Document:

QuickLinks
 -- Click here to rapidly navigate through this document
  

 
 

EXHIBIT 10.26    
  

DESIGN-BUILD AGREEMENT  

        THIS DESIGN-BUILD AGREEMENT ("Agreement") is entered into this    day of            , 2002 by and between
WORKSTAGE LLC, a Delaware limited
liability company, with an address of 4700 60th Street, Grand Rapids, Michigan 49512 ("Workstage"), and PayPal, Inc. a Delaware corporation, with an address of P.O. Box 45950, Omaha,
Nebraska 68145 and an office at 303 Bryant Street, Mountain View, CA 94041 ("Owner"). 

BACKGROUND INFORMATION:  

         A.    Workstage creates buildings for its customers by integrating and assembling pre-manufactured building components and providing
on-site construction services. 

        B.    Owner
wishes to purchase a Workstage building. 

Owner
hires Workstage, and Workstage agrees to work for Owner as an independent contractor, on the following terms and conditions: 

        1.    GENERAL PROVISIONS    

        1.1  The
Owner and Workstage agree to proceed on the basis of trust, good faith and fair dealing. Workstage represents and warrants that it has the expertise to carry out the
Work (as hereinafter
defined) and it agrees to procure the architectural and engineering services set forth herein and to furnish construction and administration of the Work. 

        1.2  This
Agreement is solely for the benefit of the parties hereto. This Agreement represents the entire agreement between the parties and supersedes all prior negotiations,
representations or agreements, either written or oral. The parties hereto agree to look solely to each other with respect to the performance of the Agreement. This Agreement may be amended only by
written instrument signed by both parties. 

        1.3  The
following shall be a condition precedent to this Agreement: Owner's purchase of approximately 22.38 acres of land within Sarpy County, Nebraska pursuant to that
certain Purchase and Sale Agreement by and between Owner and R.S. Land, Inc., a Nebraska corporation. 

        2.    DEFINITIONS    

        2.1  The
"Project" is the erection for Owner of a Workstage building as more specifically described in attached  Exhibit A. 

        2.2  The
"Work" consists of all of the Design Services (hereinafter defined) in accordance with Sections 3.1 and 3.2 below and the construction services in accordance with
Section 3.3 below, including, but not limited to, all of the labor, materials and equipment necessary to complete the Project in accordance with the Contract Documents (hereinafter defined),
whether completed or partially completed. Workstage shall be responsible for procuring the design and the construction of the Work consistent with the Owner's Program (hereinafter defined). Workstage
shall exercise reasonable skill and judgment in the performance of the Work. 

        2.3  The
"Site" is the place where the Project is located, as indicated on the Site description attached as Exhibit B. 

        2.4  The
"Contract Documents" consist of this Agreement (including all Exhibits and Schedules), any amendments thereto, all Design and Construction Documents whether in
existence at the time this Agreement is entered into or whether developed after the execution thereof and any Change Orders. It is the intent of the Owner and Workstage that the Contract Documents
include all items necessary for proper execution and completion of the Work. The Contract Documents are complementary, and what is required by one shall be as binding as if required by 

 1 of 23

 

all; performance by Workstage shall be required only to the extent consistent with and reasonably inferable from the Contract Documents as being necessary to produce the intended results. Words that
have well-known technical or construction industry meanings are used in the Contract Documents in accordance with such recognized meanings, unless otherwise defined herein. 

        2.5  Owner
has designated the person below as its designated representative for general management of this Agreement. Any reference to Owner herein is a reference to the
person named below, but only in such person's capacity as a representative for Owner. 

Name:
Ryan Downs

Address: 11128 John Galt Boulevard, Omaha, NE 68137

Phone: (402) 935-2195

Fax: (402) 593-9097

E-mail: rdowns@paypal.com 

        For
the purpose of notices, in Section 20.4, copies shall be sent to: 

Rebecca
L. Eisenberg

PayPal, Inc.

303 Bryant Street

Mountain View, CA 94041

Phone: (650) 864-8102

Fax: (650) 864-8225

Email: reisenberg@paypal.com 

        2.6  Workstage
has designated the person below as its designated representative for general management of this Agreement. Any reference to Workstage herein is a reference to
the person named below, but only in such person's capacity as a representative for Workstage. 

Name:
Donald M. Slaght

Address: 200 Campus Drive, Suite 200, Florham Park, NJ 07932

Phone: (973) 301-8520

Fax: (973) 966-8828

E-mail: dslaght@workstage.com 

        For
the purpose of notices, in Section 20.4, copies shall be sent to: 

Donald
M. Slaght

Workstage LLC

200 Campus Drive, Suite 200

Florham Park, NJ 07932

Phone: (973) 391-9500

Fax: (973) 966-8828

E-mail: dslaght@workstage.com 

        3.    WORKSTAGE SERVICES    

        3.1  Phase I Services—Development of Owner's Program

        3.1.1  Workstage
shall assist the Owner in the development and preparation of the Owner's Program (hereinafter defined), which shall outline the objectives and
requirements of the Owner with respect to the Project. Such program shall include budget and time criteria, space requirements, special equipment and systems, and Site requirements. 

        3.1.2  Workstage
shall visit the Site, become familiar with the local conditions, and correlate observable conditions with the requirements of the Owner's
Program. 

 2 of 23

 

        3.1.3  Workstage
shall research diligently and review laws and regulations applicable to design and construction of the Project and correlate such laws and
regulations with the Owner's Program requirements. In the performance of this obligation, Workstage shall meet with governmental authorities having or potentially having jurisdiction over the Project
and make all commercially reasonable efforts to ensure that the design of the Project complies with applicable laws, codes, regulations and requirements, including, but not limited to, Title I of
American with Disabilities Act 1990 and any and all fire safety laws, codes, regulations or requirements, including but not limited to all local, state and federal laws, codes, regulations and
requirements. If Workstage experiences any hurdles in acquiring all necessary legal approval, it will notify Owner and at all times keep Owner appraised of any potential challenge or obstacle to full
and complete legal approval and compliance, including obtaining all applicable licenses and permits. 

        3.1.4  In
development of the Owner's Program, Workstage shall ascertain Owner's requirements of the Project and shall verify and review such requirements with
the Owner. Workstage's review shall also provide to the Owner a preliminary evaluation of the Site with regard to access, traffic, drainage, parking, building placement and other considerations
affecting the building, as well as information regarding applicable government laws, regulations and requirements. Workstage shall also propose architectural, civil, structural, mechanical, electrical
and other systems for review by the Owner. 

        3.1.5  Design
services required under this Agreement shall be performed by licensed, independent design professionals. The standard of care for architectural
and engineering services performed under this Agreement shall be the highest degree of care and skill used by design professionals practicing under the same time and locality conditions. Since the
design professional is independent from Workstage, the design professional services shall be procured and the payment shall be made pursuant to separate agreements between Workstage and the design
professional. The design professional for the Project (the "Architect") is: 

Name:
Integrated Architects, Inc.

Address: 4090 Lake Drive

                          Grand Rapids, MI 49546

Phone: 616-574-0220 

        The
contractual obligations of such professional persons or entities are undertaken and performed in the interest of Workstage. Workstage shall be responsible to the Owner for acts and
omissions of Workstage's employees, subcontractors and their agents and employees, and other persons, including the Architect and other design professionals, performing any portion of Workstage's
obligations under this Section 3. 

        3.1.6  Based
upon a review and analysis of the functional and organizational relationships, requirements and objectives for the Project, Workstage shall provide
a written program of the requirements for Owner's approval (the "Owner's Program"). 

        3.2  Phase II Services—Design Services

        3.2.1  Upon
the execution of this Agreement, Workstage shall commence the Work and shall provide a time schedule, which shows the activities of the Owner and
Workstage necessary to meet the Owner's completion requirements as set forth in Section 7 (the "Project Schedule") which is attached hereto as  Exhibit C and incorporated herein by reference.
The Project Schedule should indicate the time (numbers of days) for starting and completing the
various stages of the Work set forth in Section 3.2 and 3.3 and allowing sufficient time for all necessary approvals and inspections as reasonably required under the Contract Documents. 

 3 of 23

 

        3.2.2  Upon
the execution of this Agreement, Workstage shall prepare a budget which shall indicate the total cost of design and construction of the Project and
all available allowances (collectively referred to
as "Project Budget") which is attached hereto as Exhibit D and incorporated herein by reference. The Project Budget shall be prepared by
qualified professionals, cost estimators or contractors retained by and acting in the interest of Workstage. 

        3.2.3  Based
upon Workstage's review and analysis of the Owner approved Owner's Program, Workstage shall submit to Owner, for Owner's approval in accordance
with the Project Schedule, Design Documents consistent with the Owner's Program for the performance of the Work. The "Design Documents" consist of all plans, drawings, specifications and other
conceptualized documents establishing the size, quality and character of the entire Project, its architectural, structural, mechanical and electrical systems, and the materials and such other elements
of the Project as may be appropriate to accurately and completely describe the Owner's Program. 

        3.2.4  One
set of the Design Documents shall be promptly furnished to the Owner. Upon delivery of the Design Documents and the Project Schedule and the Project
Budget, Owner shall timely review such documents for its approval in its sole discretion. 

        3.2.5  Workstage
agrees that it will use commercially reasonable efforts to provide that the design it creates will satisfy the functional requirements of the
Owner as set forth in the Owner's Program. 

        3.3  Phase III Services—Construction Services

        3.3.1  The
construction services to be performed hereunder shall commence as provided on the Project Schedule. 

        3.3.2  Within
ten (10) days after the Commencement Date (hereinafter defined), Workstage shall submit for review and approval by Owner: 

        3.3.2.1  An
updated Project Schedule with any applicable changes made in accordance with Section 3.3.7 below, 

        3.3.2.2  A
preliminary schedule of required submittals and the times for submitting, reviewing and processing each submittal, and 

        3.3.3  A
Schedule of Values in accordance with Section 9.1 below. 

        3.3.4  Workstage
shall submit Construction Documents for review and approval by the Owner. When Workstage submits the Construction Documents, Workstage shall
identify in writing all material changes and deviations that have taken place from the Design Documents or the Contract Documents in existence. "Construction Documents" shall include drawings,
specifications, and other documents and electronic data setting forth in detail the requirements for construction of the Work, and shall: 

        3.3.4.1  be
consistent with the intent of the Owner's Program and the Design Documents; 

        3.3.4.2  provide
information for the use of those in the building trades; and 

        3.3.4.3  include
documents customarily required for regulatory agency approvals. 

        3.3.5  Pursuant
to the terms of this Agreement, Workstage shall provide or cause to be provided and shall pay for design services, construction services,
installation, labor, materials, equipment, tools, construction equipment and machinery, water, heat, utilities, transportation and other facilities and services necessary for proper execution and
completion of the Work as 

 4 of 23

 

provided hereunder, whether temporary or permanent and whether or not incorporated or to be incorporated in the Work. 

        3.3.6  Workstage
shall comply with laws and ordinances legally enacted at the date of execution of the Agreement which govern the proper performance of the
Work. 

        3.3.7  Workstage
shall maintain the Project Schedule in accordance with the Contract Time (hereinafter defined). The Project Schedule shall indicate the dates
for the start and completion of the various stages of the construction, including the dates when information and approvals are required from the Owner. It shall be updated and delivered with each
Payment Request (hereinafter defined) for Owner's acceptance and approval. Subject to Section 7.3 below, Workstage shall adhere to the Project Schedule and any changes made to such will not
change the Contract Time unless mutually agreed to and evidenced by a Change Order. 

        3.3.8  Workstage
shall be responsible for all construction means, methods, techniques, sequences and procedures, and for coordinating all portions of the Work. 

        3.3.8.1  Workstage
shall be responsible for initiating, maintaining and supervising all safety precautions and programs in connection with the Work, including
safety of all persons and property during performance of the Work. This requirement will apply continuously with respect to the Work at the Site and not be limited to normal working hours. 

        3.3.8.2  Workstage
shall comply with all applicable laws, ordinances, rules, regulations and lawful orders of any public authority having jurisdiction for the
safety of persons or property or to protect them from damage, injury or loss in connection with the Work. Workstage shall erect and maintain, as required by law based upon existing conditions and
progress of the Work, all reasonable safeguards for safety and protection including posting danger signs and other warnings against hazards, promulgating safety regulations and notifying owners and
users of adjacent utilities. 

        3.3.8.2.1  Workstage
shall designate a responsible member of its organization at the Site whose duty shall be the prevention of accidents. This person shall
also be the Project Manager (hereinafter defined) unless otherwise designated in writing by Workstage to Owner. 

        3.3.9  The
Contract Price (as hereinafter defined) shall include all sales, consumer, use, employment and similar taxes applicable to the Work. If requested by
Owner, Workstage shall promptly provide Owner copies of all receipts for such taxes paid. 

        3.3.10  Workstage
shall pay royalties and license fees for patented designs, processes or products in connection with the Work. Workstage shall defend suits or
claims for infringement of patent rights and shall hold the Owner harmless from loss on account thereof, but shall not be responsible for such defense or loss when a particular design, process or
product of a particular manufacturer is required by the Owner. However, if Workstage has knowledge that the use of a required design, process or product in connection with the Work is an infringement
of a patent, Workstage shall be responsible for such loss unless such information is promptly furnished to the Owner. 

        3.3.11  Workstage
shall maintain at the Site for the Owner one set of Construction Documents, Change Orders and other modifications, in good order and regularly
updated to record the completed construction. These shall be delivered to the Owner upon final completion of the Project. 

        3.3.12  In
connection with the Work, the Contract Price shall include costs associated with obtaining, on a timely basis, the building permit and other permits
and governmental fees, 

 5 of 23

 

licenses, certificates, approvals and inspections necessary for proper execution and completion of the Project and compliance with laws and regulations that protect the environment, or human health
and safety, as well as with other laws and regulations that may apply to the Project in any matter. 

        3.3.13  Following
Substantial Completion (hereinafter defined), collaborate with Owner to prepare and complete Punchlist Work (hereinafter defined) in
accordance with Section 7.1 below. 

        3.3.14  Workstage
shall deliver all written warranties and equipment manuals with respect to the Work to Owner upon final completion of the Project. 

        3.3.15  Upon
final completion of the Project, Workstage shall produce and deliver to Owner a reproducible record set of "as built" plans and specifications
reflecting significant changes in the Work made during construction and the Project as actually built. 

        3.3.16  The
Site and surrounding area shall be kept free from accumulation of waste materials or rubbish caused by Workstage's operations under this Agreement.
At the completion of the Work, Workstage shall promptly remove from the Site waste materials, rubbish, Workstage's tools, construction equipment, machinery, and surplus materials and leave the Site
and surrounding area in a neat and clean manner. 

        3.3.17  Workstage
shall coordinate with the utility companies to install water mains, sewer mains, telephones, gas mains, power poles, lines transformers, or to
connect utilities to the Project. The expense of delivering such utilities to the site will be paid for by Owner, separate and apart from the terms of this Agreement, on the condition that Workstage
presents to Owner all plans and potential expenses before they are made or committed to by Workstage. 

        3.3.18  Workstage
will be responsible for staffing a field office with the expertise necessary to properly execute the supervision and construction of the
Project. Workstage shall be responsible for providing a competent Project Manager and Superintendent for the duration of the Project (the "Key Personnel"). The Key Personnel will be the
on-Site point of contacts for Workstage and will coordinate construction efforts with the Project Executive and the Owner. The Key Personnel assume all duties and responsibilities for
supervision and scheduling of all facets of construction including those of any subcontractors or suppliers for the Project. The Key Personnel shall be satisfactory to Owner, in its reasonable
opinion, and shall not be removed or replaced, unless the Key Personnel are unable to perform their duties due to illness or injury. In such case, Key Personnel of similar experience and
qualifications shall be substituted. Workstage shall be additionally responsible for providing on the Project labor foremen and workmen skilled in the crafts and trades that they are supervising or
performing. 

        3.3.19  Workstage
shall confine operations at the Site to areas permitted by law, ordinances, permits, and the Contract Documents and shall not unreasonably
encumber the Site with any materials or equipment. 

        3.3.20  In
connection with the Work, Workstage shall at all times be responsible for the conduct and discipline of its employees and to the extent within its
reasonable control any Subcontractor or persons employed by Subcontractors. All workmen must have sufficient knowledge, skills and experience to perform properly the work assigned to them. 

        3.3.21  Workstage
is solely responsible for scheduling and coordinating the performance and furnishing of the Work which will include coordinating of
construction required in connection with construction performed and equipment supplied by Owner. Any construction 

 6 of 23

 

subcontract, sub-agreement, supply or material contract entered into by Workstage shall be for the benefit of the Owner. 

        3.3.22  Workstage
shall provide customary assistance to Owner in the utilization of equipment or systems such as preparation of operation and maintenance
manuals, training personnel for operation and maintenance, and construction during operation. 

        4.    WORKSTAGE RESPONSIBILITIES    

        4.1  Workstage
shall examine and carefully study the Contract Documents and will perform the Work in accordance with the Contract Documents. Workstage represents and warrants
to Owner that all materials and equipment furnished under the Contract will be new and of good quality and that all Work will be of good quality, free from faults and defects and in conformance with
the Contract Documents and applicable laws, ordinances and regulations. All Work not so conforming to these standards may be considered defective. All such defective Work, including substitutions of
materials requiring Owner approval hereunder, but not approved by Owner, shall be corrected by Workstage in accordance with Section 14 hereof. If required by Owner, Workstage shall furnish
satisfactory evidence as to the kind and quality of materials and equipment. 

        4.2  Workstage
shall visit the Site and become familiar with and become satisfied as to the general, local and Site conditions that may affect cost, progress, performance and
furnishing of the Work. 

        4.3  Workstage
agrees that it is familiar with and will use commercially reasonable efforts to comply with all federal, state and local laws and regulations that may affect
cost, progress, performance and furnishing of the Work. If Workstage experiences any hurdles in complying with this Section 4.3, it will notify Owner and at all times keep Owner appraised of
any potential challenge or obstacle to such compliance. 

        4.4  Workstage
represents and warrants that it will carefully study all reports of explorations and tests of subsurface conditions at the Site and all drawings of physical
conditions in or relating to existing surface structures at the Site. 

        4.4.1  Notwithstanding
anything stated in Section 4.4 hereinabove, if conditions encountered at the Site are found, as determined by an independent
engineering investigator, to be (1) subsurface or otherwise concealed physical conditions which differ materially from those indicated in the Contract Documents or as provided for in
Section 5.4 below, or (2) unknown physical conditions of an unusual nature, which differ materially form those ordinarily found to exist and generally recognized as inherent in
construction activities of the character provided for in the Contract Documents, then the Contract Price and Contract Time shall be equitably adjusted by Change Order. 

