Document:

Supplemental Indenture

 Exhibit 4.2 

 
  

 
 AutoNation, Inc., as
Issuer 
 The Guarantors Party Hereto, as Guarantors 

and 
 Wells
Fargo Bank, National Association, as Trustee 
  

 
 Supplemental
Indenture 
 Dated as of February 1, 2012 
 to Indenture 
 Dated as of April 14, 2010 

Establishing a series of Securities designated 
 5.500 % Senior Notes due 2020 
  

 
  

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
	
	 ARTICLE I
 DEFINITIONS AND INCORPORATION BY REFERENCE
	   

  

			
	 SECTION 1.01
	  	 Relation to Base Indenture
	  	 	1	  
	 SECTION 1.02
	  	 Definitions
	  	 	1	  
	
	 ARTICLE II
 CREATION, FORMS, TERMS AND CONDITIONS OF THE SECURITIES
	   

  

			
	 SECTION 2.01
	  	 Creation of the Notes
	  	 	10	  
	 SECTION 2.02
	  	 Form of the Notes
	  	 	10	  
	 SECTION 2.03
	  	 Terms and Conditions of the Notes
	  	 	11	  
	 SECTION 2.04
	  	 Ranking
	  	 	13	  
	 SECTION 2.05
	  	 Sinking Fund
	  	 	13	  
	 SECTION 2.06
	  	 Place of Payment
	  	 	13	  
	 SECTION 2.07
	  	 Transfer and Exchange
	  	 	13	  
	 SECTION 2.08
	  	 Cancellation and/or Adjustment of Global Notes
	  	 	14	  
	
	 ARTICLE III
 REDEMPTION OF THE NOTES
	   

  

			
	 SECTION 3.01
	  	 Optional Redemption by Company
	  	 	14	  
	
	 ARTICLE IV
 CHANGE OF CONTROL
	   

  

			
	 SECTION 4.01
	  	 Repurchase at the Option of Holders Upon Change of Control Repurchase Event
	  	 	15	  
	
	 ARTICLE V
 COVENANTS
	   

  

			
	 SECTION 5.01
	  	 Limitation on Liens
	  	 	16	  
	 SECTION 5.02
	  	 Limitations on Sale and Leaseback Transactions
	  	 	19	  
	 SECTION 5.03
	  	 Limitation on Issuances of Guarantees of Indebtedness
	  	 	20	  
	 SECTION 5.04
	  	 Merger, Consolidation or Sale of Assets
	  	 	20	  
	 SECTION 5.05
	  	 Compliance Certificate
	  	 	21	  
	
	 ARTICLE VI
 DEFAULTS AND REMEDIES
	   

  

			
	 SECTION 6.01
	  	 Events of Default
	  	 	22	  
	
	 ARTICLE VII
 DEFEASANCE AND COVENANT DEFEASANCE; DISCHARGE
	   

  

			
	 SECTION 7.01
	  	 Option to Effect Legal Defeasance or Covenant Defeasance
	  	 	23	  
	 SECTION 7.02
	  	 Defeasance and Discharge
	  	 	23	  
	 SECTION 7.03
	  	 Covenant Defeasance
	  	 	24	  
	 SECTION 7.04
	  	 Conditions to Defeasance or Covenant Defeasance
	  	 	24	  
	 SECTION 7.05
	  	 Deposited Money and U.S. Government Obligations to Be Held in Trust; Other Miscellaneous Provisions
	  	 	25	  

  
 i 

							
	 	  	 	  	Page	 
			
	 SECTION 7.06
	  	 Repayment to the Company
	  	 	26	  
	 SECTION 7.07
	  	 Reinstatement
	  	 	26	  
	 SECTION 7.08
	  	 Discharge
	  	 	26	  
	
	 ARTICLE VIII
 AMENDMENT, SUPPLEMENT AND WAIVER
	   

  

			
	 SECTION 8.01
	  	 Without Consent of Holders of Notes
	  	 	27	  
	 SECTION 8.02
	  	 With Consent of Holders of Notes
	  	 	28	  
	 SECTION 8.03
	  	 Revocation and Effect of Consents
	  	 	29	  
	 SECTION 8.04
	  	 Notation on or Exchange of Notes
	  	 	29	  
	 SECTION 8.05
	  	 Trustee to Sign Amendments, etc.
	  	 	30	  
	
	 ARTICLE IX
 GUARANTEES
	   

  

			
	 SECTION 9.01
	  	 Guarantee
	  	 	30	  
	 SECTION 9.02
	  	 Limitation on Guarantor Liability
	  	 	31	  
	 SECTION 9.03
	  	 Execution and Delivery of Guarantee
	  	 	31	  
	 SECTION 9.04
	  	 Release of Guarantor
	  	 	32	  
	 SECTION 9.05
	  	 Acknowledgement of Manufacturers’ Letter Agreements
	  	 	32	  
	 SECTION 9.06
	  	 Certain California Law Waivers
	  	 	33	  
	
	 ARTICLE X
 MISCELLANEOUS PROVISIONS
	   

  

			
	 SECTION 10.01
	  	 Ratification of Base Indenture
	  	 	33	  
	 SECTION 10.02
	  	 Conflict with Trust Indenture Act
	  	 	33	  
	 SECTION 10.03
	  	 Conflict with Base Indenture
	  	 	34	  
	 SECTION 10.04
	  	 Effect of Headings
	  	 	34	  
	 SECTION 10.05
	  	 Successors and Assigns
	  	 	34	  
	 SECTION 10.06
	  	 Separability Clause
	  	 	34	  
	 SECTION 10.07
	  	 Governing Law
	  	 	34	  
	 SECTION 10.08
	  	 Waiver of Jury Trial
	  	 	34	  
	 SECTION 10.09
	  	 Counterparts
	  	 	34	  

  

					
	EXHIBITS	  	
		
	 EXHIBIT A – Form of Note
	  	
	 EXHIBIT B – Form of Guarantee
	  	
	 EXHIBIT C – Form of Supplemental Indenture Evidencing Future Guarantors
	  	
	 EXHIBIT D – For of Affidavit of Out-of-State Execution
	  	
	 EXHIBIT E – For of Affidavit of Out-of-State Receipt and Acceptance
	  	

  
 ii 

 SUPPLEMENTAL INDENTURE, dated as of February 1, 2012 (this “Supplemental
Indenture”), by and among AutoNation, Inc., a Delaware corporation (the “Company”), the Guarantors (as defined below), and Wells Fargo Bank, National Association, a national banking association, as trustee (the “Trustee”).

 RECITALS OF THE COMPANY 

WHEREAS, the Company and the Trustee have heretofore executed and delivered an Indenture, dated as of April 14, 2010 (the “Base
Indenture” and, together with this Supplemental Indenture, the “Indenture”), providing for the issuance from time to time of the Company’s debentures, notes or other evidences of Indebtedness (herein and therein called the
“Securities”), to be issued in one or more series as provided in the Base Indenture; 
 WHEREAS, Section 14.01 of
the Base Indenture permits the Company and the Trustee to enter into a supplemental indenture to the Base Indenture to establish the form and terms of any series of Securities; 

WHEREAS, Section 2.01 of the Base Indenture permits the form of Securities of any series to be established in a supplemental
indenture to the Base Indenture; 
 WHEREAS, Section 3.01 of the Base Indenture permits certain terms of any series of
Securities to be established pursuant to a supplemental indenture to the Base Indenture; 
 WHEREAS, pursuant to Sections 2.01
and 3.01 of the Base Indenture, the Company desires to provide for the establishment of a new series of Securities in an initial aggregate principal amount of $350,000,000 to be designated the “5.500% Senior Notes due 2020” (hereinafter
called the “Notes”) under the Base Indenture, the form and substance of such Notes and the terms, provisions and conditions thereof to be set forth as provided in the Base Indenture and this Supplemental Indenture; and 

WHEREAS, all things necessary to make this Supplemental Indenture a valid agreement of the Company and the Guarantors, in accordance with
its terms, have been done; 
 NOW, THEREFORE, for and in consideration of the foregoing and the purchase of the Notes
established by this Supplemental Indenture by the Holders (as defined below) thereof, it is mutually agreed, for the equal and proportionate benefit of all such Holders, as follows: 

ARTICLE I 

DEFINITIONS AND INCORPORATION BY REFERENCE 
 SECTION 1.01 Relation to Base Indenture. This Supplemental Indenture constitutes a part of the Base Indenture (the provisions of which, as modified by this Supplemental Indenture, shall apply
to the Notes) in respect of the Notes but shall not modify, amend or otherwise affect the Base Indenture insofar as it relates to any other series of Securities or modify, amend or otherwise affect in any manner the terms and conditions of the
Securities of any other series. 
 SECTION 1.02 Definitions. For all purposes of this Supplemental Indenture, the
capitalized terms used herein (i) which are defined in this Section 1.02 have the respective meanings assigned hereto in this Section 1.02 and (ii) which are defined in the Base Indenture (and which are not defined in this
Section 1.02) have the respective meanings assigned thereto in the Base Indenture. For all purposes of this Supplemental Indenture: 
 (a) Unless otherwise indicated or the context otherwise requires, any reference to an Article or Section refers to an Article or Section, as the case may be, of this Supplemental Indenture; 

 (b) The words “herein,” “hereof” and “hereunder” and words of
similar import refer to this Supplemental Indenture as a whole and not to any particular Article, Section or other subdivision; 

(c) Headings are for convenience or reference only and do not affect interpretations; and 

(d) The terms defined in this Section 1.02(d) have the meanings assigned to them in this Section and include the plural as well as
the singular: 
 “Affiliate” means, as to any Person, any other Person who, directly or indirectly, through one or
more intermediaries, controls, or is controlled by, or is under common control with, the first referred to Person. The term “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the
management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise. 

“Applicable Procedures” has the meaning set forth in Section 2.07(a). 

“Attributable Debt” means, with respect to any Sale and Leaseback Transaction, at the time of determination, the total
obligation (discounted to the present value at the imputed rate of interest as determined in good faith by the Company) of the lessee for rental payments (other than amounts required to be paid on account of taxes, assessments, maintenance, repairs,
insurance, water rates or similar charges required to be paid by such lessee thereunder and other items which do not constitute payments for property rights or any amount required to be paid by lessee thereunder contingent upon the amount of
maintenance, repairs, insurance, taxes, assessments, water charges or similar charges) during the remaining portion of the initial term of the lease included in such Sale and Leaseback Transaction. In the case of any lease which is terminable by the
lessee upon the payment of a penalty, such rental payments shall be the lesser of (x) the amount determined assuming termination upon the first date such lease may be terminated (in which case the amount shall also include the amount of the
penalty, but shall not include any rent that would be required to be paid under such lease subsequent to the first date upon which it may be so terminated) or (y) the amount determined assuming no such termination. 

“Automobile Retailing Activities” means vehicle retailing, wholesaling, leasing, financing, servicing and related activities.

 “Bankruptcy Law” means Title 11, United States Bankruptcy Code of 1978, or any similar United States federal or
state law or foreign law relating to the bankruptcy, insolvency, receivership, winding up, liquidation, reorganization or relief of debtors or any amendment to, succession to or change in any such law. 

“Base Indenture” has the meaning given to such term in the recitals hereof. 

“Capital Lease Obligation” of any Person means all monetary obligations of such Person and its Subsidiaries on a consolidated
basis under any capital lease of (or other agreement conveying the right to use) real or personal property which, in accordance with GAAP, is required to be recorded as a capitalized lease obligation. 

  
 2 

 “Capital Stock” of any Person means any and all shares, interests, participations,
rights in or other equivalents (however designated) of such Person’s capital stock, other equity interests whether now outstanding or issued after the date of the Base Indenture, partnership interests (whether general or limited), limited
liability company interests, any other interest or participation that confers on a Person that right to receive a share of the profits and losses of, or distributions of assets of, the issuing Person, including any Preferred Stock, and any rights
(other than debt securities convertible into Capital Stock), warrants or options exchangeable for or convertible into such Capital Stock. 
 “Change of Control” shall occur if: 
 (1) any “Person” or
“group” (as such terms are used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act), other than Permitted Holders, is or becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that
for purposes of this clause (1) such Person shall be deemed to have “beneficial ownership” of all shares that any such Person has the right to acquire, whether such right is exercisable immediately or only after the passage of time),
directly or indirectly, of more than 50% of the total outstanding Voting Stock of the Company; 
 (2) during any period of two
consecutive years, individuals who at the beginning of such period constituted the Board of Directors (together with any new directors whose election to such Board of Directors or whose nomination for election by the stockholders of the Company was
approved by a vote of a majority of the directors then still in office who were either directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority
of such Board of Directors then in office; 
 (3) the Company consolidates with or merges with or into any Person (other than a
Permitted Holder), or any Person (other than a Permitted Holder) consolidates with or merges into or with the Company, in any such event pursuant to a transaction in which the outstanding Voting Stock of the Company is converted into or exchanged
for cash, securities or other property, other than any such transaction where the outstanding Voting Stock of the Company is converted into or exchanged for Voting Stock of such surviving Person representing a majority of the voting power of all
Voting Stock of such surviving Person immediately after giving effect to such issuance; 
 (4) the sale, lease, transfer,
conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the assets of the Company and its Subsidiaries taken as a whole to any “Person” or
“group” (as such terms are used in Section 13(d) and 14(d) of the Exchange Act) other than to the Company, one of the Company’s Subsidiaries or a Permitted Holder; or 

(5) the Company is liquidated or dissolved or adopts a plan of liquidation or dissolution other than in a transaction which complies with
Section 5.04. 
 “Change of Control Offer” has the meanings set forth in Section 4.01(b). 

“Change of Control Repurchase Event” means the occurrence of both a Change of Control and a Ratings Event. 

“Commodity Price Protection Agreement” means any forward contract, commodity swap, commodity option or other similar financial
agreement or arrangement relating to, or the value which is dependent upon, fluctuations in commodity prices. 

  
 3 

 “Company” has the meaning given to such term in the preamble hereof. 

“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a
maturity comparable to the remaining term (as measured from the date of redemption) of the Notes that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities
of comparable maturity to the remaining term of the Notes. 
 “Comparable Treasury Price” means, with respect to any
Redemption Date, (i) the average of the Reference Treasury Dealer Quotations obtained by the Company for such Redemption Date, after excluding the highest and lowest of such Reference Treasury Dealer Quotations, (ii) if the Company is
unable to obtain at least four such Reference Treasury Dealer Quotations, the average of all Reference Treasury Dealer Quotations obtained by the Company or (iii) if the Company can only obtain one Reference Treasury Dealer Quotation, such
quotation. 
 “Consolidated Net Tangible Assets” means, of any Person as of any date, the total assets of such Person
and its Subsidiaries as of the most recent fiscal quarter end for which a consolidated balance sheet of such Person and its Subsidiaries is available as of that date, minus (i) all current liabilities of such Person and its Subsidiaries
reflected on such balance sheet (excluding any current liabilities for borrowed money having a maturity of less than 12 months but by its terms being renewable or extendible beyond 12 months from such date at the option of the borrower) and
(ii) all goodwill, tradenames, trademarks, patents, unamortized debt discount and expense and other like intangible assets of such Person and its Subsidiaries reflected on such balance sheet, all calculated on a consolidated basis in accordance
with GAAP. 
 “Covenant Defeasance” has the meaning set forth in Section 7.03 hereof. 

“Credit Agreement” means the credit agreement providing for revolving credit and term loan borrowings, among the Company, as
borrower, JPMorgan Chase Bank, N.A., as administrative agent, the syndication agent and documentation agents named therein, and the lenders party thereto from time to time, dated as of December 7, 2011, as amended as of the Issue Date, as such
agreement, in whole or in part, in one or more instances, may be amended, renewed, extended, substituted, refinanced, restructured, replaced, supplemented or otherwise modified from time to time (including, without limitation, any successive
renewals, extensions, substitutions, refinancings, restructurings, replacements, supplements or other modifications of the foregoing). 
 “Currency Agreement” means in respect of a Person any foreign exchange contract, currency swap agreement or other similar agreement or arrangements designed to protect such Person against
fluctuations in currency values. 
 “Debt Facilities” means one or more debt facilities or commercial paper
facilities, in each case with banks or other financial institutions or institutional lenders, or other Persons which provide, originate or arrange debt or commercial paper facilities, providing for revolving credit loans, term loans, receivables
financing or letters of credit, including the Credit Agreement, and/or one or more indentures relating to debt securities, in each case in existence from time to time as such facilities, in whole or in part, in one or more instances, may be amended,
renewed, extended, substituted, refinanced, restructured, replaced, supplemented or otherwise modified from time to time (including, without limitation, any successive renewals, extensions, substitutions, refinancings, restructurings, replacements,
supplements or other modifications of the foregoing). 

  
 4 

 “Defeasance” has the meaning set forth in Section 7.02 hereof. 

“Definitive Notes” means certificated Notes registered in the name of the Holder thereof and issued in accordance with
Section 2.02 hereof, substantially in the form of Exhibit A hereto, except that such Security shall not bear the Global Note Legend. 
 “Depositary” means, with respect to Global Notes issued under this Supplemental Indenture, DTC. 
 “Dollar” and “$” means the lawful currency of the United States of America. 
 “Domestic Subsidiary” means a Subsidiary of the Company that is organized or existing under the laws of the United States, any state thereof, the District of Columbia or any territory thereof.

 “DTC” means The Depository Trust Company, its nominees and their successors and assigns. 

“Eligible Special Purpose Entity” means any Person which is or is not a Subsidiary of the Company which has been formed by or
for the benefit of the Company or any Subsidiary of the Company for the purpose of (i) financing or refinancing, leasing, selling or securitizing Vehicles or related receivables and which finances, refinances or securitizes Vehicles or related
receivables of, leases Vehicles to or purchases Vehicles or related receivables from the Company or any Subsidiary of the Company; or (ii) financing or refinancing consumer receivables, leases, loans or retail installment contracts. 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor statute, and the rules and regulations
promulgated by the Securities and Exchange Commission thereunder. 
 “Generally Accepted Accounting Principles” or
“GAAP” means generally accepted accounting principles and interpretations thereof in the United States, consistently applied, which are in effect at the time of the relevant calculation. 

“Global Note” means a single permanent fully-registered global note in book-entry form, without coupons, substantially in the
form of Exhibit A attached hereto. 
 “Global Note Legend” means a legend containing substantially the legend
set forth in the form of Note attached as Exhibit A hereto. 
 “Guarantee” means any obligation, contingent or
otherwise, of any Person directly or indirectly guaranteeing any Indebtedness of any other Person and any obligation, direct or indirect, contingent or otherwise, of such Person (1) to purchase or pay (or advance or supply funds for the
purchase or payment of) such Indebtedness of such other Person (whether arising by virtue of partnership arrangements, or by agreement to keep well, to purchase assets, goods, securities or services, to take or pay or to maintain financial statement
conditions or otherwise) or (2) entered into for purposes of assuring in any other manner the obligee of such Indebtedness of the payment thereof or to protect such obligee against loss in respect thereof (in whole or in part); provided,
however, that the term “guarantee” will not include endorsements for collection or deposit in the ordinary course of business. The term “guarantee,” when used as a verb, has a correlative meaning. 

  
 5 

 “Guarantors” means each Domestic Subsidiary of the Company that executes a
Subsidiary Guarantee in accordance with the provisions of this Supplemental Indenture, and their respective successors and assigns. 
 “Hedging Obligations” means the obligations of any Person pursuant to any Interest Rate Agreement or Currency Agreement. 
 “Holder” means the Person in whose name a Note is registered on the Register. 
 “Incur” means issue, assume, guarantee or otherwise become liable for Indebtedness. 
 “Indebtedness” means, with respect to any Person, obligations of such Person for borrowed money (including, without limitation, Indebtedness for borrowed money evidenced by notes, bonds,
debentures or similar instruments), excluding any trade payables and other current liabilities arising in the ordinary course of business. 
 “Indenture” has the meaning given to such term in the recitals hereof. 

“Independent Investment Banker” means Merrill Lynch, Pierce, Fenner & Smith Incorporated, or, if such firm is
unwilling or unable to select the applicable Comparable Treasury Issue, an independent investment banking institution of national standing appointed by the Company. 
 “Indenture Obligations” means the obligations of the Company and any other obligor under the Indenture or under the Notes, including any Guarantor, to pay principal of, premium, if any, and
interest when due and payable, and all other amounts due or to become due under or in connection with this Indenture, the Notes and the performance of all other obligations to the Trustee and the holders under this Indenture and the Notes, according
to the respective terms thereof. 
 “Indirect Participant” means a Person who holds a beneficial interest in a Global
Note through a Participant. 
 “Interest Payment Date” has the meaning set forth in Section 2.03(c). 

“Interest Rate Agreement” means, in respect of a Person, any interest rate swap agreement, interest rate cap agreement or other
financial agreement or arrangement designed to protect such Person against fluctuations in interest rates. 
 “Investment
Grade” means a rating of Baa3 or better by Moody’s (or its equivalent under any successor rating categories of Moody’s) and a rating of BBB- or better by S&P (or its equivalent under any successor rating categories of S&P) or
the equivalent Investment Grade credit rating from any additional Rating Agency or Rating Agencies selected by the Company. 

“Issue Date” means February 1, 2012. 
 “Lien” means any mortgage or deed of trust, charge, pledge, lien (statutory or otherwise), privilege, security interest, assignment, deposit, arrangement, easement, hypothecation, claim,
preference, priority or other encumbrance upon or with respect to any property of any kind (including any conditional sale, capital lease or other title retention agreement, any leases in the nature thereof, and any agreement to give any security
interest), real or personal, movable or immovable, now owned or hereafter acquired. A Person will be deemed to own subject to a Lien any property which it has acquired or holds subject to the interest of a vendor or lessor under any conditional sale
agreement, Capital Lease Obligation or other title retention agreement. 

  
 6 

 “Manufacturer” means a vehicle manufacturer which is a party to a dealership
agreement with the Company or any Subsidiary of the Company. 
 “Manufacturers’ Letter Agreements” means each of
the following: (i) that certain letter dated January 30, 2006 to Mr. Kevin Flynn of Toyota Motor Sales USA, which was confirmed and agreed by Ms. Nancy Davies on behalf of Toyota Motor Sales, U.S.A., Inc., (ii) that certain
letter dated January 30, 2006 to Ms. Olga Reisler of Nissan North America, Inc., which was confirmed and agreed by Ms. Reisler on behalf of Nissan North America, Inc., (iii) that certain letter dated January 30, 2006 to
Mr. Alex Larkin of Kia Motors America, Inc., which was confirmed and agreed by Mr. Larkin on behalf of Kia Motors America, Inc., (iv) that certain letter dated January 30, 2006 to Ms. Jennifer Moneagle of Ford Motor Company,
which was confirmed and agreed by R. Erik Peterson on behalf of Ford Motor Company and (v) that certain letter dated February 23, 2006 to Ms. Donna Parlapiano, Vice President, Regional Operations & Industry Relations, of the
Company, from BMW of North America, LLC. 
 “Maturity” means, when used with respect to the Notes, the date on which
the principal of the Notes becomes due and payable as therein provided or as provided in the Indenture, whether at Stated Maturity or the Redemption Date and whether by declaration of acceleration, Change of Control Offer in respect of a Change of
Control, call for redemption or otherwise. 
 “Maturity Date” has the meaning set forth in Section 2.03(b)
hereof. 
 “Moody’s” means Moody’s Investors Service Inc., a subsidiary of Moody’s Corporation, and its
successors. 
 “Mortgage Facilities” means one or more debt facilities in each case with banks, manufacturers and/or
other entities providing for borrowings secured primarily by real property in each case as amended, restated, modified, renewed, refunded, replaced or refinanced in whole or in part from time to time; provided, that the value of the security
securing such debt facilities shall not, at the time such debt facilities are entered into, exceed 100% of the aggregate principal amount of the Indebtedness in respect of such debt facilities. 

