Exhibit 10.1


 





Execution Version


 


DEALERSHIP ASSET PURCHASE AGREEMENT


 


This DEALERSHIP ASSET PURCHASE
AGREEMENT (this “Agreement”) is effective as of the date Western Title Company (Lubbock) (“Escrow
Agent”) executes the escrow receipt on the last page hereto (the “Effective Date”), and is among
LMP Lubbock 001 Holdings, LLC, a Texas limited liability company (“Buyer”), acting herein by and through Steve
McGavock, a resident of Texas (“Principal”), and McGavock Auto Group, L.L.P., a Texas limited partnership, McGavock
Nissan of Abilene, L.L.P., a Texas limited partnership, McGavock Nissan of Amarillo, LP, a Texas limited partnership, McGavock West Texas
Motors, L.P., a Texas limited partnership, and McGavock Nissan of San Marcos, L.P., a Texas limited partnership (collectively, the “Seller”),
and together with Buyer and Principal, each a “Party” and, collectively, the “Parties”).


 


RECITALS:


 


WHEREAS, Seller owns,
controls and operates four (4) Nissan motor vehicle dealerships and one (1) Infiniti dealership and all ancillary business related thereto
(the “Business”) being (i) McGavock Nissan Abilene located at 818 E Overland Trail, Abilene, TX 79601, (ii)
McGavock Nissan Amarillo located at 4700 S Soncy Rd., Amarillo, TX 79119, (iii) McGavock Nissan Lubbock located at 6312 Milwaukee Ave.,
Lubbock, TX 79424, (iv) McGavock Nissan San Marcos located at 2980 I-35, San Marcos, TX 78666, and (v) Infiniti of Lubbock located at
6225 TX-327 Spur, Lubbock, TX 79424 (individually, a “Dealership” and collectively, the “Dealerships”),
under agreements with Nissan North America Inc. (collectively, “Manufacturer”);


 


WHEREAS, Seller and
Principal desire to sell and transfer substantially all of the Dealerships’ assets (as more particularly described in Section
2 below, but excluding the Excluded Assets defined below, collectively, the “Assets”) to Buyer, and Buyer
desires to purchase said assets on the terms and conditions hereinafter set forth; and


 


WHEREAS, in addition
to the foregoing, Buyer desires to obtain an exclusive right of first refusal to purchase the McGavock Nissan Rockwall dealership located
at 1700 I-30, Rockwall, TX 75087, and McGavock Nissan of Rockwall, L.P. (“Rockwall Dealer”) is willing to grant
the right of first refusal on the terms and provisions hereinafter set forth.


 






     


     


    

 


AGREEMENT:


 


NOW, THEREFORE, in
consideration for the mutual promises contained in this Agreement, the receipt and sufficiency of which is hereby acknowledged by each
Party, the Parties agree as follows:


 


1. Timing
& Money.


 


(a) Inspection
Period & Closing Date. From the Effective Date through the later of (i) sixtieth (60th) day after the Effective Date
or (ii) ten (10) days after receipt of audited financial statements of Seller are delivered to Buyer (the “Inspection Period”),
Buyer may terminate this Agreement for any or no reason upon written notice to Seller and Buyer shall receive a full refund of the Earnest
Money (defined below) without any written permission from Seller, Principal or any other person or entity. The “Closing Date
Deadline” means the date that is no later than December 31, 2021; provided, however, that if, as of the seventh
(7th) day prior to such date, the approvals or other conditions set forth in Sections 8(a) and 8(c) of this Agreement
have not been obtained, the Closing Date Deadline will automatically be extended for thirty (30) days. The Closing will occur on a mutually
agreed to business day by the Closing Date Deadline within ten (10) days after the satisfaction or waiver of the pre-Closing Date conditions
contained in Section 8 below.


 


(b) Purchase
Price & Broker. The purchase price for the Assets described in Section 2(e) below is $61,500,000.00 (the “Goodwill
Price”), payable in cash equal to $51,500,000 and LMP Stock (defined below) equal to up to $10,000,000 on the Closing Date
(the foregoing collectively being the “Purchase Price”). Each Party shall use the Purchase Price and other allocation
described in the spreadsheet detailing inventories, values, debits and credits executed and delivered by the Parties upon Closing (the
“Closing Memorandum”) in all reporting to, and all tax returns filed with, the Internal Revenue Service and
other state and local taxing authorities. National Business Brokers, Inc. (the “Broker”) assisted Seller and
Buyer with the transactions contemplated herein; the fees of which will be paid by Seller and Buyer on the Closing Date pursuant to the
agreement between the Parties and the Broker.


 


(c) LMP
Stock.


 


(i) Issue
Price. Buyer will issue at Closing common stock of LMP Automotive Holdings, Inc., a Delaware corporation (NASDAQ: LMPX, the “LMP
Stock”) equal up to $10,000,000 calculated at a price per share (rounded down to the nearest whole share, the “Issue
Price”) equal to the greater of (i) the average price per share of LMP Stock as reported at the closing of the NASDAQ
Composite stock market exchange for each of the five (5) trading days prior to the Closing Date and (ii) the average price per share of
LMP Stock as reported at the closing of the NASDAQ Composite stock market exchange for each of the five (5) trading days prior to the
Effective Date; provided, that Buyer is not obligated to issue more than that number of shares of LMP Stock or LMP Stock shares
sufficient to make Seller or any Principal own or control 10% or more of LMP Stock (“Maximum Shares”). If the
product of the Maximum Shares and the Issue Price (the “Maximum Equity Value”) is greater than 10% or
more of LMP Stock, then Buyer shall pay Seller cash in an amount equal to the difference between the Maximum Shares and the Maximum
Equity Value.


 


(ii) Price
Protection. If Buyer elects to issue LMP Stock to Seller pursuant to Section 1(c)(i) above, and the Issue Price is more than
the average price per share of LMP Stock as reported at the closing of the NASDAQ Composite stock market exchange for each of the five
(5) trading days prior to the six (6) month anniversary of the Closing Date (the “Release Date”), then within
thirty (30) days after the six (6) month anniversary of the Closing Date, Buyer shall pay Seller cash (or issue Seller LMP Stock valued
as provided in Section 1(c)(i) above) in an amount equal to the result of the Issue Price minus the Release Date price, times the
number of shares of LMP Stock issued on the Closing Date. Buyer’s obligation to pay cash or issue LMP Stock pursuant to this paragraph
is conditioned upon Seller’s compliance with this Section 1(c).


 






    2


     


    

 


(iii) Compliance.
Seller and its owners, as applicable, and Principal shall at all times comply with all applicable federal and state securities laws applicable
to the LMP Stock and ownership and/or control thereof, and shall comply strictly with any applicable insider trading policy or similar
rules of LMP. Upon Seller’s request, and after the six (6) month anniversary of the LMP Stock issuance date, Buyer shall provide
a customary opinion letter from Buyer’s counsel (in a form reasonably satisfactory to the LMP Stock transfer agent but substantially
similar to the form attached hereto as Schedule 1(c)) opining as to the sale of the LMP Stock in accordance with Rule 144 (“Rule
144”) under the Securities Act of 1933, as amended (the “Securities Act”), subject to any applicable
volume limitations therein, or other exemptions from registration under the Securities Act. If LMP Stock is issued pursuant to this Section
1(c), then Buyer shall take such actions as are reasonably necessary such that Seller is not restricted in any way by Rule 144 from
selling the LMP Stock after the six (6) month anniversary date of the LMP Stock issuance date; provided that Buyer is not required
to register the LMP Stock in accordance with the Securities Act. Buyer is an intended third-party beneficiary of this Section 1(c)
and has the right, power and authority to enforce the provisions hereof as though it were a party hereto.


 


(d) Earnest
Money. Within three (3) business days after the first date that Buyer has signed this Agreement, Buyer shall deliver to Escrow Agent
$1,500,000.00 as earnest money (the “Earnest Money”) to be held in trust by Escrow Agent for and on behalf of
the Parties pursuant to this Agreement. On the Closing Date, if the Closing occurs, the Earnest Money will be returned to Buyer (or applied
to the Purchase Price owed, if so directed by Buyer in writing). Upon the sooner to occur of Closing or termination of this Agreement,
the Earnest Money will be paid as provided in Section 12(a). Notwithstanding anything to the contrary contained in this Agreement
or the Real Estate Contract, the Earnest Money shall be deemed “hard” and non-refundable in all instances except for: (i)
Seller’s breach of this Agreement as provided in Section 12(a)(iii) and (ii) in the case that the conditions set forth in
Sections 8 (b), (g), (h), (i) and (j) are not satisfied.


 


(e) Hart-Scott-Rodino
Act. Filing under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the “HSR Act”) may be required.
If filing or notice or other action is required under the HSR Act with respect to the transactions outlined herein, then Buyer shall effect
such filing or notice and Buyer and Seller shall share equally the filing fees required by the HSR Act; provided, that Buyer will pay
Seller’s share of the filing fee and Seller shall reimburse Buyer upon the sooner of termination or expiration of this Agreement
for any reason other than Buyer’s uncured breach or the Closing Date. Seller shall cooperate fully with Buyer in said action and
promptly provide all requisite information.


 






    3


     


    

 


(f) Audit.
Seller shall engage with Lane Gorman Trubitt, LLC to provide Buyer with two (2) years (2019 and 2020) of audited financial statements
and a 2021 quarterly reviewed financial statements (the “Audit and Reviewed Statement”) during the Inspection
Period (and if not provided within the Inspection Period, the Inspection Period will be automatically extended until the tenth (10th)
day after Buyer’s receipt of the Audit and Reviewed Statement). Buyer agrees to reimburse Seller for the cost of audit with Lane
Gorman Trubitt, LLC provided that Buyer agrees in advance to the audit fees.


 


2. Dealerships’
Assets. Subject to the terms and conditions contained in this Agreement, upon the consummation of the transactions contemplated
by this Agreement (the “Closing”, and the date thereof, the “Closing Date”), Seller
shall sell to Buyer, and Buyer shall purchase from Seller, the Assets as set forth on Schedule 2 and as more generally described
below in this Section 2. A mutually agreed to form of Bill of Sale, attached as Exhibit C hereto, executed and delivered
by the Parties on the Closing Date (the “Bill of Sale”) will contain a list of all of the Assets sold to Buyer
as set forth on Schedule 2.


 


(a) Fixed
Assets: Buyer shall purchase from Seller, and Seller shall sell to Buyer, all fixed assets owned by Seller on the Closing Date and
used in connection with the Dealerships (collectively, the “Fixed Assets”). Fixed Assets exclude Seller-owned
vehicles (i.e., “company vehicles”) and assets that would be properly characterized as leasehold improvements, fixtures (e.g.,
signs) or real property. The Fixed Asset purchase price will be an amount equal to the net book value of such Fixed Assets as of the Closing
Date (less all discounts, incentives and refunds) after being entered on the original in service date (i.e., the date purchased by Seller
or, if purchased used, the date purchased by the original owner) for an amount equal to the actual, out-of-pocket initial purchase price
for such Fixed Assets on such original in service date and depreciated through the Closing Date in accordance with Seller’s Manufacturer
statements and industry standard depreciation provisions consistently applied.


 


(b) New
Vehicles. Buyer shall purchase from Seller and Seller shall sell to Buyer Seller’s new, unregistered and unused 2021 and subsequent
model year Manufacturer vehicles in Seller’s inventory in the ordinary course of business and identified by Seller on the Closing
Date (including up to fifteen (15) untitled demonstrators with less than 7,500 miles for each Dealership) but excluding service loaners,
rental vehicles, company-owned vehicles, conversion vans, vehicles for commercial and/or municipal use or sale, or similar-type vehicles)
(collectively, “New Vehicles”). The New Vehicle purchase price will be an amount equal to the actual
net cost to Seller of each New Vehicle, as reflected on Manufacturer’s original invoice without interest or finance cost; plus
Seller’s direct out-of-pocket cost of dealer-installed optional parts and accessories theretofore installed upon New Vehicles (excluding
labor, rust-proofing, undercoating, nitrogen, scotch guarding, and non-Manufacturer alarm systems, theft protection devices and GPS devices);
less the cost of any accessories, equipment or parts missing from any New Vehicle; less all applicable dealer hold-backs,
incentives (in any form, including wholesale programs), assistance in any form, and rebates (including all floor plan credits, advertising
consideration, SFE and EBE, and other inventory-based rebates or incentives paid or payable to Seller); less “prep”
expenses for New Vehicles which have not yet been prepared for sale; and less the cost to repair any damage and any related diminution
in value. The purchase price of New Vehicles with more than 500 miles but less than 7,500 miles will be reduced by $0.25 per mile. New
Vehicles with 7,500 or more miles will be valued as a Used Vehicle (defined below). If Buyer and Seller cannot agree on the cost of repairs
or the corresponding price reduction for such repairs, then such New Vehicle will be retained by Seller. Notwithstanding any provision
herein to the contrary, (i) New Vehicles reported to the Manufacturer as sold (or “retail delivered”) or damaged and/or repaired
such that Buyer would be required under applicable law or commercially reasonable standards and practices to disclose the repairs to a
customer will be valued as Used Vehicles; and (ii) “dealer traded” New Vehicles will be valued as if such New Vehicle had
been invoiced to Seller by Manufacturer and will not exceed the actual net cost thereof to Seller.


