Document:

exv10w5

 

Exhibit 10.5

February 16, 2007

PERSONAL AND CONFIDENTIAL

Mr. Joseph C. Horvath

301 McCrossen Drive

Fayetteville, PA 17222

          Re: Transaction Bonus Plan

Dear Mr. Horvath:

          As you know, a decision has been made to explore a potential sale of TB Wood’s Corporation
(the “Company”). You are a valued executive officer of the Company and the Company’s Board of
Directors (the “Board”) wants you to remain with the Company and continue to provide leadership
until such a sale has been completed. More importantly, we believe that your active participation
in the sale process could have a substantial impact on the success of this transaction.

          This letter sets out all of the terms of an arrangement that the Board has established under
which you will be eligible to receive a transaction bonus upon the successful sale of the Company
pursuant to the Agreement and Plan of Merger (the “Merger Agreement”), dated February 16, 2007,
among the Company, Altra Holdings, Inc. and Forest Acquisition Corporation (the “Transaction Bonus
Plan”). The Transaction Bonus Plan will remain in effect (the “Incentive Period”) until the date
of the Closing of the merger pursuant to the Merger Agreement.

          The Transaction Bonus Plan is not an employment agreement. It does not change any of the terms
and conditions of your employment with the Company. You and the Company each retain the right to
terminate your employment with the Company at any time for any reason. If the Company is not sold
during the Incentive Period, the Transaction Bonus Plan will end and you will not be entitled to
any payment hereunder.

          For purposes of this letter, a “Sale” means the transaction contemplated by the Merger
Agreement.

Transaction Bonus Amount

          If you are an employee of the Company upon a closing of a Sale during the Incentive Period,
you will be entitled to receive a lump-sum cash award equal to $150,000 (the “Bonus”). The Bonus
will be paid at the closing of the Sale.

 

 

          If, during the Incentive Period, your employment is terminated by the Company without “Cause”
or you resign for “Good Reason,” you will be entitled to receive any Bonus to which you would have
become entitled if you had remained an employee of the Company at the closing of the Sale. For this
purpose, “Cause” and “Good Reason” have the meanings ascribed to them in the severance agreement
between you and the Company, dated February 16, 2007 (the “Change in Control Agreement”).

          Also, if your employment is terminated during the Incentive Period by reason of your
Disability (as defined in the Change in Control Agreement) or death, you or your legal
representative, as appropriate, will be entitled to receive any Bonus to which you would otherwise
have become entitled.

          However, if during the Incentive Period your employment is terminated by the Company for Cause
or by you other than for Good Reason, you will not be entitled to receive any Bonus.

Miscellaneous

          By accepting this letter agreement and the Bonus payable to you, you hereby agree, that
without the written permission of the Board, you will not disclose the existence of this letter
agreement or the terms of the Bonus with anyone other than your immediate family and your legal and
financial advisors, unless you are required by law to make such disclosure. Any failure to abide
by this covenant will result in the complete forfeiture of your Bonus and the return of any Bonus
previously paid to you.

          The Bonus paid to you or on your behalf shall be reduced by applicable taxes and withholdings.

          Neither the Company nor its shareholders are under any obligation, express or implied, by
virtue of this letter or otherwise, to enter into any Sale at any time.

          Please indicate your agreement with the foregoing by signing both copies of this letter where
indicated below and returning one fully executed copy to the Chief Financial Officer of the Company. This letter will then become a legally binding agreement between you and the Company.

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	 	Sincerely yours,

TB WOOD’S CORPORATION

 	 
	 	By:  	/s/ William T. Fejes, Jr.
 	 
	 	 	Name:  	William T. Fejes, Jr. 	 
	 	 	Title:  	President and CEO 	 
	 

	 	 	 	 	 
	Accepted and Agreed to:

 	 	 
	/s/ Joseph C. Horvath
 	 	 
	 	 	 
	 	 	 
	 

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FORM OF INDEMNIFICATION AGREEMENT

     This Indemnification Agreement, dated as of February ___, 2007, is made by and among TB Wood’s
Corporation, a Delaware corporation (the “Company”), and [                                        ] (the “Indemnitee”).

