Document:

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                                                                   EXHIBIT 10.30

                            PURCHASE OPTION AGREEMENT

         This Purchase Option Agreement ("Agreement") is made and entered into
as of the 31st day of May, 2000 by and between Dearborn Industrial Generation,
L.L.C. ("DIG"), the Rouge Steel Company ("Rouge"), and the Ford Motor Company
("Ford"). DIG, Rouge and Ford are sometimes referred to herein collectively as
the "Parties" and each individually as a "Party".

                                    RECITALS

         WHEREAS, DIG and Rouge have entered into a Ground Lease dated as of
June 30, 1999 ("Ground Lease").

         WHEREAS, under certain circumstances, DIG has agreed to grant Rouge and
Ford, jointly or individually, the option to purchase a portion or all of DIG's
assets ("Project Assets" as defined herein) for a purchase price equal to its
Fair Market Sales Value.

         WHEREAS, under certain circumstances, Rouge has agreed to grant DIG the
option to purchase the Leased Premises for a purchase price equal to its Fair
Market Sales Value.

         WHEREAS, the Parties desire to enter into this Agreement in order to
establish, among other things, (i) the circumstances under which Rouge and/or
Ford or DIG may exercise their respective purchase option(s) and (ii) the
procedures for determining the Fair Market Sales Value of the Project Assets and
the Leased Premises.

         NOW THEREFORE, in consideration of the mutual benefits to be derived,
the representations, warranties, conditions and promises contained herein, and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Parties agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

SECTION 1.01      CERTAIN DEFINED TERMS.

         Capitalized terms used herein have the meaning assigned to them in the
Ground Lease unless otherwise defined in the text of this Agreement or as
defined below:

         (a)      Agent.  Agent is the representative of the Project Finance
Lenders.

         (b)      Fair Market Rental Value or Fair Market Sales Value. Fair
Market Rental Value or Fair Market Sales Value of the Leased Premises or the
Project Assets as of the Appraisal Date means the cash rent or cash price that
would be obtained in an arm's-length lease or sale, respectively, between an
informed and willing lessee or buyer and an informed and willing lessor or
seller, in either case under no compulsion to lease

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or purchase or sell and neither of which is related to Rouge or Ford or DIG or
any assignee or Mortgagee of the property in question, and shall be determined
as provided in Article III of this Agreement.

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         (c)      Ford/Rouge and Double Eagle Substations. All facilities for
the distribution of electricity, including but not limited to, substations,
transformers, wires, and switches owned by DIG but located west of Miller Road
on or adjacent to the Rouge Industrial Complex ("Ford/Rouge Substations") or
located on the property of Double Eagle Steel Coating Company ("Double Eagle
Substations").

         (d)      Project or Project Assets. Project or Project Assets means the
Operating Rights (as defined herein) and the approximate 550 megawatt complex of
two natural gas fired combined cycle units with heat recovery steam generators,
three blast furnace gas boilers, and one steam turbine generator, and all
ancillary transformers, transmission wires, meters, and other equipment
necessary to produce electricity, steam and treated water and to burn blast
furnace gas, in the capacities, quality and quantities required under any
Purchase and Sales Agreements; and to connect to the existing infrastructure in
the Rouge Complex. The Project includes interconnection to the Detroit Edison or
other third party electric power grid at a minimum of two points with each
circuit having sufficient capacity to supply all of the requirements of the
Rouge Complex. The term "Project" or "Project Assets" is intended to include all
Site Project Improvements and all Connecting Facilities and Easement Facilities
serving and interconnecting with the Rouge Complex and to exclude (i) any
commercial contracts for the purchase and sale of electricity, steam, or blast
furnace gas; and (ii) the Ford/Rouge Substations and Double Eagle Substations,
which shall be governed by the terms of the Electricity Sales Agreements among
the parties hereto.

         (e)      Project Finance Lender(s). Project Finance Lender(s) means any
financial institution and/or investor, other than CMS Energy Corporation or its
affiliates, which participates in a Project Financing.

         (f)      Project Financing. Project Financing means any indebtedness or
other obligations incurred by DIG to finance the construction and operation of
the Project Assets. Project Financing may include, but is not limited to,
secured or unsecured indebtedness either on a senior or subordinated basis,
issuance of any securities other than common stock of DIG, and operating and
capital leases. Project Financing shall not be limited to the initial financing
procured by DIG, but will include all subsequent financing or refinancing.

         (g)      Value. Value means either the Fair Market Rental Value or the
Fair Market Sales Value of the Leased Premises or of the Project, as the
circumstances require, as determined pursuant to Article III of this Agreement.

                                   ARTICLE II

           RIGHTS AND OBLIGATIONS OF PARTIES UPON A TERMINATION EVENT

SECTION 2.01      ROUGE'S AND/OR FORD'S PURCHASE OPTION.

         (a)      Upon the occurrence of a Termination Event, except under
Section 9.01(e) of the Ground Lease, Rouge and Ford, jointly or individually,
shall have the option to purchase all of the Project Assets owned by DIG, or any
portion of such Project Assets if the Project is not completed as of the
Termination Event, for a purchase price equal to Fair Market Sales Value,
subject to adjustment under Section 2.04. If Rouge and Ford do not exercise
their option to purchase the Project Assets or portions thereof as described
above, DIG may remove the installed equipment and restore the property to its
original condition or abandon

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the equipment with the permission of Rouge. The purchase option granted under
this Section 2.01 shall be subject to the following conditions:

                  (i)      There is no Project Financing in place; or

                  (ii)     It is the intention of DIG to procure Project
         Financing for the Project Assets. As a condition precedent to the
         closing of any Project Financing, DIG, Rouge and/or Ford, and the
         Project Finance Lenders, will enter into an amendment to this
         Agreement, if required by Project Finance Lenders ("Amended Purchase
         Option Agreement"), whereby Rouge and/or Ford will be granted the
         option to purchase the Project Assets, subject to the rights of and
         obligations owed to the Project Finance Lenders under the Project
         Financing documentation, including, but not limited to, the following
         rights afforded to the Project Finance Lenders:

                           (A)     Proceeds paid by Rouge and/or Ford under the
                  Amended Purchase Option Agreement will be transferred directly
                  to the Agent of the Project Finance Lenders who will
                  immediately apply such proceeds to the payment of any
                  outstanding indebtedness or other obligations of DIG in
                  connection with the Project Financing.

                           (B)     Agent of the Project Finance Lenders shall
                  have the right to assume all of DIG's rights under the Amended
                  Purchase Option Agreement including, but not limited to, DIG's
                  right pursuant to Section 3.03 to employ an appraiser to
                  determine the Fair Market Sales Value of the Project Assets.

                           (C)     Agent of the Project Finance Lenders shall
                  have the right to reasonably modify the qualifications of the
                  appraisers selected to appraise the Project Assets.

                           (D)     Agent of the Project Finance Lenders shall
                  have the right, to reasonably modify the timetable for
                  exercise of the purchase option and the determination of the
                  Fair Market Sales Value to coincide with Project Financing
                  documents.

                  (iii)    In addition to the rights afforded to the Project
         Finance Lenders in Section 2.01(a)(ii), Rouge and Ford agree to
         cooperate with DIG in the negotiation and execution of such amendments
         or additions to this Agreement as Project Finance Lenders may
         reasonably request and shall reasonably cooperate with the Project
         Finance Lenders in the expedient preparation and execution of the
         Amended Purchase Option Agreement.

                  (iv)     Notwithstanding the above, Rouge and Ford shall be
         required to execute the Amended Purchase Option Agreement only if, to
         the extent permitted by law:

                           (A)     Project Finance Lenders agree to operate, or
                  cause to be operated,  the Project Assets in accordance with
                  Section 4.01(b); and

                           (B)     Project Lenders agree to release and transfer
                  their entire interest in the Project Assets to Rouge and/or
                  Ford in consideration of the receipt of the funds pursuant to
                  the exercise of the purchase option.

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         (b)      Upon the occurrence of a Termination Event following which
Rouge and Ford have the option to purchase the Project Assets, DIG shall provide
Rouge and/or Ford with reasonable access to all of the Site Project
Improvements, Connecting Facilities and Easement Facilities, and to such of
DIG's records (not including financial information, except as it is necessary in
determining the Value of the Project Assets), in whatever form they are kept, as
relate to the function, operation and construction (including without limitation
all cost information relative to Project operations), in order to afford Rouge
and/or Ford the opportunity to review, examine and inspect the Project Assets
and all such records to the extent that Rouge and/or Ford shall reasonably deem
to be necessary. Rouge and/or Ford shall be permitted to make copies of such
records as they deem reasonably necessary in connection with such inspection.
Without limiting the generality of the foregoing, DIG shall make available for
inspection and review by Rouge and/or Ford and their duly-authorized
representatives all engineering reports, operation and maintenance records (not
including financial information, except as it is necessary in determining the
Value of the Project Assets) pertaining to the Project Assets, all of which
shall be assembled at the Project Site for review. From the date of a
Termination Event until the earlier of (i) closing on the purchase if the option
is exercised or (ii) the date the option is not exercised, DIG will provide
Rouge and/or Ford with reasonable access to DIG records, and ongoing operations
directly related to and necessary for the management, operations and maintenance
of the Project Assets. Rouge's and Ford's review of the records shall be subject
to the terms and the execution of the Confidentiality Agreement attached to this
Agreement as Exhibit A. Further, without limiting the generality of the
foregoing, Rouge and/or Ford shall have the right to come upon the Leased
Premises to conduct an environmental assessment of the Leased Premises.

         (c)      From the date of a Termination Event following which Rouge
and/or Ford, or an assignee of them, shall have the option to purchase the
Project Assets until the earlier of (i) closing on the purchase if the option is
exercised or (ii) the date the option is not exercised, DIG shall maintain and
repair the Project Assets with the degree of care normally exercised by entities
similarly situated to DIG for projects of like kind to the Project.
Notwithstanding the foregoing, DIG may cease operation of the Project during
such period provided that such cessation has no adverse effect on operations of
the Rouge Complex or the performance of DIG's obligations under Purchase and
Sales Agreements, and that such cessation is effected prudently and in
accordance with industry standards and Governmental Requirements for such
cessation, with due regard for the safety of persons, property and process, and
potential for commencement of operation of the Project by a purchaser thereof.

         (d)      Exercise of Option and Closing, Timetable.

                  (i)     Upon the occurrence of a Termination Event following
         which Rouge and Ford have the option to purchase the Project Assets,
         Rouge and Ford shall have a period of fifteen (15) days from written
         notice from DIG to Ford and Rouge of the Termination Event to determine
         whether to initiate the valuation process under Article III. At any
         time during such fifteen (15) day period, Rouge and/or Ford may give
         notice to DIG of intention to initiate the valuation process under
         Section 3.02.

                  (ii)      From the date of notice given under (i) above, the
         Parties shall cause Value of the Project Assets to be determined as
         provided in Section 3.02 within a period not to exceed one hundred
         twenty (120) days, subject to extension for cause as provided in
         Article III or as required by reappraisal under Section 2.04(d), any
         such extension in no event to exceed fifteen (15) days.

                  (iii)     Following the final determination of Value of the
         Project Assets, Rouge and/or Ford shall have a period of fifteen (15)
         days from delivery of the final Appraisal to exercise the option to

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         purchase the Project Assets by giving notice of exercise to DIG,
         subject to extension as required by reappraisal under 2.04(d), such
         extension in no event to exceed fifteen (15) days (the "Option
         Expiration Date"). Rouge and/or Ford may give notice of its decision
         not to exercise the purchase option at any time following the
         occurrence of the Termination Event referred to in (i) above; provided
         that, if notice of exercise has not been delivered to DIG by the Option
         Expiration Date, the option shall be deemed to be "not exercised" on
         such date, for purposes of this Agreement.

                  (iv)     The Parties shall cause closing of the purchase to
         occur within thirty (30) days from the date of notice of exercise given
         under (iii) above.

                  (v)      Failure to give any notice within the time provided
         therefor, shall terminate the option rights afforded under Section
         2.01.

SECTION 2.02      DIG'S PURCHASE/LEASE OPTION(S).

         In the event neither Rouge nor Ford exercises the option to purchase
the Project Assets under 2.01, and DIG desires to continue operation of the
Project on the Leased Premises, and if the Termination Event occurs under
Section 9.01(b), (c) or (d) of the Ground Lease, DIG may, at its option, either
lease the Leased Premises under the terms and conditions of the Ground Lease for
a Post-Termination Term at Fair Market Rental Value or purchase the Leased
Premises for Fair Market Sales Value.

         (a)      Exercise of Option(s), Timetable.

                  (i)      From the date upon which DIG's option to lease or
         purchase the Leased Premises under this Section 2.02 becomes first
         exercisable, DIG shall have a period of fifteen (15) days to give
         notice to Rouge of intention to initiate the valuation process under
         Section 3.03.

                  (ii)      From the date of notice given under (i) above, the
         Parties shall cause Value of the Leased Premises to be determined as
         provided in Sections 3.03 and 3.04 within a period not to exceed one
         hundred twenty (120) days.

                  (iii)     Following the determination of Value of the Leased
         Premises, DIG shall have a period of thirty (30) days from delivery of
         the final Appraisal to exercise the option(s) to lease or to purchase
         the Leased Premises by giving notice of exercise to Rouge.

                  (iv)      The Parties shall cause closing of the lease or
         purchase to occur within thirty (30) days from the date of notice given
         under (iii) above.

                  (v)      Failure to give any notice within the time provided
         therefor shall terminate the option rights afforded under Section 2.02.

SECTION 2.03      NON-EXERCISE OF PURCHASE OPTIONS.

