Document:

Second Amendment Lease Agreement Dated December 21, 2000

 Exhibit 10.6.3 
  
 THIRD AMENDMENT OF LEASE 
  

						
	 BETWEEN:
	  	 BROOKFIELD DENVER INC.
 a Colorado corporation
 1625 Broadway, Suite 1500
 Denver, Colorado 80202
	  	(“Landlord”	)
			
	 AND:
	  	 PATINA OIL & GAS CORPORATION
 a Delaware corporation
 1625 Broadway, Suite 2000
 Denver, Colorado 80202
	  	(“Tenant”	)
			
	 FOR PREMISES IN:
	  	 1625 Broadway
 Denver, Colorado 80202
	  	(“Building”	)
			
	 DATE:
	  	 November 7, 2003
	  	 	 

  
 LANDLORD AND TENANT hereby
agree as follows: 
  

	1.	In this Third Amendment of Lease (“Third Amendment”): 

  

	 	(a)	“Lease” means that certain Lease of Office Space between Landlord and Tenant dated December 21, 2000, and as amended by the “Amendment” of Lease dated November
19, 2001, “Second Amendment” of Lease dated January 16, 2003, and this Third Amendment of Lease dated of even date hereof, including all Exhibits attached to the foregoing, covering the Premises. 

  

	 	(b)	“Initial Premises” means 42,965 rentable square feet, more or less, on the nineteenth (19th), twentieth (20th), and
twenty-first (21st) floors of the Building, as set out in the Lease. 

  

	 	(c)	“Extended Term” of the Initial Premises shall be coterminous with the Additional Premises Term as defined below. 

  

	 	(d)	“Additional Premises” means 14,314 rentable square feet of space on the eighteenth (18th) floor of the Building, as shown on the attached Exhibit 1. 

  

	 	(i)	“Additional Premises Delivery Date” shall mean the date Landlord recaptures the Additional Premises from the existing tenants, which is anticipated to be seventy-five (75)
days after the execution of this Third Amendment by Landlord and Tenant. 

  

	 	(ii)	“Additional Premises Commencement Date” shall mean the Additional Premises Delivery Date. 

  

	 	(iii)	“Additional Premises Term” shall commence on the Additional Premises Commencement Date and continue for a period of four (4) full years and eight (8) full months, and
shall be coterminous with the Extended Term of the Initial Premises. 

	 	(e)	“Premises” for all purposes after the Additional Premises Commencement Date the Premises shall collectively be deemed the Initial Premises and the Additional Premises,
consisting of 57,279 rentable square feet of space. 

  

	 	(f)	“Effective Date” shall mean the date first written above. 

  

	 	(g)	All other words and phrases, unless otherwise defined herein, have the meanings attributed to them in the Lease. 

  

	2.	Extended Term. On the Effective Date, the Term of the Lease is hereby extended through the Extended Term. 

  

	3.	Additional Premises. Tenant shall have the right to enter the Additional Premises on the Additional Premises Delivery Date to perform such alterations as are necessary or
desirable to prepare the Additional Premises for Tenant’s use and occupancy. Such entry shall be on all the terms and conditions of the Lease including the payment of Rent, expect as provided in Paragraph 4 below. Tenant shall be deemed to have
examined and accepted the Additional Premises in its “as-is” condition as of the Additional Premises Delivery Date for commencement of the Additional Premises Improvements (described in Paragraph 7 below). Tenant acknowledges that the
Additional Premises Delivery Date and Commencement Date are contemporaneous, and nothing herein shall limit Tenant’s obligations as it relates to the Additional Premises resulting from Landlord’s delay in delivery of the Additional
Premises. Upon the Additional Premises Commencement Date, Tenant accepts the respective Additional Premises to have and to hold during the Additional Premises Term, on the same terms and conditions as are contained in the Lease except as otherwise
provided herein. 

