PATENT SECURITY AGREEMENT
Exhibit
10.14
[*] THE
CONFIDENTIAL PORTION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT AND THE OMITTED MATERIAL HAS BEEN FILED
SEPARATELY WITH THE COMMISSION.
EXECUTION VERSION
PATENT SECURITY AGREEMENT (this “Agreement”), dated as of December 24, 2009,
among Altra Industrial Motion, Inc., a Delaware corporation (the “Company”), the
Subsidiaries and Affiliates of the Company named on the signature pages hereto (each, a
“Grantor” and collectively, the “Grantors”), and The Bank of New York Mellon Trust
Company, N.A., acting in the capacity as Collateral Agent for the benefit of itself and the Holders
under the Indenture referred to below (in such capacity, the “Collateral Agent”).
WITNESSETH:
WHEREAS, pursuant to the terms of that certain Indenture, dated as of November 25,
2009 (as it may be amended, restated, supplemented or otherwise modified from time to time, the
“Indenture”), by and among Altra Holdings, Inc. (“Holdings”), the guarantors party
thereto and the Collateral Agent, the Holders will purchase the Notes issued by Holdings;
WHEREAS, pursuant to the Pledge and Security Agreement, dated as of November 25, 2009
(as it may be amended, restated, supplemented or otherwise modified from time to time, the
“Security Agreement”), among the Grantors and the Collateral Agent, the Grantors granted to
the Collateral Agent a security interest and continuing lien on all of each Grantors’ right, title
and interest in, to and under all Collateral, including the Patent Collateral (as defined below),
and all Collateral in each case whether now owned or existing or hereafter acquired or arising to
secure the prompt and complete payment and performance of all Secured Obligations (as defined in
the Security Agreement) including the obligations of the Grantors under the Indenture;
WHEREAS, the parties to the Indenture contemplate and intend that, if an Event of Default (as
defined in the Indenture) shall occur and be continuing, the Collateral Agent shall have all rights
of a secured party in and to the Patent Collateral and any proceeds thereof, including, without
limitation, the right to exercise its remedies under the Indenture in connection with all of each
Grantor’s right, title and interest in the Patent Collateral; and
WHEREAS, pursuant to the Indenture and the Security Agreement, the Grantors are
required to execute and deliver this Agreement.
NOW, THEREFORE, in consideration of the premises and the agreements, provisions and
covenants herein contained, the Grantors agree as follows:
Section 1. Defined Terms
Unless otherwise defined herein, terms defined in the Security Agreement and used herein have
the meaning given to them in the Security Agreement.
Section 2. Grant of Security Interest in Patents
The Grantors hereby grant to the Collateral Agent a security interest in all of their right,
title and interest in, to and under the Patents, including the Patents listed in Schedule
A, in each case whether now owned or hereafter acquired (collectively, the “Patent
Collateral”).
Section 3. Security for Obligations
This Agreement secures, and the Patent Collateral is collateral security for, the prompt and
complete payment or performance in full when due, whether at stated maturity, by required
prepayment, declaration, acceleration, demand or otherwise of all Secured Obligations.
Section 4. Security Agreement
The security interests granted pursuant to this Agreement are granted in conjunction with the
security interests granted to the Collateral Agent pursuant to the Security Agreement, and the
Grantors hereby acknowledge and affirm that the rights and remedies of the Collateral Agent with
respect to the security interest in the Patent Collateral made and granted hereby are more fully
set forth in the Security Agreement, the terms and provisions of which are incorporated by
reference herein as if fully set forth herein. In the event of any irreconcilable conflict between
the terms of this Agreement and the terms of the Security Agreement, the terms of the Security
Agreement shall control.
Section 5. Recordation
The Grantors hereby authorize and request that the Commissioner of Patent and Trademarks and
any other applicable United States government officer record this Agreement.
