Exhibit 10.1


 


DEALERSHIP ASSET PURCHASE AGREEMENT


 


This DEALERSHIP ASSET PURCHASE
AGREEMENT (this “Agreement”) is effective as of the date First American Title Company (“Escrow Agent”)
executes the escrow receipt on the last page hereto (the “Effective Date”), and is among LMP Automotive Holdings,
Inc., a Delaware corporation or its assigns (“Buyer”), David Peacock and Aldo B. Paret, Texas residents (collectively,
“Principal”), and Tom Peacock Nissan/Cadillac, Inc., a Texas corporation (“Seller”;
and together with Buyer and Principal, each a “Party” and, collectively, the “Parties”).


 


RECITALS:


 


WHEREAS, Seller owns,
controls and operates a Nissan and Cadillac motor vehicle dealership (collectively, the “Dealership”) located
at 15300 - 15480 North Freeway, Houston, Texas 77090 (the “Property”), under agreements with Nissan North America
Inc. and General Motors Company (collectively, “Manufacturer”); and


 


WHEREAS, Seller and
Principal desire to sell and transfer substantially all of the Dealership’s 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.


 


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 as follows:


 


1. Timing & Money.


 


(a) Inspection
Period & Closing Date. From the Effective Date through the sixtieth (60th) day after the Effective Date (the “Inspection
Period”), Buyer may terminate this Agreement for any or no reason upon written notice to Seller and 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 which is one hundred twenty (120) days after the Effective Date; 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 $120,000,000.00 (the “Goodwill
Price”), payable in cash and LMP Stock (defined below) on the Closing Date. 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. The Presidio Group LLC (the “Broker”) assisted Seller
with the transactions contemplated herein; the fees of which will be paid by Seller on the Closing Date.


 






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(c) LMP Stock.


 


(1) Issue Price.
Buyer may elect to pay up to $42,000,000.00 of the Goodwill Price in the form of common stock of LMP Automotive Holdings, Inc., a Delaware
corporation (NASDAQ: LMPX, the “LMP Stock”), 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 1,800,000 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 less than $42,000,000, then Buyer shall pay Seller cash in an amount equal to the difference between $42,000,000 and the Maximum
Equity Value.


 


(2) Price Protection.
If (A) Buyer elects to issue LMP Stock to Seller pursuant to Section 1(c)(1) above; and (B) 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)(1) 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).


 


(3) 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. 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 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. LMP 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. Buyer shall (i) take all necessary steps at Closing to insure and verify
that no Seller or Principal is an affiliated party; (ii) use reasonable efforts to provide documentation sufficient to confirm Rule 144
compliance; and (iii) instruct Buyer’s transfer agent to remove restrictions when able to do so.


 






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(d) Earnest Money.
Within three (3) business days after the first date that Buyer has signed this Agreement and received from Seller a complete, fully executed
copy of this Agreement signed by Seller and Principal; and the existing owner’s title policy, existing survey and existing environmental
reports for the real property that comprises the Property, Buyer shall deliver to Escrow Agent $1,000,000.00 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).


 


(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.


 


(f) Audit.
Seller shall provide Buyer with two (2) years (2019 and 2020) of audited financial statements and a 2021 quarter renewal statements (the
“Audit & Renewal Statement”) performed by Svadlenak, See and Company (as long as they are authorized to
issue valid PCAOB audits and otherwise a mutually agreed to firm) 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 & Renewal Statement). On the Closing Date, or within five (5) days after the earlier termination of this Agreement for any reason
other than Seller’s or Principal’s breach of this Agreement, Buyer will reimburse Seller’s actual, documented expenses
for the Audit & Renewal Statement.


 


2. Dealership 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 listed below in this Section 2. A mutually agreed to form of Bill of Sale, Assignment
and Assumption Agreement executed and delivered by the Parties on the Closing Date (the “Bill of Sale”) will
contain a list and description of all of the Assets sold to Buyer.