BACKGROUND

     The Company and Indemnitee recognize the increasing difficulty in obtaining liability
insurance for directors and officers, the significant increases in the cost of such insurance and
the general reductions in the coverage of such insurance. The Company and Indemnitee further
recognize the substantial increase in corporate litigation in general, subjecting directors and
officers to expensive litigation risks at the same time as the availability and coverage of
liability insurance has been severely limited.

     The Company’s Bylaws require the Company to indemnify its directors and officers to the
fullest extent permitted by the Delaware General Company Law (the “DGCL”). The Bylaws expressly
provide that the indemnification provisions set forth therein are not exclusive, and contemplate
that contracts may be entered into between the Company and its directors and officers with respect
to indemnification. The Company desires and has requested Indemnitee to serve or continue to serve
as a director or officer of the Company free from undue concern for unwarranted claims for damages
arising out of or related to such services to the Company. Indemnitee is willing to serve,
continue to serve or to provide additional service for or on behalf of the Company on the condition
that he is furnished the indemnity provided for herein.

AGREEMENT

     NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth below, and
other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged,
the parties hereto, intending to be legally bound, hereby agree as follows:

     Section 1. Generally.

     To the fullest extent permitted by the laws of the State of Delaware:

          (a) The Company shall indemnify Indemnitee if Indemnitee was or is a party or is threatened to
be made a party to any threatened, pending or completed action, suit or proceeding, whether civil,
criminal, administrative or investigative, by reason of the fact that Indemnitee is or was or has
agreed to serve at the request of the Company as a director or officer of the Company, or while
serving as a director or officer of the Company, is or was serving or has agreed to serve at the
request of the Company as a director, officer, employee or agent (which, for purposes hereof, shall
include a trustee, partner or manager or similar capacity) of another corporation, partnership,
joint venture, trust, employee benefit plan or other enterprise, or by reason of any action alleged
to have been taken or omitted in such capacity.

 

 

          (b) The indemnification provided by this Section 1 shall be from and against expenses
(including attorneys’ fees), judgments, fines and amounts paid in settlement actually and
reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with such action, suit or
proceeding and any appeal therefrom, but shall only be provided if Indemnitee acted in good faith
and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the
Company, and, with respect to any criminal action, suit or proceeding, had no reasonable cause to
believe Indemnitee’s conduct was unlawful.

          (c) Notwithstanding the foregoing provisions of this Section 1, in the case of any threatened,
pending or completed action or suit by or in the right of the Company to procure a judgment in its
favor by reason of the fact that Indemnitee is or was a director or officer of the Company, or
while serving as a director or officer of the Company, is or was serving or has agreed to serve at
the request of the Company as a director, officer, employee or agent of another corporation,
partnership, joint venture, trust, employee benefit plan or other enterprise, no indemnification
shall be made in respect of any claim, issue or matter as to which Indemnitee shall have been
adjudged to be liable to the Company unless, and only to the extent that the court in which such
action or suit was brought shall determine upon application that, despite the adjudication of
liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably
entitled to indemnity for such expenses which such court shall deem proper.

          (d) The termination of any action, suit or proceeding by judgment, order, settlement,
conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a
presumption that Indemnitee did not act in good faith and in a manner which Indemnitee reasonably
believed to be in or not opposed to the best interests of the Company, and, with respect to any
criminal action or proceeding, had reasonable cause to believe that Indemnitee’s conduct was
unlawful.

     Section 2. Successful Defense; Partial Indemnification.

          (a) To the extent that Indemnitee has been successful on the merits or otherwise in defense of
any action, suit or proceeding referred to in Section 1 hereof or in defense of any claim, issue or
matter therein, Indemnitee shall be indemnified against expenses (including attorneys’ fees)
actually and reasonably incurred in connection therewith. For purposes of this Agreement and
without limiting the foregoing, if any action, suit or proceeding is disposed of, on the merits or
otherwise (including a disposition without prejudice), without (i) the disposition being adverse to
Indemnitee, (ii) an adjudication that Indemnitee was liable to the Company, (iii) a plea of guilty
or nolo contendere by Indemnitee, (iv) an adjudication that Indemnitee did not act in good faith
and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the
Company, and (v) with respect to any criminal proceeding, an adjudication that Indemnitee had
reasonable grounds to believe Indemnitee’s conduct was unlawful, Indemnitee shall be considered for
the purposes hereof to have been wholly successful with respect thereto.

