Document:

Exhibit 10.11

 

Shenzen Lease Agreement

(English Language Summary)

 

	
  Name of Lease:

  	
   

  	
  Shui Hing Manufacturing
  Factory Lease Agreement

  
	
   

  	
   

  	
   

  
	
  Parties to Lease:

  	
   

  	
  Warner Shui Hing Limited

  and

  Bogang Economic Development Company

  
	
   

  	
   

  	
   

  
	
  Date of Lease:

  	
   

  	
  January 1, 2003

  
	
   

  	
   

  	
   

  
	
  Termination Date of Lease:

  	
   

  	
  December 31, 2005

  
	
   

  	
   

  	
   

  
	
  Location/ Property Leased:

  	
   

  	
  Songshan
  Industrial Zone, Bogang Village.

  Shajing Town, Baoan District

  Shenzhen City

  Guangdong Province

  PRC

  
	
   

  	
   

  	
   

  
	
  Size of Space:

  	
   

  	
  Factory
  Area: 

  	
  4,742.3 m2

  
	
   

  	
   

  	
  Dormitory
  Area:

  	
  1,952.3
  m2

  
	
   

  	
   

  	
   

  
	
  Payments:

  	
   

  	
  $ 7,832 per month

  
	
   

  	
   

  	
   

  
	
  Right to Terminate:

  	
   

  	
  Termination upon 3 months
  notice to landlord and payment of charges until end of rental period.

  
	
   

  	
   

  	
   

  
	
  Option to Extend:

  	
   

  	
  Upon the agreement of the
  parties the lease may be extended upon terms similar to those contained
  herein. Warner Shui Hing Limited shall have a first right to enter into
  negotiations with the landlord for the leased space.

  
	
   

  	
   

  	
   

  
	
  Transfer or Assignment:

  	
   

  	
  Not addressed in the
  lease.

  
	
   

  	
   

  	
   

  
	
  Uses allowed:

  	
   

  	
  Operation of a machining factory
  and assembly of mechanical and plastic parts.Exhibit 10.12

 

Garching Lease Agreement

(English Language Summary)

 

	
  Name of Lease:

  	
   

  	
  Mietvertrag
  für gewerbliche Räume

  
	
   

  	
   

  	
   

  
	
  Parties to Lease:

  	
   

  	
  Stieber GmbH
and

  Schmidt Lacke GmbH

  
	
   

  	
   

  	
   

  
	
  Date of Lease:

  	
   

  	
  August 5,
  1981

  
	
   

  	
   

  	
   

  
	
  Termination Date of Lease:

  	
   

  	
  December 31, 2006

  
	
   

  	
   

  	
   

  
	
  Location/ Property Leased:

  	
   

  	
  Dieselstrabe
  14

  85748 Garching

  Germany

  
	
   

  	
   

  	
   

  
	
  Size of Space:

  	
   

  	
  34,944 Sq.
  Ft

  
	
   

  	
   

  	
   

  
	
  Payments:

  	
   

  	
  $25,839 per month

  
	
   

  	
   

  	
   

  
	
  Right to Terminate:

  	
   

  	
  Either party
  may terminate on 12 months notice prior to the end of a calendar year.

  
	
   

  	
   

  	
   

  
	
  Option to Extend:

  	
   

  	
  None listed.

  
	
   

  	
   

  	
   

  
	
  Transfer or Assignment:

  	
   

  	
  No right to transfer or
  assign.

  
	
   

  	
   

  	
   

  
	
  Uses allowed:

  	
   

  	
  Production
  of industrial products and operation of a warehouse.Exhibit 10.13

 

Heidelberg Lease Agreement

(English Language Summary)

 

	
  Name of Lease:

  	
   

  	
  Immobilien
  Mietvertrag (Object 1, Object 2)

  
	
   

  	
   

  	
   

  
	
  Parties to Lease:

  	
   

  	
  Stieber GmbH
and

  Carola Grundstücksverwaltungsgesellschft GmbH

  
	
   

  	
   

  	
   

  
	
  Date of Lease:

  	
   

  	
  December 21,
  1984

  
	
   

  	
   

  	
   

  
	
  Termination Date of Lease:

  	
   

  	
  December 31, 2013

  
	
   

  	
   

  	
   

  
	
  Location/ Property Leased:

  	
   

  	
  Hatschekstrabe
  36

  69126 Heidelberg

  Germany

  
	
   

  	
   

  	
   

  
	
  Size of Space:

  	
   

  	
  49,249 Sq.
  Ft.

