Document:

Exhibit
10.1

 

AMENDMENT NUMBER ONE

TO LEASE BETWEEN

FOURTH AVENUE LLC

AND

NEUROMETRIX, INC.

 

THIS AMENDMENT made this February 22,
2008 (this “Amendment”) between Fourth Avenue LLC, a Massachusetts limited
liability company having offices at One Gateway Center, Newton, Massachusetts (“Landlord”)
and NeuroMetrix, Inc., a Massachusetts corporation, with offices located
in Waltham, Massachusetts (“Tenant”).

 

WITNESSETH THAT,

 

WHEREAS, by Lease dated October 18,
2000, (as may be amended from time to time, the “Lease”), Landlord demised and
leased to Tenant approximately 30,000 rentable square feet in Landlord’s
single-story office building commonly referred to as 62 Fourth Avenue in
Waltham, Massachusetts (the “Building”).

 

WHEREAS, the Landlord and
Tenant desire to amend the Lease as follows.

 

NOW THEREFORE, in
consideration of the mutual covenants contained herein, the Landlord and Tenant
agree that the Lease shall be and hereby is amended in the following respects:

 

1.                               All capitalized terms not
otherwise modified or defined herein shall have the same meanings as are
ascribed to them in the Lease. All references in the Lease to the “Lease” or “this
Lease” or “the Lease” or “herein” or “hereunder” or similar terms or to any
section thereof shall mean the Lease, or such section thereof, as amended by
this Amendment.

 

2.               The Term of the
Lease is hereby extended for four (4) year and the definition of the
defined term “Term Expiration Date:” in Article 1.0,
“REFERENCE DATA” shall be amended to read as follows:

“March 31, 2013”

 

3.               With respect to the
period of time beginning April 1, 2009 and ending March 31, 2013, the
Annual Base Rent shall be in accordance with the following table:

 

 

	
  Period:

  	
   

  	
   

  	
  Annual Base Rent:

  	
   

  	
   

  	
  Monthly

  Installment:

  	
   

  
	
  April 1, 2009 through
  March 31, 2010

  	
   

  	
   

  	
  $

  	
  675,000.00

  	
   

  	
   

  	
  $

  	
  56,250.00

  	
   

  
	
  April 1, 2010 through
  March 31, 2011

  	
   

  	
   

  	
  $

  	
  705,000.00

  	
   

  	
   

  	
  $

  	
  58,750.00

  	
   

  
	
  April 1, 2011 through
  March 31, 2012

  	
   

  	
   

  	
  $

  	
  735,000.00

  	
   

  	
   

  	
  $

  	
  61,250.00

  	
   

  
	
  April 1, 2012 through
  March 31, 2013

  	
   

  	
   

  	
  $

  	
  765,000.00

  	
   

  	
   

  	
  $

  	
  63,750.00

  	
   

  

 

4.               As
an inducement for Tenant to enter into this Amendment, Landlord agrees to
reimburse Tenant for certain improvements and renovations completed in the
Premises up to a maximum of $240,000.00 (“Tenant’s Allowance”).  The following shall apply with respect to
such reimbursement.

(i) Tenant shall comply with all provisions of the Lease which relate to
work by Tenant in the Premises, including, without limitation, the provisions
of Article 8.0 of the Lease, “MAINTENANCE OF AND IMPROVEMENTS TO PREMISES”.

(ii) Tenant’s Allowance shall be used solely for improvements (“Approved
Reimbursable Improvements”) approved in writing by Landlord pursuant to Section 8.2
(“Alterations and Improvements by Tenant”) and completed at a commercially
reasonable cost prior to April 1, 2011 (“Latest Completion Date”).  In addition to any information required to be
provided by Tenant pursuant to Article 8.0 or otherwise required under the
Lease, Tenant shall, upon request of Landlord, provide Landlord with such
reasonable information (for example, without intended limitation, quotations,
estimates, proposals, unit costs, etc.) as Landlord may from time to time
require with respect to the anticipated cost of any improvements for which
Tenant seeks Landlord’s approval. 
Landlord’s agreement in this Section to reimburse Tenant for
Approved

 

 

Reimbursable Improvements shall not be deemed to obligate Landlord to
consent to any particular improvement or renovation in the Premises except
that, so long as all improvements and renovations are done using materials,
means and methods commercially reasonable and appropriate for comparable office
space in the Prospect Hill market area, Landlord shall not unreasonably
withhold, condition or delay Landlord’s consent with respect to carpet
replacement, wall painting, ceiling tile replacement, reception area
renovations and modification of the layout of walls and doors in the currently
existing “fulfillment” area including the addition of offices in this area
along the windows at the back of the Building.

(iii) Provided Tenant, at the time Landlord is required pursuant to this Section to
pay Tenant all or any portion of the Tenant’s Allowance, is not in default
under the Lease and no condition known to Tenant or Landlord exists which with
the passage of time or the giving of notice would constitute a default under
the Lease, Landlord shall disburse Tenant’s Allowance (or a portion thereof as
applicable) to Tenant to the extent (X) any Approved Reimbursable
Improvements have been completed prior to the Latest Completion Date and (Y),
no later than four months after the Latest Completion Date, Tenant has provided
Landlord with an application for payment including (a) copies of invoices
for labor, materials or equipment charges incurred by Tenant in connection with
such improvements, (b) copies of “as-built” plans of such improvements
prepared and certified by Tenant’s architect (if and to the extent plans are
typically prepared and used in the planning or contracting of work in the
nature of such improvements) , (c) an affidavit from Tenant’s architect
that such improvements have been completed in accordance with the plans
approved by Landlord, (d) final lien waivers from all contractors,
subcontractors, material suppliers and all others engaged in construction of
such improvements and (e) a copy of a Certificate of Occupancy for the
Premises issued by the City of Waltham upon completion and inspection of such
improvements (except to the extent a Certificate of Occupancy is not required
by the City of Waltham for any such improvements, in which case Tenant shall
provide a letter signed by an officer of the entity constituting Tenant
certifying the same and except in the event the City of Waltham indicates to
Tenant that the Premises may be lawfully occupied, but has yet to perform the
ministerial task of producing the Certificate of Occupancy, in which event
commercially reasonable evidence satisfactory to Landlord acting reasonably
that the City of Waltham has conducted all final inspections, has accepted such
improvements and intends to issue a Certificate of Occupancy shall be
sufficient in lieu of a Certificate of Occupancy; provided however that Tenant
shall continue to use reasonable efforts to obtain an actual Certificate of
Occupancy for the City of Waltham).  Provided the conditions set forth above in
this Section 4 of this Amendment Number One to Lease have been satisfied,
Landlord shall disburse Tenant’s Allowance (or a portion thereof as applicable)
to Tenant within thirty days of the last to occur of Landlord’s receipt of
Tenant’s application for payment, the completion of any applicable Approved
Reimbursable Improvements and Landlord’s receipt of items (a) through (e) above
in this subsection (iii).  In the event
at the time Landlord is otherwise required pursuant to this Section to pay
Tenant all or any portion of Tenant’s Allowance, Tenant is in default under the
Lease or a condition known to Tenant or Landlord exists which with the passage
of time or the giving of notice would constitute a default under the Lease,
Landlord shall not be required to disburse Tenant’s Allowance (or a portion
thereof as applicable) to Tenant as otherwise required pursuant to this Section until
thirty days after the last to occur of (A) the day Tenant is no longer in
default under this lease and any condition known to Tenant or Landlord which
with the passage of time or the giving of notice would constitute a default
under the Lease ceases to exist, (B) any damages and costs sustained by
Landlord as a result of any default by Tenant under this Lease have been
reimbursed to Landlord as required under this Lease, applicable law and/or as
awarded by a court of competent jurisdiction (as the case may be),  (B) Landlord’s receipt of Tenant’s
application for payment, (C) the completion of any applicable Approved
Reimbursable Improvements and (D) Landlord’s receipt of items (a) through
(e) above in this subsection (iii). 
Tenant shall not make application for payment more frequently than once
in any period of 30 consecutive days.

