Document:

Exhibit 10.14

 

AMENDED AND RESTATED LEASE AGREEMENT

 

THIS AMENDED AND RESTATED LEASE AGREEMENT
(the “Lease”), dated as of April 1, 1999, between KAISER ALUMINUM & CHEMICAL CORPORATION, a Delaware
corporation (the “Landlord”), and AKW L.P., a
Delaware limited partnership, having an address at 3560 West Market Street,
Suite 315, Akron, Ohio 44333 (the “Tenant”) amends and restates that
certain Lease Agreement dated as of May 1, 1997, between Landlord and Tenant
(the “Original Lease”).

 

W I T N E
S S E T H :

 

WHEREAS, Landlord, Accuride Corporation (collectively, the “Contributing
Parties”), Tenant and AKW General Partner L.L.C., a Delaware limited
liability company, entered into a Contribution Agreement, dated as of May 1,
1997 (the “Contribution Agreement”), pursuant to which, inter  alia,
the Contributing Parties contributed or otherwise caused to be transferred to
Tenant certain assets and rights necessary to permit Tenant to engage in the
Business (as defined in the Contribution Agreement); and

 

WHEREAS, Landlord is the owner of certain improved real property
located at 1015 E. 12th Street, Erie, Pennsylvania (the “Plant”) at
which Landlord conducted certain businesses, including without limitation,
certain aspects of the Business; and

 

WHEREAS, pursuant to the Contribution Agreement, Landlord and Tenant
agreed to enter into the Original Lease in order to provide for the leasing by
Landlord to Tenant of certain portions of the Plant used in connection with the
Business, all on the terms and conditions provided therein; and

 

WHEREAS, subsequent to the execution of the Original Lease, Landlord
ceased to independently conduct manufacturing operations at the Plant and
Tenant began to utilize space at the Plant in addition to the Demised Premises
(as defined in the Original Lease); and

 

WHEREAS, the Landlord and Tenant desire to enter into this Amended and Restated
Lease Agreement in order to amend the Original Lease to include the Additional
Premises (as defined) and to incorporate certain other changes and modifications
reflected herein;

 

NOW, THEREFORE, in consideration of the mutual covenants, and subject
to the terms and conditions, contained herein, the parties hereto agree as
follows:

 

 

ARTICLE 1

 

Premises - Term

 

Section 1.1                                      (a)
(i) The Landlord, for and in consideration of the rents, covenants and
agreements contained in this Lease to be paid, kept and performed by the
Tenant, demises and leases to the Tenant, and the Tenant does hereby take and
hire, upon and subject to the covenants, terms, conditions and agreements in
this Lease, which the Tenant agrees to keep and perform, certain portions of
the Plant which are described below and are shown on Exhibit “A-1”
attached hereto and made a part hereof:

 

(1)                                  Building
11- an approximately 26,650 square foot building used for the storage of raw
materials, billet preparation and storage for maintenance and production
supplies;

 

(2)                                  Building
22- an approximately 52,650 square foot building which houses the hydraulic
presses used to forge and extrude aluminum products, and also houses the
hydraulic pumps and contains office space and a maintenance area;

 

(3)                                  Building
26 - an approximately 33,750 square foot building used for receiving production
and maintenance supplies, shipping products and spinning and heat treating
products;

 

(4)                                  Building
16 - an approximately 2,500 square foot building which houses certain employee
lockers;

 

(5)                                  The
second floor of the Administration Building;

 

(6)                                  The
training room located in Building 1 comprising an approximately 1,600 square foot
area;

 

(7)                                  The
dispensary located in Building 2 comprising an approximately 800 square foot
area;

 

(8)                                  Building
15A - an approximately 1,800 square foot building used to house compressors;

 

(9)                                  Building
19 - an approximately 800 square foot building used as an oil house;

 

(10)                            Building
24 - an approximately 6,500 square foot building used as a battery shop;

 

(11)                            The
Substation;

 

(12)                            Building
3 - an approximately 16,575 square foot building used as a die shop;

 

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(13)                            Building
4 - an approximately 16,575 square foot building used as a die shop;

 

(14)                            The
southern portion of Building 9 - comprising an approximately 2,200 square foot
space used as a spinner/furnace loading area;

 

(15)                            Building
10 - an approximately 16,800 square foot building used as a storage and layout
area;

 

(16)                            Building
12 - an approximately 77,109 square foot area, including Buildings 12A, 12B,
12N and 12S, which houses certain maintenance areas, a maintenance and scrap
loading dock and solution/aging furnaces;

 

(17)                            Building
13 - an approximately 2,800 square foot area used for lab and engineering
purposes; and

 

(18)                            Building
25 - an approximately 6,500 square foot store room.

 

(ii)                                  For
purposes of this Lease, items (1) through (4) and the eastern portion of item
(5) above are collectively referred to in this Lease as the “Original
Demised Premises”, items (6) through (11) are collectively referred to in
this Lease as the “Designated Original Licensed Premises”, and the
remaining portion of item (5) and items (12) through (18) above are
collectively referred to in this Lease as the “Additional Premises”, and
the Original Demised Premises, the Designated Original Licensed Premises and
the Additional Premises are collectively referred in this Lease to as the “Demised
Premises”.

 

(iii)                               The
Landlord also hereby grants to the Tenant, its agents, employees, vendors and
contractors a license to use, during the Term, on a non-exclusive basis, the
roadways, sidewalks, designated parking lots, portions of the Plant not within
the Demised Premises as reasonably necessary in order for AKW to traverse from
one portion of the Demised Premises to another in connection with the operation
of its business, and other areas as generally shown on Exhibit “A-1”
attached hereto and made a part hereof as the “Licensed Premises” (the “Licensed
Premises”, and together with the Demised Premises, the “Premises”)
for purposes of access to and parking in the vicinity of the Demised
Premises.  Landlord may, at its option,
at any time during the Term after reasonable prior notice to Tenant (except in
the event of an emergency), relocate all or a portion of the Designated
Original Licensed Premises or Licensed Premises to other areas in the Plant,
provided that such alternative areas provide reasonable access to, and parking
in the vicinity of, the Demised Premises. 
The Tenant shall use the Premises in accordance with the terms and
conditions set forth in this Lease and in Section 6.5 of the Contribution
Agreement.  Tenant acknowledges and
agrees that the privileges granted Tenant under this Section shall merely
constitute a license and shall not be deemed to grant Tenant a leasehold or
other real property interest in the Licensed Premises.  This license shall automatically terminate
and expire upon the expiration or earlier termination of this Lease and the
termination of such license shall be self-operative and no further instrument
shall be required to effect such termination.

 

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(iv)                              The
Premises shall specifically exclude any and all steam tunnels at the Plant and
the emergency generator room located between Buildings 11 and 26 housing the
diesel generator which provides emergency lighting for the east end of the
Plant (collectively, the “Prohibited Areas”), irrespective of whether
such Prohibited Areas or access thereto lies within or beneath any portion of
the land or improvements comprising the Premises.  Notwithstanding the foregoing, Tenant may
access the Prohibited Areas as necessary for purposes of normal routine
maintenance of equipment located in those areas; provided that all such work is
performed in accordance with applicable laws and regulations, including
applicable health and safety regulations.

 

(b)                                 The
Landlord hereby leases to the Tenant the items of personal property set forth
on Exhibit “A-2” annexed hereto and made a part hereof (the “Original
Personal Property”) and the items of personal property set forth on Exhibit
“A-3” annexed hereto and made a part hereof (the “New Personal Property”,
the Original Personal Property and the New Personal Property being collectively
referred to herein as the “Personal Property”).

 

Section 1.2                                      (a)
This Lease shall have an initial term of ten (10) years (the “Initial Term”),
which Initial Term commenced on May 1, 1997 (the “Commencement Date”)
and shall expire on the day (the “Expiration Date”) immediately
preceding the tenth (10th) anniversary of the Commencement Date, unless the
Initial Term shall be extended or sooner terminated as hereinafter provided
(the Initial Term, as the same may be extended from time to time, the “Term”).

 

(b)                                 Provided
that this Lease is in full force and effect and that the Tenant is not then in
default hereunder beyond any applicable grace periods, the Tenant shall have
the right to renew this Lease for three (3) periods of five (5) years each
(each, a “Renewal Period”), exercisable by delivery of a written notice
(“Tenant’s Renewal Notice”) received by Landlord no later than one
hundred eighty (180) days prior to the expiration of the then-current
Term.  Each Renewal Period shall commence
on the day following the expiration date of the Initial Term or the immediately
preceding Renewal Period, as the case may be, and shall end on the fifth (5th)
anniversary of such expiration date. 
Upon the exercise by the Tenant from time to time of its right to renew
as aforesaid, this Lease shall be deemed extended through the last day of the
applicable Renewal Period upon the terms and conditions herein set forth except
that the Basic Rent (as hereinafter defined) payable during the Renewal Period
shall be fixed in accordance with the provisions of Section 2.1(a) and Section 2.1
(b) below.

 

(c)                                  The
Tenant shall have the right to terminate this Lease at any time during the Term
by giving the Landlord at least one hundred eighty (180) days’ prior written
notice of such termination, which notice shall specify the termination
date.  In the event of such termination,
all Basic Rent and Additional Rent shall be apportioned as of the termination
date set forth in Tenant’s termination notice.

 

(d)                                 The
portions of the Plant being used by Tenant shall not be increased without
Landlord’s prior written consent, which consent shall not be unreasonably
withheld.  Tenant shall have the right to
vacate any portion of the Premises pursuant to the terms of this

 

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Lease.  The parties hereto
acknowledge and agree to communicate and coordinate any contemplated increase
or decrease in the portions of the Plant included within the Premises and to
promptly enter into written amendments to this Lease to reflect any increase or
decrease and reflect any necessary reallocations of the appropriate costs.

 

ARTICLE 2

 

Basic Rent - Additional Rent

 

Section 2.1                                      (a)  The Tenant shall pay to the Landlord during
the Initial Term an annual basic rent (the “Basic Rent”) equal to One
Dollar per annum, which Basic Rent shall be payable in advance on January 2
of each year during the Initial Term.  If
the Term is extended pursuant to Section 1.2(b), the Basic Rent for the
first Renewal Period shall be equal to One Dollar per annum, which Basic Rent
shall be payable in advance on January 2 of each year during the first
Renewal Period.

 

(b)                                 If
the Term is extended from time to time for any Renewal Period after the first
Renewal Period, as provided in Section 1.2 (b) above, the Basic Rent for
such Renewal Period (the “Renewal Rent”) shall be determined as provided
in this Section 2.1(b).  Upon
receipt of Tenant’s Renewal Notice, the Landlord and the Tenant shall attempt
for thirty (30) days to agree upon the Renewal Rent, which the parties agree
shall be the fair market rental value of the Demised Premises, taking into
account the Personal Property, the obligation of the Tenant to pay Taxes
(hereinafter defined) and other expenses allocated to the Demised Premises as
provided elsewhere in this Lease.  Should
the Landlord and the Tenant be unable to agree on the Renewal Rent within such
thirty (30) day period, the Tenant shall, at its own cost, appoint a
disinterested real estate broker licensed in the State of Pennsylvania involved
in the rental of similar space in the area in which the Plant is located for at
least five (5) years (a “Qualified Broker”) to serve as an appraiser on
its behalf and shall give notice thereof to the Landlord within sixty (60) days
after the Landlord’s receipt of the Tenant’s Renewal Notice.  The Landlord shall, at its own cost, within
thirty (30) days after receiving said notice appoint a second Qualified Broker
to serve as appraiser on its behalf and shall give written notice thereof to
the Tenant.  The Qualified Brokers shall
independently, within thirty (30) days after their appointment, render in
writing to the Landlord and the Tenant their independent appraisals of what the
annual fair market rental value of the Demised Premises would be for the
applicable Renewal Period.  If Landlord
and the Tenant or the two (2) Qualified Brokers cannot, within thirty (30) days
thereafter, agree on what the annual fair market rental value of the Demised
Premises would be for the applicable Renewal Period, the two (2) Qualified
Brokers theretofore appointed shall appoint a third Qualified Broker.  The third Qualified Broker shall then
promptly select the amount set forth in one or the other of the two appraisals
theretofore prepared which such Broker believes most closely approximates the
annual fair market value of the Demised Premises, and same shall be the Renewal
Rent for the applicable Renewal Period. 
The determination of the Qualified Broker(s) shall conclusively be and
be deemed to be the Renewal Rent and shall be binding on Landlord and
Tenant.  In rendering their determination,
the Qualified Brokers shall have no power to modify or in any manner alter or
reform any of the provisions of this Lease. 
The cost of the third Qualified Broker shall be shared equally by

 

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Landlord and Tenant.  If, for any
reason whatsoever, the Renewal Rent has not been determined on or prior to the
commencement of the applicable Renewal Period, Tenant shall pay to the Landlord
on account of Basic Rent (subject to retroactive adjustment back to the
beginning of the applicable Renewal Period once the Basic Rent is determined)
one hundred ten (110%) percent of the Basic Rent payable by the Tenant
immediately prior to the commencement of the applicable Renewal Period.

 

Section 2.2                                      (a)  In addition to the Basic Rent, the Tenant
shall pay and discharge, as additional rent (the “Additional Rent”), any
and all other amounts, liabilities, charges, obligations and other payments
which the Tenant, under any of the provisions of this Lease, is now or
hereafter obligated to pay or discharge, as more particularly described in this
Lease.  In the event of any failure on
the part of the Tenant to pay all or any part of the Additional Rent when due,
the Landlord shall have the same rights and remedies provided for herein or by
applicable law or otherwise in the case of the nonpayment of the Basic Rent.

 

(b)                                 It
is intended that the Basic Rent be net to the Landlord and that the Tenant
shall pay, as Additional Rent, all Taxes, utilities, and other costs and
expenses relating to the Demised Premises (other than those environmental costs
which Landlord shall pay pursuant to Sections 6.3 and 6.4 of the Contribution
Agreement) and an equitable portion of such Taxes, utilities, insurance and
other costs and expenses relating to the Licensed Premises, all as reasonably
determined by the Landlord and the Tenant pursuant to the provisions of this
Lease, including, without limitation, Articles 4, 5, 6, 8 and 24 hereof, and
taking into account the total area occupied and their respective requirements
based on usage.  The Landlord and the
Tenant have agreed upon a preliminary allocation of certain of these items as
set forth in Exhibit “B” attached hereto and made a part hereof (the “Initial
Expense Allocations”), and as referenced below in Section 24.4.

 

Section 2.3                                      During
the term of this Lease, if the Tenant shall fail to pay any installment of the
Basic Rent or any of the Additional Rent due or payable hereunder or in
connection herewith, within 10 days after Landlord notifies Tenant in writing
that any such amount is due or payable, in addition to all of the other rights
and remedies of the Landlord hereunder, the Tenant shall pay to the Landlord,
in addition to all other payments required to be made under this Lease, the
amount not paid when due, together with interest thereon, at a rate (the “Interest
Rate”) equal to the lower of (i) 3% over the prime rate publicly announced
from time to time by Morgan Guaranty Trust Company of New York and (ii) the
highest rate permitted by applicable law, from the due date until the date of
payment.  All amounts payable to the
Landlord pursuant to this Section 2.3 shall constitute Additional Rent.

 

ARTICLE 3

 

Condition of Premises and Personal Property;
Landlord’s Work

 

Section 3.1                                      Except
as otherwise provided in Section 3.2 below, Tenant acknowledges that it
inspected the Original Demised Premises, the Designated Original Licensed
Premises, the Licensed Premises and the Original Personal Property prior to the
Commencement

 

6

 

Date and agreed to take the same “as is”, where is, and with all
faults, and Landlord has no obligation to prepare the foregoing for Tenant’s
occupancy.  In addition, Tenant has
inspected the Additional Premises and the New Personal Property, and agrees to
take the same “as is”, where is, and with all faults, including but not limited
to, the conditions noted in the engineering reports identified in Section 8.5
hereof, and Landlord shall have no obligation to prepare the Additional
Premises or the New Personal Property for Tenant’s occupancy or use.

 

Section 3.2                                      Landlord
agrees to perform the following work (“Landlord’s Work”):

 

(a)                                  the
Phase 1 Improvements (as defined in the Contribution Agreement), to the extent
the same affect or relate to the Demised Premises;

 

(b)                                 the
work (the “Environmental Work”) described in the Environmental
Compliance Plan (as defined in the Contribution Agreement), to the extent the
same affects or relates to the Demised Premises; and

 

(c)                                  the
removal of furnace No. 9 from Building 12 (the “Furnace Removal Work”).

 

Section 3.3                                      Landlord
shall use its reasonable efforts to complete Landlord’s Work in a timely manner
assuming reasonable cooperation from Tenant (subject to Unavoidable Delays
(hereinafter defined)); provided, however that Landlord shall have no
obligation to employ contractors or labor at so-called overtime or other
premium pay rates or to incur any other overtime costs or expenses
whatsoever.  Landlord’s Work shall be
performed on a timely basis and in such a manner so as to minimize interference
with the operation of the Business by the Tenant.  Landlord shall have the right to enter the
Demised Premises subsequent to the Commencement Date to perform Landlord’s Work
and the payment of Basic Rent and Additional Rent shall not be affected
thereby; provided, that in all such cases Landlord shall provide notice to
Tenant, shall coordinate all required work with Tenant and Landlord’s
activities shall not unreasonably interfere with Tenant’s business operations.

 

Section 3.4                                      The
cost of performing the Phase I Improvements and the Environmental Work shall be
borne by the party or parties responsible therefor under Sections 6.3 and 6.4
of the Contribution Agreement.  The cost
of performing the Furnace Removal Work shall be borne by Landlord.

 

Section 3.5                                      The
Tenant shall comply with the operations and maintenance plan for the Pits (as
defined in the Contribution Agreement) as set forth in Schedule 6.3(a) to
the Contribution Agreement and for the Personal Property.

 

Section 3.6                                      Any
work performed after the date hereof and otherwise deemed to be reasonably
necessary by either party in order to further segregate the Demised Premises
from the rest of the Plant, to segregate certain parking lots for Tenant’s use
from the parking lots for the Plant, and to secure and provide for the
independent use and operation of the same, including

 

7

 

without limitation, installing or causing to be installed, if possible,
separate metering devices for utilities serving the Demised Premises and the
Plant, shall, in the absence of a mutually written agreement to the contrary,
be borne by the party desiring to have the work performed.

 

Section 3.7                                      Tenant
and Landlord agree to arrange for the replacement of the sprinkler heads
throughout the Plant as recommended in the November 30, 1998, report
prepared by Global Risk Consulting Corp. 
The cost of performing the work shall be allocated between Tenant and
Landlord based on the location of the sprinkler heads actually replaced with
Tenant being responsible for replacements within the Demised Premises and
Landlord being responsible for replacements in areas of the Plant not included
within the Demised Premises.

