Exhibit 10.42
[Sonic Automotive
Letterhead]
March 12, 2009
Mr. Thomas Eckert
Capital Automotive Real Estate Services,
Inc.
8270 Greensboro Drive
McLean, VA 22102
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RE:
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Amendment of
lease renewal terms relating to those certain Lease Agreements and
the corresponding Landlords, Properties, Tenants and Guarantors
between affiliates of Capital Automotive Real Estate Services, Inc.
(“Capital Automotive”) and affiliates of the Sonic
Automotive, Inc. (“Sonic”) as listed on the attached
Exhibit A (collectively, the “Leases”). All
capitalized terms not defined herein shall have the meanings
attributed to such terms as in the Leases.
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Dear Tom,
Sonic and Capital Automotive have
agreed to extend the existing lease Renewal Terms listed in certain
of the Leases from five (5) year to ten (10) year terms.
This letter will confirm Sonic and Capital Automotive’s
agreement to have their respective subsidiaries execute amendments
evidencing the respective changes for each Lease as specifically
noted on the attached Exhibit A . The parties agree that
time is of the essence in this matter, and that the parties will
execute, or cause the applicable affiliate to execute, these
amendments within two (2) weeks after Capital Automotive
delivers to Sonic the amendments for execution. If the lease
amendments are not executed within such time frame (unless
otherwise extended in writing by the parties), then the changes
outlined on Exhibit A are deemed to have automatically taken effect
as if each lease amendment had been executed.
Except as set forth above, nothing
in this letter nor any conversations we may have shall constitute
an amendment to or modification of the parties’ obligations
under the Leases and other documents unless formally approved by
the parties and agreed to in writing.
If the foregoing is acceptable to
you, please execute a copy of this letter below. If you have any
questions, please let us know.
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Sincerely,
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Sonic
Automotive, Inc.
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By: David P.
Cosper
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Its: Vice
Chairman and CFO
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[signatures
continue on next page]
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Page 2
March 12, 2009
Seen and Agreed:
Capital Automotive Real Estate Services,
Inc.
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By: Thomas
Eckert
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Its: President
and Chief Executive Officer
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Stacey Barnet
Chris Sokira
Linda Nguyen
Jay M. Ferriero
Exhibit A
CARS Term Dates and Renewal
Options
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Property ID
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Title of
Next
Lease
Amendment
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Landlord Entity
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Original Tenant Entity
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Lease
Date
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Guaranty Date
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Lease
Expiration
date
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Remaining
Renewal Options
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FMV
Rent
Reset at
2nd
renewal
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Lease Amendment re:
Renewal to:
(6 different colors for the
6 different scenarios)
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Additional Lease
Amendment to:
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Clearwater
Toyota
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SON-001, 002
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1st
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CARS-DB4,
L.P.
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Sonic
Automotive, Inc.
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9/18/1998
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NO GUARANTY, Sonic is the
Tenant
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12/31/2012
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One 5 yr option
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n/a
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1st option
exercised; change remaining 5-yr option to one 10-yr
option
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Sonic
Automotive, Inc. is Tenant, so there is no Guaranty, but there are
no financial covenants in the lease. Need to add covenants to lease
amendment.
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Toyota
West
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SON-013
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2nd
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MMR Holdings,
LLC
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Sonic
Automotive-1500 Automall Drive, Columbus, Inc.
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8/13/1999
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8/13/1999
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1/31/2014
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One 5 yr option
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n/a
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1st option
exercised; change remaining 5-yr option to one 10-yr
option
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Hatfield
Hyundai
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SON-014
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2nd
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MMR Holdings,
LLC
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Sonic
Automotive-1400 Automall Drive, Columbus, Inc.
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8/13/1999
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NO GUARANTY on network, most likely
8/13/99
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1/31/2014
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One 5 yr option
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n/a
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1st option
exercised; change remaining 5-yr option to one 10-yr
option
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Mercedes Benz of
Daytona Beach
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SON-023
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2nd
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MMR Holdings,
LLC
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Sonic
Automotive-1720 Mason Ave., DB, LLC
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8/13/1999
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8/13/1999
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10/14/2013
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One 5 yr option
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n/a
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1st option
exercised; change remaining 5-yr option to one 10-yr
option
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Capitol
Chevrolet, SC
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SON-099
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2nd
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CAR SON NEWSOME
II L.L.C.
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Sonic-Newsome
Chevrolet World, Inc.
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12/23/2003
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12/23/03
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6/24/2019
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Four 5 yr options
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YES
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change all four
5-yr options to 10-yr options
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Town &
Country Toyota
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SON-005
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5th
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MMR Holdings,
LLC
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Marcus David
Corporation
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8/13/1999
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8/13/1999
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5/31/2022
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Two 5 yr options
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YES
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change both 5-yr
options to 10-yr options
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Infiniti of
Charlotte—dealership
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SON-006
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5th
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MMR Holdings,
LLC
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Sonic
Automotive-9103 E. Independence , NC, LLC
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8/13/1999
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8/13/1999
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12/30/2019
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Two 5 yr options
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YES
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change both 5-yr
options to 10-yr options
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Hatfield
VW—Improvements
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SON-015
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3rd
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CARS CNI-2
L.P.
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Sonic
Automotive-1495 Automall Drive, Columbus, Inc.
