Document:

Exhibit
10.9

 

PURCHASE AND SALE AGREEMENT

AND ESCROW INSTRUCTIONS

 

BY AND BETWEEN

 

CIRCLE K STORES INC.,

A TEXAS CORPORATION

 

AS SELLER

 

AND

 

DBNCF CIRCLE LLC,

A DELAWARE LIMITED LIABILITY COMPANY

AS BUYER

 

 

PURCHASE AND SALE AGREEMENT

 

This PURCHASE AND SALE
AGREEMENT (“Agreement”) is entered into as of March 15, 2004, by and
between CIRCLE K STORES INC., a Texas corporation (“Seller”), and DBNCF CIRCLE
LLC, a Delaware limited liability company (“Buyer”).  Buyer and Seller are from time to time
referred to herein individually as a “Party”, and collectively as the “Parties.”

 

R E C I T A L S:

 

Seller owns certain
Circle K retail petroleum properties (each individually a “Property” and collectively
the “Properties”)
more particularly described as follows:

 

I.                                         All
of the “Real
Properties” (each individually, a “Real Property”), collectively
described as follows:  good and
indefeasible title in fee simple to the land described on Schedule 1
attached hereto (collectively, the “Land”), together with all rights and
interests appurtenant thereto, including, without limitation, Seller’s right,
title, and interest, if any, in and to all (A) adjacent streets, alleys,
rights-of-way and any adjacent strips or gores of real estate;
(B) buildings, structures and other improvements located on the Land (the
“Improvements”);
and (C) the fixtures located at or in the Land or Improvements [****];
and

 

II.                                     All
of Seller’s right, title and interest, if any, of the following located at any
of the Real Properties on the Closing Date (collectively, the “Personal
Property”):  the canopies,
walk-in coolers/refrigerator cases, freezers and HVAC equipment.

 

Seller desires to sell to
Buyer, and Buyer desires to purchase from Seller, all of the Properties subject
to the terms and conditions set forth in this Agreement.

 

Upon the consummation of
the transactions contemplated herein, and concurrently therewith, Seller
desires to lease from Buyer, and Buyer desires to lease to Seller, each of the
Properties pursuant to certain Master Lease Agreements (as defined below).  Any capitalized term used herein but not
defined herein shall have the meaning set forth in the form Master Lease
Agreement attached hereto as Exhibit A .

 

A G R E E M E N T:

 

NOW, THEREFORE, in
consideration of the mutual covenants set forth herein, Seller and Buyer agree
as follows:

 

1.                                      Conveyance
of Properties.  On the terms and
subject to the conditions set forth in this Agreement, at Closing (as
hereinafter defined), Seller shall sell and convey to Buyer, and Buyer shall buy
and accept from Seller, each of the Properties.

 

2.                                      Purchase
Price.  Subject to the terms of
this Agreement, the purchase price (the “Purchase Price”) for the Properties shall
be $77,890,000,
payable by (i) certified check drawn

 

[****] Redacted in accordance with
applicable practice with Autorite des
marches financiers (Quebec Securities Commission)

 

 

on a federally- or
state-chartered commercial bank which is a member of the New York Clearing
House Association, and which has net assets of at least $500,000,000 (“Acceptable
Bank”), or wire transfer of immediately available funds to Seller at
the Closing.  The Purchase Price shall
be paid by Buyer to LandAmerica Financial Services, Inc., as escrow agent (the
“Title
Company”) to be held in an escrow, pursuant to the terms and
conditions hereinafter provided (the “Escrow”) in an account maintained by Title
Company at an Acceptable Bank reasonably acceptable to Buyer and Seller on
behalf of the Parties and distributed by Title Company at Closing to Seller, or
as Seller may direct, pursuant to the terms and conditions hereinafter set
forth.

 

3.                                      Property
Documents.  Seller hereby
represents it has delivered to Buyer or otherwise made reasonably available to
Buyer, the documents set forth in subsections (a) through (p) of this
Section 3 (collectively, the “Property Documents”); provided, however,
that Buyer acknowledges and agrees that it has, as of the date hereof,
received, reviewed and approved each of the Phase I Environmental Site
Assessments and Sensitive Receptors Surveys prepared by Shaw Environmental Inc.
and dated in February, March and April, 2003 (the “Site Assessments”) and
the other Property Documents specified in Schedule 2 attached
hereto (collectively, with the Site Assessments, the “Schedule 2
Documents”).  Seller, with Buyer’s
consent, has engaged directly third parties in connection with the preparation
of all title reports, surveys and appraisals and that the scope of any such
engagement has been approved by Buyer. 
Buyer has engaged all other third parties in connection with its
acquisition of the Properties.

 

(a)                                  Commitments
for title insurance covering each fee estate in each Real Property
(collectively “Title Commitments”; each individually a “Title Commitment”) from Title
Company, setting forth the status of title to each Real Property, showing all
matters of record affecting each Real Property, together with a true, complete
and (to the extent available) legible copy of all documents referred to in each
Title Commitment;

 

(b)                                 Current
ALTA Land Title “As Built” Survey (collectively, the “Surveys”; each individually,
a “Survey”)
for each Real Property, containing the certification set forth on Exhibit B,
as the same may be required to be modified (subject to Buyer’s consent, which
shall not be unreasonably withheld) to conform with requirements of particular
jurisdictions and surveys;

 

(c)                                  [****]

 

(d)                                 Evidence
of insurance covering all Properties as required pursuant to the Master Lease
Agreements, whose effective date shall be no later than the Closing Date;

 

(e)                                  To
the extent in Seller’s possession, a certificate of occupancy regarding each
Real Property;

 

[****]
Redacted in accordance with applicable practice with Autorite des marches financiers (Quebec Securities
Commission)

 

2

 

(f)                                    Profit
and loss statements regarding each Property and such other financial statements
and information as Buyer reasonably shall have requested regarding Seller or
the Properties;

 

(g)                                 [****];

 

(h)                                 Any
engineering reports (other than the Site Assessments) in Seller’s possession
regarding the Real Properties, including without limitation a description of
any deferred maintenance and repairs and an estimate of the cost thereof, and a
reliance letter in favor of Buyer for each such report from the person or
entity that prepared same;

 

(i)                                     MAI
Appraisal (including Land valuation) for each Real Property (each, an “Appraisal”)
and a reliance letter in favor of Buyer for each Appraisal from the person or
entity that prepared same;

 

(j)                                     UCC,
litigation and tax lien searches from the Title Company or, subject to Seller’s
reasonable approval, another commercially recognized search company regarding
all Properties and Seller;

 

(k)                                  For
each Real Property, zoning permits and regulations (if available) and other
evidence of proper zoning (e.g. zoning letters or zoning reports), as may be
reasonably available to Seller; and if legal non-conforming uses exist,
evidence that the improvements may be rebuilt to existing specifications
following a casualty or condemnation, as may be reasonably available to Seller;

 

(l)                                     Final
“As Built” plans and specifications for each Real Property, if in Seller’s
possession;

 

(m)                               Any
governmental “no further action” letters regarding any Real Property, if
reasonably available to Seller;

 

(n)                                 [****]

 

(o)                                 All
of the following concerning each Property, in each case if material and if in
Seller’s possession:  any and all
studies, data, reports, agreements, licenses, leases, environmental
assessments, surveys, reports, documents, plans, maps, and permits (to the
extent not already delivered to Buyer pursuant to subsections (a) – (n),
above); and

 

(p)                                 Such
other information regarding Seller, ACT, or any of the Properties that Buyer
reasonably may have requested, to the extent such other information is
reasonably available to Seller.

 

4.                                      Right
of Entry, Inspection.

 

(a)                                  From
and including the date hereof through and including the Closing Date, Seller,
upon at least one (1) business day prior notice from Buyer and subject to the
rights

 

[****]
Redacted in accordance with applicable practice with Autorite des marches financiers (Quebec Securities
Commission)

 

3

 

of Tenants (as
hereinafter defined) under the Leases (as hereinafter defined), shall afford
Buyer and its representatives a continuing right to inspect the Properties and
the Property Documents and Seller hereby grants to Buyer and Buyer’s agents,
employees and consultants a nonexclusive license to enter upon each Real
Property for the purpose of allowing Buyer to conduct whatever soil and
engineering tests, feasibility studies, surveys and other physical examinations
of each Property Buyer deems appropriate. 
Buyer will not perform any invasive testing at any of the Properties
without Seller’s prior written consent, which may be withheld in Seller’s sole
discretion.  Buyer shall at all times
use reasonable efforts not to unduly interfere with the conduct of Seller’s
business at the Properties and the rights of Tenants under the Leases and shall
comply with the Seller’s reasonable requirements such as, without limitation,
for security, safety, insurance and timing. [****]

 

(b)                                 In
the event of any damage to the Properties caused by Buyer, its agents, employees
or consultants, Buyer shall pay the cost incurred by Seller to restore each
Property so affected to its respective condition existing prior to the
performance of such tests, investigations or studies. Buyer shall protect,
defend, indemnify and hold Seller harmless from any and all liability, claims,
losses, costs and expenses (including, without limitation, reasonable
attorneys’ fees and costs) suffered or incurred by Seller for injury to persons
or property as a result of, or in connection with, or caused by Buyer’s
inspections, tests, studies, surveys and examinations of the Properties,
including, without limitation, any injury to persons or property, and any
liability to third parties.  However,
Buyer shall have no liability for any liability, claims, losses, costs and
expenses to the extent attributable to the negligent acts or omissions of
Seller or Seller’s agents, employees, invitees or licensees or resulting from
latent defects the presence of which is not know by Buyer or its agents and not
reasonably discoverable or foreseeable by them or Hazardous Materials within,
on, under or adjacent to any of the Properties the presence of which is not
know by Buyer or its agents and not reasonably discoverable or foreseeable by
them.

 

5.                                      Title
and Other Defects.

 

(a)                                  Buyer
shall have the right, up to one (1) business day prior to the Closing Date, to
deliver written notice to Seller objecting to any material adverse matters
reflected in any Survey or Title Commitment (any such writing, a “Title Notice
Letter”).  All matters set
forth in Surveys or Title Commitments which are identified by Buyer as material
adverse matters in the Title Notice Letter, and all matters which are listed on
the Title Commitments as requirements of the Title Company to issue the applicable
final title insurance policy (other than those requirements which relate to
documents or other items to be provided by Buyer), are referred to herein as “Disapproved
Exceptions.”  All matters set
forth in the Title Commitments or Surveys which are not Disapproved Exceptions
are referred to herein as “Permitted Exceptions.”  Seller, at its sole cost and expense, may
elect to cure (to Buyer’s satisfaction, in its sole discretion) or caused to be
removed from the Title Commitments all Disapproved Exceptions on or before the
Closing Date.  If Seller does not cause
all Disapproved Exceptions to be removed or cured (to Buyer’s satisfaction, in
its reasonable discretion) from any Title Commitment on or before the Closing
Date, Buyer may elect, in its sole discretion, to either (i) purchase the
Property covered by such Title Commitment without a reduction in the Purchase
Price, or (ii) exclude the Property

 

[****]
Redacted in accordance with applicable practice with Autorite des marches financiers (Quebec Securities
Commission)

 

4

 

from the assets to be
purchased hereunder with a reduction in the Purchase Price equal to the amount
set forth on Exhibit C allocated to such Property.  If Buyer shall elect to exclude the Property
from the assets to be purchased hereunder, Seller may elect to provide a
reasonable substitute property (and deliver to Buyer all documents described in
Section 3 with respect to such substitute property as though it were a
Property (“Substitute Property Documents”)) within ten (10) days after
Buyer shall have delivered written notice of such exclusion to Seller, which
substitute property Buyer may, in its sole discretion, accept or reject.  If any such substitute property  is accepted by Buyer, then (x) the Purchase
Price shall be reasonably adjusted by Buyer based upon (1) the value of such
substitute property as reflected by the applicable Substitute Property
Documents, and (2) the amount allocated to the excluded Property as set forth on
Exhibit C; (y) the substitute property shall be a “Property” for all
purposes under this Agreement; and (z) the applicable Substitute Property
Documents shall be “Property Documents” for all purposes under this
Agreement.  If such substitute property
is rejected by Buyer, the Purchase Price shall be reduced by the amount
allocated to the excluded Property as set forth on Exhibit C.  Except as specifically hereinabove provided
in this subsection (a) and except in connection with any breach or default
by Seller of any representation or warranty or other provision in this
Agreement, Buyer shall have no recourse or remedy against Seller as a result of
or in connection with, the existence of, or Seller’s failure or inability to
cure, any material adverse matter identified on the Title Notice Letter
delivered by Buyer to Seller as described in this subsection (a).

 

(b)                                 In
addition to Buyer’s right to notify Seller of any Disapproved Exceptions (as
described in subsection 5(a), above), Buyer shall have the right, up to
one (1) business day prior to the Closing Date, to deliver written notice to
Seller objecting to any other material adverse matters regarding any Property
(except as disclosed in the Schedule 2 Documents), including without
limitation regarding the physical condition (except as disclosed in the
Schedule 2 Documents), zoning condition, location or sales volume of any
Property (any such writing, a “Subsequent Title Notice Letter”), provided
that Buyer agrees to deliver any Subsequent Title Notice Letter as soon as
reasonably possible after Buyer becomes aware of any such material adverse
matter.  Failure of Buyer to deliver to
Seller such written notice within such period shall be deemed to be an
acceptance by Buyer of the conditions described in such items.  In addition, any conditions not identified
as material adverse matters in any such notice shall be deemed accepted by
Buyer, and Buyer shall be deemed to have waived any right to object to such
conditions thereafter, except in connection with any breach or default by
Seller of any representation or warranty or other provision in this
Agreement.  If Seller does not cause all
such matters to be cured (to Buyer’s satisfaction, in its sole discretion) on
or before the Closing Date for any Property, then Buyer may elect, in its sole
discretion, to either (i) purchase
the Property subject to such matters without a reduction in the Purchase Price,
or (ii) exclude the Property from the assets to be purchased hereunder with a
reduction in the Purchase Price equal to the amount set forth on Exhibit C
allocated to such Property.  If Buyer
elects to exclude the Property from the assets to be purchased hereunder,
Seller may elect to provide a reasonable substitute property (and deliver to
Buyer all Substitute Property Documents with respect to such substitute
property) within ten (10) days after Buyer shall have delivered written notice
of such exclusion to Seller, which substitute property Buyer may, in its
reasonable discretion, accept or reject. 
If any such substitute property is accepted by Buyer, then (x) the
Purchase Price shall be reasonably adjusted by Buyer based upon (1) the value
of such substitute property as reflected by the applicable Substitute Property
Documents, and (2) the amount allocated to the excluded

 

5

 

Property as set forth on Exhibit
C; (y) the substitute property shall be a “Property” for all purposes under
this Agreement; and (z) the applicable Substitute Property Documents shall be
“Property Documents” for all purposes under this Agreement.  If such substitute property is rejected by
Buyer, the Purchase Price shall be reduced by the amount allocated to the
excluded Property as set forth on Exhibit C.  Except as specifically hereinabove provided in this
subsection (b) and except in connection with any breach or default by
Seller of any representation or warranty or other provision in this Agreement,
Buyer shall have no recourse or remedy against Seller as a result of or in
connection with, the existence of, or Seller’s failure or inability to cure,
any material adverse matter identified on the Subsequent Title Notice Letter
delivered by Buyer to Seller as described in this subsection (b).

 

6.                                      Representations,
Warranties and Additional Covenants.

 

(a)                                  Seller’s
Representations and Warranties. 
Seller hereby represents and warrants to Buyer that as of the date of
this Agreement and as of the Closing:

 

(i)                                     Qualification
and Authority.  Seller is a
corporation duly organized, validly existing and in good standing under the
laws of the State of Texas.  Seller has
the right, power, and authority to execute, deliver, and perform this
Agreement.  This Agreement, when
executed and delivered by Seller and Buyer, shall constitute the valid and
binding agreement of Seller, and shall be enforceable against Seller in
accordance with its terms, except as enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting the enforcement of creditors’ rights generally and by general
equitable principles.  All requisite
authorizations, consents, resolutions and actions on the part of Seller have
been or will prior to the Closing be obtained, adopted or taken, as applicable,
by Seller (and its affiliates as and if required) in connection with making and
entering into this Agreement and the consummation of the purchase and sale
provided for herein, and no consents or approvals are required from any party
which is not a party to this Agreement in order to consummate such purchase and
sale.  Neither this Agreement nor the
consummation of any of the transactions contemplated hereby violates or shall
violate any provision of any agreement or document to which Seller is a party
or to which Seller is bound.

 

(ii)                                  Bankruptcy.    Neither Seller nor any entity or person in
Control of, having Control over, or under common Control with Seller,
regardless of the number of tiers of ownership, is bankrupt under the Federal
Bankruptcy Code, or has filed for protection or relief under any applicable
bankruptcy or creditor protection statute or has been threatened by creditors
with an involuntary application of any applicable bankruptcy or creditor
protection statute.  Seller is not
entering into the transactions described in this Agreement with an intent to
defraud any creditor or to prefer the rights of one creditor over any
other.  As used in this Agreement, “Control”
means ownership of voting securities sufficient to elect a majority of the
board of directors of a corporation, or analogous ownership interests of
non-corporate entities.

