Document:

FIRST SUPPLEMENTAL INDENTURE

      This FIRST SUPPLEMENTAL INDENTURE dated as of December 31, 1999 (this
"SUPPLEMENTAL INDENTURE") is by and among:

           SONIC AUTOMOTIVE-BONDESEN, INC., a Florida corporation,
        SONIC AUTOMOTIVE OF TEXAS, L.P., a Texas limited partnership,
SONIC AUTOMOTIVE-1720 MASON AVE., DB, LLC, a Florida limited liability company,
    SONIC AUTOMOTIVE-3401 N. MAIN, TX, L.P., a Texas limited partnership,
   SONIC AUTOMOTIVE-4701 I-10 EAST, TX, L.P., a Texas limited partnership,
   SONIC AUTOMOTIVE-5221 I-10 EAST, TX, L.P., a Texas limited partnership,
    SONIC AUTOMOTIVE-6008 N. DALE MABRY, FL, INC., a Florida corporation,
   SONIC AUTOMOTIVE-9103 E. INDEPENDENCE, NC, LLC, a North Carolina limited
                              liability company,
SONIC-2185 CHAPMAN RD., CHATTANOOGA, LLC, a Tennessee limited liability company,
             SONIC-CAMP FORD, L.P., a Texas limited partnership,
              SONIC-CLASSIC DODGE, INC., an Alabama corporation,
        SONIC-FM AUTOMOTIVE, LLC, a Florida limited liability company,
                    SONIC-FM, INC., a Florida corporation,
                SONIC-FM NISSAN, INC., a Florida corporation,
                  SONIC-FM VW, INC., a Florida corporation,
                 SONIC-FREELAND, INC., a Florida corporation,
          SONIC-GLOBAL IMPORTS, L.P., a Georgia limited partnership,
      SONIC-INTEGRITY DODGE LV, LLC, a Nevada limited liability company,
               SONIC-LLOYD NISSAN, INC., a Florida corporation,
          SONIC-LLOYD PONTIAC-CADILLAC, INC., a Florida corporation,
             SONIC-LUTE RILEY, L.P., a Texas limited partnership,
            SONIC-MANHATTAN FAIRFAX, INC., a Virginia corporation,
            SONIC-MANHATTAN WALDORF, INC., a Maryland corporation,
  SONIC-NEWSOME AUTOMOTIVE, LLC, a South Carolina limited liability company,
      SONIC-NEWSOME CHEVROLET WORLD, INC., a South Carolina corporation,
        SONIC-NEWSOME OF FLORENCE, INC., a South Carolina corporation,
         SONIC-NORTH CHARLESTON, INC., a South Carolina corporation,
      SONIC-NORTH CHARLESTON DODGE, INC., a South Carolina corporation,
              SONIC-READING, L.P., a Texas limited partnership,
            SONIC-ROCKVILLE IMPORTS, INC., a Maryland corporation,
            SONIC-ROCKVILLE MOTORS, INC., a Maryland corporation,
          SONIC-SAM WHITE NISSAN, L.P., a Texas limited partnership,
        SONIC-SAM WHITE OLDSMOBILE, L.P., a Texas limited partnership,
               SONIC-SHOTTENKIRK, INC., a Florida corporation,
    SONIC-SUPERIOR OLDSMOBILE, LLC, a Tennessee limited liability company,
                  SONIC OF TEXAS, INC., a Texas corporation,
           SONIC-VOLVO LV, LLC, a Nevada limited liability company,
             SONIC-WILLIAMS BUICK, INC., an Alabama corporation,
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            SONIC-WILLIAMS CADILLAC, INC., an Alabama corporation,
            SONIC-WILLIAMS IMPORTS, INC., an Alabama corporation,
    SONIC-WILLIAMS MOTORS, LLC, an Alabama limited liability company, and
             VILLAGE IMPORTED CARS, INC., a Maryland corporation
             FIRSTAMERICA AUTOMOTIVE, INC., a Delaware corporation
                   AUTOBAHN, INC., a California corporation
            DON LUCAS INTERNATIONAL, INC., a California corporation
               FA SERVICE CORPORATION, a California corporation
               FAA AUTO FACTORY, INC., a California corporation
               FAA BEVERLY HILLS, INC., a California corporation
                 FAA CAPITOL N, INC., a California corporation
                 FAA CONCORD H, INC., a California corporation
                 FAA CONCORD N, INC., a California corporation
                 FAA CONCORD T, INC., a California corporation
              FAA DEALER SERVICES, INC., a California corporation
                 FAA DUBLIN N, INC., a California corporation
                FAA DUBLIN VWD, INC., a California corporation
                  FAA HOLDING CORP., a California corporation
                  FAA LAS VEGAS H, INC., a Nevada corporation
                  FAA MARIN D, INC., a California corporation
                  FAA MARIN F, INC., a California corporation
                FAA MONTEREY F, INC., a California corporation
                  FAA POWAY D, INC., a California corporation
                  FAA POWAY G, INC., a California corporation
                  FAA POWAY H, INC., a California corporation
                  FAA POWAY T, INC., a California corporation
                 FAA SAN BRUNO, INC., a California corporation
              FAA SANTA MONICA V, INC., a California corporation
               FAA SERRAMONTE H, INC., a California corporation
               FAA SERRAMONTE L, INC., a California corporation
                FAA SERRAMONTE, INC., a California corporation
               FAA STEVENS CREEK, INC., a California corporation
               FAA TORRANCE CPJ, INC., a California corporation
             FAA WOODLAND HILLS VW, INC., a California corporation
               FRANCISCAN MOTORS, INC., a California corporation
             KRAMER MOTORS INCORPORATED, a California corporation
               LUCAS DEALERSHIP GROUP, INC., a Texas corporation
           SANTA CLARA IMPORTED CARS, INC., a California corporation
                 SMART NISSAN, INC., a California corporation
            STEVENS CREEK CADILLAC, INC., a California corporation

               TRANSCAR LEASING, INC., a California corporation
                     WINDWARD, INC., a Hawaii corporation

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(hereinafter referred to collectively as the "GUARANTEEING SUBSIDIARIES"), SONIC
AUTOMOTIVE, INC., a Delaware corporation, (the "COMPANY"), the other Guarantors
(as listed on the signature page of the Indenture referred to below) (the
"GUARANTORS") and U.S. BANK TRUST NATIONAL ASSOCIATION, as trustee under the
Indenture referred to below (the "TRUSTEE").

                                  WITNESSETH

      WHEREAS, the Company and the Guarantors have heretofore executed and
delivered to the Trustee an Indenture dated as of July 1, 1998, as supplemented
(the "INDENTURE") providing for the issuance in an aggregate principal amount of
up to $125,000,000 of the Company's 11% Senior Subordinated Notes due 2008 (the
"NOTES"); and

      WHEREAS, the Indenture provides that under certain circumstances each of
the Guaranteeing Subsidiaries shall execute and deliver to the Trustee a
supplemental indenture pursuant to which each of the Guaranteeing Subsidiaries
shall guarantee all of the Indenture Obligations under the Notes and the
Indenture on the terms and conditions set forth herein (the "NOTE GUARANTEE");
and

      WHEREAS, each Guaranteeing Subsidiary is a wholly-owned direct or indirect
subsidiary of the Company; and

      WHEREAS, pursuant to Section 901(e) of the Indenture, the Trustee is
authorized to execute and deliver this Supplemental Indenture to add the
Guaranteeing Subsidiaries pursuant to the requirements of Section 1013 of the
Indenture; and

      WHEREAS, the second paragraph of Section 1314 of the Indenture contains an
erroneous cross-reference to Section 1013(b) where such cross-reference should
be to Section 1013(c);

      WHEREAS, pursuant to Section 901(c) of the Indenture, the Trustee is
authorized to execute and deliver this Supplemental Indenture to cure any
ambiguity or correct any provision in the Indenture which may be defective or
inconsistent with any other provision of the Indenture; and

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

      SECTION 1. CAPITALIZED TERMS. Capitalized terms used herein without
definition shall have the meanings assigned to them in the Indenture.