        4.5  Workstage
shall, in accordance with Section 3.3.14, pass through to Owner all manufacturers' product warranties applicable to components of the Project as listed
on Exhibit E attached hereto, and notwithstanding anything contained herein, Workstage shall have no liability and gives no warranty for any item
covered by a manufacturers' product warranty passed on to Owner. Workstage represents and warrants that all warranties listed on Exhibit E
attached hereto are assignable and shall be assigned to Owner. 

        4.6  Workstage
represents and warrants that exclusive and lien-free title to the Work, materials, and equipment covered by a Payment Request will pass to Owner by
incorporation in construction or upon receipt of payment by Workstage, whichever occurs last. 

 7 of 23

 

        4.7  Workstage
may only make substitutions of materials and/or equipment with consent of the Owner and in accordance with a Change Order. By making requests for
substitutions, Workstage: 

        4.7.1.1  represents
and warrants that Workstage has investigated the proposed substitute product and determined that it is equal or superior to that specified
in the Contract Documents; 

        4.7.1.2  represents
and warrants that Workstage will provide the same warranty for the substitution that Workstage would provide for the item specified in the
Contract Documents; 

        4.7.1.3  certifies
and warrants that cost data presented is complete and includes all related costs, and waives claims for additional costs related to the
substitution which subsequently become apparent, other than those which could not have been reasonably anticipated. 

        4.7.1.4  covenants
that it shall maintain complete and accurate records of the services performed and the materials and equipment provided hereunder for three
years. 

        5.    OWNER RESPONSIBILITIES    

        5.1  Owner
shall promptly (and within a period of time that will not result in any unreasonable delay of the Work) make all decisions and provide all information reasonably
requested by Workstage, such as partition design and placement, individual connection requirements for electrical, signal, and voice communications needs and desired wiring path, information about
HVAC needs, floor and carpet design, space configuration, colors and finishes, furniture and equipment needs and layout, to the extent such information is not already depicted or set forth in the
plans and specifications for the Project. 

        5.2  Owner
shall, at its expense, furnish (i) an ALTA survey depicting the physical characteristics (including, without limitation, topography, wetlands location),
legal limitations, and utility locations for the Site, (ii) a written legal description and evidence of record title to the property at the Site, and, (iii) a geo-technical
report of the Site. Except for permits, licenses and fees which are the responsibility of Workstage under the Contract Documents, the Owner will pay for easements, assessments and charges required for
the construction, use or occupancy of permanent structures at the Site. 

        5.3  Before
Work begins at the Site, furnish evidence that it owns the Site in fee simple (or direct Workstage to secure such evidence at Owner's expense), and at all times
during the course of the Work maintain such title and pay all property taxes in respect of the Work or the Site before penalty or interest attaches. 

        5.4  Workstage
may rely upon the accuracy, adequacy and completeness of all third-party reports and information furnished by Owner. Workstage shall exercise proper
precautions relating to the safe performance of the Work in its reliance on Owner supplied information, subject to experience or evidence that the third party reports and information furnished by
Owner is inaccurate, inadequate or incomplete, in which case Workstage will promptly notify Owner of this experience or evidence. 

        5.5  Owner
shall furnish environmental, soil and hazardous material tests, inspections and reports required by law or the Contract Documents or otherwise necessary for
performance of the Work. 

        5.6  Owner
shall make all payments as and when required under the Contract Documents. 

        6.    OWNERSHIP AND USE OF PLANS    

        6.1  All
drawings, plans, specifications, and other documents relating to the design, construction, assemblage and installation of the Workstage product including, without
limitation, any patents or pending patents or licenses relating to same and all Proprietary Information 

 8 of 23

 

(hereinafter defined), are "Instruments of Service" belonging to Workstage or its suppliers. Nevertheless, upon execution of this Agreement, Workstage grants to the Owner a nonexclusivelicense to use
and reproduce Workstage's Instruments of Service prepared under this Agreement solely for the purposes of constructing, using and maintaining the Project at the Site for which they were prepared,
provided that Owner shall comply with all obligations, including payment of all sums when due, under this Agreement. Workstage shall obtain similar nonexclusive licenses for the Owner from all of
Workstage's design and construction consultants. If this Agreement terminates for any reason prior to the completion of the Project, the Owner shall have the right to authorize similarly credentialed
design and construction professionals to reproduce, and where permitted by law, to make changes, corrections or additions to the Instruments of Service solely for the purpose of completing, using and
maintaining the Project at the Site. Should any of the Instruments of Service be used by any party subsequent to termination of this Agreement, which are incomplete or unfinished, or which are
subsequently changed, corrected or amended, Owner agrees that Owner will indemnify, defend and hold harmless Workstage from any and all claims, losses or liabilities, including attorneys' fees,
related to such subsequent use of the Instruments of Service to the extent not caused by the negligence or willful misconduct of Workstage. 

        6.2  Upon
(i) the earlier termination of this Agreement or (ii) the completion of the Project and payment for all Work performed by Workstage, whether partially
or fully complete, as provided for by this Agreement, Workstage shall deliver to the Owner reproductions of all Instruments of Service for the Project. Instruments of Service will be delivered to
Owner on early termination and upon payment to Workstage; provided, however, that if Owner has any dispute as to an amount claimed owing to Workstage, Workstage will nonetheless immediately deliver
Instruments of Service to Owner. 

        6.3  In
addition to and on the same terms as set forth in Sections 6.1 and 6.2, Owner shall receive ownership of and/or be assigned the exclusive property rights to all
permits, licenses, subcontracts, supply contracts and any other documents or Proprietary Information, as defined in Section 20.5 below, necessary to complete, use or maintain the Project, other
than Instruments of Service, prepared, provided or procured by Workstage, its Subcontractors and consultants in the performance of the Work. 

        6.4  If
this Agreement is terminated pursuant to Section 16.3, subsections (i), (ii), (iii) or (vi), Owner will not be granted any right to use or of ownership
in the Instruments of Service or Workstage's other Proprietary Information. 

        7.    TIME    

        7.1  The
Work to be performed under Section 3.3 shall commence as provided in the Project Schedule. The "Commencement Date" for the Work is the date established in the
Project Schedule and commences the Contract Time. The "Contract Time" is the period of time allotted in the Project Schedule for Substantial Completion of the Work to be performed under this
Agreement. 

        7.2  Substantial
Completion shall be achieved in accordance with the timing as set forth in the Project Schedule, subject to Section 7.3 below. For the purposes of
this Contract, the phrases "Substantially Complete" and "Substantial Completion" mean the period in time when (i) all Work by or through Workstage necessary so that Owner may occupy the Project
and is able to beneficially use it for its intended purposes and Workstage has provided Owner with notice of same (the "Notice of Readiness") and (ii) Owner, within fifteen (15) business
days from receipt of Notice of Readiness, shall have inspected the Work and shall have either agreed to and accepted the Notice of Readiness (evidencing Owner's agreement that the Work is
Substantially Complete) or given a written notice to Workstage of all uncompleted Work and/or any deficiency that 

 9 of 23

 

reasonably prevents the Project, as described in the Contract Documents, from being found Substantially Complete and prepared for startup (the "Punch List Work"). Notwithstanding the preceding
sentence, if Workstage and Owner are unable to agree to provisions (i) and (ii), but Owner has received from Workstage all necessary permits and licenses in order for Owner to occupy and
operate the Project, the Work shall be deemed "Substantially Complete" as of the date of the issuance of such permits and licenses. The date upon which the Work is deemed to be Substantially Complete
is referred to as the "Substantial Completion Date" in the Contract Documents. 

        7.3  Delay
in achieving Substantial Completion of the Work within the Contract Time arising from Owner's failure to comply with the provisions of Section 5 hereof or
unforeseeable causes beyond the control and without the fault or negligence of Workstage, including such events as labor strikes, fire or other casualty, governmental delays, epidemics, quarantine
restrictions, freight embargoes, adverse weather conditions or other acts of God or force majeure, or delays of Subcontractor or suppliers arising from causes beyond the control and without the fault
or negligence, in whole or in part, of both Workstage and such Subcontractors or suppliers will be considered as periods of excusable delay, and there shall be an equitable adjustment to the Contract
Time and the Contract Price to take into consideration additional costs which Workstage may incur for demobilization and re-mobilization of its work forces, unanticipated labor escalations
and unanticipated additional administrative expenses. 

 10 of 23

   
        8.    CONTRACT PRICE    

        8.1  As
full and complete compensation for all of the Work hereunder performed by Workstage in accordance with the Contract Documents, Owner will pay Workstage a lump sum
amount of Twelve Million Six Hundred Seventy-One Thousand Four Hundred Thirty Four and and 00/100 Dollars ($12, 671,434.00) (the "Contract Price") which is inclusive of the allowances as
set forth in Exhibit D, the Project Price and Schedule of Allowances, as amended from time to time by the parties hereto. The Contract Price may be increased or decreased only as provided for
in accordance with (i) delays as described in Section 7.3, (ii) Changes in the Work as set forth in accordance with Article 13, (iii) the actual cost of allowances
as compared to the allowances set forth on Exhibit D, and (iv) changes in the Work necessitated by the enactment or revisions of codes, laws, or regulations subsequent to the execution
of this Agreement. The Contract Price shall be paid as provided in Section 9 below.    Costs which are paid pursuant to the Letter of Intent executed by the parties on May 2,
2002, will be included and apply towards the Contract Price. Costs which would cause the Contract Price (as adjusted in accordance with this Section) to be exceeded shall be paid by Workstage without
reimbursement from Owner. 

        9.    PROGRESS PAYMENTS    

        9.1  No
later than thirty (30) days prior to the proposed Commencement Date pursuant to the Project Schedule, Workstage shall submit to Owner, for Owner's review and
approval, a schedule of values for the Work ("Schedule of Values") which shall be attached hereto as Exhibit F, and incorporated hereby by this
reference, showing, in percentage and dollar amounts, the value that the various parts, systems, segments and units of the Work ("Work Items") bear to the total Work and the Contract Price. As to
major parts, systems, segments and units of the Work Items, the Schedule of Values shall also reflect the value of the particular Work Item relative to its status of completion. Workstage shall
monthly revise the Schedule of Values to reflect changes in the progress of the Work and/or Owner-approved Changes in the Work, and in any event, Workstage shall furnish to Owner for its review all
revisions made in the Schedule of Values. Owner-approved Changes in the Work, resulting in increases or decreases in the Contract Price, shall be allocated to the corresponding Work Items, unless such
change is in addition to any established Work Item, in which case such Work Item shall become an additional Work Item in the Schedule of Values. 

        9.2  In
addition to developing and maintaining the Schedule of Values, Workstage shall check all materials, equipment and labor entering into the Work and shall keep such
full and detailed records, books and accounts in which true and correct entries as may be necessary for proper financial management under this Agreement will be made in accordance with generally
accepted accounting principles consistently applied, and the system shall be satisfactory to Owner in its reasonable opinion. 

        9.3  Promptly
at the end of each calendar month, and not more often, Workstage shall submit to Owner for Owner's approval a complete and correct payment request ("Payment
Request") in an amount equal to the percentage of the Contract Price for the Work completed through the end of the preceding month. Each Payment Request shall be based on the most recent Schedule of
Values submitted by Workstage and as approved by the Owner. Each Payment Request shall constitute a representation by Workstage to Owner that the Work has progressed to the point indicated and that
Workstage is entitled to payment in the amount requested. The amount of each Payment Request shall be computed as follows: 

        9.3.1  Take
that portion of the Contract Price properly allocated to completed Work as determined by multiplying the percentage completion of such portion(s) of
the Work by the share of the Contract Price allocated to such portion(s) of the Work in the Schedule of Values, less Retainage as set forth in Section 9.6 below. 

        9.3.2  Subtract
the aggregate of previous payments made by the Owner, 

 11 of 23

 

        9.3.3  Subtract
amounts, if any, for which the Owner has withheld or nullified a Payment Request in accordance with Section 9.6 below; 

        9.3.4  Workstage
shall submit to Owner with each Payment Request sufficient detail and supporting data, relative to the Schedule of Values, to show, in Owner's
reasonable judgment, how the Payment Request amount was determined including: 

        9.3.4.1  Workstage's,
Architect's, Subcontractors, Sub-subcontractors, materialmen and suppliers lien waiver waiving lien rights against the Project
to the extent covered by said Payment Request; 

        9.3.4.2  Subcontractor
certificates, statements and affidavits showing that the Work, to the extent covered by said Payment Request has been done and material
delivered free of liens; 

        9.3.4.3  Workstage's
submittal letter, including, without limitation, a billing summary and statement of account; and 

        9.3.4.4  Updated
Schedule of Values and Project Schedule where applicable. 

        9.4  In
taking action on Workstage's submittal of a Payment Request, the Owner shall be entitled to rely on the accuracy and completeness of the information furnished by
Workstage. 

        9.5  Workstage
warrants and guarantees that title to all Work, materials and equipment covered by a Payment Request, whether incorporated in the Project or not, will pass to
Owner upon the receipt by Workstage of such payment, free and clear of all liens, claims, security interests or encumbrances and that no Work, materials or equipment to the extent covered by any
Payment Request will have been acquired by Workstage, or by any other person performing the Work at the Site or furnishing materials and equipment for the Project, subject to an agreement under which
an interest therein or an encumbrance thereon is retained by a seller or otherwise imposed by Workstage or such other person. 

        9.6  Within
fifteen (15) days after receipt of Payment Request, Owner shall pay Workstage the Payment Request amount. Payments not received by Workstage within such
fifteen (15) day period will accrue interest at 1% per month until paid. Owner may decline to approve or withhold from any Payment Request because of: 

        9.6.1  Defective
work not remedied within a reasonable time frame; 

        9.6.2  Filed
or threatened (in writing) third party claims; 

        9.6.3  Failure
of Workstage to make payments properly to Architect or Subcontractors or for labor, materials or equipment or 

        9.6.4  Otherwise,
material breach of this Agreement. 

        Owner
shall give Workstage prompt notice of the existence of any of the deficiencies or material breaches referred to in this Section 9.6 along with sufficient detail as
reasonable to enable Workstage to remedy any deficiency. When all of the deficiencies and material breaches referred to in this Section are remedied, payment shall be made promptly thereafter to the
extent of amounts withheld as a result of such deficiencies. 

        Owner
may retain a maximum of ten percent (10%) of each Progress Payment (hereinafter referred to as "Retainage"). Owner shall release the Retainage as a part of the Final Payment
Request. However, payments for general conditions, site work, concrete, steel, roofing, curtain walls and items purchased
from national manufacturers in accordance with Workstage procurement agreements shall be made upon completion of the obligations in accordance with the requirements of this Agreement with no
Retainage. 

 12 of 23

 

        Any
amounts withheld by Owner as Retainage shall be in addition to any other amounts, if any, that Owner is authorized to withhold under the Contract Documents. 

        9.7  Upon
Substantial Completion, or the earlier termination of this Agreement as provided for in Section 16.1 hereof, Workstage may submit the final Payment Request
for the balance of the Contract Price then owing less the Deposit (the "Final Payment Request"). Neither the Final Payment Request nor any remaining Retainage shall become due until Workstage submits
to Owner (1) final releases of liens and claims from Workstage and all Subcontractors in the form reasonably required by Owner, (2) Workstage's affidavit that all payrolls, bills for
materials and equipment, and other indebtedness connected with the Work for which Owner may be responsible, have been paid or otherwise satisfied, (3) assignment of all guarantees and
warranties from subcontractors, vendors, suppliers or manufacturers, (4) all maintenance and operating manuals, (5) a final set of "as-built" drawings and specifications, and
(6) Punch List Work has been completed. If any Subcontractor refuses to furnish a release or lien waiver or if any liens have been recorded, the Final Payment Request shall not become due until
Workstage furnishes a bond or other security in an amount sufficient, in Owner's reasonable opinion, to remove, or provide adequate security against, the lien. 

        9.8  If
Owner disputes a Payment Request amount as provided in this Section, and if it is later determined that the disputed amount was actually rightfully due, then interest
shall accrue upon the disputed amount not paid at the then current commercial prime lending rate (the "Prime Rate")in the region in which the Project is located plus two percent (2%). 

        10.    INSPECTION    

        10.1 All
Work (which term includes, but is not restricted to, materials, workmanship, and manufacture and fabrication of components) shall be subject to such inspections and
tests at reasonable times prior to acceptance of such Work (1) as Owner shall reasonably direct and (2) in accordance with the Contract Documents, laws, ordinances, rules, regulations or
orders of any public authority having jurisdiction over the Project. Any such inspection and test is for the sole benefit of Owner and shall not relieve Workstage of the responsibility for providing
quality control measures to assure that the Work strictly complies with the Construction Documents. Pursuant to the terms contained herein, Workstage shall bear all costs of such inspections, tests or
approvals, including, without limitation, made necessary by such failure, to the extent that any inspection or test reveals a failure of the Work to comply with Contract Documents, laws, ordinances,
rules, regulations, or orders of any public authority having jurisdiction over the Project; and in all other respects, the cost of such inspections, tests or approvals shall be paid for by Owner and
an appropriate Change Order shall be issued. Owner reserves the right,
at its option and expense, to engage an independent architect professional to conduct and perform such tests and inspections called for by this Section 10.1. 

        10.2 Workstage
shall promptly replace any material or correct any Work found by Owner not to conform to the Construction Documents, unless Owner consents to accept such
material or workmanship with an appropriate adjustment in the Contract Price as applicable. Workstage shall promptly segregate and remove rejected material from the Site. 

        10.3 Workstage
and Owner shall give each other reasonable notice of the planned schedule for all required tests and inspections. 

        10.4 If
Owner or any public authority having jurisdiction over the Project considers it necessary or advisable that covered Work be observed by Owner, or tested or inspected
by others, Workstage shall uncover, expose or otherwise make available that portion of the Work in question, furnishing all necessary labor, material and equipment. If it is found that such Work is
defective, or such Work was covered prior to any test or inspection required by law, Workstage shall pay all costs and damages caused by or resulting from such uncovering, exposure, observation,
inspection, 

 13 of 23

 

testing and satisfactory replacement or rework. If such Work is not found to be defective, Workstage shall be allowed an increase in the Contract Price and an increase in the Contract Time. 

        10.5 If
Workstage does not promptly replace rejected material or correct rejected Work, Owner may by contract or otherwise, in accordance with Section 14.1.2 below,
replace such material or correct such Work and charge the actual cost thereof to Workstage. 

        10.6 In
the event Owner elects to exercise its right to correct such nonconforming Work, an appropriate Change Order shall be issued deducting from the payments then or
thereafter due Workstage the cost of correcting such deficiencies. 

        10.7 Workstage
shall furnish promptly, without additional charge, all facilities, labor, and material reasonably needed for performing such safe and convenient inspection
and testing as may be required by Owner or any public authority having jurisdiction over the Project. All inspection and testing by Owner shall, to the extent reasonably possible, be performed in such
manner as not to unnecessarily delay the Work. 