 






    4


     


    

 


(c) Used
Vehicles. Buyer may purchase all vehicles other than the New Vehicles in Seller’s vehicle inventory as of the Closing
Date selected by Seller at a mutually agreed upon price (collectively, “Used Vehicles”). If the Parties are
unable to agree on the price of any Used Vehicle, then each such Used Vehicle will be excluded from the sale and removed from the Real
Property within ten (10) days after the Closing.


 


(d) Service
and Rental Vehicles. Buyer shall purchase all titled demonstrators, rental vehicles, and service loaners (collectively, the “Service
Vehicles”) for the reasonably depreciated net book value, less all applicable rebates, incentives, holdbacks, and credits
that Seller received as of the Closing Date.


 


(e) Parts;
Accessories & Other Inventories.


 


(i) Inventory
& Returnable. A physical inventory of Seller’s parts and accessories will be taken in the presence of a representative of
Buyer and Seller by an inventory service mutually acceptable to Buyer and Seller, the cost of which will be equally divided between Buyer
and Seller (the “Inventory”). The Inventory will classify parts and accessories as “returnable”
or “non-returnable”. The terms “returnable parts” and “returnable accessories”
means only those new undamaged replacement parts and new undamaged accessories for Manufacturer vehicles which are listed (coded) in the
latest current Master Parts Price List Suggested List Prices and Dealer Prices (or other applicable similar Manufacturer price lists,
with supplements or the equivalent in effect as of the Inventory date, the “Master Price List”), as returnable
to the Manufacturer at not less than the purchase price reflected in the Master Price List and are within the limits of returnable parts
established by the Manufacturer from time to time. Buyer shall purchase from Seller, and Seller shall sell to Buyer, all of Seller’s
returnable parts and returnable accessories for an amount equal to the price listed in the latest Master Price List (less all applicable
rebates and discounts).


 


(ii) Nonreturnable.
All parts and accessories not coded as returnable in the Master Price List are “nonreturnable”. The purchase
price for the nonreturnable parts and accessories, non-Manufacturer, “jobber” or “NPN” parts and accessories and
nuts and bolts will be as mutually agreed by the Parties.


 






    5


     


    

 


(iii) Return
Rights, etc. Upon Closing, Seller will be deemed to have automatically assigned, and Seller shall assign, to Buyer Seller’s
parts return rights without any further action (but Seller shall take any further action reasonably requested by Buyer or required by
the Manufacturer to implement such assignment of rights). At the request of Buyer, Seller shall use its best efforts to assist Buyer in
effecting any parts return offered by the Manufacturer (including, if necessary, applying for parts return in Seller’s name), and
Seller shall promptly pay over to Buyer any monies received from the Manufacturer related thereto. Buyer is not obligated to purchase
old, opened, obsolete, superseded, incomplete, or damaged parts or accessories or any parts, accessories or sheet metal with no sales
in the eighteen (18) months prior to Closing. Buyer will not be obligated to purchase more than one year’s supply of any part or
accessory (based on trailing one year historical sales). Buyer shall also purchase Seller’s useable gas, oil, grease and other useable
inventories for a purchase price equal to the actual dealer replacement cost (less all rebates and discounts) as mutually agreed between
Buyer and Seller. The purchase price for all other parts not addressed in this Section will equal the value thereof as mutually agreed
between Buyer and Seller. If any parts and accessories or other inventories or goods that Buyer is not obligated to purchase hereunder
are not removed from the Real Property within thirty (30) days after the Closing Date, such property will automatically become Assets
transferred to Buyer pursuant to the Bill of Sale without additional consideration.


 


(f) Miscellaneous
Assets & Goodwill. Buyer shall purchase from Seller, and Seller shall sell to Buyer, Seller’s telephone and data numbers,
website addresses and domain names (owned or registered by or on behalf of the Dealerships, including but not limited to ____.com), e-mail
addresses, classified telephone and internet advertising, prospect data, customer sales, lease, finance and service records (both hard
copy and electronic format (including deal jackets), for no additional cost to Buyer), Seller’s workman’s compensation and
unemployment rating in the State of Texas, all lawfully transferable licenses and permits of the Dealerships or Seller, Dealerships’
Intellectual Property (defined below), leasehold improvements and fixtures, unused internal and customer repair order forms, customer
lists and marketing materials and catalogues, retail buyer’s order forms, office and shop supplies, shop reference manuals, parts
reference catalogs, all books and records necessary for the continued operation of the Dealerships (including training and promotional
materials, employee records of employees hired by Buyer, P.O. boxes, third party warranties in Seller’s favor and all licenses and
rights to use all software including the DMS systems assumed by Buyer on or used in connection with any personal computer or other computing
device used in connection with the Dealerships, etc.), parts sales tickets, unused purchase order forms and all other forms and Seller’s
goodwill and going concern value relating to the Dealerships. “Dealership Intellectual Property” means any rights
or ownership of the Dealerships or Seller to all (i) patents, patent applications, patent disclosures and improvements, (ii) trademarks,
trade, service marks, trade dress, and logos (excluding trade names, service marks, trade dress and logos incorporating the name “McGavock”
but see Section 2(f) below), (iii) copyrights and registrations and applications for registration thereof, (iv) computer software,
data and documentation, (v) trade secrets; and (vi) social media, directory assistance, reputation management and e-commerce sites and
accounts (including E-Bay, Facebook, Instagram, Twitter, yelp!, Dealer Rater, Edmunds and Google programs).


 






    6


     


    

 


(g) Excluded
Assets & Name License. Notwithstanding anything in this Agreement to the contrary, the following assets are not being sold pursuant
to this Agreement: (i) all cash and cash equivalents, wherever located and in whatever form (unless “petty cash” is noted
on the Closing Memorandum); (ii) promissory notes and other evidences of indebtedness; (iii) all insurance policies; (iv) accounts receivable;
(v) any claims or causes of action of Seller against third parties; (vi) tax credits and claims for tax refunds; (vii) securities, voting
or otherwise in any entity; (viii) any rights in connection with and any assets of any employee benefit plan of Seller; (ix) the minute
books and capital stock records of Seller, (x) all employment contracts, union contracts or collective bargaining agreements relating
to any employees of Seller or Seller's operations, (xi) any contract to which Seller is a party that is not an Assigned Contract, (xii)
any vehicle that is not included in the purchased Assets; (xiii) trade names, service marks, trade dress and logos incorporating the name
“McGavock”; provided, however, that Seller hereby grants to Buyer the irrevocable and approval-free right and license
to continue to use the “McGavock” name in trade names for the Dealerships as Seller has in the past for two (2) years, with
an option to extend for an additional two (2) years after the Closing Date; and (xiv) all personal property owned by Principal and his
family members located in or at the Dealerships, including, but not limited to, art and sports memorabilia (collectively, the “Excluded
Assets”).


 


(h) Excluded
Liabilities. Notwithstanding anything contained herein to the contrary, Buyer shall not assume, or cause to be assumed, or be deemed
to have assumed or caused to have assumed or be liable or responsible for any liabilities or obligations (whether known or unknown, fixed,
absolute, matured, unmatured, accrued or contingent, now existing or arising after the date hereof) of Seller or any of its affiliates
(other than the liabilities expressly assumed in this Agreement) including, but not limited to, the following obligations and liabilities
of Seller and its affiliates (such obligations and liabilities not assumed hereunder, the “Excluded Liabilities”):


 


(i) any
liabilities or obligations relating to any current or former employee or independent contractor of Seller or any of its affiliates (whether
or not such employee is hired by Buyer following the Closing) and labor matters relating to any such current or former employee or independent
contractor including any liabilities or obligations arising out of or relating to any employee-related matter, employee-related payment
obligation, collective bargaining contract, labor negotiation, severance cost, pension plan, profit sharing plan, deferred compensation
plan, accrued holiday benefit, accrued bonus, salary, bonus plan, phantom stock award, stock option or purchase plan, employment contract,
consulting contract, any Employee Benefit Plan or any entitlements arising as a result of or in connection with the consummation of the
Purchase;


 






    7


     


    

 


(ii) any
taxes (1) attributable to the purchased Assets or the Business with respect to any pre-Closing period or (2) imposed on Seller or
any of its affiliates;


 


(iii) any
liabilities or obligations related to the Excluded Assets;


 


(iv) any
liabilities or obligations arising out of or relating to indebtedness of Seller or any of its affiliates;


 


(v) any
liabilities or obligations arising out of or relating to any contract which is not an Assigned Contract;


 


(vi) other
than in connection with the operation of the Business after the Closing Date, any liabilities or obligations arising out of or relating
to any real property owned, leased, occupied or controlled by Seller;


 


(vii) any
liabilities or obligations related to the Business not expressly assumed hereunder or any other litigation, arbitration, investigation,
proceeding or claim pertaining to or affecting the Business or the purchased Assets, to the extent based on a cause of action arising
prior to the Closing Date, whether the commencement of such litigation, arbitration, investigation, proceeding or claim is before or after
the Closing Date;


 


(viii) any
Seller transaction expenses; and


 


(ix) any
liabilities or obligations arising from product liability claims for which the injury or loss giving rise thereto (not just the delivery
of the notice of such claims) occurs prior to the Closing Date, including specifically all losses caused by or arising out of any alleged
design, manufacture, assembly, installation, use or sale of any products manufactured by the Factory or the Business prior to the Closing
Date, whether the commencement of any related litigation, arbitration, investigation, proceeding or claim occurs before or after the Closing
Date


 


3. Pro-rations,
Assigned Contracts, and Right of First Refusal.


 


(a) Prepaid
Expenses & Pro-rations. Buyer shall purchase from Seller, and Seller shall sell to Buyer, the Dealerships’ prepaid expense
items incurred in the ordinary course of business at the direct out-of-pocket cost to Seller for such items. All deposits and prorations
which are normal and reasonable will be made as of Closing, including but not limited to the pro-ration of personal property taxes and
utilities. Seller shall pay all vehicle inventory ad valorem taxes (“VIT”) owed for vehicles sold through
the end of the year of Closing (the “Closing Year”). Unless prohibited by law, on and after Closing, Buyer shall
collect VIT on Dealership vehicle sales for the balance of the Closing Year and remit such VIT to the appropriate taxing authority (or,
if it rejects such payment, to Seller so that Seller may remit such VIT) so that such Closing Year VIT may be applied to Seller’s
account. To the extent there is VIT shortfall for the Closing Year, Seller shall be solely responsible for such shortfall attributable
to pre-Closing period (based on a comparison of the VIT collected for the same period in the prior year), and Buyer shall reimburse Seller
for any VIT shortfall for the Closing Year attributable to the post-Closing period (based on a comparison of the VIT collected for the
same period in the prior year).