 

Section 3.8                                      Except
as otherwise set forth above, Landlord shall not have any obligation hereunder
to remove any machinery and equipment owned by Landlord from areas of the Plant
included within the Demised Premises now or in the future except to the extent
that such removal is required by law or such machinery and equipment presents
unreasonable health and/or safety issues arising from or attributable to the
materials contained therein. 
Notwithstanding the foregoing, the parties agree that Landlord shall
have six months from the date hereof to dispose of surplus equipment owned by
Landlord currently located within the Demised Premises.  Any such equipment not removed during that
period may be removed and disposed of by Tenant on an “as is” where is basis at
Tenant’s sole costs and expense with Tenant retaining any residual value
realized on the sale or disposal.  In the
event that Tenant and Landlord subsequently desire to include additional
portions of the Plant in the Demised Premises and notifies Landlord of its
desire to have additional equipment located within those areas removed,
Landlord shall have six months thereafter to dispose of such equipment and any
such equipment not removed during that period may be removed and disposed of by
Tenant on an “as is” where is basis at Tenant’s sole costs and expense with
Tenant retaining any residual value realized on the sale or disposal.

 

ARTICLE 4

 

Payment of Taxes

 

Section 4.1                                      Subject
to the provisions of Section 4.2 and Article 24 below, Tenant shall
pay (prior to the addition or imposition of any fine, penalty, interest, cost
or expense in respect of the nonpayment thereof, if applicable), all real
estate taxes, personal property taxes, occupancy taxes, assessments, water and
sewer rents and charges, vault charges, license and permit fees and other
governmental levies and charges, of any kind or nature (collectively, “Taxes”),
which are assessed, levied, confirmed, imposed or which may become a lien upon
all or any portion of the Demised Premises, or shall become payable, during and
with respect to the Term; provided, that any Taxes relating to a fiscal period
of the taxing or imposing authority, a part of which period is included in a
period of time before the Commencement Date or after the Expiration Date, shall
(whether or not such Taxes shall be assessed, levied, confirmed, imposed or
become a lien upon the Demised Premises or the Personal Property, or shall
become payable, during the Term) be adjusted between the Landlord and the
Tenant as of the Commencement Date or as of the Expiration Date, as
applicable.  The Tenant, on or before the
date any installment of Taxes shall become delinquent, shall furnish the
Landlord with evidence of

 

8

 

payment of such Taxes, in form reasonably satisfactory to the
Landlord.  Tenant shall be responsible
for any fine, penalty, interest, cost or expense imposed upon the Demised
Premises in respect of the nonpayment or late payment of Taxes.

 

Section 4.2                                      In
the event that any Taxes are billed pursuant to a tax or other billing scheme
that incorporates property owned by the Landlord other than the Demised
Premises and the Personal Property, then, notwithstanding the other provisions
of this Article 4, all such Taxes respecting the Demised Premises and/or
the Personal Property shall be paid by the Landlord, and the Landlord shall
thereafter bill the Tenant for the Tenant’s pro rata share of such Taxes as
shall be reasonably determined by the Landlord and the Tenant.  In addition to the payment of Taxes
attributable to the Demised Premises and the Personal Property, the Tenant shall
pay a pro rata share of Taxes attributable to the Licensed Premises.  The determination of Tenant’s pro rata share
of Taxes shall be made by the Landlord and the Tenant in accordance with Article 24
below and as set forth on Exhibit “B” attached hereto.  All amounts payable by the Tenant under this Section 4.2
shall be treated as Additional Rent hereunder and shall be due and payable
thirty (30) days after delivery of such bill to the Tenant and otherwise in
accordance with the terms of this Lease.

 

Section 4.3                                      Nothing
in this Lease shall require the Tenant to pay any franchise, corporate, estate,
inheritance, succession, capital levy, income, profits, revenue or transfer tax
imposed upon the Landlord, nor shall any tax, assessment, charge or levy of the
character above in this Section 4.3 be deemed to constitute Taxes, except
if such taxes are customarily payable by the Tenant in substitution of any item
of Taxes.

 

ARTICLE 5

 

Insurance

 

Section 5.1                                      At
all times during the term of this Lease the Tenant shall maintain workers’
compensation insurance in the amount required by applicable law and employer’s
liability insurance to a limit of not less than $1,000,000; and keep the
Demised Premises and the Personal Property insured against:

 

(1)  loss or damage by fire, and
such other risks as may be included in the standard form of extended coverage
insurance policy in an amount not less than 100% of the replacement value of
the Demised Premises and the Personal Property (as reasonably determined by
Landlord and communicated to Tenant on an annual basis or as otherwise
necessary to reflect changes in the Demised Premises and/or Personal Property),
with reasonable deductibles not exceeding $100,000; and further provided that
the amount of such insurance is at all times sufficiently large and the amount
of such deductibles are sufficiently small, to prevent the Landlord from
becoming a co-insurer within the terms of the applicable policies;

 

(2)  loss or damage by explosion
of high pressure steam boilers, air conditioning equipment, pressure vessels,
motors or similar apparatus, now or hereafter installed in the Demised
Premises, in an amount of not less than 100% of the replacement value of the
Demised

 

9

 

Premises and the Personal Property (as reasonably determined by
Landlord and communicated to Tenant on an annual basis or as otherwise
necessary to reflect changes in the Demised Premises and/or Personal Property);
and

 

(3)  such other insurance and
increased policy limits with respect to the Demised Premises or the Personal
Property as may be reasonably required from time to time by the Landlord.

 

Section 5.2                                      The
Tenant shall also maintain a policy of Commercial General Liability Insurance
naming the Tenant as insured and the Landlord as additional insured against
claims by third parties arising from the Tenant’s use and occupancy of the
Premises and the Personal Property.  Such
insurance shall provide amounts of insurance of not less than $5,000,000 per
occurrence for bodily injury including death and for property damage.

 

Section 5.3                                      All
insurance provided to be maintained under this Lease shall be effected under
valid enforceable policies issued by insurers of recognized responsibility,
having a Best’s rating of not less than A/VIII. 
Upon the execution of this Lease, certificates thereof shall be
delivered to the Landlord and, if requested by the Landlord, certificates of
such insurance shall be delivered to the holder of any Fee Mortgage (as
hereinafter defined).  Not later than
fifteen (15) days after the expiration date of any policy, the original renewal
policy for such insurance or certificate thereof shall be delivered to the
Landlord.  All such policies shall
contain agreements by the insurers that such policies shall not be canceled
except upon at least 30 days’ prior written notice to each named insured,
additional insured and loss payee and the coverage afforded thereby shall not
be affected by the performance of any work by the Tenant, or its agents or contractors
on its behalf in or about the Premises. 
All insurance shall provide that Tenant’s insurance is primary and that
any other insurance which Landlord may have shall be excess of and not
contributory.

 

Section 5.4                                      All
policies of insurance required under Section 5.1 above shall name the
Landlord as an additional insured and the holder of any Fee Mortgage as loss
payee with respect to the Demised Premises and the Improvements (hereinafter
defined), as their respective interests may appear, pursuant to a standard
mortgagee clause or endorsement.  For
purposes of this Lease, the term “Improvements” shall mean alterations,
installations, improvements, additions or other physical changes in or about
the Demised Premises.

 

Section 5.5                                      Tenant
shall procure an appropriate clause in, or endorsement on, any fire or extended
coverage insurance covering the Demised Premises, Personal Property and
fixtures and equipment located thereon or therein, pursuant to which the
insurance companies waive subrogation or consent to a waiver of right of
recovery and having obtained such clauses or endorsements of waiver of
subrogation or consent to a waiver of right of recovery, will not make any
claim against or seek to recover from the other for any loss or damage to its
property or the property or others resulting from fire or other hazards covered
by such fire and extended coverage insurance, provided, however, that release,
discharge, exoneration and covenant not to sue herein contained shall be
limited by and be in coexistence with the terms and provisions of the waiver of
subrogation clause or endorsements or clauses or endorsements consenting to a

 

10

 

waiver of right to recovery.  If
the payment of an additional premium is required for the inclusion of such
waiver of subrogation provision, Tenant shall advise Landlord of the amount of
any such additional premiums and Landlord at its own election may, but shall
not be obligated to, pay the same.  If
Landlord shall not elect to pay such additional premium, Tenant shall not be
required to obtain such waiver of subrogation provision.  If Tenant shall be unable to obtain the
inclusion of such clause even with the payment of an additional premium, then
Tenant shall attempt to name Landlord as an additional insured (but not a loss
payee) under the policy.  If the payment
of an additional premium is required for naming Landlord as an additional
insured (but not a loss payee), Tenant shall advise Landlord of the amount of
any such additional premium and Landlord at its own election may, but shall not
be obligated to, pay the same.  If
Landlord shall not elect to pay such additional premium or if it shall not be
possible to have Landlord named as an additional insured (but not loss payee),
even with the payment of an additional premium, then (in either event) Tenant
shall so notify Landlord and Tenant shall not have the obligation to name
Landlord as an additional insured. 
Tenant acknowledges that Landlord shall not carry insurance on and shall
not be responsible for damage to any alterations performed by Tenant or
Tenant’s personal property, and that Landlord shall not carry insurance
against, or be responsible for any loss suffered by Tenant due to, interruption
of Tenant’s business.

 

ARTICLE 6

 

Utilities and Other Property-Related Services

 

Section 6.1                                      The
Tenant shall, prior to delinquency, pay or cause to be paid all charges for
heat, cooling, air, steam, water, sewer, gas, electricity, light, telephone, or
any other utility service rendered or supplied to the Demised Premises
throughout the Term (if and to the extent the same are billed directly to the
Tenant), and shall indemnify the Landlord and hold the Landlord harmless
against any liability or damages on such account.

 

Section 6.2                                      In
the event any utilities or other services payable pursuant to this Article 6
are billed pursuant to a billing scheme that incorporates property other than
the Demised Premises, then, notwithstanding the other provisions of this Article 6,
such utilities or other property-related services respecting the Demised
Premises shall be paid by Tenant, and the Tenant shall thereafter bill the
Landlord for the Landlord’s proportionate share of such utilities or other
property-related services, as reasonably determined by the parties taking into
account the total area occupied and their respective requirements based on
usage. In addition to the payment of utilities and services attributable to the
Demised Premises, the Tenant shall pay a pro rata share of utilities and
services attributable to the Licensed Premises. 
The determination of Tenant’s proportionate share of utilities and
services shall be made by the Landlord and the Tenant in accordance with Article 24
below and Exhibit “B” attached hereto taking into account the total area
occupied and their respective requirements based on usage.  Any amounts payable by the Tenant under this Section 6.2
shall be treated as Additional Rent hereunder and shall be due and payable on
the thirtieth (30th) day following delivery of any such bill to the Tenant.

 

Section 6.3                                      The
Landlord and the Tenant shall cooperate with each other to the extent
reasonably necessary to enable the Tenant to obtain utility and other services
at the

 

11

 

Demised Premises, which may include sharing such utilities and
services; provided, however, that the Landlord shall not be required to furnish
any services or facilities to the Demised Premises, nor shall the Landlord be
responsible for any interruption of services to the Demised Premises unless
caused by the gross negligence or wilful misconduct of the Landlord or its
agents, servants or employees.

 

ARTICLE 7

 

Changes and Alterations - Surrender of

Demised Premises and Personal Property

 

Section 7.1                                      The
Tenant shall not make any alterations, decorations, installations, additions,
improvements, repairs, replacements or removals (collectively, “Alterations”)
to the Demised Premises, to any of the Improvements or any part thereof or any
equipment or appurtenance thereto, unless the Tenant shall comply with the
following requirements:

 

(a) 
Any Alteration shall be made promptly in a first class, workerlike
manner, in compliance with all applicable legal requirements (“Requirements”);

 

(b)  No
Alteration shall be made which would substantially change the general character
or use of the Demised Premises, any of the Improvements or any part thereof or
any equipment or appurtenance thereto;

 

(c) 
Such Alteration shall be effected under the supervision of the registered
or licensed architect reasonably satisfactory to the Landlord (the “Architect”);

 

(d) 
Prior to the commencement of any proposed structural Alteration, the
Tenant shall furnish the Landlord complete plans and specifications for the
proposed Alteration prepared by the Architect, which plans and specifications
shall meet with the approval of the Landlord, which, except with respect to
Alterations to the roof, the foundations or the exterior walls of any of the
buildings comprising the Demised Premises, shall not be unreasonably withheld,
together with the approval thereof by any governmental board, bureau or
department then exercising jurisdiction, which plans and specifications shall
be and become the property of the Landlord in the event that for any reason
this Lease shall be terminated or shall expire;

 

(e) 
If, as a result of any Alterations performed by or on behalf of Tenant,
any alterations, installations, improvements additions or other physical
changes are required to be performed or made to any portion of the Plant other
than the Demised Premises in order to comply with any Requirement(s), Landlord,
at Tenant’s sole cost and expense, may perform or make such alterations,
installations, improvements, additions or other physical changes and take such
actions as Landlord shall deem reasonably necessary;

 

12

 

(f) 
If, as a result of any Alteration by or on behalf of the Tenant, any
asbestos containing material (“ACM”) is required to be removed and disposed
of, Tenant shall pay for all such removal and disposal costs, including air
monitoring and health and safety costs associated with such removal, and shall
remove and dispose of, or cause to be removed and disposed of, such ACM in
accordance with all applicable Environmental Laws;

 

(g) 
The Demised Premises and the Personal Property shall at all time be free
of liens for labor and materials supplied or claimed to have been supplied in
connection with any Alteration and, if any mechanic’s lien is filed against the
Premises, the Plant or the Land (hereinafter defined) for work claimed to have
been done for, or materials claimed to have been furnished to, Tenant, such
lien shall be discharged by Tenant within thirty (30) days after Tenant shall
have received notice thereof, at Tenant’s expense, by payment or filing the
bond required by law or otherwise;

 

(h) 
The Tenant shall prosecute and complete, or cause to be prosecuted and
completed, any Alteration in compliance with the approved plans and
specifications and with all applicable laws and regulations and all insurance
policies and all orders and requirements of any insurance underwriting or other
similar body covering or applicable to the Demised Premises.  No Alteration shall be undertaken until the
Tenant shall have procured and paid for, so far as they may be required, from
time to time, all municipal and other governmental permits and authorizations
of the various municipal departments and governmental subdivisions having
jurisdiction over the Demised Premises or the business or activities conducted
thereon, and the Landlord agrees, at the sole cost and expense of the Tenant,
to join in the application for such permits or authorizations whenever such
action is necessary (so long as such joining does not impose any personal
liability upon the Landlord in respect of any such Alteration).  No plans and/or specifications required to be
filed by the Tenant with any governmental authority shall be filed or submitted
unless such plans and/or specifications are based upon and consistent with the
plans and specifications approved by the Landlord.  The Landlord’s approval of any plans and
specifications may be withdrawn if the Tenant fails to obtain any required
governmental approval or if the Tenant otherwise fails to fulfill any
obligation contained in this Article 7;

 

(i)  At
all times when an Alteration is in process, the Tenant, at the Tenant’s sole
cost and expense, shall obtain and keep in full force and effect, or cause to
be obtained and kept in full force and effect: (1) workers’ compensation
insurance covering all persons employed in connection with such Alteration and
with respect to death or personal injury or bodily injury claims which could be
asserted against the Landlord, the Tenant or the Demised Premises; (2) general
liability and property damage insurance (which insurance may be effected by
endorsement, if obtainable, on the insurance required to be carried pursuant to
this Lease and shall contain a completed operations endorsement); and (3) builder’s
risk insurance, completed value form, covering all physical loss, in an amount
reasonably satisfactory to the Landlord. 
The Landlord and the holder of any Fee Mortgage or other party which the
Landlord may

 

13

 

designate shall be named in all such insurance.  The Tenant shall deliver to the Landlord
policies or certificates evidencing such insurance, and evidence of the payment
of the premiums therefor, prior to the commencement of any Alteration.  Such insurance shall be in addition to the
insurance provided for in Article 5 and shall otherwise be subject to the
provisions of Article 5;

 

(j) 
Promptly following the completion of any structural Alteration, the
Tenant shall deliver to the Landlord two complete sets of “as-built” plans and
specifications therefor, certified to by the Architect as being accurate and
complete; and

 

(k) 
Upon completion of any Alteration, the Tenant shall obtain and deliver
to the Landlord originals of all certificates of occupancy (or equivalents), if
any, or amendments thereof and of all certificates from governmental
authorities, the Board of Fire Underwriters and such other certificates as are
required or customarily obtained from any bureau or department having
jurisdiction.

 

Section 7.2                                      On
the Expiration Date, the Tenant shall surrender and deliver, broom clean, to
the possession and use of the Landlord, in substantially similar order,
condition and repair as upon the Commencement Date with respect to the Original
Demised Premises and the Original Personal Property, and with respect to the
Designated Original Licensed Premises, the Additional Premises and the New
Personal Property as upon the date Tenant first occupied or began use of the
same, in each instance reasonable wear and tear and casualty for which the
Tenant is not responsible for hereunder excepted, and free and clear of all
tenancies and occupancies and free and clear of all liens and encumbrances
hereafter affecting the Demised Premises or the Personal Property.  All equipment, furniture and furnishings
installed in, or placed upon, the Demised Premises by, or on behalf of, Tenant
which Tenant, at Tenant’s option, did not remove on or prior to the Expiration
Date shall become the property of the Landlord. 
Tenant may not remove any fixtures or Alterations without the prior
written consent of the Landlord, except to replace them with items of greater
or equal value.  Tenant shall restore and
repair, in a good and workerlike manner, to good condition any damage to the
Premises or the Plant caused by such removal.

 

Section 7.3                                      The
provisions of this Article 7 shall survive the expiration or earlier
termination of this Lease.

 

ARTICLE 8

 

Repairs and Maintenance

 

Section 8.1                                      The
Tenant, at its sole cost and expense, shall take good care of and maintain the
Premises and the Personal Property, including following the maintenance
schedules and procedures identified on Schedule 8.1 hereto and Schedule 6.3(a)
to the Contribution Agreement and such other maintenance schedules and
procedures as shall be mutually agreed upon by the parties hereto, and shall
keep the Premises and the Personal Property in good order, condition and repair
throughout the Term and shall, in a good and

 

14

 

workerlike manner, make all repairs therein and thereon, interior and
exterior, structural and non-structural, necessary to keep the same in good
order and condition, whether or not necessitated by obsolescence or wear and
tear.

 

Section 8.2                                      The
Tenant shall also be responsible for making all structural repairs and
replacements relating to the roof, the foundations or the exterior walls of any
of the buildings comprising the Demised Premises; provided, however that
Landlord shall be responsible for making all structural repairs and
replacements relating to the roof, the foundations or the exterior walls of any
of the buildings comprising the Original Demised Premises and Designated
Original Licensed Premises other than (a) those structural repairs made in connection
with routine and ordinary maintenance of the Original Demised Premises and
Designated Original Licensed Premises, and (b) those repairs made in connection
with damage or injury caused by or resulting from Tenant’s Alterations, or from
carelessness, omission, neglect or improper conduct of Tenant, Tenant’s agents,
employees, invitees or licensees. 
Notwithstanding the foregoing, Landlord shall not have any obligation
under the preceding sentence unless and until such time as the reasonably
incurred costs and expenses incurred by Tenant for such repairs as would
otherwise be Landlord’s responsibility under the preceding sentence exceed
Seven Hundred Fifty Thousand Dollars ($750,000) (the “Basket”) and
Tenant has presented invoices and other documentation reasonably requested by
Landlord in connection with the same. 
Landlord shall not have any obligation to reimburse Tenant for any costs
and expenses included within the Basket. 
Tenant shall give Landlord prompt notice of any defective condition and the
party responsible for such repair hereunder shall make all such repairs as soon
as practicable.

