Document:

Exhibit

Exhibit 10.1
EXECUTION VERSION

FIRST AMENDMENT TO CREDIT AGREEMENT

This FIRST AMENDMENT TO CREDIT AGREEMENT (this “First Amendment”) is made and entered into as of August 13, 2015, by and among ALTRA INDUSTRIAL MOTION CORP., a Delaware corporation (the “Company”), the Designated Borrower as of the date hereof (together with the Company, collectively, the “Borrowers”), the Subsidiary Guarantors as of the date hereof, JPMORGAN CHASE BANK, N.A., as Administrative Agent, and Lenders constituting Required Lenders as of the date hereof.

WHEREAS, the Borrowers are party to that certain Amended and Restated Credit Agreement, dated as of December 6, 2013 (as the same may be amended and in effect from time to time, the “Credit Agreement”), among the Borrowers, the Lenders from time to time party thereto and the Administrative Agent; and

WHEREAS, the Borrowers have requested that each of the Lenders agree, and Lenders constituting Required Lenders under the terms of the Credit Agreement have agreed, on the terms and subject to the conditions set forth herein, to make certain amendments to the Credit Agreement;

NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

1.      Definitions; Loan Document.  Capitalized terms used in this First Amendment without definition shall have the meaning assigned to such terms in the Credit Agreement.  This First Amendment shall constitute a Loan Document for all purposes of the Credit Agreement and the other Loan Documents.

2.    Amendments to Section 1.01 (Defined Terms) of the Credit Agreement.  Section 1.01 of the Credit Agreement is hereby amended as follows:
a.    The definition of “Change in Control” is hereby amended and restated in its entirety to read as follows:
““Change in Control” means (a) the acquisition of ownership, directly or indirectly, beneficially or of record, by any Person or group (within the meaning of the Securities Exchange Act of 1934 and the rules of the SEC thereunder as in effect on the date hereof), of Equity Interests representing more than thirty-five percent (35%) of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of the Company; (b) occupation of a majority of the seats (other than vacant seats) on the board of directors of the Company by Persons who were neither (i) nominated, approved, or appointed by the board of directors of the Company nor (ii) nominated, approved or appointed by directors so nominated, approved, or appointed; or (c) the acquisition of Control of the Company by any Person or group.” 

3.    No Waiver.  Except as a result of the amendments set forth in Paragraph 2 of this First Amendment, nothing contained in this First Amendment shall be deemed to (i) constitute a waiver of any Default or Event of Default that may heretofore or hereafter occur or have occurred and be continuing or to otherwise modify any provision of the Credit Agreement or any other Loan Document, or (ii) give rise to any defenses or counterclaims to the Administrative Agent’s or any of the Lenders’ right to compel payment of the Obligations when due or to otherwise enforce their respective rights and remedies under the Credit Agreement and the other Loan Documents.
4.    Conditions to Effectiveness.  This First Amendment shall become effective on the date upon which the Administrative Agent (or its counsel) receives from each of the Borrowers and each of the Lenders constituting Required Lenders (i) a counterpart of this First Amendment, signed on behalf of such Person, or (ii) written evidence satisfactory to the Administrative Agent (which may include telecopy transmission of a signed signature page of this First Amendment) that such Person has signed a counterpart of this First Amendment.
5.    Legal Fees.  The Company shall promptly pay, upon receiving an invoice therefor, all fees, charges and disbursements of Goulston & Storrs, PC, counsel to the Administrative Agent (directly to such counsel if requested by the Administrative Agent) incurred in connection with this First Amendment.
6.    Representations and Warranties.  The Borrowers represent and warrant to the Administrative Agent and the Lenders as follows:
(a)    The execution, delivery and performance of this First Amendment and the transactions contemplated hereby (i) are within each Borrower’s corporate powers, (ii) have been duly authorized by all necessary corporate and, if required, stockholder action, (iii) been duly executed and delivered by each Borrower, (iv) do not and will not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority or any other Person, (v) do not and will not violate any applicable law, rule or regulation of any Governmental Authority or any Organization Document of any Borrower, and (vi) do not and will not conflict with or result in any material breach or contravention of, or the creation of any material Lien under, or require any material payment to be made under (A) any material Contractual Obligation to which any Borrower is a party or affecting any Borrower or the properties of any Borrower or any of its Subsidiaries or (B) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which any Borrower or the properties of any Borrower or any of its Subsidiaries is subject.
(b)    This First Amendment constitutes a legal, valid and binding obligation of each Borrower, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.
(c)    The representations and warranties made by the Borrowers in the Loan Documents are true and correct in all material respects (or in all respects if the applicable 