 






    8


     


    

 


(b) Customer
Deposits & Work in Process. Upon Closing, Seller shall transfer to Buyer all customer deposits for incomplete orders taken by
Seller in the ordinary course of business. Seller shall retain all escheatable deposits. At the Closing, Seller shall furnish Buyer with
a list of such deposits (including “we owes”, due bills, etc.), setting forth, as to each, the name and address of the customer,
any goods or services owed to the customer and the amount of the deposit, and Seller shall deliver to Buyer all documents in Seller’s
possession reflecting such deposits, we owes, due bills, etc. Seller shall credit to Buyer for all we owes/due bills on the Closing Date.
The Bill of Sale will contain a list and description of such customer transactions (and Work in Process, as detailed below). Seller shall
credit Buyer the actual cost to complete all due bills. Buyer shall purchase from Seller, and Seller shall sell to Buyer, Seller’s
pending service orders written by Seller in the ordinary course of business for an amount equal to Seller’s actual cost for parts
and labor for any such orders which are in process at the opening of business on the Closing Date (“Work in Process”).
Except as otherwise provided in the preceding sentence, Seller shall not receive the revenue from such Work in Process. Buyer may reject
(and Seller shall retain) all Work in Process where (i) the Work in Process was not placed in the normal course of business; (ii) Seller
does not possess an order signed by the customer authorizing such service, the vehicle isn’t at the Real Property on the Closing
Date or such order has been open for longer than thirty (30) days prior to the Closing Date; or (iii) the Work in Process does not provide
for cash or commercially reasonable credit terms on delivery of the vehicle.


 


(c) Assigned
Contracts. As of the Closing Date, Seller shall assign and Buyer shall assume Seller’s contractual obligations listed on Schedule
3(c) hereto on the Closing Date (collectively, “Assigned Contracts”). The term “Assigned Contracts”
excludes obligations and liabilities arising by the Closing Date or by reason of any breach or alleged breach by Seller, regardless of
when such obligation or liability is asserted. During the Inspection Period, Seller shall provide Buyer with complete copies of all contracts
Seller proposes to assign and for Buyer to assume along with a written summary. Seller and Buyer shall use commercially reasonable efforts
to agree in writing to a final Schedule 3(c) at least ten (10) days prior to expiration of the Inspection Period. Seller shall
arrange for assignment of the Assigned Contracts at Seller’s cost. Buyer is not assuming any liabilities or obligations of Seller
other than the Assigned Contracts or agree to pay, discharge or perform any liabilities or obligations arising out of any breach by Seller
(other than with respect to a breach by Buyer) of any Assigned Contract.


 


(d) Right
of First Refusal. Buyer shall be granted the exclusive right of first refusal under that certain Right of First Refusal Agreement
of even date hereof, by Rockwall Dealer, to purchase substantially all of the assets associated with that certain Nissan dealership located
at 1700 I-30, Rockwall, TX 75087 for a purchase price equal to and on identical terms and provisions as Rockwall Dealer may in the future
receive as written offer to purchase such assets from any third party.


 






    9


     


    

 


4. Real
Property. For purposes hereunder the real property shall consist of all real property underlying the Dealerships to include the
real estate being purchased by Buyer pursuant to the Real Estate Contract and the Assigned Lease as set forth herein (the “Real
Property”).


 


(a)
Real Estate. Buyer will purchase the real properties underlying the Dealerships, except for the Leasehold Parcel (as hereafter
defined), from Seller’s or Principal’s affiliates, pursuant to that certain Master Purchase and Sale and Lease Assumption
Agreement of even date hereof (as it may be amended and assigned, the “Real Estate Contract”). Attached as Schedule
4(a) are a list of all real properties to be purchased pursuant to the Real Estate Contract. Seller shall take all reasonably necessary
or advisable acts (i.e., repairs and replacements) in order to remedy any “deferred maintenance” or outstanding “short-term
capital expenditures/repairs” (as those terms are defined by the American Society of Testing Materials) identified in the property
condition report obtained by Buyer.


 


(b) Lease.
Seller shall cause that certain Sublease Agreement dated effective as of August 5, 2019, by and between VBM San Marcos Acquisitions, LLC
and McGavock Nissan of San Marcos, L.P. (the “Lease”), covering the leasehold parcel therein described (the
“Leasehold Parcel”), to be assigned to Buyer at no additional cost or expense and on the same terms and conditions
as the existing Lease (also referred to as, the “Assigned Lease”). Attached as Schedule 4(b) is a list
of the Assigned Lease.


 


(c) Environmental
Audit. Seller shall allow an environmental consulting firm selected by Buyer to have prompt access to the Real Property in order to
conduct environmental investigations, and to prepare a report (which will include a Phase I report and may include a Phase II report)
with respect to, the Real Property. Buyer shall pay the cost of the Phase I, but if a Phase I environmental report recommends a Phase
II environmental report, then Buyer shall pay for such Phase II environmental report. Seller shall provide the environmental auditors
reasonable access to all of its existing records. If environmental remediation or maintenance is recommended by such reports or required
by law, then, Seller and Buyer will agree on the amount to be withheld from Seller’s Purchase Price proceeds in a third-party escrow
account as an additional indemnity in favor of Buyer to support any remediation or maintenance work that is recommended by such reports.


 


5. Inspections.
Beginning on the Effective Date, Buyer may conduct due diligence regarding the Dealerships and Real Property, including obtaining such
reports and studies as Buyer deems appropriate. Any entry upon the Real Property shall be coordinated in advance with Steve McGavock and
be subject to his approval of the date and time of entry. If the Phase I environmental report recommends a Phase II environmental report,
then the Inspection Period will be automatically extended if necessary until the fifth (5th) business day after Buyer receives
the written Phase II environmental report. During the Inspection Period, Seller shall provide to Buyer and Buyer’s representatives
reasonable access to the books, records (including extraction of three (3) years of the DMS data that supports Seller’s Manufacturer
financial statements), reports, employees (which access to employees will be permitted following Buyer’s approval from each Manufacturer
to acquire the Assets of the Dealerships), information and facilities of the Dealerships and the Real Property, and shall make Seller’s
officers, employees, accountants and attorneys available at reasonable times (subject to the prior approval of Steve McGavock) to discuss
with Buyer and Buyer’s representatives such aspects of the business of the Dealerships and the Real Property as Buyer may wish.
Within fifteen (15) days after the Effective Date, Seller shall obtain from a nationally recognized provider and provide to Buyer, at
Seller’s expense, a Uniform Commercial Code (“UCC”) search report, judgment lien reports and federal,
state and local tax lien reports, with respect to Seller from all jurisdictions in which Seller and/or its assets are located. Seller
shall obtain and provide to Buyer separate UCC reports with respect to Seller’s legal name(s) used in the last five (5) years. If
Seller does not timely provide such reports to Buyer, Buyer may obtain such reports, and Seller shall reimburse Buyer for all expenses
incurred by Buyer in connection therewith.


 






    10


     


    

 


6. Seller’s
Representations & Warranties. Seller represents and warrants to Buyer on the Effective Date and the Closing Date as follows:


 


(a) Formation.
Seller is duly formed, validly existing, and in good standing under the laws of the State of Texas and is duly qualified to transact business
in the city and county in which the Real Property is located. Principal is Seller’s only equity owner.


 


(b) Authority.
Seller has the requisite legal power and authority to execute and deliver this Agreement, to perform its obligations hereunder, and to
consummate the transactions contemplated hereby, all of which have been duly authorized and approved by all necessary action and for which
no consent of any person or Governmental Authority is required. This Agreement constitutes Seller’s valid and legally binding obligation,
enforceable in accordance with its terms, subject only to the application of the Bankruptcy Code of the United States and any other applicable
liquidation, conservatorship, bankruptcy or similar state or federal law from time to time in effect affecting the rights of creditors
generally.


 


(c) Conflicts.
The execution and delivery of this Agreement by Seller and the performance by Seller of its obligations hereunder and the consummation
by it of the transactions contemplated by this Agreement will not (i) contravene any provision of its organizational or governing documents,
(ii) violate or conflict with any law, statute, ordinance, rule, regulation, decree, writ, injunction, judgment or order of any nation
or government, or any state, regional, local or other political subdivision thereof (“Governmental Authority”)
or of any arbitration award which is either applicable to, binding upon or enforceable against it, (iii) conflict with, result in any
breach of, or constitute a default (or an event which would, with the passage of time or the giving of notice or both, constitute a default)
under, or give rise to a right of payment under or the right to terminate, amend, modify, abandon or accelerate, any material agreement,
indenture, deed of trust, mortgage, loan agreement or any material instrument, by Seller, to which Seller is a party or by which Seller
or the Assets is bound or affected, (iv) result in or require the creation or imposition of any lien or other encumbrance upon or with
respect to any of its properties or assets, (v) give to any individual or entity a right or claim against it, or (vi) require the consent,
approval, authorization or permit of, or filing with or notification to, any Governmental Authority, any court or tribunal or any other
Person, except (a) any right of first refusal or other approval rights the Manufacturer may have with respect to the purchase of the assets
of the Dealerships under their respective Franchise Agreements, (b) filings or consents required to be made or obtained by Seller, (c)
any governmental permits or licenses required to operate the Dealerships and other businesses of Seller or other filings or consents required
to be made or obtained by Buyer, and (d) any violations, conflicts, liens, rights or claims, or consents in the case of clauses (ii),
(iii), (iv), (v) and (vi) above that would not have a material adverse effect on Buyer following the Closing or Seller’s ability
to consummate the transactions provided herein.


 






    11


     


    

 


(d) Financials.
True, correct and complete copies of the Financial Statements have been delivered by Seller to Buyer. The Financial Statements have been
based upon and are consistent with the information contained in Seller’s books and records and are complete and correct. The Financial
Statements accurately and completely present in all material respects the financial condition of Seller, as of the dates thereof, and
the cash flows and results of operations of Seller, for the periods related thereto, and have been prepared in all material respects in
accordance with Manufacturer’s requirements and made within the ordinary course of Seller’s Business. “Financial
Statements” means Seller’s internally prepared, un-audited financial statements in the form required by Manufacturer,
for the fiscal years ended on December 31, 2019 and December 31, 2020, and each of the completed months thereafter through the Closing
Date, including statements of income, Balance Sheet and Cash Flow. Seller maintains systems of internal accounting controls sufficient
to provide reasonable assurances that: (i) transactions are executed in accordance with management’s general or specific authorization,
(ii) transactions are recorded as necessary to permit the preparation of financial statements in conformity with the Manufacturer’s
requirements and to maintain accountability for assets, (iii) access to its assets and properties is permitted only in accordance with
management’s general or specific authorization, and (iv) the recorded accountability for assets is compared with the actual levels
at reasonable intervals and appropriate action is taken with respect to any differences. The financial books and records, and the accounts,
of Seller used to prepare the Financial Statements: (A) have been maintained in accordance with the Manufacturer’s requirements
and good business practices, on a basis consistent with prior years, (B) are stated in reasonable detail and reflect actual bona
fide transactions of Seller, and (C) constitute the basis for the Financial Statements.


 


(e) Compliance.
To the current, actual knowledge of Seller, the Dealerships comply in all respects with, and the Dealerships have been conducted in all
material respects in compliance with, all laws, rules and regulations (collectively, the “Laws”), and neither Seller
nor Principal has received any notice of any violation thereof which has not been cured. To Seller’s current, actual knowledge,
Seller is not under investigation with respect to violations of any such Laws.


 


(f) Litigation.
As of the date hereof (i) there are no actions, suits or other legal or administrative proceedings or governmental investigations pending,
or to the Knowledge of Seller (as hereinafter defined), threatened against Seller, the purchased Assets, the Dealerships before any Governmental
Authority, and to the Knowledge of Seller, there is no valid basis for any such action, proceeding or investigation (including, without
limitation, any dispute which materially adversely affects, or may materially adversely affect, Seller, the purchased Assets or the Dealerships)
and (ii) there are no outstanding orders, decrees or stipulations issued by any Governmental Authority in any proceeding to which Seller
is or was a party. Seller is not subject to any judgment, order, writ, injunction or decree that has not been satisfied or complied with.
To the Knowledge of Seller, Seller has not violated any federal, state or local law or ordinance or any rule, regulation order or decree
of any governmental agency, court or authority having jurisdiction over it or over any part of its operations or assets which would have
an adverse impact on Buyer.


 






    12


     


    

 


(g) Good
Title. Seller is the owner of, and has, good and marketable title to all of the Assets (including intangible assets such as websites
and domain names); all of the Assets will be transferred to Buyer free and clear of all liens and encumbrances; and all of the Assets
to be sold under the terms of this Agreement are, or on the Closing Date will be, in good operating condition and repair, subject to normal
wear and tear. Seller does not utilize any tangible or intangible personal property (e.g., websites, delivery vehicles, trade names, off-site
storage facilities, no equipment leases, etc.) or real estate in its operation of the Dealerships that is not either being sold to Buyer
as an Asset or subject of the Real Estate Contract.


