EXCHANGE AGENT AGREEMENT
Exhibit 99.3
___________, 2007
The Bank of New York
000 Xxxxx Xxxxxx Xxxxxx, Xxxxx 000
Xxx Xxxxxxx, Xxxxxxxxxx 00000-0000
Attention: Corporate Trust Administration
000 Xxxxx Xxxxxx Xxxxxx, Xxxxx 000
Xxx Xxxxxxx, Xxxxxxxxxx 00000-0000
Attention: Corporate Trust Administration
Ladies and Gentlemen:
Altra
Industrial Motion, Inc., a Delaware corporation (the “Company”), American
Enterprises
MPT Corp., American Enterprises MPT Holdings, L.P., Ameridrives International, L.P., Boston Gear
LLC, Formsprag LLC, Inertia Dynamics, LLC, The Xxxxxx Company, Xxxxxx Manufacturing Corporation,
Xxxxxxx Gear L L C, Plant Engineering Consultants, LLC, XX Xxxx’x Corporation, XX Xxxx’x
Enterprises, XX Xxxx’x Incorporated, Warner Electric LLC, Warner Electric Technology LLC, and
Warner Electric International Holding, Inc. (collectively, the “Guarantors”)
propose to make an offer (the “Exchange Offer”) to exchange all of
the Company’s outstanding 9% Senior Secured Notes due 2011 (the “Original
Notes”) for an equal amount of 9%
Senior Secured Notes due 2011 that have been registered under the Securities Act of 1933, as
amended (the “Registered Notes”). The terms and conditions of the
Exchange Offer as currently
contemplated are set forth in a prospectus, dated
, 2007 (the “Prospectus”), proposed to
be distributed to all record holders of the Original Notes. The Original Notes and the Registered
Notes are collectively referred to herein as the “Securities”.
The
Company hereby appoints The Bank of New York to act as exchange agent (the “Exchange
Agent”) in connection with the Exchange Offer. References hereinafter to “you” shall refer to The
Bank of New York.
The
Exchange Offer is expected to be commenced by the Company on or about
, 2007.
The Letter of Transmittal accompanying the Prospectus (or in the case of book-entry securities,
the Automated Tender Offer Program (“ATOP”) of the Book-Entry Transfer Facility (as defined below))
is to be used by the holders of the Original Notes to accept the Exchange Offer and contains
instructions with respect to the delivery of certificates for Original Notes tendered in connection
therewith.
The
Exchange Offer shall expire at 5:00 p.m., New York City time, on
, 2007 or on
such subsequent date or time to which the Company may extend the Exchange Offer (the “Expiration
Date”). Subject to the terms and conditions set forth in the Prospectus, the Company expressly
reserves the right to extend the
Exchange Offer from time to time and may extend the Exchange Offer
by giving oral (promptly confirmed in writing) or written notice to you before 9:00 a.m., New York
City time, on the business day following the previously scheduled Expiration Date.
The Company expressly reserves the right to amend or terminate the Exchange Offer, and not to
accept for exchange any Original Notes not theretofore accepted for exchange, upon the occurrence
of any of the conditions of the Exchange Offer specified in the Prospectus under the caption “The
Exchange Offer — Conditions.” The Company will give oral (promptly confirmed in writing) or
written notice of any amendment, termination or non-acceptance to you as promptly as practicable.
In carrying out your duties as Exchange Agent, you are to act in accordance with the following
instructions:
1. You will perform such duties and only such duties as are specifically set forth in the
section of the Prospectus captioned “The Exchange Offer” or as specifically set forth herein;
provided, however, that in no way will your general duty to act in good faith be
discharged by the foregoing.
2. You will establish a book-entry account with respect to the Original Notes at The
Depository Trust Company (the “Book-Entry Transfer Facility”) for purposes of the Exchange Offer
within two business days after the date of the Prospectus, and any financial institution that is a
participant in the Book-Entry Transfer Facility’s systems may make book-entry delivery of the
Original Notes by causing the Book-Entry Transfer Facility to transfer such Original Notes into
your account in accordance with the Book-Entry Transfer Facility’s procedure for such transfer.
3. You are to examine each of the Letters of Transmittal and certificates for Original Notes
(or confirmation of book-entry transfer into your account at the Book-Entry Transfer Facility) and
any other documents delivered or mailed to you by or for holders of the Original Notes to ascertain
whether: (i) the Letters of Transmittal and any such other documents are duly executed and properly
completed in accordance with instructions set forth therein; and (ii) the Original Notes have
otherwise been properly tendered. In each case where the Letter of Transmittal or any other
document has been improperly completed or executed or any of the certificates for Original Notes
are not in proper form for transfer or some other irregularity in connection with the acceptance of
the Exchange Offer exists, you will endeavor to inform the presenters of the need for fulfillment
of all requirements and to take any other action as may be reasonably necessary or advisable to
cause such irregularity to be corrected.