        10.8 Certificates
of inspection, testing, or approval required by governmental agencies in connection with the Work shall be secured by Workstage and promptly delivered to
Owner. 

        11.    PROTECTION OF PERSONS AND PROPERTY    

        11.1 Workstage
shall be responsible for initiating, maintaining, and supervising appropriate safety precautions and programs in connection with the Work. Owner shall abide
by such precautions and programs. 

        11.2 Workstage
shall give all notices and comply with all applicable laws, ordinances, rules, regulations, and orders of any public authorities bearing on the safety of
persons and property in connection with the Work and their protection from damage, injury, or loss. Workstage shall follow all procedures required by the Occupational Safety and Health Act (OSHA) or
its equivalent, including, but not limited to, providing and posting all required posters and notices, and shall otherwise be responsible for all other mandatory safety laws in connection with the
Work. 

        12.    INSURANCE    

        12.1 Workstage
shall maintain in full force and effect Workers' Compensation Insurance complying with all statutory requirements, Employers' Liability Insurance in the
amount of One Million Dollars ($1,000,000), and other employee, work-related accident insurance required by the state where the Project is located. Such insurance shall provide coverage
for bodily injury, occupational sickness and disease, and death claims of employees of Workstage. 

        12.2 Workstage
shall maintain in full force and effect a policy of Commercial General Liability Insurance with coverage limits of not less than One Million Dollars
($1,000,000) per occurrence and Two Million Dollars ($2,000,000) general aggregate. Such insurance shall name Owner as an "additional insured." Workstage's Commercial General Liability shall include
contractual liability insurance applicable to its operations under this Agreement written on an occurrence basis. 

        12.3 Workstage
shall maintain in full force and effect Commercial Automobile Liability Insurance providing bodily injury and property damage liability coverage in an amount
not less than One Million Dollars ($1,000,000) per accident for hired and non-owned automobiles. 

        12.4 Workstage
shall maintain umbrella liability in excess of Commercial General Liability and Commercial Automobile Liability with minimum limits of Three Million Dollars
($3,000,000) per occurrence and Five Million Dollars ($5,000,000) aggregate. 

        12.5 Workstage
shall purchase and maintain or cause the Architect to purchase and maintain errors and omissions insurance with a limit of not less than Two Million Dollars
($2,000,000) each 

 14 of 23

 

occurrence. If such insurance is maintained on a per claims basis, the policy shall be in the form of a "project policy" with a five (5) year "extended reporting period" endorsement. All
coverage shall be retroactive to the earlier of the date of this Agreement or the commencement of Workstage's services in relation to the Project, covering personal injury, bodily injury and property
damage. 

        12.6 Owner
shall be responsible for purchasing and maintaining commercial general liability insurance, automobile and umbrella coverage against claims which may arise from
bodily injury and/or property damage for which Owner may be legally liable in minimum amounts at least equal to the amounts Workstage is required to carry pursuant to this Section 12 with
Workstage being named as an additional insured party. Owner is responsible for payment of the deductible, in the event of insurance coverage for any claim made hereunder. 

        12.7 Owner
shall purchase and maintain "special form" subject to policy exclusions replacement cost builders' risk/property insurance, including delayed completion, flood
and earthquake coverage, insuring the Project and all of its components, whether real property, personal property or fixtures, with Workstage named as a loss payee as its interest may appear. A
summary of Owner's Builder's Risk coverages shall be delivered to Workstage prior to commencement of the Work. Owner is responsible for payment of the Builders' Risk deductible, in the event of
insurance coverage for any claim made under the Builders' Risk Policy. 

        12.8 Workstage
shall cause each Subcontractor employed by Workstage and the Architect to purchase and maintain insurance of the type specified herein. When requested by
Owner, Workstage shall furnish to Owner copies of certificates of insurance evidencing coverage for each Subcontractor. 

        12.9 All
certificates of insurance shall include the provision that the above-afforded coverages will not be amended, canceled, terminated, or reduced without thirty
(30) days prior written notification. Each party hereby waives all claims it may have against the other arising out of or in connection with loss or damage that would be insurable under the
insurance described above to the extent the person suffering the loss or damage did or could have covered it by the insurance required under this Agreement. Each party shall cause its insurer to
include a "waiver of subrogation" clause in or issue an endorsement to its policy recognizing and agreeing to this provision. 

        12.10  All
insurance referenced in the insurance section purchased by Workstage and the Owner shall be with a carrier with a current A.M. Best rating of
A-VIII or better. 

        13.    CHANGES IN THE WORK    

        13.1 Without
invalidating this Agreement, Owner may order changes in the Work within the general scope of the Agreement, consisting of additions, deletions, or other
revisions to the specifications, including, but not limited to, changes to the final version of the base building specifications as shown on  Exhibit A, or drawings of the Contract Documents; the
method or manner of performance of the Work; the quantity or type of any Owner-furnished
facilities, equipment, services or Site; or direct any acceleration in the performance of the Work ("Changes in the Work"). Owner and Workstage shall execute a Change Order (hereinafter defined)
setting forth in detail any changed or additional Work to be performed or to be deleted. The cost of any Changes in the Work will be added to or subtracted from the Contract Price by a Change Order,
provided that such Change Order is in accordance with this Section 13. 

        13.2 All
Changes in the Work shall be pursuant to a written change order prepared by Workstage and executed by both Owner and Workstage (the "Change Order"), which shall
include an eight percent (8%) charge for general conditions and a five percent (5%) project management fee and shall set forth (a) the cost of the Change in the Work, (b) the change, if
any, in the Work, (c) the changes in Workstage's warranties, (d) the change, if any, in the Contract Price, (e) the 

 15 of 23

 

change, if any, in the Contract Time, and (f) any other change to the Construction Documents required by each Change in the Work. No Change Order shall be effective unless signed by an
authorized representative of both Owner and Workstage. 

        13.3 All
changes in the Contract Price shall be based upon the values set forth in the most recent Schedule of Values and shall be adjusted and shown on an updated Schedule
of Values. The corresponding percentage in the updated Schedule of Values will be applied in the next Payment Request after such Change Order. 

        13.3.1  Cost
of the Changes in the Work shall only include the following costs: 

        13.3.1.1  costs
of labor, including social security, old age and unemployment insurance, fringe benefits required by agreement or custom, and workers'
compensation insurance; 

        13.3.1.2  costs
of materials, supplies and equipment, including cost of transportation thereof and taxes thereon, whether incorporated or consumed; 

        13.3.1.3  rental
costs of machinery and equipment exclusive of hand tools, whether rented from Workstage or others; 

        13.3.1.4  costs
of premiums for all bonds and insurance permit fees, and sales, use or similar taxes to the extent applicable to the Change in the Work; 

        13.3.1.5  additional
costs of supervision and field office personnel directly attributable to the Changes in the Work; and fees paid to the Architect, engineers
and other professionals. 

        13.3.1.6  additional
costs for Changes in the Work necessitated by enactment or revision of codes, laws or regulations subsequent to execution of the Contract
Documents. 

        13.4 With
regard to Changes in the Work, Workstage shall check all materials, equipment, and labor entering into the Work, and shall keep such full and detailed accounts as
may be necessary to document the Cost of the Changes in the Work and for proper financial management of Changes in the Work under this Agreement, and the system(s) for doing so shall be satisfactory
to Owner. Owner shall not unreasonably withhold Owner's approval of such system(s). Owner shall be afforded reasonable access to all of Workstage's records, books, correspondence, instructions,
drawings, receipts, vouchers, memoranda, and similar data relating to the Cost of Changes in the Work. 

        13.5 If
Workstage is delayed at any time in the progress of the Work by an act or neglect of the Owner, Owner's employees, or separate contractors employed by the Owner, or
by Changes in the Work, or by labor disputes, fire, unusual delay in deliveries, adverse weather conditions, governmental delays, or other typical force majeure events, unavoidable casualties or other
causes beyond the Workstage's control, including such events as provided in Section 7.3, or by delay authorized by the Owner, or by other causes which the Owner and Workstage agree may justify
delay, then Workstage shall have the right to reasonably extended the Contract Time by Change Order. 

        14.    CORRECTION OF WORK    

        14.1 Prior
to Final Payment hereunder, Workstage shall promptly correct Work rejected by the Owner in accordance with the terms of this Agreement or known by Workstage to be
defective or failing to conform to the requirements of the Construction Documents. Subject to the terms of this Agreement, Workstage shall bear costs of correcting such rejected Work, including
additional testing and inspections. 

 16 of 23

 

        14.1.1  If
Workstage fails to correct nonconforming Work as required, fails to perform the Work in accordance with the Construction Documents and the Project is
not yet complete, the Owner may, by written order, direct Workstage to stop the Work, or any portion thereof, until the cause for such order has been eliminated. 

        14.1.2  If
Workstage defaults or neglects to carry out the Work in accordance with the Contract Documents and fails within five (5) business days after
receipt of written notice from the Owner to commence and continue correction of such default or neglect with diligence and promptness, the Owner must give a second written notice to Workstage and,
seven (7) days following receipt by Workstage of that second written notice and without prejudice to other remedies, the Owner may correct such deficiencies as set forth in Section 10.5.
In such case an appropriate Change Order shall be issued deducting from payments then or thereafter due to Workstage, the Owner's actual costs of correcting such deficiencies. Such action by the Owner
shall be subject to dispute resolution procedures as provided in Section 15. 

        14.2 If,
within one (1) year after the date of Substantial Completion of the Work, any of the Work is found to be not in accordance with the requirements of the
Construction Documents, Workstage shall, at Workstage's expense, correct it promptly after receipt of a written notice from the Owner to do so unless the Owner has previously accepted such condition. 

        15.    DISPUTE RESOLUTION    

        15.1 The
parties recognize that differences sometimes arise in the course of a relationship and wish to avoid litigation. Accordingly, all claims, disputes and other matters
in question between Workstage and Owner arising out of or relating to this Agreement or the breach thereof, the Project, or the Work ("disputes") shall first be submitted to negotiation and may,
failing resolution, then be subject to arbitration as set forth below; however, in all other cases, all legal and equitable rights and remedies provided at law and equity are reserved. 

        15.2 Disputes
claimed by either party must be made by written notice promptly upon the recognition of the event giving rise to such claim. Pending final resolution of any
dispute, including arbitration in accordance with this Section 15, Workstage shall proceed diligently with performance of the Work to the extent it is unrelated to the dispute and the subject
matter of the dispute does not inhibit the progress of the Work generally, and subject to Section 9.6, Owner shall continue to make payments to Workstage in accordance with this Agreement to
the extent unrelated to the dispute. To the extent necessary in light of the circumstances, the Contract Time shall be extended by the period of time necessary to resolve any dispute. Such performance
by Workstage and payment by Owner shall not operate to waive or estop either party from pursuing the claim which gave rise to the dispute. 

        15.3 If
any dispute arises, Owner and Workstage shall each appoint an executive officer to meet for the purpose of resolving it. If the parties' executive officers are able
to reach an agreement, the dispute will be deemed resolved. 

        15.4 If
after fifteen (15) days from the date the dispute arose these negotiations prove unsuccessful in whole or in part, Workstage or Owner may request that any
remaining disputes be resolved by arbitration in accordance with the "regular track" rules of the American Arbitration Association
applicable to Construction Industry Disputes, and such disputes shall be arbitrated Any award rendered pursuant to an arbitration may include reasonable attorneys' fees and costs, shall be final and
binding upon the parties, and judgment may be entered upon it in a court of competent jurisdiction. All applicable statutes of limitations and the like shall be tolled while the requirements of this
provision are pending, but only as to the issues hereby submitted for negotiation or arbitration. 

 17 of 23

 

        16.    TERMINATION AND SUSPENSION    

        16.1 The
Owner may terminate this Agreement, following seven (7) days' written notice and a reasonable opportunity to cure, for the following reasons
(i) Workstage consistently refuses or fails to supply enough properly skilled workers or proper materials; (ii) Workstage fails to make payment to Subcontractors for material or labor in
accordance with the respective agreements between the Workstage and Subcontractor; (iii) Workstage disregards laws, ordinances or orders of public authorities having jurisdiction, or
(iv) Workstage otherwise materially breaches a provision of the Contract Documents. 

        16.1.1  If
this Agreement is terminated for any of the above reasons, Owner (i) may take possession of the Site, and all of the materials, equipment,
tools and construction machinery owned by Owner thereon; (ii) shall be assigned and may accept assignments of Workstage's agreement with the Architect, all subcontracts, material and supply
contracts, including without limitation manufactured or supply contracts for any pre-fabricated portions of the Work, any permits approvals, licenses or other agreements held by Workstage
in its performance of its obligations to this Agreement; (iii) and finish the Work in whatever reasonable method the Owner may elect. 

        16.1.2  If
this Agreement is terminated pursuant to this Section 16.1, Workstage shall be compensated as set forth in this Section and in accordance with
Section 9.7 hereinabove. 

        16.1.3  If
the unpaid balance of the Contract Price exceeds the costs of finishing the Work, including any design professionals services or other damages
incurred by the Owner and not expressly waived, such excess costs shall be paid by Workstage and may be debited from any unpaid balance owing to Workstage. 

        16.2 Subject
to Sections 9.6 and 15.2, Workstage may suspend performance of the Work at any time and an appropriate change in the Contract Time will be made, when Owner has
failed to make a payment thirty (30) days after its due date. 

        16.3 Workstage
may terminate this Agreement, following seven (7) days' written notice and a reasonable opportunity to cure, if (i) any payment is more than
sixty (60) days past due, (ii) Owner materially breaches this Agreement, (iii) the Work is stopped, through no act or fault of Workstage, its agents or employees, by Owner for a
period or periods aggregating ninety (90) days, (iv) the work is stopped, through no act or fault of Workstage, its agents or employees, under any order of any court or other public
authority having jurisdiction for a period or periods aggregating ninety (90) days; or as a result of an act of government, such as a declaration of a national emergency making materials, fuel,
or equipment unavailable, (v) environmental contamination or hazardous material is discovered at the Site preventing completion of the Project, or (v)i a bankruptcy, liquidation or receivership
of the Owner occurs. In case of any such termination under this Section 16.3, Workstage shall be entitled to receive for Work properly executed in accordance with the Contract Documents, the
proportionate share of the Contract Price earned prior to such termination and all costs necessarily incurred by reason of such termination. 

        16.4 Within
seven (7) days after termination of this Agreement, Workstage shall deliver to Owner all relevant materials, supplies and equipment paid for by Owner and
the Contract Documents in accordance with other provisions of this Agreement. 

        17.    INDEMNIFICATION    

        17.1 Subject
to the waiver of subrogation provisions set forth in Section 12.9 above each party shall, to the extent that the same may have been caused by its own
negligence or willful misconduct, defend and indemnify the other, its officers, employees and agents, against and hold them harmless from all liability, damage, cost or expense. Prompt notice shall be
given of any such claim. 

 18 of 23

 

        18.    HAZARDOUS MATERIALS    

        18.1 Owner
represents and warrants that to the best of its knowledge the Site is free from contamination and hazardous materials of any kind. Regardless of whether or not it
had knowledge of them, Owner shall defend and indemnify Workstage and Workstage's Agents (hereinafter defined) against and hold harmless from any and all loss, liability or damage it may incur as a
result of the presence of contamination or hazardous materials at the Project Site except to the extent caused by Workstage, its employees, subcontractors and their agents and employees. 

        18.2 Neither
Workstage nor its employees, agents, contractors, invitees, or anyone else working on the Project ("Workstage's Agents"), shall bring on, keep, store, use,
release, or dispose of any hazardous material on, in, or about the Project Site, except in quantities permitted by, and used for their intended purpose under, the Contract Documents and applicable
law. 

        18.3 If
Workstage or any of Workstage's Agents inadvertently discovers any spill, discharge, or leakage of hazardous materials including, but not limited to, asbestos or
polychlorinated biphenyl, on the Site, Workstage shall immediately stop all Work in the area where the discovery is made and notify Owner as expeditiously as possible. 

        18.4 If
Workstage shall receive any notice, whether oral or written, of any inquiry, test, investigation, enforcement proceeding, environmental audit, or the like by or
against the Project with regard to any hazardous materials, Workstage shall immediately notify Owner of such notice. 

 19 of 23

   
        19.    NO BROKER    

        19.1     Workstage
and Owner each warrant and represent that they have involved no broker in the transaction contemplated in this Agreement and to the best of each
party's knowledge, there is no broker or any other party who is entitled to a commission in connection with this transaction. Workstage and Owner agree to indemnify and hold harmless the other party
from and against all claims, costs, liabilities and expense (including court costs and attorneys' fees) incurred by the other party as a result of a breach of such representations. The provisions of
this Section 19 shall survive the expiration or termination of this Agreement. 

        20.    MISCELLANEOUS PROVISIONS    

        20.1     This
Agreement shall be governed by the laws of the state in which the Site is located, regardless of the venue or jurisdiction where issues, suits or
actions hereunder are properly brought or heard. 

        20.2     Except
as otherwise specifically provided in this Agreement, neither Owner nor Workstage shall assign this Agreement nor transfer any of the rights
without the prior written agreement of the other party. 

        20.3     There
are no third-party beneficiaries to this Agreement. Nothing contained in this Agreement shall create a contractual relationship with or a cause of
action in favor of a third party against either party. 

        20.4     Any
notices provided under this Agreement shall be deemed properly given if reduced to writing and personally delivered or transmitted by registered or
certified mail, or by a trackable commercial delivery service including Federal Express, UPS, Airborne or the equivalent, to the person and address set forth in Section 2.5 and 2.6 above with
postage prepaid, or if transmitted by recognized overnight courier service or facsimile, with confirmation receipt. 

        20.5     Subject
to Owner's rights provided for in Section 6 hereof, the design, plans and specifications of all Workstage products including all
pre-fabricated products it obtains from suppliers who are affiliated with Workstage (the "Proprietary Information") shall be owned by Workstage or such supplier,
protected by all applicable and pending patents or licenses relating thereto, trademarks, copyrights, and the like. Owner shall not take any action which would or might impair any rights Workstage or
its affiliated supplier has or may have in products to be integrated into the Project, unless otherwise expressly allowed by the Contract Documents. 

        20.5.1    Except
as expressly permitted by the Agreement, Owner shall maintain all Proprietary Information in confidence and not disclose it to any third party. 

        20.5.2    Owner
shall handle the Proprietary Information with the same degree of care it applies to its own confidential information, and at a minimum all due
care to protect the confidentiality of the Proprietary Information. 

        20.6     The
headings of Sections and paragraphs are for convenience only and shall not modify rights and obligations created by this Agreement. 

        20.7     The
failure of any party to insist upon strict compliance by another party shall not be deemed a waiver of its right to do so in the future. 

        20.8     Whenever
the consent, approval, acknowledgment or permission of either party is required under this Agreement, it shall not be unreasonably withheld,
delayed or conditioned. 