(iv) Tenant shall not be entitled to any reimbursement, credit against
Rent or any other credit to the extent the total amount of Tenant’s Allowance
is not disbursed to Tenant (a) because of Tenant’s failure to comply with
the terms and conditions above in this Section or (b) because the
total cost of the Approved Reimbursable Improvements completed prior to the
Latest Completion Date is less than the total amount of Tenant’s Allowance;
provided however that if the total cost of the Approved Reimbursable Improvements
completed prior to the Latest Completion Date is less than the total amount of
Tenant’s Allowance, Tenant shall be entitled to a credit against Rent in an
amount not to exceed the lesser of (A) $30,000 and (B) the 

 

 

6

 

 

amount by which the total
cost of the Approved Reimbursable Improvements completed prior to the Latest
Completion Date is less than the total amount of Tenant’s Allowance; and
provided further that, in the event Tenant is entitled to such a credit against
Rent, such credit shall be applied against Rent due for the last month of the
Term.

 

(v) Provided (A) the
Lease is in full force and effect and Tenant is not in default under the Lease
beyond any applicable notice and cure period and no condition known to Tenant
or Landlord exists which with the passage of time or the giving of notice would
constitute a default under the Lease and (B) the conditions for
disbursement of Tenant’s Allowance as set forth above in this Section 4 of
this Amendment Number One to Lease have been satisfied, including, without
limitation, Landlord’s receipt of items (a) through (e) above in
subsection (iii) this Section and Landlord has not notified Tenant of
any deficiencies in such items, then, if and to the extent Landlord has not
disbursed Tenant’s Allowance (or a portion thereof as applicable) to Tenant
within the applicable time period above in this Section 4, then,
notwithstanding anything contained in this Lease to the contrary, after 15 days
notice to Landlord, Tenant may set off against any Rent then due the amount of
Tenant’s Allowance due to Tenant pursuant to this Section 4 and not yet
disbursed to Tenant.

 

5.               In Article 1.0
of the Lease, “REFERENCE DATA”, the definition of the defined term “Security Deposit:”
shall be amended to read:

 

“ $400,000.00; provided,
however, that, so long as (i) Tenant has not at any time been in default
under the Lease beyond any applicable notice and cure period, (ii) Tenant
is not at the time of any reduction of the amount of the Security Deposit
pursuant to this provision in default under the Lease and no condition known to
Tenant or Landlord then exists which with the passage of time or the giving of
notice would constitute a default under the Lease and (iii) except in the
case of a Permitted Transfer, the Lease has not been assigned and the Premises
or any portion of the Premises has not been sublet, subject to the provisions
contained in this definition of the defined term “Security Deposit” and all
other applicable provisions of the Lease, after March 31, 2011, the
Security Deposit shall be reduced by $175,000.00 to be a total of
$225,000.00.  Without limiting Landlord’s
rights available elsewhere under the Lease, at law or in equity,
notwithstanding the immediately preceding sentence, in the event of any default
of Tenant beyond any applicable notice and cure period, the Security Deposit
shall be $400,000.00 from such occurrence through the balance of the Term and
Tenant shall, immediately upon notice from Landlord, pay to Landlord such funds
as are required to restore the Security Deposit to $400,000.00 or, if requested
by Landlord, provide (in accordance with all lease terms relating to letters of
credit) a letter of credit in the amount of $400,000.00.  The failure of Tenant to restore the Security
Deposit or provide the letter of credit as required in immediately preceding
sentence shall be deemed a default by Tenant in the payment of Rent.  If after March 31, 2011, the Security
Deposit may be reduced in accordance with the provisions of this definition of
the defined term “Security Deposit”, Tenant shall request reduction by notice
to Landlord and, within 45 days of such notice, Landlord, at Landlord’s
discretion, shall apply the amount by which the Security Deposit is to be
reduced to Rent due under the Lease or refund such amount to Tenant or, if
applicable, cooperate and coordinate with Tenant to amend or replace any
existing letter of credit.”

 

Upon execution of this
Amendment, Landlord and Tenant shall cooperate and coordinate with each other
to amend or replace existing letter of credit # 568864-07 with Comerica Bank to
reflect such lesser amount.

 

6.               Tenant
and Landlord each represent and warrant to each other that, with respect to
this Amendment, neither party has directly or indirectly dealt with any broker
other than McPherson Corporation to which Landlord agrees to pay a fee of
$120,000.00.  Tenant and Landlord each
agree to save harmless and indemnify the other against any claims for a
commission or other fee by any other broker, person or firm with whom the
indemnifying party has dealt in connection with this Amendment.

 

7.               Except
as herein amended, all terms, conditions, covenants, agreements and provisions
of the Lease shall remain in full force and effect.

 

8.               This
Amendment may be executed in multiple counterparts, each of which shall be
deemed an original and all of which together shall constitute one and the same
document. Landlord and Tenant each warrant to the other that the person or
persons executing this Amendment on its behalf has or have authority to do so
and that such execution has fully obligated and bound such party to all terms
and provisions of this Amendment.

 

 

7

 

IN WITNESS WHEREOF the
parties have hereunto set their hands and seals on the day and year first
written above.

 

	
  GATEWAY REALTY TRUST

  	
  NEUROMETRIX, INC.

  
	
   

  
	
  BY: Commonwealth
  Development LLC, as Trustee and

  
	
  not individually

  
	
   

  
	
  By:

  	
   /s/ James A. Magliozzi, Manager

  	
   

  	
  By

  	
   /s/ W. Bradford Smith

  	
   

  
	
  James A. Magliozzi,
  Manager

  	
   

  	
  Name:

  	
  W. Bradford Smith

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial Officer,
  duly authorized

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
								

 

 

 

8Exhibit 10.1

 

TIER I

 

                         ,
200  

 

 

 

Re:     Severance and Retention Agreement

 

Dear
                     :

 

Our Board of Directors believes that it is in the best interests of
Accuride Corporation (“Accuride”) and its shareholders to take appropriate
steps to allay any concerns you may have about your future employment
opportunities with Accuride and its “Affiliates” (as defined in Section 2(f)).
Accuride and its Affiliates are collectively referred to in this Agreement as
the “Company.”  As a result, the Board
has decided to offer to you the special package of benefits described below.

 

Please bear in mind that these benefits are being offered only to a few
selected employees and we accordingly ask that you refrain from discussing this
special program with others. Please note that the special benefits package
described below will only be effective if you sign the extra copy of this
Severance and Retention Agreement (the “Agreement”) which is enclosed and
return it to me on or before                          ,
200  . This Agreement supersedes any other severance or change in
control agreements entered into previously by you and Accuride or any
Affiliate, whether written or oral (including but not limited to the Severance
and Retention Agreement dated                          ,
200  ).

 

1.                                     TERM OF AGREEMENT.

 

This
Agreement is effective immediately and will continue in effect until December 31,
2008 (the “Initial Term”). This Agreement will be automatically renewed at the
end of the Initial Term for additional terms commencing on each January 1,
and ending on the next following December 31 (a “Renewal Term”), unless
either party serves notice on the other of its desire not to renew this
Agreement or of its desire to modify this Agreement. Such notice must comply
with Section 11 and be given at least six months before the end of the
Initial Term or the applicable Renewal Term. If a Change in Control occurs
during the Initial Term or any Renewal Term, the scheduled expiration date of
the Initial Term or Renewal Term, as the case may be, shall be extended
for a term ending on the 18-month anniversary of the Change in 

 

 

Control. The expiration of the term of this Agreement will not reduce
or diminish any liabilities that have accrued prior to the expiration.