Section 6. Subordination
The lien and security interest evidenced by this Agreement and the exercise of any right or
remedy by the Collateral Agent in respect thereof is junior and subordinate to the interest of
JPMorgan Chase Bank, N.A., individually and as Senior Agent and is subject to the provisions of
that certain Intercreditor and Lien Subordination Agreement, dated as of November 25, 2009, as
amended, supplemented, modified or replaced from time to time in accordance with the terms thereof
among JPMorgan Chase Bank, N.A., as Senior Agent, The Bank of New York Mellon Trust Company, N.A.,
as Trustee and Collateral Agent, and Altra Holdings, Inc., Altra Industrial Motion, Inc. and
certain of their subsidiaries.
Section 7. Miscellaneous
This Agreement shall be governed by, and construed in accordance with the laws of the State of
New York.
This Agreement may be executed in counterparts (and by different parties hereto on different
counterparts), each of which shall constitute an original, but all of which when taken together
shall constitute a single agreement.
[Remainder of this page intentionally left blank]
IN WITNESS WHEREOF, the Grantors have caused this Agreement to be duly executed and
delivered by a duly authorized officer as of the date first set forth above.
| GRANTORS: | ||||
| ALTRA INDUSTRIAL MOTION, INC. | ||||
| ALTRA HOLDINGS, INC. | ||||
| By | /s/ Xxxxx X. Xxxxxx | |||
| Name: | Xxxxx X. Xxxxxx | |||
| Title: Vice President, Legal and Human Resources, General Counsel and Secretary |
||||
| AMERICAN ENTERPRISES MPT CORP. | ||||
| XXXXXXX GEAR LLC | ||||
| AMERICAN ENTERPRISES MPT HOLDINGS, LLC | ||||
| AMERIDRIVES INTERNATIONAL, LLC | ||||
| FORMSPRAG LLC | ||||
| WARNER ELECTRIC LLC | ||||
| WARNER ELECTRIC TECHNOLOGY LLC | ||||
| BOSTON GEAR LLC | ||||
| XXXXXX MANUFACTURING CORPORATION | ||||
| WARNER ELECTRIC INTERNATIONAL HOLDING, INC. | ||||
| XX XXXX’X CORPORATION | ||||
| XX XXXX’X INCORPORATED | ||||
| XX XXXX’X ENTERPRISES, INC. | ||||
| INERTIA DYNAMICS, LLC | ||||
| By | /s/ Xxxxx X. Xxxxxx | |||
| Name: | Xxxxx X. Xxxxxx | |||
| Title: | Secretary | |||
| COLLATERAL AGENT: THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Collateral Agent |
||||
| By: | /s/ Xxxxxxx Xxxxxx | |||
| Name: | Xxxxxxx Xxxxxx | |||
| Title: | Senior Associate | |||
| Issuing | Registration | Registration / | Application | |||||||||||||||||
| IP Type | Jurisdiction | Owner Entity | Title / Description | Number | Issue Date | Number | Filing Date | Status | ||||||||||||
Patent
|
USA | Inertia Dynamics, LLC | Electromagnetic disc brake with rubber friction disk braking surface | 6161659 | 12/19/2000 | 167006 | 09/29/1998 | Active | ||||||||||||
Patent
|
USA | Inertia Dynamics, LLC | Sealed electromagnetic brake | 6125975 | 10/3/2000 | 193388 | 11/17/1998 | Active | ||||||||||||
Patent
|
USA | Inertia Dynamics, LLC | Manual release machanism for a brake | 6675940 | 01/13/2004 | 253125 | 09/24/2002 | Active | ||||||||||||
Patent
|
