Document:

Unassociated Document

     

    MAKE
GOOD ESCROW AGREEMENT

     

    This Make Good Escrow Agreement (the
"Make Good Agreement"),
dated effective as of December _______, 2010, is entered into by and among the
following parties:

     

    
      	
            	
              (1)

            	
              Longhai
      Steel Inc., a Nevada corporation (the "Company"),

            

    

     

    
      	
            	
              (2)

            	
              Merry
      Success Limited, a BVI company (the “Make Good
      Pledgor”),

            

    

     

    
      	
            	
              (3)

            	
              Mr.
      Chaojun Wang, the Chief Executive Officer and Chairman of the Company
      (“Mr.
      Wang”),

            

    

     

    
      	
            	
              (4)

            	
              Mr.
      Jinhai Guo, the sole shareholder of the Make Good Pledgor (("Mr. Guo", collectively
      with Mr. Wang,
      each a
      "Guarantor", and collectively, the
      "Guarantors"),

            

    

     

    
      	
            	
              (5)

            	
              Ladenburg
      Thalmann & Co. Inc. as Investor agent (“Investor
      Agent”)

            

    

     

    
      	
            	
              (6)

            	
              Escrow,
      LLC, as escrow agent ("Escrow Agent"),
      and

            

    

     

    
      	
            	
              (7)

            	
              Pacific
      Stock Transfer Company, or such other entity hereafter retained by the
      Company as its stock transfer agent as specified in a writing from the
      Company to the Escrow Agent, as transfer agent,  (“Transfer
      Agent”).

            

    

     

     

    BACKGROUND

     

    The Investor Agent and the Company have
entered into an Underwriting Agreement, dated ______, 2010 (the "Underwriting Agreement"), for
the Company's underwriting offering (the "Offering") of
securities.  As an inducement to investors (the “Investors”) to participate in
the Offering and as set forth in the Underwriting Agreement, the Make Good
Pledgor has agreed to place certain shares of the Company’s common stock, par
value $0.001 per share (the “Common Stock”) owned by him
into escrow for the benefit of the Investors in the event the Company fails to
satisfy certain conditions. Mr. Guo is the sole shareholder of the Make Good
Pledgor, and Mr. Wang entered into a call option agreement with Mr. Guo on March
18, 2010, pursuant to which Mr. Wang was granted an option to acquire all of the
equity interests of the Make Good Pledgor for fixed consideration within the
next three years. Pursuant to the requirements of the Underwriting Agreement,
each of Mr. Guo being the sole shareholder of the Make Good Pledgor, and Mr.
Wang, being the beneficial owner of the Make Good Pledgor, has agreed to act as
a guarantor pursuant to the terms and conditions of this Make Good Agreement to
guarantee the Make Good Pledgor’s performance of this Make Good
Agreement.

     

    Pursuant to the requirements of the
Underwriting Agreement, the Company and Make Good Pledgor have agreed to
establish an escrow on the terms and conditions set forth in this Make Good
Agreement.  The Escrow Agent has agreed to act as escrow agent
pursuant to the terms and conditions of this Make Good Agreement.

     

    
      
        
        

      

      
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    All capitalized terms used but not
defined herein which are defined in the Underwriting Agreement shall have the
respective meanings given to such terms in the Underwriting
Agreement.

     

    AGREEMENT

     

    NOW, THEREFORE, in consideration of the
mutual promises of the parties and the terms and conditions hereof, the parties
hereby agree as follows:

     

    1. Appointment of Escrow
Agent. The Make Good Pledgor and the Company hereby appoint Escrow Agent
to act as Escrow Agent in accordance with the terms and conditions set forth in
this Make Good Agreement, and Escrow Agent hereby accepts such appointment and
agrees to act as Escrow Agent in accordance with such terms and
conditions.

     

    2. Establishment of
Escrow.

     

    (i)
Effective as of the execution of this Make Good Agreement, the Make Good Pledgor
has instructed the Transfer Agent to deliver the Escrow Shares (as defined in
this Section 2) as provided herein, and the Escrow Agent acknowledges such
instruction and agrees to perform the actions set forth in this Section
2.  As of the date hereof, the Transfer Agent will note the
limitations on the Escrow Shares described in this Section 2.  Within
fifteen (15) Trading Days following the date hereof, the Transfer Agent shall
deliver, or cause to be delivered, to the Escrow Agent certificates evidencing
an aggregate of 2,550,165 shares of the Company’s
Common Stock, as equitably
adjusted for any stock splits, stock combinations, stock dividends or similar
transactions (the "Escrow Shares").
..  The Make Good Pledgor hereby irrevocably agrees that, other than in
accordance with this Make Good Agreement, the Make Good Pledgor will not offer,
pledge, sell, contract to sell, sell any option or contract to purchase,
purchase any option or contract to sell, grant any option, right or warrant to
purchase or otherwise transfer or dispose of, directly or indirectly, or
announce the offering of any of the Escrow Shares (including any securities
convertible into, or exchangeable for, or representing the rights to receive
Escrow Shares).  In furtherance thereof, the Company has advised the
Transfer Agent, and the Transfer agent agrees, (x) to place a stop order on all
Escrow Shares which shall expire on the date the Escrow Shares are cancelled or
returned to the Make Good Pledgor, (y) not to process any attempts by any Make
Good Pledgor to resell or transfer any Escrow Shares before the date the Escrow
Shares should be cancelled or returned to the Make Good Pledgor, or otherwise in
violation of this Make Good Agreement.  The Company shall notify the
Investor Agent as soon as the Escrow Shares have been deposited with the Escrow
Agent.  Following delivery of the Escrow Shares, the Make Good Pledgor
shall not be required to deliver any additional securities or other property to
the Escrow Agent or the Investors under any circumstances unless the Make Good
Pledgor otherwise agrees in a separate written instrument.

     

    (ii) The
Guarantors each hereby, jointly and severally, provide to the Investor Agent a
guarantee to secure the Make Good Pledgor’s performance of its obligations under
this Make Good Agreement, indemnify and hold harmless the Investor Agent and any
of its principals, partners, agents, employees and affiliates from and against any
expenses, including reasonable attorneys' fees and disbursements, damages or
losses suffered by the Investor Agent in connection with any claim or demand,
which, in any way, directly or indirectly, arises out of or relates to this Make
Good Agreement or the obligations of the Make Good Pledgor hereunder.

     

    
      
        
        

      

      
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    3. Representations of Make Good Pledgor
and the
Company and the
Guarantors.  The Make Good
Pledgor (as to itself and its Escrowed Shares) and the Company (as to itself)
and each Guarantor (as to himself and the Make Good Pledgor), severally but not
jointly, hereby represents and warrants to the Investor Agent as
follows:

     

    (i) All
of the Escrow Shares are validly issued, fully paid and nonassessable shares of
the Company, and free and clear of all Liens.

     

    (ii) Performance of this Make
Good Agreement and compliance with the provisions hereof will not violate any
provision of any applicable law and will not conflict with or result in any
breach of any of the terms, conditions or provisions of, or constitute a default
under, or result in the creation or imposition of any Lien upon any of the
properties or assets of Make Good Pledgor pursuant to the terms of any
indenture, mortgage, deed of trust or other agreement or instrument binding upon
Make Good Pledgor or such properties or assets, other than such breaches,
defaults or Liens which would not have a material adverse effect taken as a
whole.

     

    (iii) The
Make Good Pledgor has carefully considered and understands its obligations and
rights under this Make Good Agreement, and in furtherance thereof (x) has
consulted with its legal and other advisors with respect thereto and (y) hereby
forever waives and agrees that it may not assert any equitable defenses in any
Proceeding involving the Escrow Shares.

     

    4. Make Good
Shares.

     

    a.           In
the event that any of the following occurs: 1) the After Tax Net Income (as
defined below) reported in the Annual Report of the Company for the fiscal year
ending December 31, 2011, as filed with the Securities and Exchange Commission
(the “Commission”) on Form 10-K (or such other form appropriate for such purpose
as promulgated by the Commission) (the “2010 Annual Report”) is less
than $14,560,000 (the “2011
Guaranteed ATNI”); 2) the
Company fails to timely file its Annual Report on Form 10-K or Quarterly Report
on Form 10-Q with the Commission in the one-year period following the
commencement of the Offering; or 3) trading of the Company’s securities has been
halted by the Nasdaq Stock Market LLC in the one-year period following the
commencement of the Offering, the Escrow Agent (on behalf of the Make
Good Pledgor) will have the Escrow
Shares cancelled by the Transfer Agent.

     

    For
purposes hereof, “After Tax Net
Income” shall mean the
Company’s operating income after taxes for the fiscal year ending
December 31, 2011
determined in accordance with GAAP as reported in the 2010 Annual Report but
shall exclude any accounting effect (positive or negative) caused by the Escrow
Shares or the return or cancellation thereof, including any potential derivative
liability.

     

    
      For purposes hereof, “timely
file” shall mean that the
Company files its Annual Report on Form 10-K or Quarterly Report on Form 10-Q
within the time period
prescribed by the Commission for such report. Filing the Form 12b-25 and
subsequently filing the Annual Report on Form 10-K or Quarterly Report on Form
10-Q within the extended period shall be considered that the Company timely
files such report.

       

    

    The Escrow Shares shall be cancelled or
returned to the Make Good Pledgor within 10 Business Days after the one year anniversary of
the Offering.  The Investor Agent will deliver to the Escrow Agent
(with a copy to the Company) 1) a copy of the 2010 Annual Report, together with
the calculation of whether the 2011 Guaranteed ATNI has been achieved, 2) the
filing dates of the Company’s Annual Report on Form 10-K or Quarterly
Reports on Form 10-Q with the Commission in the one-year period following
the commencement of the Offering, together with the conclusion of whether such
reports have been timely filed, and/or 3) the proof that the Company’s
securities have been traded on Nasdaq Global Market, or the trading of the
Company’s securities has been halted by the Nasdaq Stock Market LLC in the
one-year period following the commencement of the Offering, as the case may
be.  The Escrow Agent need only rely on such letters from
Investor Agent and will disregard any contrary or further calculations or
instructions in such regard delivered by or on behalf of the
Company.

     

    
      
        
        

      

      
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    b.           In the event that all of the
following occur: 1) the After Tax Net Income reported in the 2011 Annual Report
is equal to or greater than the 2011 Guaranteed ATNI, 2) the Company has timely filed its
Annual Report on Form 10-K and Quarterly Reports on Form 10-Q with the
Commission in the one-year period following the commencement of the Offering,
and 3) the Company’s securities have been traded on Nasdaq Global Market in the
one-year period following the commencement of the Offering, the Escrow
Shares shall be returned to the Make Good Pledgor in accordance with this Make Good
Agreement.  

     

    c.           Pursuant
to Section 4(a), if the Investor Agent delivers a notice to the Escrow Agent
that the Escrow Shares are to be cancelled, then the Escrow Agent shall
immediately forward the Escrow Shares to the Company’s Transfer Agent for
cancellation. If a notice from the Investor Agent pursuant to Section 4(a)
indicates that the Escrow Shares are to be returned to the Make Good Pledgor,
then the Escrow Agent will promptly deliver the Escrow Shares to the Make Good
Pledgor in accordance with instructions provided by the Make Good Pledgor at
such time.

     

    5. Notice of
Filings.  The Company agrees to promptly provide the Investor
Agent with written notice of the filing with the Commission of any financial
statements or reports referenced herein.

     

    6.
Interpleader.  Should any controversy arise among the parties
hereto with respect to this Make Good Agreement or with respect to the right to
receive the Escrow Shares, Escrow Agent and/or the Investor Agent shall have the
right to consult and hire counsel and/or to institute an appropriate
interpleader action to determine the rights of the parties. Escrow Agent and/or
the Investor Agent are also each hereby authorized to institute an appropriate
interpleader action upon receipt of a written letter of direction executed by
the parties so directing either Escrow Agent or the Investor Agent. If Escrow
Agent or the Investor Agent is directed to institute an appropriate interpleader
action, it shall institute such action not prior to thirty (30) days after
receipt of such letter of direction and not later than sixty (60) days after
such date. Any interpleader action instituted in accordance with this Section 7
shall be filed in any court of competent jurisdiction in the State of New York,
and the Escrow Shares in dispute shall be deposited with the court and in such
event Escrow Agent and the Investor Agent shall be relieved of and discharged
from any and all obligations and liabilities under and pursuant to this Make
Good Agreement with respect to the Escrow Shares and any other obligations
hereunder. 

