Document:

Exhibit 10.6

 

EXECUTION
VERSION

 

BARCLAYS

745 Seventh Avenue

New York, New York 10019

 

CONFIDENTIAL

 

February 15, 2021

 

Regal Beloit Corporation

200 State Street

Beloit, Wisconsin 53511

Attention: Mary Fetch

 

Project Phoenix

$2,126,000,000 364-Day Bridge Facility

Commitment Letter

 

Ladies and Gentlemen:

 

Regal
Beloit Corporation, a Wisconsin corporation (the “Borrower” or “you”),
has advised Barclays Bank PLC (“Barclays” and, together with any Additional Commitment Parties (as defined
below) the “Commitment Parties”, “we” or “us”) that
you intend (a) to consummate the Transactions (as defined in Exhibit A attached hereto) and (b) in connection with
the Transactions you intend to borrow up to $2,126,000,000 in aggregate principal amount of senior bridge loans under the 364-day
senior unsecured bridge loan credit facility (the “Bridge Facility”) described in the Summary of Principal
Terms and Conditions attached as Exhibit B hereto (the “Term Sheet”, and together with this commitment
letter and the other exhibits hereto, collectively, this “Commitment Letter”). Capitalized terms used
but not defined herein shall have the meanings assigned to them in the exhibits attached hereto.

 

		1.	Commitments and Engagements.

 

In connection with
the foregoing, Barclays is pleased to advise you of its commitment to provide 100% of the aggregate principal amount of the Bridge
Facility on the terms and subject only to the conditions set forth in this Commitment Letter; provided that the aggregate
amount of commitments with respect to the Bridge Facility shall be reduced at any time after the date hereof as and to the extent
set forth in the Term Sheet (under “Mandatory Prepayments and Reductions in Commitments” or “Voluntary Prepayments
and Reductions in Commitments”) or the Bridge Facility Documentation, as applicable. The commitments and other obligations
of each of Barclays and any other Commitment Party or Qualified Lender assuming a portion of the commitment in accordance herewith
under this Commitment Letter are several and not joint.

 

     

     

    

 

		2.	Titles and Roles.

 

It is agreed that Barclays
will act as sole lead arranger and sole bookrunner for the Bridge Facility (in such capacities, the “Lead Arranger”)
and (ii) Barclays will act as sole administrative agent for the Bridge Facility (in such capacity, the “Administrative
Agent”). Barclays will have “left” placement in all marketing materials or other documentation used in
connection with the Bridge Facility (and all associated rights). You may (in consultation with the Lead Arranger) confer to one
or more banks or financial institutions (the “Additional Commitment Parties”) additional “agent-only”
titles in respect of the Bridge Facility; provided that each such Additional Commitment Party or affiliates thereof (a) shall
commit to providing a percentage of the aggregate principal amount of the Bridge Facility at least commensurate with the economics
and fees awarded to such Additional Commitment Party and its affiliates, (b) shall assume a pro rata portion of Barclays’
commitment in respect of the Spinco Bridge Facility and (c) shall assume a pro rata portion of Barclays’ commitment
in respect of the Bridge Facility by executing customary joinder documentation or an amendment to, or amendment and restatement
of, this Commitment Letter and the Fee Letters or shall become a Lender under the Bridge Facility Documentation, as applicable,
and Barclays’ commitment in respect of the Bridge Facility shall be permanently reduced by the amount of the commitments
of such Additional Commitment Party. You and we agree that no other agents, co-agents, lead arrangers, joint bookrunners or managers
will be appointed and no other titles will be awarded (in each case, other than as set forth above) and no compensation (other
than that expressly contemplated by this Commitment Letter and the Fee Letters (as defined below)) will be paid to any person for
its commitment in respect of the Bridge Facility or acting as an agent in respect of the Bridge Facility or in connection with
the arrangement and/or syndication of the Bridge Facility unless you and Barclays shall so agree.

 

		3.	Syndication.

 

The Lead Arranger reserves
the right, prior to and/or after the execution of the Bridge Facility Documentation, to syndicate the Bridge Facility to a group
of financial institutions (together with the Commitment Parties, the “Lenders”) identified by the Lead
Arranger that either (a) have been identified by you pursuant to the syndication strategy mutually agreed by us and you prior
to the date hereof (such Lenders, the “Syndication Strategy Lenders”) or (b) (i) until the
date that is 60 days after the date hereof, are acceptable to the Borrower in its sole discretion and (ii) following the date
that is 60 days after the date hereof, if and for so long as a Successful Syndication (as defined in the Arranger Fee Letter) has
not been achieved, are selected by the Lead Arranger in consultation with the Borrower; provided that in any event, the
Lead Arranger agrees not to syndicate any of the commitments with respect to the Bridge Facility to (i) any financial institutions
or other persons designated in writing by you to us prior to the date hereof (or affiliates of the foregoing that are either identified
by you to the Lead Arranger in writing or readily identifiable on the basis of their name, other than any affiliate that is a bona
fide diversified debt fund unless separately identified in writing under clause (b)(i)) or (ii) any of your or your subsidiaries’
competitors that is in the same or a similar line of business as you and your subsidiaries designated in writing by you from time
to time (or affiliates of such competitors that are either identified by you to the Lead Arranger in writing or readily identifiable
on the basis of their name, other than any affiliate that is a bona fide diversified debt fund unless separately identified in
writing under clause (b)(i)) (collectively, “Disqualified Lenders”); provided that any update
to the list of Disqualified Lenders shall not apply retroactively to disqualify any parties that have previously acquired, or entered
into a binding agreement to acquire, an assignment or participation interest in the Bridge Facility with respect to such previously
acquired assignment or participation interest. Barclays’ commitment hereunder shall be reduced dollar-for-dollar as and when
commitments for the Bridge Facility are received from Lenders selected in accordance with this Section 3, to the extent such
Lenders are Qualified Lenders (as defined below) and become party to the Bridge Facility Documentation (including pursuant to an
assignment and assumption agreement executed pursuant to the Bridge Facility Documentation) or otherwise party to this Commitment
Letter pursuant to joinder documentation or an amendment to, or amendment and restatement of, this Commitment Letter pursuant to
documentation reasonably satisfactory to Barclays and you (in each case, which you agree to execute promptly upon Barclays’
request). Notwithstanding the foregoing, in no event will the commitments of the Commitment Parties hereunder be reduced prior
to the initial funding of the Bridge Facility as the result of the Lead Arranger’s receipt of commitments from Lenders that
are not Qualified Lenders (as defined below). To that end, unless agreed in writing by you, (a) no Commitment Party shall
be relieved, released or novated from its obligations hereunder (including, but not limited to, its obligation to fund its commitment
hereunder on the Closing Date) in connection with any syndication, assignment or participation of the Bridge Facility to a person
that is not a Qualified Lender, including its commitment in respect thereof, until after the funding under the Bridge Facility
on the Closing Date has occurred and (b) other than in connection with any syndication, assignment or participation of the
Bridge Facility to a person that is a Qualified Lender, each Commitment Party shall retain exclusive control over all rights and
obligations with respect to its commitments in respect of the Bridge Facility, including all rights with respect to consents, waivers,
modifications, supplements and amendments, until the Closing Date has occurred. As used herein, “Qualified Lender”
means, collectively, (1) the Syndication Strategy Lenders and (2) any Lender having, upon first becoming party to this
Commitment Letter or the applicable Bridge Facility Documentation as described above, a rating of its non-credit-enhanced, senior
unsecured long-term debt by S&P (as defined below) and Moody’s (as defined below) of BBB- or Baa3 or better.

 

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The
Lead Arranger intends to commence syndication efforts promptly upon the execution of this Commitment Letter by you and until the
earlier of (x) the Closing Date and (y) the completion of a Successful Syndication (as defined in the Arranger Fee Letter)
(such later date, the “Syndication Date”), you agree to, and (to the extent not prohibited by the Merger
Agreement as in effect on the date of your acceptance of this Commitment Letter (the “Signing Date”))
to use your commercially reasonable efforts to cause Parent and Spinco to, assist the Lead Arranger in completing a syndication
that is reasonably satisfactory to us and you as soon thereafter as practicable. Such assistance shall include your using commercially
reasonable efforts to (a) ensure that any syndication efforts benefit from your existing lending and investment banking relationships
(and to the extent not prohibited by the Merger Agreement as in effect on the Signing Date, Parent’s and Spinco’s existing
banking relationships), (b) facilitate direct contact (which, if you and we shall agree, may be a conference, video or electronic
call) between senior management, non-legal representatives and advisors of you (and to the extent not prohibited by the Merger
Agreement as in effect on the Signing Date, to ensure such contact between Parent’s and Spinco’s senior management,
non-legal representatives and advisors), on the one hand, and the proposed Lenders, on the other hand, in all such cases at times
and places mutually agreed upon, (c) to the extent requested by the Lead Arranger, assist (and to the extent not prohibited
by the Merger Agreement as in effect on the Signing Date, use commercially reasonable efforts to cause Parent and Spinco to assist)
in the preparation of a customary confidential information memorandum for the Bridge Facility and other customary marketing materials
to be used in connection with the syndication, (d) host, with the Lead Arranger, a reasonable number of meetings (limited
to one “bank meeting”, unless otherwise deemed necessary in the reasonable judgment of the Lead Arranger) of prospective
Lenders (or, if you and we shall agree, a conference, video or electronic call in lieu thereof), at times and locations to be mutually
agreed upon (and to the extent not prohibited by the Merger Agreement as in effect on the Signing Date, using your commercially
reasonable efforts to cause representatives of Parent and Spinco to be available for such meetings), (e) procure, at your
expense, public corporate credit or family ratings of the Borrower from each of Standard & Poor’s Financial Services LLC
(“S&P”) and Moody’s Investors Service, Inc. (“Moody’s”)
and (f) ensure that there is no issuance, offering, placement, arrangement or syndication of any debt securities or
syndicated or other bank financing or announcement thereof by or on behalf of you or your subsidiaries, and to the extent not prohibited
by the Merger Agreement as in effect on the Signing Date, use commercially reasonable efforts to ensure that there is no issuance,
offering, placement, arrangement or syndication of any debt securities or syndicated or other bank financing or announcement thereof
by or on behalf of Spinco or its subsidiaries, in each case if such issuance, offering, placement, arrangement or syndication would
reasonably be expected to materially impair the primary syndication of the Bridge Facility or the sale or placement of any senior
notes issued to refinance or replace the Bridge Facility other than: (i) borrowings under the revolving credit facility under
the Existing RMT Partner Credit Agreement; (ii) subsidiary financings through local facilities; (iii) ordinary course
working capital facilities, capital leases, purchase money indebtedness and equipment financings; (iv) deferred purchase price
obligations; (v) the arrangement, syndication and borrowing of the Spinco Bridge Facility and the Backstop Bridge Facility
(each, as defined in Exhibit A hereto); and (vi) an increase in the principal amount of the commitments in respect of
the revolving credit facility under the Existing RMT Partner Credit Agreement not to exceed $500,000,000). You further agree to
reasonably cooperate with us with regard to immaterial changes reasonably requested by potential Lenders prior to the Successful
Syndication of the Bridge Facility.

 

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The Lead Arranger will,
in consultation with you (including as to the allocation of commitments), manage all aspects of the syndication of the Bridge Facility
(in each case subject to the provisions set forth in this Commitment Letter and to your consent rights set forth in the second
preceding paragraph), including decisions as to the selection of institutions to be approached (subject to your consent rights
set forth in the second preceding paragraph and which may not be Disqualified Lenders) and when they will be approached, when their
commitments will be accepted, which institutions will participate (which institutions shall be reasonably acceptable to you to
the extent required pursuant to your consent rights set forth in the second preceding paragraph), the allocation of the commitments
among the Lenders and the amount and distribution of fees among the Lenders. To assist the Lead Arranger in its syndication efforts,
you agree until completion of a Successful Syndication to promptly prepare and provide (and to the extent not prohibited by the
Merger Agreement as in effect on the Signing Date, to use commercially reasonable efforts to cause Parent and Spinco to prepare
and provide) to the Lead Arranger all reasonably available information with respect to you, Spinco and your its respective subsidiaries,
the Transactions and the other transactions contemplated hereby, including customary financial information and projections (including
financial estimates, budgets, forecasts and other forward-looking information, the “Projections”) relating
to you and Spinco and your and its respective subsidiaries, and with respect to the Internal Restructuring (as defined in the Separation
Agreement), the Distribution and the related transactions, in each case as the Lead Arranger may reasonably request in connection
with the structuring, arrangement and syndication of the Bridge Facility. Notwithstanding anything to the contrary in the foregoing,
the only Projections, financial statements and other financial information the delivery of which shall constitute a condition to
the commitments of the Commitment Parties hereunder or the funding of the Bridge Facility on the Closing Date required to be provided
to the Lead Arranger shall be the financial information required to be delivered pursuant to paragraphs 4 and 5 of Exhibit C
attached hereto. For the avoidance of doubt, you will not be required to provide any information to the extent that the provision
thereof would violate any attorney-client privilege, law, rule or regulation, or any obligation of confidentiality binding
you or your affiliates or Parent, Spinco or their affiliates; provided that (i) you will use commercially reasonable
efforts to inform us of the existence of such information to the extent permitted by law or contract and (ii) you will use
commercially reasonable efforts to obtain required consents in order to provide such information.

 

Notwithstanding anything
to the contrary herein (but without limiting your obligations to assist with syndication efforts as set forth herein), none of
the foregoing, and neither the commencement nor the completion of the syndication of the Bridge Facility, shall constitute a condition
to the commitments of the Commitment Parties hereunder or the funding of the Bridge Facility on the Closing Date.

 

You hereby represent
and warrant (with respect to information or data relating to Spinco or its subsidiaries, the following representations and warranties
shall be made solely to your knowledge) that (a) all written information and written data, other than the Projections and
information of a general economic or general industry nature, in connection with the transactions contemplated hereby (the “Information”)
that has been or will be made available to the Commitment Parties or prospective Lenders by you or by any of your representatives
on your behalf in connection with the transactions contemplated hereby, taken as a whole, is or will be, when furnished, correct
in all material respects and, taken as a whole, does not or will not, when furnished, contain any untrue statement of a material
fact or omit to state a material fact necessary in order to make the statements contained therein not materially misleading in
light of the circumstances under which such statements are made (after giving effect to all supplements thereto from time to time)
and (b) the Projections that have been or will be made available to the Commitment Parties or prospective Lenders by you or
by any of your representatives on your behalf in connection with the transactions contemplated hereby have been or will be prepared
in good faith based upon assumptions that you believe to be reasonable at the time made and at the time the related Projections
are made available to the Commitment Parties or prospective Lenders; it being understood that the Projections are as to future
events, are not to be viewed as facts and the Projections (i) are subject to significant uncertainties and contingencies,
many of which are beyond your control, that no assurance can be given that any particular Projections will be realized and that
actual results during the period or periods covered by any such Projections may differ significantly from the projected results
and such differences may be material and (ii) are not a guarantee of performance. You agree that if at any time prior to the
later of (x) the Closing Date and (y) the Syndication Date, you become aware that any of the representations in the preceding
sentence would be incorrect in any material respect if the Information and Projections were being furnished, and such representations
were being made, at such time, then you will (and with respect to any information or Projections of Spinco and its subsidiaries,
use commercially reasonable efforts to) promptly supplement the Information and the Projections so that such representations will
be correct in all material respects under those circumstances. Notwithstanding anything to the contrary herein, the accuracy of
the foregoing representations shall not be a condition to our obligations hereunder or the funding of the Bridge Facility on the
Closing Date. In arranging and syndicating the Bridge Facility, the Lead Arranger will be entitled to use and rely primarily on
the Information and the Projections without responsibility for independent verification thereof.

 

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		4.	Fee Letters.

 

As consideration for
the commitments of the Commitment Parties hereunder and their respective agreements to perform the services described herein, you
agree to pay (or cause to be paid) the fees set forth in the Term Sheet and in the Arranger Fee Letter dated the date hereof and
delivered herewith with respect to the Bridge Facility (the “Arranger Fee Letter”) and in the Administrative
Fee Letter dated the date hereof and delivered herewith with respect to the Bridge Facility (the “Administrative Fee
Letter” and, together with the Arranger Fee Letter, the “Fee Letters”), in each case on
the terms and subject to the conditions set forth therein. Once paid, such fees shall not be refundable under any circumstances,
except as otherwise provided in the Fee Letters.