 

(iii)                               Leases.  As used herein, “Leases” means any lease,
tenancy, license, sublease, assignment and/or other rental or occupancy
agreement (including, without limitation, any and all guarantees of any of the
foregoing) heretofore or hereafter

 

6

 

entered into
affecting the use, enjoyment or occupancy of the applicable Real Property or
any portion thereof, including any extensions, renewals, modifications or
amendments thereof; and “Tenant” means any permitted occupant,
tenant, subtenant or licensee of any Real Property.  Attached hereto as Schedule 6(a)(iii) is a true,
correct and complete rent roll for each Real Property (the “Rent Roll”),
which includes all Leases affecting each Real Property.  Except as set forth in Schedule 6(a)(iii),
to Seller’s actual knowledge, as of the date of the Rent Roll: (A) each Lease
is in full force and effect; (B) the Tenants under the Leases have accepted
possession of and are in occupancy of all of their respective demised premises,
have commenced the payment of rent under such Leases, and there are no offsets,
claims or defenses to the enforcement thereof, (C) all rents due and payable
under the Leases have been paid and no portion thereof has been paid for any
period more than 30 days in advance; (D) the rent payable under each Lease is
the amount of fixed rent set forth in the Rent Roll, and there is no claim or
basis for a claim by the Tenant thereunder for an adjustment to the rent; (E)
to the best knowledge of Seller, no Tenant has made any claim against the
landlord under any Lease which remains outstanding, there are no defaults on
the part of the landlord under any Lease, and no event has occurred which, with
the giving of notice or passage of time, or both, would constitute such a
default; (F) there is no present material default by the Tenant under any
Lease; and (G) neither Seller nor any affiliate of Seller holds any security
deposits under the Leases.  Neither the
Leases nor the rents have been assigned or pledged, and no other person or
entity has any interest therein except the Tenants thereunder.  Neither Seller nor any previous landlord
under the Lease has agreed to grant any Tenant any free rent or rent rebate or
to make any contribution to any tenant improvements regarding any Lease.
Neither Seller nor any previous landlord under the Lease has agreed to
reimburse any Tenant for or to pay any Tenant’s rent obligation under any
Lease.  No Tenant has any purchase
option or right of first refusal with respect to all or any portion of any
Property.  No Tenant has any right or
option for additional space at any Property.

 

(iv)                              Compliance
With Laws; Zoning.  Except as set
forth in Schedule 6(a)(iv), to Seller’s actual knowledge, without
duty of inquiry or investigation, the Properties are in compliance with all
applicable zoning, subdivision and land use laws, regulations and ordinances,
all applicable health, fire, and building codes, and all other laws applicable
to the Properties (but excluding from all of the foregoing Environmental Laws,
which are discussed below, and the Americans with Disabilities Act).  To Seller’s actual knowledge, without duty
of inquiry or investigation, all required permits, licenses and certificates
for the lawful use and operation of the Properties, including, but not limited
to, certificates of occupancy, or the equivalent, have been obtained and are
current and in full force and effect.  [****].

 

(v)                                 Property
Condition; Defects.  Except as set
forth in Schedule 6(a)(v), to Seller’s actual knowledge, without
duty of inquiry or investigation,  (A)
there are no latent or patent structural or other material defects or
deficiencies in any Property; (B) city water supply, storm and sanitary sewers,
and electrical, gas and telephone

 

[****]
Redacted in accordance with applicable practice with Autorite des marches financiers (Quebec Securities
Commission)

 

7

 

facilities are
available to each Real Property within the boundary lines of such Real
Property, are sufficient to meet the reasonable needs of each Real Property as
presently contemplated to be used, and no other utility facilities are
necessary to meet the reasonable needs of any Real Property as presently
contemplated; (C) except as disclosed in any Title Commitment, Survey or in any
Schedule 2 Document, no part of any Real Property is within a flood plain
and none of the Improvements create encroachment over, across or upon the applicable
Real Property’s boundary lines, rights of way or easements, and no building or
other improvements on adjoining land create such an encroachment; [****].

 

(vi)                              Taxes.  All real property and sales taxes with
respect to any Real Property which are due and payable have been paid when due
and payable, except for those taxes which are being contested in good faith by
appropriate proceedings and for which adequate reserves have been established.
Except as disclosed in any Title Commitment, there is not presently pending
(and to Seller’s actual knowledge, without duty of inquiry, there is not
contemplated) any special assessment against any Property or any part
thereof.  Except as disclosed in any
Title Commitment, no tax liens have been filed and to the actual knowledge of
Seller, no claims are being asserted with respect to any such taxes.  [****]

 

(vii)                           Contractual
Obligations.  Seller is not in
default in the performance, observance or fulfillment of any of the material
obligations, covenants or conditions contained in any contractual obligation of
Seller beyond any applicable notice and cure period, which default would have a
Material Adverse Effect, and to Seller’s actual knowledge, no condition exists
that, with the giving of notice or the lapse of time or both, would constitute
such a default.

 

(viii)                        Disclosure.  No financial statements or any other
document, certificate or written statement furnished to Buyer by Seller and, to
the actual knowledge of Seller, without duty of inquiry or investigation, no
document or statement furnished by any third party on behalf of Seller, for use
in connection with this Agreement or the transactions contemplated herein,
including without limitation the Property Documents, contains any untrue
representation, warranty or statement of a material fact, and none omits or
will omit to state a material fact necessary in order to make the statements
contained herein or therein not misleading. 
There is no material fact known to Seller that has had or will have a
Material Adverse Effect and that has not been disclosed in writing to Buyer by
Seller or by any third party on behalf of Seller.  As used herein, “Material Adverse Effect” means (A) a
material adverse effect upon the business, operations, properties, assets or
condition (financial or otherwise) of Seller or Alimentation Couche-Tard, Inc.,
a Quebec corporation (“ACT”), with respect to such party taken as a whole, or
(B) the material impairment of the ability of Seller or ACT to perform its
material obligations under any of the Transaction Documents (as defined in
Section 7, below), or (C) the material impairment of Buyer’s rights or
remedies under any of the Transaction Documents.  In determining whether any individual event would result in a
Material

 

8

 

Adverse Effect,
notwithstanding that such event does not of itself have such effect, a Material
Adverse Effect shall be deemed to have occurred if the cumulative effect of
such event and all other then occurring events and existing conditions would
result in a Material Adverse Effect.

 

(ix)                                Suits,
Judgments and Liens.  Except as
expressly set forth on Schedule 6(a)(ix), (A) there are no
lawsuits, claims, suits, or legal, administrative or other proceedings or
investigations pending or, to Seller’s actual knowledge, threatened against or
affecting Seller, or any Property (including, without  limitation eminent domain or condemnation proceedings), nor to
Seller’s actual knowledge, is there any basis for any of the same, and there
are no lawsuits, suits  or legal,
administrative or other proceedings pending in which Seller is the plaintiff or
claimant and which relate to any Property; and (B) there is no action, suit or
legal, administrative or other proceeding pending or, to Seller’s actual
knowledge, threatened which questions the legality or propriety of the
transactions contemplated by the Transaction Documents.  Except for the Permitted Exceptions, upon
proper recording of all of the Deeds (as defined below) and the execution and
delivery by Seller of the Bills of Sale (as defined below), Buyer will own each
Property free and clear of all liens, restrictions, charges and encumbrances.

 

(x)                                   Environmental
Laws; Hazardous Materials.  Except
as set forth in Schedule 6(a)(x), (A) to Seller’s current actual
knowledge, without duty of inquiry or investigation, no Property or Excluded
Fuel Service Equipment is in material violation, [****] for any material violation of any Environmental Laws;
(B) to Seller’s current actual knowledge, without duty of inquiry or
investigation, no Property has been subject to an unlawful deposit of any
Hazardous Materials, or a deposit of Hazardous Materials that required
investigation or remediation, beyond immediate remediation of de minimus spills
of any Hazardous Materials; (C) except in material compliance with
Environmental Laws, neither Seller nor, to Seller’s current actual knowledge,
without duty of inquiry or investigation, any third party, has used, generated,
manufactured, stored or disposed in, at, on, under or about any Property or
transported to or from any Property any Hazardous Materials; (D) to Seller’s
current actual knowledge, without duty of inquiry or investigation, there has
been no release, discharge or migration of any Hazardous Materials from, into,
on, under or about any Property in violation of Environmental Laws; (E) to
Seller’s current actual knowledge, without duty of inquiry or investigation,
there is no fact, condition or circumstance governed by Environmental Laws that
would materially impair, limit or restrict the use of any Property for its
current intended business purpose or its intended use as described in the
Master Lease Agreements; and (F) to Seller’s current actual knowledge, without
duty of inquiry or investigation, there is no amount of any mold at any
Property that would materially impair, limit or restrict the use of any
Property for its current intended business purpose or its intended use as
described in the Master Lease Agreements.

 

(b)                                 Additional
Covenants of Seller Prior to Closing. 
Seller shall prior to Closing and in addition to the covenants set forth
elsewhere in this Agreement:

 

(i)                                     Maintain
such insurance coverage for the Improvements as is presently in place with
respect to such Improvements;

 

(ii)                                  Not
permit any monetary encumbrance, charge or lien to be created upon the
Properties after the date of this Agreement unless such monetary

 

[****]
Redacted in accordance with applicable practice with Autorite des marches financiers (Quebec Securities
Commission)

[****]
Redacted in accordance with applicable practice with Autorite des marches financiers (Quebec Securities
Commission)

 

9

 

encumbrance,
charge or lien has been approved in writing by Buyer, or caused by Buyer or its
agents, or unless such monetary encumbrance, charge or lien will be removed by
Seller prior to the Closing;

 

(iii)                               Not
execute any Lease after the date of this Agreement without the prior written
consent of Buyer, which consent shall not be unreasonably withheld, delayed or
conditioned, so long as it is deemed reasonable for Buyer to condition its
consent on the delivery of a subordination nondisturbance and attornment
agreement in form and substance reasonably acceptable to Buyer;

 

(iv)                              Not
enter into any service, management or other contract relating to any Property
after the date of this Agreement that will survive the Closing without the
prior written consent of Buyer, which consent shall not be unreasonably
withheld or delayed or conditioned;

 

(v)                                 Maintain
each Property in the manner in which the Property is currently maintained,
reasonable wear and tear and damage from casualty excepted;

 

(vi)                              Promptly
notify Buyer in writing if Seller becomes aware that any of the representations
and warranties of Seller set forth in this Agreement are no longer materially
true and correct;

 

(vii)                           Not
sell, convey, assign, transfer, encumber or otherwise dispose of any Property
(except with respect to items of Personal Property, Buyer agrees that Seller
may replace any such time that is worn out, broken, obsolete, or no longer
necessary for the operation of the Real Property to which it is appurtenant,
provided that such item is replaced to the extent necessary for the operation
of such Real Property, and shall not, without the prior written consent of
Buyer, which consent shall not be unreasonably withheld, delayed or
conditioned, make any material modifications or alterations to the Property
(other than any item of Personal Property) after the date of this Agreement;

 

(viii)                        Comply,
and shall cause all persons using or occupying any Property or any part thereof
to comply, in all material respects with all Environmental Laws applicable to
each Property, or the use or occupancy thereof, or any operations or activities
therein or thereon;

 

(ix)                                Comply
in all material respects with all permits, licenses and approvals required by
all applicable Environmental Laws for the use and occupancy of, and all
operations and activities in, each Property (including without limitation
regarding all Excluded Fuel Service Equipment) (“Environmental Permits”) and
keep all such Environmental Permits, in full force and effect in all material
respects until Closing; and

 

(x)                                   Immediately
after receiving notice that any material violation of any Environmental Laws
may have occurred at or about any Property (including without limitation
regarding any Excluded Fuel Service Equipment), deliver written notice thereof
to Buyer with a reasonably detailed description of the event, occurrence or condition
in question.

 

[****]
Redacted in accordance with applicable practice with Autorite des marches financiers (Quebec Securities
Commission)

 

10

 

Buyer and Seller
acknowledge and agree that none of the foregoing covenants in this
subsection (b) shall survive either termination of this Agreement or
Closing, nor shall the foregoing covenants limit any obligations of Seller or
Buyer under the Master Lease Agreements after Closing.

 

(c)                                  Buyer’s
Representations and Warranties. 
Buyer hereby represents and warrants to Seller that as of the date of
this Agreement and as of the Closing:

 

(i)                                     Buyer
is a limited liability company duly organized, validly existing and in good
standing under the laws of the State of Delaware.  Buyer has the right, power, and authority to execute, deliver,
and perform this Agreement.  The
Agreement, when executed and delivered by Buyer and Seller, shall constitute
the valid and binding agreement of Buyer, and shall be enforceable against
Buyer in accordance with its terms, except as enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting the enforcement of creditors’ rights generally and by general
equitable principles.

 

(ii)                                  All
requisite authorizations, consents, resolutions and actions on the part of
Buyer, have been obtained, adopted or taken, as applicable, by Buyer (and its
affiliates, as and if required) in connection with making and entering into
this Agreement and the consummation of the purchase and sale provided for
herein, and no consents or approvals are required from any party which is not a
party to this Agreement in order to consummate such purchase and sale.  Neither this Agreement nor the consummation
of any of the transactions contemplated hereby violates or shall violate any
provision of any agreement or document to which Buyer is a party or to which
Buyer is bound.

 

(d)                                 [****]

 

7.                                      Closing.  As used herein, “Closing” shall be deemed to
have occurred when each Deed and Lease Memorandum have been delivered by Seller
to Buyer or the Title Company on behalf of Buyer, for recordation in the
Official Records of the County where the applicable Real Property is located,
title to all Properties is conveyed to Buyer, and the Purchase Price is paid to
Seller as provided in Section 2, and possession of the Properties is
delivered to Buyer, subject to the Master Lease Agreements all in accordance
with the terms of this Agreement.  
Closing shall occur on or before March 31, 2004 (“Closing Date”).  On or before the Closing Date:

 

(a)                                  Buyer
shall deliver or cause to be delivered to Seller through Escrow all of the
following:

 

(i)                                     The
Purchase Price in accordance with Section 2.

 

(ii)                                  Four
(4) counterpart originals of (A) a Master Lease Agreement in the form attached
hereto as Exhibit A for the Properties described in Schedule 1
(collectively, the “Master Lease Agreements”; each
individually, a “Master Lease Agreement”), each duly executed by Buyer and (B)
a Lease Memorandum in the form attached hereto as Exhibit A-1 for each Property
covered by the Master Lease

 

11

 

Agreements
(collectively, “Memoranda” and each individually, a “Memorandum”), each duly
executed by Buyer.

 

(iii)                               Four
(4) counterpart originals of the Assignment of Lease in the form attached
hereto as Exhibit E for each Lease (collectively, the “Assignment
of Leases”), each duly executed by Buyer.

 

(b)                                 Seller
shall deliver or cause to be delivered to Buyer through Escrow all of the
following:

 

(i)                                     Special
Warranty Deed in the form of Exhibit H, or a substantially equivalent
form complying with state-specific recording requirements (each, a “Deed”;
collectively, the “Deeds”), conveying to Buyer each Real
Property subject only to the Permitted Exceptions, duly executed by Seller and
properly notarized and acknowledged;

 

(ii)                                  Four
(4) originals of the Bill of Sale conveying the Personal Property to Buyer, in
the form of Exhibit I (collectively, the “Bills of Sale”, each
individually, a “Bill of Sale”), each duly executed by Seller;

 

(iii)                               Internal
Revenue Code Section 1445 Certification in the form of Exhibit J,
and any state-specific income tax withholding certificates reasonably required
by Buyer, each duly executed by Seller;

 

(iv)                              Four
(4) counterpart originals of each Master Lease Agreement, duly executed by
Seller.

 

(v)                                 Any
instruments or other documents required to be delivered to Buyer, as landlord,
from Seller, as tenant, pursuant to the Master Lease Agreements, including,
without limitation, a Guaranty from ACT to Buyer, duly executed by ACT, for
each Master Lease Agreement (collectively, the “Guaranties”; each
individually, a “Guaranty”).

 

(vi)                              An
ALTA Extended Coverage Owner’s Policy of Title Insurance for each Property, in
the form of the Title Commitment for such Property previously approved by Buyer
hereunder, subject only to the Permitted Exceptions and those exceptions Buyer
has been deemed to accept pursuant to Section 5, and in an amount equal to
the amount allocated to such Property on Exhibit C attached hereto, [****].

 

(vii)                           Evidence
reasonably satisfactory to Buyer and Title Company that Seller is fully
authorized to have entered into this Agreement, and to consummate the
transactions contemplated herein, including without limitation selling the
Properties to Buyer pursuant to the terms of this Agreement, and entering into
the Master Lease Agreements.

 

[****]
Redacted in accordance with applicable practice with Autorite des marches financiers (Quebec Securities
Commission)

 

12

 

(viii)                        The
amount of all fees and expenses of Buyer that Seller is obligated to pay
pursuant to subsection 9(b), to the extent not previously paid.

