Document:

Exhibit
10.42

 

EXECUTION
COPY

 

EMPLOYMENT
AGREEMENT

 

AGREEMENT, dated as
of January 31, 2005 (this “Agreement”), by and between Accuride
Corporation (the “Company”) and Andrew M. Weller (the “Executive”).

 

WHEREAS, the
Executive is currently employed by Transportation Technologies Industries, Inc.
(“TTI”) pursuant to the terms of an Employment Agreement dated August 2,
2004 (the “TTI Agreement”);

 

WHEREAS, the Company
and TTI are parties to a merger agreement pursuant to which TTI will become a
subsidiary of the Company (the “Acquisition”); and

 

WHEREAS, the Company
desires to employ the Executive as Executive Vice President/TTI Operations
& Integration under the terms and conditions specified herein, and the
Executive desires to be so employed by the Company.

 

NOW, THEREFORE, in
consideration of the mutual promises and conditions set forth herein, the
parties hereto agree as follows:

 

1.                                       Term.  This Agreement shall be effective as of the
closing date of the Acquisition (the “Effective Date”) and shall replace the
TTI Agreement, which shall simultaneously terminate on the Effective Date.  The initial term of this Agreement will begin
on the Effective Date and except as otherwise provided in Section 5 below,
end on the first anniversary of the Effective Date (the “Term”).  If the Effective Date does not occur, this
Agreement shall be void and have no effect.

 

2.                                       Duties and Authority.  During the Term, Executive agrees to serve
the Company, and the Company agrees to employ Executive, as Executive Vice
President/TTI Operations & Integration which position’s duties and
responsibilities consist of (a) directly overseeing and pursuing the effective
operation of the following subsidiaries and divisions of TTI: Fabco, Bostrom,
Imperial and Brillion Farm Products, with the goal of meeting or exceeding the
2005 business plan and budget of each such subsidiary or division, (b)
aggressively driving integration initiatives of TTI and the Company in sales,
marketing, finance, controls, planning and forecasting as well as any other
synergy objectives as may be identified, (c) leading the sale process for any
TTI subsidiaries or divisions to be divested and (d) serving on the Company’s
Executive Committee.  The Executive shall
report directly to the Chief Executive Officer (“CEO”) of the Company.  During the Term the Company will nominate and
recommend the Executive for election to the Company’s Board of Directors.  The Executive agrees to devote substantially
all of his business time and energies to the business of the Company and to
perform faithfully, diligently and competently his duties hereunder.  Subject to the restrictions in Sections 7 and
8 below, the Executive shall be permitted to serve on such boards and perform
such charitable activities, as he desires, provided  that the
Executive’s performance of such activities does not interfere with the
Executive’s performance of his duties hereunder.

 

 

3.                                       Location.  Except for travel associated with the
performance of his duties, Executive may continue to perform his duties at his
current location with TTI and will not be required to move to Evansville,
Indiana to the Company’s headquarters.

 

4.                                       Compensation and Benefits.  In full consideration for all services
rendered by Executive in all capacities during the Term, the Company shall
provide and the Executive will receive the following compensation and benefits:

 

(a)                                  Base Salary.  During the Term Executive shall receive a
base salary of $550,000 (the “Base Salary”) payable in accordance with the
customary payroll practices of the Company.  
Following the end of the Term, Executive and the Company shall agree
upon a mutually acceptable Base Salary.

 

(b)                                 Bonus Potential. Executive shall be
eligible to participate in the Company’s Annual Incentive Compensation Plan
Guidelines (“AICP”) at a Class 1 level (Payout at Threshold of 23% of Base
Salary, payout at Target of 75% of Base Salary and payout maximum of 135% of
Based Salary).

 

(c)                                  Stock Options.  Executive shall be granted options to
purchase the Company’s common stock at a level and on terms consistent with
other Executive Vice Presidents of the Company. 
Options when granted shall have an exercise price equal to the fair
market value of the Company’s stock on the date of grant as determined by the
Company’s Board of Directors in a manner consistent with the Company’s stock
option plan.  One half of such options
shall vest over a period of four years beginning on the first anniversary of
the date of grant and one half shall vest based on performance target with such
performance targets to be based on annual goals to be mutually determined by
Executive and the CEO.

 

(d)                                 Employee Benefits.

 

(i)                                     General.  Except as provided in 4(d)(v) and the
executive life insurance program, the Executive shall be eligible to
participate in all employee retirement and welfare benefit plans now or
hereafter maintained by or on behalf of the Company for Tier I level executives
of the Company, including qualified or nonqualified retirement, medical, life,
and disability plans according to their terms, and recognizing Executive’s
service with TTI as service with the Company for this purpose.

 

(ii)                                  Executive Health Program.  Executive will be eligible to participate in
the Company’s Mayo Clinic Executive Health Program in accordance with its plan
design.

 

(iii)                               Financial and Estate Planning.  Executive will be eligible for the Company’s
financial planning program stipend of $12,000 per year, plus a gross up payment
from the Company for any taxes incurred by Executive as a result of such
payment.

 

(iv)                              Life Insurance.  During the Term, the Company will pay
directly or will reimburse Executive for the premiums on his $1,300,000 life
insurance policy (with a premium cost of $33,466 in 2004), at a level
consistent with the levels in effect in 2004.

 

2

 

(v)                                 Retirement Allowance.  In the event Executive’s employment extends
beyond the end of the Term, Executive shall be eligible to participate in the
Company’s Executive Retirement Allowance program, which is a non-qualified
excess retirement plan.

 

(vi)                              Perquisites.  During the Term Executive shall be entitled
to participate in or receive such additional perquisites as other Tier I
executives of the Company including paid vacation and excess personal liability
insurance.

 

5.                                       Termination of the Executive’s Employment.

 

(a)                                  Death.  Executive’s employment shall
terminate immediately upon his death.

