Document:

Severance and Change of Control Agreement

 Exhibit 10.2 
  

					
	 

	 	 	  	 
	 	 Remy International, Inc.
 2902 Enterprise Drive • Anderson, Indiana 46013 USA
	  	765-778-6499
	 	 	 	  	Fax 765-778-6404

  
 September 6, 2005 
  
 Jeffrey Potrzebowski 
 11553 Summit Circle 
 Zionsville, IN 46077 
  
 Dear Jeffrey: 
  
 In recognition of the importance and value to Remy International, Inc. (the “Company”) of your continued services, upon the completion of six
month of active employment you and the Company agree as follows: 
  
 1. If you are employed by the Company when a Change of Control (as defined herein) occurs and your employment with the Company is terminated within two (2) years of a Change of Control (i) by the Company for any reason other than Cause (as
defined herein) or (ii) by you for Good Reason (as defined herein): 
  
 (a) The Company will pay or cause to be paid to you a bonus (the “Bonus”) equal to (i) in the event of a termination of your employment as described in this paragraph 1 in the first two (2) years following
the execution of this letter agreement, One Million Dollars ($1,000,000) or (ii) in the event of a termination of your employment as described in this paragraph 1 after the two (2) years following the execution of this letter agreement, three (3)
times the average of the sum of (1) your annual salary (including for this purpose any deferred salary) and (2) the amount of all bonus payments made by the Company to you under applicable bonus or incentive compensation plans, for the three (3)
full calendar years immediately preceding the termination of your employment. The Bonus shall be payable to you within three (3) business days following the termination of your employment. All payments due to you hereunder will be subject to all
applicable employment and withholding taxes. 
  
 (b) In addition to the Bonus, you and your eligible family members shall be entitled to continuation of the welfare benefits of medical insurance, dental insurance and life insurance until the first anniversary of the termination of your
employment with the Company. These benefits shall be provided to you at the same premium cost, and at the same coverage level, as in effect as of the effective date of termination of your employment with the Company. However, in the event the
premium cost and/or level of coverage shall change for all similarly situated executive employees of the Company, the cost and/or coverage level, likewise, shall change for you and your eligible family members in a corresponding manner. 

 
 (c) If any benefit or payment from the Company to you in
connection with a Change of Control (whether paid or payable or distributed or distributable pursuant to the terms of this letter agreement or otherwise) (a “Payment”) shall be determined to be an “Excess Parachute Payment” as
defined in Section 280G(b)(1) of the Internal Revenue Code of 1986, as amended (the “Code”), then the aggregate present value of amounts or benefits payable to you pursuant to 

 Jeffrey Potrzebowski 
 September 6, 2005 
 Page 2 
  
 this letter agreement (“Agreement Payments”) shall be reduced (but not below zero) to the Reduced Amount. The “Reduced Amount” shall
be an amount expressed in present value that maximizes the aggregate present value of Agreement Payments without causing any payments or benefits hereunder to be an Excess Parachute Payment. Anything to the contrary notwithstanding, if the Reduced
Amount is zero and it is determined further that any payment from the Company to you that is not an Agreement Payment would nevertheless be an Excess Parachute Payment, then the aggregate present value of Payments that are not Agreement Payments
shall also be reduced (but not below zero) to an amount, if any, so that the present value of such lesser amount maximizes the aggregate present value of Payments to you on an after-tax basis, taking into account income and excise taxes under
Section 1 and Section 4999 of the Code. For purposes of this Section 1, present value shall be determined in accordance with Section 280G(d)(4) of the Code. 
  
 2. As used herein, the following shall have the meanings set forth below: 
  

	 	(a)	“Cause” shall mean the occurrence or existence of any of the following with respect to you, as determined in good faith by the Board of Directors of the Company:

  

	 	(i)	conviction of a felony or conviction of any crime or offense lesser than a felony involving the property of the Company or an Affiliate of the Company, whether such conviction
occurs before or after your termination of employment; 

  

	 	(ii)	engaging in conduct that has caused demonstrable and material injury to the company or an Affiliate of the Company, monetary or otherwise; 

  

	 	(iii)	gross dereliction of duties or other gross misconduct and the failure to cure such situation within thirty (30) days after receipt of notice thereof from the compensation committee
of the Company, the Board of Directors of the Company, the Company or an Affiliate of the Company; or 

  

	 	(iv)	the disclosure or use of confidential information other than in the normal and ordinary performance of service for the Company or any Affiliate of the Company.

  

	 	(b)	“Change of Control” means the occurrence of any of the following events: 

  

	 	(i)	the purchase or other acquisition by any single Person, entity, or group of Persons (within the meaning of Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”), or any comparable successor provisions) other than Citicorp Venture Capital Ltd. (“Citicorp”) or an Affiliate (as defined herein) thereof, or a group of Persons (within the meaning of Section 13(d) or 14(d)
of the Exchange 

 Jeffrey Potrzebowski 
 September 6, 2005 
 Page 3 
  
 Act) of which Citicorp is a member, or an employee benefit plan established or maintained by the Company or any Affiliate thereof, of shares of common
stock, or of securities convertible into or exchangeable or exercisable for share of common stock or other voting securities of the Company, if immediately following such purchase or other acquisition, such single Person or group of Persons would be
the beneficial owner (within the meaning of Rule 13d-3 under the Exchange Act), directly or indirectly, of more than fifty percent (50%) of either (A) the outstanding shares of common stock of the Company or (B) the combined voting power of the
Company’s then outstanding voting securities (assuming, in the case of securities convertible into or exchangeable or exercisable for other securities, the conversion or exchange thereof); or 
  

	 	(ii)	except in the case of a transaction with Citicorp or an Affiliate thereof, (a) the Company’s reorganization, merger, or consolidation with or into another Person, unless
pursuant to such transaction the holders of the Company’s voting stock immediately prior to such transaction own more than fifty percent (50%) of the combined voting power entitled to vote generally in the election of directors of the
reorganized, merged, or consolidated Person immediately after transaction; (b) the sale or other disposition, in one or a series of transactions, of all substantially all Company’s assets; or (c) the approval by the shareholders of the Company
of a plan of liquidation, dissolution or winding up of the Company. 

  
 The definition of “Change of Control” in this letter agreement shall not be deemed to include any transaction in which you are an independent equity participant who has made an affirmative decision to invest
funds in the transaction (it being understood that a transaction in which your involvement as an equity participant is limited to a rollover of equity interests owned by you at the time of the transaction will not be deemed to involve an affirmative
decision by you to invest funds in such transaction). The definition of “Change of Control” in this letter agreement shall not affect your rights under any plan adopted by the Company or any other agreement between the Company and you. Any
payments or other benefits received by you pursuant to any such plan or agreement upon a Change of Control shall be deemed a Payment under this letter agreement and shall be subject to the provisions se forth in Section 1(c) hereof. 
  