     

    7. Exculpation and Indemnification of
Escrow Agent and the Investor Agent.

     

    a.           Escrow
Agent is not a party to, and is not bound by or charged with notice of any
agreement out of which this escrow may arise.  Escrow Agent acts under
this Make Good Agreement as a depositary only and is not responsible or liable
in any manner whatsoever for the sufficiency, correctness, genuineness or
validity of the subject matter of the escrow, or any part thereof, or for the
form or execution of any notice given by any other party hereunder, or for the
identity or authority of any person executing any such notice. Escrow Agent will
have no duties or responsibilities other than those expressly set forth
herein.  Escrow Agent will be under no liability to anyone by reason
of any failure on the part of any party hereto (other than Escrow Agent) or any
maker, endorser or other signatory of any document to perform such person's or
entity's obligations hereunder or under any such document.  Except for
this Make Good Agreement and instructions to Escrow Agent pursuant to the terms
of this Make Good Agreement, Escrow Agent will not be obligated to recognize any
agreement between or among any or all of the persons or entities referred to
herein, notwithstanding its knowledge thereof.  The Investor Agent’s
sole obligation under this Make Good Agreement is to provide written instruction
to Escrow Agent (following such time as the Company files certain periodic
financial reports as specified in Section 4 hereof) directing the distribution
of the Escrow Shares.  The Investor Agent will provide such written
instructions upon review of the relevant After Tax Net Income and Earnings Per
Share amount reported in such periodic financial reports as specified in Section
4 hereof.  The Investor Agent is not charged with any obligation to
conduct any investigation into the financial reports or make any other
investigation related thereto.  In the event of any actual or alleged
mistake or fraud of the Company, its auditors or any other person in connection
with such financial reports of the Company, the Investor Agent shall have no
obligation or liability to any party hereunder.

     

    
      
        
        

      

      
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    b.           Neither
the Escrow Agent nor Investor Agent will be liable for any action taken or
omitted by it, or any action suffered by it to be taken or omitted, absent gross
negligence or willful misconduct.  The Escrow Agent and Investor Agent
may each rely conclusively on, and will be protected in acting upon, any order,
notice, demand, certificate, or opinion or advice of counsel (including counsel
chosen by Escrow Agent or Investor Agent, as applicable), statement, instrument,
report or other paper or document (not only as to its due execution and the
validity and effectiveness of its provisions, but also as to the truth and
acceptability of any information therein contained) which is reasonably believed
by Escrow Agent or Investor Agent, as applicable, to be genuine and to be signed
or presented by the proper person or persons.  The duties and
responsibilities of the Escrow Agent and Investor Agent, as the case may be,
hereunder shall be determined solely by the express provisions of this Make Good
Agreement and no other or further duties or responsibilities shall be implied,
including, but not limited to, any obligation under or imposed by any laws of
the State of New York upon fiduciaries.  NEITHER THE ESCROW AGENT NOR
INVESTOR AGENT SHALL BE LIABLE, DIRECTLY OR INDIRECTLY, FOR ANY (I) DAMAGES,
LOSSES OR EXPENSES ARISING OUT OF THE SERVICES PROVIDED HEREUNDER, OTHER THAN
DAMAGES, LOSSES OR EXPENSES WHICH HAVE BEEN FINALLY ADJUDICATED TO HAVE DIRECTLY
RESULTED FROM THE ESCROW AGENT’S OR INVESTOR AGENT'S, AS THE CASE MAY BE, GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT, OR (II) SPECIAL, INDIRECT OR CONSEQUENTIAL
DAMAGES OR LOSSES OF ANY KIND WHATSOEVER (INCLUDING, WITHOUT LIMITATION, LOST
PROFITS), EVEN IF THE ESCROW AGENT OR INVESTOR AGENT, AS APPLICABLE, HAS BEEN
ADVISED OF THE POSSIBILITY OF SUCH LOSSES OR DAMAGES AND REGARDLESS OF THE FORM
OF ACTION.

     

    c.           The
Company and the Make Good Pledgor each hereby, jointly and severally, indemnify
and hold harmless each of Escrow Agent, the Investor Agent and any of their
principals, partners, agents, employees and affiliates from and against any
expenses, including reasonable attorneys' fees and disbursements, damages or
losses suffered by Escrow Agent or the Investor Agent in connection with any
claim or demand, which, in any way, directly or indirectly, arises out of or
relates to this Make Good Agreement or the services of Escrow Agent or the
Investor Agent hereunder; except, that if Escrow Agent or the Investor Agent is
guilty of willful misconduct or gross negligence under this Make Good Agreement,
then Escrow Agent or the Investor Agent, as the case may be, will bear all
losses, damages and expenses arising as a result of its own willful misconduct
or gross negligence.  Promptly after the receipt by Escrow Agent or
the Investor Agent of notice of any such demand or claim or the commencement of
any action, suit or proceeding relating to such demand or claim, Escrow Agent or
the Investor Agent, as the case may be, will notify the other parties hereto in
writing.  For the purposes hereof, the terms "expense" and "loss" will
include all amounts paid or payable to satisfy any such claim or demand, or in
settlement of any such claim, demand, action, suit or proceeding settled with
the express written consent of the parties hereto, and all costs and expenses,
including, but not limited to, reasonable attorneys' fees and disbursements,
paid or incurred in investigating or defending against any such claim, demand,
action, suit or proceeding.  The provisions of this Section 8 shall
survive the termination of this Make Good Agreement, and the resignation or
removal of the Escrow Agent.

     

    
      
        
        

      

      
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    8. Compensation of Escrow
Agent.  Escrow Agent shall be entitled to compensation for its
services as stated in the fee schedule attached hereto as Exhibit A, which
compensation shall be paid by the Company. The fee agreed upon for the services
rendered hereunder is intended as full compensation for Escrow Agent's services
as contemplated by this Make Good Agreement; provided, however, that in the
event that Escrow Agent renders any material service not contemplated in this
Make Good Agreement, or there is any assignment of interest in the subject
matter of this Make Good Agreement, or any material modification hereof, or if
any material controversy arises hereunder, or Escrow Agent is made a party to
any litigation pertaining to this Make Good Agreement, or the subject matter
hereof, then Escrow Agent shall be reasonably compensated by the Company for
such extraordinary services and reimbursed for all costs and expenses, including
reasonable attorney's fees, occasioned by any delay, controversy, litigation or
event, and the same shall be recoverable from the Company.  Prior to
incurring any costs and/or expenses in connection with the foregoing sentence,
Escrow Agent shall be required to provide written notice to the Company of such
costs and/or expenses and the relevancy thereof and Escrow Agent shall not be
permitted to incur any such costs and/or expenses which are not related to
litigation prior to receiving written approval from the Company, which approval
shall not be unreasonably withheld.

     

    9. Resignation of Escrow
Agent.  At any time, upon ten (10) Business Days' written
notice to the Company and the Investors, Escrow Agent may resign and be
discharged from its duties as Escrow Agent hereunder. As soon as practicable
after its resignation, Escrow Agent will promptly turn over to a successor
escrow agent appointed by the Company the Escrow Shares held hereunder upon
presentation of a document appointing the new escrow agent and evidencing its
acceptance thereof.  If, by the end of the 10-Business Day period
following the giving of notice of resignation by Escrow Agent, the Company shall
have failed to appoint a successor escrow agent, Escrow Agent shall deposit the
Escrow Shares as directed by the Investor Agent with the understanding that such
Escrow Shares will continue to be subject to the provisions of this Make Good
Agreement.

     

    
      
        
        

      

      
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    10. Records.  Escrow
Agent shall maintain accurate records of all transactions
hereunder.  Promptly after the termination of this Make Good Agreement
or as may reasonably be requested by the parties hereto from time to time before
such termination, Escrow Agent shall provide the parties hereto, as the case may
be, with a complete copy of such records, certified by Escrow Agent to be a
complete and accurate account of all such transactions.  The
authorized representatives of each of the parties hereto shall have access to
such books and records at all reasonable times during normal business hours upon
reasonable notice to Escrow Agent and at the requesting party’s
expense.

     

    11. Notice.  All
notices, communications and instructions required or desired to be given under
this Make Good Agreement must be in writing and shall be deemed to be duly given
if sent by registered or certified mail, return receipt requested, or overnight
courier, to the addresses listed on the signature pages hereto.

     

    12. Execution in
Counterparts.  This Make Good Agreement may be executed in
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

     

    13. Assignment and
Modification.  This Make Good Agreement and the rights and
obligations hereunder of the Company may be assigned by the Company only
following the prior written consent of Investors holding a majority of the
Shares issued at Closing under the Underwriting Agreement.  This Make
Good Agreement and the rights and obligations hereunder of the Escrow Agent may
be assigned by the Escrow Agent only with the prior consent of the Company and
the Investor Agent.  This Make Good Agreement and the rights and
obligations hereunder of the Make Good Pledgor may not be assigned by any Make
Good Pledgor.  Subject to the requirements under federal and state
securities laws, an Investor may assign its rights under this Make Good
Agreement without any consent from any other party. This Make Good Agreement may
not be changed orally or modified, amended or supplemented without an express
written agreement executed by the Escrow Agent, the Company, the Make Good
Pledgor and the Investor Agent (upon consent of the Investors holding a majority
of the Shares issued at Closing under the Underwriting Agreement). This Make
Good Agreement is binding upon and intended to be for the sole benefit of the
parties hereto and their respective successors, heirs and permitted assigns, and
none of the provisions of this Make Good Agreement are intended to be, nor shall
they be construed to be, for the benefit of any third person.  No
portion of the Escrow Shares shall be subject to interference or control by any
creditor of any party hereto, or be subject to being taken or reached by any
legal or equitable process in satisfaction of any debt or other liability of any
such party hereto prior to the disbursement thereof to such party hereto in
accordance with the provisions of this Make Good Agreement.

     

    14.  Applicable
Law.  This Make Good Agreement shall be governed by, and
construed in accordance with, the internal laws of the State of New York. The
representations and warranties contained in this Make Good Agreement shall
survive the execution and delivery hereof and any investigations made by any
party. Each party agrees that all legal proceedings concerning the
interpretations, enforcement and defense of the transactions contemplated by
this Make Good Agreement shall be commenced exclusively in the state and federal
courts sitting in the City of New York, Borough of Manhattan (the “New York
Courts”).  Each party hereto hereby irrevocably submits to the
exclusive jurisdiction of the New York Courts for the adjudication of any
dispute hereunder or in connection herewith, and hereby irrevocably waives, and
agrees not to assert in any such proceeding, any claim that it is not personally
subject to the jurisdiction of any such New York Court, or that such proceeding
has been commenced in an improper or inconvenient forum. Each party hereto
hereby irrevocably waives personal service of process and consents to process
being served in any such proceeding by mailing a copy thereof via registered or
certified mail or overnight delivery (with evidence of delivery) to such party
at the address in effect for notices to it under this Make Good Agreement and
agrees that such service shall constitute good and sufficient service of process
and notice thereof.  Nothing contained herein shall be deemed to limit
in any way any right to serve process in any manner permitted by
law.

     

    
      
        
        

      

      
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    15. Headings.  The
headings contained in this Make Good Agreement are for convenience of reference
only and shall not affect the construction of this Make Good
Agreement.

     

    16. Attorneys'
Fees.  If any action at law or in equity, including an action
for declaratory relief, is brought to enforce or interpret the provisions of
this Make Good Agreement, the prevailing party shall be entitled to recover
reasonable attorneys' fees from the other party (unless such other party is the
Escrow Agent), which fees may be set by the court in the trial of such action or
may be enforced in a separate action brought for that purpose, and which fees
shall be in addition to any other relief that may be awarded.

     

    17. Merger or
Consolidation.  Any corporation or association into which the
Escrow Agent may be converted or merged, or with which it may be consolidated,
or to which it may sell or transfer all or substantially all of its corporate
trust business and assets as a whole or substantially as a whole, or any
corporation or association resulting from any such conversion, sale, merger,
consolidation or transfer to which the Escrow Agent is a party, shall be and
become the successor escrow agent under this Make Good Agreement and shall have
and succeed to the rights, powers, duties, immunities and privileges as its
predecessor, without the execution or filing of any instrument or paper or the
performance of any further act.

     

    

     

     

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    IN WITNESS WHEREOF, the parties have
duly executed this Make Good Agreement as of the date set forth opposite their
respective names.

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              	 
      	 
      	 	 
      	 
	 
      	
                                                      COMPANY:

                                                    	 
	 	 	 
	 
      	
                                                      LONGHAI
      STEEL INC.

