Document:

Equipment Purchase Contract No

Equipment Purchase Contract No. 2006-320 

Dated as of March 15, 2006

This Equipment Purchase Contract (this "Contract") is entered into as of March 15, 2006 by and between Pacer International, Inc., a Tennessee corporation, located at One Concord Center, 2300 Clayton Road, Suite 1200, Concord, California, U.S.A. ("Buyer"), and Singamas Container Holdings Ltd., 19/F., Dah Sing Financial Centre, 108 Gloucester Road, Hong Kong ("Seller").

Buyer and Seller agree as follows:

ARTICLE 1.Contract Price: Delivery Schedule; 

	Seller covenants and agrees to manufacture, at a plant located at Qingdao, China, or at such additional plants as may be approved by Buyer (collectively the "Plant"), the steel containers described in Exhibit A (collectively, the "Equipment" and each individually, a "Unit" or "Container") in accordance with the Specification (defined below), and shall sell and deliver the Equipment to Buyer at Buyer's depots as set forth in Exhibit A ("Buyer's Depots"), or to such other locations as may be agreed to between Buyer and Seller pursuant to ARTICLE 7 (collectively, the "Authorized Delivery Locations"), in accordance with the delivery schedule set forth in Exhibit A, as the same may be modified pursuant to ARTICLE 2(d), 3(b) or 4(a) (as modified, the "Delivery Schedule"), at Seller's risk and expense as provided in this Contract, all for the consideration specified in Exhibit A.  The contract price for Units delivered during each month shall be determined by multiplying the price per Units purchased and delivered during such month (set forth in Exhibit A as the "Unit Price"), by the number of Units delivered to Buyer during said month (the aggregate price thus computed, the "Contract Price"). Time is of the essence of this Contract.

ARTICLE 2.Specification; Prototype; Interpretation: Changes

	On or before March 15, 2006, Buyer and Seller agree to jointly develop and produce design and construction specifications (the "Specification") for the manufacture of the Equipment. The Specification shall satisfy the standards of the Association of American Railroads set forth in Exhibit B hereto (the "Standards").  The Specification shall be subject to final approval in writing of both Buyer and Seller.  The terms and provisions of the Specification approved by both Buyer and Seller in writing shall be incorporated into this Contract by this reference.

	The Specification shall define the principal characteristics of the Units of Equipment, which at the time of delivery shall be suitable for commercial use in carrying freight in highway and rail transportation. The Specification shall be interpreted to accomplish this objective.

	If any discrepancy, difference or conflict exists between the provisions of ARTICLES 1 through 18 of this Contract or any Exhibit hereto and the Specification, then, to the extent of such discrepancy, difference or conflict only, the Specification shall be ineffectual and the provisions of ARTICLES l through 18 and the Exhibits hereto shall prevail; but in all other respects, the Specification shall be in full force and effect. Any question whether the Specification is in conflict with the provisions of this Contract shall be brought to the attention of Buyer who shall resolve such conflict or discrepancy and give direction in writing to Seller how to proceed, and Seller shall comply with such directions. Seller shall not depart from the requirements of the Specification without the prior written authorization by Buyer.

	Both Seller and Buyer may propose a change in the Specification for the Equipment.  Within five (5) working days after receipt of Buyer's proposal for a change, or with any proposal for a change by Seller, Seller shall prepare and submit to Buyer an estimate (the "Estimate") in such detail as Buyer may reasonably require, which shall contain (i) a description of the change, including any changes to the Specification or in the Equipment, (ii) the net increase or decrease in the Unit Price and the Contract Price, and (iii) the effect of the change on the Delivery Schedule. Buyer shall accept or reject the Estimate within five (5) working days. If the Estimate is accepted, Buyer shall prepare, and Buyer and Seller shall execute, a contract change (the "Contract Change"), which shall contain a description of the change, including any changes to the Specification or the Equipment, the effect on the Delivery Schedule and the effect on the Unit Price and the Contract Price.  If Buyer does not notify Seller of Buyer's acceptance or rejection of any Estimate, or if Buyer rejects an Estimate, this Contract and the Specification shall continue to remain in full force and effect notwithstanding the parties' failure to agree to such Estimate, and the parties' shall continue to work reasonably and in good faith (but shall not be obligated) to reach a mutually acceptable agreement with respect to such proposed changes.

ARTICLE 3. Excusable Delay; Extension of Time; Right of Cancellation

	If either Buyer or Seller is delayed in making or taking delivery of any Unit of Equipment as a result of any "Excusable Delay" (as defined in the next sentence), Buyer and Seller shall not be liable for such failure or delay and the Delivery Schedule stated in ARTICLE 1, as adjusted by Contract Changes executed by Buyer and Seller pursuant to ARTICLE 2, shall be extended in the event Seller or Buyer shall have given written notice to the other party within the time periods specified in ARTICLE 3(b) of the Excusable Delay (subject however to Buyer's cancellation rights in ARTICLE 3(c)). An "Excusable Delay" as to any party shall mean a delay in the delivery of the Equipment caused solely by the other party or by the occurrence of an event of delay beyond the control of such party which such party is unable to prevent through the exercise of due diligence, which delay is attributable to (i) acts of God (other than ordinary storms or ordinary inclement weather conditions), earthquakes, lightning or flood; (ii) explosions, fire or vandalism, provided such explosion, fire or vandalism did not result from the gross negligence of Seller; or (iii) strikes or other similar industrial disturbances (not including any strikes or industrial disturbances resulting from unilateral changes made by Seller or its affiliated companies), riots, insurrections, war, sabotage, blockages or embargoes, and epidemics. 

	Upon the occurrence of an Excusable Delay, written notice shall be given by Seller to Buyer within five (5) days after knowledge thereof has come to the attention of Seller or within five (5) days after the date on which Seller, after reasonably diligent inquiry, should have known of such Excusable Delay, whichever is the earlier date. Upon the cessation of any Excusable Delay, written notice thereof and of the anticipated effect thereof, if any, on the Delivery Schedule shall be given by Seller to Buyer within five (5) days. The failure of Seller to give the required notices within the periods specified by this ARTICLE shall constitute a waiver by Seller of its right to seek an extension of the Delivery Schedule. Buyer shall notify Seller, within five (5) days after receipt of Seller's notice, of Buyer's agreement or disagreement with Seller's claim for extension of the Delivery Schedule. If Buyer and Seller agree on the adjustment of the Delivery Schedule, Buyer shall prepare and Buyer and Seller shall execute a Contract Change reflecting such agreement.  

	In the event that any of the following events shall occur (each a "Cancellation Event"), Buyer shall have the right, in addition to any other rights it may have under the law or any other provisions of this Contract, to cancel this Contract with respect to the undelivered Units of Equipment:

	an Excusable Delay shall have occurred and such Excusable Delay shall have continued for more than one hundred twenty (120) days; or 

	Seller shall fail to complete the manufacture of any Units, including any exercised Option Equipment referred to in Article 14 and make them available for inspection by Buyer or Buyer's Inspectors pursuant to ARTICLES 6(a) and (b), at least thirty-five (35) days prior to the respective Scheduled Delivery Dates for such Units; or  

	Seller shall fail to deliver any Units to Buyer at an agreed Authorized Delivery Location pursuant to ARTICLE 7 within sixty (60) days after the respective Scheduled Delivery Dates for such Units.

	In the event of any cancellation of this Contract pursuant to ARTICLE 3(c), Buyer shall have no liability to Seller for payment of any part of the Contract Price for the Units of Equipment which have been cancelled and Seller shall have no further liability to Buyer to deliver such Units of Equipment; provided that any such cancellation shall not terminate any rights that may have accrued to Buyer under this Contract prior to cancellation.

ARTICLE 4.Prototype; Inspection and Testing

(a)Within thirty (30) days following written approval of the Specification by Buyer and Seller pursuant to ARTICLE 2(a), Seller shall manufacture one prototype Unit of Equipment conforming to the Specification, this Contract and the Standards (the "Prototype') and Seller shall perform all tests on the Prototype as required to obtain certification by Buyer's designated certification and inspection organization ("Buyer's Survey Agency") and to enable Buyer to determine insofar as is practicable whether the Unit of Prototype conforms to the Specification, this Contract and the Standards, including without limitation the tests specified in Exhibit C.  Seller shall bear the expense for inspection and testing of the Prototype.  In the event that, in the sole opinion of Buyer, the Prototype conforms to the Specification, this Contract and the Standards, Buyer shall notify Seller that the Prototype and Specification are acceptable, the Specification shall not be modified and the remaining Units shall be manufactured in accordance with the Specification, this Contract and the Standards.  In the event that, in the sole opinion of Buyer, the Prototype does not conform to the Specification, this Contract and the Standards, Buyer shall notify Seller in writing as to any deficiencies in the Specification and/or the Prototype and Seller shall, at Seller's expense, (i) in respect to any deficiencies in the Specification and the Prototype, work with Buyer to first make any necessary changes to the Specification (which changes must be agreed to by Buyer and Seller), and repair or replace the Prototype as necessary to conform to the Specification as so changed, or (ii) in respect to any deficiencies in respect to the Prototype but not the Specification, repair or replace the Prototype as necessary to conform to the Specification, this Contract and the Standards.  Following any repair or replacement of the Prototype pursuant to this ARTICLE 4(a), Seller shall perform the tests on the repaired or replaced Prototype pursuant to this ARTICLE 4(a), and Buyer shall be entitled to the same rights under this ARTICLE 4(a) in respect to the repaired or replaced prototype as the original Prototype.

(b)Within fifteen (15) days after confirmation by Buyer that the Prototype conforms to the Specification, this Contract and the Standards pursuant to ARTICLE 4(a), but in any event no later than thirty (30) days prior to commencement of production of the Equipment, Seller shall submit to Buyer four (4) copies of the final Specification for the Equipment being purchased under this Contract, consisting of the original Specification and any changes pursuant to ARTICLE 2(d) or 4(a). The final Specification shall be identified by number and dated, and shall include: the Seller's production model number, list and copies of applicable working drawings with drawing number, a general arrangement drawing of the Equipment, and a marking drawing for production. Seller shall deliver the final Specification and working drawings to Buyer not less than thirty (30) days prior to commencement of production.

ARTICLE 5. Work and Materials; Subcontracting; Production Schedule; Inspection and Tests

(a)All work performed on the Equipment shall be in accordance with good commercial practice and all material, supplies and equipment incorporated in the Equipment shall be new, suitable and of the best quality for the service intended. Seller agrees that the standards, test and quality control procedures used in the manufacture of the Equipment shall at least equal those demonstrated to Buyer during any inspection of the Plant by Buyer, or if Buyer shall not have inspected any such Plant, then at least equal to those extended or warranted by Seller to its other customers in the United States.  Seller agrees that Buyer's inspectors or agents shall be allowed access to the Plant to witness production and quality control at all reasonable times.

(b)Seller shall not subcontract its obligations under this Contract to manufacture the Equipment without the prior written approval of Buyer. In the event that Seller desires to subcontract the manufacturing obligations, Seller shall advise Buyer the name of the proposed subcontractor at least thirty (30) days in advance of any initial production and shall provide Buyer with such other information about the proposed subcontractor as Buyer may reasonably request. If a subcontractor of the Equipment is consented to under this ARTICLE, such subcontractor shall be deemed included within the term "Seller" in this Contract and Seller and such subcontractor shall be jointly and severally liable for any and all obligations of Seller and such subcontractor under this Contract, but Buyer shall not be required to respond or look to, or deal with, such subcontractor and shall be entitled to respond or look only to, and deal only with, the original Seller named in this Contract with respect to the performance and enforcement of Seller's and such subcontractor's obligations and rights under this Contract.

(c)All Equipment and all workmanship, materials, supplies and equipment incorporated therein shall be subject to inspection and tests by Buyer, Buyer's Survey Agency and other inspector (jointly "Buyer's Inspectors") at any reasonable time during manufacturing at the Plant. All Equipment, materials, supplies and equipment not conforming to the requirements of the Specification, this Contract and the Standards shall be subject to Buyer's written agreement and approval. 

ARTICLE 6.Technical Acceptance

	Subject to any permissible delay attributable to an Excusable Delay, Seller agrees to complete the manufacture of Units conforming to the Specification, this Contract and the Standards and make them available to Buyer's Inspectors for inspection at the Plant at least thirty-five (35) days prior to their respective Scheduled Delivery Dates.

	Following completion of the manufacture of each Unit at the Plant, Seller shall notify Buyer in writing of such completion and Seller shall arrange to allow Buyer's Inspectors to undertake an initial inspection of such Unit to determine whether such Unit is in conformance with the Specification, this Contract and the Standard.