 

Section 8.3                                      The
Tenant shall, at the Tenant’s cost and expense, cause to be kept clean and free
from dirt, snow, ice, rubbish, obstructions and encumbrances, the sidewalks,
passageways, grounds, parking areas, walks, alleys and curbs within the Plant
and the Landlord shall pay to Tenant, a pro rata share of the cost thereof
taking into account the total area occupied and their respective requirements
based on usage, as reasonably determined by the Landlord and the Tenant in
accordance with Article 24 hereof and Exhibit “B” attached hereto.

 

Section 8.4                                      The
Tenant shall be responsible for repairing and maintaining the Personal Property
in accordance with the Landlord’s specifications as provided to the Tenant from
time to time.

 

Section 8.5                                      Tenant
agrees to perform the work necessary in a manner determined by Tenant, but in
accordance with the terms of Article 7, to address the conditions noted
within the Premises in (i) the Engineering Report of Roof and Wall System for
Accuride/Kaiser Building #12 dated March 12, 1999, prepared by Simmons and
Associates, Inc. and (ii) the Engineering Report of Erie Facility Buildings for
Accuride Corporation dated March 12, 1999, prepared by Simmons and
Associates, Inc.  Such work shall be
performed on a timely basis as reasonably determined by Tenant in accordance
with the terms of this Lease and, except as otherwise set forth herein, Tenant
shall bear all costs and expenses associated with such work.  Reasonable costs and expenses incurred by
Tenant to make any structural repairs and replacements to address conditions
noted in such reports relating to the roof, the foundations or

 

15

 

the exterior walls of any of the buildings comprising the Original
Demised Premises and Designated Original Licensed Premises other than (a) those
structural repairs made in connection with routine and ordinary maintenance of
the Original Demised Premises and Designated Original Licensed Premises, and
(b) those repairs made in connection with damage or injury caused by or
resulting from Tenant’s Alterations, or from carelessness, omission, neglect or
improper conduct of Tenant, Tenant’s agents, employees, invitees or licensees,
shall, subject to the terms set forth above, be included within the Basket.

 

Section 8.6                                      Notwithstanding
any provision contained herein to the contrary, Landlord shall not have any
obligations to make any repairs to any portion of the Plant not included within
the Premises except those repairs reasonably necessary to prevent unreasonable
interference with Tenant’s operations.

 

ARTICLE 9

 

Compliance with Orders, Ordinances, Etc.

 

Section 9.1                                      Except
as otherwise expressly set forth in Section 6.3 of the Contribution
Agreement, during the Term, the Tenant shall comply, at its sole cost and
expense, with all applicable laws and regulations, and with all requirements of
all insurance policies and insurers under the policies required hereunder which
may be applicable to the Demised Premises or the Personal Property,
irrespective of the nature of the work required to be performed and
irrespective of whether or not such work shall be required on account of any
particular manner of use relating to or affecting the Demised Premises or the
Personal Property.

 

Section 9.2                                      Notwithstanding
the foregoing, except as otherwise set forth in any other agreements between
the parties, Landlord hereby releases Tenant from any liability for compliance
with all applicable laws and regulations and with all Insurance Requirements
existing on the Commencement Date with respect to the Original Demised Premises
and the Original Personal Property and, with respect to the Additional
Premises, the Designated Original Licensed Premises and the New Personal
Property, the date upon which Tenant first occupied or assumed exclusive use of
the same (“Pre-Existing Laws”); provided, however, that Tenant shall
comply with those Pre-Existing Laws applicable to the making of any Alteration
by Tenant or the result of the making thereof. 
From and after the dates set forth above, Tenant shall be liable for
compliance with new or revised laws, regulations and Insurance Requirements to
the extent set forth above.

 

ARTICLE 10

 

Mechanic’s Liens

 

Section 10.1                                The
Tenant shall not suffer or permit any mechanics’ liens to be filed against the
Demised Premises by reason of work, labor, services or materials supplied or
claimed to have been supplied to the Tenant. 
If any such mechanics’ lien shall at any time be filed against the
Demised Premises, the Tenant shall, within 30 days of the filing thereof, cause

 

16

 

such lien to be discharged of record by payment, deposit, bond, order
of a court of competent jurisdiction or otherwise.

 

ARTICLE 11

 

Inspection of Premises by the Landlord

 

Section 11.1                                The
Landlord and its authorized representatives shall have the right to enter the
Demised Premises at all reasonable times, on reasonable prior notice, for the
purpose of (a) inspecting or surveying the Demised Premises and the Personal
Property, (b) making any necessary repairs or repairs required or permitted
hereby to the Demised Premises and the Personal Property, (c) gaining access
to, and entering, the Prohibited Areas, (d) performing any other act permitted
under this Lease, (e) surveying, investigating and remediating any
environmental conditions that may exist, and (f) arranging for the sale or
removal of surplus equipment. Notwithstanding the foregoing, Landlord shall use
its reasonable best efforts to coordinate all required work with Tenant, and
Landlord’s activities shall not unreasonably interfere with Tenant’s business
or operations.

 

ARTICLE 12

 

Right to Perform Covenants of the Tenant

 

Section 12.1                                If
the Tenant shall at any time fail to make any payment or perform any other act
on its part to be made or performed under this Lease, or diligently proceed to
perform any such act, the Landlord, after not less than fifteen (15) days’
notice to the Tenant (except in case of emergency, in which event no notice
need be given), may, but shall not be obligated to, make such payment or
perform such other act.  All amounts so
paid by the Landlord in connection therewith shall constitute Additional Rent
hereunder and shall be payable to the Landlord on the first day of the next
succeeding month, together with interest thereon at the Interest Rate from the
date the Landlord incurred such amount until the date of payment by the Tenant.

 

ARTICLE 13

 

Damage or Destruction

 

Section 13.1                                If
the Demised Premises or the Personal Property or any part thereof are damaged
or destroyed in whole or in part by any casualty, the Tenant shall give the
Landlord immediate notice thereof, and the Tenant shall, at its own cost and
expense, whether or not such damage or destruction shall have been insured and
whether or not insurance proceeds, if any, shall be sufficient for such
purpose, promptly repair, alter, restore, replace and rebuild the Demised
Premises or the Personal Property (each, a “Restoration”) at least to
the extent of the value and as nearly as practicable, to the character,
quality, scope and size of the Demised Premises or the Personal Property
existing immediately prior to such occurrence subject to and in accordance with
the terms and provisions of Section 7.1 hereof.  Landlord shall in no event be

 

17

 

called upon to do or perform any Restoration, nor to pay for any of the
costs or expenses thereof.  Notwithstanding
the provisions of the preceding sentence, if the Demised Premises are damaged
and destroyed to the extent that they cannot reasonably be used for the conduct
of the Business, and if the reasonably estimated time to complete the
Restoration exceeds 180 days, the Tenant may terminate this Lease by notice to
Landlord not later than thirty (30) days after such damage or destruction,
provided that such termination shall only be effective if the Tenant pays or
causes to be paid to the Landlord an amount equal to the greater of: (a) the
amount of insurance proceeds received by the Tenant; or (b) the reasonably
estimated cost of restoring the Demised Premises at least to the extent of the
value and, as nearly as practicable, to the character, quality, scope and size
the Demised Premises or the Personal Property existing immediately prior to
such occurrence.

 

Section 13.2                                Unless
this Lease is canceled by the Tenant as provided above, this Lease shall not be
affected in any manner by reason of total or partial damage or destruction of
the Premises or any part thereof or by reason of the untenantability of the
Demised Premises or any part thereof, for any reason, and the Tenant,
notwithstanding any law or statute present or future, waives any and all rights
to quit or surrender the Demised Premises or any part thereof.  The Tenant’s obligations hereunder shall
continue as though none of such events had occurred and without abatement,
suspension, diminution or reduction of any kind.  The foregoing notwithstanding, if the Demised
Premises shall be damaged by fire or other casualty during any Renewal Period,
and if Tenant shall give prompt notice thereof to Landlord, the Basic Rent and
any Additional Rent shall be reduced in the proportion by which the area of the
part of the Premises which is not usable by Tenant, as reasonably determined by
Landlord, bears to the total area of the Premises immediately prior to such
casualty until such repairs which are required to be performed by Tenant
(excluding Long Lead Work (as defined below)) shall be substantially
completed.  The Restoration shall be
performed in a workerlike, diligent manner and Tenant shall use its best
efforts to complete the Restoration as expeditiously as possible.  If Tenant shall fail to perform the Restoration
in a diligent and expeditious manner, then the Basic Rent and Additional Rent
shall recommence on the date that the Restoration would have been completed but
for the Tenant’s failure.  For purposes
of this Lease, the term “Long Lead Work” shall mean any item which is
not a stock item and must be specially manufactured, fabricated or installed or
is of such an unusual, delicate or fragile nature that there is a substantial
risk that

 

(i)                                     there
will be a delay in its manufacture, fabrication, delivery or installation, or

 

(ii)                                  after
delivery, such item will need to be reshipped or redelivered or repaired

 

so that in Landlord’s reasonable judgement the item in question cannot
be completed when the standard items are completed even though the item of Long
Lead Work in question is (1) ordered together with the other items required and
(2) installed or performed (after the manufacture or fabrication thereof) in
order and sequence that such Long Lead Work and other items are normally
installed or performed in accordance with good construction practice.  In addition, “Long Lead Work” shall include
any standard item which in accordance with good construction

 

18

 

practice should be completed after the completion of any item of work
in the nature of the items described in the immediately preceding sentence.

 

ARTICLE 14

 

Condemnation

 

Section 14.1                                If
the Demised Premises, or any part thereof, shall be taken in condemnation
proceedings, or by exercise of any right of eminent domain or action of
condemnation, or by deed in lieu of condemnation (any such taking or
conveyance, a “Taking”), the Tenant shall be entitled to just
compensation from any condemnor in accordance with the Pennsylvania Eminent
Domain Code (the “Code”) for the value of the Tenant’s leasehold estate,
with all fixtures and improvements, together with dislocation damages and other
benefits available to tenants from condemnors under Article VI.A of the
Code, including, without limitation, actual damages with reference to personal
property and moving expenses.  The
Landlord shall be entitled to just compensation in accordance with the
provisions of the Code to the value of the leased fee, i.e., the present value
of the rental stream, together with the present value of the Landlord’s
remainder interest in the Demised Premises. 
The Tenant and the holder of any fee mortgage in cooperation with the
Landlord shall have the right to participate in any condemnation or eminent
domain proceedings and be represented by counsel for the purpose of protecting
their respective interests.

 

Section 14.2                                (a)                                  If
at any time during the Term (i) a Taking of all or substantially all of the
Demised Premises shall occur, or (ii) a Taking of less than substantially all
of the Demised Premises shall occur which, nevertheless, in the Tenant’s
reasonable judgment, materially impairs the value or utility to the Tenant of
the Demised Premises or access thereto, such Taking shall be deemed to have
caused this Lease to terminate on the date of the Taking.  In such event, the Basic Rent and all
Additional Rent required to be paid by the Tenant shall be paid up to the date
of the Taking and the Tenant shall, in all other respects, keep, observe or perform
all of the terms, covenants, agreements, provisions, conditions and limitations
of this Lease on the Tenant’s part to be kept, observed or performed, to the
date of the Taking.

 

(b)                                 Notwithstanding
anything to the contrary contained herein, if by reason of the Taking the value
or utility of the Demised Premises is impaired only by reason of a loss of
access or parking in the vicinity of the Demised Premises, then the Landlord
shall use reasonable efforts to provide reasonable alternative means of access
or parking, as applicable, for the Demised Premises; provided, however, if
there are no reasonable alternative means of access or parking, as applicable,
available, then the provisions of Section 14.2(a) shall apply.

 

Section 14.3                                If
there is a partial Taking pursuant to which this Lease is not terminated,
Tenant shall proceed, with reasonable diligence, to perform any necessary
repairs, restorations, alterations or replacements to the Demised Premises, to
the extent there are proceeds of such Taking available.  The proceeds of such Taking shall be made
available to

 

19

 

Tenant for the purpose of undertaking such work, and any of such
proceeds remaining after completion of such work shall be distributed in
accordance with the provisions of the Code.

 

ARTICLE 15

 

Defaults and Remedies; Events of Termination

 

Section 15.1                                The
occurrence of any one or more of the following events shall constitute an
“Event of Default” under this Lease by the Tenant:

 

(a) 
The “abandonment” of the Demised Premises by the Tenant (for purposes of
this Section 15.1(a), the term “abandonment” shall mean that Tenant shall
(i) have vacated the Demised Premises with no intention to return; and (ii) not
be maintaining the Premises in accordance with good business practice).

 

(b) 
The failure by the Tenant to make any payment of Basic Rent, Additional
Rent or any other payment required to be made by the Tenant under this Lease
within ten (10) days after receiving written notice from Landlord that any such
amount is due and payable.

 

(c) 
The failure by the Tenant to observe or perform any of the covenants,
conditions or provisions of this Lease to be observed or performed by the
Tenant, other than described in Section 15.1(b) above, where such failure
shall continue for a period of thirty (30) days after notice thereof by the
Landlord to the Tenant; provided, that if the nature of the Tenant’s default is
such that more than thirty (30) days are reasonably required for its cure, then
there shall not occur an Event of Default hereunder if the Tenant commences
such cure within such thirty (30) day period and thereafter diligently
prosecutes such cure to completion.

 

(d)(i) The making by the Tenant of any
general assignment or general arrangement for the benefit of creditors; (ii)
the filing by or against the Tenant of a petition to have the Tenant adjudged a
bankrupt or a petition for reorganization or arrangement under any law relating
to bankruptcy (unless, in the case of a petition filed against the Tenant, such
petition is stayed or dismissed within 60 days); (iii) the appointment of a
trustee or receiver to take possession of substantially all of the Tenant’s
assets located at the Demised Premises or of the Tenant’s interest in this
Lease, where possession is not restored to the Tenant within sixty (60) days;
or (iv) the attachment, execution or other judicial seizure of substantially
all of the Tenant’s assets located at the Demised Premises or of the Tenant’s
interest in this Lease, where such seizure is not discharged within sixty (60)
days.

 

Section 15.2 
(a)  In the event of any Event of
Default, the Landlord shall have the right, at the Landlord’s option, to elect
to terminate the Tenant’s right to possession of the Demised Premises and the
Personal Property and the Landlord may re-enter, take possession of

 

20

 

the Demised Premises and Personal Property and remove any persons or
property by legal action.

 

(b)  The foregoing remedies shall
not be exclusive but shall be in addition to all other remedies and rights
provided under applicable law, including without limitation, the right to all
compensatory and consequential damages suffered by the Landlord, and election
to pursue one remedy shall not preclude resort to another concurrent remedy.

 

(c)  No action of the Landlord,
other than express written notice of termination pursuant to the provisions of
this Lease, shall terminate this Lease.

 

Section 15.3                                The
Tenant hereby waives the service of notice of intention to re-enter the Demised
Premises or to institute legal proceedings with respect to such re-entry.  The Tenant hereby further waives any and all
rights of redemption granted by or under any present or future applicable laws
in the event of the Tenant being evicted or dispossessed for any cause, or in
the event of the Landlord obtaining possession of the Demised Premises and the
Personal Property, by reason of the violation by the Tenant of any of the
covenants and conditions of this Lease or otherwise.

 

ARTICLE 16

 

Cumulative Remedies - No Waiver

 

Section 16.1                                Subject
to the limitations contained in Section 27.1 below, the specific remedies
to which the Landlord or the Tenant may resort under the terms of this Lease
are cumulative and are not intended to be exclusive of any other remedies or
means of redress to which they may be lawfully entitled in case of any breach
or threatened breach by either of them of any provision of this Lease.  The failure of either party hereunder to
insist in any one or more cases upon the strict performance of any of the
covenants of this Lease, or to exercise any option contained herein, shall not
be construed as a waiver or relinquishment for the future of such covenant or
option.  The receipt by the Landlord of
Basic Rent or Additional Rent with knowledge of the breach of any covenant of
this Lease shall not be deemed a waiver of such breach and no provision of this
Lease shall be deemed to have been waived by the Landlord unless such waiver is
in writing and executed by the Landlord. 
No act or thing done by the Landlord or the Landlord’s agents during the
Term shall be deemed an acceptance of a surrender of the Demised Premises and
no agreement to accept such surrender shall be valid unless in writing executed
by the Landlord.  In addition to the other
remedies in this Lease, the Landlord and the Tenant shall be entitled to
restraint by injunction of the violation, or attempted or threatened violation,
of any of the covenants, conditions or provisions of this Lease or to a decree
compelling performance of any of such covenants, conditions or provisions.

 

21

 

ARTICLE 17

 

Subordination; Fee Mortgages

 

Section 17.1                                Provided
that the holder of any mortgages or deeds of trust (each, a “Fee Mortgage”)
covering the Landlord’s fee interest in the Demised Premises, the Licensed
Premises or any portion thereof shall execute and deliver to Tenant a
non-disturbance and attornment agreement in form and substance reasonably
satisfactory to the Tenant, this Lease shall be subject and subordinate at all
times to the lien of such Fee Mortgage (other than the mortgage set forth in
Item 2 of Schedule 3.4(b) to the Contribution Agreement which shall be
subordinate to the Lease pursuant to a subordination agreement to be entered
into by Landlord and the mortgagor).  The
Tenant will execute and deliver such further instrument or instruments
subordinating this Lease to the lien of any such Fee Mortgage as shall be
desired by the holder thereof.  Tenant
shall not do anything that would constitute a default under any Fee Mortgage of
which Tenant has prior notice, or omit to do anything that Tenant is obligated
to do under the terms of this Lease so as to cause Landlord to be in default
thereunder.  If, in connection with a
financing secured in part by the land on which the Plant stands (the “Land”),
the Plant, or any buildings of the Plant, any lending institution shall request
reasonable modifications of this Lease, Tenant shall not unreasonably withhold
or delay its consent to such modifications.

 

Section 17.2                                On
or prior to the Commencement Date and the date hereof, as applicable, Landlord
shall obtain all necessary consents to the Lease.

 

ARTICLE 18

 

Quiet Enjoyment

 

Section 18.1                                So
long as the Tenant shall not be in default of its obligations under this Lease
beyond any applicable grace periods, the Tenant shall and may peaceably and quietly
hold, occupy and enjoy the Demised Premises, and, on a non-exclusive basis, the
Licensed Premises, during the Term, subject to the terms, conditions and
provisions of this Lease.