                                                    	 
	 
      	 
      	 	 
      	 
	 
      	
                                                      By:

                                                    	 	
                                                        
      

                                                    	 
	 
      	 
      	 	
                                                      Name:
      Chaojun Wang

                                                    	 
	 
      	 
      	 	
                                                      Title:
      Chief Executive Officer

                                                    	 
	 
      	 
      	 	 
      	 
	 
      	
                                                      Address:

                                                    	 	
                                                      No.
      1 Jingguang Road, Neiqiu

                                                    	 
	 
      	 
      	 	
                                                      County,
      Xingtai City, Hebei

                                                    	 
	 
      	 
      	 	
                                                      Province,
      China 054000

                                                    	 
	 
      	 
      	 	 
      	 
	 
      	 
      	 	 
      	 
	 
      	
                                                      Attn.:
      Chaojun Wang

                                                    	 
	 
      	 
      	 	 
      	 
	 
      	
                                                      MAKE
      GOOD PLEDGOR:

                                                    	 
	 	 	 
	 
      	
                                                      Merry
      Success Limited

                                                    	 
	 
      	 
      	 	 
      	 
	 
      	
                                                      By:

                                                    	 	
                                                        
      

                                                    	 
	 
      	 
      	 	
                                                      Name:
      Jinhai Guo

                                                    	 
	 
      	 
      	 	
                                                      Title:
      Director

                                                    	 
	 
      	 
      	 	 
      	 
	 
      	 
      	 	 
      	 
	 
      	
                                                      GUARANTOR:

                                                    	 
	 	 	 
	 
      	
                                                      MR.
      CHAOJUN WANG

                                                    	 
	 
      	 
      	 	 
      	 
	 
      	
                                                      By:

                                                    	 	
                                                        
      

                                                    	 
	 
      	 
      	 	
                                                      Name:
      Chaojun Wang

                                                    	 
	 
      	 
      	 	 
      	 
	 
      	
                                                      GUARANTOR:

                                                    	 
	 	 	 
	 
      	
                                                      MR.
      JINHAI GUO

                                                    	 
	 
      	 
      	 	 
      	 
	 
      	
                                                      By:

                                                    	 	
                                                        
      

                                                    	 
	 
      	 
      	 	
                                                      Name:
      Jinhai Guo

                                                    	 

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
 

    
      
        
        

      

      
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    [REMAINDER
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                                                              ESCROW
      AGENT:

                                                            	 
	 	 	 
	 
      	
                                                              ESCROW,
      LLC, as Escrow Agent

                                                            	 
	 
      	 
      	 	 
      	 
	 
      	
                                                              By:

                                                            	 	
                                                                
      

                                                            	 
	 
      	
                                                               

                                                            	 	
                                                              Name:
      Johnnie L. Zarecor

                                                            	 
	 
      	
                                                               

                                                            	 	
                                                              Title:
      Vice President

                                                            	 
	 
      	 
      	 	 
      	 
	 
      	
                                                              Address:
      

                                                            	 	173
      Keith St.	 
	 
      	
                                                               

                                                            	 	
                                                              Warrenton,
      VA 20186

                                                            	 
	 
      	
                                                              Facsimile:
      (540) 347-2291

                                                            	 
	 
      	
                                                              Attn.:
      Johnnie Zarecor

                                                            	 
	 
      	 
      	 	 
      	 
	 
      	
                                                              LADENBURG
      THALMANN & CO. INC.

                                                            
	 	 	 
	 
      	
                                                              as
      Investor Agent

                                                            	 
	 
      	 
      	 	 
      	 
	 
      	
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                                                              TRANSFER
      AGENT:

                                                            	 
	 	 	 
	 
      	
                                                              PACIFIC
      STOCK TRANSFER 

                                                              COMPANY,
      as Transfer Agent

                                                            	 
	 
      	 
      	 	 
      	 
	 
      	
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    Exhibit
A

    

    ESCROW AGENT FEE
SCHEDULE

    

    

    Documentation
Fee: $4,000.00

    Delivery
Fee: $500.00

    

    Total
Fees: $4,500.00

    

    

    

    

    

    
      
        
        

      

      
        12WebFilings | EDGAR view

 

Exhibit 10.1
 
AGREEMENT OF PURCHASE AND SALE
(Hillsborough Avenue, Tampa, FL)
 
THIS AGREEMENT OF PURCHASE AND SALE (this “Agreement”) is made and entered into by and between JEFFREY I. WOOLEY, an individual (“Seller”) and ASBURY AUTOMOTIVE TAMPA, L.P., a Delaware limited partnership (“Purchaser”), and is effective as of the Effective Date (as defined in Section 1.2 below)
 
R E C I T A L S:
 
A.Seller is the owner of the Property (as defined in Section 1.2 below).
 
B.Seller is leasing the property to Purchaser pursuant to the Existing Lease (as defined in Section 1.2 below).
 
C.Hyundai, Nissan and Smart dealerships are currently operated on the Property by affiliates of Purchaser pursuant to subleases with Purchaser.
 
D.Seller desires to sell the Property to Purchaser, and Purchaser desires to purchase the Property from Seller, on and subject to the terms of this Agreement.
 
AGREEMENT
 
NOW, THEREFORE, in consideration of the mutual covenants set out in this Agreement and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Seller and Purchaser agree as follows:
 
		
	ARTICLE 1    
	: RECITALS AND DEFINITIONS

 
1.1Recitals. The Recitals set out above are true and correct and are a part of this Agreement.
 
1.2Certain Definitions. When used in this Agreement, the following terms shall have the respective meanings set out below:

1

 

			
	 
	Articles:
	The numbered articles of this Agreement, such as this Article 1.  All references in this Agreement to Articles shall, unless otherwise indicated, refer to the Articles within this Agreement.

	 
	Broker:
	None.

	 
	Closing:
	The consummation of the purchase and sale contemplated by this Agreement by the deliveries required by Article 9.

	 
	Closing Date:
	 December 30, 2010, or January 5, 2011, if such later date is elected by Seller by written notice to Purchaser given prior to December 24, 2010.  The Closing Date is subject to extension as provided for in Section 7.3 (Extension of Closing Date) and in Section 8.3 (Adamo Drive Lease).

	 
	County:
	Hillsborough County, Florida.

	 
	Effective Date:
	The day that Agreement is executed by the last of Seller and Purchaser (including the initialing of any changes made after the execution by the first of Seller and Purchaser).

	 
	Existing Lease:
	The First Amended and Restated Lease Agreement made and effective the 17th day of September 1998, as amended by First Amendment to First Amended and Restated Lease Agreement dated June 20, 2003, pursuant to which Purchaser is leasing the Property from Seller.

	 
	Improvements:
	All buildings and all other improvements located upon the Land, together with all of the base building systems and fixtures related thereto (and all replacements or additions thereto between the Effective Date and the Closing Date).

	 
	Land:
	The approximately 15.85 acres of land located south-west of the intersection of Hillsborough Avenue and Dale Mabry Highway in Hillsborough County, Florida and legally described on Exhibit A of this Agreement. Seller does not warrant the area of the Land.

	 
	Property:
	The Land and the Improvements, together with all privileges, rights, easements, hereditaments, and appurtenances, including, but not limited to: (i) appurtenant easement, use, and development rights; (ii) all right, title and interest in and to any streets, alleys, passages and other rights-of-way included therein or adjacent thereto (before or after the vacation thereof); (iii) all shrubs, trees, plants and other landscaping on the Land; and (iv) all oil, gas, water and mineral rights owned by Seller.

	 
	Public Records:
	The official public records of the County.

	 
	Purchase Price:
	The consideration payable by Purchaser to Seller for the Property, as provided for in Article 2.

	 
	Section(s):
	The numbered sections and subsections of this Agreement, such as this Section 1.1.  All references herein to Sections shall, unless otherwise indicated, refer to the Sections within this Agreement.

	 
	Tangible Personal Property:
	All fixtures, equipment and other tangible personal property, if any, belonging to Seller and situated on or in the Property; excluding, however, Seller's furniture, furnishings and personal effects located within Seller's Office, which Seller will continue to be entitled to occupy pursuant to the Executive Office Lease described in Section 5.3.

	 
	Title Insurer:
	Old Republic National Title Insurance Company

 
		
	ARTICLE 2    
	: PURCHASE AND SALE AND PURCHASE PRICE

 
2.1Purchase and Sale. Subject to the conditions and on the terms contained in this Agreement, on the Closing Date, Seller shall convey fee simple title to the Property to Purchaser (or a permitted assignee of Purchaser), subject only to the Permitted Title Exceptions (as defined in Article 3 below).
 
2.2Purchase Price. The Purchase Price is Sixteen Million Eight Hundred and Five Thousand 

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Dollars ($16,805,000.00).
 
2.3Payment of Purchase Price. On the Closing Date, Purchaser shall pay the Purchase Price, as adjusted by the prorations and credits provided for by this Agreement, by cashier's check or wire transfer to the Title Insurer, as contemplated by Article 9.
 
		
	ARTICLE 3    
	: TITLE AND SURVEY

 
3.1Title Commitment and Survey. Prior to the Effective Date, Purchaser has obtained a Title Commitment from the Title Insurer for issuance of an ALTA owner's title insurance policy insuring Purchaser's title to the Property in the full amount of the Purchase Price (the “Title Commitment”) and a Survey of the Property (the “Survey”). A copy of the Title Commitment and the Survey have been provided to Seller. 
 
3.2Permitted Title Exceptions. Purchaser and Seller have agreed that the Property will be conveyed and accepted subject only to the title exceptions set out on Exhibit B (the “Permitted Title Exceptions”). 
 
3.3Title Policy. Purchaser agrees to accept title to the Property at Closing subject to the Permitted Title Exceptions. It shall be a condition to Closing that Purchaser be able to obtain an unconditional commitment for the issuance of an ALTA owner's title insurance policy (the “Title Policy”) issued in accordance with the Title Commitment by the Title Insurer, insuring that Purchaser is vested with good and marketable fee simple title to the Property, subject to no exceptions except the Permitted Title Exceptions. Seller will deliver to the Title Insurer, at or prior to the Closing Date, such documentation as may be reasonably required by the Title Insurer to satisfy the requirements for the issuance of the Title Policy as they relate to the owner or seller of the Property.
 
3.4Transactions Affecting Property. From the Effective Date through the Closing, Seller shall not, without Purchaser's prior written consent, do, allow, or agree to do any of the following: (i) sell, encumber or grant any interest in or place or cause to be placed any restriction on the Property or any part thereof; (ii) waive, release or transfer any right or privilege appurtenant to the Property; (iii) take any action that would impair Purchaser's interest under this Agreement or in or to the Property or which will prevent Seller's or Purchaser's full performance of its obligations under this Agreement; or (iv) take any action which violates the Existing Lease.
 
		
	ARTICLE 4    
	: POSSESSION, PRORATIONS AND EXPENSES

 
4.1Possession of Property. Except to the extent of one of more subtenants of Purchaser in possession, Purchaser currently has possession of the Property pursuant to the Existing Lease.
 
4.2Prorations. Under the Existing Lease, Purchaser is responsible for all real estate taxes, assessments and other items of expense and is entitled to any sublease rents and other items of income in connection with the Property, therefore, there will be no prorations at Closing, except as provided for in Section 4.3 (Rent Proration).
 
4.3Rent Proration. Rents under the Existing Lease will be prorated as of Closing, with all days prior to the actual date of Closing allocated to Seller and all days from and including the date of Closing allocated to Purchaser.
 
4.4Purchaser's Closing Expenses. Purchaser shall pay (i) the fees, costs and expenses incurred 

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in connection with Purchaser's due diligence inspections and investigations; (ii) the fees, costs and expenses of Purchaser's designated representatives and attorneys, except as prescribed in Section 10.4; (iii) all costs and expenses relating to or in connection with any financing of the purchase of the Property by Purchaser; (iv) the cost of the Survey; (v) one-half of the search fees and premiums for the Title Commitment and Title Policy; and (vi) one-half of all documentary stamp taxes, local surtaxes and any other transfer taxes and fees due with respect to the conveyance of the Property and the recordation of the conveyance deed.
 
4.5Seller's Closing Expenses. Seller shall pay (i) the fees, costs and expenses of the Seller's designated representatives and attorneys, except as prescribed in Section 10.4; (ii) one-half of the search fees and premiums for the Title Commitment and Title Policy; and (iii) one-half of all documentary stamp taxes, local surtaxes and any other transfer taxes and fees due with respect to the conveyance of the Property and the recordation of the conveyance deed.
 
4.6Billboard Lease. The Property is subject to a billboard lease entitled 3M Lease Renewal Agreement (the “Billboard Lease”). Seller represents and warrants that the Billboard Lease remains in effect as originally entered into by Seller's predecessor in title Margol Properties and has never been amended or modified by Seller and that to the best of Seller's actual knowledge (as defined in Section 6.2), the current extension term expires in March 31, 2011. The Base Rental under the Billboard Lease will be prorated as of Closing, with all days prior to the actual date of Closing allocated to Seller and all days from and including the date of Closing allocated to Purchaser. Any Base Rent or Percentage Rent for the period prior to the Closing was collected or may be collected by Seller and is the property of Seller; except that Purchaser shall be entitled to collect and retain the entire Percentage Rental for the current year under the Billboard Lease. If either Purchaser or Seller receives any sums under the Billboard Lease belonging to the other hereunder, the receiving party will remit such sums to the entitled party within ten (10) days of receipt thereof, which obligation shall survive Closing.
 
		
	ARTICLE 5    
	: EXISTING LEASE AND EXISTING OFFICE}

 
5.1Continuing Obligations. Except as expressly provided for herein, nothing in this Agreement is intended to alter the Existing Lease or any of the Purchaser's or Seller's rights or obligations thereunder. The termination of this Agreement, for any reason, shall have no effect on the Existing Lease which shall continue in full force and effect.
 
5.2Security Deposit. A Security Deposit in the amount of Eighty-Eight Thousand Dollars ($88,000) is being held by Seller (as “Landlord”) under the Existing Lease. Concurrently with Closing, the Existing Lease is to be terminated by the Lease Termination Agreement provided for in Article 9 and the Security Deposit will be refunded to Purchaser or credited against the Purchase Price as part of the Closing.
 
5.3Lease of Existing Office. Seller currently occupies a single executive office within the Improvements (“Seller's Office”). At Closing, Purchaser and Seller will enter into a lease in the form attached to this Agreement as Exhibit C (the “Executive Office Lease”) providing for Seller's continued use of Seller's Office on and in accordance with the terms and conditions of the Executive Office Lease. 
 
