PATENT SECURITY AGREEMENT

Contract Categories: Business Finance - Security Agreements
EX-10.14 3 b78693exv10w14.htm EX-10.14 exv10w14
Exhibit 10.14
[*] THE CONFIDENTIAL PORTION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND THE OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE COMMISSION.
EXECUTION VERSION
PATENT SECURITY AGREEMENT
     PATENT SECURITY AGREEMENT (this “Agreement”), dated as of December 24, 2009, among Altra Industrial Motion, Inc., a Delaware corporation (the “Company”), the Subsidiaries and Affiliates of the Company named on the signature pages hereto (each, a “Grantor” and collectively, the “Grantors”), and The Bank of New York Mellon Trust Company, N.A., acting in the capacity as Collateral Agent for the benefit of itself and the Holders under the Indenture referred to below (in such capacity, the “Collateral Agent”).
WITNESSETH:
     WHEREAS, pursuant to the terms of that certain Indenture, dated as of November 25, 2009 (as it may be amended, restated, supplemented or otherwise modified from time to time, the “Indenture”), by and among Altra Holdings, Inc. (“Holdings”), the guarantors party thereto and the Collateral Agent, the Holders will purchase the Notes issued by Holdings;
     WHEREAS, pursuant to the Pledge and Security Agreement, dated as of November 25, 2009 (as it may be amended, restated, supplemented or otherwise modified from time to time, the “Security Agreement”), among the Grantors and the Collateral Agent, the Grantors granted to the Collateral Agent a security interest and continuing lien on all of each Grantors’ right, title and interest in, to and under all Collateral, including the Patent Collateral (as defined below), and all Collateral in each case whether now owned or existing or hereafter acquired or arising to secure the prompt and complete payment and performance of all Secured Obligations (as defined in the Security Agreement) including the obligations of the Grantors under the Indenture;
     WHEREAS, the parties to the Indenture contemplate and intend that, if an Event of Default (as defined in the Indenture) shall occur and be continuing, the Collateral Agent shall have all rights of a secured party in and to the Patent Collateral and any proceeds thereof, including, without limitation, the right to exercise its remedies under the Indenture in connection with all of each Grantor’s right, title and interest in the Patent Collateral; and
     WHEREAS, pursuant to the Indenture and the Security Agreement, the Grantors are required to execute and deliver this Agreement.
     NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants herein contained, the Grantors agree as follows:
     Section 1. Defined Terms
     Unless otherwise defined herein, terms defined in the Security Agreement and used herein have the meaning given to them in the Security Agreement.
     Section 2. Grant of Security Interest in Patents
     The Grantors hereby grant to the Collateral Agent a security interest in all of their right, title and interest in, to and under the Patents, including the Patents listed in Schedule A, in each case whether now owned or hereafter acquired (collectively, the “Patent Collateral”).

 

 

     Section 3. Security for Obligations
     This Agreement secures, and the Patent Collateral is collateral security for, the prompt and complete payment or performance in full when due, whether at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise of all Secured Obligations.
     Section 4. Security Agreement
     The security interests granted pursuant to this Agreement are granted in conjunction with the security interests granted to the Collateral Agent pursuant to the Security Agreement, and the Grantors hereby acknowledge and affirm that the rights and remedies of the Collateral Agent with respect to the security interest in the Patent Collateral made and granted hereby are more fully set forth in the Security Agreement, the terms and provisions of which are incorporated by reference herein as if fully set forth herein. In the event of any irreconcilable conflict between the terms of this Agreement and the terms of the Security Agreement, the terms of the Security Agreement shall control.
     Section 5. Recordation
     The Grantors hereby authorize and request that the Commissioner of Patent and Trademarks and any other applicable United States government officer record this Agreement.
     Section 6. Subordination
     The lien and security interest evidenced by this Agreement and the exercise of any right or remedy by the Collateral Agent in respect thereof is junior and subordinate to the interest of JPMorgan Chase Bank, N.A., individually and as Senior Agent and is subject to the provisions of that certain Intercreditor and Lien Subordination Agreement, dated as of November 25, 2009, as amended, supplemented, modified or replaced from time to time in accordance with the terms thereof among JPMorgan Chase Bank, N.A., as Senior Agent, The Bank of New York Mellon Trust Company, N.A., as Trustee and Collateral Agent, and Altra Holdings, Inc., Altra Industrial Motion, Inc. and certain of their subsidiaries.
     Section 7. Miscellaneous
     This Agreement shall be governed by, and construed in accordance with the laws of the State of New York.
     This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single agreement.
[Remainder of this page intentionally left blank]

 

 

     IN WITNESS WHEREOF, the Grantors have caused this Agreement to be duly executed and delivered by a duly authorized officer as of the date first set forth above.
         
