Document:

Exhibit
10.40

 

Management Services Agreement

 

This Management Services
Agreement, dated as of January 31, 2005 (this “Agreement”) is entered into
by and among Accuride Corporation, a Delaware corporation (the “Company”), Kohlberg
Kravis Roberts & Co. L.P. (“KKR”) and Trimaran Fund Management, L.L.C. (“TFM”
and collectively with KKR, the “Advisors”).

 

WHEREAS, the Company desires
to retain the Advisors to provide management, consulting and financial services
to the Company as set forth herein, and whereas the Advisors agree to provided
such services to the Company as set forth herein.

 

NOW, THEREFORE, for good and
valuable consideration, the receipt of which is hereby acknowledged, the
parties hereto agree as follows:

 

1.                                       Services.  During the term of this Agreement,
at the reasonable request of the Company, each Advisor will provide to the
Company, certain management, consulting and
financial services of the type customarily performed by such Advisor to
its portfolio companies pursuant to similar management services agreements (the
“Services”).  Without the consent of the
Advisors, the Services shall not include advice and assistance with
acquisition, divestiture, change of control or similar business combination
transactions.  If the Company requests
such additional services, the Advisors shall be entitled to invoice the Company
for additional fees in connection with such services.  This Agreement shall also not cover
operational, business consulting or strategic services performed for the
Company by affiliates of the Advisors.

 

2.                                       Fees.  The Company agrees to pay an
annual fee in an amount equal to $665,000 to KKR, and an annual fee in an
amount equal to $335,000 to TFM, effective as of March 31, 2005 and March 31 of each year thereafter,
payable in quarterly installments in arrears at the end of each calendar
quarter.  In connection with the Company’s
initial public offering of its Common Stock, the Company and KKR may amend this
agreement to reduce the amount of the annual fee paid to KKR and to TFM,
provided that the aggregate annual fee paid to the Advisors pursuant to this
Agreement is shared 66.5% to KKR and 33.5% to TFM.

 

3.                                       Expense Reimbursement.  In
addition to any fees that may be payable
to the Advisors under this Agreement, the Company also agrees to
reimburse the Advisors and their affiliates, from time to time upon request,
for all reasonable out-of-pocket expenses incurred in connection with this
retention, including travel expenses and expenses of legal counsel.

 

4.                                       Termination.  This Agreement may be
terminated with respect to any Advisor, by such Advisor at any time by written
notice to the Company.  In addition, this
Agreement shall terminate (a) with respect to any Advisor, by the Company upon
the written notice to the Advisor, when such Advisor or its affiliates no
longer has the right to appoint one or more members to the Company’s  Board of Directors pursuant to the terms of
the Shareholder Rights Agreement, dated January 31, 2005, among the
Company and certain of its stockholders (the “Shareholder Agreement”), (b) with
respect to all Advisors upon consummation of a Change of Control (as defined in
the Shareholder Agreement), and (c) upon the written consent of the Company and
the Advisors.  Paragraphs 5, 6 and 7
shall survive any termination of this Agreement.  The right of an Advisor to be paid any
accrued and unpaid fees pursuant to paragraph 2 as of the date of termination,
and to be reimbursed for any expenses incurred prior to such date of termination,
as permitted by paragraph 3, shall survive any termination of this Agreement.

 

 

