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EXHIBIT 4.7

REGISTRATION RIGHTS AGREEMENT

     THIS REGISTRATION RIGHTS AGREEMENT, dated as of August 29, 2003, is entered into by and
between Ashford Hospitality Trust, Inc., a Maryland corporation (the “Company”), holders of common
partnership units in Ashford Hospitality Trust, Inc., a Maryland corporation (the “Operating
Partnership”) whose names are set forth on the signature pages hereto (each a “Unit Holder” and
collectively, the “Unit Holders”) and holders of restricted shares of the Company’s common stock
whose names are set forth on the signature pages hereto (each a “Restricted Stock Holder” and
collectively, the “Restricted Stock Holders”).

RECITALS

     WHEREAS, in connection with the initial public offering of shares of the Company’s common
stock, par value $0.01 per share (the “Common Stock”), the Company, the Operating Partnership, the
Unit Holders and the Restricted Stock Holders will engage in certain formation transactions (the
“Formation Transactions”) whereby:

     (i) the Unit Holders will contribute to the Operating Partnership their
respective interests in certain hotel properties, asset management and consulting
agreements and other assets (the “Initial Contributed Assets”) in exchange common
partnership units (“OP Units”) in the Operating Partnership;

     (ii) Remington Long Island Hotel, L.P., a Restricted Stock Holder, will convey
to the Operating Partnership its interests in a hotel property and other assets (the
“Initial Conveyed Assets”) in exchange for Common Stock;

     (iii) Archie and Montgomery J. Bennett, each a Restricted Stock Holder, will
acquire shares of Common Stock in exchange for cash in a privately negotiated
transaction; and

     (iv) Friedman Billings Ramsey, a Restricted Stock Holder, will acquire shares
of Common Stock for services performed in connection with the Initial Public
Offering (as defined below);

     WHEREAS, pursuant to the Partnership Agreement (as defined below), OP Units owned by the Unit
Holders will be redeemable for cash or exchangeable for shares of Common Stock of the Company upon
the terms and subject to the conditions contained in the Partnership Agreement.

     NOW, THEREFORE, in consideration of the premises and the mutual agreements herein contained,
and for good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

 

 

ARTICLE I

DEFINITIONS

     Section 1.1 Definitions . In addition to the definitions set forth above, the following terms, as used herein, have the
following meanings:

     “Affiliate” of any Person means any other Person directly or indirectly controlling or
controlled by or under common control with such Person. For the purposes of this definition,
“control” when used with respect to any Person, means the possession, directly or indirectly, of
the power to direct or cause the direction of the management and policies of such Person, whether
through the ownership of voting securities, by contract or otherwise; and the terms “controlling”
and “controlled” have meanings correlative to the foregoing.

     “Agreement” means this Registration Rights Agreement, as it may be amended, supplemented or
restated from time to time.

     “Articles of Incorporation” means the Articles of Amendment and Restatement of the Company as
filed with the Secretary of State of the State of Maryland on July 28, 2003, as the same may be
amended, modified or restated from time to time.

     “Business Day” means any day, other than a Saturday or Sunday, that is neither a legal holiday
nor a day on which banking institutions in Dallas, Texas are authorized or required by law,
regulation or executive order to close.

     “Commission” means the Securities and Exchange Commission.

     “Demand Registration” means a Demand Registration as defined in Section 2.2.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended and the rules and
regulations promulgated thereunder.

     “Exchangeable OP Units” means OP Units which may be redeemable for cash or, at the sole and
absolute discretion of the Company, exchangeable for Common Stock pursuant to Section 7.4 of the
Partnership Agreement (without regard to any limitations on the exercise of such exchange right as
a result of the Ownership Limit Provisions).

     “Holder” means any Initial Holder who is the record or beneficial owner of any Registrable
Security or any assignee or transferee of such Registrable Security (including assignments or
transfers of Registrable Securities to such assignees or transferees as a result of the foreclosure
on any loans secured by such Registrable Securities) to the extent (x) permitted under the
Partnership Agreement and (y) such assignee or transferee agrees in writing to be bound by all the
provisions hereof, unless such Registrable Security is acquired in a public distribution pursuant
to a registration statement under the Securities Act or pursuant to transactions exempt from
registration under the Securities Act where securities sold in such transaction may be resold
without subsequent registration under the Securities Act.

     “Immediate Family” of any individual means such individual’s estate and heirs or current
spouse, or former spouse, parents, parents-in-law, children (whether natural or adoptive or by

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marriage), siblings and grandchildren and any trust or estate, all of the beneficiaries of which
consist of such individual or any of the foregoing.

     “Initial Holder” means (i) any Unit Holder, (ii) any Restricted Stock Holder, (iii) any
partner, member or stockholder of any Unit Holder or Restricted Stock Holder, (iv) any Affiliate of
any such partner, member or stockholder, and (v) the Immediate Family of any of the foregoing.

     “Initial Public Offering” means the offering of the Company’s Common Stock pursuant to the
Form S-11 Registration Statement (No. 333-105277) filed by the Company with the Commission under
the Securities Act.

     “Ownership Limit Provisions” mean the various provisions of the Company’s Charter set forth in
ARTICLE VI thereof restricting the ownership of Common Stock by Persons to specified percentages of
the outstanding Common Stock.

     “Partnership Agreement” means the Amended and Restated Agreement of Limited Partnership of the
Operating Partnership dated as of August 29, 2003, as the same may be amended, modified or restated
from time to time.

     “Person” means an individual or a corporation, partnership, limited liability company,
association, trust, or any other entity or organization, including a government or political
subdivision or an agency or instrumentality thereof.

     “Piggy-Back Registration” means a Piggy-Back Registration as defined in Section 2.3.

     “Registrable Securities” means shares of Common Stock of the Company at any time owned, either
of record or beneficially, by any Holder and issued either in connection with the Initial Public
Offering or the Formation Transactions or upon exchange of Exchangeable OP Units received in the
Formation Transactions and any additional Common Stock issued as a dividend, distribution or
exchange for, or in respect of such shares until

     (i) a registration statement covering such shares has been declared effective
by the Commission and such shares have been disposed of pursuant to such effective
registration statement;

     (ii) such shares are sold under circumstances in which all of the applicable
conditions of Rule 144 (or any similar provisions then in force) under the
Securities Act are met or under which such shares may be sold pursuant to Rule
144(k);

     (iii) such shares held by such Person may be sold pursuant to Rule 144 under
the Securities Act and could be sold in one transaction in accordance with the
volume limitations contained in Rule 144(e)(1)(i) under the Securities Act; or

     (iv) such shares have been otherwise transferred in a transaction that would
constitute a sale thereof under the Securities Act, the Company has delivered a new
certificate or other evidence of ownership for such shares not

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bearing the
Securities Act restricted stock legend and such shares may be resold without
subsequent registration under the Securities Act;

provided, however, that “Registrable Securities” for purposes of the indemnification obligations
contained in Sections 2.7 and 2.8 shall mean all shares that are registered on the applicable Shelf
Registration, Demand Registration or Piggy-Back Registration, notwithstanding that such shares may
not otherwise be “Registrable Secruities” by operation of clause (iii) above.

     “Securities Act” means the Securities Act of 1933, as amended and the rules and regulations
promulgated thereunder.

     “Selling Holder” means a Holder who is selling Registrable Securities pursuant to a
registration statement under the Securities Act.

     “Shelf Registration Statement” means a Shelf Registration statement as defined in Section 2.1.

     “Underwriter” means a securities dealer who purchases any Registrable Securities as principal
and not as part of such dealer’s market-making activities.

ARTICLE II

REGISTRATION RIGHTS

     Section 2.1 Shelf Registration. Commencing on or after one year after the consummation date of the Initial Public Offering, the
Company shall prepare and file a “shelf” registration statement with respect to the resale of the
shares of Common Stock issued to the Restricted Stock Holders in connection with the Initial Public
Offering or the Formation Transactions and the issuance and the resale of the shares of Common
Stock issuable upon the exchange of Exchangeable OP Units issued to the Unit Holders in the
Formation Transactions and the resale of any other Registrable Securities on an appropriate form
for an offering to be made on a continuous basis pursuant to Rule 415 under the Securities Act (the
“Shelf Registration Statement”) and shall use its best efforts to cause the Shelf Registration
Statement to be declared effective on or as soon as practicable thereafter, and to keep such Shelf
Registration Statement continuously effective for a period ending when all shares of Common Stock
covered by the Shelf Registration Statement are no longer Registrable Securities. In the event
that the Company fails to file, or if filed fails to maintain the effectiveness of, a Shelf
Registration Statement, Holders of Registrable Securities may make a written request for a Demand
Registration (as defined below) pursuant to Section 2.2 herein or participate in a Piggy Back
Registration (as defined below) pursuant to Section 2.3 herein; provided, further, that if and so
long as a Shelf Registration Statement is on file and effective, then the Company shall have no
obligation to effect a Demand Registration or allow participation in a Piggy Back Registration.

     Section 2.2 Demand Registration .

     (a) Request for Registration. Subject to Section 2.1 hereof, commencing on or after
the date which is one year after the consummation date of the Initial Public Offering, Holders of
Registrable Securities may make a written request for registration under the Securities Act of all
or part of its or their Registrable Securities (a “Demand Registration”); provided, that the

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Company shall not be obligated to effect more than one Demand Registration in any twelve month
period and not more than two such Demand Registrations in total; and provided, further, that the
Holders making such written request number shall propose the sale of at least 100,000 shares of
Registrable Securities (such number to be adjusted successively in the event the Company effects
any stock split, stock consideration or recapitalization after the date hereof). Any such request
will specify the number of shares of Registrable Securities proposed to be sold and will also
specify the intended method of disposition thereof. Within ten (10) days after receipt of such
request, the Company will give written notice of such registration request to all other Holders of
the Registrable Securities and include in such registration all such Registrable Securities with
respect to which the Company has received written requests for inclusion therein within twenty (20)
Business Days after the receipt by the applicable Holder of the Company’s notice. Each such
request will also specify the number of shares of Registrable Securities to be registered and the
intended method of disposition thereof. Unless the Holder or Holders of a majority of the
Registrable Securities to be registered in such Demand Registration shall consent in writing, no
other party, including the Company (but excluding another Holder of a Registrable Security), shall
be permitted to offer securities under any such Demand Registration.

     (b) Effective Registration. A registration will not count as a Demand Registration
until it has become effective and has remained effective and available for at least 180 days.

     (c) Selling Holders Become Party to Agreement. Each Holder acknowledges that by
asserting or participating in its registration rights pursuant to this Article II, he or she may
become a Selling Holder and thereby will be deemed a party to this Agreement and will be bound by
each of its terms.

     (d) Priority on Demand Registrations. If the Holders of a majority of shares of the
Registrable Securities to be registered in a Demand Registration so elect by written notice to the
Company, the offering of such Registrable Securities pursuant to such Demand Registration shall be
in the form of an underwritten offering. The Company shall select the book-running managing
Underwriter in connection with any such Demand Registration; provided that such managing
Underwriter must be reasonably satisfactory to the Holders of a majority of the shares of the
Registrable Securities. The Company may select any additional investment banks and managers to be
used in connection with the offering; provided that such additional investment bankers and managers
must be reasonably satisfactory to a majority of the Holders making such Demand Registration. To
the extent 10% or more of the Registrable Securities so requested to be registered are excluded
from the offering in accordance with Section 2.4, the Holders of such Registrable Securities shall
have the right to one additional Demand Registration under this Section in such twelve-month period
with respect to such Registrable Securities.

     Section 2.3 Piggy-Back Registration. Subject to Section 2.1 hereof, if the Company proposes to file a registration statement
under the Securities Act with respect to an underwritten equity offering by the Company for its own
account or for the account of any of its respective securityholders of any class of security (other
than (i) any registration statement filed by the Company under the Securities Act relating to an
offering of Common Stock for its own account as a result of the exercise of the exchange rights set
forth in Section 7.4 of the Partnership Agreement, (ii) any registration statement filed in
connection with a demand registration other than a Demand Registration under this Agreement or
(iii) a registration statement on Form S-4 or

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S-8 (or any substitute form that may be adopted by
the Commission) or filed in connection with an exchange offer or offering of securities solely to
the Company’s existing securityholders), then the Company shall give written notice of such
proposed filing to the Holders of Registrable Securities as soon as practicable (but in no event
less than ten (10) days before the anticipated filing date), and such notice shall offer such
Holders the opportunity to register such number of shares of Registrable Securities as each such
Holder may request (a “Piggy-Back Registration”). The Company shall use commercially reasonable
efforts to cause the managing Underwriter or Underwriters of a proposed underwritten offering to
permit the Registrable Securities requested to be included in a Piggy-Back Registration to be
included on the same terms and conditions as any similar securities of the Company included
therein.

     Section 2.4  Reduction of Offering.
Notwithstanding anything contained herein, if the managing Underwriter or Underwriters of an
offering described in Section 2.2 or 2.3 deliver a written opinion to the Company and the Holders
of the Registrable Securities included in such offering that (i) the size of the offering that the
Holders, the Company and such other persons intend to make or (ii) the kind of securities that the
Holders, the Company and/or any other Persons intend to include in such offering are such that the
success of the offering would be materially and adversely affected by inclusion of the Registrable
Securities requested to be included, then

     (A) if the size of the offering is the basis of such Underwriter’s opinion, the
amount of securities to be offered for the accounts of Holders shall be reduced pro
rata (according to the number of Registrable Securities proposed for registration)
to the extent necessary to reduce the total amount of securities to be included in
such offering to the amount recommended by such managing Underwriter or
Underwriters; provided that, in the case of a Piggy-Back Registration, if securities
are being offered for the account of other Persons as well as the Company, then with
respect to the Registrable Securities intended to be offered by Holders, the
proportion by which the amount of such class of securities intended to be offered by
Holders is reduced shall not exceed the proportion by which the amount of such class
of securities intended to be offered by such other Persons is reduced; and

     (B) if the combination of securities to be offered is the basis of such
Underwriter’s opinion, (x) the Registrable Securities to be included in such
offering shall be reduced as described in clause (A) above (subject to the proviso
in clause (A)) or (y) if the actions described in clause (x) would, in the
judgment of the managing Underwriter, be insufficient to substantially eliminate the
adverse effect that inclusion of the Registrable Securities requested to be included
would have on such offering, such Registrable Securities will be excluded from such
offering.