          (b) If Indemnitee is entitled under any provision of this Agreement to indemnification by the
Company for some or a portion of the expenses (including attorneys’
fees), judgments, fines or amounts paid in settlement actually and reasonably incurred by

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Indemnitee or on Indemnitee’s behalf in connection with any action, suit, proceeding or
investigation, or in defense of any claim, issue or matter therein, and any appeal therefrom but
not, however, for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for
the portion of such expenses (including attorneys’ fees), judgments, fines or amounts paid in
settlement to which Indemnitee is entitled.

     Section 3. Advance Payment of Expenses; Notification and Defense of Claim. 

          (a) Expenses (including attorneys’ fees) reasonably incurred by Indemnitee in defending a
threatened or pending civil, criminal, administrative or investigative action, suit or proceeding,
or in connection with an enforcement action pursuant to Section 4(b), shall be paid by the Company
in advance of the final disposition of such action, suit or proceeding. The reasonable fees and
expenses of any special legal counsel engaged to determine the permissibility of advance of fees
and expenses shall be borne by the Company. Expenses authorized under this Section 3(a) shall be
paid within thirty (30) days after receipt by the Company of (i) a statement or statements from
Indemnitee requesting such advance or advances from time to time and a reasonably detailed
description of the services provided or out-of-pocket expenses paid by Indemnitee, and (ii) an
undertaking by or on behalf of Indemnitee to repay such amount or amounts, only if, and to the
extent that, it shall ultimately be determined that Indemnitee is not entitled to be indemnified by
the Company as authorized by this Agreement or otherwise. Such undertaking shall be accepted
without reference to the financial ability of Indemnitee to make such repayment. Advances shall be
unsecured and interest-free. The Indemnitee’s entitlement to indemnification hereunder will be
determined in one of the following ways: (x) by a majority vote of the disinterested directors, if
they constitute a quorum of the Board, or, in the case of an Indemnitee that is not a present or
former officer of the Company, by any committee of the Board or committee of officers or agents of
the Company designated for such purpose by a majority of the Board of Directors; (y) by a written
opinion of independent legal counsel if (1) a change of control has occurred and the Indemnitee so
requests or (2) in the case of an Indemnitee that is a present or former officer of the Company, a
quorum of the Board consisting of disinterested directors is not obtainable or, even if obtainable,
a majority of such disinterested directors so directs; or (z) by the stockholders (but only if a
majority of the disinterested directors, if they constitute a quorum of the Board, presents the
issue of entitlement to indemnification for their determination). In the event the determination
of entitlement to indemnification is to be made by independent counsel pursuant to clause (y)
above, a majority of the disinterested directors will select the independent counsel, but only an
independent counsel to which the Indemnitee does not reasonably object; provided,
however, that if a change of control has occurred, the Indemnitee will select such
independent counsel, but only an independent counsel to which the Board does not reasonably object.
In any event, if the person or persons empowered to determine the Indemnitee’s eligibility for
indemnification has not been appointed or has not made a determination within 60 days after receipt
by the Company of the request, together with any required supporting documentation, the Indemnitee
will be entitled to such indemnification unless (A) the Indemnitee misrepresented or failed to
disclose a material fact in making the request for indemnification or in any supporting
documentation or (B) such indemnification is prohibited by law.

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          (b) Promptly after receipt by Indemnitee of notice of the commencement of any action, suit or
proceeding, Indemnitee shall, if a claim thereof is to be made against the Company hereunder,
notify the Company of the commencement thereof. The failure to promptly notify the Company of the
commencement of the action, suit or proceeding, or Indemnitee’s request for indemnification, will
not relieve the Company from any liability that it may have to Indemnitee hereunder, except to the
extent the Company is prejudiced in its defense of such action, suit or proceeding as a result of
such failure. In addition, Indemnitee shall give the Company such information and cooperation as
it may reasonably require and as shall be within Indemnitee’s power.