	If Buyer's Inspectors shall determine that a Unit is in conformance with the Specification, this Contract and the Standards following the initial inspection at the Plant pursuant to ARTICLE 6(a), Buyer's Inspectors shall issue and deliver to Seller and Buyer a certification in the form attached hereto as Exhibit D (the "Inspection Certificate"), or otherwise confirm that in the opinion of Buyer's Inspectors, the Units of Equipment identified therein comply with the Specification, this Contract and the Standards.  If Buyer's Inspectors determine that the Equipment is not in conformance with the Specification, this Contract and the Standards, Buyer's Inspectors shall notify Buyer and Seller of their determination in writing, and shall identify any non-conformities, and Seller shall promptly repair or replace any non-conforming Units with conforming Units, which will then be subject to further inspection pursuant to ARTICLES 6(a), (b) and (c).  

	Unless otherwise agreed by Buyer in writing, the failure of a Unit of Equipment, or materials, supplies and equipment thereof, in a test shall, at Buyer's option, be considered the failure of each Unit in the same production series. Seller shall bear all costs to test, correct or replace such Units. Seller shall promptly correct or replace all rejected Equipment, and materials, supplies and equipment related thereto, such correction and replacement to be to the satisfaction of and without cost to Buyer.

	Buyer shall pay the cost of Buyer's Inspectors under this Contract, other than for the costs of tests of the Prototype pursuant to ARTICLE 4(a) and as provided in the next sentence, which costs shall be paid by Seller. If Buyer's Inspectors determine that a Unit of Equipment fails to conform to the requirements of this Contract, the costs and charges of the original tests, any additional tests and work and materials in connection with the correction and/or replacement of the Equipment shall be paid by Seller.

ARTICLE 7.Delivery of Equipment

(a)Following the manufacture of Units and technical acceptance thereof by Buyer pursuant to ARTICLE 6(c), Seller shall deliver such Units to one of Buyer's Depots at the agreed Authorized Delivery Location specified in Exhibit A (the "Authorized Delivery Location") by the Scheduled Delivery Dates specified in the Delivery Schedule (the "Delivered Units").  

(b)Following arrival of any Delivered Units at an agreed Authorized Delivery Location pursuant to ARTICLE 7(a), Buyer shall have an opportunity to re-examine such Delivered Units to determine that they still conform to the Specification, this Contract and the Standards.  If such inspection does not disclose any obvious damages to any Delivered Units, an Equipment Interchange Receipt ("EIR") shall be issued upon release of such Delivered Units from a discharging terminal to Buyer or Buyer's motor carrier or drayman at the agreed Authorized Delivery Location. Damage occurring prior to and during the lifting of any Delivered Units onto a chassis shall be Seller's responsibility.

(c)For Delivered Units which are delivered to an agreed Authorized Delivery Location in apparent good order, Buyer's agent shall issue an EIR for each Delivered Unit with the notation "Delivered in apparent good order." All Delivered Units shall be considered delivered upon the earlier of (i) the execution of the EIR by Buyer's agent, or (ii) the date payment of the Contract Price for such Units is due and payable pursuant to ARTICLE 18 below, at which time title to and risk for such Units of accepted Equipment shall pass to Buyer (or Buyer's assignee if Buyer shall have assigned its rights under this Contract in respect to such Units of Equipment).

 

(d)If, upon arrival of any Delivered Units at an agreed Authorized Delivery Location, Buyer or Buyer's Inspectors determine that any of the Delivered Units are damaged, Buyer will report such damage to Seller immediately and notify such damage to the terminal and Seller will repair or replace any damaged Delivered Units pursuant to ARTICLE 7(f). 

(e)Notwithstanding the delivery of a Delivered Unit by Seller to Buyer or issuance of an EIR for such Delivered Unit by Buyer pursuant to this ARTICLE 7, if Buyer discovers that any such  Delivered Unit was damaged or otherwise did not conform to the Specification, this Contract and the Standards at the time it was delivered by Seller and Buyer notifies Seller within thirty (30) days following such delivery, Seller shall promptly repair or replace such Delivered Unit.

(f)In respect to any Units that Seller is obligated the repair or replace pursuant to this ARTICLE 7, if the estimated cost of the repair of any Unit in the reasonable determination of Buyer is over the Damage Threshold specified in Exhibit A (the "Damage Threshold"), such Unit shall be considered non-repairable and Seller shall promptly, at Seller's expense, replace such Unit with a Unit that conforms to the Specification, this Contract and the Standards.  If the estimated cost of the repair of any such Unit in the reasonable determination of Buyer is not greater than the Damage Threshold, Seller will arrange the repair of such Unit at Seller's expense or Seller will reimburse the repair amount to Buyer if Buyer elects to have Buyer or Buyer's designated repair shop complete the repair. The repair shall be accomplished in accordance with the latest Institute of International Container Lessors ("IICL") repair guide. Buyer acknowledges that the Equipment cannot be sent back to Seller's plant in China; therefore, both parties agree to use their best efforts to settle the damage issues in the discharged locations. Seller shall be responsible to pay all costs for the repair, but such costs shall be limited to the costs of inspection, estimation, transportation (including mounting repaired Equipment on chassis and making same available for interchange to Buyer's motor carrier or drayman at a location reasonably acceptable to Buyer), and repair of, the Equipment.

(g)Subject to ARTICLE 7(h), Seller will provide up to twelve (12) calendar days of free storage after discharge of the Equipment from the ship at the destination location of Los Angeles/Long Beach, CA. The Buyer shall pay charges for all additional storage after the first twelve (12) calendar days. Buyer will pay such additional storage charges via wire transfer within three (3) days of Buyer's receipt of invoice from Seller. The additional storage charge shall be as per terminal's standard tariff. 

(h)Notwithstanding anything contained in ARTICLE 7(g), if the Authorized Delivery Location is other than Los Angeles/Long Beach, CA for the delivery of any Equipment, Buyer and Seller acknowledge that Seller may not be able to obtain twelve (12) calendar days of free storage for Equipment at such other Authorized Delivery Locations.  Accordingly, for any Equipment delivered to Authorized Delivery Locations other than Los Angeles/Long Beach, CA, Buyer and Seller agree to negotiate the number of free storage days for Equipment at such other Authorized Delivery Locations, and Buyer shall be responsible for any storage in excess of such free storage pursuant to the payment provisions of ARTICLE 7(g) above.

(i)At the end of each calendar month during which Units of Equipment have been discharged at port, Seller shall complete a report in respect to Units of Equipment delivered during such month in the form set forth in Exhibit E or in a form reasonably acceptable to Buyer, and deliver it by facsimile by the third working day of the succeeding month to Buyer at Buyer's address specified in ARTICLE 15.

ARTICLE 8. Payment of the Contract Prices

(a)Payment of the Contract Price for Units of Equipment which are purchased by Buyer under this Contract shall be made in U.S. Dollars by wire transfer of immediately available funds to an account in the United States specified by Seller. Buyer shall make such payment within eighteen (18) days following the completed discharge and Buyer's acceptance of Equipment at the marine terminal specified on Exhibit A (as evidenced by delivery of an EIR or other confirmation for such Units showing delivery in good order in accordance with this Contract), and Seller's presentation of the following documents to the Buyer for each Delivered Unit of accepted Equipment:

	Commercial Invoice;

	Bill of Lading; and

	Inspection Certificate issued by Buyer's Inspector. 

(b)In the event that Buyer fails to make payment within the eighteen (18) day deadline set forth in ARTICLE 8(a) above (the "Payment Deadline") in respect to any Containers, the Buyer originally named in this Contract (i.e., Pacer International, Inc.) shall be obligated to pay to Seller an additional amount equal to the Late Payment Obligation set forth in Exhibit A for each calendar day beyond the Payment Deadline that payment in respect to any such Containers is not paid.

ARTICLE 9.Custom's Charges, Taxes, Delivery Costs, and Transportation Mitigation Fees

Unless otherwise expressly agreed by Buyer, Seller shall pay all fees, taxes and delivery charges (including sales, value added, income (including U. S. income taxes, gross receipts and similar taxes) payable in connection with the manufacture, transportation, exportation, importation, delivery and sale of the Equipment including those imposed or assessed by or in the countries (including states or provinces and other local taxing authorities) of origin, manufacture, sale and delivery, except that Buyer shall pay any charges for the costs, if applicable, of customs clearance, and duties to the United States of America and sales taxes imposed by the United States and any state or local taxing authority in the United States. Seller shall be responsible for the Transportation Mitigation Fee (TMF)/Pier Pass Fee, when applicable on empty containers discharged in Los Angeles/Long Beach, CA . Seller shall be responsible to pay all taxes imposed in manufacturing country and delivery costs.

ARTICLE 10.Warranty

(a)Work and Material

(i)Seller warrants and represents that the Equipment will be free from defects in material and workmanship. If at any time from delivery of the Equipment to and acceptance thereof by Buyer to the expiration of five (5) years after delivery and Buyer's acceptance, any weakness, deficiency, defect, or breaking down (other than repairs necessitated solely as a result of ordinary wear and tear), of the Equipment sold to Buyer under this Contract (an "Equipment Defect") other than (i) that caused by the negligence or other improper act of anyone other than Seller or Seller's subcontractor, or (ii) as specified in ARTICLE 10(a)(ii), shall be discovered and reported by Buyer (or by an independent surveyor as provided ARTICLE 10(b)(ii) below), such Equipment Defect shall be corrected by Seller to the satisfaction of Buyer in accordance with the procedure described in ARTICLE 10(b).

(ii)Seller also warrants and represents that the paint and finish on the Equipment and on the components thereof will be free from coating failures or other defects which result in rust, corrosion, peeling paint or non-adhesion of paint or other coating materials to the surface of the Equipment (collectively, a "Paint Defect"). If at any time from and after delivery of the Equipment to Buyer to the expiration of five (5) years after delivery, any Paint Defect in the Equipment sold to Buyer under this Contract, other than that caused by the negligence or other improper act of anyone other than Seller or Seller's subcontractors, shall be discovered and reported by Buyer (or by an independent surveyor as provided in ARTICLE 10(b)(ii)), such Paint Defect shall be corrected by Seller to the satisfaction of Buyer in accordance with the procedures described in ARTICLE 10(b), provided that the foregoing shall not apply to repairs necessitated solely as a result of ordinary wear and tear.

(b)Within fifteen (15) days after receipt of written notice from Buyer of a claim for an Equipment Defect or a Paint Defect (collectively, a "Warranty Defect"), Seller shall either:

(i)arrange for repairs or replacement of the Warranty Defect directly, using Seller's own employees or contractors. Seller shall notify Buyer within such fifteen (15) days period of the arrangement made, and such repairs or replacement shall commence promptly and be concluded promptly; or

(ii)notify Buyer that Seller disputes the claim of a Warranty Defect. If a dispute about a Warranty Defect is not resolved within ten (10) days after delivery of such notice, Seller shall request Buyer to cause a survey of the Equipment to be conducted by, at Buyer's option, Bureau Veritas, American Bureau of Shipping, Lloyd's Registry or other recognized authority reasonably acceptable to the parties, whose decision as to the validity of the claim of Warranty Defect shall be binding. If the claim is found to be a Warranty Defect, Seller shall pay for the cost of the survey and shall arrange for repairs or replacement in accordance with ARTICLE 10(b)(i) within five (5) days of the issuance of such decision. If the claim is found not to be a Warranty Defect, Buyer shall pay the cost of survey.

(c)In the event Seller fails to take action as described in ARTICLE 10(b)(i) or (ii) within the time specified, Buyer, may, but shall not be required to, obtain estimates from independent repair contractors as to the cost of repairing the Warranty Defects and restoring the Equipment to conform to the requirements of this Contract, as well as estimates of those costs set forth in ARTICLE 10(d) below. If Buyer elects to obtain such estimates, Buyer shall submit each estimate to Seller within a reasonable time after receipt by Buyer. Such estimates shall conclusively determine the costs incurred by Buyer in connection with such Warranty Defects, and Seller shall pay the amount thereof to Buyer within thirty (30) days after receipt of each estimate by Seller. Buyer, at Buyer's option, may use such money to reimburse Buyer for the cost of performing the work itself or may contract with a third party to have the work performed.

(d)In addition to the direct costs of repair described in ARTICLE 10(b), Seller shall also pay and /or reimburse Buyer for all costs incurred by Buyer relating to repair of such Warranty Defects, including but not limited to, transportation, mounting on and dismounting from chassis, inspection and re-inspection, and costs of materials and labor.

(e)Neither the inspection or testing as provided in ARTICLE 5, nor technical acceptance or final acceptance of the Equipment as described in ARTICLE 6, nor the issuance of an Inspection Certificate or an EIR, as described in ARTICLE 6 or 7, nor approval of Seller's designs and the Specification for the Equipment by Buyer nor any other course of conduct by Buyer shall be deemed to diminish, waive or modify any of Buyer's rights or remedies under this ARTICLE 10.