 

(b)                                 Disability.  Executive’s employment shall terminate upon
his “Disability.”  For purposes of this
Agreement, “Disability” means a determination by a physician selected by the
Company that as a result of incapacity due to mental or physical illness the
Executive has been unable to perform the essential functions of his job with or
without reasonable accommodation for a period in excess of 180 days in any one-year
period.

 

(c)                                  By the Company.  The Company may terminate the Executive’s
employment in its sole discretion at any time during the Term, with or without
Cause subject only to Section 6. 
For purposes of this Agreement “Cause” means:

 

(i)                                     the
willful and continued neglect or refusal failure by the Executive to perform
his duties and responsibilities, or the willful taking of actions (or willful
failures to take actions) that materially impair the Executive’s ability to perform
his duties or responsibilities that in each case continues following written
notice by the Company (other than any such failure resulting from the Executive’s
incapacity due to physical or mental illness); or

 

(ii)                                  any
act by the Executive that constitutes gross negligence or willful misconduct in
the performance of his duties hereunder, or the conviction of the Executive for
any felony, in each case which is materially and manifestly injurious to the
company and which is brought to the attention of the Executive in writing not
more than thirty days from the date of its discovery by the Company or its
Board of Directors (the “Board”).

 

 For purposes of this definition
of Cause, no act, or failure to act, by Executive shall be deemed “willful”
unless done or omitted without good faith or without reasonable belief that the
action or omission was in the best interest of the Company. Any act, or failure
to act, based upon the direction or instruction of the Board pursuant to a
resolution duly adopted by the Board or based upon the advice of counsel for
the Company shall be presumed to be done, or omitted to be done, in good faith
and in the best interests of the Company absent knowledge by the Executive to
the contrary.  Executive shall not be
deemed to have been terminated for Cause without an opportunity for the
Executive, together with his counsel, after notice of such termination to be
heard before the Board and with a reasonable opportunity for Executive to cure
the action or inaction specified by the Company, if curable.

 

3

 

If Executive’s employment is terminated for Cause prior to August 2,
2007, the Company shall advance Executive any reasonable legal fees and
expenses he may incur in connection with such alleged termination for Cause;
provided, however, that if a court of competent jurisdiction determines that
the termination for Cause was proper and in accordance with the terms of this
Agreement, then Executive will reimburse the Company for all fees and expenses
so advanced.

 

(d)                                 By the Executive.

 

(i)                                     Executive
may terminate his employment with the Company at any time during the Term, with
Good Reason.  Executive may terminate his
employment with the Company at any time without Good Reason, upon 30 days
written notice to the Company.  For
purposes of this Agreement, “Good Reason” means:

 

(A)                              a
material breach of this Agreement by the Company, after a written demand for
substantial compliance delivered to the Company that specifically identifies
the manner in which Executive believes the Company has not substantially
complied, and the Company has not remedied the alleged Good Reason within
twenty (20) days of such written demand;

 

(B)                                the
requirement that Executive relocate without his consent to a location which is
outside the Chicago metropolitan area;

 

(C)                                the
Company’s reduction in Base Salary or any other agreed-upon benefit required to
be provided under this Agreement during the Term;

 

(D)                               a
material and adverse reduction in Executive’s duties, title, responsibilities,
authority or reporting responsibilities without his prior written consent; or

 

(E)                                 a
failure of any successor (by purchase, merger, consolidation or otherwise) to
all or substantially all of the business and/or assets of the Company to become
liable for the performance of this Agreement by assumption pursuant to the
terms of this Agreement or by operation of law or otherwise.

 

(ii)                                  Executive
may terminate his employment for any reason during the period December 15,
2005 to January 15, 2006.  Any such
termination shall be treated as a termination for Good Reason for purposes of
this Agreement and shall be effective immediately upon written notice from the
Executive.

 

6.                                       Compensation and Benefits Upon Termination of
Employment.

 

(a)                                  Vested Retiree Medical Benefits.  If Executive’s employment terminates for any
reason (other than a termination by the Company for Cause) then Executive,
Executive’s Spouse (as defined below) and his dependents shall be entitled to
continue medical and dental insurance benefits under the Company’s medical and
dental insurance benefits as in effect from time to time and applicable to Tier
I executives of the Company until the later of the death of Executive or the
Executive’s Spouse.  The cost of such
benefits shall be paid by the Company without any contribution required by
Executive.  If the Company offers more
than one

 

4

 

type of coverage, Executive shall be provided the most comprehensive
coverage available, including any right of the Executive, the Executive’s
Spouse and dependents to elect their own care providers.  To the extent that Executive or Executive’s
Spouse is at any time eligible to elect insurance under the Medicare program or
its equivalent, or is provided coverage under another employer’s group health
plan the insurance under this Section 6(a) shall be only supplementary or
secondary to the extent allowed by law. 
For purposes of this Section 6(a), the Executive’s Spouse shall
refer to the spouse of the Executive immediately prior to the termination of
Executive’s employment with the Company. 
This is a vested benefit that will be provided following the Executive’s
employment termination for any reason other than termination by the Company for
Cause.

 

(b)                                 Without Cause, Good Reason Termination, Death or
Disability.  If prior to August 2,
2007, the Company terminates Executive’s employment without Cause or the
Executive terminates his employment due to Good Reason, Death or Disability,
all compensation payable to the Executive under Section 4 will cease as of
the effective date of such termination (the “Termination Date”), and subject to
the effectiveness of a general release of all employment related claims against
the Company, the Company will provide the following payments and benefits to
Executive:

 

(i)                                     A
lump sum cash payment (less taxes and withholdings) within five (5) days of the
Termination Date equal to the product of (A) two multiplied by (B) the sum of
(x) Executive’s Base Salary and (y) the greatest of (I) Executive’s target
bonus under the AICP, (II) Executive’s target bonus for 2004 at TTI, or (III)
the average of the bonus payments Executive received for 2002, 2003, and 2004
from TTI;

 