 

2.                                     BASIC
SEVERANCE BENEFIT.

 

(a)                                  Entitlement to Basic
Severance Benefit. The Basic Severance Benefit described below will
be payable to you if you terminate your employment with the Company for “Good
Reason” (as defined in Section 6) either prior to the commencement of the “Protection
Period” (as defined in Section 2(d)) or following the close of the
Protection Period. The Basic Severance Benefit also will be payable to you if
prior to the commencement of the Protection Period or following the close of
the Protection Period, the Company terminates your employment without “Cause”
(as defined in Section 7). If your employment is terminated by the Company
for Cause, by your voluntary termination without Good Reason, or by your death
or “Disability” (as defined in Section 11(d)), no Basic Severance Benefit
shall be payable under this Agreement either upon that termination or at any
time thereafter (unless you are later reemployed and covered by a new
agreement).

 

(b)                                 Amount of Payments. The Basic Severance
Benefit will equal your annualized base salary at the rate in effect on the
date of your termination of employment minus the sum of any other payments from
the Company under any employment or other agreement, plan, program or policy in
the nature of severance in respect of such termination, payable on or after the
date of such termination.

 

(c)                                  Timing of Payments. Except as
provided in Section 4, the Basic Severance Benefit will be paid in a
single lump sum payment within five business days following the date on which
the Release Agreement required pursuant to Section 8 becomes irrevocable.

 

(d)                                 Protection Period. For purposes of
this Agreement, the term “Protection Period” shall mean the period beginning
with the date on which a Change in Control occurs and ending 18 months after
the Change in Control.

 

(e)                                  Transfers to Affiliates. In order to
receive a Basic Severance Benefit, you must terminate employment with the “Company,”
which, as noted above, refers collectively to Accuride and all of its Affiliates.
As a result, a transfer to an Affiliate will not be treated as a termination of
employment for purposes of this Agreement. For purposes of determining whether
a transfer gives rise to Good Reason for your termination of employment, a
transfer shall be treated the same as a reassignment within Accuride.

 

(f)                                    “Affiliate” Defined. For purposes
of this Agreement, the term “Affiliate” shall mean (i) any member of a “controlled
group of corporations” (within the meaning of Section 414(b) of the
Internal Revenue Code of 1986 (the “Code”) as modified by Section 415(h) of
the Code) that includes Accuride as a member of the group; and (ii) any
member of a group of trades or businesses under common control (within the
meaning of Section 414(c) of the Code as modified by Section 415(h) of
the Code) that includes Accuride as a member of the group.

 

2

 

3.                                     CHANGE IN CONTROL BENEFITS.

 

(a)                                  Entitlement to Change in
Control Benefits. If your employment with the Company is terminated
by the Company without Cause during the Protection Period, you will receive the
“Change in Control Benefits” described in this Section 3. The Change in
Control Benefits also will be payable if you terminate your employment for Good
Reason during the Protection Period.

 

The
Change in Control Benefits will not be payable if your employment is terminated
for Cause, if you voluntarily terminate your employment without Good Reason, or
if your employment is terminated by reason of your Disability or your death. In
addition, the Change in Control Benefits will not be payable if your employment
is terminated by you or the Company for any or no reason prior to or following
the Protection Period.

 

In
addition, as noted in Section 2(e), a transfer to an Affiliate will not be
treated as a termination of employment for purposes of this Agreement.

 

(b)                                 Change in Control Severance
Payment. If you are entitled to receive Change in Control Benefits, you will
receive a “Change in Control Severance Payment.”  The “Change in Control Severance Payment” is
a lump sum payment equal to the sum of: (i) 300% of your annualized base
salary as of the date on which a Change in Control occurs, plus (ii) 300%
of the applicable bonus or incentive compensation paid or payable to you
pursuant to the Accuride Incentive Compensation Plan. The applicable bonus or
incentive compensation amount used for purposes of clause (ii) in the
preceding sentence shall be the greater of the following: (i) the incentive
compensation to which you would have been entitled if the year were to end on
the day on which the Change in Control occurs, based upon an annualized figure
determined using performance up to that date; or (ii) the average of the
actual incentive compensation paid to you through the Accuride Incentive
Compensation Plan during the three years preceding the year of your termination.
The Change in Control Severance Payment shall be reduced by the full amount of
any payments to which you may be entitled due to your termination pursuant
to any other Company severance policy, any agreement between you and the
Company providing for severance, or applicable law.

 

Except
as otherwise provided in Section 4, the Change in Control Severance
Payment will be paid in one lump sum within five business days following the
date on which the Release Agreement required pursuant to Section 8 becomes
irrevocable.

 

(c)                                  Equity Awards. If you are
entitled to receive Change in Control Benefits, you also may be entitled
to receive a benefit pursuant to the Accuride Corporation 2005 Incentive Award
Plan. Refer to the Accuride Corporation 2005 Incentive Award Plan for more
details regarding the impact of a Change in Control on awards made pursuant to
that Plan.

 

(d)                                 Welfare Benefits. If you are
entitled to receive Change in Control Benefits, the Company shall arrange to
provide you, for an 18-month period following your termination of employment,
with disability, accident, dental and group health insurance benefits
substantially similar to those which you were receiving immediately prior to
your termination. The cost to you of a particular type of benefit (e.g., dental insurance) shall be not more
than the 

 

3

 

cost to you of that particular benefit immediately prior to your
termination. The Company may provide the health insurance benefit
described under this Section by paying a portion of the premiums you are
required to pay for continued health insurance coverage under the Company’s
health insurance plan pursuant to COBRA. The amount paid by the Company will be
equal to the difference between the total COBRA premium and the amount you were
required to pay for health insurance immediately prior to your termination.

 

Your
right to receive continued health insurance benefits pursuant to COBRA shall
commence upon the termination of your employment and shall not be extended by
your rights under this Agreement.

 

Your right to receive all
forms of welfare benefits described under this paragraph (d) shall
terminate as soon as you become eligible to receive health care benefits,
without exclusion for preexisting conditions, from any other employer.

 

(e)                                  Outplacement Services. If you are
entitled to receive Change in Control Benefits, the Company will provide you
with senior executive outplacement services. The Company will select the firm
to provide outplacement services. The senior executive outplacement services
shall be provided at a time, and on a schedule, designated by the Company. Nevertheless,
in no event will the senior outplacement services continue beyond December 31
of the second calendar year following the calendar year in which your
Separation from Service occurs.

 

(f)                                    Financial Planning Benefits. If you are
entitled to receive Change in Control Benefits, the Company also will provide
you with a tax and financial planning services stipend. The stipend will be in
an amount determined pursuant to Company policies and will be based on your
officer classification as of the date on which the Change in Control occurs. The
stipend shall be paid at the same time as, and along with, the Change in
Control Severance Payment.

 

(g)                                 Mayo Executive Physical
Program. If you are entitled to receive Change in Control Benefits, the
Company will, for a period of 12 months following your termination of
employment, continue to allow you to participate in the Mayo Executive Physical
Program and cover all regularly authorized expenses associated therewith,
including, without limitation, travel, meals, lodging and fees. In order to be
reimbursed, all such expenses must be submitted promptly and no reimbursements
will be made following the December 31 of the second calendar year
following the calendar year in which your Separation from Service occurs.

 

(h)                                 Retirement and Savings Plan. If you are
entitled to receive Change in Control Benefits, the Company shall make a
payment to you equal to 110% of the amount of any forfeitures that you experience as a result of
your termination of employment under any of the Company’s pension or profit
sharing plans. If you experience a forfeiture under the Accuride Retirement
Plan, the amount of the Company’s payment shall be equal to 110% of your
unvested “Cash Balance Account” (as defined in the Accuride Retirement Plan, as
it may be amended from time to time). The additional 10% payment provided
for in this paragraph is to compensate you for the loss of the opportunity to
defer taxes through a rollover of the forfeited amounts. 

 

4

 

Except as otherwise provided in Section 4, the payment called for
by this paragraph (h) shall be paid within 30 days following your
termination of employment.

 

(i)                                     No Allowance in Lieu of
Benefits. You may not elect to receive cash or any
other allowance in lieu of any welfare benefits provided by this Section.