 

(ix)                                Four
(4) originals of each of the Assignment of Leases, each duly executed by
Seller.

 

As used in this
Agreement, “Transaction Documents” means, collectively, this Agreement,
the Master Lease Agreements, the Guaranties, the Deeds, the Bills of Sale, the
Sublease Subordination Agreements, and any other agreements entered into
between Seller and Buyer, or ACT and Buyer, in connection with any of the
foregoing.

 

(c)                                  Seller
shall deliver to Buyer possession of the Properties subject to the Master Lease
Agreements.

 

8.                                      Secondary
Closing.

 

(a)                                  If
pursuant to Section 5 and 14 of this Agreement, Seller has elected to
propose to Buyer any substitute properties (and applicable Substitute Property
Documents) in lieu of any Properties excluded by Buyer from the assets to be
purchased by Buyer hereunder, and Buyer has not received all Substitute
Property Documents for all such substitute properties within twenty (20) days
prior to the Closing Date, then Buyer may elect, in its sole discretion, to
proceed with a Secondary Closing (as defined below) regarding any such
substitute properties (each, a “Secondary Substitute Property”, and
collectively the “Secondary Substitute Properties”) as of the
Secondary Closing Date (as defined below) by delivering to Seller a written
notice on or before the Closing Date; provided, however, that the occurrence of
the initial Closing is a condition precedent to the occurrence of the Secondary
Closing.  As used herein, “Secondary
Closing Date” means the later of (i) April 15, 2004, and (ii)
twenty (20) days after Buyer receives all Substitute Property Documents
regarding all such Secondary Substitute Properties.  The “Secondary Closing” shall be deemed to have
occurred when each Deed regarding each Secondary Substitute Property has been
delivered by Seller to Buyer for recordation in the Official Records of the
County where the applicable Real Property is located, title to all such
Secondary Substitute Properties is conveyed to Buyer, and possession of such
Secondary Substitute Properties is delivered to Buyer, subject to the Master
Lease Agreements, and the Purchase Price for the Secondary Substitute
Properties shall have been paid to Seller, all in accordance with the terms of
this Agreement.

 

(b)                                 In
the event that Buyer elects a Secondary Closing, (i) all representations,
warranties and other covenants set forth in this Agreement (including, without
limitation, regarding survival of obligations, prorations and payment of fees
and costs) regarding the “Closing” or the “Closing Date” shall be deemed made
also regarding the Secondary Closing or the Secondary Closing Date,
respectively, and (ii) all provisions regarding conditions to any Party’s
obligations hereunder that reference the “Closing” or the “Closing Date” shall
be deemed to refer also to the Secondary Closing or the Secondary Closing Date,
respectively.  Notwithstanding the
foregoing, with respect to any Secondary Closing (and without limiting anything
contained herein regarding the initial Closing), (x) any Property-specific
representations, warranties, or other covenants shall be deemed made, and
conditions shall be deemed to be in effect, only as to the Secondary Substitute
Properties transferred to Buyer at the

 

13

 

Secondary Closing, and
(y) the condition to Buyer’s obligations set forth in clause 10(a)(iv) shall be
of no force or effect.

 

(c)                                  Any
Secondary Closing shall be conducted in a similar manner to the initial
Closing, including without limitation, with respect to deliveries of
Transaction Documents regarding all Secondary Substitute Properties, except as
follows:  (i) the purchase price paid at
the Secondary Closing shall reflect only the price of the Secondary Substitute
Properties actually transferred to Buyer; (ii) instead of delivering the Master
Lease Agreements and Assignment of Leases, the Parties shall deliver amendments
to those agreements, in form and substance reasonably acceptable to both
Parties, adding to such agreements (as applicable) the Secondary Substitute
Properties; (iii) the calculation of “Net Sales Proceeds” at the Secondary
Closing shall be adjusted to take into account the adjusted Purchase Price for
the Secondary Substitute Properties and any fees or expenses paid by Seller at
the initial Closing, the “Minimum Debt Payment Amount” shall be zero, and if
Seller paid the “Minimum Debt Payment Amount” at the initial Closing the “Net
Sales Proceeds” at the Secondary Closing shall be deemed to be zero; [****].

 

(d)                                 Notwithstanding
anything contained in Section 5 or 14 of this Agreement, neither Party may
extend the Secondary Closing Date, through electing to provide, or attempting
to require, as the case may be, any substitute property in lieu of any
Secondary Substitute Property, and there shall be no further closings or
transfers of any properties under this Agreement after the Secondary Closing
(if any).

 

(e)                                  In
the event of any conflict between any provision of this Section 8 and any
other provision of this Agreement, the provision of this Section 8 shall
control.

 

9.                                      Prorations;
Fees and Costs.

 

(a)                                  No
proration shall be made of real estate and personal property taxes, utility
charges, rent due under the Leases, and maintenance expenses with respect to
the Properties (the Parties acknowledging that Seller shall be responsible for
all such charges, taxes and expenses, and Seller shall be entitled to all rent
due under the Leases under the Master Lease Agreements).  Rental payments under the Master Lease
Agreements (other than rental payments under the Leases) shall be prorated as
of the Closing Date such that Seller shall prepay a prorated portion of the
rent due from Seller to Buyer under the Master Lease Agreements (other than
rental payments under the Leases) applicable to the month in which the Closing
occurs, as contemplated by the Master Lease Agreements.

 

(b)                                 Seller
shall pay (i) all closing fees and expenses, including without limitation all
Escrow fees, recording costs (other than mortgage recording costs) and
applicable deed stamp taxes, and transfer taxes for each of the Properties
(including, without limitation, all Personal Property relating thereto); (ii)
all fees and expenses associated with the preparation of all Property Documents
(and Substitute Property Documents, if applicable), including without
limitation Title Commitments and Site Assessments; (iii) all premiums for the
Title Policies

 

[****]
Redacted in accordance with applicable practice with Autorite des marches financiers (Quebec Securities
Commission)

 

14

 

(including costs for the
comprehensive, contiguity, survey, access and tax parcel endorsements) and all
final Surveys; and (iv) all other fees and expenses of Buyer (including,
without limitation Buyer’s reasonable attorneys’ fees and expenses) in
connection with the transactions contemplated herein and in the other
Transaction Documents, including without limitation fees and expenses incurred
by Buyer in connection with the preparation and negotiation of all Transaction
Documents; the preparation of any proposal, commitment or other documents; any
diligence, syndication, computer usage, duplication, consultation, travel,
audits, or searches; any insurance or appraisals; and any post-Closing
activities or work of Buyer (to the extent that such costs for the post-closing
activities or work would have been Seller’s responsibility if such activity or
work occurred pre-closing but will occur post-closing due to circumstances
under Seller’s control).

 

(c)                                  [****]

 

10.                               Conditions
to Closing.

 

(a)                                  Conditions
to Buyer’s Obligations.  Buyer’s
obligation to purchase the Properties is subject to the satisfaction of the
following conditions or Buyer’s written waiver of such conditions on or before
the Closing Date.  Buyer may waive in
writing any or all of such conditions in its sole and absolute discretion.

 

(i)                                     Seller
shall have performed all material obligations to be performed by Seller prior
to and at Closing under this Agreement.

 

(ii)                                  Seller’s
representations and warranties set forth in subsection 6(a)  of this
Agreement shall be true and correct in all material respects as of the Closing.

 

(iii)                               Title
Company shall be committed to issue to Buyer, as of the Closing Date, the Title
Policies.

 

(iv)                              [****]

 

(v)                                 Without
limiting anything contained in clause 10(a)(ii), no order, stay, injunction or
restraining order, pending or threatened litigation, law or regulation, or any
other condition shall exist with respect to Seller, Guarantor and/or the
Property that in the reasonable determination of Buyer could have a Material Adverse
Effect.

 

(b)                                 Condition
to Seller’s Obligations.  Seller’s
obligation to consummate the transactions contemplated by this Agreement are
subject to Buyer having performed all material obligations to be performed by
Buyer prior to and at Closing under this Agreement.  Seller may waive in writing such condition in its sole and
absolute discretion.

 

[****]
Redacted in accordance with applicable practice with Autorite des marches financiers (Quebec Securities
Commission)

[****]
Redacted in accordance with applicable practice with Autorite des marches financiers (Quebec Securities
Commission)

 

15

 

 

(c)                                  At
the Closing, Title Company will pay the Purchase Price to Seller by (i)
certified check drawn at an Acceptable Bank, or (ii) wire transfer of
immediately available funds.

 

11.                               Notices.  Any notice provided or permitted to be given
under this Agreement must be in writing and may be served by depositing same in
the United States mail, addressed to the Party to be notified, postage prepaid
and certified, with return receipt requested, by delivering the same in person
to such Party (including express or courier service), by delivering the same by
overnight courier such as Federal Express or by delivering the same by
confirmed facsimile.  Notice given in
accordance herewith shall be effective upon the receipt at the address of the
addressee, or the second attempt at delivery, as evidenced by the regular
records of the person or entity attempting delivery, regardless of whether the
same is actually received.  For purposes
of notice, the addresses of the Parties (and, for informational purposes only,
Title Company) are as follows:

 

	
  If to Seller:

  	
  CIRCLE K STORES INC.

  
	
   

  	
  1500 North Priest Drive

  
	
   

  	
  Tempe, Arizona 85281

  
	
   

  	
  Attn: President

  
	
   

  	
  Telephone: (602) 728-3114

  
	
   

  	
  Facsimile: (602) 728-5126

  
	
   

  	
   

  
	
   

  	
  With a copy to:

  
	
   

  	
   

  
	
   

  	
  ALIMENTATION COUCHE-TARD INC.

  
	
   

  	
  1600 St. Martin Boulevard West

  
	
   

  	
  Tower B, Suite 280

  
	
   

  	
  Laval, Quebec, CANADA H7G 4S7

  
	
   

  	
  Attn: Richard
  Fortin

  
	
   

  	
  Telephone: (450)
  662-6632

  
	
   

  	
  Facsimile: (450)
  662-7537

  
	
   

  	
   

  
	
   

  	
  With a copy to:

  
	
   

  	
   

  
	
   

  	
  DAVIES WARD PHILLIPS & VINEBERG LLP

  
	
   

  	
  44th Floor, 1 Canadian Place

  
	
   

  	
  Toronto, Ontario, Canada M5X 1B1

  
	
   

  	
  Attn: Scott Hyman, Esq.

  
	
   

  	
  Telephone: (416) 863-0900

  
	
   

  	
  Facsimile: (416) 863-0871

  
	
   

  	
   

  
	
  If to Buyer:

  	
  DBNCF CIRCLE LLC

  
	
   

  	
  c/o Drawbridge Special
  Opportunities Fund LP

  
	
   

  	
  1251 Avenue of the Americas

  
	
   

  	
  New York, New York 10020

  
	
   

  	
  Attn:  Kevin Treacy, CFO

  
	
   

  	
  Telephone: (212) 798-6071

  
	
   

  	
  Facsimile: (212) 798-6131

  

 

16

 

	
   

  	
   

  	
  With a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SIDLEY AUSTIN BROWN & WOOD LLP

  
	
   

  	
   

  	
  555 West Fifth Street, Suite 4000

  
	
   

  	
   

  	
  Los Angeles, California 90013-1010

  
	
   

  	
   

  	
  Attn: Marc I. Hayutin, Esq.

  
	
   

  	
   

  	
  Telephone: 
  (213) 896-6018

  
	
   

  	
   

  	
  Facsimile: 
  (213) 896-6600

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  and a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WILENSKY & JONES, LLP

  
	
   

  	
   

  	
  3109 Carlisle Street, Suite 100

  
	
   

  	
   

  	
  Dallas, Texas 75204

  
	
   

  	
   

  	
  Attn: 
  Richard S.  Wilensky, Esq.

  
	
   

  	
   

  	
  Telephone: 
  (214) 220-1133

  
	
   

  	
   

  	
  Facsimile: 
  (214) 220-2131

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  If to Title Company:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  LANDAMERICA FINANCIAL GROUP, INC.

  
	
   

  	
   

  	
  7557 Rambler Road, Suite 1200 L.B. #31

  
	
   

  	
   

  	
  Dallas, Texas 75231

  
	
   

  	
   

  	
  Attn: 
  Jennifer Flynn

  
	
   

  	
   

  	
  Telephone: (877) 273-1770

  
	
   

  	
   

  	
   

  	
  (214) 346-7146 (direct dial)

  
	
   

  	
   

  	
   

  	
  (877) 556-8112 (box)

  

 

Either Party may change its address for notice by
giving written notice thereof to the other Party in accordance with the
provisions of this Section 11.

 

12.                               Commissions.  Seller and Buyer each (a) represent to the
other Party that such representing Party has dealt with no broker or brokers in
connection with the negotiation, execution and delivery of this Agreement or
the sale of the Properties contemplated herein, except for Trefethen &
Company (“Broker”)
and (b) hereby indemnifies, defends, protects (with counsel selected by the
other Party) and holds such other Party wholly free and harmless of, from and
against any and all claims or demands for any and all brokerage commissions
and/or finder’s fees due or alleged to be due as a result of any agreement or
purported agreement made by such indemnifying Party.

 

13.                               Assigns.  This Agreement shall inure to the benefit of
and be binding on the Parties hereto and their respective heirs, legal
representatives, successors and assigns. 
This Agreement may not be assigned by Seller without the prior written
consent of Buyer,  which Buyer may withhold
in its sole and absolute discretion. 
This Agreement may be assigned by Buyer without the consent of Seller
provided that Buyer delivers to Seller written notice of such assignment.  Notwithstanding the foregoing, upon any
assignment of this Agreement by Buyer,

 

17

 

Buyer shall not be
relieved of liability for the performance of any obligation of Buyer contained
in this Agreement unless and until Buyer’s assignee shall have assumed in
writing all of the duties and obligations of Buyer hereunder.

 

14.                               Destruction,
Damage or Taking Before Closing.

 

(a)                                  In
the event of damage to or destruction of all or any portion of any Property by
fire or other casualty prior to the Closing, Seller shall promptly deliver to
Buyer written notice thereof, and Seller may terminate this Agreement with
respect to such damaged or destroyed Property, or may offer to cause the
restoration and repair of such damage. 
Termination of this Agreement shall be by notice to Buyer given within
ten (10) days after such damage or destruction, in which case this Agreement
shall terminate as to the affected Property, and the parties shall proceed with
the purchase and sale of the balance of the Properties pursuant to the terms of
this Agreement.  If Seller does not
cause all damaged or destroyed Property to be repaired or replaced (to Buyer’s
reasonable satisfaction) on or before the Closing Date, then Buyer may elect,
in its sole discretion, to either (i) purchase
the Property subject to such damage or destruction without a reduction in the
Purchase Price, or (ii) exclude the Property from the assets to be purchased
hereunder with a reduction in the Purchase Price equal to the amount set forth
on Exhibit C allocated to such Property.  If Buyer elects to exclude the Property from the assets to be
purchased hereunder, Seller may elect to provide a reasonable substitute
property (and deliver to Buyer all Substitute Property Documents with respect
to such substitute property) within ten (10) days after Buyer shall have
delivered written notice of such exclusion to Seller, which substitute property
Buyer may, in its reasonable discretion, accept or reject.  If any such substitute property is accepted
by Buyer, then (x) the Purchase Price shall be reasonably adjusted by Buyer
based upon (1) the value of such substitute property as reflected by the
applicable Substitute Property Documents, and (2) the amount allocated to the
excluded Property as set forth on Exhibit C; (y) the substitute property
shall be a “Property” for all purposes under this Agreement; and (z) the
applicable Substitute Property Documents shall be “Property Documents” for all
purposes under this Agreement.  If such
substitute property is rejected by Buyer, the Purchase Price shall be reduced
by the amount allocated to the excluded Property as set forth on Exhibit C.

 

(b)                                 In
the event of an eminent domain taking or the issuance of a written notice of an
eminent domain taking with respect to all or any portion of any Property prior
to the Closing, Seller shall promptly deliver to Buyer written notice thereof
(the “Taking
Notice”).  Within ten (10)
business days after Buyer’s receipt of the Taking Notice, Buyer may elect, in
its sole discretion, to either (i) purchase the Property subject to such taking
without a reduction in the Purchase Price or (ii) exclude the Property from the
assets to be purchased hereunder with a reduction in the Purchase Price equal
to the amount set forth on Exhibit C allocated to such Property.  If Buyer elects to exclude the Property from
the assets to be purchased hereunder Seller may elect to provide a reasonable
substitute property (and deliver to Buyer all Substitute Property Documents
with respect to such substitute property) within ten (10) days after Buyer
shall have delivered written notice of such exclusion to Seller, which
substitute property Buyer may, in its reasonable discretion, accept or
reject.  If any such substitute property
is accepted by Buyer, then (x) the Purchase Price shall be reasonably adjusted
by Buyer based upon (1) the value of such substitute property as reflected by
the applicable Substitute Property Documents, and (2) the amount allocated to
the excluded Property as set forth on Exhibit C; (y) the substitute

 

18

 

property shall be
a “Property” for all purposes under this Agreement; and (z) the applicable
Substitute Property Documents shall be “Property Documents” for all purposes
under this Agreement.  If such
substitute property is rejected by Buyer, the Purchase Price shall be reduced
by the amount allocated to the excluded Property as set forth on Exhibit C.