  
	
   

  	
   

  	
   

  
	
  Payments:

  	
   

  	
  $14,635 per month

  
	
   

  	
   

  	
   

  
	
  Right to Terminate:

  	
   

  	
  None, other than breach of
  agreement.

  
	
   

  	
   

  	
   

  
	
  Option to Extend:

  	
   

  	
  May be extended upon
  the agreement of the parties.

  
	
   

  	
   

  	
   

  
	
  Transfer or Assignment:

  	
   

  	
  No right to transfer or
  assign.

  
	
   

  	
   

  	
   

  
	
  Uses allowed:

  	
   

  	
  Production
  of industrial products and operation of a warehouse.

  
	
   

  	
   

  	
   

  
	
  Additional Terms:

  	
   

  	
  Mr Bohnenstiel
  and/or Mr. Bandel (former owners of Stieber GmbH) have an option to buy
  Carola Grundstücksverwaltungs Gmbh which may only be exercised in the
  calendar year 2005.Exhibit 10.14

 

EMPLOYMENT
AGREEMENT

 

THIS EMPLOYMENT AGREEMENT
(this “Agreement”), dated as of January 6,
2005 (the “Effective Date”), is entered into
among Altra Holdings, Inc., a Delaware corporation (“Holdings”),
Altra Industrial Motion, Inc., a Delaware corporation and wholly-owned
subsidiary of Holdings (the “Company”), and Michael
L. Hurt (“Executive”).  Certain capitalized terms used in this
Agreement are defined in Section 12 hereof.

 

Holdings, the Company and
Executive desire to enter into this agreement relating to Executive’s
employment by the Company.

 

The parties hereto agree
as follows:

 

1.                                       Employment.
The Company shall employ Executive, and Executive hereby agrees to be employed
by the Company, upon the terms and conditions set forth in this Agreement for
the period beginning on the Effective Date and ending as provided in Section 3
hereof (the “Employment Period”).

 

2.                                       Position
and Duties.

 

(a)                                  Position.
During the Employment Period, Executive shall serve as the Chief Executive
Officer of the Company and in such capacity shall have the duties,
responsibilities and authority that are normally associated with such office,
subject to the direction and supervision of the Board.

 

(b)                                 Duties.
Executive shall report to the Board, and Executive shall devote substantially
all of his business time and attention (except for permitted vacation periods
and periods of illness or incapacity and other activities approved by the Board
from time to time) to the business and affairs of the Company and its Subsidiaries.

 

3.                                       Termination.  The Employment Period shall terminate on the third
anniversary of the Effective Date.  The
date on which the Employment Period terminates after any notice of non-renewal
is referred to herein as the “Expiration Date.”  Notwithstanding the foregoing, the Company
and Executive agree that Executive is an “at-will” employee, subject only to
the contractual rights upon termination set forth herein, and that the
Employment Period (a) shall terminate automatically at any time upon
Executive’s death, (b) shall terminate automatically at any time upon the
Board’s determination of Executive’s Disability, (c) may be terminated by
the Company at any time for any reason or no reason (whether for Cause or
without Cause) by giving Executive written notice of the termination, and (d) may
be terminated by Executive for any reason or no reason (including for Good
Reason) by giving the Company written notice at least 60 days in advance of his
termination date.  Notwithstanding
anything herein to the contrary, in no event shall delivery of a notice of
non-renewal by the Company be deemed a termination without Cause.  The date that the Employment Period is
terminated for any reason is referred to herein as the “Termination
Date.”

