Credit Issuer and the Guarantee dated as of the date of the Pledge Agreement (as the same may be amended, restated,
supplemented and or otherwise modified from time to time, the “Guarantee”), among the Guarantors party thereto and
the Collateral Agent.

 

B.
Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Pledge Agreement.

 

C.
The Pledgors have entered into the Pledge Agreement in order to induce the Administrative Agent, the Collateral Agent and the Lenders
to enter into the Credit Agreement, to induce the Lenders to make their respective Loans to the Borrower, the Swingline Lender to make
Swingline Loans and the Letter of Credit Issuers to issue Letters of Credit for the account of the Borrower and the Restricted Subsidiaries
under the Credit Agreement and to induce one or more Lenders or Affiliates of Lenders to enter into Secured Cash Management Agreements
and Secured Hedge Agreements with Holdings and/or its Subsidiaries.

 

D.
The undersigned Guarantors (each an “Additional Pledgor”) are (a) the legal and beneficial owners of the Equity
Interests described in Schedule 1 hereto and issued by the entities named therein (such Equity Interests, together with any Equity Interests
of the issuer of such Pledged Shares or any other Subsidiary held directly by any Additional Pledgor in the future (the “After-acquired
Additional Pledged Shares”), in each case, except to the extent excluded from the Collateral for the applicable Obligations
pursuant to the penultimate paragraph of Section 1 below, referred to collectively herein as the “Additional Pledged Shares”)
and (b) the legal and beneficial owners of the Indebtedness described in Schedule 1 hereto (together with any other Indebtedness owed
to any Additional Pledgor hereafter and required to be pledged pursuant to Section 9.12 of the Credit Agreement, the “Additional
Pledged Debt”).

 

E.
Section 9.11 of the Credit Agreement and Section 30 of the Pledge Agreement provide that additional Subsidiaries may become Subsidiary
Pledgors under the Pledge Agreement by execution and delivery of an instrument in the form of this Supplement. Each undersigned Additional
Pledgor is executing this Supplement in accordance with the requirements of Section 9.11 of the Credit Agreement and Section 30 of the
Pledge Agreement to pledge to the Collateral Agent for the benefit of the Secured Parties the Additional Pledged Shares and the Additional
Pledged Debt and to become a Subsidiary Pledgor under the Pledge Agreement in order to induce the Lenders to make their respective Loans
to the Borrower, the Swingline Lenders to make Swingline Loans and the Letter of Credit Issuers to issue Letters of Credit for the account
of the Borrower and the Restricted Subsidiaries under the Credit Agreement and to induce one or more Lenders or Affiliates of Lenders
to enter into Secured Cash Management Agreements and Secured Hedge Agreements with Holdings and/or its Subsidiaries.

 

    A-1

     

    

 

Accordingly, the Collateral
Agent and each undersigned Additional Pledgor agree as follows:

 

SECTION 1.
Each Additional Pledgor by its signature hereby transfers, assigns and pledges to the Collateral Agent, for the benefit of the
Secured Parties, and hereby grants to the Collateral Agent, for the benefit of the Secured Parties, a security interest in all of such
Additional Pledgor’s right, title and interest in the following, whether now owned or existing or hereafter acquired or existing
(collectively, the “Additional Collateral”):

 

(a)
the Additional Pledged Shares held by such Additional Pledgor and the certificates representing such Additional Pledged Shares
and any interest of such Additional Pledgor in the entries on the books of the issuer of the Additional Pledged Shares or any financial
intermediary pertaining to the Additional Pledged Shares and all dividends, cash, warrants, rights, instruments and other property or
Proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the Additional
Pledged Shares; and

 

(b)
the Additional Pledged Debt and the instruments evidencing the Additional Pledged Debt owed to such Additional Pledgor, and all
interest, cash, instruments and other property or Proceeds from time to time received, receivable or otherwise distributed in respect
of or in exchange for any or all of such Additional Pledged Debt.

 

Notwithstanding the foregoing,
the Additional Collateral for the Obligations shall not include any Excluded Stock and Stock Equivalents.

 

For purposes of the Pledge Agreement,
the Collateral shall be deemed to include the Additional Collateral.

 

SECTION 2.
Each Additional Pledgor by its signature below becomes a Pledgor under the Pledge Agreement with the same force and effect as if
originally named therein as a Pledgor, and each Additional Pledgor hereby agrees to all the terms and provisions of the Pledge Agreement
applicable to it as a Pledgor thereunder. Each reference to a “Subsidiary Pledgor” or a “Pledgor” in the Pledge
Agreement shall be deemed to include each Additional Pledgor. The Pledge Agreement is hereby incorporated herein by reference.