 

		5.	Conditions.

 

Each Commitment Party’s
commitments and agreements hereunder are subject solely to the conditions set forth in Exhibit C hereto (the “Specified
Conditions”); it being understood that there are no conditions (implied or otherwise) to the commitments hereunder
(including compliance with the terms of this Commitment Letter, the Fee Letter and the Bridge Facility Documentation) other than
the Specified Conditions (and upon satisfaction or waiver by each of the Commitment Parties of the Specified Conditions, each party
thereto will execute and deliver the Facility Documentation to which it is a party and the initial funding under the Bridge Facility
shall occur). Notwithstanding anything contained in this Commitment Letter, the Fee Letters or the definitive documentation in
respect of the Bridge Facility (the “Bridge Facility Documentation”) to the contrary, (a) the only
representations the accuracy of which shall be a condition to availability of the Bridge Facility on the Closing Date shall be
(i) such of the representations made by or on behalf of Parent and its subsidiaries (including Spinco) in the Merger Agreement
as are material to the interests of the Lenders or the Commitment Parties, but only to the extent that (after giving effect to
any applicable cure provisions) you or your affiliates have the right to terminate its or its subsidiaries’ obligations under
the Merger Agreement or to decline to consummate the Merger as a result of a breach of such representations in the Merger Agreement
(the “Merger Agreement Representations”) and (ii) the Specified Representations (as defined below)
and (b) the terms of the Bridge Facility Documentation shall be in a form such that they do not impair availability of the
Bridge Facility on the Closing Date if the Specified Conditions are satisfied. For purposes hereof, “Specified Representations”
means the representations and warranties of the Borrower set forth in the Term Sheet relating to organization and powers, authorization
of the Bridge Facility Documentation, due execution and delivery, binding effect and enforceability of the Bridge Facility Documentation
and no contravention of organizational documents or any material debt instrument with respect to debt for borrowed money of Spinco
or the Borrower or any of their respective subsidiaries in a principal or committed amount in excess of $100,000,000 after giving
pro forma effect to the Transactions, in each case, as they relate to the entering into and performance of the Bridge Facility
Documentation, margin regulations, Investment Company Act, solvency (as to the Borrower and its subsidiaries, taken as a whole,
with solvency being determined in a manner consistent with Annex I to Exhibit C hereto), the PATRIOT Act, use of proceeds
not violating the Foreign Corrupt Practices Act, laws applicable to sanctioned persons and other applicable sanctions, anti-corruption
and bribery laws. The provisions of this Section 5, collectively, are referred to herein and in the Fee Letters as
the “Funds Certain Provisions”.

 

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		6.	Indemnification and Expenses; Limitation of Liability.

 

Indemnification and Expenses.

 

You agree (a) to
indemnify and hold harmless each Commitment Party, each Lender and their respective affiliates and controlling persons and the
respective partners, trustees, shareholders, officers, directors, employees, agents, advisors, members and representatives of each
of the foregoing (each, an “Indemnified Person” and collectively, the “Indemnified Persons”)
from and against any and all losses, claims, damages, liabilities and expenses, joint or several, of any kind or nature whatsoever
to which any such Indemnified Person may become subject arising out of or in connection with this Commitment Letter, the Fee Letters,
the transactions contemplated hereby, the Bridge Facility, any related transaction or the syndication or use of proceeds from the
Bridge Facility or any claim, litigation, investigation or proceeding, actual or threatened, relating to any of the foregoing (any
of the foregoing, a “Proceeding”), regardless of whether initiated by you or any of your affiliates,
any Indemnified Person or any third party and whether any such Indemnified Person is a party thereto, and to reimburse each such
Indemnified Person within 30 days after written demand (together with reasonably detailed back-up documentation supporting such
demand) for any reasonable and documented out-of-pocket legal expenses of one firm of counsel for all Indemnified Persons (taken
as a whole) and, if necessary, one firm of local counsel in each appropriate jurisdiction, in each case for all Indemnified Parties
(taken as a whole) (and, in the case of an actual or potential conflict of interest where the Indemnified Person affected by such
conflict informs you of such conflict and thereafter retains its own counsel, of one additional firm of counsel for all such similarly
affected Indemnified Persons taken as a whole), but no other third party advisors without your consent, or other reasonable and
documented out-of-pocket expenses incurred in connection with investigating or defending any of the foregoing; provided
that the foregoing indemnity will not, as to any Indemnified Person, apply to losses, claims, damages, liabilities or related expenses
(i) to the extent they have resulted from the willful misconduct, bad faith or gross negligence of such Indemnified Person
or any Related Person (as defined below) of such Indemnified Person (as determined by a court of competent jurisdiction in a final
and non-appealable decision), (ii) arising from a material breach of the obligations of such Indemnified Person or any Related
Person of such Indemnified Person under this Commitment Letter, the Fee Letters or the Bridge Facility Documentation (as determined
by a court of competent jurisdiction in a final and non-appealable decision) or (iii) arising out of, or in connection with,
any Proceeding that does not involve an act or omission by you or any of your controlled affiliates and that is brought by an Indemnified
Person against any other Indemnified Person (other than any Proceeding brought against any Commitment Party or the Lead Arranger
solely in its capacity as, or in the fulfillment of its role as, an agent, the Lead Arranger or another similar role under the
Bridge Facility, except to the extent the acts or omissions of such Commitment Party or the Lead Arranger are determined by a final,
non-appealable judgment of a court of competent jurisdiction to have constituted the gross negligence or willful misconduct of
such Commitment Party or Lead Arranger or any of its Related Persons in such capacity or in fulfilling such role), and (b) regardless
of whether the Closing Date occurs, to reimburse the Commitment Parties from time to time for all reasonable and documented out-of-pocket
expenses (including but not limited to syndication expenses, but limited, in the case of legal fees and expenses, to the reasonable
and documented out-of-pocket legal fees and disbursements of one firm of counsel to the Commitment Parties (taken as a whole) identified
in the Term Sheet and one firm of local counsel to the Commitment Parties (taken as a whole) in each appropriate jurisdiction (in
any event excluding allocated costs of in-house counsel)), in each case, to the extent any such expenses were incurred in connection
with the Bridge Facility and the preparation of this Commitment Letter, the Fee Letters and the Bridge Facility Documentation or
the administration, amendment, modification or waiver thereof (collectively, the “Expenses”).

 

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Notwithstanding
the above, (a) you shall not be liable for any settlement of any Proceedings effected without your consent (which consent
shall not be unreasonably withheld, conditioned or delayed), but if settled with your written consent or if there is a final and
non-appealable judgment for the plaintiff in any such Proceedings, you agree to indemnify and hold harmless each Indemnified Person
from and against any and all losses, claims, damages, liabilities and reasonable and documented out-of-pocket expenses by reason
of such settlement or judgment as and to the extent required by the preceding paragraph and (b) each Indemnified Person shall
be obligated to refund or return any and all amounts paid by you under the preceding paragraph to such Indemnified Person for any
losses, claims, damages liabilities or expenses to the extent such Indemnified Person is not entitled to payment of such amounts
in accordance with the terms hereof. No Indemnified Person shall, without your prior written consent (which shall not be
unreasonably withheld, conditioned or delayed), consent to the entry of any judgment in any Proceeding referred to herein in respect
of which indemnification is sought hereunder.

 

You shall not, without
the prior written consent of any Indemnified Person (which consent shall not be unreasonably withheld, delayed or conditioned),
effect any settlement of any pending or threatened Proceedings in respect of which indemnity could have been sought hereunder by
such Indemnified Person unless such settlement (a) includes an unconditional release of such Indemnified Person from all liability
arising out of such Proceedings and (b) does not include any statement as to, or any admission of, fault, culpability or wrongdoing
by or on behalf of such Indemnified Person.

 

In case any Proceeding
is instituted involving any Indemnified Person for which indemnification is to be sought hereunder by such Indemnified Person,
then such Indemnified Person will promptly notify you, to the extent practicable, of the commencement of such Proceeding; provided
that the failure so to notify you will not relieve you from any liability that you may have to such Indemnified Person pursuant
to this Section 6 or from any liability that you may have to such Indemnified Person other than pursuant to this Section 6,
except to the extent that you are materially prejudiced by such failure. Notwithstanding the above, following such notification,
you may elect in writing to assume the defense of any such Proceeding brought by a third party, and, upon such election, you will
not be liable for any legal costs subsequently incurred by such Indemnified Person (other than reasonable costs of investigation
and providing evidence) in connection therewith, unless (i) you have failed to provide counsel reasonably satisfactory to
such Indemnified Person in a timely manner, (ii) counsel provided by you reasonably determines its representation of such
Indemnified Person would present it with a conflict of interest or (iii) the Indemnified Person reasonably determines that
there are actual or potential conflicts of interest between you and the Indemnified Person, including situations in which there
may be legal defenses available to it which are different from or in addition to those available to you. In connection with any
one Proceeding, you will not be responsible for the fees and expenses of more than one law firm for all Indemnified Persons taken
as whole plus additional conflicts and local counsel as provided herein.

 

Each Indemnified Person
shall, in consultation with you, take all reasonable steps to mitigate any losses, claims, damages, liabilities and expenses and
shall give (subject to confidentiality or legal restrictions) such information and assistance to you as you may reasonably request
in connection with any Proceeding in connection with any losses, claims, damages, liabilities and expenses.

 

Your indemnity and
reimbursement obligations hereunder will be in addition to any liability which you may otherwise have and will be binding upon
any of your successors and assigns and inure to the benefit of successors and assigns of the Indemnified Persons.

 

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Limitation of Liability.

 

Notwithstanding any
other provision of this Commitment Letter, (i) the Commitment Parties, the Lenders and their respective affiliates and controlling
persons and the respective partners, trustees, shareholders, officers, directors, employees, agents, advisors, members and representatives
of each of the foregoing (each, an “Specified Persons” and collectively, the “Specified Persons”)
shall not be liable for any damages arising from the use by others of information or other materials obtained through electronic,
telecommunications or other information transmission systems (including IntraLinks or SyndTrak Online), except, solely in the case
of any Specified Person or any Related Person of such Specified Person, to the extent such damages have resulted from the willful
misconduct, bad faith or gross negligence of such Specified Person or any Related Person of such Specified Person (as determined
by a court of competent jurisdiction in a final and non-appealable decision) and (ii) without in any way qualifying your other
obligations hereunder (including with respect to your indemnification obligations above), neither (x) any Specified Person,
nor (y) you (or any of your subsidiaries or affiliates) shall be liable for any indirect, special, punitive or consequential
damages other than in respect of any such damages paid or required to be paid by an Specified Person to a third party as otherwise
indemnified under this Section 6 in connection with your or its activities related to the Bridge Facility, the Commitment
Letter or the Fee Letters.

 

For purposes hereof,
a “Related Person” of an Indemnified Person or Specified Person means any of such Indemnified Person
or Specified Person (in each case, including but not limited to in its capacities as an agent in respect of the Bridge Facility
or the Lead Arranger or any Lender) and its affiliates and controlling persons and their respective partners, trustees, shareholders,
officers, directors, employees, agents, advisors, members and representatives.

 

		7.	Sharing of Information; Absence of Fiduciary Relationship.

 

You acknowledge that
the Commitment Parties and their respective affiliates may be providing debt financing, equity capital or other services (including
financial advisory services) to other persons in respect of which you may have conflicting interests regarding the transactions
described herein and otherwise. Neither the Commitment Parties nor any of their affiliates will use confidential information obtained
from you by virtue of the transactions contemplated by this Commitment Letter or its other relationships with you in connection
with the performance by it of services for other persons, and neither the Commitment Parties nor any of their affiliates will furnish
any such information to other persons. You also acknowledge that neither the Commitment Parties nor any of their affiliates have
any obligation to use in connection with the transactions contemplated by this Commitment Letter, or to furnish to you, confidential
information obtained by them from other persons.

 

As you know, each Commitment
Party is a full service securities firm engaged, either directly or through its affiliates, in various activities, including securities
trading, commodities trading, investment management, financing and brokerage activities and financial planning and benefits counseling
for both companies and individuals. In the ordinary course of these activities, each Commitment Party and its affiliates may actively
engage in commodities trading or trade the debt and equity securities (or related derivative securities) and financial instruments
(including bank loans and other obligations) of you and other companies which may be the subject of the arrangements contemplated
by this Commitment Letter or with which you may have commercial or other relationships for their own account and for the accounts
of their customers and may at any time hold long and short positions in such securities. Each Commitment Party or its affiliates
may also co-invest with, make direct investments in, and invest or co-invest client monies in or with funds or other investment
vehicles managed by other parties, and such funds or other investment vehicles may trade or make investments in securities of you
or other companies which may be the subject of the arrangements contemplated by this Commitment Letter or with which you may have
commercial or other relationships or engage in commodities trading with any thereof. With respect to any securities and/or financial
instruments so held by any Commitment Party or any of its customers, all rights in respect of such securities and financial instruments,
including any voting rights, will be exercised by the holder of the rights, in its sole discretion.

 

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The
Commitment Parties and their respective affiliates may have economic interests that conflict with your economic interests. You
agree that the Commitment Parties will act under this Commitment Letter as an independent contractor and that nothing in this Commitment
Letter or the Fee Letters or otherwise (unless separately agreed to in writing) will be deemed to create an advisory, fiduciary
or agency relationship or fiduciary or other implied duty between the Commitment Parties and you, your and their respective stockholders
or your and their respective affiliates in respect of the financing contemplated hereby. You acknowledge and agree that (i) the
transactions contemplated by this Commitment Letter and the Fee Letters are arm’s-length commercial transactions between
the Commitment Parties, on the one hand, and you, on the other, (ii) in connection therewith and with the process leading
to such transaction each Commitment Party is acting solely as a principal and not as agents or fiduciaries of you, your management,
stockholders, creditors or any other person, (iii) the Commitment Parties have not assumed an advisory or fiduciary responsibility
or any other obligation in favor of you with respect to the financing contemplated hereby or the process leading thereto (irrespective
of whether the Commitment Parties or any of their respective affiliates have advised or are currently advising you on other matters)
except the obligations expressly set forth in this Commitment Letter and the Fee Letters and (iv) you have consulted your
own legal and financial advisors to the extent you deemed appropriate. You agree that you will not assert any claim against
any Commitment Party based on an alleged breach of fiduciary duty by the any Commitment Party in connection with this Commitment
Letter and the financing transactions contemplated hereby. You further acknowledge and agree that you are responsible for making
your own independent judgment with respect to such transactions and the process leading thereto. Please note that the Commitment
Parties and their respective affiliates do not provide tax, accounting or legal advice.

 

In addition, please
note that Barclays Capital Inc. has been retained by the Borrower as financial advisor (in such capacity, the “Financial
Advisor”) to the Borrower in connection with the Merger. You agree to such retention, and further agree not to assert
any claim you might allege based on any actual or potential conflicts of interest that might be asserted to arise or result from,
on the one hand, the engagement of the Financial Advisor, and on the other hand, our and our affiliates’ relationships with
you as described and referred to herein.

 

		8.	Assignability; Amendments; Counterparts.

 

This Commitment Letter
and the commitments hereunder shall not be assignable by any party hereto (other than as provided in Section 3 hereof)
without the prior written consent of each other party hereto, not to be unreasonably withheld, delayed or conditioned (and any
attempted assignment without such consent shall be null and void), are intended to be solely for the benefit of the parties hereto
(and Indemnified Persons and Specified Persons to the extent expressly set forth herein), are not intended to confer any benefits
upon, or create any rights in favor of, any person other than the parties hereto (and Indemnified Persons and Specified Persons
to the extent expressly set forth herein) and are not intended to create a fiduciary relationship among the parties hereto; provided
that with respect to the commitments, any assignments shall be subject to the limitations set forth in Section 3 of
this Commitment Letter entitled “Syndication”. Any and all obligations of, and services to be provided by, the Commitment
Parties hereunder may be performed and any and all rights of the Commitment Parties hereunder may be exercised by or through any
of their respective affiliates or branches in the United States; provided that with respect to the commitments, any assignments
shall be subject to the limitations set forth in Section 3 of this Commitment Letter entitled “Syndication”.
This Commitment Letter may not be amended or any provision hereof waived or modified except by an instrument in writing signed
by the Commitment Parties and you. This Commitment Letter may be executed in any number of counterparts, each of which shall be
an original and all of which, when taken together, shall constitute one agreement. Delivery of an executed counterpart of a signature
page of this Commitment Letter by facsimile transmission or other electronic transmission (i.e., a “pdf” or “tif”)
shall be effective as delivery of a manually executed counterpart hereof. Any signature to this Commitment Letter or any amendment,
extension or renewal thereof may be delivered by facsimile, electronic mail (including pdf) or any electronic signature complying
with the U.S. federal ESIGN Act of 2000 or the New York Electronic Signature and Records Act or other transmission method and any
counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes to
the fullest extent permitted by applicable law. This Commitment Letter (including the exhibits hereto) and, together with the Fee
Letters, (i) are the only agreements that have been entered into among the parties hereto with respect to the Bridge Facility
and (ii) supersede all prior understandings, whether written or oral, among us with respect to the Bridge Facility and set
forth the entire understanding of the parties hereto with respect thereto.

