Document:

EX-4.11 Supplemental Indenture, dated 10/18/07

 

Exhibit 4.11

SUPPLEMENTAL INDENTURE

SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of October 18, 2007, among
AutoNation, Inc., a Delaware corporation (the “Company”), AN Luxury Imports of Tucson, Inc. (the
“Guaranteeing Subsidiary”), which is an indirect subsidiary of the Company (or its permitted
successor), and Wells Fargo Bank, National Association, as trustee under each indenture referred to
below (the “Trustee”).

W I T N E S S E T H

     WHEREAS, the Company, has heretofore executed and delivered to the Trustee an indenture, dated
as of August 10, 2001 (and supplemented as of April 30, 2002, November 7, 2002, March 29, 2004,
November 3, 2005, April 5, 2006 and March 19, 2007), providing for the issuance of 9% Senior Notes
due 2008 (the “9% Senior Notes”);

     WHEREAS, the Company has heretofore executed and delivered to the Trustee an indenture, dated
as of April 12, 2006 (and supplemented as of August 17, 2006 and January 24, 2007), providing for
the issuance of Floating Rate Senior Notes due 2013 and 7% Senior Notes due 2014 (together with the
9% Senior Notes, the “Notes”);

     WHEREAS, each indenture provides that the Guaranteeing Subsidiary shall execute and deliver to
the Trustee a supplemental indenture pursuant to which the Guaranteeing Subsidiary shall
unconditionally guarantee all of the Company’s obligations under the Notes and each indenture on
the terms and conditions set forth herein (the “Guarantee”); and

     WHEREAS, pursuant to Section 9.1 of each indenture, the Trustee is authorized to execute and
deliver this Supplemental Indenture.

     NOW THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the Company, the Guaranteeing
Subsidiary and the Trustee mutually covenant and agree for the equal and ratable benefit of the
Holders of the Notes as follows:

     1. Capitalized Terms. Capitalized terms used herein without definition shall have the
meanings assigned to them in each indenture.

     2. Agreement to Guarantee. The Guaranteeing Subsidiary hereby agrees as follows:

	 	(a)	 	To jointly and severally Guarantee to each Holder of a Note
authenticated and delivered by the Trustee and to the Trustee and its
successors and assigns, irrespective of the validity and enforceability of each
indenture, the Notes or the obligations of the Company hereunder or thereunder,
that:

	 	(i)	 	the principal of and interest on the Notes will
be promptly paid by the Company in full when due, whether at maturity,
by acceleration, redemption or otherwise, and interest on the overdue
principal of and interest on the Notes, if any, if lawful, and all
other obligations of the Company to the Holders or the Trustee
hereunder or thereunder will be promptly paid by the Company in full or
performed by the Company, all in accordance with the terms hereof and
thereof; and
	 
	 	(ii)	 	in case of any extension of time of payment or
renewal of any Notes or any of such other obligations, that same will
be promptly paid by the Company in full when due or performed by the
Company in accordance with the terms of the extension or renewal,
whether at stated maturity, by acceleration or otherwise.

	 	 	 	Failing payment when due by the Company of any amount so guaranteed or any
performance so guaranteed which failure continues for three days after
demand therefor is made to the Company for whatever reason, the Guarantors
shall be jointly and severally obligated to pay the same immediately.
	 
	 	(b)	 	The obligations hereunder shall be unconditional, irrespective
of the validity, regularity or enforceability of the Notes or each indenture,
the absence of any action to enforce the same, any waiver or consent by any
Holder of the Notes with respect to any provisions hereof or thereof, the
recovery of any judgment against the Company, any action to

 

 

	 	 	 	enforce the same or any other circumstance which might otherwise constitute a
legal or equitable discharge or defense of a Guarantor.
	 
	 	(c)	 	The following is hereby waived: diligence, presentment, demand
of payment (except as specifically provided in (a) above), filing of claims
with a court in the event of insolvency or bankruptcy of the Company, any right
to require a proceeding first against the Company, protest, notice and all
demands (except as specifically provided in (a) above) whatsoever.
	 