(ii)                                  For
a period of three years from the Termination Date, the Company at its own cost
shall continue Executive’s participation in all medical, life and other “employee
welfare benefit plans” (as that term is defined in Section 3(1) of the
Employee Retirement Income Security Act of 1974, as amended) in which Executive
was entitled to participate immediately prior to his termination, so long as
Executive’s continued participation is permitted under the terms and provisions
of such plans and programs.  In the event
that Executive’s participation in any such plan or program is barred, the
Company shall arrange to provide the Executive with benefits substantially
similar to those that the Executive would otherwise have been entitled to
receive under such plans and programs from which his continued participation is
barred.  Following such three-year
period, Section 6(a) of this Agreement shall continue to apply;

 

(iii)                               For
a period of three years from the Termination Date, the Company shall at its own
cost, continue to provide Executive with the perquisites the Company gave or
provided to Executive immediately prior to his termination;

 

(iv)                              A
lump sum cash payment of all earned but unpaid Base Salary through the
Termination Date, any earned but unpaid bonus for which the performance
measurement period has ended prior to the Termination Date,  any accrued but unused vacation as of the
Termination Date, unreimbursed business expenses, amounts payable under any
Company benefit plans in accordance with the terms of those plan.   Such cash payment shall be made within five
(5) days of the Termination Date;

 

5

 

(v)                                 A
lump sum cash payment equal to the pro-rated bonus described in Section 4(b)
for 2005 or any other performance measurement period that includes the
Termination Date.  Such cash payment
shall be made in the normal course following the end of the performance period;
and

 

(vi)                              A
mutual release of any claims against Executive by the Company, other than
claims based on (A) criminal acts, (B) fraud, or (C) bad faith nondisclosure of
material facts relating to the representations and warranties made by TTI the
basis of which were based on Executive’s knowledge.

 

(c)                                  Termination For Cause or Without Good Reason.  If Executive’s employment is terminated by
the Company for Cause or by the Executive without Good Reason (other than death
or Disability), Executive will receive only the amounts payable under Section 6(a)
and 6(b)(iv) and the Company shall, thereafter have no further obligations to
Executive.

 

(d)                                 Mitigation and Survival.  The Executive shall not be required to
mitigate the amount of any payment provided for in this Section 6 by
seeking employment or otherwise, nor except as otherwise specifically provided
in Section 6(a) shall the amount of any payment or benefit provided for in
this Section 6 be reduced by any compensation earned by the Executive as a
result of employment by another employer, by retirement benefits, by offset
against any amount claimed to be owed by the Executive to TTI, the Company, or
otherwise.  Further, the obligations of
the Company to make payments and provide benefits under this Section 6
shall survive the termination of this Agreement.

 

7.                                       Confidentiality.  Executive acknowledges that as key management
he is involved on a high level in the development, implementation and
management of the Company’s strategies and plans and as such he has and will
acquire confidential information regarding the business of the Company and its
subsidiaries and affiliates. 
Accordingly, the Executive agrees that, without the prior written
consent of the Company, he will not, at any time, disclose to any unauthorized
person or otherwise use any such confidential information for any reason other
than the Company’s business.  For this
purpose, confidential information means non-public information concerning the
financial data, business strategies, product development (and proprietary
product data), customer lists, marketing plans, operations, industrial
relations, acquisitions and other proprietary information concerning the
Company and its subsidiaries and affiliates, except for specific items that
have become publicly available other than as a result of the Executive’s breach
of this Agreement.

 

8.                                       Competitive Activity.

 

(a)                                  By
virtue of Executive’s unique and sensitive position and special background,
employment of Executive by a competitor of the Company represents a serious
competitive danger to the Company, and the use of Executive’s knowledge and
information about the Company’s business, strategies and plans can and would
constitute a valuable competitive advantage over the Company.  Accordingly, during Executive’s employment
and for thirty-six (36) months thereafter, Executive agrees and covenants that
he will not, without the prior written consent of the Company, directly or
indirectly, knowingly engage or knowingly

 

6

 

have an interest in (meaning as owner, partner, stockholder, employee,
director, officer, agent, consultant or equivalent relationship), with or
without compensation, any business in North America in direct competition with
any business of the Company which comprised more than ten percent (10%) of the
Company’s revenues during any four consecutive complete fiscal quarters during
the term of Executive’s employment.  This
Section 8(a)  does not prohibit the
mere passive ownership of less than five percent (5%) of the outstanding stock
of any public corporation as long as Executive is not otherwise in violation of
this Section 8.  For purposes of
this Section 8(a) and Section 8(b), the term “Company” shall include
the company and its subsidiaries and affiliates, including TTI and its
subsidiaries and divisions.

 

(b)                                 During
Executive’s employment and for thirty-six (36) months thereafter Executive will
not without the prior written consent of the Company, directly or indirectly,
on his own behalf or on behalf of any other person or entity:

 

(i)                                     directly
or indirectly, solicit, or otherwise encourage the resignation of any officer,
employee, agent, consultant, or independent contractor of the Company without
the prior written approval of Company; or

 

(ii)                                  interfere
with or induce any person or entity that is a customer of TTI during the twelve
(12) month period prior to the Effective Date to discontinue any business
relationship with the Company or to refrain from entering into a business
relationship or transaction with the Company.

 

(c)                                  Additional Payment for Covenant.  Subject to compliance with the covenants
contained in Section 8, the Company shall make a lump sum cash payment to
the Executive within five (5) days of the Executive’s Termination Date equal to
his Base Salary plus target AICP bonus for such year.  Nothing in this Section 8(c) is intended
to preclude a portion of the payments under Section 6 from being treated
as attributable to a covenant not to compete for purposes of federal tax
deductions or application of Sections 280G or 4999 of the Internal Revenue Code
of 1986, as amended.   The Company agrees
to use the procedures described in Section 9(b) and (c) of this Agreement
for purposes of  determining the value of
such payment for purposes of federal tax deductions or application of Sections
280G or 4999 of the Internal Revenue Code of 1986, as amended.