2

representation or warranty is already qualified by concepts of materiality) on and as of the date hereof, as though made on the date hereof.
(d)    After giving effect to this First Amendment, no Default or Event of Default has occurred and is continuing.
7.    Ratification, etc.  Except as expressly amended by this First Amendment, the Credit Agreement, the other Loan Documents and all documents, instruments and agreements related thereto are hereby ratified and confirmed in all respects and shall continue in full force and effect.  This First Amendment and the Credit Agreement shall hereafter be read and construed together as a single document, and all references in the Credit Agreement, any other Loan Document or any agreement or instrument related to the Credit Agreement shall hereafter refer to the Credit Agreement as amended by this First Amendment.
8.    Reaffirmation of Guarantee.  (a) Each Domestic Borrower hereby reaffirms its guarantee contained in Article X of the Credit Agreement of the payment when and as due of the Secured Obligations of each other Loan Party, and acknowledges and agrees that such guarantee is and shall remain in full force and effect after giving effect to this First Amendment.  (b) In addition, each Subsidiary Guarantor hereby reaffirms hereby reaffirms its guarantee contained in the Guarantee Agreement of the payment when and as due of all the Obligations and other obligations as provided in the Guarantee Agreement, and acknowledges and agrees that such guarantee is and shall remain in full force and effect after giving effect to this First Amendment.
9.    GOVERNING LAW.  THIS FIRST AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK.
10.    Counterparts.  This First Amendment 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 contract.  Delivery of an executed counterpart of a signature page of this First Amendment by telecopy, emailed pdf or any other electronic means that reproduces an image of the actual executed signature page shall be effective as delivery of a manually executed counterpart of this First Amendment. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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IN WITNESS WHEREOF, each of the undersigned has duly executed this First Amendment to Credit Agreement as a sealed instrument as of the date first set forth above.

BORROWERS:
ALTRA INDUSTRIAL MOTION CORP.

	
			
	By:
	 
	/s/ Todd Patriacca

	Name:
	 
	Todd Patriacca

	Title
	 
	Vice President Finance, Corporate

	 
	 
	Controller and Treasurer

    
ALTRA INDUSTRIAL MOTION 
NETHERLANDS B.V.
    
	
			
	By:
	 
	/s/ Carl Richard Christenson

	Name:
	 
	Carl Richard Christenson

	Title:
	 
	Director B

    

Signature Pages to First Amendment to Credit Agreement (JPM/Altra Industrial Motion)

SUBSIDIARY GUARANTORS:

WARNER ELECTRIC INTERNATIONAL HOLDING, INC
BOSTON GEAR LLC
BAUER GEAR MOTOR LLC
WARNER ELECTRIC TECHNOLOGY LLC
INERTIA DYNAMICS, LLC
WARNER ELECTRIC LLC
AMERIDRIVES INTERNATIONAL, LLC
KILIAN MANUFACTURING CORPORATION
FORMSPRAG LLC
NUTTALL GEAR L L C
TB WOOD’S CORPORATION
TB WOOD’S INCORPORATED

	
			
	By:
	 
	/s/ Todd Patriacca

	Name:
	 
	Todd Patriacca

	Title
	 
	Treasurer

	 
	 
	 

Signature Pages to First Amendment to Credit Agreement (JPM/Altra Industrial Motion)

JPMORGAN CHASE BANK, N.A.,
as Administrative Agent and a Lender, the Swingline Lender and the Issuing Bank

	
			
	By:
	 
	/s/ Peter M. Killea

	Name:
	 
	Peter M. Killea

	Title
	 
	Credit Executive

Signature Pages to First Amendment to Credit Agreement (JPM/Altra Industrial Motion)

Citibank, N.A.,
as a Lender
	
			
	By:
	 
	/s/ Marina E. Grossi

	Name:
	 
	Marina E. Grossi

	Title
	 
	Senior Vice President

        

Signature Pages to First Amendment to Credit Agreement (JPM/Altra Industrial Motion)

EASTERN BANK,
as a Lender
	
			
	By:
	 
	/s/ Daniel C. Field

	Name:
	 
	Daniel C. Field

	Title
	 
	Senior Vice President

        

Signature Pages to First Amendment to Credit Agreement (JPM/Altra Industrial Motion)

FIFTH THIRD BANK,
as a Lender
	
			
	By:
	 
	/s/ Colin Murphy

	Name:
	 
	Colin Murphy

	Title
	 
	Director

        

Signature Pages to First Amendment to Credit Agreement (JPM/Altra Industrial Motion)

KEYBANK NATIONAL ASSOCIATION,
as a Lender
	
			
	By:
	 