 

 

4.                                       Base
Salary and Benefits.

 

(a)                                  Base
Salary.  During the Employment
Period, Executive’s base salary shall be $350,000 per year (the “Base Salary”). The Base Salary shall be reviewed
annually.  The Base Salary shall not be
reduced prior to the Expiration Date, and after any increase of such Base
Salary approved by the Board, the term “Base Salary” in this Agreement shall
refer to the Base Salary as so increased. 
The Base Salary shall be payable in regular installments in accordance
with the Company’s general payroll practices.

 

(b)                                 Performance
Bonus.  In addition to the Base
Salary, Executive shall be eligible for an annual incentive bonus payment of up
to 60% of his Base Salary (a “Performance Bonus”),
in accordance with the Company’s bonus performance plan approved by the Board
in its sole discretion.  Executive shall
only be eligible to receive a Performance Bonus at the end of such fiscal year
if Executive remains employed by the Company through the last day of such fiscal year.

 

(c)                                  Expenses.  The Company will reimburse Executive for all
reasonable travel and other business expenses incurred by Executive during the
Employment Period in connection with the performance of his duties and
obligations under this Agreement, subject to Executive’s compliance with such
limitations and reporting requirements with respect to expenses as may be
established by the Company from time to time.

 

(d)                                 Other
Benefits.  During the Employment
Period, Executive will be entitled to participate in all compensation or
employee benefit plans or programs and receive all benefits and perquisites for
which salaried employees of the Company generally are eligible under any plan
or program now or established later by the Company on the same basis as other
senior executives of the Company. 
Nothing in this Agreement will preclude the Company from amending or
terminating any of the plans or programs applicable to salaried employees or
senior executives as long as such amendment or termination is applicable to all
salaried employees or all senior executives, as the case may be. Executive
shall be entitled to six weeks of paid vacation each year, which may be taken
in accordance with the Company’s vacation policy.

 

(e)                                  Directorships.  Each of the Company and Holdings shall take
all actions necessary to elect the Executive to the Board and the Board of
Directors of Holdings and to maintain the Executive’s position as a director
during the Employment Period.

 

(f)                                    Indemnification.  To the fullest extent permitted by law and
the certificate of incorporation of the Company, the Executive (and his heirs,
executors and administrators) shall be indemnified by the Company and its
successors and assigns.  The obligations
of the Company pursuant to this Section shall survive the termination of
the Employment Period.

 

5.                                       Severance.

 

(a)                                  Termination
without Cause or for Good Reason. 
If, prior to the Expiration Date, the Employment Period is terminated by
the Company without Cause or by the Executive for Good Reason, (i) Executive
shall be entitled to receive for the Severance Period (A) his annual Base
Salary as in effect immediately prior to the Termination Date paid in the same

 

2

 

manner and in the same installments as previously paid
and (B) to the extent permitted by such plans as in effect on the
Termination Date, at the Company’s expense the continuation of medical and
dental benefits through the Severance Period and (ii) Executive (or his
estate) shall be entitled to receive (A) all earned or accrued but unpaid
Base Salary, reimbursement of expenses and any other benefits to which
Executive is entitled through the Termination Date, (B) any Performance
Bonus that was earned, but not paid, as of the Termination Date, and (C) all
amounts or benefits to which Executive is entitled under any applicable
employee-benefit plan or arrangement of the Company in which Executive was a
participant during his employment with the Company, in accordance with the
terms of such plan or arrangement.  When
used herein, the “Severance Period”
means the 12-month period from and after the Termination Date.  The Company’s obligations under this Section 5(a) shall
be subject to the condition that Executive deliver a complete release in favor
of Holdings and the Company and their respective Subsidiaries, affiliates, officers,
directors, employees, principals and attorneys, in form and substance
satisfactory to Holdings and the Company.