5.                                       Indemnification.  The
Company agrees to indemnify and hold the Advisors and their affiliates
(including, without limitation, affiliated investment entities) and each of their
respective partners, executives, officers, directors, employees, agents and
controlling persons (each such person, including the Advisors, being an “Indemnified
Party”) harmless from and against (i) any and all losses, claims, damages and
liabilities (including, without limitation, losses, claims, damages and
liabilities arising from or in connection with legal actions brought by or on
behalf of the holders or future holders of the outstanding securities of the
Company or its subsidiaries or affiliates, or creditors or future creditors of the
Company or its subsidiaries or affiliates, joint, several or otherwise, to
which such Indemnified Party may become subject under any applicable federal,
state, foreign or local law, or otherwise, related to or arising out of any
activity contemplated by this Agreement or the retention of the Advisors pursuant
to this Agreement and (ii) any and all losses, claims, damages and liabilities,
joint, several or otherwise related to the Company or any of its direct or
indirect subsidiaries or the securities or obligations of any such
entities.  The Company will further,
subject to the proviso to the immediately preceding sentence, reimburse any
Indemnified Party for all expenses (including counsel fees and disbursements)
upon request as they are incurred in connection with the investigation of,
preparation for or defense of any pending or threatened claim or any action or
proceeding arising from any of the foregoing, whether or not such Indemnified
Party is a party and whether or not such claim, action or proceeding is
initiated or brought by the Company; provided, however, that the
Company will not be liable to an Indemnified Party under the foregoing
indemnification provision (and amounts previously paid that are determined not
required to be paid by the Company pursuant to the terms of this paragraph 5
shall be repaid promptly) to the extent that any loss, claim, damage, liability
or expense is found in a final judgment by a court to have resulted from such
Indemnified Party’s willful misconduct or gross negligence.  The Company agrees that no Indemnified Party
shall have any liability (whether direct or indirect, in contract or tort or
otherwise) to the Company or any of its subsidiaries or affiliates related to
or arising out of the retention of the Advisors pursuant to this Agreement
except to the extent that any loss, claim, damage, liability or expense is
found in a final, non-appealable judgment by a court to have resulted from such
Advisor’s willful misconduct, bad faith or gross negligence.

 

The Company also agrees that
 it will not settle, compromise or
consent to the entry of any judgment in any pending or threatened claim, action
or proceeding to which an Indemnified Party is an actual or potential party and
in respect of which indemnification could be sought under the indemnification
provision in the immediately preceding paragraph, without the consent of such
Indemnified Party unless such settlement, compromise or consent includes an
unconditional release of each Indemnified Party from all liability arising out
of such claim, action or proceeding.

 

Promptly after receipt by an
Indemnified Party of notice of any suit, action, proceeding or investigation
with respect to which an Indemnified Party may be entitled to indemnification
hereunder, such Indemnified Party will notify the Company in writing of the
assertion of such claim or the commencement of such suit, action, proceeding or
investigation, but the failure to so notify the Company shall not relieve the
Company from any liability which it may have hereunder, except to the extent
that such failure has materially prejudiced the Company.  If the Company so elects within a reasonable
time after receipt of such notice, the Company may participate at its own
expense in the defense of such suit, action, proceeding or investigation. Each
Indemnified Party may employ separate counsel to represent it or defend it in
any such suit, action, proceeding, investigation in which it may become
involved or is named as a defendant and, in such event, the reasonable fees and
disbursements of such counsel shall be borne by the Company; provided, however,
that the Company will not be required in connection with any such suit, action,
proceeding or investigation, or separate but substantially, similar actions
arising out of the same general allegations or circumstances, to pay the fees
and disbursements of more than one separate counsel (other than local counsel)
for all Indemnified Parties in any single action or proceeding.  Whether or not the Company participates in the
defense of any claim, the Company and the Indemnified Parties shall cooperate
in the defense thereof and shall furnish such records, information and
testimony,

 

 

and attend such conferences, discovery proceedings, hearings, trials
and appeals, as may be reasonably requested in connection therewith.

 