	/s/ Brian P. Fox

	Name:
	 
	Brian P. Fox

	Title
	 
	Vice President

        

Signature Pages to First Amendment to Credit Agreement (JPM/Altra Industrial Motion)

PEOPLE'S UNITED BANK, N.A.,
Formerly People's United Bank, 
as a Lender
	
			
	By:
	 
	/s/ Robert Hazard

	Name:
	 
	Robert Hazard

	Title
	 
	Senior Vice President

        

Signature Pages to First Amendment to Credit Agreement (JPM/Altra Industrial Motion)

TD BANK, N.A.,
as a Lender
	
			
	By:
	 
	/s/ Alan Garson

	Name:
	 
	Alan Garson

	Title
	 
	Senior Vice President

        

Signature Pages to First Amendment to Credit Agreement (JPM/Altra Industrial Motion)

US BANK NATIONAL ASSOCIATION,
as a Lender
	
			
	By:
	 
	/s/ Mark Irey

	Name:
	 
	Mark Irey

	Title
	 
	Vice President

Signature Pages to First Amendment to Credit Agreement (JPM/Altra Industrial Motion)

Webster Bank, N.A.,
as a Lender
	
			
	By:
	 
	/s/ Raymond C. Hoefling

	Name:
	 
	Raymond C. Hoefling

	Title
	 
	Senior Vice President

Signature Pages to First Amendment to Credit Agreement (JPM/Altra Industrial Motion)2015 2Q 10Q EX 10.2

Exhibit 10.2

2015 EXECUTIVE MANAGEMENT COMPENSATION PROGRAM ("2015 EMCP")
Program Document
Effective January 1, 2015
	
		
	Covered Positions
	A “Covered Officer” is any Freddie Mac1 officer at the Senior Vice President (“SVP”) level and above.

	Covered Position Participation Requirement
	Participation in the 2015 EMCP is conditioned on the Covered Officer’s agreement to the terms and conditions set forth herein and in the EMCP Recapture and Forfeiture Agreement (“Recapture Agreement”).  A Covered Officer who does not agree to the terms of both the 2015 EMCP and the Recapture Agreement will receive only Base Salary.  The terms and conditions set forth in the Recapture Agreement are incorporated in and made a part of this 2015 EMCP.

	Target Total Direct Compensation2
	A Covered Officer’s target total direct compensation (“Target TDC”) is the sum of Base Salary and Deferred Salary, each of which is paid in cash.

	Base Salary
	Base Salary is earned and paid on the company’s standard payroll cycle and cannot exceed $500,000 without Federal Housing Finance Agency (“FHFA”) approval.

	Deferred Salary
	The portion of Target TDC not paid in Base Salary is Deferred Salary, which is earned on the company’s standard payroll cycle.  The amount earned in each quarter, plus interest earned on that amount as described below under “Interest on Deferred  Salary,” will be paid in cash on the last regular pay date within the corresponding quarter of the following calendar year (the “Approved Payment Schedule”).  Deferred Salary consists of the following two elements:
At-Risk Deferred Salary – At-Risk Deferred Salary shall be equal to 30% of the Covered Officer’s Target TDC.  The amount of At-Risk Deferred Salary earned in a calendar year is subject to reduction based on corporate and individual performance as follows:
Ø    One-half of At-Risk Deferred Salary (or 15% of Target TDC) is subject to reduction based on an assessment by FHFA of performance against Conservatorship Scorecard objectives relevant for the calendar year in which the At-Risk Deferred Salary is earned.3   The reduction can range from 0%  (no reduction) to 100% (the maximum reduction).
Ø    One-half of At-Risk Deferred Salary (or 15% of Target TDC) is subject to reduction based on the Covered Officer’s performance against individual objectives and an assessment of the company’s performance against Corporate Scorecard objectives, each relevant to the calendar year in which the At-Risk Deferred Salary is earned. The total reduction can range from 0% (no reduction) to 100% (the maximum reduction).
For Covered Officer’s other than the Chief Executive Officer (“CEO”), performance during the calendar year will be assessed by the CEO, in        his/her sole discretion, pursuant to the performance assessment and reduction process in effect for such year.

                                                         
1 For purposes of this Program Document, Freddie Mac refers to the Federal Home Loan Mortgage Corporation and any of its wholly-owned subsidiaries.
2 Initially expressed as an annual rate.  Amount will be prorated, as appropriate, to reflect date of hire, promotion into a Covered Position, date of termination, or other adjustment to Target TDC.
3 For the Covered Officer leading the Internal Audit function, the reduction will be based on the appropriate Board committee’s and FHFA’s assessment of performance against the Internal Audit Scorecard objectives. 

