exv10w7



 





EXHIBIT 10.7




	 	 	 
	 

	 	Employee’s Copy
	

	 	Partnership’s Copy







CAPITAL AUTOMOTIVE L.P.

Employment Agreement




To Lisa M. Clements:




     This Agreement establishes the terms of your employment with Capital
Automotive L.P., a Delaware limited partnership (the “Partnership”). It
replaces your existing employment agreement with the Partnership executed on
October 15, 2003 and any prior employment agreement or change of control
agreement with Capital Automotive REIT, a Maryland real estate investment trust
(the “Company”), or the Partnership. You remain an employee of the Company,
but your primary responsibility is as an employee of the Partnership.



	 	 	 	 	 
	Employment and Duties	 	You and the Partnership agree to your employment with the
Partnership and to your services as Chief Accounting Officer on
the terms contained herein. In such position, you will report
directly to the Company’s Chief Financial Officer. You agree to
perform whatever duties the Partnership may assign you from time
to time, consistent with your position as an executive officer.
During your employment, you agree to devote your full business
time, attention, and energies to performing those duties (except
as the Partnership otherwise agrees from time to time). You
agree to faithfully serve the Partnership, to conform to and
comply with the lawful and good faith directions and
instructions given you by the Partnership, and to use your best
efforts to promote and serve the interests of the Partnership.
You agree to comply with the non-competition, secrecy, and other
provisions of Exhibit A to this Agreement.
	 
	 	 	 	 
	Term

	 	 	 	Your employment under this Agreement began as of October 15,
2003 (the “Effective Date”) and ends on January 1, 2007, unless
it is terminated sooner under this Agreement.
	 
	 	 	 	 
	

	 	 	 	The period running from the Effective Date to the date that the
Agreement terminates as set forth in the preceding sentence is
the “Term.”
	 
	 	 	 	 
	 

	 	 	 	Termination or expiration of this Agreement ends your employment
but does not end your obligation to comply with Exhibit A.
	Compensation	 	 
	 
	 	 	 	 
	

	 	Salary and Bonus
	 	The Partnership (or, in its discretion, the Company) paid you an
annual salary (the “Salary”) for 2003 at the rate of not less
than $116,800 in accordance with its payroll practices. Your
target bonus for calendar year 2003 was $68,000. Each calendar
year thereafter while you are employed under this Agreement, the
Partnership or its Compensation Committee will review your
Salary and target bonus and consider you for increases from the
Partnership.
	 
	 	 	 	 
	

	 	Employee Benefits
	 	While you are employed under this Agreement, the Partnership
will provide you with the same benefits, including medical
insurance coverage, as the Partnership makes generally available
from time to time to the Partnership’s employees, as those
benefits are amended or terminated from time to time. Your
participation in the Partnership’s benefit plans will be subject
to the terms of the applicable plan documents and the
Partnership’s generally applied policies, and the Partnership in
its sole discretion may from time to time adopt, modify,
interpret, or discontinue such plans or policies.







 









 






	 	 	 
	Place of Employment

	 	Your principal place of employment will be at the Partnership’s
headquarters in the Washington metropolitan area (or such other
offices as the Partnership may establish from time to time and
to which it assigns you in its sole discretion). You understand
and agree that you must travel from time to time for business
reasons.
	 
	 	 
	Indemnification

	 	The Partnership will indemnify you to the fullest extent
authorized by law if you are made a party to any action, suit,
or proceeding, whether criminal, civil, administrative, or
investigative, because you are or were a manager, officer, or
employee of the Partnership or serve or served any other entity
as a director, officer, or employee at the Partnership’s
request; provided, however, that you must repay the Partnership
for any indemnification if the final determination of an
arbitrator or a court of competent jurisdiction declares, after
the expiration of the time within which judicial review (if
permitted) of such determination may be perfected, that
indemnification by the Partnership is not permissible under
applicable law.
	 
	 	 
	Expenses

	 	The Partnership will reimburse you for reasonable and necessary
travel and other business-related expenses you incur for the
Partnership in performing your duties under this Agreement. You
must itemize and substantiate all requests for reimbursements.
You must submit requests for reimbursement in accordance with
the policies and practices of the Partnership and within 60 days
after incurring the expense.
	 