	 	(c)	“Good Reason” shall mean the occurrence or existence of any of the following with respect to you: 

  

	 	(i)	your base salary plus bonus at target is reduced from that currently in effect, or your other employee benefits are in the aggregate materially reduced from those currently in
effect prior to the Change of Control (unless such reduction of employee benefits applies to employees of the Company generally); or 

 Jeffrey Potrzebowski 
 September 6, 2005 
 Page 4 
  

	 	(ii)	the assignment to you of any duties or responsibilities which are fundamentally inconsistent with your officer position with the Company which is not cured within thirty (30) days
of receipt by the Company of written notice from you of such assignment of inconsistent duties or responsibilities. 

  
 (d) “Affiliate” of any Person means any other Person directly or indirectly controlling, controlled by or under common control
with the specified Person. “Control” when used with respect to any Person means the power to direct the management and policies of such person, directly or indirectly, whether through the ownership of voting securities, by contract or
otherwise. The words “controlling” and “controlled” shall have corresponding meanings. The term “Affiliate” shall include, without limitation, any Person who beneficially owns voting securities of any other Person or
rights or warrants to purchase such voting securities (whether or not currently exercisable), representing 10% or more of the total voting power of the voting securities of such other Person, and any Person who would be an Affiliate of any such
beneficial owner pursuant to this paragraph. Solely for the purposes of this agreement, with respect to Citicorp (as defined below), the term “Affiliate” shall include, without limitation, any limited partnership, limited liability company
or other investment vehicle that is sponsored or managed (whether through the ownership of securities having a majority of the voting power, as a general partner or through the management of investments) by Citicorp or its Affiliates (defined
without giving effect to this clause) or present or former employees of Citicorp or its Affiliates. 
  
 (e) “Person” means any individual, corporation, partnership, joint venture, association, joint-stock company, limited liability
company, trust, unincorporated organization, government or any agency or political subdivision thereof or any other entity. 
  
 3. Nothing in this letter agreement shall be construed to give you any right to remain in the employ of the Company, and you hereby
acknowledge that you are and will remain an employee-at-will of the Company whose employment may be terminated at any time with or without Cause. In addition, except as provided in this Agreement or under applicable law, the Employee shall not be
entitled to any other benefits or compensation. 
  
 4. The term of this letter agreement shall be one (1) year commencing on the date of six months of active employment; provided, however, that this letter agreement shall be automatically renewed for successive one-year periods
commencing on March 8, 2007, and each year thereafter unless the Company gives notice to you of the termination of this letter agreement at least ninety (90) days prior to March 8, 2007, or the end of any such one-year period thereafter, as
applicable, in which case this letter agreement shall terminate on March 8, 2007, or at the end of such one-year period thereafter. 
  
 5. This letter agreement may be amended or modified only by an agreement in writing executed by you and the Company. 

 Jeffrey Potrzebowski 
 September 6, 2005 
 Page 5 
  
 6. This letter shall be construed and interpreted under the laws of the State of Indiana, without regard to conflicts of law principles of
such State. Because it is agreed that time will be of the essence in determining whether any payments are due to you under this letter agreement, any disputes arising hereunder shall be submitted to binding arbitration in Indianapolis, Indiana, or
such other place as the parties may agree. The parties agree that the arbitration award shall be the sole and exclusive remedy between them regarding any and all claims arising hereunder. 
  
 The arbitration shall be conducted pursuant to the
Commercial Rules of the American Arbitration Association, subject to the following provisions: 
  
 (a) the arbitration hearing shall be held within seven (7) days (or as soon thereafter as possible) after the selection of the arbitrator;
or no continuance of such hearing shall be allowed without the mutual consent of the parties; absence from or nonparticipation at the hearing by either party shall not prevent the issuance of an award; hearing procedures which will expedite the
hearing may be ordered at the arbitrator’s discretion; and the arbitrator may close the hearing in his or her sole discretion when he or she decides he or she has heard sufficient evidence to satisfy issuance of an award; 
  
 (b) the arbitrator’s award shall be rendered as
expeditiously as possible and the parties will request that the arbitrator render the award no later than one (1) week after the close of the hearing; the award of the arbitrator shall be final and binding upon the parties; the award may be enforced
in any appropriate court as soon as possible after its rendition; and if an action is brought to confirm the award, both parties agree that no appeal shall be taken by either party from any decision rendered in such action; an 
  
 (c) if you are the prevailing party as determined by the
arbitrator in any such arbitration proceeding you shall be awarded reasonable costs and attorneys’ fees. 
  

	 	7.	This letter agreement shall inure to the benefit of your heirs, assigns and legal representatives. This letter agreement may be executed in two (2) counterparts, each of which shall
be deemed an original and both of which shall constitute one and the same agreement. Additionally, this agreement shall be binding upon the parties hereto, and their respective successors and assigns. 

  
 [Signature Page Follows] 

 Jeffrey Potrzebowski 
 September 6, 2005 
 Page 6 
  
 If the foregoing accurately sets forth our understanding with respect to the subject matter set forth above, please sign below and return an executed copy
of this letter to the Company. 
  

			
	Very truly yours,
	
	REMY INTERNATIONAL, INC.
		
	By:	 	 /S/ Rajesh K. Shah

	Name:	 	 Rajesh K. Shah

	Title:	 	 Executive Vice President and
 Chief Operating
Officer

  
 Accepted and agreed to this

 8th day of September 2005: 
  

			
	 By:
	 	 /S/ Jeffrey Potrzebowski

	Printed:	 	Jeffrey Potrzebowski
	Title:	 	Senior Vice President and
	 	 	Chief Financial OfficerSublease Agreement dated August 17, 2005

 Exhibit 10.1 
  
 

 
  
 STANDARD SUBLEASE

 (Short-form to be used with post 1995 AIREA leases) 
 (NOTE: DO NOT USE IF LESS THAN ENTIRE PREMISES ARE BEING SUBLET. FOR SITUATIONS 
 WHERE THE PREMISES
ARE TO BE OCCUPIED BY MORE THAN ONE TENANT OR SUBTENANT USE 
 THE “STANDARD SUBLEASE–MULTI-TENANT” FORM) 

 
 1. Basic Provisions (“Basic Provisions”). 
  
 1.1 Parties: This Sublease (“Sublease”), dated for
reference purposes only August 17, 2005 is made by and between Monterey Carpets, Inc., a Delaware corporation (“Sublessor”) and IMPCO Technologies, Inc., a Delaware corporation (“Sublessee”), (collectively the
“Parties”, or Individually a “Party”). 
  