“Notes” has the meaning given to such term in the recitals hereof. 

“Participant” means, with respect to the Depositary, a Person who has an account with the Depositary. 

“Permitted Holders” means ESL Investments, Inc. and any Person controlling, controlled by, or under common control with, ESL
Investments, Inc. 
 “Person” means any individual, corporation, limited liability company, partnership, joint
venture, association, joint-stock company, trust, unincorporated organization or government or any agency or political subdivision thereof. 
 “Preferred Stock” means, with respect to any Person, any Capital Stock of any class or classes (however designated) which is preferred as to the payment of dividends or distributions, or as to
the distribution of assets upon any voluntary or involuntary liquidation or dissolution of such Person, over the Capital Stock of any other class in such Person. 

  
 7 

 “Principal Property” means any building, structure or other facility located
within the United States (other than its territories and possessions) and owned by the Company or any Domestic Subsidiary, the book value of which is not less than 0.5% of the Company’s Consolidated Net Tangible Assets. For purposes of this
definition, book value will be measured at the time the relevant Lien is being created or, in the case of any Lien incurred pursuant to Section 5.01(c), at the time the relevant secured Indebtedness is deemed to be Incurred. The term
“Principal Property” does not include any building, structure or other facility that the Board of Directors declares by resolution not to be of material importance to the total business conducted by the Company and its Domestic
Subsidiaries taken as a whole. 
 “Prospectus Supplement” means the prospectus supplement of the Company dated
January 27, 2012, relating to the Notes. 
 “Public Equity Offering” means an underwritten public offering of
common stock (other than redeemable Capital Stock) of the Company with gross cash proceeds to the Company of at least $50.0 million pursuant to an effective registration statement filed pursuant to the Securities Act (other than a registration
statement on Form S-4 (or any successor form covering substantially the same transactions), Form S-8 (or any successor form covering substantially the same transactions) or otherwise relating to equity securities issuable under any employee benefit
plan). 
 “Rating Agency” means (1) each of Moody’s and S&P; and (2) if either of Moody’s or
S&P ceases to rate the Notes or fails to make a rating of the Notes publicly available for reasons outside of the control of the Company, a “nationally recognized statistical rating organization” within the meaning of
Section 3(a)(62) of the Exchange Act, selected by the Company as a replacement agency for Moody’s or S&P, or both of them, as the case may be. 
 “Rating Date” means the date that is 60 days prior to the earlier of (i) a Change of Control or (ii) public notice of the occurrence of a Change of Control or of the intention by the
Company to affect a Change of Control. 
 “Ratings Event” means the occurrence of the events described in (a) or
(b) of this definition on, or within 60 days after the earlier of, (i) the occurrence of a Change of Control or (ii) public notice of the occurrence of a Change of Control or the intention by the Company to effect a Change of Control
(which period shall be extended so long as the rating of the Notes is under publicly announced consideration for a possible downgrade by any of the Rating Agencies): (a) if the Notes are rated by one or both Rating Agencies on the Rating Date
as Investment Grade, the rating of the Notes shall be reduced so that the Notes are rated below Investment Grade by both Rating Agencies or (b) if the Notes are rated below Investment Grade by both Rating Agencies on the Rating Date, the rating
of the Notes shall remain below Investment Grade by both Rating Agencies. 
 “Redemption Date” means the Business Day
on which Notes are redeemed by the Company pursuant to Section 3.01 hereof. 
 “Reference Treasury Dealer” means
Merrill Lynch, Pierce, Fenner & Smith Incorporated and its successors, and at least two other primary U.S. government securities dealers in New York City (each, a “Primary Treasury Dealer”) selected by the Independent Investment
Banker; provided, however, that if any of the foregoing shall cease to be a Primary Treasury Dealer, the Company shall substitute therefor another Primary Treasury Dealer. 

  
 8 

 “Reference Treasury Dealer Quotation” means, with respect to each Reference
Treasury Dealer and any Redemption Date for the Notes, an average, as determined by the Company, of the bid and asked prices for the Comparable Treasury Issue for the Notes, expressed in each case as a percentage of its principal amount, quoted in
writing to the Company by such Reference Treasury Dealer at 3:30 p.m., New York City time, on the third Business Day preceding such Redemption Date. 
 “Regular Record Date” has the meaning set forth in Section 2.03(c). 

“Registered Securities” means any Securities which are registered in the Register. 

“S&P” means Standard & Poor’s, a division of The McGraw-Hill Companies, Inc., and its successors. 

“Sale and Leaseback Transaction” means an arrangement by the Company or any of its Domestic Subsidiaries with any other Person
pursuant to which the Company or any of its Domestic Subsidiaries leases any Principal Property that has been or is to be sold or transferred by the Company or any Domestic Subsidiary to such other Person with the intention of taking back a lease,
whether now owned or hereafter acquired. 
 “Securities” has the meaning given to such term in the recitals hereof.

 “Significant Subsidiary” means any Subsidiary which is a “significant subsidiary” within the meaning of
Rule 405 under the Securities Act. 
 “Stated Maturity” means, when used with respect to any Indebtedness or any
installment of interest thereon, the dates specified in such Indebtedness as the fixed date on which the principal of such Indebtedness or such installment of interest, as the case may be, is due and payable. 

“Subsidiary” means, with respect to any Person (the “parent”) at any date, any corporation, limited liability
company, partnership, association or other entity of which a majority of the shares or securities or other interests having ordinary voting power for the election of directors or another governing body (other than securities or interests having such
power only by reason of the happening of a contingency) are at the time beneficially owned directly or indirectly through one or more intermediaries, or both, by the parent. 
 “Subsidiary Guarantee” means the guarantee by any Guarantor of the Company’s Indenture Obligations. 
 “Treasury Yield” means, with respect to any Redemption Date applicable to the Notes, the rate per annum equal to the semi-annual equivalent yield to maturity, computed as of the third Business
Day immediately preceding the Redemption Date, of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue, expressed as a percentage of its principal amount, equal to the applicable Comparable Treasury Price for such
Redemption Date. 
 “Trustee” has the meaning given to such term in the preamble hereof. 

“Vehicle Inventory Indebtedness” means Indebtedness (including pursuant to a commercial paper program) Incurred by the Company,
any Subsidiary of the Company or any Eligible Special Purpose Entity to purchase, lease, finance or refinance or guaranty the purchasing, leasing, financing or refinancing of Vehicles in the ordinary course of business of the Company and its
Subsidiaries or related receivables, which Indebtedness (x) is secured by the 

  
 9 

 
Vehicles or related receivables so financed, to the extent, at any date of determination thereof, the amount of such Indebtedness does not exceed the depreciated book value of such Vehicles or
the book value of such related receivables determined in accordance with GAAP applied on a consistent basis or (y) is unsecured and provides for a borrowing base which may not exceed 85% of the value of such Vehicles. 

“Vehicle Receivables Indebtedness” means Indebtedness (including pursuant to a commercial paper program) Incurred by any
Eligible Special Purpose Entity to finance, refinance or guaranty the financing or refinancing of consumer receivables, leases, loans or retail installment contracts incurred in the sale, transfer or lease of Vehicles; provided (x) no
assets other than the Vehicles, consumer receivables, leases, loans, retail installment contracts or related proceeds (including, without limitation, proceeds from insurance, Vehicles and other obligations under such receivables, leases, loans or
retail installment contracts) to be financed or refinanced secure such Indebtedness; and (y) neither the Company nor any of its other Subsidiaries shall incur any liability with respect to such Indebtedness other than liability arising by
reason of (1) a breach of a representation or warranty or customary indemnities, in each case contained in any instrument relating to such Indebtedness or (2) customary interests retained by the Company and/or its Domestic Subsidiaries in
such Indebtedness. 
 “Vehicles” means all now existing or hereafter acquired new and used automobiles, sport utility
vehicles, trucks and vans of all types and descriptions, whether held for sale, lease, rental or operational purposes, which relate to the Company’s or any of its Subsidiary’s Automobile Retailing Activities. 

“Voting Stock” of any specified “person” (as that term is used in Section 13(d)(3) of the Exchange Act) as of
any date means the Capital Stock of such person that is at the time entitled to vote generally in the election of the board of directors of such person. 
 ARTICLE II 
 CREATION, FORMS, TERMS AND CONDITIONS OF THE SECURITIES

 SECTION 2.01 Creation of the Notes. The Notes are hereby authorized and are designated the 5.500% Senior
Notes due 2020, unlimited in aggregate principal amount. In accordance with Sections 2.01 and 3.01 of the Base Indenture, the Company hereby creates the Notes as a separate series of its Securities issued pursuant to the Indenture. The Notes shall
be issued on the date hereof initially in an aggregate principal amount of $350,000,000, which amount shall be set forth in the written order of the Company for the authentication and delivery of the Notes pursuant to Section 3.03 of the Base
Indenture. In addition, the Company may issue, from time to time in accordance with the provisions of the Indenture, additional Notes having the same terms and conditions as the Notes issued on the date hereof in all respects (except for the payment
of interest accruing prior to the issue date of such additional Notes), so that such additional Notes shall be consolidated and form a single series with the Notes issued on the Issue Date and shall be governed by the terms of the Indenture.

 SECTION 2.02 Form of the Notes. The Notes shall each be issued in the form of a Global Note, duly executed by the
Company and authenticated by the Trustee, which shall be deposited with the Trustee as custodian for DTC and registered in the name of “Cede & Co.,” as the nominee of DTC. The Notes shall be substantially in the form of Exhibit
A attached hereto (including the Global Note Legend thereon). Notes issued in definitive certificated form in accordance with the terms of the Base Indenture and this Supplemental Indenture, if any, shall be substantially in the form of
Exhibit A attached hereto (but without the Global Note Legend 

  
 10 

 
thereon). So long as DTC, or its nominee, is the registered owner of a Global Note, DTC or its nominee, as the case may be, shall be considered the sole owner or Holder of the Notes represented
by such Global Note for all purposes under the Indenture. Ownership of beneficial interests in such Global Note shall be shown on, and transfers thereof shall be effected only through, records maintained by DTC (with respect to beneficial interests
of participants) or by participants or Persons that hold interests through participants (with respect to beneficial interests of beneficial owners). In addition, the following provisions of clauses (1), (2), and (3) below shall apply only to
Global Notes: 
 (1) Notwithstanding any other provision in the Indenture, no Global Note may be exchanged in whole or in part
for Securities registered, and no transfer of a Global Note in whole or in part may be registered, in the name of any Person other than the Depositary for such Global Note or a nominee thereof unless (A) such Depositary has notified the Company
that it is unwilling or unable to continue as Depositary for such Global Note or has ceased to be a clearing agency registered under the Exchange Act, and the Company has not appointed a successor Depositary within 90 days of receipt of such notice
(B) there shall have occurred and be continuing an Event of Default with respect to the Notes or (C) the Company (subject to the procedures of the Depositary) so directs the Trustee by Company Order. Beneficial interests in Global Notes
may be exchanged for Definitive Notes of the same series upon request upon prior written notice given to the Trustee by us or behalf of the Depositary in accordance with customary procedures. 

(2) Subject to clause (1) above, any exchange of a Global Note for other Definitive Notes may be made in whole or in part, and all
Definitive Notes issued in exchange for a Global Note or any portion thereof shall be registered in such names as the Depositary for such Global Note shall direct. 
 (3) Every Definitive Note authenticated and delivered upon registration of transfer of, or in exchange for or in lieu of, a Global Note or any portion thereof, shall be authenticated and delivered in the
form of, and shall be, a Global Note, unless such note is registered in the name of a Person other than the Depositary for such Global Note or a nominee thereof. 
 SECTION 2.03 Terms and Conditions of the Notes. The Notes shall be governed by all the terms and conditions of the Base Indenture, as supplemented by this Supplemental Indenture. In
particular, the following provisions shall be terms of the Notes: 
 (a) Title and Aggregate Principal Amount. The title
of the Notes shall be as specified in the Recitals of the Company; and the aggregate principal amount of the Notes shall be as specified in Section 2.01 of this Article II and this Section 2.03, except as permitted by Sections 3.04, 3.06
or 3.07 of the Base Indenture. 
 (b) Stated Maturity. The Notes shall mature, and the unpaid principal thereon shall be
payable, on February 1, 2020 (the “Maturity Date”), subject to the provisions of the Base Indenture and Articles III and IV below. 
 (c) Interest. The rate per annum at which interest shall be payable on the Notes shall be 5.500%. Interest on the Notes shall be payable semi-annually in arrears on each February 1 and
August 1, commencing on August 1, 2012 (each, an “Interest Payment Date”), to the Persons in whose names the applicable Notes are registered in the Register applicable to the Notes at the close of business on the immediately
preceding January 15 or July 15, respectively, prior to the applicable Interest Payment Date regardless of whether such day is a Business Day (each, a “Regular Record Date”). Interest on the Notes shall be computed on the basis
of a 360-day 

  
 11 

 
year consisting of twelve 30-day months. Interest on the Notes shall accrue from and including February 1, 2012 or the most recent Interest Payment Date on which interest was paid. If an
Interest Payment Date or the Maturity Date falls on a day that is not a Business Day, the payment shall be made on the next Business Day as if it were made on the date the payment was due, and no interest shall accrue on the amount so payable for
the period from and after that Interest Payment Date or the Maturity Date, as the case may be, to the date the payment is made. Interest payments shall include accrued interest from and including the Issue Date or from and including the last date in
respect to which interest has been paid, as the case may be, to, but excluding, the Interest Payment Date or the Maturity Date, as the case may be. 
 (d) Registration and Form. The Notes shall be issuable as Registered Securities as provided in Section 2.02 of this Article II. The Notes shall be issued and may be transferred only in minimum
denominations of $2,000 and integral multiples of $1,000 above that amount. All payments of principal, the price payable on redemption, the repurchase price payable pursuant to any Change of Control Offer and interest in respect of the Notes shall
be made by the Company in immediately available funds. 
 (e) Further Issues. Notwithstanding anything to the contrary
contained herein or in the Base Indenture, the Company may, from time to time, without the consent of or notice to the Holders, create and issue further securities having the same ranking and terms and conditions as the Notes in all respects, except
for issue date, the public offering price and, in some cases, the first Interest Payment Date. Additional Notes issued in this manner shall be consolidated with and shall form a single series with the previously Outstanding Notes. Notice of any such
issuance shall be given to the Trustee and a new supplemental indenture shall be executed in connection with the issuance of such additional Notes. 
 (f) Merger, Consolidation or Sale of Assets. The provisions regarding merger, consolidation or sale of assets contained in Section 6.04 of the Base Indenture are deleted and replaced in their
entirety by the provisions of Section 5.04 of this Supplemental Indenture with respect to the Notes. 
 (g) Compliance
Certificate. The provisions for furnishing the Trustee certificates regarding compliance contained in Sections 6.05 and 6.07 of the Base Indenture are deleted and replaced in their entirety by the provisions of Section 5.05 of this
Supplemental Indenture with respect to the Notes. 
 (h) Defeasance and Covenant Defeasance; Discharge. The provisions
regarding Defeasance, Covenant Defeasance and Discharge contained in Article XII of the Base Indenture are deleted and replaced in their entirety by the provisions of Article VII of this Supplemental Indenture with respect to the Notes. 

(i) Amendment, Supplement and Waiver. The provisions regarding amendment, supplement and waiver contained in Article XIV of the
Base Indenture are deleted and replaced in their entirety by the provisions of Article VIII of this Supplemental Indenture with respect to the Notes. 
 (j) Guarantee. The full and punctual payment by the Company of the principal of, premium, if any, and interest on the Notes is fully and unconditionally guaranteed on a joint and several senior
unsecured basis by each of the Guarantors as provided in Article IX of this Supplemental Indenture 

  
 12 

 (k) Other Terms and Conditions. The Notes shall have such other terms and conditions
as provided in the form thereof attached as Exhibit A. 
 SECTION 2.04 Ranking. The Notes shall be general
unsecured obligations of the Company. The Notes shall rank pari passu in right of payment with all unsecured and unsubordinated indebtedness, including, without limitation, any unsecured senior indebtedness, of the Company and senior in right
of payment to all subordinated indebtedness of the Company. 
 SECTION 2.05 Sinking Fund. The Notes shall not be
entitled to any sinking fund. 
 SECTION 2.06 Place of Payment. The Place of Payment in respect of the Notes will be
at the office or agency of the Company in The City of New York, State of New York or at the office or agency of the Paying Agent in The City of New York, State of New York. 
 SECTION 2.07 Transfer and Exchange. 
 (a) The transfer and exchange of
beneficial interests in the Global Notes shall be effected through the Depositary, in accordance with the provisions of the Base Indenture, this Supplemental Indenture and the then applicable procedures of the Depositary (the “Applicable
Procedures”). In connection with all transfers and exchanges of beneficial interests, the transferor of such beneficial interest must deliver to the Trustee either (A)(1) a written order from a Participant or an Indirect Participant given to
the Depositary in accordance with the Applicable Procedures directing the Depositary to credit or cause to be credited a beneficial interest in another Global Note in an amount equal to the beneficial interest to be transferred or exchanged and
(2) instructions given in accordance with the Applicable Procedures containing information regarding the Participant account to be credited with such increase or, if Definitive Notes are at such time permitted to be issued pursuant to this
Supplemental Indenture and the Base Indenture, (B)(1) a written order from a Participant or an Indirect Participant given to the Depositary in accordance with the Applicable Procedures directing the Depositary to cause to be issued a Definitive Note
in an amount equal to the beneficial interest to be transferred or exchanged and (2) instructions given by the Depositary to the Registrar containing information regarding the Person in whose name such Definitive Note shall be registered to
effect the transfer or exchange referred to in (1) above. Upon satisfaction of all of the requirements for transfer or exchange of beneficial interests in Global Notes contained in the Base Indenture, this Supplemental Indenture and the Notes,
the Registrar shall adjust the principal amount of the relevant Global Notes pursuant to Section 2.08 hereof. 
 (b) Upon
written request by a Holder of Definitive Notes and such Holder’s compliance with the provisions of this Section 2.07(b), the Registrar shall register the transfer or exchange of Definitive Notes. Prior to such registration of transfer or
exchange, the requesting Holder shall present or surrender to the Trustee the Definitive Notes duly endorsed or accompanied by a written instruction of transfer in form satisfactory to the Registrar duly executed by such Holder or by its attorney,
duly authorized in writing. The Trustee shall cancel any such Definitive Notes so surrendered, and the Company shall execute and, upon receipt of a Company Order pursuant to Section 3.03 of the Base Indenture, the Trustee shall authenticate and
deliver to the Person designated in the instructions a new Definitive Note in the appropriate principal amount. Any Definitive Note issued pursuant to this Section 2.07(b) shall be registered in such name or names and in such authorized
denomination or denominations as the Holder of such beneficial interest shall instruct the Registrar through instructions from the Depositary and the Participant or Indirect Participant. The Trustee shall deliver such Definitive Notes to the Persons
in whose names such Definitive Notes are so registered. In addition, the requesting Holder shall provide any additional certifications, documents and information, as applicable, required pursuant to Section 3.06 of the Base Indenture.

  
 13 

 SECTION 2.08 Cancellation and/or Adjustment of Global Notes. At such time as all
beneficial interests in a particular Global Note have been exchanged for Definitive Notes or a particular Global Note has been redeemed, repurchased or cancelled in whole and not in part, each such Global Note shall be returned to or retained and
cancelled by the Trustee in accordance with Section 3.09 of the Base Indenture. At any time prior to such cancellation, if any beneficial interest in a Global Note is exchanged for or transferred to a Person who will take delivery thereof in
the form of a beneficial interest in another Global Note or for Definitive Notes, the principal amount of Securities represented by such Global Note shall be reduced accordingly and an endorsement shall be made on such Global Note by the Trustee or
by the Depositary at the direction of the Trustee to reflect such reduction; and if the beneficial interest is being exchanged for or transferred to a Person who will take delivery thereof in the form of a beneficial interest in another Global Note,
such other Global Note shall be increased accordingly and an endorsement shall be made on such Global Note by the Registrar or by the Depositary at the direction of the Registrar to reflect such increase. 

ARTICLE III 

REDEMPTION OF THE NOTES 
 SECTION 3.01 Optional Redemption by Company. 
 (a) At any time prior
to February 1, 2015, the Company may redeem up to 35% of the principal amount of the Notes with the net cash proceeds of one or more Public Equity Offerings of its common stock at a redemption price (expressed as a percentage of principal
amount) of 105.5%, plus accrued and unpaid interest to the Redemption Date; provided that: 
 (i) at least 65% of the
aggregate principal amount of Notes originally issued on the Issue Date remains Outstanding after each such redemption; and 

(ii) notice of any such redemption (with a copy to the Trustee) is mailed within 60 days of each such Public Equity Offering.

 (b) The Company shall may redeem the Notes at any time in whole, or from time to time in part, at a redemption price equal to
the greater of: 
 (i) 100% of the principal amount of the Notes to be redeemed; and 

(ii) the sum of the present values of the remaining scheduled payments of principal and interest on the Notes to be redeemed, exclusive
of interest accrued to the date of redemption, discounted to the date of redemption on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the applicable Treasury Yield, plus fifty (50) basis points plus, accrued
and unpaid interest thereon to the Redemption Date. 
 (c) Notwithstanding subsections (a) and (b) above, installments
of interest on the Notes that are due and payable on any Interest Payment Date falling on or prior to a Redemption Date shall be payable on such Interest Payment Date to the registered Holders as of the close of business on the relevant Regular
Record Date according to the terms of the Notes and the Indenture. Unless the Company defaults in payment of the amount payable on redemption, on and after the Redemption Date, interest shall cease to accrue on the Notes or portions thereof that are
called for redemption. 