          (c) Notwithstanding any other provision of this Agreement to the contrary, to the extent that
Indemnitee is, by reason of Indemnitee’s corporate status with respect to the Company or any
corporation, partnership, joint venture, trust, employee benefit plan or other enterprise which
Indemnitee is or was serving or has agreed to serve at the request of the Company, a witness in any
action, suit or proceeding at a time when Indemnitee is not a party in the action, suit or
proceeding, the Company shall indemnify Indemnitee against all expenses (including attorneys’ fees)
actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection therewith.

     Section 4. Procedure for Indemnification.

          (a) To obtain indemnification, Indemnitee shall submit to the Secretary of the Company a
written request, including therein or therewith such documentation and information as is reasonably
available to Indemnitee and is reasonably necessary to determine whether and to what extent
Indemnitee is entitled to indemnification. The Secretary of the Company shall, promptly upon
receipt of such a request for indemnification, advise the Board of Directors in writing that
Indemnitee has requested indemnification.

          (b) The Company’s determination whether to grant Indemnitee’s indemnification request shall be
made promptly, and in any event within 60 days following receipt of a request for indemnification
pursuant to Section 4(a). The right to indemnification as granted by Section 1 of this Agreement
shall be enforceable by Indemnitee in any court of competent jurisdiction if the Company denies
such request, in whole or in part, or fails to respond within such 60 day period. It shall be a
defense to any such action (other than an action brought to enforce a claim for the advance of
costs, charges and expenses under Section 3 hereof where the required undertaking, if any, has been
received by the Company) that Indemnitee has not met the standard of conduct set forth in Section 1
hereof.

          (c) The termination of any proceeding for which indemnification is sought by the Indemnitee,
or of any claim, issue or matter therein, by judgment, order, settlement, or conviction, or upon a
plea of nolo contendre or its equivalent, will not, of itself, adversely affect the right of the
Indemnitee to indemnification or create a presumption that the Indemnitee did not act in good faith
and in a manner which the Indemnitee reasonably believed to be in or not opposed to the best
interests of the Company or, with respect to any criminal proceeding, that the Indemnitee had
reasonable cause to believe that his or her conduct was unlawful.

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          (d) The Indemnitee shall be presumed to be entitled to indemnification under this Agreement
upon submission of a request for indemnification pursuant to this Section 4, and the Company shall
have the burden of proof in overcoming that presumption in reaching a determination contrary to
that presumption.

     Section 5. Insurance and Subrogation.

          (a) The Company may purchase and maintain insurance on behalf of Indemnitee who is or was or
has agreed to serve at the request of the Company as a director or officer of the Company, or is or
was serving at the request of the Company as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust, employee benefit plan or other enterprise against
any liability asserted against, and incurred by, Indemnitee or on Indemnitee’s behalf in any such
capacity, or arising out of Indemnitee’s status as such, whether or not the Company would have the
power to indemnify Indemnitee against such liability under the provisions of this Agreement. If the
Company has such insurance in effect at the time the Company receives from Indemnitee any notice of
the commencement of a proceeding, the Company shall give prompt notice of the commencement of such
proceeding to the insurers in accordance with the procedures set forth in the policy. The Company
shall thereafter take all action it deems reasonably necessary to cause such insurers to pay, on
behalf of the Indemnitee, all amounts payable as a result of such proceeding in accordance with the
terms of such policy.

          (b) In the event of any payment by the Company under this Agreement, the Company shall be
subrogated to the extent of such payment to all of the rights of recovery of Indemnitee with
respect to any insurance policy, who shall execute all papers required and take all action
necessary to secure such rights, including execution of such documents as are necessary to enable
the Company to bring suit to enforce such rights in accordance with the terms of such insurance
policy. The Company shall pay or reimburse all expenses actually and reasonably incurred by
Indemnitee in connection with such subrogation.