 


(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 Dealership (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.


 






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(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 ten (10) untitled demonstrators with less than 5,000 miles) 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 5,000 miles will be reduced by $0.60 per mile. New Vehicles with 5,000 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; (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; and (iii) the following New Vehicles will be purchased at a mutually agreed
to price after good faith and reasonable negotiations or otherwise retained by Seller: (A) discontinued model New Vehicles; (B) New Vehicles
with dealer added accessories that, as valued as provided above, exceed 10% of the New Vehicle purchase price established by the
calculations above; and (C) New Vehicles in stock for more than six months. Upon Closing, Buyer may retain 10% of the purchase price for
loaner and demonstrator vehicles for thirty (30) days as a reserve for the reasonable cost to repair damage to such vehicles not present
at the Dealership on the Closing Date, if any; which shall be documented in the Closing Memorandum.


 


(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”). Notwithstanding any provision in
this Agreement to the contrary, titled demonstrators and service loaners will be purchased for the reasonably depreciated net book value
as of the Closing Date. 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 Property within ten (10) days after the Closing.


 


(d) 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 Master Price List (less all applicable rebates
and discounts).


 






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(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.


 


(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 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 may deduct from the consideration to be paid to Seller at the Closing
Seller’s parts account outstanding balance with the Manufacturer and to pay such balance directly to the Manufacturer for Seller’s
account. 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 twelve (12) 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 Property within ten (10) days after the Closing Date, such property will
automatically become Assets transferred to Buyer pursuant to the Bill of Sale without additional consideration.


 


(e) 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 Dealership, including tompeacock.com, tompeacocknissan.com,
tompeacockcadillac.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 Dealership or Seller,
Dealership 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 Dealership (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 (other than DMS systems not assumed by Buyer) on or used in connection with any personal computer or other
computing device used in connection with the Dealership, etc.), parts sales tickets, unused purchase order forms and all other forms and
Seller’s goodwill and going concern value relating to the Dealership. “Dealership Intellectual Property”
means any rights or ownership of the Dealership 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 “Peacock” 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).


 






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(f) Excluded
Assets & Name License. Notwithstanding anything in this Agreement to the contrary, the following assets are not being sold pursuant
to this Agreement (“Excluded Assets”): (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; and (ix) trade names, service marks, trade dress and logos incorporating the name “Peacock”;
provided, however, that Seller hereby grants Buyer the irrevocable and approval-free right and license to continue to use the “Peacock”
name in trade names for the Dealership as Seller has in the past for five (5) years after the Closing Date.


 


3. Pro-rations &
Assumed Contracts.


 


(a) Prepaid
Expenses & Pro-rations. Buyer shall purchase from Seller, and Seller shall sell to Buyer, the Dealership’s prepaid expense
items incurred in the ordinary course of business at the direct out-of-pocket cost to Seller for such items and provided such prepaid
expenses provide future benefit to Buyer as determined by Buyer in its sole discretion. 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).


 






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(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 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”).
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 Property on the Closing Date or such order has been open for longer than thirty (30) days
prior to the Closing Date; (iii) the Work in Process does not provide for a profit to Buyer; or (iv) the Work in Process does not provide
for cash or commercially reasonable credit terms on delivery of the vehicle.


 


(c) Assumed
Contracts. As of the Closing Date, Buyer shall assume Seller’s contractual obligations listed on Schedule 3(c) hereto
on the Closing Date (collectively, “Assumed Contracts”). The term “Assumed 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
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 Assumed Contracts at Seller’s cost. Buyer is not assuming any liabilities or obligations of Seller other than the Assumed Contracts.