If the indemnification
provided for in clause (i) of the first sentence of this paragraph 5 is finally
judicially determined by a court of competent jurisdiction to be unavailable to an Indemnified Party,
or insufficient to hold any Indemnified Party harmless, in respect of any
losses, claims, damages or liabilities (other than any losses, claims, damages
or liabilities found in a final judgment by a court to have resulted from such
Indemnified Party’s willful misconduct or gross negligence), then the Company,
on the one hand, in lieu of indemnifying such Indemnified Party, and the
Advisors, on the other hand, will contribute to the amount paid or payable by
such Indemnified Party as a result of such losses, claims, damages or liabilities
(i) in such proportion as is appropriate
to reflect the relative benefits received, or sought to be received, by the
Company on the one hand and the Advisors, solely in their capacity as an
advisor under this Agreement, on the other hand in connection with the
transactions to which such indemnification, contribution or reimbursement is
sought, or (ii) if (but only if) the allocation provided by clause (i) above is
not permitted by applicable law, in such proportion as is appropriate to
reflect not only the relative benefits referred to in clause (i) but also the
relative fault of the Company on the one hand and the Advisors on the other, as
well as any other relevant equitable considerations; provided, however,
that in no event shall the aggregate contribution of the Advisors hereunder
exceed the amount of fees actually received by the Advisors in respect of the
transaction at issue pursuant to this Agreement.  The amount paid or payable by a party as a
result of the losses, claims, damages and liabilities referred to above will be
deemed to include any legal or other fees or expenses reasonably incurred in
defending any action or claim.  The
Company and the Advisors agree that it would not be just and equitable if contribution pursuant to this paragraph 5 were
determined by pro rata allocation or by any other method which does not take
into account the equitable considerations referred to in this paragraph 5.  The indemnity, contribution and expense
reimbursement obligations that the Company has under this letter shall be in
addition to any the Company may have, and notwithstanding any other provision
of this letter, shall survive the termination of this Agreement.

 

6.                                       Confidentiality. Any advice or opinions provided by the
Advisors may not be disclosed or referred to publicly or to any third party
(other than the Company’s legal, tax, financial or other advisors) by the
Company, except in accordance with the Advisors’ prior written consent.

 

7.                                       Miscellaneous.

 

a.               The
Advisors shall act as independent contractors, with duties solely to the
Company.  The provisions hereof shall
inure to the benefit of and shall be binding upon the parties hereto and their
respective successors and assigns.  Nothing
in this Agreement, expressed or implied, is intended to confer on any person
other than the parties hereto or their respective successors and assigns, and,
to the extent expressly set forth herein, the Indemnified Parties, any rights
or remedies under or by reason of this Agreement.  Without limiting the generality of the
foregoing, the parties acknowledge that nothing in this Agreement, expressed or
implied, is intended to confer on any present or future holders of any
securities of the Company or its subsidiaries or affiliates, or any present or
future creditor of the Company or its subsidiaries or affiliates, any rights or
remedies under or by reason of this Agreement or any performance hereunder.

 

b.              This
Agreement shall be governed by and construed in accordance with the internal
laws of the state of New York.

 

c.               Each
party hereto represents and warrants that the execution and delivery of this Agreement
by such party has been duly authorized by all necessary action of such party.

 

 

d.              If
any term or provision of this Agreement or the application thereof shall, in
any jurisdiction and to any extent, be invalid and unenforceable, such term or
provision shall be ineffective, as to such jurisdiction, solely to the extent
of such invalidity or unenforceability without rendering invalid or unenforceable
any remaining terms or provisions hereof or affecting the validity or
enforceability of such term or provision of law that renders any term or
provision of this Agreement invalid or unenforceable in any respect.

 

e.               Each
party hereto waives all right to trial by jury in action, proceeding or
counterclaim (whether based upon contract, tort or otherwise) related to or
arising out of the retention of the Advisors pursuant to, or the performance by
the Advisors of the Services contemplated by this Agreement.

 

f.                 This
Agreement may be executed in counterparts, each of which shall be deemed an
original Agreement, but all of which together shall constitute one and the same
instrument.

 

g.              This
Agreement may be amended, modified or waived only by a written amendment signed
by each of the parties hereto, and no waiver of any provision hereof shall be
effective unless expressed n a writing signed by the party to be charged.  No delay or omission by any party in
exercising any right with respect to this Agreement shall operate as a
waiver.  A waiver on one occasion shall
not be construed as a bar to, or waiver of, any right or remedy on any future
occasion.

 

 

(Signature Page Follows)

 

 

IN WITNESS
WHEREOF, the parties hereto have executed this Management Services Agreement on
the date first written above.

 

	
   

  	
  Accuride Corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
      /s/ Terrence J. Keating

  	
   

  
	
   

  	
  Name:  Terrence J. Keating

  
	
   

  	
  Title:  President and Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Kohlberg Kravis Roberts & Co. L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
      /s/ James H. Greene Jr.