          (c) The Company shall not be liable under this Agreement to make any payment of amounts
otherwise indemnifiable hereunder (including, but not limited to, judgments, fines, ERISA excise
taxes or penalties, and amounts paid in settlement) if and to the extent that Indemnitee has
otherwise actually received such payment under this Agreement or any insurance policy, contract,
agreement or otherwise.

     Section 6. Certain Definitions. For purposes of this Agreement, the following
definitions shall apply:

          (a) The term “action, suit or proceeding” shall be broadly construed and shall include,
without limitation, the investigation, preparation, prosecution, defense, settlement, arbitration
and appeal of, and the giving of testimony in, any threatened, pending or completed claim, action,
suit or proceeding, whether civil, criminal, administrative or investigative.

          (b) The term “by reason of the fact that Indemnitee is or was a director or officer of the
Company, or while serving as a director or officer of the Company, is or was serving or has agreed
to serve at the request of the Company as a director, consultant, officer,
employee or agent of another corporation, partnership, joint venture, trust, employee benefit
plan

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or other enterprise” shall be broadly construed and shall include, without limitation, any
actual or alleged act or omission to act.

          (c) The term “expenses” shall be broadly and reasonably construed and shall include, without
limitation, all direct and indirect costs of any type or nature whatsoever (including, without
limitation, all attorneys’ fees and related disbursements, appeal bonds and other out-of-pocket
costs), actually and reasonably incurred by Indemnitee in connection with either the investigation,
defense or appeal of a proceeding or establishing or enforcing a right to indemnification under
this Agreement, Section 145 of the DGCL or otherwise.

          (d) The term “judgments, fines and amounts paid in settlement” shall be broadly construed and
shall include, without limitation, all direct and indirect payments of any type or nature
whatsoever (including, without limitation, all penalties and amounts required to be forfeited or
reimbursed to the Company), as well as any penalties or excise taxes assessed on a person with
respect to an employee benefit plan).

          (e) The term “Company” shall include, without limitation and in addition to the resulting
corporation, any constituent corporation (including any constituent of a constituent) absorbed in a
consolidation or merger which, if its separate existence had continued, would have had power and
authority to indemnify its directors, officers, and employees or agents, so that any person who is
or was a director, officer, employee or agent of such constituent corporation, or is or was serving
at the request of such constituent corporation as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust, employee benefit plan or other enterprise, shall
stand in the same position under the provisions of this Agreement with respect to the resulting or
surviving corporation as he or she would have with respect to such constituent corporation if its
separate existence had continued.

          (f) The term “serving at the request of the Company” shall include, without limitation, any
service as a director, officer, employee or agent of the Company which imposes duties on, or
involves services by, such director, officer, employee or agent with respect to an employee benefit
plan, its participants or beneficiaries.

          (g) A person who acted in good faith and in a manner such person reasonably believed to be in
the interest of the participants and beneficiaries of an employee benefit plan shall be deemed to
have acted in a manner “not opposed to the best interests of the Company” as referred to in this
Agreement.

     Section 7. Limitation on Indemnification. Notwithstanding any other provision herein
to the contrary, the Company shall not be obligated pursuant to this Agreement:

          (a) Claims Initiated by Indemnitee. To indemnify or advance expenses to Indemnitee
with respect to an action, suit or proceeding (or part thereof) initiated by Indemnitee, except
with respect to an action, suit or proceeding brought to establish or enforce a right to
indemnification (which shall be governed by the provisions of Section 7(b) of this Agreement),
unless such action, suit or proceeding (or part thereof) was authorized or consented to by the
Board of Directors of the Company.

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          (b) Action for Indemnification. To indemnify Indemnitee for any expenses incurred by
Indemnitee with respect to any action, suit or proceeding instituted by Indemnitee to enforce or
interpret this Agreement, unless Indemnitee is successful in establishing Indemnitee’s right to
indemnification in such action, suit or proceeding, in whole or in part, or unless and to the
extent that the court in such action, suit or proceeding shall determine that, despite Indemnitee’s
failure to establish their right to indemnification, Indemnitee is entitled to indemnity for such
expenses; provided, however, that nothing in this Section 7(b) is intended to limit the Company’s
obligation with respect to the advancement of expenses to Indemnitee in connection with any such
action, suit or proceeding instituted by Indemnitee to enforce or interpret this Agreement, as
provided in Section 3 hereof.