	 	(d)	 	This Guarantee shall not be discharged except (i) by complete
performance of the obligations contained in the Notes and each indenture or
(ii) as provided in Section 5 hereof.
	 
	 	(e)	 	If any Holder or the Trustee is required by any court or
otherwise to return to the Company, the Guarantors, or any Custodian, Trustee,
liquidator or other similar official acting in relation to either the Company
or the Guarantors, any amount paid by either to the Trustee or such Holder,
this Guarantee, to the extent theretofore discharged, shall be reinstated in
full force and effect.
	 
	 	(f)	 	The Guaranteeing Subsidiary shall not be entitled to any right
of subrogation in relation to the Holders in respect of any obligations
guaranteed hereby until payment in full of all obligations guaranteed hereby.
	 
	 	(g)	 	As between the Guarantors, on the one hand, and the Holders and
the Trustee, on the other hand, (x) the maturity of the obligations guaranteed
hereby may be accelerated as provided in Article 6 of each indenture for the
purposes of this Guarantee, notwithstanding any stay, injunction or other
prohibition preventing such acceleration in respect of the obligations
guaranteed hereby, and (y) in the event of any declaration of acceleration of
such obligations as provided in Article 6 of each indenture, such obligations
(whether or not due and payable) shall forthwith become due and payable by the
Guarantors for the purpose of this Guarantee, failing payment when due by the
Company which failure continues for three days after demand therefor is made to
the Company.
	 
	 	(h)	 	The Guarantors shall have the right to seek contribution from
any non-paying Guarantor so long as the exercise of such right does not impair
the rights of the Holders under the Guarantee.

     3. Execution and Delivery. The Guaranteeing Subsidiary agrees that the Guarantees
shall remain in full force and effect notwithstanding any failure to endorse on each Note a
notation of such Guarantee.

     4. Guaranteeing Subsidiaries May Consolidate, Etc. on Certain Terms. No Guaranteeing
Subsidiary may sell nor otherwise dispose of all or substantially all of its assets, or consolidate
with or merge with or into (whether or not such Guarantor is the surviving Person) another
corporation, Person or entity whether or not affiliated with such Guarantor except to the extent
limited by the provisions set forth in each indenture, including, without limitation, Section 5.1
of each indenture.

     5. Releases. The Guarantee of the Guaranteeing Subsidiary will be released in
accordance with the provisions set forth in each indenture, including, without limitation, Section
10.4 of each indenture. The Trustee will provide any written confirmation or evidence of the
termination of such Guarantee as reasonably required by the Company. Any Guarantor not released
from its obligations under its Guarantee shall remain liable for the full amount of principal of
and interest on the Notes and for the other obligations of any Guarantor under each indenture as
provided in Article 10 of each indenture.

     6. No Recourse Against Others. No director, officer, employee, incorporator,
stockholder or agent of any of the Guaranteeing Subsidiary, as such, shall have any liability for
any obligations of the Company or the Guaranteeing Subsidiary under the Notes, each indenture, any
Guarantees or this Supplemental Indenture or for any claim based on, in respect of, or by reason
of, such obligations or their creation. Each Holder of Notes by accepting a Note waives and
releases all such liability. The waiver and release are part of the consideration for issuance of
the Notes. Such waiver may not be effective to waive liabilities under the federal securities
laws.

2

 

     7. New York Law to Govern. THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND
BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE.

     8. Counterparts. The parties may sign any number of copies of this Supplemental
Indenture. Each signed copy shall be an original, but all of them together represent the same
agreement.

     9. Effect of Headings. The Section headings herein are for convenience only and shall
not affect the construction hereof.

     10. The Trustee. The Trustee shall not be responsible in any manner whatsoever for or
in respect of the validity, legality or sufficiency of this Supplemental Indenture or for or in
respect of the recitals contained herein, all of which recitals are made solely by the Guaranteeing
Subsidiaries and the Company.

     IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly
executed and attested, all as of the date first above written.

	 	 	 	 	 
	 	AUTONATION, INC.

