EX-10.42 Trademark Security Agreement dated as of April 5, 2007

EX-10.42 25 b65343s4exv10w42.txt EX-10.42 TRADEMARK SECURITY AGREEMENT DATED AS OF APRIL 5, 2007 EXHIBIT 10.42 TRADEMARK SECURITY AGREEMENT This TRADEMARK SECURITY AGREEMENT (this "Trademark Security Agreement") is made this 5th day of April, 2007, among Grantors listed on the signature pages hereof (collectively, jointly and severally, "Grantors" and each individually "Grantor"), and WELLS FARGO FOOTHILL, INC., in its capacity as Agent for the Lender Group and the Bank Product Providers (together with its successors and assigns in such capacity, "Agent"). WITNESSETH: WHEREAS, pursuant to that certain Credit Agreement dated of November 30, 2004 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, including all exhibits and schedules thereto, the "Credit Agreement") among Altra Industrial Motion, Inc., a Delaware corporation ("Parent"), each of Parent's Subsidiaries identified on the signature pages thereof (Parent and such Subsidiaries, "Borrowers"), the lenders party thereto as "Lenders" ("Lenders"), and Agent, the Lender Group agreed to make certain financial accommodations available to Borrowers from time to time pursuant to the terms and conditions thereof; WHEREAS, the members of the Lender Group are willing to make the financial accommodations to Borrowers as provided for in the Credit Agreement, but only upon the condition, among others, that Grantors shall have executed and delivered to Agent, for the benefit of Lender Group and the Bank Product Providers, that certain Security Agreement dated as of November 30, 2004 (including all annexes, exhibits or schedules thereto, as from time to time amended, restated, amended and restated, supplemented or otherwise modified, the "Security Agreement"); and WHEREAS, pursuant to the Security Agreement, Grantors are required to execute and deliver to Agent, for the benefit of Lender Group and the Bank Product Providers, this Trademark Security Agreement. NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each Grantor hereby agrees as follows: 1. DEFINED TERMS. All capitalized terms used but not otherwise defined herein have the meanings given to them in the Security Agreement and/or the Credit Agreement. 2. GRANT OF SECURITY INTEREST IN TRADEMARK COLLATERAL. Each Grantor hereby grants to Agent, for the benefit of the Lender Group and the Bank Product Providers, a continuing first priority security interest (subject to Permitted Liens) in all of such Grantor's right, title and interest in, to and under the following, whether presently existing or hereafter created or acquired (collectively, the "Trademark Collateral"): (a) all of its Trademarks and rights in and to Trademark Intellectual Property Licenses to which it is a party including those referred to on Schedule I hereto; (b) all extensions, modifications and renewals of the foregoing; (c) all goodwill of the business connected with the use of, and symbolized by, each Trademark; and (d) all products and proceeds of the foregoing, including, without limitation, any claim by such Grantor against third parties for past, present or future (i) infringement or dilution of any Trademark, or (ii) injury to the goodwill associated with any Trademark. 