 

SECTION 3.
Each Additional Pledgor represents and warrants as follows:

 

(a)
Schedule 1 hereto correctly represents as of the date hereof (A) the issuer, the certificate number, the Additional Pledgor and
registered owner, the number and class and the percentage of the issued and outstanding Equity Interests of such class of all Additional
Pledged Shares and (B) the issuer, the initial principal amount, the Additional Pledgor and holder, date of and maturity date of all Additional
Pledged Debt. Except as set forth on Schedule 1 and except for Excluded Stock and Stock Equivalents, the Additional Pledged Shares represent
all (or 66% in the case of pledges of the Voting Stock of Foreign Subsidiaries) of the issued and outstanding Equity Interests of each
class of Equity Interests of the issuer on the date hereof.

  

(b)
Such Additional Pledgor is the legal and beneficial owner of the Additional Collateral pledged or assigned by such Additional Pledgor
hereunder free and clear of any Lien, except for the Lien created by this Supplement to the Pledge Agreement.

 

    A-2

     

    

 

(c)
As of the date of this Supplement, the Additional Pledged Shares pledged by such Additional Pledgor hereunder have been duly authorized
and validly issued and, in the case of Additional Pledged Shares issued by a corporation, are fully paid and non-assessable.

 

(d)
The execution and delivery by such Additional Pledgor of this Supplement and the pledge of the Additional Collateral pledged by
such Additional Pledgor hereunder pursuant hereto create a valid and perfected first-priority security interest in the Additional Collateral
(with respect to Collateral consisting of the Equity Interests of Foreign Subsidiaries, to the extent the creation of such Security Interest
is governed by the UCC) (subject to Permitted Liens), and upon delivery of such Additional Collateral to the Collateral Agent in the State
of New York, shall constitute a fully perfected lien and security interest in the Additional Collateral (with respect to Collateral consisting
of the Equity Interests of Foreign Subsidiaries, to the extent the creation and perfection of such Security Interest is governed by the
UCC), securing the payment of the Obligations, in favor of the Collateral Agent for the benefit of the Secured Parties.

 

(e)
Such Additional Pledgor has full power, authority and legal right to pledge all the Additional Collateral pledged by such Additional
Pledgor pursuant to this Supplement, and this Supplement constitutes a legal, valid and binding obligation of each Additional Pledgor
(with respect to Collateral consisting of the Equity Interests of Foreign Subsidiaries, to the extent the enforceability of such Security
Interest is governed by the UCC), enforceable in accordance with its terms, except as enforceability thereof may be limited by bankruptcy,
insolvency or other similar laws affecting creditors’ rights generally and subject to general principles of equity.

 

SECTION 4.
This Supplement may be executed by one or more of the parties to this Supplement 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 Supplement signed by all the parties shall be lodged with the Collateral Agent and Holdings.
This Supplement shall become effective as to each Additional Pledgor when the Collateral Agent shall have received counterparts of this
Supplement that, when taken together, bear the signatures of such Additional Pledgor and the Collateral Agent.

 

SECTION 5.
Except as expressly supplemented hereby, the Pledge Agreement shall remain in full force and effect.

 

SECTION 6.
THIS SUPPLEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

SECTION 7.
Any provision of this Supplement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof and in the Pledge Agreement,
and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other
jurisdiction.

 

SECTION 8.
All notices, requests and demands pursuant hereto shall be made in accordance with Section 16 of the Pledge Agreement. All communications
and notices hereunder to each Additional Pledgor shall be given to it in care of Holdings at Holdings’ address set forth in Section
13.2 of the Credit Agreement.

 

[Signature Pages Follow]

 

    A-3

     

    

 

 

IN WITNESS WHEREOF, each Additional
Pledgor and the Collateral Agent have duly executed this Supplement to the Pledge Agreement as of the day and year first above written.

 

	 	[NAME OF ADDITIONAL PLEDGOR]
	 	 	 
	 	By:	
	 	 	Name:
	 	 	Title:

 

	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Collateral Agent
	 	 	 
	 	By:	
	 	 	Name:
	 	 	Title:

 

[Supplement to the Pledge Agreement]

 

     

     

    

 

SCHEDULE 1

TO SUPPLEMENT NO. [ ]

TO THE PLEDGE AGREEMENT

 

Pledged Shares

 

	Record 

owner	 	Issuer	 	Certificate No.	 	Number of Shares	 	% of 

Shares 

Owned
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

 

Pledged Debt

 

	Payee	 	Issuer	 	Principal 

Amount	 	Date of

 Instrument	 	Maturity

 Date

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