    GRANTORS:
 
        
    ALTRA INDUSTRIAL MOTION, INC.
    ALTRA HOLDINGS, INC.
 
        
 
  By   /s/ Glenn E. Deegan
 
       
 
  Name:   Glenn E. Deegan
 
  Title:     Vice President, Legal and Human Resources,
General Counsel and Secretary
 
        
    AMERICAN ENTERPRISES MPT CORP.
    NUTTALL GEAR LLC
    AMERICAN ENTERPRISES MPT HOLDINGS, LLC
    AMERIDRIVES INTERNATIONAL, LLC
    FORMSPRAG LLC
    WARNER ELECTRIC LLC
    WARNER ELECTRIC TECHNOLOGY LLC
    BOSTON GEAR LLC
    KILIAN MANUFACTURING CORPORATION
    WARNER ELECTRIC INTERNATIONAL HOLDING, INC.
    TB WOOD’S CORPORATION
    TB WOOD’S INCORPORATED
    TB WOOD’S ENTERPRISES, INC.
    INERTIA DYNAMICS, LLC
 
        
 
  By   /s/ Glenn E. Deegan
 
       
 
  Name:   Glenn E. Deegan
 
  Title:   Secretary

 

 

         
  COLLATERAL AGENT:

THE BANK OF NEW YORK MELLON
TRUST COMPANY, N.A.,
as Collateral Agent
 		  
  By:   /s/ Raymond Torres
    Name:   Raymond Torres
    Title:   Senior Associate  

 

 

         
SCHEDULE A
TO
PATENT SECURITY AGREEMENT
UNITED STATES PATENTS
[Attached]

 

 