ARTICLE 11.Patent, Copyright, Trademarks and Trade Secret Warranty; Infringement

Seller warrants that the Equipment will not infringe the patent, copyright, trademark and trade secret rights of any third party. Seller shall defend, indemnify and save harmless Buyer and its affiliates, agents, contractors, servants or employees from and against all loss, cost, liability and claims, plus attorneys' fees, resulting from any claim that the Equipment, or any material used in the construction of the Equipment or incorporated in the Equipment by Seller, infringes any United States or foreign patent, copyright, trademark or trade secret rights. If the Equipment or any material incorporated in the Equipment by Seller shall be held by a court having jurisdiction to constitute such an infringement and the use thereof shall be enjoined, Seller shall procure for Buyer at Seller's expense (i) the right to continue using the Equipment with any such infringement, (ii) replace infringing material with non-infringing material having equal or better utility, function and value, or (iii) modify the Equipment so it becomes non-infringing, as may be required to eliminate all problems of infringement while maintaining the same or better utility, function or value.  Prompt written notice of the assertion of any claim or the bringing of any suit shall be given by Buyer to Seller, and thirty (30) days shall be given to Seller from giving of such notice to settle or defend it as Seller may see fit provided Seller provides Buyer with an acceptable indemnity in Buyer's discretion. Buyer shall provide every reasonable assistance in settling or defending such claim or suit. If, at the end of thirty (30) days, Seller fails to effect such settlement or defense, Buyer may undertake settlement or defense as it sees fit, with full reimbursement for damages, costs and attorneys' fees as herein provided.

ARTICLE 12.Seller's Default

(a)Each of the following shall constitute an act of default by Seller under this Contract (a "Seller Default"):

(i)The failure of Seller to manufacture the Equipment with such diligence and in such manner as required by this Contract and as will enable it to complete the delivery of the Units in accordance with the Delivery Schedule, except and to the extent that such failure is due to one or more Excusable Delays, which default continues un-remedied for a period of thirty (30) days after written notice to Seller thereof;

(ii)If due to the failure of Seller to perform its obligations hereunder the Units of Equipment scheduled for delivery in any month in the Delivery Schedule have not been delivered within sixty (60) days after the end of the month;

(iii)Seller fails to repair or replace a Warranty Defect as provided in ARTICLE 10;

(iv)Any other material default by Seller to perform or satisfy its obligations and conditions under this Contract, which default continues un-remedied for a period of thirty (30) days after written notice to Seller thereof;

(v)Any breach of any warranty by Seller; or

(vi)Seller is dissolved or makes a general assignment for the benefit of its creditors; a receiver or custodian of any kind whatsoever is appointed, whether or not appointed in bankruptcy, common law or equity proceedings, whether temporary or permanent, for a substantial portion of the property of Seller; Seller files a petition for relief under any chapter of the U.S. Bankruptcy Code or similar law; a petition for relief is filed against Seller and such petition is not dismissed by the court within sixty (60) days after the date on which such petition was filed; the admission by Seller in writing of its inability to pay debts generally as they become due; the failure of Seller generally to pay its debts as they become due; or if Seller fails to assume this Contract within thirty (30) days after the filing of a petition by or against Seller under the U.S. Bankruptcy Code or similar law.

(b)Right to Terminate

In the event that a Seller Default shall occur, at Buyer's option, Buyer may elect to cancel this Contract.  

(c)Alternative Remedies

The rights conferred upon Buyer under the terms of this ARTICLE 12 shall not be exclusive of any other remedies in law or equity, which might be otherwise available to Buyer (including all rights and remedies of Buyer under the Uniform Commercial Code) upon the happening of a Seller Default. The failure of Buyer to exercise any of the rights conferred upon it in this ARTICLE 12 with respect to a Seller Default shall not constitute a waiver of any rights of Buyer with respect to any other Seller Default under this Contract.

ARTICLE 13.Buyer's Default; Actions by Seller upon Buyer Default

(a)Buyer Default

The following shall constitute an act of default by Buyer under this Contract (a "Buyer Default"): Failure by Buyer to make any proper payment to Seller required under the provisions of this Contract which failure continues unremedied for a period of thirty (30) days after written notice to Buyer thereof.

(b)Rights to Stop Work and to Terminate

In the event that a Buyer Default shall have occurred and be continuing, Seller, if it is not in default in the performance of any of its obligations under this Contract, (i) shall have, upon prior written notice to Buyer, the right to slow or to stop production of Units, and the Delivery Schedule as provided in ARTICLE 1 shall, without prejudice to Seller's right to recover damages therefor, be extended by additional time equal to the period of the continuance of such Buyer Default, and (ii) if such Buyer Default shall continue for more than thirty (30) days after written notice thereof by Seller to Buyer, Seller may, without prejudice to its rights to recover damages therefor from Buyer, terminate this Contract as to the undelivered Units of Equipment by written notice to Buyer.

(c)Alternative Remedies

The right conferred upon Seller under the terms of this ARTICLE 13 shall not be exclusive of any other remedies in law or equity, which might be otherwise available to Seller upon the happening of a Buyer Default. The failure of Seller to exercise any of the rights conferred upon it in this ARTICLE with respect to a Buyer Default shall not constitute a waiver of any right of Seller with respect to any other Buyer Default under this Contract.

ARTICLE 14.Option to Purchase Additional Equipment

(a)Seller grants to Buyer options to purchase additional Units of Equipment specified in Exhibit F (the "Option Equipment") under the following terms and conditions:

(i)Buyer may exercise the options in whole or in part from time to time on or before the dates specified in Exhibit F by delivering to Seller written notice specifying the number of units for which the option is being exercised and the required delivery date of the Option Equipment ordered.  Seller shall immediately confirm its acceptance of the Option Equipment order and commit to using its best efforts to manufacture and deliver such units in accordance with the Option Equipment order.  In the event the Seller cannot accept the Option Equipment order for whatever reason, the Buyer shall have the right to rigidly enforce the delivery time requirement in Exhibit A of this agreement AND eliminate any grace period allowed for such delivery time from any subsequent penalty calculations.

(ii)The Unit Price of the Option Equipment is specified in Exhibit F (the "Option Unit Price") and the aggregate price of any option exercised by Buyer shall be computed by multiplying the number of Units on which the option has been exercised by the Option Unit Price (in the aggregate for any option, the "Option Contract Price").

(iii)The Option Equipment shall be delivered by Seller to Buyer on the dates specified in Exhibit F, as such dates maybe adjusted as provided in ARTICLE 2 and ARTICLE 3 (the "Option Delivery Schedule").

(b)In the event that Buyer shall exercise one or more options as provided in ARTICLE 14(a), all of the terms and conditions of this Contract shall apply with respect to the Option Equipment except as modified by this ARTICLE 14 and except that where the term "Equipment" is used it shall refer to the "Option Equipment", where the term "Delivery Schedule" is used, it shall refer to the "Option Delivery Schedule"; where the term "Unit Price" is used, it shall refer to the "Option Unit Price"; and where the term "Contract Price" is used, it shall refer to the "Option Contract Price".  Any changes in the Specification for the Option Equipment shall be set forth in a Contract Change issued under ARTICLE 2 executed by "Buyer's Authorized Representative" specified in ARTICLE 15 below.

ARTICLE 15.Notices

Until Seller shall designate otherwise in writing to Buyer, all notices under this Contract directed to Seller shall be in writing and shall be (i) personally delivered to Seller or (ii) mailed by first class certified mail, return receipt requested, postage prepaid, or delivered by facsimile, with confirmation of receipt requested, to the following address:

Singamas Container Holdings Ltd.

19/F., Dah Sing Financial Centre

108 Gloucester Road, Hong Kong

Attn: Andy Chan -- Director

Until Buyer shall hereafter designate otherwise in writing to Seller, all notices under this Contact directed to Buyer shall be in writing and shall be (i) personally delivered to Buyer's VP, Controller ("Buyer's Authorized Representative") at the address specified below or (ii) mailed by first class certified mail, return receipt requested, postage prepaid, or delivered by facsimile, with confirmation of receipt requested, to the following address:

Pacer Stacktrain

Attn: VP, Controller

One Concord Center

2300 Clayton Road, Suite 1200

Concord, California 94520

Facsimile Number: 925-887-1501

with a copy to:

Pacer International, Inc.

Attn: Legal Department

One Independent Drive, Suite 1250

Jacksonville, FL 32203

Facsimile Number: 904-485-1019

All notices given pursuant to this ARTICLE shall be deemed to have been received on the date of delivery if delivered in person, upon acknowledgment thereof if delivered by facsimile, telex, or telecopy or on the fifth day after the date of mailing by U.S. registered mail, return receipt requested if mailed and the sender has received the return receipt with notation thereon of delivery.

ARTICLE 16.Assignment

(a)This Contract shall not be assigned by either party without the written consent of the other party, which consent shall not be withheld unreasonably except that Buyer may, without the consent of Seller, assign this Contract to (i) any affiliate of Buyer or (ii) one or more financial institutions that provide or arrange for the financing of the Equipment for the benefit of Buyer or an affiliate of Buyer, whether structured as a secured loan, finance lease or lease purchase; provided that in the case of any such assignment Buyer shall remain bound and liable to Seller for Buyer's obligations under this Contract.  Seller will upon request of Buyer cooperate in effecting any assignment authorized pursuant to this ARTICLE 16 and will execute any agreements or other instruments (including, without limitation, any supplement or amendment to or novation of this Contract) that may be required in order to give effect to or perfect any such assignment.

(b)Notwithstanding any assignment by Buyer to a financial institution pursuant to clause (ii) of paragraph (a) of this ARTICLE 16, the Buyer originally named in this Contract (i.e., Pacer International, Inc.), and not any such financial institution, shall remain solely responsible for any Late Payment Obligation under ARTICLE 8 above.

 

ARTICLE 17.Governing Law

The validity, interpretation and performance of this Agreement shall be determined in accordance with the laws of the State of California, USA, without application of its conflicts of laws principles.

Buyer and Seller have caused this Contract to be executed in two counterparts as of the date and year first above written.

 

 

	

Pacer International, Inc.

As Buyer
	 	

Singamas Container Holdings Ltd.

As Seller

	 	 	 
	 	 	 
	

/s/ Lawrence C. Yarberry 
	 	

/s/ Andy Chan 

	

By:  Lawrence C. Yarberry
	 	

By:  Andy Chan

	

Title: Chief Financial Officer
	 	

Title: Marketing Director

	 	 	 
	

Date: March 20, 2006
	 	

Date: March 15, 2006SALES AGREEMENT AND JOINT ESCROW INSTRUCTIONS

SALES AGREEMENT AND

JOINT ESCROW INSTRUCTIONS

 

BETWEEN

 

Larry L Thomsen and Susan Thomsen 

("Seller")

and

Land Strategies, LLC,

 

("Buyer")

 

Dated: January 24, 2006

Purchase and Sales Agreement

THIS SALES AGREEMENT AND JOINT ESCROW INSTRUCTIONS (this "Agreement") is made as of January 24, 2006, by and between Larry L Thomsen and Susan Thomsen, (hereinafter "Seller") and Land Strategies, LLC, or assigns ("Buyer"). This Agreement constitutes an Agreement between Buyer and Seller with respect to the transactions contemplated hereby.

WITNESSETH:

For and in consideration of the mutual covenants and conditions herein contained, Seller and Buyer agree as follows:

1. Property. Subject to the terms and conditions hereof, Seller agrees to sell and convey, and Buyer agrees to purchase and pay for the following, all of which is collectively referred to in this Agreement as the "Property":

a.Real Property. That certain real property consisting of approximately .482  acres, Washoe County Nevada Assessor's Parcel Numbers 032-111-02, and 032-111-01, more particularly described in the attached Exhibit A which is incorporated herein by reference (the "Real Property"), a portion of which Real Property is presently improved with 2 motels commonly known as the "Mt. Rose Crest Motels," (the "Motels"), each with a mailing address of 2001 Victorian Avenue, Sparks, Nevada 89431.

b.Appurtenances. To the extent owned by Seller, all appurtenances to the Real Property, including all minerals, oil, gas and other hydrocarbon substances on and under such Real Property, as well as all development rights, air rights, water, water rights, water agreements and water stock relating to such Real Property, and any other easements, rights of way or appurtenance used in connection with the beneficial use and enjoyment thereof.

c.Personal Property. All improvements, fixtures and personal property located on the Real Property and/or used in connection with the ownership or operation of the Hotel and located on the Real Property, including without limitation, the personal property described on Exhibit B attached hereto and incorporated herein by reference.

2. Purchase Price. The total purchase price of the Property shall be One Million, Three Hundred Thousand Dollars ($1,300,000) ("Purchase Price") payable in cash at Closing (as hereinafter defined). At the conclusion of the Due Diligence Period, the Deposit (as hereinafter defined) shall be applied to payment of the Purchase Price. The allocation of the Purchase Price among the Property shall be in accordance with the provisions of Section 1060 of the Internal Revenue Code, as amended, and the regulations promulgated thereunder, and the parties shall use commercially reasonable efforts to agree upon such allocations used by them in reporting the transactions contemplated by this Agreement for federal and state tax purposes.