		
	ARTICLE 6    
	: REPRESENTATIONS AND WARRANTIES

 
6.1Representations and Warranties of Purchaser. To induce Seller to execute, deliver and perform this Agreement, Purchaser hereby represents and warrants to Seller on and as of the Effective Date as follows:
 

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(a)Accuracy of Representations. All representations and warranties of Purchaser appearing in the other Articles and Sections of this Agreement are true, correct and complete in all material respects.
 
(b)Authorization. Subject to Section 8.2 (Board Approval), Purchaser has full capacity, right, power, and authority to execute, deliver and perform this Agreement and all documents to be executed by Purchaser pursuant hereto, and all required actions and approvals therefor have been duly taken and obtained. The individuals signing this Agreement and all other documents executed or to be executed pursuant hereto on behalf of Purchaser are and shall be duly authorized to sign the same on Purchaser's behalf and to bind Purchaser thereto. This Agreement and all other documents to be executed pursuant hereto by Purchaser are and shall be binding upon and enforceable against Purchaser.
 
6.2Representations and Warranties of Seller. To induce Purchaser to execute, deliver and perform this Agreement, Seller hereby represents and warrants to Purchaser on and as of the Effective Date as follows:
 
(a)Accuracy of Representations. All representations and warranties of Seller appearing in the other Articles and Sections of this Agreement are true, correct and complete in all material respects.
 
(b)Authorization. Seller has full capacity, right, power and authority to execute, deliver and perform this Agreement and all documents to be executed by Seller pursuant hereto, and all required action and approvals therefor have been duly taken and obtained. This Agreement and all documents to be executed pursuant hereto by Seller are and shall be binding upon and enforceable against Seller.
 
(c)Title. To the best of Seller's actual knowledge, Seller owns undisputed marketable fee simple title to the Property free of all liens and encumbrances, except for the Existing Lease and matters recorded in the Public Records.
 
(d)No Knowledge of Certain Events. Seller has received no written notice of and to the best of Seller's actual knowledge (other than as may have been disclosed in writing to Purchaser) there exists no (i) contemplated change in the zoning or land use plan category of the Property or any lands adjoining the Property; (ii) contemplated condemnation or widening, change in grade or limitation of use impacting any roadway adjoining the Property, (iii) contemplated special assessment against the Property, or (iv) violation of law, regulation, permit, court order or other legal requirement with respect to the Property, or any pending or contemplated enforcement action alleging any such violation. 
 
(e)No Other Rights of Acquisition. Other than pursuant to this Agreement, there is no outstanding right or option to lease or acquire the Property or any part thereof granted by Seller.
 
(f)No Binding Documents. Other than as recorded in the Public Records, there are no agreements entered into by Seller which will bind Purchaser or the Property after Closing. 
The representations and warranties of Seller are subject to those matters disclosed in Seller's October 21, 2010 letter to Purchaser (the “Disclosure Letter”), which relates to both the Property and the Adamo Drive Property (as defined in Section 8.3). A copy of the Disclosure Letter is attached to this Agreement as Attachment #1. 
As used in this Agreement the term “to the best of Seller's actual knowledge” means only the actual knowledge and current recollection of the Seller at the time the representation and warranty is made, and does not imply any investigation of the underlying facts. Purchaser acknowledges that (i) Purchaser not Seller is in possession 

5

 

of the Property, (ii) as a result of not having possession, Seller's knowledge of the Property is limited, and (iii) Seller has not undertaken any special investigation or review in connection with giving the foregoing representations and warranties. 
Seller agrees to promptly notify Purchaser if it becomes aware of any transaction or occurrence prior to the Closing which would make any of the representations or warranties set in this Section untrue in any material respect and, except to the extent of such notification, the representations and warranties in this Section shall be deemed to be recertified by Seller on (and shall survive) the Closing Date.
6.3Sales Taxes Under Existing Lease. Under the Existing Lease Purchaser (as Tenant) has remitted to Seller (as Landlord) the sales taxes due in connection with the rental paid under the Existing Lease. In accordance with applicable laws and regulations, after Closing, Seller shall file a final return relative to the Existing Lease and pay any sales taxes (and any interest or penalties assessed in connection therewith) due pursuant to Florida Statutes, Section 212.031 relative to the Existing Lease; provided that Seller's obligation to pay the sales taxes is conditioned upon having actually received the sales tax from Purchaser under the Existing Lease. Seller shall indemnify, defend and hold Purchaser harmless from and against any claim and related costs and expenses (including attorneys fees) arising out of Seller's failure to remit any sales tax actually received from Purchaser to the State of Florida as required by applicable laws and regulations. 
 
6.4Property Is Being Sold On An “AS IS” Basis. Purchaser acknowledges and agrees that the sale of the Property to Purchaser is being made on an “as is” basis, without any representation or warranty of any kind or nature, except for the representations and warranties expressly set out in this Agreement or in the Closing documents. Purchaser's acknowledges that it has had an adequate opportunity to independently investigate the Property and to determine that the Property is, in all respects, acceptable to Purchaser.
 
6.5Seller Deliveries. Seller shall deliver to Purchaser such documents, materials and other information relative to the Property (or any part thereof) as Purchaser may reasonably request, within five (5) days of a written request. The delivery requirement under this Section is limited to documents, materials and other information to the extent within Seller's or its agent's possession or control. Any documents, materials or other information delivered hereunder will be delivered without any representation or warranty of any kind, including as to their accuracy or completeness; provided that Seller shall notify Purchaser, concurrently with any such delivery, of any inaccuracy or other defect in any item delivered of which Purchaser has actual knowledge.
 
		
	ARTICLE 7    
	: CONDEMNATION AND CASUALTY

 
7.1Condemnation. If, after the Effective Date and prior to the Closing Date, all or any portion of the Property is taken by exercise of the power of eminent domain (or deed in lieu thereof) or any proceedings are instituted or threatened to effect such a taking (each, a “Taking Event”), this Agreement will not be affected thereby, but in such an event Seller shall assign (or pay, to the extent actually received) to Purchaser at Closing all condemnation awards or claims arising out of the Taking Event as they relate to the Property.
 
7.2Damage or Destruction. If, after the Effective Date and prior to the Closing Date, all or any portion of the Property shall be damaged by one or more incidents of vandalism, the elements, fire or other casualty (a “Casualty Event”), this Agreement will not be affected thereby, but in such an event, Seller shall assign and/or pay to Purchaser at Closing all insurance proceeds (and other related claims, if any) collected, claimed or recoverable by Seller with respect to the damage.
 

6

 

7.3Extension of Closing Date. In the event of a Taking Event or Casualty Event, Purchaser may, by notice to Seller, extend the Closing Date by up to ten (10) business days.
 
		
	ARTICLE 8    
	: PURCHASER'S CONTINGENCIES

 
8.1Due Diligence Contingency. Purchaser acknowledges that it has completed its general due diligence review of the Property prior to the Effective Date and waives any further general due diligence contingency. 
 
8.2Board Approval. The final approval of the Board of Director of Asbury Automotive Group, Inc., of this Agreement (the “Board Approval”) is a condition precedent to the obligation of the Purchaser to consummate the Closing. The granting or denying of the Board Approval shall be in the sole discretion of the Board of Directors. In the event the Board Approval is not obtained on or before the Closing Date, Purchaser may terminate this Agreement by written notice to Seller.
 
8.3Adamo Drive Lease. Purchaser and Seller are in the process of negotiating an amended and restated or replacement lease (the “Adamo Lease”) for other property leased by Purchaser from Seller located on Adamo Drive, in Hillsborough County, Florida and operated as a Toyota dealership (the “Adamo Drive Property”). The terms of the Adamo Lease must be acceptable and agreed upon by both Purchaser and Seller. The agreement upon and the full execution of the Adamo Lease is a condition precedent to the obligation of Purchaser to consummate the Closing. In the event the Adamo Lease is not agreed upon and fully executed and delivered on or before the Closing Date, either Purchaser or Seller may extend the Closing Date for up to an additional thirty (30) days to provide additional time to finalize the Adamo Lease. In the event the Adamo Lease is not agreed upon and fully executed and delivered on or before the Closing Date (as it may have been extended by the preceding sentence), Purchaser may, by written notice to Seller, terminate this Agreement.
 
		
	ARTICLE 9    
	: CLOSING

 
9.1Closing. The transaction contemplated hereby shall close on the Closing Date, with all documents and funds delivered to the offices of the Title Insurer on or before the Closing Date. The Closing shall be accomplished though an escrow established with the Title Insurer.
 
9.2Seller's Deliveries. On the Closing Date, Seller shall deliver to the Title Insurer, in exchange for Purchaser's deliveries provided for below, the following:
 
(a)Seller's special warranty deed (the “Deed”) in a form sufficient to convey title to the Property under Florida law, which will described the Property by both the legal descriptions of the constituent parcels making up the Property and by an overall legal description (as to any contiguous parcels), both to be reflected on the Survey (the conveyance will be subject only to the Permitted Title Exceptions);
 
(b)Seller's “FIRPTA” certificate, in the form provided for by Section 1445 of the Internal Revenue Code;
 
(c)A Title Affidavit in a form which is acceptable to the Title Insurer to remove the gap, mechanics liens and parties in possession general exceptions from the Title Policy;
 
(d)Seller's Quitclaim Bill of Sale conveying the Tangible Personal Property, if any, to Purchaser in an “as is”, “where is”, “with all faults” condition;

7

 

 
(e)A lease termination agreement (in recordable form) terminating the Existing Lease and all of the parties rights, liabilities and obligations thereunder as of the date of Closing (the “Lease Termination Agreement”);
 
(f)A counterpart of the Executive Office Lease;
(g)A recertification, as of the Closing Date, of Seller's representations and warranties set out in Section 6.2;
 
(h)A counterpart of a closing statement setting out the Purchase Price, adjustments and prorations thereto, and the agreed upon disbursements of the Closing proceeds (the “Closing Statement”); and
 
(i)Such other documents, instruments, certifications and confirmations as may be required by this Agreement or otherwise reasonably required to fully effect and consummate the transactions contemplated by this Agreement.
 
9.3Purchaser's Deliveries. On the Closing Date, Purchaser shall deliver to the Title Insurer, in exchange for Seller's deliveries provided for above, the following:
(a)The Purchase Price, subject to the prorations and credits provided for by this Agreement;
 
(b)A counterpart of the Lease Termination Agreement;
 
(c)A counterpart of the Closing Statement; 
 
(d)A counterpart of the Executive Office Lease; and
 
(e)Such other documents, instruments, certifications and confirmations as may be required by this Agreement or otherwise reasonably required to fully effect and consummate the transactions contemplated by this Agreement.
 
9.4Approval of Closing Documents. All Closing documents to be furnished by Seller or Purchaser pursuant to this Agreement shall be duly executed, witnessed and notarized as required, and otherwise in a form reasonably satisfactory to Purchaser, Seller and, to the extent within the scope of its responsibility, the Title Insurer. Purchaser shall be responsible to have its counsel prepare initial drafts of all the Closing documents for review by Seller's counsel at least ten (10) days in advance of the Closing Date.
 
9.5Concurrent Transactions. All transactions required to be consummated and all deliveries to be made concurrently with Closing shall be consummated and made simultaneously, with the disbursements of all documents and funds from escrow being simultaneous upon the satisfaction of all conditions for Closing.
 
		
	ARTICLE 10    
	: DEFAULT

 
10.1Purchaser's Remedies. If Seller defaults in its obligation to consummate the Closing in accordance with the terms of this Agreement, Purchaser may, by notice to Seller, elect at any time thereafter to (i) terminate this Agreement or (ii) pursue specific enforcement of this Agreement. Purchaser acknowledges that the limitation of remedies contained in this Section is a material consideration for Seller entering into this Agreement and is a reasonable negotiated provision between sophisticated parties.

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10.2Seller's Remedies. If Purchaser defaults in its obligation to consummate the Closing in accordance with the terms of this Agreement, Purchaser may, by notice to Seller, elect at any time thereafter to terminate this Agreement and receive an amount equal to Fifty Thousand Dollars ($50,000) as agreed upon and negotiated full and liquidated damages (the “Termination Damages”). The Termination Damages shall be paid by Purchaser to Seller within ten (10) days of any such termination as a result of Purchaser's default. Seller acknowledges that the limitation of remedies contained in this Section is a material consideration for Purchaser entering into this Agreement and is a reasonable negotiated provision between sophisticated parties. 
 
10.3Other Remedies. The remedies set out above (together with the right to recover attorneys' fees as provided for below) are the exclusive remedies of the parties in connection with any default of either party in their respective obligations to consummate the Closing in accordance with the terms of this Agreement. As to other defaults or to enforce other provisions of this Agreement, the parties shall have all rights and remedies provided for under Florida law.
 
10.4Attorneys' Fees. In any litigation or arbitration between Purchaser and Seller arising out of this Agreement, the prevailing party shall be entitled to recover all reasonable attorneys' fees expended or incurred in connection therewith. The terms and provisions of this Section shall survive Closing or any termination of this Agreement.
 