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	Deferred Salary (continued)
	In the case of the CEO, the Committee will evaluate the CEO’s performance and, after considering input from the other independent members of the  Board of Directors, determine the reduction, if any.
At-Risk Deferred Salary payments for Covered Officers are subject to review and approval by the Committee and FHFA, as appropriate.
Fixed Deferred Salary – Fixed Deferred Salary shall be equal to the Covered Officer’s Target TDC less Base Salary and less At-Risk Deferred Salary and is not subject to reduction based on either corporate or individual performance.
Payment of both At-Risk and Fixed Deferred Salary is also subject, if applicable, to the “Treatment Upon Termination” provisions set forth below.

	Interest on Deferred Salary
	Interest will be credited on the amount of a Covered Officer’s At-Risk and Fixed Deferred Salary earned during each calendar quarter.  The interest rate used is one-half the one-year Treasury Bill rate in effect on the last business day immediately preceding the year in which Deferred Salary is earned (e.g. – the rate in effect December 31, 2014 for 2015).  The amount on which interest is accrued will take into account any reduction for corporate and/or individual performance applicable to a Covered Officer’s At-Risk Deferred Salary and any reduction applicable to a Covered Officer’s Fixed Deferred Salary resulting from certain terminations of employment as described in “Treatment Upon Termination: Fixed Deferred Salary.”  Interest is earned from the first day of the calendar quarter following the quarter during which the Deferred Salary is earned through the payment date under the Approved Payment Schedule or, in the event of death, the actual payment date.
The amount of interest payable with respect to a Covered Officer’s Deferred Salary   will be determined as of the payment date and will be paid at the same time as the Deferred Salary to which it relates.  If Deferred Salary is forfeited or recaptured for any of the reasons described in the Recapture Agreement, the related interest will also be forfeited or recaptured.

	Impact on Retirement, Executive, and Welfare Plans
	The treatment of Base Salary and Deferred Salary as compensation for purposes of Freddie Mac’s retirement and welfare benefit plans is governed by the actual terms of those plans.  The table below summarizes whether the Base Salary and Deferred Salary a Covered Officer receives while an active employee are treated as compensation for purposes of the following Freddie Mac retirement and welfare   benefit plans.  Freddie Mac retains the right to amend, revise or discontinue any of the retirement and welfare benefit plans and the terms of each plan will prevail in the   event that there is any conflict between those terms and the table below.

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	Impact on Retirement, Executive, and Welfare Plans (continued)
	 
	 
	 
	 
	 

	 
	Freddie Mac’s Retirement
and Welfare Benefit Plans
	Base Salary Considered Compensation?
	Deferred Salary Considered Compensation?
	 

	 
	Tax-Qualified Thrift/401(k)
	Yes
	Yes
	 

	 
	Non-Qualified Thrift/401(k) Supplemental Executive Retirement Plan (SERP)4
	Yes
	 Yes 
	 

	 
	Group Term Life Insurance
	Yes
	No
	 

	 
	Group Universal Life Insurance
	Yes
	No
	 

	 
	Long-Term Disability Plan
	Yes
	No
	 

	 
	Accidental Death and Personal Loss Insurance
	Yes
	No
	 

	 
	Business Travel Accident Insurance
	Yes
	No
	 

	 
	Worker’s Compensation
	Yes
	No
	 

	 
	Purchase/Payout of Vacation
	Yes
	No
	 

	 
	Interest earned on Deferred Salary, as well as any Base Salary or Deferred Salary a Covered Officer receives after termination of employment are NOT treated as compensation for purposes of any Freddie Mac retirement or welfare benefit plan.
	 

	Treatment Upon Termination:
Base Salary
	 
	Base Salary will cease upon termination of employment, regardless of the reason for such termination.
	 

                                                       
4 Compensation for purposes of the Non-Qualified Thrift/401(k) SERP may not exceed two times a Covered Officer’s Base Salary.

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	Treatment Upon Termination:
At-Risk Deferred Salary
	The timing and payment of any unpaid portion of At-Risk Deferred Salary is based on the reason for termination of employment, as follows:
•    Forfeiture Event – All earned but unpaid At-Risk Deferred Salary and related interest is subject to forfeiture if a Covered Officer is terminated due to the occurrence of an event or conduct described in the Recapture Agreement;
•    Death – All earned but unpaid At-Risk Deferred Salary and related interest is paid as soon as administratively possible, but not later than 90 calendar days after the date of death, subject to the terms and conditions of the Recapture Agreement; and 
•    Any Other Reason – All earned but unpaid At-Risk Deferred Salary and related interest is paid in accordance with the Approved Payment Schedule, subject to   the terms and conditions of the Recapture Agreement.
Payment of earned but unpaid At-Risk Deferred Salary and related interest following a termination of employment shall be subject to the performance assessment and reduction process. The performance assessment and reduction process for At-Risk Deferred Salary is waived, however, in cases of death or Long-Term Disability (as defined in the Long-Term Disability Plan in effect on the date of termination) if the process is not complete as of the termination date..