3. Deposit. Concurrently herewith, Buyer shall deliver to Escrow Agent Charise Roberts at First American Title, Kietzke Lane, Reno, NV, a deposit (together with any interest which

accrues thereon, the "Deposit") in the amount of Fifty Thousand Dollars ($50,000.00) in cash, certified check or cashier's check, or other immediately available funds. All interest which accrues on the Initial Deposit shall be credited to Buyer's account. Until the expiration of the Due Diligence Period, the Initial Deposit shall remain immediately refundable to Buyer if this Agreement is terminated for any reason.

4. Due Diligence Period. For a period of forty five (45) days following the Effective Date ("Due Diligence Period"), Buyer shall be entitled to inspect the Property, to conduct such tests, surveys, analyses and feasibility studies of the Property as Buyer deems reasonably necessary, and to meet with governmental entities and other third parties regarding the Property. Buyer (and persons or entities authorized by Buyer) shall, subject to two (2) business days prior written notice to Seller and at times which will not unreasonably disturb Seller's business operations at the Motels, have the right and authority to go upon the Property, for inspection and investigations including, without limitation (a) determining the adequacy, cost and availability of utilities, water service, access, zoning and other restrictions on the use of the Property and (b) performing surveys, environmental and engineering studies and such other studies or investigations as Buyer desires. Buyer shall promptly repair and restore the Property to its original condition existing prior to entry or inspection by Buyer. Prior to commencing any invasive test or investigation, including without limitation soil, water or other sampling, testing or analysis, drilling, boring, Buyer shall notify Seller in writing of the scope and nature of the intended testing or investigation and shall obtain Seller's prior written consent thereto which consent may be given or withheld in Seller's reasonable discretion. Notwithstanding anything to the contrary herein, Buyer's duty of restoration, repair and indemnification under this Section 4 shall survive any termination of this Agreement or the transfer of title as provided herein. Seller agrees to reasonably cooperate with Buyer in connection with the tests, investigation and inspection of the Property. Buyer shall indemnify, hold harmless and defend Seller and Seller's, affiliates, shareholders, agents, employees and officers from any and all liability, loss, cost, damage or expense (including without limitation, attorney's fees), of whatsoever nature relating to or in connection with any injury to persons or damage to property, where such injury or damage arises from or relates to the entry upon, occupation, use or inspection of the Property by Buyer, its agents, officers or employees; provided, however, Buyer's foregoing obligations shall not include any obligation or duty whatsoever with respect to claims (including claims that the Property has declined in value) arising out of, resulting from or incurred in connection with (a) the discovery or presence of any hazardous materials except to the extent such presence was caused by Buyer or its agents or (b) the results or findings of any tests or analyses of Buyer's environmental or other investigation of the Property.

Buyer agrees to provide Seller, upon receipt, copies of all reports, investigations, studies, plans, surveys, appraisals and all of the materials or information it may obtain from its investigation of the Property; provided, however, any such materials delivered to Seller by Buyer shall be (i) without any representation or warranty of any kind by Buyer and (ii) subject to the rights of the parties preparing same. Additionally, Buyer, its agents, contractors, consultants, employees or invitees, shall treat all material and information regarding the Property obtained or derived from Seller or its investigation of the Property ("Confidential Information") as confidential and shall not disclose any Confidential Information prior to obtaining Seller's written consent. Notwithstanding the foregoing, Buyer may disclose such information (i) on a need-to-know basis to its employees or members of professional firms serving it in connection

with this transaction (so long as Buyer instructs such parties to keep the information confidential pursuant to the terms of this section), (ii) as any court or other governmental agency may require in order to comply with applicable laws or regulations, (iii) if such information became generally available to the public other than as a result of an unauthorized disclosure by Buyer, (iv) if such information were known to Buyer or its representatives on a non-confidential basis prior to their disclosure to Buyer by Seller or its representatives or (v) if such information became available to Buyer or its representatives on a non-confidential basis from a source other than Seller, which was not known by Buyer to be prohibited from disclosing the same. In the event Buyer or its agents, contractors, consultants, employees or invitees are required by law to disclose any Confidential Information regarding the Property, as promptly as possible, Buyer shall (1) notify Seller in writing of the specific Confidential Information required to be disclosed, the specific law or laws requiring disclosure, and the persons, entities or agencies to whom disclosure is required and (2) reasonably cooperate with Seller's efforts to prevent disclosure of such Confidential Information.

To the extent the following are in the possession or control of Seller as of the date of this Agreement, Seller shall promptly provide Buyer copies of the following (collectively, the "Documents and Materials"): (i) leases, contracts, licenses, permits and agreements affecting the Property, including without limitation any and all agreements affecting the Real Property relating to the provision of water to the Real Property, (ii) income and expense reports for the prior two (2) years including tax and utility expenses and bills, (iii) any repair bill exceeding Ten Thousand Dollars ($10,000.00) incurred since November 5, 1999, (iv) material warranties benefiting the Property, if any, (v) documentation concerning any Hazardous Materials (as defined below) and (vi) plans, specifications, engineering reports and soils reports. In addition to the foregoing, Seller shall also make available to Buyer for Buyer's review and inspection at the Property, the office of Seller or Seller's counsel or such other place as Seller may designate, any other information in Seller's possession or control relating to the ownership, use and/or operation of the Property; any such information made available to Buyer shall (a) be deemed to constitute part of the Documents and Materials and (b) be subject to the terms and restrictions set forth in this Agreement relative to such Documents and Materials.

If Buyer determines, in its sole and absolute discretion, that the Property is not suitable for any reason, Buyer shall notify Seller and Escrow Agent in writing within one (1) business day following Buyer's decision not to proceed with the acquisition of the Property (but in no event later than the expiration of the Due Diligence Period) and upon such notice this Agreement shall terminate, and provided that Buyer has satisfied any other obligations arising in favor of the Property or Seller (including without limitation Buyer's obligation to restore or repair the Property following any investigation and testing conducted under this Section 4 and/or return any confidential information received in connection with the conduct of Buyer's due diligence and investigations), Escrow Agent shall return the Initial Deposit to Buyer within seven (7) days of receipt of such notice, and, except as otherwise expressly provided herein, neither Buyer nor Seller shall have any further obligations hereunder. Should Buyer fail to give such notice on or before the expiration of the Due Diligence Period, or if Buyer notifies Seller that the Property is suitable, Buyer's right to object pursuant to this Section 4 shall be waived and of no further force or effect, and Deposit shall be deemed fully-earned by Seller and shall be non-refundable to Buyer, subject to the terms and conditions of this Agreement. Only in the event the Close of Escrow does not thereafter occur because of Seller's default, the failure of a condition precedent 

to Buyer's obligation to close over or with respect to which Buyer has or had no control, the Deposit shall be returned to Buyer. Upon the Close of Escrow, the Deposit shall be credited toward payment of the Purchase Price. Escrow Agent shall at all times cause the Deposit (or such portion thereof as Escrow Agent may then hold) to be invested in a federally-insured, interest-bearing account for the benefit of Buyer.

5. Risk of Loss. If Buyer finds the Property suitable and elects to purchase the Property, and all or any portion of the Property is damaged or destroyed by fire or other casualty, then Seller shall give Buyer prompt notice thereof. In the event the cost of replacement or repair is less than Fifty Thousand Dollars ($50,000.00) (the "Threshold Amount"), Seller shall repair such damage prior to the Closing. In the event the cost of replacement or repair is in excess of the Threshold Amount or if, in Buyer's reasonable estimation, such replacement or repair would take longer than one (1) month to complete, then Buyer may elect to either (a) receive an adjustment to the Purchase Price in an amount equal to the cost of replacement or repair as determined by a mutually agreeable third-party or (b) terminate this Agreement, in which event the Deposit shall be immediately returned to Buyer. In the event Buyer elects to receive an adjustment to the Purchase Price, Seller shall be under no obligation to repair any such damage Property prior to the Closing. Buyer shall bear the risk of loss from and after the Closing Date.

6. Water Rights.  Seller shall quitclaim and convey to Buyer, at no additional cost to Buyer or increase to the Purchase Price, any and all water rights, if any, which Seller has which are appurtenant to the Property.

7. Title Report.

a.Title Report.   Within five (5) days from the Effective Date, Seller shall cause Escrow Agent to deliver to Buyer a preliminary title report prepared by Escrow Agent covering the Property, together with copies of all recorded documents referred to in such preliminary title report (the preliminary title report and such documents are referred to collectively as "Title Report")

b.Review of Title Documents. Buyer shall have fifteen (15) days from Buyer's receipt of the Title Documents in which to examine the Title Documents and to specify to Seller those items reflected therein which Buyer will accept as permitted exceptions to title ("Permitted Exceptions"), and those items which Buyer reasonably finds objectionable and for which Escrow Agent is unwilling to provide a reasonable endorsement for ("Title Objections"). If Buyer does not deliver to Seller a written notice ("Buyer's Title Objection Notice") specifying those items which are Permitted Exceptions and those items which are Title Objections within the above-stated fifteen (15) day period, then all of the items reflected on the Title Report shall be considered to be Permitted Exceptions. Buyer and Seller hereby agree that (i) all non-delinquent property taxes and assessments and (ii) all matters created by or on behalf of Buyer, including without limitation, any documents or instruments to be recorded as part of any financing for the acquisition of the Property by Buyer,  shall constitute "Permitted Exceptions" hereunder.

c.Seller's Title Response. Seller shall have ten (10) business days following receipt of Buyer's Title Objection Notice to determine whether Seller is prepared to

remove or otherwise cure some or all of the Title Objections described in Buyer's Title Objection Notice in the manner set forth in Buyer's Title Objection Notice or cause Escrow Agent to cure such Title Objections through the issuance at Closing of an appropriate endorsement. If Seller delivers written notice to Buyer on or before the expiration of such ten (10) business day period agreeing to cure, or cause the cure of, all Title Objections in the manner required by Buyer ("Seller's Title Response"), then the parties shall proceed to the Closing and Seller shall be obligated to undertake the actions described in Seller's Title Response and Seller's failure to do so constitute a default by Seller. If Seller does not timely deliver Seller's Title Response, or if Seller does not agree in Seller's Title Response to cure all Title Objections in the manner required in Buyer's Title Objection Notice, then Buyer shall have ten (10) Business Days following the earlier to occur of receipt of Seller's Title Response rejecting full compliance with Buyer's Title Objection Notice or the expiration of ten (10) Business Days following delivery of Buyer's Title Objection Notice to elect by delivering written notice thereof to Seller whether Buyer shall waive its objection to those Title Objections which Seller did not affirmatively agree to cure in the manner required by Buyer. Any such Title Objections subsequently waived by Buyer shall be deemed Permitted Exceptions. If Buyer does not affirmatively waive in writing all of such Title Objections which Seller has declined or been deemed to have declined to cure as required in Buyer's Title Objection Notice within such ten (10) Business Day period, this condition precedent shall be deemed to have failed and, subject to the other terms and conditions of this Agreement, the Deposit shall be returned to Buyer, this Agreement shall thereupon terminate and except as otherwise provided herein, neither party shall have any further obligations hereunder. If Buyer's Title Objection Notice has been timely delivered, and the Closing Date would otherwise occur prior to the delivery of Seller's Title Response and/or the expiration of the time period within which Buyer has to waive Title Objections, the Closing Date shall be extended so that it occurs two (2) Business Days following receipt of Seller's Title Response (if Seller agrees therein to cure all Title Objections) or the time period in which Buyer has to waive its disapproval of Title Documents, as applicable. By the Closing Date, the Title Company shall have issued or shall have irrevocably committed to issue the Owner's Title Policy to Buyer. Upon the Close of Escrow, Seller shall deliver exclusive possession of the Property to Buyer subject only to the Permitted Exceptions.

8. Warranties and Representations.

a.Seller's Warranties and Representations.

(i)Seller hereby represents and warrants to Buyer as follows:

(1)Authority. Seller has full power and authority to consummate this transaction. This Agreement and all other documents delivered by Seller to Buyer in connection with this transaction that have been executed by Seller have been, or shall be duly authorized, executed and delivered by Seller, and are the legal, valid and binding obligations of Seller, enforceable in accordance with their respective terms (except to the extent that such enforcement may be limited by applicable bankruptcy or other laws or principles relating to the limitation of rights of contracting parties generally).

(2)The Seller is not a foreign person within the meaning of Section 1445 (f)3 of the Internal Revenue Code of 1986, as amended.

(3)Seller acquired the Property on or about May, 1995.

(4) Since May, 1995, Seller has not received any written notification of any pending condemnation or eminent domain proceedings from any Governmental Authority affecting the Real Property.

(5)There are fewer than 100 employees of the Motels and as a result thereof the provisions of the WARN Act and the State WARN Act do not apply to the transactions contemplated under this Agreement.