 

4.                                     COMPLIANCE WITH SECTION 409A; REQUIRED DELAY IN PAYMENTS.

 

(a)                                  409A Compliance Strategy. The Company
intends that the Basic Severance Benefit provided pursuant to Section 2
will comply with the short-term deferral exception to the requirements of Section 409A
of the Code, as described in Treas. Reg. § 1.409A-1(b)(4). The Company
also intends that the Change in Control Severance Payment provided by Section 3(b),
the financial planning stipend provided by Section 3(f), and the retirement
and savings plan forfeiture payment provided by Section 3(h) (collectively
the “Cash Change in Control Payments”) will comply with the short-term deferral
exception. In order to meet the requirements of the short-term deferral
exception, despite any other provision of this Agreement to the contrary, the
Basic Severance Benefit and all Cash Change in Control Payments due pursuant to
this Agreement shall be paid at the times stated in Section 2 or Section 3
and in no event later than March 15 of the year following the year in
which your Separation from Service occurs. Payments may be delayed only in
accordance with regulations issued pursuant to Section 409A. The Company
intends that the Welfare Benefits provided by Section 3(d), the
Outplacement Services provided by Section 3(e) and the right to
continued participation in the Mayo Executive Physical Program provided by Section 3(g) will
comply with the exception to Section 409A for reimbursements and certain
other separation payments, as described in Treas. Reg. § 1.409A-1(b)(9)(v)(B).
The Company has concluded that the gross-up payment provided under Section 10(f) and
the reimbursement payments the Company has agreed to make pursuant to Section 20
may be subject to the requirements of Section 409A. To ensure that
the payments under Section 10(f) and Section 20 comply with Section 409A,
the payments are payable at a specified time or pursuant to a fixed schedule within
the meaning of Treas. Reg. § 1.409A-3(i)(1)(iv).

 

(b)                                 Delay in Payments. Prior to making
any payments pursuant to this Agreement, the Accuride Compensation Committee
will determine, on the basis of any regulations, rulings or other available
guidance and the advice of counsel, whether the short-term deferral exception,
the separation pay exception or any other exception to the requirements of Section 409A
is available. If the Compensation Committee concludes that no exception is
available, no payments will be made prior to your Separation from Service. In
addition, if you are a “Specified Employee” (as defined in paragraph (d)),
and the Compensation Committee concludes that no exception to the requirements
of Section 409A is available, no payments shall be made to you prior to
the first business day following the date which is six months after your
Separation from Service. Any amounts that would have been paid during the six
months following your Separation from Service will be paid on the first
business day following the expiration of the six month period without interest
thereon. The provisions of this paragraph apply to all amounts due pursuant to
this Agreement, other than amounts that do not constitute a deferral of
compensation within the meaning of Treas. Reg. §1.409A-1(b) or other
amounts or benefits that are not subject to the requirements of Section 409A.

 

5

 

(c)                                  Separation from Service
Defined. For purposes of this Agreement, the term “Separation from Service”
means (1) the termination of your employment with Accuride and all
Affiliates due to death, retirement or other reasons, or (2) a permanent
reduction in the level of bona fide services you provide to Accuride and all
Affiliates to an amount that is no more than 20% of the average level of bona
fide services you provided to Accuride and all Affiliates in the immediately
preceding 36 months (or the entire time period during which you provided
services to Accuride and all Affiliates if you have been providing such
services for less than 36 months), with the level of bona fide service calculated
in accordance with Treas. Reg. § 1.409A-1(h)(1)(ii). Your employment
relationship is treated as continuing while you are on military leave, sick
leave, or other bona fide leave of absence (if the period of such leave does
not exceed six months, or if longer, so long as your right to reemployment with
Accuride or an Affiliate is provided either by statute or contract). If your
period of leave exceeds six months and your right to reemployment is not
provided either by statute or by contract, the employment relationship is
deemed to terminate on the first day immediately following the expiration of
such six month period. Whether a termination of employment has occurred will be
determined based on all of the facts and circumstances and in accordance with
regulations issued by the United States Treasury Department pursuant to Section 409A
of the Code if the Company concludes that Section 409A is applicable.

 

(d)                                 Specified Employee Defined. For purposes
of this Agreement, the term “Specified Employee” means certain officers and
highly compensated employees of the Company as defined in Treas. Reg. § 1.409A-1(i),
and as determined in accordance with such procedures as may be adopted
from time to time by Accuride. The identification date for determining whether
any employee is a Specified Employee during any calendar year shall be the September 1
preceding the commencement of such calendar year.

 

(e)                                  Miscellaneous Payment
Provisions. If payment is not made, in whole or in part, due
to a dispute between you and the Company, the payments shall be made in
accordance with Treas. Reg. §1.409A-3(g), as applicable.

 

(f)                                    Ban on Acceleration or
Deferral. Under no circumstances may the time or schedule of
any payment made or benefit provided pursuant to this Agreement be accelerated
or subject to a further deferral except as otherwise permitted or required
pursuant to regulations and other guidance issued pursuant to Section 409A
of the Code.

 

(g)                                 No Elections. You do not
have any right to make any election regarding the time or form of any
payment due under this Agreement.

 

(h)                                 Compliant Operation and
Interpretation. This Agreement shall be operated in compliance
with Section 409A or an exception thereto and each provision of this
Agreement shall be interpreted, to the extent possible, to comply with Section 409A
or to qualify for an exception thereto.

 

5.                                     CHANGE IN CONTROL DEFINED.

 

“Change
in Control” means and includes each of the following:

 

6

 

(a)                                 A transaction or series of
transactions (other than an offering of Stock to the general public through a
registration statement filed with the Securities and Exchange Commission)
whereby any “person” or related “group” of “persons” (as such terms are used in
Sections 13(d) and 14(d)(2) of the Exchange Act) (other than
Accuride, any of its Affiliates, an employee benefit plan maintained by
Accuride or any of its Affiliates, or a “person” that, prior to such
transaction, directly or indirectly controls, is controlled by, or is under
common control with, Accuride) directly or indirectly acquires beneficial
ownership (within the meaning of Rule 13d-3 under the Exchange Act) of
securities of Accuride possessing more than 35% of the total combined voting
power of Accuride’s securities outstanding immediately after such acquisition;
or

 

(b)                                During any period of two
consecutive years, individuals who, at the beginning of such period, constitute
the Board of Directors together with any new director(s) (other than a
director designated by a person who shall have entered into an agreement with
Accuride to effect a transaction described in paragraphs (a) or (c) of
this Section 5) whose election by the Board of Directors or nomination for
election by Accuride’s stockholders was approved by a vote of a majority of the
directors then still in office who either were directors at the beginning of
the two-year period or whose election or nomination for election was previously
so approved, cease for any reason to constitute a majority thereof; or

 

(c)                                 The consummation by Accuride
(whether directly involving Accuride or indirectly involving Accuride through
one or more intermediaries) of (x) a merger, consolidation,
reorganization, or business combination or (y) a sale or other disposition
of all or substantially all of Accuride’s assets in any single transaction or series of
related transactions or (z) the acquisition of assets or stock of another
entity, in each case other than a transaction:

 

(i)                                     Which results in Accuride’s
voting securities outstanding immediately before the transaction continuing to
represent (either by remaining outstanding or by being converted into voting
securities of Accuride or the person that, as a result of the transaction,
controls, directly or indirectly, Accuride or owns, directly or indirectly, all
or substantially all of Accuride’s assets or otherwise succeeds to the business
of Accuride (Accuride or such person, the “Successor Entity”)) directly or
indirectly, at least a majority of the combined voting power of the Successor
Entity’s outstanding voting securities immediately after the transaction, and

 

(ii)                                  After which no person or
group beneficially owns voting securities representing 50% or more of the
combined voting power of the Successor Entity; provided, however, that no
person or group shall be treated for purposes of this Section 5(c)(ii) as
beneficially owning 50% or more of the combined voting power of the Successor
Entity solely as a result of the voting power held in Accuride prior to the
consummation of the transaction; or

 

(d)                                 Accuride’s stockholders
approve a liquidation or dissolution of Accuride.