USA | Warner Electric Technology LLC | FLUID OPERATED BRAKE DEVICE (MISTRAL BRAKE) | 5,908,092 | 6/1/1999 | 256949 | 7/27/1994 | Active | ||||||||||||
Patent
|
USA | Inertia Dynamics, LLC | Clutch system and method | 6488133 | 12/3/2002 | 528690 | 03/20/2000 | Active | ||||||||||||
Patent
|
USA | Inertia Dynamics, LLC | Elevator brake assembly | 6675939 | 01/13/2004 | 773722 | 01/31/2001 | Active | ||||||||||||
Patent
|
USA | Warner Electric Technology LLC | ARMATURE ASSEMBLY FOR AN ELECTROMAGNETIC COUPLING | 5,150,779 | 9/29/1992 | 820344 | 1/14/1992 | Active | ||||||||||||
Patent
|
USA | Inertia Dynamics, LLC | Device for clamping a shaft | 6527233 | 03/04/2003 | 841507 | 04/24/2001 | Active | ||||||||||||
Patent
|
USA | Inertia Dynamics, LLC | Power-off brake with manual release | 5915507 | 06/29/1999 | 932904 | 09/17/1997 | Active | ||||||||||||
Patent
|
USA | Inertia Dynamics, LLC | Electric clutch and brake | 6047805 | 04/11/2000 | 937816 | 09/29/1997 | Active | ||||||||||||
Patent
|
USA | Inertia Dynamics, LLC | Electro-mechanical variable speed clutch | 5979630 | 11/9/1999 | 938862 | 09/26/1997 | Active | ||||||||||||
Patent
|
USA | Warner Electric Technology LLC | DUAL START DRIVE SYSTEM | 4,621,720 | 11/11/1986 | 06/813,538 | 12/26/1985 | Active | ||||||||||||
Patent
|
USA | Warner Electric Technology LLC | IMPROVED BI-DIRECTIONAL BACK STOPPING CLUTCH | 5,007,511 | 4/15/1991 | 07/430,811 | 11/2/1989 | Active | ||||||||||||
Patent
|
USA | Warner Electric Technology LLC | ELECTROMAGNETIC FRICTION BRAKEWITH IMPROVED MOUNTING PINS | 4,974,705 | 12/4/1990 | 07/451,609 | 12/18/1989 | Active | ||||||||||||
Patent
|
USA | Warner Electric Technology LLC | UNIDAMP ARMATURE | 5,036,964 | 8/6/1991 | 07/500,466 | 3/28/1990 | Active | ||||||||||||
Patent
|
USA | Warner Electric Technology LLC | ELECTROMAGNETIC COUPLING DISCS AND METHOD OF MAKING THE SAME. | 5,096,036 | 3/17/1992 | 07/531,465 | 5/31/1990 | Active | ||||||||||||
Patent
|
USA | Warner Electric Technology LLC | CLUTCH/BRAKE UNIT | 5,033,595 | 7/23/1991 | 07/535,428 | 6/8/1990 | Active | ||||||||||||
Patent
|
USA | Warner Electric Technology LLC | APPARATUS FOR RESISTANCE BONDING ELECTROMAGNETIC COILS | 5,091,619 | 2/25/1992 | 07/543,706 | 6/26/1990 | Active | ||||||||||||
Patent
|
USA | Warner Electric Technology LLC | FIELD ASSEMBLY FOR AN ELECTROMAGNET | 5,250,921 | 10/5/1993 | 07/600,199 | 10/19/1990 | Active | ||||||||||||
Patent
|
USA | Warner Electric Technology LLC | ELECTROMAGNETIC SYNCHRONIZING AND SHIFTING CLUTCH — ESS | 5,052,534 | 10/1/1991 | 07/605,517 | 10/30/1990 | Active | ||||||||||||
Patent
|
USA | Warner Electric Technology LLC | LOW COST SPRAG RETAINER | 5,070,976 | 12/10/1991 | 07/634,903 | 12/27/1990 | Active | ||||||||||||
Patent
|
USA | Warner Electric Technology LLC | DIGITAL CONTROL SYSTEM FOR ELECTROMAGNETIC CLUTCH | 5,094,332 | 3/10/1992 | 07/664,075 | 12/31/1990 | Active | ||||||||||||
Patent
|
USA | Warner Electric Technology LLC | ELECTROMAGNETIC COUPLING ARMATURE ASSEMBLY WITH FLUX ISOLATOR SPRINGS |
