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5.A.(1) Lease Termination Agreement (SASCO)
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5.A.(1) Lease Termination Agreement (SASCO)
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9/30/2009 8:46:39 AM
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<br /> <br />I.TCU is willing to terminate the Lease prior to the expiration of the Renewal Term <br />subject to the terms of this Agreement and the payment of the consideration provided herein. <br /> <br />J.Accordingly, in the interest of avoiding the uncertainty and expense of litigation, <br />preserving the Assets in South Bend, and to definitively determine the limit of the Commission’s <br />responsibility and/or liability regarding the termination of the Lease and the relocation of the <br />Assets, TCU and the Commission desire to amicably settle and resolve all matters between them <br />regarding the Lease and the relocation of the Assets. <br /> <br />NOW THEREFORE, THE PARTIES AGREE: <br /> <br />1.The above recitals to this Agreement are true and correct and made a part hereof <br />as if set forth verbatim herein. <br /> <br />2.The Commission shall pay to TCU, upon execution of this Agreement, the sum of <br />Six Hundred Eighty-Six Thousand Dollars ($686,000.00) (the “Settlement Payment”). <br /> <br />3.Upon execution of this Agreement and the payment of the Settlement Payment, <br />TCU agrees that all of its rights, benefits and/or privileges relating to the relocation of the Assets <br />shall terminate and TCU hereby releases the Commission from any further liability regarding <br />same. <br /> <br />4.Upon execution of this Agreement and the payment of the Settlement Payment, <br />the parties agree that all rights, benefits and privileges accruing to both TCU and the <br />Commission pursuant to the Lease shall terminate as of 12:00 o’clock midnight, local time, <br />February 14, 2010 unless extended in writing by both parties (the "Termination Date") and, <br />providing the conditions hereof are satisfied, TCU and the Commission shall each be relieved of <br />all respective liabilities and obligations under the Lease upon the Termination Date. <br /> <br />5.TCU agrees to quit, surrender and vacate the Premises on the Termination Date. <br />TCU shall deliver the keys to and relinquish any right of possession of the Premises and the <br />Commission shall accept same as of the Termination Date. <br /> <br />6.In partial consideration of this Agreement, (i) all defaults of the Lease occurring <br />prior to the date of the execution of this Agreement shall be deemed waived by the Commission; <br />(ii) TCU shall have no obligation to pay rent accruing prior to the Termination Date; and (iii) any <br />renewal and notice of renewal required pursuant to the Lease to assure occupancy of the <br />Premises by TCU until the Termination Date shall be deemed to have been appropriately and <br />effectively made. <br /> <br />7.Also, as partial consideration of this Agreement, TCU commits to using all <br />commercially reasonable efforts to market and sell as much of the Assets comprising the <br />Studebaker parts inventory and related materials as can be reasonably accomplished prior to the <br />Termination Date. <br /> <br />8.TCU shall otherwise comply with all obligations owing to the Commission under <br />the Lease through the Termination Date except as otherwise specifically set forth herein, and <br />further subject to the following: (i) TCU shall have no obligation to construct, or make repair of, <br />any improvements at or to the Premises; (ii) TCU shall have no obligation to comply with <br />- 2 - <br /> <br />
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