 

(d)                                 Remedy for Breach.  The Executive hereby acknowledges that the
provisions of Section 8 are reasonable and necessary for the protection of
the Company and its subsidiaries and affiliates.  Executive further acknowledges that the
Company and its subsidiaries and affiliates will be irreparably harmed if such
covenants are not specifically enforced. 
Accordingly, Executive agrees that, in addition to any other relief to
which the Company may be entitled, including claims for damages, the Company
will be entitled to seek and obtain injunctive relief (without the requirement
of any bond) from a court of competent jurisdiction for the purposes of
restraining Executive from an actual or threatened breach of such
covenants.  In addition, and without
limiting the Company’s other remedies, in the event a court of competent
jurisdiction issues a non-appealable ruling that the Executive breached any of
the covenants contained in Section 8, the Company will have no obligation
to pay or provide any further amounts under Section 6 of this Agreement
and the Executive shall repay the Company for all amounts paid under Section 8(c),
which shall offset any monetary damages.

 

7

 

(e)                                  Restrictive Modification.  If any of the rights or restrictions
contained herein shall be deemed to be unenforceable by reason of the extent,
duration or geographical scope of such rights or restrictions, the parties
hereby agree that a court of competent jurisdiction shall reduce such extent,
duration and geographical scope and enforce such right or restriction in its
reduced form for all purposes in the manner contemplated hereby; provided
that such extent, duration and geographical scope shall only be reduced
to the extent necessary in order to make such right or restriction enforceable.

 

9.                                       Treatment of Parachute Payments.

 

(a)                                  Notwithstanding
any other provisions of this Agreement, and except as set forth below, in the
event that any payment or benefit received or to be received by Executive in
connection with the Acquisition, or other Change in Control of the Company or
termination of Executive’s employment (whether pursuant to the terms of this
Agreement or any other plan, arrangement or agreement with the Company or any
subsidiary of the Company (all such payments and benefits  being herein after called “Total Payments”)
is determined to be an “excess parachute payment” pursuant to Section 280G
of the Internal Revenue Code of 1986, as amended (the “Code”) or any successor
or substitute provision of the Code, with the effect that Executive is liable
for the payment of an excise tax described in Code Section 49999 or any
successor or substitute provision of the Code (the “Excise Tax”), then, after
taking into account any reduction in the Total Payments provided by reason of
Code Section 280G in such other plan, arrangement or agreement, the cash
payments provided in Section 6(b) of this Agreement shall first be
reduced, and the noncash payments and benefits shall thereafter be reduced to
the extent necessary so that no portion of the Total Payments is subject to the
Excise Tax; provided, however, that Executive may elect (at anytime prior to
the payment of any Total Payment under this Agreement) to have the noncash
payments and benefits reduced (or eliminated) prior to any reduction of the cash
payments under this Agreement. 
Notwithstanding the foregoing, payments or benefits under this Agreement
will not be reduced unless: (i) the net amount of the Total Payments, as so
reduced (and after subtracting the net amount of federal, state and local income
taxes on such reduced Total Payments) is greater than (ii) the difference of
(A) the net amount of such Total Payments, without reduction (but after
subtracting the net amount of federal, state and local income taxes on such
Total Payments), minus (B) the amount of Excise Tax to which the Executive
would be subject in respect of such unreduced Total Payments.

 

(b)                                 All
determination required to be made under this Section 9 and the assumptions
to be utilized in arriving at such determination, shall be made by a certified
public accounting firm selected by the Company (the “Accounting Firm”) which
shall provide detailed supporting calculations both to the Company and the
Executive not later than 5 days prior to the Executive’s termination date or
the Change in Control, whichever is earlier. 
The Company shall pay all fees and expenses of the Accounting Firm.  For purposes of the computations required by
this Section 9, to the extent not otherwise specified here, reasonable
assumptions and approximations may be made with respect to applicable taxes and
reasonable, good faith interpretations of the Code may be relied upon and
Executive shall be deemed to pay federal, state and local income and payroll
taxes at the highest marginal rate of taxation. Additionally, such calculations
shall not include any amounts which are exempt from Section 280G by reason
of Section 280G(b)(5).  The Company
shall engage a third party valuation firm to determine the value of  the covenant under Section 8 and the
Accounting Firm in performing its calculations

 

8

 

shall rely on such valuation to determine whether the payment in Section 8(c)
is reasonable compensation for compliance with Section 8 of this
Agreement.  Any determination by the
Accounting Firm shall be binding upon the Company and Executive, except as
provided in Section 9(c).

 

(c)                                  As
a result in the uncertainty in the application of Code Sections 280G and 4999
at the time of the initial determination of the Accounting Firm hereunder, it
is possible that the Internal Revenue Service or other agency will claim that
an Excise Tax, or a greater Excise Tax, is due. 
If Executive is required to make a payment of any such Excise Tax, the
Company will promptly pay Executive an additional amount equal to the amount,
or greater amount, of Excise Tax the Executive is required to pay (plus a gross
up payment for an income taxes, interest, penalties or additional Excise Tax
payable by Executive with respect to such Excise Tax or additional payment), as
determined by the Accounting Firm. 
Executive will notify the Company in writing of any claim by the IRS or
other agency that, if successful, would require payment by the Company of the
additional payments under this Section 9(c).  Executive and the Company shall each
reasonably cooperate with the other in connection with any administrative or
judicial proceedings concerning the existence or amount of liability for Excise
Tax with respect to the Total Payments. 
The Company shall pay all fees and expenses of Executive relating to a
claim by the IRS or other agency.

 

(d)                                 For
purposes of this Agreement, the term “Change in Control” shall mean and include
(i) any sale, merger, consolidation, tender offer or similar acquisition of
shares or other transaction or series of related transactions as a result of
which at least a majority of the voting power of the Company is not held,
directly or indirectly, by the persons or entities who held the Company’s
securities with voting power before such transactions or (ii) a sale or other
disposition of all or a substantial part of the Company’s assets, whether in
one transaction or a series of related transactions; provided that, in the
event of a transaction under either clause (i) or clause (ii) above, Kohlberg
Kravis Roberts & Co. (“KKR”) has liquidated at least 50% of its equity
investment, as valued as of the date of the Change in Control, in the Company
for cash consideration.