 

The
Compensation Committee shall determine whether a Change in Control of Accuride
has occurred under the above definition, and the date of the occurrence of such
Change in Control and any incidental matters relating thereto.

 

7

 

6.                                     GOOD REASON DEFINED.

 

(a)                                  Definition of Good Reason. For purposes
of this Agreement, “Good Reason” means a termination of your employment with
the Company following the occurrence of one or more of the following
circumstances (without your prior express written consent):

 

(i)                                     a material diminution in
your total annual compensation;

 

(ii)                                  a material diminution in
your authority, duties or responsibilities;

 

(iii)                               a material change in the
geographic location of your principal office; or

 

(iv)                              any other action or inaction
that constitutes a material breach by the Company of this Agreement.

 

(b)                                 Notice of Termination. If you elect
to terminate your employment for Good Reason, you must provide the Company with
a Notice of Termination (in compliance with Section 11) which sets forth
the existence of the Good Reason condition described in paragraphs (i) through
(iv) above within 60 days of the initial existence of the condition.

 

(c)                                  Opportunity to Cure. Notwithstanding
anything to the contrary, the existence of one of the circumstances described
in paragraphs (i) through (iv) above will not constitute Good Reason
if, within 30 days after you give the Company Notice of Termination which sets
forth the existence of the Good Reason condition described in paragraphs (i) through
(iv), the Company has fully corrected such condition.

 

7.                                     CAUSE DEFINED.

 

For
purposes of this Agreement, “Cause” shall mean (a) your continued willful
failure, neglect or refusal to perform your duties with respect to the
Company or its Affiliates which continues beyond ten days after a written
demand for substantial performance is delivered to you by the Company; (b) conduct
by you involving (i) dishonesty, fraud, or breach of trust in connection
with your employment or (ii) conduct which would be a reasonable basis for
an indictment for a felony or for a misdemeanor involving moral turpitude; (c) your
willful and continued failure or refusal to follow material directions of the
Board or any other act of insubordination by you; or (d) willful
malfeasance or willful misconduct by you which is injurious to the Company,
monetarily or otherwise.

 

8.                                     RELEASE AGREEMENT.

 

In
order to receive the Basic Severance Benefit or any Change in Control Benefits,
you must execute, in a timely manner, a release of any known or unknown claims
that you may have against the Company. The release shall be in a form reasonably
requested by the Company. If you are not yet 40 years old on the date on which
the Release Agreement must be signed, you will be given 21 days to consider
whether to sign the Release Agreement. If you are 40 or over, in accordance
with federal law, you will be given 21 or 45 days, depending on the
circumstances, to consider whether to sign the Release Agreement. In any event,
you may 

 

8

 

revoke the Release Agreement during the seven day period following your
delivery of a signed Release Agreement. These rules will be described in
greater detail at the appropriate time. If you fail to sign the Release
Agreement within the prescribed time period, or if you revoke the Release
Agreement, you will not be entitled to receive any Basic Severance Benefit or
any Change in Control Benefits.

 

9.                                     COMPETITION.

 

(a)                                  Covenant Not to Compete. If you
terminate employment with the Company or if your employment is terminated by
the Company and then you compete with the Company, the Company may suffer
irreparable harm and damage. Accordingly, you agree that, unless you receive
the express prior written consent of the Company, you will not be employed as
an owner, partner, employee, consultant, or in any other capacity by, and you
will not become a shareholder in, a seller, distributor or manufacturer of
commercial vehicle components or otherwise compete with the Company, directly
or indirectly, during the “Restriction Period” in the “Restricted Area.”

 

(b)                                 Restricted Area. For this
purpose, the “Restricted Area” means the United States of America. If a court
of competent jurisdiction determines that the United States of America is a
larger area than necessary to protect the Company’s business interests, the
parties agree that the Restricted Area will be the largest of the following
areas that the court determines to be reasonable:  the United States of America east of the
Mississippi River; all states in which you performed services while employed by
the Company; the State of Indiana; the County of Vanderburgh; or the City of
Evansville.

 

(c)                                  Restriction Period. For this
purpose, the “Restriction Period” begins on the effective date of your
termination of employment for whatever reason and ends at the end of the 24th
month thereafter, or if a court of competent jurisdiction concludes that 24
months is longer than necessary to protect the Company’s business interests,
then the parties agree that the restriction period will end at the end of the
longest of the following number of months that the court determines to be
reasonable:  23, 22, 21, 20, 19, 18, 17,
16, 15, 14, 13, 12, 11, 10, 9, 8, 7, 6, 5, 4, or 3.

 

(d)                                 Competition. You will be
considered to be competing with the Company if you are performing any services
in the commercial vehicle component industry of the type and nature that are
required to be performed by or for the Company. You will not be considered to
be competing with the Company for purposes of this Section 9 if you
acquire stock representing less than 1% of the outstanding stock of any
publicly traded corporation.

 

(e)                                  Non-Solicitation Covenants. For a period
of two years from the date of the termination of this Agreement and your
employment with the Company, or, if a court determines that two years is
unreasonable, one year from the date of the termination of this Agreement and
your employment with the Company, you agree that you will not (directly or
indirectly through others):  (i) contact,
solicit, contract with, or attempt to contract with any entity engaged in the
commercial vehicle component industry with which the Company has contracts at
the time of the termination of this Agreement, or (ii) solicit or attempt
to solicit away from the Company any officer, employee or agent of the Company.

 

9

 

(f)                                    Reformation of
Covenants.  The parties agree that
the scope of any provision of this Section may be modified by a judge in
any proceeding to enforce this Agreement, so that such provision can be
enforced to the maximum extent permitted by law.  If any court of competent jurisdiction
determines that any portion of this Section is invalid or unenforceable,
the remainder of this Section will not thereby be affected and will be
given full effect, without regard to invalid portions.

 

(g)                                 Breach of Covenants.  If you breach the covenant not to compete
contained in paragraph (a) or the non-solicitation covenant contained in
paragraph (e), you agree that in addition to (and without limiting) any
other remedy or right the Company may have: 
(i) the Company will have the right to an injunction against you
issued by a court of competent jurisdiction enjoining such breach; and (ii) if
you are to receive any payments or benefits pursuant to Sections 2 or 3 or
any other provision of this Agreement in the future, the Company has the right
to forfeit any future benefits to which you are entitled to compensate the
Company for injury by reason of such breach. 
You and the Company agree that the foregoing remedies are reasonable and
necessary for the protection of the Company’s goodwill and recognize that in
the event of a breach of the foregoing restrictions, it will be impossible to
ascertain or estimate the entire or exact cost, damage or injury that the
Company may sustain by reason of such breach.

 

10.                               CAP
ON PAYMENTS.

 

(a)                                  General Rules.  The Code places significant tax burdens on
you and the Company if the total payments made to you due to a Change in
Control exceed prescribed limits.  For
example, if your “Base Period Income” (as defined below) is $500,000, your
limit or “Cap” is $1,499,999.  If your “Basic
Payments” exceed the Cap by even $1.00, you are subject to an excise tax under Section 4999
of the Code of 20% of all amounts paid to you in excess of $500,000.  In other words, if your Cap is $1,499,999,
you will not be subject to an excise tax if you receive exactly
$1,499,999.  If you receive $1,500,000,
you will be subject to an excise tax of $200,000 (20% of $1,000,000).  In order to avoid this excise tax and the
related adverse tax consequences for the Company, by signing this Agreement you
agree that your Basic Payments will not exceed an amount equal to your Cap
unless the exception described in paragraph (e), below, applies.

 

(b)                                 Special Definitions.  For purposes of this Section, the following
specialized terms will have the following meanings:

 

(i)                                     “Base Period
Income.”  “Base Period Income” is an
amount equal to your “annualized includable compensation” for the “base period”
as defined in Sections 280G(d)(1) and (2) of the Code and the
regulations adopted thereunder. 
Generally, your “annualized includable compensation” is the average of
your annual taxable income from the Company for the “base period,” which is the
five calendar years prior to the year in which the Change in Control
occurs.  These concepts are complicated
and technical and all of the rules set forth in the applicable regulations
apply for purposes of this Agreement.