 1.2 Premises: That certain
real property, including all improvements therein, and commonly known by the street address of 3030 South Susan Street, Santa Ana located in the County of Orange. State of California and generally described as (describe briefly the nature of the
property) that certain 108,000+ square feet concrete tilt-up building including 4,000 square feet of second story offices on approximately 4.5+ acres of land (“Premises”). 
  
 1.3 Term: Thirteen (13) years and zero (0) months commencing September
1, 2005 (“Commencement Date”) and ending August 31, 2018 (“Expiration Date”). 
  
 1.4 Early Possession: N/A. (“Early Possession Date”). 
  
 1.5 Base Rent: $59,500.00 per month (“Base Rent”), payable on the first (1st) day of each
month commencing December 1, 2005 
  

	þ	If this box is checked, there are provisions in this Lease for the Base Rent to be adjusted. 

  
 1.6 Base Rent and Other Monies Paid Upon Execution: 
  
 (a) Base Rent: $59,500.00 for the period 
  
 (b) Security Deposit: $59,500.00 (“Security
Deposit”). 
  
 (c) Association
Fees: $0.00 for the period 
  
 (d)
Other: $0.00 for
                                        
                                        
                                        
         
  
 (e) Total Due Upon Execution of this Lease: $119,000.00 
  
 1.7 Agreed Use: Warehouse, manufacturing of automotive products, the uses described in Exhibit A to this Sublease and any other uses which are permitted in the Premises under applicable zoning laws provided Master Lessor has
consented to such uses 
  
 1.8 Real Estate Brokers:

  
 (a) Representation: The following real
estate brokers ( the “Brokers”) and brokerage relationships exist in this transaction (check applicable boxes): 
  

	þ	Grubb & Ellis Company represents Sublessor exclusively (“Sublessor’s Broker”); 

  

	þ	Colliers Seeley International, Inc. represents Sublessee exclusively (“Sublessee’s Broker”); or 

  

	 ̈	                                      
                               represents both Sublessor and Sublessee (“Dual
Agency”). 

  
 (b)
Payment to Brokers: Upon execution and delivery of this Sublease by both Parties. Sublessor shall pay to the Brokers the brokerage fee agreed to in a separate written agreement (or if there is no such agreement, the sum of
                                 or
                                        %
of the total Base Rent) for the brokerage services rendered by the Brokers. 
  
 1.9 Guarantor. The obligations of the Sublessee under this Sublease shall be guaranteed by N/A (“Guarantor”). 
  
 1.10 Attachments. Attached hereto are the following, all of which constitute a part of this Sublease: 
  

	þ	an Addendum consisting of Paragraphs 14 through 26; 

  

	 ̈	a plot plan depicting the Premises; 

  

	 ̈	a Work Letter; 

  

	þ	a copy of the Master Lease; 

  

	þ	other (specify): Exhibits A, B and C 

  

					
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 2. Premises. 
  
 2.1 Letting. Sublessor hereby subleases to Sublessee, and Sublessee hereby subleases from Sublessor, the Premises, for the term, at the rental, and
upon all of the terms, covenants and conditions set forth in this Sublease. Unless otherwise provided herein, any statement of size set forth in this Sublease, or that may have been used in calculating Rent, is an approximation which the Parties
agree is reasonable and any payments based thereon are not subject to revision whether or not the actual size is more or less. Note: Sublessee is advised to verify the actual size prior to executing this Sublease. 
  
 2.2 Condition. Sublessor shall deliver the Premises to Sublessee broom
clean and free of debris on the Commencement Date or the Early Possession Date, whichever first occurs (“Start Date”), and warrants that the existing electrical, plumbing, fire sprinkler, lighting, heating, ventilating and air
conditioning systems (“HVAC”), and any items which the Sublessor is obligated to construct pursuant to the Work Letter attached hereto, if any. other than those constructed by Sublessee, shall be in good operating condition on said
date. If a non-compliance with such warranty exists as of the Start Date, or if one of such systems or elements should malfunction or fail within the appropriate warranty period. Sublessor shall, as Sublessor’s sole obligation with respect to
such matter, except as otherwise provided in this Sublease, promptly after receipt of written notice from Sublessee setting forth with specificity the nature and extent of such non-compliance, malfunction or failure, rectify same at Sublessor’s
expense. The warranty periods shall be 30 days. If Sublessee does not give Sublessor the required notice within the appropriate warranty period, correction of any such non-compliance, malfunction or failure shall be the obligation of Sublessee at
Sublessee’s sole cost and expense. 
  
 2.3 Compliance.
Sublessor warrants that any improvements, alterations or utility installations made or installed by or on behalf of Sublessor to or on the Premises Including, without limitation, the approximately five (5) batteries Installed by Sublessor on the
Premises and removed by Sublessor prior to the Commencement Date comply with all applicable covenants or restrictions of record and applicable building codes, regulations and ordinances including, without limitation, any Hazardous Materials Laws (as
defined in Section 10 4.6 of the Master Lease) (“Applicable Requirements”) in effect on the date that they were made or installed. Sublessor makes no warranty as to the use to which Sublessee will put the Premises or to
modifications which may be required by the Americans with Disabilities Act or any similar laws as a result of Sublessee’s use. NOTE: Sublessee is responsible for determining whether or not the zoning and other Applicable Requirements are
appropriate for Sublessee’s intended use, and acknowledges that past uses of the Premises may no longer be allowed. If the Premises do not comply with said warranty, Sublessor shall, except as otherwise provided, promptly after receipt of
written notice from Sublessee setting forth with specificity the nature and extent of such non-compliance, rectify the same. 
  
 2.4 Acknowledgements. Sublessee acknowledges that (a) it has been advised by Sublessor and/or Brokers to satisfy itself with respect to the
condition of the Premises (Including but not limited to the electrical. HVAC and fire sprinkler systems, security, environmental aspects, and compliance with Applicable Requirements and the Americans with Disabilities Act), and their suitability for
Sublessee’s intended use. (b) Sublessee has made such investigation as it deems necessary with reference to such matters and assumes all responsibility therefor as the same relate to its occupancy of the Premises, and (c) neither Sublessor.
Sublessor’s agents, nor Brokers have made any oral or written representations or warranties with respect to said matters other than as set forth In this Sublease. In addition, Sublessor acknowledges that: (i) Brokers have made no
representations, promises or warranties concerning Sublessee’s ability to honor the Sublease or suitability to occupy the Premises, and (ii) it is Sublessor’s sole responsibility to investigate the financial capability and/or suitability
of all proposed tenants. 
  
