Document:

Exhibit 10.10

 

AGR-I9631

 

SPONSORBD RESEARCH AGREEMENT

 

This Sponsored Research Agreement (“Agreement”)
is made by and between Icahn School of Medicine at Mount Sinai, a not-for-profit education corporation organized and existing under
the laws of the State of New York, having a principal place of business at One Gustave L. Levy Place, New York, New York 10029
(“Mount Sinai”), and SteriLumen, LLC, a limited liability company organized and existing under the laws of the
State of New York, having a principal place of business at 150 North Macquesten Pkwy, Mount Vernon, NY 10550 (“Sponsor”).
Mount Sinai and the Sponsor are each referred to herein as a “Party” and collectively as the “Parties”.

 

This Agreement is effective as of
April 20, 2020 (“Effective Date”).

 

RECITALS

 

WHEREAS, Sponsor desires to fund the Sponsored
Research (as defined below), such research to be conducted by Mount Sinai substantially in accordance with the terms and conditions
of this Agreement; and

 

WHEREAS, the Sponsored Research is of mutual
interest to Sponsor and Mount Sinai and furthers the scholarly, educational, and research objectives of Mount Sinai for the improvement
of the public health, as a nonprofit, tax-exempt educational institution, and may potentially benefit both Sponsor and Mount Sinai
through, inter alia, the creation or discovery of new inventions or the improvement of existing technologies.

 

NOW, THEREFORE, in consideration of the
mutual benefits to be derived hereunder, and intending to be legally bound, the Parties agree as follows:

 

1          DEFINITIONS

 

1.1       “Conceived”
means conceived as defined by U.S. patent law.

 

1.2        “Patent
Rights” means: (i) United States and foreign patents and/or patent applications; (ii) any and all patents issuing from
the foregoing; (iii) any and all claims of continuation-in-part applications that claim priority to such United States patent applications,
but only where such claims are directed to inventions disclosed in the manner provided in the first paragraph of 35 U.S.C. §
112 in such United States patent applications, and such claims in any patents issuing from such continuation-in-part applications;
(iv) any and all foreign patent applications, foreign patents, or related foreign patent documents that claim priority to such
patents and/or patent applications; and (v) any and all divisionals, continuations, reissues, re-examinations, renewals, substitutions,
and extensions of the foregoing.

 

1.3       “Principal
Investigator” means Richard Vincent, who has agreed to serve as Principal Investigator for the Sponsored Research and
will be responsible for the administration and supervision of the Sponsored Research, or any successor named by Mount Sinai in
accordance with Section 2.2.

 

1.4       “Sponsored
Research,” means the research program described in Attachment A to this Agreement, as may be amended from time
to time upon mutual written agreement of the Parties.

 

1.5       “Sponsored
Research Intellectual Property” means all technical information, inventions, developments, discoveries, copyrights and
copyrightable works (including computer programs) and registrations and applications therefor, know-how, methods, techniques, formulae,
processes, and all other forms of intellectual property, including waivable or assignable rights of publicity or moral rights,
and any right to bring suit or collect damages for the infringement, misappropriation or violation of the foregoing, whether or
not patentable, that are first Conceived and reduced to practice (or in the event of copyrightable matter, when first fixed in
tangible form) in the conduct of the Sponsored Research during the Term by the Principal Investigator and/or those working under
his/her direction, or other inventors owing a duty to assign to Mount Sinai, and all Patent Rights, or other intellectual property
rights therein.

 

     

     

    

 

1.6       “Term”
has the meaning assigned in Section 3.1.

 

2          SPONSORED
RESEARCH

 

2.1       Mount
Sinai shall commence the Sponsored Research promptly after the Effective Date, provided that any payments and materials due from
Sponsor have been received by Mount Sinai. Mount Sinai shall use reasonable best efforts to conduct such Sponsored Research substantially
in accordance with the terms and conditions of this Agreement. Sponsor acknowledges that Mount Sinai will have the freedom to conduct
and supervise the Sponsored Research in a manner consistent with Mount Sinai’s educational and research missions. Mount Sinai
does not guarantee that any Patent Rights shall result from the Sponsored Research, that the scope of any Patent Rights that may
result shall cover Sponsor’s commercial interest, or that any such Patent Rights shall be free of dominance by other patents,
including patents based upon inventions developed by inventors at Mount Sinai independently of the Sponsored Research. Furthermore,
Mount Sinai makes no representations as to the commercial or scientific value of any results achieved through the Sponsored Research.

 

2.2       If
the Principal Investigator becomes unavailable to fulfill his/her role with respect to the Sponsored Research for any reason, Mount
Sinai will be entitled to designate another member of its faculty who is acceptable to both Parties to serve as the Principal Investigator
of the Sponsored Research. If an acceptable substitute Principal Investigator has not been designated within sixty (60) days after
the original Principal Investigator ceases his or her activities under this Agreement, either Party may terminate this Agreement
upon written notice thereof to the other Party, subject to the provisions of Article 10. Termination of this Agreement in such
event shall not be considered a termination for breach.

 

3          TERM
OF AGREEMENT

 

3.1       The
term of this Agreement (the “Term”) will begin on the Effective Date of this Agreement and will end on April
30,2021, unless terminated earlier pursuant to Section 10.1. The Term may be extended only by mutual written agreement signed by
the Parties.

 

4          PAYMENT
OF COSTS

 

4.1       Sponsor
shall pay for all direct and indirect costs incurred in the conduct of the Sponsored Research in an amount totaling One Hundred
Sixty Thousand US Dollars ($160,000 USD), inclusive of all indirect costs. The budget is attached hereto as Attachment B,
which is incorporated herein by reference and made a part of this Agreement. Additionally, Sponsor agrees to cover all the cost
of microbiological testing necessary to the conduct of the Study. Further, Sponsor agrees to provide at no cost to Mount Sinai
l7 sink and drain Sterilumen disinfection units for use in the Study, as well as the cost of installation and cost if necessary
for removal after completion of the study, should Mount Sinai request removal.

 

4.2       Sponsor
acknowledges that the total amount set forth in Section 4.1 is a good faith estimate only and not a guarantee of the cost to conduct
the Sponsored Research. If after using reasonable efforts, at any time Mount Sinai determines that it will require additional funds
to conduct the Sponsored Research, Mount Sinai will notify Sponsor and provide a reasonable explanation of the additional funds
required with an estimate of such additional amount. Sponsor will not be liable for any costs in excess of the amount set forth
in Attachment B unless it has agreed in writing to provide additional funds. However, Mount Sinai will not be required to
conduct any Sponsored Research covered by such additional funds until Sponsor so agrees.

 

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4.3       Sponsor
shall make all payments under this Agreement in advance to Mount Sinai in accordance with the payment schedule set forth in Attachment
B. Sponsor shall make all such payments to Mount Sinai by wire transfer to the following account:

 

Bank Name: JPMorgan
Chase Manhattan Bank

Account #: 20000011127650

Account Name:
Icahn School of Medicine at Mount Sinai

ABA # (routing):
021000021

IBAN #: CHASUS33
(For International Transfers)

Bank Contact Person:
Elaine Martinez

Telephone: 718-242-0173

Fax: 866-426-9083

Address: 4 New
York Plaza, 15th Floor, New York, NY 10004

 

4.4       Title
to any equipment, laboratory animals, or any other materials made or acquired with funds provided under this Agreement shall vest
in Mount Sinai, and such equipment, laboratory animals, or materials shall remain the property of Mount Sinai following the expiration
or termination of this Agreement.

 

5          RECORDS,
REPORTS, AND SUCCESS FEE

 

5.1       Principal
Investigator will maintain records of the results of the Sponsored Research and will provide Sponsor with reports of the progress
and results of the Sponsored Research periodically as results become available to the Principal lnvestigator. Sponsor shall maintain
and protect as Confidential Information in accordance with Article 8 such reports and any other Sponsored Research data and results
disclosed to Sponsor (whether oral or written), including the final report delivered to Sponsor upon the conclusion of the Sponsored
Research even if such delivery occurs after the expiration of the Term (collectively such reports and all of such data and information
referenced in this Section 5.1 is referred to as, “Results”), and shall be entitled to use the Results nonexclusively
for any lawful purposes, provided the Results are accorded confidential treatment pursuant to Article 8 herein. Once Principal
Investigator has published the results of the Sponsored Research in accordance with Article 9, the Results to the extent disclosed
in such publication shall no longer be subject to confidentiality obligations.

 

5.2       In
the event the Results are used by Sponsor in a (a) successful regulatory filing or (b) for the purposes of fund raising where such
fund raising effort is successful (each of (a) and (b), a “Success Event”), then Sponsor agrees to pay to Mount Sinai
a one-time fee of Thirty Thousand Dollars ($30,000 USD) due within forty-five (45) days of such Success Event.