10.5No Termination of Existing Lease. As provided for in Section 5.1, the termination of this Agreement shall have no impact on the Existing Lease. 
 
		
	ARTICLE 11    
	: BROKERAGE

 
11.1Brokerage Representation. Seller and Purchaser each hereby represent to the other that they have not dealt with any broker or finder with respect to the transactions contemplated by this Agreement. 
 
11.2Indemnity. Seller hereby agrees to indemnify, defend and hold harmless Purchaser from and against any claim (and any associated costs and expenses, including attorneys' fees) for a brokerage commission or finder's fee asserted by any person, firm or corporation claiming to have been engaged by Seller. Purchaser hereby agrees to indemnify, defend and hold harmless Seller from and against any claim (and any associated costs and expenses, including attorneys' fees) for brokerage commission or finder's fee asserted by any person, firm or corporation claiming to have been engaged by Purchaser.
 

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	ARTICLE 12    
	: NOTICES

 
12.1Notices. Any notice, demand, request, consent, approval or other communication (“Notice”) under this Agreement shall be given in writing and directed as follows:
			
	 
	If to Seller:
	Jeffrey I. Wooley
3800 West Hillsborough Avenue
Tampa, Florida 33614
Telephone:(813) 865-8000
Mobile:(813) 240-4046
Facsimile:(813) 874-2338

	 
	with a simultaneous copy to Seller's Counsel:
	Foley & Lardner LLP
100 North Tampa Street
Suite 2700
Tampa, Florida 33602-5810
Attention:Walter C. Little
Telephone:(813) 225-4161
E-Mail:wlittle@foley.com
Facsimile:(813) 221-4210

	 
	If to Purchaser:
	Asbury Automotive Tampa, L.P.
2905 Premiere Parkway, NW, Suite 300
Duluth, GA 30097
Attention:George Karolis
Telephone:(770) 418-8200
E-Mail:gkarolis@asburyauto.com
Facsimile:(678) 550-9054

	 
	with simultaneous copies to
 
 
 
 
 
 
and to
Purchaser's Counsel:
	 
Asbury Automotive Group, Inc.
Vice President & General Counsel
2905 Premiere Parkway, NW, Suite 300
Attention:Elizabeth B. Chandler
Telephone:(770) 418-8200
E-Mail:echandler@asburyauto.com
Facsimile:(678) 550-9054
 
 
D2 Law Group P.L.
3239 Henderson Boulevard,
Second Floor
Tampa, Florida 33609
Attention:John T. Diamandis
Telephone:(813) 876-3203
E-Mail:jdiamandis@d2lawgroup.com
Facsimile:(813) 876-3253

 
12.2Method of Notice. All Notices shall be (i) personally delivered, with a receipt confirming the date and time of delivery; (ii) delivered by a nationally recognized delivery service (e.g., FedEx, USPS, or UPS), using a method that allows confirmation of delivery; or (iii) delivered by certified or registered mail, return receipt requested. Notices shall be deemed given when received or refused by the addressee, or on the date delivery was attempted, if undeliverable as a result of an incorrect address given by the party or a failure to provide an updated address. Notices on behalf of a party sent by its counsel, shall be sufficient as notice from the party itself under this Agreement. 
 
12.3Change of Address. A party may change its address for receipt of Notices by service of a Notice of the change to the other party in accordance with this Article.

10

 

 
		
	ARTICLE 13    
	: NO THIRD PARTY BENEFITS AND ASSIGNMENT

 
13.1No Third Party Benefits and Assignment. This Agreement is for the sole and exclusive benefit of the Purchaser and Seller and their respective successors and assigns, and no other third party is intended to or shall have any rights under this Agreement. The obligations of Seller hereunder shall be binding upon Seller's estate and legal and personal representatives.
 
13.2Assignment by Purchaser. Purchaser may, without Seller's consent, assign its rights under this Agreement to an affiliate. Any other assignment shall be permitted only upon receipt of the prior written consent of the Seller. For purposes of this Section, an “affiliate” of a person or entity means another person or entity which (directly or indirectly) controls, is controlled by, or is under common control with such person or entity and the term “control” means the power to control (or to elect or appoint the people who control) the policies and major operational decisions of an entity, as a result of a direct or indirect ownership interest in the entity. Control shall be assumed in the case of ownership (directly or indirectly) of a majority of either the total voting interest in the subject entity or an entity which controls (directly or indirectly) the subject entity.
 
13.3No Release of Liability. In the event of any assignment of this Agreement by Purchaser, the assignor shall remain liable for the performance of the obligations of Purchaser under this Agreement. 
 
		
	ARTICLE 14    
	: INTERPRETATION

 
14.1Interpretation.
 
(a)Headings. The headings and captions of the Articles, Sections and paragraphs of this Agreement are inserted for convenient reference only and are not intended to expand, limit or otherwise affect the interpretation of the Articles, Sections or paragraphs to which they apply.
 
(b)Entire Agreement. This Agreement (which includes any attached Exhibits and Attachments) contains the entire agreement and understanding of the parties with respect to the subject matter hereof. Any prior agreements or understandings are superseded by and merged into this Agreement.
 
(c)Amendments and Waivers. This Agreement may not be amended, modified or discharged except by an instrument in writing signed by both Purchaser and Seller, nor may any terms of this Agreement be waived except by an instrument in writing signed by the party to be bound thereby.
 
(d)Further Assurances. The parties each agree to do, execute, acknowledge and deliver all such further acts, instruments and assurances and to take all such further action before or after the Closing (for a period of ninety days following the Closing Date) as shall be reasonably necessary to fully carry out this Agreement and to fully consummate and effect the transactions contemplated by this Agreement.
 
(e)Counterparts. This Agreement and any document or instrument executed pursuant hereto may be executed in any number of counterparts each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. The parties authorize signature pages to be detached from identical counterparts and all attached to one counterpart to form a single integrated document.
 
(f)Partial Invalidity. If any term, covenant or condition of this Agreement or the application thereof to any person or circumstances shall, to any extent, be declared invalid or unenforceable, 

11

 

the remainder of this Agreement, or the application of such term, covenant or condition to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby and each term, covenant or condition of this Agreement shall be valid and be enforced to the fullest extent permitted by law. Notwithstanding the foregoing, if the limitation on Seller's remedies set out in this Section 10.2 is found to be invalid or unenforceable by a court of competent jurisdiction, such finding shall be deemed to void this Agreement in its entirety ab initio. 
 
(g)Time Period. Whenever under the terms of this Agreement the expiration of a period or the time for performance of a covenant or condition falls on a Saturday, Sunday or other non-business day, such period or time for performance shall be extended to the next business day. Otherwise all references herein to “days” shall mean calendar days and all references herein to “business days” shall mean any day other than Saturday, Sunday and legal holidays.
 
(h)Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Florida, without reference to any applicable conflict of laws principles.
 
(i)Time of the Essence. Time is of the essence of this Agreement.
 
(j)Notice of Default and Cure Period. Unless otherwise expressly provided for under this Agreement, neither Seller nor Purchaser shall avail itself of any remedy granted to it under this Agreement based upon an alleged default of the other party, unless and until written notice of the alleged default, in reasonable detail, has been delivered to the defaulting party by the nondefaulting party (a “Default Notice”) and the alleged default has not been cured on or before the end of the fifth (5th) business day following delivery of the Default Notice.
 
(k)Construction. This Agreement shall not be construed more strictly against one party than against the other merely by virtue of the fact that it may have been prepared primarily by counsel for one of the parties, it being recognized that this is a negotiated agreement between sophisticated parties and should be interpreted consistent with its terms and clear intent and not more strictly against either party.
 
(l)Attorneys' Fees. Any reference to “attorneys' fees” in this Agreement shall be deemed to include all attorney and paralegal fees and related costs and expenses incurred in preparation for or in connection with pre-trial, trial, appellate, post-judgment, bankruptcy, and mediation and arbitration proceedings.
 
		
	ARTICLE 15    
	: LEGAL REQUIREMENTS AND PUBLICITY

 
15.1Disclosure Required by Law. Each of Seller and Purchaser agree to cooperate fully with the other in completing or filing any disclosure documents or in otherwise satisfying any disclosure requirements under applicable laws relating to the transactions contemplated by this Agreement (including, but not limited to, the Adamo Lease), including, but not limited to, the laws, rules and regulations of (or enforced or administered by) the U.S. Securities and Exchange Commission and the New York Stock Exchange (collectively, “Disclosure Laws”).
 
15.2Patriot Act. Each of Seller and Purchaser agree to cooperate fully with the other to provide to the other such information as may be reasonably requested to insure that this Agreement and all transactions contemplated by this Agreement will not violate Executive Order No. 13224 on Terrorist Financing (the “Executive Order”) or the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (the “Patriot Act”). The non-compliance of Seller or 

12

 

Purchaser (or such party's status or acts) with the Executive Order or the Patriot Act is a default under this Agreement.
 
15.3Publicity. Seller shall not issue any press release or provide any information relative to this Agreement or the transaction contemplated by this Agreement to any newspaper, magazine, radio or television station, internet based news provider or other organization, entity or individual providing news to the public (regardless of the media) without Purchaser's prior written consent.
 
15.4Survival. The obligations under this Article shall survive Closing.
 
		
	ARTICLE 16    
	: ENVIRONMENTAL UNDERTAKING

 
16.1Background. Purchaser and Seller acknowledge that the Property contains certain petroleum impacted soils which pre-date the Existing Lease (the “Pre-Existing Petroleum Contamination”) in the general locations shown on Attachment #2 (the “Impacted Areas”). Seller has advised Purchaser that (i) it has taken certain remediation action as to the Pre-Existing Petroleum Contamination, including testing, monitoring, soil removal and the installation of a passive soil vent system, and (ii) the Pre-Existing Petroleum Contamination within the Impacted Areas has been approved for clean-up funding by the State of Florida, but due to a low priority score the availability of State clean-up funds is not anticipated in the near future. 
 
16.2Remediation. If there is a future formal demand or request for the remediation of the Pre-Existing Petroleum Contamination by any governmental authority without the availability of sufficient funds from the State to accomplish the remediation, Seller will, within ten (10) days of notice from Purchaser elect (at Seller's option) either (i) to reimburse Purchaser for the reasonable costs incurred by Purchaser to complete the remediation or (ii) to himself complete the remediation. If Seller elects to reimburse Purchaser, Seller shall reimburse Purchaser for the reasonable remediation costs incurred within ten (10) days of receipt of any invoice therefor. If Seller elects to himself complete the remediation, Seller shall promptly commence and diligently pursue the completion of the remediation in accordance with all applicable laws, regulations and other governmental requirements and Purchaser and Seller shall enter into an access agreement (containing access rights, conditions, restrictions and an indemnity consistent with that in the Adamo Lease, pursuant to which Seller is conducting certain remediation work on the Adamo Property) allowing Seller to access the Property to complete the remediation.
 
16.3Survival. The obligations under this Article shall survive Closing.
 
 
The remainder of this Page has been intentionally left blank.

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IN WITNESS WHEREOF, Purchaser and Seller have executed this Agreement, on the dates set out beneath their signatures, effective as of the Effective Date.
 
			
	"SELLER"
	 

	 
	/s/ Jeffrey I. Wooley
	 

	JEFFREY I. WOOLEY
	 

	Date Executed by Seller:
	 

	December 17, 2010
	 

 
 
 
				
	"PURCHASER"
	 

	 
	 
	 
	 

	ASBURY AUTOMOTIVE TAMPA, L.P.,
	 

	A Delaware limited partnership
	 

	 
	By: ASBURY AUTOMOTIVE TAMPA GP L.L.C.,
	 

	 
	a Delaware limited liability company
	 

	 
	As its general partner
	 

	 
	 
	 
	 

	 
	By:
	/s/ Craig T. Monaghan
	 

	 
	Name:
	Craig T. Monaghan
	 

	 
	Title:
	Vice President
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	Date Executed by Purchaser:
	 

	 
	December 17, 2010
	 

 
 
 
 
 
 

14

 

EXHIBIT A
 
Legal Description
(Hillsborough Avenue)
PARCEL ONE:
 
Parcel I:
 
A tract in the Northeast 1/4 of Section 4, Township 29 South, Range 18 East, Hillsborough County, Florida, described as follows:
 
From a Point of Beginning which is the point of intersection of the North right-of-way line of West Crest Avenue and the Westerly right-of-way line of State Road No. 600, run North 89019'22" West along the North right-of-way line of West Crest Avenue a distance of 600.0 feet; run thence North 0°37'38" East a distance of 648.84 feet to a point on the Southerly right-of-way line of State Road No. 580; run thence Easterly, Southeasterly, and Southerly, along the Southerly right-of-way line of said State Road No. 580 and the Westerly right-of-way line of State Road No. 600 the following courses:
 
(a) Easterly along a curve to the left (radius 2914.79 feet) an arc distance of 91.87 feet (chord 91.87 feet, chord bearing South 88°34'11.5" East);
(b) South 86°00'41" East a distance of 198.76 feet;
(c) South 89°28'22" East a distance of 50.0 feet to a point of curvature;
(d) Southeasterly along a curve to the right (radius 180.0 feet) an arc distance of 251.54 feet (chord 231.56 feet, chord bearing South 49°26'21.5" East) to a point of tangency;
(e) South 9°24'21" East a distance of 471.28 feet;
(f) South 0°28'40" West distance of 23.80 feet to the Point of Beginning.
 