 2.5 Americans with
Disabilities. Act In the event that as a result of Sublessee’s use, or intended use, of the Premises the Americans with Disabilities Act or any similar law requires modifications or the construction or installation of improvements in or to
the Premises, Building, Project and/or Common Areas, the Parties agree that such modifications, construction or improvements shall be made at:  ̈
Sublessor’s expense þ Sublessee’s expense. 
  
 3. Possession. 
  
 3.1 Delay in
Commencement. Sublessor agrees to use its best commercially reasonable efforts to deliver possession of the Premises by the Commencement Date.  
  
 3.2 Sublessee Compliance. Sublessor shall not be required to tender possession of the Premises to Sublessee until
Sublessee complies with its obligation to provide evidence of insurance. Pending delivery of such evidence, Sublessee shall be required to perform all of its obligations under this Sublease from and after the Start Date. Including the payment of
Rent, notwithstanding Sublessor’s election to withhold possession pending receipt of such evidence of insurance. Further, if Sublessee is required to perform any other conditions prior to or concurrent with the Start Date, the Start Date shall
occur but Sublessor may elect to withhold possession until such conditions are satisfied. 
  
 4. Rent and Other Charges. 
  
 4.1 Rent Defined. All monetary obligations of Sublessee to Sublessor under the terms of this Sublease (except for the Security Deposit) are deemed to be rent (“Rent”). Rent shall be payable in lawful money of the
United States to Sublessor at the 

  

					
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address slated herein or to such other persons or at such other places as Sublessor may designate in writing. 
  
 4.2 Utilities. Sublessee shall pay for all water, gas, heat, light,
power, telephone, trash disposal and other utilities and services supplied to the Premises, together with any taxes thereon. 
  
 5. Security Deposit. The rights and obligations of Sublessor and Sublessee as to said Security Deposit shall be as set forth in Paragraph 5.7 of the Master Lease
(as modified by Paragraph 7.3 of this Sublease). 
  
 6. Agreed Use. The
Premises shall be used and occupied only for Warehouse, manufacturing of automotive products, the uses described in Exhibit A to this Sublease and any other uses which are permitted in the Premises under applicable zoning laws provided Master Lessor
has consented to such uses and for no other purpose. 
  
 7. Master Lease.

  
 7.1 Sublessor is the lessee of the Premises by virtue of a
lease, hereinafter the “Master Lease”, wherein Lapco Industrial Parks, a California joint venture is the lessor, hereinafter the “Master Lessor” 
  
 7.2 This Sublease is and shall be at all times subject and subordinate to the Master Lease. 
  
 7.3 The terms, conditions and respective obligations of Sublessor and
Sublessee to each other under this Sublease shall be the terms and conditions of the Master Lease except for those provisions of the Master Lease which are directly contradicted by this Sublease in which event the terms of this Sublease document
shall control over the Master Lease. Therefore, for the purposes of this Sublease, wherever in the Master Lease the word “Landlord” is used it shall be deemed to mean the Sublessor herein and wherever in the Master Lease the word
“Tenant” is used it shall be deemed to mean the Sublessee herein. 
  
 7.4 During the term of this Sublease and for all periods subsequent for obligations which have arisen prior to the termination of this Sublease, Sublessee does hereby expressly assume and agree to perform and comply
with, for the benefit of Sublessor and Master Lessor, each and every obligation of Sublessor under the Master Lease except for the following paragraphs which are excluded therefrom: 12.2, 12.3, 33 and 38, Section 3 of the First Amendment to Lease
dated May 25, 2000 and Sections 5, 13 and 14 of the Second Amendment to Lease dated September 9, 2003. 
  
 7.5 The obligations that Sublessee has assumed under paragraph 7.4 hereof are hereinafter referred to as the “Sublessee’s Assumed
Obligations”. The obligations that sublessee has not assumed under paragraph 7.4 hereof are hereinafter referred to as the “Sublessor’s Remaining Obligations”. 
  
 7.6 Sublessee shall hold Sublessor free and harmless from all liability, judgments, costs, damages, claims or demands,
including reasonable attorneys fees, arising out of Sublessee’s failure to comply with or perform Sublessee’s Assumed Obligations. 
  
 7.7 Sublessor agrees to maintain the Master Lease during the entire term of this Sublease, subject, however, to any earlier termination of the Master
Lease without the fault of the Sublessor, and to comply with or perform Sublessor’s Remaining Obligations and to hold Sublessee free and harmless from all liability, judgments, costs, damages, claims or demands arising out of Sublessor’s
failure to comply with or perform Sublessor’s Remaining Obligations. 
  
 7.8 Sublessor represents to Sublessee that the Master Lease is in full force and effect and that no default exists on the part of any Party to the Master Lease. 
  
 8. Assignment of Sublease and Default. 
  
 8.1 Sublessor hereby assigns and transfers to Master Lessor Sublessor’s
interest in this Sublease, subject however to the provisions of Paragraph 8.2 hereof. 
  
 8.2 Master Lessor, by executing this document, agrees that until a Default shall occur in the performance of Sublessor’s Obligations under the Master Lease, that Sublessor may receive, collect and enjoy the Rent accruing under this Sublease. However, if Sublessor shall Default in the performance of its
obligations to Master Lessor then Master Lessor may, at its option, receive and collect, directly from Sublessee, all Rent owing and to be owed under this Sublease. In the event, however, that the amount collected by Master Lessor exceeds
Sublessor’s obligations any such excess shall be refunded to Sublessor. Master Lessor shall not, by reason of this assignment of the Sublease nor by reason of the collection of the Rent from the Sublessee, be deemed liable to Sublessee for any
failure of the Sublessor to perform and comply with Sublessor’s Remaining Obligations. 
  
 8.3 Sublessor hereby irrevocably authorizes and directs Sublessee upon receipt of any written notice from the Master Lessor stating that a Default exists in the performance of Sublessor’s obligations under the
Master Lease, to pay to Master Lessor the Rent due and to become due under the Sublease. Sublessor agrees that Sublessee shall have the right to rely upon any such statement and request from Master Lessor, and that Sublessee shall pay such Rent to
Master Lessor without any obligation or right to inquire as to whether such Default exists and notwithstanding any notice from or claim from Sublessor to the contrary and Sublessor shall have no right or claim against Sublessee for any such Rent so
paid by Sublessee. 
  
 8.4 No changes or modifications shall be
made to this Sublease without the consent of Master Lessor. 
  
 9. Consent of
Master Lessor. 
  
 9.1 In the event that the Master Lease
requires that Sublessor obtain the consent of Master Lessor to any subletting by Sublessor then, this Sublease shall not be effective unless, within 40 30 days of the date hereof, Master Lessor signs this Sublease thereby giving its consent to this
Subletting. 
  
 9.2 In the event that the obligations of the
Sublessor under the Master Lease have been guaranteed by third parties then neither this Sublease, nor the Master Lessor’s consent, shall be effective unless, within 10 days of the date hereof, said guarantors sign this Sublease thereby giving
their consent to this Sublease. 
  