 


(h) Manufacturer.
Except as disclosed on Schedule 6(h) hereto, Manufacturer has not notified Seller or Principal of (i) any deficiency in any Dealership
operations (including, but not limited to, brand imaging, facility conditions, sales efficiency, customer satisfaction, warranty work
and reimbursement, or sales incentives); (ii) a present or future need for facility improvements or upgrades in connection with the Dealerships
or the Real Property; or (iii) the awarding or possible awarding of a Manufacturer dealership to any person or entity in the Metropolitan
Statistical Areas in which the Dealerships operate. The Dealerships do not sell vehicles for export. Except in the ordinary course of
Manufacturer’s business, Manufacturer has not audited Seller’s sales, service or warranty practices or documentation, or refused
or charged back vehicle sales or warranty claims. The Real Property and the improvements thereon are compliant with all Manufacturer requirements,
guidelines and programs, including the “Essential Brand Elements” or “EBE” program, and Seller is eligible for
all facility/sales-related incentives offered by the Manufacturer or its distributor.


 


(i) Licenses.
To the current, actual knowledge of Seller, (i) none of the permits or licenses used by Seller in the operation of the Dealerships have
been terminated or revoked; (ii) no material violations have been recorded regarding such licenses or permits; (iii) no proceeding is
pending or threatened seeking the revocation or limitation of any such licenses or permits; and (iv) there is not, and has not been, any
violation in any respect of federal, state and/or local laws, rules, regulations and orders applicable to the Dealerships.


 


(j) Warranties.
Seller currently offers its customers a pre-paid maintenance agreement at no cost. Seller shall provide Buyer a list of such customers,
and credit Buyer the amount necessary for Buyer’s assumption of this contingent liability relating the pre-paid maintenance program.
Except as set forth above, Seller does not have, or agreed to accept for others, any warranty or service obligations to any third party
and Seller has not offered its customers any marketing or added-value programs or plans for which Seller is responsible for administration
or the liability thereof, including, but not limited to programs commonly called “tires for life”, “oil changes for
life”, “car wash/detailing service plans”, “rewards programs” or any similar offers.


 






    13


     


    

 


(k) Assigned
Contracts. The summaries of the Assigned Contracts on Schedule 3(c) accurately describe such Assigned Contracts, neither party
to any Assumed Contract is in breach, in any material respect, of such Assumed Contract, and all payments or obligations on the Assigned
Contracts are, or as of the Closing Date will be current. Each of the Assigned Contracts is valid, legal and binding and is in full force
and effect. Seller has made all payments due under each of the Assigned Contracts through the date hereof. No event or condition has occurred
and is continuing which, with or without the lapse of time or giving of notice, constitutes, or would ripen into or become, a breach of
or default under an Assigned Contract by Seller, or, to Seller’s Knowledge, by any other party thereto, in any term, covenant or
condition of each Assigned Contract.


 


(l) Assigned
Lease. The summary of the Assigned Lease on Schedule 4(b) accurately describes the Assigned Lease, and neither party to the
Assigned Lease is in breach, in any material respect, of the Assigned Lease, and all payments or obligations on the Assigned Lease are,
or as of the Closing Date will be current. The Assigned Lease is valid, legal and binding and is in full force and effect. All payments
due under the Assigned Lease through the date hereof have been paid. No event or condition has occurred and is continuing which, with
or without the lapse of time or giving of notice, constitutes, or would ripen into or become, a breach of or default under the Assigned
Lease by Seller’s affiliate, or, to Seller’s Knowledge, by any other party thereto, in any term, covenant or condition of
the Assigned Lease.


 


(m) Inventory.
All Inventory of Seller, whether or not reflected on the Financial Statements, consists of items of a quality usable and, with respect
to finished goods, saleable in the ordinary course of business, except for slow-moving or obsolete inventory and items of below-standard
quality, all of which have been written off or written down to net realizable value in the Financial Statements. The quantities of each
item of Inventory (whether raw materials, intermediaries, work-in-process or finished goods) are not excessive and are sufficient for
the operations of the Business in the ordinary course of business. The supply of spare parts in the Inventory, the product mix of the
Inventory and the raw materials and work in process necessary to convert to finished goods is not materially out of balance in relation
to Seller’s expectations of the demand of its customers. All raw materials, intermediaries, work-in-process and finished goods are
free of any material defect or other deficiency. Seller is not in possession of any Inventory not owned by Seller, including goods already
sold. The historical values at which the Inventory of Seller has been presented to Buyer have been determined in accordance with customary
valuation policies of Seller (which is the lower of cost or fair market value, as consistently applied by Seller). Since the date of the
latest Balance Sheet, Seller has continued to replenish its Inventory and to dispose of slow-moving and obsolete inventory in the ordinary
course of business, consistent with the prevailing practice of the Business’ industry as a whole. All Inventory is located at the
Real Property.


 






    14


     


    

 


(n) Options,
Rights of First Refusal. Except Manufacturer’s right of first refusal, for the right of Buyer to acquire the Assets pursuant
to this Agreement and Buyer’s rights pursuant to the Real Estate Contract, no other person or entity has any right to acquire all
or any portion of the Assets, the Real Property or any interest therein, or Seller’s Manufacturer contract rights or privileges.


 


(o) Intellectual
Property Rights. Seller either owns or is otherwise entitled to use (under a license or otherwise) all Proprietary Rights necessary
to conduct the business of the Business as presently conducted. For purposes of this Agreement, “Proprietary Rights”
means all (i) trademarks, service marks, trade dress, logos, trade names and corporate names and registrations and applications for registration
thereof, (ii) copyrights and registrations and applications for registration thereof, (iii) mask works and registrations and applications
for registration thereof, (iv) computer software data and documentation, (v) trade secrets and confidential business information (including
ideas, formulas, compositions, inventions (whether patentable or unpatentable and whether or not reduced to practice), copyrightable works,
financial, marketing and business data, pricing and cost information, business and marketing plans and customer and supplier lists and
information), (vi) other proprietary rights or any intellectual property, and (vii) copies and tangible embodiments thereof (in whatever
form or medium).


 


(p) 
Taxes. To the current, actual knowledge of Seller, Seller has duly filed all foreign, federal, state, county and local income,
excise, sales, property, withholding, unemployment, social security, franchise, license, information returns and other tax returns and
reports, or appropriate and permitted extensions thereto, required to be filed by it with respect to the Dealerships or the Real Property.
Each such return is true, correct, and complete in all material respects, and to Seller’s current, actual knowledge, Seller has
paid all taxes, assessments, amounts, interest and penalties due to applicable Governmental Authority. To Seller’s current, actual
knowledge, Seller has no liability for any taxes, assessments, amounts, interest or penalties of any nature whatsoever other than those
for which Seller has created sufficient reserves or made other adequate provision. No Governmental Authority is now asserting or threatening
to assert any deficiency or assessment for additional taxes, interest, penalties or fines with respect to Seller, the Dealerships or the
Real Property.


 


(q) Employment
Matters. Seller has no oral or written collective bargaining or organized labor contracts, employment agreements, bonus, deferred
compensation, profit sharing, welfare or health benefit, or retirement plan or arrangement, whether or not legally binding, nor is Seller
currently paying any pension, deferred compensation or retirement allowance to anyone. Seller has no contract for the future employment
of any person. Seller is not delinquent in payments to any of its employees for any wages, salaries, commissions, bonuses or other direct
compensation for any services performed by them or amounts required to be reimbursed to such employees. Seller has no knowledge that any
Seller employee intends to terminate his or her employment. To the current, actual knowledge of Seller, Seller has complied in all material
respects with the applicable requirements for its employee medical and benefit plans, if any, as set forth in the Internal Revenue Code
of 1986, as amended (the “Code”), and the Employee Retirement Income Security Act of 1974, as amended, and the
regulations promulgated thereunder (“ERISA”), including Section 4980B of the Code (as well as its predecessor
provision, Section 162(k) of the Code) and Sections 601 through 608, inclusive, of ERISA, which provisions are hereinafter referred to
collectively as “COBRA”. There have not been any unfair labor practice complaints or work stoppages (within the past thirty-six
(36) months) and there are no present or, to Seller’s Knowledge, threatened walkout, strike or labor disturbance involving any of
Seller’s employees working primarily at the Dealerships. To Seller’s current, actual knowledge, Seller has taken the required
actions under Applicable Law to confirm the identity and work status eligibility of its employees. Seller has not received any written
notice of any inspection or investigation relating to their alleged noncompliance with or violation of the Immigration Reform and Control
Act (“IRCA”), nor has Seller been notified or otherwise penalized for any failure to comply with the IRCA or
for any willful violation of any other immigration law, rule or regulation.


 






    15


     


    

 


(r) Insurance.
Seller has all insurance (including policies providing property, casualty, general liability, and workers’ compensation coverage
and bond and surety arrangements) ) in amounts and with coverage that are standard in the auto dealership industry and shall maintain
such insurance at all times between the date hereof and Closing. All such insurance policies and all such bonds (including surety bonds)
are legal, valid, binding, enforceable, and in full force and effect. All premiums and other payments due prior to the date hereof under
each such insurance policies and bond have been timely and fully paid. Seller has not received any notice of any default and is not in
default with respect to its obligations under any insurance policy maintained by it.


 


(s) Brokers.
Except for Broker, no broker, investment banker, financial advisor, consultant or other Person is entitled to any broker’s, finder’s,
financial advisor’s or other similar fee or commission in connection with this Agreement based upon arrangements made by or on behalf
of Seller.


 


(t) Prohibited
Persons. Neither Seller nor any members of Seller: (i) appears on the Specially Designated Nationals and Blocked Persons List of the
Office of Foreign Assets Control in the United States Department of the Treasury or the Annex to United States Executive Order 132224-Blocking
Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism, or (ii) is a prohibited party
under the laws of the United States.


 


(u) Full
Disclosure. The representations and warranties contained in this Section are true and correct as of the date hereof, and will be true
and correct as of the Closing Date. This Agreement and the other Agreements, and their respective Schedules and Exhibits delivered by
or on behalf of Seller hereunder and thereunder are complete and correct in all material respects. No representation or warranty made
by Seller in this Agreement contains (or will contain, when furnished) any untrue statement of a material fact or omits (or will omit,
when furnished) a material fact necessary to make the statements herein or therein not misleading.


 



    16


     


    




 


(v) Absence
of Undisclosed Liabilities. To the current, actual knowledge of Seller, the Financial Statements reflect all liabilities of Seller
as of the dates thereof. To the current, actual knowledge of Seller, Seller does not have any liability (and there is no basis for any
present or future legal proceeding against Seller giving rise to any liability) except the liabilities (a) that are accrued for or reserved
against in the latest Balance Sheet, (b) that have arisen since the date of the latest Balance Sheet in the ordinary course of business,
(c) that are otherwise disclosed herein, in each case, (i) none of which results from, arises out of, relates to, is in the nature of,
or was caused by any breach of contract, breach of warranty, tort, infringement or violation of law, and (ii) none of which, individually
or in the aggregate, is material.


 


(w) Absence
of Certain Changes. Seller has not suffered or been threatened with (and Seller has no Knowledge of any facts which may cause or result
in) any change to the business, operations (including results of operations), assets, liabilities, condition (financial or otherwise)
or prospects of Seller which would be reasonably likely to have a Material Adverse Effect, including, without limiting the generality
of the foregoing, the existence or threat of a labor dispute, or any material adverse change in, or loss of, any relationship between
Seller and any of its key employees. Since the date of the latest Balance Sheet, except for the marketing of Seller for sale, and Seller
has conducted the Business in the ordinary course of business. For purposes of this Agreement, “Material Adverse Effect”
shall mean any event, circumstance, development, state of facts, occurrence, change or effect that is materially adverse to (i) the Business,
purchased Assets, liabilities, or results of operations of the Business, taken as a whole, (ii) the ability of Seller to operate the Dealerships
in the manner in which they have been customarily operated, or (iii) the ability of Seller to perform its obligations hereunder or to
consummate the transactions contemplated hereby.