      SECTION 2. AGREEMENT TO GUARANTEE. Each of the Guaranteeing Subsidiaries
hereby agrees as follows (notwithstanding anything to the contrary in this
Supplemental Indenture, such agreements of the Guaranteeing Subsidiaries shall
be construed as identical to those agreements

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made by the Guarantors under the Indenture, and the obligations and rights of
the Guaranteeing Subsidiaries hereunder shall be no more and no less than those
of the Guarantors under the Indenture):

      (a) GUARANTEEING SUBSIDIARIES' GUARANTEE. Along with the Guarantors named
in the Indenture and in accordance with Article Thirteen of the Indenture and
this Section 2, to guarantee absolutely, fully, unconditionally and irrevocably,
jointly and severally with each other and with each other Person which may
become a Guarantor under the Indenture, to the Trustee and the Holders, as if
the Guaranteeing Subsidiaries were the principal debtor, the punctual payment
and performance when due of all Indenture Obligations (which for purposes of
this Guarantee shall also be deemed to include all commissions, fees, charges,
costs and other expenses (including reasonable legal fees and disbursements of
one counsel) arising out of or incurred by the Trustee or the Holders in
connection with the enforcement of this Guarantee).

      (b)  CONTINUING GUARANTEE; NO RIGHT OF SET-OFF; INDEPENDENT OBLIGATIONS.

            (i) This Guarantee by the Guaranteeing Subsidiaries shall be a
continuing guarantee of the payment and performance of all Indenture Obligations
and shall remain in full force and effect until the payment in full of all of
the Indenture Obligations and shall apply to and secure any ultimate balance due
or remaining unpaid to the Trustee or the Holders. This Guarantee by the
Guaranteeing Subsidiaries shall not be considered as wholly or partially
satisfied by the payment or liquidation at any time or from time to time of any
sum of money for the time being due or remaining unpaid to the Trustee or the
Holders. Each Guaranteeing Subsidiary, jointly and severally, covenants and
agrees to comply with all obligations, covenants, agreements and provisions
applicable to it in the Indenture as if named as a Guarantor therein including
those set forth in Article Eight of the Indenture. Without limiting the
generality of the foregoing, each Guaranteeing Subsidiaries' liability shall
extend to all amounts which constitute part of the Indenture Obligations and
would be owed by the Company under the Indenture and the Securities but for the
fact that they are unenforceable, reduced, limited, impaired, suspended or not
allowable due to the existence of a bankruptcy, reorganization or similar
proceeding involving the Company.

            (ii) Each Guaranteeing Subsidiary, jointly and severally, hereby
guarantees that the Indenture Obligations will be paid to the Trustee without
set-off or counterclaim or other reduction whatsoever (whether for taxes,
withholding or otherwise) in lawful currency of the United States of America.

            (iii) Each Guaranteeing Subsidiary, jointly and severally,
guarantees that the Indenture Obligations shall be paid strictly in accordance
with their terms regardless of any law, regulation or order now or hereafter in
effect in any jurisdiction affecting any of such terms or the rights of the
holders of the Securities.

            (iv) Each Guaranteeing Subsidiary's liability to pay or perform or
cause the performance of the Indenture Obligations under this Guarantee shall
arise forthwith after demand for payment or performance by the Trustee has been
given to the Guarantors in the manner prescribed in Section 106 of the
Indenture.

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            (v) Except as provided in the Indenture, the provisions of Article
Thirteen of the Indenture and this Section 2 cover all agreements between the
parties hereto relative to this Guarantee and none of the parties shall be bound
by any representation, warranty or promise made by any Person relative thereto
or hereto, which is not embodied therein or herein; and it is specifically
acknowledged and agreed that this Guarantee has been delivered by each
Guaranteeing Subsidiary free of any conditions whatsoever and that no
representations, warranties or promises have been made to any Guaranteeing
Subsidiary affecting its liabilities hereunder, and that the Trustee shall not
be bound by any representations, warranties or promises now or at any time
hereafter made by the Company to any Guaranteeing Subsidiary.

            (vi) This Guarantee is a guarantee of payment, performance and
compliance and not of collectibility and is in no way conditioned or contingent
upon any attempt to collect from or enforce performance or compliance by the
Company or upon any event or condition whatsoever.

            (vii) The obligations of the Guaranteeing Subsidiaries set forth
herein constitute the full recourse obligations of the Guaranteeing Subsidiaries
enforceable against them to the full extent of all their assets and properties.

      (c) GUARANTEE ABSOLUTE. The obligations of the Guaranteeing Subsidiaries
hereunder are independent of the obligations of the Company under the Securities
and the Indenture and a separate action or actions may be brought and prosecuted
against any Guaranteeing Subsidiary whether or not an action or proceeding is
brought against the Company and whether or not the Company is joined in any such
action or proceeding. The liability of the Guaranteeing Subsidiaries hereunder
is irrevocable, absolute and unconditional and (to the extent permitted by law)
the liability and obligations of the Guaranteeing Subsidiaries hereunder shall
not be released, discharged, mitigated, waived, impaired or affected in whole or
in part by:

            (i)     any defect or lack of validity or enforceability in respect
                    of any Indebtedness or other obligation of the Company or
                    any other Person under the Indenture or the Securities, or
                    any agreement or instrument relating to any of the
                    foregoing;

            (ii)    any grants of time, renewals, extensions, indulgences,
                    releases, discharges or modifications which the Trustee or
                    the Holders may extend to, or make with, the Company, any
                    Guarantor, any Guaranteeing Subsidiary or any other Person,
                    or any change in the time, manner or place of payment of, or
                    in any other term of, all or any of the Indenture
                    Obligations, or any other amendment or waiver of, or any
                    consent to or departure from, the Indenture or the
                    Securities, including any increase or decrease in the
                    Indenture Obligations;

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            (iii)   the taking of security from the Company, any Guarantor, any
                    Guaranteeing Subsidiary or any other Person, and the
                    release, discharge or alteration of, or other dealing with,
                    such security;

            (iv)    the occurrence of any change in the laws, rules, regulations
                    or ordinances of any jurisdiction by any present or future
                    action of any governmental authority or court amending,
                    varying, reducing or otherwise affecting, or purporting to
                    amend, vary, reduce or otherwise affect, any of the
                    Indenture Obligations and the obligations of any
                    Guaranteeing Subsidiary hereunder;

            (v)     the abstention from taking security from the Company, any
                    Guarantor, any Guaranteeing Subsidiary or any other Person
                    or from perfecting, continuing to keep perfected or taking
                    advantage of any security;