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Trimaran Fund Management, L.L.C.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
      /s/ Steven Flyer

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:Exhibit
10.41

 

EXECUTION
COPY

 

EMPLOYMENT
AGREEMENT

 

AGREEMENT,
dated as of January 31, 2005 (this “Agreement”), by and between Accuride
Corporation (the “Company”) and James Cirar (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 “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 to employ the Executive as Senior Vice President/Gunite
& Brillion Operations 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 merger (the “Effective Date”) involving the Company’s acquisition
(the “Acquisition”) of Transportation Technologies Industries, Inc. (“TTI”).  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”).

 

2.                                       Duties and Authority.   During the Term, Executive agrees to serve
the Company, and the Company agrees to employ Executive, as Senior Vice
President/Gunite & Brillion Operations which position’s duties consist of
(a) directly overseeing and pursuing the effective operation of the Gunite
& Brillion (excluding Farm Products) subsidiaries of TTI, with the goal of
meeting or exceeding the 2005 business plan and budget of each such subsidiary
or division, (b) aggressively driving TTI integration initiatives involving
Gunite and Brillion, and (c) serving on the Company’s Executive Committee.  The Executive shall report directly to the
Chief Executive Officer (“CEO”) of the Company. 
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 an
annual base salary of $443,000 (the “Base Salary”) payable and earned in
accordance with the customary payroll practices of the Company. If Executive
remains employed following the end of the Term, then Executive and the Company
shall agree upon a mutually acceptable annual Base Salary, which may be lower than
$443,000.  Any mutually agreed upon
reduction in Base Salary, shall not constitute Good Reason under Section 5(d)(i)(C)
provided that the Executive’s Base Salary and target bonus potential under Section 4(b)
shall not be less than Executive’s Base Salary and bonus potential during the
Term.

 

(b)                                 Bonus Potential.  During the Term, Executive shall be eligible
to earn a bonus of $44,300 in the event that Gunite and Brillion meet budgeted
levels of EBITDA, Working Capital and CapEx for 2005.  No partial bonus will be paid if budgeted
levels are not met.  If the Executive
remains employed with the Company following the end of the Term, then Executive
and the Company shall mutually agree upon an acceptable target bonus potential.

 

(c)                                  Stock Options.  Executive shall be granted options to
purchase the Company’s common stock at a level and on terms consistent with the
highest grant made to a Senior Vice President 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.

 

(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 $9,500 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 $500,000 SunLife life
insurance policy, with a tax gross-up at a level consistent with the Company’s
Executive Life Insurance Program.

 

(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.

 

2

 

(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.

 

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.

 

3

 

(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; or

 

(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 and such termination shall be treated as a
termination for Good Reason for purposes of this Agreement.

 

6.                                       Compensation and Benefits Upon Termination of
Employment.

 

(a)                                  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 release of all employment related claims against the
Company, the Company will provide the following payments and benefits to
Executive:

 

(i)                                     Subject
to Section 9, a lump sum cash payment (less taxes and withholdings) within
five (5) days of the Termination Date equal to $1,772,000.

 

(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

 

4

 

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;

 

(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;

 

(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 (i) criminal acts, (ii) fraud, or (iii) 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 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)(iv)
and the Company shall, thereafter have no further obligations to Executive.

 

(c)                                  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 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

 

5

 

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 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;

 

(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
$886,000.  Nothing in this Section 8(c)
is intended to preclude a portion of the payments under Section 6 from
being

 

6

 

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.

 

(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.

 

(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 4999 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(a) 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

 

7

 

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 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 (c)
below.

 

(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.

 

8

 

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:

 

James Cirar

4855 Cider Hill Drive

Rochester, Michigan 48306

 

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.

 

9

 

(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.

 

(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]

 

10

 

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.

 

	
   

  	
  JAMES CIRAR

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ James Cirar

  
	
   

  	
   

  	
   

  
	
   

  	
  ACCURIDE CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Terrence J. Keating

  
	
   

  	
   

  	
   

  	
  Name: Terrence J. Keating

  
	
   

  	
   

  	
  Title: President and Chief Executive
  Officer

  

 

 

[Signature Page to Cirar
Employment Agreement]

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