 

10.                                 Miscellaneous.

 

(a)                                  Survival.  The obligations of the Company in Sections 5,
6, 8 and 9 and the obligations of the Executive in Sections 7 and 8 will
survive the termination of this Agreement.

 

(b)                                 Notice.  Any notice, consent or other communication
made or given in connection with this Agreement shall be in writing and will be
deemed to have been duly given when delivered or five (5) business days after
mailed by United States registered or certified mail, return receipt requested,
to the parties at the addresses set forth below.

 

To Executive:

 

Andrew M.
Weller

659 Lincoln Avenue

Winnetka,
Illinois 60093

 

9

 

with
a copy to:

 

Winston
& Strawn LLP

35 West Wacker Drive

Chicago, IL 60601

Attn:  Robert F. Wall

 

To
Company:

 

Accuride
Corporation

7140 Office Circle

Evansville, IN  47715

 

with a copy to:

 

Peter Kerman

Latham & Watkins

135
Commonwealth Drive

Menlo Park,
California 94025

 

(c)                                  Entire Agreement.  This Agreement and any other instrument
making reference to this paragraph supersede any and all existing agreements
between the Executive and the Company or any of its subsidiaries or affiliates
relating to the terms of the Executive’s employment, including but not limited
to the Current Agreement, which upon the Effective Date of this Agreement shall
be terminated and cancelled.

 

(d)                                 Amendments and Waivers.  No provisions of this Agreement may be
amended, modified, waived or discharged except as agreed to in writing by the
Executive and the Company.  The failure
of a party to insist upon strict adherence to any term of this Agreement on any
occasion will not be considered a waiver thereof or deprive that party of the
right thereafter to insist upon strict adherence to that term or any other term
of this Agreement.

 

(e)                                  Successors.  Neither this Agreement nor any of the rights
of the parties hereunder may be assigned by either party hereto except that the
Company may assign its rights and obligations hereunder to a corporation or
other entity that acquires substantially all of its assets, provided  that
such assignee executes and delivers to the Executive an agreement undertaking
to assume the obligations of the Company under this Agreement.  Any assignment or transfer of this Agreement
in violation of the foregoing provisions will be void.  This Agreement shall be binding upon and
inure to the benefit of the Executive and the Company and its successors and
permitted assigns.

 

(f)                                    Governing Law.  This Agreement will be governed by and
construed in accordance with the laws of the State of Delaware applicable to
agreements made and/or to be performed in that State, without regard to any
choice of law provisions thereof.

 

10

 

(g)                                 Withholdings.  The Company shall withhold from any benefit
provided or payment due hereunder the amount of withholding taxes due any
federal, state, or local authority in respect of such benefit or payment and to
take such other action as may be necessary in the opinion of the Company to
satisfy all obligations for the payment of such withholding taxes.

 

(h)                                 Severability.  If any provision of this Agreement is invalid
or unenforceable, the balance of this Agreement will remain in effect, and if
such provision is inapplicable to any person or circumstance, it will
nevertheless remain applicable to all other persons and circumstances.

 

(i)                                     Indemnification.  With respect to performance of services for
the Company and TTI after the Effective Time, the Executive shall be entitled
to such indemnification under the terms of the Company’s Bylaws, Articles of
Incorporation or other policies, including coverage under any directors’ and
officers’ liability insurance maintained by the Company, as in effect from time
to time, to the same extent as other current or former officers of the Company.

 

(j)                                     Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

 

 

[Signature Page Follows]

 

11

 

EXECUTION
COPY

 

IN WITNESS WHEREOF, the Executive has hereto
set his hand and the Company has caused these presents to be executed in its
name on its behalf, all as of the day and year first above written.

 

	
   

  	
  ANDREW M. WELLER

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Andrew Weller

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ACCURIDE CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Terrence J. Keating

  
	
   

  	
   

  	
   

  	
  Name: Terrence J. Keating

  
	
   

  	
   

  	
  Title: President and Chief Executive
  Officer

  

 

 

[Signature Page to Weller Employment Agreement]Exhibit
10.43

 

EXECUTION
COPY

 

EMPLOYMENT AGREEMENT

 

AGREEMENT, dated as
of January 31, 2005 (this “Agreement”), by and between Accuride
Corporation (the “Company”), Transportation Technologies Industries, Inc. (“TTI”)
and Donald C. Mueller (the “Executive”).

 

WHEREAS, the
Executive is currently employed by TTI pursuant to the terms of an Employment
Agreement dated August 2, 2004 (the “Current Agreement”);

 

WHEREAS, the Company
and TTI are parties to a merger agreement pursuant to which TTI will become a
subsidiary of the Company (the “Acquisition”); and

 

WHEREAS, the Company
desires TTI to continue employing Executive and to terminate the Current
Agreement and the Executive desires to continue to be so employed under the
terms and conditions specified herein.

 

NOW, THEREFORE, in
consideration of the mutual promises and conditions set forth herein, the
parties hereto agree as follows:

 

1.                                       Duties and Authority.  Executive agrees to continue serving as the
Vice-President, Treasurer and Chief Financial Officer of TTI. For periods prior
to the closing of the Acquisition (the “Effective Date”) Executive shall report
to the President and Chief Operating Officer of TTI and after the Effective
Date the Executive Vice President/TTI Operations & Integration (the “TTI COO”).  The Executive agrees to devote substantially
all of his business time and energies to the business of the Company and to
perform faithfully, diligently and competently his duties hereunder.  Subject to the restrictions in Sections 6 and
7 below, the Executive shall be permitted to serve on such boards and perform
such charitable activities, as he desires, provided  that the
Executive’s performance of such activities does not interfere with the
Executive’s performance of his duties hereunder.

 

2.                                       Location.  Except for travel associated with the
performance of his duties, Executive may continue to perform his duties at his
current location with TTI.