	 	 
	No Other Employment

	 	For so long as you are employed by the Partnership, you agree
that you will not, directly or indirectly, provide services to
any person or organization for which you receive compensation or
otherwise engage in activities that would conflict or interfere
significantly with the faithful performance of your duties to
the Partnership without the Partnership’s prior written consent.
(This prohibition excludes any work performed at the
Partnership’s direction including any work for the Company.)
You may manage your personal investments, as long as the
management takes only minimal amounts of time and is consistent
with the provisions of the No Competition Section in Exhibit A
and is otherwise consistent with the policies and practices of
the Partnership.
	 
	 	 
	

	 	You represent to the Partnership that you are not subject to any
agreement, commitment, or policy of any third party that would
prevent you from entering into or performing your duties under
this Agreement, and you agree that you will not enter into any
agreement or commitment or agree to any policy that would
prevent or hinder your performance of duties and obligations
under this Agreement, including Exhibit A.
	 
	 	 
	No Conflicts of Interest

	 	You confirm that you have fully disclosed to the Partnership and
the Company, to the best of your knowledge, all circumstances
under which you, your spouse, and your relatives (including
their spouses, children, and relatives) have or may have a
conflict of interest with the Company or the Partnership. You
further agree to fully disclose to the Partnership any such
circumstances that might arise during the Term. You agree to
fully comply with the Partnership’s policy and practices
relating to conflicts of interest.
	 
	 	 
	No Payments to Governmental
Officials

	 	You will neither pay nor permit payment of any remuneration to
or on behalf of any governmental official other than payments
required or permitted by applicable law.







2









 






	 	 	 	 	 	 	 
	Termination	 	Subject to the provisions of this section, the Partnership may
terminate your employment, or you may resign, except that, if
you voluntarily resign, you must provide the Partnership with 90
days’ prior written notice (unless the Partnership has
previously waived such notice in writing or authorized a shorter
notice period).
	 
	 	 	 	 	 	 
	 	 	For Cause	 	The Partnership may terminate your employment for “Cause” if you:
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	(i) engage in dishonesty that relates materially to the
performance of services or any obligations under this Agreement,
including Exhibit A;
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	(ii) are convicted of, or plead guilty or no contest to, any
misdemeanor (other than for minor infractions) involving fraud,
breach of trust, misappropriation, or other similar activity or
any felony;
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	(iii) perform your duties under this Agreement in a grossly
negligent manner; or
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	(iv) willfully breach this Agreement, including Exhibit A, in a
manner materially injurious to the Partnership. An act or
omission is only “willful” if you acted in bad faith or without
any reasonable belief that the action or omission was in the
interests of the Partnership and consistent with your duties and
obligations under this Agreement.
	 
	 	 	 	 	 	 
	 	 	 	 	Your termination for Cause under (i) and (ii) will be effective
immediately upon the Partnership’s mailing or transmission of
such notice. Before terminating your employment for Cause under
(iii) or (iv), the Partnership will specify in writing to you
the nature of the act, omission, refusal, or failure that it
deems to constitute Cause. The Partnership will give you the
opportunity to correct the situation (and thus avoid termination
for Cause under (iii) or (iv)). You must complete the
correction within a reasonable period of time after the written
notice to you, and the Partnership agrees to provide you no less
than 15 days for such correction.
	 
	 	 	 	 	 	 
	 	 	Without Cause	 	Subject to the provisions below under Payments on Termination,
the Partnership may terminate your employment under this
Agreement before the end of the Term without Cause.
	 