 

ARTICLE 19

 

Notices

 

Section 19.1                                All
notices, demands and requests which may or are required to be given by either
party to the other shall be in writing. 
All notices, demands and requests by the Landlord to the Tenant shall be
deemed to have been properly given if served in person by service by a national
overnight courier such as Federal Express, or if sent by United States
registered or certified mail, return receipt requested, postage prepaid,
addressed to the Tenant at its address set forth above, Attention: Richard
Giromini, with a copy to Accuride Corporation, 2315 Adams Lane, Henderson,
Kentucky 42420, Attention: General Counsel, or at such other place as the
Tenant may from time to time designate in a written notice to the
Landlord.  A copy

 

22

 

of each such notice, demand or request shall be sent to Kaiser Aluminum
& Chemical Corporation, 26913 Northwestern Highway, Suite 520, Southfield,
Michigan 48034.  All notices, demands and
requests by the Tenant to the Landlord shall be deemed to have been properly
given if served in person by service by a national overnight courier such as
Federal Express, or sent by United States registered or certified mail, return
receipt requested, postage prepaid, addressed to the Landlord at the address
first above written, Attention: 
President, Engineered Components, or at such other place as the Landlord
may from time to time designate in a written notice to the Tenant.  A copy of each such notice, demand or request
shall be sent to Kaiser Aluminum & Chemical Corporation, 5847 San Felipe,
Suite 2600, Houston, Texas 77057, Attention: 
General Counsel.

 

ARTICLE 20

 

Certificates

 

Section 20.1                                Each
party hereto shall, at any time and from time to time upon not less than 10
days’ prior notice by the other party, execute, acknowledge and deliver to such
other party a statement in writing certifying, if true, that this Lease is
unmodified and in full force and effect (or if there have been modifications
that the Lease is in full force and effect as modified and stating the
modifications) and the dates to which the Basic Rent and other charges have
been paid in advance, and stating whether or not, to the best knowledge of the
signer of such statement, the other party is in default in keeping, observing
or performing any term, covenant, agreement, provision, condition or limitation
contained in this Lease and, if so, specifying each such default.

 

ARTICLE 21

 

Use

 

Section 21.1                                The
Tenant shall use the Premises and the Personal Property solely for the
production of Joint Venture Products (as defined in the Contribution Agreement)
in connection with the conduct of the Business and for no other purpose.  The provisions of this Section 21.1
shall not prohibit any new uses which become part of the Business, provided
that the same: (a) are of the same nature as the current uses of the Demised
Premises and the Personal Property; (b) are permitted under the certificate of
occupancy (or the certificate of occupancy is amended to permit such use); and
(c) are approved by the Landlord, such approval not to be unreasonably withheld
or delayed.  Tenant shall not use, treat,
or dispose of any Hazardous Substances (as defined in the Contribution
Agreement) in connection with the use of the Premises for the production of Joint
Venture Products without first obtaining the prior consent of the Landlord,
which consent shall not be unreasonably withheld or delayed.

 

Section 21.2                                Pursuant
to the Contribution Agreement, the Landlord may have transferred to, or made
available for use by, the Tenant, certain Governmental Authorizations (as
defined in the Contribution Agreement) required for the use and occupancy of,
and conduct of the Business at, the Demised Premises.  The Tenant shall obtain (to the extent not
transferred or

 

23

 

made available to the Tenant as provided above) and thereafter shall
maintain in full force and effect, any permit, approval or license which is
required by any governmental or nongovernmental agency or insurance regulatory
body for the operation and maintenance of the Demised Premises and the use
thereof in connection with the Business (including, without limitation, the
Governmental Authorizations transferred to or made available to the Tenant
pursuant to the Contribution Agreement), and shall promptly furnish the
Landlord with a copy of same.  The Tenant
shall not use or allow the Premises or any part thereof to be used or occupied
for any unlawful purpose.

 

Section 21.3                                In
furtherance and not in limitation of the foregoing, the Tenant’s use of the
Premises and the Personal Property shall at all times be subject to the
Landlord’s reasonable health, safety and operating regulations and guidelines
from time to time which are applicable to the Premises, the Personal Property
and/or the Tenant’s use thereof, to the extent the same have been furnished to
the Tenant by the Landlord.

 

ARTICLE 22

 

Transfer; Assignment and Subletting

 

Section 22.1                                The
Tenant shall not assign, sublet, transfer, sell or otherwise convey the whole
or any part of its interest in this Lease. 
Notwithstanding the foregoing, Tenant may, subject to the limitations
set forth in Section 21.1 hereof, assign or sublet the whole or any part
of its interest in this Lease to any Affiliate of Tenant for such Affiliate’s
use in connection with the Business provided that such Affiliate expressly
assumes the liabilities of the Tenant hereunder.  Notwithstanding such assignment and
assumption, the Tenant shall not be released from liability hereunder without
the consent of the Landlord, which consent shall not be unreasonably withheld
if the assignee has a net worth on the date of the assignment which is
reasonably adequate for the performance by the Tenant of its obligations
hereunder.  Tenant shall notify Landlord
of any such proposed assignment or sublease at least three (3) months prior to
the effective date of such assignment or sublease.

 

Section 22.2.                             Subject
to the rights of the Tenant set forth in the following Section 22.3, the
Landlord may assign or transfer its interest in the Lease or the Premises or
Personal Property at any time during the Term hereof, provided that any
transferee expressly assumes the liabilities of the Landlord hereunder.  Notwithstanding such assignment and
assumption, the Landlord shall not be released from liability hereunder without
the consent of the Tenant, which consent shall not be unreasonably withheld if
the assignee or transferee has a net worth on the date of the assignment which
is reasonably adequate for the performance by the Landlord of its obligations hereunder.  Landlord shall notify Tenant of any such
proposed assignment or transfer at least three (3) months prior to the
effective date of such assignment or transfer. 
The foregoing provisions of this Section 22.2 shall not apply to
the creation of any security interest, mortgage or lien by Landlord on its
interest in the Lease of the Premises or Personal Property in connection with
its existing primary credit facility or any replacement or extension thereof.

 

24

 

Section 22.3                                If
at any time Landlord desires to transfer all of its right, title and interest
in and to the Premises and Personal Property to any person who is not an
Affiliate of Landlord, Landlord shall deliver to Tenant a written notice (the “Offer
Notice”) specifying all of the material terms of the proposed sale (the “Offer”),
including the consideration for which Landlord proposes to sell the Premises
and Personal Property and any copies of any agreement or documents to be
executed or delivered in connection with the proposed sale.  Thereafter, the Tenant shall have the
exclusive right for a period of sixty (60) days after receipt of the Offer
Notice to purchase all, but not less than all, of the Premises and Personal
Property upon the terms and conditions contained in the Offer Notice.

 

Section 22.4                                For
purposes of this Lease, “Affiliate” means, with respect to any person,
any other person directly or indirectly controlling, controlled by or under
common control with, such person. 
Control of any person shall consist of the power to direct the
management and policies of such person whether through the ownership of voting
securities or by contract or otherwise and shall be deemed to exist upon the
ownership of securities entitling the holder thereof to exercise more than 50%
of the voting power in the election of directors (or other similar positions)
of such person.

 

ARTICLE 23

 

Invalidity of Particular Provisions

 

Section 23.1                                If
any term or provision of this Lease or the application thereof to any person or
circumstance shall, to any extent, be invalid or unenforceable, the remainder
of this Lease, or the application of such term or provision to persons or
circumstances other than those as to which it is held invalid or unenforceable,
shall not be affected thereby, and each term and provision of this Lease shall
be valid and be enforced to the fullest extent permitted by law.

 

ARTICLE 24

 

Allocation of Expenses

 

Section 24.1                                The
Tenant and the Landlord agree that (i) all costs and expenses solely
attributable to the Demised Premises, the Personal Property and the use thereof
are to be borne by the Tenant (other than the costs of certain structural
repairs to be borne by the Landlord as provided in Article 8 hereof), (ii)
all costs and expenses solely attributable to the portion of the Plant used and
occupied exclusively by the Landlord or any party other than the Tenant
(collectively, “Landlord’s Premises”) are to be borne by the Landlord,
and (iii) all costs and expenses relating to the Licensed Premises are to be
equitably apportioned between the Tenant and the Landlord.

 

Section 24.2                                The
Landlord and the Tenant shall cooperate with each other to arrange for Taxes,
utilities and services exclusively relating to or serving the Demised Premises
to be separately assessed, metered or contracted for, to the extent reasonably
practicable and unless the Landlord and the Tenant otherwise mutually agree (e.g.
for the purpose of achieving

 

25

 

cost savings).  The cost and
expense of any Separation Work performed in connection therewith shall be borne
by the Tenant, as provided in Article 3 above.

 

Section 24.3                                The
Landlord and the Tenant agree that the apportionment of costs or expenses
(including Taxes, utilities and services) relating partially to Landlord’s
Premises or a portion thereof, and partially to the Demised Premises or a
portion thereof, shall generally be made in accordance with the ratio of the
interior square footage of buildings lying within the Demised Premises (or such
portion thereof) to the square footage of buildings lying within the Landlord’s
Premises (or portion thereof) taking in account the total area occupied and
their respective requirements based on usage unless otherwise provided in Exhibit
B.  Similarly, apportionment of Licensed
Premises expenses shall generally be made in accordance with the ratio of the
interior square footage of all buildings lying within the entire Demised
Premises to the interior square footage of all buildings lying within the
entire Landlord’s Premises taking in account the total area occupied and their
respective requirements based on usage unless otherwise provided in Exhibit
B.  Notwithstanding the foregoing, if the
method of apportionment described in the preceding two sentences would be
inequitable in any material respect (e.g., because the benefit from the
service in question, the use of the utilities in question, or the value of the
properties in question is disproportionate), then a more equitable basis of
allocation shall be used.

 

Section 24.4                                Attached
hereto as Exhibit “B” is a schedule of Initial Expense Allocations
pursuant to which the Landlord and the Tenant have attempted to identify, and
equitably apportion between the Landlord and the Tenant, certain costs and
expenses relating to the Demised Premises and/or the Licensed Areas.  Landlord and Tenant agree to review such
apportionment annually.

 

Section 24.5                                If
any item of cost or expense paid, payable or incurred by either the Landlord or
the Tenant is to be apportioned pursuant to this Lease, the party to whom such
cost or expense is billed or by whom it is paid shall promptly notify the other
party of the amount of such cost or expense, and such other party’s
proportionate share thereof and the basis upon which such proportionate share
was determined.  Such notice shall be
accompanied by reasonable documentation relating to such cost or expense.  The party so billed shall pay the billing
party the amount requested within fifteen (15) business days of receiving such
bill.  If the party billed disputes the
amount, such payment may be made under protest and the dispute shall be settled
in the manner provided in Section 24.6 below.  Following resolution of the dispute, any
overpayment shall be refunded to the billed party, and any underpayment shall
be paid to the billing party, in each case together with interest thereon at a
rate equal to 2% above the rate of interest publicly announced by Citibank,
N.A. from time to time as its “base rate” (unless such interest is waived by
the party entitled to receive the same).

 

Section 24.6                                In
the event any party disputes the amount of any bill submitted to it for payment
pursuant to Section 24.5 above, it shall immediately notify the other
party in writing, which notice shall set forth the nature of the dispute with
reasonable specificity and shall include any documentation reasonably required
to evaluate such dispute.  Each party
shall appoint a representative who shall attempt to resolve the dispute.  The representatives shall use

 

26

 

the provisions of this paragraph and, if applicable, the methodology
employed by the parties in arriving at the Initial Expense Allocations set
forth in Exhibit “B” as guidelines in attempting to resolve the
dispute.  If such representatives are
unable to resolve the dispute within thirty (30) days, they shall submit the
dispute to arbitration in accordance with Article 28 hereof.

 

ARTICLE 25

 

Broker

 

Section 25.1                                Each
party represents that it has not dealt with any broker in connection with this
Lease.  The Landlord and the Tenant shall
indemnify and hold each other harmless from and against any and all loss,
claims, liabilities, damages and expenses, including without limitation, attorneys’
fees and expenses and court costs arising out of or in connection with any
breach or alleged breach of the above representation or any claim by any person
or entity for brokerage commissions or other compensation in connection with
this Lease.  The provisions of this Article 25
shall survive the expiration or sooner termination of this Lease.

 

ARTICLE 26

 

Indemnity

 

Section 26.1                                Except
as otherwise provided herein or in the Contribution Agreement, the Tenant shall
indemnify and hold harmless the Landlord against and from any and all
liability, fines, suits, claims, demands, expenses (including without
limitation, reasonable attorneys’ fees and disbursements) and actions of any
kind or nature arising by reason of injury to person or property occurring on
or about the Premises and occasioned in whole or in part by any act or omission
of the Tenant, or of any person on the Premises or any other part of the Plant
by the license or permission of the Tenant, expressed or implied, or by any use
of the Premises or the Personal Property, or any breach, violation or
non-performance of any covenant in this Lease on the part of the Tenant to be
observed or performed; provided, however, that with respect to the Original
Demised Premises, the Designated Original Licensed Premises, the Licensed
Premises and the Original Personal Property, the provisions of this Section 26.1
shall be in effect as of the Commencement Date and with respect to the
Additional Premises and the New Personal Property, the provisions of this Section 26.1
shall be in effect as of the date Tenant first occupied or used the same.

 

Section 26.2                                Except
as otherwise provided herein or in the Contribution Agreement, Landlord shall
indemnify and hold harmless the Tenant from and against all claims against
Tenant arising from any direct damage to the Demised Premises and any bodily
injury to Tenant’s employees, agents or invitees resulting from the negligence
or wilful misconduct of Landlord or its agents. 
This indemnity and hold harmless agreement shall include indemnity from
and against any and all liability, fines, suits, claims, demands and expenses
(including, without limitation, reasonable attorneys’ fees and disbursements)
incurred in or in connection with any such claim or proceeding brought thereon,
but shall be limited to the extent any insurance proceeds collectible by Tenant
or such injured party with respect to such damage or

 

27

 

injury are insufficient to satisfy same.  Landlord shall have no liability for any
consequential damages suffered either by Tenant or by any party claiming
through Tenant.

 

Section 26.3                                If
any claim, action or proceeding is made or brought against either party, which
claim, action or proceeding the other party shall be obligated to indemnify
such first party against pursuant to the terms of this Lease, then, upon demand
by the indemnified party, the indemnifying party, at its sole cost and expense,
shall resist or defend such claim, action or proceeding in the indemnified
party’s name, if necessary, by such attorneys as the indemnified party shall
approve, which approval shall not be unreasonably withheld.  Attorneys for the indemnifying party’s
insurer are hereby deemed approved for purposes of this Section 26.3.  Notwithstanding the foregoing, an indemnified
party may retain its own attorneys to defend or assist in defending any claim,
action or proceeding involving potential liability of Five Million Dollars
($5,000,000) or more, and the indemnifying party shall pay the reasonable fees
and disbursements of such attorneys.  The
provisions of this Article 26 shall survive the expiration or earlier
termination of this Lease.

 

ARTICLE 27

 

Covenants to Bind and Benefit

Respective Parties; Modification;

Waiver of Trial by Jury;

Exculpation; Unavoidable Delay; Conflict

 

Section 27.1                                The
covenants and agreements herein contained shall bind and inure to the benefit
of the Landlord and the Tenant.  The term
“Landlord” means a landlord or lessor, and as used in this Lease means only the
owner, or the mortgagee in possession, for the time being of the Demised
Premises, or the owner of this Lease of the Demised Premises, so that in the
event of any transfer of the Demised Premises or of this Lease, except as set
forth in Section 22.2, the Landlord shall be and hereby is entirely freed
and relieved of all covenants and obligations of the Landlord hereunder, and it
shall be deemed and construed without further agreement between the parties, or
between the parties and the purchaser, at the time of any such transfer, that
the purchaser of the Demised Premises of the Landlord’s interest in this Lease
has assumed and agreed to carry out any and all covenants and obligations of
the Landlord hereunder.

 

Section 27.2                                The
terms and provisions of this Lease may not be altered, modified, waived or
terminated except by an agreement in writing signed by the party to be charged.

 

Section 27.3                                It
is mutually agreed by and between the Landlord and the Tenant that the
respective parties hereto shall and they hereby do waive trial by jury in any
action, proceeding or counterclaim brought by either of the parties hereto
against the other on any matters whatsoever arising out of or in any way
connected with the Lease, the relationship of the Landlord and the Tenant, the
Tenant’s use of or occupancy of the Premises or the Personal Property, and any
emergency or any other statutory remedy. 
It is further mutually agreed that in

 

28

 

the event the Landlord commences any summary proceeding for possession
of the Demised Premises and the Personal Property, the Tenant will not
interpose any counterclaim of whatever nature or description in such
proceeding.

 

Section 27.4                                Notwithstanding
anything herein or in any rule, law or statute to the contrary, the Tenant
hereby acknowledges and agrees that to the extent that the Landlord shall at
any time have any liability under, pursuant to or in connection with this
Lease, none of the Tenant, its officers, directors, partners, associates,
employees, agents, guests, licensees or invitees (or any other party claiming
through or on behalf of the Tenant) shall seek to enforce any personal or money
judgment against the Landlord except against the equity interest of the
Landlord in the Plant.  In addition to
and not in limitation of the foregoing, the Tenant further hereby acknowledges
and agrees that, in no event and under no circumstances, shall the Landlord or
any director indirect partner, officer, director, employee, agent or principal
(disclosed or undisclosed) of the Landlord have any personal liability or
monetary or other obligation of any kind under or pursuant to this Lease,
except that the Landlord may be held liable to the extent of its equity
interest in the Land and the Building. 
Any attempt by the Tenant or any officer, director, direct or indirect
partner, associate, employee, agent, guest, licensee or invitee of the Tenant
(or any other party claiming through or on behalf of the Tenant) to seek to
enforce any such personal liability or monetary or other obligation shall be
and be deemed to be in material violation by the Tenant of the terms of the
tenancy created hereby and shall, in addition to and not limitation of the
Landlord’s other rights, powers, privileges and remedies under the terms and
provisions of this Lease or otherwise afforded by applicable law in respect
thereof, immediately vest the Landlord with the unconditional right and option
to cancel this Lease on five (5) days’ notice to the Tenant.

 

Section 27.5                                This
Lease and the obligation of Tenant to pay Basic Rent and Additional Rent
hereunder and perform all of the other covenants and agreements hereunder on
the part of Tenant to be performed shall in no way be affected, impaired or
excused because Landlord is unable to fulfill any of its obligations under this
Lease expressly or implied to be performed by Landlord or because Landlord is
unable to make, or is delayed in making any repairs, additions, alterations,
improvements or decorations or is unable to supply or is delayed in supplying
any equipment or fixtures, if Landlord is prevented or delayed from so doing by
reason of strikes or labor troubles or by accident, or by any cause whatsoever
beyond Landlord’s control, including, but not limited to, laws, governmental
preemption in connection with a national emergency or by reason of any
Requirements of any governmental authority, or by reason of the conditions of
supply and demand which have been or are affected by war or other emergency (“Unavoidable
Delays”).

 

Section 27.6                                In
the event of any inconsistency between the terms and provisions of this Lease
and the terms and provisions of the Contribution Agreement, the terms and
provisions of the Contribution Agreement shall control.