 

(ii)                                  “Basic Payments.”  The “Basic Payments” include any “payments in
the nature of compensation” (as defined in Section 280G of the Code and
the regulations adopted thereunder), made pursuant to this Agreement or
otherwise, to you or for your benefit, 

 

10

 

the receipt of which is contingent on a Change in Control and to which Section 280G
of the Code applies.

 

(iii)                               “Cap” or “280G Cap.”  “Cap” or “280G Cap” shall mean an amount
equal to 2.99 times your “Base Period Income.” 
This is the maximum amount which you may receive without becoming
subject to the excise tax imposed by Section 4999 of the Code or which the
Company may pay without loss of deduction under Section 280G of the Code.

 

(c)                                  Calculating the
Cap.  If the Company believes that
these rules will result in a reduction of the payments to which you are
entitled under this Agreement, it will so notify you as soon as possible.  The Company will then, at its expense, retain
a “Consultant” (which shall be a law firm, a certified public accounting firm,
and/or a firm of recognized executive compensation consultants) to provide a
determination concerning whether your Basic Payments exceed the limit discussed
above (the “Determination”).  The Company
will select the Consultant.

 

At a minimum,
the Determination required by this Section must set forth the amount of
your Base Period Income, the value of the Basic Payments and the amount and
present value of any excess parachute payments.

 

If the
Determination states that there would be an excess parachute payment, your
payments under this Agreement will be reduced to the extent necessary to
eliminate the excess.

 

If the
Consultant selected to provide the Determination so requests, a firm of
recognized executive compensation consultants selected by the Company (which
may, but is not required to be, the Consultant) shall provide an opinion, upon
which such Consultant may rely, as to the reasonableness of any item of
compensation as reasonable compensation for services rendered before or after
the Change in Control.

 

If the Company
believes that your Basic Payments will exceed the limitations of this Section,
it will nonetheless make payments to you, at the times stated above, in the
maximum amount that it believes may be paid without exceeding such
limitations.  The balance, if any, will
then be paid after the opinions called for above have been received.

 

If the amount
paid to you by the Company is ultimately determined, pursuant to the
Determination or by the Internal Revenue Service, to have exceeded the
limitation of this Section, you must repay the excess promptly on demand of the
Company.  If it is ultimately determined,
pursuant to the Determination or by the Internal Revenue Service, that a
greater payment should have been made to you, the Company shall pay you the
amount of the deficiency, together with interest thereon from the date such
amount should have been paid to the date of such payment, at the rate set forth
above, so that you will have received or be entitled to receive the maximum
amount to which you are entitled under this Agreement.

 

As a general
rule, the Determination shall be binding on you and the Company.  Section 280G and the excise tax rules of
Section 4999, however, are complex and uncertain and, as a result, the
Internal Revenue Service may disagree with the Consultant’s conclusions.  If the Internal Revenue Service determines
that the Cap is actually lower than calculated by the Consultant, the Cap will
be recalculated by the Consultant.  Any
payment over that revised Cap 

 

11

 

will then be
repaid by you to the Company.  If the
Internal Revenue Service determines that the actual Cap exceeds the amount
calculated by the Consultant, the Company shall pay you any shortage.

 

The Company
has the right to challenge any determinations made by the Internal Revenue
Service.  If the Company agrees to
indemnify you from any taxes, interest and penalties that may be imposed upon
you (including any taxes, interest and penalties on the amounts paid pursuant
to the Company’s indemnification agreement), you must cooperate fully with the
Company in connection with any such challenge. 
The Company shall bear all costs associated with the challenge of any
determination made by the Internal Revenue Service and the Company shall
control all such challenges.

 

You must
notify the Company in writing of any claim or determination by the Internal
Revenue Service that, if upheld, would result in the payment of excise
taxes.  Such notice shall be given as
soon as possible but in no event later than 15 days following your receipt of
notice of the Internal Revenue Service’s position.

 

(d)                                 Effect of Repeal or
Inapplicability.  In the event that
the provisions of Sections 280G and 4999 of the Code are repealed without
succession, this Section shall be of no further force or effect.  Moreover, if the provisions of Sections 280G
and 4999 of the Code do not apply to impose the excise tax to payments under
this Agreement, then the provisions of this Section shall not apply.

 

(e)                                  Exception.  The Consultant selected pursuant to this Section will
calculate your “Uncapped Benefit” and your “Capped Benefit.”  The limitations of paragraphs (a), (b) and
(c) of this Section 10 will not apply to you and you will be entitled
to receive the gross-up payments provided by paragraph (f), if your
Uncapped Benefit is at least 120% of your Capped Benefit.  For this purpose, your “Uncapped Benefit” is
the amount to which you will be entitled pursuant to Section 2 or Section 3,
as applicable, without regard to the limitations of paragraphs (a), (b) and
(c) of this Section 10.  Your “Capped
Benefit” is the amount to which you will be entitled pursuant to Sections 2 or
3, as applicable, after the application of the limitations of
paragraphs (a), (b) and (c) of this Section 10.

 

(f)                                    Excise and
Income Tax Gross-Up.  As provided in
paragraph (e), if your Uncapped Benefit is at least 120% of your Capped
Benefit, the Company will provide you with the special gross-up payments called
for by this paragraph (f).  The
special gross-up payment will equal the sum of (i) an amount equal to the
total excise tax imposed on you (including the excise taxes on any excise tax
reimbursements due pursuant to this paragraph and the excise taxes on any
federal, state and local tax reimbursements due pursuant to the next clause);
and (ii) an amount equal to the “total presumed federal, state and local
taxes” that could be imposed on you with respect to the excise tax
reimbursements due to you pursuant to the preceding clause and the federal,
state and local tax reimbursements due to you pursuant to this clause.  For purposes of the preceding sentence, the “total
presumed federal, state and local taxes” that could be imposed on you shall be
conclusively calculated using a combined tax rate equal to the sum of the
maximum marginal federal, state and local income tax rates and the hospital
insurance (or “HI”) portion of FICA. 
Based on rates in effect as of the date of the execution of this
Agreement, the “total presumed federal, state and local taxes” rate is 40.85%
(35% federal 

 

12

 

income tax rate plus 3.4% Indiana state income tax rate plus 1%
Vanderburgh County income tax rate plus 1.45% HI tax rate) if you reside in
Vanderburgh County.  An adjustment will
be made if you reside in another County at the time payments are made.  No adjustments will be made in this combined
rate for the deduction of state taxes on the federal return, the loss of
itemized deductions or exemptions, or for any other purpose (other than as noted
above due to your County of residence). 
You shall be responsible for paying the actual taxes.  The gross-up payments called for by this
paragraph (f) shall be made on or before December 31 of the
calendar year following the calendar year in which you remit the taxes referred
to in this paragraph (f).

 

11.                               TERMINATION
NOTICE AND PROCEDURE.

 

Any
termination by the Company or you of your employment shall be communicated by
written Notice of Termination to you if such Notice of Termination is delivered
by the Company and to the Company if such Notice of Termination is delivered by
you, all in accordance with the following procedures:

 

(a)                                  The Notice of
Termination shall indicate the specific termination provision in this Agreement
relied upon and shall set forth in reasonable detail the facts and
circumstances alleged to provide a basis for termination.

 

(b)                                 Any Notice of
Termination by the Company shall be in writing signed by the President of the
Company or a member of the Board who is not a Company employee, specifying in
detail the basis for such termination.