5,119,915 | 6/9/1992 | 07/700,439 | 5/15/1991 | Active | ||||||||||||
Patent
|
USA | Warner Electric Technology LLC | METHOD OF MAKING AN ELECTROMAGNETIC COUPLING DISC | 5,125,255 | 6/30/1992 | 07/721,972 | 6/27/1991 | Active | ||||||||||||
Patent
|
USA | Warner Electric Technology LLC | ELECTROMAGNETIC CLUTCH WITH PERMANENT MAGNET BRAKE | 5,119,918 | 6/9/1992 | 07/774,92 | 10/11/1991 | Active | ||||||||||||
Patent
|
USA | Ameridrives International, LLC | Driveshaft with slip joint seal | 5,230,658 | 07/27/1993 | 07/864,307 | 04/06/1992 | Active | ||||||||||||
Patent
|
USA | XX Xxxxx Enterprises, Inc. | Shaft Mountable Bushing and Hub for Industrail xxxx transmission | 5304101 | 4/19/1994 | 07/919223 | 7/27/1992 | Active | ||||||||||||
Patent
|
USA | Warner Electric Technology LLC | SPLIT TUBE HAVING RETAINABLE ENDS | 5,280,829 | 1/25/1994 | 07/931,638 | 8/18/1992 | Active | ||||||||||||
Patent
|
USA | Warner Electric Technology LLC | SUPPORTING HUB FOR CLUTCH AND PUMP ASSEMBLY | 5,310,034 | 5/10/1994 | 07/973,291 | 11/9/1992 | Active | ||||||||||||
Patent
|
USA | Warner Electric Technology LLC | SPRAG RETAINER WITH ROTATIONAL RESTRAINT | 5,337,869 | 8/16/1994 | 07/991,021 | 12/15/1992 | Active | ||||||||||||
Patent
|
USA | Warner Electric Technology LLC | CLUTCH WITH SPACER FOR SUPPORTING A BEARING | 5,285,882 | 2/15/1994 | 07/996,122 | 12/23/1992 | Active | ||||||||||||
Patent
|
USA | Warner Electric Technology LLC | SOUND-DAMPING ARMATURE ASSEMBLY FOR AN ELECTROMAGNETIC COUPLING | 5,372,228 | 12/13/1994 | 08/026,499 | 3/4/1993 | Active | ||||||||||||
Patent
|
USA | Warner Electric Technology LLC | ROTOR FOR ELECTROMAGNETIC COUPLING | 5,305,865 | 4/26/1994 | 08/026,995 | 3/5/1993 | Active | ||||||||||||
Patent
|
USA | Warner Electric Technology LLC | HIGH STRENGTH ELECTROMAGNETIC COUPLING DISC | 5,445,259 | 8/29/1995 | 08/114,320 | 8/30/1993 | Active | ||||||||||||
Patent
|
USA | Warner Electric Technology LLC | UNIDRIVE ARMATURE HUB | 5,370,209 | 12/6/1994 | 08/119,729 | 9/10/1993 | Active | ||||||||||||
Patent
|
USA | XX Xxxxx Enterprises, Inc. | Combination of power steering pump and air conditioning compressor in an automotive vehicle | 5465804 | 11/14/1995 | 08/231802 | 4/25/1994 | Active | ||||||||||||
Patent
|
USA | Warner Electric Technology LLC | LOCATING RING FOR ENCAPULATING A COIL | 5,497,136 | 3/5/1996 | 08/238,619 | 5/4/1994 | Active | ||||||||||||
Patent
|
USA | Warner Electric Technology LLC | CLUTCH BRAKE ASSEMBLY | 5,549,186 | 8/27/1996 | 08/346,622 | 11/30/1994 | Active | ||||||||||||
Patent
|
USA | XX Xxxxx Enterprises, Inc. | Flexible Coupling with End Stress Relief Structure | 5611732 | 3/18/1997 | 08/512,137 | 8/7/1995 | Active | ||||||||||||
Patent
|
USA | Warner Electric Technology LLC | METHOD OF MANUFACTURING A COMPONENT FOR AN ELECTROMAGNETIC FRICTION CLUTCHASSEMBLY |
5,708,955 | 1/13/1998 | 08/558,906 | 11/16/1995 | Active | ||||||||||||
Patent
|
USA | Ameridrives International, LLC | Driveshaft with sealed slip joint seal | 5,655,968 | 08/12/1997 | 08/646,202 | 05/07/1996 | Active | ||||||||||||