 


As used in this Agreement, the phrases “Knowledge
of Seller” or “Seller’s Knowledge” means the current, actual knowledge of Principal and Brent McGavock.


 


7. Buyer’s
Warranties & Representations. Buyer represents and warrants to Seller and Principal on the Effective Date and the Closing
Date as follows:


 


(a) Formation.
Buyer is a Delaware corporation. Buyer’s assignee will be an entity duly formed and validly existing with authority to conduct business
in Texas on the Closing Date.


 


(b) Authority.
Buyer has the requisite legal power and authority to execute and deliver this Agreement, to perform the obligations of Buyer hereunder,
and to consummate the transactions contemplated hereby, all of which have been duly authorized and approved by all necessary entity action
and for which no consent of any person or Governmental Authority is required which has not been obtained, and no filing with or other
notification to any person or Governmental Authority is required which has not been properly completed. This Agreement constitutes the
valid and legally binding obligation of Buyer, enforceable in accordance with its terms, subject only to the application of debtor relief
laws and general equitable principles.


 






    17


     


    

 


8. Conditions
to Obligations of Buyer. The obligation of Buyer to consummate the transactions contemplated by this Agreement are subject to
the fulfillment (or express written waiver by Buyer) prior to or at the Closing, of all of the following conditions:


 


(a) Manufacturer
Approval. Manufacturer issued to Buyer a new Dealership Sales and Service Agreement, or commitment therefor, on terms and conditions
acceptable to Buyer in its sole discretion, approving Buyer’s board of directors and other designees, permitting Buyer to operate
the Dealerships at the Real Property as Seller has operated it in the past.


 


(b) Seller
Performance; Accuracy of Representations. Seller and Principal performed in all material respects all of its obligations hereunder
to be performed prior to or at Closing. Seller’s representations and warranties contained in this Agreement are materially true
and correct as of the date made.


 


(c) Licenses
& Approvals. Buyer obtained all required licenses and permits from governmental and other agencies to operate a new and used vehicle
dealership and repair, body shop and service facility at the Real Property, in the same manner as currently operated by Seller. Buyer
and Seller shall have obtained all approvals required by the HSR Act, including clearances and completion of any waiting periods required
by the HSR Act.


 


(d) Seller
Authorization. Buyer received evidence reasonably acceptable to Buyer regarding Seller’s due organization and authority to enter
into the transactions described herein, including evidence of existence and good standing in the State of Texas and an officer’s
certificate in form reasonably acceptable to Buyer containing a copy of resolutions duly adopted by Seller’s appropriate governing
body and owners approving the transactions contemplated hereby.


 


(e) No
Material Adverse Change. Between the Effective Date and the Closing Date (i) there has been no material adverse change to the Dealerships
or the Real Property, (ii) there has been no federal, state or local legislative or regulatory change affecting the services, products
or business of the Dealerships, which would have a Material Adverse Effect on the Dealership or the Real Property, and (iii) none of the
Assets have been damaged by fire, flood, casualty, act of God or the public enemy or other cause, which damages would have a Material
Adverse Effect on the Dealerships or the Real Property.


 


(f) No
Litigation. No action, suit, filing requirement, waiting period or proceeding has been instituted, applied or mandated by a governmental
agency or any other third party to prohibit or restrain the transactions contemplated by this Agreement or otherwise challenge the power
and authority of the Parties to enter into this Agreement or to carry out their obligations hereunder or the legality or validity of this
Agreement.


 


(g) License
Use. Seller executed and delivered the license use agreement in the form of Exhibit A hereto.


 






    18


     


    

 


(h) Closing
Memorandum, Bill of Sale; and other Closing Documents. Seller and Principal must have executed and delivered the Closing Memorandum,
the Bill of Sale, all Manufacturer-required documents, vehicle title documents, state tax compliance certificates, additional insured
certificate and such other deeds, assignments or certificates of title, documents, Assignment of Contracts, Assignment of Lease, Indemnification
Escrow Agreement, and other instruments of transfer and conveyance as may reasonably be required by Buyer, each in form and substance
reasonably satisfactory to Buyer.


 


(i) Non-Competition
Agreement. Seller, Principal and Seller’s owner(s) executed and delivered the non-competition agreement in the form attached
hereto as Exhibit B (the “Non-Competition Agreement”).


 


(j) Simultaneous
Real Estate Closing. The Closing hereunder will occur simultaneously with the “Closing” under, and as defined in, the
Real Estate Contract.


 


(k) Financing.
Buyer shall have received loan commitments on terms and conditions satisfactory to Buyer in its sole discretion for both the floor plan
and acquisition in connection with this transaction, within the Inspection Period.


 


(l) Third
Party Consents. With respect to each Assigned Contract and Assigned Lease that requires, prior to an assignment of Seller’s
interest therein, the Consent of a third party, each such third party shall, without cost to Buyer, have granted its Consent, in form
and substance reasonably satisfactory to Buyer, authorizing the assignment of each of the Assigned Contracts and Assigned Lease from Seller,
or Seller’s affiliate, to Buyer.


 


9. Conditions
to Seller’s Obligations. Seller’s obligation to consummate the transactions contemplated by this Agreement are subject
to the fulfillment (or written waiver by Seller), prior to or at the Closing, of all of the following conditions:


 


(a) Purchase
Price Payment. Buyer paid Seller the net aggregate purchase price for the Assets.


 


(b) Buyer
Performance. Buyer performed in all material respects all of its obligations hereunder to be performed prior to or at Closing each
of Buyer’s representations and warranties contained in this Agreement are true and accurate as of the date made.


 


(c) Closing
Memorandum. Buyer executed and delivered the Closing Memorandum.


 


(d) Simultaneous
Closing. The Closing hereunder will occur simultaneously with the “Closing” under, and as defined in, the Real Estate
Contract.


 






    19


     


    

 


10. Pre-
& Post-Closing Covenants.


 


(a) Pre-Closing.
Promptly upon the execution of this Agreement, Seller shall notify the Manufacturer regarding the transactions contemplated by this Agreement,
utilizing a form of notification reasonably acceptable to Buyer. Buyer (or its affiliate) shall, within ten (10) days following the Effective
Date, apply to the Manufacturer for the issuance of a contractual right to operate the Dealerships upon the appropriate Real Property.
The Parties shall use commercially reasonable best efforts to obtain Manufacturer approval as soon as possible. Seller and Principal shall
promptly provide the requisite information, documents and access necessary to prepare for Closing and ensure a seamless operational transfer
of the Assets. Effective as of the Closing, Seller shall terminate its Dealer Sales and Service Agreements with the Manufacturer and execute
and deliver all of the Manufacturer’s customary documents. Seller shall reasonably cooperate with Buyer, and take all reasonable
steps to assist Buyer, in Buyer’s efforts to obtain its own similar Dealer Sales and Service Agreements with the Manufacturer. All
actions to be taken at the Closing pursuant to this Agreement will be deemed to have occurred simultaneously, and no action, document
or transaction will be deemed to have been taken, delivered or effected, until all such actions, documents and transactions have been
taken, delivered or effected. Promptly after the Closing, Seller shall transfer to Buyer certificates of title or origin for all vehicles
and all of its registration lists, owner follow-up lists and service files on hand as of the Closing, provided that such lists
and files relate to the Assets. If Seller presents assets for purchase post-Closing that would have otherwise been Assets, then such assets
may be purchased at a mutually agreed to price or otherwise retained by Seller.  Buyer is not required to submit an offer. 
This does not apply to in-transit vehicles from the Manufacturer. Buyer shall retain and safeguard the pre-Closing customer paper deal
jackets retained by Buyer in accordance with law, and, until Buyer destroys such records in accordance with company policy in effect from
time to time, Seller shall have reasonable access to Seller’s pre-Closing customer records (e.g., paper deal jackets) and any records
related to Assigned Contracts after the Closing for any legitimate purpose, such as (by way of example and not by limitation) for resolving
customer inquiries.


 


(b) Dealership
Operations Pending Closing. Pending Closing, Seller shall continue to operate the Dealerships in substantially the same manner as
they have been operated by Seller in the past and Seller shall: (i) use commercially reasonable efforts to maintain working relationships
with all suppliers, customers, employees and others having contact with the Dealerships and bring all payables current as of the Closing
Date; (ii) maintain current insurance policies in full force and effect; (iii) exercise reasonable diligence in safeguarding and maintaining
the confidentiality of all books, reports and data pertaining to the Dealerships, including use its best efforts to ensure that Seller’s
sales and service records remain adequately protected; failure to do so is a material breach of this Agreement; (iv) except in the ordinary
course of business and consistent with historical practices, not grant increases in salary, pay or other employment related benefits to
any officers or employees of the Dealerships or allow, suggest or require employees to take unused vacation, in every case, without the
written consent of Buyer, which consent shall not be unreasonably withheld, delayed or conditioned; (v) not conduct any liquidation, close-out
or going out of business sale or, except in the ordinary course of business, purchase more than $100,000 in Fixed Assets at once or in
the aggregate in any month; (vi) not remove any Fixed Assets from the Real Property prior to Closing except in the ordinary course of
business and, in such event, with prior written notice to Buyer if the removed Fixed Assets have a net book value of $100,000 individually
or in the aggregate; (vii) not enter into any contract or agreement which is not terminable without penalty on not more than 30 days’
notice and which provides for payment by the Dealerships (whether actual or accrued) in excess of $25,000.00 without the prior written
consent of Buyer, which consent shall not be unreasonably withheld, delayed or conditioned; (viii) not transfer any inventory or employee
of the Dealerships to Seller’s (or Seller’s owners’) other business, or transfer any inventory or employee of any of
Seller’s (or its owners’) other businesses to the Dealerships; and (ix) not take or permit any action which would result in
Seller’s representations or warranties becoming incorrect or untrue in any material respect.


 






    20


     


    

 


(c) No
Negotiations or Discussions. Until the Closing Date, Seller and Principal shall deal exclusively with Buyer regarding the transactions
contemplated by this Agreement and the Real Estate Contract. Seller and Principal shall not pursue, initiate, encourage or engage in any
negotiations or discussions with, or provide any information to, any person or entity (other than Buyer and its representatives and affiliates)
regarding the sale or possible sale to any such person or entity of the Assets, Real Property or Seller’s equity or any merger,
consolidation, joint venture, management agreement, or any other transaction of any nature with Seller or Principal, which would hinder
or frustrate Buyer from closing in accordance with the terms of this Agreement (a “Prohibited Discussion”).
If any person or entity other than Buyer initiates a Prohibited Discussion, then Seller or Principal (as the case may be) shall inform
Buyer in writing and inform such person or entity of the existence of this Agreement, and that any Prohibited Discussion would constitute
a violation of this Agreement.


 


(d) Employee
Matters. Seller and Principal shall terminate or take all appropriate action in connection with pension, profit sharing and health
and welfare benefit plans, if any, that are applicable to Seller and/or Seller’s employees (“Plans”),
prior to or at Closing, so that Buyer will have no responsibility or liability or obligation of any nature under Plans to any person,
firm or corporation whatsoever. If any applicable law provides that Buyer is or will be liable for any liability or obligation under any
Plan despite Seller’s and Principal’s contractual liability for such liability or obligation hereunder, and Seller and Principal
fail to pay or perform such liability or obligation within five (5) days after Buyer’s written demand, then such amounts may be
set off from time to time from any amount Buyer (or its affiliate) owes Principal or Seller (or its affiliate). Seller (including all
employers, whether or not incorporated, that are treated together with Seller as a single employer within the meaning of Section 414 of
the Code or, where appropriate, Seller’s health and welfare benefit plans that are “group health plans” will retain
liability for and will pay when due all benefits (including all liabilities and obligations for or arising from any “COBRA”
health care continuation coverage required to be provided under Section 4980B of the Code and Sections 601-608 of ERISA) attributable
as of the Closing Date to “covered employees” or “qualified beneficiaries” entitled to “continuation coverage”
(as those terms are defined in Section 4980B of the Code) regardless of when services were rendered or expenses incurred. By Closing,
Seller shall pay all wages (including earned but unused vacation and sick leave wages, whether or not yet vested) due Seller’s employees
as of the Closing Date. Seller shall terminate its employees on the Closing Date. Provided the Closing takes place, Buyer may, but is
not obligated to, employ Seller’s employees who are willing to accept the offered employment with Buyer, and Buyer will give due
regard to such employees’ benefits from their prior employer, so long as such employees meet all eligibility requirements, including
any probationary period; provided that, notwithstanding anything in this Agreement to the contrary, Buyer shall hire on an at-will basis
enough of Seller’s employees (each selected by Buyer in its sole and absolute discretion) so that Buyer and Seller will be in compliance
with the provisions of the Workers Adjustment and Retraining Notification Act, 29 U.S.C. §2101-2109, if applicable. The foregoing
does not grant to any of Seller’s individual employees a right of employment by Buyer.