  

	4.	Additional Premises Annual Rent. Effective on the Additional Premises Commencement Date, Section 4.01 of the Lease (as described in Paragraph 4 of the Second Amendment) is
hereby modified by adding the following subsections: 

  

	 	“(d)	Additional Premises Annual Rent. 

  

	 	(i)	for the period commencing on the Additional Premises Commencement Date and continuing thereafter through the four hundred twentieth (420th) day of the Additional Premises Term (“Rent Concession Period”), Tenant shall not be obligated for the payment of Annual Rent and Occupancy Costs
(as further described below) in the Additional Premises; and 

  

	 	(ii)	for the period commencing on the four hundred twenty-first (421st) day of the Additional Premises Term and continuing through the thirty-sixth (36th) full month of
the Additional Premises Term, Tenant shall pay to Landlord an amount equal to $11,928.33 per month, based upon $10.00 per rentable square feet in the Additional Premises; and 

  

	 	(iii)	for the period commencing on the first day of the thirty-seventh (37th) full month of the Additional Premises Term and continuing through the last day of the Additional Premises Term, Tenant shall pay to Landlord an amount equal to 14,314.00 per month, based upon $12.00 per rentable square
feet in the Additional Premises.” 

  

 2 

	5.	Initial Premises Annual Rent. Commencing on May 1, 2007 and continuing through the last day of the Additional Premises Term, Tenant shall pay to Landlord an amount equal to
$62,868.42 per month, consisting of (i) $54,798.27 per month, based upon $18.40 per 35,738 rentable square feet, and (ii) $8,070.15 per month, based upon $13.40 per 7,227 rentable square feet, payable pursuant to the Lease. 

 

	6.	Occupancy Costs. Except as provided for in Paragraph 4 above, effective on the Additional Premises Commencement Date, Tenant shall pay its share of Occupancy Costs in respect
of the Additional Premises and the Initial Premises at the times and in the manner as payments of Occupancy Costs are to be made pursuant to Section 4.02 of the Lease, which are estimated to be $9.70 per rentable square foot (2003 calendar year).
Nothing herein shall prevent Tenant from continuing its obligations to pay its share of Occupancy Costs in respect of the Initial Premises as provided in the Lease during the Extended Term. 

  

	7.	Additional Premises Improvement Allowance. Landlord shall provide to Tenant an improvement allowance (the “Allowance”) in an amount not to exceed $264,809.00 based
upon $18.50 per rentable square foot of space in the Additional Premises, for the contribution toward the entire cost of Tenant’s design, engineering, and construction of real property improvements within the Additional Premises
(“Additional Premises Improvements”). Tenant shall be responsible for the coordination of the Additional Premises Improvements, which shall be constructed in accordance with a mutually agreed upon space plan (“Space Plan”). Any
changes to the Space Place shall require Landlord’s approval, which shall not be unreasonably withheld. Tenant shall be responsible for any costs in excess of the Allowance. The Allowance shall be disbursed on behalf of Tenant in accordance
with the following procedure. Tenant shall, from time to time (but not more than one per month or a total of three (3) requests), approve and submit Tenant’s contractor’s paid invoices and lien waivers to Landlord for reimbursement up to
the maximum of the Allowance, which Landlord shall reimburse to Tenant within approximately forty-five (45) days after receipt of same from Tenant. All requests for reimbursement in connection with the completion of the Additional Premises
Improvements shall be submitted by Tenant to Landlord on a timely basis, but in no case later than June 30, 2005. Provided Tenant has notified Landlord in writing, and is not in default hereunder, and a portion of the Allowance still remains unspent
after the completion of the Additional Premises Improvements, Landlord shall issue a credit (not to exceed $10.00 per rentable square foot of space in the Additional Premises) to Tenant against the next successive months’ Annual Rent to be paid
under the Lease after the Rent Concession Period (as described in Paragraph 4 above) in an amount equal to the unspent Allowance. However, in no event shall this credit be applicable after June 30, 2005. 