 


4. Real
Property.


 


(a) Real Estate
Contract. Buyer will purchase the Property from Seller’s affiliates, Nissan Real Estate, Ltd. and Cadillac Real Estate, Ltd.,
Texas limited partnerships, pursuant to a real estate contract effective as of the Effective Date (as it may be amended and assigned,
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) Environmental
Audit. Seller shall allow InControl Technologies, LLC to have prompt access to the 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 Property. Buyer shall
pay the cost of the Phase I, but if a Phase I environmental report recommends a Phase II environmental report, then Seller 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 asset sale proceeds in a third party escrow account.


 






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5. Inspections.
Beginning on the Effective Date, Buyer may conduct due diligence regarding the Dealership and Property, including obtaining such reports
and studies as Buyer deems appropriate. 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 at least thirty (30) days prior to the scheduled Closing Date), information
and facilities of the Dealership and the Property, and shall make Seller’s officers, employees, accountants and attorneys available
at reasonable times to discuss with Buyer and Buyer’s representatives such aspects of the business of the Dealership, the 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.


 


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 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 and the consummation of the transactions contemplated hereby is
permitted by Seller’s organizational documents and resolutions and Seller’s agreements and obligations. The execution, delivery,
and performance of this Agreement by Seller does not require the consent of Seller’s creditors or of any other person other than
the Manufacturer, other than such consents as have been, or prior to the Closing will be, obtained.


 


(d)
Financials. True, correct and complete copies of the Current Financials have been delivered by Seller to Buyer. The Current
Financials are in accordance with the books and records and Seller’s accounting methods, and have been prepared in all material
respects in accordance with Manufacturer’s requirements. “Current Financials” means Seller’s internally
prepared, un-audited financial statements in the form required by Manufacturer, for the fiscal year ended December 31, 2017, December
31, 2018, and December 31, 2019, December 31, 2020, and each of the completed months thereafter through the Closing Date.


 


(e)
Compliance. The Dealership and the Property comply in all respects with, and the Dealership has been conducted in all respects
in compliance with, all laws, rules and regulations (including all worker safety and all Environmental Laws (as hereinafter defined)),
applicable zoning and other laws, ordinances, regulations and building codes, and neither Seller nor Principal has received any notice
of any violation thereof which has not been cured.


 






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(f)
Litigation. There are no actions, suits or legal proceedings pending, or, to Seller’s or Principal’s knowledge,
threatened, against or affecting Seller, the Dealership or the Property which might adversely affect Seller’s power or authority
to carry out the transactions to be performed by Seller hereunder.


 


(g)
Dealership Assets. 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. 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 Dealership 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 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 Dealership or the 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 Dealership operates. The Dealership does 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 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. (i) none of the permits or licenses used by Seller in the operation of the Dealership have been terminated or
revoked; (ii) no 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 Dealership or the Property.


 


(j)
Warranties. 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.


 


(k)
Assumed Contracts. The summaries of the Assumed Contracts on Schedule 3(c) accurately describe such Assumed 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 Assumed Contracts are, or as of the Closing Date will be current.


 


(l)
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 Property or any interest therein, or Seller’s Manufacturer contract rights
or privileges.


 






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(m)
 Taxes. 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 Dealership or the Property. Each such return is true, correct, and
complete in all material respects, and Seller has paid all taxes, assessments, amounts, interest and penalties due to applicable governmental
authority. 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 Dealership or the
Property.


 


(n)
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. 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”.


 