 

    9 

     

    

 

		9.	Governing Law; Waiver of Jury Trial.

 

THIS COMMITMENT LETTER
AND THE RIGHTS AND DUTIES OF THE PARTIES HEREUNDER AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS COMMITMENT
LETTER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF
LAW PRINCIPLES THAT WOULD RESULT IN THE APPLICATION OF ANY LAW OTHER THAN THE LAW OF THE STATE OF NEW YORK; PROVIDED, THAT,
NOTWITHSTANDING THE FOREGOING, IT IS UNDERSTOOD AND AGREED THAT (A) THE INTERPRETATION OF THE DEFINITION “SPINCO
MATERIAL ADVERSE EFFECT” (AND WHETHER OR NOT A SPINCO MATERIAL ADVERSE EFFECT HAS OCCURRED), (B) THE DETERMINATION OF
THE ACCURACY OF ANY MERGER AGREEMENT REPRESENTATION AND WHETHER AS A RESULT OF ANY INACCURACY THEREOF YOU OR YOUR APPLICABLE AFFILIATE
HAVE THE RIGHT TO TERMINATE YOUR (OR ITS) OBLIGATIONS UNDER THE MERGER AGREEMENT OR TO DECLINE TO CONSUMMATE THE MERGER AND (C) THE
DETERMINATION OF WHETHER THE MERGER HAS BEEN CONSUMMATED IN ACCORDANCE WITH THE TERMS OF THE MERGER AGREEMENT AND, IN ANY
CASE, CLAIMS OR DISPUTES ARISING OUT OF ANY SUCH INTERPRETATION OR DETERMINATION OR ANY ASPECT THEREOF, IN EACH CASE, SHALL
BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF DELAWARE, WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES
THAT WOULD RESULT IN THE APPLICATION OF ANY LAW OTHER THAN THE LAW OF THE STATE OF DELAWARE.

 

EACH OF THE PARTIES
HERETO IRREVOCABLY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING, CLAIM OR COUNTERCLAIM BROUGHT BY OR ON BEHALF OF
ANY PARTY RELATED TO OR ARISING OUT OF THIS COMMITMENT LETTER OR THE PERFORMANCE OF SERVICES HEREUNDER.

 

Each
of the parties hereto hereby irrevocably and unconditionally (a) submits, for itself and its property, to the exclusive jurisdiction
of the United States District Court for the Southern District of New York sitting in the Borough of Manhattan (or if such court
lacks subject matter jurisdiction, the Supreme Court of the State of New York sitting in the Borough of Manhattan), and any appellate
court from any thereof, in any action or proceeding arising out of or relating to this Commitment Letter, the Fee Letters or the
financing transactions contemplated hereby, or for recognition or enforcement of any judgment, and agrees that all claims in respect
of any such action or proceeding may be heard and determined in such federal or state court, (b) waives, to the fullest extent
it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action
or proceeding arising out of or relating to this Commitment Letter, the Fee Letters or the transactions contemplated hereby in
any such federal or New York State court, (c) waives, to the fullest extent permitted by law, the defense of an inconvenient
forum to the maintenance of such action or proceeding in any such court and (d) agrees that a final judgment in any
such suit, action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any
other manner provided by law.

 

    10 

     

    

 

		10.	Confidentiality.

 

This
Commitment Letter is entered into on the understanding that none of the Fee Letters and their terms or substance, or this Commitment
Letter and its terms or substance, shall be disclosed, directly or indirectly, to any other person or entity (including other lenders,
underwriters, placement agents, advisors or any similar persons) except (a) to your affiliates and your and their respective
officers, directors, employees, partners, equity holders, members, stockholders, controlling persons, attorneys, accountants and
advisors on a confidential basis, (b) if the Commitment Parties consent to such proposed disclosure (such consent not to be
unreasonably withheld, delayed or conditioned) or (c) pursuant to the order of any court or administrative agency in any pending
legal or administrative proceeding, or otherwise as required by applicable law or legal process or, to the extent requested or
required by governmental and/or regulatory authorities (in which case, to the extent permitted by law, you agree to use commercially
reasonable efforts to inform us promptly thereof); provided that (i) you may disclose this Commitment Letter, and the
contents hereof, to potential arrangers, agents, co-agents, equity investors, and lenders or participants or prospective lenders
or participants and their respective officers, directors, employees, attorneys, accountants and advisors and to ratings agencies,
(ii) you may disclose the summary terms of the Bridge Facility, the existence thereof and the aggregate fee amounts contained
in the Fee Letters as part of projections, pro forma information and generic disclosure of aggregate sources and uses related to
fee amounts to the extent customary or required in marketing materials (including those relating to the Spinco Bridge Facility,
the Backstop Bridge Facility and the Backstop Amendments or any proxy or other public filing, (iii) the Fee Letters may be
disclosed to persons performing customary accounting functions, including accounting for deferred financing costs, (iv) this
Commitment Letter and a redacted version of the Fee Letters (with such redaction to be reasonably acceptable to the Lead Arranger)
may be disclosed to Remainco and its directors, officers, employees, agents, legal counsel, accountants, advisors, consultants
and financing sources, in each case on a confidential basis and only in connection with the Transactions and (v) this Commitment
Letter and the Fee Letters may be disclosed as necessary to enforce the terms thereof or in connection with any suit, action or
proceeding relating to this Commitment Letter, the Fee Letters or the transactions contemplated hereby or thereby or enforcement
thereof or hereof. You agree that you will permit us to review and approve (such approval not to be unreasonably withheld or delayed)
any reference to us or any of our affiliates in connection with the Bridge Facility or the transactions contemplated hereby contained
in any press release or similar written public disclosure (excluding, for the avoidance of doubt, any customary Form 8-K filed
in connection with the Bridge Facility becoming effective) prior to public release. The foregoing restrictions (other than with
respect to the Fee Letters) shall cease to apply upon the earlier of (A) the Closing Date and (B) two years following
the date of this Commitment Letter.

 

    11 

     

    

 

The Commitment Parties
and their affiliates will use all non-public information provided to them or such affiliates in connection with the transactions
contemplated hereby solely for the purpose of providing the services which are the subject of this Commitment Letter and shall
treat confidentially all such information and shall not publish, disclose or otherwise divulge such information or the Fee Letters
(or the contents thereof); provided that nothing herein shall prevent the Commitment Parties from disclosing any such information
(a) pursuant to the order of any court or administrative agency or in any pending legal or administrative proceeding, or otherwise
as required by applicable law or legal process (in which case the Commitment Parties, to the extent permitted by applicable law,
agree (except with respect to any audit or examination conducted by bank accountants or regulatory authority exercising examination
or regulatory authority over such Commitment Party) to inform you promptly thereof), (b) upon the request or demand of any
regulatory authority having jurisdiction over the Commitment Parties or any of their respective affiliates (in which case the Commitment
Parties, to the extent permitted by law, agree (except with respect to any audit or examination conducted by bank accountants or
regulatory authority exercising examination or regulatory authority over such Commitment Party) to inform you promptly thereof),
(c) to the extent that such information becomes publicly available other than by reason of improper disclosure by the Commitment
Parties or any of their respective affiliates or any Related Person of the foregoing in violation of any confidentiality obligations
owing to you or any of your affiliates (including those set forth in this paragraph), (d) to the Commitment Parties’
affiliates and the Commitment Parties’ and such affiliates’ officers, directors, partners, employees, legal counsel,
independent auditors and other experts or agents (collectively, its “Representatives”) who need to know
such information in connection with the transactions contemplated hereby and are made aware and agree to comply with the provisions
of this paragraph in each case on a confidential basis (it being understood that the failure of any such Representative of a Commitment
Party to comply with the provisions of this paragraph shall be deemed a violation of this paragraph by such Commitment Party),
(e) to potential or prospective Lenders, participants, assignees or any direct or indirect contractual counterparties to any
swap or derivative transaction relating to the Company and its obligations under the Bridge Facility, subject to the proviso below,
(f) for purposes of establishing a “due diligence” or similar defense in connection with any proceeding in connection
with the transactions contemplated hereby, (g) to market data collectors and service providers providing services in connection
with the syndication or administration of the Bridge Facility, (h) to the extent such information is independently developed
by such Commitment Party or any of its Representatives, (i) to the extent you shall have consented to such disclosure in writing,
(j) to any rating agency on a confidential basis or (k) in connection with the exercise of any Commitment Party’s
rights and remedies under this Commitment Letter or the Fee Letters or any suit, action or proceeding relating to this Commitment
Letter, the Fee Letters or the transactions contemplated thereby or enforcement hereof or thereof; provided that (x) the
disclosure of any such information to any potential or prospective Lenders, participants, assignees or direct or indirect contractual
counterparties referred to above shall be made subject to the acknowledgment and acceptance by such potential or prospective Lender,
participant, assignee or direct or indirect contractual counterparty that such information is being disseminated on a confidential
basis (on substantially the terms set forth in this paragraph or as is otherwise reasonably acceptable to you, including, without
limitation, as set forth in any confidential information memorandum or other marketing materials) in accordance with the standard
syndication processes of such Commitment Party or customary market standards for dissemination of such type of information, which
shall in any event require “click through” or other affirmative action on the part of the recipient to access such
information and (y) no such disclosure shall be made by such Commitment Party or any of its affiliates to any Disqualified
Lender. The Commitment Parties’ obligations under this paragraph shall automatically terminate and be superseded by the confidentiality
provisions in the Bridge Facility Documentation upon the initial funding thereunder (it being understood that any Commitment Party
that is not a party to the Bridge Facility Documentation shall remain bound by this paragraph) and shall in any event terminate
upon the second anniversary of the date hereof.

 

		11.	Miscellaneous.

 

The reimbursement (if
applicable), compensation (if applicable), indemnification, confidentiality, jurisdiction, governing law and waiver of jury trial
provisions contained herein and in the Fee Letters and the provisions of Section 7 shall remain in full force and effect
regardless of whether Bridge Facility Documentation shall be executed and delivered and notwithstanding the termination of this
Commitment Letter or the Commitment Parties’ commitments hereunder; provided that your reimbursement and indemnification
obligations under this Commitment Letter shall automatically terminate and be superseded, to the extent covered thereby, by the
Bridge Facility Documentation.

 

Each of the parties
hereto agrees that this Commitment Letter is a binding and enforceable agreement with respect to the subject matter herein, including
the execution and delivery of the Bridge Facility Documentation by the parties hereto in a manner consistent with this Commitment
Letter.

 

    12 

     

    

 

We hereby notify you
that pursuant to the requirements of the USA PATRIOT Act, Title III of Pub. L. 107-56 (signed into law October 26, 2001) (as
amended from time to time, the “PATRIOT Act”) and the Customer Due Diligence Requirements for Financial
Institutions issued by the U.S. Department of Treasury Financial Crimes Enforcement Network (“FinCEN”)
under the Bank Secrecy Act (such rule published May 11, 2016 and effective May 11, 2018, as amended from time to
time, the “CDD Rule”), the Commitment Parties and each other Lender may be required to obtain, verify
and record information that identifies the Borrower and each Subsidiary Guarantor, which information includes the name, address,
tax identification number, a certification regarding beneficial ownership required by and 31 C.F.R. §1010.230 (the “Beneficial
Ownership Regulation”) (solely with respect to the Borrower) (such certification, the “Beneficial Ownership
Certification”) and other information regarding the Company and each Subsidiary Guarantor that will allow the Commitment
Parties or such Lender to identify the Company in accordance with the PATRIOT Act and the CDD Rule. This notice is given in accordance
with the requirements of the PATRIOT Act and is effective as to the Commitment Parties and each Lender. You acknowledge that Barclays
shall be permitted to share any and all such information with the Lenders.

 

We hereby agree that
notwithstanding any provision to the contrary in this Commitment Letter or the Fee Letters, neither (a) any officer, director,
employee, member, manager, partner, stockholder, agent or representative of you or your affiliates (other than you) and controlling
persons nor (b) your or their respective affiliates (other than you) and controlling persons shall have any liability for
any obligations of the Company under the Commitment Letter or the Fee Letters.

 

If the foregoing correctly
sets forth our agreement, please indicate your acceptance of the terms of this Commitment Letter and of the Fee Letters by returning
to Barclays executed counterparts hereof and of the Fee Letters, and paying the fees specified herein and in the Fee Letters to
be payable upon the acceptance of this Commitment Letter with respect to the Bridge Facility by wire transfer of immediately available
funds to the account specified by us, not later than 11:59 p.m., New York City time, on February 16, 2021. This Commitment
Letter and the commitments and undertakings of the Commitment Parties hereunder shall automatically terminate and expire at such
time in the event that Barclays has not received both (a) such executed counterparts and (b) such payments in accordance
with the immediately preceding sentence. This Commitment Letter and the commitments and undertakings of the Commitment Parties
hereunder shall automatically terminate (unless you request an extension and each Commitment Party shall, in its discretion, agree
to such extension) upon the earliest of (a) the End Date (as defined in the Merger Agreement as in effect on the Signing Date,
without giving effect to any amendment thereto or consent thereunder, and as it may be extended in accordance with the terms of
the Merger Agreement as in effect on the Signing Date, the “Outside Date”), unless the Closing Date occurs
on or prior thereto, (b) the date of the termination of the Merger Agreement by you or with your written consent or otherwise
in accordance with its terms (in which case you agree to inform us promptly thereof), (c) the date of the closing of the Merger
without the use of the Bridge Facility (the earliest of the foregoing clauses (a), (b) and (c), the “Expiration
Date”) and (d) the execution and delivery of the Bridge Facility Documentation by the parties thereto; provided
 that the termination of any commitment pursuant to this sentence shall not prejudice your rights and remedies in respect of
any breach of this Commitment Letter by any Commitment Party that occurred prior to any such termination. You shall have the right
to terminate this Commitment Letter and the commitments of the Lenders hereunder (or a portion thereof) at any time upon written
notice to them from you, subject to your surviving obligations as set forth in the first paragraph of Section 11 of
this Commitment Letter and in the Fee Letters.

 

[Remainder of this page intentionally
left blank]

 

    13 

     

    

 

We are pleased to have
been given the opportunity to assist you in connection with this financing.

 

	 	Very truly yours,
	 	 
	 	BARCLAYS BANK PLC
	 	 
	 	By:	/s/ Sam Yoo
	 	 	Name:	SAM YOO
	 	 	Title:	 MANAGING DIRECTOR

 

[Signature
Page to Commitment Letter (Rover)]

 

    

     

    

 

Accepted and agreed to as of

the date first above written:

 

	REGAL BELOIT CORPORATION	 
	 	 
	By:	/s/ Louis V. Pinkham	 
	 	Name:	 Louis V. Pinkham	 
	 	Title:	Chief Executive Officer	 

 

[Signature
Page to Commitment Letter (Rover)]

 

    

     

    

 

CONFIDENTIAL

EXHIBIT A

 

 

Project Phoenix

$2,126,000,000 364-Day Bridge Facility

Transaction Description1

 

Reference is made
to (a) the Separation and Distribution Agreement dated as of February 15, 2021 (together with the schedules and exhibits
thereto, the “Separation Agreement”), among Rexnord Corporation, a Delaware corporation (“Parent”),
Regal Beloit Corporation, a Wisconsin corporation (the “Borrower”), and Land Newco, Inc., a Delaware
corporation and a newly-formed wholly owned indirect subsidiary of Parent (“Spinco”), and (b) the
Agreement and Plan of Merger dated as of February 15, 2021 (together with the schedules and exhibits thereto, the “Merger
Agreement”), among Parent, the Borrower, Spinco and Phoenix 2021, Inc., a newly-formed Delaware corporation
and a wholly owned subsidiary of the Borrower (“Merger Sub”).