        20.9     The
obligations of either party under this Agreement that are of a continuing nature shall survive termination of this Agreement or final completion of
the Project, unless otherwise explicitly agreed to in the Contract Documents or by operation of law. 

20 of 23

 

        20.10  In
any court proceeding or other action brought by one party hereto against the other to enforce or interpret the terms of this Agreement or to resolve
any dispute concerning any of the services, the party prevailing in such proceeding or action shall be entitled, in addition to such other relief the court or arbitrators may grant, to an award of its
costs incurred in connection with the proceeding or action, including, but not limited to, reasonable fees and disbursements of its attorneys. 

        20.11  In
case any one or more provisions set forth in the Contract Documents shall for any reason be held invalid, illegal or unenforceable in any respect, any
such invalidity, illegality, or unenforceability
shall not effect any other provision of the Contract Documents, and the Contract Documents shall be construed as if such invalid, illegal, or unenforceable provision had never been incorporated
therein. 

        20.12  The
Contract Documents may be executed in any number of counterparts and, notwithstanding that all parties may not execute the same counterpart, each of
such counterparts for all purposes shall be deemed to be an original, and all of such counterparts shall constitute one and the same agreement. 

        20.13  No
oral order, objection, claim or notice by any party to the other shall affect or modify any of the terms or obligations contained in any of the
Contract Documents, and none of the provisions of the Contract Documents shall be held to be waived or modified by reason of any act whatsoever, other than by a definitely agreed waiver or
modification thereof in writing, and no evidence shall be introduced in any proceeding of any other waiver or modification. 

        20.14  The
parties each represent that the person executing this document on behalf of such party has the power and authority to enter into this Agreement and
such entity has the authority to consummate the transactions herein contemplated. The execution and delivery hereof and the performance by each party of its obligations hereunder will not violate or
constitute an event of default under the terms or provisions of any agreement, document or other instrument to which it is a party or by which it is bound. All proceedings required to be taken by or
on behalf of each party to authorize it to make, deliver and carry out the terms of this Agreement have been or will be duly and properly taken by each party and this Agreement is the legal, valid and
binding obligation of the parties and is enforceable in accordance with its terms. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]  

21 of 23

 

        WHEREFORE, this agreement is entered into as of the date first written above. 

	OWNER:	 	WORKSTAGE:
	

 	
 	

 	
 	
WORKSTAGE LLC
	

By	
 	

 	
 	

By	
 	

 
	 	 	
(Signature)	 	 	 	
(Signature)
	

(Printed name and title)	
 	

(Printed name and title)

	 
	 
	 	 

	STATE OF	 	 	)
	 	
	 	 
	 	 	 	) SS.:
	COUNTY OF	 	 	)
	 	
	 	 

        I CERTIFY that on                        , 2001,
                        

personally
came before me and this person acknowledged under oath, to my satisfaction, that: 

	(a)
	this
person is the                        of Workstage LLC, a Delaware limited liability company;

	(b)
	this
Agreement was signed and delivered by Workstage LLC as its voluntary act, duly authorized in accordance with all requirements of its formation documents (as amended from time to
time); and

	(c)
	this
person signed this proof to attest to the truth of these facts. 

	 
	 	 

	 	 	
 Notary

	 
	 
	 	 

	STATE OF	 	 	)
	 	
	 	 
	 	 	 	) SS.:
	COUNTY OF	 	 	)
	 	
	 	 

        I CERTIFY that on                        , 2001,
                        

personally
came before me and this person acknowledged under oath, to my satisfaction, that: 

	(a)
	this
person is
the                        of                 
       , a                        corporation/partnership/limited liability company;

	(b)
	this
Agreement was signed and delivered by                        as its voluntary act, duly authorized in accordance with all
requirements of its formation documents (as amended from time
to time); and

	(c)
	this
person signed this proof to attest to the truth of these facts. 

	 
	 	 

	 	 	
 Notary

22 of 23

 
LIST OF EXHIBITS  

	

EXHIBIT A	
 	

Base Building Work Description
	

EXHIBIT B	
 	

The Site Description
	

EXHIBIT C	
 	

Project Schedule
	

EXHIBIT D	
 	

Project Price and Schedule of Allowances
	

EXHIBIT E	
 	

Schedule of Warranties
	

EXHIBIT F	
 	

Schedule of Values

23 of 23

QuickLinks

EXHIBIT 10.26<Page>

                                                                     EXHIBIT 4.1

                                                                  CONFORMED COPY

                          ASBURY AUTOMOTIVE GROUP, INC.

               $250,000,000 9% SENIOR SUBORDINATED NOTES DUE 2012

                      UNCONDITIONALLY GUARANTEED AS TO THE
                         PAYMENT OF PRINCIPAL, PREMIUM,
                           IF ANY, AND INTEREST BY THE
                              SUBSIDIARY GUARANTORS

                                     -------

                   EXCHANGE AND REGISTRATION RIGHTS AGREEMENT

                                                     June 5, 2002

Goldman, Sachs & Co.,
Salomon Smith Barney Inc.

c/o Goldman, Sachs & Co.
85 Broad Street
New York, New York 10004

Ladies and Gentlemen:

     Asbury Automotive Group, Inc., a Delaware corporation (the "Company"),
proposes to issue and sell to the Purchasers (as defined herein) upon the terms
set forth in the Purchase Agreement (as defined herein) its 250,000,000 9%
Senior Subordinated Notes due 2012, which are unconditionally guaranteed by the
Subsidiary Guarantors. As an inducement to the Purchasers to enter into the
Purchase Agreement and in satisfaction of a condition to the obligations of the
Purchasers thereunder, the Company and the Subsidiary Guarantors, jointly and
severally, agree with the Purchasers for the benefit of holders (as defined
herein) from time to time of the Registrable Securities (as defined herein) as
follows:

     1. CERTAIN DEFINITIONS. For purposes of this Exchange and Registration
Rights Agreement, the following terms shall have the following respective
meanings:

     "AGREEMENT" means this Exchange and Registration Rights Agreement.

     "BASE INTEREST" shall mean the interest that would otherwise accrue on the
Securities under the terms thereof and the Indenture, without giving effect to
the provisions of this Agreement.

     The term "BROKER-DEALER" shall mean any broker or dealer registered with
the Commission under the Exchange Act.

     "CLOSING DATE" shall mean the date on which the Securities are initially
issued.

     "COMMISSION" shall mean the United States Securities and Exchange
Commission, or any other federal agency at the time administering the Exchange
Act or the Securities Act,

<Page>

whichever is the relevant statute for the particular purpose.

     "EFFECTIVE TIME," in the case of (i) an Exchange Registration, shall mean
the time and date as of which the Commission declares the Exchange Registration
Statement effective or as of which the Exchange Registration Statement otherwise
becomes effective and (ii) a Shelf Registration, shall mean the time and date as
of which the Commission declares the Shelf Registration Statement effective or
as of which the Shelf Registration Statement otherwise becomes effective.

     "ELECTING HOLDER" shall mean any holder of Registrable Securities that has
returned a completed and signed Notice and Questionnaire to the Company in
accordance with Section 3(d)(ii) or 3(d)(iii) hereof.

     "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, or any
successor thereto, as the same shall be amended from time to time.

     "EXCHANGE OFFER" shall have the meaning assigned thereto in Section 2(a)
hereof.

     "EXCHANGE REGISTRATION" shall have the meaning assigned thereto in Section
3(c) hereof.

     "EXCHANGE REGISTRATION STATEMENT" shall have the meaning assigned thereto
in Section 2(a) hereof.

     "EXCHANGE SECURITIES" shall have the meaning assigned thereto in Section
2(a) hereof.

     The term "HOLDER" shall mean each of the Purchasers and other persons who
acquire Registrable Securities from time to time (including any successors or
assigns), in each case for so long as such person owns any Registrable
Securities.

     "INDENTURE" shall mean the Indenture, dated as of June 5, 2002 among the
Company, the Subsidiary Guarantors and The Bank of New York, as Trustee, as the
same shall be amended from time to time.

     "NOTICE AND QUESTIONNAIRE" means a Notice of Registration Statement and
Selling Securityholder Questionnaire substantially in the form of EXHIBIT A
hereto.

     The term "PERSON" shall mean a corporation, association, partnership,
organization, business, individual, government or political subdivision thereof
or governmental agency.

     "PURCHASE AGREEMENT" shall mean the Purchase Agreement, dated as of May 31,
2002, among the Purchasers, the Subsidiary Guarantors and the Company relating
to the Securities.

     "PURCHASERS" shall mean the Purchasers named in Schedule I to the Purchase
Agreement.

     "REGISTRABLE SECURITIES" shall mean the Securities; PROVIDED, HOWEVER, that
a Security shall cease to be a Registrable Security when (i) in the
circumstances contemplated by Section 2(a) hereof, the Security has been
exchanged for an Exchange Security in an Exchange Offer as contemplated in
Section 2(a) hereof (PROVIDED that any Exchange Security that, pursuant to the
last two sentences of Section 2(a), is included in a prospectus for use in
connection with resales by broker-dealers shall be deemed to be a Registrable
Security with respect to Sections 5, 6 and 9 until resale of such Registrable
Security has been effected within

                                       -2-
<Page>

the 180-day period referred to in Section 2(a)); (ii) in the circumstances
contemplated by Section 2(b) hereof, a Shelf Registration Statement registering
such Security under the Securities Act has been declared or becomes effective
and such Security has been sold or otherwise transferred by the holder thereof
pursuant to and in a manner contemplated by such effective Shelf Registration
Statement; (iii) such Security is sold pursuant to Rule 144 under circumstances
in which any legend borne by such Security relating to restrictions on
transferability thereof, under the Securities Act or otherwise, is removed by
the Company or pursuant to the Indenture; (iv) such Security is eligible to be
sold pursuant to paragraph (k) of Rule 144; or (v) such Security shall cease to
be outstanding.

     "REGISTRATION DEFAULT" shall have the meaning assigned thereto in Section
2(c) hereof.

     "REGISTRATION EXPENSES" shall have the meaning assigned thereto in Section
4 hereof.

     "RESALE PERIOD" shall have the meaning assigned thereto in Section 2(a)
hereof.

     "RESTRICTED HOLDER" shall mean (i) a holder that is an affiliate of the
Company within the meaning of Rule 405, (ii) a holder who acquires Exchange
Securities outside the ordinary course of such holder's business, (iii) a holder
who has arrangements or understandings with any person to participate in the
Exchange Offer for the purpose of distributing Exchange Securities and (iv) a
holder that is a broker-dealer, but only with respect to Exchange Securities
received by such broker-dealer pursuant to an Exchange Offer in exchange for
Registrable Securities acquired by the broker-dealer directly from the Company.

     "RULE 144," "RULE 405" AND "RULE 415" shall mean, in each case, such rule
promulgated under the Securities Act (or any successor provision), as the same
shall be amended from time to time.

     "SECURITIES" shall mean, collectively, the $250,000,000 9% Senior
Subordinated Notes due 2012 of the Company to be issued and sold to the
Purchasers, and securities issued in exchange therefor or in lieu thereof
pursuant to the Indenture. Each Security is entitled to the benefit of each
guarantee provided for in the Indenture (the "Subsidiary Guarantees") and,
unless the context otherwise requires, any reference herein to a "Security," an
"Exchange Security" or a "Registrable Security" shall include a reference to the
related Subsidiary Guarantees.

     "SECURITIES ACT" shall mean the Securities Act of 1933, or any successor
thereto, as the same shall be amended from time to time.

     "SHELF REGISTRATION" shall have the meaning assigned thereto in Section
2(b) hereof.

     "SHELF REGISTRATION STATEMENT" shall have the meaning assigned thereto in
Section 2(b) hereof.

     "SPECIAL INTEREST" shall have the meaning assigned thereto in Section 2(c)
hereof.

     "SUBSIDIARY GUARANTORS" shall have the meaning assigned thereto in the
Indenture.

     "TRUST INDENTURE ACT" shall mean the Trust Indenture Act of 1939, or any
successor thereto, and the rules, regulations and forms promulgated thereunder,
all as the same shall be amended from time to time.

                                       -3-
<Page>

     Unless the context otherwise requires, any reference herein to a "Section"
or "clause" refers to a Section or clause, as the case may be, of this Exchange
and Registration Rights Agreement, and the words "herein," "hereof" and
"hereunder" and other words of similar import refer to this Exchange and
Registration Rights Agreement as a whole and not to any particular Section or
other subdivision.

     2. Registration Under the Securities Act.

          (a) Except as set forth in Section 2(b) below, the Company agrees to
file under the Securities Act, as soon as practicable, but no later than 90 days
after the Closing Date, a registration statement relating to an offer to
exchange (such registration statement, the "Exchange Registration Statement",
and such offer, the "Exchange Offer") any and all of the Securities for a like
aggregate principal amount of debt securities issued by the Company and
guaranteed by the Subsidiary Guarantors, which debt securities and guarantees
are substantially identical to the Securities and the related Subsidiary
Guarantees, respectively (and are entitled to the benefits of a trust indenture
which is substantially identical to the Indenture or is the Indenture and which
has been qualified under the Trust Indenture Act), except that they have been
registered pursuant to an effective registration statement under the Securities
Act and do not contain provisions for the additional interest contemplated in
Section 2(c) below (such new debt securities hereinafter called "Exchange
Securities"). The Company and the Subsidiary Guarantors agree to use their
reasonable best efforts to cause the Exchange Registration Statement to become
effective under the Securities Act as soon as practicable, but no later than 180
days after the Closing Date. The Exchange Offer will be registered under the
Securities Act on the appropriate form and will comply with all applicable
tender offer rules and regulations under the Exchange Act. The Company and the
Subsidiary Guarantors further agree to use their reasonable best efforts to (i)
commence and complete the Exchange Offer on or prior to 30 business days, or
longer, if required by the federal securities laws, after such registration
statement has become effective, (ii) hold the Exchange Offer open for at least
30 days and (iii) exchange Exchange Securities for all Registrable Securities
that have been properly tendered and not withdrawn on or prior to the expiration
of the Exchange Offer. The Exchange Offer will be deemed to have been
"completed" only if the debt securities and related guarantees received by
holders other than Restricted Holders in the Exchange Offer for Registrable
Securities are, upon receipt, transferable by each such holder without further
compliance with Section 5 of the Securities Act (except for the requirement to
deliver a prospectus included in the Exchange Registration Statement applicable
to resales by broker-dealers of Exchange Securities received by such
broker-dealer pursuant to an Exchange Offer in exchange for Registrable
Securities other than those acquired by the broker-dealer directly from the
Company) and without material restrictions under the blue sky or securities laws
of a substantial majority of the States of the United States of America. The
Exchange Offer shall be deemed to have been completed upon the earlier to occur
of (i) the Company having exchanged the Exchange Securities for all outstanding
Registrable Securities pursuant to the Exchange Offer and (ii) the Company
having exchanged, pursuant to the Exchange Offer, Exchange Securities for all
Registrable Securities that have been properly tendered and not withdrawn before
the expiration of the Exchange Offer, which shall be on a date that is at least
30 days following the commencement of the Exchange Offer. The Company agrees (x)
to include in the Exchange Registration Statement a prospectus for use in any
resales by any holder of Exchange Securities that is a broker-dealer (where such
Exchange Security was received by a broker-dealer in an Exchange Offer in
exchange for a Registrable Security that was acquired by such broker-dealer for
its own account as a result of market-making or other trading activities, so
long as such Registrable Security was not acquired directly from the Company or
an affiliate of the Company) and (y) to keep such Exchange Registration

                                       -4-
<Page>

Statement effective for a period (the "Resale Period") beginning when Exchange
Securities are first issued in the Exchange Offer and ending upon the earlier of
the expiration of the 180th day after the Exchange Offer has been completed or
such time as such broker-dealers no longer own any Registrable Securities. With
respect to such Exchange Registration Statement, such holders shall have the
benefit of the rights of indemnification and contribution set forth in Sections
6(a), (c), (d) and (e) hereof.

(b) If (i) the Company and the Subsidiary Guarantors are not (A) required to
file the Exchange Registration Statement; or (B) permitted to consummate the
Exchange Offer, because the Exchange Offer is not permitted by applicable law or
Commission policy, (ii) any holder of Registrable Securities notifies the
Company in writing prior to the 20th day following the consummation of the
Exchange Offer that (X) it is prohibited by applicable law or Commission policy
from participating in the Exchange Offer, or (Y) that it may not resell the
Exchange Notes acquired by it in the Exchange Offer to the public without
delivering a prospectus and the prospectus contained in the Exchange Offer
Registration Statement is not appropriate or available for such resales; or (Z)
that it is a broker-dealer and owns Securities acquired directly from the
Company or an affiliate of the Company, or (iii) the Exchange Offer has not been
completed within 225 days following the Closing Date, the Company and the
Subsidiary Guarantors will use their reasonable best efforts to file under the
Securities Act as soon as practicable, but no later than on or prior to 60 days
after the time such obligation to file arises, a "shelf" registration statement
providing for the registration of, and the sale on a continuous or delayed basis
by the holders of, all of the Registrable Securities affected thereby, pursuant
to Rule 415 or any similar rule that may be adopted by the Commission (such
filing, the "Shelf Registration" and such registration statement, the "Shelf
Registration Statement"). The Company and the Subsidiary Guarantors, jointly and
severally, agree to use their reasonable best efforts (x) to cause the Shelf
Registration Statement to become or be declared effective no later than 120 days
after such obligation arises and to keep such Shelf Registration Statement
continuously effective for a period ending on the earlier of the second
anniversary of the Effective Time or such time as there are no longer any
Registrable Securities outstanding, PROVIDED, HOWEVER, that no holder shall be
entitled to be named as a selling securityholder in the Shelf Registration
Statement or to use the prospectus forming a part thereof for resales of
Registrable Securities unless such holder is an Electing Holder who agrees to be
bound by all of the provisions of this Agreement applicable to such holder, and
(y) after the Effective Time of the Shelf Registration Statement, promptly upon
the request of any holder of Registrable Securities that is not then an Electing
Holder, to take any action reasonably necessary to enable such holder to use the
prospectus forming a part thereof for resales of Registrable Securities,
including, without limitation, any action necessary to identify such holder as a
selling securityholder in the Shelf Registration Statement, PROVIDED, HOWEVER,
that nothing in this clause (y) shall relieve any such holder of the obligation
to return a completed and signed Notice and Questionnaire to the Company in
accordance with Section 3(d)(iii) hereof. The Company and the Subsidiary
Guarantors further agree to supplement or make amendments to the Shelf
Registration Statement, as and when required by the rules, regulations or
instructions applicable to the registration form used by the Company and the
Subsidiary Guarantors for such Shelf Registration Statement or by the Securities
Act or rules and regulations thereunder for shelf registration, and the Company
shall furnish to each Electing Holder copies of any such supplement or amendment
prior to its being used or promptly following its filing with the Commission.