 

3.                                       Compensation and Benefits.  In full consideration for all services
rendered by Executive in all capacities, TTI, prior to the Effective Date, and
the Company after the Effective Date shall provide and the Executive will
receive the following compensation and benefits:

 

(a)                                  Base
Salary.  Executive shall
receive a base salary at an annual rate of $265,000 (the “Base Salary”) payable
in accordance with the customary payroll practices of TTI.

 

(b)                                 Bonus.

 

(i)                                     Executive shall
continue to be eligible to receive any bonus payable for 2004 pursuant to the
bonus plan in effect on the date of this Agreement and in accordance with TTI’s
normal practices and timing of bonus payments.

 

 

(ii)                                  Executive shall also
be eligible for an incentive bonus (the “Incentive Bonus”) of up to $100,000
based upon the achievement of performance targets to be set forth on an
Appendix A to this Agreement.  The
Incentive Bonus shall be payable upon the earliest of (x) termination of
Executive’s employment without Cause (as defined below) or (y) December 31,
2005; provided, however, that if an initial public offering of the
Company’s stock has not occurred at the time of Executive’s termination of
employment without Cause, the Company will pay the Executive such portion of
the Incentive Bonus related to successful completion of the initial public
offering upon such completion, if such initial public offering occurs within
sixty (60) days of the termination of Executive’s employment.

 

(c)                                  Employee
Benefits.  Executive shall
continue to participate in and receive all employee benefits and perquisites
that he is receiving under the plans and programs of TTI on the date of this
Agreement.  Executive shall be eligible
to participate in any new programs which are made available to senior
executives of TTI during his employment with TTI.

 

4.                                       Termination of the Executive’s Employment.

 

(a)                                  By the
Company.  The Company may
terminate Executive’s employment in its sole discretion at any time, with or
without Cause subject only to Section 5. 
For purposes of this Agreement “Cause” means:

 

(i)                                     the willful and
continued neglect or refusal failure by the Executive to perform his duties and
responsibilities, or the willful taking of actions (or willful failures to take
actions) that materially impair the Executive’s ability to perform his duties
or responsibilities that in each case continues following written notice by the
Company (other than any such failure resulting from the Executive’s incapacity
due to physical or mental illness); or

 

(ii)                                  any act by the
Executive that constitutes gross negligence or willful misconduct in the
performance of his duties hereunder, or the conviction of the Executive for any
felony, in each case which is materially and manifestly injurious to the
company and which is brought to the attention of the Executive in writing not
more than thirty days from the date of its discovery by the Company or its
Board of Directors (the “Board”).

 

 For purposes of this definition of Cause, no
act, or failure to act, by Executive shall be deemed “willful” unless done or
omitted without good faith or without reasonable belief that the action or omission
was in the best interest of the Company. 
Any act, or failure to act, based upon the direction or instruction of
the Board pursuant to a resolution duly adopted by the Board or based upon the
advice of counsel for the Company shall be presumed to be done, or omitted to
be done, in good faith and in the best interests of the Company absent
knowledge by the Executive to the contrary. 
Executive shall not be deemed to have been terminated for Cause without
an opportunity for the Executive, together with his counsel, after notice of
such termination to be heard before the Board and with a reasonable opportunity
for Executive to cure the action or inaction specified by the Company, if
curable.

 

If Executive’s
employment is terminated for Cause, the Company shall advance Executive any
reasonable legal fees and expenses he may incur in connection with such alleged
termination for Cause; provided, however, that if a court of competent
jurisdiction determines that the

 

2

 

termination for Cause was proper and in accordance with the terms of
this Agreement, then Executive will reimburse the Company for all fees and
expenses so advanced.

 

(iii)                               By the
Executive.  Executive may
terminate his employment upon 30 days written notice to the Company.  Executive’s employment shall terminate
automatically upon his death.

 

5.                                       Compensation and Benefits Upon Termination of
Employment.

 

(a)                                  Without
Cause, Death, Disability, Breach or Termination by Executive After April 30,
2005.  If the Company
terminates Executive’s employment without Cause or the Executive’s employment
is terminated due to death, disability, because the Company breaches this
Agreement or on or after April 30, 2005 Executive terminates his
employment for any reason, then all compensation payable to the Executive under
Section 3 will cease as of the effective date of such termination (the “Termination
Date”), and subject to the execution of a general release of all employment
claims by Executive, either TTI or the Company will provide the following
payments and benefits to Executive in settlement of all of Executive’s rights
under this Agreement and the Current Agreement:

 

(i)                                     A lump sum cash
severance payment (less taxes and withholdings) equal to $825,000 upon the
Termination Date;

 

(ii)                                  Subject to compliance
with, and in consideration for the covenants set forth in Section 7, a
lump sum cash payment equal to $530,000 upon the Termination Date;

 

(iii)                               Executive and his dependents may continue participation in all medical
and dental benefit plans applicable to executive employees of TTI and Gunite at
the same cost as applicable to Executive on the Effective Date.  Executive shall participate in such plans
upon the same terms as applicable to active employees of TTI and Gunite from
time to time; provided, however, that to the extent that the Executive
demonstrates in writing to the Company, the Company will reimburse or arrange
to provide any benefits that cease to be provided by virtue of plan amendment
or change in coverage after the Effective Date at the same cost as applicable
to Executive on the Effective Date. 
Benefits under this paragraph 5(a)(iii) shall be provided for any
expenses incurred within the period from the Termination Date until the earlier
of until the earlier of (A) the date Executive becomes eligible to
receive medical or dental coverage under another employer’s group health plan
which coverage does not include a waiting period or pre-existing condition
exclusion, or (B) the third anniversary of the Termination Date.  Such coverage will be provided in conjunction
with and not in addition to any continuation coverage required by applicable
law, including Section 4980B of the Internal Revenue Code of 1986, as
amended;

 

(iv)                              A lump sum cash payment of
all earned but unpaid salary through the Termination Date, any accrued but
unused vacation as of the Termination Date, unreimbursed business expenses and
amounts payable under any TTI benefit plans in accordance with the terms of
those plans; and

 

3

 

(v)                                 A mutual release of
any claims against Executive by the Company, other than claims based on (A)
criminal acts, (B) fraud, or (C) bad faith nondisclosure of material facts
relating to the representations and warranties made by TTI the basis of which
were based on Executive’s knowledge.