 

6          INTELLECTUAL
PROPERTY

 

6.1       lnventorship
of Sponsored Research lntellectual Property shall be determined in accordance with inventorship principles of U.S. patent law,
and ownership will follow inventorship. Therefore, Sponsored Research Intellectual Property Conceived solely by Mount Sinai will
belong solely to Mount Sinai; Sponsored Research Intellectual Property Conceived solely by Sponsor will belong solely to Sponsor;
Sponsored Research Intellectual Property Conceived jointly by Sponsor and Mount Sinai shall be owned jointly by Sponsor and Mount
Sinai.

 

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6.2       Mount Sinai’s technology and
business development office, Mount Sinai Innovation Partners (“MSIP”), will provide Sponsor a confidential written
disclosure of any Sponsored Research Intellectual Property it develops or jointly develops that may be reasonably considered patentable
(“Invention Notice”), after MSIP’s receipt of such disclosure from the Principal Investigator. No later
than forty-five (45) days after receipt of any Invention Notice, Sponsor shall notify Mount Sinai in writing if it requests Mount
Sinai to file and prosecute patent applications claiming any Sponsored Research Intellectual Property disclosed in the Invention
Notice. If, within said forty-five (45) day period, Mount Sinai has not received from Sponsor a request to file and prosecute patent
applications with respect to any Sponsored Research Intellectual Property, Mount Sinai may proceed with the filing and prosecution
of patent applications covering such Sponsored Research Intellectual Property at its own cost and expense, and the resulting Patent
Rights will be excluded from Sponsor’s option under Article 7. For clarity, an Invention Notice shall be separate and distinct
from reports provided under Section 5.1. Each Invention Notice shall be deemed Confidential Information subject to Article 8.

 

6.3       Mount
Sinai will control the preparation, prosecution, and maintenance, and registration of all Patent Rights that cover Institution
rights in Sponsored Research Intellectual Property. Sponsor will reimburse Mount Sinai within sixty (60) days of receipt of invoice
for all documented expenses incurred in connection with the preparation, prosecution, and maintenance of the Patent Rights that
Sponsor has requested Mount Sinai to prosecute under Section 6.2 (such expenses, the “Patent Expenses”).

 

6.4       Mount
Sinai represents and agrees that unless otherwise agreed in writing by the other party, it will not allow any officer, director,
employee, consultant, member of its faculty or scientific staff, student, consultant, contractor, scientific advisory board member,
or other person to work on the Sponsored Research on its behalf unless such person has agreed to assign to Mount Sinai any inventions,
discoveries, or other intellectual property that such person may generate in connection with such work.

 

7          OPTION

 

7.1       In
consideration of Sponsor’s payment for Patent Expenses as provided in Article 6, Mount Sinai hereby grants to Sponsor the
exclusive option to negotiate a fee, milestone, and royalty bearing license to practice Mount Sinai’s rights in solely and
jointly owned Sponsored Research Intellectual Property including the right to make, use, sell, offer for sale, and import any inventions
claimed or otherwise included therein, but only with respect to Patent Rights: (a) prepared and prosecuted at Sponsor’s request
under Section 6.2; (b) in the jurisdictions for which Sponsor requests such filings under Section 6.2; and (c) for which Sponsor
has agreed to pay Patent Expenses under Section 6.3. Sponsor will have sixty (60) days from receipt of the Invention Notice to
exercise such option right (“Option Period”). If Sponsor exercises its option within the Option Period then
Mount Sinai and Sponsor will negotiate in good faith to determine the terms of a license agreement with respect to such Patent
Rights for one hundred twenty (120) days (“Negotiation Period”). The Negotiation Period may be extended upon
mutual written consent. If (i) Sponsor fails to exercise the option within the Option Period or (ii) Sponsor and Mount Sinai fail
to execute a license agreement within the Negotiation Period or (iii) Sponsor fails to make timely payment for Patent Expenses
in accordance with Section 6.3, then Mount Sinai will be free to license the relevant Patent Rights to any third party upon terms
that Mount Sinai deems appropriate without any further obligation to Sponsor. The Parties hereby agree that the royalty rate to
be payable to Mount Sinai on “net sales” (net sales to be defined in the exclusive license agreement) of products or
services commercialized under such exclusive license agreement, shall be within the range of from three percent (3%) to six percent
(6%).

 

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7.2       Any
license granted to Sponsor pursuant to Section 7.1 will be subject to: (a) Sponsor’s obligation to pay related Patent Expenses
directly to the responsible law firm under a client and billing agreement to be executed prior to or contemporaneously with such
license; (b) the retained rights of Mount Sinai to practice such Patent Rights for academic research, teaching, and patient care
purposes; and (c) as applicable, to the rights of the United States government including as reserved under Public Laws 96-517,97-256,
and 98-620, codified at 35 U.S.C. § 200-212, and any regulations issued thereunder.

 

8          CONFIDENTIAL
INFORMATION

 

8.1       
 “Confidential Information” means any and all information disclosed during the Term in connection with the Sponsored
Research or this Agreement by either Party (the “Disclosing Party”) to the other Party (the “Receiving
Party”) that (a) if disclosed in tangible form, is marked as “confidential” upon disclosure or (b) if disclosed
in intangible form, is summarized in a writing marked “confidential” that is transmitted to the Receiving Party within
thirty (30) days of such intangible disclosure, provided however that the confidential status of Confidential Information not so
marked or summarized will not be affected if a reasonable person would recognize the same as confidential, based upon the content
and/or context of such disclosure. Notwithstanding the foregoing, Confidential Information shall not include information that the
Receiving Party demonstrates by written or electronic records: (a) was already in the Receiving Party’s possession-prior
to disclosure by the Disclosing Party; (b) is or later becomes a matter of public knowledge through no act or omission of the Receiving
Party; (c) is disclosed to the Receiving Party by a third party who had an apparent bona fide legal right to so disclose and who
does so without imposing a confidential obligation with respect thereto; or (d) is developed independently by the Receiving Party
without use of the disclosure by the Disclosing Party.

 

8.2       Receiving
Party will protect Disclosing Party’s Confidential Information from disclosure to all unauthorized persons and entities,
using the same degree of care it uses to protect its own confidential information from disclosure and unauthorized use, but in
no event with less than a reasonable degree of care. Receiving Party may disclose Disclosing Party’s Confidential Information
only to those of Receiving Party’s employees, faculty, officers, directors, and agents (collectively, “Authorized Representatives”)
who reasonably require access for the purpose of undertaking Receiving Party’s obligations hereunder, and shall allow such
access only during the Term. Receiving Party will inform all of its Authorized Representatives of the confidentiality obligations
and use restrictions herein in advance of disclosure of such Confidential Information to such Authorized Representatives and will
require them to uphold such obligations. Each Receiving Party will be fully responsible to the Disclosing Party for any non-compliance
with, or breach of, this Agreement by any of its Authorized Representatives. Receiving Party further agrees that it will use the
Confidential Information only for the Purpose during the Term, and will not, directly or indirectly, make use of or aid any other
unauthorized third Party to make use of such Confidential Information without Disclosing Party’s prior written consent.

 

8.3       For
clarity, permitted uses of the Disclosing Party’s Confidential Information expressly exclude any use of Disclosing Parfy’s
Confidential Information for regulatory or patent filing purposes, or for initiation or pursuit of any proceeding to challenge
the patentability, validity, or enforceability of any patent application or issued patent (or any portion thereof) that is owned
or controlled by Disclosing Party (including e.g. via pre-issuance submissions, post grant review, or inter partes review).
Any such excluded use is hereby deemed a material breach of this Agreement and in such event, notwithstanding anything to the contrary
herein, in addition to any other relief granted to the non-breaching Party, the breaching Party shall pay to the non-breaching
Party all costs such non-breaching Party incurs in such proceeding including in defense of such patent application or patent. Any
such payment shall be made within thirty (30) days of written demand.

 

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8.4       Each
Receiving Party shall use each Disclosing Pafty’s Confidential Information solely for the purposes of this Agreement during
the Term as expressly set forth herein and not for any commercial or other purposes. Each Receiving Party shall protect the confidentiality
of such Confidential Information and guard it from disclosure to third parties with at least the same degree of care it uses to
protect the confidentiality of its own Confidential Information, but in no event less than a reasonable degree of care. Notwithstanding
the foregoing, the Receiving Party shall also be permitted to disclose Confidential Information to the extent required by law,
court order, or other governmental authority with jurisdiction provided that the Receiving Party promptly provides the Disclosing
Party, to the extent legally permissible, with written notice of such requirement and cooperates, at the Disclosing Party’s
written request and expense, with the Disclosing Party’s legal efforts to prevent or limit the scope of such required disclosure.

 

8.5       During
the Term of this Agreement and for three (3) years thereafter, the Receiving Party shall treat Confidential Information in accordance
with the provisions of this Article 8.