Patent
|
USA | Warner Electric Technology LLC | FORMLOCK SHOES WITH FLATS | 5,865,284 | 2/2/1999 | 08/666,068 | 6/21/1996 | Active | ||||||||||||
Patent
|
USA | Warner Electric Technology LLC | METHOD OF MANUFACTURING A ROTOR FOR AN ELECTROMAGNETIC CLUTCH ASSEMBLY |
5,920,981 | 7/13/1999 | 08/823,990 | 3/25/1997 | Active | ||||||||||||
Patent
|
USA | Warner Electric Technology LLC | SPRAG FAMILY | 6,109,409 | 08/29/2000 | 08/949,741 | 10/14/1997 | Active | ||||||||||||
Patent
|
USA | Warner Electric Technology LLC | SOUND DAMPING ARMATURE ASSEMBLY FOR AN ELECTROMAGNETIC COUPLING | 6,194,803 | 2/27/2001 | 09/032,572 | 2/27/1998 | Active | ||||||||||||
| Issuing | Registration | Registration / | Application | |||||||||||||||||
| IP Type | Jurisdiction | Owner Entity | Title / Description | Number | Issue Date | Number | Filing Date | Status | ||||||||||||
Patent
|
USA | Warner Electric Technology LLC | MAG STOP CLUTCH WITH CENTER POLE | 5,971,121 | 10/26/1999 | 09/070,068 | 4/30/1998 | Active | ||||||||||||
Patent
|
USA | Warner Electric Technology LLC | ARMATURE FOR A SELECTIVELY ENGAGEABLE AND DISENGAGEABLE COUPLING | 6,364,084 | 4/2/2002 | 09/515779 | 2/29/2000 | Active | ||||||||||||
Patent
|
USA | Warner Electric Technology LLC | ANTI-SLIP INESERT FOR A BACKSTOPPING CLUTCH | 6,257,388 | 7/10/2001 | 09/556510 | 4/24/2000 | Active | ||||||||||||
Patent
|
USA | Warner Electric Technology LLC | METHOD FOR MAKING AN ARMATURTE ASSEMBLEY | 6,591,477 | 7/7/2003 | 09/684,117 | 10/06/2000 | Active | ||||||||||||
Patent
|
USA | Xxxx Corporation | ARMATURE FOR A SELECTIVELY ENGAGEABLE AND DISENGAGEABLE COUPLING | 6,557,236 | 05/06/2003 | 10/027,095 | 12/20/2001 | Active | ||||||||||||
Patent
|
USA | Warner Electric LLC | Electromechanical screw drive actuator | 6,927,513 | 8/9/2005 | 10/609,883 | 6/30/2003 | Active | ||||||||||||
Patent
|
USA | Warner Electric Technology LLC | IMPROVED DRIVE ASSEMBLY WITH LIGHTWEIGHT BACKSTOPPPING CLUTCH | 7,261,196 | 08/28/2007 | 11/064,611 | 02/24/05 | Active | ||||||||||||
Patent
|
USA | Inertia Dynamics, LLC | IP copies may be obtained separately | US20050236245 | 11/115,903 | Active | ||||||||||||||
Patent
|
USA | Warner Electric Technology LLC | Rotational Coupling Device | US20060278491 | 11/150670 | 6/10/2005 | Active | |||||||||||||
Patent
|
USA | Warner Electric Technology LLC | Rotational Coupling Device | 7,493,996 | 2/24/2009 | 11/150671 | 6/10/2005 | Active | ||||||||||||
Patent
|
USA | XX Xxxxx Enterprises, Inc. | Flexible Coupling Device | 7,390,265 | 6/24/2008 | 11/256,463 | 10/21/2005 | Active | ||||||||||||
Patent
|
USA | Warner Electric Technology LLC | BALANCED FLOW COOLING WATER JACKET | 7,374,027 | 5/20/2008 | 11/263,394 | 10/31/2005 | Active | ||||||||||||
Patent
|
USA | Warner Electric Technology LLC | Liquid Cooled Brake assembley | 7,591,349 | 9/22/2009 | 11/263,399 | 10/31/2005 | Active | ||||||||||||
Patent
|