  

	8.	Parking. In addition to the parking provided in Article 23.00 of the Lease, Paragraph 6 of the Amendment, and Paragraph 8 of the Second Amendment, Tenant shall have the
option exercisable no later than the Additional Premises Commencement Date to rent two (2) unreserved guaranteed parking spaces underneath the Building at rates set by Landlord from time to time. The current monthly rental rate is $200.00 per space.

  

 3 

 Tenant shall have the option exercisable no later than the Additional Premises Commencement Date to rent
ten (10) unreserved guaranteed parking spaces at the 15th and Tremont Parking Garage, located at 15th and Tremont streets, at rates set by Landlord from time to time. The current monthly rental rate is $130.00 per space. 
  
 In the event Tenant fails to exercise the above options no later than the
Additional Premises Commencement Date or discontinues the use or payment for any of the above guaranteed parking spaces for a period of thirty (30) days or more, such spaces shall no longer be deemed guaranteed nor available and shall return to
Landlord as its available inventory. Tenant may again rent such forfeited spaces subject to Landlord’s standard month-to-month policy. 
  

	9.	Contingency. Tenant acknowledges that this Third Amendment is expressly contingent upon Landlord recapturing the Additional Premises from the existing tenants on or
before December 31, 2003 (the “Recapture Date”). In the event Landlord fails to recapture the Premises by the Recapture Date, the Term of this Lease shall be extended on a day-per-day basis for each day of delay, but in no event shall the
Term be extended beyond thirty (30) days. In the event Landlord fails to deliver the Additional Premises on or before April 1, 2004, Tenant shall have the right to terminate this Lease as it relates solely to the Additional Premises and this Third
Amendment within ten (10) business days written notice. In the event Landlord delivers the Additional Premises within such ten (10) business days, this Third Amendment shall remain in full force and effect. In the event Landlord fails to deliver the
Additional Premises within such ten (10) business days then this Amendment and all of its terms and conditions shall become null and void and the terms of the Lease (excluding this Third Amendment) shall control. 

  

	10.	Confirmation of Existing Terms. Except as specifically provided herein, the terms and conditions of the Lease are confirmed and continue in full force and effect.

  

	11.	Binding Effect. This Third Amendment shall be binding on the heirs, administrators, successors and assigns (as the case may be) of the parties hereto.

  

	12.	Conflicting Terms. In the event of any conflicts between the provisions of the Lease and the provisions of this Third Amendment, this Third Amendment shall control.

  

	13.	Effective Date. This Third Amendment shall be effective only on such date as Landlord and Tenant both execute this Third Amendment. 

  

 4 

 IN WITNESS OF THIS THIRD AMENDMENT OF LEASE Landlord and Tenant have properly executed it as of the date set out
on page one. 
  

							
	 LANDLORD:
	  	 TENANT:

		
	 BROOKFIELD DENVER INC.,
	  	 PATINA OIL & GAS CORPORATION

	 a Colorado corporation
	  	 a Delaware corporation

				
	 By
	 	 /s/ Francis P. Halm

	  	 By
	  	 /s/ J.W. Decker

	 Name
	 	 Francis P. Halm
	  	 Name
	  	 J.W. Decker

	 Title
	 	 Vice President
	  	 Title
	  	 President

				
	 By
	 	 /s/ Sheri K. Temple

	  	 By
	  	

	 Name
	 	 Sheri K. Temple
	  	 Name
	  	 
	 Title
	 	 Assistant Secretary
	  	 Title
	  	 

  

 5Annual Management Incentive Plan as amended and restated as of January 16, 2003

 Exhibit 10.3 
  
 AK STEEL CORPORATION 
  
 ANNUAL MANAGEMENT INCENTIVE PLAN 
  
 (as amended and restated as of January 16, 2003) 
  
  
 Introduction 
  
 The name of this plan is the AK Steel Corporation Annual Management Incentive
Plan (the “Plan”). AK Steel Corporation (the “Company”) adopted the Plan in 1994 to enhance the Company’s focus on specific performance goals with respect to net income, safety, and quality. The Plan is hereby amended and
restated as set forth in this document. 
  
