Document:

Exhibit 10.7

 

EXECUTION COPY

 

FIRST AMENDMENT

 

THIS FIRST AMENDMENT, dated as of March 15,
2004 (this “Amendatory Agreement”), to the Existing Credit Agreement
referred to below is among ALIMENTATION COUCHE-TARD INC., a corporation
organized under the laws of the Province of Québec, Canada (“ACT”),
certain of its Canadian wholly-owned Subsidiaries (such capitalized term and
other capitalized terms used in this preamble and in the recitals to have the
meanings set forth in (or by reference in) Part I), as set forth on the
signature pages hereto as Canadian Borrowers, certain of its U.S. wholly-owned
Subsidiaries, as set forth on the signature pages hereto as U.S. Borrowers, the
Lenders parties hereto, and NATIONAL BANK OF CANADA, in its capacity, the
Collateral Agent, NATIONAL BANK FINANCIAL, THE BANK OF NOVA SCOTIA and CIBC
WORLD MARKETS CORP., in their capacities as the Arrangers.

 

W  I  T  N  E  S
S  E  T  H:

 

WHEREAS, ACT, the Canadian Borrowers, the
U.S. Borrowers, the Lenders, NATIONAL BANK OF CANADA, in the capacity as the
Canadian Administrative Agent and as the Collateral Agent, CANADIAN IMPERIAL
BANK OF COMMERCE, in the capacity as the U.S. Administrative Agent, NATIONAL
BANK FINANCIAL, as the Sole Lead Arranger in respect of the Canadian Term Loans
and Revolving Loans, and THE BANK OF NOVA SCOTIA and CIBC WORLD MARKETS CORP.,
as Joint Lead Arrangers and Book Runners in respect of the U.S. Term Loans, are
parties to the Credit Agreement, dated as of December 17, 2003 (as amended,
supplemented, amended and restated or otherwise modified prior to the date
hereof, the “Existing Credit Agreement”);

 

WHEREAS, ACT and the Borrowers have requested
that the Lenders amend the Existing Credit Agreement and Schedule III thereto
in certain respects as more specifically set forth herein; and

 

WHEREAS, the Lenders have agreed, subject to
the terms and conditions set forth herein, to amend the Existing Credit
Agreement as more specifically set forth herein (the Existing Credit Agreement,
as amended by this Amendatory Agreement, being referred to as the “Credit
Agreement”);

 

NOW, THEREFORE, in consideration of the
agreements herein contained, and for other valuable consideration the receipt
of which is hereby acknowledged, the parties hereto hereby agree as follows.

 

PART I

DEFINITIONS

 

SUBPART
1.1.  Certain Definitions.  The following terms (whether or not
underscored) when used in this Amendatory Agreement shall have the following
meanings (such meanings to be equally applicable to the singular and plural
forms thereof):

 

 

“Amendatory Agreement” is defined in
the preamble.

 

“Credit Agreement” is defined in the third
recital.

 

“Existing Credit Agreement” is defined
in the first recital.

 

“First Amendment Effective Date” is
defined in Part III.

 

SUBPART
1.2.  Other Definitions.  Terms for which meanings are provided in the
Existing Credit Agreement are, unless otherwise defined herein or the context
otherwise requires, used in this Amendatory Agreement with such meanings.

 

PART II

AMENDMENTS

 

Effective on the First Amendment Effective
Date, the Existing Credit Agreement is hereby amended in accordance with this
Part.

 

SUBPART
2.1.  Amendments to Article I.  Article I of the Existing Credit Agreement
is hereby amended as set forth in Subparts 2.1.1 and 2.1.2.

 

SUBPART
2.1.1.  Section 1.1 is amended by
inserting the following definitions in such Section in the appropriate
alphabetical order:

 

“First Amendment” means the First
Amendment, dated as of March 15, 2004, to this Agreement, among ACT and the
Borrowers, the Lenders parties thereto, the Collateral Agent and the Arrangers.

 

“First Amendment Effective Date” is
defined in Part III of the First Amendment.

 

“Newco SLB” means the sale lease-back
arrangement providing for the sale by certain Obligors of certain real property
to Commercial Net Lease or United Trust Fund or any of their respective
Affiliates or assignees and the subsequent lease of such real property to such
Obligors.

