Filed by Bowne Pure Compliance





Exhibit 10.11




FIRST AMENDMENT TO LEASE




THIS FIRST AMENDMENT TO LEASE, dated as of May 22, 2007 (this “Amendment”), between CABOT
INDUSTRIAL PROPERTIES, L.P., a Delaware limited partnership (“Landlord”) and QUANEX CORPORATION, a
Delaware corporation (“Tenant”), for certain premises located in the building located at 2270
Woodale Drive, Mounds View, Minnesota (the “Building”).



RECITALS:




A. Landlord and Tenant entered into that certain Multi-Tenant Industrial Net Lease dated for
reference as of August 28, 2002 (the “Lease”) for approximately 124,269 rentable square feet in the
Building (the “Premises”).



B. Tenant and Landlord wish to extend the Term of the Lease, now scheduled to expire on
February 29, 2008.



C. All terms, covenants and conditions contained in this Amendment shall have the same meaning
as in the Lease, and, shall govern should a conflict exist with previous terms and conditions.



AGREEMENT:




NOW, THEREFORE, in consideration of the foregoing recitals and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant
hereby agree as follows:



1. Term. The term of the Lease is hereby extended for a period of three (3) years
commencing March 1, 2008 and ending February 28, 2011 (“Extension Period”).



2. Rent. From and after March 1, 2008 through the remainder of the Lease Term as
hereby extended, Rent shall be payable in the following amounts, all of which are net of Tenant
electricity:



	 	 	 	 	 	 	 	 	 	 	 
	Period	 	Rentable Square	 	Annual Rent	 	 	 	Monthly Installment
	from	 	to	 	Footage	 	Per Square Foot	 	Annual Rent	 	of Rent
	3/1/2008
	 	2/28/2011
	 	124,269
	 	$4.40
	 	$546,783.60
	 	$45,565.30






3. Additional Rent. Tenant shall continue to pay in equal monthly installments its
proportionate share of Taxes and Expenses. Effective with the commencement of the Extension
Period, Section 4.2 of the Lease is modified to replace “cumulative annual compound rate of five
percent (5%)” with “non-cumulative annual rate of six percent (6%) over the immediate preceding
Lease Year’s Controllable Expenses.” in the first sentence thereof and the second sentence thereof
is hereby deleted. Tenant’s proportionate share of the 2007 estimate of said Taxes and Expenses is
$2.55 per rentable square foot.


 


 









 





4. Condition of Premises. Landlord will perform improvements to the Premises in
accordance with the space plan dated                      from Tushie Montgomery Architects. Except for
the aforesaid improvements, Tenant acknowledges that Landlord shall have no other obligation to
perform any construction or make any additional improvements or alterations, or to afford any
allowance to Tenant for improvements or alterations, in connection with this Amendment. Tenant
acknowledges and agrees that all construction and improvements obligations of Landlord under the
Lease, except for the improvements referenced in the first sentence of this Section 4, have been
performed in full and accepted. Except for the aforesaid improvements to be made by the Landlord,
Tenant takes the Premises during the Extension Period in its “as is” condition.



5. Expansion Option. Article 29 of the Lease is hereby modified with the addition of
the following sentence: Notwithstanding anything herein to the contrary, the rental rate as
provided in Landlord’s written notice as referenced in the second sentence above, if such notice is
given, shall be the then fair market rental rate. If the parties do not agree on the fair market
rental rate, such rate shall be determined through the same process for such determination and the
same ramifications as set forth in Section 2.5.2 of the Lease.



6. Renewal Option. Section 2.5 of the Lease is hereby modified by deleting the words
“two successive options to renew this Lease for a term of three years each” in the second line
thereof and substituting in its place the words “one option to renew this Lease for a term of three
years”. Section 2.5.3 is hereby modified by deleting the second sentence thereof.



7. Broker. Landlord and Tenant each (i) represents and warrants to the other that it
has not dealt with any broker or finder in connection with this Amendment except for Equis, who
will be compensated by Landlord per separate agreement, and (ii) agrees to defend, indemnify and
hold the other harmless from and against any losses, damages, costs or expenses (including
reasonable attorneys’ fees) incurred by such other party due to a breach of the foregoing warranty
by the indemnifying party.



8. Incorporation. Except as modified herein, all other terms and conditions of the
Lease shall continue in full force and effect and Tenant hereby ratifies and confirms its
obligations thereunder. Tenant acknowledges that as of the date of the Amendment, Tenant (i) is
not in default under the terms of the Lease; (ii) has no defense, set off or counterclaim to the
enforcement by Landlord of the terms of the Lease; and (iii) is not aware of any action or inaction
by Landlord that would constitute a default by Landlord under the Lease.



9. Tenant’s Authority. If Tenant signs as a corporation, Tenant represents and
warrants that Tenant has been and is qualified to do business in the state in which the Building is
located, that the corporation has full right and authority to enter into this Amendment, and that
all persons signing on behalf of the corporation were authorized to do so by appropriate corporate
actions. If Tenant signs as a partnership, trust or other legal entity, each of the persons
executing this Amendment on behalf of Tenant represents and warrants that Tenant has complied with
all applicable laws, rules and governmental regulations relative to its right to do business in the
state and that such entity on behalf of the Tenant was authorized to do so by any and all
appropriate partnership, trust or other actions. Tenant agrees to furnish promptly upon request a
corporate resolution, proof of due authorization by partners, or other appropriate
documentation evidencing the due authorization of Tenant to enter into this Amendment.


 


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10. Limitation of Landlord Liability. Redress for any claim against Landlord under
this Amendment and the Lease shall be limited to and enforceable only against and to the extent of
Landlord’s interest in the Building. The obligations of Landlord under this Amendment and the
Lease are not intended to be and shall not be personally binding on, nor shall any resort be had to
the private properties of, any of its or its investment manager’s trustees, directors, officers,
partners, beneficiaries, members, stockholders, employees, or agents, and in no case shall Landlord
be liable to Tenant hereunder for any lost profits, damage to business, or any form of special,
indirect or consequential damages.



IN WITNESS WHEREOF, Landlord and Tenant have executed this Amendment as of the day and year
first written above.



	 	 	 
	LANDLORD:

	 	TENANT:
	 
	 	 
	CABOT INDUSTRIAL PROPERTIES,
L.P.,
 a Delaware limited partnership

	 	QUANEX CORPORATION,
 a Delaware corporation
	 
	 	 
	By: RREEF MANAGEMENT COMPANY,
	 	 
	a Delaware corporation, Authorized Agent
	 	 
	 
	 	 
	By:

	 	By:
	 


	 	 
 
	Name:

	 	Name:
	 


	 	 

 
	Title:

	 	Title:
	 


	 	 
 






	 	 	 	 	 
	Dated: 

	, 2007	 	Dated: 	, 2007
	 


	 	 	 
 	 







 


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