         In the event Rouge and/or Ford do not exercise the option under Section
2.01 and it is the case that either (a) DIG, after having the right to do so as
provided in the immediately preceding Section 2.02, does not give notice of
exercise of its option either to lease the Leased Premises for a
Post-Termination Term or to purchase the Leased Premises within one hundred
sixty five (165) days after expiration of Rouge's and Ford's

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option to purchase the Project Assets, or (b) there is a Termination Event as a
result of which DIG does not have a right either to lease for a Post-Termination
Term or to purchase the Leased Premises, DIG shall forthwith commence, and, with
due diligence and dispatch, process removal of the Project Assets from the
Leased Premises and within the Easement Areas, excepting from such removal, and
preserving to the extent installed, the electric power grid interconnections
that are a part of the Project, and restore the Leased Premises and Easement
Areas as nearly as possible to their condition prior to alteration by reason of
the Project Assets, or abandon in place such Project Assets as the Parties may
mutually agree. Rouge and Ford will allow DIG access to the Project Site in
order to proceed with such removal.

SECTION 2.04      PURCHASE OF PROJECT ASSETS.

         The following agreements and conditions apply in the event Rouge and/or
Ford exercise(s) the option to purchase the Project Assets:

         (a)      If within the time for exercise both Rouge and Ford give
notice of exercise, either jointly or separately, the Project Assets with the
Operating Rights (defined and as provided below), to the extent owned by DIG or
otherwise transferable or assignable, shall be transferred to both as tenants in
common or to an assignee of either or both of them, in the percentage as Rouge
and Ford may then agree and direct by notice (within the time allowed for
exercise of the option under Section 2.01(d)), but in the absence of agreement
directing such percentage, then to each an undivided one-half. If within the
time for exercise, either Rouge or Ford gives notice of exercise but the other
of them does not, the entirety of Project Assets with the Operating Rights
(defined below) shall be transferred to the one of them giving the notice or its
assignee.

         (b)      It is the intent of the Parties that, pursuant to exercise of
the option to purchase, Rouge and/or Ford, or an assignee of them, shall acquire
ownership of or right to possess and use all physical assets comprising the
Project Assets, together with all rights to operate the Project to provide all
of the services to the Rouge Complex that are described in the Purchase and
Sales Agreements. DIG shall exercise Commercially Reasonable Efforts to assure
as a matter of contract that its right to possess and use all portions of the
Project Assets not so owned shall be transferable and assignable, to Rouge
and/or Ford or an assignee of them, without requiring the payment of
compensation therefore, to enable Rouge and/or Ford, or an assignee of them, to
possess and use the Project Assets to provide all of the services to the Rouge
Complex that are described in the Purchase and Sales Agreements.

         (c)      Upon the terms and subject to the conditions set forth herein,
DIG shall sell, assign, transfer and convey to Rouge and/or Ford, or an assignee
of them, and Rouge and/or Ford, or an assignee of them, shall purchase and
accept from DIG, at closing, all of DIG's right, title and interest in and to
the Project Assets.

                  (i)      By bill of sale with warranty of title against DIG's
         acts, DIG shall convey to Rouge and/or Ford, or an assignee of them,
         good title to those portions of the Project Assets owned by DIG, free
         and clear of all Liens, Charges and Claims other than as contained in
         approved Easement Agreements and Rights of Way agreements; and by
         instruments of assignment with warranty against DIG's acts, DIG shall
         assign all of its right, title and interest in and to those portions of
         the Project Assets not owned by DIG and in the instruments of lease,
         license, purchase, option and permission to use and possess evidencing
         such right, title and interest. Any existing Liens, Charges and Claims,
         with accruals to the date of closing, may be paid out of the purchase
         price at closing, but any shortfall between the purchase price and the
         amount of outstanding Liens, Charges and Claims shall be paid or
         assumed by DIG at closing. The bill of sale may disclaim implied
         warranties of fitness for purpose

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         under the Michigan Uniform Commercial Code, and describe the property
         so transferred "as-is, where-is and with all faults" as provided in
         Section 2.04(d).

                  (ii)      By instruments of assignment with warranty against
         DIG's acts, DIG shall assign to Rouge and/or Ford, or an assignee of
         them, and deliver originals of instruments evidencing, all security
         deposits and option fees, operating agreements, permits, licenses,
         certificates, approvals, operating rights, environmental credits, tax
         abatement certificates, pending tax assessment appeals, fuel supply and
         transportation contracts necessary to operate the Project, all
         available Plans and Specifications, construction drawings, current
         plant drawings, surveys, operating manuals, computer programs and
         operating codes for systems integral to operation of the Project,
         security systems, warranties from suppliers, and any and all
         documentation evidencing the satisfaction of Governmental Requirements,
         with all required consents and approvals to transfer and assignment to
         Rouge and/or Ford, as Rouge and Ford desire in their discretion to
         accept, to enable Rouge and/or Ford, or an assignee of them, to operate
         the Project in place in compliance with Governmental Requirements, to
         provide all of the services to the Rouge Complex that are described in
         the then current Purchase and Sales Agreements (all of the foregoing is
         collectively referred to as the "Operating Rights"), provided, however,
         that any reference to Operating Rights does not include the assignment
         and assumption of DIG's rights and/or obligations under any contracts
         for the purchase and sale of electricity or gas. Rouge and/or Ford, or
         an assignee of them, shall assume from and after such assignment the
         obligations of DIG under the Operating Rights arising thereafter.

                  (iii)      Except as provided in Section 2.04(b), DIG shall
         not be obligated to sell, assign, transfer or convey such portions of
         the Project Assets, including, without limitation, any lease, contract,
         or other interest or right, as to which consent or waiver of the issuer
         thereof or other party thereto or third persons whose consent or
         approval is necessary by the proper sale, assignment, transfer or
         conveyance thereof, without first having obtained all necessary
         consents and waivers of the issuer thereof, the other party thereto, or
         any third person whose consent or approval is necessary for the
         property sale, assignment, transfer or conveyance of such portion of
         the Project Assets. Promptly after the exercise of the option to
         purchase by Rouge and/or Ford, or an assignee of them, DIG shall use
         Commercially Reasonable Efforts to provide or obtain all such necessary
         consents and waivers. If DIG or an assignee of DIG shall be requested
         to pay any commercially reasonable amount, customarily paid to one
         providing the consent or waiver, in consideration therefor to the
         person from whom the consent or waiver is requested, DIG shall make
         such payment. In addition, DIG shall make payment of any fee, penalty
         or other such compensation which was expressly negotiated between DIG
         and any assignor or transferor at the beginning of any contract,
         whether commercially reasonable or not. Notwithstanding the foregoing,
         DIG can refuse to make payment of such fee, penalty or other
         compensation, in which case Rouge and/or Ford, or an assignee of them,
         shall be entitled to pay such amount and the Value of the Project
         Assets shall be reduced by an equal amount. Further, if any such
         assignor or transferor requires the payment of any such fee, penalty or
         other compensation which had not been expressly negotiated between it
         and DIG, whether commercially reasonable or not, and DIG refuses to pay
         such amount, then Rouge and/or Ford, or an assignee of them, shall have
         the option to (x) pay such amount in which case there shall be no
         impact on the Value of the Project Assets or (y) refuse to pay such
         amount, in which case the appraisal shall include the impact on the
         Value of the Project Assets based on not obtaining assignment of the
         lease, contract or other right. Notwithstanding any other provisions in
         this Agreement to the contrary, if application of the terms of this
         Section 2.04(c)(iii) would result in a Project Assets Value less than
         or equal to zero, then the Value of the Project Assets shall be equal
         to its forced liquidation value. No such provision of funds

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         by DIG shall result in any adjustment of or reduction to the purchase
         price of the Project Assets. In the event a necessary consent or waiver
         is not obtained after having exhausted all Commercially Reasonable
         Efforts to obtain such consent or waiver, then DIG shall so notify
         Rouge and/or Ford of such inability to obtain such consent or waiver
         whereupon Rouge and/or Ford, or an assignee of them, shall have the
         right, exercised by notice given within thirty (30) days following
         DIG's notice, to terminate its exercise of the option to purchase with
         the same effect as if the option had not been exercised.
         Notwithstanding the foregoing, the Parties shall be obligated to
         consider in good faith all reasonable alternatives proposed by the
         other Party hereto to address the failure to obtain the necessary
         consent or waiver and to resolve the issue to permit the closing to
         occur within the time provided therefor under Section 2.01(d).

                  (iv)      All costs in the conveyance of DIG right, title and
         interest to the Project Assets and assignment of Operating Rights
         customarily paid by a transferor or assignor of the same shall be borne
         by DIG as an expense of sale; provided, however, notwithstanding the
         foregoing, each of the Parties, Rouge and/or Ford and any assignee of
         Rouge or Ford shall be solely responsible for the expenses and fees of
         its own legal counsel in connection with the conveyance of the Project
         Assets and assignment of Operating Rights.

         (d)      Except as otherwise expressly provided in this Agreement, the
Project Assets and each item thereof and the Operating Rights shall be
transferred and conveyed to Rouge and/or Ford, or an assignee of them, at
closing "as is, where is and with all faults" and without warranties of any kind
by DIG, express or implied, including, without limitation, any implied warranty
of fitness for any purpose or purposes. The occurrence of an Event of Loss in
the Project Assets subsequent to the determination of Value of the Project
Assets shall cause the Parties to obtain further appraisal of the Project
Assets, to be made at the sole expense of DIG, to re-determine its Value. DIG
shall be entitled to retain all condemnation awards and proceeds and such
amounts shall be considered in the re-determination. Except for the occurrences
described in the foregoing sentence, DIG shall deliver possession of the Project
Assets in the same condition as it was on the date Value was determined by the
Appraisal, reasonable wear and tear only excepted.

         (e)      The closing on the purchase of the Project Assets shall occur
within forty-five (45) days after the determination, or redetermination as
provided for in Section 2.04(d), of Value. DIG shall exercise Commercially
Reasonable Efforts to cause necessary third party approval of transfer of
Operating Rights before closing, but its obligation to exercise Commercially
Reasonable Efforts to transfer such Operating Rights shall survive the closing.
Until the earlier to occur of (i) the date upon which all such Operating Rights
have been transferred or (ii) the date which is one year from the closing of the
purchase pursuant to Section 2.01(d), with all required consents and approvals
therefor, DIG shall operate the Project on behalf of Rouge and/or Ford, or an
assignee of them, for a market based fee. If DIG (x) was subject to an Event of
Default of the Ground Lease which led to the exercise of the option to purchase
the Project Assets, (y) is in default of any of its post closing obligations, or
(z) refuses to operate the Project, Rouge shall be entitled to operate the
Project as agent of or attorney-in-fact for DIG for the lesser of one year from
the closing pursuant to Section 2.01(d) or until all Operating Rights have been
transferred. The activities of the Parties pursuant to this Section 2.04(e)
shall be subject to the terms of the Insurance and Indemnity Agreement.

         (f)      If an Expanded Facility has been installed upon the Leased
Premises, and Rouge and/or Ford, or an assignee of them, have exercised their
option to purchase the Project Assets then, any such purchaser(s) shall have the
option to purchase the Expanded Facility at a price to be negotiated. If such
option to purchase is not exercised, unless otherwise agreed by the purchaser(s)
of the Project Assets, DIG shall forthwith

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commence, and with due diligence and dispatch, process removal from the Leased
Premises of the Expanded Facility Improvements, and restore that portion of the
Leased Premises affected thereby as nearly as possible to its condition prior to
the alteration by reason of the Expanded Facility Improvements. In carrying out
the foregoing obligation, DIG shall cause no damage to or impairment of the
Project Assets; and if removal of any portion of the Expanded Facility
Improvements would cause such damage or impairment of any material nature or for
a material time, that portion or those portions of the Expanded Facility
Improvements shall not be removed but shall be conveyed or assigned as part of
the Project Assets (and Operating Rights, if applicable) without payment by the
purchaser of the Project Assets of a consideration therefor.

         (g)      If at the date of a Termination Event, DIG is obligated to
provide electricity from the Project to third persons under contracts which
cannot be terminated, or alternative arrangements for provisions of electricity
to satisfy such contracts cannot be made, with the exercise of Commercially
Reasonable Efforts, prior to transfer of the Project Assets to Rouge and/or
Ford, Rouge and/or Ford agrees to offer to sell what it reasonably deems to be
excess electricity produced by the Project to DIG for purchase at a commercially
reasonable rate (not less than prevailing market) but in no event less than the
Project operator's incremental cost to generate such electricity to satisfy such
contracts, for a period not to exceed twelve (12) months following notice of
exercise of the option to purchase the Project Assets.

SECTION 2.05      PURCHASE OF THE LEASED PREMISES.

         If DIG exercises its option to purchase the Leased Premises:

         (a)      Rouge, by deed in recordable form, duly authorized and
executed, with warranty against Rouge's acts, shall convey fee simple marketable
title to the Leased Premises, together with all Easements appurtenant to the
land which is the Leased Premises. Rouge has provided to DIG at the Closing Date
a commitment prepared by First American Title Insurance Company for an owner's
policy of title insurance dated September 11, 1998 (the "Commitment") covering
the Leased Premises and the Powerhouse Land which is to be subjected to the
Easements, and has provided to DIG an executed instrument amending an easement
benefiting Ford for parking over the Leased Premises. DIG hereby agrees that the
condition of title shown in the Commitment, with the amendment of certain
easements, including the parking easement in the form provided, shows an
acceptable condition of title to the Leased Premises, and title will be accepted
in like condition upon exercise of DIG's option to purchase the Leased Premises
pursuant to this Agreement. Rouge shall remedy any changes in the state of title
subsequent to the date of the Commitment, by reason of acts or omissions of
Rouge or parties claiming under and through it (other than DIG), but shall have
no responsibility with respect to changes in title conditions caused by acts or
omissions of DIG or parties claiming under and through it. As provided in
Section 8.01 of the Ground Lease, any Fee Mortgage upon the Leased Premises
shall be released at closing on conveyance of the Leased Premises. DIG, pursuant
to Section 1.03 of the Ground Lease has accepted such other conditions which may
be title conditions not of record as shown on the Existing Conditions Map, as
such conditions may be changed pursuant to the provisions of Section 1.03 of the
Ground Lease. DIG shall accept physical condition of the Leased Premises on the
date of closing "as-is, where-is and with all faults" except as is expressly
provided in Section 1.031 of the Ground Lease, and DIG acknowledges that it will
have been in exclusive control of the Leased Premises since December 16, 1998.