 

9          PUBLICATION,
USE OF NAME

 

9.1       Mount
Sinai and Sponsor recognize the traditional freedom of all scientists to publish and present promptly the results of the Sponsored
Research. Mount Sinai and Sponsor also recognize that Patent Rights can be jeopardized by public disclosure prior to the filing
of appropriate patent applications. Therefore, Mount Sinai agrees that each proposed publication or other public disclosure of
the results of the Sponsored Research (“Manuscript”), prior to submission to a publisher or other public disclosure,
will be submitted to Sponsor for review. Sponsor will have thirty (30) days from the date submitted in which to review such Manuscript.
If within said thirty (30) day period, Sponsor notifies the Principal Investigator in writing that the Manuscript includes Sponsor’s
Confidential Information, specifically pointing out where such Confidential Information appears in the Manuscript then the Principal
Investigator will remove such Confidential Information from the Manuscript prior to submission for publication or making any other
public disclosure of the Manuscript. If within said same thirty (30) day period, Sponsor requests in writing a delay of publication
to allow for patent application filing, then the Principal Investigator will delay submission for publication or other public disclosure
until the sooner of (a) ninety (90) days from the date of the initial submission of the Manuscript to Sponsor, or (b) the filing
of such patent application. When requested by the Principal Investigator in advance, Sponsor, at its discretion, may allow for
simultaneous submission of the Manuscript to the publisher and Sponsor.

 

9.2       Mount
Sinai will not use Sponsor’s name without Sponsor’s prior written consent except that, without such consent, Mount
Sinai or Principal Investigator may acknowledge Sponsor in scientific publications as appropriate per scientific custom and in
listings of sponsored research projects. Sponsor shall not use Mount Sinai’s logo, name or the name of any Mount Sinai trustee,
officer, faculty member, student, or employee, or any adaptation thereof without Mount Sinai’s prior written consent. In
cases where Mount Sinai has given such consent, Sponsor agrees to cooperate with Mount Sinai with respect to any conditions or
limitations imposed upon such name usage. For Mount Sinai, such consent may only be granted with prior, written approval by Mount
Sinai Innovation Partners. Notwithstanding the foregoing, Sponsor may use Mount Sinai’s name (but not its logo) in a purely
factual manner in the context of disclosing that the Sponsored Research was conducted by and at Mount Sinai.

 

10          TERMINATION

 

10.1       In
addition to the termination right set forth in Section 2.2, either Party may terminate this Agreement effective upon written notice
to the other Party, if the other Party breaches any of the material terms or conditions of this Agreement and fails to cure such
breach within thirty (30) days after receiving written notice thereof. For clarity, Sponsor’s failure to timely make any
payments to Mount Sinai in accordance with this Agreement constitutes a material breach.

 

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10.2       Solely
in the event of early termination of this Agreement due to the Sponsor’s breach, or for any other reason whatsoever, Mount
Sinai will be entitled to retain from the payments made by Sponsor prior to termination Mount Sinai’s reasonable costs of
concluding the work in progress. In such event, Sponsor shall be obligated to fulfill all payment obligations that accrued prior
to the effective date of such termination and to pay any remainder of such reasonable costs not covered by Sponsor’s prior
payments. Additionally, Sponsor shall pay Mount Sinai, without limitation, all costs of non-cancellable commitments incurred prior
to the receipt, or issuance, by Mount Sinai of the notice of termination, and the full cost of each student and faculty member
supported hereunder through the end of such commitments. In the event of termination, Mount Sinai will submit a confidential final
report of all costs incurred and all funds received under this Agreement within sixty (60) days after the effective termination
date. In case of a deficit of funds, Sponsor will promptly, upon receipt of invoice, pay Mount Sinai the amount needed to cover
costs and allowable commitments incurred by Mount Sinai under this Agreement.

 

10.3       Termination
of this Agreement will not affect the rights and obligations of the Parties accrued prior to termination hereof. The provisions
of ARTICLE 4, entitled PAYMENT OF COSTS; of ARTICLE 5, entitled RECORDS AND REPORTS; of ARTICLE 6, entitled INTELLECTUAL PROPERTY;
of ARTICLE 7, entitled OPTION; of ARTICLE, 8, entitled CONFIDENTIAL INFORMATION; of ARTICLE 9, entitled PUBLICATION, USE OF NAME;
of ARTICLE, 10, entitled TERMINATION; of ARTICLE, I l, entitled DISCLAIMER OF WARRANTIES, INDEMNIFICATION; and of ARTICLE 12, entitled
ADDITIONAL PROVISIONS, shall survive termination of this Agreement, as well as the DEFINITIONS insofar as required to interpret
such provisions.

 

11         DISCLAIMER
OF WARRANTIES, INDEMNIFICATION

 

11.1       MOUNT
SINAI MAKES NO WARRANTIES, EXPRESS OR IMPLIED, AS TO ANY MATTER WHATSOEVER, INCLUDING, WITHOUT LIMITATION, WARRANTIES WITH RESPECT
TO THE CONDUCT, COMPLETION, SUCCESS, OR PARTICULAR RESULTS OF THE SPONSORED RESEARCH, OR THE CONDITION, OWNERSHIP, MERCHANTABII,ITY,
OR FITNESS FOR A PARTICULAR PURPOSE OF THE SPONSORED RESEARCH, ANY RESEARCH RESULTS OR DATA, SPONSORED RESE,ARCH INTELLECTUAL PROPERTY,
OR ANY INFORMATION OR MATERIALS PROVIDED TO SPONSOR BY MOUNT SINAI PURSUANT TO THIS AGREEMENT.

 

NEITHER PARTY SHALL BE LIABLE FOR
ANY INDIRECT OR CONSEQUENTIAL DAMAGES OR LOST PROFITS SUFFERED BY THE OTHER PARTY OR BY ANY LICENSEE OR ANY OTHERS RESULTING FROM
THIS AGREEMENT.

 

11.2       Indemnification.

 

11.2.1       Indemnification
by Sponsor. Sponsor shall indemnify, defend, and hold harmless Mount Sinai, its present and former officers, directors, governing
board members, employees, agents, and students (“Mount Sinai Indemnitees”) from any claim, loss, cost, expense,
or liability of any kind including reasonable attorney’s fees and expenses arising out of or connected with this Agreement
or the Sponsored Research, except to the extent such claim is due to the gross negligence or intentional misconduct of Sinai Indemnitees.
Mount Sinai shall promptly notify Sponsor of any such claim and shall cooperate with Sponsor and its insurance carrier in the defense
of the claim. Sponsor agrees to consult with Mount Sinai regarding the defense of such claim and to submit any proposed settlement
to Mount Sinai in advance of its approval.

 

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11.2.2       Indemnification
by Mount Sinai. Mount Sinai shall indemnify, defend, and hold harmless Sponsor and its directors, officers, professional staff,
employees, agents, successors, heirs and assigns (“Sponsor Indemnitees”) from any and all third-party liabilities,
claims, suits, losses, damages, expenses, costs, fees, actions, suits, demands, investigations, and penalties (including reasonable
attorneys’ fees and costs of litigation) to the extent caused by Mount Sinai’s use of Sponsored Research Intellectual
Property or the material breach of this Agreement by Mount Sinai, except to the extent such claim is due to the gross negligence
or intentional misconduct of Sponsor Indemnitees..

 

11.2.3       Indemnification
Procedures. The indemnified party (“Indemnitee”) shall give the party from whom indemnification is sought
under this Agreement (in this capacity “Indemnitor”) reasonable notice of any claims asserted against such Indemnity.
Failure to give such notice will not abrogate or diminish Indemnitor’s indemnity obligation if such failure does not prejudice
Indemnitor’s ability to defend the claim. In any litigation, administrative proceeding, negotiation or arbitration pertaining
to any claim for which indemnification is sought under this Agreement, Indemnitor will select competent legal counsel to represent
the Indemnitees. Indemnitor will control such litigation, proceedings, negotiations, and arbitration. The Indemnitees will at all
times have the right to fully participate in the defense at their own expense. If Indemnitor, within thirty (30) days after notice,
fails to assume the defense of such action, then the Indemnitees shall have the right, but not the obligation, to undertake the
defense, compromise or settlement of such claim on behalf of, for the account of and at the risk of the Indemnitor.

 

11.3       No
settlement by Indemnitor on behalf of any Indemnitee shall acknowledge or implicate any liability, fault, or wrongdoing on the
part of any Indemnitee without the prior written consent of Indemnitee. Indemnitor shall not settle or compromise any claim or
action giving rise to liabilities in a manner that imposes any restrictions or obligations on any Indemnitee or grants any rights
to the Sponsored Research Intellectual Property, or in any other manner, without the prior written consent of Indemnitee.

 

11.4       The
indemnification rights of the Indemnified Parties under this Article 11 are in addition to all other rights that any Indemnified
Party may have at law, in equity, or otherwise.