 

15.                               Termination;
Remedies; Seller Indemnity.

 

(a)                                  Buyer’s
Remedies.

 

(i)                                     Without
limiting anything contained in subsection 9(c), if the Closing does not occur
by reason of Seller’s default hereunder (which default is not outside of
Seller’s reasonable control) that is not cured within ten (10) days after
Seller first has knowledge of such default, then Buyer shall be entitled to pursue
any remedies to which Buyer may be entitled under this Agreement, at law and/or
in equity, including without limitation the right to specifically enforce this
Agreement, to record a notice of pendency of action against any of the
Properties and/or to pursue an action for damages.  Except as specifically provided herein, any remedies of Buyer
pursuant to this Agreement shall be in addition to, and not in lieu of, any
remedies of Buyer pursuant to the other Transaction Documents.

 

(ii)                                  In
addition to any and all other obligations of Seller under this Agreement
(including without limitation under any indemnity or similar provision set
forth herein), Seller hereby fully and forever releases, discharges, acquits,
indemnifies, protects, and agrees to defend (with counsel selected by Seller
and approved by Buyer (or Buyer’s Lenders), such approval not to be
unreasonably withheld, delayed or conditioned) and hold the Demised Premises,
Buyer, Buyer’s Affiliates and Buyer’s Lenders wholly free and harmless of, from
and against any and all losses (including without limitation, subject to the
terms of this Section, diminution in the value of the Demised Premises, normal
wear and tear excepted), claims, demands, actions, causes of action,
settlements, obligations, duties, indebtedness, debts, controversies, losses,
remedies, choses in action, liabilities, costs, penalties, fines, damages,
injury, judgments, forfeiture, or expenses (including without limitation
reasonable attorneys’ fees, consultant fees, testing and investigation fees,
expert fees and court costs), whether known or unknown, whether liquidated or
unliquidated:  (A) arising out of or in
any way related to or resulting directly or indirectly from:  (1) the use, occupancy or activities of
Seller, its agents, employees, contractors or invitees in or about the Demised
Premises at or before Closing; (2) any failure on the part of Seller to comply
with any applicable law, code or regulation, including without limitation all
Environmental Laws at or before Closing; (3) any Default under this Agreement
or any breach or default by Seller under any other Transaction Document (as
defined below); (4) any other loss, injury or damage described in Section 10.01
of the Master Lease Agreements caused by Seller, its agents, employees,
contractors or invitees; (5) in connection with mold at any Demised Premises at
or before Closing; (6) work or labor performed, materials or supplies furnished
to or at the request of Seller or in connection with obligations

 

[****] Redacted in accordance with applicable
practice with Autorite des marches
financiers (Quebec Securities Commission)

[****] Redacted in accordance with applicable
practice with Autorite des marches
financiers (Quebec Securities Commission)

 

19

 

incurred by or
performance of any work done for the account of Seller in, on or about the
Demised Premises; and (B) whether heretofore now existing or hereafter arising
out of or in any way related to or resulting directly or indirectly from the
presence or Release at, on, under, to or from the Demised Premises of Hazardous
Materials.

 

(iii)                               Anything
in this Agreement to the contrary notwithstanding, in the event of any breach
by Seller of any representation or warranty set forth in subsection 6(a) of
this Agreement, Buyer shall not be entitled to pursue any remedy therefor under
this Agreement (including any remedy under any indemnity, release, discharge or
hold harmless agreement set forth in this Agreement) if such breach (A) is
discovered after the Closing, (B) is not a misrepresentation or concealment
made by Seller with knowledge of its falsity or in reckless disregard of its
truth or falsity, and with the intent to deceive Buyer, and (C) a remedy
therefor is available to Buyer under a Master Lease Agreement.

 

(iv)                              Notwithstanding
anything to the contrary contained herein, Buyer shall only be entitled to
pursue a claim for damages against Seller in the event of a breach by Seller of
any representation or warranty set forth in subsection 6(a) of this Agreement,
only if such claim is permitted pursuant to Subsection (iii) of this Section
15(a), and only when the aggregate amount of all Claims incurred by Buyer as a
result of any such breaches by Seller exceed [****] and in any such case Buyer
shall be entitled to recover from Seller the full amount of all such Claims,
subject to clause 15(a)(v), below.

 

(v)                                 The
liability of Seller under this Agreement and the Master Lease Agreements for
any breach of a representation or warranty set forth in subsection 6(a) of this
Agreement and the liability of Seller under this Agreement for any indemnity,
release, discharge or hold harmless provision set forth in this Agreement shall
terminate after the earlier of (i) the date on which Seller has paid Buyer a
total amount (including payments made under any of this Agreement, that certain
Purchase and Sale Agreement and Escrow Instructions between Seller and DBNCH
Circle LLC, a Delaware limited liability company, dated as of even date
herewith, and the Master Lease Agreements) of [****] (the “Liability Cap”) as a
result of Claims arising from any such breaches by Seller and/or Claims arising
from such indemnity, release, discharge or hold harmless provisions; and (ii)
the one-year anniversary of the Closing Date; provided, however, that Seller
shall continue to be liable (subject to the other limits provided herein,
including, without limitation the Liability Cap) for Claims incurred by Buyer
during such one-year period for which Buyer has notified Seller in writing
prior to the expiration of such one-year period.  Notwithstanding the foregoing, the Liability Cap shall not apply
to any misrepresentation or concealment made by Seller with knowledge of its
falsity or in reckless disregard of its truth or falsity and the intent to
deceive Buyer.  In addition, nothing
contained herein shall be construed in any way to limit any indemnity, release,
discharge or hold harmless provision set forth in the Master Leases or the
Guaranty.

 

(b)                                 Seller’s
Remedies.  Without limiting anything
contained in subsection 9(c), if the Closing does not occur by reason of
Buyer’s default hereunder that is not cured within

 

20

 

ten (10) days
after Buyer first has knowledge of such default, and Seller is in compliance
with all of its obligations under this Agreement, then Seller shall be entitled
to pursue any remedies to which Seller may be entitled under this Agreement, at
law and/or in equity, including without limitation the right to specifically
enforce this Agreement, and/or to pursue an action for damages.  Any remedies of Seller pursuant to this
Agreement shall be in addition to, and not in lieu of, any remedies of Seller
pursuant to the other Transaction Documents.

 

(c)                                  Transaction
Documents.  Nothing in this Section
15 shall limit any obligations or remedies of any Party under any of the other
Transaction Documents, including without limitation under the Master Lease
Agreements.

 

16.                               Disclosure.  Buyer and Seller shall keep information
regarding terms of this Agreement confidential and neither Party will announce
or otherwise make public the terms of this transaction without the prior
consent of the other Party, which consent shall not be unreasonably withheld,
except that each Party may disclose the terms this Agreement (a) to its, and
its affiliates’, officers, directors, employees, accountants, agents, potential
financing sources, legal counsel and such other third parties as reasonably
necessary to effectuate the closing of the transaction contemplated herein, and
(b) as required by law, regulation, stock exchange rule, administrative agency
or court order.

 

17.                               Further
Assurances.  Both Seller and
Buyer shall cooperate with one another and in a timely manner execute any and
all additional documents, papers and other assurances, and shall do any and all
acts reasonably necessary to give effect to the purchase and sale provided for
herein.

 

18.                               Severability.  If any provision of this Agreement is
adjudicated by a court having jurisdiction over a dispute arising herefrom to
be invalid or otherwise unenforceable for any reason, such invalidity or
unenforceability shall not affect the other provisions hereof and such
remaining provisions shall continue in force and effect to the full extent
permitted by law.

 

19.                               Applicable
Law; Jurisdiction; Waiver of Jury Trial.

 

(a)                                  This
Agreement shall be governed and construed in accordance with the laws of the
State of New York without regard to conflicts of laws principles, and except in
any action to specifically enforce performance of this Agreement, in which
event the law of the state of the Real Property with respect to which such
specific performance is requested shall govern.

 

(b)                                 EACH
OF SELLER AND BUYER HEREBY CONSENTS TO THE JURISDICTION OF ANY STATE OR FEDERAL
COURT LOCATED WITHIN THE COUNTY OF NEW YORK, STATE OF NEW YORK OR WITHIN THE
COUNTY AND STATE IN WHICH ANY PROPERTY IS LOCATED AND IRREVOCABLY AGREES THAT
ALL ACTIONS OR PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT SHALL
BE LITIGATED IN SUCH COURTS.  SELLER AND
BUYER EACH ACCEPTS FOR ITSELF AND IN CONNECTION WITH THE PROPERTIES, GENERALLY
AND UNCONDITIONALLY, THE NONEXCLUSIVE JURISDICTION OF THE AFORESAID COURTS AND
WAIVES ANY DEFENSE OF FORUM NON CONVENIENS,

 

21

 

AND IRREVOCABLY
AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS
AGREEMENT.

 

(c)                                  EACH
OF BUYER AND SELLER, TO THE FULL EXTENT PERMITTED BY LAW, HEREBY KNOWINGLY,
INTENTIONALLY AND VOLUNTARILY, WITH AND UPON THE ADVICE OF COMPETENT COUNSEL,
WAIVES, RELINQUISHES AND FOREVER FORGOES THE RIGHT TO A TRIAL BY JURY IN ANY
ACTION OR PROCEEDING (WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE) BASED
UPON, ARISING OUT OF, OR IN ANY WAY RELATING TO THIS AGREEMENT.  SELLER AND BUYER EACH ACKNOWLEDGES THAT THE
PROVISIONS OF THIS SUBSECTION ARE A MATERIAL INDUCEMENT TO THE OTHER PARTY’S
ENTERING INTO THE AGREEMENT.

 

20.                               Whole
Agreement; Modification.  Except
as provided below, this Agreement is the entire agreement between Seller and
Buyer concerning the sale of the Properties and no modification hereof or
subsequent agreement relative to the subject matter hereof shall be binding on
either Party unless reduced to writing and signed by the Party to be bound.
This Agreement supersedes the Letter of Intent dated October
    , 2003, as amended in writing, regarding the Circle K
Sale Leaseback Facility, by and between Fortress Credit Corporation, [****],
and ACT.  All Exhibits and Schedules
attached hereto are incorporated herein by this reference for all purposes.

 

21.                               Survival.  Without modifying anything contained in
subsections 6(c) or 15(a), the provisions of Sections 4, 6 (other than
subsection 6(c)), 8, 9, 11, 12, 13 and 15 through 28 (inclusive), shall survive
Closing and any termination of this Agreement.

 

22.                               Time
of the Essence.  Time is of the
essence in the performance of each and every provision of this Agreement.  In the event that the last day for taking
any action or serving notice under this Agreement falls on a Saturday, Sunday
or legal holiday, the time period shall be extended until the following
business day.

 

23.                               Counterparts.  This Agreement may be executed in any number
of counterparts, each of which shall be deemed an original, but all of which,
taken together, shall constitute one and the same instrument. A facsimile or
photocopy signature on this Agreement or any notice delivered hereunder shall
have the same legal effect as an original signature.

 

24.                               Attorneys’
Fees.  If any action or
proceeding is instituted to enforce or interpret any provision of this
Agreement, the prevailing Party shall be entitled to recover its attorneys’
fees and costs from the losing Party.

 

25.                               No
Waiver.  The waiver by one Party
of the performance of any covenant, condition or promise, or of the time for
performing any act, under this Agreement shall not invalidate this Agreement
nor shall it be considered a waiver by such Party of any other covenant,
condition or promise, or of the time for performing any other act required,
under this

 

[****] Redacted in accordance with applicable
practice with Autorite des marches
financiers (Quebec Securities Commission)

 

22

 

Agreement.  The exercise of any remedy for which this
Agreement provides shall not be a waiver of any remedy provided by law, and the
provisions of this Agreement for any remedy shall not exclude any other
remedies unless they are expressly excluded.

 

26.                               Date
of Agreement.  All references in
this Agreement to “the date hereof” or similar references shall be deemed to
refer to the first date set forth above.

 

27.                               Transaction
Characterization.  The Parties
intend that the conveyance of the Properties to Buyer be an absolute conveyance
in effect as well as form, and the instruments to be delivered at Closing
(including, without limitation, the Master Lease Agreements and the other
Transaction Documents) are not intended to serve or operate as a mortgage,
equitable mortgage, deed of trust, security agreement or financing or trust
arrangement of any kind.  After the
execution and delivery of the Deeds and payment to Seller of the entire
Purchase Price, Seller will have no legal or equitable interest or any other
claim or interest in the Properties other than as set forth in the Transaction
Documents.  Furthermore, the Parties
intend for each of the Master Lease Agreements to be a true lease and not a
transaction creating a financing lease, capital lease, equitable mortgage,
mortgage, deed of trust, security interest or other financing arrangement, and
the economics realities of each of the Master Lease Agreements are those of a
true lease.  Notwithstanding the
existence of the Master Lease Agreements, neither Party shall contest the
validity, enforceability or characterization of the sale and purchase of the
Properties by Buyer pursuant to this Agreement as an absolute conveyance, and
both Parties shall support the intent expressed herein that the purchase of the
Properties by Buyer provides for an absolute conveyance and does not create a
joint venture, partnership, equitable mortgage, trust, financing device or
arrangement, security interest or the like, if and to the extent that any
challenge occurs.

 

28.                               Post-Closing
Obligation.

 

(a)                                  [****]

 

(b)                                 Seller
shall deliver or cause to be delivered to Buyer within thirty (30) days after
closing four (4) originals of a Subordination, Non-Disturbance and Attornment
Agreement for each Lease set forth on Schedule 5, in form and substance
reasonably satisfactory to Buyer.

 

29.                               State
Specific Provisions.

 

(a)                                  New
Mexico.

 

(i)                                     To
the extent, if at all, Section 56-7-1, NMSA 1978, as amended, is applicable to
this Agreement, any agreement to indemnify, hold harmless, insure or defend
another party contained in this Agreement shall not extend to liability,
claims, damages, losses or expenses, including attorneys’ fees, arising out of
bodily injury to persons or damage to property caused by or resulting from, in
whole or in part, the negligent act or omission of the indemnitee, its
officers, employees or agents.

 

[****] Redacted in accordance with applicable
practice with Autorite des marches
financiers (Quebec Securities Commission)

 

23

 

(ii)                                  The
following Subsection 8(b)(xii) is added to Section 8: “Four (4) originals of an
NM Taxation and Revenue Department Real Property Transfer Declaration Affidavit
in the form attached as Exhibit L.”

 

(b)                                 Louisiana.  The following provisions shall apply to the
extent that the laws of the State of Louisiana govern the interpretation or
enforcement of this Agreement with respect to Real Property located in the
State of Louisiana (and nothing in this section is intended to derogate from
any choice of law provision contained in this Agreement).

 

(i)                                     Louisiana
Terminology.  The terms “realty”,
“real property” and “real estate” shall mean immovable property; the term “fee
estate” shall mean full ownership; the term “personal property” shall mean
movable property; the term “tangible property” shall mean corporeal property;
the term “intangible property” shall mean incorporeal property; the term
“easement” shall mean servitude; the term “buildings” shall include other
constructions; the phrase “covenant running with the land” and other words of similar
import shall mean a real right or a recorded lease of immovable property; and
the term “county” shall mean parish.

 

(ii)                                  Corporate
Resolutions.  A copy of the
resolutions of the board of directors of Seller authorizing the sale of the
Real Property, complying with the requirements of Section 7(b)(vii), with an
original live signature certification by the secretary or assistant secretary
of the Seller, shall be attached to each Deed when it is filed of record.

 

(c)                                  Florida.  Pursuant to Florida Statute 404.056(8),
Buyer is hereby notified as follows: 
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 unit.

 

(d)                                 South
Carolina.

 

(i)                                     Seller
shall be solely responsible for the payment of the South Carolina Deed
Recording Fee as required under Section 12-24-10, et seq., Code of Laws of
South Carolina, 1976, as amended.

 

(ii)                                  In
addition to the documents to be delivered pursuant to Section 7(b) above,
Seller shall deliver or cause to be delivered to Buyer through Escrow the
following:

 

(1)                                  Affidavit
of Value in the form of Exhibit M, properly completed and executed by an
authorized person for Seller in accordance with Section 12-42-70, Code of Laws
of South Carolina, 1976, as amended; and

 

(2)                                  An
affidavit in the form of Exhibit N, as provided by Section 12-8-580, et seq.,
Code of Laws of South Carolina, 1976, as amended, and if required From I-290.

 

24

 

(e)                                  Arizona.

 

(i)                                     In
addition to the documents to be delivered pursuant to Section 7(a) above, Buyer
shall deliver or cause to be delivered to Seller through Escrow the
following:  Affidavit of Property Value
in the form of Exhibit O, properly completed and executed by an
authorized person for Buyer in accordance with Arizona law.

 

(ii)                                  In
addition to the documents to be delivered pursuant to Section 7(b) above,
Seller shall deliver or cause to be delivered to Buyer through Escrow the
following:  Affidavit of Property Value
in the form of Exhibit O, properly completed and executed by an
authorized person for Seller in accordance with Arizona law.