         At closing, Rouge shall provide for issuance of, and pay the premium
for, an ALTA Owner's policy of title insurance with standard exceptions detailed
naming DIG or its assignee as owner, in the amount of the purchase price.

                                       10
<PAGE>   11

         (b)      The closing on the purchase of the Leased Premises shall occur
within forty five (45) days after the determination of Value. Rouge shall pay
all selling and transfer costs customarily paid by a seller of real property in
Wayne County, Michigan. Real estate taxes shall not be prorated. Rouge shall not
be required to pay any broker's commission. Rouge represents that it has
retained no broker in connection with this transaction.

         (c)      In the event the Agreement for Easements and Interconnections
terminates, DIG may continue to use the easements described therein in Articles
III, IV and X for a period of eighteen months, provided that DIG shall pay Rouge
and/or Ford, as the case may be, a fee for the use of such easements equal to
all direct and normal expenses, if any, incurred by Rouge and/or Ford in
continuing to grant DIG use of such easements. During such time, the parties
hereto shall negotiate in good faith for a replacement agreement to accommodate
the continued operation of the Project.

                                   ARTICLE III

                                    VALUATION

SECTION 3.01      VALUE DETERMINED.

         Upon a Termination Event, pursuant to Section 2.01, the Value (as
defined in Section 3.02) of the Leased Premises or the Value (as defined in
Section 3.03) of the Project Assets shall be determined as provided in this
Article III.

SECTION 3.02      VALUATION OF THE PROJECT ASSETS.

         The Value of the Project Assets ("Project Assets Value") shall be that
value determined by appraisal of the Project Assets made pursuant to the
guidelines and requirements of this Agreement.

         (a)      Property To Be Valued.  The property to be valued by the
appraisal is the Project Assets as it exists on the Appraisal Date (as
hereinafter defined).

         (b)      When Project Assets Are To Be Valued. The Project Assets Value
is to be determined as of the day before the Termination Event (the "Appraisal
Date").

         (c)      How Project Assets Are To Be Valued. When the Project Assets
Value is to be determined, notice shall be given to cause commencement of the
appraisal process herein described. Either party may give such notice to the
other, but notice of the occurrence of a Termination Event shall be given
promptly by the party having knowledge of such occurrence. Within fifteen (15)
days following such notice, DIG and Rouge and/or Ford (represented together)
shall each select and employ, at its respective expense, an appraiser who is a
certified Member of the Appraisal Institute (MAI) and who has at least five
years experience in the valuation of ground lease industrial properties on a fee
basis to appraise the Project Assets as existing as of the Appraisal Date, in
place and in use, in accordance with then generally accepted property valuation
methodology and to prepare a complete appraisal report concerning the Project
Assets at the Fair Market Sales Value (the "Appraisal").

                                       11
<PAGE>   12

         The identity of each selected appraiser shall be disclosed promptly by
notice by each Party to the other. Each appraiser shall be engaged on a "time is
of the essence" basis, and each Appraisal shall be submitted within sixty (60)
days after the second of the notices referred to above (subject to extension as
provided in this Agreement). DIG and Rouge and/or Ford shall notify each other
promptly upon receipt of the final Appraisal.

         At the time of selection of appraisers, DIG and Rouge and/or Ford may
agree to select and employ a single appraiser to determine the Project Assets
Value, and such Project Assets Value so determined by the appraiser shall be the
Project Assets Value for purposes of this Agreement. The final report of the
appraiser shall be distributed to DIG and Rouge and/or Ford simultaneously by
the appraiser. If separate appraisers are selected and employed, the final
report of each of the appraisers shall be first provided to the employer of that
appraiser which shall in turn provide notice to the other Party of receipt of
such final Appraisal report. The final Appraisal reports shall be exchanged
simultaneously by DIG and Rouge and/or Ford within two (2) business days after
the later of notice given by DIG and Rouge and/or Ford to the other of receipt
of the final Appraisal report.

         If there is less than a 10% difference (calculated upon the proposed
Project Assets Value determined by the higher Appraisal) between the two
Appraisals, the average of the proposed Project Assets Value so determined by
each of the two Appraisals shall be the Project Assets Value for purposes of
this Agreement.

         If there is a ten percent (10%) or greater difference (calculated upon
the proposed Project Assets Value determined by the higher Appraisal) between
the two Appraisals, and DIG and Rouge and/or Ford do not agree, within ten (10)
days after exchange of the proposed Project Assets Value determined by the final
report of the two appraisers, upon a Project Assets Value, then within fifteen
(15) days after exchange of the proposed value, the appraisers previously
selected and employed shall select a third so qualified appraiser, who shall be
employed at the equal expense of DIG and Rouge and/or Ford, who shall appraise
the Project Assets and submit a proposed Project Assets Value determination in a
final Appraisal report to both DIG and Rouge and/or Ford simultaneously. The
average of the proposed Project Assets Value of the three appraisals shall be
the Project Assets Value for purposes of this Agreement.

         In the event the first two appraisers cannot agree upon a third
appraiser, the selection of the third appraiser shall be submitted to the
appraisers' certifying organization for selection as a matter of first resort
and, if not so selected, shall be determined by blind draw from the names of two
appraisers identified by each of the two initial appraisers.

         If either DIG or Rouge and/or Ford do not select and employ an
appraiser as provided herein, or if, without reasonable cause (reasonable cause
shall include, but not be limited to, illness or death of an appraiser, and,
with respect to Rouge's and/or Ford's appraiser, or lack of reasonable (as
reasonably determined by the appraiser) access to the Project Assets, but in any
such case only for the period of delay reasonably resulting therefrom, not to
exceed in any event a period of fifteen (15) days), the appraiser selected by
either DIG or Rouge does not submit a proposed Project Assets Value in a final
Appraisal report within the time provided in this Agreement therefor, the
Project Assets Value proposed by the qualified appraiser providing a complying
Appraisal shall be the Project Assets Value determined for purposes of this
Agreement.

         (d)      Effect of Encumbrances on Project Assets. In determining Value
of the Project Assets, the appraiser(s) shall consider, evaluate and report
expressly as part of the Appraisal report, in detail, the effect upon Value of
limitations or encumbrances.

                                       12
<PAGE>   13

SECTION 3.03      DETERMINATION OF VALUE OF LEASED PREMISES.

         The Value of the Leased Premises ("Value of the Leased Premises") shall
be that value determined by appraisal of the Leased Premises made pursuant to
the guidelines and requirements of this Agreement, and shall be the Fair Market
Rental Value if the conditions of Section 3.02 of the Ground Lease apply and
shall otherwise be the Fair Market Sales Value, considering the effect, if any,
of Devaluing Occurrence(s).

         (a)      Property To Be Valued.  The property to be valued by the
appraisal is the Leased Premises as it exists on the Appraisal Date (as
hereinafter defined).

         (b)      When Leased  Premises Is To Be Valued.  The Value of the
Leased Premises is to be determined as of the day before the Termination Event
(the "Appraisal Date").

         (c)      How Leased Premises Is To Be Valued. When the Value of the
Leased Premises is to be determined, notice shall be given to cause commencement
of the appraisal process herein described. Either party may give such notice to
the other, but notice of the occurrence of a Termination Event shall be given
promptly by the party having knowledge of such occurrence. Within fifteen (15)
days following such notice, DIG and Rouge shall each select and employ, at its
respective expense, an appraiser who is a certified Member of the Appraisal
Institute (MAI) and who has at least five years experience in the valuation of
ground lease industrial properties, on both a leasehold and fee basis, to
appraise the Leased Premises as it exists as of the Appraisal Date, in
accordance with then generally accepted property valuation methodology and to
prepare a complete appraisal report concerning the Leased Premises, valuing the
Fair Market Rental Value or the Fair Market Sales Value, as required under the
applicable circumstances (the "Appraisal"). If the Value of the Leased Premises
is to be determined as Fair Market Rental Value, the valuation shall be made as
occupied by the Project. If the Value of the Leased Premises is to be determined
as Fair Market Sales Value, the valuation shall be made as vacant land, without
consideration of any improvements made by DIG.

         The identity of each selected appraiser shall be disclosed promptly by
notice by each party to the other. Each appraiser shall be engaged on a "time is
of the essence" basis, and each Appraisal shall be submitted within sixty (60)
days after the second of the notices referred to above (subject to extension as
provided in this Agreement). DIG and Rouge shall notify each other promptly upon
receipt of the final Appraisal.

         If at the time of selection of appraisers DIG and Rouge may agree to
select and employ a single appraiser to determine the Value of the Leased
Premises, and such Value so determined by the appraiser shall be the Value for
purposes of this Agreement. The final report of the appraiser shall be
distributed to DIG and Rouge simultaneously by the appraiser. If separate
appraisers are selected and employed, the final report of each of the appraisers
shall be first provided to the employer of that appraiser which shall in turn
provide notice to the other Party of receipt of such final Appraisal report. The
final Appraisal reports shall be exchanged simultaneously by DIG and Rouge
within two (2) business days after the later of notice given by DIG and Rouge to
the other of receipt of the final Appraisal report.

         If there is less than a 10% difference (calculated upon the proposed
Value of the Leased Premises determined by the higher Appraisal) between the two
Appraisals, the average of the proposed Value of the Leased Premises determined
by each of the two Appraisals shall be the Value of the Leased Premises for
purposes of this Agreement.

                                       13
<PAGE>   14
         If there is a ten percent (10%) or greater difference (calculated upon
the proposed Value of the Leased Premises determined by the higher Appraisal)
between the two Appraisals, and DIG and Rouge do not agree, within ten (10) days
after exchange of the proposed Value of the Leased Premises determined by the
final report of the two appraisers, upon a Value of the Leased Premises, then
within fifteen (15) days after exchange of the proposed value, the appraisers
previously selected and employed shall select a third so qualified appraiser,
who shall be employed at the equal expense of DIG and Rouge, who shall appraise
the Leased Premises and submit a proposed Value of the Leased Premises
determination in a final Appraisal report to both DIG and Rouge simultaneously.
The average of the proposed Value of the Leased Premises of the three appraisals
shall be the Value of the Leased Premises for purposes of this Agreement.

         In the event the first two appraisers cannot agree upon a third
appraiser, the selection of the third appraiser shall be submitted to the
appraisers' certifying organization for selection as a matter of first resort
and, if not so selected, shall be determined by blind draw from the names of two
appraisers identified by each of the two initial appraisers.

         If either DIG or Rouge do not select and employ an appraiser as
provided herein, or if, without reasonable cause (reasonable cause shall
include, but not be limited to, illness or death of an appraiser, and, with
respect to Rouge's appraiser, or lack of reasonable (as reasonably determined by
the appraiser) access to the Leased Premises, but in any such case only for the
period of delay reasonably resulting therefrom, not to exceed in any event a
period of fifteen (15) days), the appraiser selected by either DIG or Rouge does
not submit a proposed Value of the Leased Premises in a final Appraisal report
within the time provided in this Agreement therefor, the Value of the Leased
Premises proposed by the qualified appraiser providing a complying Appraisal
shall be the Value of the Leased Premises determined for purposes of this
Agreement.

         (d)      Effect of Devaluing Occurrence. In the process of determining
Value of the Leased Premises, the appraiser(s) shall consider, evaluate, and
report expressly as a part of the Appraisal report whether and the extent to
which Devaluing Occurrences (defined herein), if any, between the Closing Date
and the Appraisal Date have adversely affected Value of the Leased Premises. As
to the existence of matters described in Section 3.04 of this Agreement, the
appraisers shall rely exclusively on a written report of the Evaluator or its
substitute duly selected pursuant to this Agreement. As to the effect of such
matters, each appraiser shall adjust the appraised Value of the Leased Premises
by the amount, if any, determined to be the economic effect of Devaluing
Occurrence(s), and the total shall constitute the Value of the Leased Premises
determined by the appraiser.

SECTION 3.04      POTENTIALLY DEVALUING OCCURRENCES.

         Upon or in connection with a Termination Event when Value of the Leased
Premises is to be determined, if Rouge believes that action or inaction of DIG
other than as permitted by the Ground Lease has adversely affected the Value (a
"Potentially Devaluing Occurrence"), Rouge shall submit written report(s)
identifying such action or inaction to DIG and to PricewaterhouseCoopers (or its
successor or a similar services firm providing valuation services which is not
serving as an appraiser pursuant to this Agreement, herein the "Evaluator"),
which shall serve as an independent decision-maker, for consideration of the
action or inaction identified and a determination, which shall be binding upon
the Parties to this Agreement and the appraisers employed by them, of whether
such action or inaction adversely affects the Value.