 	 
	 	By:  	/s/ C. Coleman G. Edmunds
 	 
	 	 	Name:  	C. Coleman G. Edmunds 	 
	 	 	Title:  	Vice President, Deputy General Counsel 	 
	 
	 	AN Luxury Imports of Tucson, Inc.

 	 
	 	By:  	/s/ C. Coleman G. Edmunds
 	 
	 	 	Name:  	C. Coleman G. Edmunds 	 
	 	 	Title:  	Assistant Secretary 	 
	 

[SIGNATURES CONTINUE ON NEXT PAGE]

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	 	Wells Fargo Bank, National Association,

As Trustee

 	 
	 	By:  	/s/ Joseph P. O’Donnell
 	 
	 	 	Name:  	Joseph P. O’Donnell 	 
	 	 	Title:  	Vice President 	 
	 

4Exhibit (10)(p)

 

    Exhibit
    (10)(p)

 

    AMENDMENT
    TO EMPLOYMENT AGREEMENT

 

    This Amendment dated
              ,
    2007 (the “Amendment”), to the Employment Agreement
    dated
              ,
         , (the “Employment
    Agreement”) by and between Wachovia Corporation (the
    “Company”) and
              
    (the “Executive”), as subsequently amended.

 

    WHEREAS, certain compensation, benefits and other amounts
    payable under the Employment Agreement are subject to
    Section 409A of the Internal Revenue Code of 1986, as
    amended (“Code Section 409A”);

 

    WHEREAS, the Company and the Executive wish to amend the
    Employment Agreement to comply with the requirements of the
    final regulations under Code Section 409A;

 

    NOW, THEREFORE, for good and valuable consideration, the
    receipt of which is acknowledged hereto, the parties agree as
    follows:

 

    1.     Section 2(b)(vi) of the
    Employment Agreement is amended by deleting the first sentence
    of that section, and by deleting the phrase “SERP
    Agreement” in the first place where it appears in the
    second sentence of that section and substituting the following
    phrase in its place:

 

    the Senior Executive Retirement Agreement, dated
    October 22, 1999, between the Company (as successor to the
    former Wachovia Corporation) and the Executive, as amended (the
    “SERP Agreement”)

 

    2.     Section 3(a) of the
    Employment Agreement is amended to add the following new
    sentence to the end of that section:

 

    Notwithstanding any provision of this Agreement to the contrary,
    if the Executive’s Disability leave is at least six months,
    the Participant shall for purposes of this Agreement be deemed
    to have had a termination of employment on the first day
    following such six-month period and that date shall be treated
    as the Disability Effective Date.

 

    3.     Section 4(a)(i) of the
    Employment Agreement is amended in its entirety to read as
    follows:

 

    (i)     the Company shall pay to the
    Executive in a lump sum in cash within 30 days after the
    Date of Termination the aggregate of (A) the
    Executive’s Annual Base Salary through the Date of
    Termination to the extent not theretofore paid, and (B) the
    product of (1) an Annual Bonus of an amount equal to the
    greater of (x) the highest annual cash incentive bonus paid
    by the Company to the Executive for the three calendar years
    prior to the Date of Termination or (y) the
    Executive’s then applicable “target” incentive
    bonus under the then applicable cash incentive compensation plan
    prior to the Date of Termination (the greater of
    clauses (x) or (y) is defined as the “Base
    Bonus”), and (2) a fraction, the numerator of which is
    the number of days in the fiscal year in which the Date of
    Termination occurs through the Date of Termination, and the
    denominator of which is 365, to the extent no theretofore paid
    (the “Pro Rata Bonus”), (C) any unpaid Annual
    Bonus for the prior year, and (D) any accrued paid time
    off, in each case to the extent not theretofore paid (the sum of
    the amounts described in clauses (A), (B), (C), and
    (D) shall be hereinafter referred to as the “Accrued
    Obligations”).