                                         
    Issuing             Registration   Registration /     Application        
IP Type   Jurisdiction   Owner Entity   Title / Description     Number   Issue Date     Number   Filing Date   Status
Patent
  USA   Inertia Dynamics, LLC   Electromagnetic disc brake with rubber friction disk braking surface     6161659     12/19/2000     167006     09/29/1998   Active
Patent
  USA   Inertia Dynamics, LLC   Sealed electromagnetic brake     6125975     10/3/2000     193388     11/17/1998   Active
Patent
  USA   Inertia Dynamics, LLC   Manual release machanism for a brake     6675940     01/13/2004     253125     09/24/2002   Active
Patent
  USA   Warner Electric Technology LLC   FLUID OPERATED BRAKE DEVICE (MISTRAL BRAKE)     5,908,092     6/1/1999     256949     7/27/1994   Active
Patent
  USA   Inertia Dynamics, LLC   Clutch system and method     6488133     12/3/2002     528690     03/20/2000   Active
Patent
  USA   Inertia Dynamics, LLC   Elevator brake assembly     6675939     01/13/2004     773722     01/31/2001   Active
Patent
  USA   Warner Electric Technology LLC   ARMATURE ASSEMBLY FOR AN ELECTROMAGNETIC COUPLING     5,150,779     9/29/1992     820344     1/14/1992   Active
Patent
  USA   Inertia Dynamics, LLC   Device for clamping a shaft     6527233     03/04/2003     841507     04/24/2001   Active
Patent
  USA   Inertia Dynamics, LLC   Power-off brake with manual release     5915507     06/29/1999     932904     09/17/1997   Active
Patent
  USA   Inertia Dynamics, LLC   Electric clutch and brake     6047805     04/11/2000     937816     09/29/1997   Active
Patent
  USA   Inertia Dynamics, LLC   Electro-mechanical variable speed clutch     5979630     11/9/1999     938862     09/26/1997   Active
Patent
  USA   Warner Electric Technology LLC   DUAL START DRIVE SYSTEM     4,621,720     11/11/1986     06/813,538     12/26/1985   Active
Patent
  USA   Warner Electric Technology LLC   IMPROVED BI-DIRECTIONAL BACK STOPPING CLUTCH     5,007,511     4/15/1991     07/430,811     11/2/1989   Active
Patent
  USA   Warner Electric Technology LLC   ELECTROMAGNETIC FRICTION BRAKEWITH IMPROVED MOUNTING PINS     4,974,705     12/4/1990     07/451,609     12/18/1989   Active
Patent
  USA   Warner Electric Technology LLC   UNIDAMP ARMATURE     5,036,964     8/6/1991     07/500,466     3/28/1990   Active
Patent
  USA   Warner Electric Technology LLC   ELECTROMAGNETIC COUPLING DISCS AND METHOD OF MAKING THE SAME.     5,096,036     3/17/1992     07/531,465     5/31/1990   Active
Patent
  USA   Warner Electric Technology LLC   CLUTCH/BRAKE UNIT     5,033,595     7/23/1991     07/535,428     6/8/1990   Active
Patent
  USA   Warner Electric Technology LLC   APPARATUS FOR RESISTANCE BONDING ELECTROMAGNETIC COILS     5,091,619     2/25/1992     07/543,706     6/26/1990   Active
Patent
  USA   Warner Electric Technology LLC   FIELD ASSEMBLY FOR AN ELECTROMAGNET     5,250,921     10/5/1993     07/600,199     10/19/1990   Active
Patent
  USA   Warner Electric Technology LLC   ELECTROMAGNETIC SYNCHRONIZING AND SHIFTING CLUTCH — ESS     5,052,534     10/1/1991     07/605,517     10/30/1990   Active
Patent
  USA   Warner Electric Technology LLC   LOW COST SPRAG RETAINER     5,070,976     12/10/1991     07/634,903     12/27/1990   Active
Patent
  USA   Warner Electric Technology LLC   DIGITAL CONTROL SYSTEM FOR ELECTROMAGNETIC CLUTCH     5,094,332     3/10/1992     07/664,075     12/31/1990   Active
Patent
  USA   Warner Electric Technology LLC   ELECTROMAGNETIC COUPLING ARMATURE ASSEMBLY WITH FLUX ISOLATOR