(6)There is no litigation instituted and served that would affect the Property and, to Seller's knowledge, since May, 1995, Seller has not received written notice of any proposed or threatened litigation that would adversely affect the Property.

(7)Since May, 1995, Seller has not received any written notice from any of its present insurance carriers of any defects or inadequacies in the Motels which if left uncured or uncorrected could result in termination of Seller's existing insurance coverage with respect to its Motels.

(8)Since May, 1995, Seller has received no written notice (including any written request for information, demand letter, administrative inquiry, complaint or claim) from any Governmental Authority of any actual or potential violation of or failure to comply with any Environmental Requirements with respect to the Motel Properties which has not been corrected to the satisfaction of such Governmental Authority, or of any actual or threatened obligation to undertake or bear the cost of any clean-up, removal, containment or other remediation under any Environmental Requirements with respect to the Property which has not been performed to the satisfaction of such Governmental Authority. To Seller's knowledge, since May, 1995, there has been no release or threat of release of Hazardous Materials at or from, or affecting, the Property or any portion thereof in violation of applicable law.

(9)To Seller's knowledge, the Documents and Materials (i) constitute all material agreements or documents in Seller's possession or control which are material to its use, ownership and operation of the Property and (ii) are true and correct in all material respects.

For all purposes under this Agreement, "to Seller's knowledge" or any phrase of like meaning shall be deemed to mean only the present actual knowledge of Larry L Thomsen and Susan Thomsen without having conducted a reasonable investigation or inquiry with respect to the matters referred to in this Agreement. As used herein the "Warn Act" shall mean and refer to the Federal Worker Adjustment and Retraining Notification Act of 1988, 29 USC section 2101 et seq. and "State WARN Act" shall mean and refer to any statute of the State of Nevada which is similar in subject matter to the WARN Act.

b.Buyer's Warranties and Representations. Buyer hereby represents and warrants to Seller as follows:

(i)Authority. Buyer is a limited liability company duly organized and validly existing under the laws of the State of Nevada and is, or as of the Closing will be,

qualified to do business in the State of Nevada, and has full power and authority to consummate this transaction. This Agreement and all other documents delivered by Buyer to Seller in connection with this transaction that have been executed by Buyer have been, or shall be duly authorized, executed and delivered by Buyer, and are the legal, valid and binding obligations of Buyer, enforceable in accordance with their respective terms (except to the extent that such enforcement may be limited by applicable bankruptcy or other laws or principles relating to the limitation of rights of contracting parties generally.)

c.Survival of Warranties. The representations and warranties contained in this Section 8 shall survive the Closing date for a period of one (1) year and shall not merge with the delivery to Buyer of the Deed.

9.Condition of Property. Buyer agrees that it is purchasing the Property "As-Is" and "With All Faults", with no warranties by Seller of any kind, express or implied, with respect to the Property or the condition thereof. By closing this transaction, Buyer hereby (a) releases Seller from all damages, claims, liabilities and obligations, whether known or unknown, arising from or related to the Property or the condition thereof, including without limitation the physical condition of the Property, the presence or absence of Hazardous Materials in, on, under or affecting the Property and the compliance of the Property with laws, ordinances, rules or regulations and (b) assumes all damages, claims, liabilities and obligations arising from or related to the presence or absence of Hazardous Materials in, on, under or affecting the Property and the compliance of the Property with laws, ordinances, rules and regulations relating to the condition thereof. For purposes hereof, "Hazardous Materials" shall mean any pollutant, toxic substance, hazardous waste, hazardous material, hazardous substance, oil or other petroleum related product as defined in or regulated pursuant to the Resource Conservation and Recovery Act, as amended, the Comprehensive Environmental Response, Compensation and Liability Act, as amended, the Federal Clean Water Act, or any other federal, state, or local environmental law, regulation, including ordinance, rule, or bylaw relating directly or indirectly to hazardous substances, pollutants, or the environment, including, without limitation all laws, and rules or regulations dealing with Hazardous Materials and environmental matters, whether existing on or before the date hereof or subsequently enacted. Notwithstanding anything to the contrary contained herein, this Section 9 shall survive the Closing. Notwithstanding the other provisions of this Agreement to the contrary, the representations, acknowledgments, disclaimers, waivers, releases and matters set forth in this Section 9  shall not relieve Seller of its liability for (i) any breach of Seller's representations and warranties contained in this Agreement and/or and documents delivered by Seller at Closing, (ii) any breach by Seller of its covenants in this Agreement, (iii) Seller's fraud, (iv) any matter for which Buyer shall be indemnified by Seller under this Agreement, (v) Seller's acts or omissions from and after the Closing if such act or omission is also a default hereunder or (vi) any of Seller's liabilities to third parties or obligations to third parties solely with respect to environmental matters which arose or accrued during Seller's ownership of the Property.

10.Conditions to Closing.

(i)Representations, Warranties and Covenants of Buyer. Buyer shall have duly performed each and every covenant to be performed by Buyer under this Agreement prior to the Closing Date and Buyer's representations and warranties made in this Agreement

shall be true and correct as of the Closing Date in all material respects as if made at and as of the Effective Date and remade as of the Closing Date.

b.Buyer's Conditions to Closing. Buyer's obligation to complete the transactions contemplated in this Agreement is subject to satisfaction of all of the following conditions on or before the date provided therein:

(i)Buyer's Due Diligence Studies. Prior to the expiration of the Due Diligence Period, Buyer shall have completed and approved its due diligence investigations and review of the Property and the Documents and Materials.

(ii)Owner's Title Policy. As of the Closing, the Escrow Agent shall have issued or shall be irrevocably committed to issue to Buyer an CLTA Extended Coverage Owner's Policy of Title Insurance (1970 Form B) covering the Real Property (the "Owner's Title Policy"), insuring Buyer in the amount of the Purchase Price that fee title to the Real Property is vested in Buyer as of the Closing, subject only to the Permitted Exceptions, together with such endorsements thereto as Buyer may request in Buyer's Title Objection Notice. If an ALTA extended coverage owner's police of title insurance is required, buyer shall pay the additional costs above the CLTA fees.

(iii)Representations, Warranties and Covenants of Seller. Seller shall have duly performed each and every covenant to be performed by Seller under this Agreement prior to the Closing Date and Seller's representations and warranties made in this Agreement shall be true and correct as of the Closing Date in all material respects as if made at and as of the Effective Date and remade as of the Closing Date.

(iv)Cessation of Motel Operations. At Closing, Seller shall have ceased all operations of and at the Motels, including without limitation: (i) the termination of all employees at the Motels and (ii) the termination of all agreements, service contracts and other operating agreements affecting or relating to the Motels (unless otherwise designated by Buyer in writing), so that the Property is delivered to Buyer upon Closing as a non-operating property. Seller shall be solely responsible for any and all costs incurred in connection with or relating to the cessation of Motel operations, including without limitation: (a) the payment of any and all severance fees, benefits or other wages to Motel employees, (b) any termination fees or similar costs relating to the termination of any contracts or other agreements affecting the Motels, (c) the reimbursement of any deposits or other advance payments made by customers of the Motels for the period of time following the closing (collectively and together with any other similar costs or expenses, "Motel Closure Expenses"). Seller shall indemnify, defend and hold Buyer harmless from and against any claims, losses, damages or other costs or expenses (including reasonable attorneys' fees) relating to any such Motel Closure Expenses, whether same are incurred prior to or following the Closing. Seller's obligations hereunder shall survive the Closing for a period of one (1) year.

c.Procedures Upon Failure of Condition. Except as otherwise expressly provided herein, in the event Buyer or Seller shall terminate (or shall be deemed to have terminated) this Agreement in accordance with the terms and provisions hereof, or if any of the conditions set forth in Sections 10(a) or 10(b) are not timely satisfied (or waived) (whether or not

as a result of a breach or default by a party hereto), then (i) this Agreement, the escrow and the respective rights and obligations of Seller and Buyer hereunder shall terminate, and the parties shall have no further obligation to each other, save and except for the indemnity, hold harmless, insurance, waiver and confidentiality agreements and obligations of Buyer expressly set forth in this Agreement, which shall survive such termination, (ii) subject to Section 12(a) hereinbelow, the Deposit shall be returned to Buyer, (iii) Buyer shall promptly return to Seller the Documents and Materials previously delivered by Seller to Buyer; and (iv) any escrow cancellation shall be borne equally by Seller and Buyer.

11. Closing.

a.Date and Place. The Closing of the sale of the Property by Seller to Buyer (the "Closing") shall occur on the Closing Date (as defined below).  The Closing shall occur in the offices of Escrow Agent. The "Closing Date" shall be on or before fifteen (15) days following the closing of the due diligence period.

b.Seller's Obligations at Closing. At the Closing, Seller shall deliver, or cause to be delivered, to Buyer the following:

(i)Grant Bargain and Sale Deed and Bill of Sale. Seller shall execute and deliver to Escrow Agent (1) for recording a Grant, Bargain and Sale Deed in the form attached hereto as Exhibit D incorporated herein by reference, fully executed and acknowledged by Seller, conveying lien free fee simple title to the Real Property and improvements thereon and (2) a Bill of Sale in the form attached hereto as Exhibit E incorporated herein by reference conveying that portion of the Property which is personal property.

(ii)Owner's Title Policy. Seller shall cause the Escrow Agent to issue and deliver to Buyer the Owner's Title Policy in the amount of the Purchase Price, insuring that Buyer is owner of the Property.

(iii)Non-Foreign Affidavit. An affidavit of Seller (the "FIRPTA Affidavit") in the form(s) required by the Escrow Agent affirming that Seller is not a "foreign person" for purposes of withholding taxes.

(iv)Other Instruments. Seller shall execute and deliver such other documents as are customarily executed in the State of Nevada in connection with the conveyance of real and personal property, including all required closing statements, releases, affidavits, evidences of authority to execute the documents, and any other instruments that may reasonably be required by the Escrow Agent.

(v)Possession. Seller shall deliver possession of the Property to Buyer at Closing.

c.Buyer's Obligations at Closing. At the Closing, Buyer shall deliver, or cause to be delivered to Seller the following:

(i)Payment of Purchase Price. At the Closing, Buyer shall pay the Purchase Price in cash (or by certified check, cashier's check, wire transfer of funds into a local

bank account indicated by Seller, all of which shall constitute "cash" for purposes of this Agreement), less the amount of the Deposit which shall be applied toward the Purchase Price, and subject to any adjustments for prorations and other credits provided for in this Agreement.

(ii)Other Instruments. Buyer shall execute and deliver such other documents as are customarily executed in the State of Nevada in connection with the conveyance of real and personal property, including all required closing statements, releases, affidavits, evidences of authority to execute the documents, and any other instruments that may reasonably be required by the Escrow Agent.

d.Prorations. All income, expenses, real estate taxes and interest on assessments relating to the Property for the year of the Closing shall be prorated as of the date of Closing between Seller and Buyer. Seller shall be entitled to all income from and be obligated to pay all expenses relating to the operation of the Property prior to the Closing; Seller shall also be obligated to pay, at its sole cost and expenses, all Motel Closure Expenses (as defined above) whether same are incurred or realized prior to or after the Closing.  If the amount of real estate taxes for that year are not known at the time of Closing, the prorations shall be based on an estimate of the taxes for the year of Closing, and when the tax information becomes available, Seller or Buyer may request reimbursement from the other party for any excess amount charged to that party at the Closing. Likewise, any other amounts normally prorated between Seller and Buyer, if any, shall be prorated between Seller and Buyer as of the date of Closing. There shall be no proration of Seller's insurance premiums or assignment of Seller's insurance policies and Seller shall be entitled to cancel all of its existing policies as of the Closing date. Buyer shall be obligated (at its own election) to obtain any replacement policies. Seller shall pay all sales, revenue, excise and use tax (and any surtax, interest and penalties thereon) (collectively, "Sales Tax") payable (i) with respect to Seller's operation of the Motels for the period prior to the Closing Date and (ii) in connection with or as a result of the transactions contemplated under this Agreement, including any Sales Tax due in connection with the sale to Buyer of those items of personal property for which Sales Tax is payable excluding, however, and use or excise tax arising in connection with Buyer's ownership or use of such personal property subsequent to the Closing Date. To the extent reasonably available, Seller shall deliver to Buyer, within ninety (90) days of the Closing, a tax clearance certificate from the applicable Governmental Authority in the State of Nevada stating that all Sales Tax required to be paid by Seller in connection with the Motels has been paid and that no amount is due for periods prior to the Closing Date.

e.Closing Costs.  Seller and Buyer each agree to pay the following costs at the Closing:

(i)Paid by Seller. Seller agrees to pay the cost of preparing the Grant, Bargain and Sale Deed; the premium for the Owner's Title Policy attributable to CLTA or "basic" coverage; fifty (50) percent of the real property transfer taxes; the cost of preparing and recording any releases and other documents necessary to convey the Property in accordance with this Agreement; one-half (1/2) of any escrow or closing fee charged by the Escrow Agent; Seller's attorney's fees and any other similar closing costs customarily paid by a seller of real property.