	 	 	 	 	 	 
	 	 	Good Reason	 	You may resign for Good Reason with 45 days’ advance written
notice as provided below. “Good Reason” means the occurrence,
without your written consent, of any of the following
circumstances:
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	the Partnership’s failure to perform or observe any of the
material terms or provisions of this Agreement,
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	the assignment to you of any duties inconsistent with, or any
substantial diminution in, your employment status or
responsibilities as in effect on the date of this Agreement,
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	the Partnership’s relocation of its headquarters to a location
that would increase your commuting distance by more than 50
miles,








3










 





	 	 	 
	

	 	based on your residence when this Agreement is executed,
or

	 
	 	 
	

	 	a Change of Control, consisting of any one or more of
the
following events:

	 
	 	 
	

	 	 a person, entity, or group (other than the Company,
the
Partnership, any subsidiary of either, any Company Group benefit
plan, or any underwriter temporarily holding securities for an
offering of such securities) acquires ownership of more than 40%
of the undiluted total voting power of the Company’s
then-outstanding securities eligible to vote to elect members of
the Board of Trustees (“Board”) (“Company Voting Securities”);

	 
	 	 
	

	 	consummation of a merger or consolidation of the Company
into
any other entity—unless the holders of the Company Voting
Securities outstanding immediately before such consummation,
together with any trustee or other fiduciary holding securities
under a Company Group benefit plan, hold securities that
represent immediately after such merger or consolidation more
than 60% of the combined voting power of the then outstanding
voting securities of either the Company or the other surviving
entity or its parent; or

	 
	 	 
	

	 	the stockholders of the Company approve (i) a
plan of complete
liquidation or dissolution of the Company or (ii) an agreement
for the Company’s sale or disposition of all or substantially
all the Company’s assets, and such liquidation, dissolution,
sale, or disposition is consummated.

	 
	 	 
	

	 	Even if other tests are met, a Change of Control has not
occurred under any circumstance in which the Company files for
bankruptcy protection or is reorganized following a bankruptcy
filing.
	 
	 	 
	

	 	You must give notice to the Partnership of your intention to
resign for Good Reason within 30 days after the occurrence of
the condition or event (within 24 months if the condition or
event is a Change of Control) that you assert entitles you to
resign for Good Reason. In that notice, you must specify the
condition or event that you consider provides you with Good
Reason and (except if the condition or event is a Change of
Control) must give the Partnership an opportunity to cure the
condition or event within 30 days after your notice. If the
Partnership fails to cure the condition, your resignation will
be effective on the 45th day after your notice (unless the Board
has previously waived such notice period in writing or agreed to
a shorter notice period).
	 
	 	 
	

	 	You will not be treated as resigning for Good Reason if the
Partnership had Cause to terminate your employment as of the
date of your notice of resignation.
	 
	 	 
	Disability

	 	If you become “disabled” (as defined below), the Partnership may
terminate your employment. If the Partnership terminates your
employment because you become disabled or employment terminates
because of your death, any unvested restricted shares and any
phantom shares previously granted to you shall become Pro Rata
Vested (as defined below). You are “disabled” if you are unable,
despite whatever reasonable







4








 






	 	 	 
	

	 	accommodations the law requires, to
render services to the Partnership for more than 90 consecutive
days because of physical or mental disability, incapacity, or
illness. You are also disabled if you are deemed to be disabled
within the meaning of the Partnership’s long-term disability
policy as then in effect.
	 
	 	 
	Death

	 	If you die during the Term, the Term will end as of the date of
your death.
	 
	 	 
	Payments on

Termination

	 	If the Partnership terminates your employment for or without
Cause or because of disability or death or you resign, the
Partnership will pay you any unpaid portion of your Salary
pro-rated through the date of actual termination and any annual
bonuses already determined by such date but not yet paid,
reimburse any substantiated but unreimbursed business expenses,
pay any accrued and unused vacation time (to the extent
consistent with the Partnership’s policies), and provide such
other benefits as applicable laws or the terms of the benefits
require. Except to the extent the law requires otherwise or as
provided in the Vesting and Other Benefits section below or in
your option agreement, restricted share agreement or phantom
share agreement(s), neither you nor your beneficiary or estate
will have any rights or claims under this Agreement or otherwise
to receive severance or any other compensation, or to
participate in any other plan, arrangement, or benefit, after
such termination.
	 