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     Section 2.5 Registration Procedures; Filings; Information. In connection with any Shelf Registration Statement under Section 2.1 or
whenever Holders request that any Registrable Securities be registered pursuant to Section 2.2
hereof, the Company will use its best efforts to effect the registration and the sale of such
Registrable Securities in accordance with the intended method of disposition thereof as quickly as
practicable, and in connection with any such request:

     (a) The Company will as expeditiously as possible prepare and file with the Commission
a registration statement on any form for which the Company then qualifies or which counsel
for the Company shall deem appropriate and which form shall be available for the sale of the
Registrable Securities to be registered thereunder in accordance with the intended method of
distribution thereof, and use its best efforts to cause such filed registration statement to
become and remain effective for a period of not less than 270 days; provided that if the
Company shall furnish to the Holders making a request pursuant to Section 2.2 a certificate
signed by either its Chairman, Chief Executive Officer or President stating that in his or
her good faith judgment it would be significantly disadvantageous to the Company or its
shareholders for such a registration statement to be filed as expeditiously as possible, the
Company shall have a period of not more than 180 days within which to file such registration
statement measured from the date of receipt of the request in accordance with Section 2.2.

     (b) The Company will, if requested, prior to filing a registration statement or
prospectus or any amendment or supplement thereto, furnish to each Selling Holder and each
Underwriter, if any, of the Registrable Securities covered by such registration statement
copies of such registration statement as proposed to be filed, and thereafter furnish to
such Selling Holder and Underwriter, if any, such number of conformed copies of such
registration statement, each amendment and supplement thereto (in each case including all
exhibits thereto and documents incorporated by reference therein), the prospectus included
in such registration statement (including each preliminary prospectus) and such other
documents as such Selling Holder or Underwriter may reasonably request to facilitate the
disposition of the Registrable Securities owned by such Selling Holder.

     (c) After the filing of the registration statement, the Company will promptly notify
each Selling Holder of Registrable Securities covered by such registration statement of any
stop order issued or threatened by the Commission and take all reasonable actions required
to prevent the entry of such stop order or to remove it if entered.

     (d) The Company will use its best efforts to (i) register or qualify the Registrable
Securities under such other securities or blue sky laws of such jurisdictions in the United
States (where an exemption does not apply) as any Selling Holder or managing Underwriter or
Underwriters, if any, reasonably (in light of such Selling Holder’s intended plan of
distribution) requests and (ii) cause such Registrable Securities to be registered with or
approved by such other governmental agencies or authorities as may be necessary by virtue of
the business and operations of the Company and do any and all other acts and things that may
be reasonably necessary or advisable to enable such Selling Holder to consummate the
disposition of the Registrable Securities owned by

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such Selling Holder; provided that the
Company will not be required to (A) qualify generally to do business in any jurisdiction
where it would not otherwise be required to qualify but for this paragraph (d), (B) subject
itself to taxation in any such jurisdiction or (C) consent to general service of process in
any such jurisdiction.

     (e) The Company will immediately notify each Selling Holder of such Registrable
Securities, at any time when a prospectus relating thereto is required to be delivered under
the Securities Act, of the occurrence of an event requiring the preparation of a supplement
or amendment to such prospectus so that, as thereafter delivered to the purchasers of such
Registrable Securities, such prospectus will not contain an untrue statement of a material
fact or omit to state any material fact required to be stated therein or necessary to make
the statements therein, in light of the circumstances under which they were made, not
misleading and promptly make available to each Selling Holder any such supplement or
amendment.

     (f) The Company will enter into customary agreements (including an underwriting
agreement, if any, in customary form) and take such other actions as are reasonably required
to expedite or facilitate the disposition of such Registrable Securities.

     (g) The Company will make available for inspection by any Selling Holder of such
Registrable Securities, any Underwriter participating in any disposition pursuant to such
registration statement and any attorney, accountant or other professional retained by any
such Selling Holder or Underwriter (collectively, the “Inspectors”), all financial and other
records, pertinent corporate documents and properties of the Company (collectively, the
“Records”) as shall be reasonably necessary to enable them to exercise their due diligence
responsibility, and cause the Company’s officers, directors and employees to supply all
information reasonably requested by any Inspectors in connection with such registration
statement. Records which the Company determines, in good faith, to be confidential and
which it notifies the Inspectors are confidential shall not be disclosed by the Inspectors
unless (i) the disclosure of such Records is necessary to avoid or correct a misstatement or
omission in such registration statement or (ii) the release of such Records is ordered
pursuant to a subpoena or other order from a court of competent jurisdiction. Each Selling
Holder of such Registrable Securities agrees that information obtained by it as a result of
such inspections shall be deemed confidential and shall not be used by it as the basis for
any market transactions in the securities of the Company unless and until such is made
generally available to the public. Each Selling Holder of such Registrable Securities
further agrees that it will, upon learning that disclosure of such Records is sought in a
court of competent jurisdiction, give notice to the Company and allow the Company, at its expense, to undertake appropriate action to
prevent disclosure of the Records deemed confidential.

     (h) The Company will furnish to each Selling Holder and to each Underwriter, if any, a
signed counterpart, addressed to such Selling Holder or Underwriter, of (i) an opinion or
opinions of counsel to the Company and (ii) if eligible under SAS 100, a comfort letter or
comfort letters from the Company’s independent public accountants, each in customary form
and covering such matters of the type customarily covered by opinions or comfort letters, as
the case may be, as the Holders of a majority of the

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Registrable Securities included in such
offering or the managing Underwriter or Underwriters therefor reasonably requests.

     (i) The Company will otherwise comply with all applicable rules and regulations of the
Commission, and make available to its securityholders, as soon as reasonably practicable, an
earnings statement covering a period of 12 months, beginning within three months after the
effective date of the registration statement, which earnings statement shall satisfy the
provisions of Section 11(a) of the Securities Act and Rule 158 of the Commission promulgated
thereunder (or any successor rule or regulation hereafter adopted by the Commission).

     (j) The Company will use its best efforts to cause all such Registrable Securities to
be listed on each securities exchange on which similar securities issued by the Company are
then listed.

     The Company may require each Selling Holder of Registrable Securities to promptly furnish in
writing to the Company such information regarding such Selling Holder, the Registrable Securities
held by it and the intended method of distribution of the Registrable Securities as the Company may
from time to time reasonably request and such other information as may be legally required in
connection with such registration.

     Each Selling Holder agrees that, upon receipt of any notice from the Company of the happening
of any event of the kind described in Section 2.5(e) hereof, such Selling Holder will forthwith
discontinue disposition of Registrable Securities pursuant to the registration statement covering
such Registrable Securities until such Selling Holder’s receipt of the copies of the supplemented
or amended prospectus contemplated by Section 2.5(e) hereof, and, if so directed by the Company,
such Selling Holder will deliver to the Company all copies, other than permanent file copies then
in such Selling Holder’s possession, of the most recent prospectus covering such Registrable
Securities at the time of receipt of such notice. Each Selling Holder of Registrable Securities
agrees that it will immediately notify the Company at any time when a prospectus relating to the
registration of such Registrable Securities is required to be delivered under the Securities Act of
the happening of an event as a result of which information previously furnished by such Selling
Holder to the Company in writing expressly for inclusion in such prospectus contains an untrue
statement of a material fact or omits to state any material fact required to be stated therein or
necessary to make the statements therein not misleading in light of the circumstances in which they
were made. In the event the Company shall give such notice, the Company shall extend the period
during which such registration statement shall be maintained effective (including the period
referred to in Section 2.5(a) hereof) by the number of
days during the period from and including the date of the giving of notice pursuant to Section
2.5(e) hereof to the date when the Company shall make available to the Selling Holders of
Registrable Securities covered by such registration statement a prospectus supplemented or amended
to conform with the requirements of Section 2.5(e) hereof.

     Section 2.6 Registration Expenses. In connection with any registration statement required to be filed hereunder, the Company shall pay
the following registration expenses incurred in connection with the registration hereunder (the
“Registration Expenses”): (i) all registration and filing fees, (ii) fees and expenses of
compliance with securities or blue sky laws

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(including reasonable fees and disbursements of counsel
in connection with blue sky qualifications of the Registrable Securities), (iii) printing expenses,
(iv) internal expenses (including, without limitation, all salaries and expenses of its officers
and employees performing legal or accounting duties), (v) the fees and expenses incurred in
connection with the listing of the Registrable Securities, (vi) reasonable fees and disbursements
of counsel for the Company and customary fees and expenses for independent certified public
accountants retained by the Company (including the expenses of any comfort letters or costs
associated with the delivery by independent certified public accountants of a comfort letter or
comfort letters requested pursuant to Section 2.5(h) hereof), and (vii) the reasonable fees and
expenses of any special experts retained by the Company in connection with such registration. The
Company shall have no obligation to pay any underwriting fees, discounts or commissions
attributable to the sale of Registrable Securities, or any out-of-pocket expenses of the Holders
(or the agents who manage their accounts) or any transfer taxes relating to the registration or
sale of the Registrable Securities.

     Section 2.7 Indemnification by the Company. The Company agrees to indemnify and hold harmless each Selling Holder of Registrable
Securities, its officers, directors and agents, and each Person, if any, who controls such Selling
Holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act
from and against any and all losses, claims, damages and liabilities caused by any untrue statement
or alleged untrue statement of a material fact contained in any registration statement or
prospectus relating to the Registrable Securities (as amended or supplemented if the Company shall
have furnished any amendments or supplements thereto) or any preliminary prospectus, or caused by
any omission or alleged omission to state therein a material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under which they were made,
not misleading, except insofar as such losses, claims, damages or liabilities are caused by any
such untrue statement or omission or alleged untrue statement or omission based upon information
furnished in writing to the Company by such Selling Holder or on such Selling Holder’s behalf
expressly for inclusion therein. The Company also agrees to indemnify any Underwriters of the
Registrable Securities, their officers and directors and each Person who controls such underwriters
within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act on
substantially the same basis as that of the indemnification of the Selling Holders provided in this
Section 2.7, provided that the foregoing indemnity with respect to any preliminary prospectus shall
not inure to the benefit of any Underwriter of the Registrable Securities from whom the person
asserting any such losses, claims, damages or liabilities purchased the Registrable Securities
which are the subject thereof if such person did not receive
a copy of the prospectus (or the prospectus as supplemented) at or prior to the confirmation
of the sale of such Registrable Securities to such person in any case where such delivery is
required by the Securities Act and the untrue statement or omission of a material fact contained in
such preliminary prospectus was corrected in the prospectus (or the prospectus as supplemented).
The indemnity provided for in this Section 2.8 shall remain in full force and effect regardless of
any investigation made by or on behalf of any Selling Holder.

     Section 2.8 Indemnification by Holders of Registrable Securities.

     Each Selling Holder agrees, severally but not jointly, to indemnify and hold harmless the
Company, its officers, directors and agents and each Person, if any, who controls the Company

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within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act to
the same extent as the foregoing indemnity from the Company to such Selling Holder, but only with
respect to information relating to such Selling Holder furnished in writing by such Selling Holder
or on such Selling Holder’s behalf expressly for use in any registration statement or prospectus
relating to the Registrable Securities, or any amendment or supplement thereto, or any preliminary
prospectus. In case any action or proceeding shall be brought against the Company or its officers,
directors or agents or any such controlling person, in respect of which indemnity may be sought
against such Selling Holder, such Selling Holder shall have the rights and duties given to the
Company, and the Company or its officers, directors or agents or such controlling person shall have
the rights and duties given to such Selling Holder, by Section 2.7. Each Selling Holder also
agrees to indemnify and hold harmless Underwriters of the Registrable Securities, their officers
and directors and each Person who controls such Underwriters within the meaning of Section 15 of
the Securities Act or Section 20 of the Exchange Act on substantially the same basis as that of the
indemnification of the Company provided in this Section 2.8. The liability of any Selling Holder
pursuant to this Section 2.8 may, in no event, exceed the net proceeds received by such Selling
Holder from sales of Registrable Securities giving rise to the indemnification obligations of such
Selling Holder.

     Section 2.9 Conduct of Indemnification Proceedings. In case any proceeding (including any governmental investigation) shall be
instituted involving any person in respect of which indemnity may be sought pursuant to Section 2.7
or 2.8, such person (an “Indemnified Party”) shall promptly notify the person against whom such
indemnity may be sought (an “Indemnifying Party”) in writing and the Indemnifying Party shall
assume the defense thereof, including the employment of counsel reasonably satisfactory to such
Indemnified Party, and shall assume the payment of all fees and expenses. In any such proceeding,
any Indemnified Party shall have the right to retain its own counsel, but the fees and expenses of
such counsel shall be at the expense of such Indemnified Party unless (i) the Indemnifying Party
and the Indemnified Party shall have mutually agreed to the retention of such counsel or (ii) the
named parties to any such proceeding (including any impleaded parties) include both the Indemnified
Party and the Indemnifying Party and representation of both parties by the same counsel would be
inappropriate due to actual or potential differing interests between them. It is understood that
the Indemnifying Party shall not, in connection with any proceeding or related proceedings in the
same jurisdiction, be liable for the reasonable fees and expenses of
more than one separate firm of attorneys (in addition to any local counsel) at any time for
all such Indemnified Parties, and that all such fees and expenses shall be reimbursed as they are
incurred. In the case of any such separate firm for the Indemnified Parties, such firm shall be
designated in writing by (i) in the case of Persons indemnified pursuant to Section 2.7 hereof, the
Selling Holders which owned a majority of the Registrable Securities sold under the applicable
registration statement and (ii) in the case of Persons indemnified pursuant to Section 2.8, the
Company. The Indemnifying Party shall not be liable for any settlement of any proceeding effected
without its written consent, but if settled with such consent, or if there be a final judgment for
the plaintiff, the Indemnifying Party shall indemnify and hold harmless such Indemnified Parties
from and against any loss or liability (to the extent stated above) by reason of such settlement or
judgment. Notwithstanding the foregoing sentence, if at any time an Indemnified Party shall have
requested an Indemnifying Party to reimburse the Indemnified Party for fees and expenses of counsel
as contemplated by the third sentence of this paragraph, the Indemnifying Party agrees that it
shall be liable for any settlement of any proceeding effected without its written consent if (i)
such settlement is entered

-11-

 

into more than 30 Business Days after receipt by such Indemnifying Party
of the aforesaid request and (ii) such Indemnifying Party shall not have reimbursed the Indemnified
Party in accordance with such request prior to the date of such settlement. No Indemnifying Party
shall, without the prior written consent of the Indemnified Party, effect any settlement of any
pending or threatened proceeding in respect of which any Indemnified Party is or could have been a
party and indemnity could have been sought hereunder by such Indemnified Party, unless such
settlement includes an unconditional release of such Indemnified Party from all liability arising
out of such proceeding.