 

(b)                                 Death
or Disability.  In the event of the
death or Disability of Executive during the Employment Period, the Company’s
obligation to make payments or provide any other benefits under this Agreement
shall cease as of the date of death or Disability of Executive; provided
that Executive (or his estate) shall be entitled to receive (i) all earned
or accrued but unpaid Base Salary, reimbursement of expenses and any other
benefits to which Executive is entitled through the Termination Date, (ii) any
Performance Bonus that was earned, but not paid, as of the Termination Date,
and (iii) all amounts or benefits to which Executive is entitled under any
applicable employee-benefit plan or arrangement of the Company in which
Executive was a participant during his employment with the Company, in
accordance with the terms of such plan or arrangement.

 

(c)                                  Other
Termination. If the Employment Period is terminated by the Company for
Cause or by Executive for any reason other than Good Reason, Executive shall
not be entitled to any severance payments and all of Executive’s benefits shall
cease to be effective immediately as of the Termination Date (except as
required by law). All of Executive’s rights to fringe benefits and bonuses
hereunder (if any) which accrue or become payable after the termination of the
Employment Period shall cease upon such termination; provided that
Executive (or his estate) shall be entitled to receive (x) all earned or
accrued but unpaid Base Salary, reimbursement of expenses and any other
benefits to which Executive is entitled through the Termination Date, (y) any
Performance Bonus that was earned, but not paid, as of the Termination Date,
and (z) all amounts or benefits to which Executive is entitled under any
applicable employee-benefit plan or arrangement of the Company in which
Executive was a participant during his employment with the Company, in accordance
with the terms of such plan or arrangement.

 

(d)                                 Other
Benefits.  Except as required by law
or as specifically provided in this Section 5, the Company’s
obligation to make any payments or provide any other benefits hereunder shall
terminate automatically as of the Termination Date.

 

3

 

(e)                                  Termination
of Severance.  If Executive breaches
any of the provisions of Sections 6 through 9 hereof, the Company
shall no longer be obligated to make any additional payments or provide any
other benefits pursuant to this Section 5.

 

6.                                       Confidential
Information. Executive acknowledges that the information, observations and
data (including without limitation trade secrets, know-how, research plans,
business, accounting, distribution and sales methods and systems, sales and
profit figures and margins and other technical or business information,
business, marketing and sales plans and strategies, cost and pricing
structures, and information concerning acquisition opportunities and targets
nationwide in or reasonably related to any business or industry in which any of
Holdings or the Company or their respective Subsidiaries is engaged) disclosed
or otherwise revealed to him, or discovered or otherwise obtained by him or of
which he becomes aware, directly or indirectly, while employed by the Company
or its Subsidiaries (including, in each case, those obtained prior to the date
of this Agreement) concerning the business or affairs of Holdings or the
Company or any of their respective Subsidiaries (collectively, “Confidential Information”) are the property of Holdings or
the Company or their respective Subsidiaries, as the case may be, and agrees
that Holdings and Company have a protectable interest in such Confidential
Information.  Therefore, Executive agrees
that he shall not (during his employment with the Company or at any time
thereafter) disclose to any unauthorized person or use for his own purposes any
Confidential Information without the prior written consent of the Board, unless
and to the extent that the aforementioned matters: (a) become or are
generally known to and available for use by the public other than as a result
of Executive’s acts or omissions or (b) are required to be disclosed by
judicial process or law (provided that Executive shall give prompt advance
written notice of such requirement to the Company to enable the Company to seek
an appropriate protective order or confidential treatment).  Executive shall deliver to the Company at the
termination of the Employment Period, or at any other time the Company may
request, all memoranda, notes, plans, records, reports, computer tapes,
printouts and software and other documents and data (and copies thereof) which
constitute Confidential Information or Work Product (as defined below) which he
may then possess or have under his control.