	 	 
	Vesting and
Other Benefits
on Termination
or Change of
Control

	 	In addition to the foregoing payments, if a Change of Control
occurs, the Partnership terminates your employment without
Cause, or you resign for Good Reason before the end of the Term:














	 	 	 	 
	

	I. 	 	 all of the stock options and restricted shares held by you
before your termination of employment or the Change of Control
(whichever is applicable) will become fully vested; and
	 
	 	 	 
	

	II. 	 	 all of the phantom shares credited to you before your
termination of employment or the Change of Control (whichever is
applicable) shall be deemed to have been credited for three (3)
years for purposes of Section 6.3 of the Capital Automotive
Group Phantom Share Purchase Program; and
	 
	 	 	 
	

	III. 	 	 (a) in the case of termination without Cause or resignation
for Good Reason, and provided that you have not previously
received any benefit under the following paragraph III(b), the
Partnership will pay you an amount equal to your Salary, as then
in effect, for 24 months in a single lump sum as soon as
practicable but in any event no more than 90 days after
termination; or
	 
	 	 	 
	

	 	 	(b) in the case of a Change of Control, the Partnership will
pay you an amount equal to 3 times the sum of your annual
Salary, as then in effect, plus your most recently established
target bonus, in a single lump sum as soon as practicable but in
any event no more than 10 days after the Change of Control; and
	 
	 	 	 
	

	IV. 	 	 the Partnership will pay the premium cost for you to receive
any group health coverage the Partnership must offer you under
Section 4980B of the Internal Revenue





5








 






	 	 	 	 
	

	 	 	Code of 1986 (the “Code”) for one (1) year; and
	 
	 	 	 
	

	V. 	 	 the Partnership will pay you, at the time the Partnership
would otherwise pay your annual bonus, your pro rata share of
the bonus for the year of your termination (or Change of
Control), where the pro rata factor is based on days elapsed in
such year until the date of termination (or Change of Control)
over 365, less any portion of the bonus for such year already
paid.











	 	 	 
	

	 	You are not required to mitigate amounts payable under the
Vesting and Other Benefits paragraphs by seeking other
employment or otherwise; however, of the foregoing benefits, an
amount equal to two hundred percent of your annual Salary is
being provided as consideration for your compliance with the
requirements of Exhibit A. Consequently, you agree to return
such amount if you fail to comply with Exhibit A.
	 
	 	 
	

	 	Expiration of this Agreement, whether because of notice of
non-renewal or otherwise, does not constitute termination
without Cause nor is it grounds for resignation with Good
Reason.
	 
	 	 
	

	 	In addition to the foregoing, if this Employment Agreement is
not renewed by the Partnership on or before January 1,
2007, and
the Partnership at any time thereafter terminates your
employment without Cause or you resign for Good Reason, (i) any
unvested restricted shares granted prior to or during the Term
and held by you before your termination of employment will
become vested to the extent of the ratio of the number of days
that you have been employed by the Partnership or the Company
since the date they were granted and the total number of days of
employment otherwise required for them to fully vest (determined
separately for each grant), and (ii) all of the phantom shares
granted prior to or during the Term and credited to you before
your termination of employment will be deemed to have been
credited for three (3) years for the purposes of Section 6.3 of
the Capital Automotive Group Phantom Share Purchase Program to
the extent of the ratio of the number of days that you have been
employed by the Partnership or the Company since the date they
were granted and the three (3) years of employment otherwise
required for them to fully vest for purposes of that section
(determined separately for each grant). The pro rata vesting
and crediting referenced in (i) and (ii) in the foregoing
sentence are referred to herein as “Pro Rata Vested.”
	 
	 	 
	Internal Revenue
Code 
Section
280G

	 	If you become entitled to any benefits under this Agreement (the
“Agreement Benefits”), and any of those benefits will be subject
to the tax (the “Excise Tax”) imposed by Section 4999 of the
Code (or any similar tax that may hereafter be imposed), the
Partnership will pay to you an additional amount (the “Gross-up
Payment”) such that the net amount retained by you, after
deduction of any Excise Tax on the total benefits received by
you and any federal, state and local income tax and Excise Tax
on the Gross-up Payment provided for by this section, but before
deduction for any federal, state or local income tax on the
Agreement Benefits, will be equal to the total benefits that you
would have received had the Excise Tax not been applicable and
the Gross-up Payment not paid. Notwithstanding the foregoing,
you and the Partnership agree to in good faith take any
reasonable actions, at no cost to either party, to minimize or
avoid application of the Excise Tax.