SPRINGS 		    5,119,915     6/9/1992     07/700,439     5/15/1991   Active
Patent
  USA   Warner Electric Technology LLC   METHOD OF MAKING AN ELECTROMAGNETIC COUPLING DISC     5,125,255     6/30/1992     07/721,972     6/27/1991   Active
Patent
  USA   Warner Electric Technology LLC   ELECTROMAGNETIC CLUTCH WITH PERMANENT MAGNET BRAKE     5,119,918     6/9/1992     07/774,92     10/11/1991   Active
Patent
  USA   Ameridrives International, LLC   Driveshaft with slip joint seal     5,230,658     07/27/1993     07/864,307     04/06/1992   Active
Patent
  USA   TB Woods Enterprises, Inc.   Shaft Mountable Bushing and Hub for Industrail poer transmission     5304101     4/19/1994     07/919223     7/27/1992   Active
Patent
  USA   Warner Electric Technology LLC   SPLIT TUBE HAVING RETAINABLE ENDS     5,280,829     1/25/1994     07/931,638     8/18/1992   Active
Patent
  USA   Warner Electric Technology LLC   SUPPORTING HUB FOR CLUTCH AND PUMP ASSEMBLY     5,310,034     5/10/1994     07/973,291     11/9/1992   Active
Patent
  USA   Warner Electric Technology LLC   SPRAG RETAINER WITH ROTATIONAL RESTRAINT     5,337,869     8/16/1994     07/991,021     12/15/1992   Active
Patent
  USA   Warner Electric Technology LLC   CLUTCH WITH SPACER FOR SUPPORTING A BEARING     5,285,882     2/15/1994     07/996,122     12/23/1992   Active
Patent
  USA   Warner Electric Technology LLC   SOUND-DAMPING ARMATURE ASSEMBLY FOR AN ELECTROMAGNETIC COUPLING     5,372,228     12/13/1994     08/026,499     3/4/1993   Active
Patent
  USA   Warner Electric Technology LLC   ROTOR FOR ELECTROMAGNETIC COUPLING     5,305,865     4/26/1994     08/026,995     3/5/1993   Active
Patent
  USA   Warner Electric Technology LLC   HIGH STRENGTH ELECTROMAGNETIC COUPLING DISC     5,445,259     8/29/1995     08/114,320     8/30/1993   Active
Patent
  USA   Warner Electric Technology LLC   UNIDRIVE ARMATURE HUB     5,370,209     12/6/1994     08/119,729     9/10/1993   Active
Patent
  USA   TB Woods Enterprises, Inc.   Combination of power steering pump and air conditioning compressor in an automotive vehicle     5465804     11/14/1995     08/231802     4/25/1994   Active
Patent
  USA   Warner Electric Technology LLC   LOCATING RING FOR ENCAPULATING A COIL     5,497,136     3/5/1996     08/238,619     5/4/1994   Active
Patent
  USA   Warner Electric Technology LLC   CLUTCH BRAKE ASSEMBLY     5,549,186     8/27/1996     08/346,622     11/30/1994   Active
Patent
  USA   TB Woods Enterprises, Inc.   Flexible Coupling with End Stress Relief Structure     5611732     3/18/1997     08/512,137     8/7/1995   Active
Patent
  USA   Warner Electric Technology LLC   METHOD OF MANUFACTURING A COMPONENT FOR AN ELECTROMAGNETIC FRICTION
CLUTCHASSEMBLY 		    5,708,955     1/13/1998     08/558,906     11/16/1995   Active
Patent
  USA   Ameridrives International, LLC   Driveshaft with sealed slip joint seal     5,655,968     08/12/1997     08/646,202     05/07/1996   Active
Patent
  USA   Warner Electric Technology LLC   FORMLOCK SHOES WITH FLATS     5,865,284     2/2/1999     08/666,068     6/21/1996   Active
Patent
  USA   Warner Electric Technology LLC   METHOD OF MANUFACTURING A ROTOR FOR AN ELECTROMAGNETIC CLUTCH
ASSEMBLY 		    5,920,981     7/13/1999     08/823,990     3/25/1997   Active
Patent
  USA   Warner Electric Technology LLC   SPRAG FAMILY     6,109,409     08/29/2000     08/949,741     10/14/1997   Active
Patent
  USA   Warner Electric Technology LLC   SOUND DAMPING ARMATURE ASSEMBLY FOR AN ELECTROMAGNETIC COUPLING     6,194,803     2/27/2001     09/032,572     2/27/1998   Active