					
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 9.3 In the event that Master Lessor does give such consent then: 
  
 (a) Such consent shall not release Sublessor of its
obligations or alter the primary liability of Sublessor to pay the Rent and perform and comply with all of the obligations of Sublessor to be performed under the Master Lease. 
  
 (b) The acceptance of Rent by Master Lessor from Sublessee or any one else liable under the Master Lease
shall not be deemed a waiver by Master Lessor of any provisions of the Master Lease. 
  
 (c) The consent to this Sublease shall not constitute a consent to any subsequent subletting or assignment. 
  
 (d) In the event of any Default of Sublessor under the
Master Lease, Master Lessor may proceed directly against Sublessor, any guarantors or any one else liable under the Master Lease or this Sublease without first exhausting Master Lessor’s remedies against any other person or entity liable
thereon to Master Lessor. 
  
 (e) Master Lessor
may consent to subsequent sublettings and assignments of the Master Lease or this Sublease or any amendments or modifications thereto without notifying Sublessor or any one else liable under the Master Lease and without obtaining their consent and
such action shall not relieve such persons from liability. 
  
 (f) In the event that Sublessor shall Default in its obligations under the Master Lease, then Master Lessor, at its option and without being obligated to do so, may require Sublessee to attorn to Master Lessor in
which event Master Lessor shall undertake the obligations of Sublessor under this Sublease from the time of the exercise of said option to termination of this Sublease but Master Lessor shall not be liable for any prepaid Rent nor any Security
Deposit paid by Sublessee, nor shall Master Lessor be liable for any other Defaults of the Sublessor under the Sublease. 
  
 (g) Unless directly contradicted by other provisions of this Sublease, the consent of Master Lessor to this Sublease shall not constitute
an agreement to allow Sublessee to exercise any options which may have been granted to Sublessor in the Master Lease. 
  
 9.4 The signatures of the Master Lessor and any Guarantors of Sublessor at the end of this document shall constitute their consent to the terms of this
Sublease. 
  
 9.5 Master Lessor acknowledges that, to the best of
Master Lessor’s knowledge, no Default presently exists under the Master Lease of obligations to be performed by Sublessor and that the Master Lease is in full force and effect. 
  
 9.6 In the event that Sublessor Defaults under its obligations to be performed under the Master Lease by Sublessor. Master
Lessor agrees to deliver to Sublessee a copy of any such notice of default Sublessee shall have the right to cure any Default of Sublessor described in any notice of default within ten days after service of such notice of default on Sublessee. If
such Default is cured by Sublessee then Sublessee shall have the right of reimbursement and offset from and against Sublessor. 
  
 10. Representations and indemnities of Broker Relationships. The Parties each represent and warrant to the other that it has had no dealings with any person, firm,
broker or finder (other than the Brokers, if any) in connection with this Sublease, and that no one other than said named Brokers is entitled to any commission or finder’s fee in connection herewith. Sublessee and Sublessor do each hereby agree
to indemnify, protect, defend and hold the other harmless from and against liability for compensation or charges which may be claimed by any such unnamed broker, finder or other similar party by reason of any dealings or actions of the indemnifying
Party, including any costs, expenses, attorneys’ fees reasonably incurred with respect thereto. 
  
 11. Attorney’s fees. If any Party or Broker brings an action or proceeding involving the Premises whether founded in fort, contract or equity, or to declare rights hereunder, the Prevailing Party (as
hereafter defined) in any such, proceeding, action, or appeal thereon, shall be entitled to reasonable attorneys’ fees. Such fees may be awarded in the same suit or recovered in a separate suit, whether or not such action or proceeding is
pursued to decision or judgment. The term, “Prevailing Party” shall include, without limitation, a Party or Broker who substantially obtains or defeats the relief sought, as the case may be, whether by compromise, settlement, judgment, or
the abandonment by the other Party or Broker of its claim or defense. The attorneys’ fees award shall not be computed in accordance with any court fee schedule, but shall be such as to fully reimburse all attorneys’ fees reasonably
incurred in addition. Sublessor shall be entitled to attorneys’ fees, costs and expenses incurred in the preparation and service of notices of Default and consultations in connection therewith, whether or not a legal action is subsequently
commenced in connection with such Default or resulting Breach ($200 is a reasonable minimum per occurrence for such services and consultation). 
  

					
	 _________
	  	PAGE 4 OF 6	  	

	 _________
	  	 	  
	 INITIALS
	  	 	  	INITIALS
	 ©1997 - AIR COMMERCIAL REAL ESTATE ASSOCIATION
	  	FORM SBS-2-4/01E

 12. No Prior or Other Agreements; Broker Disclaimer. This Sublease contains all agreements between the Parties
with respect to any matter mentioned herein, and no other prior or contemporaneous agreement or understanding shall be effective. Sublessor and Sublessee each represents and warrants to the Brokers that it has made, and is relying solely upon, its
own investigation as to the nature, quality, character and financial responsibility of the other Party to this Sublease and as to the use, nature, quality and character of the Premises. Brokers have no responsibility with respect thereto or with
respect to any default or breach hereof by either Party. The liability (including court costs and attorneys’ fees), of any Broker with respect to negotiation, execution, delivery or performance by either Sublessor or Sublessee under this
Sublease or any amendment or modification hereto shall be limited to an amount up to the fee received by such Broker pursuant to this Sublease; provided, however, that the foregoing limitation on each Broker’s liability shall not be applicable
to any gross negligence or willful misconduct of such Broker. 
  
 ATTENTION: NO REPRESENTATION OR RECOMMENDATION IS MADE BY THE AIR COMMERCIAL REAL ESTATE ASSOCIATION OR BY ANY REAL ESTATE BROKER AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS SUBLEASE OR THE TRANSACTION TO
WHICH IT RELATES. THE PARTIES ARE URGED TO: 
  
 1. SEEK ADVICE OF COUNSEL AS TO
THE LEGAL AND TAX CONSEQUENCES OF THIS SUBLEASE. 
  
 2. RETAIN APPROPRIATE
CONSULTANTS TO REVIEW AND INVESTIGATE THE CONDITION OF THE PREMISES. SAID INVESTIGATION SHOULD INCLUDE BUT NOT BE LIMITED TO: THE POSSIBLE PRESENCE OF HAZARDOUS SUBSTANCES, THE ZONING OF THE PROPERTY, THE STRUCTURAL INTEGRITY, THE CONDITION OF THE
ROOF AND OPERATING SYSTEMS, AND THE SUITABILITY OF THE PREMISES FOR SUBLESSEE’S INTENDED USE. 
  