 






    21


     


    

 


(e) Seller’s
Receivables. Following the Closing, Buyer shall accept payment of Seller’s accounts receivable and Manufacturer warranty payments
arising out of the operation of the Dealership prior to Closing for a period of 180 days. Buyer shall turn over to Seller on the last
day of each calendar month during said period all of the monies so accepted on said accounts receivable during the previous calendar month.
Buyer is not obligated to accept payments of such accounts receivable after such 180-day period, but if Buyer does so then Buyer will
promptly pay the same over to Seller. Buyer is only obligated to accept payment during such period, not to attempt to enforce payment.
No adjustment will be made in any of such accounts receivable without Seller’s permission. Seller reserves the right to pursue legal
remedies of collection upon default by the customer with respect to any receivables owed to Seller. Buyer shall have no obligation to
pursue or otherwise actively work to collect any of such Seller receivables or Manufacturer warranty payments. If Buyer does accept payment
of any of Seller's accounts receivable after expiration of the 180-day period, Buyer shall hold same in trust for Seller and promptly
pay same over to Seller. It is understood that Buyer's responsibility, so far as such collection is concerned, is only to accept monies
paid on Seller's accounts receivable and shall not include any obligation to ascertain the correct amount of any accounts receivable.


 


(f) Manufacturer
Payments. The Parties shall use their commercially reasonable efforts to ensure that (i) amounts due to Seller but collected by Buyer
(e.g., Manufacturer receivables, Manufacturer credits relating to items such as warranty claims or other claims, credit card payments,
etc.) arising out of or in connection with the operation of the Dealerships prior to Closing will be paid over to Seller promptly; (ii)
amounts due to Buyer but collected by Seller arising out of or in connection with the operation of the Dealerships on or following the
Closing or as provided in this Agreement will be paid over to Buyer promptly; (iii) amounts paid by Seller but owed by Buyer as a result
of Manufacturer erroneously billing Seller for items arising out of or in connection with the operation of the Dealerships following Closing
will be paid over to Seller promptly; and (iv) amounts paid by Buyer but owed by Seller (e.g., any finance contract chargebacks, insurance
(e.g. credit life, accident and health, extended warranty, etc.) chargebacks, or repossessions and all rebates to Seller’s customers
of premiums for credit life insurance, credit accident and health insurance, mechanical insurance coverage and GAP insurance) as a result
of Manufacturer erroneously billing Buyer for items arising out of or in connection with the operation of the Dealerships prior to Closing
will be paid over to Buyer promptly. This section survives Closing indefinitely. If there are vehicles in-transit on the Closing Date
(whether or not they are physically present) that have not been funded by Seller’s floor plan lender and the Parties do not know
whether they will be paid for by Buyer’s floor plan lender or Seller’s floor plan lender, then the Parties may separately
schedule those vehicles, Buyer will buy them but not pay for them, and, if such vehicles are funded by Seller’s floor plan lender,
then Seller shall notify Buyer and Buyer shall promptly pay Seller’s floor plan lender such amounts. Any other payments related
to such vehicles misdirected by the Manufacturer will be redistributed as contemplated by this Section 10(f). Buyer shall undertake
all accounting, bookkeeping and reconciliation as necessary under this section and shall make all payments as necessary. On a monthly
basis, Buyer shall present Seller with a reconciliation and the amount owed by Buyer or by Seller (if any) and Seller and Principal, jointly
and severally, shall pay any amounts owed to Buyer within ten (10) business days.


 






    22


     


    

 


11. Indemnification.
Except as expressly written in this Agreement, Buyer is not assuming any liabilities or obligations of Seller or Principal whether absolute,
contingent, accrued, known or unknown. Examples of liabilities that may exist, which Buyer is not assuming include, but are not limited
to, the following (collectively, “Liabilities Not Assumed”): (1) violations of any local, state, or federal
Environmental Laws or the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of hazardous materials
or other nuisances into the environment (including the pre-Closing management and off-site disposal of waste oil, used oil filters and
other industrial wastes and any fines or penalties associated with pre-Closing Environmental Law violations); (2) violations of any applicable
law relating to labor or employment, including violations of any collective bargaining agreement; (3) violations of, failure to comply
with, or any obligation arising under, any applicable law relating to any welfare, retirement, vacation or other benefit plan or any plan
covered by the Employee Retirement Income Security Act of 1974, as amended, or the failure to comply with the continuation coverage requirements
of Title X of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended; (4) any pending or threatened law suit, claim or
other action against Seller, whether from personal injury, wrongful death or property damage, or whether arising out of employment or
a contractual or alleged contractual right; (5) any finance contract chargebacks, insurance (e.g. credit life, accident and health, extended
warranty, etc.) chargebacks, or repossessions and all rebates to Seller’s customers of premiums for credit life insurance, credit
accident and health insurance, mechanical insurance coverage and GAP insurance; (6) any claims, liabilities or damages of any kind arising
out of Seller’s breach of any representations and warranties hereunder or its failure to perform any of its obligations hereunder,
and (7) any tax liabilities for any period or portion thereof ending by the Closing Date (including all taxes, fines, penalties and expenses
associated with the potential sales tax liabilities (whether or not known or disclosed by Seller) or resulting from the transactions contemplated
hereby.


 


(a) Indemnification
by Seller and Principal. Seller and Principal, jointly and severally, shall indemnify, defend, and hold harmless Buyer, its affiliates
and subsidiaries, and their respective owners, general partners, partners, managers, members, controlling persons, directors, officers,
employees, agents, attorneys, and their successors and assigns (collectively, the “Buyer Indemnified Parties”)
from and against, and to pay to Buyer Indemnified Parties the amount of, all losses, claims, obligations, demands, assessments, penalties,
fines, forfeitures, liabilities, costs, and other damages, including reasonable attorneys’ fees and expenses, whether or not involving
a third-party claim (collectively, “Damages”), arising directly or indirectly from (i) Seller’s or Principal's
breach of this Agreement, including any representations or warranties herein; (ii) all Liabilities Not Assumed and Excluded Liabilities;
and (iii) Seller’s, Principal’s, the Dealerships’ or Seller’s employees’ act or omission prior to the Closing
Date (e.g., the Dealerships’ operations up to the Closing Date).


 






    23


     


    

 


(b) Indemnification
by Buyer. Buyer shall indemnify, defend, and hold harmless Seller, Principal and Seller’s owners, controlling persons, directors,
officers, employees, agents, attorneys, and affiliates, and Principal and their affiliates, heirs, successors, assigns, and personal representatives
(collectively, the “Seller Indemnified Parties”, and together with Buyer Indemnified Parties, the “Indemnified
Parties”) from and against, and to pay to Seller Indemnified Parties the amount of, all Damages arising directly or indirectly
from (i) Buyer’s breach of this Agreement, including any representations or warranties herein; or (ii) any act or omission of Buyer,
the Dealerships or Buyer’s employees on or after the Closing Date (e.g., the Dealerships’ operations on and after the Closing
Date).


 


(c) Expiration
of Indemnification Obligations. Except as otherwise expressly provided in this Agreement, the rights of the Indemnified Parties to
indemnification with respect to breaches of representations and warranties will expire and be of no further effect after the second (2nd)
anniversary of the Closing Date, and accordingly no Indemnified Party may seek indemnification under this Agreement with respect to breaches
of representations and warranties after the second (2nd) anniversary of the Closing Date; provided however that there will
be no expiration of the indemnity obligations of Seller hereunder in the event of (i) a breach by Seller of the representations and warranties
set forth in Sections 6(a), (b), (c), and (g) which will survive indefinitely. The foregoing notwithstanding, none of the
provisions set forth in this Agreement, including but not limited to the provisions contained in this Section 11(c), will be deemed
to limit the time period during which a claim based on a Party’s fraud (whether of commission or omission), criminal conduct, or
intentional wrongdoing, or a claim for breach of any covenant, may be brought. Buyer’s right to indemnification, reimbursement or
any other remedy based upon Seller’s and Principal’s representations, warranties, covenants and obligations in this Agreement
(or any document executed in connection herewith) will not be affected by any investigation (including any environmental investigation
or assessment) conducted, or any knowledge acquired (or capable of being acquired) at any time.


 


(d) Indemnification
Limitations. Notwithstanding any contrary provision in this Agreement, (i) neither Seller nor Principal are obligated pursuant to
this Agreement to reimburse Buyer Indemnified Parties for Damages until the aggregate amount of Damages equals or exceeds $50,000.00 (the
“Indemnification Threshold”), at which time Buyer Indemnified Parties shall be entitled to recover all such
losses from dollar one. Nothing in this section prohibits or impairs any equitable remedy available to Buyer.


 






    24


     


    

 


(e) Indemnification
Procedure.


 


(i) Promptly
after receipt by an Indemnified Party of notice of the commencement of any proceeding against it by a third party (but in no event later
than ten (10) days after receipt of such notice), such Indemnified Party will, if a claim is to be made against any indemnifying party
with respect to such action, give notice to the indemnifying party of the commencement of such claim, but the failure to notify the indemnifying
party will not relieve the indemnifying party of any liability that it may have to any Indemnified Party, except to the extent that the
indemnifying party demonstrates that the defense of such action is materially prejudiced by the indemnifying party's failure to give such
notice.


 


(ii) The
indemnifying party will be entitled to participate in such proceeding and, to the extent that it wishes to assume the defense of such
proceeding with counsel reasonably satisfactory to the Indemnified Party and, after notice from the indemnifying party to the Indemnified
Party of its election to assume the defense of such proceeding, the indemnifying party will not, as long as it diligently conducts such
defense, be liable to the Indemnified Party for any fees of other counsel or any other expenses with respect to the defense of such proceeding
subsequently incurred by the Indemnified Party in connection with the defense of such proceeding. In connection with any indemnification,
the Indemnified Party will cooperate with all reasonable requests of the indemnifying party, and will be reimbursed all of its reasonable
out-of-pocket expenses incurred in such cooperation.


 


(iii) A
claim for indemnification for any matter not involving a third-party claim may be asserted by prompt written notice to the party from
whom indemnification is sought, subject to any limitations contained in this Agreement.


 


(iv) The
amount of any losses that are subject to indemnification, compensation or reimbursement under this Agreement shall be reduced by the amount
of any insurance proceeds and any indemnity, contribution or other similar payment actually received by the Indemnified Party in respect
of such losses or any of the events, conditions, facts or circumstances resulting in or relating to such losses (“Third-Party
Payments”). If an Indemnified Party receives any Third-Party Payment with respect to any losses for which it has previously
been indemnified (directly or indirectly) by an Indemnifying Party, the Indemnified Party shall promptly (and in any event within three
(3) business days after receiving such payment) pay to the Indemnifying Party an amount equal to such Third-Party Payment or, if it is
a lesser amount, the amount of such previously indemnified losses. The Indemnified Party shall use its commercially reasonable efforts
to recover under insurance policies or indemnity, contribution or other similar agreements other than this Agreement for any losses to
the same extent such Party would if such losses were not subject to indemnification, compensation or reimbursement hereunder.


 


(v) The
amount of any losses that are subject to indemnification, payment or reimbursement under this Agreement shall be reduced by an amount
equal to any tax benefit actually realized as a result of such losses by the Indemnified Party. The Indemnified Party shall be deemed
to have "actually realized" a tax benefit to the extent that, and at such time as, the amount of taxes paid by the Indemnified
Party or any of its affiliates is reduced below the amount of taxes that such Persons would have been required to pay but for the tax
benefit. If a tax benefit is actually realized by an Indemnified Party with respect to any losses for which it has previously been indemnified
(directly or indirectly) by an Indemnifying Party, the Indemnified Party shall promptly (and in any event within three (3) business days
after such tax benefit is actually realized) pay to the Indemnifying Party an amount equal to such actually realized tax benefit or, if
it is a lesser amount, the amount of such previously indemnified losses. If a tax benefit is reasonably available to an Indemnified Party
in connection with any such losses, the Indemnified Party shall use commercially reasonable efforts to cause such tax benefit to be actually
realized.