(c) In the event that (i) the Company and the Subsidiary Guarantors have not
filed the Exchange Registration Statement or Shelf Registration Statement on or
before the date on which such registration statement is required to be filed
pursuant to Section 2(a) or 2(b),

                                       -5-
<Page>

respectively, or (ii) such Exchange Registration Statement or Shelf Registration
Statement has not become effective or been declared effective by the Commission
on or before the date on which such registration statement is required to become
or be declared effective pursuant to Section 2(a) or 2(b), respectively, or
(iii) the Exchange Offer has not been completed within 30 business days after
the initial effective date of the Exchange Registration Statement relating to
the Exchange Offer (if the Exchange Offer is then required to be made) or (iv)
any Exchange Registration Statement or Shelf Registration Statement required by
Section 2(a) or 2(b) hereof is filed and declared effective but shall
thereafter, prior to the time such Exchange Registration Statement or Shelf
Registration Statement is no longer required to be effective pursuant to Section
2(a) or 2(b) either be withdrawn by the Company or the Subsidiary Guarantors or
shall become subject to an effective stop order issued pursuant to Section 8(d)
of the Securities Act suspending the effectiveness of such registration
statement (except as specifically permitted herein) without being succeeded
immediately by an additional registration statement filed and declared effective
(each such event referred to in clauses (i) through (iv), a "Registration
Default" and each period during which a Registration Default has occurred and is
continuing, a "Registration Default Period"), then, as liquidated damages for
such Registration Default, subject to the provisions of Section 9(b), special
interest ("Special Interest"), in addition to the Base Interest, shall accrue,
with respect to the first 90-day period immediately following the occurrence of
the first Registration Default, in an amount equal to $.05 per week per $1,000
principal amount of Securities held by the Holders. The amount of Special
Interest will increase by an additional $.05 per week per $1,000 principal
amount of Securities with respect to each subsequent 90-day period until all
Registration Defaults have been cured, up to a maximum amount of Special
Interest for all Registration Defaults of $.50 per week per $1,000 principal
amount of Securities. Following the cure of all Registration Defaults, the
accrual of Special Interest will cease. All accrued Special Interest through
each record date with respect to the succeeding Interest Payment Date will be
paid by the Company and the Guarantors on each Interest Payment Date (as defined
in the Indenture) to the Global Note Holder (as defined in the Indenture) by
wire transfer of immediately available funds or by federal funds check and to
Holders of Certificated Notes (as defined in the Indenture) by wire transfer to
the accounts specified by them or by mailing checks to their registered
addresses if no such accounts have been specified.

(d) The Company shall take, and shall cause the Subsidiary Guarantors to take,
all actions necessary or advisable to be taken by it to ensure that the
transactions contemplated herein are effected as so contemplated, including all
actions necessary or desirable to register the Subsidiary Guarantees under the
registration statement contemplated in Section 2(a) or 2(b) hereof, as
applicable.

(e) Any reference herein to a registration statement as of any time shall be
deemed to include any document incorporated, or deemed to be incorporated,
therein by reference as of such time and any reference herein to any
post-effective amendment to a registration statement as of any time shall be
deemed to include any document incorporated, or deemed to be incorporated,
therein by reference as of such time.

     3. REGISTRATION PROCEDURES. If the Company and the Subsidiary Guarantors
file a registration statement pursuant to Section 2(a) or Section 2(b), the
following provisions shall apply:

(a) At or before the Effective Time of the Exchange Offer or the Shelf
Registration, as the case may be, the Company shall qualify the Indenture under
the Trust Indenture Act of 1939.

                                       -6-
<Page>

(b) In the event that such qualification would require the appointment of a new
trustee under the Indenture, the Company shall appoint a new trustee thereunder
pursuant to the applicable provisions of the Indenture.

(c) In connection with the obligations of the Company and the Subsidiary
Guarantors with respect to the registration of Exchange Securities as
contemplated by Section 2(a) (the "Exchange Registration"), if applicable, the
Company shall, as soon as practicable (or as otherwise specified):

               (i) prepare and file with the Commission, as soon as practicable
     but no later than 90 days after the Closing Date, an Exchange Registration
     Statement on any form which may be utilized by the Company and which shall
     permit the Exchange Offer and resales of Exchange Securities by
     broker-dealers during the Resale Period to be effected as contemplated by
     Section 2(a), and use its reasonable best efforts to cause such Exchange
     Registration Statement to become effective as soon as practicable
     thereafter, but no later than 180 days after the Closing Date;

               (ii) as soon as practicable prepare and file with the Commission
     such amendments and supplements to such Exchange Registration Statement and
     the prospectus included therein as may be necessary to effect and maintain
     the effectiveness of such Exchange Registration Statement for the periods
     and purposes contemplated in Section 2(a) hereof and as may be required by
     the applicable rules and regulations of the Commission and the instructions
     applicable to the form of such Exchange Registration Statement, and
     promptly provide each broker-dealer holding Exchange Securities with such
     number of copies of the prospectus included therein (as then amended or
     supplemented), in conformity in all material respects with the requirements
     of the Securities Act and the Trust Indenture Act and the rules and
     regulations of the Commission thereunder, as such broker-dealer reasonably
     may request, in a timely manner, prior to the expiration of the Resale
     Period, for use in connection with resales of Exchange Securities;

               (iii) promptly notify each broker-dealer that has requested or
     received copies of the prospectus included in such registration statement,
     and confirm such advice in writing, (A) when such Exchange Registration
     Statement or the prospectus included therein or any prospectus amendment or
     supplement or post-effective amendment has been filed, and, with respect to
     such Exchange Registration Statement or any post-effective amendment, when
     the same has become effective, (B) of any comments by the Commission and by
     the blue sky or securities commissioner or regulator of any state with
     respect thereto or any request by the Commission for amendments or
     supplements to such Exchange Registration Statement or prospectus or for
     additional information, (C) after receipt by the Company of any
     notification with respect to the issuance by the Commission of any stop
     order suspending the effectiveness of such Exchange Registration Statement
     or the initiation or threatening of any proceedings for that purpose, (D)
     if at any time the representations and warranties of the Company
     contemplated by Section 5 cease to be true and correct in all material
     respects, (E) of the receipt by the Company of any notification with
     respect to the suspension of the qualification of the Exchange Securities
     for sale in any jurisdiction or the initiation or threatening of any
     proceeding for such purpose, or (F) at any time during the Resale Period
     when a prospectus is required to be delivered under the Securities Act,
     that such Exchange Registration Statement, prospectus, prospectus amendment
     or supplement or post-effective amendment does not conform in all material
     respects to the applicable

                                       -7-
<Page>

     requirements of the Securities Act and the Trust Indenture Act and the
     rules and regulations of the Commission thereunder or contains an untrue
     statement of a material fact or omits to state any material fact required
     to be stated therein or necessary to make the statements therein not
     misleading in light of the circumstances then existing;

               (iv) in the event that the Company would be required, pursuant to
     Section 3(e)(iii)(F) above, to notify any broker-dealers holding Exchange
     Securities, without undue delay prepare and furnish to each such holder a
     reasonable number of copies of a prospectus supplemented or amended so
     that, as thereafter delivered to purchasers of such Exchange Securities
     during the Resale Period, such prospectus shall conform in all material
     respects to the applicable requirements of the Securities Act and the Trust
     Indenture Act and the rules and regulations of the Commission thereunder
     and shall not contain an untrue statement of a material fact or omit to
     state a material fact required to be stated therein or necessary to make
     the statements therein not misleading in light of the circumstances then
     existing;

               (v) use its reasonable best efforts to obtain the withdrawal of
     any order suspending the effectiveness of such Exchange Registration
     Statement or any post-effective amendment thereto at the earliest
     practicable date;

               (vi) use its reasonable best efforts to (A) register or qualify
     the Exchange Securities under the securities laws or blue sky laws of such
     jurisdictions as are contemplated by Section 2(a) no later than the
     commencement of the Exchange Offer, (B) keep such registrations or
     qualifications in effect and comply with such laws so as to permit the
     continuance of offers, sales and dealings therein in such jurisdictions
     until the expiration of the Resale Period and (C) take any and all other
     actions as may be reasonably necessary or advisable to enable each
     broker-dealer holding Exchange Securities to consummate the disposition
     thereof in such jurisdictions; provided, however, that neither the Company
     nor the Subsidiary Guarantors shall be required for any such purpose to (1)
     qualify as a foreign corporation in any jurisdiction wherein it would not
     otherwise be required to qualify but for the requirements of this Section
     3(c)(vi), (2) consent to general service of process in any such
     jurisdiction or (3) make any changes to its certificate of incorporation or
     by-laws or any agreement between it and its stockholders;

               (vii) use its reasonable best efforts to obtain the consent or
     approval of each governmental agency or authority, whether federal, state
     or local, which may be required to effect the Exchange Registration, the
     Exchange Offer and the offering and sale of Exchange Securities by
     broker-dealers during the Resale Period;

               (viii) provide a CUSIP number for all Exchange Securities, not
     later than the applicable Effective Time;

               (ix) comply with all applicable rules and regulations of the
     Commission, and make generally available to its securityholders as soon as
     practicable but no later than eighteen months after the effective date of
     such Exchange Registration Statement, an earning statement of the Company
     and its subsidiaries complying with Section 11(a) of the Securities Act
     (including, at the option of the Company, Rule 158 thereunder).

(d) In connection with the obligations of the Company and the Subsidiary
Guarantors with respect to the Shelf Registration, if applicable, the Company
shall, as soon as practicable (or as

                                       -8-
<Page>

otherwise specified):

               (i) prepare and file with the Commission, as soon as practicable
     but in any case within the time periods specified in Section 2(b), a Shelf
     Registration Statement on any form which may be utilized by the Company and
     which shall register all of the Registrable Securities for resale by the
     holders thereof in accordance with such method or methods of disposition as
     may be specified by such of the holders as, from time to time, may be
     Electing Holders and use its reasonable best efforts to cause such Shelf
     Registration Statement to become effective as soon as practicable but in
     any case within the time periods specified in Section 2(b);

               (ii) not less than 30 calendar days prior to the Effective Time
     of the Shelf Registration Statement, mail the Notice and Questionnaire to
     the holders of Registrable Securities; provided, that no holder shall be
     entitled to be named as a selling securityholder in the Shelf Registration
     Statement as of the Effective Time, and no holder shall be entitled to use
     the prospectus forming a part thereof for resales of Registrable Securities
     at any time, unless such holder has returned a completed and signed Notice
     and Questionnaire to the Company by the deadline for response set forth
     therein; and provided, further that holders of Registrable Securities shall
     have at least 28 calendar days from the date on which the Notice and
     Questionnaire is first mailed to such holders to return a completed and
     signed Notice and Questionnaire to the Company;

               (iii) after the Effective Time of the Shelf Registration
     Statement, upon the request of any holder of Registrable Securities that is
     not then an Electing Holder, promptly send a Notice and Questionnaire to
     such holder; provided that the Company shall not be required to take any
     action to name such holder as a selling securityholder in the Shelf
     Registration Statement or to enable such holder to use the prospectus
     forming a part thereof for resales of Registrable Securities until such
     holder has returned a completed and signed Notice and Questionnaire to the
     Company;

               (iv) as soon as practicable prepare and file with the Commission
     such amendments and supplements to such Shelf Registration Statement and
     the prospectus included therein as may be necessary to effect and maintain
     the effectiveness of such Shelf Registration Statement for the period
     specified in Section 2(b) hereof and as may be required by the applicable
     rules and regulations of the Commission and the instructions applicable to
     the form of such Shelf Registration Statement, and furnish to the Electing
     Holders copies of any such supplement or amendment simultaneously with or
     prior to its being used or filed with the Commission;

               (v) comply with the provisions of the Securities Act with respect
     to the disposition of all of the Registrable Securities covered by such
     Shelf Registration Statement in accordance with the intended methods of
     disposition by the Electing Holders provided for in such Shelf Registration
     Statement;

               (vi) provide (A) the Electing Holders, (B) the underwriters
     (which term, for purposes of this Exchange and Registration Rights
     Agreement, shall include a person deemed to be an underwriter within the
     meaning of Section 2(a)(11) of the Securities Act), if any, thereof, (C)
     any sales or placement agent therefor, (D) counsel for any such underwriter
     or agent and (E) not more than one counsel for all the Electing Holders the
     opportunity to participate in the preparation of such Shelf Registration
     Statement, each

                                       -9-
<Page>

     prospectus included therein or filed with the Commission and each amendment
     or supplement thereto;

               (vii) for a reasonable period prior to the filing of such Shelf
     Registration Statement, and throughout the period specified in Section
     2(b), make available at reasonable times at the Company's principal place
     of business or such other reasonable place for inspection by the persons
     referred to in Section 3(d)(vi) who shall certify to the Company that they
     have a current intention to sell the Registrable Securities pursuant to the
     Shelf Registration such financial and other information and books and
     records of the Company, and cause the officers, employees, counsel and
     independent certified public accountants of the Company to respond to such
     inquiries, as shall be reasonably necessary, in the judgment of the
     respective counsel referred to in such Section, to conduct a reasonable
     investigation within the meaning of Section 11 of the Securities Act;
     provided, however, that each such party shall be required to maintain in
     confidence and not to disclose to any other person any information or
     records reasonably designated by the Company as being confidential, until
     such time as (A) such information becomes a matter of public record
     (whether by virtue of its inclusion in such registration statement or
     otherwise), or (B) such person shall be required so to disclose such
     information pursuant to a subpoena or order of any court or other
     governmental agency or body having jurisdiction over the matter (subject to
     the requirements of such order, and only after such person shall have given
     the Company prompt prior written notice of such requirement), or (C) such
     information is required to be set forth in such Shelf Registration
     Statement or the prospectus included therein or in an amendment to such
     Shelf Registration Statement or an amendment or supplement to such
     prospectus in order that such Shelf Registration Statement, prospectus,
     amendment or supplement, as the case may be, complies with applicable
     requirements of the federal securities laws and the rules and regulations
     of the Commission and does not contain an untrue statement of a material
     fact or omit to state therein a material fact required to be stated therein
     or necessary to make the statements therein not misleading in light of the
     circumstances then existing;

               (viii) promptly notify each of the Electing Holders, any sales or
     placement agent therefor and any underwriter thereof (which notification
     may be made through any managing underwriter that is a representative of
     such underwriter for such purpose) and confirm such advice in writing, (A)
     when such Shelf Registration Statement or the prospectus included therein
     or any prospectus amendment or supplement or post-effective amendment has
     been filed, and, with respect to such Shelf Registration Statement or any
     post-effective amendment, when the same has become effective, (B) of any
     comments by the Commission and by the blue sky or securities commissioner
     or regulator of any state with respect thereto or any request by the
     Commission for amendments or supplements to such Shelf Registration
     Statement or prospectus or for additional information, (C) after receipt by
     the Company of any notification with respect to the issuance by the
     Commission of any stop order suspending the effectiveness of such Shelf
     Registration Statement or the initiation or threatening of any proceedings
     for that purpose, (D) if at any time the representations and warranties of
     the Company contemplated by Section 3(d)(xvii) or Section 5 cease to be
     true and correct in all material respects, (E) of the receipt by the
     Company of any notification with respect to the suspension of the
     qualification of the Registrable Securities for sale in any jurisdiction or
     the initiation or threatening of any proceeding for such purpose, or (F) if
     at any time when a prospectus is required to be delivered under the
     Securities Act, that such Shelf Registration Statement, prospectus,
     prospectus amendment or supplement

                                      -10-
<Page>

     or post-effective amendment does not conform in all material respects to
     the applicable requirements of the Securities Act and the Trust Indenture
     Act and the rules and regulations of the Commission thereunder or contains
     an untrue statement of a material fact or omits to state any material fact
     required to be stated therein or necessary to make the statements therein
     not misleading in light of the circumstances then existing;

               (ix) use its reasonable best efforts to obtain the withdrawal of
     any order suspending the effectiveness of such registration statement or
     any post-effective amendment thereto at the earliest practicable date;

               (x) if requested by any managing underwriter or underwriters, any
     placement or sales agent or any Electing Holder, promptly incorporate in a
     prospectus supplement or post-effective amendment such information as is
     required by the applicable rules and regulations of the Commission and as
     such managing underwriter or underwriters, such agent or such Electing
     Holder specifies should be included therein relating to the terms of the
     sale of such Registrable Securities, including information with respect to
     the principal amount of Registrable Securities being sold by such Electing
     Holder or agent or to any underwriters, the name and description of such
     Electing Holder, agent or underwriter, the offering price of such
     Registrable Securities and any discount, commission or other compensation
     payable in respect thereof, the purchase price being paid therefor by such
     underwriters and with respect to any other terms of the offering of the
     Registrable Securities to be sold by such Electing Holder or agent or to
     such underwriters; and make all required filings of such prospectus
     supplement or post-effective amendment promptly after notification of the
     matters to be incorporated in such prospectus supplement or post-effective
     amendment;

               (xi) furnish to each Electing Holder, each placement or sales
     agent, if any, therefor, each underwriter, if any, thereof and the
     respective counsel referred to in Section 3(d)(vi) a copy of such Shelf
     Registration Statement, each such amendment and supplement thereto (in each
     case including all exhibits thereto (in the case of an Electing Holder of
     Registrable Securities, upon request) and documents incorporated by
     reference therein) and such number of copies of such Shelf Registration
     Statement (excluding exhibits thereto and documents incorporated by
     reference therein unless specifically so requested by such Electing Holder,
     agent or underwriter, as the case may be) and of the prospectus included in
     such Shelf Registration Statement (including each preliminary prospectus
     and any summary prospectus), in conformity in all material respects with
     the applicable requirements of the Securities Act and the Trust Indenture
     Act and the rules and regulations of the Commission thereunder, and such
     other documents, as such Electing Holder, agent, if any, and underwriter,
     if any, may reasonably request in order to facilitate the offering and
     disposition of the Registrable Securities owned by such Electing Holder,
     offered or sold by such agent or underwritten by such underwriter and to
     permit such Electing Holder, agent and underwriter to satisfy the
     prospectus delivery requirements of the Securities Act; and the Company
     hereby consents to the use of such prospectus (including such preliminary
     and summary prospectus) and any amendment or supplement thereto by each
     such Electing Holder and by any such agent and underwriter, in each case in
     the form most recently provided to such person by the Company, in
     connection with the offering and sale of the Registrable Securities covered
     by the prospectus (including such preliminary and summary prospectus) or
     any supplement or amendment thereto;

               (xii) use reasonable best efforts to (A) register or qualify the
     Registrable