 WARNING: IF THE SUBJECT PROPERTY IS LOCATED IN A STATE OTHER THAN CALIFORNIA, CERTAIN PROVISIONS OF THE SUBLEASE MAY NEED TO BE REVISED TO COMPLY WITH LAWS OF THE STATE IN WHICH THE PROPERTY IS LOCATED

  

									
	 Executed at: 
	 	 	 	 	 	 Executed at: 
	 	 CERRITOS, CA

	 On:
	 	 	 	 	 	 On:
	 	 AUGUST 17, 2005

					
	By Sublessor:  	 	 	 	 	 	By Sublessee:  	 	 
	 Monterey Carpets, Inc.,
	 	 	 	 IMPCO Technologies, Inc.,

	 a Delaware corporation
	 	 	 	 a Delaware corporation

					
	 By:
	 	 	 	 	 	 By:
	 	/s/    BRAD GARNER        
	 Name Printed: 
	 	 	 	 	 	 Name Printed: 
	 	BRAD GARNER
	 Title:
	 	 	 	 	 	 Title:
	 	COP
					
	 By:
	 	 	 	 	 	 By:
	 	/s/    THOMAS M.
COSTALES        
	 Name Printed: 
	 	 	 	 	 	 Name Printed: 
	 	THOMAS M. COSTALES
	 Title:
	 	 	 	 	 	 Title:
	 	CFO
	 Address: ___________________________________
	 	 	 	 Address:
	 	 16804 GRIDLEY PLACE
 CERRITOS, CA 90703

	 	 	 	 	 Telephone:(562)  860-6666
 Facsimile:(562)  924-8069
 Federal ID No. 91-1039211

	 Telephone:(    ) 
	 	 	 	 	 
	 Facsimile:(    ) 
	 	 	 	 	 
	 Federal ID No.
	 	 	 	 	 
			
	BROKER:	 	 	 	BROKER:
			
	 Grubb & Ellis Company
	 	 	 	 Colliers Seeley International, Inc.

					
	 Attn:
	 	 	 	 	 	 Attn:
	 	

	 Title:
	 	 	 	 	 	 Title:
	 	

	 Address:
	 	 	 	 	 	 Address:
	 	

	 	 	 	 	 	 	 
	 Telephone:(    ) 
	 	 	 	 	 	 Telephone:(    ) 
	 	

	 Facsimile:(    ) 
	 	 	 	 	 	 Facsimile:(    ) 
	 	

	 Federal ID No.
	 	 	 	 	 	 Federal ID No
	 	 

  
 Consent to the above Sublease is
hereby given. 
  

					
	 _________
	  	PAGE 5 OF 6	  	

	 _________
	  	 	  
	 INITIALS
	  	 	  	INITIALS
	 ©1997 - AIR COMMERCIAL REAL ESTATE ASSOCIATION
	  	FORM SBS-2-4/01E

									
	 Executed at:
	 	 	 	 	 	 Executed at:
	 	 

									
	 On:
	 	 	 	 	 	 On:
	 	 

									
			
	By Master Lessor:	 	 	 	By Guarantor(s):
	 Lapco Industrial Parks,
	 	 	 	 By:
	 	 

									
	 a California joint venture
	 	 	 	 Name Printed:
	 	 

									
	 	 	 	 	 Address:
	 	 

									
	 By:
	 	 	 	 	 	 

									
	 Name Printed:
	 	 	 	 	 	 

									
	 Title:
	 	 	 	 	 	 

									
					
	 	 	 	 	 	 	By:	 	 

									
	 	 	 	 	 Name Printed:
	 	 

									
	 By:
	 	 	 	 	 	 Address:
	 	 

									
	 Name Printed:
	 	 	 	 	 	 

									
	 Title:
	 	 	 	 	 	 

									
	 Address:
	 	 	 	 	 	 

									
	 	 	 	 	 

									
	 Telephone:(        )
	 	 	 	 	 	 

									
	 Facsimile:(        )
	 	 	 	 	 	 

									
	 Federal ID No.
	 	 	 	 	 	 

  
 NOTE: These forms are often
modified to meet changing requirements of law and needs of the industry. Always write or call to make sure you are utilizing the most current form: AIR COMMERCIAL REAL ESTATE ASSOCIATION, 700 So. Flower St. Suite 600, Los Angeles, CA 90017- (213)
687-8777. 
  
 ©Copyright 1997 By AIR Commercial Real Estate Association. All rights reserved. No part
of these works may be reproduced in any form without permission in writing. 
  

					
	 _________
	  	PAGE 6 OF 6	  	

	 _________
	  	 	  
	 INITIALS
	  	 	  	INITIALS
	 ©1997 - AIR COMMERCIAL REAL ESTATE ASSOCIATION
	  	FORM SBS-2-4/01E

 ADDENDUM 
  

This document shall constitute an Addendum (this “Addendum”) to the AIREA Standard Sublease, dated August 17, 2005 (the
“Sublease”), between MONTEREY CARPETS, INC., a Delaware corporation (“Sublessor”) and IMPCO TECHNOLOGIES, INC., a Delaware corporation (“Sublessee”) with respect to the premises located at 3030 South Susan Street, Santa
Ana, California (“Premises”). The following provisions are added to the Sublease. All terms set forth in the Sublease shall be deemed fully incorporated herein. In the event of any contradiction or ambiguity between the terms set forth
herein and the Sublease or Master Lease, the terms set forth herein shall control. 
  
 14. Rent Abatement. 
  
 (a) All rent under the
Sublease including, without limitation, Basic Rent, Operating Expenses and Real Property Taxes, will be conditionally abated for the first three (3) months of the Term of the Sublease (“Conditional Rent”), Conditional Rent means that rent
including, without limitation, Basic Rent, Operating Expenses and Real Property Taxes, payable with respect to the Premises during such period accrues as a contingent obligation of Sublessee to Sublessor but is not payable unless a default by
Sublessee occurs under the Sublease during the first three (3) months of the Term of the Sublease. Upon the occurrence of a default by Sublessee under the Sublease during the first three (3) months of the Term of the Sublease, Conditional Rent will
automatically become immediately due and payable to Sublessor without notice or demand or any kind. If no default by Sublessee under the Sublease occurs during the first three (3) months of the Term of the Sublease, Sublessee’s contingent
obligation to pay such Conditional Rent will automatically terminate on the last day of such three (3) month period and Sublessee will be released from such obligation. 
  
 (b) If Sublessor is unable to deliver possession of the Premises to Sublessee within thirty (30) days after the Commencement
Date (the “Outside Delivery Date”), Sublessee shall be entitled to a rent credit in the form of an abatement (which shall be in addition to the three (3) months’ Rent abatement provided in Section 14(a) above), in an amount equal to
one day’s total Rent including, without limitation, Basic Rent, Operating Expenses and Real Property Taxes, for each day of delay after the Outside Delivery Date until Sublessor delivered possession of the Premises to Subtenant as required
under the Sublease. 
  