USA | Warner Electric Technology LLC | Rotational Coupling Device | 7,527,134 | 5/5/2009 | 11/278,448 | 4/3/2006 | Active | ||||||||||||
Patent
|
USA | Warner Electric Technology LLC | Automatically released bi-directional overunning clutch | 7,389,863 | 6/24/2008 | 11/341,763 | 01/27/2006 | Active | ||||||||||||
Patent
|
USA | Warner Electric Technology LLC | AquaMaKKs Brake (Liquid Cooled Brake With Support Columns) | US20080185239 | 11/670,698 | 2/2/2007 | Active | |||||||||||||
Patent
|
USA | Warner Electric Technology LLC | Torque Arm Assembly for a Backstopping Clutch | US20080271970 | 11/743,894 | 5/3/2007 | Active | |||||||||||||
Patent
|
USA | Warner Electric Technology LLC | Overrunning Clutch | US20070267264 | 11/750,733 | 5/18/2007 | Active | |||||||||||||
Patent
|
USA | Warner Electric Technology LLC | Sparag Retainer for OVERRUNNING CLUTCH | US20090095591 | 11/871,542 | 10/12/2007 | Active | |||||||||||||
Patent
|
USA | Warner Electric Technology LLC | BALANCED FLOW COOLING WATER JACKET | US20080110708 | 12/016,504 | 1/18/2007 | Active | |||||||||||||
Patent
|
USA | Warner Electric Technology LLC | Rotational Coupling Device | US20090229941 | 12/048,638 | 3/14/2008 | Active | |||||||||||||
Patent
|
USA | Warner Electric Technology LLC | IP copies may be obtained separately | US20090133974 | 12/364,116 | Active | ||||||||||||||
Patent Appl.
|
USA | Warner Electric Technology LLC | DUAL ACTUATOR FRICTION BRAKE ASSEMBLY | 11/263,395 | 10/31/2005 | Pending | ||||||||||||||
Patent Appl.
|
USA | Warner Electric Technology LLC | “Dual Actuator Friction Brake Assembly” | 12/364,116 | 2/2/2009 | Pending | ||||||||||||||
Patent Appl.
|
USA | Warner Electric Technology LLC | Rotational Coupling Device | 11/150027 | 6/10/2005 | Pending | ||||||||||||||
Patent Appl.
|
USA | Inertia Dynamics, LLC [*] | [*] | [*] | [*] | [*] | ||||||||||||||
Patent Appl.
|
USA | Xxxxxx Manufacturing Corporation | Bearing assembly for a steering assembly | 11/773,715 | 7/5/2007 | Pending | ||||||||||||||
Patent Appl.
|
USA | Warner Electric Technology LLC | Rotational Coupling Device With Sealed Key | 12/124,699 | 5/21/2008 | Pending | ||||||||||||||
Patent Appl.
|
USA | Warner Electric Technology LLC | “Safety Control for Release of Backstopping Clutch” | 12/175,995 | 07/18/2008 | Pending | ||||||||||||||
Patent Appl.
|
USA | Warner Electric Technology LLC | [*] | [*] | [*] | [*] | ||||||||||||||
Patent Appl.
|
USA | Warner Electric Technology LLC | [*] | [*] | [*] | [*] | ||||||||||||||
Patent Appl.
|
USA | Inertia Dynamics, LLC (Pending assignment recordation issue. Currently in the name of Reliance Electric, former parent.) | Manual release brake | 60/324,812 | 09/24/2001 | Pending | ||||||||||||||
Patent Appl.
|
USA | Inertia Dynamics, LLC (Pending assignment recordation issue. Currently in the name of Reliance Electric, former parent.) | Clutch with wear ring assembly | 60/5658 | 60 04/27/2004 | Pending | ||||||||||||||
Patent Appl.
|
USA | Inertia Dynamics, LLC [*] | [*] | [*] | [*] | [*] | ||||||||||||||