 

(c)                                  If the Company shall
furnish a Notice of Termination for Cause and you in good faith notify the
Company that a dispute exists concerning such termination within the 15 day
period following your receipt of such notice, you may elect to continue your
employment during such dispute.  If it is
thereafter determined that Cause did exist, your “Termination Date” shall be
the earlier of (i) the date on which the dispute is finally determined,
either by mutual written agreement of the parties or pursuant to the
alternative dispute resolution provisions of Section 19 or (ii) the
date of your death.  If it is thereafter
determined that Cause did not exist, your employment shall continue as if the
Company had not delivered its Notice of Termination and there shall be no
Termination Date arising out of such notice.

 

(d)                                 If the Company shall
furnish a Notice of Termination by reason of Disability and you in good faith
notify the Company that a dispute exists concerning such termination within the
15-day period following your receipt of such notice, you may elect to continue
your employment during such dispute.  The
dispute relating to the existence of a Disability shall be resolved by the
opinion of the licensed physician selected by the Company; provided, however,
that if you do not accept the opinion of the licensed physician selected by the
Company, the dispute shall be resolved by the opinion of a licensed physician
who shall be selected by you; provided further, however, that if the Company
does not accept the opinion of the licensed physician selected by you, the
dispute shall be finally resolved by the opinion of a licensed physician
selected by the licensed physicians selected by the Company and you,
respectively.  If it is thereafter
determined that a Disability did exist, your Termination Date shall be the
earlier of (i) the date on which the dispute is resolved or (ii) the
date of your death.  If it is 

 

13

 

thereafter determined that a Disability did not exist, your employment
shall continue as if the Company had not delivered its Notice of Termination
and there shall be no Termination Date arising out of such notice.  For purposes of this Agreement, “Disability”
shall mean your inability to perform your customary duties for the Company due
to a physical or mental condition that is considered to be of long-lasting or
indefinite duration.

 

(e)                                  If you in good faith
furnish a Notice of Termination for Good Reason and the Company notifies you
that a dispute exists concerning the termination within the 15-day period
following the Company’s receipt of such notice, you may elect to continue your
employment during such dispute.  If it is
thereafter determined that Good Reason did exist, your Termination Date shall
be the earlier of (i) the date on which the dispute is finally determined,
either by mutual written agreement of the parties or pursuant to the
alternative dispute resolution provisions of Section 19, (ii) the
date of your death, or (iii) one day prior to the 18-month anniversary of
a Change in Control, and your payments hereunder shall reflect events occurring
after you delivered Notice of Termination. 
If it is thereafter determined that Good Reason did not exist, your
employment shall continue after such determination as if you had not delivered
the Notice of Termination asserting Good Reason.

 

(f)                                    If you submit a
Notice of Termination for Good Reason, and the Company successfully contests
the grounds you set forth in such Notice of Termination, at the Company’s
discretion you may be deemed to have voluntarily terminated your employment
other than for Good Reason regardless of whether you elect to continue
employment pending resolution of the dispute regarding your Notice of
Termination.

 

(g)                                 If the Company submits
a Notice of Termination for Cause, and you successfully contest the grounds set
forth in such Notice of Termination, the Company will be deemed to have
terminated you other than by reason of Disability or Cause if you do not elect
to continue employment pending resolution of the dispute regarding your Notice
of Termination.

 

(h)                                 For purposes of this
Agreement, a transfer from Accuride to one of its Affiliates or a transfer from
an Affiliate to Accuride or another Affiliate shall not be treated as a
termination of employment.  Such a
transfer may, however, in certain circumstances, provide you with Good Reason
to terminate employment pursuant to Section 6.

 

12.                               NO
MITIGATION.

 

The Basic
Severance Benefit, the Change in Control Benefits (except as otherwise provided
in Section 3(d)) and the other payments or benefits provided pursuant to
this Agreement will be payable without regard to whether you look for or obtain
alternative employment following your termination of employment with the Company.

 

14

 

13.                               SUCCESSORS.

 

Accuride will
require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or
assets of Accuride or any of its Affiliates to expressly assume and agree to
perform this Agreement in the same manner and to the same extent that Accuride
or any Affiliate would be required to perform it if no such succession had
taken place.  Failure of Accuride to obtain
such assumption and agreement prior to the effectiveness of any such succession
shall be a breach of this Agreement and shall entitle you to the compensation
described in this Agreement to which you would be entitled hereunder as if you
terminate your employment for Good Reason following a Change in Control, except
that for purposes of implementing the foregoing, the date on which any such
succession becomes effective shall be deemed the Termination Date.  As used in this Agreement, “Accuride” shall
mean Accuride as hereinbefore defined and any successor to its business and/or
assets as aforesaid which assumes and agrees to perform this Agreement by
operation of law or otherwise.

 

14.                               BINDING
AGREEMENT; ASSIGNMENT.

 

This Agreement
shall inure to the benefit of and be enforceable by you and your personal or
legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees.  If
you should die while any amount would still be payable to you hereunder had you
continued to live, all such amounts, unless otherwise provided herein, shall be
paid in accordance with the terms of this Agreement to your devisee, legatee or
other designee or, if there is no such designee, to your estate.  Except as provided in the preceding sentence,
no rights of any kind under this Agreement shall, without the written consent
of Accuride, be transferable or assignable by you, your spouse, or any other
person, or be subject to alienation, encumbrance, garnishment, attachment,
execution, or levy of any kind, voluntary or involuntary.

 

15.                               NOTICE.

 

For purposes
of this Agreement, notices and all other communications provided for in this
Agreement shall be in writing and shall be deemed to have been duly given when
delivered or mailed by United States certified or registered mail, return
receipt requested, postage prepaid, addressed to the respective addresses set
forth on the first page of this Agreement, provided that all notices to
Accuride shall be directed to the attention of the President of the Company or
a member of the Board who is not a Company employee with a copy to the
Secretary of Accuride, or to such other address as either party may have
furnished to the other in writing in accordance herewith, except that notice of
change of address shall be effective only upon receipt.

 

16.                               MISCELLANEOUS.

 

No provision
of this Agreement may be modified, waived or discharged unless such waiver,
modification or discharge is agreed to in writing and signed by you and the
President of the Company or a member of the Board who is not a Company
employee.  No waiver by either party
hereto at any time of any breach by the other party hereto of, or compliance
with, any condition or provision of this Agreement to be performed by such
other 

 

15

 

party shall be
deemed a waiver of similar or dissimilar provisions or conditions at the same
or at any prior or subsequent time.  No
agreements or representations, oral or otherwise, express or implied, with
respect to the subject matter hereof have been made by either party which are
not expressly set forth in this Agreement. 
Any payments provided for hereunder shall be paid net of any applicable
withholding required under federal, state or local law.  The obligations of the Company that arise
prior to the expiration of this Agreement shall survive the expiration of the
term of this Agreement.

 

17.                               VALIDITY.

 

The invalidity
or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement, which
shall remain in full force and effect.

 

18.                               COUNTERPARTS.

 

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

 

19.                               ALTERNATIVE
DISPUTE RESOLUTION.

 

(a)                                  Mediation.  Unless otherwise provided herein (such as in
Sections 10 and 11(d)), any and all disputes arising under, pertaining to
or touching upon this Agreement or the statutory rights or obligations of
either party hereto, shall, if not settled by negotiation, be subject to
non-binding mediation before an independent mediator selected by the parties
pursuant to Section 19(d). 
Notwithstanding the foregoing, both you and Accuride may seek preliminary
judicial relief if such action is necessary to avoid irreparable damage during
the pendency of the proceedings described in this Section 19.  Any demand for mediation shall be made in
writing and served upon the other party to the dispute, by certified mail,
return receipt requested, at the business address of Accuride, or at your last
known residence address, respectively. 
The demand shall set forth with reasonable specificity the basis of the
dispute and the relief sought.  The
mediation hearing will occur at a time and place convenient to the parties in
Evansville, Indiana, within 30 days of the date of selection or appointment of
the mediator.