     Section 2.10 Contribution. If the indemnification provided for in Section 2.7 or 2.8 hereof is unavailable to an Indemnified Party or
insufficient in respect of any losses, claims, damages or liabilities referred to herein, then each
such Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the
amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or
liabilities (i) as between the Company and the Selling Holders on the one hand and the Underwriters
on the other, in such proportion as is appropriate to reflect the relative benefits received by the
Company and the Selling Holders on the one hand and the Underwriters on the other from the offering
of the securities, or if such allocation is not permitted by applicable law, in such proportion as
is appropriate to reflect not only the relative benefits but also the relative fault of the Company
and the Selling Holders on the one hand and of the Underwriters on the other in connection with the
statements or omissions which resulted in such losses, claims, damages or liabilities, as well as
any other relevant equitable considerations and (ii) between the Company on the one hand and each
Selling Holder on the other, in such proportion as is appropriate to reflect the relative fault of
the Company and of each Selling Holder in connection with such statements or omissions which
resulted in such losses, claims, damages or liabilities, as well as any other relevant equitable
considerations. The relative benefits received by the Company and the Selling Holders on the one
hand and the Underwriters on the other shall be deemed to be in the same proportion as the total
proceeds from the offering (net of underwriting discounts and commissions but before deducting
expenses) received by the Company and the Selling Holders bear to the total underwriting discounts
and commissions received by the Underwriters, in each case as set forth in the table on the cover
page of the prospectus. The relative fault of the Company and the Selling Holders on the one hand
and of the Underwriters on the other shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or the omission or alleged omission to
state a material fact relates to information supplied by the Company and the Selling Holders or by
the Underwriters. The relative fault of the Company on the one hand and of each Selling Holder on
the other shall be determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state a material fact
relates to information supplied by such party, and the parties’ relative intent, knowledge, access
to information and opportunity to correct or prevent such statement or omission.

     The Company and the Selling Holders agree that it would not be just and equitable if
contribution pursuant to this Section 2.10 were determined by pro rata allocation (even if the
Underwriters were treated as one entity for such purpose) or by any other method of allocation
which does not take account of the equitable considerations referred to in the immediately
preceding paragraph. The amount paid or payable by an Indemnified Party as a result of the losses,
claims, damages or liabilities referred to in the immediately preceding paragraph shall be

-12-

 

deemed
to include, subject to the limitations set forth above, any legal or other expenses reasonably
incurred by such Indemnified Party in connection with investigating or defending any such action or
claim. Notwithstanding the provisions of this Section 2.10, no Underwriter shall be required to
contribute any amount in excess of the amount by which the total commissions and discounts received
by such Underwriter in connection with the sale of the securities underwritten by it and
distributed to the public exceeds the amount of any damages which such Underwriter has otherwise
been required to pay by reason of such untrue or alleged untrue statement or omission or alleged
omission, and no Selling Holder shall be required to contribute any amount in excess of the amount
by which the net proceeds from the sale of the securities of such Selling Holder to the public
exceeds the amount of any damages which such Selling Holder has otherwise been required to pay by
reason of such untrue or alleged untrue statement or omission or alleged omission. No person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation. The Selling Holder’s obligations to contribute pursuant to this Section 2.10
are several in proportion to the net proceeds of the offering received by such Selling Holder bears
to the total net proceeds of the offering received by all the Selling Holders and not joint.

     Section 2.11 Participation in Underwritten Registrations. No Person may participate in any underwritten registration hereunder
unless such Person (a) agrees to sell such Person’s securities on the basis provided in any
underwriting arrangements approved by the Persons entitled hereunder to approve such arrangements
and (b) completes and executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents reasonably required under the terms of such underwriting
arrangements and these registration rights provided for in this Article II.

     Section 2.12 Rule 144 . The Company covenants that it will file any reports required to be filed by it under the Securities Act and the
Exchange Act and that it will take such further action as any Holder may
reasonably request, all to the extent required from time to time to enable Holders to sell
Registrable Securities without registration under the Securities Act within the limitation of the
exemptions provided by (a) Rule 144 under the Securities Act, as such rule may be amended from time
to time, or (b) any similar rule or regulation hereafter adopted by the Commission. Upon the
request of any Holder, the Company will deliver to such Holder a written statement as to whether it
has complied with such requirements.

     Section 2.13 Holdback Agreements.

     (a) Restrictions on Public Sale by Holder of Registrable Securities. To the extent
not inconsistent with applicable law and except with respect to a Shelf Registration, each Holder
whose securities are included in a registration statement agrees not to effect any sale or
distribution of the issue being registered or a similar security of the Company, or any securities
convertible into or exchangeable or exercisable for such securities, including a sale pursuant to
Rule 144 under the Securities Act, during the 14 days prior to, and during the 90-day period
beginning on, the effective date of such registration statement (except as part of such
registration), if and to the extent requested in writing by the Company in the case of a
non-underwritten public offering or if and to the extent requested in writing by the managing
Underwriter or Underwriters in the case of an underwritten public offering.

-13-

 

     (b) Restrictions on Public Sale by the Company and Others. The Company agrees that
any agreement entered into after the date of this Agreement pursuant to which the Company issues or
agrees to issue any privately placed securities shall contain a provision under which holders of
such securities agree not to effect any sale or distribution of any securities similar to those
being registered in accordance with Section 2.2 or Section 2.3 hereof, or any securities
convertible into or exchangeable or exercisable for such securities, during the 14 days prior to,
and during the 90-day period beginning on, the effective date of any registration statement (except
as part of such registration statement where the Holders of a majority of the Registrable
Securities to be included in such registration statement consent or as part of registration
statements filed as set forth in Section 2.3(i) or (iii)), if and to the extent requested in
writing by the Company in the case of a non-underwritten public offering or if and to the extent
requested in writing by the managing Underwriter or Underwriters in the case of an underwritten
public offering, in each case including a sale pursuant to Rule 144 under the Securities Act
(except as part of any such registration, if permitted); provided, however, that the provisions of
this paragraph (b) shall not prevent the conversion or exchange of any securities pursuant to their
terms into or for other securities.

     (c) Temporary Suspension of Rights to Sell Based on Confidential Information. If the
Company determines in its good faith judgment that the filing of the Shelf Registration Statement
under Section 2.1 or a Demand Registration under Section 2.2 hereof or the use of any related
prospectus would require the disclosure of material information that the Company has a bona fide
business purpose for preserving as confidential or the disclosure of which would impede the
Company’s ability to consummate a significant transaction, and that the Company is not otherwise
required by applicable securities laws or regulations to disclose, upon written notice of such
determination by the Company, the rights of the Holders to offer, sell or distribute
any Registrable Securities pursuant to the Shelf Registration Statement or a Demand
Registration or to require the Company to take action with respect to the registration or sale of
any Registrable Securities pursuant to the Shelf Registration Statement or a Demand Registration
shall be suspended until the earlier of (i) the date upon which the Company notifies the Holders in
writing that suspension of such rights for the grounds set forth in this Section 2.12(c) is no
longer necessary and (ii) 180 days. The Company agrees to give such notice as promptly as
practicable following the date that such suspension of rights is no longer necessary. Nothing in
this Section 2.12(c) shall prevent a Holder from offering, selling or distributing pursuant to Rule
144 at any time.

     (d) Temporary Suspension of Rights to Sell Based on Exchange Act Reports not yet Filed or
Regulation S-X. If all reports required to be filed by the Company pursuant to the Exchange
Act have not been filed by the required date without regard to any extension, or if the
consummation of any business combination by the Company has occurred or is probable for purposes of
Rule 3-05 or Article 11 of Regulation S-X under the Act, upon written notice thereof by the Company
to the Holders, the rights of the Holders to offer, sell or distribute any Registrable Securities
pursuant to the Shelf Registration Statement or a Demand Registration or to require the Company to
take action with respect to the registration or sale of any Registrable Securities pursuant to the
Shelf Registration Statement or a Demand Registration shall be suspended until the date on which
the Company has filed such reports or obtained and filed the financial information required by Rule
3-05 or Article 11 of Regulation S-X to be included or incorporated by reference, as applicable, in
the Shelf Registration Statement, and the Company

-14-

 

shall notify the Holders as promptly as
practicable when such suspension is no longer required. Nothing in this Section 2.12(d) shall
prevent a Holder from offering, selling or distributing pursuant to Rule 144 at any time.

ARTICLE III

MISCELLANEOUS

     Section 3.1 New York Stock Exchange Listing. In the event that the Company shall issue any Common Stock in exchange for OP Units
pursuant to Section 7.4 of the Partnership Agreement, then in any such case the Company agrees to
cause any such shares of Common Stock to be listed on the New York Stock Exchange prior to or
concurrently with the issuance thereof by the Company.

     Section 3.2 Remedies. In addition
to being entitled to exercise all rights provided herein and granted by law, including recovery of
damages, the Holders shall be entitled to specific performance of the rights under this Agreement.
The Company agrees that monetary damages would not be adequate compensation for any loss incurred
by reason of a breach by it of the provisions of this Agreement and hereby agrees to waive the
defense in any action for specific performance that a remedy at law would be adequate.

     Section 3.3 Amendments and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended,
modified or supplemented, and waivers or consents to departures from the provisions hereof may not
be given, in each case without the written consent of the Company and the Holders of a majority of
the Registrable Securities. No failure or delay by any party to insist upon the strict performance
of any covenant, duty, agreement or condition of this Agreement or to exercise any right or remedy
consequent upon any breach thereof shall constitute waiver of any such breach or any other
covenant, duty, agreement or condition.

     Section 3.4 Notices. All notices
and other communications in connection with this Agreement shall be made in writing by hand
delivery, registered first-class mail, telex, telecopier, or air courier guaranteeing overnight
delivery to the address set forth on the signature page hereto, or to such other address and to
such other Persons as any party hereto may hereafter specify in writing.

     All such notices and communications shall be deemed to have been duly given: at the time
delivered by hand, if personally delivered; when received if deposited in the mail, postage
prepaid, if mailed; when answered back, if telexed; when receipt acknowledged, if telecopied; and
on the next business day, if timely delivered to an air courier guaranteeing overnight delivery.

     Section 3.5 Successors and Assigns. Except as expressly provided in this Agreement the rights and obligations of the Initial Holders
under this Agreement shall not be assignable by any Initial Holder to any Person that is not an
Initial Holder. This Agreement shall be binding upon the parties hereto and their respective
successors and assigns.

     Section 3.6 Counterparts . This
Agreement may be executed in any number of counterparts and by the parties hereto in separate
counterparts, each of which when so executed

-15-

 

shall be deemed to be an original and all of which
taken together shall constitute one and the same agreement. Each party shall become bound by this
Agreement immediately upon affixing its signature hereto.

     Section 3.7 Governing Law. This
Agreement shall be governed by and construed in accordance with the internal laws of the State of
Texas without regard to the choice of law provisions thereof.

     Section 3.8 Severability . In the
event that any one or more of the provisions contained herein, or the application thereof in any
circumstance, is held invalid, illegal or unenforceable, the validity, legality and enforceability
of any such provision in every other respect and of the remaining provisions contained herein shall
not be affected or impaired thereby.

     Section 3.9 Entire Agreement. This
Agreement is intended by the parties as a final expression of their agreement and intended to be a
complete and exclusive statement of the agreement and understanding of the parties hereto in
respect of the subject matter contained herein. There are no restrictions, promises, warranties or
undertakings, other than those set forth or referred to herein with respect to the registration
rights granted by the Company with respect to the Registrable Securities. This Agreement
supersedes all prior agreements and understandings between the parties with respect to such subject
matter.

     Section 3.10 Headings. The headings
in this Agreement are for convenience of reference only and shall not limit or otherwise affect the
meaning hereof.

     Section 3.11 No Third Party Beneficiaries.Nothing express or implied herein is intended or shall be construed to confer upon any
person or entity, other than the parties hereto and their respective successors and assigns, any
rights, remedies or other benefits under or by reason of this Agreement.

-16-

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
written above.

 

 

	 	 	 	 	 
	 	 	COMPANY:
	 
	 	 	 	 
	 	 	ASHFORD HOSPITALITY TRUST, INC.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Montgomery J. Bennett
	

	 	 	 	 
	

	 	 	 	     Montgomery J. Bennett, President

	 	 	 	 	 	 	 
	 	 	Address:	 	 
	 	 	14180 Dallas Parkway, 9th Floor
	 	 	Dallas, TX 75254
	 
	 	 	 	 	 	 
	 	 	UNIT HOLDERS:
	 
	 	 	 	 	 	 
	 	 	REMINGTON SUITES AUSTIN, L.P.
	 
	 	 	 	 	 	 
	 	 	By:	 	Remington Suites Austin, Inc.,
its general partner
	 
	 	 	 	 	 	 
	

	 	 	 	By:
	 	/s/ Montgomery J. Bennett
	

	 	 	 	 	 	 
	

	 	 	 	 	 	Montgomery J. Bennett
	

	 	 	 	 	 	Executive Vice President

	 	 	 	 	 	 	 
	 	 	Address:
	 	 	14180 Dallas Parkway, 7th Floor
	 	 	Dallas, TX 75254
	 
	 	 	 	 	 	 
	 	 	REMINGTON SUITES DALLAS, L.P.
	 
	 	 	 	 	 	 
	 	 	By:	 	Remington Suites Dallas, Inc.,
its general partner
	 
	 	 	 	 	 	 
	

	 	 	 	By:
	 	/s/ Montgomery J. Bennett
	

	 	 	 	 	 	 
	

	 	 	 	 	 	Montgomery J. Bennett
	

	 	 	 	 	 	Executive Vice President
	 
	 	 	 	 	 	 
	 	 	Address:
	 	 	14180 Dallas Parkway, 7th Floor

	 	 	Dallas, TX 75254

 

 

	 	 	 	 	 
	 	 	REMINGTON SUITES DULLES, L.P.
	 