4. With the approval of the Chairman of the Board, Chief Executive Officer, President or Chief
Financial Officer of the Company (such approval, if given orally, to be promptly confirmed in
writing) or any other party designated in writing, by such an officer, you are authorized to waive
any irregularities in connection with any tender of Original Notes pursuant to the Exchange Offer.
2
5. Tenders of Original Notes may be made only as set forth in the Letter of Transmittal and in
the section of the Prospectus captioned “The Exchange Offer — Procedures for Tendering”, and
Original Notes shall be considered properly tendered to you only when tendered in accordance with
the procedures set forth therein.
Notwithstanding the provisions of this Section 5, Original Notes which the Chairman of the
Board, Chief Executive Officer, President or Chief Financial Officer of the Company shall approve
as having been properly tendered shall be considered to be properly tendered (such approval, if
given orally, shall be promptly confirmed in writing).
6. You shall advise the Company with respect to any Original Notes received subsequent to the
Expiration Date and accept the Company’s instructions with respect to disposition of such Original
Notes.
7. You shall accept tenders:
(a) in cases where the Original Notes are registered in two or more names only if signed by
all named holders;
(b) in cases where the signing person (as indicated on the Letter of Transmittal) is acting in
a fiduciary or a representative capacity only when proper evidence of his or her authority so to
act is submitted; and
(c) from persons other than the registered holder of Original Notes, provided that customary
transfer requirements, including payment of any applicable transfer taxes, are fulfilled.
You shall accept partial tenders of Original Notes where so indicated and as permitted in the
Letter of Transmittal and deliver certificates for Original Notes to the registrar for split-up and
return any untendered Original Notes to the holder (or such other person as may be designated in
the Letter of Transmittal) as promptly as practicable after expiration or termination of the
Exchange Offer.
8. Upon satisfaction or waiver of all of the conditions to the Exchange Offer, the Company
will notify you (such notice, if given orally, to be promptly confirmed in writing) of its
acceptance, promptly after the Expiration Date, of all Original Notes properly tendered and you, on
behalf of the Company, will exchange such Original Notes for Registered Notes and cause such
Original Notes to be cancelled. Delivery of Registered Notes will be made on behalf of the Company by you at the rate of
$1,000 principal amount of Registered Notes for each $1,000 principal amount of the corresponding
series of Original Notes tendered promptly after notice (such notice if given orally, to be
promptly confirmed in writing) of acceptance of said Original Notes by the Company; provided,
however, that in all cases, Original Notes tendered pursuant to the Exchange Offer will be
exchanged only after timely receipt by you of certificates
3
for such Original Notes (or confirmation of book-entry transfer into your account at the Book-Entry Transfer Facility),
a properly completed and duly executed Letter of Transmittal (or manually signed facsimile thereof) with any required
signature guarantees and any other required documents. You shall issue Registered Notes only in
denominations of $1,000 or any integral multiple thereof.
9. Tenders pursuant to the Exchange Offer are irrevocable, except that, subject to the terms
and upon the conditions set forth in the Prospectus and the Letter of Transmittal, Original Notes
tendered pursuant to the Exchange Offer may be withdrawn at any time prior to the Expiration Date.
10. The Company shall not be required to exchange any Original Notes tendered if any of the
conditions set forth in the Exchange Offer are not met. Notice of any decision by the Company not
to exchange any Original Notes tendered shall be given (if given orally, to be promptly confirmed
in writing) by the Company to you.
11. If, pursuant to the Exchange Offer, the Company does not accept for exchange all or part
of the Original Notes tendered because of an invalid tender, the occurrence of certain other events
set forth in the Prospectus under the caption “The Exchange Offer — Conditions” or otherwise, you
shall as soon as practicable after the expiration or termination of the Exchange Offer return those
certificates for unaccepted Original Notes (or effect appropriate book-entry transfer), together
with any related required documents and the Letters of Transmittal relating thereto that are in
your possession, to the persons who deposited them.
12. All certificates for reissued Original Notes, unaccepted Original Notes or for Registered
Notes shall be forwarded by first-class mail.
13. You are not authorized to pay or offer to pay any concessions, commissions or solicitation
fees to any broker, dealer, bank or other persons or to engage or utilize any person to solicit
tenders.