 

(b)                                 Termination
For Cause or By Executive. 
If Executive’s employment is terminated by the Company for Cause or by
the Executive prior to April 30, 2005 for any reason other than the
Company’s breach of this Agreement, Executive’s death or disability, Executive
will receive only the amounts set forth in Section 5(a)(iv) and neither
TTI nor the Company shall, thereafter have any further obligations to
Executive.

 

(c)                                  Mitigation and Survival.  Executive shall not be required to mitigate
the amount of any payment provided for in this Section 5 by seeking
employment or otherwise, except as otherwise specifically provided in Section 5(a)(iii)(A)
nor shall the amount of any payment or benefit provided for in this Section 5
be reduced by any compensation earned by the Executive as a result of
employment by another employer, by retirement benefits, by offset against any
amount claimed to be owed by the Executive to TTI, the Company, or otherwise.  Further, the obligations of the Company to
make payments and provide benefits under this Section 5 shall survive the
termination of this Agreement.

 

6.                                       Confidentiality.  Executive acknowledges that as key management
he is involved on a high level in the development, implementation and
management of TTI’s strategies and plans and as such he has and will acquire
confidential information regarding the business of TTI and its subsidiaries and
affiliates.  Accordingly, the Executive
agrees that, without the prior written consent of TTI, he will not, at any
time, disclose to any unauthorized person or otherwise use any such
confidential information for any reason other than the TTI’s business.  For this purpose, confidential information
means non-public information concerning the financial data, business
strategies, product development (and proprietary product data), customer lists,
marketing plans, operations, industrial relations, acquisitions and other
proprietary information concerning TTI and its subsidiaries and affiliates,
except for specific items that have become publicly available other than as a
result of Executive’s breach of this Agreement.

 

7.                                       Competitive Activity.

 

(a)                                  Noncompete.  By virtue of Executive’s unique and sensitive
position and special background, employment of Executive by a competitor of TTI
represents a serious competitive danger to TTI and the Company, and the use of
Executive’s knowledge and information about the TTI’s business, strategies and
plans can and would constitute a valuable competitive advantage over TTI.  Accordingly, Executive agrees and covenants
that for thirty-six (36) months following the Effective Date he will not,
without the prior written consent of the Company, directly or indirectly,
knowingly engage or knowingly have an interest in (meaning as owner, partner,
stockholder, employee, director, officer, agent, consultant or equivalent
relationship), with or without compensation, any business in North America in
direct competition with any business of TTI that comprised more than ten
percent (10%) of the TTI’s revenues during the four consecutive completed
fiscal quarters ending prior to the Effective Date.  This Section 7(a) does not prohibit the
mere passive ownership of less than five percent (5%) of the

 

4

 

outstanding stock of any public corporation as long as Executive is not
otherwise in violation of this Section 7. 
For purposes of this Section 7(a) and Section 7(b), the term “TTI”
shall include its subsidiaries, divisions and affiliates and after the
Effective Date shall also include the Company and its subsidiaries and
affiliates.

 

(b)                                 Nonsolicitation.  Executive will not for thirty-six (36) months
after the Effective Date, without the prior written consent of the Company,
directly or indirectly, on his own behalf or on behalf of any other person or
entity:

 

(i)                                     directly or
indirectly, solicit, or otherwise encourage the resignation of any officer,
employee, agent, consultant, or independent contractor of TTI without the prior
written approval of Company; or

 

(ii)                                  interfere with or
induce any person or entity that is a customer of TTI during the twelve (12)
month period prior to the Effective Date to discontinue any business
relationship with TTI or the Company or to refrain from entering into a
business relationship or transaction with TTI or the Company.

 

(c)                                  Remedy
for Breach.  The Executive
hereby acknowledges that the provisions of Section 7 are reasonable and
necessary for the protection of TTI and the Company and their subsidiaries and
affiliates.  Executive further
acknowledges that TTI and the Company and their subsidiaries and affiliates
will be irreparably harmed if such covenants are not specifically enforced.  Accordingly, Executive agrees that, in
addition to any other relief to which TTI or the Company may be entitled,
including claims for damages, the Company will be entitled to seek and obtain
injunctive relief (without the requirement of any bond) from a court of
competent jurisdiction for the purposes of restraining Executive from an actual
or threatened breach of such covenants. 
In addition, and without limiting TTI’s or the Company’s other remedies,
in the event a court of competent jurisdiction issues a non-appealable ruling
that the Executive breached any of the covenants contained in Section 7,
neither TTI nor the Company as applicable will have any further obligation to
pay or provide any further amounts under Section 5(a) of this Agreement
and Executive shall repay TTI or the Company as applicable all amounts paid to
Executive under Section 5(a)(ii), which shall offset any monetary damages.

 

(d)                                 Restrictive
Modification.  If any of
the rights or restrictions contained herein shall be deemed to be unenforceable
by reason of the extent, duration or geographical scope of such rights or
restrictions, the parties hereby agree that a court of competent jurisdiction
shall reduce such extent, duration and geographical scope and enforce such
right or restriction in its reduced form for all purposes in the manner
contemplated hereby; provided  that such extent, duration and
geographical scope shall only be reduced to the extent necessary in order to
make such right or restriction enforceable.

 

8.                                       Miscellaneous.

 

(a)                                  Survival.  The obligations of the Company and TTI in
Sections 5 and 7 of this Agreement and the obligations of the Executive in
Sections 6 and 7 of this Agreement will survive the termination of Executive’s
employment under this Agreement.