 

7.                                       Work
Product.  Executive hereby assigns to
the Company all right, title and interest in and to all inventions,
developments, methods, process, designs, analyses, reports and all similar or
related information (in each case whether or not patentable), all copyrightable
works, all trade secrets, confidential information and know-how, and all other
intellectual property rights that both (a) are conceived, reduced to
practice, developed or made by Executive while employed by the Company and its
Subsidiaries and (b) either (i) relate to the Company’s or any of its
Subsidiaries’ actual or anticipated business, research and development or
existing or future products or services, or (ii) are conceived, reduced to
practice, developed or made using any of equipment, supplies, facilities,
assets or resources of the Company or any of its Subsidiaries (including but
not limited to, any intellectual property rights) (“Work Product”).
Executive shall promptly disclose such Work Product to the Board and perform
all actions reasonably requested by the Board (whether during or after the
Employment Period) to establish and confirm the Company’s ownership of the Work
Product (including, without limitation, executing and delivering assignments,
consents, powers of attorney, applications and other instruments).

 

4

 

8.                                       Noncompetition.  In further consideration of the compensation
to be paid to Executive hereunder, Executive acknowledges that in the course of
his employment with the Company and its Subsidiaries he has become and shall
become familiar with the Company’s trade secrets and with other Confidential
Information concerning the Company and its Subsidiaries and that his services
have been and shall be of special, unique and extraordinary value to the
Company and its Subsidiaries. Therefore, Executive agrees that, during the
period of Executive’s employment with the Company and for 12 months thereafter
(the “Noncompete Period”), he shall not,
without prior written approval by the Board, directly or indirectly (whether
for compensation or otherwise) own or hold any interest in, manage, operate,
control, consult with, render services for, or in any manner participate in any
business which competes with the businesses of the Company or its Subsidiaries
conducted or proposed to be conducted during the Employment Period
(collectively, the “Business”),
either as a general or limited partner, proprietor, common or preferred
shareholder, officer, director, agent, employee, consultant, trustee, affiliate
or otherwise.  Executive acknowledges
that the Company’s and its Subsidiaries’ businesses are planned to be conducted
nationally and internationally and agrees that the provisions in this Section 8
shall operate in the market areas of the United States and outside the United
States in which the Company conducts or plans to conduct business on and prior
to the Termination Date.  Nothing in this
Section 8 shall prohibit Executive from being a passive owner of
not more than 2% of the outstanding securities of any publicly traded company
engaged in the Business, so long as Executive has no active participation in
the business of such company.

 

9.                                       Non-Solicitation.  During the Noncompete Period, Executive shall
not directly or indirectly through another entity (i) induce or attempt to
induce any employee of the Company or any Subsidiary to leave the employ of the
Company or such Subsidiary, or in any way interfere with the relationship
between the Company or any Subsidiary and any employee thereof, (ii) solicit
to hire any person who was an employee of the Company or any Subsidiary at any
time during the 12 months preceding the termination of the Employment Period or
(iii) induce or attempt to induce any customer, developer, client, member,
supplier, licensee, licensor, franchisee or other business relation of the
Company or any Subsidiary to cease doing business with the Company or such
Subsidiary, or in any way interfere with the relationship between any such
customer, developer, client, member, supplier, licensee, licensor, franchisee
or business relation and the Company or any Subsidiary (including, without
limitation, making any negative statements or communications about the Company
or its Subsidiaries).

 

10.                                 Enforcement.  If, at the time of enforcement of any of Sections
6 through 9, a court of competent jurisdiction shall hold that the
period, scope or area restrictions stated herein are unreasonable under
circumstances then existing, the parties hereto agree that the maximum period,
scope or area reasonable under such circumstances shall be substituted for the
stated period, scope or area and that the court shall be allowed and directed
to revise the restrictions contained herein to cover the maximum period, scope
and area permitted by applicable law.  The parties hereto acknowledge and
agree that Executive’s services are unique and he has access to Confidential
Information and Work Product, that the provisions of Sections 6
through 9 are necessary, reasonable and appropriate for the protection
of the legitimate business interests of Holdings and the Company and their
respective Subsidiaries, that irreparable injury will result to Holdings and
the Company and their respective Subsidiaries if Executive breaches any of the

 

5

 

provisions of Sections 6 through 9
and that money damages would not be an adequate remedy for any breach by
Executive of this Agreement and that neither Holdings nor the Company will have
any adequate remedy at law for any such breach. 
Therefore, in the event of a breach or threatened breach of this
Agreement, Holdings or the Company or any of their successors or assigns, in
addition to other rights and remedies existing in their favor, shall be
entitled to specific performance and/or immediate injunctive or other equitable
relief from any court of competent jurisdiction in order to enforce or prevent
any violations of the provisions hereof (without the necessity of showing
actual money damages, or posting a bond or other security).  Nothing contained herein shall be construed
as prohibiting Holdings or the Company or any of their successors or assigns
from pursuing any other remedies available to it for such breach or threatened
breach, including the recovery of damages.