 The Plan is a payroll
practice intended to motivate selected employees to meet certain performance goals. The Plan is not intended to be an employee benefit plan within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended, and
the Plan shall be interpreted, administered and enforced to the extent possible in a manner consistent with that intent. Any obligations under the Plan shall be the joint and several obligations of AK Steel Holding Corporation, the Company, and each
of their respective subsidiaries and affiliates. The Plan is designed to comply with the performance-based compensation exception under Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”). 
  
 1.    Administration of the Plan. 
  
 This Plan shall be administered by the Compensation Committee (the
“Committee”) of the Board of Directors of the Company (the “Board”). The Committee shall consist of not less than two members of the Board who shall be appointed from time to time by, and shall serve at the discretion of, the
Board. Each member of the Committee shall be an “outside director” within the meaning of Section 162(m) of the Code and related regulations, an “independent director” as defined in the rules and regulations of the New York Stock
Exchange, and a “non-employee director” as defined in Rule 16b-3 promulgated under the Securities Exchange Act of 1934, as amended. The Human Resources Department of the Company shall maintain records of authorized participants for each
period described in paragraph 4 below (the “Performance Period”). 
  
 2.    Participation. 
  
 Certain nonrepresented salaried employees of the Company (“Plan Member” or “Plan Members”) shall be eligible to participate in this Plan upon selection by the Chairman of the Board or his delegate, the Executive
Management Committee (the “EMC”), subject to the approval and/or review from time to time by the Committee. The EMC shall consist of the Company’s Chief Executive Officer, President, Vice President—Human Resources, and such other
individuals as may be designated from time to time by the Chief Executive Officer. Notwithstanding the foregoing, any covered employee as defined in Section 162(m)(3) of the Code (“Covered Employee”), shall be designated to participate in
the Plan by the Committee in writing within the time period prescribed by Section 162(m) of the Code and related regulations. 
  
 3.    Bonus Opportunity Targets. 
  
 Each Plan Member shall be assigned a Bonus Opportunity Target Percentage (“Target Percentage”) and a Bonus Opportunity Maximum Percentage
(“Maximum Percentage”) at the time he is selected for participation in this Plan based on his position in the Company and/or his overall contribution to the Company. A Plan Member’s Target Percentage and/or Maximum Percentage may be
changed from time to time at the discretion of the Committee or the EMC. Notwithstanding the foregoing, the Committee shall assign or change, in writing, the Target Percentage and Maximum Percentage for any Covered Employee for a particular
Performance Period within the time period prescribed by Section 162(m) of the Code and related regulations. 
  

 A Plan Member’s Target Percentage with respect to any Performance Period is the percentage of his
annual base compensation (as defined below) that may be awarded to him by the Company as additional compensation if the Company achieves certain goals as determined by the Committee and approved by the Board with respect to net income (excluding
special, unusual and extraordinary items), safety, and quality. A Plan Member’s Maximum Percentage, which is two times his Target Percentage, is the percentage of his annual base compensation that may be awarded if the Company achieves for the
Performance Period not only the established safety and quality goals, but exceeds the established net income goal by a certain level as determined by the Committee. A Plan Member’s annual base compensation for purposes of this Plan shall be his
actual base salary paid during the relevant Performance Period. 
  
 Any amount awarded to a Plan Member under this Plan shall be referred to herein as a “Performance Award.” If a Plan Member is designated to participate in the Plan after the commencement of a Performance Period, such
individual’s Performance Award will be prorated based on his period of participation in the Plan during such Performance Period. 
  
 4.    Performance Periods. 
  
 Each Performance Period shall be the twelve-month period commencing on January 1 and ending on the following December 31. 
  