 

    4.     Section 4(a)(ii) of the
    Employment Agreement is amended in its entirety to read as
    follows:

 

    (ii)     for the thirty-six
    (36) month period beginning immediately after the
    Executive’s Date of Termination and ending on the third
    anniversary of that date (the “Compensation Continuance
    Period”), the Company shall make cash payments to the
    Executive equal in the aggregate to three times the sum of
    (A) the Executive’s highest Annual Base Salary during
    the twelve months immediately prior to the Date of Termination,
    (B) the Base Bonus, and (C) the amount equal to the
    highest matching contribution by the Company to the
    Executive’s account in the Company’s 401(k) plan for
    the five years immediately prior to the Date of Termination (the
    payments described in clauses (A), (B) and (C) shall
    be hereinafter referred to as the “Compensation Continuance
    Payments” and, together with the benefits referred to in
    Sections 4(a)(iii), (iv), (v), (vi) and (vii),

 

    shall be hereinafter referred to as the “Compensation
    Continuance Benefits”). The Compensation Continuance
    Payments shall be made in substantially equal semi-monthly
    payments, and the Company shall withhold from the Compensation
    Continuance Payments all applicable federal, state and local
    taxes.

 

    5.     Section 4(a)(iii) of the
    Employment Agreement is amended by deleting the last sentence of
    that section and by adding the following new sentences in its
    place:

 

    The amount of any life insurance benefits provided under the
    Wachovia Executive Life Insurance Plan (or any successor or
    replacement plan thereto) shall not affect the life insurance
    benefits that may be provided under that plan in any other
    taxable year, and the right to life insurance benefits under
    that plan may not be liquidated or exchanged for any other
    benefit. Notwithstanding the foregoing, if the Company
    reasonably determines that providing continued coverage under
    one or more of its welfare benefit plans contemplated herein
    could adversely affect the tax treatment of other participants
    covered under such plans, or would otherwise have adverse legal
    ramifications, the Company may, in its discretion, provide other
    coverage at least as valuable as the continued coverage through
    insurance.

 

    6.     Section 4(a)(iv) of the
    Employment Agreement is amended to delete the last sentence of
    that section and to substitute the following new sentence in its
    place:

 

    Notwithstanding the termination of the Executive’s
    employment with the Company, all stock options granted to the
    Executive as of the date of this Agreement and during the
    Employment Period will be exercisable until the scheduled
    expiration date of such stock options or, if earlier, the tenth
    (10th) anniversary of the original date on which the stock
    option was granted. In the event any such stock options are
    designated as “incentive stock options” pursuant to
    section 422 of the Code (as defined herein), such stock
    options shall be treated as non-qualified stock options for
    purposes of this sentence to the extent that they are exercised
    after the period specified in section 422(a)(2) of the Code
    (to the extent such provision applies).

 

    7.     Section 4(a)(v) of the
    Employment Agreement is amended to add the following new
    sentences at the end of that section:

 

    The programs in which the Executive shall continue to
    participate during the Compensation Continuance Period shall be
    the Wachovia Executive Financial Planning Program, the Wachovia
    Executive Long-Term Disability Plan, the Wachovia Executive
    Physical Program and the Wachovia Estate Preservation Bonus
    Plan. Any expense reimbursements payable to the Executive under
    such plans and programs shall be paid no later than the end of
    the Executive’s taxable year that next follows the taxable
    year in which the expense was incurred. The amount of expenses
    eligible for reimbursement under such programs and the amount of
    any benefits provided under such programs shall not affect the
    expenses eligible for reimbursement or the benefits that may be
    provided under such programs in any other taxable year, and the
    right to expense reimbursement or benefits under such programs
    may not be liquidated or exchanged for any other benefit. Any
    tax reimbursements paid in connection with such programs shall
    be paid no later than the end of the Executive’s taxable
    year that next follows the taxable year in which the Executive
    pays such tax.

 

    8.     Section 4(a)(vii) of the
    Employment Agreement is further amended to delete the phrase
    “outplacement services” and to substitute the phrase
    “reasonable outplacement services” in its place.