 

		(i)	Pursuant to the Separation Agreement,
                                         Parent will consummate the Internal Restructuring (as defined in the Separation Agreement)
                                         and the Spinco Contribution (as defined in the Separation Agreement) on the terms and
                                         subject to the conditions therein, pursuant to which Parent will separate the Spinco
                                         Business (as defined in the Separation Agreement) so that, as of immediately prior to
                                         the First Distribution (as defined in the Separation Agreement), the Spinco Business
                                         is held by Spinco and the members of the Spinco Group (as defined in the Separation Agreement).

 

		(ii)	Immediately following the Internal
                                         Restructuring and the Spinco Contribution and prior to or substantially simultaneously
                                         with the Spin-Off (as defined in the Separation Agreement),

 

		a.	Spinco will pay a special cash
                                         dividend to Parent or a subsidiary of Parent (the “Parent Special Payment”);
                                         and

 

		b.	Parent will (x) repay, prepay,
                                         repurchase, redeem or otherwise amend the Remainco Debt Facilities (as defined in the
                                         Merger Agreement) so that the consummation of the Transactions will not result in a breach
                                         thereof or a default or event of default thereunder and (y) consummate the Lien
                                         and Guarantee Release (as defined in the Merger Agreement) (clauses (x) and (y),
                                         collectively, the “Remainco Refinancing”) (it being understood
                                         such Remainco Refinancing is effectively simultaneous with the Merger (as defined below));

 

		(iii)	Immediately following the Internal
                                         Restructuring, the Spinco Contribution and the payment of the Parent Special Payment
                                         and pursuant to the Separation Agreement, Parent will distribute all of the issued and
                                         outstanding shares of Spinco Common Stock (as defined in the Separation Agreement) to
                                         Parent’s stockholders by way of one or more pro rata dividends (collectively,
                                         the “Distribution”).

 

		(iv)	Immediately following the Spin-Off
                                         and pursuant to the Merger Agreement, Merger Sub will merge with and into Spinco (the
                                         “Merger”), with Spinco continuing as the surviving corporation,
                                         and all shares of Merger Sub’s common stock issued and outstanding at such time
                                         will be converted into shares of common stock of Spinco.

 

		(v)	To the extent the board of directors
                                         of the Borrower has declared that it will pay a special cash dividend to its stockholders
                                         pursuant to Section 1.7 of the Merger Agreement (the “Borrower Special
                                         Payment”), the Borrower will pay the Borrower Special Payment within 10
                                         business days following the effectiveness of the Merger.

 

 

1
Capitalized terms used but not defined in this Exhibit A shall have the meanings set forth in the Commitment Letter and the other
Exhibits to the Commitment Letter to which this Exhibit A is attached (the “Commitment Letter”).

 

    A-1 

     

    

 

The Borrower Special
Payment and the payment of fees and expenses incurred by the Borrower in connection with the Transactions (as defined below) (such
fees and expenses, the “Transaction Costs”) will be financed from the proceeds of loans obtained by
the Borrower under a new senior bridge facility as described in Exhibit B (the “Bridge Facility”).
The Parent Special Payment will be financed from the proceeds of loans obtained by Spinco under a new bridge facility (the “Spinco
Bridge Facility”). The Existing RMT Partner Credit Agreement (as defined in Exhibit B) will be backstopped
by commitments obtained by the Borrower for a new bridge facility (the “Backstop Bridge Facility”) in
an amount sufficient to backstop the outstanding loans (including outstanding revolving credit loans) under the Existing RMT Partner
Credit Agreement until such time, if any, as Borrower may obtain an amendment to the Existing RMT Partner Credit Agreement to
permit the merger and the incurrence of indebtedness and liens contemplated by the foregoing and an increase of the maximum Funded
Debt to EBITDA Ratio not to exceed 4.50:1.00 (the “Backstop Amendment”).

 

The transactions described
above are collectively referred to herein as the “Transactions”.

 

For purposes of the
Commitment Letter and the Fee Letters, the “Closing Date” shall mean the date of the satisfaction or
waiver by the Commitment Parties of the conditions set forth in Exhibit C to the Commitment Letter and the funding of the
Bridge Facility.

 

    A-2 

     

    

 

CONFIDENTIAL

EXHIBIT B

 

Project Phoenix

$2,126,000,000 364-Day Bridge Facility

Summary of Principal Terms and Conditions2

 

	Borrower:	Regal Beloit Corporation, a Wisconsin corporation (the “Borrower”).
	 	 
	Administrative Agent:	Barclays Bank PLC (“Barclays”) will act as sole and exclusive administrative
    agent (in such capacity, the “Administrative Agent”) in respect of the Bridge Facility.
	 	 
	Sole Bookrunner and Sole Lead Arranger:	Barclays (the “Lead Arranger”).
	 	 
	Syndication Agent:	One or more financial institutions identified by the Borrower in consultation with the Lead
    Arranger.
	 	 
	Documentation Agent:	One or more financial institutions identified by the Borrower in consultation with the Lead
    Arranger.
	 	 
	Lenders:	A syndicate of banks, financial institutions and other entities, including Barclays and the
    other Commitment Parties, but excluding Disqualified Lenders, arranged by the Lead Arranger and, to the extent required pursuant
    to the Commitment Letter, reasonably acceptable to the Borrower (collectively, and together with any party that becomes a
    lender by assignment as set forth under “Assignments and Participations” below, the “Lenders”).
	 	 
	Facility:	A 364-day senior bridge facility (the “Bridge Facility”; the loans
    thereunder, the “Bridge Loans”) in an aggregate principal amount in U.S. dollars of $2,126,000,000.
	 	 
	Availability:	The Bridge Facility may only be drawn in a single borrowing, substantially simultaneously
    with the Distribution and consummation of the Merger, on the Closing Date, which shall occur prior to the Expiration Date.  Amounts
    repaid or prepaid in respect of the Bridge Facility may not be reborrowed.
	 	 
	Purpose:	The proceeds of Bridge Loans will be used by the Borrower on the Closing Date to pay the Borrower
    Special Payment, to (if  necessary) redeem the Borrower’s senior notes due 2023 under the Note Purchase Agreement
    (as defined in the Existing RMT Partner Credit Agreement (the “2023 Redemption”)  and
    to pay Transaction Costs.
	 	 
	Interest Rates and Fees:	As set forth on Annex I to this Exhibit B.
	 	 
	Default Rate:	Overdue principal, interest, fees and other amounts shall bear interest at the applicable
    interest rate plus 2.0% per annum (in the case of overdue principal) and 2.0% above the rate applicable to Base Rate Bridge
    Loans (in the case of all other overdue amounts).

 

 

2
Capitalized terms used but not defined in this Exhibit B shall have the meanings set forth in the Commitment Letter and the other
Exhibits to the Commitment Letter to which this Exhibit B is attached.

 

    B-1

     

    

 

	Final Maturity and Amortization:	The Bridge Facility (a) will terminate and all Bridge Loans will be due and
    payable on the date that is 364 days after the Closing Date and (b) will require no scheduled amortization.
	 	 
	Voluntary Prepayments and Reductions in Commitments:	Upon
        at least three business days’ prior irrevocable written notice to the Administrative Agent (which notice may be
        conditioned upon the consummation of another transaction), the Borrower may at any time prior to the Closing Date in whole
        permanently terminate, or from time to time in part permanently reduce (in minimum principal amounts to be agreed), the
        unutilized commitments under the Bridge Facility.

         

        Prepayments
        of borrowings under the Bridge Facility will be permitted at any time (in minimum principal amounts to be agreed), without
        premium or penalty, subject to prior notice (which notice may be conditioned upon the consummation of another transaction)
        and reimbursement of the Lenders’ redeployment costs in the case of a prepayment of Eurodollar Margin borrowings
        other than on the last day of the relevant interest period.

	 	 
	Mandatory Prepayments and Reductions in Commitments:	Prior
        to the Closing Date, the commitments in respect of the Bridge Facility under the Commitment Letter or under the Bridge
        Facility Documentation (as applicable) shall be permanently reduced, and on and after the Closing Date, the Bridge Loans
        shall be prepaid, in each case, dollar-for-dollar by the following amounts (in each case subject to exceptions to be agreed):

         

        (a) 100%
        of the net cash proceeds of all non-ordinary course asset sales or other dispositions of property by the Borrower and
        its subsidiaries (including insurance, casualty and condemnation proceeds) (other than (i) dispositions of obsolete
        or worn-out property and property no longer used or useful in the business, (ii) intercompany dispositions, (iii) dispositions
        by or of foreign subsidiaries to the extent the repatriation of the proceeds of such dispositions would result in material
        adverse tax consequences as reasonably determined by the Borrower, (iv) dispositions of receivables pursuant to bills
        of exchange, accounts receivable sale and securitization programs and (v) the net cash proceeds from all other such
        non-ordinary course asset sales or other dispositions of property to the extent (x) the aggregate amount of such
        net cash proceeds of each such asset sale under this clause (v) is less than $25,000,000 and (y) the aggregate
        amount of such net cash proceeds from all such non-ordinary course asset sales under this clause  (v), together with
        the aggregate amount of net cash proceeds from all equity or equity-linked securities described in the corresponding parenthetical
        in paragraph (c) below, does not exceed $100,000,000), subject to the right to reinvest 100% of such proceeds, if
        such proceeds are re-invested in assets used or useful for their business, including in permitted acquisitions or capital
        expenditures within 12 months of receipt;

 

    B-2

     

    

 

	 	(b) 100%
                                         of the net cash proceeds received from any issuance or incurrence of debt for borrowed
                                         money (including any senior notes issued to refinance the Bridge Facility), other than
                                         (i) any intercompany debt of the Borrower or any of its subsidiaries, (ii) any
                                         debt of the Borrower or any of its subsidiaries incurred in respect of the revolving
                                         credit facility under the Amended and Restated Credit Agreement dated as of August 27,
                                         2018 (as amended, restated, amended and restated, supplemented or otherwise modified
                                         from time to time prior to the date hereof, pursuant to the Backstop Amendment and/or
                                         to increase the revolving credit commitments thereunder as provided in the Commitment
                                         Letter, the “Existing RMT Partner Credit Agreement”), among
                                         the Borrower, the subsidiaries of the Borrower from time to time party thereto, the lenders
                                         from time to time party thereto and JPMorgan Chase Bank, N.A., as administrative agent,
                                         (iii) any working capital facilities (including receivables securitization facilities)
                                         of the Borrower or any of its subsidiaries, (iv) any commercial paper, (v) capital
                                         leases or other debt issued or incurred to finance the acquisition of fixed or capital
                                         assets, (vi) other debt for borrowed money to be agreed upon, (vi) any loans
                                         incurred under the Spinco Bridge Facility; (vii) any loans incurred under the Backstop
                                         Bridge Facility and (viii) any debt for borrowed money incurred by Spinco or any
                                         subsidiaries of Spinco, except to the extent any such debt is incurred on or after the
                                         Closing Date and all obligations under the Spinco Bridge Facility have been repaid or
                                         prepaid; provided, notwithstanding the foregoing, this clause (b) shall
                                         not reduce commitments in respect of (or require prepayment of) the Bridge Facility due
                                         to any drawing or borrowing of a Qualifying Term Loan Facility (as defined below) if
                                         and to the extent the commitments in respect of the Bridge Facility were previously reduced
                                         upon the effectiveness of the applicable Qualifying Term Loan Facility and further reduction
                                         or prepayment would be duplicative thereof;

 

(c) 100%
of the net cash proceeds received from any issuance of equity or equity-linked securities (in a public offering or private placement)
by the Borrower or any of its subsidiaries (other than net cash proceeds from all such equity or equity-linked securities to the
extent the aggregate amount of such net cash proceeds, together with the aggregate amount of net cash proceeds from all non-ordinary
course asset sales or other dispositions of property described in the corresponding parenthetical in clause  (v) of
paragraph (a) above, does not exceed $100,000,000), subject to exceptions and thresholds to be agreed upon, including (i) equity
interests or such other securities issued pursuant to employee stock plans or employee compensation plans or contributed to pension
funds (including any equity securities issued upon conversion or exercise of any of the foregoing described in this clause (i)),
(ii) equity interests or such other securities issued or transferred as consideration in connection with any acquisition
or joint venture arrangement, (iii) equity interests or such other securities issued to the Borrower or any of its subsidiaries
and (iv) equity issued to the shareholders of Parent in connection with the Merger; and

	 	

 

    B-3

     

    

 

	 	(d) without
duplication of clause (b), 100% of the commitments provided to the Borrower or any of its subsidiaries pursuant to any committed
but unfunded bank term loan credit agreement or similar definitive agreement for the incurrence of debt for borrowed money that
has become effective for the purpose of financing the RMT Partner Special Payment and (if applicable) the 2023 Redemption and having
conditions to availability which are not more restrictive than the Specified Conditions (as reasonably determined by the Borrower
upon entering into such committed financing), but excluding any Spinco Bridge Facility and/or Backstop Bridge Facility (a “Qualifying
Term Loan Facility”) (such reduction to occur automatically upon the effectiveness of the definitive documentation
for such term loan credit facility).

 

The Borrower shall
give the Administrative Agent prompt written notice of any commitment reduction or prepayment required pursuant to this section
or of having entered into a Qualifying Term Loan Facility.

 

In addition, the
commitments shall terminate on the Expiration Date.

 

Notwithstanding the foregoing, (a) the
commitments in respect of the Bridge Facility under the Commitment Letter or under the Bridge Facility Documentation (as applicable)
shall be permanently reduced and the Bridge Loans shall be prepaid, in each case, pursuant to clause (a) above only
to the extent such proceeds are not subject to the mandatory prepayment provisions in the Existing RMT Partner Credit Agreement
and shall be subject to sharing as and to the extent required by the Note Purchase Agreement (as defined in the Existing RMT Partner
Credit Agreement) and (b) on and after the Closing Date, to the extent any net cash proceeds are in respect of any dispositions
of property of Spinco or any of its subsidiaries (the “Spinco Entities”) or any issuances or incurrences
by any Spinco Entities, the Bridge Loans shall be prepaid pursuant to clauses (a), (b) and (c) with such proceeds solely
to the extent all obligations under the Spinco Bridge Facility have been (or will be substantially simultaneously with such prepayment)
prepaid in full. 

 

    B-4

     

    

 

	Bridge Facility Documentation:	The Bridge Facility Documentation will be based upon the Existing RMT Partner
    Credit Agreement and will contain the provisions described herein; it being understood and agreed that, except as otherwise
    expressly set forth herein, the Bridge Facility Documentation shall be no more restrictive than the Existing RMT Partner Credit
    Agreement, with modifications (a) as are necessary to reflect the terms specifically set forth in the Commitment Letter
    (including the exhibits thereto) (including the nature of the Bridge Facility as a bridge financing) and the Arranger Fee
    Letter, (b) to reflect any changes in law or accounting standards since the date of the Existing RMT Partner Credit Agreement,
    (c) to reflect the operational or administrative requirements of the Administrative Agent that are customarily included
    in current credit agreements of a similar type and nature with respect to which Barclays acts as administrative agent, and
    (d) to the extent not inconsistent with the terms of the Commitment Letter (including all exhibits thereto) and the Fee
    Letters, as agreed by the Borrower and the Lead Arranger after good faith consideration of comments from the Lead Arranger
    and the syndicate of Lenders, on one hand, or the Borrower, on the other.  On or after the Closing Date, the Administrative
    Agent shall, to the extent required by the Existing RMT Partner Credit Agreement, execute and deliver an acknowledgment to
    the Intercreditor Agreement (as defined in the Existing RMT Partner Credit Agreement as in effect on the date hereof) in the
    form of Exhibit A thereto.  
	 	 
	Representations and Warranties:	Limited
        to the following (which shall be substantially the same as the Existing RMT Partner Credit Agreement, with the modifications
        set forth below and subject to the requirements set forth below under “Ratings Trigger”): organization and
        powers; authorization of Bridge Facility Documentation and borrowings; no conflict; validity and binding documentation;
        financial condition and solvency (to be defined in a manner consistent with Annex I to Exhibit C); no material
        adverse change since the Closing Date; litigation; ownership of property; subsidiaries; pension plans and plan assets;
        inapplicability of the Investment Company Act; margin regulations; payment of taxes; environmental matters; information
        (consistent with the representation in the Commitment Letter); and anti-corruption, sanctions laws and PATRIOT Act.