And
 
Parcel IV:
 
A tract in the Northeast 1/4 of Section 4, Township 29 South, Range 18 East, Hillsborough County, Florida, described as follows:
 
From the point of intersection of the North right-of-way line of West Crest Avenue and the Westerly right-of-way line of State Road No 600, run North 89°19'22" West along the North right-of-way line of West Crest Avenue a distance of 600.0 feet to a Point of Beginning. 
From said Point of Beginning, run North 0°37'38" East a distance of 349.21 feet; run thence North 89°20'42" West a distance of 150.0 feet; run thence South 0°37'38" West a distance of 349.15 feet to a point on the North right-of-way line of West Crest Avenue; run thence South 89°19'22" East along said North right-of-way line a distance of 150.0 feet to the Point of Beginning.
 
And
 
Parcel VII:
 
A tract in the Northeast 1/4 of Section 4, Township 29 South, Range 18 East, Hillsborough County, Florida, described as follows: From the point of intersection of the North right-of-way line of West Crest Avenue and the Westerly right-of-way line of State Road No. 600, run North 89°19'22" West along the North right-of-way line of West Crest Avenue a distance of 750.0 feet and run North 00°37'38" East a distance of 349.15 feet to a Point of Beginning.

15

 

 
All being also described as follows:
 
A portion of the Northeast 1/4 of Section 4, Township 29 South, Range 18 East, Hillsborough County, Florida, being more particularly described as follows: 
 
BEGIN at the intersection of the Northerly right-of-way line of West Crest Avenue and the Westerly right-of-way line of State Road No 600 (DALE MABRY HIGHWAY); thence N.89°19'22”W., 750.00 feet along said Northerly right-of-way line; thence N.00°37'38”E., 349.15 feet; thence N.00°32'15”E., 308.81 feet to the Southerly right-of-way line of State Road No. 580 (HILLSBOROUGH AVENUE) and the beginning of a non-tangent curve concave to the North, having a radius of 2914.79 feet; thence along said Southerly right-of-way line the following two curves and two courses: Southeasterly, 242.64 feet along said curve through a central angle of 04°46'11” (chord bears S.86°53'02”E., 242.57 feet); thence S.86°00'41”E., 198.76 feet; thence S.89°28'22”E., 50.00 feet to the beginning of a curve concave to the Southwest, having a radius of 180.00 feet; thence Southeasterly 251.54 feet along said curve through a central angle of 80°03'54” (chord bears S.49°26'21.5”E., 231.56 feet) to the said Westerly right-of-way line of State Road No. 600; thence feet along said Westerly right-of-way line the following two courses: S.09°24'21E., 471.28; thence S.00°28'40”W., 23.80 feet to the POINT OF BEGINNING. 
 
 
PARCEL TWO
 
Parcel II:
 
Lots 1, 2 and 3 in Block 3 of Re-Plat of Drew Park Subdivision, according to the map or plat thereof recorded in Plat Book 29, Pages 70 to 95 inclusive of the Public Records of Hillsborough County, Florida.
 
And
 
Parcel V:
 
Lots 8, 9, 10, 25, 26, 27, 28 and 29 in Block 3 of a RE-PLAT OF DREW PARK SUBDIVISION, as per map or plat thereof recorded in Plat Book 29, Pages 70 to 95, inclusive, of the Public Records of Hillsborough County, Florida, LESS the North 5 feet of the West 55 feet of Lot 8 deeded to the City of Tampa in O.R. Book 1492, Page 732, of the Public Records of Hillsborough County, Florida.
 
And
 
Parcel VI:
 
Lots 11 and 12, Block 3, Re-Plat of Drew Park, according to the Plat thereof on file in the Office of the Clerk of the Circuit Court in and for Hillsborough County, Florida recorded in Plat Book 29, Pages 70 through 95, inclusive, said lands situate, lying and being in Hillsborough County, Florida.
 
All also being described as follows:
 
Lots 1, 2, 3, 8, 9, 10, 11, 12, 25, 26, 27, 28 and 29, Block 3, RE-PLAT OF DREW PARK SUBDIVISION, according to the plat thereof recorded in Plat Book 29, Pages 70 to 95, inclusive, of the Public Records of Hillsborough County, Florida, LESS the North 5 feet of the West 55 feet of Lot 8 deeded to the City of Tampa in Official Records Book 1492, Page 732, of the Public Records of Hillsborough County, Florida.
 
 

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PARCEL THREE:
 
Parcel III:
 
Lot "F" of Block 2, of Re-Plat of Drew Park, as per map or plat thereof, as recorded in Plat Book 29, Pages 70 to 95, of the Public Records of Hillsborough County, Florida;
 
LESS AND EXCEPT:
 
A tract consisting of part of said Lot "F" described as follows: From the Southeast corner of said Lot "F" run North 89°57'35" West along the South boundary of said Lot "F", a distance of 484.0 feet to the Southwest corner of said Lot "F"; run thence North 0°02'35" West along the West boundary of said Lot "F" a distance of 99.10 feet; run thence North 14°10'45" East along the Northwesterly boundary of said Lot "F" a distance of 5.5 feet; run thence South 84°45'20" East a distance of 141.35 feet; run thence North 28°50'30" East a distance of 257.20 feet; run thence South 89°37'15" East a distance of 217.89 feet to a point on the East boundary of said Lot "F"; thence South along said East boundary of Lot "F" a distance of 315.7 feet to the Point of Beginning.
 
AND LESS AND EXCEPT:
 
The North 206.23 feet of the East 98.9 feet of Lot "F", Block 2, Re-Plat of Drew Park, according to the plat thereof on file in the Office of the Clerk of the Circuit Court, in and for Hillsborough County, Florida, recorded in Plat Book 29, Page 72, said lands situate lying and being in Hillsborough County, Florida.
 
Being also described as:
 
 A portion of LOT "F", BLOCK 2, Re-Plat of Drew Park, as recorded in Plat Book 29, Pages 70 to 95, of the Public Records of Hillsborough County, Florida being mare particularly described as follows:
 
BEGIN at the Northwest corner of said LOT “F”, thence S.89°21'25”E., 278.07 feet along the Northerly boundary line of said LOT “F”, said line also being the Southerly right-of-way line of WEST CREST AVENUE to the boundary line of the property described in Official Records Book 9836, Page 1656; thence along said boundary line the following four courses: S.00°30'55”W., 206.26 feet; thence N.89°02'02”W., 118.75 feet; thence S.29°20'56”W., 257.00 feet; thence N.84°12'24”W., 141.38 feet to the Westerly boundary line of said LOT”F”, said line also being the Easterly right-of-way line of NORTH CORTEZ AVENUE; thence N.14°39'55”E., 431.16 feet along said Westerly lot line and said Easterly right-of-way line to the POINT OF BEGINNING.
 

17

 

EXHIBIT B
 
Permitted Title Exceptions
 
 
		
	1.    
	General or special taxes and assessments required to be paid in the year 2011 and subsequent years.

 
		
	2.    
	Easements for sanitary sewers and/or other utilities, as recited/shown on the Plat of Re-Plat of Drew Park recorded in Plat Book 29, Page(s) 70; as affected by Ordinance No. 3756-A, passed and ordained June 22, 1965 by the City Council of the City of Tampa, approved June 25, 1965, recorded July 19, 1965 in Official Records. Book 1478, Page 276. (As to Parcels II, III, V and VI)

 
		
	3.    
	Reservations in favor of the United States of America contained in Quit Claim Deed from The United States of America to Joe L. Moore & Company, Inc., an Alabama corporation, dated April 7, 1949, filed April 8, 1949 in Deed Book 1519, Page 442; as affected by: Correctional Quitclaim Deed dated April 18, 1949, filed April 21, 1949 in Deed Book 1521, Page 284. (As to Parcels II, III, V and VI)

 
		
	4.    
	Reservations in favor of the United States of America contained in Quit Claim Deed from United States of America to G. L. Reeves, Mrs. John B. Sutton, Henry C. Tillman and W. Frank Hobbs, dated March 9, 1950, filed March 15, 1950 in Deed Book 1565, Page 162. (As to Parcels I and IV)

 
		
	5.    
	Covenants, conditions and restrictions contained in the Restriction Agreement by Joe L. Moore & Company, Incorporated, dated April 25, 1949, filed April 25, 1949 in Deed Book 1521, Page 510, but deleting any covenant, condition or restriction indicating a preference, limitation or discrimination based on race, color, religion, sex, handicap, familial status, or national origin to the extent such covenants, conditions or restrictions violate 42 USC 3604(c). (As to Parcels II, III, V and VI)

 
		
	6.    
	Terms, covenants, conditions, rights, duties, obligations and easements contained in the Agreement between City of Tampa, a Florida municipal corporation and Joe L. Moore & Company, Inc., an Alabama corporation, dated September 14, 1949, filed December 30, 1949 in Deed Book 1553, Page 325; as affected by Quit Claim Deed dated December 29, 1949, filed January 5, 1950 in Deed Book 1555, Page 353. (As to Parcels II, III, V and VI)

 
		
	7.    
	Hold Harmless Agreements recorded in Official Records Book 6894, Page 453 and Official Records Book 8221, Page 1494. (As to Parcels I and IV)

 
		
	8.    
	Easement granted to Tampa Electric Company, a Florida corporation, from Jeffrey L. Wooley, dated February 9, 1995, recorded March 3, 1995 in Official Records Book 7684, Page 1570. (As to Parcel I)

 
		
	9.    
	City of Tampa Resolution No. 2002-1001 recorded in Official Records Book 11938, Page 659.

 
		
	10.    
	Hold Harmless Agreement recorded in Official Records Book 12823, Page 1694. (As to Parcel VII)

 
		
	11.    
	Easement granted to Tampa Electric Company recorded in Official Records Book 13388, Page 

18

 

707. (As to Parcel I)
 
		
	12.    
	Hold Harmless Agreement recorded in Official Records Book 13632, Page 1377. (As to Parcel I)

 
		
	13.    
	Matters reflected on the Survey prepared by Scott R. Fuller, Fl. Reg. Land Surveyor No. 5185, of Landmark Engineering & Surveying Corporation, dated 10/11/10.

 
		
	14.    
	Unrecorded 3M Media Lease Renewal Agreement between Margol Properties, as Landlord, and National Advertising Company, d/b/a 3M Media, dated the 13th day of February 1996 relating to an existing billboard on Parcel VII.

 
NOTE: All recording references in this commitment/policy shall refer to the Public Records of Hillsborough County, unless otherwise noted. 
 

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EXHIBIT C
 
LEASE AGREEMENT
 
THIS LEASE AGREEMENT (this “Lease”) is made and effective as of the ____ day of ____________, 2010 (the “Effective Date”), by and between ______________________________, (“Lessor”), and JEFFREY I. WOOLEY (“Lessee”).
 
WITNESSETH:
 
1.    Leased Premises. Lessor hereby demises and leases to Lessee and Lessee hereby accepts from Lessor that certain office space located within the Courtesy Nissan building (the “Building”) located on the property (the “Property”) at 3800 West Hillsborough Ave, Tampa, Florida as further described in the sketch attached hereto as Schedule A (the “Leased Premises”). The Leased Premises consists of an existing single office, together with an adjoining area for an executive assistant, as show on Schedule A. In addition to the Leased Premises, Lessee has certain appurtenant access, parking and use rights but only to the extent expressly set out in this Lease. Lessee hereby accepts the Leased Premises in the condition they are in at the beginning of this Lease, subject to all applicable zoning, municipal, county and state laws, ordinances and regulations governing and regulating the use of the Leased Premises and any covenants or restrictions of records, and agrees to maintain said Leased Premises in the same condition, order and repair as they are at the commencement of this Lease, excepting reasonable wear and tear arising from the use thereof under this Lease. Lessee acknowledges that Lessor has made no representation nor given any warranty, as to the present condition of the Leased Premises or of the improvements located thereon or appurtenants thereto.
 
2.    Term. 
 
(a)    Commencement. This Lease is for a ten (10) year term (the “Term”) commencing on the Effective Date, and ending at 5:00 p.m. on the tenth (10th) anniversary of the Effective Date, unless the Lease is sooner terminated or the expiration date of the Term is accelerated as provided for in this Lease; provided that the Term shall automatically expire upon (i) the death of Lessee; or (ii) Lessee's failure to utilize the Leased Premises for one hundred eighty (180) consecutive days, unless during the 180-day period Lessee provides written notice to Lessee that it intends to utilize the Leased Premises at some point in the future. 
 
(b)    Surrender at End of Term; Waiver. Lessee shall immediately surrender possession of the Leased Premises at the expiration of the Term, or upon its sooner termination. Lessee shall remove all of Lessee's property and leave the Leased Premises broom clean, free of debris and in good order and condition. In addition, Lessee shall deliver to Lessor all keys, access cards or other entry devices for the Leased Premises or Building. Any property of Lessee remaining in the Leased Premises or elsewhere on the Property at the expiration of the Term or sooner termination of this Lease shall be deemed abandoned by Lessee and may be disposed of as Lessor deems appropriate without any liability or accounting to Lessee.
 