                                      -11-
<Page>

     Securities to be included in such Shelf Registration Statement under such
     securities laws or blue sky laws of such jurisdictions as any Electing
     Holder and each placement or sales agent, if any, therefor and underwriter,
     if any, thereof shall reasonably request, (B) keep such registrations or
     qualifications in effect and comply with such laws so as to permit the
     continuance of offers, sales and dealings therein in such jurisdictions
     during the period the Shelf Registration is required to remain effective
     under Section 2(b) above and for so long as may be necessary to enable any
     such Electing Holder, agent or underwriter to complete its distribution of
     Securities pursuant to such Shelf Registration Statement and (C) take any
     and all other actions as may be reasonably necessary or advisable to enable
     each such Electing Holder, agent, if any, and underwriter, if any, to
     consummate the disposition in such jurisdictions of such Registrable
     Securities; provided, however, that neither the Company nor the Subsidiary
     Guarantors shall be required for any such purpose to (1) qualify as a
     foreign corporation in any jurisdiction wherein it would not otherwise be
     required to qualify but for the requirements of this Section 3(d)(xii), (2)
     consent to general service of process in any such jurisdiction or (3) make
     any changes to its certificate of incorporation or by-laws or any agreement
     between it and its stockholders;

               (xiii) use its reasonable best efforts to obtain the consent or
     approval of each governmental agency or authority, whether federal, state
     or local, which may be required to effect the Shelf Registration or the
     offering or sale in connection therewith or to enable the selling holder or
     holders to offer, or to consummate the disposition of, their Registrable
     Securities;

               (xiv) unless any Registrable Securities shall be in book-entry
     only form, cooperate with the Electing Holders and the managing
     underwriters, if any, to facilitate the timely preparation and delivery of
     certificates representing Registrable Securities to be sold, which
     certificates, if so required by any securities exchange upon which any
     Registrable Securities are listed, shall be penned, lithographed or
     engraved, or produced by any combination of such methods, on steel engraved
     borders, and which certificates shall not bear any restrictive legends;
     and, in the case of an underwritten offering, enable such Registrable
     Securities to be in such denominations and registered in such names as the
     managing underwriters may request at least two business days prior to any
     sale of the Registrable Securities;

               (xv) provide a CUSIP number for all Registrable Securities, not
     later than the applicable Effective Time;

               (xvi) enter into such customary agreements, including if
     requested, an underwriting agreement in customary form, and take such other
     actions in connection therewith as any Electing Holders aggregating at
     least 20% in aggregate principal amount of the Registrable Securities at
     the time outstanding shall request in order to expedite or facilitate the
     disposition of such Registrable Securities, PROVIDED, that the Company
     shall not be required to enter into any such agreement more than two times
     with respect to all the Registrable Securities and may delay entering into
     such agreement until the consummation of any underwritten public offering
     in which the Company shall have then engaged;

               (xvii) whether or not an agreement of the type referred to in
     Section 3(d)(xvi) hereof is entered into and whether or not any portion of
     the offering contemplated by the Shelf Registration is an underwritten
     offering or is made through a

                                      -12-
<Page>

     placement or sales agent or any other entity, (A) make such representations
     and warranties to the Electing Holders and the placement or sales agent, if
     any, therefor and the underwriters, if any, thereof in form, substance and
     scope as are customarily made in connection with an offering of debt
     securities pursuant to any appropriate agreement or to a registration
     statement filed on the form applicable to the Shelf Registration; (B)
     obtain an opinion of counsel to the Company in customary form and covering
     matters of the type customarily covered by such an opinion, as the managing
     underwriters, if any, or as any Electing Holders of at least 20% in
     aggregate principal amount of the Registrable Securities at the time
     outstanding may reasonably request, addressed to such Electing Holder or
     Electing Holders and the placement or sales agent, if any, therefor and the
     underwriters, if any, thereof and dated the effective date of such Shelf
     Registration Statement (and if such Shelf Registration Statement
     contemplates an underwritten offering of a part or all of the Registrable
     Securities, dated the date of the closing under the underwriting agreement
     relating thereto) (it being agreed that the matters to be covered by such
     opinion shall include the due incorporation and good standing of the
     Company and its subsidiaries; the qualification of the Company and its
     subsidiaries to transact business as foreign corporations; the due
     authorization, execution and delivery of the relevant agreement of the type
     referred to in Section 3(d)(xvi) hereof; the due authorization, execution,
     authentication and issuance, and the validity and enforceability, of the
     applicable registrable Securities; the absence of material legal or
     governmental proceedings involving the Company; the absence of a breach by
     the Company or any of its subsidiaries of, or a default under, material
     agreements binding upon the Company or any subsidiary of the Company; the
     absence of governmental approvals required to be obtained in connection
     with the Shelf Registration, the offering and sale of the Registrable
     Securities, this Exchange and Registration Rights Agreement or any
     agreement of the type referred to in Section 3(d)(xvi) hereof, except such
     approvals as may be required under state securities or blue sky laws; the
     material compliance as to form of such Shelf Registration Statement and any
     documents incorporated by reference therein and of the Indenture with the
     requirements of the Securities Act and the Trust Indenture Act and the
     rules and regulations of the Commission thereunder, respectively; and, as
     of the date of the opinion and of the Shelf Registration Statement or most
     recent post-effective amendment thereto, as the case may be, the absence
     from such Shelf Registration Statement and the prospectus included therein,
     as then amended or supplemented, and from the documents incorporated by
     reference therein (in each case other than the financial statements and
     other financial information contained therein) of an untrue statement of a
     material fact or the omission to state therein a material fact necessary to
     make the statements therein not misleading (in the case of such documents,
     in the light of the circumstances existing at the time that such documents
     were filed with the Commission under the Exchange Act)); (C) obtain a "cold
     comfort" letter or letters from the independent certified public
     accountants of the Company addressed to the selling Electing Holders, the
     placement or sales agent, if any, therefor or the underwriters, if any,
     thereof, dated (i) the effective date of such Shelf Registration Statement
     and (ii) the effective date of any prospectus supplement to the prospectus
     included in such Shelf Registration Statement or post-effective amendment
     to such Shelf Registration Statement which includes unaudited or audited
     financial statements as of a date or for a period subsequent to that of the
     latest such statements included in such prospectus (and, if such Shelf
     Registration Statement contemplates an underwritten offering pursuant to
     any prospectus supplement to the prospectus included in such Shelf
     Registration Statement or post-effective amendment to such Shelf
     Registration Statement which includes unaudited or audited financial
     statements as of a date or for a

                                      -13-
<Page>

     period subsequent to that of the latest such statements included in such
     prospectus, dated the date of the closing under the underwriting agreement
     relating thereto), such letter or letters to be in customary form and
     covering such matters of the type customarily covered by letters of such
     type; (D) deliver such documents and certificates, including officers'
     certificates, as may be reasonably requested by any Electing Holders of at
     least 20% in aggregate principal amount of the Registrable Securities at
     the time outstanding or the placement or sales agent, if any, therefor and
     the managing underwriters, if any, thereof to evidence the accuracy of the
     representations and warranties made pursuant to clause (A) above or those
     contained in Section 5(a) hereof and the compliance with or satisfaction of
     any agreements or conditions contained in the underwriting agreement or
     other agreement entered into by the Company or the Subsidiary Guarantors;
     and (E) undertake such obligations relating to expense reimbursement,
     indemnification and contribution as are provided in Section 6 hereof;

               (xviii) notify in writing each holder of Registrable Securities
     of any proposal by the Company to amend or waive any provision of this
     Exchange and Registration Rights Agreement pursuant to Section 9(h) hereof
     and of any amendment or waiver effected pursuant thereto, each of which
     notices shall contain the text of the amendment or waiver proposed or
     effected, as the case may be;

               (xix) in the event that any broker-dealer registered under the
     Exchange Act shall underwrite any Registrable Securities or participate as
     a member of an underwriting syndicate or selling group or "assist in the
     distribution" (within the meaning of the Conduct Rules (the "Conduct Rules)
     of the National Association of Securities Dealers, Inc. ("NASD") or any
     successor thereto, as amended from time to time) thereof, whether as a
     holder of such Registrable Securities or as an underwriter, a placement or
     sales agent or a broker or dealer in respect thereof, or otherwise, assist
     such broker-dealer in complying with the requirements of such Conduct
     Rules, including by (A) if such Conduct Rules shall so require, engaging a
     "qualified independent underwriter" (as defined in such Conduct Rules) to
     participate in the preparation of the Shelf Registration Statement relating
     to such Registrable Securities, to exercise usual standards of due
     diligence in respect thereto and, if any portion of the offering
     contemplated by such Shelf Registration Statement is an underwritten
     offering or is made through a placement or sales agent, to recommend the
     yield of such Registrable Securities, (B) indemnifying any such qualified
     independent underwriter to the extent of the indemnification of
     underwriters provided in Section 6 hereof (or to such other customary
     extent as may be requested by such underwriter), and (C) providing such
     information to such broker-dealer as may be required in order for such
     broker-dealer to comply with the requirements of the Conduct Rules; and

               (xx) comply with all applicable rules and regulations of the
     Commission, and make generally available to its securityholders as soon as
     practicable but in any event not later than eighteen months after the
     effective date of such Shelf Registration Statement, an earning statement
     of the Company and its subsidiaries complying with Section 11(a) of the
     Securities Act (including, at the option of the Company, Rule 158
     thereunder).

(e) In the event that the Company would be required, pursuant to Section
3(d)(viii)(F) above, to notify the Electing Holders, the placement or sales
agent, if any, therefor and the managing underwriters, if any, thereof, the
Company shall without undue delay prepare and furnish to each of the Electing
Holders, to each placement or sales agent, if any, and to each such

                                      -14-
<Page>

underwriter, if any, a reasonable number of copies of a prospectus supplemented
or amended so that, as thereafter delivered to purchasers of Registrable
Securities, such prospectus shall conform in all material respects to the
applicable requirements of the Securities Act and the Trust Indenture Act and
the rules and regulations of the Commission thereunder and shall not contain an
untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein not misleading in
light of the circumstances then existing. Each Electing Holder agrees that upon
receipt of any notice from the Company pursuant to Section 3(d)(viii)(F) hereof,
such Electing Holder shall forthwith discontinue the disposition of Registrable
Securities pursuant to the Shelf Registration Statement applicable to such
Registrable Securities until such Electing Holder shall have received copies of
such amended or supplemented prospectus, and if so directed by the Company, such
Electing Holder shall deliver to the Company (at the Company's expense) all
copies, other than permanent file copies, then in such Electing Holder's
possession of the prospectus covering such Registrable Securities at the time of
receipt of such notice.

(f) In the event of a Shelf Registration, in addition to the information
required to be provided by each Electing Holder in its Notice Questionnaire, the
Company may require such Electing Holder to furnish to the Company such
additional information regarding such Electing Holder and such Electing Holder's
intended method of distribution of Registrable Securities as may be required in
order to comply with the Securities Act. Each such Electing Holder agrees to
notify the Company as promptly as practicable of any inaccuracy or change in
information previously furnished by such Electing Holder to the Company or of
the occurrence of any event in either case as a result of which any prospectus
relating to such Shelf Registration contains or would contain an untrue
statement of a material fact regarding such Electing Holder or such Electing
Holder's intended method of disposition of such Registrable Securities or omits
to state any material fact regarding such Electing Holder or such Electing
Holder's intended method of disposition of such Registrable Securities required
to be stated therein or necessary to make the statements therein not misleading
in light of the circumstances then existing, and promptly to furnish to the
Company any additional information required to correct and update any previously
furnished information or required so that such prospectus shall not contain,
with respect to such Electing Holder or the disposition of such Registrable
Securities, an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein
not misleading in light of the circumstances then existing.

(g) Until the expiration of two years after the Closing Date, the Company will
not, and will not permit any of its "affiliates" (as defined in Rule 144) to,
resell any of the Securities that have been reacquired by any of them except
pursuant to an effective registration statement under the Securities Act.

     4. REGISTRATION EXPENSES. The Company agrees to bear and to pay or cause to
be paid promptly all expenses incident to the Company's performance of or
compliance with this Exchange and Registration Rights Agreement, including (a)
all Commission and any NASD registration, filing and review fees and expenses
including fees and disbursements of counsel for the placement or sales agent or
underwriters in connection with such registration, filing and review, (b) all
fees and expenses in connection with the qualification of the Securities for
offering and sale under the State securities and blue sky laws referred to in
Section 3(d)(xii) hereof and determination of their eligibility for investment
under the laws of such jurisdictions as any managing underwriters or the
Electing Holders may designate, including any fees and disbursements of counsel
for the Electing Holders or underwriters in connection with such qualification
and determination, (c) all expenses relating to the preparation, printing,
production,

                                      -15-
<Page>

distribution and reproduction of each registration statement required to be
filed hereunder, each prospectus included therein or prepared for distribution
pursuant hereto, each amendment or supplement to the foregoing, the expenses of
preparing the Securities for delivery and the expenses of printing or producing
any underwriting agreements, agreements among underwriters, selling agreements
and blue sky or legal investment memoranda and all other documents in connection
with the offering, sale or delivery of Securities to be disposed of (including
certificates representing the Securities), (d) messenger, telephone and delivery
expenses relating to the offering, sale or delivery of Securities and the
preparation of documents referred in clause (c) above, (e) reasonable fees and
expenses of the Trustee under the Indenture, any agent of the Trustee and any
counsel for the Trustee and of any collateral agent or custodian, (f) internal
expenses (including all salaries and expenses of the Company's officers and
employees performing legal or accounting duties), (g) fees, disbursements and
expenses of counsel and independent certified public accountants of the Company
(including the reasonable expenses of any opinions or "cold comfort" letters
required by or incident to such performance and compliance), (h) reasonable
fees, disbursements and expenses of any "qualified independent underwriter"
engaged pursuant to Section 3(d)(xix) hereof, (i) reasonable fees, disbursements
and expenses of one counsel for the Electing Holders retained in connection with
a Shelf Registration, as selected by the Electing Holders of at least a majority
in aggregate principal amount of the Registrable Securities held by Electing
Holders (which counsel shall be reasonably satisfactory to the Company), (j) any
fees charged by securities rating services for rating the Securities, and (k)
reasonable fees, expenses and disbursements of any other persons, including
special experts, retained by the Company in connection with such registration
(collectively, the "Registration Expenses"). To the extent that any Registration
Expenses are incurred, assumed or paid by any holder of Registrable Securities
or any placement or sales agent therefor or underwriter thereof, the Company
shall reimburse such person for the full amount of the Registration Expenses so
incurred, assumed or paid promptly after receipt of a request therefor.
Notwithstanding the foregoing, the holders of the Registrable Securities being
registered shall pay all agency fees and commissions and underwriting discounts
and commissions attributable to the sale of such Registrable Securities and the
fees and disbursements of any counsel or other advisors or experts retained by
such holders (severally or jointly), other than the counsel and experts
specifically referred to above.

     5. REPRESENTATIONS AND WARRANTIES. The Company and the Subsidiary
Guarantors, jointly and severally, represent and warrant to, and agree with,
each Purchaser and each of the holders from time to time of Registrable
Securities that:

(a) Each registration statement covering Registrable Securities and each
prospectus (including any preliminary or summary prospectus) contained therein
or furnished pursuant to Section 3(c) or Section 3(d) hereof and any further
amendments or supplements to any such registration statement or prospectus, when
it becomes effective or is filed with the Commission, as the case may be, and,
in the case of an underwritten offering of Registrable Securities, at the time
of the closing under the underwriting agreement relating thereto, will conform
in all material respects to the requirements of the Securities Act and the Trust
Indenture Act and the rules and regulations of the Commission thereunder and
will not contain an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading; and at all times subsequent to the Effective Time when a
prospectus would be required to be delivered under the Securities Act, other
than from (i) such time as a notice has been given to holders of Registrable
Securities pursuant to Section 3(d)(viii)(F) or Section 3(c)(iii)(F) hereof
until (ii) such time as the Company furnishes an amended or supplemented
prospectus pursuant to Section 3(e) or Section 3(c)(iv) hereof, each such
registration statement, and each prospectus (including any summary prospectus)

                                      -16-
<Page>

contained therein or furnished pursuant to Section 3(d) or Section 3(c) hereof,
as then amended or supplemented, will conform in all material respects to the
requirements of the Securities Act and the Trust Indenture Act and the rules and
regulations of the Commission thereunder and will not contain an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading in the
light of the circumstances then existing; PROVIDED, HOWEVER, that this
representation and warranty shall not apply to any statements or omissions made
in reliance upon and in conformity with information furnished in writing to the
Company by a holder of Registrable Securities expressly for use therein.

(b) Any documents incorporated by reference in any prospectus referred to in
Section 5(a) hereof, when they become or became effective or are or were filed
with the Commission, as the case may be, will conform or conformed in all
material respects to the requirements of the Securities Act or the Exchange Act,
as applicable, and none of such documents will contain or contained an untrue
statement of a material fact or will omit or omitted to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading; PROVIDED, HOWEVER, that this representation and warranty shall not
apply to any statements or omissions made in reliance upon and in conformity
with information furnished in writing to the Company by a holder of Registrable
Securities expressly for use therein.

(c) The compliance by the Company and the Subsidiary Guarantors with all of the
provisions of this Exchange and Registration Rights Agreement and the
consummation of the transactions herein contemplated will not (i) conflict with
or result in a breach of any of the terms or provisions of, or constitute a
default under, any indenture, mortgage, deed of trust, loan agreement or other
agreement or instrument to which the Company, any subsidiary of the Company or
any Subsidiary Guarantor is a party or by which the Company, any subsidiary of
the Company or any Subsidiary Guarantor is bound or to which any of the property
or assets of the Company, any subsidiary of the Company or any Subsidiary
Guarantor is subject, nor (ii) result in any violation of the provisions of the
certificate of incorporation, as amended, or the by-laws of the Company or any
certificate of incorporation or by-laws, certificate of formation or limited
liability company agreement or certificate of limited partnership or limited
partnership agreement of any Subsidiary Guarantor or any statute or any order,
rule or regulation of any court or governmental agency or body having
jurisdiction over the Company, any subsidiary of the Company or any Subsidiary
Guarantor or any of their respective properties, except, in the case of the
clauses (i) and (ii) above, such breaches or violations which would not,
individually or in the aggregate, have any material adverse change in or
affecting the general affairs, management, financial position, shareholders'
equity or results of operations of the Company and the Subsidiary Guarantors
taken as a whole or be reasonably likely to prevent the Company or the
Subsidiary Guarantors from performing their respective obligations hereunder;
and no consent, approval, authorization, order, registration or qualification of
or with any such court or governmental agency or body is required for the
consummation by the Company and the Subsidiary Guarantors of the transactions
contemplated by this Exchange and Registration Rights Agreement, except the
registration under the Securities Act of the Securities, qualification of the
Indenture under the Trust Indenture Act and such consents, approvals,
authorizations, registrations or qualifications as may be required under State
securities or blue sky laws in connection with the offering and distribution of
the Securities.

(d) This Exchange and Registration Rights Agreement has been duly authorized,
executed and delivered by the Company and each Subsidiary Guarantor.