 15. Rent Adjustment. Base Rent shall be increased
by three percent (3%) every twelve (12) months during the Term of the Sublease, commencing on the twelve (12) month anniversary of the Commencement Date. 
  
 16. Contingencies. The effectiveness of the Sublease is contingent upon Master Lessor consenting to the Sublease in writing within forty-five (45) days after the
date of the Sublease. If such contingency is not satisfied, then either Sublessor or Sublessee may by written notice to the other terminate the Sublease, in which event Sublessor shall return to Sublessee all prepaid amounts and neither party shall
have any liability to the other under the Sublease; provided, however, that Sublessee agrees that it shall not thereafter lease or attempt to lease the Premises directly from Master Lessor. 
  
 17. Replacement; Repair. Master Lessor shall at its sole cost and expense replace the
roof membrane of the Premises not later than March 31, 2006. Sublessor shall at its sole cost and expense replace the areas of carpeting in the Premises depicted on Exhibit B to the Sublease not later than the 

  

					
	 	  	 	  	

 
Commencement Date. Notwithstanding anything to the contrary contained in the Master Lease or the Sublease, Master Lessor shall maintain the roof membrane at
the sole cost and expense of Sublessor until the roof membrane is replaced in accordance with the previous sentence. 
  
 18. Cleaning and Painting. 
  
 (a) Not later than the Commencement Date, Sublessor shall at its sole cost and expense (a) clean or cause to be cleaned all carpet in the Premises that is
not being replaced pursuant to Section 17 above and (b) paint the lobby and exterior entry leading to the building on the Premises. 
  
 (b) Sublessor shall pay all of the costs charged by Master Lessor for the first painting of the exterior of the Building performed by Master Lessor after
the Commencement Date pursuant to Section 16.1.2 of the Master Lease. The costs of all subsequent paint jobs undertaken by Master Lessor pursuant to Section 16.1.2 of the Master Lease shall be the sole responsibility of Sublessee. 
  
 19. Personal Property. 
  
 (a) During the Term of the Sublease, Sublessee shall have the right to use, at no additional charge, the following personal
property of Sublessor (“Sublessor’s Personal Property”) in the Premises to the extent such personal property is located on the Premises on the date of the Sublease: 
  
 (i) Complete telephone (including, without limitation, handsets) and computer wiring system; 
  
 (ii) Complete fire prevention system; 
  
 (iii) Alarm security system; 
  
 (iv) Time clock system; 
  
 (v) Complete furniture including the following: 
  
 (A) Office furniture (desks, cabinets, shelves, cubicles, etc.); 

 
 (B) Conference rooms with accessories (tables, chairs, shelves and
projection screens); 
  
 (C) Kitchenette with accessories
(tables, chairs, refrigerator and microwave); 
  
 (D) Restroom
fixtures; and 
  
 (E) Televisions; 
  
 (vi) All lighting fittings and controls; 
  
 provided, however, that voicemail, computer servers or any other computer or electronic
equipment shall not be provided by Sublessor. Sublessor’s Personal Property is shown in Exhibit C to the Sublease. All right, title and interest in Sublessor’s Personal Property shall be in and remain with Sublessor and no right, title or
interest in Sublessor’s Personal Property shall pass to Sublessee other than the right to possess and use Sublessor’s Personal Property for the Term of the Sublease. 
  
 (b) Sublessee shall: (a) maintain conspicuously on any of Sublessor’s Personal Property such labels, plates, decals or
other markings as Sublessor may reasonably require, stating that Sublessor is the owner of such Personal Property; (b) furnish to Sublessor such information concerning the condition, location, use and operation of Sublessor’s Personal Property
as Sublessor reasonably may request; (c) make no additions, alterations, modifications or improvements to any item of Sublessor’s Personal Property without Sublessor’s prior written consent; (d) not, directly or 

  

					
	 	  	2	  	

 
indirectly, create, incur or permit to exist any lien, encumbrance, mortgage, pledge, attachment or security interest on or with respect to Sublessor’s
Personal Property (except those of persons claiming by, through or under Sublessor); (e) use Sublessor’s Personal Property solely in the conduct of Sublessee’s business and keep Sublessor’s Personal Property in the Premises; (f) give
and record such notices and to take such other action at its own expense as may be necessary to prevent any third party (other than an assignee of Sublessor) from acquiring or having the right under any circumstances to acquire any interest in
Sublessor’s Personal Property; and (g) pay when due all license fees, assessments, and sales, use, property, excise, privilege and other taxes (including any related interest or penalties) or other charges or fees now or hereafter imposed by
any governmental body or agency upon any of Sublessor’s Personal Property, or with respect to the manufacturing, ordering, shipment, purchase, ownership, delivery, installation, leasing, operation, possession, use, return, or other disposition
thereof or the rentals hereunder (other than taxes on or measured solely by the net income of Sublessor). 
  
 (c) SUBLESSEE ACKNOWLEDGES THAT SUBLESSOR IS NOT THE MANUFACTURER OR SUPPLIER OF SUBLESSOR’S PERSONAL PROPERTY, NOR THE AGENT THEREOF, AND THAT
SUBLESSOR MAKES NO EXPRESS OR IMPLIED REPRESENTATIONS OR WARRANTIES AS TO ANY MATTER WHATSOEVER IN CONNECTION WITH SUBLESSOR’S PERSONAL PROPERTY, INCLUDING WITHOUT LIMITATION, THE MERCHANTABILITY OF SUBLESSOR’S PERSONAL PROPERTY, ITS
FITNESS FOR A PARTICULAR PURPOSE, ITS DESIGN OR CONDITION, ITS CAPACITY OR DURABILITY, OR THE QUALITY OF THE MATERIAL OR WORKMANSHIP IN THE MANUFACTURE OR ASSEMBLY OF SUBLESSOR’S PERSONAL PROPERTY. Sublessor is not responsible for any repairs
or service to Sublessor’s Personal Property, defects therein or failures in the operation thereof. For so long as Sublessee performs each and all of its obligations under this Sublease, Sublessee shall be the beneficiary of, and shall be
entitled to, all rights under any applicable manufacturer’s or vendor’s warranties with respect to Sublessor’s Personal Property, to the extent permitted by law. If Sublessor’s Personal Property does not operate as warranted,
becomes obsolete, or is unsatisfactory for any reason whatsoever, Sublessee shall make all claims on account thereof solely against the manufacturer or supplier and not against Sublessor, and Sublessee shall nevertheless pay all Rent payable under
this Sublease. Sublessor shall have no liability in connection with or arising out of the ownership, leasing, furnishing, performance or use of Sublessor’s Personal Property or any special, indirect, incidental or consequential damages of any
character, including, without limitation, loss of use of production facilities or equipment, loss of profits, property damage or lost production, whether suffered by Sublessee or any third party. 
  