        All representations
        made on the Closing Date shall be made after giving effect to the Transactions and shall be subject to the Funds Certain
        Provisions.

	 	 
	Conditions Precedent to Closing:	Subject to the Funds Certain Provisions in all respects, the closing (and the funding) of
    the Bridge Facility will be subject only to satisfaction (or waiver by each Commitment Party) of the Specified Conditions.

 

    B-5

     

    

 

	Affirmative Covenants:	Limited to the following (which shall be substantially the same as the Existing
    RMT Partner Credit Agreement with mutually agreed-upon changes and subject to the requirements set forth below under “Ratings
    Trigger”): delivery of financial statements, reports, certificates and other information; books, records and inspections;
    insurance; compliance with laws (including environmental, ERISA, and anti-corruption and sanctions laws); use of proceeds
    (including as to anti-corruption and sanctions laws); payment of taxes; maintenance of corporate existence; further assurances;
    “know your customer” and anti-money laundering rules and regulations, including the PATRIOT Act and Beneficial
    Ownership Regulation; and non-guarantor domestic subsidiaries. The insurance covenant shall provide that the Borrower and
    its significant subsidiaries may maintain self-insurance and otherwise must maintain customary insurance except to the extent
    the failure to be so insured could not reasonably be expected to have a material adverse effect.
	 	 
	Negative Covenants:	Limited to the following (which shall be substantially the same as the Existing RMT Partner
    Credit Agreement, with mutually agreed-upon changes and subject to the requirements set forth below under “Ratings Trigger”):
    limitations on debt (which shall in any event permit the Spinco Bridge Facility and either the Existing RMT Partner Credit
    Agreement or the Backstop Bridge Facility); limitations on liens; limitations on mergers, consolidations and sales of assets
    (which shall permit the Merger and permit the disposition of any assets, equity interests and/or divisions or lines of business
    as and to the extent required by any governmental authority having (or purporting to have) jurisdiction over the Borrower
    or any of its subsidiaries); and limitations on transactions with affiliates.
	 	 
	Financial Covenants:	A maximum
        Funded Debt to EBITDA Ratio, as of the last day of any four fiscal quarter period, of 4.00 to 1.00; provided that
        at any time either (a) a Non-Investment Grade Debt Rating (as defined below) occurs and is continuing or (b) the
        Bridge Facility is fully drawn, the maximum Funded Debt to EBITDA Ratio, as of the last day of any four fiscal quarter
        period, shall not exceed 4.50 to 1.00.

         

        A minimum
        Interest Coverage Ratio, as of the last day of any four fiscal quarter period, of not less than 3.00 to 1.00.

         

        Notwithstanding
        the above, in no event shall either financial covenant for any period be less restrictive than the corresponding financial
        covenant for such period under the Note Purchase Agreement (as defined in the Existing RMT Partner Credit Agreement) for
        so long as the Note Purchase Agreement is in effect.

         

        The foregoing
        financial terms to be substantially the same as set forth in the Existing RMT Partner Credit Agreement, and all calculations
        will be made on a pro forma basis after giving effect to the Transactions.

 

    B-6

     

    

 

	Guarantees:	The obligations
        of the Borrower under the Bridge Facility Documentation will be guaranteed by the domestic subsidiaries of the Borrower,
        including Spinco and the subsidiaries of Spinco (other than excluded subsidiaries (which shall include (i) any subsidiary
        having assets with a value of less than $10 million and (ii) not-for-profit subsidiaries)), representing not less
        than (x) 80% of the total assets of the Borrower and its domestic subsidiaries (other than excluded subsidiaries)
        and (y) 80% of the total revenue of the Borrower and its domestic subsidiaries (other than excluded subsidiaries)
        (the “Subsidiary Guarantors” and, together with the Borrower, the “Loan Parties”)
        to the extent and on the terms substantially as provided in the Existing RMT Partner Credit Agreement; provided that
        (i) compliance with the guarantor coverage test will only be tested for a fiscal quarter at the time of delivery
        by the Borrower of the compliance certificate with respect to such quarter and (ii) notwithstanding the foregoing,
        the Subsidiary Guarantors shall include each subsidiary of the Borrower that guarantees the obligations under the Existing
        RMT Partner Credit Agreement, the Backstop Bridge Facility, the Spinco Bridge Facility or the Note Purchase Agreement.

         

        If at
        any time the Debt Rating (as defined in Annex I to this Exhibit B) by S&P is BBB or higher and by Moody’s
        is Baa2 or higher, the requirement for domestic subsidiaries of the Borrower to guarantee the obligations under the Bridge
        Facility Documentation shall no longer be effective so long as prior to or concurrently with such release, the lenders
        under the Existing RMT Partner Credit Agreement, the Backstop Bridge Facility and the Spinco Bridge Facility and the holders
        of notes under the Note Purchase Agreement and of any indebtedness in an aggregate principal amount exceeding an amount
        to be agreed each release such subsidiaries as guarantors under the applicable documentation governing such indebtedness.

         

	Security:	None, subject to the requirements set forth below under “Ratings Trigger”.
	 	 
	Ratings Trigger:	If the Debt Rating by S&P in effect at any time on or after the Closing Date is lower
    than BBB- or the Debt Rating by Moody’s in effect at any time on or after the Closing Date is lower than Baa3 (such
    rating, a “Non-Investment Grade Rating”), the Lead Arranger may make any or all of the following
    changes to the Bridge Facility (which shall be incorporated in the Bridge Facility Documentation, including security and collateral
    agreements, as promptly as practicable and in any event on or prior to the later of (x) 20 calendar days (or such later
    date as may be agreed to by the Administrative Agent) after the Closing Date and (y) 20 calendar days (or such later
    date as may be agreed to by the Administrative Agent) after the date of the public announcement of such Debt Rating): (a) (i) require
    that the obligations of the Loan Parties shall be secured on a first priority basis by the assets of (including any debt and
    equity owned by) the Loan Parties, subject to certain exceptions to be agreed that are customary for similar leveraged loans
    for similar companies; provided that any actions necessary to perfect any security interest, other than filing financing
    statements or intellectual property security agreements or delivery of possessory collateral, shall be completed as promptly
    as practicable and in any event on or prior to the date that is 90 calendar days (or such later date as may be agreed to by
    the Administrative Agent) after the later of (x) the Closing Date and (y) the date of the public announcement of
    such Debt Rating, and (ii) modify the representations and warranties, affirmative covenants and negative covenants to
    include certain provisions to be agreed that are customary for secured loans; and/or (b) add negative covenants in respect
    of restricted payments and investments, with exceptions to be agreed that are customary for similar leveraged loans for similar
    companies.

 

    B-7

     

    

 

	Events of Default:	Substantially the same as the Existing RMT Partner Credit Agreement, including
    (except as set forth herein) thresholds and grace periods as provided therein, which shall be limited to the following: failure
    to pay principal, interest or other amounts; cross default with respect to the Spinco Bridge Facility, the Backstop Bridge
    Facility and any debt in excess of $100 million; certain bankruptcy events; breach of covenants; breach of representations
    and warranties in any material respect; certain ERISA matters that could reasonably be expected to result in a material adverse
    effect; unpaid judgments in excess of $100 million; invalidity of guarantees or any material provision of any material loan
    document; and Change in Control (as defined in the Existing RMT Partner Credit Agreement but with the threshold increased
    to 50% to the extent the corresponding thresholds in each of the Existing RMT Partner Credit Agreement, the documentation
    governing the Spinco Bridge Facility, the documentation governing the Backstop Bridge Facility and, to the extent any obligations
    remain outstanding thereunder, in the Note Purchase Agreement (as defined in the Existing RMT Partner Credit Agreement) are
    increased to 50%).
	 	 
	Voting:	Amendments and waivers of the Bridge Facility Documentation will require the approval of Lenders
    holding more than 50% of the aggregate amount of the loans and commitments thereunder (the “Required Lenders”),
    with certain amendments requiring class votes, except that (a) the consent of each Lender adversely affected thereby
    shall be required with respect to, among other things (i) increases in the commitment of such Lender, (ii) reductions
    of principal, interest or fees payable to such Lender and (iii) extensions of final maturity or scheduled date for the
    payment of principal of the loans or commitments of such Lender and (b) the consent of each Lender shall be required
    with respect to, among other things, (i) the amendment of certain pro rata sharing provisions and (ii) the amendment
    of voting percentages of the Lenders.

 

    B-8

     

    

 

	Yield Protection and Illegality:	Substantially the same as the Existing RMT Partner Credit Agreement.
	 	 
	 	The Borrower will have customary rights to replace or (subject to no event of default) remove
    any Lender that becomes a defaulting lender, requests compensation for increased costs (including as a result of a participant
    request for increased costs) or loss of yield or fails to consent to certain amendments. Any assignment in respect of replacement
    of a Lender may become effective without the replaced Lender being a party to such assignment documentation.
	 	 
	Defaulting Lenders:	The Bridge Facility Documentation will contain customary defaulting lender provisions addressing,
    among other things, voting rights and commitment reallocations.
	 	 
	Assignments and Participations:	The Lenders will be permitted to assign loans and commitments to other Lenders (or their affiliates
    or Approved Funds (as defined in the Existing RMT Partner Credit Agreement)) without restriction, or to other financial institutions
    with the consent of the Borrower (so long as no event of default has occurred and is continuing) and the Administrative Agent,
    in each case not to be unreasonably withheld or delayed; provided that (a) the Borrower shall be deemed to have
    given its consent to an assignment if it has not responded within 10 business days of a written request for such consent,
    (b) no assignment may be made to any Disqualified Lender, (c) the Borrower shall be provided notice of any assignment
    made without its consent and (d) the Borrower’s consent to assignments shall not be required to the extent not
    required pursuant to the syndication provisions of the Commitment Letter.  Notwithstanding the foregoing, however,
    any Lender assigning a commitment (prior to the funding of the Bridge Loans) shall be required to obtain the approval of the
    Administrative Agent, unless the proposed assignee is already a Lender.  In the case of partial assignments, the
    minimum assignment amount will be $5,000,000.  The Administrative Agent will receive a processing and recordation
    fee of $3,500, payable by the assignor and/or the assignee, with each assignment.
	 	 
	 	The Lenders will be permitted to sell participations in loans and commitments without restriction
    to other financial institutions (excluding Disqualified Lenders).  Voting rights of participants shall be limited
    to matters in respect of (a) increases in commitments of such participant, (b) reductions of principal, interest
    or fees payable to such participant, (c) extensions of final maturity of the loans or commitments, or scheduled date
    for the payment of principal of the loans, in each case in which such participant participates and (d) release of all
    or substantially all of the value of the guarantees of the Subsidiary Guarantors, other than in accordance with the terms
    thereof.

 

    B-9

     

    

 

	 	Any loan
        of any Lender may be funded by an affiliated Special Purpose Funding Vehicle of such Lender, so long as the commitment
        with respect thereto remains with such Lender.

                            

        The Bridge
        Facility Documentation will contain provisions permitting the removal of Disqualified Lenders that become Lenders and
        limiting the voting and information rights of such Lenders.

	 	 
	Expenses and Indemnification:	Substantially the same as the Existing RMT Partner Credit Agreement.
	 	 
	Most Favored Nation Protection:	Substantially the same as the Existing RMT Partner Credit Agreement.
	 	 
	European Union and UK Bail-In:	The Bridge Facility Documentation will contain standard European Union and UK bail-in acknowledgements.
	 	 
	Governing Law and Forum:	New York.
	 	 
	Counsel to Administrative Agent and Lead Arranger:	Simpson Thacher & Bartlett LLP.

 

    B-10

     

    

 

CONFIDENTIAL

ANNEX I TO EXHIBIT B

 

Pricing and Fees

 

	Interest Rate Options:	
        The Borrower may elect that the Loans comprising
        each borrowing bear interest at a rate per annum equal to (a) the Base Rate (as defined below) plus the Base Rate Margin (as
        defined below) or (b) the Eurodollar Rate (Reserve Adjusted) (as defined below) plus the Eurodollar Margin (as defined below).

         

        Each of the “Eurodollar Margin”
        and the “Base Rate Margin” will be determined as of any date of determination by reference to the Pricing
        Grid below.

         

        As used herein:

         

        “Base Rate” shall
        mean the highest of (i) the rate of interest last quoted by The Wall Street Journal as the “prime rate” in the
        U.S. or, if The Wall Street Journal ceases to quote such rate, the highest rate per annum published by the Federal Reserve Board
        as the “bank prime loan” rate or, if such rate is no longer quoted, any similar release by the Federal Reserve Board
        (the “Prime Rate”), (ii) the Federal Funds effective rate from time to time plus 0.5% and (iii) the
        Eurodollar Rate (Reserve Adjusted) for a one-month interest period plus 1%.

         

        “Eurodollar Rate (Reserve Adjusted)”
        shall mean a fluctuating rate per annum equal to (x) the rate per annum determined by the Administrative Agent to be the offered
        rate appearing on the page of the Reuters Screen which displays an average London interbank offered rate administered by ICE
        Benchmark Administration Limited (the “LIBOR Rate”), or (y) if the rate in clause (x) above
        does not appear on such page or service or if such page or service is not available, the rate per annum determined by
        the Administrative Agent to be the offered rate on such other page or other service which displays the LIBOR Rate, in each
        case as adjusted for applicable reserve requirements; provided that if LIBOR Rates are quoted under either of clauses (x) or
        (y), but there is no such quotation for the interest period elected, the LIBOR Rate shall be equal to the interpolated rate; provided
        that in no event shall the Eurodollar Rate (Reserve Adjusted) be less than zero.

         

        The Borrower shall be permitted to request
        interest periods in respect of Loans accruing interest based on the Eurodollar Rate of one week or one, two, three, six or twelve
        months (or such other period as all Lenders may agree).

         

        The Bridge Facility Documentation shall
        include the ARRC “hardwired” provisions in respect of the discontinuation of LIBOR.

 

    B-I-1

     

    

 

	Duration Fees:	
        The Borrower will pay, on each Duration
        Fee Date (as defined below) to the Administrative Agent for the account of each Lender in proportion to its Bridge Loans in respect
        of the Bridge Facility on the applicable Duration Fee Date, non-refundable duration fees (the “Duration Fees”)
        in an amount equal to the product of (i) the Applicable Duration Fee Rate multiplied by (ii) the aggregate principal
        amount of the Bridge Loans outstanding on the applicable Duration Fee Date. The Duration Fees shall be earned, due and payable
        on each applicable Duration Fee Date.

         

        The “Duration Fee Dates”
        shall be each of (a) the date that is 90 days after the Closing Date, (b) the date that is 180 days after the Closing
        Date and (c) the date that is 270 days after the Closing Date.

         

        The “Applicable Duration Fee
        Rate” shall be determined as of any Duration Fee Date by reference to the Pricing Grid below.

         

	Ticking Fees: 	The Borrower will pay to each Commitment Party in proportion to its commitments in respect of the Bridge Facility, non-refundable ticking fees (the “Ticking Fees”) in an amount equal to the product of the Applicable Ticking Fee Rate (as defined below) multiplied by the actual daily undrawn portion of the aggregate principal amount of the commitments in respect of the Bridge Facility (as such amount shall be adjusted to give effect to any voluntary or mandatory reductions of the commitments in accordance with the terms of the Commitment Letter or the Bridge Facility Documentation), which Ticking Fees shall accrue from and including the 90th day following the Signing Date, through and including the earlier of (x) the Closing Date and (y) the date of the termination or expiration of the commitments in respect of the Bridge Facility (such earliest date, the “Ticking Fee Termination Date”) and shall be earned, due and payable on the Ticking Fee Termination Date.