6








 






	 	 	 
	Assignment

	 	The Partnership may assign or otherwise transfer this Agreement
and any and all of its rights, duties, obligations, or interests
under it to:
	 
	 	 
	

	 	the Company or any of the affiliates or subsidiaries
of the
Company or

	 
	 	 
	

	 	the Partnership or to any business entity that at any
time by
merger, consolidation, or otherwise acquires all or
substantially all of the Company’s stock or assets or the
partnership units or assets of the Partnership or to which the
Company or the Partnership transfers all or substantially all of
its assets.

	 
	 	 
	

	 	Upon such assignment or transfer, any such business entity will
be deemed to be substituted for the Partnership for all
purposes. Assignment or transfer does not constitute
termination without Cause nor is it grounds for resignation with
Good Reason absent the occurrence of a Change of Control. This
Agreement binds the Partnership, its successors or assigns, and
your heirs and the personal representatives of your estate.
Without the Partnership’s prior written consent, you may not
assign or delegate
this Agreement or any or all rights, duties, obligations, or
interests under it.
	 
	 	 
	Severability

	 	If the final determination of an arbitrator or a court of
competent jurisdiction declares, after the expiration of the
time within which judicial review (if permitted) of such
determination may be perfected, that any term or provision of
this Agreement, including any provision of Exhibit A, is invalid
or unenforceable, the remaining terms and provisions will be
unimpaired, and the invalid or unenforceable term or provision
will be deemed replaced by a term or provision that is valid and
enforceable and that comes closest to expressing the intention
of the invalid or unenforceable term or provision.
	 
	 	 
	Amendment; Waiver

	 	Neither you nor the Partnership may modify, amend, or waive the
terms of this Agreement other than by a written instrument
signed by you and a duly authorized representative of the
General Partner of the Partnership. Either party’s waiver of
the other party’s compliance with any provision of this
Agreement is not a waiver of any other provision of this
Agreement or of any subsequent breach by such party of a
provision of this Agreement.
	 
	 	 
	Withholding

	 	The Partnership will reduce its compensatory payments to you for
withholding and FICA taxes, and any other withholdings and
contributions required by law.
	 
	 	 
	Third Party Beneficiary

	 	You understand and agree that the Company is a third party
beneficiary of this Agreement.
	 
	 	 
	Governing Law

	 	The laws of the Commonwealth of Virginia (other than its
conflict of laws provisions) govern this Agreement.
	 
	 	 
	Notices

	 	Notices must be given in writing by personal delivery, by
certified mail, return receipt requested, by telecopy, or by
overnight delivery. You should send or deliver your notices to
the Partnership’s headquarters. The Partnership will send or
deliver any notice given to you at your address as reflected on
the Partnership’s personnel records. You and the Partnership
may change the address for notice by like notice to the others.
You and the Partnership agree that notice is received on the
date it is personally delivered, the date it is received by
certified mail, the date of








7









 





	 	 	 
	

	 	guaranteed delivery by the overnight
service, or the date the fax machine confirms receipt.
	 
	 	 
	Payments and Benefits Upon
Death

	 	If, at the time of your death, the Partnership owes you any
payments or other benefits as a result of termination of your
employment, resignation, a Change of Control, or your
Disability, all of those payments and benefits shall become due
and payable to your estate to the same extent, at the same
times, and subject to the same terms as they would have been due
and payable to you but for your death. Further, any payments or
other benefits that become due on account of your death shall be
paid to your estate.
	 
	 	 
	Legal Fees

	 	If a claim is asserted for breach of any provision of this
Agreement, you will be entitled to recover your reasonable
attorney’s fees and expenses if you prevail.
	 