            (vi)    any loss, diminution of value or lack of enforceability of
                    any security received from the Company, any Guarantor, any
                    Guaranteeing Subsidiary or any other Person, and including
                    any other guarantees received by the Trustee;

            (vii)   any other dealings with the Company, any Guarantor, any
                    Guaranteeing Subsidiary or any other Person, or with any
                    security;

            (viii)  the Trustee's or the Holders' acceptance of compositions
                    from the Company, any Guarantor or any Guaranteeing
                    Subsidiary;

            (ix)    the application by the Holders or the Trustee of all monies
                    at any time and from time to time received from the Company,
                    any Guarantor, any Guaranteeing Subsidiary or any other
                    Person on account of any indebtedness and liabilities owing
                    by the Company, any Guarantor or any Guaranteeing Subsidiary
                    to the Trustee or the Holders, in such manner as the Trustee
                    or the Holders deems best and the changing of such
                    application in whole or in part and at any time or from time
                    to time, or any manner of application of collateral, or
                    proceeds thereof, to all or any of the Indenture
                    Obligations, or the manner of sale of any collateral;

            (x)     the release or discharge of the Company, any Guarantor or
                    any Guaranteeing Subsidiary of the Securities or of any
                    Person liable directly as surety or otherwise by operation
                    of law or otherwise for the Securities, other than an
                    express release in writing given by the Trustee, on behalf
                    of the Holders, of the liability and obligations of any
                    Guaranteeing Subsidiary hereunder;

            (xi)    any change in the name, business, capital structure or
                    governing instrument of the Company, any Guarantor or any
                    Guaranteeing

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                    Subsidiary or any refinancing or restructuring of any of the
                    Indenture Obligations;

            (xii)   the sale of the Company's, any Guarantor's or any
                    Guaranteeing Subsidiary's business or any part thereof,

            (xiii)  subject to Section 1314 of the Indenture, any merger or
                    consolidation, arrangement or reorganization of the Company,
                    any Guarantor or any Guaranteeing Subsidiary, any Person
                    resulting from the merger or consolidation of the Company,
                    any Guarantor or any Guaranteeing Subsidiary with any other
                    Person or any other successor to such Person or merged or
                    consolidated Person or any other change in the corporate
                    existence, structure or ownership of the Company, any
                    Guarantor or any Guaranteeing Subsidiary or any change in
                    the corporate relationship among the Company, any Guarantor
                    and any Guaranteeing Subsidiary, or any termination of such
                    relationship;

            (xiv)   the insolvency, bankruptcy, liquidation, winding-up,
                    dissolution, receivership, arrangement, readjustment,
                    assignment for the benefit of creditors or distribution of
                    the assets of the Company or its assets or any resulting
                    discharge of any obligations of the Company (whether
                    voluntary or involuntary) or of any Guarantor (whether
                    voluntary or involuntary) or any Guaranteeing Subsidiary
                    (whether voluntary or involuntary) or the loss of corporate
                    existence;

            (xv)    subject to Section 1314 of the Indenture, any arrangement or
                    plan of reorganization affecting the Company, any Guarantor
                    or any Guaranteeing Subsidiary;

            (xvi)   any failure, omission or delay on the part of the Company to
                    conform or comply with any term of the Indenture;

            (xvii)  any limitation on the liability or obligations of the
                    Company or any other Person under the Indenture, or any
                    discharge, termination, cancellation, distribution,
                    irregularity, invalidity or unenforceability in whole or in
                    part of the Indenture;

            (xviii) any other circumstance (including any statute of
                    limitations) that might otherwise constitute a defense
                    available to, or discharge of, the Company, any Guarantor or
                    any Guaranteeing Subsidiary; or

            (xix)   any modification, compromise, settlement or release by the
                    Trustee, or by operation of law or otherwise, of the
                    Indenture Obligations or the liability of the Company or any
                    other obligor under the Securities, in whole or in part, and
                    any refusal of payment by the Trustee, in whole or in part,
                    from

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                    any other obligor or other guarantor in connection with any
                    of the Indenture Obligations, whether or not with notice to,
                    or further assent by, or any reservation of rights against,
                    each of the Guarantors and the Guaranteeing Subsidiaries.

      (d) RIGHT TO DEMAND FULL PERFORMANCE. In the event of any demand for
payment or performance by the Trustee from any Guaranteeing Subsidiary
hereunder, the Trustee or the Holders shall have the right to demand its full
claim and to receive all dividends or other payments in respect thereof until
the Indenture Obligations have been paid in full, and the Guaranteeing
Subsidiaries shall continue to be jointly and severally liable hereunder for any
balance which may be owing to the Trustee or the Holders by the Company under
the Indenture and the Securities. The retention by the Trustee or the Holders of
any security, prior to the realization by the Trustee or the Holders of its
rights to such security upon foreclosure thereon, shall not, as between the
Trustee and any Guaranteeing Subsidiary, be considered as a purchase of such
security, or as payment, satisfaction or reduction of the Indenture Obligations
due to the Trustee or the Holders by the Company or any part thereof. Each
Guaranteeing Subsidiary, promptly after demand, will reimburse the Trustee and
the Holders for all costs and expenses of collecting such amount under, or
enforcing this Guarantee, including, without limitation, the reasonable fees and
expenses of counsel.

      (e)   WAIVERS.

            (i) Each Guaranteeing Subsidiary hereby expressly waives (to the
extent permitted by law) notice of the acceptance of this Guarantee and notice
of the existence, renewal, extension or the nonperformance, non-payment, or
non-observance on the part of the Company of any of the terms, covenants,
conditions and provisions of the Indenture or the Securities or any other notice
whatsoever to or upon the Company, any Guarantor or such Guaranteeing Subsidiary
with respect to the Indenture Obligations, whether by statute, rule of law or
otherwise. Each Guaranteeing Subsidiary hereby acknowledges communication to it
of the terms of this Supplemental Indenture, the Indenture and the Securities
and all of the provisions herein and therein contained and consents to and
approves the same. Each Guaranteeing Subsidiary hereby expressly waives (to the
extent permitted by law) diligence, presentment, protest and demand for payment
with respect to (a) any notice of sale, transfer or other disposition of any
right, title to or interest in the Securities by the Holders or in the
Indenture, (b) any release of any Guaranteeing Subsidiary from its obligations
hereunder resulting from any loss by it of its rights of subrogation hereunder
and (c) any other circumstances whatsoever that might otherwise constitute a
legal or equitable discharge, release or defense of a guarantor or surety or
that might otherwise limit recourse against such Guaranteeing Subsidiary.

            (ii) Without prejudice to any of the rights or recourses which the
Trustee or the Holders may have against the Company, each Guaranteeing
Subsidiary hereby expressly waives (to the extent permitted by law) any right to
require the Trustee or the Holders to:

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                  (a)   enforce, assert, exercise, initiate or exhaust any
                        rights, remedies or recourse against the Company, any
                        Guarantor, any Guaranteeing Subsidiary or any other
                        Person under the Indenture or otherwise;

                  (b)   value, realize upon, or dispose of any security of the
                        Company or any other Person held by the Trustee or the
                        Holders;

                  (c)   initiate or exhaust any other remedy which the Trustee
                        or the Holders may have in law or equity; or

                  (d)   mitigate the damages resulting from any default under
                        the Indenture;

before requiring or becoming entitled to demand payment from such Guaranteeing
Subsidiary under this Guarantee.