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8/13/1999
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8/13/1999
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12/28/2019
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Two 5 yr options
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n/a
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change both 5-yr
options to 10-yr options
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Hatfield
Kia/VW
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SON-016
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3rd
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MMR Holdings,
LLC
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Sonic
Automotive-1455 Automall Drive, Columbus, Inc.
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8/13/1999
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8/13/1999
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1/31/2016
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Two 5 yr options
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n/a
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change both 5-yr
options to 10-yr options
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Lute Riley
Honda
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SON-019
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3rd
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CAR SON TX LUTE
L.L.C.
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Sonic-Lute
Riley, L.P.
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8/13/1999
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8/13/1999
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7/1/2019
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Two 5 yr options
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n/a
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change both 5-yr
options to 10-yr options
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Pensacola
Honda—dealership
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SON-030, 069
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5th
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MMR Holdings,
LLC
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Sonic-Shottenkirk, Inc.
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9/01/1999
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9/1/1999
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12/22/2017
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Two 5 yr options
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YES
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change both 5-yr
options to 10-yr options
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Global
BMW—dealership
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SON-032
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5th
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CARS-DB4,
L.P.
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Sonic-Global
Imports, L.P.
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8/13/1999
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8/13/1999
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11/6/2021
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Two 5 yr options
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YES
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change both 5-yr
options to 10-yr options
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Century
BMW—dealership
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SON-049
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3rd
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MMR Holdings,
LLC
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Sonic Automotive
2752 Laurens Rd., Greenville, Inc.
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8/13/1999
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8/13/1999
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12/22/2017
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Two 5 yr options
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n/a
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change both 5-yr
options to 10-yr options
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BMW of
Fairfax—2008 Image Upgrade
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SON-055, 056
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6th
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MMR Holdings,
LLC
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Sonic-Manhattan
Fairfax, Inc.
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8/13/1999
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8/13/1999
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9/25/2016
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Two 5 yr options
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YES
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change both 5-yr
options to 10-yr options
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Fort
Myers
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SON-062, 063, 064, 068
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5th
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CAR SONFREE,
LLC
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Sonic-FM
Automotive, LLC, Sonic FM, Inc., Sonic Freeland, Inc. and Sonic-FM
Nissan, Inc.
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11/04/1999
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11/4/1999
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12/22/2017
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Two 5 yr options
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n/a
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change both 5-yr
options to 10-yr options
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Amend lease
to add Mini & VW new tenants, delete Nissan tenant: SAI Fort
Myers B, LLC (dba MINI of Fort Myers) and Sonic-FM VW, Inc (dba VW
of Fort Myers)
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Capital
Chevrolet, AL—dealership
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SON-070
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3rd
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CAR SON CAP CHVY
L.L.C.
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Capitol
Chevrolet and Imports, Inc.
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9/28/2000
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9/28/2000
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9/25/2016
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Two 5 yr options
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YES
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change both 5-yr
options to 10-yr options
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Fort Mill
Ford
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SON-073-Lease1
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2nd
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SRE SOUTH
CAROLINA-1, LLC
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Fort Mill Ford,
Inc.
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12/19/2000
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12/19/2000
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12/18/2015
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Two 5 yr options
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YES
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change both 5-yr
options to 10-yr options
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Toyota of Ft
Worth—used cars
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SON-074
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3rd
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SON MCKNY II
L.P.
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Sonic-Fort Worth
T, L.P.
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1/23/2001
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1/22/2001
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12/22/2017
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Two 5 yr options
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YES
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change both 5-yr
options to 10-yr options
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City
Chevrolet
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SON-075
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2nd
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CARS CNI-2
L.P.
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Sonic - West
Reno Chevrolet, Inc.
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10/16/2001
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10/16/2001
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10/15/2016
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Two 5 yr options
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YES
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change both 5-yr
options to 10-yr options
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Lone Star
Chevrolet
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SON-076
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2nd
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CARS-DB4,
L.P.
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Lawrence
Marshall Chevrolet, L.P.
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10/31/2001
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10/29/2001
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10/31/2025
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Two 5 yr options
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YES
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change both 5-yr
options to 10-yr options
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Don Massey
Cadillac-Plymouth
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SON-077
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1st
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CAR SON MAS,
L.P.
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Sonic-Plymouth
Cadillac, Inc.
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3/29/2002
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3/29/2009
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3/28/2017
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Two 5 yr options
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YES
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change both 5-yr
options to 10-yr options
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Capital
Hummer—Lansing
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SON-078
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2nd
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CAR SON MAS,
L.P.
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Sonic-Capitol
Cadillac, Inc.
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3/29/2002
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03/29/09
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3/29/2020
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Two 5 yr options
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YES
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change both 5-yr
options to 10-yr options
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Crest
Cadillac-Nashville
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SON-080
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2nd
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CARS CNI-2
L.P.
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Sonic-Crest
Cadillac, LLC
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3/29/2002
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03/29/09
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12/20/2020
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Two 5 yr options
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YES
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change both 5-yr
options to 10-yr options
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Crest
Honda
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SON-081
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1st
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CAR SON MAS TN
II L.L.C.
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Sonic-Crest H,
LLC
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5/20/2002
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05/20/02
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12/19/2022
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Two 5 yr options
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YES
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change both 5-yr
options to 10-yr options
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