  
 14 

 (d) The Notes called for redemption become due on the date fixed for redemption. Notices of
redemption shall be mailed by first-class mail at least thirty (30) but not more than sixty (60) days before such Redemption Date to each Holder of the Notes to be redeemed at its registered address (with a copy to the Trustee). At the
Company’s request, the Trustee shall give the notice of redemption in the Company’s name and at its expense; provided, however, that the Company shall have delivered to the Trustee, at least 45 days prior to the Redemption Date, an
Officer’s Certificate requesting that the Trustee give such notice and setting forth the information to be stated in such notice. The Company shall calculate the amount payable on redemption and shall deliver an Officer’s Certificate to
the Trustee setting forth the amount payable on redemption no later than two (2) Business Days prior to the Redemption Date. 
 (e) If less than all the Notes are to be redeemed at any time, the Notes to be redeemed shall be selected by lot by DTC, in the case of Global Notes, or by the Trustee by a method the Trustee deems to be
fair and appropriate, in the case of Notes that are not represented by a Global Note. No Notes of $2,000 in principal amount or less shall be redeemed in part. If any Note is to be redeemed in part only, the notice of redemption relating to such
Note will state the portion of the principal amount to be redeemed. A new Note in principal amount equal to the unredeemed portion will be issued upon cancellation of the original Note. 

ARTICLE IV 

CHANGE OF CONTROL 
 SECTION 4.01 Repurchase at the Option of Holders Upon Change of Control Repurchase Event. 
 (a) If a Change of Control Repurchase Event occurs, unless the Company has exercised its right to redeem the Notes pursuant to Section 3.01 of this Supplemental Indenture, the Company shall be
required to make an offer to each Holder of the Notes to repurchase all or any part (in minimum denominations of $2,000 and integral multiples of $1,000 above that amount) of that Holder’s Notes at a repurchase price in cash equal to 101% of
the aggregate principal amount of the Notes repurchased plus any accrued and unpaid interest on the Notes repurchased to, but not including, the date of repurchase; provided that after giving effect to the purchase, any Notes
that remain outstanding shall have a denomination of $2,000 and integral multiples of $1,000 above that amount. 
 (b) Within
thirty (30) days following any Change of Control Repurchase Event or, at the option of the Company, prior to any Change of Control, but after the public announcement of the transaction that constitutes or may constitute the Change of Control,
the Company shall mail a notice (a “Change of Control Offer”) to each Holder, with a copy to the Trustee, describing the transaction or transactions that constitute or may constitute the Change of Control Repurchase Event and offering to
repurchase the Notes on the payment date specified in the notice, which date shall be no earlier than thirty (30) days and no later than sixty (60) days from the date such notice is mailed. The notice shall, if mailed prior to the date of
consummation of the Change of Control, state that the Change of Control Offer is conditioned on a Change of Control Repurchase Event occurring on or prior to the payment date specified in the notice. 

(c) The Company shall comply with the requirements of Rule 14e-1 under the Exchange Act, and any other securities laws and regulations
thereunder, to the extent those laws and regulations are applicable in connection with the repurchase of the Notes as a result of a Change of Control Repurchase Event. To the extent that the provisions of any securities laws or regulations conflict
with the Change of Control Repurchase Event provisions of the Notes, the 

  
 15 

 
Company shall comply with the applicable securities laws and regulations and shall not be deemed to have breached its obligations under the Change of Control Repurchase Event provisions of the
Notes or the Indenture by virtue of such conflict. 
 (d) On the repurchase date following a Change of Control Repurchase Event,
the Company shall, to the extent lawful: 
 (i) accept for payment all the Notes or portions of the Notes (in minimum
denominations of $2,000 and integral multiples of $1,000 above that amount) properly tendered pursuant to the applicable Change of Control Offer; 
 (ii) deposit with the Paying Agent an amount equal to the aggregate purchase price in respect of all the Notes or portions of the Notes properly tendered pursuant to the applicable Change of Control
Offer; and 
 (iii) deliver or cause to be delivered to the Trustee the Notes properly accepted, together with an
Officer’s Certificate stating the aggregate principal amount of Notes being purchased by the Company. 
 (e) The Trustee
shall promptly mail, or cause the Paying Agent to promptly mail, to each Holder of Notes properly tendered, the purchase price for the Notes, and the Trustee shall promptly, upon the receipt of a Company Order, authenticate and mail (or cause to be
transferred by book-entry) to each Holder a new Note equal in principal amount to any unpurchased portion of any Notes surrendered; provided, that each new Note shall be in a minimum principal amount of $2,000 or an integral multiple of
$1,000 above that amount. 
 (f) The Company shall not be required to make an offer to repurchase the Notes upon a Change of
Control Repurchase Event if a third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for an offer made by the Company and such third party purchases all Notes properly tendered and not withdrawn
under its offer. 
 (g) If Holders of not less than 95% in aggregate principal amount of the Outstanding Notes validly tender
and do not withdraw such Notes in a Change of Control Offer and the Company, or any third party making a Change of Control Offer in lieu of the Company, as described in Section 4.01(f) of this Supplemental Indenture, purchases all of the Notes
validly tendered and not withdrawn by such Holders, the Company will have the right, upon not less than thirty (30) nor more than sixty (60) days’ prior notice, given not more than thirty (30) days following such purchase
pursuant to the Change of Control Offer described in this Section 4.01, to redeem all Notes that remain Outstanding following such purchase at a redemption price in cash equal to 101% of the principal amount thereof, plus accrued and unpaid
interest, if any, to the date of redemption. 
 ARTICLE V 

COVENANTS 

SECTION 5.01 Limitation on Liens. 
 (a) The Company shall not, and shall not permit any of its Domestic Subsidiaries to, create, incur, assume or permit to exist any Lien on (a) any Principal Property or (b) the Capital Stock of
any Subsidiary of the Company, in each case to secure Indebtedness of the Company, any Subsidiary of the Company or any other Person, unless prior to or at the same time, the Notes (together with, at the option of the Company, any other Indebtedness
of the 

  
 16 

 
Company or any Subsidiary ranking equally in right of payment with the Notes) are equally and ratably secured with or, at the option of the Company, prior to, such Indebtedness. Any Lien created
for the benefit of the Holders of the Notes pursuant to this Section 5.01(a) shall provide by its terms that such Lien shall be automatically and unconditionally released and discharged upon the release and discharge of such Lien that gave rise
to the obligation to secure the Notes under this Section 5.01(a). 
 (b) The restrictions set forth in Section 5.01(a)
shall not apply, with respect to any Person, to any of the following: 
 (i) any Lien existing on the Issue Date; 

(ii) any Lien arising by reason of: 
 1) any judgment, decree or order of any court, so long as such Lien is adequately bonded or with respect to which adequate reserves or other appropriate provisions are being maintained in accordance with
GAAP and any appropriate legal proceedings which may have been duly initiated for the review of such judgment, decree or order shall not have been finally terminated or the period within which such proceedings may be initiated shall not have
expired; 
 2) taxes, governmental assessments or similar governmental charges or levies not yet delinquent or
which are being contested in good faith; 
 3) security for payment of workers’ compensation, unemployment
insurance and other governmental insurance or benefits and/or other insurance arrangements (including, without limitation, pledges or deposits securing liability under self insurance general liability insurance programs); 

4) good faith deposits in connection with bids, tenders, statutory obligations, leases and contracts (other than
contracts for the payment of money); 
 5) zoning and other restrictions, charges or encumbrances (whether or
not recorded), easements (including, without limitation, reciprocal easement agreements and utility agreements) licenses, reservations, title defects, rights of others for rights of way, utilities, sewers, electric lines, telephone or telegraph
lines, and other similar purposes, provisions, covenants, consents, conditions, waivers, variations, encroachments, restrictions on the use of property or minor irregularities of title (and with respect to leasehold interests, mortgages,
obligations, liens and other encumbrances incurred, created assumed or permitted to exist and arising by, through or under a landlord or owner of the leased property, with or without consent of the lessee), none of which materially impairs the use
of any parcel of property material to the operation of the business of the Company or any of its Subsidiaries or the value of such property for the purpose of such business; 

6) deposits to secure public, statutory or similar obligations, or in lieu of surety or appeal bonds or Liens incurred or
deposits made as a result of progress payments under government contracts; 
 7) Liens incurred or deposits made
in connection with letters of credit issued in the ordinary course of business; or 

  
 17 

 8) operation of law in favor of mechanics, carriers, warehousemen,
landlords, materialmen, laborers, employees, suppliers or other similar Persons, incurred in the ordinary course of business for sums which are not yet delinquent or are being contested in good faith by negotiations or by appropriate proceedings
which suspend the collection thereof; 
 (iii) any Lien to secure the performance bids, trade contracts, leases (including,
without limitation, statutory and common law landlord’s liens), statutory obligations, surety and appeal bonds, letters of credit and other obligations of a like nature and incurred in the ordinary course of business of the Company or any of
its Subsidiaries; 
 (iv) Liens securing Indebtedness Incurred to finance the construction, purchase or lease of, or repairs,
improvements or additions to, property, plant or equipment of such Person; provided, however, that the Lien may not extend to any other property owned by such Person at the time the Lien is incurred (other than assets and property
affixed or appurtenant thereto), and the Indebtedness (other than any interest thereon) secured by the Lien may not be Incurred more than 180 days after the later of the acquisition, completion of construction, repair, improvement, addition or
commencement of full operation of the property subject to the Lien; 
 (v) Liens on property or shares of Capital Stock of
another Person at the time such other Person becomes a Subsidiary of such Person; provided, however, that the Liens may not extend to any other property owned by such Person (other than assets and property affixed or appurtenant
thereto); 
 (vi) Liens on property at the time such Person or any of its Subsidiaries acquires the property, including any
acquisition by means of a merger or consolidation with or into such Person or a Subsidiary of such Person; provided, however, that the Liens may not extend to any other property owned by such Person (other than assets and property
affixed or appurtenant thereto); 
 (vii) Liens in favor of the Company or any of its Subsidiaries; 

(viii) any Lien securing any Vehicle Inventory Indebtedness and/or Vehicle Receivables Indebtedness; 

(ix) Liens securing Indebtedness under Mortgage Facilities in an aggregate principal amount not to exceed $500.0 million Incurred and
outstanding after the Issue Date; 
 (x) Liens securing Indebtedness under Debt Facilities in an aggregate principal amount not
to exceed $1,700.0 million at any one time outstanding; 
 (xi) Liens securing Indebtedness under Interest Rate Agreements,
Currency Agreements or Commodity Price Protection Agreements or otherwise Incurred to hedge interest rate risk or currency or commodity pricing risk; 
 (xii) Liens to secure any refinancing (or successive refinancings) as a whole, or in part, of any Indebtedness secured by any Lien referred to in the foregoing clauses (i), (iv), (v), (vi) or (xi);
provided, however, that: (a) such new Lien shall be limited to all or part of the same property and assets that secured or, under the written agreements pursuant to which the original Lien arose, could secure the original Lien
(plus improvements and accessions to, such property or proceeds or distributions thereof); and (b) the Indebtedness secured by such Lien at such time is not increased to any amount greater than the sum of (x) the outstanding principal
amount or, if greater, committed amount of the Indebtedness described in clauses (i), (iv), (v), (vi) or (xi) at the time the 

  
 18 

 
original Lien became a Lien permitted under the Indenture and (y) an amount necessary to pay any fees and expenses, including premiums, related to such refinancing, refunding, extension,
renewal or replacement; and 
 (xiii) Liens on assets subject to a Sale and Leaseback Transaction securing Attributable Debt
permitted to be Incurred pursuant to Section 5.02 of this Supplemental Indenture. 
 (c) Notwithstanding the restrictions
contained in subsections (a) and (b) of this Section 5.01, the Company and its Subsidiaries shall be permitted to Incur Indebtedness secured by a Lien which would otherwise be subject to the restrictions contained in subsections
(a) and (b) of this Section 5.01 without equally and ratably securing the Notes, if any, provided that, after giving effect to such Indebtedness, the aggregate amount of all Indebtedness secured by Liens (not including Liens
permitted under clauses (i) through (xiii) of Section 5.01(b)), together with all Attributable Debt outstanding pursuant to Section 5.02(b), does not exceed 15% of the Consolidated Net Tangible Assets of the Company calculated as
of the date of the creation or incurrence of the Lien. The Company and its Subsidiaries also may, without equally and ratably securing the Notes, create or incur Liens that extend, renew, substitute or replace (including successive extensions,
renewals, substitutions or replacements), in whole or in part, any Lien permitted pursuant to the preceding sentence. 

SECTION 5.02 Limitations on Sale and Leaseback Transactions. 

(a) The Company shall not, and shall not permit any of its Domestic Subsidiaries to, directly or indirectly, enter into any Sale and
Leaseback Transaction, unless: 
 (i) such transaction with respect to a Principal Property if a binding commitment with
respect thereto is entered into within one year after the later of (x) the Issue Date or (y) the date such Principal Property was acquired; 
 (ii) the Sale and Leaseback Transaction is solely with the Company or any of its Domestic Subsidiaries; 
 (iii) the lease is for a period not in excess of 36 months, including renewals; 

(iv) the Company would (at the time of entering into such arrangement) be entitled to Incur Indebtedness secured by a Lien with respect
to such Sale and Leaseback Transaction, without equally and ratably securing the Notes then Outstanding under the Indenture, pursuant to Section 5.01(c) of this Supplemental Indenture; or 

(v) leases where the proceeds from the sale of the subject Principal Property are at least equal to the fair market value (as determined
in good faith by the Company) of the subject Principal Property and the Company applies an amount equal to the net proceeds from the sale of such Principal Property to the purchase of other property or assets used or useful in its business or to the
retirement of long-term Indebtedness within 365 days of the effective date of any such Sale and Leaseback Transaction; provided that, in lieu of applying such amount to the retirement of long-term Indebtedness, the Company may deliver Notes
to the Trustee for cancellation. 
 (b) Notwithstanding the restrictions set forth in subsection (a) of this
Section 5.02, the Company and its Subsidiaries may enter into any Sale and Leaseback Transaction which would otherwise be subject to such restrictions, if after giving effect thereto the aggregate amount of all Attributable Debt with respect to
such transactions, together with all Indebtedness outstanding pursuant to Section 5.01(c) of this Supplemental Indenture, does not exceed 15% of the Consolidated Net Tangible Assets of the Company calculated as of the closing date of the Sale
and Leaseback Transaction. 

  
 19 

 SECTION 5.03 Limitation on Issuances of Guarantees of Indebtedness. 

(a) The Company shall not cause or permit any Domestic Subsidiary (which is not a Guarantor), directly or indirectly, to guarantee,
assume or in any other manner become liable with respect to any Indebtedness of the Company or any Domestic Subsidiary unless such Domestic Subsidiary simultaneously executes and delivers a supplemental indenture to the Indenture providing for a
Subsidiary Guarantee of the Notes on the same terms as the guarantee of such Indebtedness except that (A) such guarantee need not be secured unless required pursuant to Section 5.01 of this Supplemental Indenture and (B) if such
Indebtedness is by its terms expressly subordinated to the Notes, any such assumption, guarantee or other liability of such Domestic Subsidiary with respect to such Indebtedness shall be subordinated to such Domestic Subsidiary’s Subsidiary
Guarantee of the Notes at least to the same extent as such Indebtedness is subordinated to the Notes. 
 The preceding paragraph
will not be applicable to any Guarantees of any Domestic Subsidiary given to a bank or trust company or any commercial banking institution that is a member of the U.S. Federal Reserve System (or any branch, Subsidiary or Affiliate thereof), in
connection with the operation of cash management programs established for its benefit or that of any other Domestic Subsidiary. 

(b) Notwithstanding subsection (a) of this Section 5.03, any Subsidiary Guarantee by a Domestic Subsidiary of the Notes shall
provide by its terms that it (and all Liens securing the same) shall be automatically and unconditionally released and discharged upon (i) any sale, exchange or transfer, to any Person not an Affiliate of the Company, of all of the
Company’s Capital Stock in, or all or substantially all the assets of, such Domestic Subsidiary, which transaction is in compliance with the terms of the Indenture and such Domestic Subsidiary is released from all Guarantees, if any, by it of
other Indebtedness of the Company or any Domestic Subsidiary, and (ii) with respect to any Subsidiary Guarantee created after the Issue Date, the release by the holders of the Indebtedness of the Company described in subsection (a) of this
Section 5.03 of their Guarantee by such Domestic Subsidiary (including any deemed release upon payment in full of all obligations under such Indebtedness), at such time as (A) no other Indebtedness of the Company has been guaranteed by
such Domestic Subsidiary or (B) the holders of all such other Indebtedness which is guaranteed by such Domestic Subsidiary also release their Guarantee by such Domestic Subsidiary (including any deemed release upon payment in full of all
obligations under such Indebtedness). 
 SECTION 5.04 Merger, Consolidation or Sale of Assets. 

(a) The Company shall not, in a single transaction or through a series of related transactions, consolidate or merge with or into any
other Person, or, directly or indirectly, sell, assign, transfer, lease, convey or otherwise dispose of all or substantially all of its properties or assets to another Person, or permit any Person to merge with or into it, unless: 

(i) the Company is the continuing Person or the successor Person formed by or surviving any such consolidation or merger (if other than
the Company) or to which such sale, assignment, transfer, lease or conveyance or other disposition has been made is a corporation organized and existing under the laws of the United States of America, any State thereof or the District of Columbia;

  
 20 

 (ii) the Person formed by or surviving any such consolidation or merger (if other than the
Company) or the Person to which such sale, assignment, transfer, lease, conveyance or other disposition has been made assumes all the obligations of the Company under the Indenture, including payment of the principal of and interest on the Notes,
and the performance and observance of all of the covenants and conditions of the Indenture to be performed by the Company, by a supplemental indenture, executed and delivered to the Trustee; 

(iii) immediately after giving effect to such transaction, no Default or Event of Default shall have occurred and be continuing;

 (iv) at the time of such transaction, the Company or the surviving Person shall have delivered, or caused to be delivered,
to the Trustee, in form and substance reasonably satisfactory to the Trustee, an Officer’s Certificate and an Opinion of Counsel, each to the effect that such consolidation, merger, sale, assignment, transfer, lease or conveyance or other
transaction and the supplemental indenture in respect thereof comply with the Indenture and that all conditions precedent therein provided for relating to such transaction have been complied with; and 

(v) at the time of the transaction, each Guarantor, unless it is the other party to the transaction described above, shall have by
supplemental indenture confirmed that its Subsidiary Guarantee shall apply to such Person’s obligations under the Indenture and the Notes. 
 In the event of any transaction (other than a lease) described in and complying with the conditions listed in the immediately preceding paragraph in which the Company is not the continuing corporation,
the successor Person formed or remaining or to which such transfer is made shall succeed to, and be substituted for, and may exercise every right and power of, the Company and the Company will be discharged from all obligations and covenants under
the Indenture and the Notes. 
 (b) Each Guarantor (other than any Guarantor whose Subsidiary Guarantee is to be released in
accordance with the terms of its Subsidiary Guarantee and the Indenture in connection with the sale, exchange or transfer to any Person (other than an Affiliate of the Company) of all of the Capital Stock of such Guarantor) shall not, and the
Company shall not cause or permit any Guarantor to, consolidate with or merge with or into any Person other than the Company or any other Guarantor unless: 
 (i) such Guarantor is the surviving corporation or the Person formed by or surviving any such consolidation or merger (if other than the Guarantor) is a corporation organized and existing under the laws
of the United States of America, any State thereof or the District of Columbia and such Person assumes by supplemental indenture all of the obligations of the Guarantor on its Subsidiary Guarantee; and 

(ii) immediately after giving effect to such transaction, no Default or Event of Default shall have occurred and be continuing.

 The successor Guarantor shall succeed to, and except in the case of a lease, be substituted for, such Guarantor under the
Indenture and such Guarantor’s Subsidiary Guarantee. 
 SECTION 5.05 Compliance Certificate. The Company shall
furnish, so long as any of the Notes are Outstanding, to the Trustee annually, within 120 days after the end of each fiscal year in which the Notes are Outstanding, a certificate from the principal executive officer, principal financial officer or
principal accounting officer as to his or her knowledge of the Company’s compliance with all conditions and covenants under the Indenture (which compliance shall be determined without regard to any

  
 21 

 
period of grace or requirement of notice provided under the Indenture). The Company shall, so long as any of the Notes are Outstanding, also deliver to the Trustee, as soon as possible, but in no
event later than five (5) Business Days after the principal executive officer, principal financial officer or principal accounting officer becomes aware of any Default or Event of Default, a certificate specifying such Default or Event of
Default. Such certificates need not comply with Section 16.01 of the Base Indenture. 
 ARTICLE VI 

DEFAULTS AND REMEDIES 
 SECTION 6.01 Events of Default. 
 (a) In addition to those specified
in Section 7.01 of the Base Indenture, each of the following is an “Event of Default” with respect to the Notes: 
 (i) failure by the Company to comply with the provisions of Section 4.01 or Section 5.04 of this Supplemental Indenture; 

(ii) default under any Indebtedness of the Company or any of its Subsidiaries having an aggregate amount of at least $50.0 million
constituting a default either (a) of payment of principal when due and payable (whether at scheduled maturity, upon acceleration, redemption or otherwise) or (b) which results in acceleration of the Indebtedness, and in each case after the
Company has received written notice (with a copy to the Trustee if sent by the Holders) of the default from the Trustee or from the Holders of at least 25% of the aggregate principal amount of Notes then Outstanding and thereafter do not cure the
default within 30 days; 
 (iii) failure by the Company or any of its Subsidiaries to pay final judgments aggregating in excess
of $50.0 million above available insurance coverage or indemnity coverage, which judgments are not paid, discharged or stayed for a period of 60 days; and 
 (iv) except as permitted by the Indenture, any Subsidiary Guarantee of a Significant Subsidiary of the Company is held in any judicial proceeding to be unenforceable or invalid. 

(b) Clause (c) of Section 7.01 of the Base Indenture shall not apply to the Notes. 