	 	 	 	 
	

	 	By:
	 	Remington Suites Dulles, Inc.,
	

	 	 	 	its general partner
	 
	 	 	 	 
	

	 	     By:
	 	  /s/ Montgomery J. Bennett
	

	 	 	 	 
	

	 	 	 	  Montgomery J. Bennett
	

	 	 	 	  Executive Vice President
	 
	 	 	 	 
	 	 	Address:
	 	 	14180 Dallas Parkway, 7th Floor

Dallas, TX 75254
	 
	 	 	 	 
	 	 	REMINGTON SUITES LAS VEGAS, L.P.
	 
	 	 	 	 
	

	 	By:
	 	Remington Suites Las Vegas, Inc.,

its general partner
	 
	 	 	 	 
	

	 	     By:
	 	  /s/ Montgomery J. Bennett
	

	 	 	 	 
	

	 	 	 	  Montgomery J. Bennett
	

	 	 	 	  Executive Vice President
	 
	 	 	 	 
	 	 	Address:
	 	 	14180 Dallas Parkway, 7th Floor

Dallas, TX 75254

 

 

	 	 	 	 	 
	 	 	CHICAGO ILLINOIS HOTEL LIMITED PARTNERSHIP
	 
	 	 	 	 
	

	 	By:
	 	Illinois Hotel II Corp.,
	

	 	 	 	its general partner
	 
	 	 	 	 
	

	 	     By:
	 	  /s/ Montgomery J. Bennett
	

	 	 	 	 
	

	 	 	 	  Montgomery J. Bennett
	

	 	 	 	  Vice President
	 
	 	 	 	 
	 	 	Address:
	 	 	14180 Dallas Parkway, 7th Floor

Dallas, TX 75254
	 
	 	 	 	 
	 	 	ASHFORD FINANCIAL CORPORATION
	 
	 	 	 	 
	

	 	By:
	 	  /s/ David Kimichik
	

	 	 	 	 
	

	 	 	 	  David Kimichik
	

	 	 	 	  President
	 
	 	 	 	 
	 	 	Address:
	 	 	14180 Dallas Parkway, 9th Floor

Dallas, TX 75254

 

 

	 	 	 	 	 
	 	 	RESTRICTED STOCKHOLDERS:
	 
	 	 	 	 
	 	 	REMINGTON LONG ISLAND HOTEL, L.P.
	 
	 	 	 	 
	

	 	By:
	 	Remington Long Island Hotel Corp.
	

	 	 	 	its general partner
	 
	 	 	 	 
	

	 	     By:
	 	  /s/ Montgomery J. Bennett
	

	 	 	 	 
	

	 	 	 	  Montgomery J. Bennett
	

	 	 	 	  President
	 
	 	 	 	 
	 	 	Address:
	 	 	14180 Dallas Parkway, 7th Floor

Dallas, TX 75254
	 
	 	 	 	 
	 	 	FRIEDMAN BILLINGS RAMSEY & CO., INC.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Eric Billings
	

	 	 	 	 
	

	 	Name:
	 	Eric Billings
	

	 	Title:
	 	Co Chairman & Co CEO
	 
	 	 	 	 
	 	 	Address:
	 	 	1001 9th Street North

Arlington, VA 22209
	 
	 	 	 	 
	 	 	/s/ Archie Bennett
	 	 	 
	 	 	Archie Bennett, individually
	 
	 	 	 	 
	 	 	Address:
	 	 	14180 Dallas Parkway, 7th Floor

Dallas, TX 75254

 

 

	 	 	 	 	 
	 	 	/s/ Montgomery J. Bennett
	 	 	 
	 	 	Montgomery J. Bennett, individually
	 
	 	 	 	 
	 	 	Address:
	 	 	14180 Dallas Parkway, 7th Floor

Dallas, TX 75254<PAGE>

                                                                    EXHIBIT 10.1

                             AREA LICENSE AGREEMENT

         THIS AREA LICENSE AGREEMENT (this "Agreement") is made and entered into
by and between Southwest Convenience Stores, Inc., a Texas corporation
("Licensee"), and The Southland Corporation, a Texas corporation ("Southland").

         WHEREAS, Southland has developed a unique system for the
identification, fixturization, layout, merchandising, and operation of
extended-hour retail stores, identified principally by the trade name and mark
"7-Eleven(R)" ("7-Eleven Stores"), providing groceries, take-out foods and
beverages, dairy products, nonfood merchandise, specialty items and various
services, and emphasizing convenience to the consumer ("Convenience Stores"),
which system (not to be construed to include Southland's distribution system and
electronic data processing programs and procedures relating thereto or Southland
operations other than Convenience Stores) has been and is being continually
refined and modified by Southland based on experience and/or new marketing
developments to meet and serve the changing preferences of the consumer (the
"7-Eleven System"); and

         WHEREAS, Southland has achieved extensive public acceptance of, and a
favorable reputation and extensive good will throughout the United States and
elsewhere for, the Trademarks (as defined in subsection A of Section I) and
7-Eleven Stores operated pursuant to the 7-Eleven System (the "7-Eleven Image");
and

         WHEREAS, Licensee, recognizing the advantages of the 7-Eleven System,
is desirous of acquiring from Southland (i) a license to use the 7-Eleven
System, Trade Secrets (as defined in paragraph (1) of subsection B of Section
VI) and Trademarks in connection with its operation, and/or individual by
franchising single stores to its independent sublicensees ("Sublicensees"), of
7-Eleven Stores in the territory (the "Licensed Territory") described in Exhibit
A, attached hereto, and (ii) the various services described herein (the
"Services");

         NOW THEREFORE, in consideration of the terms, representations,
warranties, covenants, promises, and conditions contained in this Agreement,
Licensee agrees with Southland as follows:

SECTION I. LICENSE.

         A. Southland, for the consideration herein provided and commencing on
the Effective Date hereof (as defined below) and continuing until terminated as
provided herein, hereby grants Licensee, solely in the Licensed Territory, and
pursuant to the terms, representations, warranties, covenants, restrictions and
conditions contained in this Agreement the following:

                  (1) the License, which shall be an exclusive right and limited
license solely in the Licensed Territory to operate, or individually franchise
to Sublicensees, Convenience Stores under the 7-Eleven System; and

<PAGE>

                  (2) except as otherwise provided in subsection C of Section
VI, the exclusive right and limited license to use, solely in the Licensed
Territory and in conjunction with Licensee's operations under and to the extent
set forth in this Agreement, the 7-Eleven System, Trade Secrets, and the trade
name and mark "7-Eleven," or such variation thereof or such other mark as may be
allowed hereby; and

                  (3) the nonexclusive right to use solely in the Licensed
Territory such other related or ancillary trademarks, trade names, copyrights,
emblems, designs, labels, signs, and symbols belonging to Southland and
appearing in 7-Eleven Stores, or on products or services arranged by or
available from Southland, as Southland may from time to time make available to
Licensee ((2) and (3) collectively referred to herein as the "Trademarks").

         Only those parts of Southland's business system for the operation of
convenience stores is included in this license, and the other systems developed
by, or to be developed by Southland and/or its affiliates, are not included in
this license, but may be offered under separate license by Southland, in its
sole discretion, or if such systems are obtained separately by the Licensee,
they must conform to the type, quality, quantity and variety of goods and
services provided by 7-Eleven Stores pursuant to the 7-Eleven Image. The parties
acknowledge that the accounting system, electronic data processing system and
any point-of-sale systems are not part of Southland's business system licensed
hereunder. As to the Trademarks and the systems referred to in this and the
preceding paragraph, nothing in this Agreement shall require Licensee to
license, take or utilize such Trademarks and systems in the three (3) Truck
Stops and seven (7) Merit Stores listed on Exhibit B attached hereto. The
convenience stores to be initially included and covered by this Agreement as of
the Effective Date consist of 150 stores listed and described on Exhibit C
attached hereto.

         The exclusive grant of the right to use the trade name and service mark
"7-Eleven" is only in conjunction with Licensee's operation of convenience
stores hereunder and such grant does not preclude Southland from licensing the
use of the trade name and mark "7-Eleven" in connection with other nonrelated
businesses in the Licensed Territory.

         B. Licensee hereby acknowledges that:

                  (1) "7-Eleven" is a valid registered mark owned by Southland;

                  (2) Southland is the sole and exclusive owner of the
Trademarks, the 7-Eleven Image, and valuable goodwill attached thereto, the
Trade Secrets and the 7-Eleven System;

                  (3) Southland's rights in the mark "7-Eleven" and to the
7-Eleven System and Trademarks are not limited to the specific configuration of
the mark as presented in present registrations or applications, but rather
extend, as to "7-Eleven," to all combinations of the word or numeral "7" and the
word or numeral "Eleven," in any language, when the combination is used in any
way as a trade or product identification or indicia of origin or sponsorship;

                                       2
<PAGE>

                  (4) Southland's rights in the Trademarks are not limited to
the aforesaid registrations or applications, as extensive common law rights are
vested in Southland as a result of its long continuing, widespread and
successful use of the mark "7-Eleven" and other Trademarks in the United States
and elsewhere;

                  (5) Southland and its franchisees, registered users, licensees
and sublicensees have the sole right to use the Trademarks, Trade Secrets,
and/or 7-Eleven System;

                  (6) Southland has by this Agreement licensed to Licensee the
use of the Trademarks, Trade Secrets and the 7-Eleven System;

                  (7) any usage of the Trademarks, Trade Secrets and/or 7-Eleven
System by Licensee, its Sublicensees or anyone on Licensee's behalf pursuant to
this Agreement (or otherwise, even though such action is a breach of this
Agreement), will inure to the benefit of Southland.

                  (8) that the Trade Secrets and business system information it
is obtaining pursuant to this License Agreement is in addition to any skills it
and its personnel currently have and is in addition to customary or usual skills
generally possessed in the business and retail community;

                  (9) that the obtaining of such Trade Secrets and business
system information, in addition to the grant or right to the use of the
Trademark, is an inducement for it to enter into this License Agreement; and

                  (10) that the 7-Eleven System is a constantly evolving system
and that the 7-Eleven Image may change as the system evolves and, therefore,
Licensee agrees that it shall make such changes in its operation, including
remodeling of stores, as may be reasonably necessary to keep its operation up to
date with the current 7-Eleven System, which shall include, but not be limited
to the interior/exterior signage, color identification and equipment
specifications.

         C. Licensee will not use, and will not permit or cause the use of, at
any time, the Trademarks, 7-Eleven System, or Trade Secrets, except in the
manner and to the extent specifically licensed to Licensee by this Agreement.
Such use hereunder will accurately portray the Trademarks and will not
jeopardize the good will attached thereto or to the 7-Eleven System or 7-Eleven
Image.

                                       3
<PAGE>

         D. Upon Southland's request, Licensee shall make and execute an
agreement with Southland whereby Licensee is appointed by Southland to be a
registered user of the Trademarks, and take whatever steps are required to
obtain registration of Licensee as a registered user of the Trademarks pursuant
to the registered user agreement. Each such registered user agreement shall
contain appropriate provisions relating to the goods in respect of which
Licensee is to become registered as the user of the Trademarks concerned, the
parts of the Licensed Territory in which Licensee is permitted to use the
Trademarks and the terms and conditions upon and subject to which the Trademarks
are to be used by Licensee, and shall be in such form as required to give effect
to this clause.

         E. Licensee shall, at Southland's expense, execute and deliver such
documents as Southland deems necessary to protect Southland's ownership of the
Trademarks. The use of the Trademarks shall be included under the license for
the purpose of this Agreement and may also be covered by a separate agreement to
be entered into between Southland and Licensee. During and after the term of
this Agreement, Licensee will not assert, contend or in any way claim that
Southland is not the owner of all right, title and interest in the 7-Eleven name
and mark, or any other Southland name or mark, or that any such name or mark or
any registration therefore is not valid or enforceable by Southland.

SECTION II. EFFECTIVE DATE.

         The Effective Date of this Agreement shall be June 2, 1993.

SECTION III. LICENSE FEE AND ROYALTY.

         A. License Fee. As an inducement and in partial consideration of the
license herein granted, Licensee has paid Southland, on the execution hereof,
the sum of [***] dollars ($[***]), the receipt of which is hereby acknowledged
by Southland (the "License Fee").

         B. License Royalty.

                  (1) As an additional inducement for and in further
consideration of the License herein granted, Licensee agrees to pay Southland at
Dallas, Texas, in lawful money of the United States on or before the tenth
(10th) day of each month during the term of this Agreement, without demand, set
off, counterclaim or deduction whatsoever, a sum equal to [***] percent ([***]%)
times the prior month's Monthly Gross Sales, as defined herein (the "License
Royalty" or "Royalty") from the first 150 of Licensees then operating
Convenience Stores in the Licensed Territory operated or sublicensed by or
through Licensee or from which Licensee receives any compensation for the first
full twelve (12) calendar months after the Effective Date. The initial list of
Convenience Stores covered by this Agreement is listed in Exhibit C. Thereafter,
as to the first 150 Convenience Stores under this Agreement, the Royalty shall
be [***] percent ([***]%) of monthly Gross Sales. In exchange for the initial
one-year (12 months) of reduced Royalty and the providing of the "Loaned
Employee" as herein set out, Licensee agrees to pay to Southland the sum of
$[***] per month for the first full twelve (12) calendar months.

----------
         [***]Text omitted pursuant to a request for confidential treatment and
              filed separately with the Securities and Exchange Commission.

                                       4
<PAGE>

                  (2) If Licensee shall bring within the 7-Eleven System any of
the Merit Stores or any of the Truck Stops listed on the Exhibit B attached
hereto, then the amount of Royalty shall be [***] percent ([***]%) of the
Monthly Gross Sales for such added stores. If Licensee shall bring within the
7-Eleven System additional Convenience Stores, including any Convenience Stores
to be operated by a Sublicensee of Licensee, then the amount of Royalty shall be
[***] percent ([***]%) of the Monthly Gross Sales for those stores numbered 151
through 200, and the amount of Royalty shall be [***] percent ([***]%) of the
Monthly Gross Sales for all such stores numbered 201 and above. Licensee agrees
to keep at least 135 stores, plus those Merit Stores and Truck Stops converted
and referred to in Section I A (3) (the "Quota"), open and operating, in
addition, whenever any of the original 150 stores are closed or sold, other
operating stores will take their place for Royalty purposes. All delinquent
payments of Royalty shall bear interest beginning on the first day of the month
following the month during which the payment was due at a rate which is [***]
percent ([***]%) per annum in excess of the prime rate charged by First National
Bank of West Texas (or any successor, the "Bank") as of the first working day of
the calendar year during which interest begins to accrue on such delinquent
Royalty payment.