 

    9.     Section 4(a) (viii) of
    the Employment Agreement is deleted in its entirety.

 

    10.    Section 4(e) of the Employment
    Agreement is amended in its entirety to read as follows:

 

    (e)    Cause; Other than for Good
    Reason.  If the Executive’s employment shall
    be terminated by the Company for Cause or by the Executive
    without Good Reason (other than for Retirement) during the
    Employment Period, this Agreement shall terminate without
    further obligations of the Company to the Executive other than
    the obligation to pay to the Executive (x) his Annual Base
    Salary through the Date of Termination, and (y) Other
    Benefits, in each case only to the extent owing and theretofore
    unpaid.

 

 

    11.    Section 4(f) of the Employment
    Agreement is amended in its entirety to read as follows:

 

    (f)     Delayed Payment
    Date.  Notwithstanding any provision to the
    contrary in this Agreement, if the Executive is deemed at the
    time to be a “key employee” (as defined below), and
    such delayed commencement is otherwise required in order to
    avoid a prohibited distribution under Section 409A(a)(2) of
    the Code, no payments or benefits to which the Executive
    otherwise becomes entitled under this Agreement and that are
    subject to Section 409A of the Code shall be made or
    provided to the Executive prior to the earlier of (i) the
    expiration of the six (6)-month period measured from the date of
    the Executive’s “separation from service” (as
    such term is defined in Treasury Regulations issued under
    Section 409A of the Code) or (ii) the date of the
    Executive’s death. Upon the expiration of the applicable
    Code Section 409A(a)(2) deferral period referred to in the
    preceding sentence, all payments and benefits deferred pursuant
    to this Section 4(f) (whether they would have otherwise
    been payable in a single sum or in installments in the absence
    of such deferral) shall be paid or reimbursed to the Executive
    in a lump sum, and any remaining payments and benefits due under
    this Agreement shall be paid or provided in accordance with the
    normal payment dates specified for them herein. The term
    “key employee” shall have the same meaning as assigned
    to that term under Section 416(i) of the Code, without
    regard to Section 416(i)(5) of the Code, and whether the
    Executive is a key employee shall be determined in accordance
    with written guidelines adopted by the Company for such purposes.

 

    12.     Section 6 of the
    Employment Agreement is amended by deleting the fifth sentence
    of that section and by adding the following new sentences in its
    place:

 

    The Company agrees to pay as incurred, to the full extent
    permitted by law, all legal fees and expenses (“Legal
    Costs”) which the Executive may reasonably incur during the
    Executive’s lifetime as a result of any contest by the
    Company, the Executive or others of the validity or
    enforceability of, or liability under, any provision of this
    Agreement or any guarantee of performance thereof (including as
    a result of any contest by the Executive about the amount of any
    payment pursuant to this Agreement). Legal Costs will be paid
    within 30 days of when they are incurred and in no event
    later than the last day of the Executive’s taxable year
    next following the taxable year in which the Legal Costs were
    incurred. The Company will pay interest on the amount of any
    Legal Costs that are paid more than 30 days after the date
    on which such Legal Costs were incurred at the applicable
    Federal rate provided for in Section 7872(f)(2)(A) of the Code.
    The amount of Legal Costs reimbursable for any calendar year
    will not be affected by the amount reimbursed in any other
    taxable year, and the Executive’s right to payment of Legal
    Costs shall not be subject to liquidation or exchange for
    another benefit.

 

    13.     Section 7(b)(iii) of the
    Employment Agreement is amended to add the following new
    sentence to the end of that section:

 

    In no event shall the level of such consulting services exceed
    20% of the average level of services performed by the Executive
    over the
    36-month
    period immediately preceding the date on which the
    Executive’s employment terminated (or the full period of
    services that the Executive performed for the Company if the
    Executive provided services for fewer than 36 months).