(c) Clauses (d), (e) and (f) of Section 7.01 of the Base Indenture are deleted and replaced in their entirety by the
following: 
 “(d) failure by the Company to comply with any of the agreements contained in the Indenture or the Notes
(other than an agreement, a default in the performance of which, is specifically handled elsewhere in this Section 6.01(a) or Section 7.01 of the Base Indenture) for 30 days after written notice is received by the Company from the Trustee
or by the Company and the Trustee from the Holders of at least 25% of the aggregate principal amount of Notes then Outstanding specifying the default (and demanding that such default be remedied);” 

“(e) there shall have been the entry by a court of competent jurisdiction of (a) a decree or order for relief in respect of
the Company or any of its Significant Subsidiaries in an involuntary case or proceeding under any applicable Bankruptcy Law or (b) a decree or order adjudging the Company or any of its Significant Subsidiaries bankrupt or insolvent, or seeking
reorganization, arrangement, adjustment or composition of or in respect of the Company or any of its Significant Subsidiaries under any applicable federal or state law, or appointing a 

  
 22 

 
custodian, receiver, liquidator, assignee, trustee, sequestrator (or other similar official) of the Company or any of its Significant Subsidiaries or of any substantial party of their respective
properties, or ordering the winding up or liquidation of their affairs, and any such decree or order for relief shall continue to be in effect, or any such other decree or order shall be unstayed and in effect, for a period of 60 consecutive
days;” 
 “(f) (i) the Company or any of its Significant Subsidiaries commences a voluntary case or proceeding
under any applicable Bankruptcy Law or any other case or proceeding to be adjudicated bankrupt or insolvent, 
 (ii) the
Company or any of its Significant Subsidiaries consents to the entry of a decree or order for relief in respect of the Company or such Significant Subsidiary in an involuntary case or proceeding under any applicable Bankruptcy Law or to the
commencement of any bankruptcy or insolvency case or proceeding against it, 
 (iii) the Company or any of its Significant
Subsidiaries files a petition or answer or consent seeking reorganization or relief under any applicable federal or state law, 

(iv) the Company or any of its Significant Subsidiaries (1) consents to the filing of such petition or the appointment of, or
taking possession by, a custodian, receiver, liquidator, assignee, trustee, sequestrator or similar official of the Company or such Significant Subsidiary or of any substantial part of their respective properties, (2) makes an assignment for
the benefit of creditors or (3) admits in writing its inability to pay its debts generally as they become due, or 
 (v)
the Company or any of its Significant Subsidiaries takes any corporate action in furtherance of any such actions described in this clause (f);” 
 ARTICLE VII 
 DEFEASANCE AND COVENANT DEFEASANCE; DISCHARGE

 SECTION 7.01 Option to Effect Legal Defeasance or Covenant Defeasance. The Company may, at the option of its
Board of Directors evidenced by a resolution set forth in an Officer’s Certificate, at any time, elect to have either Section 7.02 or 7.03 of this Supplemental Indenture be applied to all Outstanding Notes and Subsidiary Guarantees upon
compliance with the conditions set forth below in this Article VII. 
 SECTION 7.02 Defeasance and Discharge. Upon
the Company’s exercise under Section 7.01 of the option applicable to this Section 7.02, the Company shall, subject to the satisfaction of the conditions set forth in Section 7.04, be deemed to have been discharged from its
obligations with respect to all Outstanding Notes and the related Subsidiary Guarantees on the date the conditions set forth below are satisfied (hereinafter, “Defeasance”). For this purpose, Defeasance means that the Company, a Guarantor,
if applicable, and any other obligor under the Indenture shall be deemed to have paid and discharged the entire Indebtedness represented by the Outstanding Notes being defeased, which shall thereafter be deemed to be “Outstanding” only for
the purposes of Section 7.05 and the other Sections of the Indenture referred to in (a) and (b) below, and to have satisfied all its other obligations under such Notes and the Indenture (and the Trustee, on written demand of and at
the expense of the Company, shall execute proper instruments acknowledging the same), except for the following provisions which shall survive until otherwise terminated or discharged hereunder: (a) the rights of Holders of such Outstanding
Notes to receive, solely from the trust fund described in Section 7.04, and as more fully set forth 

  
 23 

 
in such Section 7.04, payments in respect of the principal of, premium, if any, and interest on such Notes when such payments are due, (b) the Company’s obligations with respect to
such Notes under Article II of the Supplemental Indenture and Article III and Section 6.02 of the Base Indenture, (c) the rights, powers, trusts, duties and immunities of the Trustee hereunder and the Company’s obligations in
connection therewith and (d) this Article VII. Subject to compliance with this Article VII, the Company may exercise its option under this Section 7.02 notwithstanding the prior exercise of its option under Section 7.03. 

SECTION 7.03 Covenant Defeasance. Upon the Company’s exercise under Section 7.01 hereof of the option applicable to
this Section 7.03, the Company and each Guarantor shall, subject to the satisfaction of the conditions set forth in Section 7.04 hereof, be released from their obligations under the covenants contained in Sections 4.01, 5.01, 5.02, 5.03,
5.04 and 5.05 of this Supplemental Indenture with respect to the Outstanding Notes, and the Events of Default set forth in Sections 6.01(a)(i), 6.01(a)(ii), 6.01(a)(iii) and 6.01(a)(iv) of this Supplemental Indenture shall cease to apply, in each
case, on and after the date the conditions set forth in Section 7.04 are satisfied (hereinafter, “Covenant Defeasance”), and the Notes shall thereafter be deemed not “Outstanding” for the purposes of any direction, waiver,
consent or declaration or act of Holders (and the consequences of any thereof) in connection with such covenants, but shall continue to be deemed “Outstanding” for all other purposes hereunder (it being understood that the Notes shall not
be deemed Outstanding for accounting purposes). For this purpose, Covenant Defeasance means that, with respect to the Outstanding Notes, the Company and each Guarantor may omit to comply with and shall have no liability in respect of any term,
condition or limitation set forth in any such covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such covenant or by reason of any reference in any such covenant to any other provision herein or in any other
document and such omission to comply shall not constitute a Default or an Event of Default under Section 6.01 of this Supplemental Indenture or Section 7.01 of the Base Indenture with respect to the Notes, but, except as specified above,
the remainder of the Indenture and such Notes shall be unaffected thereby. 
 SECTION 7.04 Conditions to Defeasance or
Covenant Defeasance. The following shall be the conditions to the application of either Section 7.02 or 7.03 of this Supplemental Indenture to the Outstanding Notes: 
 (a) the Company must irrevocably deposit or cause to be deposited with the Trustee, in trust, for the benefit of the Holders of such Notes, cash in United States dollars, U.S. Government Obligations, or a
combination thereof, in such amounts as will be sufficient, in the opinion of a nationally recognized firm of independent public accountants or a nationally recognized investment banking firm, to pay and discharge the principal of, premium, if any,
and interest on such Outstanding Notes on the Stated Maturity; 
 (b) in the case of an election under Section 7.02 of this
Supplemental Indenture, the Company shall have delivered to the Trustee an Opinion of Counsel from independent counsel in the United States stating that (A) the Company has received from, or there has been published by, the Internal Revenue
Service a ruling, or (B) since the Issue Date, there has been a change in the applicable U.S. federal income tax law, in either case to the effect that, and based thereon such Opinion of Counsel from independent counsel in the United States
shall confirm that, the Holders of such Outstanding Notes will not recognize income, gain or loss for U.S. federal income tax purposes as a result of such Defeasance and will be subject to U.S. federal income tax on the same amounts, in the same
manner and at the same times as would have been the case if such Defeasance had not occurred; 

  
 24 

 (c) in the case of an election under Section 7.03, the Company shall have delivered to
the Trustee an Opinion of Counsel from independent counsel in the United States to the effect that the Holders of such Outstanding Notes will not recognize income, gain or loss for U.S. federal income tax purposes as a result of such Covenant
Defeasance and will be subject to U.S. federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such Covenant Defeasance had not occurred; 

(d) no Default or Event of Default shall have occurred and be continuing with respect to such Notes either (a) on the date of such
deposit (other than a Default or Event of Default solely resulting from the borrowing of funds to be applied to such deposit); or (b) insofar as clauses (e) and (f) of Section 7.01 of the Base Indenture (as amended pursuant to
Section 6.01(c) of this Supplemental Indenture) are concerned, at any time during the period ending on the 91st day after the date of deposit; 
 (e) such Defeasance or Covenant Defeasance shall not result in a breach or violation of, or constitute a Default under, the Indenture or any other material agreement or instrument (other than, to the
extent set forth in clause (d) above, the Indenture) to which the Company or any Guarantor is a party or by which it is bound; 
 (f) such Defeasance or Covenant Defeasance shall not result in the trust arising from such deposit constituting an investment company within the meaning of the Investment Company Act of 1940, as amended,
unless such trust shall be registered under such Act or exempt from registration thereunder; 
 (g) the Company shall have
delivered to the Trustee an Opinion of Counsel from independent counsel in the United States to the effect that after the 91st day following the date of deposit, the trust funds will not be subject to the effect of any applicable bankruptcy,
insolvency, reorganization or similar laws affecting creditors’ rights generally; 
 (h) the Company shall have delivered
to the Trustee an Officer’s Certificate stating that the deposit was not made by the Company with the intent of preferring the Trustee, Holders of such Notes or any Subsidiary Guarantee over the other creditors of the Company or any Guarantor
with the intent of defeating, hindering, delaying or defrauding creditors of the Company or any Guarantor or others; and 
 (i)
the Company shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel from independent counsel in the United States, each stating that all conditions precedent relating to either the Defeasance or the Covenant
Defeasance, as the case may be, have been complied with. 
 SECTION 7.05 Deposited Money and U.S. Government Obligations
to Be Held in Trust; Other Miscellaneous Provisions. 
 Subject to Section 7.06 of this Supplemental Indenture, all
money and non-callable U.S. Government Obligations (including the proceeds thereof) deposited with the Trustee (or other qualifying trustee, collectively for purposes of this Section 7.05, the “Trustee”) pursuant to Section 7.04
of this Supplemental Indenture in respect of the Outstanding Notes being defeased shall be held in trust and applied by the Trustee, in accordance with the provisions of such Notes and the Indenture, to the payment, either directly or through any
Paying Agent (including the Company acting as Paying Agent) to the Holders of such Notes of all sums due and to become due thereon in respect of principal, premium, if any, and interest, but such money need not be segregated from other funds except
to the extent required by law. 

  
 25 

 The Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed
on or assessed against the cash or non-callable U.S. Government Obligations deposited pursuant to Section 7.04 of this Supplemental Indenture or the principal and interest received in respect thereof other than any such tax, fee or other charge
which by law is for the account of the Holders of the Outstanding Notes being defeased. 
 Anything in this Article VII to the
contrary notwithstanding, the Trustee shall deliver or pay to the Company from time to time upon the written request of the Company any money or non-callable U.S. Government Obligations held by it as provided in Section 7.04 of this
Supplemental Indenture which, in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee (which may be the opinion delivered under Section 7.04(a) of
this Supplemental Indenture), are in excess of the amount thereof that would then be required to be deposited to effect an equivalent Defeasance or Covenant Defeasance. 
 SECTION 7.06 Repayment to the Company. Subject to applicable laws relating to abandoned property, any money deposited with the Trustee or any Paying Agent, or then held by the Company, in
trust for the payment of the principal of, premium, if any, or interest on any Note and remaining unclaimed for two years after such principal, and premium, if any, or interest has become due and payable shall be paid to the Company on its written
request or (if then held by the Company) shall be discharged from such trust; and the Holder of such Note shall thereafter, as a secured creditor, look only to the Company for payment thereof, and all liability of the Trustee or such Paying Agent
with respect to such trust money, and all liability of the Company as trustee thereof, shall thereupon cease. 

SECTION 7.07 Reinstatement. If the Trustee or Paying Agent is unable to apply any United States dollars or non-callable U.S.
Government Obligations in accordance with Section 7.02 or 7.03 of this Supplemental Indenture, as the case may be, by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such
application, then the Company’s obligations under the Indenture and the Notes theretofore defeased shall be revived and reinstated as though no deposit had occurred pursuant to Section 7.02 or 7.03 of this Supplemental Indenture until such
time as the Trustee or Paying Agent is permitted to apply all such money in accordance with such Section 7.02 or 7.03, as the case may be; provided, however, that, if the Company makes any payment of principal of, premium, if any,
or interest on any Note following the reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of such Notes to receive such payment from the money held by the Trustee or Paying Agent. 

SECTION 7.08 Discharge. The Indenture will be discharged and will cease to be of further effect (except as to surviving
rights of registration of transfer or exchange of the notes as expressly provided for in the Indenture) and the Trustee, at the expense and written direction of the Company, will execute proper instruments acknowledging satisfaction and discharge of
the Indenture as to all Outstanding Notes under the Indenture when: 
 (a) either: 

(i) all such Notes theretofore authenticated and delivered (except lost, stolen or destroyed Notes which have been replaced or paid or
Notes whose payment has been deposited in trust or segregated and held in trust by the Company and thereafter repaid to the Company or discharged from such trust as provided for in the Indenture) have been delivered to the Trustee for cancellation,
or 

  
 26 

 (ii) all such Notes not theretofore delivered to the Trustee for cancellation (a) have
become due and payable, (b) will become due and payable at their Stated Maturity within one year or (c) are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption
by the Trustee in the name, and at the expense, of the Company; 
 (b) the Company or any Guarantor has irrevocably deposited or
caused to be deposited with the Trustee as trust funds in trust an amount in United States dollars sufficient to pay and discharge the entire Indebtedness on such Notes not theretofore delivered to the Trustee for cancellation, including principal
of, premium, if any, and accrued interest at such Maturity, Stated Maturity or redemption date; 
 (c) no Default or Event of
Default shall have occurred and be continuing on the date of such deposit or shall occur as a result of such deposit and such deposit will not result in a breach or violation of, or constitute a default under, any other material agreement to which
the Company or any Guarantor is a party or by which the Company or any Guarantor is bound; 
 (d) the Company or any Guarantor
has paid or caused to be paid all sums payable under the Indenture by the Company and any Guarantor; 
 (e) the Company has
delivered irrevocable instructions to the Trustee to apply such funds to the payment of the Notes at Maturity or redemption, as the case may be; and 
 (f) the Company has delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel each stating that all conditions precedent under the Indenture relating to the satisfaction and
discharge of such Indenture have been complied with. 
 ARTICLE VIII 

AMENDMENT, SUPPLEMENT AND WAIVER 
 SECTION 8.01 Without Consent of Holders of Notes. Notwithstanding Section 8.02 of this Supplemental Indenture, the Company, the Guarantors and the Trustee may amend or supplement the
Indenture or the Notes without notice to or the consent of any Holder of a Note: 
 (1) to cure any ambiguity, defect or
inconsistency in the Indenture or the Notes; 
 (2) to provide for uncertificated Notes in addition to or in place of
certificated Notes; 
 (3) to provide for the assumption of the Company’s obligations to Holders of Notes in the case of a
merger or consolidation or sale of all or substantially all of the Company’s assets; 
 (4) to make any change that, in the
good faith opinion of the Board of Directors of the Company, would provide any additional rights or benefits to the Holders of Notes or that does not adversely affect the legal rights under the Indenture of any such Holder; 

(5) to secure the Notes or to add additional Guarantors; 
 (6) to comply with the requirements of the SEC in order to effect or maintain the qualification of the Indenture under the Trust Indenture Act; 

  
 27 

 (7) to conform the text of the Indenture or the Notes to any provision of the
“Description of the Notes” in the Prospectus Supplement to the extent that such provision in the “Description of the Notes” in the Prospectus Supplement was intended to be a verbatim recitation of the Indenture, the Subsidiary
Guarantees or the Notes; 
 (8) to remove a Guarantor which, in accordance with the terms of the Indenture, ceases to be liable
in respect of its Subsidiary Guarantee; 
 (9) to add to the covenants of the Company or any Guarantor for the benefit of the
Holders of Notes or to surrender any right or power conferred upon the Company or any Guarantor; 
 (10) to provide for the
issuance of additional Notes in accordance with the limitations set forth in the Indenture as of the Issue Date; 
 (11) to
comply with the provisions of the DTC or the Trustee with respect to the provisions in the Indenture and the Notes relating to transfer and exchanges of Notes or beneficial interests in Notes; and 

(12) evidence and provide for the acceptance of appointment by a successor trustee. 

SECTION 8.02 With Consent of Holders of Notes. 
 Except as provided below in this Section 8.02, the Company, the Guarantors and the Trustee may amend or supplement the Indenture or the Notes and/or any Subsidiary Guarantees may be amended or
supplemented (including, without limitation, consents obtained in connection with a purchase of, tender offer or exchange offer for, Notes) of the holders of at least a majority in aggregate principal amount of Outstanding Notes affected by such
modifications or amendments; and, subject to Section 7.06 of the Base Indenture, any existing Default or Event of Default (other than a Default or Event of Default in the payment of the principal of, premium, if any, or interest on the Notes,
except a payment default resulting from an acceleration that has been rescinded) or compliance with any provision of the Indenture, the Notes or the Subsidiary Guarantees may be waived with the consent of the Holders of a majority in principal
amount of the then Outstanding Notes (including consents obtained in connection with a purchase of, tender offer or exchange offer for, Notes). 
 Upon the written request of the Company accompanied by a resolution of its Board of Directors authorizing the execution of any such amended or supplemental Indenture, and upon the filing with the Trustee
of evidence satisfactory to the Trustee of the consent of the Holders of Notes as aforesaid, and upon receipt by the Trustee of any document requested by it pursuant to Section 11.02(e) of the Base Indenture, the Trustee shall join with the
Company and the Guarantors in the execution of such amended or supplemental Indenture and to make any further appropriate agreements and stipulations that may be therein contained, unless such amended or supplemental Indenture directly affects the
Trustee’s own rights, duties or immunities under the Indenture or otherwise, in which case the Trustee may in its discretion, but shall not be obligated to, enter into such amended or supplemental Indenture. 

It shall not be necessary for the consent of the Holders of Notes under this Section 8.02 to approve the particular form of any
proposed amendment or waiver, but it shall be sufficient if such consent approves the substance thereof. 

  
 28 

 After an amendment, supplement or waiver under this Section 8.02 becomes effective, the
Company shall mail to the Holders of Notes affected thereby a notice briefly describing the amendment, supplement or waiver. Any failure of the Company to mail such notice, or any defect therein, shall not, however, in any way impair or affect the
validity of any such amended or supplemental Indenture or waiver. Subject to Section 7.06, the Holders of a majority in aggregate principal amount of the Notes then Outstanding voting as a single class may waive compliance in a particular
instance by the Company and/or the Guarantors with any provision of this Indenture, the Notes or the Subsidiary Guarantees. However, without the consent of each Holder affected, an amendment or waiver under this Section 8.02 may not (with
respect to any Notes held by a non-consenting Holder): 
 (1) reduce the principal amount of Notes whose Holders must consent to
an amendment, supplement or waiver; 
 (2) reduce the principal of or change the fixed maturity of any Note or alter the
provisions with respect to the redemption of Notes (other than provisions relating to the covenants described in Section 4.01 of this Supplemental Indenture); 
 (3) reduce the rate of or change the time for payment of interest on any Note; 

(4) waive a Default or Event of Default in the payment of principal of and interest on the Notes (except a rescission of acceleration of
the Notes by the Holders of at least a majority in aggregate principal amount of the Outstanding Notes and a waiver of the payment default that resulted from such acceleration); 

(5) make any Note payable in money other than that stated in the Notes; 

(6) make any change in the provisions of the Indenture relating to waivers of past Defaults or the rights of Holders of Notes to receive
payments of principal of or interest on the Notes; 
 (7) waive a redemption payment with respect to any Note (other than a
payment required by one of the covenants described in Section 4.01 of this Supplemental Indenture); 
 (8) make any change
in the foregoing amendment and waiver provisions; 
 (9) modify, without the written consent of the Trustee, the rights, duties
or immunities of the Trustee; or 
 (10) release any Guarantor that is a Significant Subsidiary from its Subsidiary Guarantee,
except as provided in the Indenture. 
 SECTION 8.03 Revocation and Effect of Consents. Until an amendment,
supplement or waiver becomes effective, a consent to it by a Holder of a Note is a continuing consent by the Holder of a Note and every subsequent Holder of a Note or portion of a Note that evidences the same debt as the consenting Holder’s
Note, even if notation of the consent is not made on any Note. However, any such Holder of a Note or subsequent Holder of a Note may revoke the consent as to its Note if the Trustee receives written notice of revocation before the date the waiver,
supplement or amendment becomes effective. An amendment, supplement or waiver becomes effective in accordance with its terms and thereafter binds every Holder. 
 SECTION 8.04 Notation on or Exchange of Notes. The Trustee may place an appropriate notation about an amendment, supplement or waiver on any affected Note thereafter

  
 29 

 
authenticated. The Company in exchange for all affected Notes may issue and the Trustee shall, upon receipt of an authentication order, authenticate new Notes that reflect the amendment,
supplement or waiver. Failure to make the appropriate notation or issue a new Note shall not affect the validity and effect of such amendment, supplement or waiver. 
 SECTION 8.05 Trustee to Sign Amendments, etc. The Trustee shall sign any amended or supplemental Indenture authorized pursuant to this Article VIII if the amendment or supplement does not in
the judgment of the Trustee adversely affect the rights, duties, liabilities or immunities of the Trustee. The Company may not sign an amendment or supplemental Indenture until its Board of Directors approves it. In executing any amended or
supplemental indenture, the Trustee shall receive and (subject to Section 11.01 of the Base Indenture) shall be fully protected in conclusively relying upon an Officer’s Certificate and an Opinion of Counsel stating that the execution of
such amended or supplemental Indenture is authorized or permitted by this Indenture. 
 ARTICLE IX 

GUARANTEES 

SECTION 9.01 Guarantee. 
 Subject to this Article IX, each of the Guarantors hereby, jointly and severally, unconditionally guarantees 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 the Indenture, the Notes or the obligations of the Company hereunder or thereunder, that: (a) the principal of, premium, if any, 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, premium, if any, 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 (b) 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 ten (10) 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. Each Guarantor agrees that this is a Guarantee of payment and not a Guarantee of collection. 
 The Guarantors hereby agree that their obligations hereunder shall be unconditional, irrespective of the validity, regularity or enforceability of the Notes or the 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. Each Guarantor hereby waives diligence, presentment, demand of payment (except as specifically provided in the preceding paragraph), 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 the preceding paragraph) whatsoever and covenant that this Subsidiary Guarantee
shall not be discharged except by complete performance of the obligations contained in the Notes and the Indenture. Each Guarantor also expressly waives, 

  
 30 

 
without any requirement of any notice to or further assent by such Guarantor, to the fullest extent permitted by applicable law, the benefit of all principles or provisions of applicable law
which are or might be in conflict with the terms hereof, including, without limitation, Section 10-7-23 and Section 10-7-24 of the Official Code of Georgia Annotated. 

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 Subsidiary Guarantee, to the extent theretofore discharged, shall be reinstated in full
force and effect. 
 Each Guarantor agrees that it 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. Each Guarantor further agrees that, 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 VII of the Base Indenture and Article VI of this Supplemental Indenture for the purposes of this Subsidiary 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 VII of the Base Indenture and
Article VI of this Supplemental Indenture, such obligations (whether or not due and payable) shall forthwith become due and payable by the Guarantors for the purpose of this Subsidiary Guarantee, failing payment when due by the Company which failure
continues for ten (10) days after demand therefor is made to the Company. 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 Subsidiary Guarantee. 
 SECTION 9.02 Limitation on Guarantor Liability. Each Guarantor, and by its
acceptance of Notes, each Holder, hereby confirms that it is the intention of all such parties that the Subsidiary Guarantee of such Guarantor not constitute a fraudulent transfer or conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent
Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or state law to the extent applicable to any Subsidiary Guarantee. To effectuate the foregoing intention, the Trustee, the Holders and the Guarantors hereby irrevocably agree
that the obligations of such Guarantor under its Subsidiary Guarantee and this Article IX shall be limited to the maximum amount as will, after giving effect to such maximum amount and all other contingent and fixed liabilities of such Guarantor
that are relevant under such laws, and after giving effect to any collections from, rights to receive contribution from or payments made by or on behalf of any other Guarantor in respect of the obligations of such other Guarantor under this Article
IX, result in the obligations of such Guarantor under its Subsidiary Guarantee not constituting a fraudulent transfer or conveyance. 
 SECTION 9.03 Execution and Delivery of Guarantee. 
 To evidence the
Subsidiary Guarantees set forth in Section 9.01 of this Supplemental Indenture, the Company hereby agrees to cause a notation of such Subsidiary Guarantee substantially in the form of Exhibit B hereto to be endorsed by manual or
facsimile signature by an officer of each Guarantor on each Note authenticated and delivered by the Trustee. The Company shall cause all future Guarantors to execute a supplemental indenture substantially in the form of Exhibit C hereto.