3. SECURITY AGREEMENT. The security interests granted pursuant to this Trademark Security Agreement are granted in conjunction with the security interests granted to Agent, for the benefit of the Lender Group and the Bank Product Providers, pursuant to the Security Agreement. Each Grantor hereby acknowledges and affirms that the rights and remedies of Agent with respect to the security interest in the Trademark 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. 4. AUTHORIZATION TO SUPPLEMENT. Grantors hereby authorize Agent unilaterally to modify this Agreement by amending Schedule I to include any trademarks, registrations, or applications therefor (including, without limitation, extensions or renewals) which become part of the Trademark Collateral under the Security Agreement. Notwithstanding the foregoing, no failure to so modify this Trademark Security Agreement or amend Schedule I shall in any way affect, invalidate or detract from Agent's continuing security interest in all Collateral, whether or not listed on Schedule I. 5. COUNTERPARTS. This Trademark Security Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all such separate counterparts shall together constitute but one and the same instrument. Any signatures delivered by a party by facsimile transmission or by e-mail transmission shall be deemed an original signature hereto. [signature pages follow] 2 IN WITNESS WHEREOF, each Grantor has caused this Trademark Security Agreement to be executed and delivered by its duly authorized officer as of the date first set forth above. GRANTORS: TB WOOD'S INCORPORATED, a Pennsylvania corporation, as a Grantor By: /s/ Joseph C. Horvath ------------------------------------ Name: Joseph C. Horvath ---------------------------------- Title: VP, CFO and Corporate Secretary --------------------------------- PLANT ENGINEERING CONSULTANTS, LLC, a Tennessee limited liability company, as a Grantor By: /s/ Joseph C. Horvath ------------------------------------ Name: Joseph C. Horvath ---------------------------------- Title: VP, CFO and Corporate Secretary --------------------------------- TB WOOD'S ENTERPRISES, INC., a Delaware corporation, as a Grantor By: /s/ Joseph C. Horvath ------------------------------------ Name: Joseph C. Horvath ---------------------------------- Title: VP, CFO and Corporate Secretary --------------------------------- TB WOOD'S CORPORATION, a Delaware corporation, as a Grantor By: /s/ Joseph C. Horvath ------------------------------------ Name: Joseph C. Horvath ---------------------------------- Title: VP, CFO and Corporate Secretary --------------------------------- [SIGNATURE PAGE OF TRADEMARK SECURITY AGREEMENT] AGENT: WELLS FARGO FOOTHILL, INC., a California corporation, as Agent By: /s/ Vincent J. Egan, Jr. ------------------------------------ Name: Vincent J. Egan, Jr. ---------------------------------- Title: Vice President --------------------------------- SIGNATURE PAGE OF TRADEMARK SECURITY AGREEMENT SCHEDULE I to TRADEMARK SECURITY AGREEMENT TRADEMARK REGISTRATIONS/APPLICATIONS
