Document:

Exhibit 10.15

 

Draft 1/4/2005

 

EMPLOYMENT
AGREEMENT

 

THIS EMPLOYMENT AGREEMENT
(this “Agreement”), dated as of January       ,
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 Carl
Christenson (“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 President and Chief
Operating 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.  Executive shall report directly to the Chief
Executive Officer.

 

(b)                                 Duties.
 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 fifth
anniversary of the Effective Date (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 Board or by the Chief Executive Officer (after consultation with the Board)
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 30 days in advance of his
termination date.  Notwithstanding anything
herein to the contrary, if the Expiration Date occurs and this Agreement
terminates automatically pursuant to this Section 3 because the
Company and Executive have not extended the Expiration Date beyond the initial
five-year period by means of an amendment to this Agreement, the obligations of
Executive under Section 8 (Noncompetition) shall terminate on the
Expiration Date; provided, however, that the obligations

 

 

of Executive under Section 8
(Noncompetition) shall survive the Expiration Date and be enforceable
thereafter during the Noncompete Period (as defined in Section 8)
in the event the Company elects, in its sole and absolute discretion, to pay
Executive the severance benefits described in Section 5(a) of
this Agreement (in which event the Executive shall execute and deliver the
release contemplated therein).  The
Company undertakes to advise Executive at least six months prior to the
Expiration Date whether it intends to enter into discussions with Executive
with respect to an extension, renegotiation or amendment of this Agreement
beyond the Expiration Date if Executive requests such indication in writing to
the Company at least seven months and no more than twelve months prior to the
Expiration Date.  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 $257,500 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 a maximum annual incentive target bonus
payment of 50% of his Base Salary (a “Performance Bonus”),
in accordance with the Company’s bonus performance plan approved by the Board
in its sole discretion.

 

(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 four weeks of paid vacation each year, which may be taken
in accordance with the Company’s vacation policy.

 

(e)                                  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.

 

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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
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, and pro rated through, 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, and pro rated through,
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, and pro rated through, 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.

 

3

 

(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.

 

(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.

 

(f)                                    Pro
Rated Performance Bonus.  If
Executive shall be entitled to any pro rated Performance Bonus pursuant to Section 5
(a), (b) or (c), the Company shall not be required to make payment to
Executive of such pro rated Performance Bonus until such time that the Company makes
payment of similar bonuses to other participants in the Company’s bonus
performance plan after the completion of the fiscal year in which the bonuses
were earned.

 

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

 

4

 

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).

 

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 in any material respect 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).

 

5

 

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
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 his confidentiality
and noncompete agreements with Kaydon), (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) Executive’s employment by the Company; and (ii) 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

 

6

 

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.

 

“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 President and Chief Operating
Officer; (iii) Executive’s willful insubordination or disregard of the
legal directives of the Board or the Chief Executive Officer 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.

 

7

 

“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.  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 or the
  Company:

  
	
   

  	
   

  
	
   

  	
  Altra
  Holdings, Inc. / 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

  
	
   

  	
   

  
	
   

  	
  and

  
	
   

  	
   

  
	
   

  	
  Altra Industrial
  Motion, Inc.

  
	
   

  	
  14 Hayward Street

  
	
   

  	
  Quincy, MA 02171

  
	
   

  	
  Attention:

  	
  Michael L. Hurt, Chief
  Executive Officer

  
	
   

  	
  Telecopy No.:

  	
  ()

  

 

8

 

	
   

  	
  with a copy to:

  
	
   

  	
   

  
	
   

  	
  Weil,
  Gotshal & Manges LLP

  
	
   

  	
  201 Redwood Shores
  Parkway

  
	
   

  	
  Redwood Shores, CA
  94065

  
	
   

  	
  Attention:

  	
  Craig W. Adas

  
	
   

  	
  Telecopy No.:

  	
  (650) 802-3100

  
	
   

  	
   

  
	
   

  	
  To Executive:

  
	
   

  	
   

  
	
   

  	
  Carl Christenson

  
	
   

  	
  15524 Oak Ridge Drive

  
	
   

  	
  Spring Lake, MI 49456

  
	
   

  	
   

  
	
   

  	
  Telecopy
  No.:

  	
  (    )
        -

  
	
   

  	
   

  
	
   

  	
  With
  a copy to:

  
	
   

  	
   

  
	
   

  	
  Saul
  Ewing LLP

  
	
   

  	
  Penn
  National Insurance Plaza

  
	
   

  	
  2
  North Second Street, 7th Floor

  
	
   

  	
  Harrisburg,
  PA 17101

  
	
   

  	
  Attention:

  	
  Catherine
  Walters

  
	
   

  	
  Telecopy No.:

  	
  (717) 238-4622

  

 

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.

 

9

 

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, the offer letter from the Company to Executive
(with respect to the contingent make-whole bonus, the relocation costs and the
equity grant, subject to a vesting schedule), 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, however, that any such assignment by the
Company shall include all rights and obligations hereunder, including the
severance obligations provided in Section 5; and, provided
further, that Executive shall not be entitled to assign his rights or
obligations under this Agreement without the prior written consent of Holdings
and the Company.

 

(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.
 The parties hereto agree and acknowledge
that money damages would not be an adequate remedy for any breach of the
provisions of this Agreement

 

10

 

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.

 

(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.