 

(b)                                 Arbitration.  In the event that the dispute is not settled
through mediation, the parties shall then proceed to binding arbitration before
a single independent arbitrator selected pursuant to Section 19(d).  The mediator shall not serve as
arbitrator.  TO THE EXTENT ALLOWABLE
UNDER APPLICABLE LAW, ALL DISPUTES INVOLVING ALLEGED UNLAWFUL EMPLOYMENT DISCRIMINATION,
BREACH OF CONTRACT OR POLICY, OR EMPLOYMENT TORT COMMITTED BY ACCURIDE OR A
REPRESENTATIVE OF ACCURIDE, INCLUDING CLAIMS OF VIOLATIONS OF FEDERAL OR STATE
DISCRIMINATION STATUTES OR PUBLIC POLICY, SHALL BE RESOLVED PURSUANT TO THIS
POLICY AND THERE SHALL BE NO RECOURSE TO COURT, WITH OR WITHOUT A JURY
TRIAL.  The arbitration hearing shall
occur at a time and place convenient to the parties in Evansville, Indiana,
within 30 days of selection or appointment of the arbitrator.  If Accuride has adopted a policy that is
applicable to arbitrations with executives, the arbitration shall be conducted
in accordance with said policy to the extent 

 

16

 

that the policy is consistent with this Agreement and the Federal
Arbitration Act, 9 U.S.C. §§ 1-16. 
If no such policy has been adopted, the arbitration shall be governed by
the National Rules for the Resolution of Employment Disputes of the
American Arbitration Association (“AAA”) in effect on the date of the first
notice of demand for arbitration.  The
arbitrator shall issue written findings of fact and conclusions of law, and an
award, within 15 days of the date of the hearing unless the parties otherwise
agree.

 

(c)                                  Damages.  In cases of breach of contract or policy,
damages shall be limited to contract damages. 
In cases of discrimination claims prohibited by statute, the arbitrator
may direct payment consistent with the applicable statute.  In cases of employment tort, the arbitrator
may award punitive damages if proved by clear and convincing evidence.  The arbitrator may award attorneys’ fees to
the prevailing party and assess costs against the non-prevailing party, only in
accordance with Section 20 of this Agreement.  Issues of procedure, arbitrability, or
confirmation of award shall be governed by the Federal Arbitration Act, 9
U.S.C.  §§ 1-16, except that Court review
of the arbitrator’s award shall be that of an appellate court reviewing a
decision of a trial judge sitting without a jury.

 

(d)                                 Selection of
Mediators or Arbitrators.  The
parties shall select the mediator or arbitrator from a panel list made
available by the AAA.  If the parties are
unable to agree to a mediator or arbitrator within 10 days of receipt of a
demand for mediation or arbitration, the mediator or arbitrator will be chosen
by alternatively striking from a list of five mediators or arbitrators obtained
by Accuride from AAA.  You shall have the
first strike.

 

20.                               EXPENSES
AND INTEREST.

 

If a good
faith dispute shall arise with respect to the enforcement of your rights under
this Agreement or if any arbitration or legal proceeding shall be brought in
good faith to enforce or interpret any provision contained herein, or to
recover damages for breach hereof, and you are the prevailing party, you shall
recover from the Company any reasonable attorneys’ fees and necessary costs and
disbursements incurred as a result of such dispute or legal proceeding, and
prejudgment interest on any money judgment obtained by you calculated at the
rate of interest announced by Citibank from time to time as its prime rate from
the date that payments to you should have been made under this Agreement.  Any reimbursement of fees, costs and
disbursements to which you are entitled pursuant to this Section 20 shall
be paid by the Company, if at all, on or before December 31 of the
calendar year following the year in which you incurred the fees, costs and
disbursements for which you are entitled to reimbursement.  The fees, costs and disbursements reimbursed
in one calendar year will not affect the fees, costs and disbursements eligible
for reimbursement by the Company in a different calendar year.  The right to reimbursement under this Section 20
is not subject to liquidation or exchange for any other benefit.  It is expressly provided that the Company
shall in no event recover from you any attorneys’ fees, costs, disbursements or
interest as a result of any dispute or legal proceeding involving the Company
and you.

 

21.                               PAYMENT
OBLIGATIONS ABSOLUTE.

 

Accuride’s obligation
to pay you the compensation and to make the arrangements in accordance with the
provisions herein shall be absolute and unconditional and shall not be 

 

17

 

affected by
any circumstances; provided, however, that the Company may apply amounts
payable under this Agreement to any debts owed to the Company by you on your
Termination Date.  All amounts payable by
the Company in accordance with this Agreement shall be paid without notice or
demand.  If the Company has paid you more
than the amount to which you are entitled under this Agreement, the Company
shall have the right to recover all or any part of such overpayment from you or
from whomsoever has received such amount.

 

22.                               ENTIRE
AGREEMENT.

 

This Agreement
sets forth the entire agreement between you and the Company concerning the
subject matter discussed in this Agreement and supersedes all prior agreements,
promises, covenants, arrangements, communications, representations or
warranties, whether written or oral, by any officer, employee or representative
of the Company.  Any prior agreements or
understandings with respect to the subject matter set forth in the
aforementioned agreements are hereby terminated and canceled.

 

23.                               STATUTORY
REFERENCES.

 

All references
to sections of the Securities Exchange Act of 1934 or the Code shall be deemed
also to refer to any successor provisions to such sections.  All references to sections of the final
regulations issued pursuant to Section 409A shall be deemed also to refer
to any successor provisions of such regulations or rulings or other guidance
that clarify such regulations.

 

24.                               DEFINITIONS.

 

A number of
terms have been defined throughout this Agreement.  These defined terms are identified by the
capitalization of the first letter of each word or the first letter of each
substantive word of a phrase.  Whenever
these terms are capitalized they shall be given the defined meaning.

 

25.                               PARTIES.

 

This Agreement
is an agreement between you and Accuride. 
In certain cases, though, obligations imposed upon Accuride may be
satisfied by an Accuride Affiliate.  Any
payment made or action taken by an Accuride Affiliate shall be considered to be
a payment made or action taken by Accuride for purposes of determining whether
Accuride has satisfied its obligations under this Agreement.

 

26.                               NO
RIGHTS IN ANY PROPERTY OF COMPANY.

 

The
undertakings of the Company constitute merely the unsecured promise of the
Company to make payments as provided for herein.  No property of the Company shall, by reason
of this Agreement, be held in trust for you, your spouse or any other person,
and neither you nor your spouse or any other person shall have, by reason of
this Agreement, any rights, title or interest of any kind in any property of
the Company.

 

18

 

27.                               NOT
AN EMPLOYMENT AGREEMENT.

 

Nothing in
this Agreement shall be construed as an offer or commitment by the Company to
continue your employment with the Company for any period of time.

 

28.                               FACILITY
OF PAYMENT.

 

If the Company
shall find that any person to whom any amount is payable hereunder is unable to
care for his affairs, any payment due (unless a prior claim therefore shall
have been made by a duly appointed guardian, committee, or other legal
representative) may be paid to any person deemed by the Company to have
incurred expense for such person otherwise entitled to payment, in such manner
and proportions as the Company may determine.

 

29.                               GOVERNING
LAW.

 

This Agreement
shall be construed in accordance with and governed by the laws of the State of
Indiana.  Venue for any cause of action
arising under this Agreement shall be in Vanderburgh County, Indiana, USA.

 

30.                               AMENDMENTS.

 

This Agreement
may be amended at any time by a written agreement executed by the Company and
you.  No amendment that will result in a
violation of Section 409A of the Code, or any other provision of
applicable law, may be made to this Agreement and any such amendment shall be
void ab initio.

 

If you would
like to participate in this special benefits program, please sign and return
the extra copy of this letter which is enclosed.

 

	
   

  	
  Sincerely,

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  David K. Armstrong

  	
   

  
	
   

  	
  Senior Vice President/Chief Financial Officer

  	
   

  
	
   

  	
  Accuride Corporation

  	
   

  

 

19

 

ACCEPTANCE

 

I hereby accept the offer to participate in this special benefit
program and I agree to be bound by all of the provisions noted above.

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