14. As Exchange Agent hereunder you:
(a) shall not be liable for any action or omission to act unless the same constitutes your own
gross negligence, willful misconduct or bad faith, and in no event shall you be liable to a
securityholder, the Company or any third party for special, indirect or consequential damages or lost profits,
arising in connection with this Agreement;
(b) shall have no duties or obligations other than those specifically set forth herein or as
may be subsequently agreed to in writing between you and the Company;
4
(c) will be regarded as making no representations and having no responsibilities as to the
validity, sufficiency, value or genuineness of any of the certificates or the Original Notes
represented thereby deposited with you pursuant to the Exchange Offer, and will not be required to
and will make no representation as to the validity, value or genuineness of the Exchange Offer;
(d) shall not be obligated to take any legal action hereunder which might in your judgment
involve any expense or liability, unless you shall have been furnished with indemnity satisfactory
to you;
(e) may conclusively rely on and shall be protected in acting in reliance upon any
certificate, instrument, opinion, notice, letter, telegram or other document or security delivered
to you and believed by you to be genuine and to have been signed or presented by the proper person
or persons;
(f) may act upon any tender, statement, request, document, agreement, certificate or other
instrument whatsoever not only as to its due execution and validity and effectiveness of its
provisions, but also as to the truth and accuracy of any information contained therein, which you
shall in good faith believe to be genuine or to have been signed or presented by the proper person
or persons;
(g) may conclusively rely on and shall be protected in acting upon written or oral
instructions from any authorized officer of the Company;
(h) may consult with counsel of your selection with respect to any questions relating to your
duties and responsibilities and the advice or opinion of such counsel shall be full and complete
authorization and protection in respect of any action taken, suffered or omitted to be taken by you
hereunder in good faith and in accordance with the advice or opinion of such counsel;
(i) shall in no event be responsible or liable for any failure or delay in the performance of
your obligations under this Agreement arising out of or caused by, directly or indirectly, forces
beyond your reasonable control, including without limitation strikes, work stoppages, accidents,
acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts
of God, and interruptions, loss or malfunctions of utilities, communications or computer (software
or hardware) services; and
(j) shall not advise any person tendering Original Notes pursuant to the Exchange Offer as to
the wisdom of making such tender or as to the market value or decline or appreciation in market
value of any Original Notes.
15. You shall take such action as may from time to time be requested by the Company (and such
other action as you may deem appropriate) to furnish copies of the Prospectus, Letter of
Transmittal and the Notice of Guaranteed Delivery (as
5
defined in the Prospectus) or such other
forms as may be approved from time to time by the Company, to all persons requesting such documents
and to accept and comply with telephone requests for information relating to the Exchange Offer,
provided that such information shall relate only to the procedures for accepting (or withdrawing
from) the Exchange Offer. The Company will furnish you with copies of such documents on your
request. All other requests for information relating to the Exchange Offer shall be directed to
the Company, Attention: Xxxxx Xxxx.
16. You shall advise by facsimile transmission Xxxxx Xxxx, the Chief Financial Officer of the
Company (at the facsimile number (000) 000-0000), and such other person or persons as the Company
may request, daily (and more frequently during the week immediately preceding the Expiration Date
if requested) up to and including the Expiration Date, as to the number of Original Notes which
have been tendered pursuant to the Exchange Offer and the items received by you pursuant to this
Agreement, separately reporting and giving cumulative totals as to items properly received and
items improperly received. In addition, you will also inform, and cooperate in making available
to, the Company or any such other person or persons upon oral request made from time to time prior
to the Expiration Date of such other information as they may reasonably request. Such cooperation
shall include, without limitation, the granting by you to the Company and such person as the
Company may request of access to those persons on your staff who are responsible for receiving
tenders, in order to ensure that immediately prior to the Expiration Date the Company shall have
received information in sufficient detail to enable it to decide whether to extend the Exchange
Offer. You shall prepare a final list of all persons whose tenders were accepted, the aggregate
principal amount of Original Notes tendered, the aggregate principal amount of Original Notes
accepted and deliver said list to the Company.
17. Letters of Transmittal and Notices of Guaranteed Delivery shall be stamped by you as to
the date and, after the expiration of the Exchange Offer, the time, of receipt thereof and shall be
preserved by you for a period of time at least equal to the period of time you preserve other
records pertaining to the transfer of securities. You shall dispose of unused Letters of
Transmittal and other surplus materials by returning them to the Company.
18. You hereby expressly waive any lien, encumbrance or right of setoff whatsoever that you
may have with respect to funds deposited with you for the payment of transfer taxes by reasons of
amounts, if any, borrowed by the Company, or any of their subsidiaries or affiliates pursuant to any
loan or credit agreement with you or for compensation owed to you hereunder.
19. For services rendered as Exchange Agent hereunder, you shall be entitled to such
compensation as shall be agreed in writing between the Company and you. The provisions of this
section shall survive the termination of this Agreement.