 (d) If all or any portion of an item of Sublessor’s Personal Property
becomes lost, stolen, destroyed, damaged beyond repair or rendered permanently unfit for use for any reason, or in the event of any condemnation, confiscation, theft or seizure or requisition of title to or use of such item, Sublessee shall either
immediately pay to Sublessor an amount equal to the then fair market value of such item of Sublessor’s Personal Property. 
  
 20. Late Charges. Sublessee hereby acknowledges that late payment by Sublessee of Rent will cause Sublessor to incur costs not contemplated by this Lease, the
exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges, and late charges which may be imposed upon Sublessor by any Lender. Accordingly, if any Rent shall not be
received by Sublessor within 5 days after such amount shall be due, then, without any requirement for notice to Sublessee, Sublessee shall immediately pay to Sublessor a one-time late charge equal to 10% of each such overdue amount or $100, whichever is greater. Sublessor and 

  

					
	 	  	3	  	

 
Sublessee hereby agree that such late charge represents a fail and reasonable estimate of the costs Sublessor will incur by reason of such late payment.
Acceptance of such late charge by Sublessor shall in no event constitute a waiver of Sublessee’s default or breach with respect to such overdue amount, nor prevent the exercise of any of the other rights and remedies granted hereunder. In the
event that a late charge is payable thereunder, whether or not collected, for three (3) consecutive installments of Base Rent, then notwithstanding any provision of this Lease to the contrary, Base Rent shall, at Sublessor’s option, become due
and payable quarterly in advance. 
  
 21. Interest. Any monetary payment
due Sublessor under the Sublease, other than late charges, not received by Sublessor, when due as to scheduled payments (such as Base Rent) or within thirty (30) days following the date on which it was due for non-scheduled payment, shall bear
interest from the date when due, as to scheduled payments, or the 31st day after it was due as to non-scheduled payments. The interest (“Interest”) charged shall be computed at the rate of 10% per annum but shall not exceed the maximum
rate allowed by law. Interest is payable in addition to the potential late charge provided for in Section 21. 
  
 22. Definition of Default. As used in the Sublease, “Default” shall mean any of the events described in Section 24.1 of the Master Lease. 
  
 23. Indemnities. 
  
 (a) Sublessor Indemnity. Notwithstanding anything to the contrary in the Sublease, Sublessor shall indemnity, defend (with counsel reasonably
approved by Sublessee), and hold Sublessee harmless from any loss, cost, liability, damage or expense including, but not limited to, penalties, fines, and actual attorneys’ fees and costs (collectively, “Claims”) arising from any
breach or default in the performance of any obligation to be performed by Sublessor under the Sublease, or arising from any negligent act, fault or omission of Sublessor or of its agents, employees or contractors, and from and against all costs,
attorneys’ fees, expenses, and liabilities incurred in, or arising out of, any such Claims or any action or proceeding brought thereon including, without limitation, any Claim incurred by Sublessee related to any Hazardous Materials handled,
transported, stored, treated, disposed of or used by Sublessor including, without limitation, any Claim related to the batteries installed and removed by Sublessor on the Premises, except to the extent such liability arises from the willful
misconduct or gross negligence of Sublessee. 
  
 (b) Sublessee
Indemnity. Notwithstanding anything to the contrary in the Sublease, Sublessee shall indemnify, defend (with counsel reasonably approved by Sublessor), and hold Sublessor harmless from any Claims arising from any breach or default in the
performance of any obligation to be performed by Sublessee under the Sublease, or arising from any negligent act, fault or omission of Sublessee or of its agents, employees or contractors, and from and against all costs, attorneys’ fees,
expenses, and liabilities incurred in, or arising out of, any such Claims or any action or proceeding brought thereon including, without limitation, any Claim incurred by Sublessee related to any breach of Section 10.4 of the Sublease (as modified
by Section 7.3 of the Sublease) by Sublessee, except to the extent such liability arises from the willful misconduct or gross negligence of Sublessor. 
  

					
	 	  	4	  	

 24. Consent to Certain Work. Sublessor consents to the following work to be performed by Sublessee in the
Premises: 
  
 (a) installation of a 10’ X 10’ loading
door in the north wall approximately 30’ west of the east Susan Street wall; 
  
 (b) construction of six (6) Dyno rooms approximately 10’ X 14’ up to 16’ X 20’ within the warehouse as described in Exhibit A of the Sublease; and 
  
 (c) enhancement of the existing warehouse restrooms. 
  
 25. Non-Disturbance Agreement. Sublessor shall use commercially reasonable efforts to
cause Master Lessor to use commercially reasonable efforts to obtain a non-disturbance agreement in favor of Sublessee from Master Lessor’s lender as soon as reasonably practicable following execution of the Sublease 
  
 26. General Provisions: This Addendum shall be deemed to have been mutually drafted by
the parties. Any ambiguities or interpretations shall not be construed against either party. Except as amended by this Addendum, in case of any conflicting or contradictory provisions contained herein to the terms and provisions of the Sublease or
Master Lease, this Addendum shall prevail and the parties hereto do ratify and confirm the Sublease in all respects, and agree to perform and be bound by the terms of the Sublease as amended by this Addendum. If at any time any provision of the
Sublease or this Addendum is or becomes illegal, invalid or unenforceable in any respect under the law or any jurisdiction, neither the legality, validity or enforceability of the remaining provisions of the Sublease or this Addendum nor the
legality, validity or enforceability of such provision under the law of any other jurisdiction shall in any way be affected or impaired thereby. 
  

									
	 Dated: August 17, 2005
	 	 	 	 “Sublessor”

			
	 	 	 	 	 MONTEREY CARPETS, INC.

					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 Name:
	 	 
	 	 	 	 	 	 	 Title:
	 	 
			
	 Dated: August 17, 2005
	 	 	 	 “Sublessee”

			
	 	 	 	 	 IMPCO TECHNOLOGIES, INC.:

					
	 	 	 	 	 	 	By:	 	/s/    THOMAS M.
COSTALES        
	 	 	 	 	 	 	 Name:
	 	THOMAS M. COSTALES
	 	 	 	 	 	 	 Title:
	 	 CFO

					
	 	 	 	 	 	 	By:	 	/s/    BRAD GARNER        
	 	 	 	 	 	 	 Name:
	 	BRAD GARNER
	 	 	 	 	 	 	 Title:
	 	COO

  

 5

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