      (f) THE GUARANTEEING SUBSIDIARIES REMAIN OBLIGATED IN EVENT THE COMPANY IS
NO LONGER OBLIGATED TO DISCHARGE INDENTURE OBLIGATIONS. It is the express
intention of the Trustee and the Guaranteeing Subsidiaries that if for any
reason the Company has no legal existence, is or becomes under no legal
obligation to discharge the Indenture Obligations owing to the Trustee or the
Holders by the Company or if any of the Indenture Obligations owing by the
Company to the Trustee or the Holders becomes irrecoverable from the Company by
operation of law or for any reason whatsoever, this Guarantee and the covenants,
agreements and obligations of the Guaranteeing Subsidiaries contained in this
Section Two shall nevertheless be binding upon the Guaranteeing Subsidiaries, as
principal debtor, until such time as all such Indenture Obligations have been
paid in full to the Trustee and all Indenture Obligations owing to the Trustee
or the Holders by the Company have been discharged, or such earlier time as
Section 402 of the Indenture shall apply to the Securities and the Guarantors
and the Guaranteeing Subsidiaries shall be responsible for the payment thereof
to the Trustee or the Holders upon demand.

      (g)  FRAUDULENT CONVEYANCE, CONTRIBUTION, SUBROGATION.

            (i) Each Guaranteeing Subsidiary, and by its acceptance of the
Indenture each Holder, hereby confirms that it is the intention of all such
parties that the Guarantee by such Guaranteeing Subsidiary pursuant to its
Guarantee not constitute a fraudulent transfer or conveyance for purposes of the
Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent
Transfer Act or any similar federal or state law. To effectuate the foregoing
intention, the Holders and such Guaranteeing Subsidiary hereby irrevocably agree
that the obligations of such Guaranteeing Subsidiary under its Guarantee shall
be limited to the maximum amount which, after giving effect to all other
contingent and fixed liabilities of such Guaranteeing Subsidiary, and after
giving effect to any collections from or payments made by or on behalf of any
other Guarantor or Guaranteeing Subsidiary in respect of the obligations of such
other Guarantor or Guaranteeing Subsidiary under its Guarantee or pursuant to
its contribution obligations hereunder and under the Indenture, will result in
the obligations of such Guaranteeing Subsidiary under its Guarantee not
constituting such fraudulent transfer or conveyance.

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            (ii) Each Guaranteeing Subsidiary that makes a payment or
distribution under its Guarantee shall be entitled to a contribution from each
other Guaranteeing Subsidiary, if any, in a pro rata amount based on the net
assets of each Guarantor and Guaranteeing Subsidiary, determined in accordance
with GAAP.

            (iii) Each Guaranteeing Subsidiary hereby waives all rights of
subrogation or contribution, whether arising by contract or operation of law
(including, without limitation, any such right arising under federal bankruptcy
law) or otherwise by reason of any payment by it pursuant to the provisions of
this Section Two until payment in full of all Indenture Obligations.

      (h) GUARANTEE IS IN ADDITION TO OTHER SECURITY. This Guarantee shall be in
addition to and not in substitution for any other guarantees or other security
which the Trustee may now or hereafter hold in respect of the Indenture
Obligations owing to the Trustee or the Holders by the Company and (except as
may be required by law) the Trustee shall be under no obligation to marshal in
favor of each of the Guaranteeing Subsidiaries any other guarantees or other
security or any moneys or other assets which the Trustee may be entitled to
receive or upon which the Trustee or the Holders may have a claim.

      (i) RELEASE OF SECURITY INTERESTS. Without limiting the generality of the
foregoing and except as otherwise provided herein and in the Indenture, each
Guaranteeing Subsidiary hereby consents and agrees, to the fullest extent
permitted by applicable law, that the rights of the Trustee hereunder, and the
liability of the Guaranteeing Subsidiaries hereunder, shall not be affected by
any and all releases for any purpose of any collateral, if any, from the Liens
and security interests created by any collateral document and that this
Guarantee shall continue to be effective or be reinstated, as the case may be,
if at any time any payment of any of the Indenture Obligations is rescinded or
must otherwise be returned by the Trustee upon the insolvency, bankruptcy or
reorganization of the Company or otherwise, all as though such payment had not
been made.

      (j) NO BAR TO FURTHER ACTIONS. Except as provided by law, no action or
proceeding brought or instituted under this Section 2, Article Thirteen of the
Indenture and this Guarantee and no recovery or judgment in pursuance thereof
shall be a bar or defense to any further action or proceeding which may be
brought under Section Two, Article Thirteen of the Indenture and this Guarantee
by reason of any further default or defaults under Section Two, Article Thirteen
of the Indenture and this Guarantee or in the payment of any of the Indenture
Obligations owing by the Company.

      (k) FAILURE TO EXERCISE RIGHTS SHALL NOT OPERATE AS A WAIVER, NO
SUSPENSION OF REMEDIES.

            (i) No failure to exercise and no delay in exercising, on the part
of the Trustee or the Holders, any right, power, privilege or remedy under this
Section 2, Article Thirteen of the Indenture and this Guarantee shall operate as
a waiver thereof, nor shall any single or partial exercise of any rights, power,
privilege or remedy preclude any other or further exercise thereof,

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or the exercise of any other rights, powers, privileges or remedies. The rights
and remedies herein provided for are cumulative and not exclusive of any rights
or remedies provided in law or equity.

            (ii) Nothing contained in this Section 2 shall limit the right of
the Trustee or the Holders to take any action to accelerate the maturity of the
Securities pursuant to Article Five of the Indenture or to pursue any rights or
remedies hereunder or under applicable law.

      (l)  TRUSTEE'S DUTIES; NOTICE TO TRUSTEE.

            (i) Any provision in this Section 2 or elsewhere in the Indenture
allowing the Trustee to request any information or to take any action authorized
by, or on behalf of any Guaranteeing Subsidiary, shall be permissive and shall
not be obligatory on the Trustee except as the Holders may direct in accordance
with the provisions of the Indenture or where the failure of the Trustee to
request any such information or to take any such action arises from the
Trustee's negligence, bad faith or willful misconduct.

            (ii) The Trustee shall not be required to inquire into the
existence, powers or capacities of the Company, any Guarantor, any Guaranteeing
Subsidiary or the officers, directors or agents acting or purporting to act on
their respective behalf.

      (m) SUCCESSORS AND ASSIGNS. All terms, agreements and conditions of this
Section 2 shall extend to and be binding upon each Guaranteeing Subsidiary and
its successors and permitted assigns and shall enure to the benefit of and may
be enforced by the Trustee and its successors and assigns, PROVIDED, HOWEVER,
that the Guaranteeing Subsidiaries may not assign any of their rights or
obligations hereunder other than in accordance with Article Eight of the
Indenture.

      (n)  RELEASE OF GUARANTEE.