         DIG shall have the right to submit written response(s) to Rouge's
submittal(s) to the Evaluator for consideration. The process by which the
determination by the Evaluator shall be made shall be commenced

                                       14
<PAGE>   15

and completed within sixty (60) days from either the occurrence of a Termination
Event or such earlier date as the earlier of the written report(s) of Rouge have
been given to the Evaluator in anticipation of a Termination Event of which
notice has been given pursuant to this Agreement; and of those sixty (60) days,
DIG shall have twenty (20) days from submission of Rouge's report to DIG and to
the Evaluator to respond, and the Evaluator shall have not less than twenty (20)
days to consider written report(s) and response(s) after their submittal. At the
end of such sixty (60) days, or at such earlier time as it is prepared to do so,
the Evaluator shall issue its written report of determination of whether the
action or inaction identified caused one or more devaluing occurrences
("Devaluing Occurrence(s)"). This written report shall not quantify the result
of such Devaluing Occurrence(s). This written report shall be submitted to the
appraisers engaged by the parties for consideration as part of the appraisal
process. If a determination of such a Devaluing Occurrence(s) is not made by the
Evaluator within ninety (90) days from the date of the Termination Event or such
earlier date as the earlier of the written report(s) of Rouge have been given to
the Evaluator in anticipation of a Termination Event of which notice has been
given pursuant to this Agreement, unless access to information solely in
possession of DIG required by the Evaluator has been restricted so as to prevent
or postpone such determination, based upon a certification thereof by the
Evaluator, then the appraisers will not be required to consider such Devaluing
Occurrence(s).

         If this procedure of determination of Devaluing Occurrence(s) is
followed, it shall serve to toll or extend, as appropriate in context, the time
periods for determination of Value of the Leased Premises by the actual time
taken by the procedure or for ninety (90) days from the Termination Event,
whichever is the shorter period.

         Upon referral of the reports to the Evaluator, the Evaluator shall
certify to the Parties its ability to act as an independent decision-maker in
determining conduct of DIG or the operator of the Leased Premises. In the event
the Evaluator is unable or unwilling to so certify, the Evaluator shall select a
substitute decision-maker which the Evaluator deems comparable and qualified to
act as a decision-maker under this Section. Such substitute shall certify to the
parties its ability to act independently hereunder, and in the event it is
unwilling or unable to do so, the process shall be repeated (with the Evaluator
selecting successive substitute(s)) until an independent decision-maker can be
certified.

         The cost and expense of consideration of conduct creating Devaluing
Occurrence(s) by the Evaluator or its subcontractor shall be borne solely by
Rouge unless (a) as a result of such consideration of conduct and (b) as a
result of such determination, an adjustment to the Appraisal is required, in
which case DIG shall pay the entire cost and expense of the Evaluator or its
substitute.

                                   ARTICLE IV

                        ADDITIONAL RIGHTS AND OBLIGATIONS

SECTION 4.01      ADDITIONAL RIGHTS AND OBLIGATIONS OF PARTIES.

         (a)      If DIG grants a security interest in the Project Assets to the
Project Finance Lenders (to include a security interest in the real and personal
property and all material contracts and permits associated with operation of the
Project to secure DIG's performance under the Purchase and Sales Agreements with
Rouge and Ford), DIG will grant Rouge and Ford a security interest subordinate
only to the Project Finance Lenders. The documentation of such security interest
will be in form and substance acceptable to the Project

                                       15
<PAGE>   16

Finance Lenders and DIG, and the terms of the subordination shall be determined
by the Project Finance Lenders. Rouge and Ford agree to promptly release the
security interest upon release of security interest by the Project Finance
Lenders.

         (b)      From the date of notice of the occurrence of a Termination
Event until the earlier of (i) closing on the purchase if the option is
exercised or (ii) the date the option is not exercised, DIG shall operate, or
cause to be operated, the three blast furnace gas boilers, or such equipment
then utilized by DIG to burn Rouge's blast furnace gas (the "Blast Furnace Gas
Equipment"). DIG shall continue to accept Rouge's blast furnace gas pursuant to
the Blast Furnace Gas Purchase Agreement and provide steam necessary to continue
operations of Rouge and Ford at the Rouge Complex pursuant to the Steam Sales
Agreement. Subject to Section 2.04(e), from the date occurring the earlier of
(i) closing on the purchase if the option is exercised or (ii) the date the
option is not exercised until the date twelve (12) months thereafter, DIG, or
its successor or assignee, shall have the option to either (A) allow Rouge to
operate the Blast Furnace Gas Equipment in order to accept Rouge's blast furnace
gas pursuant to the Blast Furnace Gas Purchase Agreement and provide steam
necessary to continue operations of Rouge and Ford at the Rouge Complex pursuant
to the Steam Sales Agreement, provided, however, that Rouge shall hold DIG, or
its successor or assignee, harmless from and indemnify DIG, or its successor or
assignee, for any costs or liabilities incurred by DIG, or its successor or
assignee, as a direct or indirect result of Rouge's operation of the Blast
Furnace Gas Equipment; or (B) operate the Blast Furnace Gas Equipment in order
to accept Rouge's blast furnace gas pursuant to the Blast Furnace Gas Purchase
Agreement and provide steam necessary to continue operations of Rouge and Ford
at the Rouge Complex pursuant to the Steam Sales Agreement, provided that Rouge
and Ford shall pay DIG, or its successor or assignee, a fee for such services
equal to all direct and normal operating expenses incurred by DIG, or its
successor or assignee, in its operation of the Blast Furnace Equipment in
accordance with sound engineering and operating practices plus $70,000 per
month, and provided further that in the case of an event which could give rise
to extraordinary expenses being incurred, before incurring any such expenses DIG
shall, to the extent it can do so without endangering human life or safety,
first consult with Rouge and Ford regarding the nature of the occurrence and the
anticipated expenses related thereto, which expenses shall be deemed to be
accepted by Rouge and Ford unless they notify DIG to the contrary within 10
Business Days of such consultation. Thereafter, DIG, or its successor or
assignee, will have no further obligation to operate the Project Assets or to
purchase blast furnace gas under the Blast Furnace Gas Purchase Agreement or to
deliver steam under the Steam Sales Agreement. The monthly payment referred to
above shall be adjusted each year from and after January 1, 2015 by a factor,
the numerator of which shall be the United States Consumer Price Index, All
Urban Consumers, or any successor index thereto (the "CPI") as of January 1 of
the then current calendar year, and the denominator of which shall be the CPI as
of January 1, 2014. For purposes of this Section 4.01(b), "Business Day" shall
mean any calendar day on which Federal banks are not authorized or required to
close in Detroit, Michigan. To the extent that this Section 4.01(b) conflicts
with any provision of the Ground Lease, this Section 4.01(b) shall control.

         (c)      [intentionally blank]

         (d)      Rouge and Ford shall have a right of first purchase of
seventy-five percent (75%) of the electricity and/or steam produced by that
portion of the Expanded Facility described in subparagraph (b) of Section 1.04
of the Ground Lease, to the extent such production is achieved by (i) increasing
the rated capacity of existing Project equipment in total by ten percent (10%)
or more, or by at least 50 MW or an equivalent increase in steam production
capability with respect to a single unit of equipment, i.e. single shaft or
boiler, or (ii) the installation of new equipment at a price negotiated within a
reasonable time (not to exceed sixty (60) days from commencement of discussions
concerning price) reflecting the incremental investment of DIG for

                                       16
<PAGE>   17

that portion of the Expanded Facility with a reasonable rate of return to DIG
commensurate with similar projects similarly situated.

                                    ARTICLE V

                                  DOCUMENTATION

SECTION 5.01      DOCUMENTATION.

         (a)      The Parties shall use commercially prudent efforts to prepare
and negotiate in good faith definitive agreements (i.e., the Amended Purchase
Option Agreement and any supplementary documentation as Project Lenders may
require) that are necessary to document and effect the intent of the Parties in
Articles II, III and IV hereunder, (collectively, the "Definitive Agreements")
as soon as is practicable and to finalize and execute the Definitive Agreements
so as not to cause unreasonable delays in the closing of any Project Assets
Financing.

         (b)      Upon the execution of the Definitive Agreements, this
Agreement shall be wholly superseded. All agreements, drafts, term sheets,
memoranda, correspondence and all other communications prepared or exchanged in
the course of discussions regarding the transactions contemplated herein shall
have no legal effect unless incorporated into the Definitive Agreements executed
by the Parties.

                                   ARTICLE VI

                         REPRESENTATIONS AND WARRANTIES

SECTION 6.01      REPRESENTATIONS AND WARRANTIES OF ROUGE.

         (a)      Rouge represents that it is a corporation duly organized,
validly existing and in good standing under the laws of the State of Delaware,
is authorized to do business in the State of Michigan and has full power and
authority to enter into this Agreement and to perform the terms hereof.

         (b)      Rouge represents that the persons executing and delivering
this Agreement on Rouge's behalf are acting pursuant to proper authorization
duly obtained and that this Agreement is the legal, valid and binding obligation
of Rouge, enforceable in accordance with its terms.

         (c)      Rouge represents that the making and performance by Rouge of
this Agreement does not and will not violate the provisions of its Articles of
Incorporation, Bylaws or any law, regulation or order of any Governmental
Authority applicable to Rouge, or result in a breach of, or constitute a default
under, or require any consent or waiver which has not been obtained under, any
agreement, instrument or document, or the provisions of any order, writ,
judgment, injunction, decree, determination or award of any Governmental
Authority affecting Rouge.

         (d)      Rouge represents that as of the date hereof, no suit, action
or arbitration, or legal, administrative or other proceeding is pending or to
the best of its knowledge has been threatened against Rouge that would affect
the validity or enforceability of this Agreement or the ability of Rouge to
fulfill its

                                       17
<PAGE>   18

commitments hereunder, or that would, if adversely determined, have a material
adverse effect on the business or financial condition of Rouge.

SECTION 6.02      REPRESENTATIONS AND WARRANTIES OF FORD.

         (a)      Ford represents that it is a corporation duly organized,
validly existing and in good standing under the laws of the State of Delaware,
is authorized to do business in the State of Michigan and has full power and
authority to enter into this Agreement and to perform the terms hereof.

         (b)      Ford represents that the persons executing and delivering this
Agreement on Ford's behalf are acting pursuant to proper authorization duly
obtained and that this Agreement is the legal, valid and binding obligation of
Ford, enforceable in accordance with its terms.

         (c)      Ford represents that the making and performance by Ford of
this Agreement does not and will not violate the provisions of its Articles of
Incorporation, Bylaws or any law, regulation or order of any Governmental
Authority applicable to Ford, or result in a breach of, or constitute a default
under, or require any consent or waiver which has not been obtained under, any
agreement, instrument or document, or the provisions of any order, writ,
judgment, injunction, decree, determination or award of any Governmental
Authority affecting Ford.

         (d)      Ford represents that as of the date hereof, no suit, action or
arbitration, or legal, administrative or other proceeding is pending or to the
best of its knowledge has been threatened against Ford that would affect the
validity or enforceability of this Agreement or the ability of Ford to fulfill
its commitments hereunder, or that would, if adversely determined, have a
material adverse effect on the business or financial condition of Ford.

SECTION 6.03      REPRESENTATIONS AND WARRANTIES OF DIG.

         (a)      DIG represents that it is a limited liability company duly
organized, validly existing and in good standing under the laws of the State of
Michigan, is authorized to conduct business in the State of Michigan and has
full power and authority to enter into this Agreement and to perform the terms
hereof.

         (b)      DIG represents that the persons executing and delivering this
Agreement on DIG's behalf are acting pursuant to proper authorization duly
obtained and that this Agreement is the legal, valid and binding obligation of
DIG, enforceable in accordance with its terms.

         (c)      DIG represents that the making and performance by DIG of this
Agreement does not and will not violate the provisions of its Articles of
Organization, Operating Agreement or any law, regulation or order of any
Governmental Authority applicable to DIG, or result in a breach of, or
constitute a default under, or require any consent or waiver which has not been
obtained under, any agreement, instrument or document, or the provisions of any
order, writ, judgment, injunction, decree, determination or award of any
Governmental Authority affecting DIG.

         (d)      DIG represents that as of the date hereof, no suit, action or
arbitration, or legal, administrative or other proceeding is pending or to the
best of its knowledge has been threatened against DIG that would affect the
validity or enforceability of this Agreement or the ability of DIG to fulfill
its commitments

                                       18
<PAGE>   19
hereunder, or that would, if adversely determined, have a material adverse
effect on the business or financial condition of DIG.

                                   ARTICLE VII

                                  ASSIGNABILITY

SECTION 7.01      NON-ASSIGNABILITY.

         Except as provided in this Section 7.01, this Agreement shall not be
assigned, transferred or otherwise alienated by either Rouge, Ford or DIG
without the prior written consent of the other Parties, and any attempted
assignment, transfer or alienation without such consent shall be void, provided,
however, that any Party may assign this Agreement to any Affiliated Company upon
giving thirty (30) days prior written notice to the other Parties and, further
provided, that in the event that Rouge and/or Ford are the assignors, such
assignor shall guaranty the continuing performance of the assignee for the
remaining term of the Agreement. All covenants and provisions of this Agreement
for the benefit of the Parties shall inure to the benefit of their respective
successors and permitted assigns. Affiliated Company shall mean any company in
which any Party controls directly or indirectly 20% or more of the voting stock.

SECTION 7.02      PERMITTED ASSIGNMENT.

         DIG, or any assignee of DIG, has the right to mortgage, assign,
hypothecate, pledge, or encumber its interest in this Agreement to a parent or
Affiliated Company (including any general or limited partnership in which DIG or
any affiliate of DIG is a general partner) or to any Project Finance Lender.
Rouge and Ford hereby consent to such assignment and to any subsequent
assignments by such parent or Affiliated Company or Project Finance Lender or
any subsequent assignee, provided that, unless otherwise agreed by Rouge and
Ford and DIG no such assignment shall relieve DIG of its obligations or
liabilities incurred until the effective date of the assignment and provided
further that DIG shall guaranty the continuing performance of such parent or
Affiliated Company assignee for the remaining term of the Agreement. Rouge and
Ford agree to execute a written consent and estoppel certificate to effectuate
any assignment permitted under this Agreement.