 

25

 

IN WITNESS WHEREOF, Buyer and Seller have executed
this Agreement as of the date first set forth above.

 

	
  WITNESSES:

  	
   

  	
  BUYER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DBNCF
  CIRCLE LLC,

  
	
  /s/Robyn Gewanter

  	
   

  	
  a Delaware limited liability company 

  
	
  Signature of First Witness

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Robyn Gewanter

  	
   

  	
  By: 

  	
  /s/Constantine M. Dakolias

  	
   

  
	
  Printed Name of First Witness

  	
   

  	
   

  	
  Constantine M. Dakolias

  	
   

  
	
   

  	
   

  	
   

  	
  Chief Credit Officer

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/Marc Furstein

  	
   

  	
   

  	
   

  
	
  Signature of Second Witness

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Marc Furstein

  	
   

  	
   

  
	
  Printed Name of Second Witness

  	
   

  	
   

  

 

 

	
  WITNESSES:

  	
   

  	
  SELLER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CIRCLE
  K STORES INC.,

  
	
  /s/William Trefethen

  	
   

  	
  a Texas corporation

  
	
  Signature of First Witness

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  William Trefethen

  	
   

  	
  By:

  	
  /s/Brian P.
  Hannasch

  	
   

  
	
  Printed Name of First Witness

  	
   

  	
  Name: Brian P.
  Hannasch

  
	
   

  	
   

  	
  Title: Vice
  President

  
	
  /s/Maria Trefethen

  	
   

  	
   

  
	
  Signature of Second Witness 

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Maria Trefethen

  	
   

  	
   

  
	
  Printed Name of Second Witness

  	
   

  	
   

  

 

 

	
  WITNESSES:

  	
   

  	
  ESCROW
  AGENT:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/Denis Frawley

  	
   

  	
  LANDAMERICA
  FINANCIAL SERVICES,

  INC., 

  
	
  Signature of First Witness 

  	
   

  	
  By: 

  	
  /s/Nancy Shirar

  	
   

  
	
   

  	
   

  	
  Name:

  	
  /s/Nancy Shirar 

  	
   

  
	
  Denis Frawley 

  	
   

  	
  Title:t

  	
  /s/Vice Presiden

  	
   

  
	
  Printed Name of First Witness 

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/Susan Helms

  	
   

  	
   

  
	
  Signature of Second Witness 

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/Susan Helms 

  	
   

  	
   

  
	
  Printed Name of Second WitnessExhibit 10.10

 

PURCHASE AGREEMENT AND ESCROW INSTRUCTIONS

 

 

MARCH 16,
2004

 

 

BUYER:

RI CS1, LLC, A DELAWARE LIMITED LIABILITY
COMPANY;

RI CS2, LLC, A DELAWARE LIMITED LIABILITY
COMPANY; AND

CRESTNET 1, LLC, A DELAWARE LIMITED LIABILITY
COMPANY

 

 

SELLER:

CIRCLE K STORES INC.,

A TEXAS CORPORATION

 

 

ESCROW AGENT:

 

LANDAMERICA FINANCIAL SERVICES, INC.

 

 

PURCHASE AGREEMENT AND ESCROW INSTRUCTIONS

 

TABLE OF CONTENTS

 

	
  1.

  	
   

  	
  PURCHASE
  PRICE

  	
   

  
	
  1.1

  	
   

  	
  Purchase
  Price

  	
   

  
	
  1.2

  	
   

  	
  Additional Properties

  	
   

  
	
  2.

  	
   

  	
  OPENING OF ESCROW

  	
   

  
	
  3.

  	
   

  	
  TITLE TO PROPERTIES

  	
   

  
	
  4.

  	
   

  	
  CONDITIONS TO BUYER’S OBLIGATION TO PURCHASE

  	
   

  
	
  4.1

  	
   

  	
  Approvals by Buyer

  	
   

  
	
  4.2

  	
   

  	
  Environmental

  	
   

  
	
  4.3

  	
   

  	
  Physical Characteristics of the Properties

  	
   

  
	
  4.4

  	
   

  	
  Accuracy of Representations

  	
   

  
	
  4.5

  	
   

  	
  Foreign Investments

  	
   

  
	
  4.6

  	
   

  	
  Leases and Guaranties

  	
   

  
	
  4.7

  	
   

  	
  Change in
  Conditions

  	
   

  
	
  4.8

  	
   

  	
  Failure of Conditions

  	
   

  
	
  5.

  	
   

  	
  CONDITIONS
  TO SELLER’S OBLIGATION TO SELL

  	
   

  
	
  5.1

  	
   

  	
  Performance by Buyer

  	
   

  
	
  5.2

  	
   

  	
  Accuracy of Representations

  	
   

  
	
  5.3

  	
   

  	
  Payment of Purchase Price

  	
   

  
	
  6.

  	
   

  	
  BUYER’S
  DELIVERIES TO TITLE COMPANY AND SELLER

  	
   

  
	
  6.1

  	
   

  	
  Purchase
  Price

  	
   

  
	
  6.2

  	
   

  	
  Lease and Memorandums

  	
   

  
	
  6.3

  	
   

  	
  Failure to Deliver

  	
   

  
	
  7.

  	
   

  	
  SELLER’S
  DELIVERIES TO TITLE COMPANY AND BUYER

  	
   

  
	
  7.1

  	
   

  	
  Deeds

  	
   

  
	
  7.2

  	
   

  	
  Leases, Memorandums

  	
   

  
	
  7.3

  	
   

  	
  Documents Needed to Close

  	
   

  
	
  7.4

  	
   

  	
  Failure to Deliver

  	
   

  
	
  8.

  	
   

  	
  THE
  CLOSING

  	
   

  
	
  8.1

  	
   

  	
  Date and Manner of Closing

  	
   

  
	
  8.2

  	
   

  	
  Delay in Closing; Authority to Close

  	
   

  
	
  9.

  	
   

  	
  PRORATION,
  COSTS AND EXPENSES

  	
   

  
	
  9.1

  	
   

  	
  Prorations and Apportionments

  	
   

  
	
  9.2

  	
   

  	
  Payment of Adjustments to Proration

  	
   

  
	
  9.3

  	
   

  	
  Seller’s Costs and Expenses

  	
   

  
	
  9.4

  	
   

  	
  Buyer’s Costs and Expenses

  	
   

  
	
  10.

  	
   

  	
  DISTRIBUTION OF FUNDS
  AND DOCUMENTS

  	
   

  
	
  10.1

  	
   

  	
  Form of Distributions

  	
   

  
	
  10.2

  	
   

  	
  Recorded Documents

  	
   

  
	
  10.3

  	
   

  	
  Non-Recorded Documents

  	
   

  
	
  10.4

  	
   

  	
  Cash Disbursements

  	
   

  

 

 

	
  10.5

  	
   

  	
  Copies of Documents

  	
   

  
	
  11.

  	
   

  	
  RETURN OF DOCUMENTS AND
  FUNDS UPON TERMINATION

  	
   

  
	
  11.1

  	
   

  	
  Return of Seller’s Documents

  	
   

  
	
  11.2

  	
   

  	
  Return of Buyer’s Documents

  	
   

  
	
  11.3

  	
   

  	
  No Effect on Rights of Parties

  	
   

  
	
  11.4

  	
   

  	
  Payment of Termination Fee

  	
   

  
	
  12.

  	
   

  	
  DEFAULT

  	
   

  
	
  13.

  	
   

  	
  REPRESENTATIONS AND WARRANTIES OF SELLER

  	
   

  
	
  13.1

  	
   

  	
  Authority of Seller

  	
   

  
	
  13.2

  	
   

  	
  Space Leased to Third Parties

  	
   

  
	
  13.3

  	
   

  	
  Use
  and Operation

  	
   

  
	
  13.4

  	
   

  	
  Land Use Regulation

  	
   

  
	
  13.5

  	
   

  	
  Reports, Contracts and Other Documents

  	
   

  
	
  13.6

  	
   

  	
  Absence of Fraud and Misleading Statements

  	
   

  
	
  13.7

  	
   

  	
  Litigation

  	
   

  
	
  13.8

  	
   

  	
  Other Contracts to Convey

  	
   

  
	
  13.9

  	
   

  	
  Environmental Condition of Properties [***]

  	
   

  
	
  13.10

  	
   

  	
  Property Tax Assessment

  	
   

  
	
  13.11

  	
   

  	
  Agreements Affecting the Properties

  	
   

  
	
  13.12

  	
   

  	
  Sales
  Information

  	
   

  
	
  13.13

  	
   

  	
  Survival

  	
   

  
	
  13.14

  	
   

  	
  No
  Broker

  	
   

  
	
  14.

  	
   

  	
  REPRESENTATIONS &
  WARRANTIES OF BUYER

  	
   

  
	
  14.1

  	
   

  	
  Authority of Buyer

  	
   

  
	
  14.2

  	
   

  	
  Absence of Fraud and Misleading Statements

  	
   

  
	
  14.3

  	
   

  	
  Litigation

  	
   

  
	
  14.4

  	
   

  	
  Financial Condition

  	
   

  
	
  14.5

  	
   

  	
  Survival

  	
   

  
	
  14.6

  	
   

  	
  No
  Broker

  	
   

  
	
  15.

  	
   

  	
  COVENANTS

  	
   

  
	
  15.1

  	
   

  	
  Indemnification by Parties

  	
   

  
	
  15.2

  	
   

  	
  Maintenance

  	
   

  
	
  15.3

  	
   

  	
  Other
  Agreements

  	
   

  
	
  15.4

  	
   

  	
  [***]

  	
   

  
	
  16.

  	
   

  	
  LOSS BY FIRE OR OTHER
  CASUALTY; CONDEMNATION

  	
   

  
	
  16.1

  	
   

  	
  Damage or Destruction

  	
   

  
	
  16.2

  	
   

  	
  Condemnation

  	
   

  
	
  17.

  	
   

  	
  POSSESSION

  	
   

  
	
  18.

  	
   

  	
  NOTICES

  	
   

  
	
  19.

  	
   

  	
  GENERAL PROVISIONS

  	
   

  
	
  19.1

  	
   

  	
  Recitals

  	
   

  
	
  19.2

  	
   

  	
  Manner of Taking Title

  	
   

  
	
  19.3

  	
   

  	
  Right
  to Assign

  	
   

  
	
  19.4

  	
   

  	
  Gender;
  Number

  	
   

  
	
  19.5

  	
   

  	
  Captions

  	
   

  
	
  19.6

  	
   

  	
  Exhibits

  	
   

  
					

 

 

	
  19.7

  	
   

  	
  Entire
  Agreement

  	
   

  
	
  19.8

  	
   

  	
  Modification

  	
   

  
	
  19.9

  	
   

  	
  Attorneys’
  Fees

  	
   

  
	
  19.10

  	
   

  	
  Governing
  Law

  	
   

  
	
  19.11

  	
   

  	
  Time
  of Essence

  	
   

  
	
  19.12

  	
   

  	
  Severability

  	
   

  
	
  19.13

  	
   

  	
  Successors and Assigns

  	
   

  
	
  19.14

  	
   

  	
  Confidentiality

  	
   

  
	
  19.15

  	
   

  	
  Drafting

  	
   

  
	
  19.16

  	
   

  	
  No Agreement Until Accepted

  	
   

  
	
  19.17

  	
   

  	
  Counterparts

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT “A” - PROPERTY LIST

  	
   

  
	
  EXHIBIT “B” - LAND AND BUILDING LEASE AGREEMENT

  	
   

  
	
  EXHIBIT “C” - CLOSING CHECKLIST

  	
   

  
	
  EXHIBIT “D”
  - MINIMUM REQUIREMENTS FOR ALTA/ACSM LAND TITLE SURVEYS

  	
   

  
					

 

 

PURCHASE AGREEMENT AND ESCROW INSTRUCTIONS

 

This Purchase Agreement and Escrow Instructions (this “Agreement”), dated as of March 16,
2004 for reference purposes only, is made by and between CIRCLE K STORES INC.,
a Texas corporation (“Seller”),
and RI CS1, LLC, a Delaware limited liability company; RI CS2, LLC, a Delaware
limited liability company; and CRESTNET 1, LLC, a Delaware limited liability
company, the foregoing entities being referred to individually and collectively
(as the context may require), (“Buyer”),
and is made with reference to the recitals set forth below, and constitutes (i)
a contract of purchase and sale between the parties and (ii) escrow
instructions to LANDAMERICA FINANCIAL SERVICES, INC. (“Title Company”).

 

RECITALS

 

A.     Properties.  Seller, or one or more wholly-owned subsidiaries
controlled by Seller, owns, certain real properties, together with all
improvements located thereon and appurtenances thereunto belonging, which real
properties are identified on the “Property
List” attached hereto and incorporated herein as Exhibit “A”  The terms “Property”
and “Properties” as used in this
Agreement shall mean certain or all (as the context may require) of the real
properties [***] identified on the Property List.  As used herein, the term “Storage
Tank Systems” means a complex of one or more aboveground, if any, or
underground petroleum products storage tanks and their associated underground,
aboveground, and/or connected piping and related fuel dispensing pumping,
mechanical, control and detectional equipment. 
[***].

 

Seller represents and warrants with respect to the Properties that as
of the Closing:

 

(1)     [***]; and

 

(2)     Each Property is improved
with a convenience store (i.e., a retail store selling convenience items) and a
fuel facility (i.e., a retail motor fuel outlet).

 

B.      Purchase
and Sale.  Seller desires to sell
all of Seller’s right, title and interest in and to the Properties upon the
terms and conditions set forth below. 
Buyer desires to purchase all of Seller’s right, title, and interest in
and to the Properties upon the terms and conditions set forth below.

 

C.      Leasehold
Interest.  Concurrently with the
Closing, Buyer, as landlord, shall lease the Properties to Seller, as tenant,
pursuant to certain Lease Agreements (“Leases”),
which Leases substantially shall be in the form of Exhibit “B” attached
hereto and incorporated herein by this reference. The Properties leased under
each Lease shall have an Appraised Value (as defined below) of not more than
[***].

 

1.      PURCHASE PRICE

 

1.1                 Purchase
Price

 

In consideration of the covenants contained in this Agreement, Seller
shall sell and Buyer shall purchase the Properties for a total purchase price
(“Purchase Price”) equal to up to

 

[***] Redacted in accordance with applicable
practice with the Autorité des marchés financiers (Québec Securities
Commission)

 

 

One Hundred Percent (100%) of the aggregate “Appraised Value” of the Properties.  As used herein the term “Appraised Value” shall mean the final
conclusion of value of the Properties as set forth in the Appraisals (as
defined in Section 4.1.4) as approved by Buyer and Seller.  The Purchase Price shall be delivered by
Buyer to Title Company on or before the Closing in Cash (defined as an amount
credited by wire transfer of immediately available funds into Title Company’s
bank account).

 

1.2                 Additional
Properties

 

If any of the conditions to Buyer’s obligation to purchase as set forth
in Section 4 below are not satisfied or approved by Buyer, and Buyer
elects, pursuant to the terms of Section 4.8.1, not to purchase one or
more of the Properties on which conditions are not satisfied, and if, as a
result, the aggregate Appraised Value of the Properties to be acquired is less
than [***], then Seller may (but is not obligated to) offer to substitute
replacement properties (“Additional
Properties”) for any of the Properties to be conveyed to Buyer
hereunder.  In the event Seller desires
to offer Additional Properties to Buyer for its review, Seller shall identify
such Additional Properties promptly upon receipt of Buyer’s notice of its
election not to purchase one or more of the Properties.  The Additional Properties:  (1) shall be reasonable in number; (2) shall
be substantially similar in nature and quality to the Properties; (3) shall
otherwise meet the criteria set forth in Recital A above; (4) shall be deemed
added to the Property List at the earlier of (i) such time as Buyer accepts
same for review; or (ii) ten (10) days after Seller shall notify Buyer of the
identity of such Additional Property, unless prior thereto Buyer shall have
rejected such Additional Property; (5) shall otherwise be governed by all of
the terms and conditions of this Agreement; and (6) the Purchase Price shall be
reasonably adjusted by Buyer based upon the values of the Additional Properties
as determined therefor by Buyer and Seller and the amount allocated to the
excluded Properties.

 

2.      OPENING OF ESCROW

 

Buyer and Seller each represents to the other that it has opened an
escrow (“Escrow”) with Title
Company for the Properties and shall deposit with Title Company fully executed
counterparts of this Agreement for use as escrow instructions.

 

3.      TITLE TO PROPERTIES

 

At Closing, Seller shall convey to Buyer fee simple title to the
Properties by execution and delivery of deeds (“Deeds”) for the Properties in the forms customarily used in
connection with commercial real property transactions in the several states and
counties in which the Properties are situated. 
At the Closing, Buyer shall receive from Title Company an ALTA Owner’s
Extended Policy of Title Insurance (“Title
Policy(ies)”) for each
of the Properties with liability in the full amount of the Appraised Value
insuring fee simple title in Buyer, subject only to exceptions approved by
Buyer as provided in Section  4.1, acting reasonably, together with
such endorsements as may be reasonably requested by Buyer (e.g., survey,
access, owner’s comprehensive, etc.). 
Each Title Policy shall provide survey coverage and to the extent
available at commercially reasonable costs shall provide full coverage against
mechanics’ and materialmen’s liens arising out of the construction, repair or
alteration of any of improvements located on the Property.