 5.    Performance Award Payment Date. 
  
 The Performance Award Payment Date is the date on which any Performance
Awards are paid to Plan Members, which date shall not be more than 120 days following the last day of each Performance Period. Before any Performance Award is paid to a Covered Employee, the Committee shall certify in writing that the criteria for
receiving a Performance Award pursuant to the terms of the Plan have been satisfied. 
  
 6.    Performance Award Determination. 
  
 For each Performance Period, the Committee shall assign, in writing, with respect to each of the performance factors of net income, safety, and quality, a threshold goal, a target goal, and, with respect to the net
income factor, the level which if exceeded will result in the maximum Performance Awards being made. If the threshold goals are not met, no Performance Awards shall be made. Achievement of performance between the threshold and target goals shall
result in Performance Awards being made. The threshold and target goals, and the level of net income required to achieve the maximum Performance Awards, shall be communicated in writing to Covered Employees no later than the time period prescribed
by Section 162(m) of the Code and related regulations. Different threshold and target goals may apply with respect to a specific plant, department, or area of the Company. Notwithstanding the foregoing, Performance Awards may be granted with respect
to achievement of the threshold goal for safety even if the threshold goal for net income for the Performance Period is not achieved. 
  
 The Committee may establish such other parameters and procedures for determining Performance Awards as it deems appropriate with respect to any
Performance Period. The maximum Performance Award (including any special Performance Award pursuant to paragraph 7 below) that may be paid to any Covered Employee with respect to any Performance Period shall be $5 million. The Committee may delegate
the calculation of Performance Awards to the Company’s Chief Financial Officer, subject to the Committee’s supervision. 
  
 7.    Special Awards to Covered Employees. 
  
 Subject to the provisions of paragraph 6 above, the Committee may grant with respect to any Performance Period a special Performance Award to any Covered
Employee if a specified level of net income (excluding special, unusual and extraordinary items) is achieved by the Company. The level of net income required to achieve any such award and the amount of any such award shall be established by the
Committee in writing within the time period prescribed by Section 162(m) of the Code and related regulations. 
  
  

 2 

 8.    Form of Payment. 
  
 All Performance Awards will be paid in a single lump-sum payment in cash. The Company will withhold such payroll or other
taxes as it determines to be necessary or appropriate. 
  
 9.    Occurrence of Events During Performance Period. 
  
 a.    Termination of Employment. 
  
 If during a Performance Period a Plan Member dies, becomes totally and permanently disabled, or retires, the
Plan Member (or his estate in the case of death) shall be entitled under this Plan to a prorated Performance Award, if any, based on his period of participation during such Performance Period. If during a Performance Period a Plan Member’s
employment with the Company involuntarily terminates for any reason other than for cause, the Plan Member may receive, in the sole discretion of the Committee or the EMC, a prorated Performance Award, if any, based on his period of participation
during such Performance Period. If a Plan Member is terminated for cause, as cause may be defined by the Committee or the EMC, or if a Plan Member voluntarily terminates before any Performance Award Payment Date, no Performance Award shall be paid
under this Plan. 
  
 b.    Removal
from the Plan. 
  
 A Plan Member may be
removed from further participation in this Plan by the Committee or the EMC and such removal shall be effective as of the date determined by the Committee or the EMC. In such a case, the Plan Member may receive, in the sole discretion of the
Committee or the EMC, a prorated Performance Award, if any, based on his period of participation during the Performance Period in which his removal occurs. 
  
 c.    Leave of Absence. 
  
 If during a Performance Period, a Plan Member is absent from employment with the Company for a period of more than ninety (90) consecutive
calendar days for any reason, the Plan Member’s participation in the Plan will be suspended for the period of such absence exceeding ninety (90) days, and he may receive, in the sole discretion of the Committee or the EMC, a prorated
Performance Award, if any, based on his period of participation during such Performance Period. 
  
 10.    Source of Benefits. 
  
 The Company shall make any cash payments due under the terms of this Plan directly from its assets. Nothing contained in this Plan shall give or be deemed to give any Plan Member or any other person any interest in
any property of the Company, nor shall any Plan Member or any other person have any right under this Plan not expressly provided by the terms hereof, as such terms may be interpreted and applied by the Committee in its discretion. 
  