 

5

 

(b)                                 Notice.  Any notice, consent or other communication
made or given in connection with this Agreement shall be in writing and will be
deemed to have been duly given when delivered or five (5) business days after
mailed by United States registered or certified mail, return receipt requested,
to the parties at the addresses set forth below.

 

To Executive:

 

Donald C. Mueller

8 North Clay
Street

Hinsdale, Illinois 60521

 

with a copy to:

 

Winston & Strawn LLP

35
West Wacker Drive

Chicago,
IL 60601

Attn:  Robert F. Wall

 

To Company:

 

Accuride Corporaiton

7140 Office Circle

Evansville, IN  47715

 

with a copy to:

 

Peter Kerman

Latham & Watkins

135 Commonwealth Drive

Menlo Park, California 94025

 

(c)                                  Entire Agreement.  This Agreement shall supersede any and all
existing agreements between the Executive and TTI or any of its subsidiaries or
affiliates relating to the terms of the Executive’s employment, including but
not limited to the Current Agreement.

 

(d)                                 Amendments and Waivers.  No provisions of this Agreement may be
amended, modified, waived or discharged except as agreed to in writing by the
Executive and the Company.  The failure
of a party to insist upon strict adherence to any term of this Agreement on any
occasion will not be considered a waiver thereof or deprive that party of the
right thereafter to insist upon strict adherence to that term or any other term
of this Agreement.

 

(e)                                  Successors.  Neither this Agreement nor any of the rights
of the parties hereunder may be assigned by either party hereto except that the
Company may assign its rights and obligations hereunder to a corporation or
other entity that acquires substantially all of its assets, provided  that
such assignee executes and delivers to the Executive an agreement undertaking
to assume the obligations of the Company under this Agreement.  Any assignment

 

6

 

or transfer of this Agreement in violation of the foregoing provisions
will be void.  This Agreement shall be
binding upon and inure to the benefit of the Executive and the Company and its
successors and permitted assigns.

 

(f)                                    Governing Law.  This Agreement will be governed by and
construed in accordance with the laws of the State of Delaware applicable to
agreements made and/or to be performed in that State, without regard to any
choice of law provisions thereof.

 

(g)                                 Withholdings.  The Company shall withhold from any benefit
provided or payment due hereunder the amount of withholding taxes due any
federal, state, or local authority in respect of such benefit or payment and to
take such other action as may be necessary in the opinion of the Company to
satisfy all obligations for the payment of such withholding taxes.

 

(h)                                 Severability.  If any provision of this Agreement is invalid
or unenforceable, the balance of this Agreement will remain in effect, and if
such provision is inapplicable to any person or circumstance, it will
nevertheless remain applicable to all other persons and circumstances.

 

(i)                                     Indemnification.  With respect to performance of services for
the Company and TTI after the Effective Time, the Executive shall be entitled
to such indemnification under the terms of the Company’s Bylaws, Articles of
Incorporation or other policies, including coverage under any directors’ and officers’
liability insurance maintained by the Company, as in effect from time to time,
to the same extent as other current or former officers of the Company.

 

(j)                                     Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

 

 

[Signature Page Follows]

 

7

 

EXECUTION
COPY

 

IN WITNESS WHEREOF, the Executive has hereto
set his hand, the Company and TTI have caused these presents to be executed in
their name on their behalf, all as of the day and year first above written.

 

	
  DONALD C.
  MUELLER

  	
  ACCURIDE
  CORPORATION

  
	
   

  	
   

  	
   

  
	
  /s/ Donald
  C. Mueller

  	
   

  	
  By:

  	
  /s/ Terrence
  J. Keating

  	
   

  
	
   

  	
  Name:
  Terrence J. Keating

  
	
   

  	
  Title:
  President and Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  TRANSPORTATION
  TECHNOLOGIES

  INDUSTRIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Andrew
  M. Weller

  	
   

  
	
   

  	
  Name: Andrew
  M. Weller

  
	
   

  	
  Title:
  President and Chief Executive Officer

  
					

 

 

[Signature Page to Mueller Employment Agreement]

 

 

APPENDIX A

 

Donald C. Mueller

Incentive Bonus Milestones

 

	
  30%

  	
  •

  	
  Successful
  completion of Initial Public Offering (with target effective date prior to April 30,
  2005)

  
	
   

  	
   

  	
  •

  	
  Assist in
  preparation and filing of S-1 Registration Statement

  
	
   

  	
   

  	
  •

  	
  Assist in
  preparation of pro forma financial information

  
	
   

  	
   

  	
  •

  	
  Attendance
  at drafting sessions

  
	
   

  	
   

  	
  •

  	
  Assist in
  providing diligence information as requested

  
	
   

  	
   

  	
  •

  	
  Assist in
  providing timely response to SEC comments

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  20%

  	
  •

  	
  Successful
  Completion of High Yield Offering

  
	
   

  	
   

  	
  •

  	
  Assist in
  preparation of disclosure document

  
	
   

  	
   

  	
  •

  	
  Assist in
  preparation of pro forma financial information

  
	
   

  	
   

  	
  •

  	
  Attendance
  at drafting sessions

  
	
   

  	
   

  	
  •

  	
  Assist in
  providing diligence information as requested

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  20%

  	
  •

  	
  Successful
  Completion of 2004 TTI audit by February 15, 2005

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  30%

  	
  •

  	
  Merger
  Transition Issues

  
	
   

  	
   

  	
  •

  	
  Assist in
  developing critical financial integration items/implementation

  
	
   

  	
   

  	
  •

  	
  Assist in
  developing Corporate/TTI based synergies as requested

  
	
   

  	
   

  	
  •

  	
  Coordinate
  financial reporting with Accuride Corporate

  
	
   

  	
   

  	
  •

  	
  Assist in
  completion of merger accounting and reporting

  
	
   

  	
   

  	
  •

  	
  Assist in
  preparation of Q1 results, 10-Q, pro-formas, etc.

  
	
   

  	
   

  	
  •

  	
  Assist in
  transition of 404 Sarbanes-Oxley compliance

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