 

SUBPART
2.1.2.  Clause (c) of the definition of
“Permitted Sale-Leaseback” is amended in its entirety to read as follows:

 

(c)  not more than $330,000,000 (in the
aggregate) in value (as reasonably determined by an appraisal firm reasonably
satisfactory to the Arrangers (in the case of the Fortress SLB and the Newco
SLB) and an appraisal undertaken in conjunction with such transaction by Realty
Income (or its Affiliate) (in the case of the Realty Income SLB)) of properties
shall be the subject of all Permitted Sale-Leasebacks;

 

2

 

SUBPART
2.2.  Amendment to Schedule III.  Item (a) of Schedule III of the Existing
Credit Agreement is hereby amended in its entirety to read as set forth on “Schedule
III” to this Amendatory Agreement.

 

PART III

CONDITIONS TO EFFECTIVENESS

 

This Amendatory Agreement and the amendments
contained herein shall become effective on the date (the “First Amendment
Effective Date”) when each of the conditions set forth in this Part shall
have been satisfied.  The Administrative
Agents shall provide written notice to ACT of the occurrence of the First
Amendment Effective Date promptly following the occurrence thereof.

 

SUBPART
3.1.  Execution of Counterparts.  The Administrative Agents shall have
received counterparts of this Amendatory Agreement duly executed and delivered
on behalf of ACT, the Borrowers, the Required Lenders, the Collateral Agent and
the Arrangers.

 

SUBPART
3.2.  Affirmation and Consent.  The Administrative Agents shall have
received counterparts of an Affirmation and Consent, dated as of the First
Amendment Effective Date, in form and substance satisfactory to the
Administrative Agents, duly executed and delivered by each of the Obligors
other than ACT and the Borrowers.

 

SUBPART
3.3.  Legal Details, etc.  All documents executed or submitted pursuant
hereto shall be reasonably satisfactory in form and substance to the
Administrative Agents and their counsel. 
Each Administrative Agent and its counsel shall have received all
information, and such counterpart originals or such certified or other copies
of such materials, as such Administrative Agent or its counsel may reasonably
request.  All legal matters incident to
the transactions contemplated by this Amendatory Agreement shall be reasonably
satisfactory to each Administrative Agent and its counsel.

 

PART IV

MISCELLANEOUS PROVISIONS

 

SUBPART 4.1. Cross-References.  References in this Amendatory Agreement to
any Part or Subpart are, unless otherwise specified, to such Part or Subpart of
this Amendatory Agreement.

 

SUBPART
4.2.  Loan Document Pursuant to
Existing Credit Agreement.  This
Amendatory Agreement is a Loan Document executed pursuant to the Existing
Credit Agreement and shall be construed, administered and applied in accordance
with all of the terms and provisions of the Credit Agreement.

 

SUBPART
4.3.  Successors and Assigns.  This Amendatory Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns.

 

3

 

SUBPART
4.4.  Full Force and Effect; Limited
Amendment.  Except as expressly
amended hereby, all of the representations, warranties, terms, covenants,
conditions and other provisions of the Loan Documents shall remain unchanged
and shall continue to be, and shall remain, in full force and effect in accordance
with their respective terms.  The
amendments set forth herein shall be limited precisely as provided for herein
to the provisions expressly amended herein and shall not be deemed to be an
amendment to, waiver of, consent to or modification of any other term or
provision of any Loan Document referred to therein or herein or of any
transaction or further or future action on the part of any Obligor which would
require the consent of the Lenders under any of the Loan Documents.

 

SUBPART
4.5.  Governing Law.  THIS
AMENDATORY AGREEMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED
BY THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSES
SECTION 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW
YORK, AND WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES (OTHER THAN SECTION
5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK)).

 

SUBPART
4.6.  Execution in Counterparts.  This Amendatory Agreement may be executed in
any number of counterparts by the parties hereto, each of which counterparts
when so executed shall be an original, but all the counterparts shall together
constitute one and the same agreement. 
The parties hereto agree that delivery of an executed counterpart of a
signature page to this Amendatory Agreement by facsimile shall be effective as
delivery of an original executed counterpart of this Amendatory Agreement.

 

SUBPART
4.7.  Lender Consent.  By its signature below, each of the
undersigned Lenders hereby consents to the release of all Liens and Mortgages
in respect of the real property listed on Annex I hereto (to the extent that
any such property has been made subject to a Mortgage).  Each of the undersigned Lenders hereby
authorizes and directs the Collateral Agent, the Administrative Agents and the
Arrangers to take all actions and execute all documentation necessary to effect
the foregoing.  ACT and the Borrowers
represent and warrant that, after giving effect to this Amendatory Agreement
and the release of Liens and Mortgages described in this Subpart, the Secured
Parties shall have Mortgages on no less than 80% of the real property of ACT
and its Subsidiaries owned on the Effective Date (exclusive of the properties
which are identified in Item (a) and Item (b) of Schedule III
(as attached to this Amendatory Agreement) to the Credit Agreement) and such
Mortgages constitute a valid and enforceable first lien subject only to the
Permitted Liens.