 

12         ADDITIONAL PROVISIONS

 

12.1       Representations
of Sponsor. Sponsor represents that it is duly organized, validly existing, and in good standing under the laws of the state
of New York. Sponsor has been granted all requisite power and authority to carry on its business and to own and operate its properties
and assets. The execution, delivery, and performance of this Agreement have been duly authorized by all necessary corporate action
on the part of Sponsor. There is no pending or, to Sponsor’s knowledge, threatened litigation involving Sponsor that would
impair this Agreement or Sponsor’s ability to perform its obligations hereunder. There is no indenture, contract, or other
encumbrance to which Sponsor is a party or otherwise bound that prohibits or may interfere with the execution, delivery, or performance
by Sponsor of this Agreement or any provision hereof.

 

12.2       Representations
of Mount Sinai. Mount Sinai represents that it is a not-for-profit education corporation duly organized, validly existing,
and in good standing under the laws of the State of New York. Mount Sinai has been granted all requisite power and authority to
carry on its business and to own and operate its properties and assets. There is no pending or, to Mount Sinai’s knowledge,
threatened litigation involving Mount Sinai that would affect this Agreement or Mount Sinai’s ability to perform its obligations
hereunder. There is no indenture, contract, or other encumbrance to which Mount Sinai is a party or otherwise bound that prohibits
or may interfere with the execution, delivery, or performance by Mount Sinai of this Agreement or any provision hereof.

 

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12.3       Assignment.
This Agreement may not be assigned or otherwise transferred, nor may any right or obligation hereunder be assigned or transferred,
by Sponsor, directly or by merger or other operation of law, without the express prior written consent of the non-assigning Party,,
provided, however, that either Party may assign this Agreement without prior written consent to a successor in connection with
the merger, consolidation, or sale of all or substantially all of its assets or that portion of its business to which this Agreement
relates. Any prohibited assignment of this Agreement or any rights or obligations hereunder will be null and void. Any permitted
assignment will be valid only if the assignee delivers to the non-assigning Party a written agreement to be legally bound to the
non-assigning Party by this Agreement. No permitted assignment will relieve the assigning Party of responsibility for the performance
of any obligations that accrued prior to such assignment.

 

12.4       Waiver.
A waiver by either Party of a breach or violation of any provision of this Agreement will not constitute or be construed as a waiver
of any different or subsequent breach or violation of that provision or as a waiver of any breach or violation of any other provision
of this Agreement.

 

12.5       Independent
Contractors. The Parties are independent contractors. Nothing herein will be deemed to establish a relationship of principal
and agent between Mount Sinai and Sponsor, nor any of their agents or employees, and neither Party shall have the power to act
for or incur obligations for the other, nor will this Agreement be construed as creating any form of legal association or arrangement
that would impose liability upon one Party for the act or failure to act of the other Party. Nothing in this Agreement, express
or implied, is intended to confer on any person other than the Parties hereto or their permitted assigns, any benefits, rights,
or remedies.

 

12.6       Notices.
Except as otherwise expressly set forth herein, any notice under this Agreement shall be in writing and delivered by certified
mail, internationally recognized overnight courier service, charges prepaid. Notices shall be deemed to have been received at such
time referenced in the courier’s tracking information. Notices shall be addressed as follows:

 

If to Mount Sinai:

 

Icahn School of Medicine at Mount Sinai

Mount Sinai Innovation Partners

One Gustave L. Levy Place, Box 1675

New York, NY 10029

Attention: Executive Vice President

 

with a copy for legal notices only to:

 

Icahn School of Medicine at Mount Sinai

One Gustave L. Levy Place, Box 1099

New York, NY 10029

Attention: Office of General Counsel

 

If to Sponsor:

 

SteriLumen, LLC

150 North Macquesten Pkwy,

Mount Vernon, NY 10550

E-mail: m.munn@sterilumen.com

 

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with a copy for legal notices only to:

 

Ross David Carmel, Esq.

Carmel, Milazzo & DiChiara LLP

55 West 39th Street, 18th Floor

New York, NY 10018

E-mail: rcarmel@cmdllp.com

 

12.7      Governing Law; Jurisdiction;
Venue. This Agreement shall be construed and governed in accordance with the laws of the State of New York, without giving
effect to conflicts of law provisions. The Parties hereby irrevocably submit to the exclusive jurisdiction of and venue in any
state or federal courts located within New York County in the State of New York with respect to any and all disputes concerning
or otherwise arising under this Agreement.

 

12.8       Force
Majeure. Neither Party will be liable for any failure to perform as required by this Agreement to the extent such failure to
perform is due to circumstances reasonably beyond such Party’s control, including, without limitation, labor disturbances
or labor disputes of any kind, accidents, failure of any governmental approval required for full performance, war (whether or not
declared), terrorism, civil disorders or commotions, acts of aggression, acts of God, energy or other conservation measures imposed
by law or regulation, explosions, failure of utilities, mechanical breakdowns, material shortages, disease, or other such occurrences.

 

12.9       Compliance
with Laws. The Parties comply with all laws, regulations, and other legal requirements applicable to it in connection with
this Agreement, including but not limited to any legal requirements applicable to use of the results of the Sponsored Research
or any Sponsored Research Intellectual Property and laws controlling the export of technical data, computer software, laboratory
prototypes, and all other export-controlled commodities.

 

12.10       Export-Controlled
Information. Sponsor will not knowingly disclose, and will use commercially reasonable efforts, but in no event efforts less
than adequate to comply with laws and regulations, to prevent disclosure, to Mount Sinai of any information that is subject to
ITAR controls, that is in the Commerce Control List (EAR Part 774 and Supplements), or that constitutes “restricted data”
or “sensitive nuclear technology” under l0 CFR Part 810. If, for purposes of the Sponsored Research, Sponsor intends
to disclose export-controlled information to Mount Sinai, Sponsor will not disclose such information to Mount Sinai unless and
until a plan for transfer, use, dissemination, and control of the information has been approved in writing by Mount Sinai.

 

12.11      Integration; Precedence; Modification.
This Agreement, together with its Attachments, embodies the entire understanding between the Parties relating to the subject matter
hereof and supersedes all prior understandings and agreements, whether written or oral with respect to such subject matter. In
the event of any inconsistency between this Agreement and its exhibits or attachments, the terms of this Agreement shall be given
precedence. This Agreement may not be amended except by a written agreement signed by duly authorized representatives of both Parties.

 

12.12       Headings;
Counterparts; Electronic Signatures. The headings included in this Agreement are inserted for convenience only and are not
intended to affect the meaning or interpretation of this Agreement. This Agreement may be executed in counterparts and exchanged
by electronic delivery in .pdf format. Each counterpart so exchanged shall be deemed to be an original for all purposes, and all
of which counterparts, taken together, shall constitute one and the same instrument.

 

    10 

     

    

 

12.13       Severability.
If any provision(s) of this Agreement are or become invalid, are ruled illegal by any court of competent jurisdiction, or are deemed
unenforceable under then-current applicable law from time to time in effect during the Term, it is the intention of the Parties
that the remainder of this Agreement shall not be affected thereby. It is further the intention of the Parties that, in lieu of
each such invalid, illegal, or unenforceable provision, there be substituted or added as part of this Agreement a provision which
shall be as similar as possible to such provision with respect to the economic and business objectives intended by the Parties,
but which shall be valid, legal, and enforceable.

 

12.14       Survival.
The following sections of this Agreement (together with any defined terms required to interpret such sections) shall survive the
termination or expiration of this Agreement for any reason: Sections 4 – 11, 12.3, 12.6, and 12.7.

 

 

[Signature page follows]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    11 

     

    

  

AGR-I9631

 

 

IN WITNESS WHEREOF, the duly authorized
representatives of the Parties hereby execute this Agreement as of the Effective Date.