(ii)Paid by Buyer. Buyer agrees to pay the recording fee for the Grant, Bargain and Sale Deed; the premium for the Owner's Title Policy attributable to ALTA or "extended" coverage and endorsements thereto; fifty (50) percent of the real property transfer taxes; one-half (1/2) of any escrow or closing fee charged by the Escrow Agent; Buyer's attorney's fees and any other similar closing costs customarily paid by a purchaser of real property.

f.Indemnity. Seller shall indemnify, protect and defend the Buyer and each of Buyer's owner's, members, shareholders, officers, directors and other affiliates (collectively, the "Buyer Indemnitees") against any claims, losses or expenses arising on account of any items which are prorated and which Claims accrue prior to the Closing Date, and Buyer shall indemnify, protect, hold harmless and defend the Seller and each of Seller's owner's, members, shareholders, officers, directors and other affiliates (collectively, the "Seller Indemnitees") against any such claims, losses or expenses which accrue on or after the Closing Date.

12.Default and Remedies.

a.Buyer's Default and Seller's Remedies. If Buyer defaults under its obligation to purchase the Property as contemplated herein, Seller, in lieu of all other remedies Seller may have at law or equity, shall be entitled to, and delivered, the Deposit as liquidated damages. It is agreed between Buyer and Seller that the amount of the Deposit constitutes a reasonable estimate of the amount of damages to be incurred by Seller as a result of such a default by Buyer and the Deposit shall be paid to Seller by Escrow Agent within one (1) business day of such default as liquidated damages for a default of Buyer under this Agreement because of the difficulty, inconvenience and uncertainty of ascertaining actual damages for such default.

b.Seller's Default and Buyer's Remedies. In the event Seller fails to perform its obligations required by this Agreement to be performed or breaches any representation or warranty of Seller made in this Agreement, then Buyer may elect, as its sole remedy in such event, either to: (a) terminate this Agreement by giving Seller timely written notice of such election within three (3) business days of Buyer's receipt of notice, or becoming aware, of such default whereupon Buyer shall be entitled to recover from Escrow Agent the Deposit then held by Escrow Holder and to recover from Seller all reasonable out-of-pockets costs and expenses incurred by Buyer in connection the transactions contemplated under this Agreement; or (b) seek specific performance of this Agreement.

13.Brokers. Conditioned upon and subject to the closing of this transaction, Seller agrees to pay the real estate broker's commission of six (6) percent of the purchase price through the escrow process. That six (6) percent shall be shared equally by Sellers agent, Tom Young of Dickson Realty, and Buyer's broker, Bruce Breslow of CB Richard Ellis. Solely excluding Dickson Realty and CB Richard Ellis (which shall be paid by Seller pursuant to the preceding sentence), Buyer agrees to indemnify and hold harmless Seller from all loss, damage, cost, expense and liability relating to any claim for a commission by any person or entity with respect to this transaction, claiming by, through or under Buyer. Seller agrees to indemnify and hold harmless Buyer from all loss, damage, cost, expense and liability relating to any claim for a commission by any person or entity with respect to this transaction, claiming by, through or under Seller.

14. Miscellaneous.

a.Assignment. This Agreement may be assigned or transferred by Buyer without the prior written consent of Seller.

b.Notices.

(i)Any and all notices and demands by any party hereto to any other party or Escrow Agent, required or desired to be given hereunder shall be in writing and shall be validly given or made only if personally delivered or deposited in the United States mail, certified or registered, postage prepaid, return receipt requested or if made by Federal Express or other similar delivery service keeping records of deliveries and attempted deliveries or by facsimile with electronically confirmed receipt. Service shall be conclusively deemed made upon receipt if personally delivered or delivered by facsimile, or if delivered by mail or delivery service, on the first business day delivery is attempted or upon receipt, whichever is sooner.

(ii) Any notice or demand to Seller shall be addressed to Seller at: c/o Larry L and Susan Thomsen, 14170 Rim Rock Drive, Reno, NV 89521; Telephone  843-8548 Facsimile________.

(iii)Any notice or demand to Buyer shall be addressed to Buyer at: Land Strategies, LLC, attention Ron Cobb, 2044 Scharr Circle, Reno, NV 89509; with a copy to CB Richard Ellis, attention Bruce Breslow, 5190 Neil Road, Suite 460, Reno, NV 89502. Telephone (775)823-6906; Facsimile (775) 823-6990.

(iv)Any notice or demand to Escrow Agent shall be addressed to Escrow Agent at: First American Title Company, Attn: Charise Roberts, 5310 Kietzke Lane, Suite 100, Reno, NV 89511; Telephone (775) 823-4200, Facsimile (866) 633-3172.

(v)The parties and Escrow Agent may change their address for the purpose of receiving notices or demands as herein provided by a written notice given in the manner aforesaid to the others, which notice of change of address shall not become effective, however, until the actual receipt thereof by the others.

c.Parties Bound. This Agreement shall be binding upon and inure to the benefit of the Parties to this Agreement and their respective heirs, executors, administrators, legal representatives, successors and permitted assigns. This Agreement is not intended to create, and shall not create, any rights in any person who does not execute this Agreement as a party hereto.

d.Severability. If any of the terms and conditions hereof shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other of the terms and conditions hereof and the terms and conditions hereof thereafter shall be construed as if such invalid, illegal, or unenforceable terms or conditions had never been contained herein.

e.Entire Agreement. The terms and conditions hereof relating to the subject matter described herein (i) constitute the entire agreement and understanding between the Seller and the Buyer, (ii) supersede all prior agreements, and understandings, written or oral, between

the Buyer and the, and (iii) may not be modified or amended except by an instrument mutually executed and delivered by the Seller and the Buyer.

f.Time. Time is of the essence to the performance of any provision of this Agreement. If the date for performance of any provisions of the Agreement is a Saturday, Sunday, or banking holiday (in the State of Nevada), the date for performance shall be extended until the next day that is not a Saturday, Sunday or banking holiday.

g.Interpretation. Words of any gender used in this Agreement shall be held and construed to include any other gender, and words in the singular number shall be held to include the plural, and vice versa, unless the context requires otherwise.

h. Waiver. Either the Buyer or the Seller may specifically waive any breach of the terms and conditions hereof by the other party, but no waiver shall constitute a continuing waiver of similar or other breaches of the terms and conditions hereof. All remedies, rights, undertakings, obligations, and agreements contained herein shall be cumulative and not mutually exclusive.

i.Attorney's Fees. Should either the Buyer or the Seller employ an attorney or attorneys to enforce any of the terms and conditions hereof, or to protect any right, title, or interest created or evidenced hereby, the non-prevailing party in any action pursued in courts of competent jurisdiction shall pay to the prevailing party all reasonable costs, damages, and expenses, including attorneys' fees, expended or incurred by the prevailing party.

j.Governing Law. This Agreement shall be governed by and construed in accordance with the substantive and procedural laws of the State of Nevada. The exclusive venue of any action or proceeding arising out of or in connection with this Agreement shall be Washoe County, Nevada. Each party hereby consents to the personal jurisdiction of any court of competent subject matter jurisdiction sitting in Washoe County, Nevada, and to the service of process in accordance with the laws of the State of Nevada and any rules applicable to any such court.

k.Headings. The headings herein are for reference purposes only and shall not affect the meaning or interpretation of the terms and conditions hereof.

1.Exclusive Purchase Agreement. At all times after the Effective Date hereof and until the expiration of the Due Diligence Period, Seller may market the Property for sale or accept back-up offers from other persons or entities for the purchase of the Property. However, seller may not act on such back-up offers or allow due diligence by any other party than buyer while this contract is in effect.

m.Counterparts, Binding Effect and Facsimile Signatures. This Agreement may be executed in any number of counterparts and each such counterpart shall be deemed to be an original, but all of which, when taken together, shall constitute one agreement. The parties hereto agree that a facsimile signature(s) on this document shall have the same force and effect as an original signature and shall be binding upon the parties. This Agreement shall not be binding until fully executed by all parties hereto.

n.Mutual Contribution. This Agreement has been drafted on the basis of mutual contribution of language and is not to be construed against any parties hereto as being the drafter or causing the same to be drafted.

o. Confidentiality. Buyer and seller shall keep and maintain strictly confidential (i) the existence and contents of this Agreement, and (ii) the scope and substance of any discussions and negotiations between the parties relating to the purchase of the Property.

p. Effectiveness. This Agreement shall not be binding until fully executed by all parties hereto.

[Signatures on following page]

IN WITNESS WHEREOF, the parties hereto execute this Agreement as of the date first set forth above.

SELLER:

	 	 
	

By
	

/s/ Larry L. Thomsen

	 	

Larry L. Thomsen

	 	 
	

Date
	 
	 	 
	

By
	

/s/ Susan Thomsen

	 	

Susan Thomsen

	 	 
	

Date
	 
	 	 
	

BUYER:

	 	 
	

Land Strategies, LLC

	 	 
	

By
	

/s/ Ron Cobb

	 	

Ron Cobb

	 	 
	

Date 
	

1/25/06

EXHIBIT A

Legal Description of Property

To be provided by First American Title Company

EXHIBIT B

Description of Personal Property

All furniture, furnishings, fixtures and equipment installed or used and located in the Motels as of the Effective Date, with such additions and deletions as may hereafter occur or may have previously occurred in the ordinary course of business.

EXHIBIT C

Description of Excluded Property

1. Any cash, cash equivalents, accounts receivable, notes receivable and/or securities in connection with the Property and/or Motels.

EXHIBIT D

FORM OF GRANT, BARGAIN, SALE DEED

Assessor's Parcel Nos. 032-111-01 and 032-111-02

When Recorded Mail to, and 

Mail Tax Statements To:

	 
	 
	 
	 
	 

 

 

GRANT, BARGAIN, SALE DEED

THIS INDENTURE WITNESSETH: That Larry L Thomsen and Susan Thomsen, for valuable consideration, the receipt and sufficiency of which are hereby acknowledged, does hereby Grant, Bargain, Sell and Convey to ______________________________________________, all that real property situate in the County of  Washoe, State of Nevada, more particularly described as follows:

SEE EXHIBIT "A" ATTACHED HERETO

TOGETHER WITH all and singular the tenements, hereditaments and appurtenances thereunto belonging or in anywise appertaining and,

SUBJECT TO all real property taxes and assessments, easements and other matters of public record binding or appertaining to such real property.

IN WITNESS WHEREOF, this instrument has been executed this ___________day of  _________________, 2006.

	 	

Land Strategies, LLC 

	 	 
	

By:
	

/s/ Ron Cobb

	 	

Ron Cobb

	

STATE OF NEVADA
	

)

	 	

) ss:

	

COUNTY OF WASHOE
	

)

ON THISday of, 2006, personally appeared before me, a Notary Public, in and for said County and State, Larry L Thomsen and Susan Thomsen, known to me to be the persons described in and who executed the foregoing instrument, who acknowledged to me that he executed the same freely and voluntarily and for the uses and purposes therein mentioned.

	 
	

NOTARY PUBLIC

EXHIBIT A

Legal Description to Grant Bargain and Sale Deed

To be provided by First American Title Company

EXHIBIT E

FORM OF BILL OF SALE

BILL OF SALE

This Bill of Sale ("Bill of Sale") is executed as of the __day of ___________, 2006, by Larry L Thomsen and Susan Thomsen ("Seller"), in favor of Land Strategies LLC, Ron Cobb ("Buyer").

FOR VALUABLE CONSIDERATION, Seller hereby sells, transfers, assigns and delivers to Buyer free and clear of any lien or encumbrance all of Seller's right, title and interest in and to all improvements and personal property located on the real property ("Real Property") described on Exhibit A attached hereto and incorporated herein by reference including without limitation, the personal property described on Exhibit B attached hereto and incorporated herein by reference excluding, however, the excluded assets ("Excluded Assets") set forth on Exhibit C attached hereto and incorporated herein by reference, provided, however, that the personal property described herein shall not include improvements to the Real Property to the extent deemed to constitute fixtures thereto.

This Bill of Sale shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

This Bill of Sale shall be governed and construed in accordance with Nevada law. 

Seller has executed this Bill of Sale as of the date first above written. 

SELLER:

	

By:
	

/s/ Larry L Thomsen

	 	

Larry L Thomsen

	 	 
	

By:
	

/s/ Susan Thomsen

	 	

Susan Thomsen

EXHIBIT A TO BILL OF SALE

Legal Description of Real Property

To be provided by First American Title Company

EXHIBIT B TO BILL OF SALE

Description of Personal Property

All improvements, fixtures and personal property located on the Real Property and/or used in connection with the ownership or operation of the Motels and located on the Real Property, including without limitation, all furniture, furnishings, fixtures and equipment installed or used and located in the Motels as of the Effective Date, with such additions and deletions as may hereafter occur or may have previously occurred in the ordinary course of business.