         C. Loaned Employee. In exchange for the $[***] per month payment by
Licensee to Southland for the first twelve (12) months after the Effective Date,
Southland shall furnish an employee of Southland's (the "Loaned Employee") to
Licensee for that same twelve (12) month period. The Loaned Employee shall be
available in the Licensed Territory on a full-time basis to consult with and
advise Licensee's employees. The Loaned Employee shall be and remain a full-time
employee of Southland's and will only advise Licensee regarding the operation.
Licensee will individually determine whether to utilize the Loaned Employee's
advice and, if so, how to implement the advice, and all decisions and liability
therefor shall be Licensee's. The Loaned Employee shall be equivalent to or
above the level of a Southland Market Manager.

         D. Determination of Gross Sales. "Monthly Gross Sales" as used in this
Agreement means all sales emanating from Convenience Stores covered by this
Agreement or any stores, supermarkets, or other retail stores owned, operated,
or affiliated with or sublicensed by Licensee, including, but not limited to,
sales of promotional merchandise, credit card sales and all fees, service,
rental, consignment, commission, or concession income. For purposes of this
Agreement, Monthly Gross Sales shall not include:

                  (1) refunds made to customers;

                  (2) sales, excise, and gross receipts taxes;

                  (3) the face amount of money orders, services or products sold
where the fee, service, rental, consignment, commission or concession income
received in connection with the sale thereof, including but not limited to,
commissions received on lottery sales, amusement games and video rentals, is
included in Monthly Gloss Sales;

                  (4) sales of motor fuel, including, but not limited to, the
sale of consigned motor fuel;

----------
         [***]Text omitted pursuant to a request for confidential treatment and
              filed separately with the Securities and Exchange Commission.

                                       5
<PAGE>

                  (5) cigarettes display rebates and other retailer rebates from
vendors; and

                  (6) sales from the Merit Stores and Truck Stops covered by
Section I A(2) shall not be covered by this Section, unless and until they are
converted to 7-Eleven Stores or after twelve (12) months from the Effective
Date.

SECTION IV. CONSIDERATION.

         Although Southland has certain continuing obligations only to the
extent set forth herein, when it imparts to Licensee its printed manuals and
forms and extensive technical and other assistance and initial advice of its
personnel as provided herein, the principal consideration to be given by
Southland hereunder will have been executed. Southland may, however, continue to
update information and provide technical and other assistance as provided
herein. The principal consideration to be given by Licensee is the continuing
License Royalty provided herein.

SECTION V. SOUTHLAND'S SERVICES TO LICENSEE.

         A. Southland will provide the training as specified in Exhibit D,
attached hereto, for certain of Licensee's personnel and will provide such
additional training as Southland, in its sole discretion, determines is
appropriate.

         B. Southland will provide the technical and other assistance of
Southland's personnel to Licensee in the Licensed Territory as specified in
Exhibit D and will provide such additional technical assistance as Southland, in
its sole discretion, determines is appropriate.

         C. Southland will deliver to Licensee those printed manuals and forms
relating to Southland's Convenience Store operation in the United States, as
specified in Exhibit E, attached hereto.

         D. Southland will, at the request of Licensee, make available to
Licensee in the Licensed Territory, upon payment by Licensee of such amount as
may be determined by Southland, promotional and point-of-sale materials,
advertising campaigns and visual training aids developed by Southland for use
under the 7-Eleven System in the United States and additional copies of printed
manuals and forms provided to Licensee by Southland hereunder, all of which are
also Trade Secrets. Additional copies of such printed manuals and forms may be
reproduced by Licensee, without additional payment to Southland, for use by
Licensee only, pursuant to and in accordance with this Agreement. All such
materials modified to delete references to Southland (where appropriate) must
clearly designate the Licensee as owner and operator or franchisor) of the
business.

         E. Southland may, at its option and at the request of Licensee, in
addition to the technical assistance previously provided and any assistance to
be provided by Southland's personnel, make Southland's personnel available to
provide continuing technical and other assistance to Licensee either in the
Licensed Territory or at Southland's facilities, for the payment by Licensee to
Southland of the charges and expenses of such personnel, if any, as Southland
shall specify at the time of such request.

                                       6
<PAGE>

         F. Southland, at its expense, shall have the right (but not the duty)
to undertake the defense or prosecution, as the case may be, of any and all
claims or causes of action arising from Licensee's use, under and pursuant to
this Agreement, of the Trademarks, Trade Secrets or the 7-Eleven System.
Southland presently has a large number of Convenience Stores which are
franchised under the 7-Eleven System and has several other area licensees in the
United States, Japan, Australia, Hong Kong and other countries, which operations
it plans to expand into various areas during the term of this Agreement. Because
Licensee's agreement with its Sublicensees, if any, may be substantially
identical to the agreements between Southland, or its other area licensees, and
their respective franchisees or sublicensees, any attack on or question
concerning the validity or enforceability of Licensee's agreement with its
Sublicensees may have implications affecting Southland, its other area
licensees, and their respective franchisees or sublicensees. Therefore,
Southland, at its option, shall have the right (but not the duty) to advise,
assist or undertake the defense or prosecution, as the case may be, of any
hearings or conferences before any governmental agencies or litigation directly
or indirectly concerning the Trademarks, Trade Secrets or 7-Eleven System, and
Licensee shall promptly notify Southland of any such matters in writing.

         G. Southland is extending to Licensee its permission or license
lawfully to use the Trademarks solely under the conditions and limitations set
forth herein, and only to the extent that Southland could make use thereof were
it not for the License being granted herein. The parties recognize that others
may have acquired or attempted to acquire rights in or to colorable variations
or copies of the Trademarks. Licensee shall promptly notify Southland if the use
of any Trademarks in the Licensed Territory pursuant to this Agreement would
violate the rights of any other person. With the exception of small, few, minor
or isolated claims, Southland will indemnify, defend and hold Licensee harmless
from and against any and all claims, causes of action, fines, penalties,
damages, suits and judgments, relating to the use of an infringing mark which
may be suffered or incurred as a result of such infringement or allegation
thereof by any third party. As to adverse decisions in such small, few, minor or
isolated Trademark claims, thereafter, Southland may require the Licensee to
adopt a trade name, service mark or trademark other than "7-Eleven" or any other
of the Trademarks, and Licensee specifically acknowledges that such event shall
not constitute a failure or partial failure of consideration.

         H. On or before the fifteenth (15th) day of each month Southland shall
send Licensee an invoice covering Southland's charges for its services to
Licensee. The amount stated on such invoice shall be payable within ten (10)
days of the date thereof, and if delinquent, shall bear interest beginning on
the first day of the month following the month during which payment was due at a
rate which is [***] percent ([***]%) per annum in excess of the prime rate
charged by the Bank as of the first working day of the calendar year during
which interest begins to accrue on such delinquent payment.

----------
         [***]Text omitted pursuant to a request for confidential treatment and
              filed separately with the Securities and Exchange Commission.

                                       7
<PAGE>

         I. Except as otherwise herein authorized, Southland shall not, during
the term of this Agreement, operate any Convenience Stores in the Licensed
Territory.

         J. Southland represents, warrants and covenants to Licensee, with the
intention that Licensee rely thereon in entering into this Agreement, that:

                  (1) "7-Eleven(R)" is a valid registered U.S. service mark
owned by Southland.

                  (2) Southland, to its knowledge and with the exception of
minor claims in the continental United States (including the non-affiliated
usage in the Indianapolis, Indiana area), which may be either known or unknown,
owns the Trademarks, Trade Secrets and 7-Eleven System, and its franchisees,
registered users, licensees and sublicensees have the rights to use the
Trademarks, Trade Secrets and/or 7-Eleven System.

                  (3) The execution, delivery, consummation or performance of
this Agreement does not conflict with, or constitute a material breach of any
contract, agreement, mortgage, bylaw provision, lease or restriction of any
nature to which Southland is a party. So long as this Agreement is in effect,
Southland will not undertake any obligations (i) the performance of which would
constitute a material breach hereunder, or (ii) in the event Southland's
performance hereunder would constitute a material breach of such obligations.

                  (4) Southland has all necessary corporate power and authority
to execute, deliver, consummate and perform this Agreement, and it shall be a
binding agreement upon Southland and its successors and assigns when executed.

                  (5) All representations and warranties of Southland's
contained in this Agreement shall be complete, correct and accurate on the
Effective Date and, except where limited by their terms to conditions existing
on the Effective Date, shall remain in effect thereafter so long as this
Agreement is in effect.

                  (6) Southland will offer and make available to Licensee all
programs, Trademarks, training (including training for new programs) and
assistance that it makes generally available to all of its domestic licensees
and area licensees upon comparable terms and conditions (including territorial
exclusivity where appropriate) and at a cost, where applicable, comparable to
that which the other licensees and area licensees pay, and based upon the same
cost formula.

                  (7) Southland is a corporation duly organized, in good
standing and qualified to do business under the laws of Texas and New Mexico.

         K. In the event that Licensee, pursuant to the terms of subsection I of
Section VI of this Agreement, undertakes the defense of prosecution of any
litigation, Southland shall execute any and all documents and do such acts and
things as may be reasonably necessary to carry out the defense or prosecution,
either in the name of Licensee or in the name of Southland, as Licensee shall
elect.

                                       8
<PAGE>

         L. Southland represents and warrants that the 7-Eleven System as
granted hereunder is the complete 7-Eleven System for area licensees and that no
necessary portions of that system are omitted from the License hereunder.

SECTION VI. LICENSEE'S REPRESENTATIONS, DUTIES AND OBLIGATIONS.

         A. Licensee represents and warrants to Southland, with the intention
that Southland rely thereon in entering into this Agreement, that:

                  (1) Licensee is a corporation duly organized, under the laws
of the state of Texas in good standing, and qualified to do business under the
laws of Texas and New Mexico. All of the authorized shares of Licensee are
beneficially owned by the shareholders listed on Exhibit D attached hereto and
made a part hereof, and no other persons or entities own any interests in
Licensee.

                  (2) (a) All outstanding shares of capital stock of Licensee
are duly authorized and those shares set out on Exhibit D are issued, fully paid
and nonassessable. No shares of stock of Licensee will be sold or transferred
without Southland's prior written consent. All of the capital stock of Licensee
has been and shall continue to be legended to preclude the transfer or sale of
such stock without Southland's prior written consent.

                        (b) Southland shall not withhold the written consent
described in the preceding paragraph (a) if Licensee shall furnish to Southland
a written statement of the number of shares being transferred, the name and
address of the transferee along with a statement that after such transfer the
effective control of Licensee will not have changed.

                        (c) Each of the persons and/or entities listed on the
Exhibit F attached hereto shall be authorized by Southland under the preceding
paragraph (a) to purchase, sell or transfer shares of Licensee's stock to or
from any of the other persons or entities listed on Exhibit F and no further
written consent from Southland shall be required.

                        (d) Southland shall not withhold the written consent
described in the preceding paragraph (a) if Licensee shall furnish to Southland
a written statement of the structure and basic terms of the merger or
acquisition, the name and address of the persons and/or entities involved in the
merger or acquisition, the number of shares to be held by each shareholder after
the merger or acquisition along with a statement that after such merger or
acquisition the effective control of Licensee will not have changed.

                                       9
<PAGE>

                        (e) Southland shall not withhold the written consent
described in the preceding paragraph (a) if Licensee shall furnish to Southland
a written statement of the structure and basic terms of the public offering (or
other method of acquiring publicly traded stock status) the name and address of
the persons and/or entities involved in the public offering (or other method of
acquiring status), number of shares to be retained by those persons or entities
listed on the Exhibit F attached hereto, along with a statement that after such
public offering (or other method), the effective control of Licensee will not
have changed, provided that Licensee shall pay all of Southland's reasonable
costs in reviewing and responding to the proposed transfer, provided that in no
event shall the amount to be paid exceed $[***].

                        (f) The first right of refusal as set out at Section
XIII shall not apply to any of the provisions contained in this VIA(2).

                        (g) Notwithstanding anything to the contrary herein
Section VI A 2(a) - (f), and with the exception of a public offering
contemplated by Section VI A(3)(e) and where the Licensee does not control the
disposition, Southland may refuse to approve any of the above transfers, if the
intended transferee is a competitor of Southland's, a person of ill repute or
convicted felon.

                  (3) The authorized shares of Licensee, together with the
record and beneficial ownership of those shares outstanding, are set forth on
Exhibit G. Without Southland's prior written consent: (i) no shares of Licensee
will be opened for subscription and Licensee will not issue any further or
additional shares, or (ii) provisions of Licensee's Articles of Incorporation
and Bylaws relating to the authorization and/or issuance of shares of Licensee
shall not be amended. No mortgage, charge, lien or other security interest in
respect of any of such shares or capital shall be created in favor of any
person(s) or entity without Southland's prior written consent.

                  (4) The execution, delivery, consummation or performance of
this Agreement does not conflict with, or constitute a material breach of, any
contract, agreement, mortgage, by law provision, lease or restriction of any
nature to which Licensee is a party. So long as this Agreement is in effect,
Licensee will not undertake any obligations (i) the performance of which would
constitute a material breach hereunder, or (ii) in the event Licensee's
performance hereunder would constitute a material breach of such obligations.

                  (5) Licensee has all necessary corporate power and authority
to execute, deliver, consummate, and perform this Agreement, and it shall be a
binding agreement upon Licensee and its successors and assigns when executed.

                  (6) Licensee agrees that it will make every reasonable effort
at all times during the term of this Agreement to provide sufficient working
capital for Licensee to faithfully fulfill its obligations under this Agreement.

----------
         [***]Text omitted pursuant to a request for confidential treatment and
              filed separately with the Securities and Exchange Commission.