 

  

 

	Icahn School Medicine at Mount Sinai	 	Sponsor
	 	 	 
	By:
    /s/ Sybil Lombillo                            	 	By:
    /s/ Max Munn                                
	Name: Sybil Lombillo	 	Name: Max Munn
	Title: Managing Director	 	Title: President CEO

 

4/14/2020 | 4:08 PM EDT

 

 

I have read and understand the responsibilities under this Agreement:

 

By: /s/ Richard Vincent                            

Name: Richard Vincent

4/14/2020 | 4:40 PM EDT

 

 

 

 

 

 

[Signature page to Sponsored Research Agreement]

 

     

     

    

 

AGR-19631

  

Attachment A

Sponsored Research

 

The Efficacy of UVC LED (270 nm) for
Disinfecting Bathroom Surfaces and Sink Drains

 

Research Protect Description:

 

This study is designed to evaluate the
effectiveness of Sterilumen disinfection technology in the reduction of bacteria on surfaces within typical healthcare settings
and other environments. The study will be conducted at two sites--Mount Sinai St. Luke’s Hospital (MSSL) in New York, NY.
Baseline data on ambient organisms found in patient bathrooms will be collected to inform our proposed study. Through an in-kind
contribution from Sterilumen, the UV devices will be installed in every bathroom in selected intervention bathrooms. One of each
of these units will first be installed in a simulated bathroom at the ResInnova Laboratory for a series of test challenges in unoccupied
bathroom for testing. A suggested range of organisms to be tested will be based on data of ambient organisms collected on sinks
and in drains in a series of 32 rooms at MSSL. The additional Sterilumen sink and drain units will then be installed into l7 patient
rooms at MSSL. The second portion of the study consists of a pre and post-application-analysis of viable bacterial colony forming
units (CFU) on sinks, in sink and drains. The study is non-human based using a combination of high contact surfaces within patient
areas pre and post technology application. All microbiology costs, supplies, mailing, processing will be provided by ResInnova
Laboratory through a separate contract with Sterilumen. All installation costs in accordance with MSSL’s requirements and
removal at the end of the study if requested by MSSL will be provided at no cost to MSSL by Sterilumen. All installation and removals
of the UV devices will be performed by Sterilumen under the supervision of MSSL If MSSL determines that Sterilumen’s presence
on MSSL premises shall expose Sterilumen to confidential information of MSSL, Sterilumen agrees to execute a confidentiality agreement
in advance.

 

Tasks:

 

	Task	1Q2020	2Q2020	3Q2020	4Q2020	1Q2021	2Q2021
	 	J F M	A M J	J A S	O N D	J F M	A M J
	1. IRB	XX	X	 	 	 	 
	2. Site visits	 	 	X	 	 	 
	3. Hire/Technician	 	X	 	 	 	 
	4. ResInnova Lab Studies	 	XXX	XXX	 	 	 
	5. Pre-intervention Lab Studies Base-line Study	 	 	XX	 	 	 
	6. Post Intervention Study	 	 	XXX	 	 	 
	7. Progress Reports	 	X*	 	X	 	 
	8. Analysis of Data	 	X	 	XXX	 	 
	9. Submit Abstract for Submission to ID Week	 	 	 	XX	 	 
	10. Presentation at ID Week	 	 	 	 	 	XX
	11. Prepare Manuscript for review by Sterilumen	 	 	 	X	X	 
	12. Submit Manuscript for Publication	 	 	 	 	X	 
	13. Submit Final Report	 	 	 	 	 	X

 

* The first Progress Report will include
confirmation that installation of the UV devices has commenced or will commence within (thirty) 30 days.

 

     

     

    

 

 

Attachment B

Budget

 

Total Budget: S160,000 USD

 

Schedule of Payments:

 

$10,000 USD within thirty (30) days of
execution of the Agreement.

 

$50,000 USD within thirty (30) days of
submission of the first Progress Report (as set forth in the “Tasks” table of Attachment A).

 

$50,000 USD within thirty (30) days of
submission of the second Progress Report (as set forth in the “Tasks” table of Attachment A).

 

$50,000 USD within thirty (30) days of
submission of the Final Report (as set forth in the “Tasks” table of Attachment A).

 

Separate Costs and In-Kind Materials
to be provided by Sterilumen.

All reasonable costs of the microbiological
cultures, supplies and processing required for the conduct of this study will be provided through Sterilumen’s direct contract
with ResInnova Laboratory. Sterilumen will be responsible for all direct costs of supplying test units for seventeen (17) patient
room sinks, installation according to MSSL requirements, testing the units are functional and removal at the end of the study if
requested by MSSL.aimc-ex102_115.htm

 

Exhibit 10.2

 

ALTRA INDUSTRIAL MOTION CORP.

Altra Industrial Motion Corp. 2014 Omnibus Incentive Plan 

Performance Share Award Agreement

 

This Performance Share Award Agreement (this “Agreement”), granted under the Altra Industrial Motion Corp. 2014 Omnibus Incentive Plan, as amended (the “Plan”), is effective as of «Date_of_Grant», and is made between Altra Industrial Motion Corp., a Delaware corporation (the “Company”), and  «First_Name» «Last_Name» (the “Participant”).  This Agreement is subject to all of the terms and conditions as set forth herein and in the Plan.

Preliminary Statements

WHEREAS, the Company has determined that it is desirable and in its best interests to grant to the Participant a performance share award (this “Award”) that is subject to performance conditions and payable in unrestricted shares of the Company’s stock (the “Unrestricted Stock”) and, in certain cases, restricted shares of the Company’s stock (the “Restricted Stock”), in accordance with the terms of the Plan and the Company’s 2019 Performance Share Incentive Plan (“PSIP”), in order to provide the Participant with a significant interest in the Company’s growth and to give the Participant a greater incentive to perform at the highest level and further the interests of the Company and the shareholders of the Company; and 

WHEREAS, any capitalized term not herein defined shall have the meaning as set forth in the Plan. 

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein: 

Article 1
Performance Share Award

Section 1.1Grant of Performance Shares.  On the terms and conditions of this Agreement, the Plan and the PSIP, the Committee grants to the Participant this Award, which will become earned based on the achievement of relative total shareholder return goals as described in Section 1.2 below (the shares that may be delivered pursuant to this Award, the “Performance Shares”).  The target number of Performance Shares to be issued pursuant to this Award is «PSA_Number_of_Shares» (the “Target Shares”), and the maximum number of Performance Shares that may be issued pursuant to this Award is 150% of the number of Target Shares.  The extent to which this Award shall be earned shall be determined in accordance with the provisions of Section 1.2 below.  The date of grant of this Award is «Date_of_Grant» (the “Grant Date”).  The Performance Shares shall be paid in Unrestricted Stock or, in certain cases, Restricted Stock.

Section 1.2Earning the Performance Shares.  Except as provided in Section 1.3 below, the Participant shall earn this Award in accordance with the following provisions: 

(a)Performance Criteria.  The extent to which this Award shall become earned at the end of the applicable performance period shall be based upon the change in the value of the common stock of the Company (taking dividends into account in accordance with the terms provided in Exhibit 1 of the PSIP) over the three-year Performance Period (as defined in Section 1.2(b) below), calculated in accordance with Exhibit 1 of the PSIP (the “Performance Criteria”).

 

 

(b)Performance Period.  The performance period for the Performance Criteria shall commence on January 1, 2019 and shall end on December 31, 2021 (the “Performance Period”).  

(c)Percentage of Performance Shares Earned.  Except as provided herein, the Participant shall earn 100% of the Performance Shares if the Company’s Total Shareholder Return (“TSR”) (as such term is defined in the PSIP) is in the 50th percentile compared to the TSR of the Company’s Peer Group (as provided in Exhibit 1 of the PSIP) over the Performance Period.  If the Company’s TSR over the Performance Period is negative, the performance multiplier will be limited to 100% of the target award.  Generally, the percentage of Performance Shares earned at the end of the Performance Period based on the Performance Criteria shall be determined according to the following chart; however, the actual number of Performance Shares will be interpolated linearly between the percentages set forth in the following chart based on actual results:

 

	
Company TSR Ranking
	
 
	
Vesting Percentage (percentage of

Performance Shares) 
	
 
	
Payout if Company TSR is

Negative

	
75th Percentile
	
 
	
150% 
	
 
	
100%

	
50th Percentile
	
 
	
100% 
	
 
	
100%

	
25th Percentile
	
 
	
50%
	
 
	
50%

	
Below 25th Percentile
	
 
	
0% 
	
 
	
0%

(d)Committee Certification.  Promptly after the end of the Performance Period, and in no event later than February 15, 2022, the Committee must determine (in accordance with Exhibit 1 of the PSIP) and certify whether, and to what extent, the Performance Criteria have been achieved.  If the minimum Performance Criteria of percentile rank has not been achieved during the Performance Period, no Performance Shares shall be earned, no corresponding Unrestricted Stock shall be delivered, and this Agreement will be of no force or effect; provided that Section 3.2 of this Agreement shall survive.

(e)Vesting.  Unless otherwise provided in Section 1.3 below, the Participant shall become fully vested in the earned portion of the Performance Shares, if any, immediately on the date that the Committee makes its certification, in accordance with Section 1.2(d) (the “Vesting Date”); provided that the Participant remains in the continuous employment of the Company through the Vesting Date.

Section 1.3Termination of Employment; Change in Control.  Except as otherwise provided in this Section 1.3, if the Participant ceases to be an employee of the Company or any Subsidiary for any reason, any unvested portion of the Performance Shares shall thereupon be forfeited immediately and without any further action by the Company.  If any employment or similar agreement entered into between the Participant, on the one hand, and the Company or a Subsidiary, on the other, provides for treatment of this Award that is more favorable to the Participant than the treatment set forth in this Section 1.3, the more favorable treatment set forth in such employment or similar agreement shall govern.