	 	 
	Arbitration

	 	Any disputes between the Partnership and you in any way
concerning your employment, the termination of your employment,
this Agreement or its enforcement shall be submitted at the
initiative of either party to binding arbitration in the
Washington Metropolitan area before a single arbitrator pursuant
to the Rules for Resolution of Employment Disputes of the
American Arbitration Association, or its successor, then in
effect. The decision of the arbitrator shall be rendered in
writing, shall be final, and may be entered as a judgment in any
court in the Commonwealth of Virginia. The Partnership and you
each irrevocably consents to the jurisdiction of the federal and
state courts located in Virginia for this purpose. Each party
shall be responsible for its or his own costs incurred in such
arbitration and in enforcing any arbitration award, including
attorney’s fees, provided, however, that you will be entitled to
recover your reasonable attorney’s fees and expenses if you
prevail. Notwithstanding the foregoing, the Partnership, in its
sole discretion, may bring an action in any court of competent
jurisdiction to seek injunctive relief and such other relief as
it shall elect to enforce your obligations in Exhibit A.
	 
	 	 
	Superseding Effect

	 	This Agreement supersedes any prior oral or written employment
or severance agreements between you and the Company or the
Partnership. This Agreement supersedes all prior or
contemporaneous negotiations, commitments, agreements, and
writings with respect to the subject matter of this Agreement.
All such other negotiations, commitments, agreements, and
writings will have no further force or effect; and the parties
to any such other negotiation, commitment, agreement, or writing
will have no further rights or obligations thereunder.







 8




 









 








If you accept the terms of this Agreement, please sign in the space indicated
below. We encourage you to consult with any advisors of your choosing.



	 	 	 	 	 
	 	 	CAPITAL AUTOMOTIVE L.P.
	 
	 	 	 	 
	 	 	General Partner:
	 
	 	 	 	 
	 	 	CAPITAL AUTOMOTIVE REIT, a
 Maryland
real estate investment trust
	 
	 	 	 	 
	

	 	By:
	 	/s/ Thomas D. Eckert
	

	 	 	 	
 
	

	 	 	 	Thomas D. Eckert
	 
	 	 	 	 
	 	 	Its: President & CEO
	 
	 	 	 	 
	 	 	SEEN & AGREED TO:
	 
	 	 	 	 
	 	 	CAPITAL AUTOMOTIVE REIT
	 
	 	 	 	 
	

	 	By:
	 	/s/ Thomas D. Eckert
	

	 	 	 	
 
	

	 	 	 	Thomas D. Eckert
	 
	 	 	 	 
	 	 	Its: President & CEO







I accept and agree to the terms of employment set forth in this Agreement:



/s/ Lisa M. Clements



Lisa M. Clements

Dated: January 22, 2004




 9





 









 








Exhibit A




	 	 	 
	No Competition

	 	In consideration of your employment by the Partnership and
salary and benefits under this Agreement, during the term
of your employment, and except as set forth below, until
the date two years after your employment with the Company,
the Partnership, or their successors, assigns, affiliates,
or subsidiaries (collectively, the “Company Group”) ends
for any reason (the “Restricted Period”), you agree as
follows:
	 
	 	 
	

	 	The Company is a real estate investment trust formed to
acquire real properties owned by automobile dealerships and
other automotive-related businesses and lease the
properties to such businesses. You will not, directly or
indirectly, promote, be employed by, lend money to, invest
in, or engage in any Competing Business within the Market
Area. That prohibition includes, but is not limited to,
acting, either singly or jointly or as agent for, or as an
employee of or consultant to, any one or more persons,
firms, entities, or corporations directly or indirectly (as
a director, independent contractor, representative,
consultant, member, or otherwise) that constitutes such a
Competing Business. You may own up to 3% of the
outstanding capital stock of any corporation that is
actively publicly traded without violating this No
Competition covenant. This covenant does not preclude you
from being employed by any non-public automobile dealership
or dealership group or other non-public automotive-related
business that is a lessee or prospective lessee of
properties the Company or the Partnership holds or is
actively considering acquiring.
	 