 

29

 

ARTICLE 28

 

Arbitration

 

Section 28.1                                In
such cases where this Lease expressly provides for the settlement of a dispute
or question by arbitration, and only in such cases, either Landlord or Tenant
may demand arbitration.  Upon such
demand, and except where other provisions of this Lease have special provisions
therefor, the dispute or question shall be determined by arbitration in
accordance with the provisions of Section 8.3 of the Contribution
Agreement.

 

ARTICLE 29

 

Hazardous Substances; Environmental Laws

 

Section 29.1                                Compliance
with Environmental Laws.  Except as
specifically set forth or contemplated by Section 6.3(a), 6.3(b), 6.3(c)
and 7.1(a)(ii) of the Contribution Agreement, Tenant represents, covenants and
agrees that in conducting its business operations and/or its occupancy at the
Premises, it shall (i) comply with all applicable Environmental Laws (as that
term is defined in the Contribution Agreement), (ii) it shall not in any manner
cause the emission, discharge, issuance, release or distribution of any
Hazardous Substances (as that term is defined in the Contribution Agreement) in
violation of any Environmental Law, and (iii) it shall comply with the terms
and conditions of any permit issued to Landlord which relates in whole or in
part to Tenant’s use or occupancy of the Premises, including but not limited to
the wastewater discharge permit and stormwater permit; provided, however, that
with respect to the Additional Premises and the related Licensed Premises, the provisions
of this Section 29.1 shall be in effect as of the date Tenant first
occupied or used the same.

 

Section 29.2                                Copies
of Submissions.  Upon the prior
reasonable written request of Landlord, Tenant shall supply Landlord with
copies of any notices, reports, correspondence and submissions made by Tenant
to the United States Environmental Protection Agency (“EPA”), the
Pennsylvania Department of Environmental Protection, the Ohio Department of
Environmental Protection, the United States Occupational Safety and Health
Administration or any other local, state or federal authority which requires
submissions by Tenant of any information concerning environmental matters or
Hazardous Substances pursuant to any Environmental Law.  Tenant’s obligation under this paragraph
shall not apply to attorney-client privileged communications or the attorney
work product doctrine or to any confidential business information submitted to
local, state or federal authorities under confidentiality protection to which
Landlord would not otherwise be entitled under the Contribution Agreement.

 

Section 29.3                                Tenant’s
Remediation.  Except as contemplated
by Section 29.1 hereof or Section 7.1(a)(ii) of the Contribution
Agreement, in the event of any spill, discharge, or release of any Hazardous
Substances at, under or about, the Premises solely caused by Tenant or relating
to the operations of Tenant’s business and/or Tenant’s occupancy at the
Premises (hereinafter collectively referred to as a “Hazardous Discharge”)
or upon the issuance of any complaint, order, citation or notice of violation
with regard to air emissions, water discharges, noise emissions or any other
environmental, health or safety matter caused by Tenant or relating to the
operations of Tenant’s business and/or occupancy at the Premises (hereinafter
collectively referred to as an “Environmental Complaint”), Tenant shall,
at its sole cost and expense,

 

30

 

promptly take all such necessary steps to initiate and diligently complete
all remedial action relating to the Hazardous Discharge or the issuance of such
Environmental Complaint in accordance with all applicable Environmental Laws to
the reasonable satisfaction of Landlord and the applicable governmental
authority including the payment of any and all costs and penalties assessed
against the Premises.  Provided however,
with respect to a Hazardous Discharge caused by Landlord, Tenant shall have no
obligation to conduct any such remedial actions.  Notwithstanding the foregoing, with respect
to the Additional Premises and the related Licensed Premises, the provisions of
this Section 29.3 shall be in effect as of the date Tenant first occupied
or used the same.

 

Section 29.4                                Copies
of Notices.  In the event that Tenant
receives any notice, whether written or oral, concerning the occurrence of any
Hazardous Discharge required to be reported under any Environmental Law or of
any Environmental Complaint from any person, entity or governmental agency,
then Tenant shall give prompt oral notice to Landlord, and shall within five
(5) days thereafter, give written notice of same to Landlord, which notice
shall set forth specifically and in detail all relevant facts and circumstances
with respect thereto.

 

Section 29.5                                Tenant’s
Failure to Remediate Under Section 29.3, Landlord’s Right to Remediate.  Upon the occurrence of a Hazardous Discharge
or Environmental Complaint, in the event Tenant fails to comply with Section 29.3,
Landlord shall have the right, but not the obligation, after giving Tenant at
least five (5) days prior written notice (unless emergent circumstances require
less notice) and a reasonable opportunity to cure (which cure shall not exceed
fifteen (15) days, unless emergent circumstances require less time) to enter
onto the Premises and after advising Tenant, to take any actions necessary or
advisable to remove, clean up and minimize the impact of, or otherwise deal
with any Hazardous Discharge or any Environmental Complaint pertaining to the
Premises.  In the event such cure shall
take more than fifteen (15) days to accomplish, Tenant shall have a period of
time equal to the earlier of the reasonable time necessary to accomplish the
cure or any requirement of any applicable governmental agency or Environmental
Law, provided Tenant commences the cure within the fifteen (15) day period and
thereafter diligently pursues same to completion.  All reasonable costs and expenses incurred by
Landlord in the exercise of any such rights shall be deemed to be Additional
Rent hereunder and shall be immediately payable by Tenant to Landlord upon
demand.

 

Section 29.6                                Environmental
Indemnification.  Except as
specifically set forth in Section 7.1(a)(ii) of the Contribution
Agreement, Tenant shall indemnify the Landlord, its affiliates, shareholders,
directors, officers and employees against, and hold them harmless from any and
all damage, claim, loss, liability and expense (including without limitation
reasonable expenses of investigation and reasonable attorney’s fees and
expenses) incurred or suffered by Landlord, (i) arising out of or due to any
spill, discharge, or release of any Hazardous Substances on, from, under or at
the Premises resulting from events or conduct occurring after the Commencement
Date and solely caused by Tenant or relating to Tenant’s business operations
and/or Tenant’s occupancy at the Premises, (ii) due to Tenant’s failure to
comply with its obligations under this Article, or (iii) due to Tenant’s breach
of any representation, warranty covenant or other agreement of the Tenant
contained in this Article; provided, however, that with

 

31

 

respect to the Additional Premises and the related Licensed Premises,
the provisions of this Section 29.6 shall be in effect as of the date
Tenant first occupied or used the same.

 

ARTICLE 30

 

Miscellaneous

 

Section 30.1                                Contribution
Agreement.  Notwithstanding the
foregoing, the terms of the Contribution Agreement shall, and shall be deemed
to, continue, subject to the terms, conditions and limitations applicable
thereto.

 

Section 30.2                                Entire
Agreement.  This Lease, together with
the Purchase Agreement dated as of April 1, 1999, by and among Accuride
Ventures, Inc., Accuride Corporation and Landlord (the “Purchase Agreement”)
and the Formation Agreements (as defined in the Purchase Agreement), embodies
the entire agreement and understanding between the parties relating to the
subject matter hereof and thereof, and supersedes any prior oral or written
agreements, commitments or terms.

 

Section 30.3                                Section Headings;
Counterparts; etc.  The section headings
of this Lease are for convenience of reference only and are not to be
considered in construing this Lease. 
This Lease may be executed in any number of counterparts, each of which
shall be an original, but all of which together shall constitute one and the
same instrument.

 

Section 30.4                                Further
Assurances.  Each party hereto shall
execute and deliver such additional documents and perform such acts as are
reasonably requested by the other party hereto in order to fully effect the
intent of this Lease.

 

32

 

IN WITNESS WHEREOF, the parties hereto have duly executed this Lease as
of the date first set forth above.

 

 

	
   

  	
  LANDLORD:

  
	
   

  	
   

  
	
   

  	
  KAISER ALUMINUM & CHEMICAL CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JACK A. HOCKEMA

  	
   

  
	
   

  	
   

  	
  Name: Jack A. Hockema

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TENANT:

  
	
   

  	
   

  
	
   

  	
  AKW L.P., by AKW GENERAL PARTNER L.L.C., its

  
	
   

  	
  General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

33

 

EXHIBIT “A-1”

 

Demised Premises and Licensed Premises

 

 

[to be prepared and attached]

 

 

EXHIBIT “A-2”

 

Original Personal Property

 

 

The following three overhead cranes located in buildings to be leased
to the Company:

 

—                                   Whiting
double box bean bridge crane, 20-ton capacity x 60’ span, cab operated

 

—                                   Case
double box beam mill crane, 15-ton capacity x 65’ span, cab operated

 

—                                   Shawbox
double box beam mill crane, 20-ton capacity x 65’ span

 

 

EXHIBIT “A-3”

 

New Personal Property

 

-                                            The
personal property and equipment, including, but not limited to, the personal
property and equipment relating to the electrical substation, used by Tenant
and located within the Designated Original Licensed Premises or the Additional
Premises.

 

 

EXHIBIT “B”

 

Initial Expense Allocation

 

	
  Expense

  	
   

  	
  Method of Allocating

  
	
   

  	
   

  	
   

  
	
  Security Guard Services

  	
   

  	
  Pro rata based upon total square footage included within the Premises
  and the total square footage included within the Plant

  
	
   

  	
   

  	
   

  
	
  Snow Removal Services

  	
   

  	
  100% Tenant

  
	
   

  	
   

  	
   

  
	
  Lawn Care Services

  	
   

  	
  Pro rata based upon total square footage included within the Premises
  and the total square footage included within the Plant

  
	
   

  	
   

  	
   

  
	
  Mail Delivery & Pick Up

  	
   

  	
  100% Tenant

  
	
   

  	
   

  	
   

  
	
  Floor Mats and Uniforms

  	
   

  	
  100% Tenant

  
	
   

  	
   

  	
   

  
	
  Trash/Garbage Services

  	
   

  	
  100% Tenant

  
	
   

  	
   

  	
   

  
	
  Heating, Ventilation, Air Conditioning

  	
   

  	
  Pro rata based upon total square footage included within the Premises
  and the total square footage included within the Plant, and taking into
  account the total area occupied and their respective requirements based on
  usage

  
	
   

  	
   

  	
   

  
	
  Fire Extinguisher Services

  	
   

  	
  Based on upon location within the Plant

  
	
   

  	
   

  	
   

  
	
  Telephone, Fax, Paging, Voice Mail, and
  Mobiles (including service contracts)

  	
   

  	
  100% Tenant

  
	
   

  	
   

  	
   

  
	
  Environmental Engineering and Consulting
  Services

  	
   

  	
  Invoices to Tenant and Landlord separately based on work individually
  authorized

  
	
   

  	
   

  	
   

  
	
  Electricity

  	
   

  	
  Pro rata based upon total square footage included within the Premises
  and the total square footage included within the Plant, and taking into
  account the total area occupied and their respective requirements based on
  usage

  
	
   

  	
   

  	
   

  
	
  Natural Gas

  	
   

  	
  Pro rata based upon total square footage included within the Premises
  and the total square footage included within the Plant, and taking into
  account the total area occupied and their respective requirements based on
  usage

  
	
   

  	
   

  	
   

  
	
  Water & Sewer

  	
   

  	
  100% Tenant

  
	
   

  	
   

  	
   

  
	
  Taxes

  	
   

  	
  Pro rata based upon total square footage included within the Premises
  and the total square footage included within the Plant

  
	
   

  	
   

  	
   

  
	
  All Other

  	
   

  	
  Pro rata based upon total square footage included within the Premises
  and the total square footage included within the Plant, and taking into
  account the total area occupied and their respective requirements based on
  usage

  

 

 

SCHEDULE 8.1

 

Personal Property Maintenance Schedules and
ProceduresExhibit 10.30

 

LEASE
AGREEMENT

 

LEASE AGREEMENT
made as of the 19th day of October, 1989, by and between TAYLOR LAND & CO.,
a Maryland general partnership (“Landlord”), and ACCURIDE CORPORATION (“Tenant”).

 

WITNESSETH, that
for and in consideration of the payment of the rents and performance of the
covenants and agreements herein set forth, Landlord and Tenant hereby agree as
follows:

 

SECTION 1.                                BASIC LEASE
PROVISIONS AND DEFINITIONS.

 

In addition to the
other terms defined elsewhere in this Lease, the following terms whenever used
in this Lease shall have only the meanings set forth in this Section, unless
such meanings are expressly modified, limited or expanded elsewhere herein:

 

1.1.                              Leased
Premises:     That certain building containing
approximately seventy-five thousand (75,000) square feet and a portion of the
surrounding real property as shown on Exhibit A attached hereto consisting of
approximately five (5) acres commonly known as 20401 Trolley Industrial Drive
located in Taylor, Michigan, including certain parking areas, as more
particularly described in Exhibit A attached hereto and made a part hereof.

 

1.2.                              Term:                  A period of ten
(10) years, one (1) month and twelve (12) days commencing on October 19,
1989.

 

1.3.                              Rent:                    The monthly
sums set forth in Exhibit B.

 

1.4.                              Permitted
Use:                   The Leased
Premises shall be used solely as a warehouse for the distribution of truck
rims, wheels, tires and assembly of these products.

 

	
  1.5.                              Landlord
  Notice Address:

  	
  10
  Parks Avenue

  	
   

  
	
   

  	
  Cockeysville,
  Maryland 21030

  	
   

  
	
   

  	
  Attn:  Henry G. Reinhardt

  	
   

  
	
   

  	
   

  	
   

  
	
  1.6.                              Tenant
  Notice Address:

  	
  2315
  Adams Lane

  	
   

  
	
   

  	
  Henderson,
  Kentucky 42420

  	
   

  

 

1.7.                              Broker:          Cushman & Wakefield
of Michigan, Inc.

 

1.8.                              Building:                                                The
principal building on the Leased Premises from which the business operations of
Tenant are conducted as measured from the outside of the exterior walls.

 

1.9.                              Addenda:                                           The
following Addenda attached to this Lease are incorporated herein and made a
part hereof:

 

1-  Option to Renew

 

 

SECTION 2.                                DEMISE OF PREMISES.

 

2.1.                              Landlord
hereby leases to Tenant and Tenant rents from Landlord the Leased Premises.

 

2.2.                              Landlord
rents to Tenant the Leased Premises in its “AS IS” condition which Tenant has
inspected and accepts.  Landlord
represents and warrants to Tenant that the Leased Premises, and the intended
use of the Leased Premises, are in compliance with Federal, State and local
laws, ordinances, zoning restrictions, orders, rules, regulations, and any
agreements or covenants of public record.

 

SECTION 3.                                TERM.

 

The Term of this
Lease shall commence upon the date specified in Section 1.2 hereof (the “Commencement
Date”).  The Term shall terminate (unless
sooner terminated pursuant to the provisions of this Lease) on the last day of
the last calendar month of the Term.

 

SECTION 4.                                RENT.

 

4.1.                              During
the Term of this Lease, Tenant covenants and agrees to pay Landlord, for the
use of the Leased Premises, the Rent in advance on the first day of each and
every calendar month as set forth on Exhibit B.

 

4.2.                              Except
as otherwise provided herein, the payment of the Rent hereunder shall be
absolutely net to Landlord and, accordingly, shall be in addition to and over
and above all other payments to be made by Tenant as hereinafter provided and
all expenses pertaining to the repairs, maintenance and use of the Leased
Premises, it being the purpose and intent of Landlord and Tenant that the Rent
payable hereunder shall when received by Landlord be absolutely net to it, that
all costs, charges, expenses and obligations of every kind relating to the ownership
of the Leased Premises and the use thereof which may arise or become due shall
be paid by Tenant, and that Landlord shall be indemnified and saved harmless by
Tenant from and against all such costs, charges, expenses and obligations.

 

4.3.                              Tenant
covenants to pay, without demand, abatement, deduction or setoff, the Rent
provided for herein and to pay as additional rent all other sums, costs,
charges and expenses payable by Tenant under this Lease, and, in the .event of
any nonpayment thereof, such sums shall be collected as rent, and Landlord
shall have all the rights and remedies provided for herein or by law in the
case of nonpayment of rent.

 

SECTION 5.                                QUIET ENJOYMENT.

 

Upon payment of
the Rent and all other sums due under the terms of this Lease, and the
performance of all covenants and conditions herein contained and on the part of
Tenant to be performed, Landlord agrees that Tenant shall have the peaceful and
quiet possession, use and enjoyment of the Leased Premises.

 

 

SECTION 6.                                USE OF LEASED PREMISES
BY TENANT.

 

6.1.                              The
Leased Premises shall be used and occupied by Tenant solely for the Permitted
Use and for no other purpose without Landlord’s prior written consent.

 

6.2.                              Tenant,
shall at all times use the Leased Premises in a safe, careful, proper and
prudent manner and shall, at its expense, comply with all Federal, State and
local laws, ordinances, orders, rules, regulations, all agreements and
covenants of public record pertaining to the Leased Premises now or hereafter
in force and all recommendations of the Fire Underwriters Rating Bureau, with
respect to the use or occupancy of the Leased Premises.

 

6.3.                              Tenant,
at its expense, shall obtain all licenses and permits which may be required to
use and occupy the Leased Premises for the purposes hereinabove provided.

 

6.4.                              Tenant
covenants that no waste or damage shall be committed upon or to the Leased
Premises, and that the Leased Premises shall not be used for any unlawful
purpose.

 

SECTION 7.                                UTILITIES.

 

Tenant shall bear,
pay and discharge the cost for all utility, water and sewer services rendered
or furnished to the Leased Premises, including, without limitation, heat,
ventilating, air conditioning, water (whether by meter or sub-meter), gas,
electricity, telephone and garbage or refuse pick-up, together with all taxes,
levies or other charges on such services.

 

SECTION 8.                                TAXES AND
ASSESSMENTS.

 

8.1.                              The
real property and other taxes described below levied against the Leased
Premises for June-December 1989, will be prorated between Landlord and
Tenant with Tenant paying all such taxes attributable to such period after October 19,
1989.  After December 31, 1989,
Tenant shall bear, pay and discharge when due, and before any fine, penalty,
interest or cost may be added thereto or become due or be imposed by operation
of law, all existing and future taxes (including real property taxes),
assessments, duties, impositions, burdens and charges whatsoever levied,
assessed, charged or imposed, whether by the nation, state or any county, city
or other public authority, upon the Leased Premises and improvements thereon,
and to deliver promptly to Landlord at all times, proper and sufficient
receipts or other sufficient evidence of payment and discharge of such
obligations.  In the event any taxes, or other
annual or periodic assessments, duties, impositions, burdens and charges shall
be levied or charged for a period only a portion of which is included within
the Term of this Lease, Tenant nevertheless shall pay them in their entirety
and, upon surrender of the Leased Premises, any proportionate part representing
the balance of a charge beyond the time when Tenant surrenders the Leased
Premises shall be refunded by Landlord to Tenant.  Notwithstanding anything contained herein to
the contrary, Landlord shall be responsible for all taxes and assessments on
real property which does not constitute a part of the Leased Premises but which
is assessed as a part of the same subdivided lot containing the Leased
Premises.