                                  ARTICLE VIII

                                   TERMINATION

SECTION 8.01      TERMINATION.

         This Agreement and the obligations of the Parties hereunder shall
terminate upon the earlier to occur of (a) failure by any Party to perform fully
any other provision of this Agreement for which notice of such failure has been
provided to the other Parties by any non-defaulting Party; or (b) termination of
the Ground Lease provided, that if such Ground Lease termination is pursuant to
any Termination Event other than a Termination Event under Section 9.01(e) of
the Ground Lease, this Agreement shall terminate upon the termination of the
option rights afforded under Sections 2.01 and 2.02 hereunder.

                                       19
<PAGE>   20

                                   ARTICLE IX

                                  MISCELLANEOUS

SECTION 9.01      MISCELLANEOUS.

         (a)      Costs and Expenses. Each Party shall bear and pay all costs
and expenses incurred by it respecting the transactions contemplated herein,
including, without limitation, fees and expenses of their respective counsel,
accountants and appraisers.

         (b)      Limitation of Liability. No Party shall have any liability to
the other Parties for special, incidental, indirect or consequential damages nor
for any matter whatsoever associated with the activities covered by this
Agreement.

         (c)      Amendment. This Agreement may not be altered, changed,
modified, waived, or amended, except by an instrument in writing executed by all
Parties and consented to by Project Finance Lenders, if applicable.

         (d)      Governing Law. This Agreement shall be governed and construed
in accordance with the laws of the State of Michigan (without application of
principles of conflicts of law).

         (e) Entire Agreement. This Agreement constitutes the entire agreement
between the Parties with respect to the subject matter hereof, and all prior
correspondence, memoranda, agreements or understandings (written or oral) with
respect hereto are merged into and superceded by this Agreement.

         (f)      Counterparts.  This  Agreement may be executed in one or more
counterparts, each of which shall be deemed an original and all of which shall
constitute one and the same instrument.

         (g)      Severability. If the term or provision of this Agreement, or
the application thereof to any person or circumstance is rendered or declared
illegal for any reason and shall be invalid or unenforceable, such portion shall
be ineffective to the extent of such invalidity or unenforceability but the
remainder of this Agreement and the application of such term or provision to
other persons or circumstances shall not be affected thereby but shall remain in
full force and effect and shall be enforced to the greatest extent permitted by
applicable law unless such an event materially alters the Parties' intent as
expressed in this Agreement.

         (h)      Miscellaneous. The provisions of this Agreement will bind and
benefit the successors and permitted assigns of the Parties. Whenever the
context requires, all terms used in the singular will be construed in the plural
and vice versa, and each gender will include the other gender. The term "Rouge"
means both Rouge and its successors and permitted assigns, the term "Ford" means
Ford and its successors and permitted assigns, and the term "DIG" means DIG and
its successors and permitted assigns. Captions used in this Agreement are for
convenience of reference only and shall not be used to construe the provisions
hereof.

              [The rest of this page is intentionally left blank.]

                                       20
<PAGE>   21

         IN WITNESS WHEREOF, the undersigned have each caused this Agreement to
be duly executed and delivered, effective as of the date first above written.

                                     DEARBORN INDUSTRIAL GENERATION, L.L.C.

                                     By:

                                     Name:

                                     Title:

                                     ROUGE STEEL COMPANY

                                     By:

                                     Name:

                                     Title:

                                     FORD MOTOR COMPANY

                                     By:

                                     Name:

                                     Title:

                                       21
<PAGE>   22
                                    Exhibit A

                            Confidentiality Agreement

Effective Date: _______________________

In order to protect certain Confidential Information which may be disclosed
between them, Dearborn Industrial Generation, L.L.C. ("DIG"), Ford Motor Company
("Ford") and Rouge Steel Company ("Rouge") agree that:

1.       The Discloser(s) of Confidential Information are DIG, Ford and Rouge.

2.       The parties' representatives for disclosing or receiving Confidential
         Information are:

         DIG:     E.P. Barrett, Jr.
         Ford:    Gordon Hauk
         Rouge:   Martin Szymanski

         Any party may change its representative by written notice to the other.

3.      The Confidential Information disclosed under this Agreement is described
as certain records of DIG as provided in Section 2.01(b) of a Purchase Option
Agreement among the parties dated May 31, 2000 (the "Purchase Option") or any
other information which the parties agree to disclose pursuant to this
Agreement.

4.      A party receiving Confidential Information under this Agreement
("Recipient") shall use such Confidential Information of the disclosing party
("Discloser") only for the purposes set forth in the Purchase Option.

5.      A Recipient's duty to protect Confidential Information disclosed under
this Agreement extends for a period of three (3) years from the date of each
first disclosure of the particular Confidential Information.

6.      A Recipient shall protect Confidential Information by using the same
degree of care, but no less than a reasonable degree of care, to prevent the
dissemination to third parties or publication of the Confidential Information as
the Recipient uses to protect its own confidential information of a like nature.

7.      A Recipient shall have a duty to protect only that Confidential
Information which is (a) disclosed by the Discloser in writing or as a tangible
item and is marked as confidential at the time of disclosure, or which is (b)
disclosed by the Discloser in any other manner and is identified as confidential
at the time of disclosure and is also detailed and designated as confidential in
a written memorandum delivered to the Recipient's representative within thirty
(30) days of the disclosure.

8.      This Agreement imposes no obligation upon a Recipient with respect to
Confidential Information which (a) was in the Recipient's possession before
receipt from the Discloser, (b) is or becomes a matter of public knowledge
through no fault of the Recipient, (c) is rightfully received by the Recipient
from a rightfully possessing third party without a duty of confidentiality, (d)
is disclosed by the Discloser to a third party without a duty of confidentiality
on the third party, (e) is required to be disclosed under a court order or other
lawful governmental action, but only to the extent so ordered, and provided that
the party so ordered shall notify

                                       A-1
<PAGE>   23

Discloser so that the Discloser may attempt to obtain a protective order, or (f)
is disclosed by the Recipient with the Discloser's prior written approval in
accordance with said written approval.

9.       All materials bearing, containing, disclosing or relating to
Confidential Information shall remain the property of Discloser. Upon receipt of
written request from Discloser prior to the expiration of the confidentiality
obligation, Recipient shall return or, at Recipient's option, destroy all copies
of writings, and other materials in its possession or control that contain
Confidential Information received from Discloser under this Agreement. If any
such writing or material has been destroyed, an adequate response to the return
request will be a written verification of such destruction.

10.      Each Discloser warrants that it has the right to freely make the
disclosures under this Agreement.

11.      No party acquires any intellectual property rights under this Agreement
except the limited right to make copies as necessary for the use set out in
paragraph 4 above.

12.      No party has an obligation under this Agreement to purchase any service
or item from the other parties.

13.      Discloser acknowledges that Recipient may develop information
internally, or receive information from other parties, that may be similar to
Discloser's information. Accordingly, nothing in this Agreement shall prevent
Recipient from developing products for itself and others, providing such
products are not based on information received from Discloser pursuant to this
Agreement.

14.      A Recipient shall adhere to the U.S. Export Administration Laws and
Regulations and shall not export or re-export any technical data or products
received from the Discloser or the direct product of such technical data to any
proscribed country listed in the U.S. Export Administration Regulations unless
properly authorized by the U.S. Government.

15.      The parties do not intend that any agency or partnership relationship
be created  between  them by this Agreement.

16.      All modifications to this Agreement must be made in writing and must be
signed by  representatives  of all parties.

17.      If a dispute arises among the parties relating to this Agreement, the
following procedure shall be implemented before any party pursues other
available remedies except that the parties agree that money damages would not be
a sufficient remedy for a breach of this Agreement, and DIG may seek injunctive
relief from a court where appropriate in order to prevent or return a disclosure
or use of Confidential Information while this procedure is being followed:

         a.      The parties in dispute shall hold a meeting promptly, attended
         by persons with decision-making authority regarding the dispute, to
         attempt in good faith to negotiate a resolution of the dispute;
         provided, however, that no such meeting shall be deemed to vitiate or
         reduce the obligations and liabilities of the parties hereunder or be
         deemed a waiver by a party hereto of any remedies to which such party
         would otherwise be entitled hereunder, and further provided that all
         such statements made at such meeting shall be strictly off the record
         and shall not be admissible in any court or arbitration proceeding.

                                       A-2
<PAGE>   24

         b.      If, within 30 days after such meeting, the parties have not
         succeeded in negotiating a resolution of the dispute, they agree to
         submit the dispute to mediation in accordance with the then current
         Model Procedure for Mediation of Business Disputes of the CPR Institute
         for Dispute Resolution and to bear equally the costs of the mediation.

         c.      The parties will jointly appoint a mutually acceptable
         mediator, seeking assistance in such regard from the CPR Institute for
         Dispute Resolution if they have been unable to agree upon such
         appointment within 20 days from the conclusion of the negotiation
         period.

         d.      The parties agree to participate in good faith in the mediation
         and negotiations related thereto for a period of 30 days. If the
         parties are not successful in resolving the dispute through mediation,
         then the parties may submit the matter to binding arbitration or a
         private adjudicator, or either party may seek an adjudicated resolution
         through the appropriate court.

         e.      Mediation or arbitration shall take place at a mutually
         convenient site in the State of Michigan to be agreed by the parties.
         The substantive and procedural law of the State of Michigan shall apply
         to the proceedings. Equitable and compensatory remedies shall be
         available in any arbitration. Punitive damages, costs and attorneys'
         fees shall not be awarded. This Article of this Agreement is to be
         governed by the Federal Arbitration Act, 9 U.S.C.A. ss. 1 et seq.
         Judgement upon the award rendered by an Arbitrator, if any, may be
         entered by any court having jurisdiction thereof.

18.      This Agreement is made under and shall be construed according to the
laws of the State of Michigan without giving effect to principles of conflict of
laws.

19.      Under the terms of this Agreement, the rights and obligations accruing
to any party shall also accrue to that party's wholly owned subsidiaries. This
Agreement shall not be assignable.

20.      No party shall publicly announce or disclose the existence of this
Agreement or its terms and conditions, or advertise or release any publicity
regarding this Agreement, without the prior written consent of the other
parties.

DEARBORN INDUSTRIAL GENERATION,             FORD MOTOR COMPANY
L.L.C.

By:   __________________________            By:  __________________________
      (Authorized Signature)                     (Authorized Signature)

By:   __________________________            By:  __________________________
      (Printed Signatory's Name)                 (Printed Signatory's Name)

By:   __________________________            By:  __________________________
      (Printed Signatory's Title)                (Printed Signatory's Title)

                                       A-3
<PAGE>   25

ROUGE STEEL COMPANY

By:   __________________________
      (Authorized Signature)

      __________________________
      (Printed Signatory's Name)

      __________________________
      (Printed Signatory's Title)

                                      A-4<PAGE>   1
                                                                   EXHIBIT 10.31

                  AGREEMENT FOR EASEMENTS AND INTERCONNECTIONS

         This Easement Agreement ("EASEMENT AGREEMENT") is made and entered into
as of the 31st day of May, 2000 by and among ROUGE STEEL COMPANY, a Delaware
corporation, the address of which is 3001 Miller Road, Dearborn, Michigan 48121
("ROUGE"), FORD MOTOR COMPANY, a Delaware corporation, the address of which is
The American Road, Dearborn, Michigan 48121 ("FORD"), DOUBLE EAGLE STEEL COATING
COMPANY, a partnership, the address of which is 3000 Miller Road, Dearborn,
Michigan 48121 ("DOUBLE EAGLE") (ROUGE, FORD and DOUBLE EAGLE are collectively
referred to herein as "GRANTORS," and each is a "GRANTOR") and DEARBORN
INDUSTRIAL GENERATION, L.L.C., a Michigan limited liability company ("GRANTEE").

                                    RECITALS:

         A.       ROUGE and FORD each own certain property situated in the City
of Dearborn, Michigan, within the land known as the ROUGE COMPLEX LAND.

         B.       DOUBLE EAGLE is the owner of that portion of the Rouge Complex
Land described in Exhibit B attached hereto (the "DOUBLE EAGLE LAND").

         C.       GRANTEE is the Ground Lessee of that portion of the Rouge
Complex Land described in Exhibit C attached hereto (the "LEASED PREMISES").

         D.       GRANTEE has covenanted and agreed to build and install upon
the Leased Premises a certain Project and Expanded Facility for the generation
and distribution of electricity, steam and treated water and to process blast
furnace gas produced by ROUGE, and to sell that portion of such electricity,
steam and treated water produced by the Project to ROUGE, FORD and DOUBLE EAGLE
pursuant to certain Purchase and Sales Agreements entered into between ROUGE and
GRANTEE, FORD and GRANTEE and/or DOUBLE EAGLE and GRANTEE.

         E.       GRANTORS have each agreed to provide, as part of the
transactions contemplated by the Purchase and Sales Agreements, such easements
upon and with respect to the Rouge Complex Land as are necessary, appropriate or
useful for the existence and operation of the Project and the Expanded Facility
and the achievement of their Operational Purposes.

         F.       GRANTORS and GRANTEE desire to set forth the terms of their
agreements relative to the easements, support services and interconnections for
the benefit of the parties hereto.