            (i) Concurrently with the payment in full of all of the Indenture
Obligations, the Guarantors shall be released from and relieved of their
obligations under this Section 2. Upon the delivery by the Company to the
Trustee of an Officers' Certificate and, if requested by the Trustee, an Opinion
of Counsel to the effect that the transaction giving rise to the release of this
Guarantee was made by the Company in accordance with the provisions of the
Indenture and the Securities, the Trustee shall execute any documents reasonably
required in order to evidence the release of the Guaranteeing Subsidiaries from
their obligations under this Guarantee. If any of the Indenture Obligations are
revived and reinstated after the termination of this Guarantee, then all of the
obligations of the Guaranteeing Subsidiaries under this Guarantee shall be
revived and reinstated as if this Guarantee had not been terminated until such
time as the Indenture Obligations are paid in full, and each Guaranteeing
Subsidiary shall enter into an amendment to this Guarantee, reasonably
satisfactory to the Trustee, evidencing such revival and reinstatement.

            (ii) This Guarantee shall terminate with respect to each
Guaranteeing Subsidiary and shall be automatically and unconditionally released
and discharged as provided in Section 1013(c) of the Indenture.

                                       11
<PAGE>
      (o) EXECUTION AND DELIVERY OF GUARANTEE. Each of the Guaranteeing
Subsidiaries agrees that their Guarantee hereunder shall remain in full force
and effect notwithstanding any failure to endorse on each Note a notation of
their Guarantee. Pursuant to Section 1315(b) of the Indenture, each Guaranteeing
Subsidiary agrees to be subject to the provisions (including the representations
and warranties) of the Indenture as of the date of this Supplemental Indenture
as if named as a Guarantor therein.

      SECTION 3. AMENDMENT TO SECTION 1314 OF THE INDENTURE. The cross-reference
at the end of the second paragraph of Section 1314 of the Indenture shall be
amended to read as a cross reference to Section 1013(c) of the Indenture. All
other terms and provisions of the Indenture, except as herein amended and
supplemented, shall remain in full force and effect.

      SECTION 4. NEW YORK LAW TO GOVERN. THE INTERNAL LAW OF THE STATE OF NEW
YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS FIRST SUPPLEMENTAL INDENTURE BUT
WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT
THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED
THEREBY.

      SECTION 5. 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.

      SECTION 6. EFFECT OF HEADINGS. The Section headings herein are for
convenience only and shall not affect the construction hereof.

      SECTION 7. THE TRUSTEE. The Trustee shall not be responsible in any manner
whatsoever for or in respect of the validity or sufficiency of this Supplemental
Indenture or for or in respect of the recitals contained herein, all of which
recitals are made solely by the Guaranteeing Subsidiaries and the Company.

                    [SIGNATURES APPEAR ON FOLLOWING PAGES]

                                       12
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this Supplemental
Indenture to be duly executed and attested, all as of the 31st day of December,
1999.

                        THE COMPANY:
                        ------------

                        SONIC AUTOMOTIVE, INC.

                        By:  /s/ B. Scott Smith
                           -----------------------
                        Name:  B. Scott Smith
                        Title: President

                        GUARANTEEING SUBSIDIARIES:
                        --------------------------

                        SONIC AUTOMOTIVE-BONDESEN, INC.
                        SONIC - 1720 MASON AVE., DB, LLC
                        SONIC AUTOMOTIVE - 6008 N. DALE MABRY, FL, INC.
                        SONIC AUTOMOTIVE - 9103 E. INDEPENDENCE, NC, LLC
                        SONIC - 2185 CHAPMAN RD., CHATTANOOGA, LLC
                        SONIC - CLASSIC DODGE, INC.
                        SONIC - FM AUTOMOTIVE, LLC
                        SONIC - FM, INC.
                        SONIC - FM NISSAN, INC.
                        SONIC - FM VW, INC.
                        SONIC - FREELAND, INC.
                        SONIC - INTEGRITY DODGE LV, LLC
                        SONIC - LLOYD NISSAN, INC.
                        SONIC - LLOYD PONTIAC-CADILLAC, INC.
                        SONIC -MANHATTAN FAIRFAX, INC.
                        SONIC - MANHATTAN WALDORF, INC.
                        SONIC - NEWSOME AUTOMOTIVE, LLC
                        SONIC - NEWSOME CHEVROLET WORLD, INC.
                        SONIC - NEWSOME OF FLORENCE, INC.
                        SONIC - NORTH CHARLESTON, INC.
                        SONIC - NORTH CHARLESTON DODGE, INC.
                        SONIC - ROCKVILLE IMPORTS, INC.
                        SONIC - ROCKVILLE MOTORS, INC.
                        SONIC - SHOTTENKIRK, INC.
                        SONIC - SUPERIOR OLDSMOBILE, LLC
                        SONIC OF TEXAS, INC.
                        SONIC-VOLVO LV, LLC

                      [SIGNATURES CONTINUED ON NEXT PAGE]
                        SONIC - WILLIAMS BUICK, INC.

                                       13
<PAGE>
                        SONIC - WILLIAMS CADILLAC, INC.
                        FIRSTAMERICA AUTOMOTIVE, INC.
                        AUTOBAHN, INC.
                        DON LUCAS INTERNATIONAL, INC.
                        FA SERVICE CORPORATION
                        FAA AUTO FACTORY, INC.
                        FAA BEVERLY HILLS, INC.
                        FAA CAPITOL N, INC.
                        FAA CONCORD H, INC.
                        FAA CONCORD N, INC.
                        FAA CONCORD T, INC.
                        FAA DEALER SERVICES, INC.
                        FAA DUBLIN N, INC.
                        FAA DUBLIN VWD, INC.
                        FAA HOLDING CORP.
                        FAA LAS VEGAS H, INC.
                        FAA MARIN D, INC.
                        FAA MARIN F, INC.
                        FAA MONTEREY F, INC.
                        FAA POWAY D, INC.
                        FAA POWAY G, INC.
                        FAA POWAY H, INC.
                        FAA POWAY T, INC.
                        FAA SAN BRUNO, INC.
                        FAA SANTA MONICA V, INC.
                        FAA SERRAMONTE H, INC.
                        FAA SERRAMONTE L, INC.
                        FAA SERRAMONTE, INC.
                        FAA STEVENS CREEK, INC.
                        FAA TORRANCE CPJ, INC.
                        FAA WOODLAND HILLS VW, INC.
                        FRANCISCAN MOTORS, INC.
                        KRAMER MOTORS INCORPORATED
                        LUCAS DEALERSHIP GROUP, INC.
                        SANTA CLARA IMPORTED CARS, INC.
                        SMART NISSAN, INC.
                        STEVENS CREEK CADILLAC, INC.
                        TRANSCAR LEASING, INC.
                        WINDWARD, INC.
                        SONIC - WILLIAMS IMPORTS, INC.

                      [SIGNATURES CONTINUED ON NEXT PAGE]

                        SONIC - WILLIAMS MOTORS, LLC
                        VILLAGE IMPORTED CARS, INC.

                                       14
<PAGE>
                  By: /s/ B. Scott Smith
                      ----------------------------------
                  Name:  B. Scott Smith
                  Title: Authorized Signatory

                  Attest: /s/ Theodore M. Wright
                          ------------------------------
                  Name:  Theodore M. Wright
                  Title: Authorized Signatory

                  SONIC - GLOBAL IMPORTS, L.P.