 Each Guarantor hereby agrees that its Subsidiary Guarantee set forth in Section 9.01 of this Supplemental Indenture and
in any subsequent supplemental indentures shall remain in full force and effect notwithstanding any failure to endorse on each Note a notation of such Subsidiary Guarantee. 

  
 31 

 If an officer whose signature is on any supplemental indenture or on the Subsidiary
Guarantee no longer holds that office at the time the Trustee authenticates the Note on which a Subsidiary Guarantee is endorsed, the Subsidiary Guarantee shall be valid and obligatory nevertheless. 

The delivery of any Note by the Trustee, after the authentication thereof hereunder, shall constitute due delivery of the Subsidiary
Guarantee set forth in this Supplemental Indenture on behalf of the Guarantors. 
 In the event that the Company creates or
acquires any new Domestic Subsidiaries subsequent to the date of this Supplemental Indenture, if required by Section 5.03 of this Supplemental Indenture, the Company shall cause such Domestic Subsidiaries to execute supplemental indentures to
the Indenture and Subsidiary Guarantees in accordance with Section 5.03 of this Supplemental Indenture and this Article IX, to the extent applicable. 
 SECTION 9.04 Release of Guarantor. The Subsidiary Guarantee of a Guarantor will be released: 
 (a) upon any sale, exchange or transfer, to any Person not an Affiliate of the Company, of all of the Company’s Capital Stock in, or all or substantially all the assets of, such Domestic Subsidiary,
which transaction is in compliance with the terms of the Indenture and such Domestic Subsidiary is released from all guarantees, if any, by it of other Indebtedness of the Company or any Domestic Subsidiary; 

(b) either Defeasance or Covenant Defeasance occurs with respect to such Notes in compliance with Article VII of this Supplemental
Indenture; or 
 (c) with respect to any Subsidiary Guarantees created after the Issue Date, the release by the holders of the
Indebtedness of the Company described in Section 5.03(a) of this Supplemental Indenture of their Guarantee by such Domestic Subsidiary (including any deemed release upon payment in full of all obligations under such Indebtedness), at such time
as (A) no other Indebtedness of the Company has been guaranteed by such Domestic Subsidiary or (B) the holders of all such other Indebtedness which is guaranteed by such Domestic Subsidiary also release their Guarantee by such Domestic
Subsidiary (including any deemed release upon payment in full of all obligations under such Indebtedness). 
 The Trustee, at
the expense and written direction of the Company, will execute proper instruments acknowledging the termination of such Subsidiary Guarantee as reasonably required by the representative of such Guarantor. 

Any Guarantor not released from its obligations under its Subsidiary Guarantee shall remain liable for the full amount of principal and
premium, if any, of and interest on the Notes and for the other obligations of any Guarantor under the Indenture as provided in this Article IX. 
 SECTION 9.05 Acknowledgement of Manufacturers’ Letter Agreements. It is hereby acknowledged that the enforcement of certain rights with respect to the Subsidiary Guarantees is subject to
the terms and conditions of the Manufacturers’ Letter Agreements. 

  
 32 

 SECTION 9.06 Certain California Law Waivers. As used in this Section 9.06, any
reference to “the principal” includes the Company, and any reference to “the creditor” includes the Holders. In accordance with Section 2856 of the California Civil Code: 

(a) each Guarantor agrees (i) to waive any and all rights of subrogation and reimbursement against the Company or against any
collateral or security granted by the Company for any of the Guarantor’s obligations and (ii) to withhold the exercise of any and all rights of contribution against any other guarantor of any of the Guarantor’s obligations and against
any collateral or security granted by any such other guarantor for any of the Guarantor’s obligations until the Guarantor’s obligations shall have been indefeasibly paid in full; 

(b) each Guarantor waives any and all other rights and defenses available to the Guarantor by reason of Sections 2787 to 2855, inclusive,
2899 and 3433 of the California Civil Code, including any and all rights or defenses Guarantor may have by reason of protection afforded to the principal with respect to any of the Guarantor’s obligations, or to any other guarantor of any of
the Guarantor’s obligations with respect to any of such guarantor’s obligations under its guaranty, in either case pursuant to the antideficiency or other laws of the State of California limiting or discharging the principal’s
indebtedness or such guarantor’s obligations, including Section 580a, 580b, 580d, or 726 of the California Code of Civil Procedure; and 
 (c) each Guarantor waives all rights and defenses arising out of an election of remedies by the creditor, even though that election of remedies, such as a nonjudicial foreclosure with respect to security
for any Subsidiary Guarantee obligation, has destroyed Guarantor’s rights of subrogation and reimbursement against the principal by the operation of Section 580d of the Code of Civil Procedure or otherwise; and even though that election of
remedies by the creditor, such as nonjudicial foreclosure with respect to security for an obligation of any other guarantor of any of the Guarantor’s obligations, has destroyed Guarantor’s rights of contribution against such other
guarantor. 
 No other provision of this Article IX shall be construed as limiting the generality of any of the covenants and
waivers set forth in this Section 9.06. In accordance with Section 10.06 of this Supplemental Indenture, the Subsidiary Guarantees shall be governed by, and shall be construed and enforced in accordance with, the internal laws of the State
of New York. This Section 9.06 is included solely out of an abundance of caution, and shall not be construed to mean that any of the above-referenced provisions of California law are in any way applicable to the Subsidiary Guarantees or to any
of the Guarantor’s obligations. 
 ARTICLE X 
 MISCELLANEOUS PROVISIONS 
 SECTION 10.01 Ratification of Base
Indenture. This Supplemental Indenture is executed and shall be construed as an indenture supplemental to the Base Indenture, and as supplemented and modified hereby, the Base Indenture is in all respects ratified and confirmed, and the Base
Indenture and this Supplemental Indenture shall be read, taken and construed as one and the same instrument. 

SECTION 10.02 Conflict with Trust Indenture Act. If any provision hereof limits, qualifies or conflicts with another
provision hereof, or with a provision of the Base Indenture, which is required to be included in this Supplemental Indenture, or in the Base Indenture, respectively, by any of the provisions of the Trust Indenture Act, such required provision shall
control to the extent it is applicable. 

  
 33 

 SECTION 10.03 Conflict with Base Indenture. To the extent not previously amended
or modified by this Supplemental Indenture, the Base Indenture shall remain in full force and effect. If any provision of this Supplemental Indenture relating to the Notes is inconsistent with any provision of the Base Indenture, the provision of
this Supplemental Indenture shall control. 
 SECTION 10.04 Effect of Headings. The Article and Section headings
herein are for convenience only and shall not affect the construction hereof. 
 SECTION 10.05 Successors and
Assigns. All covenants and agreements in this Supplemental Indenture by the Company shall bind its successors and assigns, whether so expressed or not. 
 SECTION 10.06 Separability Clause. In case any one or more of the provisions contained in this Supplemental Indenture or in the Notes shall for any reason be held to be invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
 SECTION 10.07 Governing Law. THIS SUPPLEMENTAL INDENTURE, THE NOTES AND THE SUBSIDIARY GUARANTEES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 SECTION 10.08 Waiver of Jury Trial. The Company, each Guarantor and the Trustee each hereby irrevocably waives,
to the fullest extent permitted by applicable law, any and all right it may have to a trial by jury in respect of any suit, action or other proceeding arising out of or relating to the Indenture, the Notes, the Subsidiary Guarantees or the
transactions contemplated hereby. 
 SECTION 10.09 Counterparts. This Supplemental Indenture may be executed in any
number of counterparts, and each of such counterparts shall for all purposes be deemed to be an original, but all such counterparts shall together constitute one and the same instrument. The exchange of copies of this Supplemental Indenture and of
signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Supplemental Indenture as to the parties hereto and may be used in lieu of the original Indenture for all purposes. Signatures of the parties
hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes. 
 [Signature page
follows] 

  
 34 

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

					
	AUTONATION, INC.
		
	By:	 	        /s/ Michael J. Short

		 	Name:	 	Michael J. Short
		 	Title:	 	Executive Vice President and Chief
		 		 	Financial Officer
	
	THE GUARANTORS NAMED IN SCHEDULE 1 HERETO
		
	By:	 	        /s/ C. Coleman G. Edmunds

		 	Name:	 	C. Coleman G. Edmunds
		 	Title:	 	Authorized Signatory
	
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee
		
	By:	 	        /s/ Stefan Victory

		 	Name:	 	Stefan Victory
		 	Title:	 	Vice President

 EXHIBIT A 
 [GLOBAL NOTE LEGEND] 
 [THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN
THE SUPPLEMENTAL INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON
AS MAYBE REQUIRED PURSUANT TO SECTION 4.06 OF THE BASE INDENTURE, (II) THIS GLOBAL NOTE MAYBE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 4.06 OF THE BASE INDENTURE, (III) THIS GLOBAL NOTE MAYBE DELIVERED TO THE TRUSTEE FOR CANCELLATION
PURSUANT TO SECTION 3.07 OF THE BASE INDENTURE AND (IV) THIS GLOBAL NOTE MAYBE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY. 
 UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY
AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]* 

 

	*	Legend to be included only for Global Notes 

  
 A-1

 [FORM OF FACE OF NOTE] 

 

			
	No.	  	$[             ]
		  	CUSIP No. 05329W AK8

 5.500% Senior Notes due 2020 

AutoNation, Inc., a Delaware corporation, promises to pay to [            ],
or registered assigns, the principal sum of [            ] Dollars ($[            ]) on February 1, 2020. 

Interest Payment Dates: February 1 and August 1, commencing August 1, 2012. 

Record Dates: January 15 and July 15. 
 Additional provisions of this Note are set forth on the other side of this Note. 

IN WITNESS HEREOF, the Company has caused this instrument to be duly executed 
 Dated: 
  

					
	AUTONATION, INC.
		
	By:	 	  

		 	Name:	 	Michael J. Short
		 	Title:	 	Executive Vice President and Chief
		 		 	Financial Officer

  
 A-2

 Dated: 
 TRUSTEE’S CERTIFICATE OF 
 AUTHENTICATION 

WELLS FARGO BANK, NATIONAL ASSOCIATION 
 as
Trustee, certifies that this is one of the Global Notes referred to 
 in the within mentioned Indenture. 

 

			
	By:	 	  

		 	Authorized Signatory

  
 A-3

 [FORM OF REVERSE SIDE OF NOTE] 

5.500 % Senior Notes due 2020 
 Capitalized terms used herein shall have the meanings assigned to them in the Indenture referred to below unless otherwise indicated. 

 

	1.	Interest 

 AutoNation, Inc. (such corporation, and its successors and assigns under the Indenture hereinafter referred to, being herein called the “Company”), promises to pay interest on the principal
amount of this Note at the rate per annum shown above. The Company shall pay interest semi-annually in arrears on February 1 and August 1 of each year, or, if such date is not a Business Day, on the next succeeding Business Day (each, an
“Interest Payment Date”), commencing August 1, 2012.1 Interest on the Notes shall accrue from the most recent Interest Payment Date to which interest has been paid or, if no interest has been paid, from February 1, 2012.2 The Company shall pay interest on overdue principal and premium, if
any, and interest on overdue installments of interest, to the extent lawful, at the interest rate for the Notes. Interest shall be computed on the basis of a 360-day year comprised of twelve 30-day months. 

 

	2.	Method of Payment 

 The
Company shall pay interest on the Notes to the Persons who are registered Holders of Notes at the close of business on the January 15 or July 15 immediately preceding the relevant Interest Payment Date, even if such Notes are canceled after such
record date and on or before such Interest Payment Date, except with respect to defaulted interest. The Notes shall be payable as to principal, premium and interest at the office or agency of the Company maintained for such purpose within or without
the City and State of New York, or, at the option of the Company, payment of interest may be made by check mailed to the Holders at their addresses set forth in the register of Holders, and provided that payment by wire transfer of immediately
available funds shall be required with respect to principal of and interest and premium on all Global Notes and all other Notes the Holders of which shall have provided wire transfer instructions no later than 30 days immediately preceding the
relevant due date for payment (or such other date as the Trustee may accept in its judgment), to the Company or the Paying Agent. Such payment shall be in such coin or currency of the United States of America at the time of payment is legal tender
for payment of public and private debts. 
  

	3.	Paying Agent and Registrar 

Initially, Wells Fargo Bank, National Association, the Trustee under the Indenture, shall act as Paying Agent and Registrar. The Company
may appoint and change any Paying Agent or Registrar without notice to any holder. The Company or any of its Subsidiaries may act as Paying Agent or Registrar. 

 

	1 	 In the case of Notes issued on the Issue Date.  

	2 	 In the case of Notes issued on the Issue Date. 

  
 A-4

	4.	Indenture  

 The Company
issued the Notes under an Indenture dated as of April 14, 2010 (the “Base Indenture”), as supplemented by that Supplemental Indenture dated as of February 1, 2012 (the “Supplemental Indenture” and, together with the
Base Indenture, the “Indenture”), each among the Company, the Guarantors and the Trustee. The terms of the Notes include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as
amended (15 U.S.C. § § 77aaa-77bbbb) as in effect on the date of the Indenture (the “Trust Indenture Act”). Terms defined in the Indenture and not defined herein have the meanings ascribed thereto in the Indenture. The Notes are
subject to all such terms, and Holders are referred to the Indenture and the Trust Indenture Act for a statement of those terms. 
 The Company shall be entitled, subject to its compliance with Section 2.03(e) of the Supplemental Indenture, to create and issue further securities having the same ranking and terms and conditions as
the Notes in all respects, except for the issue date, the public offering price and, in some cases, the first Interest Payment Date. The Notes initially issued on the Issue Date and any additional Notes shall be treated as a single class for all
purposes under the Indenture. 
  

	5.	Optional Redemption 

Except as described below, the Notes will not be redeemable by the Company prior to Maturity. 

At any time prior to February 1, 2015, the Company may redeem up to 35% of the principal amount of the Notes with the net cash
proceeds of one or more Public Equity Offerings of its common stock at a redemption price (expressed as a percentage of principal amount) of 105.5%, plus accrued and unpaid interest to the Redemption Date; provided that: (1) at least 65%
of the aggregate principal amount of Notes originally issued on the Issue Date remains Outstanding after each such redemption; and (2) notice of any such redemption is mailed within 60 days of each such Public Equity Offering (with a copy to
the Trustee). 
 “Public Equity Offering” means an underwritten public offering of common stock (other than redeemable
Capital Stock) of the Company with gross cash proceeds to the Company of at least $50.0 million pursuant to an effective registration statement filed pursuant to the Securities Act (other than a registration statement on Form S-4 (or any successor
form covering substantially the same transactions), Form S-8 (or any successor form covering substantially the same transactions) or otherwise relating to equity securities issuable under any employee benefit plan). 

In addition, the Company shall have the right to redeem the Notes at any time in whole, or from time to time, in part at a redemption
price (the “Redemption Price”) equal to the greater of: (i) 100% of the principal amount of the Notes to be redeemed; and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the
Notes to be redeemed, exclusive of interest accrued to the date of redemption, discounted to the date of redemption on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Yield, plus fifty (50) basis
points, plus accrued interest to the date of redemption. 
  

	6.	Notice of Redemption  

The Notes called for redemption become due on the date fixed for redemption. Notice of redemption (with a copy to the Trustee) shall be
mailed at least 30 days but not more than 60 days before the Redemption Date to each Holder to be redeemed at his or her registered address. 

  
 A-5

	7.	Repurchase at Option of Holder Upon Change of Control Repurchase Event 

 If a Change of Control Repurchase Event occurs, unless the Company has exercised its right to redeem the Notes pursuant to the Indenture, the Company shall be required to make an offer to each Holder of
the Notes to repurchase all or a portion of such Holder’s Notes (the “Change of Control Offer”), at a purchase price equal to 101% of the aggregate principal amount thereof plus accrued interest, if any, to the date of purchase
(subject to the right of holders of record on the relevant record date to receive interest due on an interest payment date that is on or prior to the date fixed for redemption). Within 30 days following the date upon which the Change of Control
Repurchase Event occurred, the Company must send (with a copy to the Trustee), by first class mail, a notice to each Holder, which notice shall govern the terms of the Change of Control Offer and shall be in compliance with the Indenture. Holders
electing to have a Note purchased pursuant to a Change of Control Offer shall be required to surrender the Note, with the form entitled “Option of Holder to Elect Purchase” on the reverse of the Note completed, to the Paying Agent at the
address specified in the notice. 
  

	8.	Denominations; Transfer; Exchange  

 The Notes are in registered form without coupons in minimum denominations of $2,000 principal and integral multiples of $1,000 in excess thereof. A Holder may register, transfer or exchange Notes in
accordance with the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate endorsements or transfer documents and to pay any taxes and fees required by law or permitted by the Indenture. The Registrar need not
register the transfer of or exchange any Notes selected for redemption (except, in the case of a Note to be redeemed in part, the portion of the Note not to be redeemed) or any Notes for a period of 15 days before a selection of Notes to be
redeemed. 
  

	9.	Persons Deemed Owners  

The registered Holder of this Note may be treated as the owner of it for all purposes. 

 

	10.	Discharge and Defeasance  

Subject to certain conditions set forth in the Indenture, the Company at any time shall be entitled to terminate some or all of its and
the Guarantors’ obligations under the Notes and the Indenture if the Company deposits with the Trustee money or U.S. Government Obligations for the payment of principal, premium, if any, and interest on the Notes to redemption or maturity, as
the case may be. 
  

	11.	Amendment, Waiver 

 The
Indenture, the Subsidiary Guarantees or the Notes may be amended or supplemented as provided in the Indenture. 
  

	12.	Defaults and Remedies  

If any Event of Default (as defined in the Indenture) occurs and is continuing, the Trustee or the Holders of at least 25% in principal
amount of the then Outstanding Notes may declare all the Notes to be due and payable by notice in writing to the Company and the Trustee (if declared by the Holders) specifying the respective Event of Default and that it is a “notice of
acceleration,” and the same shall 

  
 A-6

 
become immediately due and payable. Holders may not enforce the Indenture or the Notes except as provided in the Indenture and the Trust Indenture Act. Subject to certain limitations, Holders of
a majority in principal amount of the then Outstanding Notes may direct the Trustee in its exercise of any trust or power. However, the Trustee may refuse to follow any direction that conflicts with law or the Indenture or that the Trustee
determines may be unduly prejudicial to the rights of other Holders of Notes or that may involve the Trustee in personal liability. The Company is required to deliver to the Trustee annually a statement regarding compliance with the Indenture, and
the Company is required upon becoming aware of any Default or Event of Default, to deliver to the Trustee a statement specifying such Default or Event of Default. 
  

	13.	Guarantee  

 The full and
punctual payment by the Company of the principal of, premium, if any, and interest on the Notes is fully and unconditionally guaranteed on a joint and several senior unsecured basis by each of the Guarantors. Reference is hereby made to the
Indenture for a statement of the respective rights, limitations of rights, duties and obligations thereunder of the Guarantors, the Trustee and the Holders. 
  

	14.	Trustee Dealings with the Company 

 Subject to certain limitations imposed by the Trust Indenture Act, the Trustee under the Indenture, in its individual or any other capacity, may become the owner or pledgee of Notes and may otherwise deal
with and collect obligations owed to it by the Company or its Affiliates and may make loans to, accept deposits from, and perform services for the Company or its Affiliates, and may otherwise deal with the Company or its Affiliates, as if it were
not the Trustee. 
  

	15.	No Recourse Against Others  

 Any past, present, or future director, officer, employee, incorporator or stockholder, as such, of the Company, any Guarantors or the Trustee shall not have any liability for any obligations of the
Company or any Guarantor under the Notes, the Indenture, the Subsidiary Guarantees or for any claim based on, in respect of or by reason of such obligations or their creation. By accepting a Note, each Holder waives and releases all such liability.
The waiver and release are part of the consideration for the issue of the Notes. 
  

	16.	Authentication 

 This Note
shall not be valid until an authorized signatory of the Trustee (or an authenticating agent) signs the certificate of authentication on the other side of this Note. 
  

	17.	Abbreviations  

 Customary
abbreviations may be used in the name of a Holder or an assignee, such as TEN COM (=tenants in common), TEN ENT (=tenants by the entireties), JT TEN (=joint tenants with rights of survivorship and not as tenants in common), CUST (=custodian), and
U/G/M/A (=Uniform Gift to Minors Act). 

  
 A-7

	18.	CUSIP Numbers  

 Pursuant
to a recommendation promulgated by the Committee on Uniform Security Identification Procedures the Company has caused CUSIP numbers to be printed on the Notes and has directed the Trustee to use CUSIP numbers in notices of redemption as a
convenience to Holders. No representation is made as to the accuracy of such numbers either as printed on the Notes or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon.

  

	19.	Governing Law 

 THE LAWS
OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS NOTE. 
  

 
 The Company
shall furnish to any Holder upon written request and without charge to the Holder a copy of the Indenture. Requests may be made to: 

AutoNation, Inc. 
 200 SW
1st Ave 

Fort Lauderdale, FL 33301 
 Attention: Legal
Department 
 Facsimile No.: 954-769-6340 

  
 A-8

 ASSIGNMENT FORM 
 To assign this Note, fill in the form below: 
 (I) or (we) assign and transfer this Note to

  
  

 
 (Print or type assignee’s
name, address and zip code) 
  
  

 
 (Insert assignee’s soc. sec.
or tax I.D. No.) 
 and irrevocably, appoint
                     agent to transfer this Note on the books of the Company. The agent may substitute another to act for him. 

 
  
  

 

									
	Date:	 	  
	 		 	Your Signature:	 	  

				
		 		 		 	(Sign exactly as your name appears on the other side of this Note.)
				
		 		 		 	  

		 		 		 	Signature	 	

  

	
	Signature Guarantee:
	
	  
	Signature must be guaranteed

 (Signatures must be guaranteed by a participant in a recognized Signature Medallion Program or other
signature guarantor program reasonably acceptable to the Trustee.) 

  
 A-9

 OPTION OF HOLDER TO ELECT PURCHASE 

If you want to elect to have this Note purchased by the Company pursuant to Section 4.01 of the Supplemental Indenture check the
box:   ̈ 
 If you want to elect to have only part of this Note
purchased by the Company pursuant to Section 4.01 of the Supplemental Indenture, state the amount you elect to have purchased: $             

 

									
	Dated:	 	  
	 		 	Your Signature:	 	  

											
		 		 		 		 		 	(Sign exactly as your name appears on the other side of this Note.)
	Signature Guarantee:	 	  
	 		 		 		 	
		 	(Signature must be guaranteed)	 		 		 		 	

 (Signatures must be guaranteed by a participant in a recognized Signature Medallion Program or other
signature guarantor program reasonably acceptable to the Trustee.) 