	Treatment Upon Termination:
Fixed Deferred Salary 
	The timing and payment of any unpaid portion of Fixed Deferred Salary is based on  the reason for termination of employment, as follows: 
•    Forfeiture Event – All earned but unpaid Fixed Deferred Salary and related  interest is subject to forfeiture if a Covered Officer is terminated due to the occurrence of an event or conduct described in the Recapture Agreement;  
•    Death – All earned but unpaid Fixed Deferred Salary and related interest is paid in full as soon as administratively possible, but not later than 90 calendar days after the date of death, subject to the terms and conditions of the Recapture  Agreement; and 
•    Any Other Reason5 – All earned but unpaid Fixed Deferred Salary and related interest is paid in accordance with the Approved Payment Schedule, subject to   the terms and conditions of the Recapture Agreement.
A Covered Officer’s earned but unpaid Fixed Deferred Salary will be reduced by 2%  for each full or partial month by which the termination precedes January 31 of the second calendar year following the calendar year in which the Fixed Deferred Salary   is earned. 
This reduction will not be applied in cases of death, Long-Term Disability, a severance-eligible termination, as defined in the severance plan applicable to Covered Officers who are not executive officers, or retirement.  A Covered Officer is considered to have retired when s/he voluntarily terminates employment after attaining or exceeding 62 years of age, regardless of length of service, or attaining or exceeding 55 years of age with 10 or more years of continuous service.

                                                       
5 Any Other Reason includes, but is not limited to, voluntary terminations, retirement, Long-Term Disability, and  involuntary termination for any reason other than a Forfeiture Event.

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	Reservation of Rights and Applicable Law
	Each Covered Officer’s employment with Freddie Mac is “at-will,” meaning that either the Covered Officer or Freddie Mac may terminate such employment at any time with or without cause or notice.  Nothing in this Program Document or any other document referred to or incorporated by reference herein shall be held or construed to change  the at-will nature of any Covered Officer’s employment with Freddie Mac.
Nothing in this Program Document is intended or shall be construed to abrogate FHFA’s authority to either: (i) modify or terminate any compensation plan or program (including the 2015 EMCP); or (ii) disapprove the actual payment of any form of compensation to be paid pursuant to the 2015 EMCP.
FHFA retains the right to modify any of the terms and conditions of your employment, including the right to modify or rescind the terms and conditions of the 2015 EMCP as well as the actual payment of compensation to you pursuant thereto, without giving  rise to liability on the part of Freddie Mac.
The 2015 EMCP is subject to and shall be construed in accordance with: (i) any applicable law and any applicable regulation, guidance or interpretation of FHFA     and/or the United States Department of the Treasury; and (ii) the substantive laws of the Commonwealth of Virginia, excluding provisions of the Virginia law concerning choice-of-law that would result in the law of any state other than Virginia being   applied.
Payment of Deferred Salary under the 2015 EMCP is intended to comply with the requirements of Section 409A of the Internal Revenue Code of 1986 (“Section 409A”), as amended, and, specifically, with the separation pay exemption and short-term deferral exemption of Section 409A, and shall in all respects be construed,   interpreted, and administered in accordance with Section 409A.  Notwithstanding anything in the 2015 EMCP to the contrary, payments may only be made pursuant to the 2015 EMCP upon an event and in a manner permitted by Section 409A or an applicable exemption.  All payments to be made upon a termination of employment under this Program Document may only be made upon a “separation from service” under section 409A.  If a Covered Officer is a “specified employee” (within the  meaning of Section 409A(a)(2)(B)(i)) at the time of a separation from service,  payments scheduled to be made during the six months following the separation from service shall, to the extent required by Section 409A, be deferred to and payable on  the first day of the seventh month following the separation from service.

This 2015 EMCP will be in effect for 2015 and subsequent years unless and until amended or superseded.  By signing below, I acknowledge that I understand and voluntarily agree to the terms of this 2015 EMCP:

A Covered Officer who consented to the applicable 2014 EMCP will be deemed to have consented to this 2015 EMCP.

___________________________________________        _____________________
Covered Officer’s Signature                        Date

___________________________________________
Printed Name

___________________________________________
Title

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