 

[***] Redacted in accordance with applicable
practice with the Autorité des marchés financiers (Québec Securities
Commission)

 

 

4.      CONDITIONS TO BUYER’S OBLIGATION TO PURCHASE

 

Buyer’s obligation to purchase the Properties is expressly conditioned
upon each of the following:

 

4.1                 Approvals
by Buyer

 

Buyer’s receipt and approval for each of the Properties of the
following prior to the Closing:

 

4.1.1                  ALTA Commitments for Policy of Title
Insurance.  As soon as reasonably possible, Seller shall
cause the issuance of an ALTA commitment for policy of title insurance,
together with complete and legible copies of all encumbrances and liens of
record (“Commitment”), with
respect to each of the Properties to be forwarded to Buyer for approval.  If no written disapproval of any items in
any Commitment is received from Buyer on or before ten (10) days after the
later of delivery of the respective Commitment to Buyer or delivery of the
respective As-built Survey (as defined in Section  4.1.2), but in any
event prior to the Closing, such Commitment shall be deemed approved by Buyer.

 

4.1.2                  As-built Surveys. 
A survey of each of the Properties (“As-built
Survey”) prepared by a licensed surveyor or civil engineer in
sufficient detail to provide for the Title Policy, certified to Buyer and Title
Company conforming to the minimum requirements for ALTA/ACSM land title surveys
set forth on Exhibit “D”, attached hereto and made a part hereof, to be
delivered to Buyer.  If no written
disapproval of any respective As-built Survey is received from Buyer on or
before ten (10) days after the later of delivery of the As-built Survey or the
respective Commitment, but in any event prior to the Closing, such As-built
Survey shall be deemed approved by Buyer.

 

4.1.3                  Phase I Environmental Site
Assessment Reports.  Phase I environmental site assessment
reports with respect to the Property (each a “Phase
I”) prepared by [***] or by other environmental consultants approved
by Buyer, acting reasonably, (collectively with [***], the “Consultant”) and written evidence of
Buyer’s right to rely on the Phase I in the form of a letter from [***] in the
form attached as Schedule 4.3.1.1 hereto (the “[***] Letter Form”) or otherwise in the form of letters from
the Consultant addressed to Buyer confirming such right (with the [***] Letter,
the “Reliance Letters”).    Buyer hereby acknowledges receipt and
approval for the purposes of this Section 4.1 of the Phase Is for the
Properties listed on Schedule 4.1.3.2 hereto (the “Approved Phase Is”) and approval of the
[***] Letter Form.  If no written
disapproval of any Phase I or Reliance Letter is received from Buyer on or
before the earlier of (a) Closing or (b) ten (10) days following the later of
(i) the execution of this Agreement, and (ii) the delivery of such Phase I or
Reliance Letter, such Phase I or Reliance Letter  shall be deemed approved by Buyer, provided Buyer agrees not
to withdraw its approval of the Approved Phase

 

[***] Redacted in accordance with applicable practice with the Autorité
des marchés financiers (Québec Securities Commission)

 

 

Is and of the [***] Letter Form and not to
unreasonably withhold its approval of any Reliance Letter.

 

4.1.4                  Appraisals. 
As soon as reasonably possible, Seller shall cause a narrative, full
“three method” appraisal (“Appraisal”)
in a “summary format” to be prepared for each of the Properties by an MAI
appraiser designated by Buyer (and reasonably acceptable to Seller), on a
completed project basis, covering the fee simple interest in the underlying
land and improvements, and the Lease, and shall cause said Appraisal to be
delivered to Buyer on or before ten (10) days prior to the Scheduled Closing
Date.  If no written disapproval of the
Appraisal is received from Buyer on or before five (5) days after delivery of
same, the Appraisal shall be deemed approved by Buyer.

 

4.1.5                  Documentation of Storage Tank
Ownership/Registration by Seller.  Confirmation that the most recent
registration or notification forms required by Governmental Authorities for any
Storage Tank Systems on the Property have been submitted to such Governmental
Authorities and if such registration or notification forms are not available,
evidence of Seller’s status as owner of all Storage Tank Systems on such
Property (the “UST Documents”).  If no written disapproval of the UST
Documents is received from Buyer on or before (a) Closing (b) ten (10) days
after the later of (i) the delivery of same and (ii) the date of execution of
this Agreement, the UST Documents shall be deemed approved by Buyer.  Buyer agrees not to unreasonably withhold
its approval of UST Documents.

 

4.1.6                  Other Documents. 
As soon as reasonably possible, Seller shall cause all other documents
listed on Exhibit “C” entitled “Closing Checklist” for the
Properties to be delivered to Buyer.

 

4.2                 Environmental

 

4.2.1                  Buyer’s satisfaction after delivery
by Seller to Buyer of the Other Environmental Reports that there are no
Environmental Concerns related to the Property where:

 

(a)           “Environmental
Concerns” means the actual or reasonably suspected presence of
Hazardous Materials outside of any 
Storage Tank System on the Property, any Release of Hazardous Material
from any Storage Tank System onto, in or from the Property, or any
Environmental Claims with respect to the Property which  in all the circumstances, including, without
limitation, the availability of insurance and UST funds and remediation and
other relevant obligations of Seller under the Lease and other persons
thereunder or elsewhere would reasonably be expected to (i) give rise to
material liability to Buyer under Environmental Laws, including, without limitation,
common law theories of recovery, or (ii) present material likely or actual
restrictions on the current or reasonably anticipated use of any Property.

 

[***] Redacted in accordance with applicable practice with the Autorité
des marchés financiers (Québec Securities Commission)

 

 

(b)           “Environmental
Claims” means any and all actions, suits, demands, claims,
judgments, liens, encumbrances, damages, orders, directives, penalties, fines,
costs, financial assurances, liabilities, losses, investigations, proceedings
or notices of potential responsibility, noncompliance, or violation (including,
without limitation, sums paid in settlement thereof, reasonable attorneys’
fees, reasonable consultation fees and reasonable expert fees) (collectively
hereafter “Claims”) associated
with (1) the environmental condition of a Property or any Release on, in or
emanating from a Property, (2) any Storage Tank System on or having been on a
Property, (3) the cleanup or remediation of a Property or other property
affected by a Release on, in, or emanating from a Property, (4) the
transportation or disposal of Hazardous Materials from a Property, or (5) any
alleged noncompliance of a Property or its related operations with
Environmental Laws, any of which circumstances existing at or before or
continuing beyond Closing, including without limitation any Claim associated
with (i) compliance or enforcement action by Governmental Authorities to seek
or compel cleanup, removal, Regulatory Closure, response, remedial, monitoring
or other actions, damages, or fines or penalties pursuant to any applicable
Environmental Law; (ii) Claims by any third party seeking damages,
contribution, indemnification, cost recovery, compensation or injunctive relief
resulting from Hazardous Materials or a Release on, in, or emanating from a
Property; (iii) all foreseeable and all unforeseeable consequential Claims
directly or indirectly arising out of the use, generation, storage,
transportation, or disposal of Hazardous Materials by Seller or any prior owner
or operator of the Properties; (iv) costs incurred in connection with any
investigation, monitoring, cleanup, Regulatory Closure, remedial action,
removal, or restoration work with respect to environmental conditions
associated with any Property existing at or before or continuing beyond Closing
and required under Environmental Laws or as the result of settlement or court
order arising from any Claim; and (vii) any mechanics or materialmen liens
placed upon any Property in connection with any work upon any Storage Tank
System occurring before, at the time of or continuing beyond Closing or in
connection with any investigation, monitoring, cleanup, Regulatory Closure,
remedial action, removal, or restoration work occurring before, at the time of
or continuing beyond Closing.

 

(c)           “Consultant”
has the meaning assigned thereto in Section 4.1.3 hereof.

 

(d)           “Environmental
Laws” means any and all federal, state or local laws (including
common law), rules, orders, permits and approvals, regulations, statutes,
ordinances, codes, guidelines,

 

[***] Redacted in accordance with applicable practice with the Autorité
des marchés financiers (Québec Securities Commission)

 

 

administrative orders or requirements of any Governmental Authority to
the extent such relate to the protection of human health or the environment,
but solely to the extent any of the foregoing have the force of law, and
including, without limitation, the Resource Conservation and Recovery Act, the
Toxic Substances Control Act, the Occupational Safety and Health Act, the
Comprehensive Environmental Response, Compensation, and Liability Act, the
Hazardous Materials Transportation Act, the Clean Water Act, the Safe Drinking
Water Act, the Clean Air Act, and applicable state and local analogous statutes,
all as in effect on or prior to Closing.

 

(e)           “Governmental
Authorities” means federal, state, and local governmental entities
having legal or regulatory jurisdiction over the Properties pursuant to
Environmental Laws.

 

(f)            “Hazardous
Material” means any and all substances, wastes, emissions,
pollutants, and materials regulated or characterized as hazardous, extremely
hazardous, restricted, toxic, special, biohazardous, or radioactive under any
Environmental Law, or otherwise regulated under any Environmental Law,
including but not limited to asbestos or asbestos-containing materials, oil and
waste oil, petroleum and petroleum products and additives(including without limitation, gasoline and
diesel) and their wastes.

 

(g)           “Other
Environmental Reports” means, except for the Phase Is, the
following:

 

(i)            Access to all material documents housed in
the [***] environmental electronic document repository website located at
[***], which website is administered by [***] 
and accessed through a web based tool, [***], as described in the e-mail
from [***]  to [***] dated
February 25, 2004 and attached as Schedule 13.9.3(i)A), by entering
the store number for each Property (which Seller hereby represents are those
set out on attached Schedule 13.9.3(i)(B)) on the “Search Criteria” page
of [***], such access to be maintained until Closing and such access being
hereby approved as a manner of providing available for purposes of
Section 13.9.1;

 

(ii)           a copy of the contents of the Seller’s NOV
database, continuously updated as needed up to and as of the day before
Closing, summarizing for each Property all known, non-remediation related
notices to comply from Governmental Authorities and notices of violation from
Governmental Authorities, and any documents referenced in the Seller’s NOV
database reasonably requested by Buyer as of the day before Closing;

 

[***] Redacted in accordance with applicable practice with the Autorité
des marchés financiers (Québec Securities Commission)

 

 

(iii)          a report, continuously updated as needed up
to and as of the day before Closing, showing the instances in the Seller’s
Storage Tank System TRI-tms testing and cathodic protection survey databases
with respect to each Property where any of such tests and surveys conducted
since January 1, [***]  and
recorded therein showed a failure or result which indicates non-compliance with
Environment Law and the status of efforts to resolve such result;

 

(iv)          a summary, continuously updated as needed up
to and as of the day before Closing, of any field results, laboratory results,
Release notifications or reports of which Seller is aware and, as available,
any actual draft or final reports reasonably requested by Buyer as of the day
before Closing, from the intrusive testing conducted by Seller or by [***] in
connection with the Environmental Liabilities Agreement (as defined in
Section 15.4 of this Agreement) which indicate any material likelihood of
Hazardous Materials being present on, under or emanating from any Property;

 

(v)           [***]; and

 

(vi)          copies of any notices, correspondence,
demands, memoranda, pleadings or other documents of which Seller is aware, to
be updated as needed up to and as of the day before Closing, indicating the
threat or likelihood of, or the actual institution of, any pending mediation,
arbitration, or litigation of any Environmental Claim by any third parties
other than Governmental Authorities.

 

(h)           “Regulatory
Closure” means the approval and acceptance by the proper
Governmental Authority or Governmental Authorities of certain cleanup, closure,
or remediation work at or offsite of a Property in connection with a Release,
as evidenced by written letter or similar formal communication affirming such
approval and acceptance, including but not limited to “case closure” or “no further
action” letters or communications of similar import and finality; provided,
however, that any requirements for additional work set forth in any such
communication as a condition of such approval and acceptance shall first have
been first satisfied in full and confirmed in writing by the applicable
Governmental Authority evidencing such satisfaction before Regulatory Closure
is deemed to occur.

 

(i)            “Release”
means any spilling, leaking, pumping, pouring, emitting, emptying, discharging,
injecting, escaping, leaching, dumping, abandonment or disposing of any
Hazardous Material

 

[***] Redacted in accordance with applicable practice with the Autorité
des marchés financiers (Québec Securities Commission)

 

 

upon or into the soils, groundwater, surface
water, air, wetlands or any other environmental media, drains, sewers or
improved surface or buildings, including, without limitation, the abandonment
or disposal of any containers of Hazardous Materials.

 

Buyer agrees that it will provide written notice to Seller, as soon as
reasonably possible but in any event before Closing, of the date of Buyer’s
determination either (i) that the Buyer is satisfied that there are no
Environmental Concerns with respect to each Property or (ii) that there
are Environmental Concerns with respect to the Property and with a reasonably
detailed explanation of any such Environmental Concerns, provided that, if
Buyer fails to provide such notice prior to Closing, Buyer shall be deemed at
Closing to be satisfied that there are no Environmental Concerns with the
Property.  Should Seller subsequent to a
notice indicating that Buyer is satisfied that there are no Environmental
Concerns with respect to a Property identify and deliver or make available to
Buyer prior to Closing any additional or modified Other Environmental Reports
for the Property from which Buyer reasonably determines that there is an
Environmental Concern and provides a written notice thereof to Seller
containing a reasonably detailed explanation of such Environmental Concern,
Buyer’s notice of satisfaction shall be terminated.  Buyer agrees that any notice it gives under this
Section 4.2.1 will not include any matter that is not an Environmental
Concern as a basis for indicating that the Buyer is not satisfied.

 

4.2.2                  Buyer has confirmed with its
insurance carrier Buyer’s ability to add the Properties to its existing
pollution and remediation legal liability policy without additional or new
exclusions or limitations in coverage and the Buyer agrees to use commercially reasonable
efforts to obtain such confirmation as soon as reasonably possible.

 

4.3                 Physical
Characteristics of the Properties

 

Buyer’s review and approval, on or before [***], of the structural,
mechanical, electrical and other physical characteristics of the
Properties.  If Buyer shall not have
disapproved the physical characteristics of a Property on or before [***], such
Property shall be deemed approved and Buyer shall not be entitled not to close
on such Property based on such physical characteristics, subject to the terms
of Section 4.7 below.

 

4.4                 Accuracy
of Representations

 

All of Seller’s representations and warranties contained in or made
pursuant to this Agreement shall have been true and correct in all material
respects when made and shall be true and correct as of the Closing, and Seller
shall have complied with all of Seller’s material covenants and agreements
contained in or made pursuant to this Agreement.

 

4.5                 Foreign
Investments

 

Buyer’s receipt of the affidavit, certification or notice required by
Section 1445 of the Internal Revenue Code of 1986, as amended and the
Regulations pursuant thereto.

 

[***] Redacted in accordance with applicable
practice with the Autorité des marchés financiers (Québec Securities
Commission)

 

 

4.6                 Leases
and Guaranties

 

Execution by Seller of the Leases for the Properties and execution by
Alimentation Couche-Tard of a Guaranty of Lease in favour of each Buyer.

 

4.7                 Change in Conditions

 

If any of the conditions in this Section 4 change in a manner
which is materially adverse to Buyer after having been satisfied or waived by
Buyer and before the transaction contemplated herein (“Transaction”) is closed, then such
condition(s) shall be reinstated as if having never been satisfied or waived by
Buyer.

 

4.8                 Failure
of Conditions

 

4.8.1                  The foregoing conditions contained
in this Section 4 are intended solely for the benefit of Buyer.  If any of the foregoing conditions are not
satisfied or approved by Buyer, Buyer shall have the right at its sole election
either (i) to waive the condition in question and proceed with the purchase of
the Properties pursuant to all of the other terms of this Agreement or (ii) to
not purchase such of the Properties for which conditions are not satisfied.

 

4.8.2                  The Closing may be extended by
either party for a reasonable time up to a maximum of ninety (90) days if
required to allow the conditions contained in this Section  4 to be
satisfied, subject to Buyer’s further rights not to purchase those Properties
which have not met such conditions upon the expiration of the period or periods
of any extension if all such conditions have not then been satisfied.

 

5.      CONDITIONS TO SELLER’S OBLIGATION TO SELL

 

Seller’s obligation to sell is expressly conditioned upon each of the
following:

 

5.1                 Performance
by Buyer

 

Timely performance of each obligation, covenant, and delivery required
of Buyer.

 

5.2                 Accuracy
of Representations

 

All of Buyer’s representations and warranties contained in or made
pursuant to this Agreement shall have been true and correct in all material
respects when made and shall be true and correct at the Closing, and Buyer
shall have complied with all of Buyer’s material covenants and agreements
contained in or made pursuant to this Agreement.

 

5.3                 Payment
of Purchase Price

 

Payment of the Purchase Price at the Closing in the manner provided in
this Agreement.