 

    B-I-2

     

    

 

Pricing Grid

 

Eurodollar Margin and Base Rate Margin

 

Each
of the “Eurodollar Margin” and the “Base Rate Margin” mean, as of any
date of determination, (a) solely if there is at least one Debt Rating from Moody’s or S&P in effect on such date,
the applicable percentage per annum set forth below and directly opposite the applicable Debt Rating or (b) otherwise,
the applicable percentage per annum set forth below and directly opposite the applicable Funded Debt to EBITDA Ratio; provided
that, in the case of this clause (b), (i) each of the Eurodollar Margin and the Base Rate Margin shall be determined
based on the Funded Debt to EBITDA Ratio as of the last day of the most recent fiscal quarter or fiscal year, as applicable, for
which financial statements have been delivered to the Lead Arranger or the Administrative Agent pursuant to the Commitment Letter
or the Bridge Facility Documentation, (ii) the Funded Debt to EBITDA Ratio shall be calculated on a pro forma basis after
giving effect to the Transactions and (iii) if as of any date of determination, the Borrower shall have failed to deliver
the financial statements and any related certificates on the day required by the Commitment Letter or the Bridge Facility Documentation
in respect of the most recent fiscal period of the Borrower, the Funded Debt to EBITDA Ratio shall be deemed to be greater than
3.25 to 1.00 for purposes of determining each of the Eurodollar Margin and the Base Rate Margin.

 

		 	Closing Date through 89
 days after Closing Date	 	 	90 days after Closing
 Date through 179 days
 after Closing Date	 	 	180 days after Closing
 Date through 269 days
 after Closing Date	 	 	270 days after Closing
 Date and thereafter	 
	Debt Ratings	 	Eurodollar Margin	 	 	Base Rate Margin	 	 	Eurodollar Margin	 	 	Base Rate Margin	 	 	Eurodollar Margin	 	 	Base Rate Margin	 	 	Eurodollar Margin	 	 	Base Rate Margin	 
	A- or higher / A3 or higher	 	 	1.125	%	 	 	           0.125	%	 	 	1.375	%	 	 	          0.375	%	 	 	1.625	%	 	 	           0.625	%	 	 	1.875	%	 	 	           0.875	%
	BBB+ /Baa1	 	 	1.250	%	 	 	0.250	%	 	 	1.500	%	 	 	0.500	%	 	 	1.750	%	 	 	0.750	%	 	 	2.000	%	 	 	1.000	%
	BBB/Baa2	 	 	1.375	%	 	 	0.375	%	 	 	1.625	%	 	 	0.625	%	 	 	1.875	%	 	 	0.875	%	 	 	2.125	%	 	 	1.125	%
	BBB-/Baa3	 	 	1.500	%	 	 	0.500	%	 	 	1.750	%	 	 	0.750	%	 	 	2.000	%	 	 	1.000	%	 	 	2.250	%	 	 	1.250	%
	BB+ or lower /Ba1 or lower	 	 	2.000	%	 	 	1.000	%	 	 	2.250	%	 	 	1.250	%	 	 	2.500	%	 	 	1.500	%	 	 	2.750	%	 	 	1.750	%

 

    B-I-3

     

    

 

	 	 	Closing Date through 89
 days after Closing Date	 	 	90 days after Closing
 Date through 179 days
 after Closing Date	 	 	180 days after Closing
 Date through 269 days
 after Closing Date	 	 	270 days after Closing
 Date and thereafter	 
	Funded Debt to EBITDA Ratio	 	Eurodollar Margin	 	 	Base Rate Margin	 	 	Eurodollar Margin	 	 	Base Rate Margin	 	 	Eurodollar Margin	 	 	Base Rate Margin	 	 	Eurodollar Margin	 	 	Base Rate Margin	 
	Less than or equal to 1.00 to 1.00	 	 	1.125	%	 	 	          0.125	%	 	 	1.375	%	 	 	          0.375	%	 	 	          1.625	%	 	 	          0.625	%	 	 	1.875	%	 	 	            0.875	%
	Greater than 1.00 to 1.00 but less than or equal to 1.75 to 1.00	 	 	1.250	%	 	 	0.250	%	 	 	1.500	%	 	 	0.500	%	 	 	1.750	%	 	 	0.750	%	 	 	2.000	%	 	 	1.000	%
	Greater than 1.75 to 1.00 but less than or equal to 2.50 to 1.00	 	 	1.375	%	 	 	0.375	%	 	 	1.625	%	 	 	0.625	%	 	 	1.875	%	 	 	0.875	%	 	 	2.125	%	 	 	1.125	%
	Greater than 2.50 to 1.00 but less than or equal to 3.25 to 1.00	 	 	1.500	%	 	 	0.500	%	 	 	1.750	%	 	 	0.750	%	 	 	2.000	%	 	 	1.000	%	 	 	2.250	%	 	 	1.250	%
	Greater than 3.25 to 1.00	 	 	1.750	%	 	 	0.750	%	 	 	2.000	%	 	 	1.000	%	 	 	2.250	%	 	 	1.250	%	 	 	2.500	%	 	 	1.500	%

 

Applicable Duration Fee Rate

 

The “Applicable
Duration Fee Rate” means, as of any Duration Fee Date, (a) solely if there is at least one Debt Rating from
Moody’s or S&P in effect on such date, the applicable percentage per annum set forth below the applicable Debt
Ratings of the Borrower from Moody’s and S&P or (b) otherwise, the applicable percentage per annum set forth
below the applicable Funded Debt to EBITDA Ratio; provided that, in the case of this clause (b), (i) the Applicable
Duration Fee Rate shall be determined based on the Funded Debt to EBITDA Ratio as of the last day of the most recent fiscal quarter
or fiscal year, as applicable, for which financial statements have been delivered to the Lead Arranger or the Administrative Agent
pursuant to the Commitment Letter or the Bridge Facility Documentation, (ii) the Funded Debt to EBITDA Ratio shall be calculated
on a pro forma basis after giving effect to the Transactions and (iii) if as of any Duration Fee Date, the Borrower shall
have failed to deliver the financial statements and any related certificates on the day required by the Commitment Letter or the
Bridge Facility Documentation in respect of the most recent fiscal period of the Borrower, the Funded Debt to EBITDA Ratio shall
be deemed to be greater than 3.25 to 1.00 for purposes of determining Duration Fee Rate.

 

    B-I-4

     

    

 

	 	 	If the Debt Rating in effect 
 as of such Duration Fee 
 Date is BBB-/Baa3 or 
 higher:	 	 	If the Debt Rating in effect 
 as of such Duration Fee 
 Date is lower than
 BBB-/Baa3:	 	 	If the Funded Debt to 
 EBITDA Ratio is less than
 or equal to 3.25 to 1.00:	 	 	If the Funded Debt to 
 EBITDA Ratio is greater 
 than 3.25 to 1.00:	 
	The date that is 90 days after the Closing Date	 	 	                                             0.50	%	 	 	                                              0.75	%	 	 	0.50	%	 	 	0.75	%
	The date that is 180 days after the Closing Date	 	 	0.75	%	 	 	1.00	%	 	 	0.75	%	 	 	1.00	%
	The date that is 270 days after the Closing Date	 	 	1.00	%	 	 	1.25	%	 	 	1.00	%	 	 	1.25	%

 

Ticking Fee

 

The “Applicable
Ticking Fee Rate” means, as of any date of determination, 0.150% per annum.

 

“Debt Ratings”
means as of any date of determination, the public corporate credit or family ratings of the Borrower as determined by S&P or
Moody’s, as the case may be.

 

For purposes of the
foregoing: (a) if as of any date of determination there is only one Debt Rating in effect, each of the Eurodollar Margin,
the Base Rate Margin and the Applicable Duration Fee Rate will be determined by reference to such Debt Rating, (b) in the
event of a split in the Debt Ratings, each of the Eurodollar Margin, the Base Rate Margin and the Applicable Duration Fee Rate
will be determined by reference to the higher Debt Rating, unless the Debt Ratings are two or more rating levels apart, in which
case each of the Eurodollar Margin, the Base Rate Margin and the Applicable Duration Fee Rate will be determined by reference to
the Debt Rating that is one rating level higher than the lower Debt Rating and (c) the Debt Ratings shall be determined from
the most recent public announcement of the Debt Ratings or any changes thereto.

 

    B-I-5

     

    

 

CONFIDENTIAL

EXHIBIT C

 

Project Phoenix

$2,126,000,000 364-Day Bridge Facility

Conditions Precedent3

 

Subject in all respects
to the Funds Certain Provisions, the borrowing under the Bridge Facility shall be subject solely to the satisfaction, or waiver
by each of the Commitment Parties, of the following conditions precedent:

 

1.            The
Loan Parties shall have executed and delivered Bridge Facility Documentation consistent with the Commitment Letter, the Term Sheet
and the Arranger Fee Letter and containing only those mandatory prepayments, representations, warranties, affirmative and negative
covenants and events of default expressly contemplated in the Term Sheet.

 

2.            (a) 
The Internal Restructuring and the transfer of assets and assumption of liabilities contemplated by, as applicable, the Merger
Agreement, the Separation Agreement, the Employee Matters Agreement (as defined in the Merger Agreement), the Real Estate Matters
Agreement (as defined in the Merger Agreement) and the Intellectual Property Matters Agreement (as defined in the Merger Agreement),
in each case, shall have been consummated, or will be consummated substantially concurrently with the funding of the Bridge Facility,
in all material respects, in accordance with and subject to the terms of the Merger Agreement, the Separation Agreement, the Employee
Matters Agreement, the Real Estate Matters Agreement and the Intellectual Property Matters Agreement, (b) the Spinco Contribution
(as defined in the Merger Agreement) and the Distributions (as defined in the Merger Agreement) shall have been consummated, or
will be consummated substantially concurrently with the funding of the Bridge Facility in accordance with the terms of the Separation
Agreement and the Merger Agreement, (c) the Transition Services Agreement (as defined in the Merger Agreement) shall have
been executed and delivered by the parties thereto and (d) the Merger shall have been consummated, or will be consummated
substantially concurrently with the funding of the Bridge Facility, in accordance with the Merger Agreement and no amendments,
modifications, consents or waivers to or of the Merger Agreement or the Separation Agreement (it being understood and agreed that
any purchase price adjustments and any extension of the “End Date” thereunder, in each case expressly contemplated
by the Separation Agreement or the Merger Agreement, each as in effect on the date hereof, shall not be considered an amendment,
modification, consent or waiver) that are materially adverse to the Lenders or the Commitment Parties shall have been made without
the consent of both (a) Barclays and (b) the Commitment Parties (which may include Barclays) holding a majority of the
aggregate principal amount of the commitments in respect of the Bridge Facility at such time (such consent not to be unreasonably
withheld, delayed or conditioned)); provided that any amendment, modification, consent or waiver of the definition of either
Spinco Material Adverse Effect or Lien and Guarantee Release in the Merger Agreement shall be deemed to be materially adverse to
the Lenders and the Commitment Parties.

 

3.            Since
the date of the Merger Agreement, there shall not have occurred any Spinco Material Adverse Effect (as defined in the Merger Agreement),
and no event shall have occurred or circumstance shall exist that, in combination with any other events or circumstances, would
reasonably be expected to have or result in a Spinco Material Adverse Effect.

 

 

3
Capitalized terms used but not defined in this Exhibit C shall have the meanings set forth in the Commitment Letter
and the other Exhibits to the Commitment Letter to which this Exhibit C is attached. For purposes of this Exhibit C, “business
day” means any day, other than a Saturday, Sunday and any day on which banking institutions located in the State of New
York are authorized or required by law or other governmental action to close.

 

    C-1

     

    

 

4.            The
Commitment Parties shall have received (a) (i) audited consolidated (x) balance sheets of the Borrower for the
two most recent fiscal years ended at least 105 days prior to the Closing Date and (y) related statements of income, stockholders’
equity and cash flows of the Borrower for the two most recent fiscal years ended at least 105 days prior to the Closing Date and
(ii) unaudited consolidated balance sheets and related statements of income, stockholders’ equity and cash flows of
the Borrower for each subsequent fiscal quarter (other than the fourth fiscal quarter
of any fiscal year) ended at least 60 days before the Closing Date (and the corresponding period in the prior year, in the case
of the statements of income, stockholders’ equity and cash flows) and (b) (i) audited consolidated (x) balance
sheets of Spinco for the two most recent fiscal years ended at least 105 days prior to the Closing Date and (y) related statements
of income, stockholders’ equity and cash flows of Spinco for the two most recent fiscal years ended at least 105 days prior
to the Closing Date and (ii) unaudited consolidated balance sheets and related statements of income, stockholders’
equity and cash flows of Spinco for each subsequent fiscal quarter (other than the
fourth fiscal quarter of any fiscal year) ended at least w60 days before the Closing Date (and the corresponding period in the
prior year, in the case of the statements of income, stockholders’ equity and cash flows); provided that no such
financial statements shall be required to include adjustments for purchase accounting (including adjustments of the type contemplated
by Financial Accounting Standards Board Accounting Standards Codification 805, Business Combinations (formerly SFAS 141R)); provided
further that the Borrower shall be deemed to have satisfied this requirement to the extent that any such financial statements
have been filed and are publicly available electronically at www.sec.gov (or a successor web site thereto). The Commitment
Parties acknowledge receipt of the financial statements described in clause (a) for the fiscal years ending December 31,
2018 and 2019.

 

5.            The
Commitment Parties shall have received the pro forma consolidated balance sheet of the Borrower as of the end of the most recent
fiscal year for which financial statements have been delivered pursuant to paragraph 4(a) and the most recent fiscal quarter
for which financial statements have been delivered pursuant to paragraph 4(a), as applicable, and pro forma consolidated statements
of income for the most recent fiscal year for which financial statements have been delivered pursuant to paragraph 4(a) and
the most recent fiscal quarter for which financial statements have been delivered pursuant to paragraph 4(a); provided that
such pro forma consolidated balance sheet shall not be required to include adjustments for purchase accounting (including adjustments
of the type contemplated by the Financial Accounting Standards Board Accounting Standards Codification 805, Business Combinations
(formerly SFAS 141R)) or otherwise meet the requirements for pro forma financial statements for a public company.

 

6.            If
there is no Debt Rating in effect as of the Closing Date, a certificate setting forth in reasonable detail the calculation of the
Funded Debt to EBITDA Ratio (as defined in the Existing RMT Partner Credit Agreement and calculated on a pro forma basis after
giving effect to the Transactions) for the most recent period of four consecutive fiscal quarters of the Borrower for which financial
statements have been delivered pursuant to paragraph 4.

 

7.            The
Administrative Agent shall have received legal opinions, corporate organizational documents, good standing certificates (in such
person’s jurisdiction of organization), resolutions and customary certificates as to incumbency and the satisfaction of the
closing conditions described in this Exhibit C, in each case, with respect to the Loan Parties and as are customary for transactions
of this type and reasonably satisfactory to the Administrative Agent and the Borrower.

 

8.            The
Administrative Agent shall have received a solvency certificate in substantially the form of Annex I to this Exhibit C.

 

9.            The
Commitment Parties and the Lenders shall have received (or shall simultaneously receive) all fees and invoiced expenses required
to be paid on or prior to the Closing Date pursuant to the Fee Letters, the Term Sheet or the Bridge Facility Documentation; provided,
that, in the case of expenses, the Borrower has received a reasonably detailed summary of such expenses not less than two business
days prior to the Closing Date (which amounts may be offset against the proceeds of the Bridge Facility).

 

    C-2

     

    

 

10.          The
Commitment Parties shall have received, at least three business days prior to the Closing Date, all documentation and other information
with respect to the Borrower required by regulatory authorities under applicable “know your customer” and anti-money
laundering rules and regulations, including, without limitation, the PATRIOT Act and 31 C.F.R. § 1010.230, and to the
extent reasonably requested by the Commitment Parties at least 10 business days prior to the Closing Date.

 

11.         The
Merger Agreement Representations shall be true and correct to the extent required by the Funds Certain Provisions and the Specified
Representations shall be true and correct in all material respects (except in the case of any Specified Representation which expressly
relates to a given date or period, such representation and warranty shall be true and correct in all material respects as of the
respective date or for the respective period, as the case may be); provided, that to the extent that any of the Specified Representations
are qualified by or subject to a “material adverse effect”, “material adverse change” or similar term or
qualification, (x) the definition thereof shall be the definition of RMT Partner Material Adverse Effect (as defined in the
Merger Agreement) for purposes of any such representations and warranties made or deemed made on, or as of, the Closing Date (or
any date prior thereto) and (y) such Specified Representations shall be true in all respects.

 

12.          The
Remainco Refinancing shall have been consummated, or will be consummated substantially concurrently with the funding of the Bridge
Facility and the Merger.