EXHIBIT C TO BILL OF SALE

List of Excluded Assets

1.Any cash, cash equivalents, accounts receivable, notes receivable and/or securities in connection with the Property and/or Hotel.

1/26/2006

 

Buyer is a licensed Nevada Real Estate salesperson.

	

/s/ Ron Cobb
	 	

1/26/06
	 
	Signature 

	 	 	

Date

	Ron Cobb

	 	 	 
	 	 	 	 
	 	 	 	 

JOINDER and FIRST AMENDMENT TO PURCHASE and SALES AGREEMENT

This Joinder and First Amendment to Purchase and Sales Agreement (Amendment), made as of March 6, 2006 ("Amendment Effective Date"), by and between Larry L. Thomsen and Susan Thomsen, husband and wife, as individuals ("Thomsen's") and Larry L. Thomsen and Susan Thomsen, trustees (each individually a Trustee and jointly "Trustees") and sole beneficiaries (Beneficiaries) of the Larry L. Thomsen and Susan Thomsen Revocable Living Trust ("Trust", with the Trust, Trustees and Thomsen's being the "Seller") and Land Strategies, LLC., a Nevada limited liability company or assigs ("Buyer").

Recitals:

A.Thomsen's and Buyer, are parties to that certain Purchase and Sales Agreement made as of January 24, 2006 (Agreement). Capitalized terms used in this Amendment shall have the meanings given in the Agreement unless otherwise specifically defined in this Amendment.

B.On the terms and conditions specified in the Agreement, Buyer has agreed to buy and Seller has agreed to sell the Property, together with the water rights, if any, appurtenant to the Property as provided in Section 6 of the Agreement (Water Rights).

C.The Title Report establishes that title to the Real Property is not vested in Thomsen's but is vested in and held of record by the Trust.

D.All other Property, real, personal, tangible and intangible, and the Water Rights, is also vested in and held by the Trust.

E.Buyer has requested that the Trustees, Beneficiaries and the Trust become parties to the Agreement and the Trustees, Beneficiaries and the Trust, acknowledging the benefits which will flow to them as a result of the performance of the Agreement by Buyer and that the failure of Larry L. Thomsen and Susan Thomsen, as "Seller" under the Agreement, to have title to the Property is a breach of their warranty of title under the Agreement and that their inability to convey title to the Property to Buyer at the Closing would constitute a breach of the Agreement, have agreed to join in the Agreement, each as a "Seller" through the execution and delivery of this Amendment;

E. Buyer and  Seller have  agreed that certain  additional  amendments to the Agreement, as set forth below, are appropriate to a full and complete statement of their mutual understandings and by reason of the joinder of the Trustees, Beneficiaries and the Trust.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained in this Amendment, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

1.Joinder Agreement, Representation and Warranties.

1.1Joinder of Trustees and Trust. By executing and delivering this Amendment, the Trustees and the Trust hereby, jointly and severally, become parties to the Agreement, each as a Seller, with the same force and effect as if originally named therein as a Seller. The Trustees and the Trust hereby represent and warrant that each of the representations and warranties

contained in Section 8 of the Agreement is true and correct on and as of the Amendment Effective Date, after giving effect to this Amendment, and will be true and correct at the Closing. Each reference to "Seller" in the Agreement and this Amendment or the Exhibits to the Agreement or this Amendment shall be deemed to include the Trustees and the Trust.

1.2Consent of Beneficiaries. The Beneficiaries hereby consent to the joinder of the Trust and the Trustees in the Agreement; to the execution of this Amendment by the Trustees on behalf of the Trust; to the sale of the Property and the Water Rights and to the performance by the Trust and the Trustees of all obligations of Seller under the Agreement and this Amendment.

1.3 Thomsen's, Trustees, Beneficiaries and the Trust; Representations and Warranties. The Thomsen's, Trustees, Beneficiaries and the Trust hereby represent and warrant to Buyer that, as of the Amendment Effective Date and the Closing:

(a)Status of Trust. The Trust is a revocable, inter vivos trust duly formed and validly existing under the laws of the State of Nevada, with full power and authority to own, use and sell the Property and the Water Rights and to enter into and perform all of its obligations under any contract to which it is a party, including, without limitation, the Agreement and this Amendment.

(b)Status of the Thomsen's, Trustees; Beneficiaries and Trust. The Thomsen's are the grantors and sole Beneficiaries of the Trust; each Trustee is a duly appointed, qualified and acting Trustee of the Trust and the Trustees are the sole trustees of the Trust. Each Trustee agrees to notify Buyer in writing in the event that, prior to or within one (1) year following the Closing: (i) any Trustee resigns as Trustee or otherwise ceases to serve as Trustee, (ii) any other person is appointed as a trustee of the Trust, (iii) a Beneficiary ceases to be a beneficiary of the Trust, or (iii) any other person is designated as a beneficiary of the Trust. The Thomsen's will not amend the Trust prior to the Closing in any manner which would interfere with or prevent the performance by the Seller of the Agreement or this Amendment without the prior written consent of Buyer. The Trust is not a spendthrift trust and the assets of the Trust are available to satisfy the claims of the creditors of the Trust, including any claim that Buyer may have arising from or predicated upon the Agreement or this Amendment whether the claim arises before or after the Closing.

(c)Authority of Trustees. The Trust indenture grants to the Trustees the authority, exercisable in their sole and absolute discretion, to sell the assets of the Trust, including the Property and the Water Rights. The Trustees and the Trust have the absolute and unrestricted right, power, authority, and capacity, to execute and deliver this Amendment; to bind each of the Trustees and the Trust to perform the obligations of Seller under the Agreement and this Amendment and to perform the Trust's and the Trustee's obligations under the Agreement and this Amendment. This Amendment has been validly executed and delivered by the Trustees; the Agreement and this Amendment each constitute the legal, valid and binding  obligation  of the Trustees  and the Trust and each of the Agreement and this Amendment are enforceable against the Trustees and the Trust.

(d)Litigation. There is and has been no legal, administrative, arbitration or other proceeding, or any investigation by any governmental entity pending or threatened against Thomsen's, the Trustees, the Trust or any of their respective assets, the Property or the Water Rights, which could reasonably be expected to result in the issuance of an order restraining,

enjoining or otherwise prohibiting or making illegal the consummation of the transactions contemplated by the Agreement or this Amendment.

(e)No Conflicts. The execution and delivery of this Amendment and the performance of the obligations and transactions contemplated by the Agreement and this Amendment will not conflict with, or result in any violation of or default (with or without notice or lapse of time, or both) under or give rise to a right of termination, cancellation or acceleration, of any obligation or to loss of a benefit under, or result in the creation of any lien upon, any of the assets of Thomsen's, the Trustees or the Trust under, any provision of any obligation of any of them under: (i) the Trust (ii) any contract, or (iii) any order, award, decision, writ, judgment, decree, injunction, ruling, subpoena or verdict, entered, issued, made or rendered by any court, arbitrator, administrative agency, or similar order of any governmental agency.

(f)Consents and Approvals. The execution and delivery of this Amendment by Thomsen's and the Trustees and the joinder of each of the Trust and the Trustees as a Seller under the Agreement does not, and the performance of the transactions contemplated by the Agreement and this Amendment by them will not, require any filing with or notification to, or any consent, approval, authorization, waiver or permit from, any other person.

(g)Status of Title:  The Trust is the owner of and has good and marketable title to the Property in fee simple and the Water Rights, free and clear of any and all liens, claims and encumbrances other than those disclosed by the Title Report and will, except as provided in Section 7 of the Agreement, convey title to Buyer at the Closing by grant, bargain and sale deed, free and clear of all liens, claims and encumbrances other than the Permitted Exceptions.

(h)Compliance. Since May, 1995, Sellers, to their knowledge, have been and are in substantial compliance with all: (i) laws and regulations applicable to the Property and the Water Rights and Sellers are not aware of any claim of violation, or of any actual violation, of any such laws and regulations, and (ii) all federal, state or local permits, consents, approvals, licenses, judgments, orders, decrees, injunctions or other authorizations governing or relating to the Property or the Water Rights.

(i)Material Misstatements or Omissions. No representation or warranty of Thomsen's, the Trustees or the Trust in the Agreement or this Amendment contains any untrue statement of a material fact, or to the knowledge of Thomsen's, the Trustees or the Trust or any of them, omits to state a material fact necessary to make the statements herein or therein, in light of the circumstances in which they were made, not misleading.

2.The Agreement shall be and is hereby amended as of the Amendment Effective Date follows:

2.1Section 4 is hereby amended to relieve  Buyer of the obligation to "promptly repair and restore the Property to its original condition existing prior to entry or inspection by Buyer" unless Buyer exercises its right during the Due Diligence Period to terminate the Agreement and this Amendment in which case Buyer shall so repair and restore, at Buyer's sole cost and expense, within thirty (30) days following termination.

2.2Section 4 is hereby further amended to provide that termination of the Agreement by Buyer during the Due Diligence Period shall also terminate this Amendment on the same conditions and with the same force and effect.

2.3Section 8.a (i) (4) is deleted and shall read in full: "(4) To Seller's knowledge, since May 1995, there has not been and Seller has not received any written notification of,  any pending or threatened condemnation or eminent domain proceedings involving the Real Property."

2.4Section 8.a (i) (8) is deleted and shall read in full: "To Seller's knowledge, since May, 1995, there has not been and Seller has received no written notice (including any written request for information, demand letter, administrative inquiry, complaint or claim) from any Governmental Authority of any actual or potential violation of or failure to comply with any Environmental Requirements with respect to the Property or the Water Rights which has not been corrected to the satisfaction of such Governmental Authority, or of any actual or threatened obligation to undertake or bear the cost of any clean-up, removal, containment or other remediation under any Environmental Requirements with respect to the Property or the Water Rights which has not been performed to the satisfaction of such Governmental Authority. To Seller's knowledge, since May, 1995, there has been no release or threat of release of Hazardous Materials at or from, or affecting, the Property or the Water Rights or any portion thereof in violation of applicable law. For the purposes of Section 8.a. (i) "Governmental Authority" shall mean any court or tribunal, or administrative, governmental or regulatory body, agency or authority; "Environmental Requirements" shall mean the requirements of any Law relating to the regulation or protection of the environment or natural resources or the emission release, treatment, storage, disposal, transport or handling of Hazardous Material; Hazardous Material shall mean (a) any petroleum or petroleum fraction, explosives, radioactive materials, friable asbestos, urea formaldehyde foam insulation and transformers or other equipment that contain dielectric fluid containing regulated levels of polychlorinated biphenyls (PCBs); and (b) any chemicals or substances which are defined as or included in the definition of "hazardous substances," "hazardous wastes," "extremely hazardous wastes," or "toxic substances," under any Environmental Law; and Environmental Law shall mean any Law relating to the regulation or protection of the environment or natural resources or the emission release, treatment, storage, disposal, transport or handling of Hazardous Material."

2.5The freestanding paragraph following Section 8.a (i) (9) is deleted and shall read in full: "For all purposes under this Agreement, "to Seller's knowledge" or any phrase of like meaning shall be deemed to mean only the present knowledge, actual or imputed, of Larry L Thomsen and Susan Thomsen, whether acting individually or as Trustees or Beneficiaries. As used herein the "Warn Act" shall mean and refer to the Federal Worker Adjustment and Retraining Notification Act of 1988, 29 USC section 2101 et seq. and "State WARN Act" shall mean and refer to any statute of the State of Nevada which is similar in subject matter to the WARN Act."

2.6Section 9 is deleted and shall read in full: "Condition of Property. Buyer agrees that, except for the warranties and representations of Seller contained in Section 8. a. (i), it is otherwise purchasing the Property "As-Is" and "With All Faults". By closing this transaction, Buyer hereby (a) releases Seller from all damages, claims, liabilities and obligations, whether known or unknown, arising after May 1995 and prior to the Closing ("Release Period") and related to the Property or the condition thereof, including without limitation the physical condition of the Property, the presence or absence of Hazardous Materials in, on, under or affecting the Property and (b) except as otherwise provided in this Section 9, assumes all damages, claims, liabilities and obligations arising during the Release Period from or related to the presence or absence of Hazardous Materials in, on, under or affecting the Property and the compliance of the Property with Environmental Laws, ordinances, rules and regulations relating to the

condition thereof. Notwithstanding the other provisions of this Section 9 to the contrary, the representations, acknowledgments, disclaimers, waivers, releases and matters set forth in this Section 9 shall not relieve Seller of its liability for (i) any breach of Seller's representations and warranties contained in this Agreement and/or and documents delivered by Seller at Closing, (ii) any breach by Seller of its covenants in this Agreement, (iii) Seller's fraud, (iv) any matter for which Buyer shall be indemnified by Seller under this Agreement, (v) Seller's acts or omissions from and after the Closing or (vi) any of Seller's liabilities to third parties, including Governmental Authorities, or obligations to third parties, including Governmental Authorities, solely with respect to environmental matters which arose or accrued during Seller's ownership of the Property."