                                       10
<PAGE>

                  (7) Licensee has no material liabilities, adverse claims,
commitments or obligations of any nature as of the Effective Date, whether
accrued, unliquidated, absolute, contingent or otherwise which are not reflected
as liabilities on the balance sheets of Licensee as contained in the financial
statements or otherwise disclosed therein.

                  (8) Licensee will obtain all governmental approvals necessary
to the execution of this Agreement and the payments to be made by the Licensee
to Southland hereunder, and shall furnish true and complete copies of such
approvals upon request to Southland.

                  (9) Licensee, so long as this Agreement is in effect, shall
devote its best efforts to the conduct of the business hereunder, and Licensee
will not, either directly or indirectly:

                        (i) engage in the Convenience Store business during the
term of this Agreement in any territory other than by Licensee in the Licensed
Territory pursuant to this Agreement.

                        (ii) use the 7-Eleven System, the Trade Secrets, or the
Trademarks for the operation of Convenience Stores or otherwise in any territory
other than the Licensed Territory and pursuant to this Agreement; and

                        (iii) except in the case of termination of this
Agreement by Licensee for a material breach by Southland, engage in the
Convenience Store business for a period of three (3) years after the termination
of this Agreement for any reason whatsoever, in any state of the United States
or any country where Southland operates, franchises or licenses convenience
stores; provided, however, the foregoing noncompete restriction shall not apply
with respect to the Licensed Territory.

                        (iv) The provisions of this paragraph (9)
notwithstanding, Southland acknowledges that Southwest Energy Distributors, Inc.
("SW Energy"), a related company to Licensee, owns and/or leases seven (7)
convenience stores and two (2) Truck Stops within the Licensed Territory and one
(1) Truck Stop out of the Licensed Territory, all of which are more particularly
described in the Exhibit B attached hereto. Southland and Licensee agree as
follows: that neither SW Energy, Licensee nor the principals thereof or related
companies thereto shall be prohibited form owning, leasing or operating said
convenience stores or Truck Stops; that within twelve (12) months from the
Closing Date, all of the seven (7) convenience stores shall be: (i) converted to
the 7-Eleven System and brought within the coverage of this Agreement; (ii)
closed or shall cease to be convenience stores; or (iii) leased/sold to
unrelated third party(ies). Southland and Licensee further agree that the Truck
Stops are not presently subject to this Agreement, but that Licensee shall have
the option during the term of this Agreement to convert any one or all of the
three (3) Truck Stops to the 7-Eleven System, provided that such Truck Stop is
within a territory licensed to Licensee and that such Truck Stop meets the
7-Eleven standards contained within this Agreement, and complies with the
royalty requirements and the other provisions of this Agreement.

                                       11
<PAGE>

                        Licensee agrees that the restrictions contained in this
subsection (9) are valid and reasonable. If a court having jurisdiction should
hold that these covenants not to compete are not enforceable, in whole or in
part, they shall be limited to such areas and periods as the court holds are
enforceable, and such action shall not be deemed to affect or impair the
validity of any other covenants or provisions of this Agreement. These
restrictions shall not be deemed to be restrictions on the operations of
Licensee's Sublicensees under this Agreement.

                  (10) As of the Effective Date, there are no actions, suits,
proceedings, or investigations pending, or to the knowledge of any of the
officers or directors of Licensee (after due inquiry) threatened in any court or
before any governmental agency or instrumentality, or to the knowledge of the
officers and directors of Licensee (after due inquiry), any basis for any claim,
action, suit, proceeding or investigation, which affects or could affect,
directly or indirectly, any of the assets, properties, rights or business of
Licensee, or the right of the Licensee to operate and use its assets, properties
or rights and carry on its business.

                  (11) All representations and warranties of Licensee contained
in this Agreement shall be complete, correct and accurate on the Effective Date
shall remain in effect thereafter so long as this Agreement is in effect and
shall survive any termination of this Agreement.

         B. Licensee will not use any of the Trademarks as a part of its
corporate or business name without Southland's prior written consent and further
agrees that:

                  (1) As a result of this Agreement, Licensee will be (or has
been) provided by Southland in confidence with and become familiar with, printed
manuals and forms and other materials which are restricted information and
proprietary property, belonging to and exclusively for the benefit of Southland
and constitute valuable "trade secrets" of Southland (the "Trade Secrets") which
are fully protected by Southland's copyrights.

                  (2) Licensee will use and limit and permit the use of the
Trade Secrets solely in connection with its business under this Agreement and
for the benefit of Southland and that Licensee will not permit, directly or
indirectly, at any time, Licensee to disclose or turn over any document or other
item concerning any of the Trade Secrets, the Trademarks and the 7-Eleven System
or any copies or excerpts thereof, to any person, except authorized employees of
Licensee, its Sublicensees, or as specifically directed by Southland, or imitate
or aid anyone else to imitate same, either for Licensee's benefit or for the
benefit of any other person, firm or corporation, as principal, agent, employee,
or in any other capacity. All materials used shall correctly reflect the parties
ownership and control of the business.

                  (3) No title to the Trademarks or any of the Trade Secrets
will pass hereunder to or thereafter through or from Licensee, and only the
rights granted in or pursuant to this Agreement are provided to Licensee.

                                       12
<PAGE>

         C. Licensee shall open or cause to be opened and maintained in the
Licensed Territory the number of stores listed in Exhibit H and will utilize its
best efforts in good faith to develop the Licensed Territory by expanding and
opening additional stores. As a material part of the consideration for the grant
of this License, Licensee has represented that it can comply with these
requirements. Should Licensee fail to fulfill the Quota for any reason,
Southland shall have the right to the payments set out in Section X A and the
provisions of Section X E. Southland's remedy provided herein shall be in
addition to whatever other remedies it has at law or in equity.

         Within the first five (5) years after the Effective Date, Southland and
Licensee shall perform and complete a Market Development Plan for the Licensed
Territory, using Southland's forms and program and based upon that study.
Southland and Licensee shall, during the ninety (90) days following the
completion of the study, meet and discuss the Quota and develop new Quota for
the next seven (7) years, based upon the study, and shall amend this Agreement
consistent with these Quotas. In the event the new Quota cannot be agreed to
within the ninety (90) day period, either party may refer the matter to
mediation and/or arbitration. Thereafter, this process shall repeat itself so
long as the Agreement is in effect.

         D. Licensee, in conformity with the terns of this Agreement, the
7-Eleven System as from time to time constituted (whether or not any changes
therein are within the present contemplation of the parties), and the printed
manuals, forms and materials furnished Licensee hereunder, as revised or amended
from time to time, and in a good and prudent business manner, will select and
purchase or negotiate and enter leases and subleases for store locations,
procure equipment and merchandise, hire and train employees, select and train
Sublicensees, enter into agreements with its Sublicensees and do all other
things necessary to facilitate the acquiring, opening and operating or
sublicensing of Convenience Stores in the Licensed Territory and the conduct of
a Convenience Store business under and pursuant to this Agreement. Licensee
shall not purchase any goods or services for use in or resale from the Stores
from Licensee's parent, subsidiary or affiliates at prices in excess of the fair
market value of such goods or services.

         E. To sustain the good will and prestige the Trademarks enjoy with the
public, to promote the Trademarks, for the protection of the Trademarks, to
preserve the high quality and standards of merchandise distributed through, and
services emanating from, Convenience Stores operated under the 7-Eleven System
and to sustain tine uniformity of appearance and efficiency of operation of
Convenience Stores operated under the 7-Eleven System, Licenses agrees that:

                  (1) (a) Each new freestanding Convenience Store operated or to
be operated under this Agreement will be constructed generally in accordance
with plans and specifications approved by Southland under this Agreement and
shall be consistent with the then current 7-Eleven Image. Remodeling of existing
Convenience Stores, or of stores to become Convenience Stores hereunder, shall
be consistent with the then current 7-Eleven Image. Licensee, at its sole
expense, shall retain a local architect or engineer to modify the standard plans
and specifications to be provided by Southland to comply with applicable local
codes. Any changes by Licensee to or modification of recommended plans and
specifications shall be submitted to Southland for its prior written approval.

                                       13
<PAGE>

                        (b) Licensee acknowledges that in order to have the
opportunity to keep its stores at an acceptable image level, all of its stores
will need to be remodeled with a full remodel, on average every seven (7) years,
and provided that such remodel requirement will be commercially reasonable under
the circumstances.

                  (2) Each Convenience Store under this Agreement will be
identified, decorated, furnished, fixturized and equipped in accordance with
uniform standards established by Southland and all such equipment shall meet
Southland's specifications.

                  (3) All merchandise and services used or distributed by
Licensee and its sublicensees under this Agreement will be of substantially
equivalent type, quantity, quality and variety as those used or distributed by
Southland and consistent with the then current 7-Eleven Image.

                  (4) No merchandise to be sold in any Convenience Store under
this Agreement will have any of the Trademarks imprinted thereon, attached
thereto or associated therewith without Southland's prior written consent, and
any such usage with Southland's consent will inure to the benefit of Southland.
Southland must license any and all distributors of trademarked products.

         F. Licensee, at its sole cost and expense, will be responsible for and
will undertake reasonable advertising in the Licensed Territory. To assure the
integrity of and protect Southland's rights in the Trademarks, the first usage
thereof, and any change thereafter, on signs, displays or in advertising of any
sort will be presented to Southland for written approval prior to any public
use, publication or display. Such usage of the Trademarks by Licensee thereafter
shall be consistent with the previously approved usage. Licensee agrees to
utilize "at participating stores" or comparable language in its advertisements.
Notwithstanding anything herein to the contrary, nothing herein shall preclude
Southland from placing, or imply an obligation on Southland to place, such
institutional or other advertising in the Licensed Territory as it deems
appropriate. Licensee acknowledges that "spill over" advertisements from
Southland and/or other Licensees may from time to time be present in the
Licensed Territory and agrees that such advertisements shall not be in any way
in violation of this Agreement.

         G. The forms and substantive provisions of agreements entered into
between Licensee and its Sublicensees shall, at Southland's option, be submitted
for review by Southland. Licensee agrees that it shall act to preserve the
integrity of the 7-Eleven System and Image and to protect the Trademarks. On the
execution of each such agreement, Licensee will forthwith furnish Southland a
copy.

         H. Licensee will operate and cause its individual store Sublicensees
("Franchisees") to operate Convenience Stores under this Agreement in compliance
with all applicable ordinances, laws, regulations and other requirements of any
governmental authority, including agencies thereof, and will obtain and pay for,
or cause its Franchisees to obtain and pay for, all necessary licenses, permits
or consents of whatsoever kind or character, and Licensee will pay or cause to
be paid prior to delinquency all taxes, fines, fees or assessments arising out
of or in connection with the operation of its business hereunder. Licensee
recognizes that there are

                                       14
<PAGE>

franchise registration and disclosure laws and regulations, and Licensee
specifically agrees (without limiting the general application of this
subsection) to comply with such laws and regulations. Anything herein to the
contrary notwithstanding, Licensee may contest the applicability of any such law
or ordinance.

         I. Licensee hereby indemnifies and agrees to defend and hold Southland
harmless from any and all claims, causes of action, fines, penalties,
liabilities (including statutory and other liability under worker's compensation
and other employer's liability laws), damages, suits or judgments, including
costs of investigation, court costs and reasonable attorney's fees, arising
directly or indirectly from, as a result of, or in connection with Licensee's
business pursuant to this Agreement or in connection with claims for damages as
the result of injury or death of any person or damage to property sustained by
Licensee and all other persons which either arise from or in any manner,
directly or indirectly, grow out of any statutory basis of liability or from an
act, error, omission or neglect by Licensee, Licensee's partners, agents,
employees, licensees, sublicensees, customers, invitees, contractors and
subcontractors, and Southland shall have no obligation or liability in
connection therewith or arising therefrom and without any substantial
contributing action or inaction on the part of Southland. Southland shall have
the right to select the attorney to defend Southland in those actions in which
Southland is named.

         Licensee will, within thirty (30) days of notice of the same, notify
Southland in writing any general liability claims, demands or suits where
Southland is alleged to be at fault.

         Licensee agrees to obtain insurance coverage, reasonably sufficient for
the nature of Licensee's operation to protect and hold Southland harmless from
any and all claims of personal injury, bodily injury, death or property damage
arising out of Licensee's operations, including personal injury coverage;
product liability coverage, advertising liability coverage, liquor liability
coverage, and contractual liability coverage in amounts sufficient to fully
protect Southland as above stated. Southland shall be specifically named as an
additional insured in all such insurance policies reflecting such coverage and
shall provide for notices of any changes to be forwarded to Southland. At all
times during the existence of this Agreement, Licensee shall have such coverage
in place. Licensee shall deliver to Southland a certified copy of any renewal
policy or policies thereof to Southland within ten (10) days of issuance. All
such policies shall provide for thirty (30) days minimum written notice of
cancellation to Southland and Licensee. The amount of insurance coverage
required to be carried hereunder may be revised by Southland, and Licensee shall
obtain such insurance, provided such revision is commercially reasonable to
Licensee under its then current circumstances. Licensee, with Southland's
approval, shall have the option of setting up one or more plans of
self-insurance and not have to carry certain lines of insurance such as the
statutory Workmen's Compensation Insurance, and Southland will not unreasonably
withhold its approval.

         J. By November 1 of each calendar year during the term hereof, Licensee
will submit to Southland, in a form acceptable to Southland, a projected
operating budget for the following fiscal year of Licensee for Licensee's total
operations, including projected sales of merchandise, for each Convenience Store
under this Agreement.

                                       15
<PAGE>

                  (1) The projected sales figures shall include, at a minimum,
the following information:

                        (a) projected total merchandise sales for the following
calendar year from all Convenience Stores which are open on January 1 of the
following calendar year and for all new Convenience Stores to be opened during
the following calendar years; and

                        (b) projected total commissions and income for the
following calendar year from all Convenience Stores which are open on January 1
of the following calendar year and for all new Convenience Stores to be opened
during the following calendar year.