(o)
Property. There are no known and undisclosed defects in the physical condition of the Property or the improvements or fixtures
thereon (including structural elements, mechanical systems, plumbing, electric, fire protection, mold, roofs, fences, paving, parking,
sidewalks, utilities, drainage and erosion control), the Property and improvements thereon are in good operating condition and repair
(reasonable wear and tear excluded) and have been maintained, there exists no “deferred maintenance” or outstanding “short-term
capital expenditures/repairs” (as those terms are defined by the American Society of Testing Materials), all water, sewer, gas,
electric, telephone, drainage, and other utilities required by applicable law or necessary for the current or planned operation of the
Property by Seller have been installed and connected pursuant to valid permits, such utilities are sufficient to service the Property
for the business conducted thereon by Seller, and there are no existing code violations. There are no actions, suits, claims, proceedings
or causes of action which are pending or, to Seller’s knowledge, have been threatened or asserted against, or are affecting, the
Property or any part thereof in any court or before any arbitrator, board or governmental or administrative agency or other person or
entity which might have an adverse effect on the Property or any portion thereof or on Buyer’s ability to use the Property as a
motor vehicle storage, sales, lease, repair and service center. The Property is not burdened by any obligation for contribution of money
or property to or participation in any road development or completion project or to bear any share of the cost of any road or other offsite
improvement. There is no pending condemnation or annexation or similar proceeding affecting the Property or any portion thereof, and Seller
and Principal have not received any written notice, nor do they have any knowledge, that any such proceeding is contemplated.


 






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(p)
Environmental. (i) neither Seller nor Principal have received any notice from any governmental authority alleging a violation
of any Environmental Laws that are applicable to the Property, (ii) Seller has complied in all material respects with all Environmental
Laws that are applicable to the Property, and has obtained and has been in compliance in all material respects with all required governmental
environmental permits with respect to the Dealership, and (iii) no unauthorized storage, treatment, discharge or disposal of Hazardous
Materials on the Property has been made by Seller or its employees or agents, except in compliance in all material respects with applicable
Environmental Laws. “Environmental Laws” means any federal, state or local statute, ordinance, rule or regulation
relating to the existence, cleanup, removal and/or remedy of contamination on property, the protection of the environment from spilled,
emitted, discharged, discarded, deposited or emplaced Hazardous Materials, the generation, use, transport, storage, handling, disposal,
removal or recovery of Hazardous Materials, and the exposure to hazardous, toxic, or other substances determined by law to be harmful,
including the Comprehensive Environmental Response, Compensation and Liability Act of 1980 as amended (“CERCLA”),
The Toxic Substances Control Act, The Clean Air Act, and the Resource, Conservation and Recovery Act of 1976; and the term “Hazardous
Material” means any “hazardous substance,” as defined by §101(14) of CERCLA.


 


(q)
Paycheck Protection Program. As of the Closing Date, Seller will have no outstanding loan or loans issued pursuant to the
Small Business Administration’s Paycheck Protection Program.


 


(r)
Brokers. Except for Broker, all negotiations relating to this Agreement, the Real Estate Contract and the transactions contemplated
hereby and thereby have been carried on without the participation of any person acting on Seller’s or Principal’s behalf in
such manner as to give rise to any valid claim against Buyer for any brokerage or finder’s commission, fee, expense, or similar
compensation.


 


(s)
Disclosure. 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.


 


As used in this Agreement, the phrases “knowledge
of Seller” or “Seller’s knowledge” means the knowledge of Seller’s officers, Principal and the Dealership’s
general managers.


 


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.


 






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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 Dealership at the 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 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 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 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 Dealership or the Property, (ii) there has been no federal, state or local legislative or regulatory change affecting the services,
products or business of the Dealership, which would have a material adverse effect on the Dealership or the 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 Dealership or the 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.


 


(h)
Closing Memorandum & Bill of Sale; etc. 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 and other instruments of transfer and conveyance as
may reasonably be required by Buyer, each in form and substance reasonably satisfactory to Buyer.


 






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(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)
Paret employment. Aldo B. Paret executed and delivered an Employment Agreement with a minimum term of six (6) months acceptable
to the parties thereto.


 


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


 


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.


 


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 acceptable to Buyer. Buyer (or its affiliate) shall promptly apply to the Manufacturer for the issuance
of a contractual right to operate an automobile dealership upon the 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 and promptly remove Manufacturer’s intellectual property from all publicly visible assets in every form and
medium (i.e., retained internet sites, signs, etc.). Seller shall fully 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 factory. 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 Assumed Contracts
after the Closing for any legitimate purpose, such as (by way of example and not by limitation) for resolving customer inquiries.