	 	 
	

	 	If, during the Restricted Period, you are offered and want
to accept employment with a business that engages in
activities similar to the Company’s or the Partnership’s,
you will inform the Partnership in writing of the identity
of the business, your proposed duties with that business,
and the proposed starting date of that employment. You
will also inform that business of the terms of this Exhibit
A. The Partnership will analyze the proposed employment
and make a good faith determination as to whether it would
threaten the Partnership’s legitimate competitive
interests. If the Partnership determines that the proposed
employment would not pose an unacceptable threat to its
interests, the Partnership will notify you that it does not
object to the employment.
	 
	 	 
	

	 	You acknowledge that, during the portion of the Restricted
Period that follows your employment, you may engage in any
business activity or gainful employment of any type and in
any place except as described above. You acknowledge that
you will be reasonably able to earn a livelihood without
violating the terms of this Agreement.


You understand and agree that the rights and obligations
set forth in this No Competition Section will continue for
two years from the date of termination of this Agreement
and your employment with the Partnership or the Company
Group.







 10





 









 








	Definitions 	 	 	 	 	 	 
		 	Competing

Business	 	Competing Business means any service or
financial product of any person or
organization other than the Company Group, in
existence or then under development, that
competes or could potentially compete,
directly or indirectly, with any service or
financial product of the Company Group upon
which or with which you have worked for the
Partnership or the Company Group or about
which you acquire knowledge while working for
the Partnership or the Company Group.
Competing Business includes any enterprise
engaged in the formation or operation of real
estate investment trusts or other entities
that invest primarily in automobile
dealership or automotive-related properties
or provide real estate financing to
automobile dealerships or automotive-related
businesses, provided that Competing Business
excludes banks, finance companies, and other
financial institutions that are not primarily
involved in real estate financing so long as
your employment or other involvement is also
not primarily involved in real estate
financing. Competing Business also includes
any public company the primary business of
which is to retail and/or service motor
vehicles. Competing Business excludes real
estate investment trusts and similar entities
that do not engage in activities related to
automotive dealerships or automotive-related
businesses.
	 
	 	 	 	 	 	 
	 	 	Market Area	 	The Market Area consists of the United States.
	 
	 	 	 	 	 	 
	No Interference;

No Solicitation	 	 	 	During the Restricted Period, you agree that
you will not, directly or indirectly, whether
for yourself or for any other individual or
entity (other than the Partnership or its
affiliates or subsidiaries), intentionally
solicit or endeavor to entice away from the
Company Group:
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	any person whom the Company Group employs
(other than as your personal secretary) or
otherwise engages to perform services as a
consultant or sales representatives; or
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	any person or entity who is, or was, within
the Restricted Period, a contractor or
subcontractor of the Company Group known to
you or a lessee or prospective lessee of
properties the Company Group holds or is
actively considering acquiring.
	 
	 	 	 	 	 	 
	Secrecy	 
	 	 	Preserving

Company

Confidences	 	Your employment with the Partnership under
and, if applicable, before this Agreement has
given and will give you Confidential
Information (as defined below). You
acknowledge and agree that using, disclosing,
or publishing any Confidential Information in
an unauthorized or improper manner could
cause the Partnership or Company Group
substantial loss and damages that could not
be readily calculated and for which no remedy
at law would be adequate. Accordingly, you
agree with the Partnership that you will not
at any time, except in performing your
employment duties to the Partnership or the
Company Group under this Agreement (or with
the Partnership’s prior written consent),
directly or indirectly, use, disclose, or
publish, or permit others not so authorized
to use, disclose, or publish any Confidential
Information that you may learn or become
aware of, or may have learned or become aware
of, because of your prior or continuing
employment, ownership, or association with
the Partnership or







 11





 










 





	 	 	 	 	 
	

	 	 	 	the Company Group or any of their
predecessors, or use any such
information in a manner detrimental
to the interests of the Partnership
or the Company Group.
	 