(a)Notwithstanding anything contrary in this Agreement, upon the occurrence of a Change in Control prior to the end of the Performance Period, this Award shall be treated as follows:

2

 

 

	
 
	
(i)
	
If the continuing entity assumes this Award, this Award will be settled in a number of shares of Restricted Stock that cliff-vest at the end of the Performance Period.  Such number of shares will be determined based on the achievement of the Performance Criteria as of the Change in Control date, taking into account Section 1.6 herein.  Upon the occurrence of any of the following termination events after this Award is settled in shares of Restricted Stock, but prior to the end of the Performance Period, this Award will be treated as follows:

	
 
	
1.
	
Death, termination of employment due to Disability, or termination without Cause within 24 months following a Change in Control or resignation for Good Reason within 24 months following a Change in Control: Vesting of such shares of Restricted Stock will accelerate (subject, in each case except in the case of the Participant’s death, to the Release Condition and the Participant’s compliance with the restrictive covenants provided in Section 3.2 herein).

	
 
	
2.
	
Authorized Retirement:  Subject to the Release Condition, upon the Participant’s Authorized Retirement, such shares of Restricted Stock shall remain outstanding and eligible to cliff-vest at the end of the Performance Period, subject to the Participant’s compliance with the restrictive covenants provided in Section 3.2 herein; provided, that in the event that at any time from or after the Participant’s Authorized Retirement, the Company determines that the Restricted Stock has become subject to any applicable U.S. federal, state, local or other tax withholding obligations, (x) the Company shall withhold a number of shares of Restricted Stock with a Fair Market Value equal to such withholding liability (as determined in accordance with Section 2.6(b)(i) hereof), and (y) the number of shares of Restricted Stock that are not used to satisfy such withholding liability (the “Net Restricted Shares”) shall remain subject to the transfer restrictions set forth in Section 1.9 herein and subject to the Participant’s compliance with the restrictive covenants provided in Section 3.2 herein, in each case, until the end of the Performance Period.

	
 
	
(ii)
	
If the continuing entity fails to assume this Award, this Award shall become fully vested as of the Change in Control date, subject to the Participant’s continued employment through such date, and the Participant shall be entitled to receive a number of shares of Unrestricted Stock on the Change in Control date (or an equivalent amount in cash or other unrestricted property, as determined by the Committee), determined based on the achievement of the Performance Criteria as of the Change in Control date, taking into account Section 1.6 herein.  Any portion that becomes vested pursuant to this Section 1.3(a)(ii) shall become payable within ten (10) days following the Change in Control date.

(b)Notwithstanding anything contrary in this Agreement and except as provided in Section 1.3(a), upon the occurrence of any of the following termination events, this Award will be treated as follows (subject, in each case except in the case of the Participant’s death, to the Release Condition and the Participant’s compliance with restrictive covenants provided in Section 3.2 herein):

3

 

 

	
 
	
(i)
	
Death or termination of employment due to Disability:  Prorated payout based on time elapsed and actual performance with respect to the Performance Criteria at the end of the Performance Period.  Any portion that becomes vested pursuant to this Section 1.3(b)(i) shall become payable on the regular payment date pursuant to Section 1.5(a) herein.

	
 
	
(ii)
	
Authorized Retirement:  Prorated payout based on time elapsed and actual performance with respect to the Performance Criteria at the end of the Performance Period.  Any portion that becomes vested pursuant to this Section 1.3(b)(ii) shall become payable on the regular payment date pursuant to Section 1.5(a) herein.

	
 
	
(iii)
	
Termination without Cause (not within 24 months following a Change in Control):  In the discretion of the Committee, a prorated portion of this Award may be paid based on time elapsed and actual performance at the end of the Performance Period.  Any portion that becomes vested pursuant to this Section 1.3(b)(iii) shall become payable on the regular payment date pursuant to Section 1.5(a) herein.

Section 1.4Release Condition.  Except as otherwise determined by the Committee, if any vesting or settlement of the Performance Shares or vesting of shares of Restricted Stock is subject to a “Release Condition”, the Participant must sign and deliver to the Company a release of claims, in the form provided by the Company (which, following a Change in Control, shall be based on the Company’s form prior to the Change in Control), as consideration for such vesting or settlement, within thirty (30) days following the applicable event and shall not revoke it within the period specified therein. 

Section 1.5Payment of Awards. 

(a)Payment of earned Performance Shares shall be made on a date as soon as administratively practicable following the completion of the Performance Period, but in no event later than March 15, 2022 (the “Payment Date”), except as set forth in Section 1.3(a) hereof.  

(b)On the Payment Date, the Participant shall receive one share of Unrestricted Stock for each Performance Share earned and certified pursuant to Section 1.2(d), plus any shares of Unrestricted Stock to which the Participant is entitled under Section 1.6 below.  

(c)On the date on which any shares of Unrestricted Stock are received by the Participant in accordance with this Agreement (including as a result of any shares of Restricted Stock becoming vested), the Participant shall be entered as the stockholder of record for the number of shares that have been so received.  

4

 

 

Section 1.6Dividend Equivalent Rights.  If the applicable Performance Criteria are satisfied or deemed satisfied pursuant to Section 1.2 or 1.3 herein with respect to any Performance Shares granted to the Participant under this Agreement, and the Participant receives Restricted Stock or Unrestricted Stock, as appropriate, pursuant thereunder, then the Participant shall also be entitled to receive, on the applicable payment date pursuant to Section 1.3 or 1.5 herein, a number of shares of either Restricted Stock or Unrestricted Stock, as appropriate, equal to (A) (i) the number of Performance Shares earned or deemed earned by the Participant under Section 1.2 and/or Section 1.3, as applicable, multiplied by (ii) the cumulative amount of cash dividends paid by the Company that the Participant would have received had the Participant owned such earned Performance Shares on each dividend record date through such payment date, divided by (B) the closing price of the Company’s Common Stock on the last business day immediately prior to such payment date; provided, however, that cash will be paid in lieu of any fractional shares the Participant would be entitled to receive under this Section 1.6. 

Section 1.7Effect of Changes in Capitalization.  This Award shall be subject to adjustment in accordance with Section 10(c) of the Plan.

Section 1.8General Restrictions.  The Company shall not be required to sell or issue any Restricted Stock or Unrestricted Stock under this Award if the sale or issuance of such Restricted Stock or Unrestricted Stock would constitute a violation by the Participant or by the Company of any provision of any law or regulation of any governmental authority, including without limitation any federal or state securities laws or regulations.  If at any time the Company shall determine, in its discretion, that the listing, registration or qualification of any Restricted Stock or Unrestricted Stock subject to this Award upon any securities exchange or under any state or federal law, or the consent or approval of any government regulatory body, is necessary or desirable as a condition of, or in connection with, the issuance or purchase of shares, this Award may not be exercised in whole or in part unless such listing, registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Company, and any delay caused thereby shall in no way affect the date of termination of this Award.  Specifically, in connection with the Securities Act of 1933 (as now in effect or as hereafter amended), unless a registration statement under such Act is in effect with respect to the Restricted Stock covered by this Award, the Company shall not be required to sell or issue such shares unless the Company has received evidence satisfactory to it that the holder of this Award may acquire such shares pursuant to an exemption from registration under such Act.  Any determination in this connection by the Company shall be final, binding and conclusive.  The Company may, but shall in no event be obligated to, register any securities covered hereby pursuant to the Securities Act of 1933 (as now in effect or as hereafter amended).  The Company shall not be obligated to take any affirmative action in order to cause the issuance of shares pursuant to this Award to comply with any law or regulation of any governmental authority.  As to any jurisdiction that expressly imposes the requirement that the Restricted Stock portion of this Award shall not be delivered unless and until the shares of Restricted Stock covered by this Award are registered or are subject to an available exemption from registration, the delivery of the Restricted Stock portion of this Award (under circumstances in which the laws of such jurisdiction apply) shall be deemed conditioned upon the effectiveness of such registration or the availability of such an exemption. 

Section 1.9Restrictions on Transfer.  Other than by will or under the laws of descent and distribution, the Participant shall not have the right to make or permit to occur any Transfer of all or any portion of this Award, whether vested or unvested, whether outright or as security, with or without consideration, voluntary or involuntary.  Any such Transfer not made in accordance with this Agreement shall be deemed null and void.

5

 

 

Article 2
Restricted Stock

Section 2.1Terms of Restricted Stock.

(a)This Article 2 sets out the terms applicable to any shares of Restricted Stock that may be delivered pursuant to Article 1 hereof.  Subject to the terms and conditions of this Agreement, the Plan and the PSIP, the Restricted Stock payable to the Participant pursuant to Section 1.3, Section 1.5 or Section 1.6 shall be issued for good and valuable consideration, which the Company has determined to exceed the par value of the Company’s common stock.  