APPLICATION/ GRANTOR COUNTRY MARK REGISTRATION NO. APP/REG DATE - --------------- ------- ---- ---------------- ------------ TB Wood's United States ALL-PRO 75/290,731/ 5/12/1997/ Enterprises, Inc. 2,165,737 6/16/1998 TB Wood's United States BRAKETRON 73/254,657/ 3/19/1980/ Enterprises, Inc. 1,164,393 8/11/1981 TB Wood's United States DECK 73/581,633/ 2/7/1986/ Enterprises, Inc. (stylized) 1,409,209 9/16/1986 TB Wood's United States DISC-O-TORQUE 72/285,224/ 11/20/1967/ Enterprises, Inc. 859,264 10/29/1968 TB Wood's Mexico DURA-FLEX 267,615/ 6/9/1997/ Enterprises, Inc. 552,086 6/26/1997 TB Wood's United States DURA-FLEX 73/158,649/ 2/13/1978/ Enterprises, Inc. 1,116,828 4/24/1979 TB Wood's United States E-FLOW 75/280,015/ 4/23/1997/ Enterprises, Inc. 2,169,361 6/30/1998 TB Wood's United States E-trAC 73/491,494/ 7/24/1984/ Enterprises, Inc. (Stylized) 1,333,061 4/30/1985 TB Wood's United States E-TROL+PLUS 75/273,178/ 4/11/1997/ Enterprises, Inc. 2,156,683 5/12/1998 TB Wood's United States FIRST IN 73/526,310/ 3/11/1985/ Enterprises, Inc. COUPLINGS 1,361,466 9/24/1985 TB Wood's Canada FORMFLEX 352,690/ Enterprises, Inc. 215,307 8/23/1991 TB Wood's United States FORM-FLEX 75/273,175/ 4/11/1997/ Enterprises, Inc. 2,152,362 4/21/1998 TB Wood's United States IMD 75/272,935/ 4/11/1997/ Enterprises, Inc. 2,261,432 7/13/1999 TB Wood's United States NLS 75/273,181/ 4/11/1997/ Enterprises, Inc. 2,152,366 4/21/1998 TB Wood's Canada PDA-TRAC 1,210,875/ 3/24/2004/ Enterprises, Inc. TMA669,532 8/9/2006 TB Wood's Mexico PDA-TRAC 862222/ 4/21/2004/ Enterprises, Inc. 862222 4/21/2004 TB Wood's United States PDA-TRAC 78/329,999 11/19/2003/ Enterprises, Inc. 2,986,366 8/16/2005 TB Wood's United States PETRO-TRAC 78/052,072/ 3/8/2001/ Enterprises, Inc. 2,641,082 10/22/2002 TB Wood's United States POOLE 75/251,697/ 2/28/1997/ Enterprises, Inc. 2,191,918 9/29/1998 TB Wood's Mexico QT POWER CHAIN 573133/ 10/20/2002/ Enterprises, Inc. 818826 1/26/2004 TB Wood's United States QT POWER CHAIN 76/403,299/ 5/2/2002/ Enterprises, Inc. 2,723,745 6/10/2003 TB Wood's United States ROTO-CAM 72/285,223/ 11/20/1967/ Enterprises, Inc. 859,263 10/29/1968 TB Wood's United States ROTO-CONE 72/015,359/ 9/10/1956/ Enterprises, Inc. 676,279 3/31/1959 TB Wood's Canada SPEEDLIGN 1,223,603/ 7/14/2004/ Enterprises, Inc. TMA665,131 5/29/2006 TB Wood's Mexico SPEEDLIGN 666,531/ 7/14/04/ Enterprises, Inc. 896,028 8/23/05 TB Wood's United States SPEEDLIGN 78/350,700/ 1/12/2004/ Enterprises, Inc. 2,991,827 9/6/2005 TB Wood's United States S-TRAC 75/272,936/ 4/11/1997/ Enterprises, Inc. 2,257,668 6/29/1999 TB Wood's United States SUPERSTART 74/104,389/ 10/9/1990/ Enterprises, Inc. 1,686,040 5/12/1992 TB Wood's United States SURE GRIP 71/640,418/ 1/6/1953/ Enterprises, Inc. (stylized) 645,415 5/14/1957 TB Wood's Great Britain SUREFLEX B998,327/ 9/13/1993 Enterprises, Inc. B998,327 TB Wood's Australia SURE-FLEX B375,472/ 5/13/1982/ Enterprises, Inc. B375,472 5/13/1989 TB Wood's Canada SURE-FLEX 645,519/ 11/23/1989/ Enterprises, Inc. 380,915 3/1/1991 TB Wood's Japan SURE-FLEX 40,343/1982/ 5/12/1982/ Enterprises, Inc. 1,923,250 12/24/1986 TB Wood's Switzerland SURE-FLEX 405,626/ 9/14/1992/ Enterprises, Inc. 405,626 9/14/1992 TB Wood's United States SURE-FLEX 72/043,720/ 1/9/1958/ Enterprises, Inc. (stylized) 