	 	 	 	 
	

	 	Preserving Others’
Confidences
	 	You agree not to use in working for
the Company Group and not to
disclose to the Company Group any
trade secrets or other information
you do not have the right to use or
disclose and that the Company Group
is not free to use without liability
of any kind. You agree to promptly
inform the Partnership in writing of
any patents, copyrights, trademarks,
or other proprietary rights known to
you that the Partnership or the
Company Group might violate because
of information you provide.
	 
	 	 	 	 
	

	 	Confidential Information
	 	“Confidential Information” includes,
without limitation, information the
Partnership or the Company Group has
not previously disclosed to the
public or to the trade with respect
to the Partnership’s or the Company
Group’s present or future business,
operations, services, products,
research, inventions, discoveries,
drawings, designs, plans, processes,
models, technical information,
facilities, methods, trade secrets,
copyrights, software, source code,
systems, patents, procedures,
manuals, specifications, any other
intellectual property, confidential
reports, price lists, pricing
formulas, customer lists, financial
information (including the revenues,
costs, or profits associated with
any of the Partnership’s or the
Company Group’s products or
services), business plans, lease
structure, projections, prospects,
opportunities or strategies,
acquisitions or mergers, advertising
or promotions, personnel matters,
legal matters, any other
confidential and proprietary
information, and any other
information not generally known
outside the Partnership or the
Company Group that may be of value
to the Partnership or the Company
Group but excludes any information
already properly in the public
domain. “Confidential Information”
also includes confidential and
proprietary information and trade
secrets that third parties entrust
to the Partnership or the Company
Group in confidence.
	 
	 	 	 	 
	

	 	 	 	You understand and agree that the
rights and obligations set forth in
this Secrecy Section will continue
indefinitely and will survive
termination of this Agreement and
your employment with the Partnership
or the Company Group.
	 
	 	 	 	 
	Exclusive Property	 	You confirm that all Confidential
Information is and must remain the
exclusive property of the
Partnership or the relevant member
of the Company Group. All business
records, business papers, and
business documents you keep or make
in the course of your employment by
the Partnership relating to the
Partnership or any member of the
Company Group must be and remain the
property of the Partnership or the
relevant member of the Company
Group. Upon the termination of this
Agreement with the Partnership or
upon the Partnership’s request at
any time, you must promptly deliver
to the Partnership or to the
relevant member of the Company Group
any Confidential Information or
other materials (written or
otherwise) not available to the
public or made available to the
public in a manner you know or
reasonably should recognize the
Partnership did not authorize, and
any copies, excerpts, summaries,
compilations, records and documents
you made or that came into your
possession during your employment.
You agree that you will not, without
the Partnership’s consent, retain
copies, excerpts, summaries or
compilations of the foregoing
information and materials. You
understand and agree that the







12









 






	 	 	 	 	 
	 	 	rights and obligations set forth in
this Exclusive Property Section will
continue indefinitely and will
survive termination of this
Agreement and your employment with
the Company Group.
	 
	 	 	 	 
	Maximum Limits	 	If any of the provisions of Exhibit
A are ever deemed to exceed the
time, geographic area, or activity
limitations the law permits, you and
the Partnership agree to reduce the
limitations to the maximum
permissible limitation, and you and
the Partnership authorize a court or
arbitrator having jurisdiction to
reform the provisions to the maximum
time, geographic area, and activity
limitations the law permits.
	 
	 	 	 	 
	Injunctive Relief	 	Without limiting the remedies
available to the Partnership, you
acknowledge:
	 
	 	 	 	 
	 	 	 	 	that a breach of any of the
covenants in this Exhibit A may
result in material irreparable
injury to the Partnership and
Company Group for which there is no
adequate remedy at law; and
	 
	 	 	 	 
	 	 	 	 	that it will not be possible to
measure damages for such injuries
precisely.
	 
	 	 	 	 
	 	 	You agree that, if there is a breach
or threatened breach, the
Partnership or any member of the
Company Group will be entitled to
obtain a temporary restraining order
and/or a preliminary or permanent
injunction restraining you from
engaging in activities prohibited by
any provisions of this Exhibit A or
such other relief as may be required
to specifically enforce any of the
covenants in this Exhibit A.








13