 

*     *    
*     *

 

11

 

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

 

 

	
   

  	
  ALTRA
  INDUSTRIAL MOTION, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Michael
  L. Hurt

  	
   

  
	
   

  	
   

  	
  Chief
  Executive Officer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ALTRA
  HOLDINGS, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Michael
  L. Hurt

  	
   

  
	
   

  	
   

  	
  Chief
  Executive Officer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Carl
  Christenson

  	
   

  

 

 

[SIGNATURE PAGE TO EMPLOYMENT AGREEMENT]Exhibit 10.16

 

EMPLOYMENT
AGREEMENT

 

THIS EMPLOYMENT AGREEMENT
(this “Agreement”), dated as of January 12,
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
David A. Wall (“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 Financial
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.  Executive shall report directly to the Chief
Executive Officer.

 

(b)                                 Duties.
 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 fifth
anniversary of the Effective Date (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 Board or by the Chief Executive Officer (after consultation with the Board)
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 30 days in advance of his
termination date.  Notwithstanding
anything herein to the contrary, if the Expiration Date occurs and this
Agreement terminates automatically pursuant to this Section 3
because the Company and Executive have not extended the Expiration Date beyond
the initial five-year period by means of an amendment to this Agreement, the
obligations of Executive under Section 8 (Noncompetition) shall terminate
on the Expiration Date; provided, however, that the obligations

 

 

of Executive under Section 8
(Noncompetition) shall survive the Expiration Date and be enforceable
thereafter during the Noncompete Period (as defined in Section 8)
in the event the Company elects, in its sole and absolute discretion, to pay
Executive the severance benefits described in Section 5(a) of
this Agreement (in which event the Executive shall execute and deliver the release
contemplated therein).  The Company
undertakes to advise Executive at least six months prior to the Expiration Date
whether it intends to enter into discussions with Executive with respect to an
extension, renegotiation or amendment of this Agreement beyond the Expiration
Date if Executive requests such indication in writing to the Company at least
seven months and no more than twelve months prior to the Expiration Date.  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 $215,000 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 a maximum annual incentive target bonus
payment of 40% of his Base Salary (a “Performance Bonus”),
in accordance with the Company’s bonus performance plan approved by the Board
in its sole discretion.

 

(c)                                  Special
Signing Bonus.  On the 90th day after
the date of this Agreement, the Company shall pay to Executive a special
one-time signing bonus of $10,000 if on such date Executive has been performing
at a satisfactory level in his role as Chief Financial Officer, as determined
by the Chief Executive Officer in his sole and absolute judgment.

 

(d)                                 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.

 

(e)                                  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 four
weeks of paid vacation each year, which may be taken in accordance with the
Company’s vacation policy.

 

2

 

(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
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, and pro rated through, 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, and pro rated through,
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

 

3

 

the Termination Date, (y) any Performance Bonus that
was earned, but not paid, as of, and pro rated through, 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.

 

(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.

 

(f)                                    Pro
Rated Performance Bonus.  If
Executive shall be entitled to any pro rated Performance Bonus pursuant to Section 5
(a), (b) or (c), the Company shall not be required to make payment to
Executive of such pro rated Performance Bonus until such time that the Company makes
payment of similar bonuses to other participants in the Company’s bonus
performance plan after the completion of the fiscal year in which the bonuses
were earned.

 

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.

 

4

 

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).

 

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 in any material respect 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,

 

5

 

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
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, (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) Executive’s employment by
the Company; and (ii) additional good and valuable consideration as set
forth in this Agreement, the receipt and sufficiency of which are hereby
acknowledged.  Executive

 

6

 

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.

 

“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 Financial Officer; (iii) Executive’s
willful insubordination or disregard of the legal directives of the Board or the
Chief Executive Officer 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

 

7

 

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. 
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 or the
  Company:

  
	
   

  	
   

  
	
   

  	
  Altra
  Holdings, Inc. / 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

  
	
   

  	
   

  
	
   

  	
  and

  
	
   

  	
   

  
	
   

  	
  Altra Industrial
  Motion, Inc.

  
	
   

  	
  14 Hayward Street

  
	
   

  	
  Quincy, MA 02171

  
	
   

  	
  Attention:

  	
  Michael L. Hurt, Chief
  Executive Officer

  
	
   

  	
  Telecopy No.:

  	
  (    )

  

 

8

 

	
   

  	
  with a copy to:

  
	
   

  	
   

  
	
   

  	
  Weil,
  Gotshal & Manges LLP

  
	
   

  	
  201 Redwood Shores
  Parkway

  
	
   

  	
  Redwood Shores, CA
  94065

  
	
   

  	
  Attention:

  	
  Craig W. Adas

  
	
   

  	
  Telecopy No.:

  	
  (650) 802-3100

  
	
   

  	
   

  
	
   

  	
  To Executive:

  
	
   

  	
   

  
	
   

  	
  David A. Wall

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Telecopy No.: 

  	
  (    )       -

  

 

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.

 

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.

 

9

 

(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, however, that any such assignment by the
Company shall include all rights and obligations hereunder, including the
severance obligations provided in Section 5; and, provided
further, that Executive shall not be entitled to assign his rights or
obligations under this Agreement without the prior written consent of Holdings
and the Company.

 

(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.
 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.

 

(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:

  	
   

  	
   

  
	
   

  	
   

  	
  Michael
  L. Hurt

  	
   

  
	
   

  	
   

  	
  Chief
  Executive Officer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ALTRA
  HOLDINGS, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Michael
  L. Hurt

  	
   

  
	
   

  	
   

  	
  Chief
  Executive Officer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  David
  A. Wall

  	
   

  

 

 

[SIGNATURE PAGE TO EMPLOYMENT AGREEMENT]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}]]