 

6.      BUYER’S DELIVERIES TO TITLE COMPANY AND SELLER

 

6.1                 Purchase
Price

 

On or prior to the Closing Buyer shall deliver in Cash to Title Company
the Purchase Price as set forth in Section 1, less or plus the
adjustments, if any, made pursuant to Sections 1.2

 

[***] Redacted in accordance with applicable
practice with the Autorité des marchés financiers (Québec Securities
Commission)

 

 

and 9. 
Title Company shall deposit the Purchase Price in an interest bearing
account, the interest upon which shall accrue to the benefit of Buyer.

 

6.2                 Lease
and Memorandums

 

On or before the Closing, Buyer shall deliver to Seller the Leases for
the Properties executed by Buyer.  On or
before the Closing, Buyer shall deliver to Title Company the Memorandums of
Lease for the Properties executed and acknowledged by Buyer.

 

6.3                 Failure
to Deliver

 

The failure of Buyer to make any required delivery within the specified
time shall constitute a material breach by Buyer.

 

7.      SELLER’S DELIVERIES TO TITLE COMPANY AND BUYER

 

7.1                 Deeds

 

On or before the Closing, Seller shall deliver to Title Company the
Deeds for the Properties executed and acknowledged by Seller.

 

7.2                 Leases,
Memorandums

 

On or before the Closing, Seller shall deliver to Buyer the Leases for
the Properties executed by Seller.  In
addition, on or before the Closing, Seller shall deliver to Title Company the
Memorandums of Lease for the Properties executed and acknowledged by Seller.

 

7.3                 Documents
Needed to Close

 

On or before the Closing, Seller shall deliver to Buyer each and every
document described in Section 4, subject to Buyer’s right to waive
delivery for the Properties.

 

7.4                 Failure
to Deliver

 

The failure of Seller to make any required delivery within the
specified time shall constitute a material breach by Seller.

 

8.      THE CLOSING

 

8.1                 Date
and Manner of Closing

 

Title Company is authorized to close on the Transaction (“Closing”) on or before [***] or such other
date as may be mutually agreeable to the parties (“Scheduled Closing Date”), provided that all of the conditions
to Buyer’s and Seller’s obligation to close hereunder have been either
satisfied or waived and all deliveries under Articles 6 and 7 have been made or
the requirement therefore waived. 
Notwithstanding the foregoing or anything contained in this Agreement to
the contrary, in the event the Closing has not occurred on or before [***] as a
result of Seller’s failure to satisfy any of the material conditions set forth
in Article 4, Buyer shall have the right following the delivery of seven
(7) days’ written notice to Seller, and provided such conditions remain
unsatisfied at the end of such seven (7) day period, as its sole and exclusive
remedy, to terminate this Agreement as to those Properties for which conditions
remain unsatisfied, and upon such termination both parties shall be released
from their respective obligations and liabilities hereunder with respect to
such Properties, subject to any liabilities or obligations that survive
termination pursuant to the express term hereof.  The Transaction shall be deemed closed when (i) Title Company is
irrevocably committed to issuing the Title Policies;

 

[***] Redacted in accordance with applicable
practice with the Autorité des marchés financiers (Québec Securities
Commission)

 

 

and (ii) all funds and documents required to
be delivered to Title Company pursuant to this Agreement have been
delivered.  On the Scheduled Closing
Date the Title Company will deliver the Purchase Price to Seller in Cash.

 

Buyer, at its election, may authorize Title Company to close on the
Properties all at once or individually (subject to a minimum of ten (10)
Properties per interval) in certain intervals. 
If Buyer authorizes Title Company to close on the Properties
individually, Buyer shall deliver to Title Company the Purchase Prices for such
Properties as set forth on Exhibit “A” representing payment due in
connection with those Properties for which Title Company has received authorization
to close.

 

8.2                 Delay
in Closing; Authority to Close

 

If Title Company cannot close the Escrow on or before the Scheduled
Closing Date, it will nevertheless close when all conditions have been
satisfied or waived, notwithstanding that one or more of such conditions was
not timely performed, unless after the Scheduled Closing Date and prior to the
close of the delayed Escrow, Title Company receives a written notice from Buyer
or Seller to terminate the Escrow and this Agreement with respect to the
applicable Properties on which the Closing has been delayed.

 

9.      PRORATION, COSTS AND EXPENSES

 

9.1                 Prorations
and Apportionments

 

Contemporaneously with the Closing, Seller intends to lease the
Properties from Buyer.  Therefore, the
parties do not anticipate the need to prorate revenues or expenses.  However, in the event an item of expense or
revenue must be prorated, it shall be prorated and apportioned as of 12:01 a.m.
on the date of the Closing so that Seller shall bear all expenses with respect
to the Properties and shall have the benefit of all income with respect to the
Properties through and including the period preceding the date of the
Closing.  Any taxes or other amounts
which cannot be ascertained with certainty as of the Closing shall be prorated
on the basis of the parties’ reasonable estimates of such amount(s) and shall
be the subject of a final proration thirty (30) days after the Closing or as
soon thereafter as the precise amounts can be ascertained.

 

Notwithstanding the foregoing, monthly rent payable by the “Tenant”
under the Lease shall be prorated based upon the actual
number of days in the month in which the Closing occurs, and shall be paid by
Seller at the Closing for the period commencing on the Closing and ending on
the last day of the month in which the Closing occurs.  In addition, if the Closing occurs on or
after the twenty-fifth (25th) day of the month, Seller also shall
pay the monthly rent payable by Tenant under the Lease for the immediately
succeeding calendar month.

 

9.2                 Payment
of Adjustments to Proration

 

Either party owing the other party a sum of money based on adjustments
made to prorations after the Closing shall promptly pay that sum to the other
party, together with interest thereon at the rate of twelve percent (12%) per
annum to the date of payment if payment is not made within ten (10) days after
mutual agreement of the amount due.

 

[***] Redacted in accordance with applicable
practice with the Autorité des marchés financiers (Québec Securities
Commission)

 

 

9.3           Seller’s Costs and
Expenses

 

Seller shall pay Seller’s own attorneys’ fees, any and all brokerage
commissions, and all costs, fees and expenses payable in connection with the
Transaction, except as specifically set forth in Section 9.4 below.  Without limiting the generality of the
foregoing, Seller shall pay the cost of procuring the Title Policies, As-built
Surveys, Appraisals, Phase Is, documentary or other transfer taxes applicable
to the sale, Escrow fee, recording fees and all other costs and charges of the
Escrow.

 

9.4                 Buyer’s
Costs and Expenses

 

Buyer shall pay for the aerial photographs and Buyer’s own attorneys’
fees, costs of site inspections and other due diligence costs and expenses
except as specifically set forth in Section 9.3 above.

 

10.      DISTRIBUTION OF FUNDS AND DOCUMENTS

 

10.1               Form
of Distributions

 

All disbursements by Title Company shall be made by wire transfers of
immediately available funds to the account of, and as directed by, the
receiving party.

 

10.2               Recorded
Documents

 

Title Company shall cause the County Recorder of the County in which
each of the Properties are located to mail the Deeds, Lease Memoranda (and any
other documents which are required by this Agreement to be, or by general usage
are, recorded) after recordation, to the grantee, beneficiaries, tenant or
person (i) acquiring rights under the documents or (ii) for whose benefit the
documents were acquired.

 

10.3               Non-Recorded
Documents

 

Title Company shall, at the Closing, deliver by United States mail,
Federal Express or other national overnight delivery service (or shall hold for
personal pickup, if requested), each non-recorded document received by Title
Company to the payee or person (i) acquiring rights under the document or (ii)
for whose benefit the documents were acquired.

 

10.4               Cash
Disbursements

 

At the Closing, Title Company shall arrange for wire transfer of
immediately available funds (i) to Seller, or order, the cash plus any
proration or other credits to which Seller shall be entitled for the Properties
and less any appropriate proration or other charges and (ii) to Buyer, or
order, any excess funds previously delivered to Title Company by Buyer.

 

10.5               Copies
of Documents

 

Following the Closing, Title Company shall deliver to Buyer and to
Seller a copy of the Deeds, Lease Memoranda (conformed to show recording data)
and each other recorded document for the Properties.

 

[***] Redacted in accordance with applicable practice with the Autorité des marchés financiers (Québec
Securities Commission)

 

 

11.      RETURN OF DOCUMENTS AND FUNDS UPON
TERMINATION

 

11.1               Return
of Seller’s Documents

 

In the event the Escrow is terminated for any reason, Buyer shall,
within fifteen (15) calendar days following the termination, deliver to Seller
all documents and materials, if any, relating to the Properties previously
delivered to Buyer by Seller.  Title
Company shall deliver all documents and materials relating to the Properties
previously deposited by Seller and then in Title Company’s possession to
Seller.

 

11.2               Return
of Buyer’s Documents

 

In the event the Escrow is terminated for any reason, Seller shall,
within fifteen (15) calendar days following termination, deliver to Buyer all
funds and documents, if any, relating to the Properties, previously delivered to
Seller by Buyer.  Title Company shall
deliver all documents, materials, and funds relating to the Properties
previously deposited by Buyer and then in Title Company’s possession to Buyer.

 

11.3               No
Effect on Rights of Parties

 

The return of documents and monies as set forth above shall not affect
the right of either party to seek the legal or equitable remedies that the
party may have with respect to the enforcement of this Agreement, subject to
the limitations set forth in Article 12 below.

 

11.4               Payment
of Termination Fee

 

Title Company may condition its deliveries upon payment of a
termination fee (which fee shall not exceed the actual out of pocket costs
incurred in connection with search and exam fees, if any, charged by Title
Company’s local title agents) by the party requesting delivery.  Notwithstanding the foregoing, any
termination fee shall be paid (or reimbursed) by the defaulting party, or paid
equally if neither party is then in default.

 

12.      DEFAULT

 

Anything in this Agreement to the contrary notwithstanding, if the
Transaction fails to close in its entirety or with respect to any specific
Property as a result of (i) Seller’s breach of its obligations under
Section 7.1 or 7.2, Buyer shall be entitled to such remedies for breach of
contract as may be available under applicable law, including, without
limitation, the remedy of specific performance; or (ii) Seller’s fault or
Seller’s breach of this Agreement (other than a breach of its obligations under
Section 7.1 or 7.2), Buyer’s sole remedy shall be termination of this
Agreement in respect of the Property with respect to which such fault or breach
has occurred and the readjustment of the Purchase Price as set forth in
Section 1.

 

Anything in this Agreement to the contrary notwithstanding, in the
event that the Transaction fails to close in its entirety or with respect to a
specific Property on account of Buyer’s fault or Buyer’s breach of this
Agreement, Seller shall be entitled to such remedies for breach of contract as
may be available under applicable law, including, without limitation, the
remedy of specific performance.

 

[***] Redacted in accordance with applicable practice with the Autorité des marchés financiers (Québec
Securities Commission)

 

 

13.      REPRESENTATIONS AND WARRANTIES OF
SELLER

 

The following representations and warranties by Seller are now and
shall, at the Closing, be materially true and correct.  If during the period between the execution
of this Agreement and the Closing, Seller has actual knowledge that any of the
following representations and warranties have ceased to be true, Seller
covenants to give notice thereof to Buyer immediately.  Seller hereby represents and warrants to
Buyer as follows about, in the case of each of the
representations and warranties below in this Article 13 other than those
in Section 13.9 (which are governed solely by the provisions of
Section 13.9), solely to Seller’s actual
knowledge.

 

13.1               Authority
of Seller

 

Seller is a corporation duly organized and validly existing and in good
standing under the laws of the State of Texas and, has the corporate power and
authority to enter into this Agreement and lease the Properties.  This Agreement and the Leases relating to
the Properties and delivered to Buyer have been duly authorized, executed, and
delivered by Seller and do not violate any provisions of any agreement or
judicial order to which Seller is a party or to which Seller or the Properties
are subject.

 

13.2               Space
Leased to Third Parties

 

There are no existing leases affecting the Properties that will survive
the Closing, except to the extent of certain space leases, complete copies of
which have been or will be provided to Buyer (“Space Leases”).  [***].

 

13.3               Use
and Operation

 

Except as disclosed in writing to Buyer Seller knows of no facts which
would prevent Seller from using and operating the Properties pursuant to the
Leases after the Closing in substantially the same manner in which the
Properties have been used and operated prior to the date of this Agreement.

 

13.4               Land
Use Regulation

 

Except as disclosed in the Commitments or in writing to Buyer, Seller
has no actual knowledge of any condemnation, zoning or other land use
regulation proceedings instituted, or of any special assessment proceedings
affecting the Properties which would reasonably be expected to materially and
detrimentally affect the use or operation of the Properties or materially and
detrimentally affect the value of the Properties.

 

13.5               Reports,
Contracts and Other Documents

 

The contracts or other documents delivered to Buyer by or on behalf of
Seller pursuant to this Agreement are true and correct copies thereof.

 

13.6               Absence
of Fraud and Misleading Statements

 

No representation, warranty, or statement of Seller in this Agreement
or, in any document, certificate, or schedule furnished to Buyer by Seller
pursuant to this Agreement contains any material untrue statement of a material
fact or omits in any material respects to state a material fact necessary to
make the statements of facts therein not misleading.

 

[***] Redacted in accordance with applicable practice with the Autorité des marchés financiers (Québec
Securities Commission)

 

 

13.7               Litigation

 

Except as disclosed in writing to Buyer, there is no litigation or
Governmental Authority administrative enforcement action, pending or
threatened, against Seller or any basis therefor that would reasonably be
expected to materially and detrimentally affect the use or operation of the
Properties for their intended purpose or materially and detrimentally affect
the value of the Properties, or materially adversely affect the ability of
Seller to perform its obligations under this Agreement.

 

13.8               Other
Contracts to Convey

 

Seller has not committed nor obligated itself in any manner whatsoever
to sell the Properties to any party other than Buyer.  Seller has not hypothecated or assigned any rents or income from
the Properties in any manner.

 

13.9               Environmental
Condition of Properties [***]

 

13.9.1                Seller represents as of Closing that
it will have disclosed to Buyer in writing or otherwise made available in a
manner satisfactory to Buyer, acting reasonably, with respect to each Property
(i)  Other Environmental Reports and Phase Is for such Property and
(ii)  all unresolved or pending instances or allegations by Governmental
Authorities of current non-compliance of the property or Storage Tank Systems
on the Property with Environmental Laws of which Seller is aware.  [***].

 

13.9.2                Seller further represents and
warrants that the Other Environmental Reports, when made available or otherwise
provided to Buyer were, and as of the day before Closing are, representative of
and account for in all material respects all material documents in Seller’s
possession or control that relate to the environmental condition of each Property
or any Environmental Concerns of which Seller is aware [***].

 

13.9.3                [***].

 

13.9.4                [***].

 

13.10             Property
Tax Assessment

 

Seller has no actual knowledge of any special assessments levied
against the Properties except as appear on the last available tax statement or
as appear in the Commitments or in the Title Policies accepted by Buyer.  Notwithstanding any other provision of this
Agreement to the contrary, if Buyer shall become liable after the Closing for payment
of any property taxes assessed against the Properties for any period of time
prior to the Closing, Seller shall immediately pay to Buyer on demand an amount
equal to such tax assessment.

 

13.11             Agreements
Affecting the Properties

 

Except as otherwise disclosed to Buyer in writing, at the Closing there
are no leases (other than the Leases and the Space Leases), or other agreements
which will affect the Properties after the Closing except as shown in the due
diligence materials with respect to the Properties provided to Buyer or in the
Commitments for the Properties or in the Title Policies accepted by Buyer.

 

[***] Redacted in accordance with applicable practice with the Autorité des marchés financiers (Québec
Securities Commission)

 

 

13.12             Sales
Information

 

Seller’s investigation of the sales information provided by Seller to
Buyer in connection with the Properties has not disclosed any information that
indicates that any such sales information provided to Buyer by Seller with
respect to the Properties, including without limitation, store level sales
information, is not substantially accurate and correct in all material
respects.

 

13.13             Survival

 

The representations and warranties of Seller contained herein shall
survive the Closing and delivery of the Deeds for a period of twelve (12) months
from the Closing; provided, however, notwithstanding the foregoing, the
representations, covenants, warranties and indemnifications by Seller contained
in Sections 13.6 and 13.9 shall survive Closing and delivery of the Deeds.

 

13.14             No
Broker

 

Seller warrants to Buyer that other than Trefethen & Company, there
are no brokerage commissions or finder’s fees payable as a result of the
Agreement or the Closing arising out of any agreements with Seller or actions
of Seller.  Seller shall pay all fees
due Trefethen & Company in connection with the Transaction and shall
indemnify and hold harmless Buyer from any claims, costs, damages or liability
arising from the inaccuracy of the foregoing representation and warranty.

 

14.      REPRESENTATIONS & WARRANTIES OF BUYER

 

Buyer hereby represents and warrants to Seller as follows:

 

14.1               Authority
of Buyer

 

Each Buyer is a limited liability company duly organized, validly
existing and in good standing under the laws of the State of Delaware and, has
the corporate power and authority to enter into this Agreement and lease the
Properties to Tenant.  This Agreement
and all documents executed by Buyer which are to be delivered to Seller at the
Closing are, or at the time of Closing will be, duly authorized, executed, and delivered
by Buyer, and are, or at the Closing will be, legal, valid, and binding
obligations of Buyer, and do not, and at the time of Closing will not, violate
any provisions of any agreement or judicial order to which Buyer is a party or
to which it is subject.