 

8.2.                              Landlord,
upon receipt, shall promptly forward to Tenant all tax bills, notices of
assessment or reassessment and any other information relating to the above
taxes and assessments on the Leased Premises.  Tenant, at its expense, shall be entitled to
protest to the

 

 

assessing
authorities any special assessments and any increase in real estate assessments
affecting its liability hereunder, petition for reduction of assessments and
appeal any denied protests and petitions, and, at its expense, may file and
prosecute such actions in Landlord’s name as Landlord’s agent.  Landlord shall be given written notice ten
(10) days in advance of any hearing or trial pertaining to any appeal and shall
have the right to be present and to intervene.

 

8.3.                              Tenant
shall be responsible for and shall pay before delinquency all municipal,
county, state and federal taxes assessed against any leasehold interest or
personal property of any kind, owned by or placed in, upon, or about the Leased
Premises by Tenant.

 

SECTION 9.                                SIGNS, ETC.

 

Tenant shall not
place or permit to be placed any signs, lights, awnings or poles in, on or
about the Leased Premises without the prior written approval of Landlord.  In the event the approval of Landlord is given,
Tenant agrees to pay any minor privilege or other taxes therefor.  Tenant agrees to maintain all approved signs,
lights, awnings and poles in good condition, order and repair and to remove
them prior to the termination of this Lease unless directed by Landlord not to
remove the same.  Landlord reserves the
right to remove any signs, lights, awnings and poles whenever any of them shall
constitute a safety hazard or a potential harm to the Leased Premises.

 

SECTION 10.                          TRADE FIXTURES AND
EQUIPMENT.

 

Any trade fixtures
and equipment installed by Tenant shall be of good quality and maintained by
Tenant in good condition, order and repair.  All trade fixtures and equipment shall be
removable by Tenant provided there is no default under the terms of this Lease
and also provided that Tenant repairs at its own cost and expense all damage
caused by the removal.  Removal must be
prior to the termination of this Lease and Tenant agrees to restore the Leased
Premises to the condition existing at the commencement of this Lease.  All trade fixtures and equipment on the Leased
Premises shall be subject to Landlord’s lien for rent and other charges.

 

SECTION 11.                          ALTERATIONS, REPLACEMENTS
AND IMPROVEMENTS.

 

11.1.                        Tenant
shall not, without the prior written approval of Landlord, install or permit to
be installed any fixture or improvement or make any alterations or replacements
upon the Leased Premises.  Tenant shall
present to Landlord plans and specifications for any alterations, replacements
or improvements at the time approval is sought and, when approval is granted,
shall cause all work to be done according to the submitted plans and
specifications and in compliance with all codes, ordinances, rules and
regulations of any authority (including the Board of Fire Underwriters).  All materials shall be of first quality and
all work shall be done in a good and workmanlike manner and shall not impair
the structural stability of the Leased Premises.  The cost of all approved work or repair of any
damage resulting from any approved work shall be borne by Tenant.  The Landlord’s approval of any requested
alterations or replacements upon the Leased Premises shall not be unreasonably
withheld.

 

11.2.                        Any
alterations, replacements or improvements (except, trade fixtures) shall become
the property of Landlord as soon as they are affixed to the Leased Premises and
all right,

 

 

title
and interest therein of Tenant shall immediately cease, unless otherwise agreed
to in writing by Landlord.  Landlord
shall have the sole right to collect any insurance for damage of any kind to
any of the alterations, replacements or improvements (except trade fixtures)
placed upon the Leased Premises by Tenant.

 

11.3.                        Landlord
shall have the right to require that all or any part of any alteration,
replacement or improvement shall be removed by Tenant prior to the termination
of this Lease, in which event the removal shall be done at Tenant’s expense,
and Tenant shall, at its expense, repair any damage to the Leased Premises
caused by any removal.

 

11.4.                        Tenant
shall promptly pay all contractors and materialmen working on the Leased
Premises with respect to any alterations, replacements or improvements and
covenants to keep the Leased Premises free of mechanic liens at all times.

 

11.5.                        Tenant
agrees to obtain prior to commencing any alterations, replacements or
improvements, and to keep in full force and effect at all times while such
alterations, replacements or improvements are being made, at its expense,
policies of insurance pertaining to the alterations, replacements and
improvements and/or the making thereof as Landlord may require Tenant to
obtain, including, but not limited to, public liability and property damage
insurance, and to furnish Landlord evidence satisfactory to Landlord of the
existence of the required insurance prior to Tenant’s beginning to make any
alterations, replacements or improvements.

 

11.6.                        In the
event any alterations, replacements or improvements, or the obtaining of
permits or franchise therefor, shall directly or indirectly result in a
franchise, minor privilege or other similar tax or assessment, such tax or
assessment shall be paid, immediately upon its levy, by Tenant.

 

SECTION 12.                          MAINTENANCE OF LEASED
PREMISES.

 

12.1.                        Tenant
shall, at its sole cost and expense, maintain the Leased Premises in good order
and condition of repair, ordinary wear and tear excepted.  Such maintenance shall include the prompt and
proper repair and upkeep of all exterior and interior elements and systems of
the Leased Premises, including but not limited to:  floors, doors, windows, toilets, light
replacement and fixtures, air conditioning, cooling and heating equipment
(whether space or unit systems or equipment); electrical systems; plumbing,
dock equipment and fixtures; including but not limited to:  dock shelters, dock bumpers, dock lights and
pit levelers; and similar elements or systems not expressly made the obligation
of the Landlord.  Notwithstanding the
foregoing, except as otherwise stated below, Tenant shall be responsible for
replacing the air conditioning, cooling, and heating equipment (collectively,
the “HVAC Equipment”) if Tenant is unable after exercising reasonable efforts
to maintain the HVAC Equipment in good working order.  Tenant shall also provide its own janitorial
services for the Leased Premises and shall pay for its share of the costs of
snow and ice removal from the driveways, ingress and agrees areas and sidewalks,
lawn care and landscape maintenance.  Landlord
shall maintain the roof, pavement, rail siding and exterior walls of the Leased
Premises, including all pavement and rail siding servicing the warehouse
complex.  If any repair or maintenance to
the roof or exterior is made necessary by reason of the negligence or misuse by
Tenant, its employees, agents or licensees, then Tenant

 

 

shall
be responsible for the prompt repair and maintenance of such elements or
systems or for the full cost of the same.

 

12.2.                        Tenant
shall maintain the Leased Premises in a clean, orderly and sanitary condition,
free of insects, rodents, vermin and other pests, and will not permit undue
accumulations of garbage, trash, rubbish and other refuse.

 

12.3.                        Subject to
the provisions of Section 10, Tenant shall upon the termination of this
Lease, surrender the Leased Premises in the good order and condition as at the
commencement of this Lease, reasonable wear and tear excepted, and shall
surrender all keys and copies thereof for the Leased Premises to Landlord.

 

12.4.                        Notwithstanding
anything contained in this Lease to the contrary, with respect to Tenant’s
obligation to replace the HVAC Equipment, as aforesaid, Tenant’s and Landlord’s
responsibility for the costs of such replacement shall be as follows:

 

	
  Term

  	
   

  	
  Landlord’s Share of

  Replacement Cost

  	
   

  	
  Tenant’s Share of

  Replacement Cost

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Years 1-2

  	
   

  	
  0

  	
  %

  	
  100

  	
  %

  
	
  Years 3-4

  	
   

  	
  20

  	
  %

  	
  80

  	
  %

  
	
  Years 5-6

  	
   

  	
  40

  	
  %

  	
  60

  	
  %

  
	
  Years 7-8

  	
   

  	
  60

  	
  %

  	
  40

  	
  %

  
	
  Years 9-10

  	
   

  	
  80

  	
  %

  	
  20

  	
  %

  

 

Notwithstanding
the foregoing, Landlord shall have no responsibility for the costs of replacing
the HVAC Equipment if Tenant has breached its covenant to exercise reasonable
efforts to maintain the HVAC Equipment in good working order, as set forth
above.

 

12.5.                        Landlord
shall have the right to enter the Leased Premises during business hours from
time to time, with reasonable prior notice to inspect the same to determine
whether Tenant is complying with the terms of this Lease; provided that such
entry and inspection shall not cause material interference with Tenant’s
conduct of business.  In the event Tenant
has failed to comply with the terms of this Lease in Landlord’s reasonable
judgment, Landlord shall have the right to perform the same on Tenant’s behalf
(after giving Tenant notice and two (2) weeks to commence curing and proceed
diligently thereafter) and at Tenant’s cost Landlord shall have the same rights
and remedies with respect to such costs as Landlord has with respect to the
rental received hereunder.

 

SECTION 13.                          LIENS OR ENCUMBRANCES.

 

Tenant shall not
suffer the Leased Premises or any fixtures or improvements thereon to become
subject to any lien, charge or encumbrance whatsoever, and shall indemnify
Landlord against all such liens, charges and encumbrances.  Should any lien or encumbrance be placed
against the Leased Premises or any fixtures or improvements thereon, Tenant
shall notify Landlord and promptly discharge the lien or encumbrance.

 

 

SECTION 14.                          CASUALTY INSURANCE.

 

14.1.                        Landlord
shall procure and maintain insurance covering fire and such other risks as are
from time to time included in standard extended coverage endorsements insuring
to an amount not less than one hundred percent (100%) of the full then current
replacement costs of the Leased Premises without nay deductible.  Tenant agrees to pay when billed, as
additional rent, the premium of any such insurance procured by Landlord.  Promptly after payment of Landlord’s insurance
premium, Landlord shall submit to Tenant, Landlord’s invoice for Tenant’s
reimbursement, together with a copy of the premium invoice from the particular
insurance carrier in question covering the Leased Premises.  Tenant shall pay Landlord’s invoice within
thirty (30) days after Tenant’s receipt of such invoice.

 

14.2.                        Tenant
covenants that it shall not do nor permit to be done, nor keep nor permit to be
kept upon the Leased Premises, anything which would contravene the aforesaid
policy or policies of insurance or would render it difficult, impractical or
impossible to secure insurance in companies acceptable to Landlord.

 

14.3.                        Tenant
shall carry insurance an all of its contents and personal property located an
the Leased Premises.  Tenant covenants
and agrees that the insurance shall include protection against all the hazards
covered by the broad Fire and Extended Coverage form of insurance policy for
its property and shall be in amounts which, in the event of damage or
destruction, will yield funds adequate to fully compensate Tenant for its loss.
 Tenant shall cause the above-described
insurance policy or policies to be written in a manner as to provide that the
insurer waives all right of recovery by way of subrogation against Landlord in
connection with any loss or damage covered thereunder; provided that Landlord
shall cause its insurance carriers to mutually waive any rights of recovery by
way of subrogation against Tenant and Tenant’s insurance carrier.  Any additional charge or increase in premium
made by the insurer because of the waiver of subrogation shall be paid by
Tenant.

 

SECTION 15.                          PUBLIC LIABILITY INSURANCE.

 

15.1.                        Tenant
shall maintain at all times in full force and effect insurance with insurance
companies acceptable to Landlord for the benefit of both Tenant and Landlord as
their respective interests may appear, covering the risks generally included in
public liability and property damage insurance policies, in the sum of not less
than One Million Dollars ($1,000,000) on account of bodily injury, death or property
damage as a result of any one occurrence, and Three Million Dollars ($3,000,000)
in the aggregate for multiple occurrences, to protect Landlord and Tenant to
that extent from any suits arising out of accidents or injuries to persons or
property that may occur on the Leased Premises.

 

15.2.                        Landlord
shall be named as a co-insured on all policies of insurance and all policies
shall provide for at least thirty (30) days written notice to Landlord before
cancellations or material amendment.  Tenant
shall promptly furnish Landlord copies of all insurance policies or
certificates thereof showing the required insurance to be in full force and
effect.

 

 

SECTION 16.                          INDEMNITY.

 

Tenant shall
indemnify and save harmless Landlord against and from any and all losses,
costs, damages or expenses, including, without limitation attorneys’ fees
arising out of any accidents or other occurrence, causing injury to any person
or property whomsoever or whatsoever, arising out of or relating to the Leased
Premises, or any part thereof, except where such losses, costs, damages or
expenses are caused by the Landlord’s negligence or misconduct, or negligent
failure to perform its obligations under Section 12 hereof.

 

SECTION 17.                          NON-LIABILITY OF LANDLORD.

 

17.1.                        Landlord
shall not be liable for any personal injury to Tenant or its officers, agents
and employees, or to any occupant, invitee, licensee or user of any part of the
Leased Premises, except where such injury is caused by the negligence or
misconduct of Landlord, or negligent failure to perform its obligations under Section 12
hereof.

 

17.2.                        All
property on the Leased Premises shall be and remain at Tenant’s sole risk and
Landlord shall not be liable for any damage to property of Tenant or of others
located on the Leased Premises, nor for the loss of or damage to any property
of Tenant or of others by theft or otherwise, except where such loss or damage
is caused by the negligence or misconduct of Landlord.  Landlord shall not be liable to Tenant for and
Tenant shall hold Landlord harmless from, and indemnify Landlord against, any
claims arising from damage to any property resulting from fire, explosion,
falling plaster, steam, gas, electricity, water, flood, air-pollution, rain,
snow or leaks from any part of the Leased Premises or from the pipes,
appliances or plumbing works or from the roof, street, subsurface or from any
other place, or by dampness or by any other cause of whatsoever nature, except
where caused by the gross negligence of Landlord, or negligent failure to
perform is obligations under section 12 hereof.

 

17.3.                        Landlord
shall be under no liability to Tenant due to any discontinuance of any service,
including but not limited to utility services, caused by accidents, breakage or
strikes or any other cause whatsoever.

 

SECTION 18.                          CASUALTY.

 

If the Leased
Premises is damaged by a Casualty, then the rights of the parties shall be
determined as follows:

 

(a)                                  If
less than twenty five percent (25%) of the entire Leased Premises is destroyed,
Landlord shall, at its expense, and as promptly as reasonably possible (due
allowance being made for the time required for the settlement of insurance
claims), repair the damage and restore the Leased Premises to its condition
prior to the Casualty.  During the
restoration and repair period, Tenant’s liability for Rent and other sums
payable by Tenant hereunder shall be reduced by that amount which bears the
same ratio to the Rent and other sums payable hereunder as the area of the
Building rendered unsuitable for the normal operation of Tenant’s business
bears to the entire area of the building.

 

(b)                                 If
twenty-five percent (25%) or more of the entire Leased Premises is destroyed
(or less than twenty-five percent (25%) but the Leased Premises are
untenantable as a result),

 

 

then
Landlord shall have the option either to restore the Leased Premises to its
condition prior to the Casualty or to terminate this Lease.  Landlord’s option shall be exercised by
Landlord’s written notice to Tenant within twenty (20) days after the Casualty.
 If the election is:

 

(i)                                     To
restore the Leased Premises, the restoration shall be completed by Landlord, at
its expense, as promptly as reasonably possible (due allowance being made for
the time required for the settlement of insurance claims), and during the
restoration period Tenant’s liability for Rent and other sums payable by Tenant
hereunder shall be reduced by that amount which bears the same ratio to the
Rent and other sums payable hereunder as the area of the Building rendered
unsuitable for the normal operation of Tenant’s business bears to the entire
area of the Building; provided, however, that if Landlord has not completed its
restoration within six (6) months of such election, Tenant may terminate this
Lease; or

 

(ii)                                  To
terminate this Lease, then Tenant shall surrender possession of the Leased
Premises to Landlord and the rentals and other sums payable hereunder shall be
prorated on a per diem basis to the date Tenant surrenders possession of the Leased
Premises and adjusted between Landlord and Tenant and, upon receipt of payment
by the party due to be paid under such adjustment, this Lease shall terminate
with no further obligations, rights or duties surviving between the parties
hereto except as otherwise specifically provided for herein.  Notwithstanding anything contained in this Section 18
to the contrary, if more then twenty-five percent (25%) of the Leased Premises
is damaged by a Casualty, and, as a result Tenant is unable after exercising
reasonable efforts to conduct its business at the Leased Premises in
substantially the same manner as before the Casualty, Tenant shall be permitted
to terminate this Lease upon thirty (30) days prior written notice, or
immediately upon notice from Landlord that Landlord has elected to restore the Leased
Premises as aforesaid.

 

SECTION 19.                          CONDEMNATION.

 

19.1.                        If the
Leased Premises is taken by eminent domain, condemnation or public authority or
title thereto being transferred to a public authority in lieu of the completion
of a formal condemnation proceeding (“Condemnation”), then the rights of the
parties shall be determined as follows:

 

(a)                                  If
less than the entire Leased Premises is taken by Condemnation, then Landlord
shall have the option to either terminate this Lease or make such repairs, restoration
and improvements as shall be necessary to make the remainder of the Leased
Premises adequate to permit Tenant to carry on its business to substantially
the same extent and with substantially the same efficiency as before the
Condemnation.  Notwithstanding the
foregoing, if in Tenant’s reasonable judgment, Landlord will be unable to
repair and restore the Leased Premises to the foregoing condition.  Tenant shall be permitted to terminate this
Lease upon delivery of written notice to Landlord.  Landlord’s option shall be exercised by
Landlord’s written notice to Tenant within ten (10) days after the date on
which Tenant is required to yield possession of that portion of the Leased
Premises taken by the Condemnation or the title thereto vests in the condemning
authority, whichever event shall first occur.  If the election is:

 

(i)                                     To
restore the Leased Premises, the restoration shall be completed by Landlord, at
its expense, as promptly as reasonably possible, and during the restoration
period

 

 

Tenant’s
liability for Rent and other sums payable by Tenant hereunder shall be reduced
by that amount which bears the same ratio to Rent and other sums payable
hereunder as the area of the Building rendered unsuitable for the normal
operation of Tenant’s business bears to the entire area of the Building; and
for the balance of the Term of this Lease, Tenant’s liability for Rent and the
other sums payable hereunder shall be reduced by that amount which bears the
same ratio to the Rent and other sums as the area of the Building taken by the
Condemnation bears to the entire area of the Building.

 

(ii)                                  To
terminate this Lease, the rentals and other sums payable hereunder shall be
prorated and adjusted between Landlord and Tenant on a per diem basis to the
date Tenant is required to yield possession of that portion of the Leased
Premises taken by the Condemnation or the title thereto vests in the condemning
authority, whichever event shall first occur, and, upon receipt of payment by
the party due to be paid under such adjustment, this Lease shall be null and
void with no further obligations, rights or duties surviving between the parties
hereto except as otherwise specifically provided for herein.

 

(b)                                 If
the entire Leased Premises is taken by Condemnation nation, then this Lease
shall terminate effective as of the date Tenant in required to yield possession
of the Leased Premises or the title to the Leased Premises vests in the
condemning authority, whichever event shall first occur.  Upon such termination, Tenant shall surrender
possession of the Leased Premises to Landlord and the rentals and other sums
payable hereunder shall be prorated and adjusted between Landlord and Tenant on
a per diem basis to the date of termination and, upon receipt of payment by the
party due to be paid under such adjustment, this Lease shall be null and void
with no further obligations, rights or duties surviving between the parties
hereto except as otherwise specifically provided for herein.