                                       1
<PAGE>   2
         In consideration of the agreements herein set forth, the parties to
this Easement Agreement hereby agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

         All capitalized terms used herein (including those in the foregoing
Recitals) not otherwise defined herein shall have the meaning specified in
Appendix A annexed hereto. The following terms shall have the definitions set
forth below when used herein:

         A.       "OPERATIONAL PURPOSES" shall mean the ability of the Project
to perform the functions for which it was specifically designed and constructed,
including, but not limited to, furnishing electricity, steam and treated water
to ROUGE, FORD, and DOUBLE EAGLE and processing blast furnace gas from Rouge,
all in accordance with the terms of the Purchase and Sales Agreements.

         B.       "EASEMENTS" shall mean, collectively, the access easements,
the construction easements, the utility easements, the supply line easements as
such are defined in this Easement Agreement.

                                   ARTICLE II
                          ACCESS TO ROUGE COMPLEX LAND
                              AND DOUBLE EAGLE LAND

         SECTION 2.1. FROM PROJECT TO LAND PARCELS. To carry out the rights and
obligations of GRANTEE under the Purchase and Sales Agreements, GRANTEE shall
construct and install, or cause to be constructed and installed, at its sole
cost, risk and responsibility, the CONNECTING FACILITIES. GRANTEE shall obtain
all necessary easements, rights of way, permits, licenses, authorizations and
approvals necessary therefor over, across, under and in all OFF-SITE PROPERTY
within the paths and areas shown in Exhibit D to this Easement Agreement, to
those Easement Areas upon the Rouge Complex Land and Double Eagle Land shown in
Exhibit E. GRANTORS shall have the right not more often than annually to request
an updated Exhibit D from GRANTEE showing the location of all Off-Site Property
paths and areas.

         SECTION 2.2. ACCESS TO EASEMENT AREAS. GRANTEE shall have the right to
enter the Easement Areas to construct and install, maintain, repair, replace,
inspect and operate the Easement Facilities installed within the Easement Areas
to carry out or avail itself of the rights and benefits of the Easements to
perform the Purchase and Sales Agreements and to meet the Operational Purposes
of the Project. Such right to enter the Easement Areas shall include being given
reasonable access to the Easement Areas, including appropriate staging and
laydown areas to enable the GRANTEE to carry out its work with respect to the
Easement Facilities from time

                                       2
<PAGE>   3

to time, upon reasonable advance notice to GRANTORS by GRANTEE, and GRANTORS
shall not interfere with GRANTEE's right to such reasonable access at all times.
GRANTEE's entry upon the Easement Areas, and all work performed by or for
GRANTEE in the construction, installation, maintenance, repair, replacement,
alteration, inspection, operation and/or removal of the Easement Facilities or
Connecting Facilities, shall be at such times and in such manner as will not
cause any unapproved interruption of, or materially interfere with, the
operations of GRANTORS, and shall be subject to such further conditions as may
be contained in any of the Companion Agreements and in other written agreements
between the GRANTOR parties and GRANTEE from time to time. GRANTORS will not
unreasonably withhold their approval of a limited number of pre-approved
interruptions.

         SECTION 2.3. OBLIGATION OF GRANTEE WITH RESPECT TO EASEMENT FACILITIES
AND AREAS. GRANTEE shall be and remain responsible for (i) the construction and
installation of all Easement Facilities in accordance with approved plans
therefor and such approval shall not be unreasonably withheld by GRANTORS; (ii)
the continuing maintenance, repair, replacement, restoration, operation and
protection of the Easement Facilities and the Easement Areas in good condition
sufficient to serve the purposes for which the Easements have been granted, in
compliance with Governmental Requirements, and in a condition which does not
pose a threat to the safety of persons, property, operations and product on the
Rouge Complex Land, and (iii) except as specifically provided for otherwise
herein, the continuing maintenance in effect of any and all licenses, permits,
authorizations and approvals necessary for the use and operation of the Easement
Areas, and the Easement Facilities and for the carrying out of the Purchase and
Sales Agreements and the meeting of the Operational Purposes of the Project,
including but not limited to accessways over Off-Site Property, the Connecting
Facilities and the Easement Facilities. In all cases, except where in the
reasonable judgment of any of the GRANTORS conditions within an Easement Area
pose an imminent threat to persons, property, operations or product within the
Rouge Complex Land, GRANTEE shall be given notice of GRANTEE's failure to comply
with its obligations under this Section 2.3, and given an opportunity to
promptly cure such failure reasonable under the circumstances. In the case of
GRANTEE's failure to cure the non-compliance with the obligations under this
Section 2.3 after notice and opportunity to cure required under the
circumstances, then after notification to GRANTEE by any means practicable,
GRANTORS or any of them may undertake and carry out any maintenance or other
actions it reasonably deems necessary to place, keep and maintain the Easement
Areas and Easement Facilities in the condition required by this Section 2.3, and
GRANTEE shall reimburse such GRANTOR(s) for the cost thereof promptly upon
demand.

                                   ARTICLE III
                           CIRCULATING WATER EASEMENT

SECTION 3.1. CIRCULATING WATER EASEMENT. For the purpose of providing
circulating water, ROUGE and FORD hereby grant to GRANTEE, its successors and
assigns, without limitation except as herein provided and without charge, a
nonexclusive easement and right of way upon,

                                       3
<PAGE>   4

over, under, across and within the path and area described in Exhibit E (the
"CIRCULATING WATER EASEMENT AREA") for (a) the purpose of obtaining Circulating
Water for use in the Project and in that portion of the Expanded Facility
identified in Section 1.04(a) of the Lease, from the Point of Interconnection on
the Powerhouse Land, with the Point of Interconnection being specifically
located at TP-01 as described in the Interconnection Matrix which is attached
hereto as Exhibit A and incorporated herein by this reference (the
"Interconnection Matrix"), through a circulating water supply system to be
constructed within the Circulating Water Easement Area by GRANTEE; and (b)
return of Circulating Water through a circulating water discharge system to be
constructed within the Circulating Water Easement Area by GRANTEE, and connected
to existing ROUGE Circulating Water discharge lines on the Rouge Complex Land
(the "CIRCULATING WATER EASEMENT").

         The terms and conditions of this Circulating Water Easement shall be as
follows, in addition to such general terms and conditions in this Easement
Agreement affecting all Easements:

                  SECTION 3.1.1. SUPPLY OF WATER. Circulating Water is supplied
to the Rouge Complex Land by means of a tunnel from the Rouge River to a surge
chamber station on the Powerhouse Land identified as TP-01 on the
Interconnection Matrix . The location of the ROUGE Circulating Water supply,
collection, distribution and discharge system is fully described in engineering
drawings filed in the Offices of Rouge Steel Company, Rouge Office Building
(3001 Miller Road, Dearborn, Michigan). The agreement of the GRANTORS regarding
availability and discharge of Circulating Water is contained in Section 4.05 of
the Electricity Sales Agreement as modified by the terms of this Easement
Agreement.

                  The Circulating Water Easement is subject to all of the terms
and conditions of that certain agreement dated May 14, 1929 and amended by
Agreement dated February 19, 1935 between FORD and the City of Detroit, a copy
of which is attached hereto as Exhibit F (the "CITY WATER SUPPLY AGREEMENT").
ROUGE and FORD agree not to terminate the City Water Supply Agreement during the
existence of this Easement Agreement.

                  3.1.2. DISCHARGE OF CIRCULATING WATER. GRANTEE shall have the
right to discharge Circulating Water from the Project and that portion of the
Expanded Facility identified in Section 1.04(a) of the Lease, which at the point
of entry into the existing discharge lines on the Rouge Complex Land meets all
permit specifications from time to time mandated for discharge into public
waters: (i) through ROUGE Outfall 004B (the "Spillway"), presently permitted by
the Department of Environmental Quality of the State of Michigan under the
National Pollutant Discharge Elimination System pursuant to the Federal Water
Pollution Control Act, as amended, and the Michigan Water Resources Act, as
amended, and held by ROUGE under NPDES Permit No. MI0043524, which is attached
hereto as Exhibit G; (ii) through P&UO's Outfall 006 (the "Tailrace"), presently
permitted by the Department of Environmental Quality of the State of Michigan
under the National Pollutant Discharge Elimination System pursuant to the
Federal Water Pollution Control Act, as amended, and the Michigan Water
Resources Act, as amended,

                                       4
<PAGE>   5

and currently held by P&UO under NPDES Permit No. MI0050903 (such permit number
to be transferred to GRANTEE by P&UO and re-issued to GRANTEE as MI0056235 and
Outfall 006 to be transferred to ROUGE by P&UO and subsequently reassigned by
ROUGE to one of its existing permits); and (iii) through Outfall 005 to be
permitted, along with any other outfalls utilized exclusively by GRANTEE, by
GRANTEE by the Department of Environmental Quality of the State of Michigan
under the National Pollutant Discharge Elimination System pursuant to the
Federal Water Pollution Control Act, as amended, and the Michigan Water
Resources Act, as amended, under NPDES Permit No. MI0050903 after transfer of
this permit number to GRANTEE by P&UO which permit shall be re-issued to GRANTEE
as MI0056235(hereinafter referred to as the "DIG Permit") and (the permits
referenced in (i) through (iii) above hereinafter referred to collectively as
the "Permits"). GRANTEE will also comply with reasonable operating requirements
and discharge limitations of GRANTORS with respect to the integrity of the ROUGE
Circulating Water system.

                  Without limiting the generality of the foregoing, GRANTEE: (i)
will not discharge Circulating Water which would cause a violation of existing
or future Permits limits or any limits contained in any other current or future
permits held by FORD or ROUGE (the "Other Permits") laws, rules and regulations
(whether local, state or federal) governing such discharges; (ii) will not
discharge Circulating Water in excess of 173,700 gallons/minute; and (iii) at
such time as the water temperature at the Circulating Water pump intake is less
than 75 degrees Fahrenheit, will not discharge Circulating Water at the
discharge point of the existing surge chamber that has a temperature greater
than 85 degrees Fahrenheit; provided, however, that GRANTEE will not, at such
time as the water temperature at the Circulating Water pump intake is equal to
or greater than 75 degrees Fahrenheit, discharge Circulating Water at the
discharge point of the existing surge chamber that has a temperature
differential from the Circulating Water pump intake greater than 10 degrees
Fahrenheit; provided FORD/ROUGE does not modify or agree to modifications of
such limits without GRANTEE's prior consent, which consent shall not be
unreasonably withheld. All reasonable costs incurred by GRANTORS, if any, to
effect or maintain the circulating water temperature as referenced above shall
be reimbursed by GRANTEE within 30 days of its receipt of GRANTORS' invoice for
such costs.

                  GRANTEE shall provide, maintain and operate upon the Leased
Premises such water treatment processes and facilities as are required to treat
its Circulating Water to meet the discharge specifications of the Permits and
the Other Permits, as applicable, and the operating requirements and discharge
limitations of GRANTORS with respect to Circulating Water being discharged into
the ROUGE Circulating Water system. GRANTEE shall at all times maintain and
operate such processes and facilities in full and unimpaired operational
ability, and provide monitoring and sampling at GRANTEE's discharge point(s) and
control of its water quality and quantity in accordance with the Permits, the
Other Permits and any future regulations or amendments, with reports maintained
by GRANTEE for inspection by GRANTORS and regulatory authorities from time to
time.

                  GRANTEE shall develop a "flow control plan", including gate
modifications, to

                                       5
<PAGE>   6

ensure that the discharges of its Circulating Water as contemplated in this
Agreement do not cause flooding within the Rouge Complex properties, including,
but not limited to, the screen house, powerhouse and the turbo blower room
basement. All costs of developing and implementing the flow control plan,
including all costs of equipment procurement, construction and maintenance of
the equipment installed by or on behalf of GRANTEE, shall be at GRANTEE's sole
cost and expense. FORD and ROUGE shall be responsible for operating the
equipment needed to actualize the flow control plan and the normal operating
costs attendant therewith. GRANTEE shall notify GRANTORS promptly of any release
of its water not in compliance with required conditions. GRANTORS shall provide
GRANTEE with copies of all relevant permit applications, renewals,
modifications, monitoring reports, notifications, letters/notices of violation
and all other Permit related correspondence with local, state and federal
regulatory authorities relating to the Circulating Water system.

                  SECTION 3.1.3. GRANTORS AGREEMENT. ROUGE and FORD shall take
all reasonable means to protect the Easement Facilities against damage by reason
of conduct upon and within the Circulating Water Easement Area lying within the
Rouge Complex Land.

                  SECTION 3.1.4. TERM. The term of this Circulating Water
Easement Agreement shall continue until GRANTEE ceases to operate the Project
pursuant to the Lease, or GRANTEE is not permitted to discharge water pursuant
to the Permits or the Other Permits, whichever is the earlier to occur.

                                   ARTICLE IV
                          SANITARY WASTE WATER EASEMENT

         SECTION 4.1. SANITARY WASTE WATER EASEMENT. For the purpose of
discharging sanitary waste water ("Sanitary Waste Water"), GRANTORS hereby grant
to GRANTEE, its successors and assigns, without limitation except as herein
provided and without charge, a nonexclusive easement and right of way upon,
over, under, across and within the path and area described in Exhibit E (the "
SANITARY WASTE WATER EASEMENT AREA") for (a) the purpose of discharging Sanitary
Waste Water from the Project and in that portion of the Expanded Facility
identified in Section 1.04(a) of the Lease, at the Point of Interconnection on
the Powerhouse Land, with the Point of Interconnection being specifically
located at TP-07 as described in the Interconnection Matrix which is attached
hereto as Exhibit A and incorporated herein by this reference, through a
Sanitary Waste Water discharge system to be constructed within the Waste Water
Easement Area by GRANTEE; and connected to existing waste water discharge
lines/system on the Rouge Complex Land (the "SANITARY WASTE WATER EASEMENT").