                  (2) Upon Southland's request, Licensee will also submit to
Southland, in a form acceptable to Southland:

                        (a) a copy of a monthly operating report for each
Convenience Store under this Agreement by the end of the following month;

                        (b) a copy of a monthly operating report, including,
without limitation, a profit and loss statement, (including) the balance sheet
and statement of sources and uses of funds for Licensee's business pursuant to
this Agreement by the end of the following month and a copy of the audited
annual financial statements, if available, or unaudited if audited annual
financial statements are not available, and the report of its independent public
accountants thereon within 120 days after the close of its fiscal year; and

                        (c) a copy of each financial statement for each
sublicensed Convenience Store and a copy of an equivalent report for each
Convenience Store operated by Licensee under this Agreement promptly after their
preparation.

         K. Licensee will make and maintain full, accurate and adequate records
in a permanent form and pursuant to generally accepted accounting principles
consistently applied, pertaining to its business pursuant to this Agreement,
which records shall be, at a minimum, those required by and shall be maintained
for the period prescribed by applicable tax regulations. All such records shall
be or shall be made available to Southland at all reasonable times for such
inspection and audit as it deems necessary. Licensee hereby grants Southland and
its agents, designees and employees access at all times during normal business
hours to all such records, including invoices and any other documents of any
nature relating to financial statements of Licensee and its Sublicensees
required to be furnished to Southland pursuant to this Agreement and the right
to inspect, test, copy, sample and audit such records at Southland's expense and
to observe the operations of Licensee and its Sublicensees at the office of
Licensee and at the location of any Convenience Store under this Agreement. In
the event an audit by Southland discovers a failure to properly report and pay
Royalty, Licensee shall pay all of Southland's costs to audit and all applicable
late charges and interest.

                                       16
<PAGE>

         L. Licensee will, no later than fifteen (15) days after receiving
notice of the same, notify Southland in writing of any claim, demand or suit
based upon or arising from the use of, or of any attempt by any other person,
firm or corporation to use, any of the Trademarks, 7-Eleven System and/or Trade
Secrets. Licensee also will promptly notify Southland in writing of any
litigation relating to this Agreement or Licensee's operations hereunder
instituted by Licensee, any of Licensee's Sublicensees or by any person, firm,
corporation or governmental agency against Licensee or any of Licensee's
Sublicensees.

         In the event Southland, pursuant to the terms of subsection F of
Section V of this Agreement, undertakes the defense or prosecution of any
litigation, Licensee shall execute any and all documents and do such acts and
things as may, in the opinion of counsel for Southland, be necessary to carry
out such defense or prosecution, either in the name of Southland or in the name
of Licensee, as Southland shall elect.

         M. Licensee shall use its best efforts to assist Southland in obtaining
any rulings or approvals from any government or any agency thereof which
Southland believes are necessary to effectuate the intent of this Agreement.

SECTION VII. ASSIGNMENT.

         A. This Agreement will not be assigned by Licensee in whole or in part,
directly or indirectly, and any such assignment or attempted assignment without
the prior written consent of Southland shall be a material breach of this
Agreement. The direct or indirect sale or assumption of a controlling interest
in Licensee or Licensee's assets shall be deemed to be an assignment. The
foregoing shall not limit or restrict the rights of Licensee under paragraph
VIA(2) hereof.

         B. If Southland consents to the assignment of this Agreement, the
Termination Fee (hereinafter defined) shall not apply, and the Licensee shall
pay all costs and expenses associated with the reviewing of the requested
assignment.

SECTION VIII. RIGHT TO TERMINATE.

         A. If Licensee materially misrepresents or materially breaches any
representations or warranties made herein or materially defaults in the
performance of any term, covenant or condition provided in this Agreement,
specifically including, but not limited to, Licensee's failure to make any
payment when and as due of the License Royalty or any other amount due from
Licensee hereunder, and such misrepresentation or material breach or default
continues for a period of thirty (30) days following notice thereof to Licensee
by Southland, this Agreement shall terminate without further notice or action by
Southland. Southland shall also have the right to terminate this Agreement upon
the occurrence of any one of the following:

                  (1) the commencement by Licensee of any voluntary proceeding
in bankruptcy, receivership, for corporate reorganization or for any similar
relief;

                                       17
<PAGE>

                  (2) the commencement against Licensee of any involuntary
proceeding in bankruptcy or its equivalent, not dismissed within 90 days;

                  (3) Licensee makes an assignment for the benefit of creditors
or a failure or delay that continues for more than 120 days, as provided in
Paragraph XVII. I.

         In any such event, Southland, at its option, may deliver to Licensee a
notice of termination, and this Agreement will immediately wholly terminate
except for the obligations of Licensee upon termination as provided in paragraph
(9) of subsection A of Section VI, subsection I of Section VI and in Section IX
nothing in this section limits the rights provided in Section X E.

         B. Licensee will have the right to terminate this Agreement in the
event that Southland materially misrepresents or materially breaches any
representations or warranties made herein or materially defaults in the
performance of any term, covenant or condition provided in this Agreement, and
such default continues for a period of thirty (30) days following notice thereof
to Southland. In any such event, Licensee at its option, may deliver to
Southland a notice of termination, and this Agreement will wholly terminate
except for the obligations of Licensee upon termination as provided in Sections
VI, IX and X. Licensee shall also have the right to terminate this Agreement
upon the occurrence of any one of the following:

                  (1) the commencement by Southland of any voluntary proceeding
in bankruptcy receivership, for corporate reorganization or for any similar
relief; or

                  (2) the commencement against Southland of any involuntary
proceeding bankruptcy or its equivalent, not dismissed within ninety (90) days.

         C. Notwithstanding anything herein, Licensee shall have the right to
terminate this Agreement at any time and without cause, provided it meets the
following:

                  (1) the Licensee provides a ninety (90) day prior written
notice to Southland indicating that it wishes to terminate the Agreement
pursuant to the terms of this Section VIII C. and the date of termination being
ninety (90) days from the date of the notice.

                  (2) Licensee, on or before the effective date of the
termination, pays to Southland the "Termination Fee," computed as follows:

                        (a) The Termination Fee shall he computed as set out on
Exhibit J, attached hereto and made a part hereof; further provided that
notwithstanding anything herein to the contrary, the Termination Fee will not be
less than $[***]. The Termination Fee shall be prorated to the day of the month
listed on Exhibit J which corresponds with the Effective Date of the
termination.

----------
         [***]Text omitted pursuant to a request for confidential treatment and
              filed separately with the Securities and Exchange Commission.

                                       18
<PAGE>

                        (b) Notwithstanding the provisions herein, all of the
other terms contained in this agreement dealing with obligations and rights of
the parties upon termination shall be in full force and effect upon a
termination pursuant to this subsection.

SECTION IX. OBLIGATIONS OF LICENSEE UPON TERMINATION

         A. Upon the termination of this Agreement for any reason permitted by
this Agreement, Licensee will cause its Sublicensees to permanently discontinue
the use of the Trademarks, the Trade Secrets and the 7-Eleven System, as well as
any identification connected with the 7-Eleven System, within sixty (60) days of
the termination, and thereafter will make no use of any name, mark or other
trade indicia likely to cause confusion with or dilute the distinctive quality
of any of the Trademarks, or of any work substantially similar to any work
subject to a copyright owned or licensed by Southland.

         B. Upon the termination of this Agreement for any reason, Licensee will
return to Southland, or destroy pursuant to Southland's instructions, all Trade
Secrets, including printed manuals and forms and other materials provided by
Southland to Licensee hereunder and all copies of such material, or any
adaptations thereof within thirty (30) days of the termination. Unless such
termination is due solely to a material breach of this Agreement by Southland,
Licensee shall bear all reasonable costs incurred in compliance with this
subsection IX B.

         C. The representations and warranties made herein, including but not
limited to, the noncompete provisions of subsection 9 of paragraph A and
paragraph I of Section VI, if applicable, shall survive the termination of this
Agreement for the period of the applicable statute of limitations.

SECTION X. PROTECTION OF TRADEMARKS, TRADE SECRETS, THE 7-ELEVEN SYSTEM AND
           LIQUIDATED DAMAGES.

         If at any time Licensee defaults in compliance with the quota
requirements specified in Exhibit H, fails to protect the Trademarks, Trade
Secrets, the 7-Eleven Image or System or if it becomes necessary for Southland
to institute a suit to enforce any of the provisions of Agreement, it is hereby
agreed by and between Licensee and Southland that the amount of damages which
Southland would incur would be difficult, if not impossible, to accurately
ascertain and that a reasonable amount of liquidated damages, which amount shall
not be construed to be a penalty, shall be calculated as follows:

         A. In the event that Licensee fails to comply with the Quota, then it
is agreed that Licensee shall pay Southland an amount equal to [***] percent
([***]%) times the total, for the immediately preceding month, of the Monthly
Gross Sales for all Convenience Stores operated or sublicensed by Licensee in
the Licensed Territory pursuant to this Agreement, divided by the number of
Convenience Stores licensed or sublicensed by Licensee in the Licensed Territory
pursuant to this Agreement in operation during the entire month, multiplied by
the number of Convenience Stores which Licensee is in default, far each month
during which Licensee fails to comply with the Quota. Such amounts shall be paid
at the same time and added to the amount paid as a continuing royalty and
service fee pursuant to this Agreement.

----------
         [***]Text omitted pursuant to a request for confidential treatment and
              filed separately with the Securities and Exchange Commission.

                                       19
<PAGE>

         B. The parties agree that in the event the number of Convenience Stores
operating hereunder falls below the Quota, and an Agreement regarding a reduced
Quota cannot be agreed upon, then either party may require mediation and/or
arbitration to determine what the Quota should be.

         C. Should Licensee default in the performance of its obligations and
duties under Section VI, paragraphs B and E, with respect to sustaining the good
will and prestige of the Trademarks, and fails to cure the act or omission
causing such default after reasonable notice and opportunity to cure, then
Licensee shall pay to Southland an amount equal to [***] percent ([***]%) times
the Monthly Gross Sales, including any continuing royalty or service fee
provided herein, for each of the Convenience Stores operated or sublicensed by
Licensee in the Licensed Territory, which is in default, for each month during
which Licensee is in default or suit is pending with respect to such default, or
for each month during which the act or omission causing the default was in
existence, whichever is shorter.

         D. Any amounts paid pursuant to the provisions of this section shall be
deemed to be payments of royalty.

         E. In the event the Licensee does not have at least one (1) Store
operating for a full twelve (12) calendar months in any Metropolitan Statistical
Area ("MSA") as defined by the U.S. Government, within the Licensed Territory,
then Southland shall have the right to declare the MSA's as no longer being a
part of the Licensed Territory, immediately upon written notice to Licensee. At
that time, Southland will be free to re-license or operate in, or do anything
else it desires with that MSA. The city of "Big Spring, Texas," shall, for
purposes of this Agreement, be considered to be a part of the "Midland-Odessa"
MSA.

SECTION XI. RELATIONSHIP OF PARTIES.

         Licensee is an independent contractor, and neither Licensee nor its
employees or Sublicensees are or are to be construed to be either legal or
implied agents, servants or employees of Southland and have no authority
whatsoever to act for or on behalf of Southland. No acts or assistance given by
Southland pursuant to this Agreement will be construed to alter this
relationship. It is the intention of the parties that Licensee will exercise
control over the manner and means of the operation of its business pursuant to
this Agreement. Licensee will have no right or authority and will not attempt to
negotiate, enter, permit or cause its employees or Sublicensees to negotiate or
attempt to or enter into contracts or commitments of any nature in the name of
or on behalf of Southland that provide for successor liability or that purport
to bind Southland in any respect whatsoever.

----------
         [***]Text omitted pursuant to a request for confidential treatment and
              filed separately with the Securities and Exchange Commission.

                                       20
<PAGE>

SECTION XII. NOTICES.

         A. Any notice, request, demand or statement herein required or desired
to be given by either party to the other, shall be in writing in an envelope
addressed:

if to LICENSEE:            SOUTHWEST CONVENIENCE STORES, INC.
                           Attn:  Donald E. Wood, President
                           415 N. Grant Avenue (79761)
                           P.O. Box 711
                           Odessa, TX 79760

with a copy to:

                           TODD, BARRON & THOMASON, P.C.
                           Attn:  Jimmie B. Todd
                           3800 E. 42nd Street, Suite 409
                           Odessa, TX 79762

if to SOUTHLAND:           THE SOUTHLAND CORPORATION
                           Attn:  Southland Licensing Group
                           2711 North Haskell Avenue
                           Dallas, Texas 75204
                           Facsimile No. 214/841-6590

with a copy:               Attn: Legal Department
                           Facsimile No. 214/841-6574

and shall be deemed given or delivered:

                  (1) upon personal delivery at the above addresses to a
corporate officer of Licensee or Southland; or

                  (2) if dispatched via telegraph, cable or facsimile to the
above addresses or numbers, ninety-six (96) hours after submission to telegraph
or cable company or after transmitted; or

                  (3) seven (7) days after posting in United States mail to the
above addresses, if deposited in the post office first class air mail postage
prepaid, registered or certified, return receipt requested.

         Either party may from time to time designate by notice to the other
party another address in lieu of the address stated herein.

         B. In the event of a postal strike in the United States, notices shall
only be effective when given pursuant to paragraphs (1) through (3) of
subsection A of this Section XII until regularly scheduled postal delivery has
resumed.

                                       21
<PAGE>

SECTION XIII. RIGHT OF FIRST REFUSAL.

         A. If, at any time after the Effective Date Licensee receives a bona
fide offer for the purchase of all or any part of Licensee's business (or
ownership) under this Agreement which Licensee decides to accept, Licensee
agrees that Southland, or its nominee or designee, will have and is hereby
granted an option to purchase said business upon the same terms and conditions
as such bona fide offer. Immediately after receipt of such offer, Licensee will
give Southland notice of all of the terms and provisions thereof. Southland or
its nominee or designee will have thirty (30) days after receipt of all
necessary documents within which to review the offer and to notify Licensee of
its election. The failure of Southland or its nominee or designee to exercise
the option provided in this Section XIII will not affect Southland's right to
approve any assignment of this Agreement to such purchaser or a later purchaser.
Licensee's right to unilaterally terminate this Agreement will not apply in the
event Licensee has received a bona fide offer to purchase all or a portion of
Licensee's assets or business and until Southland has had the right to exercise
or decline this right.