 

    C-3

     

    

 

ANNEX I TO EXHIBIT C

 

Form of Solvency Certificate

 

[DATE]

 

This Solvency Certificate
(“Certificate”) of Regal Beloit Corporation, a Wisconsin corporation (the “Company”),
and its Subsidiaries is delivered pursuant to Section [__] of the [__], dated as of [__], 20[__] (the “Credit
Agreement”), by and among the Company, the Lenders from time to time party thereto, and Barclays Bank PLC, as administrative
agent. Unless otherwise defined herein, capitalized terms used in this Certificate shall have the meanings set forth in the Credit
Agreement.

 

I, [__], the duly elected,
qualified and acting [__] of the Company, DO HEREBY CERTIFY, in that capacity only and not in my individual capacity (and without
personal liability), as follows:

 

1.            I
have reviewed the Credit Agreement and the other Loan Documents referred to therein (collectively, the “Transaction
Documents”) and have made such investigation as I have deemed necessary to enable me to express a reasonably informed
opinion as to the matters referred to herein.

 

2.            As
of the date hereof, after giving effect to the Transactions, the fair value and the present fair saleable value of any and all
property of the Company and its Subsidiaries, on a consolidated basis, is greater than the liability on existing debts of the Company
and its Subsidiaries, on a consolidated basis, as they become absolute and matured in the ordinary course of business (it being
understood that the amount of contingent liabilities at any time shall be computed as the amount that, in the light of all the
facts and circumstances existing as of the date hereof, represents the amount that can reasonably be expected to become an actual
or matured liability).

 

3.            As
of the date hereof, after giving effect to the Transactions, the Company and its Subsidiaries, on a consolidated basis are able
to pay their debts (including, without limitation, contingent and subordinated liabilities) as they become absolute and mature
in the ordinary course of business (it being understood that the amount of contingent liabilities at any time shall be computed
as the amount that, in the light of all the facts and circumstances existing as of the date hereof, represents the amount that
can reasonably be expected to become an actual or matured liability).

 

4.            The
Company and its Subsidiaries, on a consolidated basis, do not intend to, nor do they believe that they will, incur debts that would
be beyond their ability to pay as such debts mature in the ordinary course of business.

 

5.            As
of the date hereof, before and after giving effect to the Transactions, the Company and its Subsidiaries are not engaged in businesses
or transactions, nor about to engage in businesses or transactions, for which any property remaining would, on a consolidated basis,
constitute unreasonably small capital.

 

[Remainder of page intentionally left
blank]

 

    C-I-1Document

Exhibit 4.320

DESCRIPTION OF THE REGISTRANT’S SECURITIES
REGISTERED PURSUANT TO SECTION 12 OF THE SECURITIES
EXCHANGE ACT OF 1934

As of the end of its most recent fiscal year, DTE Energy Company (“DTE Energy,” “we,” “our,” or “us”) had three series of junior subordinated debentures issued prior to 2020 registered under Section 12 of the Securities Exchange Act of 1934, as amended:
												
		•	2016 Series B 5.375% Junior Subordinated Debentures due 2076 the (“2016 Series B debentures”);

			
		•	2016 Series F 6.00% Junior Subordinated Debentures due 2076 (the “2016 Series F debentures”); and

			
		•	2017 Series E 5.25% Junior Subordinated Debentures due 2077 (the “2017 Series E debentures”).

DESCRIPTION OF JUNIOR SUBORDINATED DEBENTURES
The following summary sets forth the specific terms and provisions of the junior subordinated debentures. The summary is not complete, and is qualified by reference to the terms and provisions of the junior subordinated debentures and the indenture described below, which have been incorporated by reference as exhibits to the Annual Report on Form 10-K of which this exhibit forms a part. We encourage you to read the below-referenced indenture, as supplemented, for additional information.
General
Each series of junior subordinated debentures were issued under the Indenture, dated as of April 9, 2001, between DTE Energy and The Bank of New York Mellon Trust Company, N.A., as successor trustee, as supplemented. The junior subordinated debentures are our unsecured obligations and will be subordinate in right of payment to our Senior Indebtedness (as described below under “Subordination”). The 2016 Series B debentures were initially issued in an aggregate principal amount of $300,000,000. The 2016 Series F debentures were initially issued in an aggregate principal amount of $280,000,000. The 2017 Series E debentures were initially issued in an aggregate principal amount of $400,000,000.
The 2016 Series B debentures, the 2016 Series F debentures and the 2017 Series E debentures are each listed on the New York Stock Exchange under the trading symbols “DTJ,” “DTY” and “DTW,” respectively.  
The indenture does not limit the amount of indebtedness that we may issue. As of December 31, 2020, approximately $8.1 billion aggregate principal amount of senior debt securities, excluding current maturities, and $1.2 billion of junior subordinated debentures were issued and outstanding under the indenture. On December 31, 2020, we and our subsidiaries had consolidated long-term indebtedness of approximately $15.6 billion, substantially all of which would be effectively senior to the junior subordinated debentures.
The authorized denominations for each series of junior subordinated debentures are $25 and integral multiples thereof.
Interest and Principal
The 2016 Series B debentures bear interest at a rate of 5.375% per year, payable in arrears quarterly March 1, June 1, September 1 and December 1 of each year, subject to deferral as described below under “Deferral of Payment Periods.” The 2016 Series F debentures bear interest at a rate of 6.00% per year, payable in arrears quarterly March 15, June 15, September 15 and December 15 of each year, subject to deferral as described below under “Deferral of Payment Periods.” The 2017 Series E debentures bear interest at a rate of 5.25% per year, payable in arrears quarterly March 1, June 1, September 1 and December 1 of each year, subject to deferral as described below under “Deferral of Payment Periods.”
The 2016 Series B debentures will mature and become due and payable, together with any accrued and unpaid interest thereon, on June 1, 2076. The 2016 Series F debentures will mature and become due and payable, together with any accrued and unpaid interest thereon, on December 15, 2076. The 2017 Series E debentures will mature and become due and payable, together with any accrued and unpaid interest thereon, on December 1, 2077.
1

Interest will be paid to the person in whose name the applicable junior subordinated debenture is registered at the close of business on the date (whether or not such day is a business day) fifteen calendar days immediately preceding the applicable interest payment date, except that interest not punctually paid will be payable to the person in whose name the applicable junior subordinated debenture is registered as of the close of business on a special record date established in accordance with the provisions of the indenture, or otherwise as provided in the indenture. The amount of interest payable will be computed on the basis of a 360-day year consisting of twelve 30-day months and, for any period shorter than a quarter, on the basis of the actual number of days elapsed per 30-day month. 
“Business day” means any day other than a Saturday or Sunday or a day on which commercial banks in the state of New York are required or authorized by law or executive order to be closed. In the event that any interest payment date, redemption date or maturity date is not a business day, then the required payment of principal and interest will be made on the next succeeding day that is a business day (and without any interest or other payment in respect of any such delay). If, however, that business day is in the next calendar year, payment will be made on the immediately preceding business day, in each case with the same force and effect as if made on the payment date.
Redemption
We may redeem the junior subordinated debentures at our option, in whole or in part, (i) on or after June 1, 2021 in the case of the 2016 Series B debentures, (ii) on or after December 15, 2021 in the case of the 2016 Series F debentures and (iii) on or after December 1, 2022 in the case of the 2017 Series E debentures. In each case, the redemption price will be 100% of the principal amount of such junior subordinated debentures being redeemed plus accrued and unpaid interest to, but excluding, the redemption date.
In addition, we may redeem the 2016 Series B, 2016 Series F and 2017 Series E debentures before such dates in whole, but not in part, within 90 days following the occurrence and continuance of a Tax Event (defined below). In such case, the redemption price will be (i) 100% of the principal amount of such junior subordinated debentures being redeemed plus accrued and unpaid interest to, but excluding, the redemption date in the case of the 2016 Series B debentures and the 2016 Series F debentures, and (ii) 101% of the principal amount of such junior subordinated debentures being redeemed plus accrued and unpaid interest to, but excluding, the redemption date in the case of the 2017 Series E debentures.
We may also redeem the junior subordinated debentures at our option, in whole but not in part, before such dates stated above, at any time within 90 days after the conclusion of any review or appeal process instituted by us following the occurrence and continuance of a Rating Agency Event (defined below). In this event, the redemption price will be 102% of the principal amount of such junior subordinated debentures being redeemed plus accrued and unpaid interest to, but excluding, the redemption date.
Notice of any redemption will be mailed at least 30 days but not more than 60 days before the redemption date to each holder of junior subordinated debentures to be redeemed at such holder’s registered address. Unless DTE Energy defaults in payment of the redemption price, on and after the redemption date interest shall cease to accrue on the junior subordinated debentures called for redemption. If the junior subordinated debentures are only partially redeemed, the junior subordinated debentures will be redeemed pro rata or by lot or by any other method utilized by the trustee; provided that if, at the time of redemption, the junior subordinated debentures are registered as a global certificate held by a depositary, the depositary shall determine, in accordance with its procedures, the principal amount of such junior subordinated debentures held by each depositary participant to be redeemed.
The junior subordinated debentures will not be entitled to the benefit of a sinking fund or be subject to redemption at the option of the holder.
Redemption following a Tax Event
We will have the right to redeem all, but not fewer than all, of each series of junior subordinated debentures, at the redemption prices and prior to the dates described above, at any time within 90 days following the occurrence and continuation of a Tax Event. A Tax Event means that DTE Energy has received an opinion of nationally recognized independent tax counsel experienced in such matters to the effect that, as a result of:
												
		•	any amendment to, change or announced proposed change in the laws or regulations of the United States or any of its political subdivisions or taxing authorities affecting taxation,

			

2

												
		•	any amendment to or change in an interpretation or application of such laws or regulations by any legislative body, court, governmental agency or regulatory authority, or

			
		•	any interpretation or pronouncement that provides for a position with respect to those laws or regulations that differs from the generally accepted position on the date the junior subordinated debentures are issued

which amendment or change becomes effective or proposed change, pronouncement, interpretation, action or decision is announced on or after the date of the applicable prospectus supplement relating to the junior subordinated debentures, there is more than an insubstantial risk that interest payable on the junior subordinated debentures is not or within 90 days of the date of the opinion would not be deductible, in whole or in part, by us for United States federal income tax purposes.
Our right to redeem the junior subordinated debentures due to a Tax Event is subject to the condition that, if we have the opportunity to eliminate, within the 90-day period, the Tax Event by taking some ministerial action that will have no adverse effect on us or the holders of the junior subordinated debentures and will involve no material cost, we will pursue such measures in lieu of redemption. We cannot redeem the junior subordinated debentures while we are pursuing any such ministerial action.
Redemption following a Rating Agency Event
We will have the right to redeem each series of junior subordinated debentures, in whole but not in part, prior to the dates described above at any time within 90 days after the conclusion of any review or appeal process instituted by us following the occurrence and continuation of a Rating Agency Event (as defined below), at a redemption price equal to 102% of the principal amount of such junior subordinated debentures being redeemed plus accrued and unpaid interest to the redemption date.
“Rating Agency Event” means a change in the methodology published by any nationally recognized statistical rating organization within the meaning of Section 3(a)(62) of the Exchange Act (sometimes referred to in this exhibit as a “rating agency”) that currently publishes a rating for us in assigning equity credit to securities such as the junior subordinated debentures, as such methodology is in effect on the date of issuance of the applicable prospectus supplement relating to the series of junior subordinated debenture (the “current criteria”), which change results in a lower equity credit being assigned by such rating agency to the junior subordinated debentures as of the date of such change than the equity credit that would have been assigned to the junior subordinated debentures as of the date of such change by such rating agency pursuant to its current criteria.
Deferral of Payment Periods
So long as there is no event of default under the indenture with respect to the applicable series of junior subordinated debentures, we may defer interest payments on each series junior subordinated debentures for a period of up to 40 consecutive quarters; except that no such deferral period may extend beyond the maturity of the junior subordinated debentures. During this period, the interest on the junior subordinated debentures will still accrue at the applicable annual rate. In addition, interest on the deferred interest will accrue at the applicable annual rate, compounded quarterly, to the extent permitted by law.
Before the end of any deferral period that is shorter than 40 consecutive quarters, we may further defer the period, so long as the entire deferral period does not exceed 40 consecutive quarters or extend beyond the maturity or redemption date, if earlier, of the junior subordinated debentures. We may also elect to shorten the length of any deferral period. At the end of any deferral period, if all amounts then due on the junior subordinated debentures, including interest on unpaid interest, have been paid, we may elect to begin a new deferral period.
If we defer payment on the junior subordinated debentures, neither we nor our majority-owned subsidiaries may:
												
		•	declare or pay any dividend or distribution on DTE Energy Company capital stock;
			
		•	redeem, purchase, acquire or make a liquidation payment with respect to, any DTE Energy Company capital stock;
			

3

												
		•	make any payment of principal of or interest or premium, if any, on or repay, repurchase or redeem any DTE Energy Company indebtedness that is equal in right of payment with, or junior to, the junior subordinated debentures; or
			
		•	make any guarantee payments with respect to any DTE Energy Company guarantee of indebtedness of our subsidiaries or any other party that is equal in right of payment with, or junior to, the junior subordinated debentures.

 However, during an interest deferral period, we may (a) pay dividends or distributions payable solely in shares of common stock or options, warrants or rights to subscribe for or purchase shares of our common stock, (b) declare any dividend in connection with the implementation of a plan providing for the issuance by us to all holders of our common stock of rights entitling them to subscribe for or purchase common stock or any class or series of preferred stock, which rights (1) are deemed to be transferred with such common stock, (2) are not exercisable and (3) are also issued in respect of future issuances of common stock, in each case until the occurrence of a specified event or events (a “Rights Plan”), (c) issue any of our shares of capital stock under any Rights Plan or redeem or repurchase any rights distributed pursuant to a Rights Plan, (d) reclassify our capital stock or exchange or convert one class or series of our capital stock for another class or series of our capital stock, (e) purchase fractional interests in shares of our capital stock pursuant to the conversion or exchange provisions of such capital stock or the security being converted or exchanged, and (f) purchase common stock related to the issuance of common stock or rights under our dividend reinvestment plan or any of our benefit plans for our directors, officers, employees, consultants or advisors.
We will give the holders of the junior subordinated debentures and the trustee notice of our election or any shortening or extension of the deferral period at least ten business days prior to the earlier of (1) the next succeeding interest payment date or (2) the date upon which we are required to give notice to the New York Stock Exchange or any applicable self-regulatory organization or to holders of the junior subordinated debentures of the record or payment date of the related interest payment.
 
