Exhibit 10.36
SETTLEMENT AGREEMENT
THIS SETTLEMENT AGREEMENT, is made this 14th day of March, 2002, by and
between Featherlite, Inc., hereinafter referred to as "Featherlite", and Xxxxxxx
Properties, LLC., hereinafter referred to as "Xxxxxxx Properties".
WHEREAS, Xxxxxxx Properties did proceed with the acquisition of certain
land and the construction of a building, which was going to be leased and
occupied by Featherlite near Statesville, North Carolina, and
WHEREAS, it then became apparent to Featherlite that it was in
Featherlite's best interest not to enter into a long term rental arrangement to
occupy the building that had been in the process of construction between X. X.
Xxxxxx Building, Co. and Xxxxxx Properties Limited Partnership as contractors
and Xxxxxxx Properties as owner, and
WHEREAS, Xxxxxxx Properties was able to enter into a settlement
agreement with X. X. Xxxxxx Building Co. and Xxxxxx Properties Limited
Partnership, a copy of which is attached hereto as Exhibit "A", so as to limit
the exposure of Xxxxxxx Properties as well as Featherlite, and
WHEREAS, the parties hereto now intend to resolve the loss occasioned
by Xxxxxxx Properties and the acquisition and construction of the building and
their settlement with X. X. Xxxxxx Building, Co. and Xxxxxx Properties Limited
Partnership, as set forth on that agreement, attached as Exhibit "A".
NOW THEREFORE, the parties hereto agree relative to a mutual settlement
and mutual release as follows:
1. Xxxxxxx Properties acknowledges that their loss occasioned by the
acquisition of real estate and the construction of a facility for Featherlite is
in the amount of $302,000.00. Xxxxxxx Properties has entered into an agreement
and release wherein X. X. Xxxxxx Building Co. and Xxxxxx Properties Limited
Partnership will not make any further demands of the limited liability company
nor the individual Guarantors.
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2. It is understood and agreed that Featherlite shall pay to Xxxxxxx
Properties a monthly payment of $9,000.00 each month until the $302,000.00 shall
be payable in full commencing March 10, 2002, and each 10th of the month
thereafter. There shall be no interest that accrues on the $302,000.00, it being
the intention of the parties that the settlement amount of $302,000.00 shall be
payable over an extended period of time without interest at the rate of
$9,000.00 per month.
3. Upon the execution of this agreement and the commencement of the
payments, the parties hereto shall enter into a Lease Termination Agreement with
said Lease Termination Agreement to be delivered to Xxxxxx Properties Limited
Partnership and X. X. Xxxxxx Building Co. X. X. Xxxxxx Building Co. and Xxxxxx
Properties Limited Partnership have agreed that upon receipt of said Lease
Termination Agreement Xxxxxx Properties Limited Partnership and X. X. Xxxxxx
Building Co. will provide Featherlite, Inc. with an agreement acknowledging that
Xxxxxx Properties Limited Partnership and X. X. Xxxxxx Building Co. do not have
any claim against Featherlite, Inc. arising from any lease by and between
Xxxxxxx Properties and Featherlite, Inc.
4. Xxxxxxx Properties hereby releases and holds harmless any and all
claims relative to Featherlite, Inc. not occupying the facility constructed by
X. X. Xxxxxx Building Co. and Xxxxxx Properties Limited Partnership with the
exception of the payments of $9,000.00 per month to be made pursuant to this
agreement until $302,000.00 has been paid in full.
5. Featherlite and Xxxxxxx Properties acknowledge that any lease
whether written or oral between Featherlite and Xxxxxxx Properties regarding the
Statesville, North Carolina facility is hereby terminated and shall have no
force and effect whatsoever.
6. Xxxxxxx Properties herein hereby settles and releases any and all
claims that they may have had against Featherlite relative to the acquisition of
real estate and the construction of a facility with the intent to rent the same
to Featherlite through any oral or written lease agreement and hereby release
Featherlite from any and all liability related to the Statesville, North
Carolina facility.
7. This is the full and complete understanding of the parties hereto
and there are no other agreements except as set forth herein.
8. The terms and provisions of this agreement shall be binding upon and
inure to the benefit of the parties hereto, their heirs, personal
representatives, successors and assigns. This agreement shall be governed by and
construed in accordance with the laws of the State of Iowa.
IN WITNESS WHEREOF the parties hereto have entered into this agreement
the date and year first above written.
Xxxxxxx Properties, Inc. Featherlite, Inc.
/s/ X. Xxxxxxx, /s/ X. X. Xxxxxxx, V.
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By: Xxxxxx Xxxxxxx, Managing Partner By: Xxxxx Xxxxxxx, Vice President
/s/ Xxxxxxx X. Xxxxx
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By: Xxxxxxx X. Xxxxx,
Chief Financial Officer
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