 

    14.     Section 8 of the
    Employment Agreement is amended by adding the following new
    subsection (f) to the end of that section:

 

    (f)      Notwithstanding anything
    in this Agreement to the contrary:

 

    (i)      Any
    Gross-Up
    Payment made with respect to an Excise Tax (but excluding for
    this purpose any interest or penalties with respect to such
    tax), and including (but not limited to) any
    Gross-Up
    Payment with respect to an Excise Tax that the Company has paid
    on behalf of the Executive prior to directing the Executive to
    claim a refund and any Underpayment described in
    Section 8(b), shall be paid no later than the last day of
    the Executive’s taxable year next following the taxable
    year in which the Excise Tax in respect to which such
    Gross-Up
    Payment or Underpayment relates is remitted to the applicable
    taxing authority.

 

 

    (ii)      The reimbursement of any
    expenses incurred by the Executive in connection with a contest
    respecting the existence or amount of any Excise Tax to which
    the Executive may be entitled pursuant to this Section 8
    shall be made no later than the end of the Executive’s
    taxable year next following the taxable year in which the taxes
    that are subject to the contest are remitted to the applicable
    taxing authority or, if no taxes are remitted, the end of the
    Executive’s taxable year next following the taxable year in
    which the contest is completed or there is a final and
    nonappealable settlement or other resolution of the contest.

 

    (iii)      Any other expense
    reimbursement to which the Executive may be entitled under this
    Section 8 for an expense incurred during the
    Executive’s lifetime that is not described above,
    including, but not limited to, any
    Gross-Up
    Payment with respect to the interest or penalty component of an
    Excise Tax, shall be made no later than the end of the
    Executive’s taxable year next following the taxable year in
    which the expense was incurred. The amount of any such expenses
    eligible for reimbursement paid during the Executive’s
    taxable year shall not affect the expenses eligible for
    reimbursement in any other taxable year, and the right to any
    such expense reimbursement may not be liquidated or exchanged
    for any other benefit.

 

    15.     Section 11(g) of the
    Employment Agreement is amended to add the following new
    sentence to the end of that section:

 

    Notwithstanding the foregoing, no such modification shall be
    made to any plan, policy, practice, program, contract or
    agreement (the “Other Arrangements”) to the extent
    such modification would violate any requirement of
    Section 409A of the Code applicable to the Other
    Arrangements or to this Agreement.

 

    16.     Section 11(k) of the
    Employment Agreement is amended to delete the first sentence of
    that section and to substitute the following new sentence in its
    place:

 

    Section 2(b)(vi) of this Agreement constitutes an amendment
    to the SERP Agreement.

 

    17.     Section 11 of the
    Employment Agreement is further amended to add the following new
    subsections:

 

    (k)     No Acceleration of
    Payments.  The Executive shall not be permitted,
    and the Company shall not have any discretion, to accelerate the
    timing or schedule of any payment or benefit under this
    Agreement that is subject to Section 409A of the Code,
    except as specifically provided herein or as may be permitted
    pursuant Section 409A of the Code and the Treasury
    Regulations thereunder

 

    (l)     Compliance with
    Section 409A of the Code.  The parties intend
    that any payment under this Agreement shall, to the extent
    subject to Section 409A of the Code, be paid in compliance
    with Section 409A of the Code and the Treasury Regulations
    thereunder, and the parties shall interpret the Agreement in
    accordance with Section 409A of the Code and the Treasury
    Regulations thereunder. The parties agree to further modify this
    Agreement to the extent necessary to comply with
    Section 409A of the Code.

 

    18.     This Amendment is effective as
    of December 31, 2007.

 

    19.     This Amendment constitutes an
    amendment to the Employment Agreement pursuant to
    Section 11(a) of the Employment Agreement. All provisions
    of the Employment Agreement not affected by this Amendment shall
    remain in full force and effect and shall continue to be binding
    obligations of both parties hereto. Capitalized terms used in
    this Amendment but not defined herein shall have the meanings
    assigned thereto in the Employment Agreement.

 

    IN WITNESS WHEREOF, the Company has caused this Amendment to
    be executed by its duly authorized officer, and the Executive
    has signed this amendment as of the date set forth below.

 

 

    WACHOVIA CORPORATION

 

    By: ­
    ­

    Name

    Title:

 

    AGREED AND ACCEPTED:

 

		
	    
	    

		
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    Date

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