                  By:   Sonic Automotive of Georgia, Inc., its general partner

                  By: /s/ B. Scott Smith
                     -----------------------------------
                  Name:  B. Scott Smith
                  Title: Vice President

                  SONIC - SAM WHITE OLDSMOBILE, L.P.
                  SONIC - SAM WHITE NISSAN, L.P.
                  SONIC - LUTE RILEY, L.P.
                  SONIC - READING, L.P.
                  SONIC - CAMP FORD, L.P.
                  SONIC AUTOMOTIVE - 5221 I-10 EAST, TX, L.P.
                  SONIC AUTOMOTIVE - 4701 I-10 EAST, TX, L.P.
                  SONIC AUTOMOTIVE - 3401 N. MAIN, TX, L.P.
                  SONIC AUTOMOTIVE OF TEXAS, L.P.

                  By:   Sonic of Texas, Inc. their general partner

                  By: /s/ B. Scott Smith
                      -----------------------------------
                  Name:  B. Scott Smith
                  Title: Vice President

                [SIGNATURES CONTINUED ON NEXT PAGE]

                                       15
<PAGE>
                        GUARANTORS:
                        -----------

                        TOWN AND COUNTRY FORD, INC.
                        MARCUS DAVID CORPORATION
                        FRONTIER OLDSMOBILE-CADILLAC, INC.
                        SONIC DODGE, LLC
                        SONIC CHRYSLER-PLYMOUTH-JEEP, LLC
                        FORT MILL FORD, INC.
                        TOWN AND COUNTRY CHRYSLER-PLYMOUTH-JEEP OF
                        ROCK HILL, INC.
                        FORT MILL CHRYSLER-PLYMOUTH-DODGE, INC.
                        SONIC AUTOMOTIVE OF NEVADA, INC.
                        SONIC AUTOMOTIVE OF TENNESSEE, INC.
                        SONIC AUTOMOTIVE - 6025 INTERNATIONAL DRIVE, LLC
                        SONIC AUTOMOTIVE OF NASHVILLE, LLC
                        SONIC AUTOMOTIVE OF CHATTANOOGA, LLC
                        TOWN AND COUNTRY JAGUAR, LLC
                        TOWN AND COUNTRY CHRYSLER-PLYMOUTH-JEEP, LLC
                        TOWN AND COUNTRY DODGE OF CHATTANOOGA, LLC
                        SONIC AUTOMOTIVE - 2490 SOUTH LEE HIGHWAY, LLC
                        TOWN AND COUNTRY FORD OF CLEVELAND, LLC
                        FREEDOM FORD, INC.
                        SONIC AUTOMOTIVE - HWY. 153 AT SHALLOWFORD
                        ROAD, CHATTANOOGA, INC.
                        SONIC AUTOMOTIVE 5260 PEACHTREE INDUSTRIAL
                        BLVD., LLC
                        SONIC AUTOMOTIVE OF GEORGIA, INC.
                        SONIC AUTOMOTIVE - CLEARWATER, INC.
                        SONIC AUTOMOTIVE 21699 U.S. HWY 19 N., INC.
                        SONIC AUTOMOTIVE COLLISION CENTER OF
                        CLEARWATER, INC.
                        SONIC AUTOMOTIVE - 1400 AUTOMALL DRIVE,
                        COLUMBUS, INC.
                        SONIC AUTOMOTIVE - 1455 AUTOMALL DRIVE,
                        COLUMBUS, INC.
                        SONIC AUTOMOTIVE - 1495 AUTOMALL DRIVE,
                        COLUMBUS, INC.
                        SONIC AUTOMOTIVE - 1500 AUTOMALL DRIVE,
                        COLUMBUS, INC.
                        SONIC AUTOMOTIVE - 3700 WEST BROAD STREET,
                        COLUMBUS, INC.

                      [SIGNATURES CONTINUED ON NEXT PAGE]

                                       16
<PAGE>
                   SONIC AUTOMOTIVE - 4000 WEST BROAD STREET,
                         COLUMBUS, INC.
                   SONIC AUTOMOTIVE  2424 LAURENS RD.,
                         GREENVILLE, INC.
                   SONIC AUTOMOTIVE 2752 LAURENS RD.,
                         GREENVILLE, INC.
                   SONIC AUTOMOTIVE - 5585 PEACHTREE
                         INDUSTRIAL BLVD.., LLC
                   CAPITOL CHEVROLET AND IMPORTS, INC.
                   SONIC AUTOMOTIVE - 1919 N. DIXIE HWY., NSB, INC.
                   SONIC AUTOMOTIVE - 1307 N. DIXIE HWY., NSB, INC.
                   SONIC AUTOMOTIVE - 3741 S. NOVA RD., PO, INC.
                   SONIC AUTOMOTIVE - 241 RIDGEWOOD AVE., HH, INC.
                   SONIC AUTOMOTIVE - 1720 MASON AVE., DB, INC.

                   By: /s/ B. Scott Smith
                      -----------------------------
                   Name:  B. Scott Smith
                   Title: Authorized Signatory

                   Attest: /s/ Theodore M. Wright
                          --------------------------
                   Name:  Theodore M. Wright
                   Title: Authorized Signatory

                   SONIC PEACHTREE INDUSTRIAL BLVD., L.P.

                   By: Sonic Automotive of Georgia, Inc., its general partner

                         By:  /s/ B. Scott Smith
                             ------------------------
                         Name:  B. Scott Smith
                         Title: Vice President

                 [SIGNATURES CONTINUED ON NEXT PAGE]

                                       17
<PAGE>
                        TRUSTEE:
                        --------

                        U.S. BANK TRUST NATIONAL ASSOCIATION,
                              as Trustee.

                  By:  /S/ LAURIE HOWARD
                      ----------------------------------------
                        Authorized Signatory

                                       18Exhibit 10.2

                         EXECUTIVE EMPLOYMENT AGREEMENT

         THIS AGREEMENT ("Agreement"), dated December10, 1999, between Sonic
Automotive, Inc. ("Sonic", "Employer" or "Corporation"), and Thomas A. Price
("Executive") becomes effective with the consummation of Sonic's acquisition of
not less than 90% of each class of outstanding capital stock of FirstAmerica
Automotive, Inc. (the "Acquisition"). This Agreement's purpose is to establish
in writing all the terms and conditions of that employment.

SECTION 1.  POSITION AND DUTIES.

Executive shall be employed by the Corporation as a Vice-Chairman, Chairman of
the Management Committee and a member of the Board of Directors, reporting to
the Board of Directors and/or O. Bruton Smith. Subject to the supervision and
control of the Board of Directors of the Corporation (the "Board"), Executive
shall use his best efforts to do and perform on a full-time basis all services
and acts necessary or advisable to fulfill the duties and responsibilities of
his position and shall render such services on the terms set forth herein. In
addition, Executive shall have such other executive and managerial powers and
duties with respect to the Corporation as may be assigned to him by the Board,
which include but are not limited to primary executive responsibility for
manufacturer relations, primary executive responsibility for acquisitions review
and generation of western acquisition opportunities and primary operations
executive participant in investor relations. Executive's principal place of
employment shall be San Francisco, California.

SECTION 2.  TERM.

The term of this Agreement shall be for a three (3) year period commencing with
the closing of the Acquisition (the "Commencement Date"), unless Executive's
employment and this Agreement are earlier terminated pursuant to Section 5 or
are extended by mutual written agreement.