 






    25


     


    

 


(vi) Notwithstanding
anything in this Agreement to the contrary, in no event shall Buyer or Seller be required to indemnify, defend, hold harmless, pay or
reimburse any Indemnified Party under Section 11, or otherwise be liable in connection with this Agreement, the negotiation, execution
or performance of this Agreement, or the transactions contemplated hereby, for any losses that are punitive, incidental, consequential,
special or indirect, including loss of future revenue or income, loss of business reputation or opportunity relating to the breach or
alleged breach of this Agreement, diminution of value and any damages based on any type of multiple, in each case, in any way arising
out of or relating to this Agreement or the transactions contemplated hereby (whether at law or in equity, and whether in contract or
in tort or otherwise).


 


(vii) Notwithstanding
anything to the contrary herein, no party hereto shall be liable under Section 11 or otherwise for any losses based upon or arising
out of any inaccuracy in or breach of any of the representations, warranties or covenants of such party contained in this Agreement if
another party had actual knowledge of such inaccuracy or breach prior to the Closing Date.


 


(viii) To
the extent a party discharges any claim for indemnification hereunder, such party shall be subrogated to all rights of the Indemnified
Party against third parties.


 


(ix) For
the purposes of calculating the amount of losses under Section 11 related to a breach of a representation or warranty, any qualification
as to materiality, or "Material Adverse Effect" contained in this Agreement shall be disregarded.


 


(x) Once
a Loss is agreed to by the Indemnifying Party or finally adjudicated to be payable pursuant to this Agreement, the Indemnifying Party
shall satisfy its obligations within ten (10) business days of such final, non-appealable adjudication.


 






    26


     


    

 


(xi) All
indemnification payments made under this Agreement shall be treated by the parties as an adjustment to the Purchase Price for Tax purposes,
unless otherwise required by law.


 


(f) Guaranty.
At the Closing, Principal hereby irrevocably and unconditionally guarantees and promises to pay to Buyer, when and if due from Seller,
any and all obligations of Seller from time to time owed to Buyer pursuant to this Section 11. Separate legal procedures may be
brought and prosecuted against Principal to enforce such obligations, whether or not any legal proceeding is brought or prosecuted against
Seller or whether Seller is joined in any such action or actions. Principal further agrees that its obligations pursuant to this Section
11 are as principal and obligor, and not as surety. This is a continuing guaranty of the obligations and may not be revoked and shall
not otherwise terminate unless and until the obligations of Seller under this Section 11 have been discharged in full. Principal
represents and warrants that it will personally receive a substantial economic benefit from the consummation of the transactions contemplated
by this Agreement.


 


12. Default
& Termination. Notwithstanding any provision in this Section 12 to the contrary, no Party may terminate this Agreement
due to the breach of another Party if the first Party is in breach of this Agreement.


 


(a) Termination.
The Parties may exercise their respective rights of termination by the delivery of written notice of termination to the other Party at
any time prior to the completion of the Closing (including as provided in Section 5). A default by “Buyer” or “Seller”
under, and as defined in, the Real Estate Contract will be deemed to be a default hereunder by Buyer or Seller, respectively, and termination
of the Real Estate Contract will automatically terminate this Agreement. This Agreement and the transactions contemplated hereby may be
terminated on or before the Closing Date as follows:


 


(i) By
the mutual written agreement of the Parties; provided, however, the Earnest Money shall be promptly paid to Seller with no permission
required from Buyer;


 


(ii) By
Buyer for any or no reason by providing written notice during the Inspection Period as provided in Section 1(a), at which time
the Earnest Money will be promptly paid to Buyer upon Buyer’s written notice (i.e., no permission is required from Seller or Principal);


 


(iii) By
Buyer if a breach of any provision of this Agreement has been committed by Seller or Principal and such breach has not been either (A)
cured within ten (10) days after written notice to Seller, or (B) waived in writing by Buyer, at which time the Earnest Money will be
promptly paid to Buyer upon the joint instructions of the Parties;


 


(iv) By
Seller if a breach of any provision of this Agreement has been committed by Buyer and such breach has not been either (A) cured within
ten (10) days after written notice to Buyer, or (B) waived in writing by Seller, at which time the Earnest Money will be promptly paid
to Seller upon the joint instructions of the Parties;


 






    27


     


    

 


(v) By
Buyer if any of the conditions to the obligations of Buyer set forth in Section 8 have not been satisfied by the third (3rd)
business day prior to the designated Closing Date Deadline (other than due to Buyer’s breach of this Agreement) and Buyer has not
by then waived such condition in writing. The Earnest Money, however, shall be promptly paid to Seller with no permission required from
Buyer unless any of the conditions set forth in Sections 8 (b), (g), (h), (i) or (j) have not been satisfied, in which case
the Earnest Money shall be promptly paid to Buyer;


 


(vi) By
Seller if Seller’s conditions precedent to Closing in Section 9 have not been satisfied by the Closing Date Deadline (other
than due to Seller’s breach of this Agreement) and Seller has not then waived such condition in writing; or


 


(vii) By
Buyer or Seller, if the Closing has not occurred by the Closing Date Deadline, for any reason other than a breach by the terminating Party,
at which time the Earnest Money will be promptly paid to Buyer.


 


(b) Buyer’s
Default. If prior to Closing Buyer breaches this Agreement and fails to cure as provided above, then Seller’s and Principal’s
sole right and exclusive remedy will be to terminate this Agreement by giving written notice thereof to Buyer and then Seller may take
the Earnest Money as liquidated damages in full settlement of all claims, remedies or causes of actions against Buyer under this Agreement,
including the remedy of specific performance and other forms of equitable relief. It is impossible to estimate more precisely the damages
which might be suffered by Seller and Principal upon Buyer’s default. Seller’s and Principal’s retention of the Earnest
Money is intended not as a penalty, but as full liquidated damages.


 


(c) Seller
or Principal Default. If prior to Closing Seller or Principal breach this Agreement and fail to cure as provided above, then Buyer
may exercise, as Buyer’s sole and exclusive remedies, (i) an action in equity against Seller and/or Principal (pursuant to which
Buyer is not obligated to post a bond or prove special damages or irreparable injury) for the specific performance by Seller and Principal
of the terms and provisions of this Agreement; or (ii) the right to terminate this Agreement by giving written notice of such termination
to Seller and Principal and receive a full refund of the Earnest Money.


 






    28


     


    

 


13. Miscellaneous.


 


(a) Transaction
& Enforcement Costs. Each Party shall bear its own costs and expenses, including legal and accounting fees, incurred in connection
with this Agreement and the transactions contemplated hereby, and shall pay such costs and expenses whether or not the Closing occurs.
Upon any litigation between or among the Parties to enforce any provisions or rights hereunder, the unsuccessful Party shall pay to the
successful Party therein all costs and expenses of such Party (and any of such Party’s agents, such as attorneys or accountants)
expressly including, but not limited to, reasonable attorneys’ fees and court costs incurred therein by such successful Party, which
costs, expenses and attorneys’ fees will be included in and as a part of any judgment rendered in such litigation.


 


(b) Confidentiality.
Each Party and its representatives shall hold in strict confidence all data and information obtained in connection with this transaction,
including all financial and other information of or related to the Dealerships and the terms of this Agreement, and shall not directly
or indirectly at any time reveal, report, publish, disclose or transfer to any person any of such data and information or utilize any
of such data or information for any purpose; provided, however, each Party may disclose information to Manufacturer and
legal, tax, accounting advisors, lenders and potential lenders and other parties deemed by a Party to be necessary or appropriate in connection
with the transactions described herein, provided that such persons acknowledge that they too are bound by the confidentiality provisions
contained herein. Notwithstanding any contrary provision herein, Buyer may notify governmental organizations (e.g., the Security and Exchange
Commission) of this Agreement and the transactions contemplated hereby by filing an unredacted copy of this Agreement, and may announce
the transactions contemplated hereby as long as such announcement does not identify, or allow the general public to identify Seller or
the Dealerships.


 


(c) Relationship
& Authority. Each Party is acting as an independent contractor. Each Party is responsible for all taxes relating to its operation,
including payroll taxes for its employees and nothing in this Agreement is intended to create a relationship, express or implied, of employer-employee
or partnership or joint venture between or among any Party. Each individual executing this Agreement on behalf of a Party individually
represents and warrants that such Party is validly existing, that such execution has been duly authorized, that the terms of the instrument
will be binding upon the Party, and that such individual is duly authorized to execute this Agreement on behalf of such Party.


 


(d) Notices.
All notices and other communications provided for hereunder will be in writing, unless otherwise specified, and will be deemed to have
been duly given if delivered personally, via e-mail, via Federal Express or other nationally recognized courier, to the addresses on the
signature pages hereof or at such other addresses as a Party may designate from time to time in writing. Notices will be effective upon
receipt by the Party or refusal to accept delivery. Notices on behalf of either Party may be given by the attorneys representing such
Party.


 


(e) Integration;
Amendments & Time. This Agreement and the Real Estate Contract contain the entire understanding between the Parties and supersede
any prior understanding and/or oral agreements between them respecting the subject matter of this Agreement (including that certain letter
agreement between Buyer and Seller dated June 25, 2021). Any modification or amendment of this Agreement will be in writing and executed
by Seller and Buyer. Time is of the essence in this Agreement. If the last day to perform under a provision of this Agreement or the final
day of any period (e.g., Inspection Period or Closing Date Deadline) falls on a Saturday, Sunday, or legal holiday, then such performance
deadline or period is automatically extended through the next day which is not a Saturday, Sunday, or legal holiday.


 






    29


     


    

 


(f) Interpretation
& Administration. The words “include”, “includes”, “included”, “including” and
“such as” do not limit the preceding words or terms and are deemed to be followed by the words “without limitation”.
The Parties have a duty of good faith and fair dealing. All captions and headings contained in this Agreement are for convenience of reference
only and will not be construed to limit or extend the terms or conditions of this Agreement. Any schedule or exhibit referenced herein
but not present on the Effective Date shall be provided by Seller at least five days prior to expiration of the Inspection Period, otherwise,
the Inspection Period shall be extended so that Buyer has five days to consider such information. All pronouns and any variations thereof
refer to the masculine, feminine or neuter, singular or plural, as the context may require. All terms defined in this Agreement in their
singular or plural forms, have correlative meanings when used herein in their plural or singular forms, respectively. Each Party and its
counsel have reviewed this Agreement and the rule of construction that any ambiguities are to be resolved against the drafter will not
be employed in the interpretation of this Agreement or any amendments, schedules or exhibits hereto. Except as expressly provided herein
(e.g., “industry standard depreciation” or “as reflected on Manufacturer’s statement”), all accounting matters
required or contemplated by this Agreement will be in accordance with generally accepted accounting principles. This Agreement may be
executed in one or more counterparts and delivered by e-mail or facsimile, each of which will be deemed to be an original copy of this
Agreement and all of which, when taken together, will be deemed to constitute one and the same agreement. This Agreement will be binding
upon and inure to the benefit of the Parties, their successors and assigns. Buyer may assign or otherwise transfer all of Buyer’s
rights, obligations and benefits hereunder to any entity owned or controlled by, or under common control with, Buyer without Seller’s
or Principal’s consent. The invalidity of any one or more phrases, sentences, clauses, paragraphs, or sections of this Agreement
will not affect the remaining portions of this Agreement. Sections 10 through 13 of this Agreement will survive the expiration
and termination of this Agreement. No failure or delay by any Party to enforce any right specified herein will operate as a waiver of
such right, nor will any single partial exercise of a right preclude any further or later enforcement of the right.