 

SUBPART 4.8. 
Representations and Warranties. 
In order to induce the Lenders to execute and deliver this Amendatory
Agreement, ACT and the Borrowers hereby represent and warrant to the Lenders
that, as of the First Amendment Effective Date (both before and after giving
effect to this Amendatory Agreement), all of the statements set forth in clauses
(a) and (b) of Section 5.2.1 of the Existing Credit Agreement are true and
correct.

 

4

 

EXECUTION COPY

 

IN WITNESS WHEREOF, the parties hereto have
caused this Amendatory Agreement to be executed by their respective officers
hereunto duly authorized as of the day and year first above written.

 

	
   

  	
  ALIMENTATION COUCHE-TARD INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard
  Fortin

  	
   

  
	
   

  	
  Title:   Executive Vice-President

  
	
   

  	
   

  
	
   

  	
  Canadian
  Borrowers:

  
	
   

  	
   

  
	
   

  	
  DEPAN-ESCOMPTE COUCHE-TARD INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard
  Fortin

  	
   

  
	
   

  	
  Title:   Executive Vice-President

  
	
   

  	
   

  
	
   

  	
  COUCHE-TARD INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard
  Fortin

  	
   

  
	
   

  	
  Title:   Executive Vice-President

  
	
   

  	
   

  
	
   

  	
  MAC’S
  CONVENIENCE STORES INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard
  Fortin

  	
   

  
	
   

  	
  Title:   Executive Vice-President

  
	
   

  	
   

  
	
   

  	
  COUCHE-TARD/MAC’S L.P.

  
	
   

  	
   

  
	
   

  	
  By: 3887961
  Canada Inc., its General Partner

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Richard
  Fortin

  	
   

  
	
   

  	
   

  	
  Title:   Vice-President, Finances

  
							

 

III-1

 

	
   

  	
  U.S.
  Borrowers:

  
	
   

  	
   

  
	
   

  	
  COUCHE-TARD U.S. L.P.

  
	
   

  	
  (formerly known
  as 9103-4793 Delaware L.P.)

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard
  Fortin

  	
   

  
	
   

  	
  Title:   Authorized Signatory

  
	
   

  	
   

  
	
   

  	
  COUCHE-TARD
  FINANCING CORP.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard
  Fortin

  	
   

  
	
   

  	
  Title:   Authorized Signatory

  
	
   

  	
   

  
	
   

  	
  MAC’S
  CONVENIENCE STORES LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard
  Fortin

  	
   

  
	
   

  	
  Title:   Authorized Signatory

  
	
   

  	
   

  
	
   

  	
  CIRCLE K
  STORES INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard
  Fortin

  	
   

  
	
   

  	
  Title:   Authorized Signatory

  

 

2

 

	
   

  	
  NATIONAL
  BANK OF CANADA

  
	
   

  	
  in its
  capacity as the Collateral Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dominic
  Albanesse

  	
   

  
	
   

  	
  Title:  Vice-President

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alain
  Longpré

  	
   

  
	
   

  	
  Title:  Associate

  
	
   

  	
   

  
	
   

  	
  CIBC WORLD
  MARKETS CORP.

  
	
   

  	
  in its
  capacity as an Arranger

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/
  Doug Cornett

  	
   

  
	
   

  	
  Title:  Managing Director

  
	
   

  	
   

  
	
   

  	
  THE BANK OF
  NOVA SCOTIA

  
	
   

  	
  in its
  capacity as an Arranger

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark
  Daigneault

  	
   

  
	
   

  	
  Title:
  Director

  
	
   

  	
   

  
	
   

  	
  NATIONAL
  BANK FINANCIAL

  
	
   

  	
  in its
  capacity as an Arranger

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dominic
  Albanesse

  	
   

  
	
   

  	
  Title:
  Vice-President

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alain
  Longpré

  	
   

  
	
   

  	
  Title:
  Associate

  

 

3Exhibit
10.8

 

PURCHASE AND SALE AGREEMENT

AND ESCROW INSTRUCTIONS

 

BY AND BETWEEN

 

CIRCLE K STORES INC.,

A TEXAS CORPORATION

 

AS SELLER

 

AND

 

DBNCH 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 DBNCH 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:

  	
  DBNCH 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 DBNCF
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:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DBNCH
  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 Witness

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"}]]