 

14.2               Absence
of Fraud and Misleading Statements

 

No representation, warranty, or statement of Buyer in this Agreement or
in any document, certificate, or schedule furnished or to be furnished to
Seller pursuant thereto contains or will contain any untrue statement of a
material fact or omits or will omit to state a material fact necessary to make
the statements or facts not misleading. 
All representations, warranties, or statements of Buyer are based upon current,
accurate, and complete information as of the time of their making and there has
been no subsequent material change in the information.

 

[***] Redacted in accordance with applicable practice with the Autorité des marchés financiers (Québec
Securities Commission)

 

 

14.3               Litigation

 

There is no litigation pending or, to Buyer’s knowledge, threatened,
against Buyer or any basis therefore before any court or administrative agency
that might adversely affect the ability of Buyer to perform its obligations
under this Agreement.

 

14.4               Financial
Condition

 

Buyer has adequate financial resources to make timely payment of all
sums due from Buyer hereunder and to perform all of its obligations hereunder.

 

14.5               Survival

 

The representations and warranties of Buyer contained herein shall
survive the Closing and delivery of the Deeds for a period of twelve (12)
months from the Closing.

 

14.6               No
Broker

 

Buyer warrants to Seller that (other than commissions payable by Seller
to Trefethen & Company) there are no brokerage commissions payable as a
result of the Agreement or the Closing arising out of any agreements with Buyer
or actions of Buyer.  Buyer shall
indemnify and hold harmless Seller from any claims, costs, damages or liability
arising from the inaccuracy of the foregoing representation and warranty.

 

15.      COVENANTS

 

Seller and Buyer covenant and agree with one another as follows:

 

15.1               Indemnification
by Parties

 

[***], each party shall indemnify the other party and hold the other
party harmless from and against any and all claims, demands, liabilities,
liens, costs, expenses, penalties, damages, and losses, including, without
limitation, reasonable attorneys’ fees and costs, suffered as a direct or
indirect result of any action or claim brought against the indemnified party by
any party other than the indemnifying party or its agents or employees:

 

15.1.1                Intentionally omitted.

 

15.1.2                Any and all obligations,
liabilities, claims, liens, or encumbrances, whether direct, contingent, or
consequential and no matter how arising or accruing, which the Buyer would not
have suffered or incurred but for this Agreement and the transactions
contemplated herein and which are in any way related to or arising from any
act, conduct, omission, contract, or commitment of a party (or any of its
agents or employees) at any time or times before the Closing, provided that
such indemnification will not apply to any environmental matter, including,
without limitation, any Release or any matter contemplated by any Environmental
Law.  The provisions of this
Section shall survive the execution and delivery of this Agreement, the
delivery of the Deeds, and transfer of title.

 

15.2               Maintenance

 

Between execution of this Agreement and the Closing, Seller shall, at
Seller’s sole cost and expense, maintain the Properties in the same order,
condition, and repair existing at the time of execution of this Agreement,
reasonable wear and tear and damage from casualty 

 

[***] Redacted in accordance with applicable practice with the Autorité des marchés financiers (Québec
Securities Commission)

 

 

excepted, and shall operate the Properties in substantially the same
manner as before the making of this Agreement as though Seller were retaining
the Properties.

 

15.3               Other
Agreements

 

Between the execution of this Agreement and the Closing, Seller shall
not, except (i) in the ordinary course of business, (ii) in circumstances
involving the replacement or renewal of existing contract, or (iii) as may be
required to maintain and operate the Properties or if required by law or
pursuant to existing agreements affecting the Properties, enter into, or,
except (A) if such contracts or agreements are replaced in the ordinary course
of business, or, (B) following the default by the other party or parties
thereto, terminate any contracts or agreements pertaining to the Properties
without in each case obtaining Buyer’s prior written consent thereto which
consent shall not be unreasonably withheld or delayed.

 

15.4               [***]

 

[***].

 

16.      LOSS BY FIRE OR OTHER CASUALTY; CONDEMNATION

 

16.1               Damage
or Destruction

 

In the event that any of the land or improvements on the Properties are
damaged or destroyed by fire or other casualty or in the event of newly
occurring or discovered contamination from a Release prior to the Closing, then
Seller may terminate this Agreement with respect to such damaged or destroyed
or contaminated Property, or may offer and agree to cause the restoration and
repair of such damage or the assessment and remediation of any such Release to
the extent required under Environmental Laws and by Governmental Authorities
having jurisdiction, either before or after the Closing.  Termination shall be by written notice to
Buyer within ten (10) days after the occurrence of the damage or destruction or
the discovery of the Release, in which case this Agreement shall terminate as
to the affected Property, and the parties shall proceed with the purchase and
sale of the balance of the Properties pursuant to the terms of this
Agreement.  Buyer shall have no obligation
to accept Seller’s offer and agreement to restore or repair such damage if such
restoration and repair would cause the Scheduled Closing Date to be extended
with respect to the affected Property more than ninety (90) days from the
relevant date, or if newly occurring or discovered contamination from a Release
on the affected Property constitutes an Environmental Concern, in which event
Buyer shall have the right to terminate this Agreement as to the affected
Property, and the parties shall proceed with the purchase and sale of the balance
of the Properties pursuant to the terms of this Agreement.  Buyer shall pay all costs, if any, that may
arise as a result of terminating this Agreement under this Section.

 

16.2               Condemnation

 

In the event that prior to the Closing a governmental entity shall
commence any eminent domain proceeding to take any portion of the Properties,
Buyer shall have the option to make either of the following elections:

 

16.2.1                Terminate this Agreement with
respect to the affected Property by written notice to Seller within five (5)
days of its receiving notice of such action of condemnation, and the parties
shall proceed with the purchase and sale of the balance of the Properties
pursuant to the terms of this Agreement; or

 

[***] Redacted in accordance with applicable practice with the Autorité des marchés financiers (Québec
Securities Commission)

 

 

16.2.2                Proceed with the Transaction in
which case the Purchase Price shall not be reduced and Buyer shall be entitled
to the net award paid to Seller or Seller’s mortgagee for the taking, if any,
and Seller shall assign and transfer to Buyer all right, title, and interest in
and to any awards.

 

17.      POSSESSION

 

Possession of the Properties shall be delivered to Buyer at the
Closing, subject to the Leases.

 

18.      NOTICES

 

All notices, requests, or demands herein provided to be given or made,
or which may be given or made by either party to the other, shall be given or
made only in writing and shall be deemed to have been duly given:  (i) when delivered personally or by overnight
courier at the address set forth below, or to any agent of the party to whom
notice is being given, or (ii) on the date sent via facsimile transmission
(with written evidence thereof).  The
proper address to which notices, requests, or demands may be given or made by
either party shall be the address set forth at the end of this Section or
to such other address or to such other person as any party shall
designate.  Such address may be changed
by written notice given to the other party in accordance to this Section.

 

If to Buyer:

 

REALTY INCOME CORPORATION

Attn:  Legal Department

220 West Crest Street

Escondido, CA  92025-1707

(760) 741-2111

(760) 741-8674 (Fax)

 

[***] Redacted in accordance with applicable practice with the Autorité des marchés financiers (Québec
Securities Commission)

 

 

If to Seller:

 

CIRCLE K STORES INC.

Attn:  President

1500
N. Priest Drive

Tempe,
Arizona, 85281

(602) 728-3114

(602) 728-5126 (Fax)

 

With Copy to:

 

ALIMENTATION COUCHE-TARD INC.

Attn:  Richard Fortin

1600 St. Martin Boulevard West

Tower B, Suite 280

Laval, Quebec, CANADA  H7G 4S7

(450) 662-6632

(450) 662-7537 (Fax)

 

With Copy to:

 

DAVIES WARD PHILLIPS & VINEBERG LLP

Scott Hyman, Esq.

44th Floor, 1 First Canadian Place

Toronto, Ontario, CANADA  M5X
1B1

(416) 863-0900 (Main)

(416) 863-5581 (Direct)

(416) 863-0871 (Fax)

shyman@dwpv.com (e-mail)

 

If to Title Company:

 

LANDAMERICA FINANCIAL GROUP, INC.

Attn:  Jennifer Flynn

7557 Rambler Road, Suite 1200
L.B. #31

Dallas, TX  75231

(877) 273-1770

(214) 346-7146 (direct dial)

(877) 556-8112 (Fax number)

jflynn@landam.com (e-mail)

 

19.      GENERAL PROVISIONS

 

19.1               Recitals

 

The Recitals set forth above commencing on Page 1 of this Agreement are
incorporated herein by reference.

 

[***] Redacted in accordance with applicable practice with the Autorité des marchés financiers (Québec
Securities Commission)

 

 

19.2               Manner
of Taking Title

 

Buyer shall have the right to take title to the Properties at the
Closing in a name other than Buyer’s name.

 

19.3               Right
to Assign

 

Buyer shall have the right to assign Buyer’s rights hereunder, but any
such assignment shall not relieve Buyer of Buyer’s obligations herein unless
Seller expressly relieves Buyer; and in any event the assignee under any such
assignment shall assume and agree, in writing, to perform, and be bound by, all
of the terms and conditions of this Agreement to be performed by Buyer, or to
which Buyer is subject.

 

19.4               Gender;
Number

 

The use of (i) the neuter gender includes the masculine and feminine
and (ii) the singular number includes the plural whenever the context requires.

 

19.5               Captions

 

Captions in this Agreement are inserted for the convenience of
reference only and do not define, describe, or limit the scope or the intent of
this Agreement or any of its terms.

 

19.6               Exhibits

 

All attached exhibits are a part of this Agreement and are incorporated
in full by this reference.

 

19.7               Entire
Agreement

 

This Agreement contains the entire agreement between the parties
relating to the Transaction and all prior or contemporaneous agreements,
understandings, representations, and statements, oral or written, are merged
into this Agreement.

 

19.8               Modification

 

No modification, waiver, amendment, discharge, or change of this
Agreement shall be valid unless it is in writing and signed by the party
against which the enforcement of the modification, waiver, amendment,
discharge, or change is or may be sought.

 

19.9               Attorneys’
Fees

 

Should any party employ an attorney for the purpose of enforcing or
construing this Agreement, or any judgment based on this Agreement, in any
legal proceeding whatsoever, including insolvency, bankruptcy, arbitration,
declaratory relief, or other litigation, the prevailing party shall be entitled
to receive from the other party or parties, reimbursement for all reasonable
attorneys’ fees and all costs, including, but not limited to, service of
process, filing fees, court and court reporter costs, investigative costs,
expert witness fees, and the cost of any bonds, whether taxable or not, and
that such reimbursement shall be included in any judgment or final order issued
in that proceeding.  The “prevailing
party” means the party determined by the court to most nearly prevail and not
necessarily the one in whose favor a judgment is rendered.

 

19.10             Governing
Law

 

This Agreement shall be construed and enforced in accordance with the
laws of the state of New York.

 

[***] Redacted in accordance with applicable practice with the Autorité des marchés financiers (Québec
Securities Commission)

 

 

19.11             Time
of Essence

 

Time is of the essence of this Agreement and every provision hereof.

 

19.12             Severability

 

In the event any term, covenant, condition, or provision of this
Agreement is held to be invalid, void, or otherwise unenforceable by any court
of competent jurisdiction, the fact that such term, covenant, condition, or
provision is invalid, void, or otherwise unenforceable shall in no way affect
the validity or enforceability of any other term, covenant, condition, or
provision of this Agreement.

 

19.13             Successors
and Assigns

 

All terms of this Agreement shall be binding upon, inure to the benefit
of, and be enforceable by the parties and their respective legal
representatives, successors, and assigns.

 

19.14             Confidentiality

 

Each of the parties hereto shall keep confidential all proprietary or
confidential information made available to it in connection herewith in respect
of Buyer, Seller or the Properties and all non-publicly available terms of this
Agreement or any other agreements entered into in connection herewith
(collectively, “Confidential Information”)
and not disclose any Confidential Information in any manner whatsoever to any
person, without the prior written consent of the other party hereto, except:
(i) to the parties’ directors, officers, employees, attorneys, accountants,
auditors and others providing professional services on a “need to know basis”
or (ii) to any bona fide
investor, purchaser, partner or lender of Buyer, Seller, the Properties or the
Leases or any prospective subtenant, concessionaire or other occupant of the
Properties that, in each case,  has
agreed in writing to keep confidential all such Confidential Information and
not to disclose any such Confidential Information in any manner whatsoever to
any person except in accordance with this Section (and, in the case of a
disclosure by Buyer, to a person that is not a competitor of Seller). The
obligations arising pursuant to this Section shall survive the Closing and
delivery of the Deeds for an indefinite period, except in respect of the existence
or completion of the Transaction and the basic terms thereof for which such
obligations shall survive for a period of three (3) years after Closing.  Notwithstanding the foregoing, each party
hereto may disclose Confidential Information as may be required to comply with
Canadian or U.S. securities or other regulatory requirements (e.g., filings
with the Securities and Exchange Commission), pursuant to a court order
requiring such disclosure or as otherwise may be required by law.
Notwithstanding the foregoing, either party may release one or more press
releases to the public concerning the Transaction contemplated hereunder
provided that, if such press release is not required by law, the other party
shall have approved any such press release prior to publication (said approval
not to be unreasonably withheld or delayed).

 

19.15             Drafting

 

This Agreement shall not be construed more strictly against one party
than the other because it may have been drafted by one of the parties or its
counsel, each having contributed substantially and materially to the
negotiation and drafting hereof.

 

19.16             No
Agreement Until Accepted

 

Buyer’s delivery of unexecuted copies or drafts of this Agreement is
solely for the purpose of review by the party to whom delivered and is in no
way to be construed as an offer by 

 

[***] Redacted in accordance with applicable practice with the Autorité des marchés financiers (Québec
Securities Commission)

 

 

Buyer nor in any way implies that Buyer is under any obligation to
purchase the Properties.  When this
Agreement has been executed by both Buyer and Seller, it shall constitute a
binding agreement to purchase and sell the Properties upon the terms and
conditions provided herein and Buyer and Seller agree to execute all
instruments and documents and take all actions as may be reasonably necessary
or required in order to consummate the purchase and sale of the Properties as
contemplated herein.

 

19.17             Counterparts

 

This Agreement may be executed in any number of counterparts, each of which
shall be deemed an original.  The
counterparts shall together constitute but one agreement.  Any signature on a copy of this Agreement or
any document necessary or convenient thereto transmitted electronically or sent
by facsimile shall be binding upon transmission and the electronic or facsimile
copy may be utilized for the purposes of this Agreement.

 

SIGNATURES APPEAR ON THE FOLLOWING PAGES.

 

 

[***] Redacted in accordance with applicable practice with the Autorité des marchés financiers (Québec Securities
Commission)

 

 

	
  BUYER:

  	
   

  	
  SELLER:

  
	
   

  	
   

  	
   

  
	
  RI CS 1, LLC,

  	
   

  	
  CIRCLE K STORES INC.,

  
	
  a Delaware limited liability company

  	
   

  	
  a Texas corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  REALTY INCOME CORPORATION,

  	
   

  	
   

  	
   

  
	
   

  	
  a Maryland corporation,

  	
   

  	
   

  	
   

  
	
   

  	
  its sole and managing member

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Michael R. Pheiffer

  	
   

  	
   

  	
  By:

  	
  /s/ Brian Hannasch

  
	
   

  	
  Executive Vice-President, General Counsel

  	
   

  	
   

  	
  President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
  3/15/04

  	
   

  	
   

  	
  Date:

  	
  3-12-04

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  TITLE COMPANY:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  RI CS 2, LLC,

  	
   

  	
  LANDAMERICA FINANCIAL SERVICES, INC.

  
	
  a Delaware limited liability company

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  REALTY INCOME CORPORATION,

  	
   

  	
   

  	
   

  
	
   

  	
  a Maryland corporation

  	
   

  	
   

  	
   

  
	
   

  	
  its sole and managing member

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Michael R. Pheiffer

  	
   

  	
   

  	
  By:

  	
    /s/ Jennifer A. Flynn

  
	
   

  	
  Executive Vice-President, General Counsel

  	
   

  	
   

  	
    Senior Escrow Officer

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  3/15/04

  	
   

  	
   

  	
  Date:

  	
  3-15-04

  
											

 

 

[***] Redacted in accordance with applicable practice with the Autorité des marchés financiers (Québec
Securities Commission)

 

 

	
  CRESTNET 1, LLC,

  a Delaware limited liability company 

  	
   

  
	
   

  	
   

  
	
  By:

  	
  CREST NET LEASE, INC.,

  	
   

  
	
   

  	
  a Delaware corporation 

  its sole and managing member

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Richard G. Collins

  	
   

  	
   

  
	
   

  	
  President

  	
   

  
	
   

  	
   

  
	
  Date:

  	
  03/15/2004

  	
   

  	
   

  
						

 

 

[***] Redacted in accordance with applicable practice with the Autorité des marchés financiers (Québec
Securities Commission)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}]]