SECTION 3. BASIC COMPENSATION.

The Employer shall pay compensation to the Executive as set forth herein.

         a.    Salary. An annual base salary of $600,000 (six hundred thousand
         dollars), $50,000 (Fifty thousand dollars) per month gross pay per
         month will be paid to Executive, subject to applicable withholding, in
         accordance with the Corporation's normal payroll procedures (the "Base
         Salary"). Such Base Salary shall be reviewed annually and modified (but
         not decreased) as determined by the sole discretion of the
         Corporation's Board of Directors.

         b.    Benefits. The Corporation shall provide the Executive with
         employee benefits on the same basis as other executive officers of the
         Corporation, including O. Bruton Smith (excluding company automobiles,
         which is covered in Section 3.d below). Executive shall have the
         opportunity to participate in and to receive benefits under any of the
         Corporation's Executive benefit plans, including the major medical,
         dental, vision and hospitalization insurance coverage, disability
         insurance, life insurance, automobile insurance and similar benefits,
         including any retirement plan maintained by the Corporation, for which
         he is eligible in accordance with its terms. In addition, Executive
         shall be entitled to the benefits afforded to other members of senior
         management under the Corporation's vacation, holiday and business
         expense reimbursement policies. Executives date of hire for benefit
         purposes shall be March 1, 1976, the Executive's original date of hire
         with Executive's acquired employer.

<PAGE>

         c.     Additional Salary and Bonus.  For each calendar year during the
         term of this Agreement, Executive shall earn an annual salary and bonus
         which shall raise his entire cash compensation package to a total
         aggregate sum which is $50,000 (fifty thousand dollars)less than the
         entire cash compensation package of O. Bruton Smith as Chairman and
         CEO of Sonic Automotive, Inc. for such calendar year.

         d.     Corporate Vehicle: Executive will be provided a corporate
         vehicle allowance of Twelve Hundred Dollars ($1200.00) per month plus
         associated operation expenses.

         e.     Expense Reimbursement:  Upon receipt of proper documentation
         establishing the amount of such expenses, the Corporation shall
         reimburse Executive for any reasonable business expenses incurred.

SECTION 4.  STOCK OPTIONS.

Executive shall be granted (the "Initial Option") an option to purchase 300,000
shares of the Corporation's Common Stock at a strike price per share equal to
the New York Stock Exchange closing price on the date of close of the
Acquisition. Provided Executive remains an employee of the Corporation, this
option shall vest at the rate of 100,000 shares per year on each of the first,
second and third anniversaries of the Commencement Date. In the event that
Employee is terminated Without Cause (as defined in Section 7.c below) during a
year of the term of this Agreement, then Employee shall become immediately
vested pro rata at the rate of 8,333.33 shares per month during such year to the
date of termination.

The Initial Grant shall be made pursuant to the Sonic Automotive, Inc. 1997
Stock Option Plan Amended and Restated as of June 8, 1999 (the "Stock Option
Plan") and, except as provided above, shall be subject to all of the provisions
and terms of the Stock Option Plan. Executive shall be eligible for further
grants of options under the Stock Option Plan at times and in amounts which are
consistent with the grants of options for similar employees of Corporation (not
including O. Bruton Smith). Any such further grants of options under the Stock
Option Plan shall be subject to ratification at the discretion of Employer's
Board of Directors. The terms and conditions of any further options granted to
Executive pursuant to the Stock Option Plan shall otherwise be governed by the
provisions of the Stock Option Plan.

SECTION 5.  RESTRICTIVE COVENANTS.

For purposes of this Agreement "Restrictive Covenants" mean the provisions of
this Section 5. It is stipulated and agreed that the Corporation is engaged in
the business of owning and operating automobile and/or truck dealerships, which
business includes, without limitation, the marketing and selling of new and used
vehicles, the servicing of automobiles and trucks, collision repair services and
the sale of financing and insurance products to automobile customers (the
"Business"). It is further stipulated and agreed that as a result of Executive's
employment by the Corporation, and as a result of Executive's continued
employment hereunder, Executive has and will have access to valuable, highly
confidential, privileged and proprietary information relating to the
Corporation's Business, including, without limitation, existing and future
inventory information, customer lists, sales methods and techniques, costs and
costing methods, pricing techniques and strategies, sales agreements with
customers, profits and product line profitability information, unpublished
present and future marketing strategies and promotional programs, and other
information regarded by the Corporation as proprietary and confidential (the
"Confidential Information"). Confidential information shall not include
information available in the public domain. It is further acknowledged that
unauthorized use or disclosure by Employee of any of the Confidential
Information would seriously damage the Corporation in its Business.

<PAGE>

In consideration of the provisions of this Section 5, the compensation and
benefits referred to in Sections 3 and 4 hereof, which Executive acknowledges
are legally sufficient to support enforceability by the Corporation of the
Restrictive Covenants against Executive, Executive agrees as follows:

         (a)      During the term of this Agreement and after its termination or
                  expiration for any reason, Executive will not, without
                  Corporations' prior written consent, divulge, disclose,
                  furnish or make accessible to any third person, company or
                  other entity, any aspect of the Confidential Information
                  (other than as required in the ordinary discharge of
                  Executive's duties hereunder).

         (b)      During the term of this Agreement and, with respect to clauses
                  (i) and (iii) below only, for a period of one year after the
                  date of the expiration or termination of this Agreement for
                  any reason (the "Restrictive Period"), Executive shall not,
                  directly or indirectly (general media advertising excluded):

                  (i)      Solicit the employment of any person, who at any time
                           during the twelve (12) calendar months immediately
                           preceding the termination or expiration of this
                           Agreement, was employed by the Corporation or any of
                           its subsidiaries;

                  (ii)     Provide or solicit, except as provided herein, the
                           provision of products or services, similar to those
                           provided by Corporation or any of its subsidiaries to
                           any person or entity who purchase or leased
                           automobiles, trucks, parts, supplies, inventory or
                           services at any time during the twelve (12) calendar
                           months immediately preceding the termination or
                           expiration of this Agreement for any reason;

                  (iii)    Interfere or attempt to interfere with the terms or
                           other aspects of the relationship between the
                           Corporation or any of its subsidiaries and any person
                           or entity from who the Corporation or any of its
                           subsidiaries has purchased automobiles, trucks,
                           parts, supplies, inventory or services at any time
                           during the twelve (12) calendar months immediately
                           preceding the termination or expiration of this
                           Agreement for any reason;

                  (iv)     Provide information to, solicit or sell for,
                           organize or own any interest in (either directly or
                           through any parent, affiliate or subsidiary
                           corporation, partnership, or other entity), or become
                           employed or engaged by, or act as agent for, any
                           person, corporation  or other entity that is directly
                           or indirectly engaged in a business which is
                           substantially similar to the Business or competitive
                           with the Corporation's business; provided, however,
                           that nothing herein shall preclude the Executive from
                           owning (A) a one-third (1/3 rd) interest in Sunnyvale
                           Acura, Sunnyvale, California with buy-sell provisions
                           with other partners, (B) having a significant
                           interest in DSW Associates, Inc., d/b/a AutoTown,  a
                           California Corporation in the automotive computer
                           software and technology business, (C) having an
                           interest in Imotors, Inc. an automotive internet
                           company or (D) acquiring a one hundred percent (100%)
                           interest in Jaguar Marin, San Rafael, California, so
                           long as such ownership and activities do not prevent
                           the Executive from performing his obligations and
                           duties under this Agreement.