Subordination
The junior subordinated debentures are our unsecured obligations and will be subordinate and junior in right of payment, to the extent set forth in the indenture, to all our Senior Indebtedness as defined below. If:
												
		•	we make a payment or distribution of any of our assets to creditors upon our dissolution, winding-up, liquidation or reorganization, whether in bankruptcy, insolvency or otherwise,
			
		•	a default beyond any grace period has occurred and is continuing with respect to the payment of principal, interest or any other monetary amounts due and payable on any Senior Indebtedness, or
			
		•	the maturity of any Senior Indebtedness has been accelerated because of a default on that Senior Indebtedness,

then the holders of Senior Indebtedness generally will have the right to receive payment, in the case of the first event above, of all amounts due or to become due upon that Senior Indebtedness, and, in the case of the second and third events above, of all amounts due on that Senior Indebtedness, or we must make provision for those payments, before the holders of any junior subordinated debentures have the right to receive any payments of principal or interest on their junior subordinated debentures.
If the trustee or any holder of junior subordinated debentures receives any payment or distribution on account of the junior subordinated debentures before all of our Senior Indebtedness is paid in full, then that payment or distribution will be paid over, or delivered and transferred to, the holders of our Senior Indebtedness at the time outstanding.
The rights of the holders of the junior subordinated debentures will be subrogated to the rights of the holders of our Senior Indebtedness to the extent of any payment we made to the holders of our Senior Indebtedness that otherwise would have been made to the holders of the junior subordinated debentures but for the subordination provisions. No payments on account of principal or any premium or interest in respect of the junior subordinated debenturess may be made if there has occurred and is continuing a default in any payment with respect to Senior Indebtedness or an event of default with respect to any Senior Indebtedness resulting in the acceleration of its maturity, or if any judicial proceeding is pending with respect to any default.
4

Each series of junior subordinated debentures will rank equally with each other and any of our other outstanding junior subordinated debentures and any other pari passu junior subordinated debentures we may issue from time to time. The junior subordinated debentures will be effectively junior to all obligations of our subsidiaries. Our obligations under the junior subordinated debentures are not guaranteed by our subsidiaries.
Senior Indebtedness will be entitled to the benefits of the subordination provisions in the indenture irrespective of the amendment, modification or waiver of any term of the Senior Indebtedness. We may not amend the indenture to change adversely the subordination provisions applicable to any outstanding junior subordinated debentures without the consent of each holder of Senior Indebtedness that the amendment would adversely affect.
“Senior Indebtedness,” for purposes of the junior subordinated debentures of each series, means all Indebtedness, whether outstanding on the date of issuance of the junior subordinated debentures of the applicable series or thereafter created, assumed or incurred, except Indebtedness ranking equally with the junior subordinated debentures or Indebtedness ranking junior to the junior subordinated debentures. Senior Indebtedness does not include obligations to trade creditors or indebtedness of DTE Energy to its subsidiaries. Senior Indebtedness with respect to the junior subordinated debentures of any particular series will continue to be Senior Indebtedness with respect to the junior subordinated debentures of such series and be entitled to the benefits of the subordination provisions irrespective of any amendment, modification or waiver of any term of such Senior Indebtedness.
“Indebtedness ranking equally with the junior subordinated debentures,” for purposes of junior subordinated debentures of the applicable series, means Indebtedness, whether outstanding on the date of issuance of the junior subordinated debentures or thereafter created, assumed or incurred, to the extent the Indebtedness specifically by its terms ranks equally with and not prior to the junior subordinated debentures in the right of payment upon the happening of the dissolution, winding-up, liquidation or reorganization of DTE Energy. The securing of any Indebtedness otherwise constituting Indebtedness ranking equally with the junior subordinated debentures will not prevent the Indebtedness from constituting Indebtedness ranking equally with the junior subordinated debentures.
“Indebtedness ranking junior to the junior subordinated debentures,” for purposes of junior subordinated debentures of the applicable series, means any Indebtedness, whether outstanding on the date of issuance of the junior subordinated debentures of the applicable series or thereafter created, assumed or incurred, to the extent the Indebtedness by its terms ranks junior to and not equally with or prior to:
												
		•	the junior subordinated debentures, and
			
		•	any other Indebtedness ranking equally with the junior subordinated debentures,

in right of payment upon the happening of the dissolution, winding-up, liquidation or reorganization of DTE Energy. The securing of any Indebtedness otherwise constituting Indebtedness ranking junior to the junior subordinated debentures will not prevent the Indebtedness from constituting Indebtedness ranking junior to the junior subordinated debentures.
“Indebtedness” means:
												
		•	indebtedness for borrowed money;
			
		•	obligations for the deferred purchase price of property or services (other than trade payables not overdue by more than 60 days incurred in the ordinary course of business);
			
		•	obligations evidenced by notes, bonds, debentures or other similar instruments;
			
		•	obligations created or arising under any conditional sale or other title retention agreement with respect to acquired property;
			
		•	obligations as lessee under leases that have been or should be, in accordance with accounting principles generally accepted in the United States, recorded as capital leases;
			
		•	obligations, contingent or otherwise, in respect of acceptances, letters of credit or similar extensions of credit;
			
		•	obligations in respect of interest rate swap, cap or collar agreements, interest rate future or option contracts, currency swap agreements, currency future or option contracts and other similar agreements;
			

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		•	guarantees of Indebtedness of others, directly or indirectly, or Indebtedness in effect guaranteed directly or indirectly through an agreement (1) to pay or purchase such Indebtedness or to advance or supply funds for the payment or purchase of such Indebtedness, (2) to purchase, sell or lease property, or to purchase or sell services, primarily for the purpose of enabling the debtor to make payment of such Indebtedness or to assure the holder of such Indebtedness against loss, (3) to supply funds to or in any other manner invest in the debtor or (4) otherwise to assure a creditor against loss; and
			
		•	Indebtedness described above secured by any lien (as defined in the indenture) on property.

Consolidation, Merger and Sale of Assets
DTE Energy may, without the consent of the holders of the junior subordinated debentures, consolidate or merge with or into, or convey, transfer or lease our properties and assets as an entirety or substantially as an entirety to, any person or permit any person to consolidate with or merge into us or convey, transfer or lease its properties and assets substantially as an entirety to us, as long as:
												
		•	if DTE Energy merges into or consolidates with, or transfers its properties and assets as an entirety (or substantially as an entirety) to any person, such person is a corporation, partnership or trust, organized and validly existing under the laws of the United States of America, any state thereof or the District of Columbia;
			
		•	any successor person (if not DTE Energy) assumes by supplemental indenture, the due and punctual payment of the principal of, any premium and interest on and any additional amounts with respect to all the junior subordinated debentures issued thereunder, and the performance of our obligations under the indenture and the junior subordinated debentures issued thereunder, and provides for conversion or exchange rights in accordance with the provisions of the junior subordinated debentures of any series that are convertible or exchangeable into common stock or other securities;

			
		•	no event of default under the indenture has occurred and is continuing after giving effect to the transaction;
			
		•	no event which, after notice or lapse of time or both, would become an event of default under the indenture has occurred and is continuing after giving effect to the transaction; and
			
		•	certain other conditions are met.

 Upon any merger or consolidation described above or conveyance or transfer of the properties and assets of DTE Energy as or substantially as an entirety as described above, the successor person will succeed to DTE Energy’s obligations under the indenture and, except in the case of a lease, the predecessor person will be relieved of such obligations.
The indenture does not prevent or restrict any conveyance or other transfer, or lease, of any part of the properties of DTE Energy which does not constitute the entirety, or substantially the entirety, thereof.
Events of Default under the Indenture
The following are the “events of default” applicable to each series of junior subordinated debentures:
												
		•	default for 30 days in the payment of any installment of interest payable on the junior subordinated debentures when due and payable (except for the deferral of interest payments as discussed above in “Deferral of Payment Periods”);
			
		•	default in the payment of the principal of the junior subordinated debentures when due and payable; or
			
		•	certain events of bankruptcy, insolvency or similar reorganization, receivership or liquidation of DTE Energy.

With respect to the junior subordinated debentures, a failure to comply with covenants under the indenture does not constitute an event of default.
If an event of default with respect to the junior subordinated debentures of any series occurs and is continuing, either the trustee or the holders of at least 25% in aggregate principal amount of the outstanding junior subordinated debentures of that series may declare the principal amount of the junior subordinated debentures of that series to be due and payable immediately. At any time after a declaration of acceleration has been made, but before a judgment or decree for payment of money has been obtained by the trustee, and subject to applicable law and certain other 
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provisions of the indenture, the holders of a majority in aggregate principal amount of the junior subordinated debentures of that series may, under certain circumstances, rescind and annul the acceleration. If an event of default occurs pertaining to certain events of bankruptcy, insolvency or reorganization specified in the indenture as described in the third bullet point above, the principal amount and accrued and unpaid interest and any additional amounts payable in respect of the junior subordinated debentures of that series, or a lesser amount as provided for in the junior subordinated debentures of that series, will be immediately due and payable without any declaration or other act by the trustee or any holder.
The indenture provides that within 90 days after the occurrence of any default under the indenture with respect to the junior subordinated debentures of any series, the trustee must transmit to the holders of the junior subordinated debentures of such series, in the manner set forth in the indenture, notice of the default known to the trustee, unless the default has been cured or waived. However, except in the case of a default in the payment of the principal of (or premium, if any) or interest or any additional amounts or in the payment of any sinking fund installment with respect to, any debt security of such series, the trustee may withhold such notice if and so long as the board of directors, the executive committee or a trust committee of directors or responsible officers of the trustee has in good faith determined that the withholding of such notice is in the interest of the holders of junior subordinated debentures of such series.
If an event of default occurs and is continuing with respect to the junior subordinated debentures of any series, the trustee may in its discretion proceed to protect and enforce its rights and the rights of the holders of junior subordinated debentures of such series by all appropriate judicial proceedings.
The indenture further provides that, subject to the duty of the trustee during any default to act with the required standard of care, the trustee will be under no obligation to exercise any of its rights or powers under the indenture at the request or direction of any of the holders of junior subordinated debentures, unless that requesting holder has offered to the trustee reasonable indemnity. Subject to such provisions for the indemnification of the trustee, and subject to applicable law and certain other provisions of the indenture, the holders of a majority in aggregate principal amount of the outstanding junior subordinated debentures of a series will have the right to direct the time, method and place of conducting any proceeding for any remedy available to the trustee, or exercising any trust or power conferred on the trustee, with respect to the junior subordinated debentures of such series.
The indenture provides that no holder of any junior subordinated debentures of a series will have any right to institute any proceeding with respect to the indenture for the appointment of a receiver or for any other remedy thereunder unless:
												
		•	that holder has previously given the trustee written notice of a continuing event of default;
			
		•	the holders of 25% in aggregate principal amount of the outstanding junior subordinated debentures of that series have made written request to the trustee to institute proceedings in respect of that event of default and have offered the trustee reasonable indemnity against costs and liabilities incurred in complying with such request; and

			
		•	for 60 days after receipt of such notice, the trustee has failed to institute any such proceeding and no direction inconsistent with such request has been given to the trustee during such 60-day period by the holders of a majority in aggregate principal amount of outstanding junior subordinated debentures of that series.

Furthermore, no holder will be entitled to institute any such action if and to the extent that such action would disturb or prejudice the rights of other holders.
However, each holder has an absolute and unconditional right to receive payment when due and to bring a suit to enforce that right.
Under the indenture, we are required to furnish to the trustee annually a statement as to our performance of certain of our obligations under the indenture and as to any default in such performance. We are also required to deliver to the trustee, within five days after occurrence thereof, written notice of any event that after notice or lapse of time or both would constitute an event of default.
Modification and Waiver
DTE Energy and the trustee may generally modify certain provisions of the indenture with the consent of the holders of not less than a majority in aggregate principal amount of the junior subordinated debentures of each series 
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affected by the modification, except that no such modification or amendment may, without the consent of the holder of each debt security affected thereby:
												
		•	change the stated maturity of the principal of, or any installment of principal of, or any premium or interest on, or any additional amounts with respect to, any junior subordinated debenture issued under the indenture;
			
		•	reduce the principal amount of, or premium or interest on, or any additional amounts with respect to, any junior subordinated debenture issued under the indenture;
			
		•	change the place of payment or the coin or currency in which any junior subordinated debenture issued under that indenture or any premium or any interest on that junior subordinated debenture or any additional amounts with respect to that debt security is payable;
			
		•	reduce the percentage in principal amount of the outstanding junior subordinated debentures, the consent of whose holders is required under the indenture in order to take certain actions;
			
		•	change any of our obligations to maintain an office or agency in the places and for the purposes required by the indenture;
			
		•	modify any conversion or exchange provision in a manner adverse to holders of that debt security;
			
		•	 modify any of the subordination provisions in a manner adverse to holders of that debt security
			
		•	impair the right to institute suit for the enforcement of any payment on or after the stated maturity of any junior subordinated debentures issued under that indenture or, in the case of redemption, exchange or conversion, if applicable, on or after the redemption, exchange or conversion date or, in the case of repayment at the option of any holder, if applicable, on or after the date for repayment; or
			
		•	modify any of the above provisions or certain provisions regarding the waiver of past defaults or the waiver of certain covenants, with limited exceptions.

In addition, we and the trustee may, without the consent of any holders, modify provisions of the indenture for certain purposes, including, among other things:
															
		•	evidencing the succession of another person to DTE Energy and the assumption by any such successor of the covenants of DTE Energy in the indenture and in the debt securities;	
				
		•	adding to the covenants of DTE Energy for the benefit of the holders of debt securities (and if such covenants are to be for the benefit of less than all series of debt securities, stating that such covenants are expressly being included solely for the benefit of such series) or surrendering any right or power herein conferred upon DTE Energy with respect to the debt securities;	
				
		•	adding any additional events of default with respect to the junior subordinated debentures (and, if such event of default is applicable to less than all series of junior subordinated debentures, specifying the series to which such event of default is applicable);	
				
		•	adding to or changing any provisions of the indenture to provide that bearer junior subordinated debentures may be registrable, changing or eliminating any restrictions on the payment of principal of (or premium, if any) or interest on or any additional amounts with respect to bearer junior subordinated debentures, permitting bearer junior subordinated debentures to be issued in exchange for registered junior subordinated debentures, permitting bearer junior subordinated debentures to be issued in exchange for bearer junior subordinated debenture of other authorized denominations or facilitating the issuance of junior subordinated debenture in uncertificated form provided that any such action shall not adversely affect the interests of the holders of the junior subordinated debentures in any material respect;	
				
		•	establishing the form or terms of junior subordinated debentures of any series;	
				
		•	evidencing and providing for the acceptance of appointment of a successor trustee and adding to or changing any of the provisions of the indenture to facilitate the administration of the trusts;	
				
		•	curing any ambiguity, correcting or supplementing any provision in the indenture that may be defective or inconsistent with any other provision therein, or making or amending any other provisions with respect to matters or questions arising under the indenture which shall not adversely affect the interests of the holders of junior subordinated debentures of any series in any material respect;	
				

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		•	modifying, eliminating or adding to the provisions of the indenture to maintain the qualification of the indenture under the Trust Indenture Act as the same may be amended from time to time;	
				
		•	adding to, deleting from or revising the conditions, limitations and restrictions on the authorized amount, terms or purposes of issue, authentication and delivery of junior subordinated debentures, as therein set forth;	
				
		•	modifying, eliminating or adding to the provisions of any security to allow for such security to be held in certificated form;	
				
		•	securing the debt securities;	
				
		•	making provisions with respect to conversion or exchange rights of holders of securities of any series;	
				
		•	amending or supplementing any provision contained therein or in any supplemental indenture, provided that no such amendment or supplement will adversely affect the interests of the holders of any junior subordinated debentures then outstanding in any material respect; or	
				
		•	modifying, deleting or adding to any of the provisions of the indenture other than as contemplated above.	

The holders of at least 662/3% in aggregate principal amount of junior subordinated debentures of any series issued under the indenture may, on behalf of the holders of all junior subordinated debentures of that series, waive our compliance with certain restrictive provisions of the indenture. The holders of not less than a majority in aggregate principal amount of junior subordinated debentures of any series issued under the indenture may, on behalf of all holders of junior subordinated debentures of that series, waive any past default and its consequences under the indenture with respect to the junior subordinated debentures of that series, except:
												
		•	payment default with respect to junior subordinated debentures of that series; or
			
		•	a default of a covenant or provision of the indenture that cannot be modified or amended without the consent of the holder of each junior subordinated debenture of that series.

Governing Law
The indenture is, and the junior subordinated debentures will be, governed by, and construed in accordance with, the laws of the State of New York.
Concerning the Trustee
The Bank of New York Mellon Trust Company, N.A. is the successor trustee under the indenture. Affiliates of The Bank of New York Mellon Trust Company, N.A. also act as a lender and provide other banking, trust and investment services in the ordinary course of business to DTE Energy and its affiliates.
Book-Entry Securities
The junior subordinated debentures trade through The Depository Trust Company (“DTC”). Each series of  junior subordinated debentures is represented by one or more global certificates and is be registered in the name of Cede & Co., as DTC’s nominee. DTC may discontinue providing its services as securities depositary with respect to the junior subordinated debentures at any time by giving reasonable notice to us. Under those circumstances, in the event that a successor securities depositary is not obtained, securities certificates will be printed and delivered to the holders of record. Additionally, we may decide to discontinue use of the system of book entry transfers through DTC (or a successor depositary) with respect to the junior subordinated debentures. Upon receipt of a withdrawal request from us, DTC will notify its participants of the receipt of a withdrawal request from us reminding participants that they may utilize DTC’s withdrawal procedures if they wish to withdraw their securities from DTC, and DTC will process withdrawal requests submitted by participants in the ordinary course of business. To the extent that the book-entry system is discontinued, certificates for the junior subordinated debentures will be printed and delivered to the holders of record. Both we and the trustee have no responsibility for the performance by DTC or its direct and indirect participants of their respective obligations as described herein or under the rules and procedures governing their respective operations. Payments of principal and interest will be made to DTC in immediately available funds.

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