(b)The Restricted Stock shall be evidenced in such manner as the Company may deem appropriate, including book-entry registration or issuance of one or more stock certificates.  Any certificate or book-entry credit issued or entered in respect of the Restricted Stock shall be registered in the name of the Participant and shall bear an appropriate legend referring to the terms, conditions and restrictions applicable to the Restricted Stock substantially in the following form:

“The transferability of this certificate (if certificated) and the shares of stock represented hereby is subject to the terms and conditions (including forfeiture) of the Altra Industrial Motion Corp. 2014 Omnibus Incentive Plan and an Award Agreement between the Altra Industrial Motion Corp. and the stockholder, as well as the terms and conditions of applicable law.  Copies of such Plan and Agreement are on file at the offices of Altra Industrial Motion Corp.” 

Section 2.2Forfeiture Restriction.

(a)Subject to Section 1.3, Section 2.2(b) and Section 2.2(d), if the Participant ceases to be an employee of the Company or any Subsidiary for any reason, all of the unvested shares of Restricted Stock shall thereupon, without any further action by the Company, be forfeited immediately and released from the Forfeiture Restriction.  Upon the occurrence of such forfeiture, the Company shall become the legal and beneficial owner of such forfeited shares and all rights and interests therein or relating thereto and the Company shall have the right to retain and transfer such shares to its own name.

(b)One-hundred percent of the shares of Restricted Stock shall be released from the Forfeiture Restriction on the final day of the Performance Period; provided that the Participant continues to be an employee of the Company or a Subsidiary through such date.  In addition, if the vesting of any shares of Restricted Stock issued to the Participant accelerates pursuant to Section 1.3, such shares shall be fully released from the Forfeiture Restriction.

(c)Notwithstanding anything to the contrary in this Agreement, no shares of Restricted Stock or any interest or right therein or part thereof shall be liable for the debts, contracts or engagements of the Participant or his or her successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge, encumbrance, assignment, or any other means whether such disposition be voluntary or involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy), and any attempted disposition thereof shall be null and void and of no effect.

6

 

 

Section 2.3Cash Dividend Entitlement.  Notwithstanding anything in the Plan to the contrary, with respect to all Restricted Stock, the Participant shall be entitled to receive payment on the applicable payment date of all cash dividends declared by the Company.  

Section 2.4Restrictions on Transfer.  The Participant may not Transfer any shares of Restricted Stock granted hereunder. 

Section 2.5Effect of Changes in Capitalization.  The shares of Restricted Stock shall be subject to adjustment in accordance with Section 10(c) of the Plan.

Section 2.6Tax Matters. 

(a)The Participant may make the election under Section 83(b) of the Code with respect to the delivery of the shares of Restricted Stock.  Section 83 of the Code provides that generally the Participant is not subject to federal income tax until shares are released from the Forfeiture Restrictions.  If the Participant makes a Section 83(b) election, the Participant would recognize income as of the date of the delivery of Restricted Stock to the Participant in the amount of the Fair Market Value of the Restricted Stock (determined as of the date of the delivery of the Restricted Stock) without regard to the vesting restrictions.  A Section 83(b) election must be filed with the Internal Revenue Service within thirty (30) days after the date the Performance Shares are settled in shares of Restricted Stock.  The form for making a Section 83(b) election is attached as Exhibit A.  The Participant acknowledges that it is the Participant’s sole responsibility to timely file the Section 83(b) election and that failure to file a Section 83(b) election within the applicable thirty (30) day period will cause the Participant to be taxed when the shares are released from the Forfeiture Restriction.  The Participant shall (i) provide the Company with a copy of any Section 83(b) election within five (5) business days of filing such election and (ii) deliver to the Company within ten (10) business days of filing such election a check payable to the Company in the amount of all withholding tax obligations (whether federal, state, local or foreign income or social insurance tax), imposed on the Participant as a result of filing such Section 83(b) election.

(b)If the Performance Shares are settled in shares of Restricted Stock, then upon (x) the date of such settlement, if the Participant files a Section 83(b) election, or (y) at such time as the shares of Restricted Stock are released from the Forfeiture Restriction, if the Participant does not file a Section 83(b) election, the Participant (or his or her personal representative) shall deliver to the Company, within ten (10) days after such occurrence (or in the event of death, within ten (10) days of the appointment of the personal representative), either a check payable to the Company in the amount of all withholding tax obligations (whether federal, state, local or foreign income or social insurance tax), imposed on the Participant and the Company by reason of the release of the Forfeiture Restriction, or a withholding election form to be provided by the Company upon request by the Participant (or personal representative).

7

 

 

	
 
	
(i)
	
In the event the Participant or his or her personal representative elects to satisfy the withholding obligation by executing the withholding election form, the Participant’s actual number of vested shares of Restricted Stock shall be reduced by the number of whole shares that, when multiplied by the Fair Market Value of a share on the date that the Forfeiture Restriction is released, the Company determines is sufficient to satisfy the Participant’s tax obligations by reason of the Participant being recorded as the stockholder of record of such shares.  The Participant may, instead, choose to deliver to the Company a check payable to the Company in the amount of all withholding tax obligations (whether federal, state, local or foreign income or social insurance tax).  In the event that the Participant fails to tender either the required certified check or withholding election, the Participant shall be deemed to have elected and executed the withholding election form; provided that, if, at the time that a tax withholding obligation arises in respect of the shares, the Participant has been designated as an “officer” within the meaning of Section 16 of the Exchange Act, then unless otherwise elected in writing by the Participant, the Company shall withhold the maximum amount necessary to satisfy the amount of such withholding tax obligations.

(c)Notwithstanding the foregoing, the summary of tax consequences to the Participant described in this Section 2.6 is provided only as general information and not as tax advice.  It does not address all of the tax considerations that may be relevant to the Participant.  The Participant acknowledges that he or she should consult with, and rely on, his or her own tax advisors regarding all of the possible tax consequences, based on the Participant’s individual situation, in connection with this Award.

(d)It is intended that the Award shall be exempt from Section 409A of the Code pursuant to the “short-term deferral” rule applicable to such section, as set forth in the regulations or other guidance published by the Internal Revenue Service thereunder.

Section 2.7Acknowledgment.  THE PARTICIPANT ACKNOWLEDGES AND AGREES THAT THE LAPSING OF THE FORFEITURE RESTRICTION PURSUANT TO Section 2.2 HEREOF IS EARNED ONLY BY CONTINUING EMPLOYMENT WITH THE COMPANY (OR A SUBSIDIARY) AS AN “AT WILL” EMPLOYEE OF THE COMPANY (OR A SUBSIDIARY) AND NOT THROUGH THE ACT OF BEING HIRED OR ACQUIRING SHARES HEREUNDER.  THE PARTICIPANT FURTHER ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE FORFEITURE RESTRICTION SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS AN EMPLOYEE FOR SUCH PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT INTERFERE WITH THE COMPANY’S RIGHT TO TERMINATE THE PARTICIPANT’S EMPLOYMENT WITH THE COMPANY (OR A SUBSIDIARY) AT ANY TIME, WITH OR WITHOUT CAUSE.

8

 

 

Article 3
Miscellaneous

Section 3.1Definitions. 

(a)“Authorized Retirement” means the Participant’s voluntary resignation from employment with the Company and its Subsidiaries under circumstances which the Committee, in its sole discretion, determines to constitute “Retirement”.  For the avoidance of doubt, the Committee’s determination of whether “Retirement” has occurred shall be made on an individual Award basis, and “Retirement” treatment for any one Award shall not require that all Awards held by the Participant will receive “Retirement” treatment.

(b)“Forfeiture Restriction” means a “substantial risk of forfeiture” within the meaning of Section 83(b) of the Code and the regulations promulgated thereunder.

(c)“Transfer” means any direct or indirect, voluntary or involuntary, offer to sell, transfer, sale, assignment, pledge, hypothecation, short sales, loan, grant of an option to purchase or other disposition, or the entering of any contract or agreement to do any of the foregoing.   

Section 3.2Non-Compete; Non-Solicitation.

(a) In consideration of this Award, the Participant agrees and covenants not to: 

(i)Contribute his or her knowledge, directly or indirectly, in whole or in part, as an employee, officer, owner, manager, advisor, consultant, agent, partner, director, shareholder, volunteer, intern or in any other similar capacity to an entity engaged in the same or similar business as the Company and its Related Entities, as such business may be expanded from time to time, for a period of two years following the Participant’s termination of employment; provided that nothing in this Section 3.2 shall prohibit the ownership of less than five percent (5%) of the stock of a publicly-held corporation whose stock is traded on a national securities exchange or listed with the Nasdaq Stock Market; 

(ii) Directly or indirectly, solicit, hire, recruit, attempt to hire or recruit, or induce the termination of employment of any employee of the Company or its Related Entities for two years following the Participant’s termination of employment; or

(iii) Directly or indirectly, solicit, contact (including, but not limited to, email, regular mail, express mail, telephone, fax and instant message), attempt to contact or meet with the current, former or prospective customers of the Company or any of its Related Entities for purposes of offering or accepting goods or services similar to or competitive with those offered by the Company or any of its Related Entities for a period of two years following the Participant’s termination of employment.