 

19.2.                        In the
event either party terminates this Lease pursuant to the provisions of this section 19,
Tenant shall have no claim against Landlord nor the condemning authority for
the value of any leasehold improvement or any unexpired term of the Lease and
rent shall be adjusted to the date of such termination.  In the event of any condemnation or similar
taking, Tenant shall not be entitled to any part of the amount paid for such
condemnation and Landlord shall receive the full amount of such award, Tenant
hereby expressly waiving any right or claim to any part thereof.  Notwithstanding the foregoing, nothing herein
shall be deemed to prevent Tenant from claiming and receiving from the
condemning authority, if legally payable, compensation for the taking of Tenant’s
own tangible property and damages for Tenant’s loss of business, business
interruption, or removal and relocations.  Landlord shall have full right, without
interference from Tenant to conduct the defense of such proceedings and to
settle the same, and any payment upon Landlord’s execution of a deed on
settlement of said proceedings shall be deemed to be an award for the purposes
hereof.  Tenant, upon request of
Landlord, hereby agrees to join in the execution of any deed necessitated by
such proceeding or required to settle the same, and such deed shall have the
effect of a final judgment.

 

SECTION 20.                          RIGHT TO PERFORM.

 

If Tenant shall at
any time fail to pay any amount or perform any of its covenants and agreements
in accordance with the provisions of this Lease, Landlord may cure such default
on behalf of Tenant, but be under no obligation to do so, in which event Tenant
shall reimburse

 

 

Landlord
all sums paid to effect such cure, together with interest thereon at the rate
of five percent (5.0%) greater than the prime rate of interest of Maryland
National Bank, N.A. in effect from time to time per annum until paid.  All sums paid by Landlord under this Section shall
be treated as additional rent hereunder, and in order to collect any
reimbursement to which Landlord may become entitled, Landlord shall have all
the rights and remedies available under this Lease or by law in the case of
nonpayment of rent.  Landlord shall have
no liability to Tenant for any lose or damages resulting from Landlord’s action
hereunder.

 

SECTION 21.                          ACCESS TO LEASED PREMISES.

 

Landlord reserves
the right to enter upon the Leased Premises upon forty-eight hours prior notice
for the purpose of inspecting the Leased Premises and to remedy defaults by
Tenant in the maintenance of the Leased Premises; provided that no notice shall
be required in emergency situations.  For
such purpose, Landlord shall have keys to all locks to buildings on the Leased
Premises.  Tenant shall not change the
locks to any of the buildings on the Leased Premises without the prior written
consent of Landlord, and if such consent is given, Tenant shall immediately
furnish to Landlord keys to such new locks.  The exercise by Landlord of any rights under
this Section shall not be deemed an eviction or disturbance of Tenant’s
use and possession of the Leased Premises.

 

SECTION 22.                          ASSIGNMENT AND SUBLETTING.

 

Tenant shall not,
without the prior written consent of Landlord (which shall not be unreasonably
withheld), assign this Lease in whole or in part, (including by merger,
consolidation, liquidation or otherwise by operation of law) or sublet all or
any part of the Leased Premises, or permit others to use the Leased Premises.  Consent by Landlord to any assignment or
subletting shall not constitute a waiver of the necessity for Landlord’s
consent to any subsequent assignment or subletting.  Notwithstanding any assignment or sublease,
Tenant shall remain fully liable on this Lease and shall not be released from
performing any of the terms, covenants and conditions of this Lease unless
released in writing by Landlord.

 

SECTION 23.                          SUBORDINATION OF LEASE.

 

Tenant agrees that
this Lease is, and shall be, subject and subordinate to the lien of any bona
fide mortgages or deeds of trust that may now or at any time hereafter be
placed against the Leased Premises.  Tenant
agrees, at any time hereafter, on demand, to execute any instruments, releases
or other documents that may be required by Landlord for the purpose of
subjecting and subordinating this Lease to the lien of any mortgage or deed of
trust, whether original or substituted.  Notwithstanding
anything to the contrary contained herein, if Tenant is not in default, or a
condition does not exist which would with the mere passage of time result in a
default, at the time of (i) any mortgage hereinafter placed against the Leased
Premises, or (ii) sale as described below at Section 25, Landlord shall
obtain from any mortgagee or purchaser a covenant of non-disturbance granted to
Tenant on conditions reasonable acceptable to Tenant, and any such mortgagee or
purchaser shall have no right to terminate this Lease.

 

 

SECTION 24.                          ESTOPPEL CERTIFICATE.

 

Tenant agrees that
at any time and from time to time, upon request in writing from Landlord, to
promptly execute, acknowledge and deliver to Landlord a statement in writing
(an “Estoppel Certificate”) certifying that (i) the Lease is unmodified and in
full force and effect (or if there have been modifications, that the Lease is
in full force and effect as modified and stating the modifications), (ii) the
dates to which the Basic Rent and other sums payable hereunder have been paid,
(iii) Tenant knows of no default of Landlord under the Lease, and (iv) there
exists no offset or defense against the enforcement of any provision of the
Lease by Landlord (or stating those claimed by Tenant).

 

SECTION 25.                          FUTURE CONVEYANCES,
PERSONAL LIABILITY OF LANDLORD, ATTORNMENT.

 

In the event
Landlord or any successor-owner of the Leased Premises shall convey or
otherwise dispose of the Leased Premises, all liabilities and obligations of
Landlord or the successor-owner as landlord under this Lease shall terminate
upon the conveyance or disposal.  Tenant
shall, in the event of any assignment, sale or other transfer of the interest
of Landlord or any successor-owner in the Leased Premises, attorn to the
successor-owner and recognize such successor-owner as the Landlord under this
Lease.

 

SECTION 26.                          TENANT’S DEFAULT.

 

26.1.                        The
following shall be deemed a default by Tenant under the terms of this Lease
(each of which shall be referred to individually as an “Event of Default” and
collectively as “Events of Default”):

 

(a)                                  If
a receiver or trustee is appointed for the property of Tenant or any guarantor
of this Lease, either in bankruptcy or in equity or in any other court, and the
Order appointing such receiver or trustee is not vacated within thirty (30)
days of the date of such Order.

 

(b)                                 The
making of an assignment by Tenant or any guarantor for the benefit of its
creditors.

 

(c)                                  The
filing of a petition by Tenant or any guarantor of this Lease to effect a
composition or an extension of time to pay its debts.

 

(d)                                 The
filing of a petition in bankruptcy by or against Tenant or any guarantor of
this Lease.

 

(e)                                  The
filing of a petition by Tenant or any guarantor of this Lease for its reorganization
under any bankruptcy law or any other law.

 

(f)                                    The
suspension of business by Tenant or any act by Tenant amounting to a business
failure.

 

 

(g)                                 The
abandonment of the Leased Premises by Tenant or permitting this Lease to be
taken under a writ of execution.

 

(h)                                 Failure
by Tenant to pay when due the rent or any other sums due hereunder.

 

(i)                                     Failure
by Tenant to perform any other term, covenant, agreement or condition of this
Lease on the part of Tenant to be performed for a period of thirty (30) days
after written notice thereof by Landlord to Tenant, or if such failure is of a
nature that cannot be completely cured or remedied within said thirty (30) day
period, Tenant shall have failed to diligently commence the cure or remedy of
such failure within the thirty (30) day period and thereafter prosecute such
cure or remedy with reasonable diligence and good faith to completion,

 

26.2.                        Upon the
occurrence of an Event of Default, Landlord shall, at its election, have the
immediate right of re-entry to the Leased Premises and may remove all persons
and property from the Leased Premises using such force as may be necessary, all
without service of notice or resort to legal process and without being guilty
of trespass or becoming liable for any loss or damage which may be occasioned
thereby.  Any property removed from the
Leased Premises and stored in a public warehouse or elsewhere shall be at the
cost of and for the account of Tenant.

 

26.3.                        Should
Landlord elect to re-enter, as herein provided, or should it take possession
pursuant to legal proceedings or pursuant to any notice provided for by law, it
may either terminate this Lease or it may from time to time without terminating
this Lease, make such alterations and repairs as may be necessary in order to relet
the Leased Premises or any part thereof for such term or terms (which may be
for a term extending beyond the term of this Lease) and at such rent and upon
such terms and conditions as may be reasonable under the circumstances.  Upon each such reletting all rents received by
Landlord from such reletting shall be applied, first, to the payment of any
indebtedness other than Basic Rent and other sums due hereunder  from Tenant to Landlord; second, to the
payment of any costs and expenses of such reletting including brokerage fees
and reasonable attorney’s fees and costs of such alterations and repairs deemed
by Landlord in the exercise of its reasonable judgment to be necessary for
reletting; third, to the payment of Rent and other sums due and unpaid hereunder;
and the residue, if any, shall be held by Landlord and applied in payment of
future Rent and other sums payable hereunder as such sums become due and
payable.  If the rents received from any
reletting during any month are lees than the Rent and other sums to be paid
during that month by Tenant hereunder, Tenant shall pay any deficiency to
Landlord.  Any deficiency shall be
calculated and paid monthly.  No re-entry
or taking of the Leased Premises by Landlord shall be construed as an election
on its part to terminate this Lease unless a written notice of such intention
is given by Landlord to Tenant or unless the termination hereof is decreed by a
court of competent jurisdiction.  Notwithstanding
any reletting without termination, Landlord may at any time thereafter elect to
terminate this Lease for any breach and, in addition to any other remedies it
may have, it may recover from Tenant all damages it may incur by reason of such
breach, including the cost of recovering the Leased Premises and reasonable
attorney’s fees, all of which amounts shall be immediately due and payable by
Tenant to Landlord.  In the event
Landlord elects to relet the Leased Premises without termination through the
end of the Term of this Lease, within one (1) month after the date originally
fixed herein for the expiration of the Term

 

 

of
this Lease, Landlord shall give a written statement to Tenant showing all sums
received by Landlord by way of damages, claims and rents from Tenant and from
others to whom the Leased Premises may have been relet, and all expenses
incurred by Landlord with respect to securing said damages, claims, rents and
reletting, and, in the event that Tenant has paid a greater sum of money than
is due as determined by the terms of this Lease.  Landlord shall promptly refund to Tenant any
excess.

 

26.4.                        In the
event that suit shall be brought for recovery of possession of the Leased
Premises, for the recovery of Rent or any other amount due under the provisions
of this Lease or because of the breach of any other covenant herein contained
on the part of Tenant to be kept or performed and a breach shall be
established, Tenant shall pay to Landlord all expenses incurred therefor,
including reasonable attorney’s fees.

 

26.5.                        Tenant
hereby expressly waives any and all rights of redemption granted by or under
any present or future laws in the event of Tenant’s being evicted or
dispossessed for any cause or the event of Landlord’s obtaining possession of
the Leased Premises by reason of the violation by Tenant of any of the
covenants or conditions of this Lease or otherwise.

 

26.6.                        It is
agreed that, for the purpose of any suit brought or based on this Lease, this
Lease shall be construed to be a divisible contract, to the end that successive
actions may be maintained on this Lease as successive periodic sums shall
mature under this Lease, and it is further agreed that failure to include in
any suit or action any sum or sums then matured shall not be a bar to the
maintenance of any suit or action for the recovery of such sum or sums so
omitted.

 

26.7.                        Tenant
agrees that all property on the Leased Premises, and for thirty (30) days after
removal, shall be liable to distress for rent and Tenant waives the benefit of
all laws exempting Tenant’s property from levy and sale either on distress for
rent, or under execution of a judgment obtained in a suit therefor.

 

SECTION 27.                          REMEDIES CUMULATIVE.

 

No mention in this
Lease of any specific right or remedy shall preclude Landlord or Tenant from
exercising any other right or from having any other remedy or from maintaining
any action to which it may be otherwise entitled either at law or in equity.

 

SECTION 28.                          WAIVER.

 

The failure of
Landlord or Tenant to insist in any one or more instances upon a strict
performance of any covenant of this Lease or the waiver by either party of any
breach of any term, covenant or condition herein contained shall not be deemed
to be a waiver or relinquishment of such term, covenant or condition or any
subsequent breach of the same or any other term, covenant or condition herein
contained.  The subsequent acceptance of
rent hereunder by Landlord shall not be deemed to be a waiver of any previous
breach by Tenant of any term, covenant, or condition of this Lease, other than
the failure of Tenant to pay the particular rental so accepted, whether or not
Landlord had knowledge of the previous breach at the time of acceptance of the
rent.

 

 

SECTION 29.                          DELINQUENT RENTS.

 

If Tenant shall
fail to pay any installment of Rent or other sum due hereunder within five (5)
days of the date such sum is due, then a delinquency service charge equal to
five percent (5.0%) of the amount overdue shall become immediately due and
payable to Landlord as liquidated damages for Tenant’s failure to make prompt
payment and shall be deemed to be additional rent hereunder.  If Tenant shall fail to pay when due the Rent
or any other sum required by the terms of this Lease to be paid by Tenant,
then, upon the happening of any such event, Tenant agrees to pay to Landlord
interest on such sum or sums at the rate of five percent (5.0%) greater than
the prime rate of interest of Maryland National Bank, N.A. in effect from time
to time on the amount past due (including without limitation the delinquency
service charges), beginning from the date which is ten (10) days after the date
that the payment was due until it is paid.

 

SECTION 30.                          TERMINATION OF LEASE.

 

30.1.                        This Lease
and the tenancy hereby created shall cease and terminate at the end of the Term
hereof or any extension or renewal hereof without the necessity of any notice
from either Landlord or Tenant, and Tenant hereby waives notice to remove and agrees
that Landlord shall be entitled to the benefit of all provisions of law
respecting the summary recovery of possession of the Leased Premises from a
tenant holding over to the same extent as if statutory notice were given.  For the period of eight (8) months prior to
the expiration of the Term of this Lease or any renewal or extension hereof,
Landlord shall have the right to display on the exterior of the Leased Premises,
or in any window or doorway thereof, the customary “For Rent” sign and during
such period Landlord may show the Leased Premises and all parts thereof to
prospective tenants during normal business hours.

 

30.2.                        If Tenant
shall not immediately surrender possession of the Leased Premises at the
termination of this Lease or any extension or renewal thereof, Tenant shall
become a tenant from month to month, provided Rent shall be paid to and
accepted by Landlord, in advance, at one and one-half times (1-1⁄2) the rate of
rental payable hereunder just prior to the termination of this Lease; and
Tenant hereby agrees that all obligations of Tenant and all rights of Landlord
applicable during the Term of this Lease shall be equally applicable during any
period of subsequent occupancy, whether or not a month to month tenancy shall
have been created as aforesaid; provided, however, that should the parties be
mutually engaged in good faith negotiations concerning an extension of this
Lease, Tenant shall be responsible for Rent at the rate existing at the
termination date of this Lease.

 

30.3.                        Tenant
shall have the option to renew this lease at the expiration of the lease term
set forth in Section 1.2 for the term and for the rents set forth in
Exhibit C if Tenant is not in default hereunder at the time of the exercise of
such option to renew.  Tenant shall
exercise its right and option to renew by giving Landlord at least one hundred
eighty (180) days written notice prior to the end of the initial term.  The renewal shall be upon all the same terms
and conditions expressed in this lease except as to lease term and amount of
rent.

 

 

SECTION 31.                          ABANDONED PERSONAL
PROPERTY.

 

Upon the
termination of this Lease or any extension or renewal hereof, whether by
expiration or earlier termination pursuant to the provisions of this Lease, any
personal property remaining in the Leased Premises shall be deemed to have been
abandoned, and may either be retained by Landlord as its property or be disposed
of in such manner as Landlord may determine.  Notwithstanding the foregoing, Tenant is not
hereby relieved of its obligations under Sections 10, 11 and 12 hereof to
remove all personal property from the Leased Premises and surrender the Leased
Premises in the good order and condition as existing at the commencement of
this Lease, reasonable wear and tear excepted.  If any personal property or part thereof shall
be sold by Landlord pursuant to this Section.  Landlord may receive and retain the proceeds
of such sale as Landlord’s property.

 

SECTION 32.                          ACCORD AND SATISFACTION.

 

No payment by
Tenant or receipt by Landlord of a lesser amount than the monthly Rent or other
sums herein stipulated shall be deemed to be other than an account of the
earliest stipulated Rent or other sum, nor shall any endorsement or statement
on any check or in any letter accompanying any check or payment be deemed an
accord and satisfaction, and Landlord may accept such check or payment without
prejudice to Landlord’s right to recover the balance of such Rent or other sum
due hereunder or pursue any other remedy provided in this Lease.

 

SECTION 33.                          BROKER’S COMMISSIONS.

 

Landlord and
Tenant represent and warrant that neither has had dealings with any broker or
agent in connection with this Lease or the Leased Premises except Broker (as
designated in Section 1.7), and each agrees to hold harmless and indemnify
each other from and against any and all cost, expense or liability for any
compensation, commissions and charges claimed by any broker or agent with
respect to the Leased Premises, this Lease or the negotiation hereof, other
than the Broker.

 

SECTION 34.                          MISCELLANEOUS PROVISIONS.

 

34.1.                        It is
mutually agreed that any notice required or permitted by this Lease to be given
by either party to the other may be either personally delivered or sent by
certified or registered mail, properly addressed and prepaid, return receipt
requested, to Landlord’s Notice Address, if to Landlord, and to Tenant’s Notice
Address, if to Tenant, unless another address shall have been substituted by
notice in writing given by Landlord to Tenant or given by Tenant to Landlord.  The date of the giving of any notice shall be
the date of depositing the notice in the mail (which may be evidenced by the
postmark) or date of personal delivery.

 

34.2.                        No change
or modification of this Lease shall be valid unless in writing and signed by
the parties.  This Lease contains the
entire agreement between the parties and there are no promises, agreements,
conditions, undertakings, warranties or representations, oral or written,
expressed or implied between them other than herein set forth.  This Lease is intended by the parties to be an
integration of all prior or contemporaneous promises, agreements, conditions
and undertakings between them.

 

 

34.3.                        All
references in this Lease to “Term”, “the Term of this Lease” or a phrase of
similar context shall mean both the initial term and any renewal or extension
term; and “rent” shall mean both the Basic Rent and any and all other sums
payable hereunder as rent.

 

34.4.                        This Lease
and the covenants and conditions herein contained, shall inure to the benefit
of and be binding upon Landlord, its successors and assigns, and shall inure to
the benefit of and be binding upon Tenant, its successors and assigns.

 

34.5.                        The
captions and headings throughout this Lease are for convenience only and the
words contained therein shall, in no way, be held or deemed to define, limit,
describe, explain, modify, amplify or add to the interpretation, construction
or meaning of any provision or the scope or intent of this Lease, or in any way
affect this Lease.

 

34.6.                        [Intentionally
Deleted]

 

34.7.                        Nothing
contained in this Lease shall be deemed or construed by the parties hereto, or
by any third party, as creating a relationship of principal and agent, or a
partnership or joint venture between the parties hereto, it being understood
and agreed that nothing herein shall be deemed to create any relationship
between the parties hereto other than the relationship of Landlord and Tenant.

 

34.8.                        If any
clause or provision of this Lease is illegal, invalid or unenforceable under
present or future laws affective during the Term of this Lease, then and in
that event, it is, the intention of the parties hereto that the balance of the
provisions of this Lease shall not be affected thereby.

 

34.9.                        This Lease
and the terms and provisions hereof shall be construed and determined in
accordance with the laws of State of Michigan.