668,649 10/21/1958 TB Wood's Japan SUREFLEX 7-700836/ 1/13/1995/ Enterprises, Inc. and Katakana 1,740,974 1/23/1995 TB Wood's United States SURE-GRIP 71/575,508/ 3/15/1949/ Enterprises, Inc. 646,423 6/4/1957 TB Wood's United States SURE-GRIP 73/136,699/ 8/8/1977/ Enterprises, Inc. 1,109,150 12/19/1978 TB Wood's United States TRUETUBE 75/273,177/ 4/11/1997/ Enterprises, Inc. 2,152,364 4/21/1998 TB Wood's United States ULTRACON 72/300,318/ 6/13/1968/ Enterprises, Inc. 862,655 12/31/1968 TB Wood's United States ULTRACON II 75/273,179/ 4/11/1997/ Enterprises, Inc. 2,150,835 4/14/1998 TB Wood's United States ULTRA-HELIX 75/559,570/ 9/25/1998/ Enterprises, Inc. 2,351,349 5/23/2000 TB Wood's United States ULTRA-V 73/001,734/ 10/9/1973/ Enterprises, Inc. 1,001,969 1/21/1975 TB Wood's United States ULTRA-V 73/003,203/ 10/10/1973/ Enterprises, Inc. 1,001,970 1/21/1975 TB Wood's United States U-TROL 73/104,511/ 10/26/1976/ Enterprises, Inc. 1,070,167 7/26/1977 TB Wood's United States VAR-A-CONE 75/273,180/ 4/11/1997/ Enterprises, Inc. 2,152,365 4/21/1998 TB Wood's United States W TB WOOD'S 75/107,136/ 5/20/1996/ Enterprises, Inc. (and design) 2,059,245 5/6/1997 TB Wood's Canada WIN-TRAC 1,210,868/ 3/24/2004/ Enterprises, Inc. TMA664,172 5/12/2006 TB Wood's Community WIN-TRAC 3.828.019/ 5/20/2004/ Enterprises, Inc. Trademark 3.828.019 11/15/2005 TB Wood's Mexico WIN-TRAC 653047 4/21/2004 Enterprises, Inc. TB Wood's United States WIN-TRAC 78/306,778/ 9/29/2003/ Enterprises, Inc. 2,961,309 6/7/2005 TB Wood's Mexico WOOD'S WORK 573134/ 10/30/2002/ Enterprises, Inc. 904275 11/30/2002 TB Wood's United States WOOD'S@WORK 76/402,992/ 5/2/2002/ Enterprises, Inc. 2,801,090 12/30/2003 TB Wood's Sons Germany FORM-FLEX D 36648 7W2/ 9/22/1983/ Company 1,053,953 9/23/1983 TB Wood's Sons Germany SUREFLEX W24959/ 4/5/1973/ Company 926 107 12/17/1974 TB Wood's Argentina DURA-FLEX 2,066,443/ 1/23/1997/ Incorporated 1,783,301 3/27/2000 TB Wood's Community DURA-FLEX 507.277 2/7/1997 Incorporated Trademark TB Wood's Japan DURA-FLEX 27318/97/ 3/17/1997/ Incorporated 4,166,483 7/10/1998 TB Wood's Malaysia DURA-FLEX 97/01971 2/19/1997 Incorporated TB Wood's Taiwan DURA-FLEX (86)5713/ 2/1/1997/ Incorporated 807300 7/1/1998 TB Wood's Japan FORMFLEX 41,517/85/ 8/19/1987/ Incorporated 1,975,830 8/19/1997 TB Wood's Venezuela PETRO-TRAC 2001-016447/ 9/7/2001/ Incorporated P-245856 8/22/2003 TB Wood's Canada QT POWER CHAIN 1,157,003/ 10/25/2002/ Incorporated TMA623,038 10/20/2004 TB Wood's France SPEEDLIGN 717,131/ 6/19/1974/ Incorporated 1,286,266 6/19/1974 TB Wood's Germany SPEEDLIGN 935,511/ Incorporated 935,511 6/10/1974 TB Wood's Great Britain SPEEDLIGN 99999/ Incorporated 1,029,397 5/13/1974 TB Wood's Singapore SUREFLEX 2556/82/ 5/21/1982/ Incorporated T82/02556B 5/21/1982 TB Wood's Benelux SURE-FLEX 0316801/ 10/20/1972/ Incorporated 0316801 10/20/1972 TB Wood's Brazil SURE-FLEX 810,942,631/ 8/23/1982/ Incorporated 810,942,631 3/19/1995 TB Wood's France SURE-FLEX 02 3 196 347/ 11/27/2002/ Incorporated 02 3 196 347 11/27/2002 TB Wood's Italy SURE-FLEX MI2003002784/ 9/25/1992/ Incorporated 654849 9/25/1974 TB Wood's Canada WOOD'S@WORK 1,157,004/ 10/25/2002/ Incorporated TMA626,975 11/29/2004