  
 A-10

 [TO BE ATTACHED TO GLOBAL NOTES] 

SCHEDULE OF EXCHANGES OR INTERESTS IN GLOBAL NOTE 
 The following increases or decreases in this Global Note have been made: 
  

									
	 Date of
Exchange
	 	 Amount of

decrease
 in
Principal
 amount
 of this Global Note
	 	 Amount of

increase
 in
Principal
 amount
 of this Global Note
	 	 Principal amount

of
 this Global
Note
 following such
 decrease or
 increase
	 	 Signature of

authorized

signatory
 of
Trustee or
 Custodian

		 		 		 		 	

  
 A-11

 EXHIBIT B 
 FORM OF GUARANTEE 
 For value received, each Guarantor (which term includes
any successor Person under the Indenture), jointly and severally, unconditionally guarantees, to the extent set forth in and subject to the provisions in the Indenture, dated as of April 14, 2010 (the “Base Indenture”), as
supplemented by that Supplemental Indenture dated as of February 1, 2012 (the “Supplemental Indenture” and together with the Base Indenture, the “Indenture”), among AutoNation, Inc., as issuer (the “Company”), the
Guarantors from time to time party thereto and Wells Fargo Bank, National Association, as trustee (the “Trustee”), (a) the full and punctual payment of the principal of and interest on the Notes when due, whether at maturity, by
acceleration, redemption or otherwise, and all other monetary obligations of the Company under the Indenture and the Notes and (b) the full and punctual performance within applicable grace periods of all other obligations of the Company under
the Indenture and the Notes (all the foregoing being hereinafter collectively called the “Guaranteed Obligations”). Each Guarantor further agrees that the Guaranteed Obligations may be extended or renewed, in whole or in part, without
notice or further assent from such Guarantor and that such Guarantor shall remain bound hereunder notwithstanding any extension or renewal of any Guaranteed Obligation. 
 The obligations of the Guarantors to the Holders of Notes and to the Trustee pursuant to the Guarantee and the Indenture are expressly set forth in Article IX of the Supplemental Indenture and reference
is hereby made such provisions for the precise terms of the Guarantee. Each Holder, by accepting the same agrees to and shall be bound by such provisions. This Guarantee is subject to release as and to the extent set forth in Sections 7.02, 7.08 and
9.04 of the Supplemental Indenture. The terms of the Indenture, including, without limitation, Article IX of the Supplemental Indenture, are incorporated herein by reference. The laws of the State of New York shall govern and be used to construe
this Guarantee. Capitalized terms used herein and not defined are used herein as so defined in the Indenture. 
  

			
	[GUARANTOR]
		
	By:	 	  

		 	Name:
		 	Title:

  
 B-1

 EXHIBIT C 
 FORM OF SUPPLEMENTAL INDENTURE 
 SUPPLEMENTAL INDENTURE (this
“Supplemental Indenture”), dated as of                     , among AutoNation, Inc., a Delaware corporation (the “Company”),
                    (the “Guaranteeing Subsidiary”), a subsidiary of AutoNation, Inc. (or its permitted successor) and Wells Fargo Bank,
National Association, as trustee under the indenture referred to below (the “Trustee”). 
 W I T N E S S E T H

 WHEREAS, the Company and the Guarantors named therein have heretofore executed and delivered to the Trustee the Indenture,
dated as of April 14, 2010 (the “Base Indenture”), as supplemented by that Supplemental Indenture dated as of February 1, 2012 (the “Supplemental Indenture” and, together with the Base Indenture, the
“Indenture”), providing for the issuance of 5.500% Senior Notes due 2020 (the “Notes”); 
 WHEREAS, the
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 the Indenture on the terms and conditions set forth herein (the “Guarantee”); and 
 WHEREAS, pursuant to
Section 8.01 of the Supplemental 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 the 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 the Indenture, the Notes or the obligations of the Company hereunder or thereunder, that: 

  

	 	(i)	the principal of and interest on the Notes shall 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 shall be promptly paid by the Company in full or performed by the
Company, all in accordance with the terms hereof and thereof; and 

  
 C-1

	 	(ii)	in case of any extension of time of payment or renewal of any Notes or any of such other obligations, that same shall 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. Each Guarantor agrees that this is a guarantee of payment
and not a guarantee of collection. 

  

	 	(b)	The obligations hereunder shall be unconditional, irrespective of the validity, regularity or enforceability of the Notes or the 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 the Indenture. Each Guarantor also
expressly waives, without any requirement of any notice to or further assent by such Guarantor, to the fullest extent permitted by applicable law, the benefit of all principles or provisions of applicable law which are or might be in conflict with
the terms hereof, including, without limitation, Section 10-7-23 and Section 10-7-24 of the Official Code of Georgia Annotated. 

  

	 	(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

  
 C-2

	 	
hereby may be accelerated as provided in Article VII of the Base 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 VII of the Base 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. Guaranteeing Subsidiary May Consolidate, Etc. on Certain Terms. Each
Guaranteeing Subsidiary agrees that, unless its Guarantee is being concurrently released in conformity with Section 9.04 of the Supplemental Indenture, it may not consolidate with or merge with or into any Person other than the Company or any
other Guarantor unless (a) the Guaranteeing Subsidiary will be the surviving corporation or the Person formed by or surviving any such consolidation or merger (if other than the Guarantor) is a corporation organized and existing under the laws
of the United States of America, any State thereof or the District of Columbia and such Person assumes by supplemental indenture all of the obligations of the Guaranteeing Subsidiary on its Guarantee and (b) immediately after giving effect to
such transaction, no Default or Event of Default shall have occurred and be continuing. 
 4. Execution and Delivery.
Each 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. 
 5. Releases. The Guarantee of the Guaranteeing Subsidiary shall be released in accordance with the provisions set forth in the Indenture, including, without limitation, Section 9.04 of the
Supplemental Indenture. The Trustee, at the expense and written direction of the Company, will execute proper instruments acknowledging the termination of such Subsidiary Guarantee as reasonably required by the representative of such Guarantor. 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 the Indenture as provided in Article IX of the
Supplemental Indenture. 
 6. No Recourse Against Others. No director, officer, employee, incorporator, stockholder or
agent of the Guaranteeing Subsidiary, as such, shall have any liability for any obligations of the Company or any Guaranteeing Subsidiary under the Notes, the 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. 
 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. Waiver of Jury Trial. The
Company, the Guaranteeing Subsidiary and the Trustee each hereby irrevocable waives, to the fullest extent permitted by applicable law, any and all right it may have to a trial by jury in respect of any suit, action, or other proceeding arising out
of or relating to this Supplemental Indenture, the Guarantee of the Guaranteeing Subsidiary or the transactions contemplated hereby. 

  
 C-3

 9. 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. The exchange of copies of this Supplemental Indenture and of signature pages by facsimile or PDF transmission shall constitute effective
execution and delivery of this Supplemental Indenture as to the parties hereto and may be used in lieu of the original Supplemental Indenture for all purposes. Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be
their original signatures for all purposes. 
 10. Effect of Headings. The Section headings herein are for convenience
only and shall not affect the construction hereof. 
 11. 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 Subsidiary and the Company.

  
 C-4

 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. 
 Dated: 

 

			
	[GUARANTEEING SUBSIDIARY]
		
	By:	 	  

		 	Name:
		 	Title:
	
	AUTONATION, INC.
		
	By:	 	  

		 	Name:
		 	Title:
	
	WELLS FARGO BANK, National Association, as Trustee
		
	By:	 	  

		 	Name:
		 	Title

  
 C-5

 EXHIBIT D 
 FORM OF AFFIDAVIT OF OUT-OF-STATE EXECUTION 
 STATE OF NEW YORK 

COUNTY OF NEW YORK 
 I hereby
certify that on this      day of     ,             , before me, an officer duly authorized in the County and State aforesaid to take acknowledgments,
personally appeared [Name], as [Title] of AutoNation, Inc., a Delaware corporation (the “Company”), and as [Title] or authorized signatory of each of the subsidiaries of the Company party to the hereinafter defined Indenture (the
“Guarantors”), who is personally known to me or who has produced                      as identification, who did/did not take an oath, who
is known to me to be the person who executed the Supplemental Indenture, dated as of February 1, 2012 (the “Supplemental Indenture”), by and among the Company, the Guarantors and Wells Fargo Bank, National Association., as trustee
(the “Trustee”), to which this Affidavit is attached on behalf of the Company and on behalf of each of the Guarantors in New York, New York, and who acknowledged before me that be executed the same. 

 

			
	  

	Notary Public	 	
	
	  

	Print Name	 	
		
	My Commission Expires:	 	  

  
 D-1

 EXHIBIT E 
 FORM OF AFFIDAVIT OF OUT OF STATE RECEIPT AND ACCEPTANCE 
 STATE OF NEW YORK) 

COUNTY OF NEW YORK) 
 Before me
this day personally appeared                      (“Affiant”), who being personally sworn, deposes and says that: 

1. Affiant is a [Title] of Wells Fargo Bank, National Association, as trustee (the “Trustee”) under the Indenture, dated as of
April 14, 2010 (the “Base Indenture”), as supplemented by that Supplemental Indenture, dated as of February 1, 2012 (the “Supplemental Indenture” and, together with the Base Indenture, the “Indenture”), by and
among AutoNation, Inc., a Delaware corporation (the “Company”), the subsidiaries of the Company party thereto (the “Guarantors”) and the Trustee. 
 2. The Indenture was executed in the City of New York, and the State of New York by [Name] as [Title] of the Company and as [Title] or authorized signatory of each of the Guarantors. 

3. On the date hereof, Affiant received delivery of and accepted the Indenture on behalf of the Trustee and on behalf of the Initial
Purchasers within the City of New York, and the State of New York. 
 FURTHER AFFIANT SAYETH NOT. 

Dated:                  , 20     

 

			
	  

	Print Name:	 	  

  
 E-1

 THE FOREGOING instrument was acknowledged before me this      day of
            ,         , by                     ,
who is personally known to me or who has produced                      as identification and who did/did not take an oath. 

 

			
	  

	Notary Public	 	
	
	  

	Print Name	 	
		
	My Commission Expires:	 	  

 This should be included only if the Note is issued in global form. 

  
 E-2

 Schedule I  
 Guarantors 
 7 Rod Real Estate North, a Limited Liability Company 

7 Rod Real Estate South, a Limited Liability Company 
 Abraham Chevrolet-Miami, Inc. 
 Abraham Chevrolet-Tampa, Inc. 

ACER Fiduciary, Inc. 
 Al Maroone Ford, LLC

 Albert Berry Motors, Inc. 
 Allison
Bavarian 
 Allison Bavarian Holding, LLC 
 All-State Rent A Car, Inc. 
 American Way Motors, Inc. 

AN Cadillac of WPB, LLC 
 AN Central Region
Management, LLC 
 AN Chevrolet - Arrowhead, Inc. 
 AN Tucson Imports, LLC 
 AN CJ Valencia, Inc. 

AN Collision Center of Addison, Inc. 
 AN
Collision Center of Las Vegas, Inc. 
 AN Collision Center of North Houston, Inc. 
 AN Collision Center of Tempe, Inc. 
 AN Corporate Management Payroll Corp. 

AN Corpus Christi Chevrolet, LP 
 AN Corpus
Christi GP, LLC 
 AN Corpus Christi Imports Adv. GP, LLC 
 AN Corpus Christi Imports Adv., LP 
 AN Corpus Christi Imports GP, LLC 

AN Corpus Christi Imports II GP, LLC 
 AN Corpus
Christi Imports II, LP 
 AN Corpus Christi Imports, LP 
 AN Corpus Christi Motors, Inc. 
 AN Corpus Christi T. Imports GP, LLC 

AN Corpus Christi T. Imports, LP 
 AN County Line
Ford, Inc. 
 AN Dealership Holding Corp. 
 AN F. Imports of Atlanta, LLC 
 AN F. Imports of Hawthorne Holding, LLC 

AN F. Imports of Hawthorne, Inc. 
 AN F. Imports
of North Denver, Inc. 
 AN F. Imports of North Phoenix, Inc. 
 AN F. Imports of Roseville Holding, LLC 
 AN F. Imports of Roseville, Inc. 

AN F. Imports of Seattle, Inc. 
 AN F. Imports of
Sterling, LLC 
 AN Florida Region Management, LLC 

 AN Fort Myers Imports, LLC 
 AN Fremont Luxury Imports, Inc. 
 AN H. Imports of Atlanta, LLC 

AN Imports of Ft. Lauderdale, Inc. 
 AN Imports
of Seattle, Inc. 
 AN Imports of Spokane, Inc. 
 AN Imports of Stevens Creek, Inc. 
 AN Imports of Stevens Creek Holding, LLC 

AN Imports on Weston Road, Inc. 
 AN Luxury
Imports GP, LLC 
 AN Luxury Imports Holding, LLC 
 AN Luxury Imports of Coconut Creek, Inc. 
 AN Luxury Imports of Palm Beach, Inc. 

AN Luxury Imports of Pembroke Pines, Inc. 
 AN
Luxury Imports of Phoenix, Inc. 
 AN Luxury Imports of San Diego, Inc. 
 AN Luxury Imports of Sanford, Inc. 
 AN Luxury Imports of Sarasota, Inc. 

AN Luxury Imports of Spokane, Inc. 
 AN Luxury
Imports of Tucson, Inc. 
 AN Luxury Imports, Ltd. 
 AN Motors of Brooksville, Inc. 
 AN Motors of Dallas, Inc. 

AN Motors of Delray Beach, Inc. 
 AN Motors of
Englewood, Inc. 
 AN Motors of Memphis, Inc. 
 AN Motors of Scottsdale, LLC 
 AN Pontiac GMC Houston North GP, LLC 

AN Pontiac GMC Houston North, LP 
 AN Seattle
Motors, Inc. 
 AN Subaru Motors, Inc. 

AN T. Imports of Atlanta, LLC 
 AN Texas Region
Management, Ltd. 
 AN West Central Region Management, LLC 
 AN Western Region Management, LLC 
 AN/CF Acquisition Corp. 

AN/GMF, Inc. 
 AN/KPBG Motors, Inc. 

AN/MF Acquisition Corp. 
 AN/MNI Acquisition
Corp. 
 AN/PF Acquisition Corp. 

Anderson Chevrolet 
 Anderson Chevrolet Los
Gatos, Inc. 
 Anderson Cupertino, Inc. 

Appleway Chevrolet, Inc. 
 Atrium Restaurants,
Inc. 
 Auto Ad Agency, Inc. 
 Auto Car
Holding, LLC 
 Auto Car, Inc. 
 Auto
Holding, LLC 

 Auto Mission Holding, LLC 
 Auto Mission Ltd. 
 Auto West, Inc. 
 Autohaus Holdings, Inc. 
 AutoNation Benefits Company, Inc. 

AutoNation Corporate Management, LLC 
 AutoNation
Dodge of Pembroke Pines, Inc. 
 AutoNation Enterprises Incorporated 
 AutoNation Financial Services, LLC 
 AutoNation Fort Worth Motors, Ltd. 

AutoNation GM GP, LLC 
 AutoNation Holding Corp.

 AutoNation Imports of Katy GP, LLC 

AutoNation Imports of Katy, L.P. 
 AutoNation
Imports of Lithia Springs, Inc. 
 AutoNation Imports of Longwood, Inc. 
 AutoNation Imports of Palm Beach, Inc. 
 AutoNation Imports of Winter Park, Inc. 

AutoNation Motors Holding Corp. 
 AutoNation
Motors of Lithia Springs, Inc. 
 AutoNation North Texas Management GP, LLC 
 AutoNation Northwest Management, LLC 
 AutoNation Orlando Venture Holdings, Inc. 

AutoNation Realty Corporation 
 AutoNation USA of
Perrine, Inc. 
 AutoNation V. Imports of Delray Beach, LLC 
 AutoNationDirect.com, Inc. 
 Bankston Auto, Inc. 

Bankston Chrysler Jeep of Frisco, L.P. 
 Bankston
CJ GP, LLC 
 Bankston Ford of Frisco, Ltd. Co. 
 Bankston Nissan in Irving, Inc. 
 Bankston Nissan Lewisville GP, LLC 

Bankston Nissan Lewisville, Ltd. 
 Bargain
Rent-A-Car 
 Batfish, LLC 
 BBCSS, Inc.

 Beach City Chevrolet Company, Inc. 

Beach City Holding, LLC 
 Beacon Motors, Inc.

 Bell Dodge, L.L.C. 
 Bengal Motor
Company, Ltd. 
 Bengal Motors, Inc. 

Bill Ayares Chevrolet, LLC 
 Bledsoe Dodge, LLC

 Bob Townsend Ford, Inc. 
 Body Shop
Holding Corp. 
 BOSC Automotive Realty, Inc. 
 Brown & Brown Chevrolet - Superstition Springs, LLC 
 Brown & Brown Chevrolet,
Inc. 

 Brown & Brown Nissan Mesa, LLC 
 Brown & Brown Nissan, Inc. 
 Buick Mart Limited Partnership 

Bull Motors, LLC 
 C. Garrett, Inc. 

Carlisle Motors, LLC 
 Carwell Holding, LLC

 Carwell, LLC 
 Cerritos Body Works
Holding, LLC 
 Cerritos Body Works, Inc. 
 Champion Chevrolet Holding, LLC 
 Champion Chevrolet, LLC 

Champion Ford, Inc. 
 Charlie Hillard, Inc.

 Charlie Thomas Chevrolet GP, LLC 

Charlie Thomas Chevrolet, Ltd. 
 Charlie Thomas
Chrysler-Plymouth, Inc. 
 Charlie Thomas’ Courtesy Ford, Ltd. 
 Charlie Thomas’ Courtesy GP, LLC 
 Charlie Thomas Courtesy Leasing, Inc. 

Charlie Thomas F. GP, LLC 
 Charlie Thomas Ford,
Ltd. 
 Chesrown Auto, LLC 
 Chesrown
Chevrolet, LLC 
 Chesrown Collision Center, Inc. 
 Chesrown Ford, Inc. 
 Chevrolet World, Inc. 

Chuck Clancy Ford of Marietta, LLC 
 CJ Valencia
Holding, LLC 
 Coastal Cadillac, Inc. 

Consumer Car Care Corporation 
 Contemporary
Cars, Inc. 
 Cook-Whitehead Ford, Inc. 

Corporate Properties Holding, Inc. 
 Costa Mesa
Cars Holding, LLC 
 Costa Mesa Cars, Inc. 
 Courtesy Auto Group, Inc. 
 Courtesy Broadway, LLC 

Covington Pike Motors, Inc. 
 CT Intercontinental
GP, LLC 
 CT Intercontinental, Ltd. 

CT Motors, Inc. 
 D/L Motor Company 

Deal Dodge of Des Plaines, Inc. 
 Dealership
Properties, Inc. 
 Dealership Realty Corporation 
 Desert Buick-GMC Trucks, L.L.C. 
 Desert Chrysler-Plymouth, Inc. 

Desert Dodge, Inc. 
 Desert GMC, L.L.C.

 Dobbs Ford of Memphis, Inc. 
 Dobbs Ford, Inc. 
 Dobbs Mobile Bay, Inc. 
 Dobbs Motors of Arizona, Inc. 
 Dodge of Bellevue, Inc. 

Don Mealey Chevrolet, Inc. 
 Don Mealey Imports,
Inc. 
 Don-A-Vee Jeep Eagle, Inc. 

Driver’s Mart Worldwide, Inc. 
 Eastgate
Ford, Inc. 
 Ed Mullinax Ford, LLC 

Edgren Motor Company, Inc. 
 Edgren Motor
Holding, LLC 
 El Monte Imports Holding, LLC 
 El Monte Imports, Inc. 
 El Monte Motors Holding, LLC 

El Monte Motors, Inc. 
 Elmhurst Auto Mall, Inc.

 Emich Chrysler Plymouth, LLC 
 Emich
Dodge, LLC 
 Emich Oldsmobile, LLC 

Emich Subaru West, LLC 
 Empire Services Agency,
Inc. 
 Financial Services GP, LLC 

Financial Services, Ltd. 
 First Team Automotive
Corp. 
 First Team Ford of Manatee, Ltd. 
 First Team Ford, Ltd 
 First Team Imports, Ltd. 

First Team Jeep Eagle, Chrysler-Plymouth, Ltd. 

First Team Management, Inc. 
 First Team Premier,
Ltd. 
 Fit Kit Holding, LLC 
 Fit Kit,
Inc. 
 Florida Auto Corp. 
 Ford of
Garden Grove Limited Partnership 
 Ford of Kirkland, Inc. 
 Fox Chevrolet, LLC 
 Fox Imports, LLC 
 Fox Motors, LLC 
 Fred Oakley Motors, Inc. 
 Fremont Luxury Imports Holding, LLC 
 Ft. Lauderdale Nissan, Inc. 

G.B. Import Sales & Service Holding, LLC 

G.B. Import Sales & Service, LLC 
 Gene
Evans Ford, LLC 
 George Sutherlin Nissan, LLC 
 Government Boulevard Motors, Inc. 
 Gulf Management, Inc. 

Hayward Dodge, Inc. 

 Hillard Auto Group, Inc. 
 Hollywood Imports Limited, Inc. 
 Hollywood Kia, Inc. 

Horizon Chevrolet, Inc. 
 House of Imports
Holding, LLC 
 House of Imports, Inc. 

Houston Auto M. Imports Greenway, Ltd. 
 Houston
Auto M. Imports North, Ltd. 
 Houston Imports Greenway GP, LLC 
 Houston Imports North GP, LLC 
 Irvine Imports Holding, LLC 

Irvine Imports, Inc. 
 Irvine Toyota/Nissan/Volvo
Limited Partnership 
 Jemautco, Inc. 

Jerry Gleason Chevrolet, Inc. 
 Jerry Gleason
Dodge, Inc. 
 Jim Quinlan Chevrolet Co. 

Joe MacPherson Ford 
 Joe MacPherson Imports No.
I 
 Joe MacPherson Infiniti 
 Joe
MacPherson Infiniti Holding, LLC 
 Joe MacPherson Oldsmobile 
 John M. Lance Ford, LLC 
 J-R Advertising Company 

J-R Motors Company North 
 J-R Motors Company
South 
 JRJ Investments, Inc. 
 J-R-M
Motors Company Northwest, LLC 
 Kenyon Dodge, Inc. 
 King’s Crown Ford, Inc. 
 L.P. Evans Motors WPB, Inc. 

L.P. Evans Motors, Inc. 
 Lance Children, Inc.

 Leesburg Imports, LLC 
 Leesburg
Motors, LLC 
 Les Marks Chevrolet, Inc. 

Lew Webb’s Ford, Inc. 
 Lew Webb’s
Irvine Nissan Holding, LLC 
 Lew Webb’s Irvine Nissan, Inc. 
 Lewisville Imports GP, LLC 
 Lewisville Imports, Ltd. 

Lexus of Cerritos Limited Partnership 
 Lot 4
Real Estate Holdings, LLC 
 MacHoward Leasing 
 MacHoward Leasing Holding, LLC 
 MacPherson Enterprises, Inc. 

Magic Acquisition Corp. 
 Magic Acquisition
Holding, LLC 
 Marks Family Dealerships, Inc. 
 Marks Transport, Inc. 