2.7Section 10.(i) b (iii) shall be amended by the addition of the following sentence: "Each of Seller's representations and warranties in this Agreement that contains an express materiality qualification shall have been accurate in all respects as of the date of the Agreement and as of the Amendment Effective Date and shall be accurate in all respects as of the Closing Date.

2.8The reference to Section 10(a) in Section 10. c is deleted, there being no Section 10(a).

2.9Exhibit D shall be deleted and Exhibit A to this Amendment is adopted in lieu thereof.

	Affirmation of Agreement. Subject to the amendments stated above, the parties ratify, approve and confirm the Agreement in its entirety, effective as of the Amendment Effective Date.

	Assignment. This Amendment shall be freely assignable by Land Strategies, LLC to any person or entity to which it assigns the Agreement.

Wherefore, the parties have made and executed this Amendment as of the Amendment Effective Date.

	

Land Strategies, LLC 
	 	

The Larry L. Thomsen and Susan Thomsen Revocable Living Trust

	 	 	 	 
	

By:
	

/s/ Ron Cobb
	 	

/s/ Larry L. Thomsen

	

Its:
	

MANAGING MEMBER
	 	

Larry L. Thomsen, Trustee

	 	 	 	 
	 	 	 	

/s/ Susan Thomsen

	 	 	 	

Susan Thomsen, Trustee

	 	 	 	 
	 	 	 	

/s/ Larry L. Thomsen

	 	 	 	

Larry L. Thomsen

	 	 	 	 
	 	 	 	

/s/ Susan Thomsen

	 	 	 	

Susan Thomsen

	

State of Nevada
	

)

	 	

:ss

	

County of Washoe
	

)

This instrument was acknowledged before me on the 6th, day of March, 2006, by Larry L. Thomsen and Susan Thomsen, individually and as Trustees of the Larry L. Thomsen and Susan Thomsen Revocable Living Trust.

	

/s/ Lindsay A. Mason

	

Notary Public

	

State of Nevada
	

)

	 	

:ss

	

County of Washoe
	

)

This instrument was acknowledged before me on the 6th, day of March, 2006, by Ron Cobb, as the Principal of Land Strategies, LLC.

	

/s/ J.A. Cheek

	

Notary Public

ASSIGNMENT

For value received, the sufficiency of which is hereby acknowledged, Land Strategies, LLC, a Nevada limited liability company ("Assignor"), hereby transfers and assigns to Plantation Investments, Inc., a Nevada corporation ("Assignee"), effective as of the __day of March, 2006 ("Assignment Effective Date"), all of Assignor's right, title and interest in and to that certain Purchase and Sale Agreement dated as of January 24, 2006, by and between Assignor or assigns, as Buyer and Larry L. Thomsen and Susan Thomsen, as Seller, and the Joinder and First Amendment to Purchase and Sales Agreement, made as of February __, 2006, by and between Assignor or its assigns, as Buyer, and Larry L. Thomsen and Susan Thomsen, husband and wife, as individuals ("Thomsen's") and Larry L. Thomsen and Susan Thomsen, trustees ("Trustees") and sole beneficiaries of the Larry L. Thomsen and Susan Thomsen Revocable Living Trust (the "Trust", with the Trust, Trustees and Thomsen's being the "Sellers"). The Purchase and Sale Agreement of January 24, 2006 and the Joinder and First Amendment to Purchase and Sale Agreement of March 6, 2006, are jointly referred to below as the "Agreement" with this assignment being referred, to as "Assignment".

1.Warranties and Representation of Assignor. All of the representations and warranties of Assignor contained in the Agreement are incorporated into this Assignment as though fully set forth. Assignor further represents and warrants to Assignee that:

(a)Assignor is a limited liability company duly formed and existing under the laws of the State of Nevada;

	this Assignment and the Agreement have been duly authorized and validly executed and delivered by Assignor and each constitutes the legal, valid and binding obligation of Seller, enforceable against it in accordance with its terms. Seller has and at all material times had, all necessary power and authority to execute and deliver this Assignment and the Agreement, to perform its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby to be consummated by Assignor. The execution and delivery of this Assignment and the Agreement by Assignor and the consummation by Assignor of the transactions contemplated hereby and thereby to be consummated by Assignor have been duly and validly authorized by all necessary limited liability company action on the part of Assignor, its members and managers, and no other proceedings on the part of Assignor and no other member or manager votes are necessary to authorize this Assignment or the Agreement or to consummate the transactions contemplated hereby or thereby. Seller has the absolute and unrestricted right, power, authority, and capacity to execute and deliver this Assignment and to perform its obligations under this Assignment;

	Assignor has not assigned or transferred any interest in the Agreement to any other person or entity;
	Assignor has good right and title to the Agreement free and clear of all claims, liens, and encumbrances;
	Assignor has obtained all required consents to the transfer and assignment of the Agreement and has delivered the originals of those consents to Assignee;
	(iv) Assignor has the full right, power, and authority to transfer the Agreement to Assignee;

(g)Assignor has performed all of its obligations under the Agreement and is not in default and will not be in default as of the Closing;

(h)the Agreement has not been amended or modified other than as provided in the Joinder and First Amendment to Purchase and Sale Agreement of March __, 2006; and

(i)the Sellers, to the knowledge of Assignor, have performed all of their respective obligations under the Agreement and are not in default, have no claims against and have not threatened to make any claims against Assignor.

	Binding Effect. This Assignment and each of its provisions shall be binding on and shall inure to the benefit of the respective heirs, devisees, legatees, executors, administrators, trustees, successors, and assigns of the parties to this Assignment.

	Amendment. This Assignment may be amended only by a writing signed by the party against whom or against whose successors and assigns enforcement of the change is sought.

	Effect of Partial Invalidity. If any term, provision, or application of this Assignment is held invalid or unenforceable, the remainder of this Assignment and any application of the terms and provisions shall not be affected, but shall remain valid and enforceable.

	Governing Law. This Assignment shall be governed by and construed in accordance with the laws of the State of Nevada.

	Assumption Assignee and Indemnification. Assignee assumes all of Assignor's obligations, liabilities and duties under the Agreement accruing after the Assignment Effective Date and agrees to indemnify and hold Assignor harmless from all obligations, liabilities, and duties, including attorneys' fees and costs incurred, relating to the Agreement accruing after the Assignment Effective Date. Except as specifically set forth in this Assignment, Assignee does not and will not be obligated to assume any other obligations, liabilities, or duties of Assignor of any form or nature. Assignor agrees to indemnify and hold Assignee harmless from any and all obligations, liabilities, and duties, including attorneys' fees and costs incurred, relating to the Agreement and accruing on or before the Assignment Effective Date.

	Survival. The representations and warranties set forth in clauses 1 through 6 above and the covenants of Assignor and Assignee contained in this Assignment shall survive the Closing of the transactions under the Agreement.

DATED: The 6th day of March, 2006

	

ASSIGNOR:
	 	 	

ASSIGNEE:

	 	 	 	 
	

Land Stratigies, LLC
	 	 	

Plantation Investments, Inc.

	

a Nevada limited liability
	 	 	

a Nevada corporation

	

company
	 	 	 
	 	 	 	 	 
	

By:
	

/s/ Ron Cobb
	 	

By:
	

[ILLEGIBLE]

	

Its:
	

MANAGING MEMBER
	 	

Its:
	

Secretary/Treasurer

	 	 	 	 	 

	

STATE OF NEVADA
	

)

	 	

) ss.

	

COUNTY OF WASHOE
	

)

This instrument was acknowledged before me on the 6th day of March, 2006, by Ron Cobb as the Principal of Land Strategies, LLC a Nevada limited liability company.

	

J.A. Cheek

	

NOTARY PUBLIC

	

STATE OF NEVADA
	

)

	 	

) ss.

	

COUNTY OF WASHOE
	

)

This instrument was acknowledged before me on the 6th day of March, 2005, by Ference B. Szony, the President of Plantation Investments, Inc., a Nevada corporation.

	

J.A. Cheek

	

Notary Public

CONSENT TO ASSIGNMENT

The undersigned, consent to the assignment to Plantation Investments, Inc., a Nevada corporation, of the Purchase and Sale Agreement dated as of January 24, 2006, by and between Assignor or assigns, as Buyer, and Larry L. Thomsen and Susan Thomsen, as Seller, and the Joinder and First Amendment to Purchase and Sales Agreement, made as of March, 2006, by and between Assignor or its assigns, as Buyer, and Larry L. Thomsen and Susan Thomsen, husband and wife, as individuals ("Thomsen's") and Larry L. Thomsen and Susan Thomsen, trustees ("Trustees") and sole beneficiaries of the Larry L. Thomsen and Susan Thomsen Revocable Living Trust (the "Trust", with the Trust, Trustees and Thomsen's being the "Sellers"). The Purchase and Sale Agreement of January 24, 2006 and the Joinder and First Amendment to Purchase and Sale Agreement of February __, 2006, are jointly referred to below as the "Agreement" with the assignment to which this consent is appended being referred

to as the "Assignment". The undersigned further consent to the performance by Plantation Investments, Inc., of the duties of "Buyer" under the Agreement accruing after the Assignment Effective Date. To the knowledge of the undersigned, "Buyer" and "Seller" under the Agreement have each fully performed their respective obligations to be performed prior to the Assignment Effective Date and neither is in default under the Agreement. The Agreement has not been amended or modified other than as provided in the Joinder and First Amendment to Purchase and Sale Agreement of March ___, 2006.

DATED: March 6, 2006.

CONSENTING PARTY:

	

By:
	

/s/ Larry L. Thomsen
	 	

/s/ Susan Thomsen

	

Larry L. Thomsen,  individually and 

As a trustee and beneficiary of the 

Larry L. Thomsen and Susan Thomsen Revocable Living Trust
	

Susan Thomsen, individually and as a trustee and beneficiary of the Larry L. Thomsen and Susan Thomsen Revocable Living Trust

	

State of Nevada
	

)

	 	

) ss.

	

County of Washoe  
	

)

This instrument was acknowledged before me on the 6 day of March, 2006, by Larry L. Thomsen and Susan Thomsen, individually and as trustees and beneficiaries of the Larry L. Thomsen and Susan Thomsen Revocable Living Trust.

	

/s/ Lindsay A. Mason

	

Notary Public

	 	

ADDENDUM NO.
	

-1-
	 

	

To Agreement dated
	

January 24, 2006
	

, between
	

Larry L and Susan Thomsen
	

,

	

and
	

Land Strategies, LLC
	

, concerning property located at

	

2001 Victorian Avenue, Sparks Nv
	 	 

	

The parties agree as follows:

	 
	

1.  Buyer may elect to do a 1031 Tax Deferred Exchange.

	 
	

2.  Buyers are aware that the City of Sparks is considering the abandonment of 21st Street to the

	

west and the alley behind the motel.

	 
	

3. There is an abandoned oil tank in the sidewalk area in front of the motel. It was abandoned prior to 

	

the Thomsen's purchasing the property and they have no knowledge about the tank.

	 
	

4. Susan Thomsen is a Canadian Citizen.

	 
	

5. Sellers will do their utmost to have the premises vacated at close of escrow. If for some reasons 

	

beyond their control, a tenant has not left by that date, the escrow will be extended as needed.

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

This Addendum, upon its execution by both parties, is made a part of the above Agreement.

If checked  ̈

 this Addendum is of no force or effect unless executed by all parties and delivered prior to

(date)(time) ̈

 a.m.  ̈

 p.m., to

(Name of Party)

	

Seller/Lessor
	

/s/ Larry L. Thomsen
	

Date
	

2/2/06

	
	
	
	

	

Seller/Lessor
	

/s/ Susan Thomsen
	

Date
	

2/2/06

	
	
	
	

	

Buyer/Lessee
	

/s/ Ron Cobb
	

Date
	

2/2/06

	
	
	
	

	

Buyer/Lessee
	 	

Date
	 

	
	
	
	

	

CAUTION: The copyright laws of the United States forbid the unauthorized reproduction of this form by any means including scanning or computerized formats.
	

Rev. by 
	 
	 	 
	

Date
	

	
	
	
	

IN WITNESS WHEREOF, the parties hereto execute this Agreement as of the date first set forth above.

	

SELLER:

	 	 
	 	 
	

By
	

/s/ Larry L. Thomsen

	 	

Larry L. Thomsen

	 	 
	

Date
	

2/2/06

	 	 
	

By
	

/s/ Susan Thomsen

	 	

Susan Thomsen

	 	 
	

Date
	

2/2/06

	 	 
	

BUYER:

	 	 
	

Land Strategies, LLC

	 	 
	

By
	

/s/ Ron Cobb

	 	

Ron Cobb

	 	 
	

Date
	

1/25/06

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}]]