 


(g) Further
Assurances. At the request of Buyer and at Buyer’s expense, Seller and Principal shall reasonably cooperate in the preparation
by Buyer of all filings to be made by Buyer with the Securities and Exchange Commission including any periodic filings and any filing
with respect to a registered offering of its securities by Buyer and the closing of the offering registered thereby. Upon Buyer’s
request at any time, Seller and Principal shall take any act, including executing and delivering any document, necessary or advisable
to transfer to and vest in Buyer, and protect its rights, title and interest in and enjoyment of, all the Assets and Real Property and
otherwise to carry out the provisions of this Agreement (including user names and passwords for sites and accounts for or related to social
media, directory assistance or reputation management and Closing Memorandum error corrections). Such further acts include terminations
or transfers of trade name filings and domain name assignments and assisting Buyer in its efforts to be restated as a successor employer
for employment tax purposes with respect to Seller’s employees hired by Buyer, including, but not limited to, the annual wage limitation
for FICA tax, and to meet the requirements of Revenue Procedure 2004-53, Section 4, Standard Procedure, for federal payroll tax purposes.


 






    30


     


    

 


(h) Escrow
Agent. Escrow Agent’s duties pursuant to this Agreement are purely ministerial in nature, and the Escrow Agent shall incur no
liability whatsoever except for its willful misconduct or gross negligence, so long as the Escrow Agent is acting in good faith. The Parties
hereby release the Escrow Agent from any liability for any error of judgment or for any act done or omitted to be done by the Escrow Agent
in the good faith performance of its duties hereunder and do each hereby indemnify the Escrow Agent against, and shall hold, save, and
defend the Escrow Agent harmless from, any costs, liabilities, and expenses incurred by the Escrow Agent in serving as Escrow Agent hereunder
and in faithfully discharging its duties and obligations hereunder. The Escrow Agent is acting as a stakeholder only with respect to the
Earnest Money. If there is any dispute as to whether the Escrow Agent is obligated to deliver the Earnest Money or as to whom the Earnest
Money is to be delivered, the Escrow Agent may refuse to make any delivery and may continue to hold the Earnest Money until receipt by
the Escrow Agent of an authorization in writing, signed by Seller and Buyer, directing the disposition of the Earnest Money, or, in the
absence of such written authorization, the Escrow Agent may hold the Earnest Money until a final determination of the rights of the Parties
in an appropriate judicial proceeding. If such written authorization is not given, or a proceeding for such determination is not begun,
within thirty (30) days after notice to the Escrow Agent of such dispute, the Escrow Agent may bring an appropriate action or proceeding
for leave to deposit the Earnest Money in a court of competent jurisdiction pending such determination. The Escrow Agent shall be reimbursed
for all costs and expenses of such action or proceeding, including reasonable attorneys’ fees and disbursements, by the Party determined
not to be entitled to the Earnest Money. Upon making delivery of the Earnest Money in any of the manners herein provided, the Escrow Agent
shall have no further liability or obligation hereunder. The Escrow Agent shall execute the Escrow Receipt attached hereto in order to
confirm that it has received the Earnest Money and is holding the same on deposit in accordance with the provisions hereof.


 


(i) Applicable
Law & Venue. This Agreement will be governed by and construed and enforced in accordance with the internal laws and judicial
decisions of the State of Texas without regard to conflict of law provisions thereof. Any litigation, action or proceeding arising out
of or relating to this Agreement will be held exclusively in any state or Federal court in the state and county in which the Real Property
is primarily located. Each Party waives any objection which it might have now or hereafter to the venue of any such litigation, action
or proceeding, submits to the sole and exclusive jurisdiction of any such court and waives any claim or defense of inconvenient forum.
Each Party consents to service of process at such Party’s address as provided herein (and updated in writing from time to time).


 


[Remainder of Page Blank]




    31


     


    


 


IN WITNESS WHEREOF,
the Parties executed and delivered this Agreement as of September 10, 2021 (the “Effective Date”).


 


	McGavock Auto Group, L.L.P., a Texas limited partnership, as Seller	 	LMP LUBBOCK 001 HOLDINGS, LLC, a Texas limited liability company, as Buyer
	 	 	 
	By:	 	 	By:	 
	 	Name & Title:	 	 	Name & Title:
	 	 	 
	MCGAVOCK NISSAN OF ABILENE, L.L.P., a Texas limited partnership, as Seller	 	 	Notice Address:
	 	 	 	5100 East Broward Blvd.
	By:	 	 	 	Suite 1900
	 	Name & Title:	 	 	Fort Lauderdale, FL 33394
	 	 	 	Phone: (954) 895-0353
	MCGAVOCK NISSAN OF AMARILLO, LP, a Texas limited partnership, as Seller	 	 	Email: sam@lmpmotors.com,
	 	 	 	richard.aldahan@lmpmotors.com 
	By:	 	 	 
	 	Name & Title:	 	 	With a copy to:
	 	 	 	Greenberg Traurig, PA
	MCGAVOCK WEST TEXAS MOTORS, L.P., a Texas limited partnership, as Seller	 	 	Attn: Bruce C. Rosetto, Esq.
	 	 	 	777 South Flagler Drive
	By: 	 	 	 	Suite 300 East
	 	Name & Title:	 	 	West Palm Beach, FL 33401
	 	 	 	Phone: (561) 650-7940
	MCGAVOCK NISSAN OF SAN MARCOS, L.P., a Texas limited partnership, as Seller	 	 	Email: rosettob@gtlaw.com
	 	 	 
	By: 	 	 	 
	 	Name & Title:	 	 
	 	 	 
	 	Notice Address:	 	 
	 	McGavock Auto Group, L.L.P.	 	 
	 	Attn: Steve McGavock	 	 
	 	4004 109th Street	 	 
	 	Lubbock, Texas 79423	 	 
	 	Phone:	 	 
	 	Email: steve.mcgavock@gmail.com	 	 
	 	 	 
	 	With a copy to:	 	 
	 	Shackelford, Bowen, McKinley & Norton, LLP	 	 
	 	Attn: John C. Shackelford	 	 
	 	9201 N. Central Expressway	 	 
	 	Fourth Floor	 	 
	 	Dallas, Texas 75231	 	 
	 	Phone: (214) 780-1400	 	 
	 	Email: jshack@shackelford.law	 	 
	 	 	 
	 	 	 
	Steve McGavock, individually, as Principal	 	 
	 	 	 
	 	Notice Address:	 	 
	 	Same as Seller’s Above	 	 


 







    32


     


    


 


Schedule 2 – List of Assets


[To be completed and provided within 10 calendar
days of Effective Date]


 


 


 


 


 


 


 


 


 


 


 


 




    33


     


    


 


Schedule 3(c) – Assigned Contracts


 


[To be completed and provided within 10 calendar
days of Effective Date]


 


	Counter Party	 	Date and Term	 	Cost	 	Termination Rights
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 


 




    34


     


    


 


Schedule 4(a) – Real Properties Under
the Real Estate Contract


 


[To be completed and provided within 10 calendar
days of Effective Date]


 


 


 


 


 


 


 


 


 


 




    35


     


    


 


Schedule 4(b) – Assigned Lease






 


[To be completed and provided within 10 calendar
days of Effective Date]


 


 


 


 


 


 


 


 


 


 


 


 




    36


     


    


 


Schedule 6(h) – Manufacturer Matters


 


[To be completed and provided within 10 calendar
days of Effective Date]


 


 


 


 


 


 


 


 


 


 






    37


     


    

 


EXHIBIT A


 


License
Use Agreement


(Request
for Permission to Operate)


 


Reference is hereby made to that certain Dealership
Asset Purchase Agreement dated effective as of September 10, 2021, by and among LMP LUBBOCK 001 HOLDINGS, LLC, a Texas limited
liability company (“Buyer”), MCGAVOCK AUTO GROUP, L.L.P., a Texas limited partnership, MCGAVOCK NISSAN
OF ABILENE, L.L.P., a Texas limited partnership, MCGAVOCK NISSAN OF AMARILLO, LP, a Texas limited partnership, MCGAVOCK
WEST TEXAS MOTORS, L.P., a Texas limited partnership, and MCGAVOCK NISSAN OF SAN MARCOS, L.P., a Texas limited partnership
(collectively, the “Seller”), and STEVE MCGAVOCK (“Principal”) (as it may be
amended and assigned, the “Agreement”). Undefined capitalized terms used herein are used as defined in the Agreement.


 


If Buyer’s request for permission to operate
is granted by the Office of Consumer Credit Commissioner (“OCCC”), then Seller hereby grants Buyer the authority
for sixty (60) days to operate under Seller’s Motor Vehicle Sales Finance License (including Seller’s documentary fee filing
notice with OCCC) pending issuance Buyer’s licenses by the OCCC and other regulatory authorities of the State of Texas (license
number [●], the “License”), and authorizes Buyer to enter retail installment contracts under Seller’s
name and to sell and assign such retail installment contracts to banks, finance companies and other creditors in the ordinary course of
business. Seller and Buyer each accepts joint and several responsibility to the O.C.C.C. and any consumer of the licensed business for
any acts of Buyer in connection with the operation of the licensed business during the term of this agreement. Seller covenants to maintain,
but not use, the License during the term of this agreement, and to immediately surrender or inactivate its license if the OCCC approves
Buyer’s application.


 


Buyer represents and warrants that it shall promptly
apply for, and shall use commercially reasonable efforts to obtain, its own License as promptly as practicable following the date hereof.
Buyer shall indemnify and hold Seller and Principal harmless from and against any cost or liability, including reasonable attorneys’
fees, incurred by Seller or Principal, or any of their respective affiliates, proximately caused by Buyer’s or its representatives’
use of the License.


 


This agreement will be in force only until Buyer
is issued its own license to replace each the License. During such time, only Buyer may operate under the License. Nothing contained in
this agreement is intended to effectuate a transfer or assignment from Seller to Buyer of any License held by Seller or to grant rights
to Buyer that are prohibited by applicable Texas law. This agreement may be executed in counterparts and delivered via facsimile or electronic
mail.


 


[Signature Page Follows]


 




    38


     


    


 


Entered into as of [●], 2021.


 


	MCGAVOCK AUTO GROUP, L.L.P., a Texas limited partnership, as Seller	 	LMP LUBBOCK 001 HOLDINGS, LLC, a Texas limited liability company, as Buyer
	 	 	 
	By: 	                                          	 	By: 	 
	 	Name & Title:	 	 	Name & Title:
	 	 	 
	MCGAVOCK NISSAN OF ABILENE, L.L.P., a Texas limited partnership, as Seller	 	 
	 	 	 
	By: 	 	 	 
	 	Name & Title:	 	 
	 	 	 
	MCGAVOCK NISSAN OF AMARILLO, LP, a Texas limited partnership, as Seller	 	 
	 	 	 
	By: 	 	 	 
	 	Name & Title:	 	 
	 	 	 
	MCGAVOCK WEST TEXAS MOTORS, L.P., a Texas limited partnership, as Seller	 	 
	 	 	 
	By: 	 	 	 
	 	Name & Title:	 	 
	 	 	 
	MCGAVOCK NISSAN OF SAN MARCOS, L.P., a Texas limited partnership, as Seller	 	 
	 	 	 
	By:	 	 	 
	 	Name & Title:	 	 
	 	 	 
	STEVE MCGAVOCK, as Principal	 	 
	 	 	 
	Approved:	 	 
	_______________________________	 	 
	___________________, Commissioner Office of Consumer Credit Commissioner	 	 
	 	 	 
	Date:	 	 


 



    39


     


    




 


EXHIBIT B


 


NON-COMPETITION AGREEMENT






 


 


 


 


 


 


 


 


 


 


 


 


 


 




    40


     


    


 


EXHIBIT C


 


BILL OF SALE


 


 


 


 


 


 


 


 


 


 


 


 


 


 




    41


     


    


 


ESCROW RECEIPT


 


Dealership
Asset Purchase Agreement


 


Escrow
Agent agrees to be bound by the Dealership Asset Purchase Agreement and acknowledges receipt of:


 


		☐	A.
Executed copies of the Dealership Asset Purchase Agreement on September 10, 2021;



 


		☐	B.
Earnest Money in the amount of $1,500,000 on September __, 2021.



 


The
Effective Date of the Dealership Asset Purchase Agreement is the first date on which Escrow Agent was in possession of both items described
above, and thus, the Effective Date is September 10, 2021.


 


Escrow
Agent:


 


	By:		 
	 	Name &
    Title:	 






 


Escrow
Agent acknowledges having reviewed this Dealership Asset Purchase Agreement and will be bound by those provisions thereof which
pertain to Escrow Agent and its duties thereunder.


 


 


42