6
20. You hereby acknowledge receipt of the Prospectus and the Letter of Transmittal. Any
inconsistency between this Agreement, on the one hand, and the Prospectus and the Letter of
Transmittal (as they may be amended from time to time), on the other hand, shall be resolved in
favor of the latter two documents, except with respect to your duties, liabilities and
indemnification as Exchange Agent.
21. The Company covenants and agrees to fully indemnify and hold you harmless against any and
all loss, liability, and cost or expense, including reasonable attorneys’ fees and expenses,
incurred without gross negligence or willful misconduct on your part, arising out of or in
connection with any act, omission, delay or refusal made by you in reliance upon any signature,
endorsement, assignment, certificate, order, request, notice, instruction or other instrument or
document believed by you to be valid, genuine and sufficient and in accepting any tender or
effecting any transfer of Original Notes believed by you in good faith to be authorized, and in
delaying or refusing in good faith to accept any tenders or effect any transfer of Original Notes.
In each case, the Company shall be notified by you, by letter or facsimile transmission, of the
written assertion of a claim against you or of any other action commenced against you, promptly
after you shall have received any such written assertion or shall have been served with a summons
in connection therewith. The Company shall be entitled to participate at its own expense in the
defense of any such claim or other action and, if the Company so elects, the Company shall assume
the defense of any suit brought to enforce any such claim. In the event that the Company shall
assume the defense of any such suit, the Company shall not be liable for the fees and expenses of
any additional counsel thereafter retained by you, so long as the Company shall retain counsel
satisfactory to you to defend such suit, and so long as you have not determined, in your reasonable
judgment, that a conflict of interest exists between you and the Company. The provisions of this
section shall survive the termination of this Agreement.
22. You shall arrange to comply with all requirements under the tax laws of the United States,
including those relating to missing Tax Identification Numbers, and shall file any appropriate
reports with the Internal Revenue Service.
23. You shall deliver or cause to be delivered, in a timely manner to each governmental
authority to which any transfer taxes are payable in respect of the exchange of Original Notes, the
Company’s check in the amount of all transfer taxes so payable; provided, however, that you shall
reimburse the Company for amounts refunded to you in respect of your payment of any such transfer
taxes, at such time as such refund is received by you.
24. This Agreement and your appointment as Exchange Agent hereunder shall be construed and
enforced in accordance with the laws of the State of New York applicable to agreements made and to
be performed entirely within such state, and without regard to conflicts of law principles, and
shall inure to the benefit of, and the
7
obligations created hereby shall be binding upon, the successors and assigns of each of the parties hereto.
25. This Agreement may be executed in two or more counterparts, each of which shall be deemed
to be an original and all of which together shall constitute one and the same agreement.
26. In case any provision of this Agreement shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.
27. This Agreement shall not be deemed or construed to be modified, amended, rescinded,
cancelled or waived, in whole or in part, except by a written instrument signed by a duly
authorized representative of the party to be charged. This Agreement may not be modified orally.
28. Unless otherwise provided herein, all notices, requests and other communications to any
party hereunder shall be in writing (including facsimile or similar writing) and shall be given to
such party, addressed to it, at its address or telecopy number set forth below:
If to the Company:
Altra Industrial Motion, Inc.
00 Xxxxxxx Xxxxxx
Xxxxxx, Xxxxxxxxxxxxx 00000
00 Xxxxxxx Xxxxxx
Xxxxxx, Xxxxxxxxxxxxx 00000
Facsimile: (000) 000-0000
Attention: Xxxxx Xxxx
Attention: Xxxxx Xxxx
with a copy to:
Weil, Gotshal & Xxxxxx LLP
000 Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
000 Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Facsimile: (000) 000-0000
Attention: Xxxxxxx Xxxxx, Esq.
Attention: Xxxxxxx Xxxxx, Esq.
If to the Exchange Agent:
8
Facsimile: (000) 000-0000
Attention: Corporate Trust Administration
Attention: Corporate Trust Administration
29. Unless terminated earlier by the parties hereto, this Agreement shall terminate 90 days
following the Expiration Date. Notwithstanding the foregoing, Sections 18 and 20 shall survive the
termination of this Agreement. Upon any termination of this Agreement, you shall promptly deliver
to the Company any certificates for Securities, funds or property then held by you as Exchange
Agent under this Agreement.
30. This Agreement shall be binding and effective as of the date hereof.
9
Please acknowledge receipt of this Agreement and confirm the arrangements herein provided by
signing and returning the enclosed copy.
| ALTRA INDUSTRIAL MOTION, INC. |
||||
| By: | ||||
| Name: | Xxxxx Xxxx | |||
| Title: | Chief Financial Officer | |||
Accepted as of the date
first above written:
first above written:
| THE BANK OF NEW YORK, as Exchange Agent |
||||
| By: | ||||
| Name: | ||||
| Title: | ||||
10