(c)    Holding Over. Lessee shall not remain in possession of the Leased Premises after the expiration of the Term or sooner termination of this Lease without the express written consent of Lessor (a “Holdover”). During any Holdover Lessee shall remain bound by and subject to all the terms of this Lease, but Lessor shall not be required to provide any utilities or services under Section 4. During the period of any Holdover, Lessee shall be liable to Lessor for holdover rent determined on a per diem basis for each day of the Holdover. The daily Holdover rent shall be an amount equal to $250 multiplied by a fraction the numerator of which is the CPI Index (CPI-U, U.S. City Average, or equivalent successor index) for the month two months prior to the month in which the Holdover commences and the denominator of which is the corresponding CPI 

20

 

Index for September 2010. 
 
3.    Rent. This Lease is being entered into as part of a larger transaction contemplated pursuant to an Agreement of Purchase and Sale dated {**________________}, 2010 between Lessor, as Purchaser and Lessee, as Seller (the “Purchase Contract”). The Closing under the Purchase Contract corresponds to the Effective Date of this Lease. This Lease constitutes a portion of the consideration under the Purchase Contract, accordingly, no rent or other payments for real estate taxes, insurance, operating costs or utilities is due or payable, monetary or otherwise, except as otherwise expressly provided for in this Lease. If it is determined that any sales taxes are due in connection with this Lease, Lessee shall be responsible for the timely payment of the sales taxes, together with any penalties and interest for the late payment thereof.
 
4.    Utilities and Services. All utilities and services, if utilized by Lessee during the Term, shall be paid for by Lessor directly to such applicable vendor, including, but not limited to, gas, heat, electric, sewer, lighting, window cleaning, cable, high speed internet, janitorial expenses and trash disposal. Lessor shall not be liable if the furnishing by any supplier of any utility or other service to the Leased Premises shall be interrupted or impaired for any reason. Lessor has no obligation to provide any utilities or services other than those which are currently provided to the Leased Premises and reserves the unrestricted right to change providers at any time and from time to time.
 
5.    Use Clause. Lessee shall use the Leased Premises for general office purposes for Lessee's own personal use only. Lessee shall not use the Leased Premises for any illegal or improper purpose which shall constitute a nuisance nor do or suffer anything to be done in or about the Leased Premises which will violate any laws, rules, regulations or ordinances, or increase the rate of fire or other insurance or jeopardize the coverage of the same. Lessee accepts the Leased Premises in their “As-Is”, “Where Is” state and condition.
 
6.    Lessee's Obligations. Lessee shall: 
 
(a)    Use the Leased Premises only for personal office use.
 
(b)    Use in a reasonable and non-excessive manner, all electrical, plumbing, sanitary, heating, ventilating, air conditioning and other facilities and appliances in or on the Leased Premises.
 
(c)    Not permit any Lessee Invitee (as defined in Section 9) to destroy, damage, impair or remove any part of the structure of the Leased Premises or Building, nor shall Lessee do any such thing.
 
(d)    Not cause liens of any kind (whether for materials, wages, labor or services) to be placed against the Leased Premises or Property. If any such liens are filed, with or without Lessee's knowledge, Lessee shall immediately, at Lessee's sole cost and expense, take whatever action is necessary to cause such liens to be satisfied and discharged within ten (10) days of a demand from Lessor. Lessor's interest in the Property is not subject to liens for improvements made for, by or on behalf of Lessee.
 
(e)    Not use the Leased Premises for the production, sale or storage of any toxic or hazardous chemicals, wastes, materials or substances, or any pollutants or contaminants, as those terms are defined in any applicable federal, state, local or other governmental law, statute, ordinance, code, rule or regulation relating to protection of the environment (“Hazardous Substances”), not use any Hazardous Substance in the Leased Premises, and not permit any Hazardous Substance to be disposed of from, in or on the Leased Premises. Lessor shall have the right to enter the Leased Premises to inspect the same for compliance with the provisions of this Section. Lessee agrees to indemnify Lessor and its partners against, and to hold Lessor and its partners harmless from, any and all claims, demands, judgments, fines, penalties, costs, damages and 

21

 

expenses resulting from any violation by Lessee of this Section or of any laws, statutes, ordinances, codes, policies, orders, rules and regulations regulation or imposing standards or requirements in connection with Hazardous Substances (“Environmental Regulations”), including court costs and attorneys' fees in any suit, action, administrative proceeding or negotiations resulting therefrom, and including costs of remediation, clean-up and detoxification of the Leased Premises and the environment. Lessee's obligations and liabilities under this Section shall survive the expiration or termination of this Lease.
 
(f)    Not use the Leased Premises in any manner, or engage in any activities on the Property that would interfere with the operation of the businesses being operated on the Property by Lessor or any subtenant of Lessor.
 
7.    Maintenance and Repairs. Lessor shall be responsible for all maintenance, repair and replacement of the Building in which the Leased Premises are located, including roofs, floor slabs, painting, sprinkler systems (including monitoring costs) and any other structural and non-structural maintenance, repairs and replacements, but not finish items such as carpeting and painting. The heating and air conditioning equipment serving the Leased Premises shall at all times be kept in good order, condition and repair by Lessor. Lessor's obligation to maintain and repair hereunder shall not include any of Lessee's personal property, such as computers, fax machines, copiers, refrigerators, etc. 
 
8.    Alterations; Addition. 
 
(a)    Lessee shall not make any alterations, additions or improvements to the Leased Premises (or elsewhere within the Property) without the prior written consent of Lessor, which Lessor may withhold in its sole and absolute discretion. All such work shall be carried on in compliance with all governmental orders, regulations and permits.
 
(b)    Unless otherwise agreed to in writing, all alterations, additions or improvements constituting a material part of the structure of the Leased Premises shall become the property of Lessor at the end of the Term and shall remain in and be surrendered with the Leased Premises upon expiration or termination of this Lease. Lessee may remove any other alterations, additions, improvements, appliances or equipment installed by Lessee which can be removed without substantial damage to the Leased Premises. Lessor may condition any alteration, addition or improvements upon Lessee's agreement to remove it or to allow it to remain upon the expiration or earlier termination of this Lease. Lessee shall repair all damage resulting from the removal of any of the foregoing items and make proper restoration of the Leased Premises, to Lessor's reasonable satisfaction (which obligation shall survive the expiration or earlier termination of this Lease). 
 
9.    Access; Parking. 
 
(a) Lessee's Access. Lessee, its agents, employees, invitees, and guests, shall have uninterrupted and unimpeded access to the Leased Premises and reasonable ingress and egress to common and public areas of the Building twenty-four hours a day, seven days a week; provided, however, Lessor, by reasonable regulation imposed upon the Building operations, may (i) limit access to certain areas to employees and/or business customers only (and thereby exclude Lessee therefrom), and (ii) limit and control such access for the comfort, convenience, safety and protection of tenants, agents, employees, invitees, and guests in the Building, or as needed for making repairs and alterations or for security purposes (“Access Regulations”). Lessee shall be responsible for providing access to the Leased Premises to its agents, employees, invitees and guests (“Lessee's Invitees”) after business hours and on weekends and holidays, but in no event shall Lessee's use of and access to the Leased Premises during non-business hours compromise the security of the Building. Lessee will comply with and cause Lessee's Invitees to comply with the Access Regulations. 

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(b) Lessor's Access. Lessor shall have the right, at all reasonable times and upon reasonable oral notice, either itself or through its authorized agents, to enter the Leased Premises (i) to make repairs, alterations or changes as Lessor deems necessary, (ii) to inspect the Leased Premises, (iii) to confirm compliance with this Lease, (iv) to exercise rights or remedies hereunder, and (v) to show the Leased Premises to prospective mortgagees and purchasers, all in a manner reasonably intended to minimize disturbance of Lessee's business. 
 
(c) Parking. During the term of this Lease, Lessee shall have the exclusive use of at least one (1) designated parking space in the parking area supporting the Building (the “Reserved Space”). The Reserved Space may be relocated from time to time by Lessor, but shall at all time be among the most conveniently located parking spaces available. In addition, Lessee shall have the non-exclusive use (for Lessee's Invitees while visiting Lessee) in common with Lessor, other tenants of the Building, their guests, agents, employees, invitees and guests on a space available basis, of the non-reserved common automobile parking areas, driveways, and walkways of the Building, subject to rules and regulations for the use thereof as prescribed from time to time by Lessor (“Parking Regulations”). The Reserved Space will be designated as “reserved” but Lessor shall have no obligation to police the usage of the Reserved Space. Lessee acknowledges that Lessor has no obligation to provide security or a parking lot attendant and Lessor shall have no liability on account of any loss or damage to any vehicle or the contents thereof, or any personal injury, property damage or other tort liability suffered by Lessee or any Leseee Invitee, and Lessee hereby agrees to bear the risk of loss for same. If and when so requested by Lessor, Lessee shall furnish Lessor with the license numbers and descriptions of any vehicles of Lessee's Invitees. Lessor reserves the right to designate and change from time to time the parking spaces to be utilized by Lessee's Invitees. 
 
10.    Insurance and Indemnification.
 
(a)    Lessee's Insurance.
 
(1)    Personal Property. Lessee shall be responsible to provide insurance coverage on Lessee's personal property in and about the Leased Premises. In no event shall Lessor have any liability to Lessee for any loss of or damage to Lessee's personal property, including, but not limited to damage by fire, theft, leaking water, water sprinkler discharge or otherwise.
 
(2)    Comprehensive General Liability Insurance. Lessee shall maintain comprehensive general liability insurance covering all occurrences within the Leased Premises or involving Lessee or Lessee's Invitees occurring anywhere on the Property during the Term (and during any Holdover) with limits of coverage of not less than One Million Dollars ($1,000,000), combined single limit, per occurrence, with a deductible (or self insured amount) not to exceed a total of $20,000. 
 
(3)    Lessor as Additional Insured. Lessor (and such other parties as may be designated by Lessor) shall be named as an additional insured under Lessee's comprehensive general liability insurance policy. Prior to commencement of the Term or immediately thereafter, Lessee shall provide evidence of such coverage and, at least thirty (30) days prior to the expiration of such coverage (and within ten days of a written request by Lessor), evidence of the renewal thereof, all of which evidence shall be reasonably satisfactory to Lessor. Such insurance shall also contain a provision that the same may not be cancelled without thirty (30) days prior written notice to Lessor by certified or registered mail.
 
(b)    Lessee's Indemnity and Repairs. Lessee will indemnify, defend, protect and hold Lessor and Lessor's subtenants and their respective agents, employees and invitees harmless from and against any and all demands, claims, proceedings, actions or causes of action, losses, damages, liabilities, costs or expenses 

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(including attorneys fees and costs) arising from or occasioned by (i) Lessee's use or occupancy of the Leased Premises; (ii) any occurrence on the Leased Premises or any occurrence involving Lessee's Invitees anywhere on the Property; (iii) any act, omission, or negligence of Lessee or Lessee Invitees; or (iv) any violation of this Lease or failure to comply with any of its terms by Lessee (including, without limitation, a violation of the Access Regulations or Parking Regulations). Without intending to limit the general nature of the foregoing, Lessee will promptly repair to Lessor's reasonable satisfaction (or as to repairs outside the Leased Premises reimburse Lessor for the reasonable cost of any repairs made by Lesssor of) any damage caused by Leseee or any Lessee Invitee. This Section will survive the termination of this Lease and the expiration of the Term of this Lease.
 
11.    Fire or Other Hazard; Condemnation. 
 
(a)    Partial Damage. If the Leased Premises shall be partially damaged by fire or other hazard but not to such extent as to render the Leased Premises wholly untenantable, repairs shall be made by Lessor as soon as reasonably may be done. In the event that the Leased Premises have not been substantially repaired within twenty (20) days after the occurrence of such fire or other hazard, Lessee may, upon written notice to Lessor, terminate this Lease by written notice to Lessor and thereby both Lessor and Lessee shall be relieved of all obligations hereunder, except those that expressly survive a termination of this Lease.
 
(b)    Material Damage. In the event the Building is damage by fire or other hazard such that Lessor (in its sole discretion) elects, at any time after the occurrence of such fire or other hazard to not substantially repair the Building to its condition prior to the casualty, Lessor shall have the right to terminate this Lease by written notice to Lessee and thereby both Lessor and Lessee shall be relieved of all obligations hereunder, except those that expressly survive a termination of this Lease. 
 
(c)    Notice to Lessor. Lessee shall notify Lessor of any damage to the Leased Premises by fire or other hazard and also of any dangerous or defective conditions within the Leased Premises promptly upon the occurrence of such fire or other hazard or discovery of such condition.
 
(d)    No Liability. In no event in the case of any such destruction shall Lessor be required to repair or replace Lessee's stock in trade, leasehold improvements or other personal property of Lessee.
 