(b) If the Participant breaches any of the covenants set forth in Section 3.2(a):

(i) All unvested portions of this Award (including any unvested shares of Restricted Stock and any Net Restricted Shares) shall be immediately forfeited; and

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(ii)the Participant hereby consents and agrees that the Company shall be entitled to seek, in addition to other available remedies, a temporary or permanent injunction or other equitable relief against such breach or threatened breach from any court of competent jurisdiction, without the necessity of showing any actual damages or that money damages would not afford an adequate remedy, and without the necessity of posting any bond or other security.  The aforementioned equitable relief shall be in addition to, not in lieu of, legal remedies, monetary damages or other available forms of relief.

(c)If the Participant has agreed to a non-compete and/or a non-solicitation provision in any other contract or agreement with the Company, then the Company may choose to enforce any other non-compete and/or non-solicitation provision to which the Participant is bound to the extent such provision provides greater restrictions than those provided in Sections 3.2(a) and 3.2(b) herein.  

Section 3.3Effectiveness of Agreement.  This Agreement shall not be effective unless Participant executes and delivers this Agreement within ten (10) business days of the date of this Agreement. 

Section 3.4Interpretation of this Agreement.  By his or her signature below, the Participant agrees to be bound by the terms and conditions of the Plan.  The Participant has reviewed the Plan in its entirety, has had an opportunity to obtain the advice of counsel prior to executing this Agreement and fully understands all provisions of this Agreement and the Plan.  All decisions and interpretations made by the Committee or the Board with regard to any question arising under this Agreement and the Plan shall be final, binding and conclusive on the Company and the Participant and any other person entitled to receive the benefits of this Award and the shares of Restricted Stock as provided for herein. 

Section 3.5Tax Withholding.  The Company is entitled to withhold from any payments of Awards under this Agreement, Plan or the PSIP any and all amounts required to be withheld for federal, state and local withholding taxes.  

Section 3.6General Provisions.

(a)This Agreement shall be governed by the laws of the State of Delaware, without giving effect to principles of conflicts of laws. 

(b)This Agreement, the Plan and the PSIP constitute the entire agreement between the Company and the Participant concerning the subject matter hereof.  There is no representation or statement made by any party on which another party has relied which is not included in this Agreement.  Any previous agreement between the Company and the Participant concerning the subject matter hereof is hereby terminated and superseded by this Agreement, the Plan and the PSIP.  This Agreement may not be assigned by the Participant except as required in connection with a permitted transfer thereunder.  Subject to the foregoing, the provisions hereof shall inure to the benefit of, and be binding upon, the successors, permitted assigns, heirs, executors and administrators of the parties hereto.  Any attempted transfer of this Agreement not in compliance with the terms hereof shall be null and void.

(c)Neither this Agreement nor any term hereof may be amended, modified, waived, discharged, or terminated except by a written instrument signed by the Company and the Participant; provided, however, that the Company unilaterally may waive any provision hereof in writing to the extent that such waiver does not adversely affect the interests of the Participant hereunder, but no such waiver shall operate as or be construed to be a subsequent waiver of the same provision or a waiver of any other provision hereof.

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(d)Either party’s failure to enforce any provision or provisions of this Agreement shall not in any way be construed as a waiver of any such provision or provisions, nor prevent that party thereafter from enforcing each and every other provision of this Agreement.  The rights granted both parties herein are cumulative and shall not constitute a waiver of either party’s right to assert all other legal remedies available to it under the circumstances.

(e)THE PARTICIPANT ACKNOWLEDGES AND AGREES THAT THE PERFORMANCE SHARES SUBJECT TO THIS AWARD ARE EARNED BY CONTINUING EMPLOYMENT WITH THE COMPANY (OR A SUBSIDIARY) THROUGH THE APPLICABLE VESTING DATES AND ACHIEVEMENT OF THE PERFORMANCE CRITERIA SET FORTH HEREIN, AS AN “AT WILL” EMPLOYEE OF THE COMPANY (OR A SUBSIDIARY) AND NOT THROUGH THE ACT OF BEING HIRED OR ACQUIRING SHARES HEREUNDER.  THE PARTICIPANT FURTHER ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS AN EMPLOYEE FOR SUCH PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT INTERFERE WITH THE COMPANY’S RIGHT TO TERMINATE THE PARTICIPANT’S EMPLOYMENT WITH THE COMPANY (OR A SUBSIDIARY) AT ANY TIME, WITH OR WITHOUT CAUSE.

(f)Any notice or other communication required or permitted hereunder shall be in writing and shall be delivered personally or sent by facsimile transmission, overnight air courier, or first class certified or registered mail, postage prepaid, and addressed to the parties at the addresses of the parties set forth at the end of this Agreement or such other address as a party may designate by five (5) days’ advance written notice to the other parties hereto.  All notices and communications shall be deemed to have been received unless otherwise set forth herein:  (i) in the case of personal delivery, on the date of such delivery; (ii) in the case of facsimile transmission, on the date on which the sender receives electronic confirmation that such notice was received by the addressee; (iii) in the case of overnight air courier, on the second business day following the day sent, with receipt confirmed by the courier; and (iv) in the case of mailing by first class certified or registered mail, postage prepaid, return receipt requested, on the fifth business day following such mailing.

(g)If any term or provision of this Agreement or the application thereof to any person, property or circumstance shall to any extent be invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to persons, property or circumstances other than those as to which it is invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.  

(h)This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Facsimile or other electronic signatures (including PDFs) shall be deemed an original.

(i)The headings of the sections of this Agreement are for convenience and shall not by themselves determine the interpretation of this Agreement.  The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent and no rule of strict construction will be applied against any party.

(j)This Agreement will not confer any rights or remedies upon any person other than the parties hereto and their respective successors and permitted assigns.

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(k)By his or her signature below, the Participant agrees to be bound by the terms and conditions of the Plan and the PSIP.  The Participant has reviewed the Plan and the PSIP in its entirely, has had an opportunity to obtain the advice of counsel prior to executing this Agreement and fully understands all provisions of this Agreement and the Plan.  The Participant hereby agrees to accept as binding, conclusive and final all decisions and interpretations of the Plan, the PSIP and this Agreement by the Committee. 

(Signature Page Follows) 

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IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the day and year first set forth above.

 

	
ALTRA INDUSTRIAL MOTION CORP.:
	
PARTICIPANT:

	
 
	
 

	
 
	
 

	
By:
	
 

	
Name:  Carl R. Christenson

Title:    Chief Executive Officer
	
«First_Name» «Last_Name»

	
 
	
 

	
Address:
	
Address:

	
 
	
 

	
Altra Industrial Motion Corp.
300 Granite Street, Suite 201
Braintree, MA 02184
Attention:  Carl R. Christenson
Fax No.: (781) 843-0615
	
«Street_Address»

«City», «State» «Zip»

 

 

 

  

 

EXHIBIT A

ELECTION UNDER SECTION 83(b)

OF THE INTERNAL REVENUE CODE OF 1986

The undersigned taxpayer hereby elects, pursuant to the above-referenced Federal Tax Code, to include in taxpayer’s gross income for the current taxable year, the amount of any compensation taxable to taxpayer in connection with his receipt of the property described below:

	
 
	
1.
	
The name, address, taxpayer identification number and taxable year of the undersigned are as follows:

 

	
NAME:
	
«First_Name» «Last_Name»
	
 
	
SPOUSE:
	
 

	
 
	
 
	
 
	
 
	
 

	
ADDRESS:
	
 
	
«Street_Address», «City», «State» «Zip»

 

	
IDENTIFICATION NO.:
	
 
	
 
	
SPOUSE:
	
 

 

	
TAXABLE YEAR:
	
 
	
 
	
 

 

	
 
	
2.
	
The property with respect to which the election is made is described as follows: _____________________ shares (the “Shares”) of the common stock of Altra Industrial Motion Corp. (the “Company”).

	
 
	
3.
	
The date on which the property was transferred is: 

	
 
	
4.
	
The property is subject to the following restrictions:

The Shares may be forfeited to the Company, or its assignee, on certain events, including certain terminations of employment.  This right lapses with regard to a portion of the Shares over time.

	
 
	
5.
	
The fair market value at the time of transfer, determined without regard to any restriction other than a restriction which by its terms will never lapse, of such property is approximately: $[    ].

	
 
	
6.
	
The amount (if any) paid for such property is:  $0.00 per share.

The undersigned has submitted a copy of this statement to the person for whom the services were performed in connection with the undersigned’s receipt of the above-described property.  The transferee of such property is the person performing the services in connection with the transfer of said property.

The undersigned understands that the foregoing election may not be revoked except with the consent of the Commissioner.

 

	
Dated:
	
 
	
 
	
 

	
 
	
 
	
 
	
«First_Name» «Last_Name»

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