         The terms and conditions of this Sanitary Waste Water Easement shall be
as follows, in addition to such general terms and conditions in this Easement
Agreement affecting all Easements:

                                       6
<PAGE>   7

                  SECTION 4.1.1. DISCHARGE OF SANITARY WASTE WATER. GRANTEE will
not discharge Sanitary Waste Water in violation of existing or future permits,
laws, rules and regulations (whether local, state or federal) governing such
discharges. "Sanitary Wastewater" means those waste streams identified as such
pursuant to the City of Dearborn's regulations then in effect.

                  SECTION 4.1.2. MAINTENANCE OF SANITARY WASTE WATER PIPELINE.
At no cost to GRANTEE, GRANTORS shall maintain their sanitary waste water
discharge system so that it is at all times capable of transporting Sanitary
Waste Water from the Point of Interconnection at TP-07 to their waste water
discharge system. GRANTORS' obligation to maintain their waste water discharge
system excludes that portion of any waste water discharge system located on the
Leased Premises or the Sanitary Waste Water Easement Area.

                  SECTION 4.1.3. PERMITS. GRANTORS shall have the sole
responsibility for obtaining and retaining all necessary permits, licenses and
approvals for the discharge of Sanitary Waste Water. GRANTEE shall cooperate
with GRANTORS in their efforts to obtain, retain, renew and amend these permits,
licenses, and approvals.

                  SECTION 4.1.4.  SANITARY WASTE WATER QUALITY.  GRANTEE agrees
that the Sanitary Waste Water will not contain any waste streams associated with
the manufacturing operations of the Project.

                  SECTION 4.1.5. GRANTORS AGREEMENT. ROUGE and FORD shall take
all reasonable means to protect the Easement Facilities against damage by reason
of conduct upon and within the Sanitary Waste Water Easement Area lying within
the Rouge Complex Land.

                  SECTION 4.1.6. TERM. The term of this Sanitary Waste Water
Easement shall continue until GRANTEE ceases to operate the Project or GRANTORS
are no longer permitted to discharge Sanitary Waste Water pursuant to the
applicable permits, whichever is the earlier to occur.

                                    ARTICLE V
                           BLAST FURNACE GAS EASEMENT

         SECTION 5.1. BLAST FURNACE GAS EASEMENT. To carry out the obligations
of GRANTEE under the Blast Furnace Gas Purchase Agreement, FORD and ROUGE hereby
grant to GRANTEE an Easement over, in, across and within the path and area
described in Exhibit E (the "BLAST FURNACE GAS EASEMENT AREA") for the obtaining
and transporting of blast furnace gas produced by ROUGE pursuant to the Blast
Furnace Gas Purchase Agreement (the "BLAST FURNACE GAS EASEMENT").

         The terms and conditions of this Blast Furnace Gas Easement shall be as
follows, in

                                       7
<PAGE>   8

addition to such general terms and conditions in this Easement Agreement
affecting all Easements:

                  SECTION 5.1.1. CONNECTION TO BLAST FURNACE GAS LINE. GRANTEE
shall connect to the blast furnace gas exhaust line at the Point of
Interconnection as referenced in the Blast Furnace Gas Agreement, with the Point
of Interconnection being specifically located at TP-03 as described in the
Interconnection Matrix which is attached hereto as Exhibit A and incorporated
herein by this reference. Blast furnace gas condensate shall be accepted by
ROUGE and will be returned at no cost to location TP-12 of the Interconnection
Matrix.

                  SECTION 5.1.2.  TERM.  The term of this Blast Furnace Gas
Easement shall continue for so long as GRANTEE consumes ROUGE's blast furnace
gas.

                                   ARTICLE VI
                          ELECTRICITY SUPPLY EASEMENTS

         SECTION 6.1. ELECTRICITY SUPPLY EASEMENT. To carry out the obligations
of GRANTEE under the Electricity Sales Agreements, FORD and ROUGE hereby grant
to GRANTEE an easement over, in, across and within the paths and areas described
in Exhibit E (the "ELECTRICITY SUPPLY EASEMENT AREA") for the furnishing of
electricity to FORD, ROUGE and to DOUBLE EAGLE pursuant to the Electricity Sales
Agreements and for interconnection of the Project to the Detroit Edison power
grid (the "ELECTRICITY SUPPLY EASEMENT").

         The terms and conditions of this Electricity Supply Easement shall be
as follows, in addition to such general terms and conditions in this Easement
Agreement affecting all Easements:

                  SECTION 6.1.1. CONNECTION TO ROUGE COMPLEX ELECTRICITY
DISTRIBUTION SYSTEM. GRANTEE shall provide electric distribution lines within
the Electricity Supply Easement Area connecting at the Points of Delivery
through Interconnection Facilities as referenced in the Electricity Sales
Agreements, with the Points of Delivery being specifically located as described
in the One Line Diagram No.430000-0-SL-6-ET-3, REV. 02 which is attached hereto
as Exhibit I and incorporated herein by this reference, which shall constitute
Easement Facilities for purposes of this Easement Agreement.

                  SECTION 6.1.2. USE OF EXISTING FACILITIES. GRANTORS hereby
grant to GRANTEE the right to use the facilities known as Substations 41, 41A,
42, 48-49, 49A and 99A to transform and distribute electricity. GRANTEE shall
operate, maintain and replace, if necessary, those facilities which it uses
pursuant to this paragraph, as more particularly described in Exhibit J attached
hereto and incorporated herein by this reference. This right shall continue for
so long as GRANTEE is supplying electricity to any of the GRANTORS. All Easement
Facilities upon the Powerhouse Land and all other property of GRANTEE upon the
Rouge

                                       8
<PAGE>   9

Complex Land in any way connected with the electricity distribution system upon
the Rouge Complex Land west of Miller Road shall at the time of expiration of
the Electricity Sales Agreements be abandoned in place with the concurrence of
the GRANTORS.

         SECTION 6.2. EASEMENT TO SUPPLY ELECTRICITY TO DOUBLE EAGLE.
Electricity to DOUBLE EAGLE shall be provided by means of distribution lines
from the Project to and within an easement granted to The Detroit Edison Company
by instrument dated July 3, 1985, recorded in Liber 22467 page 736, Wayne County
Records (the "DE EASEMENT"), a copy of which is attached hereto as Exhibit K.
GRANTEE shall obtain such rights to place equipment and facilities within and
use the easement area of such DE Easement at its responsibility and expense as
required to fulfill its obligations under the Purchase and Sales Agreements. If
the DE Easement is not available for GRANTEE's use after exercising commercially
reasonable efforts to secure use of the same, or the Parties agree otherwise,
GRANTEE shall use commercially reasonable efforts to secure a substitute
easement area.

         SECTION 6.3. TERM The term of this Electricity Transmission Easement
shall continue for so long as GRANTEE operates the Project to deliver
electricity to FORD or ROUGE.

                                   ARTICLE VII
                              STEAM SUPPLY EASEMENT

         SECTION 7.1. STEAM SUPPLY EASEMENT. To carry out the obligations of
GRANTEE under the Steam Sales Agreements, FORD and ROUGE hereby grant to GRANTEE
an easement over, in, across and within the path and area described in Exhibit E
(the "STEAM SUPPLY EASEMENT AREA") for the furnishing of steam to ROUGE and FORD
pursuant to the Steam Sales Agreements (the "STEAM SUPPLY EASEMENT").

         The terms and conditions of this Steam Supply Easement shall be as
follows, in addition to such general terms and conditions in this Easement
Agreement affecting all Easements:

                  SECTION 7.1.1. CONNECTION TO STEAM LINES ON POWERHOUSE LAND.
GRANTEE shall provide a steam line within the Steam Supply Easement Area
connecting into the Rouge Complex steam distribution system at the Point of
Delivery referenced in the Steam Sales Agreements, with the Points of Delivery
being specifically described as TP-05 in the Interconnection Matrix which is
attached hereto as Exhibit A and incorporated herein by this reference, to
supply steam in such quantities and at such pressures and temperatures as are
specified in the Steam Sales Agreements.

                  SECTION 7.1.2. TERM The term of this Steam Supply Easement
shall continue for so as long as GRANTEE operates the Project to deliver steam
to FORD or ROUGE.

                                       9
<PAGE>   10
                                  ARTICLE VIII
                          TREATED WATER SUPPLY EASEMENT

         SECTION 8.1. TREATED WATER SUPPLY EASEMENT. To carry out the
obligations of GRANTEE under the Treated Water Sales Agreement, FORD and ROUGE
hereby grant to GRANTEE an easement over, in, across and within the path and
area described in Exhibit E (the "TREATED WATER SUPPLY EASEMENT AREA") for the
furnishing of treated water pursuant to the Treated Water Sales Agreement (the
"TREATED WATER SUPPLY EASEMENT").

         The terms and conditions of this Treated Water Supply Easement shall be
as follows, in addition to such general terms and conditions in this Easement
Agreement affecting all Easements:

                  SECTION 8.1.1. CONNECTION TO TREATED WATER LINES ON POWERHOUSE
LAND. GRANTEE shall connect the treated water line to the Point of Delivery
referenced in the Treated Water Sales Agreement on the Powerhouse Land, with the
Point of Delivery being specifically described as TP-09 in the Interconnection
Matrix to furnish treated water to the Rouge Complex in accordance with the
Treated Water Sales Agreement.

                  SECTION 8.1.2.  TERM.  The term of this Treated Water Supply
Easement shall continue for so long as GRANTEE operates the Project to deliver
treated water to FORD or ROUGE.

                                   ARTICLE IX
                           CONDENSATE RETURN EASEMENT

         SECTION 9.1. CONDENSATE RETURN EASEMENT. To carry out the obligations
of GRANTEE and ROUGE under the Steam Sales Agreement, ROUGE and FORD hereby
grant to GRANTEE an easement over, in, across and within the path and area
described in Exhibit E (CONDENSATE RETURN EASEMENT AREA") for the return of
condensate pursuant to the Steam Sales Agreement (the "CONDENSATE RETURN
EASEMENT").

         The terms and conditions of this Condensate Return Easement shall be as
follows, in addition to such general terms and conditions in this Easement
Agreement affecting all Easements:

                  SECTION 9.1.1. CONNECTION TO CONDENSATE RETURN LINE ON
POWERHOUSE LAND. GRANTEE shall connect the condensate return line to the Point
of Delivery on the Powerhouse Land, with the Point of Delivery being
specifically described as TP-04 A/B in the Interconnection Matrix to take
delivery of condensate from ROUGE's turbo blowers or FORD in accordance with the
Steam Sales Agreements.

                                       10
<PAGE>   11

                  SECTION 9.1.2. TERM. The term of this Condensate Return
Easement shall continue for so long as GRANTEE continues to receive and pay for
ROUGE's or FORD's condensate and ROUGE or FORD are receiving steam from GRANTEE.
Nothing herein shall serve to require the GRANTORS to continue to operate the
equipment which generates the condensate referenced in this Article.

                                    ARTICLE X
                          PROCESS WASTE WATER EASEMENT

         SECTION 10.1. PROCESS WASTE WATER EASEMENT. GRANTORS hereby grant to
GRANTEE, its successors and assigns, without limitation except as herein
provided and without charge, a nonexclusive easement and right of way upon,
over, under, across and within the path and area described in Exhibit E (the "
PROCESS WASTE WATER EASEMENT AREA") for (a) the purpose of discharging Process
Waste Water from the Project and in that portion of the Expanded Facility
identified in Section 1.04(a) of the Lease, at the Point of Interconnection on
the Powerhouse Land, with the Point of Interconnection being specifically
located at T P06 as described in the Interconnection Matrix through a waste
water discharge system to be constructed within the Process Waste Water Easement
Area by GRANTEE; and connected to existing waste water discharge lines/system on
the Rouge Complex Land (the "PROCESS WASTE WATER EASEMENT").

         The terms and conditions of this Process Waste Water Easement shall be
as follows, in addition to such general terms and conditions in this Easement
Agreement affecting all Easements:

                  10.1.1.  INTENTIONALLY LEFT BLANK

                  10.1.2. DISCHARGE OF PROCESS WASTE WATER. GRANTEE shall have
the right to discharge Process Waste Water from the Project and that portion of
the Expanded Facility identified in Section 1.04(a) of the Lease, which at the
point of entry into the existing discharge lines on the Rouge Complex Land meets
all permit specifications from time to time governmentally mandated for
discharge into public waters: (i) through P&UO's Outfall 006 (the "Tailrace"),
presently permitted by the Department of Environmental Quality of the State of
Michigan under the National Pollutant Discharge Elimination System pursuant to
the Federal Water Pollution Control Act, as amended, and the Michigan Water
Resources Act, as amended, and currently held by P&UO under NPDES Permit No.
MI0050903 (such permit number to be transferred to GRANTEE by P&UO and re-issued
to GRANTEE as MI0056235 and Outfall 006 to be transferred to ROUGE by P&UO and
subsequently reassigned by ROUGE to one of its existing permits); and (ii)
through Outfall 005 to be permitted, along with any other outfalls utilized
exclusively by GRANTEE, by GRANTEE by the Department of Environmental Quality of
the State of Michigan under the National Pollutant Discharge Elimination System
pursuant to the Federal Water Pollution Control Act, as amended, and the
Michigan Water Resources Act, as

                                       11
<PAGE>   12

amended, under NPDES Permit No. MI0050903 after transfer of this permit number
to GRANTEE by P&UO and re-issued to GRANTEE as MI0056235 (hereinafter referred
to as the "DIG Permit") and (the permits referenced in (i) and (ii) above
hereinafter referred to collectively as the "Permits"). GRANTEE will also comply
with reasonable operating requirements and discharge limitations of GRANTORS
with respect to the integrity of the ROUGE Circulating Water system.