     6. INDEMNIFICATION.

                                      -17-
<Page>

(a) INDEMNIFICATION BY THE COMPANY AND THE SUBSIDIARY GUARANTORS. The Company
and the Subsidiary Guarantors, jointly and severally, will indemnify and hold
harmless each of the holders of Registrable Securities included in an Exchange
Registration Statement, each of the Electing Holders of Registrable Securities
included in a Shelf Registration Statement and each person who participates as a
placement or sales agent or as an underwriter in any offering or sale of such
Registrable Securities against any losses, claims, damages or liabilities, joint
or several, to which such holder, agent or underwriter may become subject under
the Securities Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon an
untrue statement or alleged untrue statement of a material fact contained in any
Exchange Registration Statement or Shelf Registration Statement, as the case may
be, under which such Registrable Securities were registered under the Securities
Act, or any preliminary, final or summary prospectus contained therein or
furnished by the Company to any such holder, Electing Holder, agent or
underwriter, or any amendment or supplement thereto, or arise out of or are
based upon the omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading, and will reimburse such holder, such Electing Holder, such agent and
such underwriter for any legal or other expenses reasonably incurred by them in
connection with investigating or defending any such action or claim as such
expenses are incurred; PROVIDED, HOWEVER, that neither the Company nor any
Subsidiary Guarantor shall be liable to any such person in any such case to the
extent that any such loss, claim, damage or liability arises out of or is based
upon an untrue statement or alleged untrue statement or omission or alleged
omission made in such registration statement, or preliminary, final or summary
prospectus, or amendment or supplement thereto (i) in reliance upon and in
conformity with written information furnished to the Company by such person
expressly for use therein or (ii) distributed by such person in contravention of
a reasonable written direction provided by the Company to such person in advance
of such distribution in accordance with Section 3(e).

(b) INDEMNIFICATION BY THE HOLDERS AND ANY AGENTS AND UNDERWRITERS. The Company
may require, as a condition to including any Registrable Securities in any
registration statement filed pursuant to Section 2(b) hereof and to entering
into any underwriting agreement with respect thereto, that the Company shall
have received an undertaking reasonably satisfactory to it from the Electing
Holder of such Registrable Securities and from each underwriter named in any
such underwriting agreement, severally and not jointly, to (i) indemnify and
hold harmless the Company, the Subsidiary Guarantors, each person who controls
the Company or any of the Subsidiary Guarantors within the meaning of the
Securities Act or Exchange Act and all other holders of Registrable Securities,
against any losses, claims, damages or liabilities to which the Company, the
Subsidiary Guarantors or such other holders of Registrable Securities may become
subject, under the Securities Act or otherwise, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are based
upon an untrue statement or alleged untrue statement of a material fact
contained in such registration statement, or any preliminary, final or summary
prospectus contained therein or furnished by the Company to any such Electing
Holder, agent or underwriter, or any amendment or supplement thereto, or arise
out of or are based upon the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, in each case to the extent, but only to the extent, that
such untrue statement or alleged untrue statement or omission or alleged
omission was made in reliance upon and in conformity with written information
furnished to the Company by such Electing Holder or underwriter expressly for
use therein, and (ii) reimburse the Company and the Subsidiary Guarantors for
any legal or other expenses reasonably incurred by the Company and the
Subsidiary Guarantors in connection with investigating or defending any such
action or

                                      -18-
<Page>

claim as such expenses are incurred; PROVIDED, HOWEVER, that no such Electing
Holder shall be required to undertake liability to any person under this Section
6(b) for any amounts in excess of the dollar amount of the proceeds to be
received by such Electing Holder from the sale of such Electing Holder's
Registrable Securities pursuant to such registration.

(c) NOTICES OF CLAIMS, ETC. Promptly after receipt by an indemnified party under
subsection (a) or (b) above of written notice of the commencement of any action
or proceeding for which indemnification is sought, such indemnified party shall,
if a claim in respect thereof is to be made against an indemnifying party
pursuant to the indemnification provisions of or contemplated by this Section 6,
notify such indemnifying party in writing of the commencement of such action;
but the omission so to notify the indemnifying party shall not relieve it from
any liability which it may have to any indemnified party otherwise than under
the indemnification provisions of or contemplated by Section 6(a) or 6(b)
hereof. In case any such action shall be brought against any indemnified party
and it shall notify an indemnifying party of the commencement thereof, such
indemnifying party shall be entitled to participate therein and, to the extent
that it shall wish, jointly with any other indemnifying party similarly
notified, to assume the defense thereof, with counsel reasonably satisfactory to
such indemnified party (who shall not, except with the consent of the
indemnified party, be counsel to the indemnifying party), and, after notice from
the indemnifying party to such indemnified party of its election so to assume
the defense thereof, such indemnifying party shall not be liable to such
indemnified party for any legal expenses of other counsel or any other expenses,
in each case subsequently incurred by such indemnified party, in connection with
the defense thereof other than reasonable costs of investigation. No
indemnifying party shall, without the written consent of the indemnified party,
effect the settlement or compromise of, or consent to the entry of any judgment
with respect to, any pending or threatened action or claim in respect of which
indemnification or contribution may be sought hereunder (whether or not the
indemnified party is an actual or potential party to such action or claim)
unless such settlement, compromise or judgment (i) includes an unconditional
release of the indemnified party from all liability arising out of such action
or claim and (ii) does not include a statement as to or an admission of fault,
culpability or a failure to act by or on behalf of any indemnified party.

(d) CONTRIBUTION. If for any reason the indemnification provisions contemplated
by Section 6(a) or Section 6(b) are unavailable to or insufficient to hold
harmless an indemnified party in respect of any losses, claims, damages or
liabilities (or actions in respect thereof) referred to therein, then each
indemnifying party shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages or liabilities (or
actions in respect thereof) in such proportion as is appropriate to reflect the
relative fault of the indemnifying party and the indemnified party in connection
with the statements or omissions which resulted in such losses, claims, damages
or liabilities (or actions in respect thereof), as well as any other relevant
equitable considerations. The relative fault of such indemnifying party and
indemnified party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or omission or
alleged omission to state a material fact relates to information supplied by
such indemnifying party or by such indemnified party, and the parties' relative
intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission. The parties hereto agree that it would not be just
and equitable if contributions pursuant to this Section 6(d) were determined by
pro rata allocation (even if the holders or any agents or underwriters or all of
them were treated as one entity for such purpose) or by any other method of
allocation which does not take account of the equitable considerations referred
to in this Section 6(d). The amount paid or payable by an indemnified party as a
result of the losses, claims, damages, or liabilities (or actions in respect
thereof) referred to above shall be deemed to include any legal or other fees or
expenses reasonably

                                      -19-
<Page>

incurred by such indemnified party in connection with investigating or defending
any such action or claim. Notwithstanding the provisions of this Section 6(d),
no holder shall be required to contribute any amount in excess of the amount by
which the dollar amount of the proceeds received by such holder from the sale of
any Registrable Securities (after deducting any fees, discounts and commissions
applicable thereto) exceeds the amount of any damages which such holder has
otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission, and no underwriter shall be required
to contribute any amount in excess of the amount by which the total price at
which the Registrable Securities underwritten by it and distributed to the
public were offered to the public exceeds the amount of any damages which such
underwriter has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. The holders' and any underwriters'
obligations in this Section 6(d) to contribute shall be several in proportion to
the principal amount of Registrable Securities registered or underwritten, as
the case may be, by them and not joint.

(e) The obligations of the Company and the Subsidiary Guarantors under this
Section 6 shall be in addition to any liability which the Company or the
Subsidiary Guarantors may otherwise have and shall extend, upon the same terms
and conditions, to each officer, director and partner of each holder, agent and
underwriter and each person, if any, who controls any holder, agent or
underwriter within the meaning of the Securities Act; and the obligations of the
holders and any agents or underwriters contemplated by this Section 6 shall be
in addition to any liability which the respective holder, agent or underwriter
may otherwise have and shall extend, upon the same terms and conditions, to each
officer and director of the Company or the Subsidiary Guarantors (including any
person who, with his consent, is named in any registration statement as about to
become a director of the Company or the Subsidiary Guarantors) and to each
person, if any, who controls the Company within the meaning of the Securities
Act.

     7. UNDERWRITTEN OFFERINGS.

(a) SELECTION OF UNDERWRITERS. If any of the Registrable Securities covered by
the Shelf Registration are to be sold pursuant to an underwritten offering, the
managing underwriter or underwriters thereof shall be designated by Electing
Holders holding at least a majority in aggregate principal amount of the
Registrable Securities to be included in such offering, provided that such
designated managing underwriter or underwriters is or are reasonably acceptable
to the Company.

(b) PARTICIPATION BY HOLDERS. Each holder of Registrable Securities hereby
agrees with each other such holder that no such holder may participate in any
underwritten offering hereunder unless such holder (i) agrees to sell such
holder's Registrable Securities on the basis provided in any underwriting
arrangements approved by the persons entitled hereunder to approve such
arrangements and (ii) completes and executes all questionnaires, powers of
attorney, indemnities, underwriting agreements and other documents reasonably
required under the terms of such underwriting arrangements.

     8. RULE 144. The Company covenants to the holders of Registrable Securities
that to the extent it shall be required to do so under the Exchange Act, the
Company shall timely file the reports required to be filed by it under the
Exchange Act or the Securities Act (including the reports under Section 13 and
15(d) of the Exchange Act referred to in subparagraph (c)(1) of Rule 144 adopted
by the Commission under the Securities Act) and the rules and regulations

                                      -20-
<Page>

adopted by the Commission thereunder, and shall take such further action as any
holder of Registrable Securities may reasonably request, all to the extent
required from time to time to enable such holder to sell Registrable Securities
without registration under the Securities Act within the limitations of the
exemption provided by Rule 144 under the Securities Act, as such Rule may be
amended from time to time, or any similar or successor rule or regulation
hereafter adopted by the Commission. Upon the request of any holder of
Registrable Securities in connection with that holder's sale pursuant to Rule
144, the Company shall deliver to such holder a written statement as to whether
it has complied with such requirements.

     9. MISCELLANEOUS.

(a) NO INCONSISTENT AGREEMENTS. The Company represents, warrants, covenants and
agrees that it has not granted, and shall not grant, registration rights with
respect to Registrable Securities or any other securities which would be
inconsistent with the terms contained in this Exchange and Registration Rights
Agreement.

(b) SPECIFIC PERFORMANCE. The parties hereto acknowledge that there would be no
adequate remedy at law if the Company fails to perform any of its obligations
hereunder and that the Purchasers and the holders from time to time of the
Registrable Securities may be irreparably harmed by any such failure, and
accordingly agree that the Purchasers and such holders, in addition to any other
remedy to which they may be entitled at law or in equity, shall be entitled to
compel specific performance of the obligations of the Company under this
Exchange and Registration Rights Agreement in accordance with the terms and
conditions of this Exchange and Registration Rights Agreement, in any court of
the United States or any State thereof having jurisdiction.

(c) NOTICES. All notices, requests, claims, demands, waivers and other
communications hereunder shall be in writing and shall be deemed to have been
duly given when delivered by hand, if delivered personally or by courier, or
three days after being deposited in the mail (registered or certified mail,
postage prepaid, return receipt requested) as follows: If to the Company or a
Subsidiary Guarantor, to the Company at 3 Landmark Square, Suite 500, Stamford,
Connecticut 06901, and if to a holder, to the address of such holder set forth
in the security register or other records of the Company, or to such other
address as the Company or any such holder may have furnished to the other in
writing in accordance herewith, except that notices of change of address shall
be effective only upon receipt.

(d) PARTIES IN INTEREST. All the terms and provisions of this Exchange and
Registration Rights Agreement shall be binding upon, shall inure to the benefit
of and shall be enforceable by the parties hereto and the holders from time to
time of the Registrable Securities and the respective successors and assigns of
the parties hereto and such holders. In the event that any transferee of any
holder of Registrable Securities shall acquire Registrable Securities, in any
manner, whether by gift, bequest, purchase, operation of law or otherwise, such
transferee shall, without any further writing or action of any kind, be deemed a
beneficiary hereof for all purposes and such Registrable Securities shall be
held subject to all of the terms of this Exchange and Registration Rights
Agreement, and by taking and holding such Registrable Securities such transferee
shall be entitled to receive the benefits of, and be conclusively deemed to have
agreed to be bound by all of the applicable terms and provisions of this
Exchange and Registration Rights Agreement. If the Company shall so request, any
such successor, assign or transferee shall agree in writing to acquire and hold
the Registrable Securities subject to all of the applicable terms hereof.

                                      -21-
<Page>

(e) SURVIVAL. The respective indemnities, agreements, representations,
warranties and each other provision set forth in this Exchange and Registration
Rights Agreement or made pursuant hereto shall remain in full force and effect
regardless of any investigation (or statement as to the results thereof) made by
or on behalf of any holder of Registrable Securities, any director, officer or
partner of such holder, any agent or underwriter or any director, officer or
partner thereof, or any controlling person of any of the foregoing, and shall
survive delivery of and payment for the Registrable Securities pursuant to the
Purchase Agreement and the transfer and registration of Registrable Securities
by such holder and the consummation of an Exchange Offer.

(f) GOVERNING LAW. This Exchange and Registration Rights Agreement shall be
GOVERNED by and construed in accordance with the laws of the State of New York.

(g) HEADINGS. The descriptive headings of the several Sections and paragraphs of
this Exchange and Registration Rights Agreement are inserted for convenience
only, do not constitute a part of this Exchange and Registration Rights
Agreement and shall not affect in any way the meaning or interpretation of this
Exchange and Registration Rights Agreement.

(h) ENTIRE AGREEMENT; AMENDMENTS. This Exchange and Registration Rights
Agreement and the other writings referred to herein (including the Indenture and
the form of Securities) or delivered pursuant hereto which form a part hereof
contain the entire understanding of the parties with respect to its subject
matter. This Exchange and Registration Rights Agreement supersedes all prior
agreements and understandings between the parties with respect to its subject
matter. This Exchange and Registration Rights Agreement may be amended and the
observance of any term of this Exchange and Registration Rights Agreement may be
waived (either generally or in a particular instance and either retroactively or
prospectively) only by a written instrument duly executed by the Company and the
holders of at least a majority in aggregate principal amount of the Registrable
Securities at the time outstanding. Each holder of any Registrable Securities at
the time or thereafter outstanding shall be bound by any amendment or waiver
effected pursuant to this Section 9(h), whether or not any notice, writing or
marking indicating such amendment or waiver appears on such Registrable
Securities or is delivered to such holder.

(i) INSPECTION. For so long as this Exchange and Registration Rights Agreement
shall be in effect, this Exchange and Registration Rights Agreement and a
complete list of the names and addresses of all the holders of Registrable
Securities shall be made available for inspection and copying on any business
day by any holder of Registrable Securities for proper purposes only (which
shall include any purpose related to the rights of the holders of Registrable
Securities under the Securities, the Indenture and this Agreement) at the
offices of the Company at the address thereof set forth in Section 9(c) above
and at the office of the Trustee under the Indenture.

(j) COUNTERPARTS. This agreement may be executed by the parties in separate
counterparts, each of which shall be deemed to be an original, but all such
respective counterparts shall together constitute one and the same instrument.

                            [SIGNATURE PAGES FOLLOW]

                                      -22-
<Page>

     If the foregoing is in accordance with your understanding, please sign and
return to us eight counterparts hereof, and upon the acceptance hereof by you,
on behalf of each of the Purchasers, this letter and such acceptance hereof
shall constitute a binding agreement among each of the Purchasers, the
Subsidiary Guarantors and the Company. It is understood that your acceptance of
this letter on behalf of each of the Purchasers is pursuant to the authority set
forth in a form of Agreement among Purchasers, the form of which shall be
submitted to the Company for examination upon request, but without warranty on
your part as to the authority of the signers thereof.

                                    Very truly yours,

                                    Asbury Automotive Group, Inc.

                                    By:    /s/  THOMAS F. GILMAN
                                           -------------------------------------
                                           Name:   Thomas F. Gilman
                                           Title:  Chief Financial Officer

                                    Asbury Automotive Group Holdings, Inc.
                                    Asbury Automotive Group L.L.C.
                                    Asbury Automotive Management L.L.C.
                                    Asbury Automotive Financial Services, Inc.
                                    Asbury Automotive Used Car Centers L.L.C.
                                    Asbury Automotive Used Car Centers Texas
                                       GP L.L.C.
                                    Asbury Automotive Used Car Centers Texas
                                       L.P.
                                    Asbury Automotive Arkansas L.L.C.
                                    Asbury Automotive Arkansas Dealership
                                       Holdings L.L.C.
                                    NP FLM L.L.C.
                                    NP VKW L.L.C.
                                    Prestige TOY L.L.C.
                                    Premier NSN L.L.C.
                                    Premier LM L.L.C.
                                    Hope FLM L.L.C.
                                    NP MZD L.L.C.
                                    Prestige Bay L.L.C.
                                    Premier PON L.L.C.
                                    Hope CPD L.L.C.
                                    TXK L.L.C.
                                    TXK FRD L.P.
                                    TXK CPD L.P.
                                    Escude NN L.L.C.
                                    Escude T L.L.C.
                                    Escude M L.L.C.
                                    Escude NS L.L.C.
                                    Escude D L.LC.
                                    Escude MO L.L.C.
                                    Asbury MS Metro L.L.C.
                                    Asbury MS Gray-Daniels L.L.C.
                                    Asbury Automotive Atlanta LLC

<Page>

                                    Asbury Atlanta HON LLC
                                    Asbury Atlanta Chevrolet LLC
                                    Asbury Atlanta LEX, LLC
                                    Asbury Atlanta AC LLC
                                    Atlanta Real Estate Holdings LLC
                                    Asbury Atlanta Jaguar L.L.C.
                                    Spectrum Insurance Services L.L.C.
                                    Asbury Atlanta AU L.L.C.
                                    Asbury Atlanta Infiniti L.L.C.
                                    Asbury Automotive Jacksonville GP, L.L.C.
                                    Asbury Automotive Jacksonville, L.P.
                                    Asbury Jax Holdings, L.P.
                                    Asbury Jax Management L.L.C.
                                    Coggin Automotive Corp
                                    CP-GMC Motors Ltd
                                    CH Motors Ltd
                                    CN Motors Ltd
                                    CFP Motors Ltd
                                    Avenues Motors Ltd
                                    CHO Partnership Ltd
                                    ANL, L.P.
                                    Bayway Financial Services, L.P.
                                    Coggin Management, L.P.
                                    C&O Properties Ltd
                                    Asbury Automotive Central Florida, L.L.C.
                                    CK Chevrolet, L.L.C.
                                    CK Motors, L.L.C.
                                    Asbury Automotive Deland, L.L.C.
                                    AF Motors, L.L.C.
                                    ALM Motors, L.L.C.
                                    Asbury Deland Imports 2 LLC
                                    Asbury Deland Imports LLC
                                    Coggin Cars L.L.C.
                                    Coggin Chevrolet L.L.C.
                                    CSA Imports L.L.C.
                                    Coggin Orlando Properties, L.L.C.
                                    KP Motors L.L.C.
                                    HFP Motors L.L.C.
                                    Asbury Automotive Mississippi L.L.C.
                                    Asbury MS Wimber L.L.C.
                                    Crown GPG L.L.C.
                                    Crown GBM L.L.C.
                                    Crown GAU L.L.C.
                                    Crown GKI L.L.C.
                                    Crown GMI L.L.C.
                                    Crown GDO L.L.C.
                                    Crown GNI L.L.C.
                                    Crown GHO L.L.C.
                                    Crown GAC L.L.C.
                                    Crown CHH L.L.C.
                                    Crown CHV L.L.C.