 

34.10.                  Whenever used
herein, the singular number shall include the plural, and the neuter gender
shall include the feminine and masculine genders.

 

IN WITNESS
WHEREOF, the parties hereto have respectfully signed and sealed these presents,
the day and year first above written.

 

	
   

  	
   

  	
   

  	
  Landlords:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ATTEST:

  	
   

  	
  TAYLOR
  LAND & CO.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/ [ILLEGIBLE]

  	
   

  	
  /s/ [ILLEGIBLE]

  	
   

  	
  (SEAL)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ATTEST:

  	
   

  	
  Tenant:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  ACCURIDE
  CORPORATION

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/ [ILLEGIBLE]

  	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  	
   

  	
  (SEAL)

  
							

 

 

STATE
OF MARYLAND:

 

COUNTY
OF BALTIMORE:

 

I HEREBY CERTIFY
that on this 6th day of  December,
1989, before me, the subscriber, a Notary Public of the State of Maryland,
personally appeared Carl T. Julio, known 
to me (or satisfactorily proven to me), and acknowledged himself to be
the General Partner of Taylor Land & Co., and being duly authorized to do
so, executed the foregoing instrument for the purposes therein contained, by
himself as General Partner.

 

	
   

  	
  /s/Lloyd N. McNutt

  
	
   

  	
  Notary
  Public

  

 

My
Commission Expires:  July 1, 2990

 

 

STATE
OF KENTUCKY

 

COUNTY
OF HENDERSON:

 

I HEREBY CERTIFY
that on this 4th day of December, 1989, before me, the subscriber, a
Notary Public of the State of Maryland, personally appeared R. F. Hoffman,
known to me (or satisfactorily proven to me), and acknowledged himself to be
the V.P. & C.F.O. of Accuride Corporation and that he as V.P. & C.F.O.
of such corporation, being duly authorized to do so, executed the foregoing
instrument for the purposes therein contained, by signing the name of the
Corporation by himself as V.P. & C.F.O..

 

	
   

  	
  /s/ Sara Williams

  	
   

  
	
   

  	
  Notary
  Public

  

 

My
Commission Expires:

 

 

 

PROPERTY DESCRIPTION

 

Land in the City of Taylor, Wayne County, Michigan
described as: All that part of the East 1⁄2 of Section 3, Town 3 South,
Range 10 East, City of Taylor, Wayne County, Michigan, and described as:
Beginning at a point on the Westerly line of Norfolk and Western Railway
Company Right of Way, 100 feet wide (formerly the Wabash Railroad Company),
which point is distant South 88 degrees 11 minutes 55 seconds East 60.00 feet
and South 1 degree 45 minutes 30 seconds West 363.69 feet and South 88 degrees
14 minutes 30 seconds East 2779.19 feet and South 1 degree 45 minutes 30
seconds West 152.13 feet and North 74 degrees 38 minutes 00 seconds East 559.82
feet from the West 1⁄4 corner of said Section 3; thence North 1 degree 45
minutes 30 seconds East 992.33 feet; thence along the south line of a Roadway
Easement which lies 70.00 feet, measured at right angles, South of and parallel
to the South line of the Detroit Industrial Expressway, South 88 degrees 55
minutes 10 seconds East 487.50 feet; thence along the Westerly line of the
cul-de-sac right of way, South 21 degrees 56 minutes 38 seconds East 195.57
feet; thence North 88 degrees 55 minutes 10 seconds West 78.62 feet; thence South
1 degree 45 minutes 30 seconds West 667.89 feet; thence along the Northerly
line of said Norfolk and Western Railway Co. Right of Way South 74 degrees 38
minutes 00 seconds West 510.08 feet to the point of beginning.

 

 

BASIC MONTHLY RENTALS

 

 

	
  Period

  	
   

  	
  Monthly Rental

  	
   

  
	
  10/19/89 — 11/19/89

  	
   

  	
  $0

  	
   

  
	
  11/19/89 — 11/30/89

  	
   

  	
  $7,250.00

  	
   

  
	
  12/01/89 — 11/30/92

  	
   

  	
  $18,125.00

  	
   

  
	
  12/01/92 — 11/30/95

  	
   

  	
  $19,212.50

  	
   

  
	
  12/01/95 — 11/30/98

  	
   

  	
  $20,365.25

  	
   

  
	
  12/01/98 — 11/30/99

  	
   

  	
  $21,587.16

  	
   

  

 

It is agreed and understood that the total rental to
be paid by Tenant to Landlord over the Term is Two Million Three Hundred
Forty-Three Thousand Five Hundred Ninety-Five Dollars and Ninety-Two Cents
($2,343,595.92).

 

 

ADDENDUM #1

Option to Renew

 

The provisions set forth in this Addendum are hereby
incorporated into the Lease dated October 19, 1989 by and between TAYLOR
LAND & CO. (“Landlord”) and ACCURIDE CORPORATION (“Tenant”) and shall have
the same force and effect as if set forth in the body of the Lease.  To the extent that the provisions of this
Addendum are inconsistent with those of the Lease, the provisions of this
Addendum shall control.  Unless otherwise
defined herein, all terms used in this Addendum shall have the same definition
as is given thereto in the body of the Lease.

 

“Provided that no event of default has occurred which
remains uncured (or for which a cure has not been commenced and being
diligently pursued) either when the notice referred to hereinbelow is given or
on the date on which such renewal term would otherwise commence, the Tenant
shall be entitled to renew this Lease for an additional term (“the first
renewal term”) of ten (10) years, commencing on the day immediately after the
date on which (but for such renewal) the term would have expired and terminating
on the tenth (10th) anniversary of such day (which anniversary
shall, if this Lease is so renewed, thereafter be the expiration date for all
purposes of the provisions of this Lease as applicable thereafter), by and only
by giving to the Landlord express, written notice of such renewal by not less
than six (6) months before the date on which the renewal term is to commence
(in which event the term shall automatically be deemed to have been extended by
the length of the renewal term, and all references to “the term” in the
provisions of this Lease shall thereafter mean the term as so extended).  The terms and conditions for such first
renewal term shall all be as set forth in the body of this Lease, other than
the annual rental, which shall be as follows:

 

 

	
  Years

  	
   

  	
  Monthly Rental

  	
   

  
	
  1, 2

  	
   

  	
  $21,587.16

  	
   

  
	
  3, 4, 5

  	
   

  	
  $22,882.39

  	
   

  
	
  6, 7, 8

  	
   

  	
  $24,255.33

  	
   

  
	
  9, 10

  	
   

  	
  $25,710.65

  	
   

  

 

 

	
   

  	
  Initials/Date

  
	
   

  	
   

  
	
   

  	
  Landlord:

  	
  /s/ [illegible]

  
	
   

  	
  Tenant:

  	
  /s/ [illegible]

  

 

 

May 25, 1999

 

Mr. Carl
Grenadier 

The Package Company 

Suite 204

17348 West 12 Mile Road 

Southfield, MI 48076

 

Re:  Renewal Option on Accuride Lease

 

Dear Mr.
Grenadier:

 

The purpose of
this letter is to provide notice, pursuant to Section 30.3 of the lease
agreement dated October 19, 1989, by and between Taylor Land & Co. and
Accuride Corporation, that Accuride, as Tenant under such lease, desires to
exercise its right and option to renew the lease for an additional ten (10)
year period.

 

We look
forward to our continuing business relationship and desire to have Larry Taylor
of our office meet with you as soon as possible to discuss various repair and
maintenance provisions described under the lease.  Please contact us with any questions or
comments.

 

	
  Sincerely,

  
	
   

  
	
  ACCURIDE
  CORPORATION

  
	
   

  
	
   

  
	
  William P.
  Greubel

  
	
  President and
  CEO

  

 

WPG/lp  

Df/N:/Taylor lease

 

State of
Kentucky)

 

County of
Henderson)

 

On May 25, 1999, before me, a Notary Public, in and for said County and
State, personally appeared William P. Greubel, known to me to be the
person whose name is subscribed to the within instrument, and acknowledged that
he executed the same.

 

WITNESS my hand and official seal.

 

	
   

  	
  Notary Public, Kentucky
  State-At-Large

  	
   

  
	
   

  	
  My Commission Expires September 19, 2002

  	
  /s/ Sara Williams

  	
   

  
	
   

  	
   

  	
  Notary Public

  	
   

  

 

FIRST AMENDEMENT TO LEASE AGREEMENT

 

This First Amendment to Lease Agreement (“Lease
Amendment”), is entered into between The Package Company, L.L.C., a Michigan
limited liability company, as successor in interest to Taylor Land & Co., a
Maryland general partnership (“Landlord”), and Accuride Corporation
(“Tenant”).  The following statements are
a material part of this Lease Amendment:

 

Recitals
of Facts Underlying the Lease Amendment

 

A.                                   By
Lease dated October 19, 1989, ( “Lease”), Landlord’s predecessors in
interest  leased
to Tenant the demised premises described in the Lease and attached as Exhibit A
to this Lease Amendment (the “Leased Premises”), for an initial term of ten
(10) years, one (1) month and twelve (12) days.

 

B.                                     Thereafter,
Tenant exercised its option to renew the Lease for an additional ten (10) year
term.

 

C.                                   Section 12
of the Lease states that the “Landlord shall maintain the roof, pavement, rail
siding and exterior walls of the Leased Premises, including all pavement and
rail siding servicing the warehouse complex.”

 

D.                                    Attached
and incorporated into this Lease Amended as Exhibit B is a drawing of the
Leased Premises designed to show the paved areas and retaining walls of the
Leased Premises (“Pavement”), together with photographs of the Pavement taken
in September, 2003.  Exhibit B shows that
the Pavement and retaining walls to the Leased Premises have been in a state of
disrepair.  Exhibit B also defines the
locations where repair is necessary.

 

E.                                      Landlord
contends that it is not responsible under the Lease for maintaining the
Pavement, or that Tenant must reimburse Landlord for the cost of Landlord’s
maintenance of the Pavement.  Tenant
contends that Landlord is responsible under the Lease for both the actual
maintenance and the cost of maintenance of the Pavement (“Dispute”).

 

F.                                      In
order to resolve the Dispute and complete the repairs prior to the onset of
inclement weather in 2003, Landlord and Tenant have agreed to amend the Lease
as set forth in this Lease Amendment.

 

THEREFORE, in consideration of the mutual promises and covenants
contained in this Lease Amendment, and other good and valuable consideration,
the parties intending to be legally bound, agree to amend the Lease as follows:

 

1.               The
Recitals of Facts Underlying the Lease Amendment are incorporated into this
paragraph 1 by this reference.

 

2.               Notwithstanding
any contrary provisions contained in the Lease, and except as provided in this
Lease Amendment, the Landlord is solely responsible for the maintenance, repair
and replacement of the roof, pavement, rail siding and exterior walls
(including the retaining walls

 

 

located in Area 1 depicted on Exhibit B) of the Leased Premises,
including all pavement and rail siding servicing the warehouse complex, and the
Landlord is responsible for all costs, fees and expenses associated with such
maintenance, repair and replacement.

 

3.               Landlord
shall, on or before October 22, 2003, commence repair and replacement of
the Pavement in the areas depicted in Exhibit B, including but not limited to
the retaining walls within the loading dock area depicted on Exhibit B.  With reference to Exhibit B, Landlord shall
instruct its contractors that the Pavement in the area labeled Area 1 (shaded
with blue rectangles) shall be excavated and replaced with an appropriate base and
eight inches (8”) of industrial quality concrete (7 bag with wire mesh
reinforcement).  Area 1 is approximately
2,625 square feet and has concrete retaining walls at its eastern and western
edges (the “Retaining Walls”).  As part
of the work in Area 1, Landlord shall instruct its contractors to remove and
replace the existing retaining walls with concrete retaining walls of
industrial quality (7 bag with reinforcement rod). The work in Area 1 shall
commence on October 22, 2003.  The
removal and replacement of the concrete in Area 1 shall be completed within two
(2) to three (3) days of the commencement date, weather permitting. The period
of time necessary for the concrete to cure in Area 1 (sufficient to allow
Tenant to again use the loading docks in Area 1) shall be seven days after the
concrete has been poured in Area 1.  That
portion of Area 2 that is shaded with blue rectangles is approximately 7,590
square feet (the “Area 2 Concrete Work”). 
For the Area 2 Concrete Work, Landlord’s contractors shall excavate the
7,590 square feet and replace such excavation in this portion of Area 2 with an
appropriate base and eight inches (8”) of industrial quality concrete (7 bag
with wire mesh reinforcement).  The Area
2 Concrete Work shall commence within six (6) days of the completion of the
work in Area 1 and shall be completed within six (6) days.

 

Promptly after completion of the Area 2 Concrete Work,
the remaining portion of Area 2 shall be excavated to the north to
approximately one (1) to two (2) feet beyond where the concrete originally
existed (see Exhibit A to the Lease). 
This portion of Area 2 (the “Area 2 Asphalt Work”) shall be replaced
with a solid base of three (3) inch stone, covered by seven (7) inches of “1 1⁄2
inch down” stone, and covered by four (4) inches of asphalt, type 1100 L (2
inches) and 1100 T (2 inches).  Landlord
shall instruct its contractors to trench and bury at such depths as the City of
Taylor requires, that portion of the existing sump pump pipe that currently
runs or should run from the eastern edge of Area 2 to the ditch along the
eastern border of the property.

 

With reference to Areas 4 through 16 and Areas A and
B, Landlord shall instruct its contractors to perform the same work as in the
Area 2 Asphalt Work, excepting that the existing asphalt shall be pulverized
instead of excavated.  All existing
asphalt within Areas 4 through 16 and Areas A and B (as bounded by red lines on
Exhibit B), shall be replaced and not just the deteriorated portions depicted
by the circles within Areas 4 through 16 and Areas A and B.  The small portion of concrete near Area 16
shall not be removed and the asphalt installed around and about such area of
concrete shall not be higher or lower than the current grade of such concrete.

 

Spot patching (removal of all loose asphalt to be
filled in with new type 1100 L and 1100 T asphalt, and “capping” over all
cracked areas of asphalt) shall be performed as necessary on all remaining
areas of asphalt, including but not limited to Areas 17 through 22.

 

 

All asphalt work shall begin promptly after completion
of the Area 2 Concrete Work, and shall be completed within a reasonable period
of time thereafter, not to exceed one month, weather permitting.  Landlord shall use only appropriately
licensed and insured contractors.  The
concrete and asphalt repair and replacement described in this paragraph shall
be collectively referred to as the “Work.” 
Under no circumstances shall any portion of the Work interfere with
Tenant’s access and operations, provided however, that Tenant acknowledges and
agrees that during the Area 1 Work, Tenant shall not be able to use the loading
docks within Area 1, and that during the Area 2 Concrete Work, Tenant shall not
be able to use the loading docks in that portion of Area 2.  Because Tenant’s use of the loading docks in
such areas will be temporarily suspended, time is strictly of the essence for
the commencement and completion of the concrete Work in Areas 1 and 2.

 

4.               Upon
completion of the Work to the reasonable satisfaction of Tenant, Tenant shall
pay to Landlord Forty-Eight Thousand ($48,000.00) Dollars, in monthly
installments of Two Thousand ($2,000.00) Dollars each, on the first day of each
month after completion of the Work, for a total of twenty-four months.  Payment of such amounts by Tenant shall be
deemed payment of amounts in settlement of the Dispute and as consideration for
this Lease Amendment, and not as rent under the Lease.

 

5.               Notwithstanding
anything in the Lease or this Lease Amendment to the contrary, three years
after completion of the Work to the reasonable satisfaction of Tenant, Landlord
and Tenant shall be jointly responsible for the performance and cost of all
exterior maintenance associated with the Leased Premises as defined in this
paragraph.  For purposes of this
paragraph, “exterior maintenance” shall mean any routine maintenance and minor
repairs (i.e., any maintenance or repair the total cost of which is $3,000.00
or less) to the exterior of the building and land which make up the Leased
Premises, but not the performance and cost of major repairs or replacement
(i.e., repairs or replacement, the total cost of which exceeds $3,000.00) to
the exterior of the building and land which make up the Leased Premises.  Except as otherwise stated in this paragraph,
those items which have been expressly made the responsibility of the Landlord
or the Tenant under the Lease and this Lease Amendment shall remain the
responsibility of the Landlord or the Tenant, as the case may be; e.g., the
Landlord shall be responsible for major repairs and replacement (as defined in
this paragraph) to the exterior of the building and land which make up the
Leased Premises, including the roof, pavement, rail siding and exterior walls
of the Leased Premises, as described in Section 12 of the Lease (and for
the full cost and performance of all such exterior maintenance, repair or
replacement during the initial three year period referenced in this
paragraph).  In the event that Landlord
shall fail to meet its obligations to maintain, repair or replace as set forth
in the Lease and this Lease Amendment, Tenant shall have the right to perform
such maintenance, repair or replacement, and deduct the cost (or 50% of the
cost or routine maintenance or minor repairs after the initial three year
period) thereof from the next month (or months) rent.

 

6.               The Lease, as amended by this document,
is ratified and confirmed.  Except as
expressly modified or amended in this Lease Amendment, all terms, conditions,
and provisions of the Lease shall remain in full force and effect; provided,
however, that any other provision of the Lease shall be deemed modified as
necessary to give practical effect to the provisions of this Lease
Amendment.  To the extent that the terms
and provisions of this Lease Amendment conflict or vary with the Lease, the
terms and provisions of this Lease Amendment shall control.

 

 

7.               This Lease Amendment shall be binding
upon and inure to the benefit of the Landlord and Tenant and their respective
representatives, successors and assigns.

 

8.               This Lease Amendment may be executed in
counterparts, each of which shall be deemed an original, and all of which
together shall constitute one instrument, provided that each party hereto is
provided with a copy of this Agreement duly executed by the other.

 

9.               The signatory on behalf of Landlord and
Tenant represent and warrant to each other and to Landlord and Tenant that they
have full right, power and authority to enter into this Lease Amendment on
behalf of- Landlord and Tenant without the consent or approval of any other
entity or person and make these representations knowing that the other party
will rely thereon.

 

ACCORDINGLY, the parties, by their authorized representatives have
signed this Lease Amendment as of the date indicated below to be effective as
of October 22, 2003.

 

 

	
   

  	
  “LANDLORD”

  
	
   

  	
   

  
	
   

  	
  The Package Company, L.L.C.,

  
	
   

  	
  a Michigan limited liability company,

  
	
   

  	
  as successor in interest to

  
	
   

  	
  Taylor Land & Co., a Maryland general partnership

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
      /s/ Carl Grenadier

  	
   

  
	
   

  	
   

  	
  Charles Grenadier

  
	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
       Member

  	
   

  
	
   

  	
   

  
	
   

  	
  Dated:

  	
  November 6, 2003

  	
   

  
							

 

[SIGNATURE PAGE TO FOLLOW]

 

 

	
   

  	
  “TENANT”

  
	
   

  	
   

  
	
   

  	
  Accuride Corporation, a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
       /s/ David K. Armstrong

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Its:

  	
    Senior Vice President & General Counsel

  	
   

  
	
   

  	
   

  
	
   

  	
  Dated:

  	
        November 18, 2003

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