 






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(b) Dealership
Operations Pending Closing. Pending Closing, Seller shall continue to operate the Dealership in substantially the same manner as it
has 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 Dealership 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 Dealership, 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) not grant increases
in salary, pay or other employment related benefits to any officers or employees of the Dealership or allow, suggest or require employees
to take unused vacation, in every case, without the written consent of Buyer; (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 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 Dealership (whether actual or accrued) in excess of $5,000.00 without the prior written consent of Buyer;
(viii) not transfer any inventory or employee of the Dealership 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 Dealership; 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.


 


(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, 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 the 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.


 






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(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.


 


(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.


 


(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 Dealership 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 Dealership 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 Dealership 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 Dealership 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 by Seller (if any) and Seller and Principal, jointly
and severally, shall pay any amounts owing Buyer within ten (10) business days.


 






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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; and (6) 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 (iii) Seller’s,
Principal’s, the Dealership’s or Seller’s employee’s act or omission prior to the Closing Date (e.g., the Dealership’s
operations up to the Closing Date).


 






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(b) Indemnification
by Buyer. Buyer shall indemnify, defend, and hold harmless Seller 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 Dealership or Buyer’s employees on or after the Closing Date (e.g., the Dealership’s 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. 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. Seller shall name Buyer as an additional
insured on Seller’s current and past insurance policies with coverage applicable to the Dealership.


 


(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,
excluding chargebacks, Damages arising from breaches of the representations or warranties in Sections 6(a)-6(c), amounts owed pursuant
to Section 12, or Damages arising from Seller’s or Principal’s fraud (whether of commission or omission), criminal
conduct, or willful misconduct (the “Basket”), in which case Seller and Principal shall be jointly and severally
liable for all such Damages, and (ii) neither Seller nor Principal are obligated pursuant to this Agreement to reimburse Buyer Indemnified
Parties for Damages in excess of an amount equal to ten percent (10%) of the Goodwill Price, excluding Damages arising from breaches of
the representations or warranties in Sections 6(a)-6(c), amounts owed pursuant to Section 12, or Damages arising from Seller’s
or Principal’s fraud (whether of commission or omission), criminal conduct, or willful misconduct (whether of commission or omission),
criminal conduct, or willful misconduct. Nothing in this section prohibits or impairs any equitable remedy available to Buyer.








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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 the “Buyer” or the
“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, at which time the Earnest Money will be promptly paid to 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;


 


(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, at which time the Earnest Money will 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, at which time the
Earnest Money will be promptly paid to Buyer; 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.


 






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(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 any and all rights and remedies available to it at law or in equity, including (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; and (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 without prejudice to any of Buyer’s
rights or remedies including an action for direct damages, but not consequential damages.


 


(d) Set Off.
Upon Seller’s or Principal’s breach of this Agreement, the Real Estate Contract or the Non-competition Agreement (in addition
to any rights and remedies of Buyer provided by law, including other rights of set off), Buyer may set off any payments to be made pursuant
to this Agreement, Real Estate Contract against Seller’s or Principal’s obligations or liabilities pursuant to this Agreement,
the Real Estate Contract or the Non-Competition Agreement.


 


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 Dealership 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 Dealership.


 


(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.


 






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(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 15, 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.


 


(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.


 






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(g) Further
Assurances. At the request of Buyer and at Buyer’s expense, Seller and Principal shall 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 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.


 


(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 in which the Property is located 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 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]


 




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IN WITNESS WHEREOF,
the Parties executed and delivered this Agreement as of the Effective Date.