<Page>

                                    Crown RIS L.L.C.
                                    Crown RIA L.L.C.
                                    Crown RIB L.L.C.
                                    Crown Motorcar Company L.L.C.
                                    Crown GVO L.L.C.
                                    Crown FFO L.L.C.
                                    Asbury Automotive North Carolina L.L.C.
                                    Asbury Automotive North Carolina Management
                                       L.L.C.
                                    Asbury  Automotive  North Carolina Real
                                       Estate Holdings L.L.C.
                                    Asbury  Automotive North Carolina
                                       Dealership  Holdings L.L.C.
                                    Crown Raleigh L.L.C.
                                    Crown Fordham L.L.C.
                                    Camco Finance L.L.C.
                                    Camco Finance II L.L.C.
                                    Crown FFO Holdings L.L.C.
                                    Crown RPG L.L.C.
                                    Crown FDO L.L.C.
                                    Crown Acura/Nissan L.L.C.
                                    Crown Battleground, LLC
                                    Crown Dodge, LLC
                                    Crown Honda, LLC
                                    Crown Honda-Volvo, LLC
                                    Crown Mitsubishi, LLC
                                    Crown Royal Pontiac, LLC
                                    RER Properties, LLC
                                    RWIJ Properties, LLC
                                    Thomason FRD LLC
                                    Thomason HON LLC
                                    Thomason NISS LLC
                                    Thomason HUND LLC
                                    Thomason MAZ LLC
                                    Thomason ZUK LLC
                                    Thomason TY LLC
                                    Thomason SUB L.L.C.
                                    Thomason DAM LLC
                                    Damerow Ford Co
                                    Asbury Automotive Oregon LLC
                                    Asbury Automotive Oregon Management LLC
                                    Thomason Auto Credit Northwest, Inc.
                                    Thomason on Canyon, L.L.C.
                                    Thomason Outfitters L.L.C.
                                    Thomason SUZU L.L.C.
                                    Asbury Automotive St. Louis L.L.C.
                                    Asbury St. Louis LEX L.L.C.
                                    Asbury St. Louis Cadillac L.L.C.
                                    Asbury St. Louis Gen L.L.C.
                                    Asbury Automotive Tampa GP L.L.C.
                                    Asbury Automotive Tampa, L.P.

<Page>

                                    Asbury Tampa Management L.L.C.
                                    Tampa LM L.P.
                                    Tampa Hund L.P.
                                    Tampa KIA L.P.
                                    Tampa Mit L.P.
                                    Tampa Suzu L.P.
                                    WMZ Motors L.P.
                                    WMZ Brandon Motors L.P.
                                    WTY Motors L.P.
                                    Asbury Automotive Brandon L.P.
                                    Precision Enterprises Tampa, Inc.
                                    Precision Nissan, Inc.
                                    Precision Computer Services, Inc.
                                    Precision Motorcars, Inc.
                                    Precision Infiniti, Inc.
                                    Dealer Profit Systems L.L.C.
                                    McDavid Plano - Acra LP
                                    McDavid Houston - Kia LP
                                    McDavid Austin - Acra LP
                                    McDavid Irving - Hon LP
                                    McDavid Irving - PB&G LP
                                    McDavid Houston - Niss LP
                                    Plano Lincoln-Mercury, Inc
                                    McDavid Irving-Zuk, LP
                                    McDavid Houston-Hon, LP
                                    McDavid Houston-Olds, LP
                                    Asbury Texas Management, LLC
                                    McDavid Grande, LP
                                    McDavid Outfitters, LP
                                    McDavid Auction, LP
                                    Asbury Automotive Texas, LLC
                                    Asbury Automotive Texas Holdings, LLC
                                    McDavid Communications, L.P.
                                    McDavid Frisco-Hon, L.P.

                                    By:    /s/ THOMAS F. GILMAN
                                           -------------------------------------
                                           Name:  Thomas F. Gilman
                                           Title: Attorney-In-Fact

Accepted as of the date hereof:
Goldman, Sachs & Co.
Salomon Smith Barney Inc.

By:    /s/ GOLDMAN, SACHS & CO.
       ------------------------
        (Goldman, Sachs & Co.)

<Page>

                                                                       EXHIBIT A

                          ASBURY AUTOMOTIVE GROUP, INC.

                         INSTRUCTION TO DTC PARTICIPANTS

                                (DATE OF MAILING)

                     URGENT - IMMEDIATE ATTENTION REQUESTED

                         DEADLINE FOR RESPONSE: [DATE]*

The Depository Trust Company ("DTC") has identified you as a DTC Participant
through which beneficial interests in the Asbury Automotive Group, Inc. (the
"Company") $250,000,000 9% Senior Subordinated Notes due 2012 (the "Securities")
are held.

The Company is in the process of registering the Securities under the Securities
Act of 1933 for resale by the beneficial owners thereof. In order to have their
Securities included in the registration statement, beneficial owners must
complete and return the enclosed Notice of Registration Statement and Selling
Securityholder Questionnaire.

IT IS IMPORTANT THAT BENEFICIAL OWNERS OF THE SECURITIES RECEIVE A COPY OF THE
ENCLOSED MATERIALS AS SOON AS POSSIBLE as their rights to have the Securities
included in the registration statement depend upon their returning the Notice
and Questionnaire by [DEADLINE FOR RESPONSE]. Please forward a copy of the
enclosed documents to each beneficial owner that holds interests in the
Securities through you. If you require more copies of the enclosed materials or
have any questions pertaining to this matter, please contact Asbury Automotive
Group, Inc., 3 Landmark Square, Suite 500, Stamford, Connecticut 06901,
(203) 356-4400.

ASBURY AUTOMOTIVE GROUP, INC.

Notice of Registration Statement
and
SELLING SECURITYHOLDER QUESTIONNAIRE

(Date)

Reference is hereby made to the Exchange and Registration Rights Agreement (the
"Exchange and Registration Rights Agreement") between Asbury Automotive Group,
Inc. (the "Company") and the Purchasers named therein. Pursuant to the Exchange
and Registration Rights Agreement, the Company has filed with the United States
Securities and Exchange Commission (the "Commission") a registration statement
on Form [__] (the "Shelf Registration Statement") for the registration and
resale under Rule 415 of the Securities Act of 1933, as amended (the "Securities
Act"), of the Company's $250,000,000 9% Senior Subordinated Notes due 2012 (the
"Securities"). A copy of the Exchange and Registration Rights Agreement is

----------
* [NOT LESS THAN 28 CALENDAR DAYS FROM DATE OF MAILING.]

                                       A-1
<Page>

attached hereto. All capitalized terms not otherwise defined herein shall have
the meanings ascribed thereto in the Exchange and Registration Rights Agreement.

Each beneficial owner of Registrable Securities (as defined below) is entitled
to have the Registrable Securities beneficially owned by it included in the
Shelf Registration Statement. In order to have Registrable Securities included
in the Shelf Registration Statement, this Notice of Registration Statement and
Selling Securityholder Questionnaire ("Notice and Questionnaire") must be
completed, executed and delivered to the Company's counsel at the address set
forth herein for receipt ON OR BEFORE [DEADLINE FOR RESPONSE]. Beneficial owners
of Registrable Securities who do not complete, execute and return this Notice
and Questionnaire by such date (i) will not be named as selling securityholders
in the Shelf Registration Statement and (ii) may not use the Prospectus forming
a part thereof for resales of Registrable Securities.

Certain legal consequences arise from being named as a selling securityholder in
the Shelf Registration Statement and related Prospectus. Accordingly, holders
and beneficial owners of Registrable Securities are advised to consult their own
securities law counsel regarding the consequences of being named or not being
named as a selling securityholder in the Shelf Registration Statement and
related Prospectus.

The term "REGISTRABLE SECURITIES" is defined in the Exchange and Registration
Rights Agreement.

                                       A-2
<Page>

                                    ELECTION

The undersigned holder (the "Selling Securityholder") of Registrable Securities
hereby elects to include in the Shelf Registration Statement the Registrable
Securities beneficially owned by it and listed below in Item (3). The
undersigned, by signing and returning this Notice and Questionnaire, agrees to
be bound with respect to such Registrable Securities by the terms and conditions
of this Notice and Questionnaire and the Exchange and Registration Rights
Agreement, including, without limitation, Section 6 of the Exchange and
Registration Rights Agreement, as if the undersigned Selling Securityholder were
an original party thereto.

Upon any sale of Registrable Securities pursuant to the Shelf Registration
Statement, the Selling Securityholder will be required to deliver to the Company
and Trustee the Notice of Transfer set forth in Appendix A to the Prospectus and
as Exhibit B to the Exchange and Registration Rights Agreement.

The Selling Securityholder hereby provides the following information to the
Company and represents and warrants that such information is accurate and
complete:

                                       A-3
<Page>

                                  QUESTIONNAIRE

(1)  (a)   Full Legal Name of Selling Securityholder:

           _____________________________________________________________________

     (b)   Full Legal Name of Registered Holder (if not the same as in (a)
           above) of Registrable Securities Listed in Item (3) below:

           _____________________________________________________________________

     (c)   Full Legal Name of DTC Participant (if applicable and if not the
           same as (b) above) Through Which Registrable Securities Listed in
           Item (3) below are Held:

           _____________________________________________________________________

(2)        Address for Notices to Selling Securityholder:

                                    -----------------------------------

                                    -----------------------------------

                                    -----------------------------------

           Telephone:
                                    -----------------------------------

           Fax:
                                    -----------------------------------

           Contact Person:
                                    -----------------------------------

(3)        Beneficial Ownership of Securities:

           EXCEPT AS SET FORTH BELOW IN THIS ITEM (3), THE UNDERSIGNED DOES NOT
           BENEFICIALLY OWN ANY SECURITIES.

     (a)   Principal amount of Registrable Securities beneficially owned:_______
           CUSIP No(s). of such Registrable Securities:_________________________

     (b)   Principal amount of Securities other than Registrable Securities
           beneficially owned:__________________________________________________
           CUSIP No(s). of such other Securities:_______________________________

     (c)   Principal amount of Registrable Securities which the undersigned
           wishes to be included in the Shelf Registration Statement:___________
           CUSIP No(s). of such Registrable Securities to be included in the
           Shelf Registration Statement:________________________________________

(4)        Beneficial Ownership of Other Securities of the Company:

           EXCEPT AS SET FORTH BELOW IN THIS ITEM (4), THE UNDERSIGNED SELLING
           SECURITYHOLDER IS NOT THE BENEFICIAL OR REGISTERED OWNER OF ANY
           OTHER SECURITIES OF THE COMPANY, OTHER THAN THE SECURITIES LISTED
           ABOVE IN ITEM (3).

           State any exceptions here:

                                       A-4
<Page>

(5)        Relationships with the Company:

           EXCEPT AS SET FORTH BELOW, NEITHER THE SELLING SECURITYHOLDER NOR ANY
           OF ITS AFFILIATES, OFFICERS, DIRECTORS OR PRINCIPAL EQUITY HOLDERS
           (5% OR MORE) HAS HELD ANY POSITION OR OFFICE OR HAS HAD ANY OTHER
           MATERIAL RELATIONSHIP WITH THE COMPANY (OR ITS PREDECESSORS OR
           AFFILIATES) DURING THE PAST THREE YEARS.

           State any exceptions here:

(6)        Plan of Distribution:

           EXCEPT AS SET FORTH BELOW, THE UNDERSIGNED SELLING SECURITYHOLDER
           INTENDS TO DISTRIBUTE THE REGISTRABLE SECURITIES LISTED ABOVE IN
           ITEM (3) ONLY AS FOLLOWS (IF AT ALL): SUCH REGISTRABLE SECURITIES
           MAY BE SOLD FROM TIME TO TIME DIRECTLY BY THE UNDERSIGNED SELLING
           SECURITYHOLDER OR, ALTERNATIVELY, THROUGH UNDERWRITERS,
           BROKER-DEALERS OR AGENTS. SUCH REGISTRABLE SECURITIES MAY BE SOLD IN
           ONE OR MORE TRANSACTIONS AT FIXED PRICES, AT PREVAILING MARKET
           PRICES AT THE TIME OF SALE, AT VARYING PRICES DETERMINED AT THE TIME
           OF SALE, OR AT NEGOTIATED PRICES. SUCH SALES MAY BE EFFECTED IN
           TRANSACTIONS (WHICH MAY INVOLVE CROSSES OR BLOCK TRANSACTIONS) (i)
           ON ANY NATIONAL SECURITIES EXCHANGE OR QUOTATION SERVICE ON WHICH
           THE REGISTERED SECURITIES MAY BE LISTED OR QUOTED AT THE TIME OF
           SALE, (ii) IN THE OVER-THE-COUNTER MARKET, (iii) IN TRANSACTIONS
           OTHERWISE THAN ON SUCH EXCHANGES OR SERVICES OR IN THE
           OVER-THE-COUNTER MARKET, OR (iv) THROUGH THE WRITING OF OPTIONS. IN
           CONNECTION WITH SALES OF THE REGISTRABLE SECURITIES OR OTHERWISE,
           THE SELLING SECURITYHOLDER MAY ENTER INTO HEDGING TRANSACTIONS WITH
           BROKER-DEALERS, WHICH MAY IN TURN ENGAGE IN SHORT SALES OF THE
           REGISTRABLE SECURITIES IN THE COURSE OF HEDGING THE POSITIONS THEY
           ASSUME. THE SELLING SECURITYHOLDER MAY ALSO SELL REGISTRABLE
           SECURITIES SHORT AND DELIVER REGISTRABLE SECURITIES TO CLOSE OUT
           SUCH SHORT POSITIONS, OR LOAN OR PLEDGE REGISTRABLE SECURITIES TO
           BROKER-DEALERS THAT IN TURN MAY SELL SUCH SECURITIES.

           State any exceptions here:

By signing below, the Selling Securityholder acknowledges that it understands
its obligation to comply, and agrees that it will comply, with the provisions of
the Exchange Act and the rules and regulations thereunder, particularly
Regulation M.

In the event that the Selling Securityholder transfers all or any portion of the
Registrable Securities listed in Item (3) above after the date on which such
information is provided to the Company, the Selling Securityholder agrees to
notify the transferee(s) at the time of the transfer of its rights and
obligations under this Notice and Questionnaire and the Exchange and
Registration Rights Agreement.

By signing below, the Selling Securityholder consents to the disclosure of the
information contained herein in its answers to Items (1) through (6) above and
the inclusion of such information in the Shelf Registration Statement and
related Prospectus. The Selling Securityholder understands that such information
will be relied upon by the Company in connection with the preparation of the
Shelf Registration Statement and related Prospectus.

                                       A-5
<Page>

In accordance with the Selling Securityholder's obligation under Section 3(d) of
the Exchange and Registration Rights Agreement to provide such information as
may be required by law for inclusion in the Shelf Registration Statement, the
Selling Securityholder agrees to promptly notify the Company of any inaccuracies
or changes in the information provided herein which may occur subsequent to the
date hereof at any time while the Shelf Registration Statement remains in
effect. All notices hereunder and pursuant to the Exchange and Registration
Rights Agreement shall be made in writing, by hand-delivery, first-class mail,
or air courier guaranteeing overnight delivery as follows:

                  (i) To the Company and the Subsidiary Guarantors:

                                                    Asbury Automotive Group Inc.
                                                    3 Landmark Square
                                                    Stamford, Connecticut 06901
                                                    [ATTENTION:]

                  (ii)  With a copy to:

                                                    -------------------------

                                                    -------------------------

                                                    -------------------------

                                                    -------------------------

                                                    -------------------------

Once this Notice and Questionnaire is executed by the Selling Securityholder and
received by the Company's counsel, the terms of this Notice and Questionnaire,
and the representations and warranties contained herein, shall be binding on,
shall inure to the benefit of and shall be enforceable by the respective
successors, heirs, personal representatives, and assigns of the Company and the
Selling Securityholder (with respect to the Registrable Securities beneficially
owned by such Selling Securityholder and listed in Item (3) above. This
Agreement shall be governed in all respects by the laws of the State of New
York.

                                       A-6
<Page>

IN WITNESS WHEREOF, the undersigned, by authority duly given, has caused this
Notice and Questionnaire to be executed and delivered either in person or by its
duly authorized agent.

Dated:
        ------------------

            --------------------------------------------------------------
            Selling Securityholder

            (Print/type full legal name of beneficial owner of Registrable
               Securities)

            By:
               -----------------------------------------------------------------
            Name:
            Title:

PLEASE RETURN THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE FOR RECEIPT ON
OR BEFORE [DEADLINE FOR RESPONSE] TO THE COMPANY'S COUNSEL AT:

                                            Cravath, Swaine & Moore
                                            ---------------------------------
                                            825 Eighth Avenue
                                            ---------------------------------
                                            New York, NY  10019
                                            ---------------------------------
                                            Attention:
                                            ---------------------------------

                                            ---------------------------------

                                       A-7
<Page>

                                                                       EXHIBIT B

              NOTICE OF TRANSFER PURSUANT TO REGISTRATION STATEMENT

The Bank of New York
Asbury Automotive Group, Inc.
c/o The Bank of New York
101 Barclay Street
New York, NY 10286

Attention:  Trust Officer

         Re:   Asbury Automotive Group, Inc. (the "Company")
               $250,000,000 9% Senior Subordinated Notes due 2012

Dear Sirs:

Please be advised that _____________________ has transferred $________________
aggregate principal amount of the above-referenced Notes pursuant to an
effective Registration Statement on Form [ ] (File No. 333-________) filed by
the Company.

We hereby certify that the prospectus delivery requirements, if any, of the
Securities Act of 1933, as amended, have been satisfied and that the above-named
beneficial owner of the Notes is named as a "Selling Holder" in the Prospectus
dated [ ], 2002 or in supplements thereto, and that the aggregate principal
amount of the Notes transferred are the Notes listed in such Prospectus opposite
such owner's name.

Dated:

                                              Very truly yours,

                                                     ------------------------
                                                     (Name)

                                              By:
                                                     ------------------------
                                                     (Authorized Signature)

                                       B-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00040-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00040-of-00352.parquet"}]]