          (c) Section 16 Violations. To indemnify Indemnitee for expenses or the payment of
profits arising from the purchase and sale by Indemnitee of securities in violation of Section
16(b) of the Securities Exchange Act of 1934, as amended, or any similar successor statute.

          (d) Non-compete and Non-disclosure. To indemnify Indemnitee in connection with
proceedings or claims involving the enforcement of non-compete and/or non-disclosure agreements or
the non-compete and/or non-disclosure provisions of employment, consulting or similar agreements
the Indemnitee may be a party to with the Company, or any subsidiary of the Company or any other
applicable foreign or domestic corporation, partnership, joint venture, trust or other enterprise,
if any.

          (e) Unlawful Indemnification. To indemnify the Indemnitee if a final decision by a
court having jurisdiction in the matter shall determine that such indemnification is prohibited by
law. Both the Company and Indemnitee acknowledge that in certain instances, Federal law or public
policy may override applicable state law and prohibit the Company from indemnifying its directors
and officers under this Agreement or otherwise. For example, the Company and Indemnitee
acknowledge that the Securities and Exchange Commission (the “SEC”) has taken the position
that indemnification is not permissible for liabilities arising under certain federal securities
laws, and federal legislation prohibits indemnification for certain ERISA violations. Indemnitee
understands and acknowledges that the Company has undertaken or may be required in the future to
undertake with the SEC to submit the question of indemnification to a court in certain
circumstances for a determination of the Company’s right under public policy to indemnify
Indemnitee.

     Section 8. Certain Settlement Provisions. The Company shall have no obligation to
indemnify Indemnitee under this Agreement for amounts paid in settlement of any action, suit or
proceeding without the Company’s prior written consent, which shall not be unreasonably withheld.

     Section 9. Savings Clause. If any provision or provisions of this Agreement shall be
invalidated on any ground by any court of competent jurisdiction, then the Company shall
nevertheless indemnify Indemnitee as to costs, charges and expenses (including attorneys’
fees), judgments, fines and amounts paid in settlement with respect to any action, suit or
proceeding, whether civil, criminal, administrative or investigative, including an action by or in
the right of

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the Company, to the full extent permitted by any applicable portion of this Agreement
that shall not have been invalidated and to the full extent permitted by applicable law.

     Section 10. Contribution. In order to provide for just and equitable contribution in
circumstances in which the indemnification provided for herein is held by a court of competent
jurisdiction to be unavailable to Indemnitee in whole or in part, it is agreed that, in such event,
the Company shall, to the fullest extent permitted by law, contribute to the payment of
Indemnitee’s costs, charges and expenses (including attorneys’ fees), judgments, fines and amounts
paid in settlement with respect to any action, suit or proceeding, whether civil, criminal,
administrative or investigative, in an amount that is just and equitable in the circumstances,
taking into account, among other things, contributions by other directors and officers of the
Company or others pursuant to indemnification agreements or otherwise; provided, that, without
limiting the generality of the foregoing, such contribution shall not be required where such
holding by the court is due to (a) the failure of Indemnitee to meet the standard of conduct set
forth in Section 1 hereof, or (b) any limitation on indemnification set forth in Section 5(c), 7 or
8 hereof.

     Section 11. Form and Delivery of Communications. Any notice, request or other
communication required or permitted to be given to the parties under this Agreement shall be in
writing and either delivered in person or sent by telecopy, telex, telegram, overnight mail or
courier service, or certified or registered mail, return receipt requested, postage prepaid, to the
parties at the following addresses (or at such other addresses for a party as shall be specified by
like notice):

If to the Company:

TB Wood’s Corporation

440 North Fifth Avenue

Chambersburg, PA 17201

Attn: Chief Executive Officer

Facsimile: (717) 264-2869

With a copy to:

David E. Schulman

Dechert LLP

1775 I Street, N.W.

Washington, DC 20006

Facsimile: (202) 261-3333

If to Indemnitee:

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     Section 12. Subsequent Legislation. If the DGCL is amended after adoption of this
Agreement to expand further the indemnification permitted to directors or officers, then the
Company shall indemnify Indemnitee to the fullest extent permitted by the DGCL, as so amended.