 

11.                                 Executive’s
Representations and Acknowledgements. 
Executive hereby represents and warrants to Holdings and the Company
that (i) the execution, delivery and performance of this Agreement by
Executive do not and shall not conflict with, breach, violate or cause a
default under any contract, agreement, instrument, order, judgment or decree to
which Executive is a party or by which he is bound, (ii) Executive is not
a party to or bound by any employment agreement, noncompete agreement or
confidentiality agreement with any other Person, other than a noncompete
agreement with TB Wood’s Incorporated, (iii) Executive shall not use any
confidential information or trade secrets of any third party in connection with
the performance of his duties hereunder, and (iv) this Agreement
constitutes the valid and binding obligation of Executive, enforceable against
Executive in accordance with its terms. 
Executive hereby acknowledges and represents that he has consulted with
independent legal counsel regarding his rights and obligations under this
Agreement and that he fully understands the terms and conditions contained
herein and intends for such terms and conditions to be binding on and
enforceable against Executive.  Executive
acknowledges and agrees that the provisions of Sections 6 through 9
are in consideration of: (i) Genstar’s commitment to invest in Holdings; (ii) Executive’s
employment by the Company; and (iii) additional good and valuable
consideration as set forth in this Agreement, the receipt and sufficiency of
which are hereby acknowledged.  Executive
expressly agrees and acknowledges that the restrictions contained in Sections
6 through 9 do not preclude Executive from earning a livelihood, nor
do they unreasonably impose limitations on Executive’s ability to earn a
living. In addition, Executive agrees and acknowledges that the potential harm
to the Company of its non-enforcement outweighs any harm to Executive of its
enforcement by injunction or otherwise. Executive acknowledges that he has
carefully read this Agreement and has given careful consideration to the
restraints imposed upon Executive by this Agreement, and is in full accord as
to their necessity for the reasonable and proper protection of the Confidential
Information. Executive expressly acknowledges and agrees that each and every
restraint imposed by this Agreement is reasonable with respect to subject
matter, time period and geographical area.

 

12.                                 Definitions.

 

“Affiliate”
means, with respect to any Person, any Person controlling, controlled by or
under common control with such Person.

 

“Board”
means, the Board of Directors of the Company.

 

6

 

“Cause”
means (i) Executive’s material breach of the terms of any agreement
between Executive and Holdings or the Company; (ii) Executive’s willful
failure or refusal to perform material duties as Chief Executive Officer; (iii) Executive’s
willful insubordination or disregard of the legal directives of the Board which
are not inconsistent with the scope, ethics and nature of Executive’s duties
and responsibilities; (iv) Executive’s engaging in misconduct which has a
material adverse impact on the reputation, business, business relationships or
financial condition of Holdings or the Company; (v) Executive’s commission
of an act of fraud or embezzlement against Holdings or the Company or any of
their Subsidiaries; or (vi) any conviction of, or plea of guilty or nolo
contendere by, Executive with respect to a felony (other than a traffic
violation), a crime involving moral turpitude, fraud or misrepresentation;
provided, however, that Cause shall not be deemed to exist under any of clauses
(i), (ii) or (iii) unless Executive has been given reasonably detailed
written notice of the grounds for such Cause and Executive has not effected a
cure within twenty (20) days of the date of receipt of such notice.

 

“Disability”
means a determination by independent competent medical authority (selected by
the Board) that Executive is unable to perform his duties under this Agreement
and in all reasonable medical likelihood such inability will continue for a
period in excess of 120 days (whether or not consecutive) in any 365 day
period.