 


	Tom Peacock Nissan/Cadillac, Inc., a Texas corporation, as Seller	 	LMP Automotive Holdings, Inc., a Delaware corporation, as Buyer
	 	 	 	 	 
	By:	 	 	By:	 
	 	David Peacock, President	 	 	Name & Title:
	 	 	 	 
	 	Notice Address:	 	 	Notice Address:
	 	aparet@aol.com	 	 	sam@lmpmotors.com,
	 	 	 	 	richard.aldahan@lmpmotors.com, and
	 	With a copy to:	 	 	brian.nolen@nolenpllc.com
	 	 	 	 
	 	William S. Bush	 	 
	 	Bush & Ramirez, PLLC	 	 
	 	5615 Kirby Drive, Suite 900	 	 
	 	Houston, TX  77005	 	 
	 	wsbush.atty@bushramirez.com	 	 


 


	 	 
	David Peacock, individually, as Principal	 
	 	 
	Notice Address: Same as Seller’s Above	 
	 	 
	 	 
	Aldo B. Paret, individually, as Principal	 
	 	 
	Notice Address: Same as Seller’s Above	 


 




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Schedule 1(c) – Form of Opinions


 


Schedule 3(c) – Assumed Contracts


 


(Completed during the Inspection Period)


 


1. Offsite parking
lease for vehicle storage


 


Schedule 6(h) – Manufacturer Matters


 


Cadillac has requested that Seller materially
upgrade the imaging of the Cadillac facility, and offered material consideration to do so, and Seller has declined.


 




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EXHIBIT A


 


License
Use Agreement


(Request
for Permission to Operate)


 


Reference is hereby made to that certain Dealership
Asset Purchase Agreement effective July [●], 2021 (as it may be amended and assigned, the “Agreement”;
undefined capitalized terms used herein are used as defined therein), by and among [●] (“Buyer”), Tom
Peacock Nissan/Cadillac, Inc., a Texas corporation (“Seller”), and David Peacock and Aldo B. Paret (collectively,
“Principal”).


 


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.


 


Entered into as of [●], 2021.


 


	Tom Peacock Nissan/Cadillac, Inc., a Texas corporation, as Seller	 	[●], a [●], as Buyer
	 	 	 	 	 
	By:  	 	 	By:	 
	 	David Peacock, President	 	 	Name & Title:
	 	 	 
	Approved:	 	 
	 	 	 
	 	 	 
	___________________, Commissioner Office of Consumer Credit Commissioner	 	 
	 	 	 
	Date:	 	 


 






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EXHIBIT B


 


NON-COMPETITION AGREEMENT


 


This NON-COMPETITION AGREEMENT
(this “Agreement”) is made and entered into as of [●], 2021, by and among Tom Peacock Nissan/Cadillac,
Inc., a Texas corporation, [OTHER OWNERS], David Peacock and Aldo B. Paret, a Texas resident (collectively, “Seller”),
and [●] (the “Buyer”).

 


WHEREAS, Seller has
been involved in the ownership or operation of a Nissan and Cadillac motor vehicle dealership located in Houston, Texas 77090 (the “Dealership”)
for several years and has developed a significant reputation in the Houston metropolitan area and the surrounding regions in connection
with sales, lease and service of motor vehicles and with the general operation of the Dealership;


 


WHEREAS, Buyer (as
assignee of LMP Automotive Holdings, Inc.) and Seller are parties to that certain Dealership Asset Purchase Agreement effective as of
[●], 2021, regarding the Dealership (as it may be amended or assigned, the “APA”; undefined capitalized
terms used herein are used as defined in the APA); and


 


WHEREAS, in order to
protect the future business operations of Buyer from such competition Seller has agreed to refrain from taking certain actions as detailed
herein.


 


NOW, THEREFORE,
in exchange for $10.00 and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties
hereto hereby agree as follows:


 


2. Term. The term of
this Agreement is two (2) years commencing on the Closing Date (the “Term”); provided, however,
the Term will be automatically extended by a period of time equal to the time(s) during which Seller is in breach of this Agreement.


 


3. Non-competition.
During the Term, Seller shall not participate in any capacity in the retail sale, lease, repair or service of motor vehicles, parts or
accessories in Harris County, Texas or any county adjoining Harris County, Texas.