     Section 13. Nonexclusivity. The provisions for indemnification and advancement of
expenses set forth in this Agreement shall not be deemed exclusive of any other rights which
Indemnitee may have under any provision of law, the Company’s Certificate of Incorporation or
Bylaws, in any court in which a proceeding is brought, the vote of the Company’s stockholders or
disinterested directors, other agreements or otherwise, and Indemnitee’s rights hereunder shall
continue as to Indemnitee for any action taken or not taken while serving in an indemnified
capacity even though he or she may have ceased to serve in any such capacity at the time of any
action, suit or other covered proceeding. However, no amendment or alteration of the Company’s
Certificate of Incorporation or Bylaws or any other agreement shall adversely affect the rights
provided to Indemnitee under this Agreement.

     Section 14. Enforcement. The Company shall be precluded from asserting in any
judicial proceeding that the procedures and presumptions of this Agreement are not valid, binding
and enforceable. The Company agrees that its execution of this Agreement shall constitute a
stipulation by which it shall be irrevocably bound in any court of competent jurisdiction in which
a proceeding by Indemnitee for enforcement of his rights hereunder shall have been commenced,
continued or appealed, that its obligations set forth in this Agreement are unique and special, and
that failure of the Company to comply with the provisions of this Agreement will cause irreparable
and irremediable injury to Indemnitee, for which a remedy at law will be inadequate. As a result,
in addition to any other right or remedy Indemnitee may have at law or in equity with respect to
breach of this Agreement, Indemnitee shall be entitled to injunctive or mandatory relief directing
specific performance by the Company of its obligations under this Agreement.

     Section 15. Interpretation of Agreement. It is understood that the parties hereto
intend this Agreement to be interpreted and enforced so as to provide indemnification to Indemnitee
to the fullest extent now or hereafter permitted by law.

     Section 16. Entire Agreement. This Agreement and the documents expressly referred to
herein constitute the entire agreement between the parties hereto with respect to the matters
covered hereby, and any other prior or contemporaneous oral or written understandings or agreements
with respect to the matters covered hereby are expressly superseded by this Agreement.

     Section 17. Modification and Waiver. No supplement, modification or amendment of this
Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of
any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other
provision hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

     Section 18. Successor and Assigns. All of the terms and provisions of this Agreement
shall be binding upon, shall inure to the benefit of and shall be enforceable by the parties hereto

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and their respective successors, spouses, assigns, heirs, executors, administrators and legal
representatives.

     Section 19. Consent to Jurisdiction. The Company and the Indemnitee each hereby
irrevocably consent to the jurisdiction of the courts of the State of Delaware for all purposes in
connection with any action or proceeding which arises out of or relates to this Agreement.

     Section 20. Governing Law. This Agreement shall be governed exclusively by and
construed according to the laws of the State of Delaware, without giving effect to principles of
conflict of law.

     Section 21. Employment Rights. Nothing in this Agreement is intended to create in
Indemnitee any right to employment or continued employment.

     Section 22. Counterparts. 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 be deemed to be one
and the same instrument, notwithstanding that both parties are not signatories to the original or
same counterpart.

     Section 23. Headings. The section and subsection headings contained in this Agreement
are for reference purposes only and shall not affect in any way the meaning or interpretation of
this Agreement.

10

 

IN WITNESS WHEREOF, this Agreement has been duly executed and delivered to be effective as of the
date first above written.

	 	 	 	 	 
	 	TB WOOD’S CORPORATION

 	 
	 	By 	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	INDEMNITEE:

 	 
	 	By 	 	 
	 	 	Name:  	 	 
	 	 	 	 
	 

11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}]]