	11.    Liability	 	of Officers and Plan Members. 

  
 No current or former employee, officer, director or agent of AK Steel Holding Corporation or of the Company shall be personally liable to any Plan Member
or other person to pay any benefit payable under any provision of this Plan or for any action taken by any such person in the administration or interpretation of this Plan. 
  
 12.    Unsecured General Creditor. 
  
 The rights of a Plan Member (or his beneficiary in the event of his death) under this Plan shall only be the rights of a
general unsecured creditor of the Company, and the Plan Member (or his designated beneficiary) shall not have any legal or equitable right, interest, or other claim in any property or assets of the Company by reason of the establishment of this
Plan. 
  
 13.    Arbitration. 
  
 Any dispute under this Plan shall be submitted to binding arbitration
subject to the rules of the American Arbitration Association before an arbitrator selected by the Company and acceptable to the Plan Member. If the Plan Member objects to the appointment of the arbitrator selected by the Company, and the Company
does not appoint an arbitrator acceptable to the Plan Member, then the Company and the Plan Member shall each select an 

  

 3 

 
arbitrator and those two arbitrators shall collectively appoint a third arbitrator who shall alone hear and resolve the dispute. The Company and the Plan
Member shall share equally the costs of arbitration. No Company agreement of indemnity, whether under its Articles of Incorporation, the bylaws or otherwise, and no insurance by the Company, shall apply to pay or reimburse any Plan member’s
costs of arbitration. 
  
 14.    Amendment or Termination
of Plan. 
  
 The Board expressly reserves for itself and for
the Committee the right and the power to amend or terminate the Plan at any time. In such a case, unless the Committee otherwise expressly provides at the time the action is taken, no Performance Awards shall be paid to any Plan Member on or after
the date of such action. 
  
 15.    Miscellaneous.

  
 a.    Assignability.

  
 Plan Members shall not alienate, assign,
sell, transfer, pledge, encumber, attach, mortgage, or otherwise hypothecate or convey in advance of actual receipt the amounts, if any, payable hereunder. No part of the amounts payable hereunder shall, prior to actual payment, be subject to
seizure or sequestration for the payment of any debts, judgments, alimony, or separate maintenance, nor shall any person have any other claim to any benefit payable under this Plan as a result of a divorce or the Plan Member’s, or any other
person’s bankruptcy or insolvency. 
  
 b.    Obligations to the Company. 
  
 If a Plan Member becomes entitled to payment of any amounts under this Plan, and if at such time the Plan Member has any outstanding debt, obligation, or other liability representing an amount owed to the Company,
then the Company may offset such amounts against the amounts otherwise payable under this Plan. Such determination shall be made by the Committee or the Board. 
  

c.    No Promise of Continued Employment. 
  
 Nothing in this Plan or in any materials describing or relating to this Plan grants, nor should it be deemed
to grant, any person any employment right, nor does participation in this Plan imply that any person has been employed for any specific term or duration or that any person has any right to remain in the employ of the Company. Subject to the
provisions of paragraph 9 hereof, the Company retains the right to change or terminate any condition of employment of any Plan Member without regard to any effect any such change has or may have on such person’s rights hereunder. 
  
 d.    Captions. 
  
 The captions to the paragraphs of this Plan are for
convenience only and shall not control or affect the meaning or construction of any of its provisions. 
  
 e.    Pronouns. 
  
 Masculine pronouns and other words of masculine gender shall refer to both men and women. 
  
 f.    Validity. 
  
 In the event any provision of this Plan is found by a court
of competent jurisdiction to be invalid, void, or unenforceable, such provision shall be stricken and the remaining provisions shall continue in full force and effect. 
  
 g.    Applicable Law. 
  
 This Plan is subject to interpretation under federal law and, to the extent applicable, the law of the State
of Ohio. 
  

 4

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