                  Without limiting the generality of the foregoing, GRANTEE: (i)
will not discharge Process Waste Water which would cause a violation of existing
or future Permits limits or any limits contained in any other current or future
permits held by FORD or ROUGE (the "Other Permits"), laws, rules and regulations
(whether local, state or federal) governing such discharges; and (ii) will not
discharge in excess of 4,000gallons/minute.

                  GRANTEE shall provide, maintain and operate upon the Leased
Premises such water treatment processes and facilities as are required to treat
its Process Waste Water to meet the discharge specifications of the Permits and
the Other Permits, as applicable, and the operating requirements and discharge
limitations of GRANTORS with respect to Process Waste Water being discharged
into the Tailrace. GRANTEE shall at all times maintain and operate such
processes and facilities in full and unimpaired operational ability, and provide
monitoring and sampling at GRANTEE's discharge point(s) and control of its water
quality and quantity in accordance with the Permits, the Other Permits and any
future regulations or amendments, with reports maintained by GRANTEE for
inspection by GRANTORS and regulatory authorities from time to time.

                  GRANTEE in developing the "flow control plan" identified in
Section 3.1.2 hereof shall ensure that the discharges of its Process Waste Water
as contemplated in this Agreement do not cause flooding within the Rouge Complex
properties, including, but not limited to, the screen house, powerhouse and the
turbo blower room basement. All costs of developing and implementing that flow
control plan, including all costs of equipment procurement, construction and
maintenance of the equipment installed by or on behalf of GRANTEE, shall be at
GRANTEE's sole cost and expense. FORD and ROUGE shall be responsible for
operating the equipment needed to actualize the flow control plan and the normal
operating costs attendant therewith. GRANTEE shall notify GRANTORS promptly of
any release of its water not in compliance with required conditions. GRANTORS
shall provide GRANTEE with copies of all relevant permit applications, renewals,
modifications, monitoring reports, notifications, letters/notices of violation
and all other permit related correspondence with local, state and federal
regulatory authorities relating to Process Waste Water discharges.

                  SECTION 10.1.3. MAINTENANCE OF TAILRACE. At no cost to
GRANTEE, GRANTORS shall maintain the Tailrace so that it is at all times capable
of transporting GRANTEE's Process Waste Water as contemplated herein. GRANTORS'
obligation to maintain the Tailrace excludes any obligations with respect to
that portion of any waste water discharge system located on the Leased Premises
or the Process Waste Water Easement Area.

                                       12
<PAGE>   13

                  SECTION 10.1.4. PERMITS. ROUGE shall have the sole
responsibility for obtaining and retaining all necessary permits, licenses and
approvals, for the discharge of Process Waste Water to the Tailrace (Outfall
006). GRANTEE shall cooperate with ROUGE in its efforts to obtain, retain, renew
and amend these permits, licenses and approvals.

                  SECTION 10.1.5. PROCESS WASTE WATER QUALITY. GRANTEE agrees
that the quality of the Process Waste Water will meet the limits found in the
Permits and the Other Permits, as demonstrated by the sampling and testing
program of GRANTEE. GRANTEE agrees to make its sampling data available to
GRANTORS upon GRANTORS request.

                  SECTION 10.1.6. GRANTORS AGREEMENT. ROUGE and FORD shall take
all reasonable means to protect the Easement Facilities against damage by reason
of conduct upon and within the Process Waste Water Easement Area lying within
the Rouge Complex Land.

                  SECTION 10.1.7. TERM. The term of this Process Waste Water
Easement shall continue until GRANTEE ceases to operate the Project pursuant to
the Lease, or GRANTEE is not permitted to discharge Process Waste Water pursuant
to the Permits or the Other Permits, whichever is the earlier to occur.

                                   ARTICLE XI
                             DEFAULT AND TERMINATION

         SECTION 11.1. EVENTS OF DEFAULT. Any of the following occurrences or
events, whether caused by GRANTEE or GRANTORS, shall constitute a default under
this Easement Agreement:

    (a)  Failure by GRANTEE or GRANTORS to perform fully any material provision
         of this Easement Agreement, and (i) such failure continues without cure
         for a period of one hundred twenty (120) days after written notice of
         such nonperformance or (ii) if the non-performing party shall commence
         cure within such one hundred twenty (120) days and shall thereafter
         proceed with all due diligence to cure such failure, such failure is
         not cured within such longer period as shall be necessary for such
         party to cure the same with all due diligence.

    (b)  Failure by GRANTEE or GRANTORS to perform any material provision within
         a Companion Agreement which failure is not cured within the time period
         provided for in that agreement.

         SECTION 11.2. TERMINATION. In the event that either GRANTEE or any of
the GRANTORS are in default under this Easement Agreement, the defaulting party
may, within thirty (30) days following receipt of notice from the non-defaulting
party of such default, cure the

                                       13
<PAGE>   14

default. If the default is not so cured, this Easement Agreement may be
terminated without obligation to or recourse by the defaulting party on thirty
(30) days notice by the non-defaulting party to both the defaulting party and,
in the case of GRANTEE, any lender of the Project which requires such notice.

                                   ARTICLE XII
                                    INSURANCE

         SECTION 12.01. INSURANCE. GRANTEE shall maintain or cause to be
maintained in effect, insurance policies with respect to the Easement Areas,
Easement Facilities and the Project as required in the Insurance and
Indemnification Agreement.

                                  ARTICLE XIII
                 GENERAL CONDITIONS AND MISCELLANEOUS PROVISIONS

         SECTION 13.1.  INTENTIONALLY LEFT BLANK

         SECTION 13.2. RESTORE SITE AFTER WORK. Upon completion of any work
within the Easement Areas, GRANTEE, at its sole cost and expense, shall promptly
remove all debris, surplus earth, materials and equipment from the Easement
Areas and shall restore the same to the condition existing prior to such work.

         SECTION 13.3. APPROVAL OF DESIGN AND PLANS. The design of all Easement
Facilities and Connecting Facilities shall be subject to the prior written
approval of ROUGE and FORD, which approval shall not be unreasonably withheld,
but which shall be expressly conditioned on the minimization of interference
with the full use of the property subjected to the Easements by FORD and ROUGE,
the minimization of impact of connection of the Easement Facilities to existing
systems upon the Rouge Complex Land, the ability to remove the connections
between GRANTEE's and GRANTORS' operations facilitated by the Easements without
undue interruption or disturbance of the Rouge complex operations, the
compatibility of materials and processes with other functions upon the land
subject to the Easements and like considerations. All construction drawings
shall be provided to ROUGE and FORD for review and approval prior to the
commencement of construction upon any of the Easement Areas, whether initial
construction or any later construction, reconstruction, replacement or major
repair activity is undertaken, and copies of as-built drawings, and electronic
format compatible with FORD/ROUGE drafting systems, shall be provided to ROUGE
and retained in the Offices of Rouge Steel Company, Rouge Office Building (3001
Miller Road, Dearborn, Michigan). FORD and ROUGE shall have a maximum of ten
(10) business days to review and approve any designs, construction drawings,
etc. described in this Section 13.3. Provided that GRANTEE has made a written
request for such review and approval from the Vice President of Operations, in
the case of ROUGE, and the Manager of Electrical Programs, in the case of FORD,
then the failure of that

                                       14
<PAGE>   15

individual to respond to GRANTEE's request within ten (10) business days
following receipt of GRANTEE's written request shall be deemed that individual's
consent to the actions proposed in the request. Notwithstanding the foregoing,
no such consent shall be implied if such failure to respond within ten (10)
business days is due to the fact that GRANTEE's request for such review and
approval is unreasonable based on the number and/or complexity of the designs,
construction drawings, etc. submitted for review or such similar reasons. Any
review and/or approval given by FORD or ROUGE pursuant to this Section 13.3
shall be for coordination purposes only and shall not constitute approval of
engineering.

         SECTION 13.4. NO DEDICATION. By grant of the Easements, GRANTORS do not
intend to dedicate any part thereof for public use. Use of the Easements shall
be limited to the GRANTEE, its successors in title or interest, including but
not limited to any mortgagee now or hereafter having a lien upon the interests
of the GRANTEE in the Leased Premises or the Project.

         SECTION 13.5. BINDING ON SUCCESSORS. The provisions of, and the
Easements, rights and benefits granted by, this Easement Agreement shall be
binding upon and inure to the benefit of the GRANTORS, the GRANTEE and their
respective permitted successors and assigns as defined in the other Operative
Documents, including but not limited to any mortgagee having a lien upon the
interest of GRANTEE in the Leased Premises or the Project. The covenants and
agreements contained in this Easement Agreement shall be construed and applied
as in furtherance of and not in conflict with or limitation of the rights
granted by, the other Operative Documents to which GRANTORS and GRANTEE are
parties.

         SECTION 13.6. EASEMENTS PERSONAL TO GRANTEE. The Easements, and the
rights and benefits granted or afforded to GRANTEE by this Easement Agreement
shall be deemed personal unto GRANTEE and shall remain in effect as set forth in
the foregoing provisions of this Easement Agreement.

         SECTION 13.7.  GOVERNING LAW.  This Easement Agreement shall be
governed by and construed in accordance with the laws of the State of Michigan.

         SECTION 13.8.  REFERENCES.  All references in this Easement Agreement
to Articles and Sections shall, unless otherwise specified, refer to the
Articles and Sections of this Easement Agreement.

         SECTION 13.9. CAPTIONS. The captions heading each Article and Section
in this Easement Agreement are intended for convenience of reference purposes
only, and shall not be construed as limiting or defining the subjects contained
within the text.

         SECTION 13.10. NOTICES. All notices required to be given in writing
hereunder shall, unless the contrary is specified in this Agreement, be given to
the respective Parties at the following address, or at such other addresses as
the Parties respectively may designate in writing to each other either by
hand-delivery or registered mail:

                                       15
<PAGE>   16

If to GRANTEE, addressed to:        Dearborn Industrial Generation, L.L.C.
                                    c/o CMS Generation Co.
                                    330 Town Center Drive, Suite 1000
                                    Dearborn, Michigan 48126
                                    Attn:  Vice President Operations

With a copy to:                     Dearborn Industrial Generation, L.L.C.
                                    c/o CMS Generation Co.
                                    330 Town Center Drive, Suite 1000
                                    Dearborn, Michigan 48126
                                    Attn: General Counsel

If to FORD, addressed to:           Ford Motor Company
                                    c/o Ford Motor Land Services Corporation
                                    Parklane Towers East
                                    One Parklane Blvd.
                                    Dearborn, MI  48121
                                    Attn: Vice President Energy E&S

With a copy to:                     Ford Motor Company
                                    The American Road
                                    Dearborn, MI  48126
                                    Attn:  Secretary

If to ROUGE, addressed to:          Rouge Steel Company
                                    3001 Miller Road
                                    P.O. Box 1699
                                    Dearborn, Michigan 48121
                                    Attention: Chief Financial Officer

With a copy to:                     Rouge Steel Company
                                    3001 Miller Road
                                    P.O. Box 1699
                                    Dearborn, Michigan 48121
                                    Attention: General Counsel

The Parties shall also notify each other of the address for invoices and routine
billing correspondence.

         Any such notice shall be deemed to have been given as of the date so
delivered by hand, or in the case of a mailed or express delivered notice, when
received at the respective addresses referred to

                                       16
<PAGE>   17

above.

         This Easement Agreement may be executed in one or more counterparts
which, taken together, shall constitute a single instrument.

         SECTION 13.11. EXHIBITS. Certain of the Exhibits to this Easement
Agreement may not be completed and attached at the time this Easement Agreement
is executed. The Parties agree that any such Exhibit shall be subsequently
agreed upon by all Parties, acting reasonably and in good faith. Upon such
agreement, any such Exhibit shall be initialed by all Parties to indicate their
agreement and shall be attached hereto and made a part hereof as though it had
been attached at the time this Easement Agreement was executed.

         SECTION 13.12. FURTHER ASSURANCES. The Parties intend this Easement
Agreement to be in a form such that it can be recorded at the Wayne County
Register of Deeds with respect to the real property on which the Easement Areas
are located. In the event that this Easement Agreement does not meet the
requirements for such recording for any reason, the Parties agree to negotiate,
acting reasonably and in good faith, and execute such amendments to this
Easement Agreement and/or the Exhibits or Appendix hereto as may be necessary to
enable this Easement Agreement to be so recorded in accordance with the
intentions of the Parties.

               (THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK)
                      (SIGNATURES BEGIN ON FOLLOWING PAGE)

                                       17
<PAGE>   18
         IN WITNESS WHEREOF, the parties have executed and delivered this
Easement Agreement as of the date indicated below.

In Presence of:
                                      ROUGE STEEL COMPANY, a
                                      Delaware corporation

                                      By:
                                         --------------------------------------

                                      Its:
                                          -------------------------------------
                                      Dated:
                                            -----------------------------------

                                      FORD MOTOR COMPANY, a
                                      Delaware corporation

                                      By:
                                         --------------------------------------

                                      Its:
                                          -------------------------------------
                                      Dated:

                                      DOUBLE EAGLE STEEL COATING
                                      COMPANY, a Michigan partnership

                                      Rouge Steel Company (Partner)

                                      By:
                                         --------------------------------------

                                      Its:
                                          -------------------------------------
                                      Dated:

                                      U.S.Steel Corporation (Partner)

                                      By:
                                         --------------------------------------

                                      Its:
                                          -------------------------------------

                                       18
<PAGE>   19
                                      Dated:

                                      DEARBORN INDUSTRIAL GENERATION,
                                      L.L.C., a Michigan limited liability
                                      company

                                      By:
                                         --------------------------------------

                                      Its:
                                         --------------------------------------

----------------------------
Dated:

                                       19

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