 


4. No solicitation or hiring.
During the Term, without the prior express written consent of Buyer, Seller shall not (and shall not attempt to, permit or cause any of
its affiliates, subsidiaries, contractors or representatives or their respective owners, directors, officers, employees, contractors,
agents, representatives or third parties to) hire or solicit to hire any Dealership employee that worked for the Dealership at any time
during the period of time from June 15, 2021, through the Term (each, a “Restricted Party”).


 


5. Enforcement.


 


(a) Injunctive
Relief. Irreparable damage will result to Buyer upon Seller’s breach of this Agreement, and upon such a Seller breach, Buyer
will be entitled, in addition to any other rights and remedies available at law or in equity, to an injunction to restrain and enjoin
Seller from violating the restrictive covenants in this Agreement (collectively, the “Restrictive Covenants”)
without the necessity of posting any bond or proving special damages or irreparable injury. Seller shall pay or Reimburse Buyer for all
expenses incurred by Buyer, including reasonable legal fees of Buyer in any litigation between Buyer and Seller involving this Agreement
in which Buyer substantially prevails. If there is a suit in equity by Buyer against Seller to enforce this Agreement, and the court refuses
for any reason to enforce the Agreement by injunction, then such suit in equity will not be a bar to a later suit to recover damages.


 






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(b) Stipulated
Damages. The damages to Buyer upon of a violation of this Agreement with respect to hiring or soliciting a Restricted Party is difficult
if not impossible to calculate and, upon a violation of Paragraph 3, Seller jointly and severally shall pay Buyer liquidated damages
of $100,000 for each Restricted Party solicited or hired by Seller (or any entity owned or controlled in whole or in part by a Seller).
If Seller fails to pay or perform such liability or obligation within five (5) days after Buyer’s written demand, then such amounts
owed by either Seller hereunder may be set off from any amount Buyer (or its affiliate) owes Seller (or its affiliate).


 


5. Interpretation &
Administration. The parties hereto do not intend for the Restrictive Covenants to violate any public policy or statutory or common
law. If a court of competent jurisdiction renders a ruling holding that any one or more of the provisions of this Agreement, including
the stated term and/or geographic coverage of the Restrictive Covenants, constitute an unreasonable restriction, then the Restrictive
Covenants will not be rendered void but will apply to such extent and as to such time period and geographic areas as the court may determine
constitutes a reasonable restriction under the circumstances. For clarity, put another way, a court shall be allowed to revise the restrictions
to cover the maximum period, scope and area permitted by law. The parties specifically intend that the Restrictive Covenants will be construed
as a series of separate and independent covenants for each restrictive action and for each distinct geographic area contained within the
stated territory. Seller’s representations, warranties, covenants, duties, obligations and
agreements in this Agreement are the joint and several representations, warranties, covenants, duties, obligations and agreements of Seller
and each person or entity included in the definition of “Seller” in the Preamble. Buyer may freely assign its
rights and duties under this Agreement by providing Seller written notice. Sections 13 and 14 of the APA are incorporated herein by this
reference, mutatis mutandis.


 


IN WITNESS WHEREOF
the parties hereto executed and delivered this Agreement as of the date in the Preamble above.


 


	Tom Peacock Nissan/Cadillac, Inc., a Texas corporation, as a Seller	 	[●], a [●], as Buyer
	 	 	 	 	 
	By:	 	 	By:	 
	 	David Peacock, President	 	 	Name & Title:
	 	 	 
	 	 	 
	David Peacock, individually, as a Seller	 	 
	 	 	 
	 	 	 
	Aldo B. Paret, individually, as a Seller	 	 



 




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ESCROW RECEIPT


 


Tom Peacock Nissan and Tom Peacock Cadillac
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 July __, 2021;
	 	 	 
	☐	B.	Earnest Money in the amount of $1,000,000 on July __, 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 July
__, 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.


 


 


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