 

“Genstar”
means Genstar Capital, L.P. and each of its Affiliates.

 

“Good Reason”
means any of the following: (i) without Executive’s express written
consent, any change in Executives job title, any change in Executive’s
reporting relationships or a significant reduction of Executive’s duties,
position or responsibilities relative to Executive’s duties, position or
responsibilities in effect immediately prior to such reduction, or Executive’s
removal from such position, duties and responsibilities, unless he is provided
with comparable duties, position and responsibilities; (ii) a material
reduction by the Company in the kind or level of employee benefits to which he
is entitled immediately prior to such reduction with the result that Executive’s
overall benefits package is significantly reduced; or (iii) the Company’s
failure to cause Executive’s employment agreement and its obligations
thereunder to be expressly assumed by the Company’s successor.

 

“Person”
means an individual, a partnership, a limited liability company, a corporation,
an association, a joint stock company, a trust, a joint venture, an
unincorporated organization and a governmental entity or any department, agency
or political subdivision thereof.

 

“Subsidiary”
means, with respect to any Person, any corporation, limited liability company,
partnership, association or business entity of which (i) if a corporation,
a majority of the total voting power of shares of stock entitled (without
regard to the occurrence of any contingency) to vote in the election of
directors, managers or trustees thereof is at the time owned or controlled,
directly or indirectly, by that Person or one or more of the other Subsidiaries
of that Person or a combination thereof or (ii) if a limited liability
company, partnership, association or other business entity (other than a
corporation), a majority of partnership or other similar ownership interest
thereof is at the time owned or controlled, directly or indirectly, by any
Person or one or more Subsidiaries of that Person or a combination thereof.

 

7

 

For purposes
hereof, a Person or Persons shall be deemed to have a majority ownership
interest in a limited liability company, partnership, association or other
business entity (other than a corporation) if such Person or Persons shall be
allocated a majority of limited liability company, partnership, association or
other business entity gains or losses or shall be or control any managing
director or general partner of such limited liability company, partnership,
association or other business entity. 
For purposes hereof, references to a “Subsidiary” of any Person shall be
given effect only at such times that such Person has one or more Subsidiaries,
and, unless otherwise indicated, the term “Subsidiary” refers to a Subsidiary
of the Company.

 

13.                                 Notices.  Any notice provided for in this Agreement
must be in writing and must be either personally delivered, mailed by first
class mail (postage prepaid and return receipt requested), sent by reputable
overnight courier service (charges prepaid), or faxed to the recipient at the
address below indicated:

 

	
   

  	
  To Holdings:

  
	
   

  	
   

  
	
   

  	
  Altra Holdings, Inc.

  
	
   

  	
  c/o Genstar Capital, L.P.

  
	
   

  	
  Four Embarcadero Center, Suite 1900

  
	
   

  	
  San Francisco, CA 94111-4191

  
	
   

  	
  Attention:

  	
  Jean-Pierre L. Conte

  
	
   

  	
  Telecopy No.:

  	
  (415) 834-2383

  
	
   

  	
   

  
	
   

  	
  To the Company:

  
	
   

  	
   

  
	
   

  	
  Altra Industrial Motion, Inc.

  
	
   

  	
  c/o Genstar Capital, L.P.

  
	
   

  	
  Four Embarcadero Center, Suite 1900

  
	
   

  	
  San Francisco, CA 94111-4191

  
	
   

  	
  Attention:

  	
  Jean-Pierre L. Conte

  
	
   

  	
  Telecopy No.:

  	
  (415) 834-2383

  
	
   

  	
   

  
	
   

  	
  To Executive:

  
	
   

  	
   

  
	
   

  	
  Michael L. Hurt

  
	
   

  	
  58 Cornertown Road

  
	
   

  	
  Chambersburg, PA 17201

  
	
   

  	
  Tel: (717) 267-3904

  

 

or such other address or
to the attention of such other person as the recipient party shall have
specified by prior written notice to the sending party. Any notice under this
Agreement shall be deemed to have been given when personally delivered, one
business day after sent by reputable overnight courier service, five days after
deposit in the U.S. mail (or when actually received, if earlier), or at such
time as it is transmitted via facsimile, with receipt confirmed.