(e)    Taking. In the event that all or a part of the Leased Premises shall be taken by eminent domain or conveyed to the condemning authority in lieu of a condemnation (a “taking”) which affects the purpose for which the Leased Premises were leased or which materially prevents Lessee from the enjoyment of its rights under this Lease, Lessor or Lessee may terminate this Lease.
 
(f)    Taking Waiver. Lessee waives all claims against Lessor by reason of the complete or partial taking of the Leased Premises and hereby relinquishes and assigns unto Lessor any rights and damages to which Lessee might otherwise be entitled for condemnation of the leasehold estate created by this Lease; provided, however, that Lessee shall nevertheless be entitled to make any claims which Lessee may have against the condemning authority for relocation damages, damages for Lessee personal property and any other payments lawfully due (except as assigned to Lessor above). It is the parties intent that all condemnation awards and claims relating to the real estate on which the Leased Premises are located shall belong solely to Lessor and Lessee shall have no claim to any interest therein, including, but not limited to, any claim for any leasehold interest or easement rights.
 
(g)    Replacement Premises. If this Lease is terminated by Lessor under this Section, Lessor shall provide to Lessee, at Lessee's option (with the election by Lessee to be made within ten days of a request by 

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Lessor), either the Replacement Rent provided for in Section 14 or the Relocated Premises as provided for in Section 28 (which may or may not be part of a relocation of Lessor's offices).
 
12.    Assignment; Subletting.  This Lease is personal to Lessee and Lessee shall not transfer, assign or encumber this Lease, sublet or rent the Leased Premises or any part thereof, nor transfer any right to possession or occupancy thereof to any person, corporation, partnership or association, nor advertise the same in any newspaper or other place. 
 
13.    Default. Any one (1) or more of the following shall constitute an “Event of Default” under this Lease: 
 
(a)     Failure by either party to perform or observe any term, covenant or condition contained in this Lease or any Access Regulation or Parking Regulation (a “Breach”), which Breach shall continue for a period of fifteen (15) days after written notice received thereof; provided, however, that if such obligation is of such nature that more than fifteen (15) days are required for its performance then such party shall not be deemed to be in default hereunder if it commences performance within such fifteen (15) day period and thereafter proceeds diligently to prosecute the same to completion;
 
(b)     An assignment by a party for the benefit of creditors or the appointment of a receiver for legal proceedings or otherwise;
 
(c)     Any Breach by Lessee if prior written notice of the same Breach (i.e., a prior and separate failure to comply with the same term, covenant, condition, Access Regulation or Parking Regulation) was given to Lessee by Lessor twice during the prior six (6) month period; 
 
(d)     The institution of bankruptcy proceedings by a party, or institution of bankruptcy proceedings against a party, which are not withdrawn or dismissed within sixty (60) days after the institution of such proceedings: or 
 
(e)     Any default by the Seller under the Purchase Contract beyond any applicable notice and cure period provided for therein.
 
14.    Termination Arising from Default; Lessee Remedy. In the event that a party commits, or allows an Event of Default (as set forth in Section 13 above) to occur, the non-defaulting party may (without any further notice or cure or grace period) serve written notice on the other party as to the effective date of termination of this Lease. In such event, the defaulting party shall have no right to avoid such termination by the performance of any condition, term or covenant broken. A termination of this Lease under the foregoing provision shall not be deemed a waiver of any other rights or remedies available hereunder, at law or in equity, nor shall such termination relieve the other party of its liability for any actual damages or losses suffered by reason of such default. Upon the termination of this Lease by Lessee as a result of the occurrence of an Event of Default by Lessor beyond all applicable cure periods, Lessee's right of termination hereunder shall include the right to enter into a replacement lease with a third party for a term equal to or less than the remainder of the Term and for space that is approximately the same size and dimensions as the Demised Premises, with all reasonable rent, operating expenses, utility costs and other standard rental obligations of the replacement lease (“Replacement Rent”) being subject to full reimbursement by Lessor (it being understood that all monetary provisions of the Replacement Lease shall be consistent with the then prevailing market rates); provided, however, that in no event shall the Replacement Rent to be paid by Lessor exceed what would have been the fair market rent for the Leased Premises for the shorter of (i) the term of the replacement lease and (ii) the remainder of the Term of this Lease. Lessor shall have thirty (30) days (upon 

25

 

Lessor's receipt of a detailed invoice from Lessee) to reimburse Lessee for all reasonable Replacement Rent under the Replacement Lease. Other than for the Replacement Rent, Lessor shall have absolutely no liability or obligations under, for or in connection with the replacement lease. 
 
15.    Limitation of Liability. EXCEPT AS PROVIDED FOR IN SECTION 14 ABOVE AND IN THE INDEMNIFICATIONS (AND RELATED OBLIGATIONS) SET OUT IN SECTIONS 6 AND 10, NEITHER PARTY SHALL BE LIABLE UNDER THIS LEASE FOR ANY INCIDENTAL, CONSEQUENTIAL, INDIRECT OR SPECIAL, LOSSES, DAMAGES OR EXPENSES. IN ADDITION, LESSOR SHALL HAVE NO PERSONAL LIABILITY HEREUNDER; ANY CLAIM BY LESSEE SHALL BE LIMITED TO LESSOR'S INTEREST IN THE PROPERTY. 
 
16.    Prevailing Party; Attorneys' Fees and Legal Costs. Where litigation is instituted as between Lessor and Lessee for any cause arising under or related to this Lease, the prevailing party in such litigation shall be entitled to recover in addition to all other legal damages, the reasonable expenses of such litigation including attorneys' fees and other legal costs. 
 
17.    Quiet Enjoyment. Lessor represents and warrants that it is the true and lawful owner of the Leased Premises and is lawfully empowered to enter into this Lease, and that so long as Lessee shall timely and fully perform all of Lessee's covenants and obligations hereunder, Lessee shall have and enjoy quiet enjoyment and peaceable possession of the Leased Premises, subject, however, to all the terms, covenants and conditions of this Lease. 
 
18.    Waiver of Non-Performance. Failure by Lessor or Lessee to exercise any of their respective rights hereunder upon non-performance by the other party of any condition, covenant or provision herein contained shall not be construed as a waiver thereof, nor shall the defective performance or waiver of non-performance of any such condition, covenant or provision by the other party be construed as a waiver of the rights of the non-defaulting party as to any subsequent defective performance or non-performance hereunder. 
 
19.    Entire Contract. This Lease constitutes the entire contract between the parties hereto and there are no understandings, promises, representations or warranties, oral, written or otherwise, relating to the subject matter of this Lease, which exist or bind any of the parties hereto, their respective heirs, executors, administrators, successors or assigns, except as set forth herein. All prior agreements and understandings relative to Lessee's use of the Leased Premises or any other part of the Property are superseded by this Lease and of no further force or effect. No amendment, change or addition to this Lease shall be binding upon Lessor or Lessee unless reduced to writing and signed by both parties. No waiver of any of the terms, covenants or conditions of this Lease shall be enforceable unless reduced to writing and signed by the party granting the waiver.
 
20.    Applicable Law. It is mutually understood and agreed that this Lease shall be interpreted in accordance with the laws of the State of Florida and that no presumption shall be deemed to exist in favor of or against either party hereto as a result of the preparation or negotiation of the same. 
 
21.    Severability. If any provision of this Lease is held invalid or unenforceable by any court of competent jurisdiction, the other provisions of this Lease will remain in full force and effect. Any provision of this Lease held invalid or unenforceable only in part or degree will remain in full force and effect to the extent not held invalid or unenforceable. 
22.    Notices. All notices, consents, waivers and other communications required or permitted by this Lease shall be in writing and shall be deemed given to a party when: (a) delivered to the appropriate 

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address by hand or by nationally recognized overnight courier service (costs prepaid); (b) sent by facsimile with confirmation of transmission by the transmitting equipment; or (c) received or rejected by the addressee, if sent by certified mail, return receipt requested or by nationally recognized overnight courier service, in each case to the following addresses (except that hand deliveries need not be made to the following addresses if delivered directly to the individual named below) or facsimile numbers and marked to the attention of the person designated below (or to such other address, facsimile number, or person as a party may designate by notice to the other party):
LESSOR:
 
Asbury Automotive Tampa, L.P.
2905 Premiere Parkway, NW, Suite 300
Duluth, GA 30097
Attention:    George Karolis
Telephone:    (770) 418-8200
E-Mail:    gkarolis@asburyauto.com
Facsimile:    (678) 550-9054
 
With a simultaneous copy to:
 
Asbury Automotive Group, Inc.
2905 Premiere Parkway, NW, Suite 300
Duluth, GA 30097
Attention:    Elizabeth B. Chandler
Vice President & General Counsel
Telephone:    (770) 418-8200
E-Mail:    echandler@asburyauto.com
Facsimile:    (678) 550-9054
 
LESSEE:
 
Jeffrey I. Wooley
3800 W. Hillsborough Avenue
Tampa, FL 33614
 Telephone:    (813) 865-8000
E-Mail::    aireverett@aol.com
Cell Phone:     (813) 240-4064
Facsimile:    (813) 874-2338
 
 
23.    Terminology. All words herein referring to Lessor or Lessee shall be taken to be such gender and number as the circumstances may require.
 
24.    Construction. The headings of sections within this Lease are provided for convenience only and will not affect its construction or interpretation. All references to sections refer to the corresponding sections of this Lease, unless otherwise expressly indicated.
 
25.    Counterparts. This Lease may be executed in counterparts, each of which shall be deemed to be an original, but all of which taken together shall constitute one (1) and the same instrument.

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26.    Termination.     Lessee shall have the right to terminate this Lease for cause or no cause whatsoever at any time upon thirty (30) days prior written notice delivered to Lessor in accordance with Section 22 herein. Should Lessee exercise such termination right, it shall remain liable and responsible for the payment of any outstanding liabilities and/or fees incurred pursuant to the terms of this Lease prior to the termination date as well as any obligations that survive a termination of this Lease. 
 
27.    Recordation. This Lease shall not be recorded by Lessee. Any recordation of this Lease by Lessee shall constitute a default hereunder, giving Lessor an immediate right to terminate this Lease.
 
28.    Relocation. Lessor expressly reserves the right, at Lessor's sole cost and expense, to relocate the Leased Premises to other space ("Relocated Premises") within the Building (or, in the event Lessor transfers all or substantially all of its offices from the Building to another location within a fifty (50) mile radius of the Building (“Replacement Administrative Offices”), within such Replacement Administrative Offices) that consists of approximately the same dimensions and size as the Leased Premises. The right granted to Lessor in this Section 28 shall be conditioned on Lessee not suffering any restriction of access or enjoyment of use between the transfer from the Leased Premises to the Relocated Premises, other than is reasonably necessary in connection with the move from the Building to the Replacement Administrative Offices. The reasonable cost of moving Lessee's personal property to, and the decoration and preparation of, the Relocated Premises shall be at Lessor's sole expense. Lessor shall have the right, in Lessor's sole discretion, to use any decorations and materials from the Leased Premises, or other materials, so that the Relocated Premises shall be comparable in its interior design and decoration to the Leased Premises. In the event Lessee is transferred to a Relocated Premises, all terms and conditions of this Lease shall remain unchanged, including Lessee's monetary obligations hereunder. In connection with any improvements or renovations to or replacement of the Building, the Leased Premises may be temporarily relocated to the Relocated Premises and then relocated back, both such relocations being pursuant to the terms of this Section. 
 
29.    Early Expiration. Notwithstanding anything else in this Lease, if (i) the Property is sold by Lessor to an unaffiliated third party and not leased-back by Lessor (or an affiliate) such that Lessor (or an affiliate) no longer operates the Property or (ii) the business operated at the Property by Lessor (or its affiliate) is closed and no substitute business is operated which houses Replacement Administrative Offices, as contemplated by Section 28 above), Lessor may, by written notice to Lessee, terminate this Lease. If this Lease is terminated by Lessor under this Section, Lessor shall provide to Lessee, at Lessee's option (with the election by Lessee to be made within ten days of a request from Lessor), either the Replacement Rent provided for in Section 14 or the Relocated Premises as provided for in Section 28 (which may or may not be part of a relocation of Lessor's offices).
 
30.    Subordination. This Lease and the rights of Lessee under this Lease are and shall be in all respects subject and subordinate to the lien of any mortgage now or in the future encumbering the Property. This subordination shall be automatic upon the filing of a mortgage encumbering the Property and no additional document of subordination shall be required.
 
31.    Radon Gas Disclosure. Florida Statute 404.056(5) requires the following disclosure statement:
 
"RADON GAS: Radon is a naturally occurring radioactive gas that, when it has accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in buildings in Florida. Additional information regarding radon and radon testing may be obtained from your county health department."

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IN WITNESS WHEREOF, Lessor and Lessee have executed this Lease as of the date first written above. 
    
 
					
	WITNESSES:
	 
	LESSOR:

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

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	WITNESSES:
	 
	LESSEE:

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	Print Name:
	 
	 
	JEFFREY I. WOOLEY

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

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SCHEDULE A
 
(SKETCH OF LEASED PREMISES)

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Attachment #1
 
 
A copy of the Disclosure Letter follows this Page.
 
 

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Attachment #2
 
 
A site plan showing the Impacted Areas follows this Page.
 
 

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