 Maroone Chevrolet Ft. Lauderdale, Inc. 
 Maroone Chevrolet, LLC 
 Maroone Dodge, LLC 

Maroone Ford, LLC 
 Maroone Management Services,
Inc 
 MC/RII, LLC 
 Mealey Holdings,
Inc. 
 Mechanical Warranty Protection, Inc. 
 Metro Chrysler Jeep, Inc. 
 Midway Chevrolet, Inc. 

Mike Hall Chevrolet, Inc. 
 Mike Shad Chrysler
Plymouth Jeep Eagle, Inc. 
 Mike Shad Ford, Inc. 
 Miller-Sutherlin Automotive, LLC 
 Mission Blvd. Motors, Inc. 

Mr. Wheels Holding, LLC 
 Mr. Wheels,
Inc. 
 Mullinax East, LLC 
 Mullinax
Ford North Canton, Inc. 
 Mullinax Ford South, Inc. 
 Mullinax Lincoln Mercury, Inc. 
 Mullinax Used Cars, Inc. 

Naperville Imports, Inc. 
 Newport Beach Cars
Holding, LLC 
 Newport Beach Cars, LLC 

Nichols Ford, Ltd. 
 Nichols GP, LLC 

Nissan of Brandon, Inc. 
 Northpoint Chevrolet,
LLC 
 Northpoint Ford, Inc. 
 Northwest
Financial Group, Inc. 
 Ontario Dodge, Inc. 
 Oxnard Venture Holdings, Inc. 
 Payton-Wright Ford Sales, Inc. 

Peyton Cramer Automotive 
 Peyton Cramer
Automotive Holding, LLC 
 Peyton Cramer F. Holding, LLC 
 Peyton Cramer Ford 
 Peyton Cramer Infiniti 

Peyton Cramer Infiniti Holding, LLC 
 Peyton
Cramer Jaguar 
 Peyton Cramer Lincoln-Mercury 
 Peyton Cramer LM Holding, LLC 
 Pierce Automotive Corporation 

Pierce, LLC 
 Pitre Chrysler-Plymouth-Jeep of
Scottsdale, Inc. 
 Plains Chevrolet GP, LLC 
 Plains Chevrolet, Ltd. 
 PMWQ, Inc. 
 PMWQ, Ltd. 

 Port City Imports, Inc. 
 Prime Auto Resources, Inc. 
 Quality Nissan GP, LLC 

Quality Nissan, Ltd. 
 Quinlan Motors, Inc.

 R. Coop Limited 
 R.L. Buscher II,
Inc. 
 R.L. Buscher III, Inc. 
 Real
Estate Holdings, Inc. 
 Republic DM Property Acquisition Corp. 
 Republic Resources Company 
 Republic Risk Management Services, Inc. 

Resources Aviation, Inc. 
 RI Merger Corp.

 RI/BB Acquisition Corp. 
 RI/BBNM
Acquisition Corp 
 RI/BRC Real Estate Corp. 
 RI/DM Acquisition Corp. 
 RI/Hollywood Nissan Acquisition Corp. 

RI/LLC Acquisition Corp. 
 RI/LLC-2 Acquisition
Corp. 
 RI/RMC Acquisition GP, LLC 

RI/RMC Acquisition, Ltd. 
 RI/RMP Acquisition
Corp. 
 RI/RMT Acquisition GP, LLC 

RI/RMT Acquisition, Ltd. 
 RI/WFI Acquisition
Corporation 
 RKR Motors, Inc. 

Roseville Motor Corporation 
 Roseville Motor
Holding, LLC 
 Sahara Imports, Inc. 

Sahara Nissan, Inc. 
 Saul Chevrolet Holding, LLC

 SCM Realty, Inc. 
 Shamrock F.
Holding, LLC 
 Shamrock Ford, Inc. 

Six Jays LLC 
 SMI Motors Holding, LLC

 SMI Motors, Inc. 
 Smythe European
Holding, LLC 
 Smythe European, Inc. 

Southwest Dodge, LLC 
 Spitfire Properties, Inc.

 Star Motors, LLC 
 Steakley Chevrolet
GP, LLC 
 Steakley Chevrolet, Ltd. 

Steeplechase Motor Company 
 Steve Moore
Chevrolet Delray, LLC 
 Steve Moore Chevrolet, LLC 
 Steve Moore’s Buy-Right Auto Center, Inc. 

 Stevens Creek Holding, LLC 
 Stevens Creek Motors, Inc. 
 Sunrise Nissan of Jacksonville, Inc. 

Sunrise Nissan of Orange Park, Inc. 
 Sunset
Pontiac-GMC Truck South, Inc. 
 Sunset Pontiac-GMC, Inc. 
 Superior Nissan, Inc. 
 Sutherlin Chrysler-Plymouth Jeep-Eagle, LLC 

Sutherlin H. Imports, LLC 
 Sutherlin Imports,
LLC 
 Sutherlin Nissan, LLC 
 Sutherlin
Town Center, Inc. 
 Tartan Advertising, Inc. 
 Tasha Incorporated 
 Taylor Jeep Eagle, LLC 

Terry York Motor Cars Holding, LLC 
 Terry York
Motor Cars, Ltd. 
 Texan Ford Sales, Ltd. 
 Texan Ford, Inc. 
 Texan Sales GP, LLC 
 Texas Management Companies LP, LLC 
 The Consulting Source, Inc. 

The Pierce Corporation II, Inc. 
 Tinley Park A.
Imports, Inc. 
 Tinley Park J. Imports, Inc. 
 Tinley Park V. Imports, Inc. 
 Torrance Nissan Holding, LLC 

Torrance Nissan, LLC 
 Tousley Ford, Inc.

 Toyota Cerritos Limited Partnership 

Triangle Corporation 
 T-West Sales &
Service, Inc. 
 Valencia B. Imports Holding, LLC 
 Valencia B. Imports, Inc. 
 Valencia Dodge 
 Valencia Dodge Holding, LLC 
 Valencia H. Imports Holding, LLC 

Valencia H. Imports, Inc. 
 Valley Chevrolet, LLC

 Vanderbeek Motors Holding, LLC 

Vanderbeek Motors, Inc. 
 Vanderbeek Olds/GMC
Truck, Inc. 
 Vanderbeek Truck Holding, LLC 
 Village Motors, LLC 
 Vince Wiese Chevrolet, Inc. 

Vince Wiese Holding, LLC 
 W.O. Bankston Nissan,
Inc. 
 Wallace Dodge, LLC 
 Wallace
Ford, LLC 
 Wallace Lincoln-Mercury, LLC 

 Wallace Nissan, LLC 
 Webb Automotive Group, Inc. 
 West Colton Cars, Inc. 

West Side Motors, Inc. 
 Westgate Chevrolet GP,
LLC 
 Westgate Chevrolet, Ltd. 

Westmont A. Imports, Inc. 
 Westmont B. Imports,
Inc. 
 Westmont M. Imports, Inc. 

Woody Capital Investment Company II 
 Woody
Capital Investment Company III 
 Working Man’s Credit Plan, Inc.EX-10.1

 Exhibit 10.1 
 PROPERTY MANAGEMENT AGREEMENT 
 THIS PROPERTY MANAGEMENT AGREEMENT
(this “Agreement”) is made and entered into as of January 26, 2012 (the “Effective Date”), by and between SIR WINDSOR ON THE RIVER, LLC, a Delaware limited liability company
(“Owner”), and STEADFAST MANAGEMENT COMPANY, INC., a California corporation (“Manager”). 
 ARTICLE 1 
 DEFINITIONS 

Section 1.1 Definitions. The following terms shall have the following meanings when used in this Agreement:

 “Agreement” has the meaning given in the introductory paragraph. 

“Annual Business Plan” has the meaning given in Section 3.11(a). 

“Capital Budget” has the meaning given in Section 3.11(a). 

“Compliance Fee” has the meaning given in Section 4.1. 

“Depository” means such bank or federally-insured or other financial institution as Owner shall designate in
writing. 
 “Effective Date” has the meaning given in the introductory paragraph. 

“Fiscal Year” means the calendar year beginning January 1 and ending December 31 of each calendar year,
or such other fiscal year as determined by Owner and of which Manager is notified in writing; provided that the first Fiscal Year of this Agreement shall be the period beginning on the Effective Date and ending on December 31 of the calendar
year in which the Effective Date occurs. 
 “Governmental Requirements” has the meaning given in
Section 3.14. 
 “Gross Collections” means all amounts actually collected as rents or other charges
for use and occupancy of apartment units and from users of garage spaces (if any), leases of other non-dwelling facilities in the Property and concessionaires (if any) in respect of the Property, including furniture rental, parking fees, forfeited
security deposits, application fees, late charges, income from coin-operated machines, proceeds from rental interruption insurance, and other miscellaneous income collected at the Property; excluding, however, all other receipts, including but not
limited to, income derived from interest on investments or otherwise, proceeds of claims on account of insurance policies (other than rental interruptions insurance), abatement of taxes, franchise fees, and awards arising out of eminent domain
proceedings, discounts and dividends on insurance policies. 
 “Hazardous Materials” means any material
defined as a hazardous substance under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, the Resource Conservation and Recovery Act, or any state or local statute regulating the storage, release,

 
transportation or other disposition of hazardous material, as any of those laws may have been amended to the date hereof, and the administrative regulations promulgated thereunder prior to the
date hereof, and, whether or not defined as hazardous substances under the foregoing Governmental Requirements, petroleum products (other than petroleum products used in accordance with Governmental Requirements by Owner or its tenants in the usual
and ordinary course of their activities), PCBs and radon gas. 
 “Major Capital Improvements” has the
meaning given in Section 3.6. 
 “Management Fee” has the meaning given in Section 4.1.

 “Manager” has the meaning given in the introductory paragraph. 

“Operating Budget” has the meaning given in Section 3.11(a). 

“Owner” has the meaning given in the introductory paragraph. 

“Owner’s Representative” has the meaning given in Section 2.2. 

“Pass-Through Amounts” means fees and/or reimbursements for services provided to the Property but not covered by
the Management Fee and Compliance Fee, as described in Exhibit A attached hereto and made a part hereof. 

“Property” means the multifamily apartment project listed and described on Exhibit B attached hereto and
made a part hereof. 
 “Regulatory Agreement” has the meaning given in Section 3.14. 

“Security Deposit Account” has the meaning given in Section 2.3. 

“State” means the state in which the Property is located. 

ARTICLE 2 

APPOINTMENT OF AGENCY AND RENTAL RESPONSIBILITY 
 Section 2.1 Appointment. Owner hereby appoints Manager and Manager hereby accepts appointment as the sole and exclusive leasing agent and manager of the Property on the terms and
conditions set forth herein. Owner warrants and represents to Manager that Owner owns fee simple title to the Property with all requisite authority to hereby appoint Manager and to enter into this Agreement. 

Section 2.2 Owner’s Representative. Owner shall from time to time designate one or more persons to serve as
Owner’s representative (“Owner’s Representative”) in all dealings with Manager hereunder. Whenever the approval, consent or other action of Owner is called for hereunder, such approval, consent or action shall be
binding on Owner if specified in writing and signed by Owner’s Representative. The initial Owner’s Representative shall be Kyle Winning, Chief Investment Officer. Any Owner’s Representative may be changed at the discretion of Owner,
at any time, and shall be effective upon Manager’s receipt of written notice identifying the new Owner’s Representative. 

 Section 2.3 Leasing. Manager shall perform all promotional, leasing and
management activities required to lease apartment units in the Property. Throughout the term of this Agreement, Manager shall use its diligent efforts to lease apartment units in the Property. Manager shall advertise the Property, prepare and secure
advertising signs, space plans, circulars, marketing brochures and other forms of advertising. Owner hereby authorizes Manager pursuant to the terms of this Agreement to advertise the Property in conjunction with institutional advertising campaigns
and allocate costs on a pro rata basis among the Properties being advertised (to the extent authorized by the Annual Business Plan). All inquiries for any leases or renewals or agreements for the rental of the Property or portions thereof shall be
referred to Manager and all negotiations connected therewith shall be conducted solely by or under the direction of Manager. Manager is hereby authorized to execute, deliver and renew residential tenant leases on behalf of Owner. Manager is
authorized to utilize the services of apartment locator services and the fees of such services shall be operating expenses of the Property and, to the extent paid by Manager, reimbursable by Owner. If applicable, Manager will prepare and verify
tenant eligibility, eligibility certifications and recertification in accordance with the Regulatory Agreement and Owner’s procedures. 
 Section 2.4 Manager’s Standard of Care. Manager shall perform its duties under this Agreement in a manner consistent with professional property management services. In no event
shall the scope or quality of services provided by Manager for the Property hereunder be less than those generally performed by professional property managers of similar properties in the market area where the Property is located. Manager shall make
available to Owner the full benefit of the judgment, experience, and advice of the members and employees of Manager’s organization with respect to the policies to be pursued by Owner in operating the Property, and will perform the services set
forth herein and such other services as may be requested by Owner in managing, operating, maintaining and servicing the Property. 
 ARTICLE 3 
 SERVICES TO BE PERFORMED BY MANAGER 

Section 3.1 Expense of Owner. All acts performed by Manager in the performance of its obligations under this Agreement
shall be performed as an independent contractor of Owner, and all obligations or expenses incurred thereby, shall be for the account of, on behalf of, and at the expense of Owner, except as otherwise specifically provided in this Article 3, provided
Owner shall be obligated to reimburse Manager only for the following: 
 (a) Costs and Expenses. All costs and
expenses incurred by Manager on behalf of Owner in connection with the management and operation of the Property, including but not limited to all compensation, including the cost of benefits, payable to the employees at the Property and identified
in the Operating Budget and taxes and assessments payable in connection therewith and reasonable training, travel and expenses associated therewith, all marketing costs, all collection and lease enforcement costs, all maintenance and repair costs
incurred in accordance with Section 3.5 hereof, all utilities and related services, all on-site overhead costs and all other costs reasonably incurred by Manager in the operation and management of the

 
Property, excluding, however, all of Manager’s general overhead costs, including without limitation, all expenses incurred at Manager’s corporate headquarters and other
Manager office sites other than the property management office located at the Property (i.e., office expenses, long distance phone calls, postage, copying, supplies, electronic data processing and accounting expenses), general accounting and
reporting expenses for services included among Manager’s duties under the Agreement; and 
 (b) Other. All
sums otherwise due and payable by Owner as expenses of the Property authorized to be incurred by Manager under the terms of this Agreement and the Operating Budget, including compensation payable under Section 4.1 hereof to Manager for its
services hereunder. 
 Manager may use employees normally assigned to other work centers or part-time employees to properly
staff the Property, reduced, increased or emergency work load and the like including the property manager, business manager, assistant managers, leasing directors, or other administrative personnel, maintenance employees or maintenance supervisors
whose wages and related expenses shall be reimbursed on a pro rata basis for the time actually spent at the Property. A property manager or business manager at the Property and any other persons performing functions substantially similar to those of
a business manager, including but not limited to assistant managers, leasing directors, leasing agents, sales directors, sales agents, bookkeepers, and other administrative and/or maintenance personnel performing work at the site, and on-site
maintenance personnel, shall not be considered executive employees of Manager. All reimbursable payments made by Manager hereunder shall be reimbursed from funds deposited in an account established pursuant to Section 5.2 of this Agreement.
Manager shall not be obligated to make any advance to or for the account of Owner nor shall Manager be obligated to incur any liability or obligation for the account of Owner without assurance that the necessary funds for the discharge thereof will
be provided by Owner. In the performance of its duties as agent and manager of the Property, Manager shall act solely as an independent contractor of Owner. All debts and liabilities to third persons incurred by Manager in the course of its
operation and management of the Property shall be the debts and liabilities of Owner only, and Manager shall not be liable for any such debt or liabilities, except to the extent Manager has exceeded its authority hereunder. 

Section 3.2 Covenants Concerning Payment of Operating Expenses. Owner covenants to pay all sums for reasonable
operating expenses in excess of gross receipts required to operate the Property upon written notice and demand from Manager within five days after receipt of written notice for payment thereof. 

Section 3.3 Employment of Personnel. Manager shall use its diligent efforts to investigate, hire, pay, supervise and
discharge the personnel necessary to be employed by it to properly maintain, operate and lease the Property, including without limitation a property manager or business manager at the Property. Such personnel shall in every instance be deemed agents
or employees, as the case may be, of Manager. Owner has no right of supervision or direction of agents or employees of Manager whatsoever; however, Owner shall have the right to require the reassignment or termination of any employee. All Owner
directives shall be communicated to Manager’s senior level management employees. Manager and all personnel of Manager who handle or who are responsible for handling Owner’s monies shall be bonded in

 
favor of Owner. Manager agrees to obtain and keep in effect fidelity insurance in an amount not less than Two Hundred Fifty Thousand Dollars ($250,000). All reasonable salaries, wages and other
compensation of personnel employed by Manager, including so-called fringe benefits, worker’s compensation, medical and health insurance and the like, shall be deemed to be reimbursable expenses of Manager. Manager may allow its employees who
work at the Property and provide services to the Property after normal business hours, to reside at the Property for reduced rents (or rent fee as provided in the Operating Budget) in consideration of their benefit to Owner and the Property,
provided such reduced rents are reflected in the Annual Business Plan. 
 Section 3.4 Utility and Service
Contracts. Manager shall, at Owner’s expense and in Owner’s name or in Manager’s name as agent for Owner, enter into contracts for water, electricity, gas, fuel, oil, telephone, vermin extermination, trash removal, cable
television, security protection and other services deemed by Manager to be necessary or advisable for the operation of the Property. Manager shall also, in Owner’s name or in Manager’s name as agent for Owner and at Owner’s expense,
place orders for such equipment, tools, appliances, materials, and supplies as are reasonable and necessary to properly maintain the Property. Owner agrees to pay or reimburse Manager for all expenses and liabilities incurred by reason of this
Section provided that such amounts are in accordance with the Operating Budget. 
 Section 3.5 Maintenance and Repair
of Property. Manager shall use diligent efforts to maintain, at Owner’s expense, the buildings, appurtenances and grounds of the Property in good condition and repair, including interior and exterior cleaning, painting and decorating,
plumbing, carpentry and such other normal maintenance and repair work as may be necessary or reasonably desirable taking into consideration the amount allocated therefor in the Annual Business Plan. With respect to any expenditure not contemplated
by the Annual Business Plan, Manager shall not incur any individual item of repair or replacement in excess of Five Thousand Dollars ($5,000.00) unless authorized in writing by Owner’s Representative, except, however, that emergency repairs
immediately necessary for the preservation and safety of the Property or to avoid the suspension of any service to the Property or danger of injury to persons or damage to property may be made by Manager without the approval of Owner’s
Representative. Owner shall not establish standards of maintenance and repair that violate or may violate any laws, rules, restrictions or regulations applicable to Manager or the Property or that expose Manager to risk of liability to tenants or
other persons. Manager shall not be obligated by this Section to perform any Major Capital Improvements. 
 Section 3.6
Supervision of Major Capital Improvements or Repairs. When requested by Owner in writing or as set forth in an Approved Business Plan, Manager or an affiliate thereof, including Pacific Coast Land & Development, Inc., shall,
at Owner’s expense and in Owner’s name or in Manager’s name as agent for Owner, supervise the installation and construction of all Major Capital Improvements to the Property where such work constitutes other than normal maintenance
and repair, for additional compensation as set forth in a separate agreement. If Owner and Manager fail to reach an agreement for Manager’s additional compensation as provided in this Agreement, Section 3.6, Owner may contract with a third
party to supervise installation or construction of Major Capital Improvements. In such events, Manager may negotiate contracts with all necessary contractors, subcontractors, materialmen, suppliers, architects, and engineers on behalf of, and in the
name of, Owner, and may 

 
compromise and settle any dispute or claim arising therefrom on behalf of and in the name of Owner; provided only that Manager shall act in good faith and in the best interest of Owner at all
times and Owner shall approve all contracts for such work. Manager will furnish or will cause to be furnished all personnel necessary for proper supervision of the work and may assign personnel located at the Property where such work is being
performed to such supervisory work (and such assignment shall not reduce or abate any other fees or compensation owed to Manager under this Agreement). For the purposes of this Agreement, the term “Major Capital Improvements”
shall mean work having an estimated cost of $25,000 or more. 
 Owner acknowledges that Manager, or an affiliate of Manager, may
bid on any such work, and that Manager, or an affiliate of Manager, may be selected to perform part or all of the work; provided that if Manager desires to select itself, or its affiliate to do any work, it shall first notify Owner of the terms upon
which it, or its affiliate, proposes to contract for the work, and terms upon which the independent contractors have offered to perform, and shall state the reasons for preferring itself, or its affiliate, over independent contractors and Owner
shall have fifteen days to disapprove Manager, or its affiliate, and to request performance by an independent contractor. Only Owner shall have the power to compromise or settle any dispute or claim arising from work performed by Manager, or its
affiliate; and it is expressly understood that the selection of Manager, or its affiliate, will not affect any fee or other compensation payable to Manager hereunder. 
 Section 3.7 Insurance. 
 (a) Owner Requirements.
Owner agrees to maintain all forms of insurance required by law or by any loan requirements for the Property and as otherwise deemed by Owner to be reasonable and necessary to adequately protect Owner and Manager, including but not limited to public
liability insurance, boiler insurance, fire and extended coverage insurance, and burglary and theft insurance. All insurance coverage shall be placed with such companies, in such amounts and with such beneficial interest appearing therein as shall
be reasonably acceptable to Owner. Public liability insurance shall be maintained in such amounts as Owner determines as commercially reasonable or as otherwise required by its lenders or investors, but in no case in an amount less than $5,000,000.

 Owner agrees to timely provide evidence of required insurance to Manager, and acknowledges that if evidence of insurance
coverage is not timely furnished, Manager may, but shall not be obligated to, obtain such coverage on Owner’s behalf. Manager shall be named an additional insured on all Owner obtained insurance. 

(b) Manager Requirements. Manager agrees to maintain, at its own expense, public liability insurance in an amount not less
than Two Million Dollars ($2,000,000) and all other forms of insurance required by law and as otherwise deemed by Owner and Manager to be reasonable and necessary to adequately protect Owner and Manager, including but not limited to workers
compensation insurance, professional liability, employee practices, and fidelity insurance. Manager agrees to timely provide evidence of required insurance to Owner and to name Owner as an additional insured on appropriate policies. 