 

8

 

14.                                 General
Provisions.

 

(a)                                  Expenses.  The Company, Holdings and Executive will each
pay their own costs and expenses incurred in connection with the negotiation
and execution of this Agreement and the agreements contemplated hereby.

 

(b)                                 Severability.  Whenever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid
under applicable law, but if any provision of this Agreement is held to be
invalid, illegal or unenforceable in any respect under any applicable law or rule in
any jurisdiction, such invalidity, illegality or unenforceability shall not
affect any other provision or any other jurisdiction, but this Agreement shall
be reformed, construed and enforced in such jurisdiction as if such invalid,
illegal or unenforceable provision had never been contained herein.

 

(c)                                  Complete
Agreement. This Agreement, those documents expressly referred to herein and
other documents of even date herewith embody the complete agreement and
understanding among the parties and supersede and preempt any prior
understandings, agreements or representations by or among the parties, written
or oral, which may have related to the subject matter hereof in any way.

 

(d)                                 Counterparts.
This Agreement may be executed in separate counterparts, each of which is
deemed to be an original and all of which taken together constitute one and the
same agreement.

 

(e)                                  Successors
and Assigns.  Except as otherwise
provided herein, this Agreement shall bind and inure to the benefit of and be
enforceable by Executive, Holdings, the Company, Genstar and their respective
successors and assigns, including any entity with which the Company may merge
or consolidate or to which all or substantially all of its assets may be
transferred; provided that the rights and obligations of Executive under
this Agreement shall not be assignable.

 

(f)                                    Governing
Law.  All issues and questions concerning
the construction, validity, enforcement and interpretation of this Agreement
and the exhibits and schedules hereto shall be governed by, and construed in
accordance with, the laws of the State of New York, without giving effect to
any choice of law or conflict of law rules or provisions (whether of the
State of New York or any other jurisdiction) that would cause the application
of the laws of any jurisdiction other than the State of New York.

 

(g)                                 Remedies.
Each of the parties to this Agreement shall be entitled to enforce his or its
rights under this Agreement specifically, to recover damages and costs
(including reasonable attorney’s fees) caused by any breach of any provision of
this Agreement and to exercise all other rights existing in its favor. The
parties hereto agree and acknowledge that money damages would not be an
adequate remedy for any breach of the provisions of this Agreement and that any
party may in its sole discretion apply to any court of law or equity of
competent jurisdiction (without posting any bond or deposit) for specific
performance and/or other injunctive relief in order to enforce or prevent any
violations of the provisions of this Agreement.

 

9

 

(h)                                 Amendment
and Waiver.  The provisions of this
Agreement may be amended and waived only with the prior written consent of the
Company, Holdings and Executive.

 

(i)                                     Business
Days. If any time period for giving notice or taking action hereunder
expires on a day which is a Saturday, Sunday or legal holiday in the state in
which the Company’s chief executive office is located, the time period shall be
automatically extended to the business day immediately following such Saturday,
Sunday or holiday.

 

(j)                                     No
Strict Construction.  The language
used in this Agreement shall be deemed to be the language chosen by the parties
hereto to express their mutual intent, and no rule of strict construction
shall be applied against any party.

 

*     *    
*     *

 

10

 

IN WITNESS WHEREOF, the
parties hereto have executed this Agreement on the date first written above.

 

 

	
   

  	
  ALTRA
  INDUSTRIAL MOTION, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:
  Jean-Pierre L. Conte

  	
   

  
	
   

  	
  Title:
  Chairman of the Board

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ALTRA
  HOLDINGS, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:
  Jean-Pierre L. Conte

  	
   

  
	
   

  	
  Title:
  Chairman of the Board

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Michael
  L. Hurt

  	
   

  

 

 

[M. Hurt Employment Agreement Signature Page]

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