 

 

                                         
    Issuing             Registration   Registration /     Application        
IP Type   Jurisdiction   Owner Entity   Title / Description     Number   Issue Date     Number   Filing Date   Status
Patent
  USA   Warner Electric Technology LLC   MAG STOP CLUTCH WITH CENTER POLE     5,971,121     10/26/1999     09/070,068     4/30/1998   Active
Patent
  USA   Warner Electric Technology LLC   ARMATURE FOR A SELECTIVELY ENGAGEABLE AND DISENGAGEABLE COUPLING     6,364,084     4/2/2002     09/515779     2/29/2000   Active
Patent
  USA   Warner Electric Technology LLC   ANTI-SLIP INESERT FOR A BACKSTOPPING CLUTCH     6,257,388     7/10/2001     09/556510     4/24/2000   Active
Patent
  USA   Warner Electric Technology LLC   METHOD FOR MAKING AN ARMATURTE ASSEMBLEY     6,591,477     7/7/2003     09/684,117     10/06/2000   Active
Patent
  USA   Dana Corporation   ARMATURE FOR A SELECTIVELY ENGAGEABLE AND DISENGAGEABLE COUPLING     6,557,236     05/06/2003     10/027,095     12/20/2001   Active
Patent
  USA   Warner Electric LLC   Electromechanical screw drive actuator     6,927,513     8/9/2005     10/609,883     6/30/2003   Active
Patent
  USA   Warner Electric Technology LLC   IMPROVED DRIVE ASSEMBLY WITH LIGHTWEIGHT BACKSTOPPPING CLUTCH     7,261,196     08/28/2007     11/064,611     02/24/05   Active
Patent
  USA   Inertia Dynamics, LLC   IP copies may be obtained separately     US20050236245         11/115,903         Active
Patent
  USA   Warner Electric Technology LLC   Rotational Coupling Device     US20060278491         11/150670     6/10/2005   Active
Patent
  USA   Warner Electric Technology LLC   Rotational Coupling Device     7,493,996     2/24/2009     11/150671     6/10/2005   Active
Patent
  USA   TB Woods Enterprises, Inc.   Flexible Coupling Device     7,390,265     6/24/2008     11/256,463     10/21/2005   Active
Patent
  USA   Warner Electric Technology LLC   BALANCED FLOW COOLING WATER JACKET     7,374,027     5/20/2008     11/263,394     10/31/2005   Active
Patent
  USA   Warner Electric Technology LLC   Liquid Cooled Brake assembley     7,591,349     9/22/2009     11/263,399     10/31/2005   Active
Patent
  USA   Warner Electric Technology LLC   Rotational Coupling Device     7,527,134     5/5/2009     11/278,448     4/3/2006   Active
Patent
  USA   Warner Electric Technology LLC   Automatically released bi-directional overunning clutch     7,389,863     6/24/2008     11/341,763     01/27/2006   Active
Patent
  USA   Warner Electric Technology LLC   AquaMaKKs Brake (Liquid Cooled Brake With Support Columns)     US20080185239         11/670,698     2/2/2007   Active
Patent
  USA   Warner Electric Technology LLC   Torque Arm Assembly for a Backstopping Clutch     US20080271970         11/743,894     5/3/2007   Active
Patent
  USA   Warner Electric Technology LLC   Overrunning Clutch     US20070267264         11/750,733     5/18/2007   Active
Patent
  USA   Warner Electric Technology LLC   Sparag Retainer for OVERRUNNING CLUTCH     US20090095591         11/871,542     10/12/2007   Active
Patent
  USA   Warner Electric Technology LLC   BALANCED FLOW COOLING WATER JACKET     US20080110708         12/016,504     1/18/2007   Active
Patent
  USA   Warner Electric Technology LLC   Rotational Coupling Device     US20090229941         12/048,638     3/14/2008   Active
Patent
  USA   Warner Electric Technology LLC   IP copies may be obtained separately     US20090133974         12/364,116         Active
Patent Appl.
  USA   Warner Electric Technology LLC   DUAL ACTUATOR FRICTION BRAKE ASSEMBLY                 11/263,395     10/31/2005   Pending
Patent Appl.
  USA   Warner Electric Technology LLC   “Dual Actuator Friction Brake Assembly”                 12/364,116     2/2/2009   Pending
Patent Appl.
  USA   Warner Electric Technology LLC   Rotational Coupling Device                 11/150027     6/10/2005   Pending
Patent Appl.
  USA   Inertia Dynamics, LLC [*]   [*]                 [*]     [*]   [*]
Patent Appl.
  USA   Kilian Manufacturing Corporation   Bearing assembly for a steering assembly                 11/773,715     7/5/2007   Pending
Patent Appl.
  USA   Warner Electric Technology LLC   Rotational Coupling Device With Sealed Key                 12/124,699     5/21/2008   Pending
Patent Appl.
  USA   Warner Electric Technology LLC   “Safety Control for Release of Backstopping Clutch”                 12/175,995     07/18/2008   Pending
Patent Appl.
  USA   Warner Electric Technology LLC   [*]                 [*]     [*]   [*]
Patent Appl.
  USA   Warner Electric Technology LLC   [*]                 [*]     [*]   [*]
Patent Appl.
  USA   Inertia Dynamics, LLC (Pending assignment recordation issue. Currently in the name of Reliance Electric, former parent.)   Manual release brake                 60/324,812     09/24/2001   Pending
Patent Appl.
  USA   Inertia Dynamics, LLC (Pending assignment recordation issue. Currently in the name of Reliance Electric, former parent.)   Clutch with wear ring assembly                 60/5658     60 04/27/2004   Pending
Patent Appl.
  USA   Inertia Dynamics, LLC [*]   [*]                 [*]     [*]   [*]