 Manager shall use its diligent efforts to investigate and make a written report to the
insurance company as to all accidents, claims for damage relating to the ownership, operation and maintenance of the Property, any damage or destruction to the Property and the estimated cost of repair thereof, and shall prepare any and all reports
for any insurance company in connection therewith. All such reports shall be timely filed with the insurance company as required under the terms of the insurance policy involved. With the prior written approval of Owner, Manager is authorized to
settle any and all claims against insurance companies arising out of any policies, including the execution of proofs of loss, the adjustment of losses, signing of receipts and collection of monies (no approval by Owner shall be required for the
settlement of claims of $5,000 or less). Manager is further authorized to contract for the maintenance and repair of any damage or casualty in accordance with Section 3.6 above. Manager shall receive as an additional fee for such services that
fee designated in the loss adjustment as a general contractor’s fee, provided that insurance proceeds that exceed the cost of repairing the damage or restoring the loss are available to pay such fees. In such event Manager shall be responsible
for all costs incurred by Manager in adjusting such loss and contracting for repairs. 
 (c) Loss or Liability
Claims. Owner and Manager mutually agree for the benefit of each other to look only to the appropriate insurance coverages in effect pursuant to this Agreement in the event any demand, claim, action, damage, loss, liability or expense occurs
as a result of injury to person or damage to property, regardless whether any such demand, claim, action, damage, loss, liability or expense is caused or contributed to, by or results from the negligence of Owner or Manager or their respective
subsidiaries, affiliates, employees, directors, officers, agents or independent contractors and regardless whether the injury to person or damage to property occurs in and about the Property or elsewhere as a result of the performance of this
Agreement. Except for claims that are covered by the indemnity contained in Section 3.7(d) below, Owner agrees that Owner’s insurance shall be primary without right of subrogation against Manager with respect to all claims, actions,
damage, loss or liability in or about the Property. Nevertheless, in the event such insurance proceeds are insufficient to satisfy (or such insurance does not cover) the demand, claim, action, loss, liability or expense, Owner agrees, at its
expense, to indemnify and hold Manager and its subsidiaries, affiliates, officers, directors, employees, agents or independent contractors harmless to the extent of excess liability. For purposes of this Section 3.7(c), any deductible amount
under any policy of insurance shall not be deemed to be included as part of collectible insurance proceeds. 
 (d)
Indemnification. Notwithstanding anything contained in this Agreement to the contrary, Owner shall defend, indemnify, and hold harmless Manager and its representative subsidiaries, affiliates, officers, directors, employees, agents or
independent contractors from and against all claims, demands, or legal proceedings (including expenses and reasonable attorney’s fees incurred in connection with the defense of any such matter) (each a “Claim”) that are
brought against Manager arising out of the operation or management of the Project, except with respect to claims arising out of Manager’s gross negligence or willful misconduct. Manager shall defend, indemnify, and hold harmless Owner and its
representative subsidiaries, affiliates, officers, directors, employees, agents or independent contractors from all Claims arising out of (he gross negligence or willful misconduct of Manager. The indemnification obligations under this
Section 3.7(d) shall survive termination of this Agreement. 

 (e) Acts of Tenants and Third Parties. In no event shall Manager have any
liability to Owner or others for any acts of vandalism, trespass or criminal activity of any kind by tenants or third parties on or with respect to the Property and Owner’s insurance shall be primary insurance without right of subrogation
against Manager regarding claims arising out of or resulting from acts of vandalism, trespass or criminal activity. 

Section 3.8 Collection of Monies. Manager shall use its diligent efforts to collect all rents and other charges due
from tenants, users of garage spaces, carports, storage spaces (if any), commercial lessees (if any) and concessionaires (if any) in respect of the Property and otherwise due Owner with respect to the Property in the ordinary course of business,
provided that Manager does not guarantee the creditworthiness of any tenants, users, lessees or concessionaires or collectability of accounts receivable from any of the foregoing. Owner authorizes Manager to request, demand, collect, receive and
receipt for all such rent and other charges and to institute legal proceedings in the name of Owner, and at Owner’s expense, for the collection thereof, and for the dispossession of tenants and other persons from the Property or to cancel or
terminate any lease, license or concession agreement for breach or default thereunder, and such expense may include the engaging of legal counsel for any such matter. All monies collected by Manager shall be deposited in the separate bank account
referred to in Section 5.2 herein. 
 Section 3.9 Manager Disbursements. 

(a) Manager’s Compensation and Reimbursements. From Gross Collections, Manager shall be authorized to retain and pay
(1) Manager’s compensation, together with all sales or other taxes (other than income) which Manager is obligated, presently or in the future, to collect and pay to the State or any other governmental authority with respect to the Property
or employees at the Property, (2) the amounts reimbursable to Manager under this Agreement, (3) the amount of all real estate taxes and other impositions levied by appropriate authorities with respect to the Property which, if not escrowed
with any mortgagee, shall be paid upon specific written direction of Owner before interest begins to accrue thereon; and (4) amounts otherwise due and payable as operating expenses of the Property authorized to be incurred under the terms of
this Agreement. 
 (b) Debt Service. The provisions of this Section 3.9 regarding disbursements shall include
the payment of debt service related to any mortgages of the Property, unless otherwise instructed in writing by Owner. 
 (c)
Third Parties. All costs, expenses, debts and liabilities owed to third persons that are incurred by Manager pursuant to the terms of this Agreement and in the course of managing, leasing and operating the Property shall be the
responsibility of Owner and not Manager. Owner agrees to provide sufficient working capital funds to Manager so that all amounts due and owing may be promptly paid by Manager. Manager is not obligated to advance any funds. If at any time there is
not sufficient cash in the account available to Manager pursuant to Section 5.2 with which to promptly pay the bills due and owing, Manager will request that the necessary additional funds be deposited by Owner in an amount sufficient to meet
the shortfall. Owner will deposit the additional funds requested by Manager within five days. 

 (d) Other Provisions. The provisions of this Section 3.9 regarding
reimbursements to Manager shall not limit Manager’s rights under any other provision of this Agreement. 

Section 3.10 Use and Maintenance of Premises. Manager agrees that it will not knowingly permit the use of the Property
for any purpose that might void any insurance policy held by Owner or that might render any loss thereunder uncollectible, or that would be in violation of Governmental Requirements, or any covenant or restriction of any lease of the Property.
Manager shall use its good faith efforts to secure substantial compliance by the tenants with the terms and conditions of their respective leases. All costs of correcting or complying with, and all fines payable in connection with, all orders or
violations affecting the Property placed thereon by any governmental authority or Board of Fire Underwriters or other similar body shall be at the cost and expense of Owner. 
 Section 3.11 Annual Business Plan. 
 (a)
Submission. On or before November 1 of each Fiscal Year during the term of this Agreement, or such earlier date as reasonably requested by Owner, its lenders or investors, Manager shall prepare and submit to Owner for Owner’s
approval, an Annual Business Plan for the promotion, leasing, operations, repair and maintenance of the Property for the succeeding Fiscal Year during which this Agreement is to remain in effect (the “Annual Business Plan”).
The Annual Business Plan shall include a detailed budget of projected income and expenses for the Property for such Fiscal Year (the “Operating Budget”) and a detailed budget of projected capital improvements for the Property
for such Fiscal Year (the “Capital Budget”). 
 (b) Approval. Manager shall meet with
Owner to discuss the proposed Annual Business Plan and Owner shall approve the proposed Annual Business Plan within 20 days of its submission to Owner, or as soon thereafter as commercially practicable. To be effective, any notice which disapproves
a proposed Annual Business Plan must contain specific objections in reasonable detail to individual line items. If Owner fails to provide an effective notice disapproving a proposed Annual Business Plan within such 20-day period, the proposed Annual
Business Plan shall be deemed to be approved. Owner acknowledges that the Operating Budget is intended only to be a reasonable estimate of the income and expenses of the Property for the ensuing Fiscal Year. Manager shall not be deemed to have made
any guarantee, warranty or representation whatsoever in connection with the Operating Budget. 
 (c) Revision.
Manager may revise the Operating Budget from time to time, as necessary, to reflect any unpredicted significant changes, variables or events or to include significant additional, unanticipated items of revenue and expense. Any such revision shall be
submitted to Owner for approval, which approval shall not be unreasonably withheld, delayed or conditioned. 
 (d)
Implementation. Manager agrees to use diligence and to employ all reasonable efforts to ensure that the actual costs of maintaining and operating the Property shall not exceed the Operating Budget either in total or in any one
accounting category. Any expense causing or likely to cause a variance of greater than ten percent (10%) or $25,000, whichever is 

 
greater, in any one accounting category for the current month cumulative year-to-date total shall be promptly explained to Owner by Manager in the next operating statement submitted by Manager to
Owner. 
 Section 3.12 Records, Reporting. Manager shall maintain at the regular business office of Manager
or at such other address as Manager shall advise Owner in writing, separate books and journals and orderly files, containing rental records, insurance policies, leases, correspondence, receipts, bills and vouchers, and all other documents and papers
pertaining directly to the Property and the operation thereof. All corporate statements, receipts, invoices, checks, leases, contracts, worksheets, financial statements, books and records, and all other instruments and documents relating to or
arising from the operation or management of the Property shall be and remain the property of Owner and the Owner shall have the right to inspect such records at any reasonable time upon prior notice; Manager shall have the right to request and
maintain copies of all such matters, at Manager’s cost and expense, at all reasonable times during the term of this Agreement, and for a reasonable time thereafter not to exceed three years. All on-site records, including leases, rent rolls,
and other related documents shall remain at the respective Property for which such records are maintained as the property of Owner. 
 Section 3.13 Financial Reports. 
 (a)
Monthly Reports. On or before the fifteenth (15th) day of each month during the term of this Agreement, Manager shall deliver or cause to be delivered to Owner’s Representative a statement of cash flow for the Property (on a cash and not an
accrual basis) for the preceding calendar month. All notices from any mortgagee claiming any default in any mortgage on the Property, and any other notice from any mortgagee not of a routine nature, shall be promptly delivered by Manager to
Owner’s Representative. 
 (b) Annual Reports. Within 45 days after the end of each Fiscal Year, Manager
shall deliver to Owner’s Representative a statement of cash flow showing the results of operations for the Fiscal Year or portion thereof during which the provisions of this Agreement were in effect. 

(c) Employee Files. Manager shall execute and file punctually when due all forms, reports and returns required by law
relating to the employment of personnel. 
 Section 3.14 Compliance with Governmental Requirements. Manager
shall comply with all laws, ordinances and regulations relating to the management, leasing and occupancy of the Property, including any regulatory or use agreements. Manager acknowledges the regulatory or land use agreement(s) listed on Exhibit
C attached to this Agreement (the “Regulatory Agreement”), and agrees to comply with such agreement and to promptly provide Owner with all notices and communications from governmental agencies with respect to the
Regulatory Agreement. Owner acknowledges that Manager does not hold itself out to be an expert or consultant with respect to, or represent that, the Property currently complies with applicable ordinances, regulations, rules, statutes, or laws of
governmental entities having jurisdiction over the Properties or the requirements of the Board of Fire Underwriters or other similar bodies or with the Regulatory Agreement (collectively, “Governmental Requirements”). Manager
shall take such action as may be reasonably necessary to comply with any Governmental 

 
Requirements applicable to Manager, including the collection and payment of all sales and other taxes (other than income taxes) that may be assessed or charged by the State or any governmental
entities in connection with Manager’s compensation. If Manager discovers that the Property does not comply with any Governmental Requirements, Manager shall take such action as may be reasonably necessary to bring the Property into compliance
with such Governmental Requirements, subject to the limitation contained in Section 3.5 of this Agreement regarding the making of alterations and repairs. Manager, however, shall not take any such action as long as Owner is contesting or has
affirmed its intention to contest and promptly institute proceedings contesting any such order or requirement. If, however, failure to comply promptly with any such order or requirement would or might expose Manager to civil or criminal liability,
Manager shall have the right, but not the obligation, to cause the same to be complied with and Owner agrees to indemnify and hold Manager harmless for taking such actions and to promptly reimburse Manager for expenses incurred thereby. Manager
shall promptly, and in no event later than 72 hours from the time of receipt, notify Owner’s Representative in writing of all such orders or notices. Manager shall not be liable for any effort or judgment or for any mistake of fact or of law,
or for anything that it may do or refrain from doing, except in cases of willful misconduct or gross negligence of Manager. 

ARTICLE 4 

MANAGER’S COMPENSATION, TERM 
 Section 4.1 Fees Paid to Manager. Commencing on the date hereof, Owner shall pay to Manager a fee (the “Management Fee”), payable monthly in arrears, in an
amount equal to Three Percent (3.0%) of Gross Collections for such month and “Compliance Fee”, payable monthly in arrears, in an amount equal to One-Half Percent (0.5%) of Gross Collections for such month. The Management
Fee and Compliance Fee shall not be subject to off-sets and charges unless agreed upon by the parties. Pass-Through Amounts shall be collected monthly by Manager, as applicable. 

Section 4.2 Term. This Agreement shall commence on the Effective Date, and shall thereafter continue for a period of
one (1) year from the Effective Date, unless otherwise terminated as provided herein. Thereafter, if neither party gives written notice to the other at least 60 days prior to the expiration date hereof that this Agreement is to terminate, then
this Agreement shall be automatically renewed on a month-to-month basis. 
 Section 4.3 Termination Rights.
Notwithstanding anything that may be contained herein to the contrary, Owner may terminate this Agreement at any time by giving Manager thirty (30) days written notice thereof upon a determination of gross negligence, willful misconduct or bad
acts of Manager or any of its employees. If Owner or Manager shall materially breach its obligations hereunder, and such breach remains uncured for a period of 30 days after written notification of such breach, the party not in breach hereunder may
terminate this Agreement by giving written notice to the other. Any notice given pursuant to this Article 4, shall be sent by certified mail. 
 Section 4.4 Duties on Termination. Upon any termination of this Agreement as contemplated in Section 4.4, Manager shall be entitled to receive all compensation and reimbursements,
if any, due to Manager through the date of termination. Within 30 days after 

 
any termination, Manager shall deliver to Owner’s Representative, the report required by Section 3.13(a) for any period not covered by such a report at time of termination, and within
30 days after any such termination, Manager shall deliver to Owner’s Representative, as required by Section 3.13(b), the statement of cash flow for the Fiscal Year or portion thereof ending on the date of termination. In addition, upon
termination of this Agreement for any reason, Manager will submit to Owner within 30 days after termination any reports required hereunder, all of the cash and bank accounts of the Property, including, without limitation, the Security Deposit
Account, investments and records. Manager will, within 30 days after termination, turn over to Owner all copies of all books and records kept for the Property. If Manager desires to retain records of the Property, Manager must reproduce them at its
own expense. 
 ARTICLE 5 
 PROCEDURES FOR HANDLING RECEIPTS AND OPERATING CAPITAL 

Section 5.1 Security Deposits. Manager shall collect, deposit, hold, disburse and pay security deposits as required by
applicable State law and all other applicable laws, and in accordance with the terms of each tenant’s lease. The amount of each security deposit will be specified in the tenant’s lease. Security deposits shall be deposited into a separate
non-interest-bearing account unless otherwise required by law (the “Security Deposit Account”) at a Depository selected by Manager and approved by Owner. The Security Deposit Account shall be established in the name of the Manager
and held separate from all other of Manager’s funds and accounts, unless the Owner informs Manager, in writing that it intends to hold the Security Deposit Account. If such account is held by Manager, only representatives of Manager will be
signatories to this account. To the extent possible, the Security Deposit Account shall be fully insured by the Federal Deposit Insurance Corporation (FDIC). Owner agrees to indemnify and hold harmless Manager, and Manager’s representatives,
officers, directors and employees for any loss or liability with respect to any use by Owner of the tenant security deposits that is inconsistent with the terms of tenant leases and applicable laws. 

Section 5.2 Separation of Owner’s Monies. Manager shall deliver all collected rents, charges and other amounts
received in connection with the management and operation of the Property (except for tenants’ security deposits, which will be handled as specified in this Agreement) to a Depository selected by Manager and approved by Owner. 

Section 5.3 Depository Accounts. Except to the extent that Manager has not complied with its obligations under
Section 2.3(c), Owner and Manager agree that Manager shall have no liability for loss of funds of Owner contained in the bank accounts for the Property maintained by Owner or Manager pursuant to this Agreement due to insolvency of the bank or
financial institution in which its accounts are kept, whether or not the amounts in such accounts exceed the maximum amount of federal or other deposit insurance applicable with respect to the financial institution in question. 

Section 5.4 Working Capital. In addition to the funds derived from the operation of the Property, Owner shall furnish
and maintain in the operating accounts of the Property such other funds as may be necessary to discharge financial commitments required to efficiently operate the Property and to meet all payrolls and satisfy, before delinquency, and to discharge
all accounts payable. Manager shall have no responsibility or obligation with respect to the 

 
furnishing of any such funds. Nevertheless, Manager shall have the right, but not the obligation, to advance funds or contribute property on behalf of Owner to satisfy obligations of Owner in
connection with this Agreement and the Property. Manager shall keep appropriate records to document all reimbursable expenses paid by Manager, which records shall be made available for inspection by Owner or its agents on request. Owner agrees to
reimburse Manager upon demand for money paid or property contributed in connection with the Property and this Agreement. 

Section 5.5 Authorized Signatures. Any persons from time to time designated by Manager shall be authorized signatories
on all bank accounts established by Manager pursuant to this Agreement and shall have authority to make disbursements from such accounts. Funds may be withdrawn from all bank accounts established by Manager, in accordance with this Article 5, only
upon the signature of an individual who has been granted that authority by Manager and funds may not be withdrawn from such accounts by Owner unless Manager is in default hereunder. 

ARTICLE 6 

MISCELLANEOUS 
 Section 6.1 Assignment. Upon 30 days written notification, Owner may assign its rights and obligations to any successor in title to the Property and upon such assignment shall be
relieved of all liability accruing after the effective date of such assignment. This Agreement may not be assigned or delegated by Manager without the prior written consent of Owner, which Owner may withhold in its sole discretion. Any unauthorized
assignment shall be null and void ab initio, and shall not in any event release Manager from any liabilities hereunder. 

Section 6.2 Notices. All notices required or permitted by this Agreement shall be in writing and shall be sent by
registered or certified mail, addressed in the case of Owner to SIR Windsor on the River, LLC, 18100 Von Karman Avenue, Suite 500, Irvine, CA 92612, Attention: Kevin Keating; and in the case of Manager to Steadfast Management Company, Inc. 18100 Von
Karman Avenue, Suite 500, Irvine, CA 92612, Attention: Christopher Hilbert, or to such other address as shall, from time to time, have been designated by written notice by either party given to the other party as herein provided. 

Section 6.3 Entire Agreement. This Agreement shall constitute the entire agreement between the parties hereto and no
modification thereof shall be effective unless in writing executed by the parties hereto. 
 Section 6.4 No
Partnership. Nothing contained in this Agreement shall constitute or be construed to be or create a partnership or joint venture between Owner, its successors or assigns, on the one part, and Manager, its successors and assigns, on the other
part. 
 Section 6.5 No Third Party Beneficiary. Neither this Agreement nor any part hereof nor any service
relationship shall inure to the benefit of any third party, to any trustee in bankruptcy, to any assignee for the benefit of creditors, to any receiver by reason of insolvency, to any other fiduciary or officer representing a bankrupt or insolvent
estate of either party, or to the creditors or claimants of such an estate. Without limiting the generality of the foregoing sentence, it is specifically understood and agreed that such insolvency or bankruptcy of either party hereto shall, at the
option of the other party, void all rights of such insolvent or bankrupt party hereunder (or so many of such rights as the other party shall elect to void). 

 Section 6.6 Severability. If any one or more of the provisions of this
Agreement, or the applicability of any such provision to a specific situation, shall be held invalid or unenforceable, such provision should be modified to the minimum extent necessary to make it or its application valid and enforceable, and the
validity and enforceability of all other provisions of this Agreement and all other applications of such provisions shall not be affected thereby. 
 Section 6.7 Captions, Plural Terms. Unless the context clearly requires otherwise, the singular number herein shall include the plural, the plural number shall include the singular and
any gender shall include all genders. Titles and captions herein shall not affect the construction of this Agreement. 

Section 6.8 Attorneys’ Fees. Should either party employ an attorney to enforce any of the provisions of this
Agreement, or to recover damages for breach of this Agreement, the non-prevailing party in any action agrees to pay to the prevailing party all reasonable costs, damages and expenses, including reasonable attorneys’ fees, expended or incurred
by the prevailing party in connection therewith. 
 Section 6.9 Signs. Manager shall have the right to place
signs on the Property in accordance with applicable Governmental Requirements stating that Manager is the manager and leasing agent for the Property. 
 Section 6.10 Survival of Indemnities. The indemnification obligations of the parties to this Agreement shall survive the termination of this Agreement to the extent of any claim or
cause of action based on an event occurring prior to the date of termination. 
 Section 6.11 Governing Law.
This Agreement shall be construed under and in accordance with the laws of the State and is fully performable with respect to the Property in the county in which the Property is located. 

Section 6.12 Competitive Properties. Manager may, individually or with others, engage or possess an interest in any
other project or venture of every nature and description, including but not limited to, the ownership, financing, leasing, operation, management, brokerage and sale of real estate projects including apartment projects other than the Property,
whether or not such other venture or projects are competitive with the Property and Owner shall not have any claim as to such project or venture or to the income or profits derived therefrom. 

Section 6.13 Set Off. Without prejudice to Manager’s right to terminate this Agreement in accordance with the
terms of this Agreement, Manager may at any time and without notice to Owner, set off or transfer any sums held by Manager for or on behalf of Owner in the accounts (other than the Security Deposit Account) maintained pursuant to this Agreement in
or towards satisfaction of any of Owner’s liabilities to Manager in respect of any sums due to Manager under this Agreement. 
 Section 6.14 Notice of Default. Manager shall not be deemed in default under this Agreement, and Owner’s right to terminate Manager as a result of such default shall not accrue,
until Owner has delivered written notice of default to Manager and Manager has failed to cure same within 30 days from the date of receipt of such notice. 

 Section 6.15 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed to be an original. 
 This Property Management Agreement is hereby executed by duly
authorized representatives of the parties hereto as of the Effective Date. 
  

									
	OWNER:	 		 	SIR WINDSOR ON THE RIVER, LLC,
		 		 	a Delaware limited liability company
				
		 		 	By:	 	Steadfast Income Advisor, LLC, its Manager
					
		 		 		 	By:	 	 /s/ Ana Marie del Rio

		 		 		 		 	Ana Marie del Rio, Secretary
			
	MANAGER:	 		 	STEADFAST MANAGEMENT COMPANY. INC.,
		 		 	a California corporation
				
		 		 	By:	 	 /s/ Rodney F. Emery

		 		 		 	Rodney F. Emery, Chief Executive Officer

 EXHIBIT A 
 ESTIMATED PASS-THROUGH AMOUNTS 
  

					
	 Benefits Administration
	  	 	3% of total employee costs	  
	 IT Infrastructure, Licenses and Support
	  	 	At cost and expense	  
	 Marketing/Training/Continuing Educations
	  	$	20.00 p.u.p.y.	  

 EXHIBIT B 

THE PROPERTY 

Legal Description: 2200 Buckingham Drive, Cedar Rapids, IA 52405 
 The real property situated in the City of Cedar Rapids, County of Linn, State of Iowa, and described as follows: 
 The Property consists of 244 one-bedroom, 174 two-bedroom, and 6 three-bedroom apartments. Site amenities include laundry rooms, clubhouse, fitness center, swimming pool, and two tennis courts. It is
comprised of 30.22 acres and it was built in 1982 and renovated in 2007. 

 EXHIBIT C 

REGULATORY AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00198-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00198-of-00352.parquet"}]]