         B. Should Southland, its nominee or designee decline to exercise the
right of first refusal and should Southland approve such purchaser, conditions
precedent to such purchaser's assignment are that:

                  (1) such purchaser executes a release in favor of Southland
(in a form acceptable to Southland) of any and all claims against Southland for
any amount paid by such purchaser to Licensee or by Licensee to Southland prior
to, or relating to the periods prior to, the purchase of Licensee's business (or
portion thereof) by such purchaser and for all representations or statements
made by Licensee or its agents;

                  (2) such purchaser executes (in form acceptable to Southland)
an assumption of the applicable portions of this Agreement or, at Southland's
option, a new area license agreement, and a release of Southland with respect
thereto;

                  (3) Licensee executes (in form acceptable to Southland):

                        (a) an assignment to such purchaser of the applicable
portions of this Agreement or, as appropriate, a termination and release of this
Agreement; and

                        (b) an indemnity for claims by such purchaser against
Southland released as provided in Paragraph (1) of this subsection B of this
Section XIII;

                  (4) Licensee pays in full any amount then due from Licensee to
Southland;

                  (5) such purchaser agrees to submit personnel to training by
Southland and pay a reasonable fee reimbursing Southland in an amount determined
by Southland; and

                  (6) such purchaser agrees to pay Southland's legal expenses
and costs associated with effecting the assignment.

                                       22
<PAGE>

         C. Licensee's right of first refusal and first option.

                  (1) If, at any time after the Effective Date, but before any
Effective Termination of this Agreement, Southland receives a bona fide offer to
license any one or more or all of the counties listed on Exhibit A-1 as
"Optional Licensed Territory," Southland agrees that Licensee shall have the
first right of refusal to license those counties, within the Optional Licensed
Territory, which are subject to the offer and upon the same terms and conditions
as such bona fide offer. Immediately after the receipt of such offer, Southland
will give Licensee notice of all the terms and provisions thereof. Licensee will
have thirty (30) days after receipt of all necessary documents within which to
review the offer and to notify Southland of its election to exercise or not its
right of first refusal to license. In the event Licensee declines to license
such counties, they may be licensed to others, but Licensee's failure to
exercise this right shall not preclude Licensee from utilizing this right on
counties still available in the Optional Licensed Territory.

                  (2) In the event Southland determines that it will begin
operations in any of the counties listed on Exhibit A-1, "Optional Licensed
Territory," Southland will first provide Licensee the right to license such
counties on whatever terms Southland reasonably deems appropriate for such
counties (including, but not limited to, License Fees, Royalty, Quota and other
appropriate provisions) and upon the execution of an amendment to this License
Agreement evidencing all of those terms and satisfactory to both.

                        Southland will provide Licensee with the necessary
information and Licensee shall have thirty (30) days from the date of receipt of
that information to notify Southland of its election to accept or reject the
offered terms.

                  (3) In the event Licensee elects to exercise the right of
first refusal, Licensee shall execute an amendment to this Agreement,
satisfactory to both parties, covering such counties in the Optional Licensed
Territory as are required under this right.

                  (4) Neither the failure to exercise nor the partial exercise
of this right of first refusal or the right of first option to license shall be
deemed a waiver or foreclosure of a subsequent full or partial (depending upon
circumstances) exercise of those rights.

SECTION XIV. LICENSEE'S OBLIGATION AS SUBLICENSOR.

         A. In connection with any Convenience Stores to be operated by
individual store franchisees of Licensee, Licensee hereby covenants and agrees
that Licensee shall not sell franchises pursuant to this Agreement except in
compliance with the applicable franchise laws, including registration prior to
selling or negotiating the sale of franchises in any state where so required.

                                       23
<PAGE>

         B. Licensee shall comply with all applicable state and federal laws in
connection with any offer to sell, solicitation of any offer to purchase, sale,
or transfer a franchise, or in connection with the operation or termination of
franchises. Upon Licensee's request, Southland will provide Licensee copies of
Southland's franchise offering circulars and provide such other reasonable
information necessary to enable Licensee to comply with applicable franchise
laws regarding presale disclosure.

         C. Concurrent with (i) the filing of any Uniform Franchise Offering
Circulars or other franchising materials with any governmental agency in any
states within the Licensed Territory or in any way connected with 7-Eleven
Stores in the Licensed Territory, or (ii) the use of any such materials in any
states within the Licensed Territory or in any way connected with 7-Eleven
Stores in the Licensed Territory, Licensee shall provide copies to Southland of
any and all Uniform Franchise Offering Circulars, annual reports, and any other
documentation prepared or used by Licensee in order to comply with any state or
federal law, rule, or regulation with regard to any offer to sell, solicitation
of any offer to purchase, sale, or transfer of a franchise, or in connection
with the operation of franchises, including all materials submitted to any state
agency for filing or registration purposes.

         D. Nothing herein shall be construed as allowing Licensee to sublicense
any geographic territory (except for single store licenses or franchises
contemplated above) within the Licensed Territory.

SECTION XV. ARBITRATION AND MEDIATION.

         A. Unless prohibited by applicable law, any controversy or claim
arising out of or relating to this Agreement, or a breach hereof, except for a
claim of termination by either party, will be settled by arbitration to be held
in Dallas, Texas or such other location as may be agreed upon by the parties.
Any such arbitration shall be conducted in accordance with the Arbitration Rules
of the American Arbitration Association (the "Association"), and judgment upon
any award rendered by the arbitrator may be entered in any court having
jurisdiction thereof.

         B. A demand for arbitration:

                  (1) if based in whole or in part on wrongful termination,
shall be filed with the Association within thirty (30) days after a notice of
termination is received (as determined in Section XII, above);

                  (2) if based on any other ground, may be filed with the
Association and served on the other party at any time during the term of this
Agreement, or within the period provided by the applicable statute of
limitations; and

                  (3) shall contain a statement setting forth the nature of the
dispute, the amount involved, if any, and the remedy sought.

                                       24
<PAGE>

         C. Arbitration will not proceed until any protest of arbitrability is
resolved by an appropriate court, if necessary. The arbitrator will have
authority to assess damages sustained by reason of any breach or wrongful
termination of this Agreement. The parties will share equally all expenses of
the arbitrator and the Association, and each party will bear its own expenses
incident to the arbitration.

         D. The arbitrator will not extend, modify or suspend any of the terms
of this Agreement or the reasonable standards of business performance set by
Southland in good faith. The decision of the arbitrator within the scope of this
submission (as provided in this Section XV) shall be final and binding on all
parties and any right to judicial action on any matter subject to arbitration
hereunder is hereby waived, except suit to enforce the arbitration award.

         E. If the rules of the Association differ from this Section XV, the
provisions herein shall control.

         F. Notwithstanding the above, the parties hereto agree to voluntarily
submit disagreement issues to mediation under a professional mediation
organization, before resulting to arbitration.

SECTION XVI. GENERAL CONDITIONS.

         A. This Agreement is the complete and only agreement between the
parties, and all negotiations, representations and prior written or oral
understandings are merged herein. This Agreement will not be modified or changed
except in writing executed by both parties hereto.

         B. This Agreement will be binding upon and inure to the benefit of the
parties hereto and their respective legal representatives, successors and
assigns.

         C. The captions herein are for the convenience of the parties and will
not be considered in any question of interpretation or construction of this
Agreement.

         D. Either party hereto will have the right to require specific
performance of the other party.

         E. Southland has not and does not warrant or represent that any printed
manuals or forms or other materials which it has furnished or will furnish
Licensee hereunder are valid or enforceable in the Licensed Territory as written
and expressly disclaims any warranties or representations regarding the value or
results to be obtained from use by Licensee or its Sublicensees of any material
or information furnished by Southland hereunder, which shall be the sole
responsibility of Licensee, and further, Southland disclaims any warranties of
merchantability or fitness for any particular purpose, whether or not intended.

         F. The failure of either party to enforce at any time or for any period
of time any provision of this Agreement will not be construed to be a waiver of
such provision or of the right of such party thereafter to enforce each such
provision.

                                       25
<PAGE>

         G. In all references herein to any parties, persons, entities or
corporations, the use of any particular gender or the plural or singular number,
is intended to include the appropriate gender or number as the text of this
Agreement may require.

         H. It is understood and agreed that where any approval or consent is
herein required, same shall not be unreasonably withheld.

         I. Notwithstanding anything herein to the contrary, and except for the
purposes of Royalty payments due, Southland and/or Licensee shall not be
responsible in damages to the other for any failure or delay in performance
hereunder due to (1) any governmental act or regulation; (2) war, civil
commotion, earthquake, fire, flood or other disaster or similar event or (3) any
other event beyond such party's control; provided, however, such party shall
take all steps reasonably possible to mitigate damages caused by such failure or
delay. Notwithstanding the foregoing, if such failure or delay shall continue
for more than one hundred and eighty (180) days, the party against whom such
failure or delay affects most detrimentally shall have the right at any time
thereafter during the continuance of such failure or delay to terminate this
Agreement under subsection A of Section VIII hereof by giving thirty (30) days
prior notice thereof to Licensee.

         J. Neither Southland nor Licensee shall issue or cause to be issued any
press release, publicity or other public statement concerning this Agreement
without the prior written consent of the other party.

         K. If any provision of this Agreement, except payments from Licensee to
Southland, is held by a court of competent jurisdiction to be invalid, the
remainder hereof will not be affected thereby.

         L. All payments due Southland hereunder shall be made in United States
dollars in the United States or such other place as Southland may designate in
writing.

         M. This Agreement shall be construed under the laws of Texas, United
States of America. For purposes of any controversy or claim arising out of or
relating to this Agreement or to enforce any term, representation, warranty,
covenant or condition herein contained, Licensee and Southland hereby submit to
the jurisdiction in Dallas County, Texas, United States of America.

         N. This Agreement shall be executed in duplicate, which together will
constitute a single original.

         O. All confidential and trade secret information of Southland which
Licensee obtains hereunder will be used exclusively by Licensee, its
representatives and employees solely for the purpose set forth herein. Such
information shall not be disclosed to any party not specifically authorized
hereunder to receive same, in any manner whatsoever, in whole or in part,
without the prior written consent of Southland and shall not be reproduced,
distributed or revealed in whole or in part to any person other than to
Licensee's representatives and employees each of whom have been informed of the
confidential and proprietary nature of such information.

                                       26
<PAGE>

         IN WITNESS WHEREOF, Southland and License have executed this Agreement
this 2nd day of June 1993.

                                            THE SOUTHLAND CORPORATION
ATTEST:

By       /s/ Edward Herman                  By  /s/ Adrian O. Evans
         ---------------------------            -------------------
         Edward Herman                          Adrian O. Evans
         Assistant Secretary                    Vice President

                                            LICENSEE
                                            SOUTHWEST CONVENIENCE STORES, INC.
ATTEST:

By       /s/ Jack Wood                      By  /s/ Donald E. Wood
         ---------------------------            ------------------
         Jack Wood                              Donald E. Wood
         Secretary                              President

                                       27
<PAGE>

                                    EXHIBIT A
                               LICENSED TERRITORY

The License to be granted covers the following counties in the States of Texas
and New Mexico:

<Table>
<Caption>
TEXAS                                                            NEW MEXICO
<S>                             <C>                              <C>
Andrews                         Pecos                            Bernalillo
Bailey                          Presidio                         Catron
Borden                          Reagan                           Chaves (1)
Brewster                        Reeves                           Cibola
Cochran                         Scurry                           Curry
Crane                           Sterling                         De Baca
Crockett                        Terrell                          Dona Ana
Crosby                          Terry                            Eddy
Culberson                       Upton                            Grant
Dawson                          Ward                             Guadalupe
Ector                           Winkler                          Hidalgo
El Paso                         Yoakum                           Lea
Floyd                                                            Lincoln
Gaines                                                           Los Alamos (2)
Garza                                                            Luna
Glasscock                                                        McKinley
Hale                                                             Otero
Hockley                                                          Quay
Howard                                                           Roosevelt
Hudspeth                                                         San Miguel
Jeff Davis                                                       Sandoval
Lamb                                                             Santa Fe (2)
Loving                                                           Sierra
Lubbock                                                          Socorro
Lynn                                                             Taos
Martin                                                           Torrance
Midland                                                          Union
Mitchell                                                         Valencia
</Table>

1.       Not part of the Licensed Territory until a 5-year, 5-mile noncompete is
         completed, which will end at December 31, 1994.

2.       Not part of the Licensed Territory until a 5-year noncomplete is
         completed, which will end at December 31, 1993.

                                             Southland /s/ Adrian O. Evans
                                                       -------------------------

                                             Licensee  /s/ Donald E. Wood
                                                       -------------------------

                                             Date June 2, 1993
                                                  ------------------------------

<PAGE>

                                   EXHIBIT A-1

                           OPTIONAL LICENSED TERRITORY

The following counties in the state of Texas shall be subject to the right of
first refusal and right of option to license to the extent, and as set out in
subsection C of Section XIII of this agreement.

                                  Callahan
                                  Carson
                                  Coke
                                  Dallam
                                  Gray
                                  Irion
                                  Jones
                                  Nolan
                                  Oldham
                                  Potter
                                  Randall
                                  Schleicher
                                  Shackelford
                                  Sutton
                                  Taylor
                                  Tom Green
                                  Wheeler

<PAGE>

                                    EXHIBIT B

                   LIST OF CONVENIENCE STORES AND TRUCK STOPS

                   OWNED/LEASED BY ENTITY RELATED TO LICENSEE

<Table>
<S>                  <C>                                  <C>
1.  Merit Store      721 W. County Road                   Odessa, TX 79763

2.  Merit Store      1800 N. Big Spring                   Midland, TX 79763

3.  Merit Store      4525 E. University                   Odessa, TX 79762

4.  Merit Store      8468 W. University                   Odessa, TX 79764

5.  Merit Store      317 N. Dixie                         Odessa, TX 79761

6.  Merit Store      3700 Andrews Hwy.                    Odessa, TX 79762

7.  Merit Store      1000 N. Golder                       Odessa, TX 79761

8.  Truck Stop       Rt. 1, Box 583                       Longview, TX 75602
                     I-20 & Exit 599

9.  Truck Stop       P.O. Box 10                          Las Cruces, NM 88004
                     I-20 & Exit 155

10. Truck Stop       2400 W. Loop 250                     Midland, TX 79701
</Table>

                                     Southland /s/ Adrian O. Evans
                                               ---------------------------------

                                     Licensee  /s/ Donald E. Wood
                                               ---------------------------------

                                     Date June 2, 1993
                                          --------------------------------------

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}]]