In the event that the term of this Agreement shall be extended, these
Restrictive Covenants shall apply during such extended term and, where
applicable, the one year period thereafter. These Restrictive Covenants shall
survive the termination of this Agreement in accordance with their terms.

<PAGE>

SECTION 6.  RETURN OF CORPORATION PROPERTY.

Immediately upon the termination of Executive's employment, Executive shall
return to the Corporation all of its property, equipment, documents, records,
lists, files and any and all other Corporation materials including, without
limitation, computerized or electronic information, that is in Executive's
possession (the "Corporation Property") by delivering the Corporation Property
to the Corporation's principal executive offices on or before the date of such
term. It is specifically acknowledged that all art work located at 601 Brannan
St., San Francisco, California at date of this agreement is owned exclusively by
Executive. Unless otherwise agreed by the Corporation in writing, Executive
shall not retain any Corporation Property or any copies thereof.

SECTION 7.  TERMINATION OF EMPLOYMENT.  This Agreement shall terminate as
follows:

         a.       Death or Disability. The Executive's employment shall
                  terminate automatically upon theExecutive's  death during the
                  Employment Period. If the Corporation determines in good faith
                  that the Executive becomes unable to perform the essential
                  functions of his position, with or without reasonable
                  accommodation, and that such inability is likely to continue
                  for a period of more than six (6) months, then the Corporation
                  shall give to the Executive written  notice of its intention
                  to terminate the Executive's employment. In such event, the
                  Executive's employment with the Corporation shall terminate
                  effective on the thirtieth (30th) day after receipt of such
                  notice by the Executive provided that, within the thirty (30)
                  days after such receipt, the Executive shall not have returned
                  to full time performance of the Executive's duties.

         b.       Cause. The Corporation may terminate the Executive's
                  employment at any time, without notice and with immediate
                  effect for Cause.  For purposes of this Agreement "Cause"
                  shall mean

                          (i)      A material breach by the Executive of the
                                   Executive's obligations as set forth herein
                                   (other than due to disability) which material
                                   breach is not remedied within fourteen (14)
                                   business days after receipt of written notice
                                   from the Corporation specifying such a
                                   breach;

                          (ii)     The conviction of the Executive of a felony;

                          (iii)    Willful failure of Executive to comply with
                                   reasonable directives of the Corporation's
                                   Board of Directors;

                          (iv)     Chronic absenteeism of the Executive which
                                   continues for a 30 day period after written
                                   notice by the Corporation; or

                          (v)      Willful misconduct of Executive resulting in
                                   damage to the Corporation.

         c.       Without Cause. Corporation may terminate this Agreement at any
                  time, for any reason other than for Cause or the Executive's
                  death or disability, or without any reason. Any such
                  termination for the Corporation pursuant to this Section 7.c
                  shall be deemed a termination "Without Cause". Executive may
                  also terminate this Agreement at any time for any reason, or
                  without any reason.

         d.       Payment Upon Termination Without Cause. If Executive's
                  employment is terminated by the Corporation Without Cause,
                  Executive shall be entitled to the following separation
                  benefits:

<PAGE>

                         (i)     Continuation of Executive's Base Salary at the
                                 rate in effect on the date of termination for a
                                 period of one year, such salary continuation
                                 payments to be made in twelve equal monthly
                                 installments, commencing with the first month
                                 after such termination occurs, in accordance
                                 with the Corporation's ordinary payroll
                                 procedures without regard to whether Executive
                                 obtains alternative employment in the interim;
                                 and

                         (ii)    Payment of a bonus for the year in which the
                                 termination occurs in an amount not less than
                                 fifty percent (50%) of the then current rate of
                                 Base Salary, with such bonus to be made in
                                 twelve equal monthly installments, commencing
                                 with the first month after such termination
                                 occurs.

It shall be a condition to the Corporation's obligation to pay the Base Salary
and bonus contemplated above that Executive continue to observe the Restrictive
Covenants in clauses (i) and (iii) of Section 5.b during such twelve month
period. Payment of such Base Salary and bonus contemplated above shall be in
lieu of all other severance benefits to which Executive would otherwise be
entitled.

         e.       Resignation for Good Reason. For purposes of this Agreement,
                  Executive's resignation for Good Reason shall constitute a
                  termination Without Cause. For purposes of this Agreement,
                  "Good Reason" means any of the following conditions, which
                  notice must be given by the Executive within 30 days after the
                  occurrence of any such condition (failure to timely give such
                  notice to constitute a waiver of Executive's right to
                  terminate for Good Reason):

                          (i)      a decrease in Executive's base salary and/or
                                   a material  decrease in Executive's bonus
                                   plan or Executive benefits;

                          (ii)     a material, adverse change in Executive's
                                   title, authority,  responsibilities or
                                   duties;

                          (iii)    any material breach by the Corporation of any
                                   provision of this Agreement, which breach is
                                   not cured within fourteen (14) days following
                                   written notice of such breach from Executive;
                                   or,

                          (iv)     if there is a Change in Control of Employer
                                   during the term of this  Agreement. As used
                                   herein, a "Change of Control" shall mean:

                                   (A)      a sale of all or substantially all
                                            of the assets of the Corporation to
                                            a person who is not an Affiliate (as
                                            used herein the term "Affiliate"
                                            means a person or entity which
                                            controls, is controlled by or is
                                            under common control with the
                                            Corporation and the concept of
                                            control means the ownership of
                                            voting securities representing more
                                            than 50% of the voting power of the
                                            entity in question);

                                   (B)      a merger, consolidation or
                                            reorganization of the Corporation as
                                            a result of which stockholders of
                                            the Corporation holding more than
                                            50% of the voting power of all
                                            voting securities of the Corporation
                                            immediately before the merger,
                                            consolidation or reorganization do
                                            not hold more than 50% of the voting
                                            power

<PAGE>

                                            of all voting securities of the
                                            Corporation after the merger,
                                            consolidation or reorganization;

                                   (C)      the acquisition by a person or group
                                            of persons who are not Affiliates of
                                            the Corporation in one transaction
                                            or a series of related transactions
                                            of voting securities which have more
                                            than 50% of the voting power of all
                                            voting securities of the
                                            Corporation;

                                   (D)      if the Chairman in place at the time
                                            of the execution of this Agreement
                                            either resigns or is removed from
                                            office as Chairman of the Board of
                                            Directors;

         f.       Upon termination of this Agreement for any reason or upon
                  termination of Executive's employment with Corporation for any
                  reason, Executive will resign all directorships he may then
                  hold with Corporation or any of its subsidiaries.

SECTION 8.  BENEFITS UPON TERMINATION OTHER THAN A TERMINATION WITHOUT CAUSE.

In the event Executive terminates this Agreement under Section 7.c above or
voluntarily resigns from his employment with the Corporation, or in the event
that Executive's employment terminates for Cause or as a result of his death or
disability or as a result of the expiration of the term of this Agreement,
Executive shall be entitled to no compensation or benefits from the Corporation
other than his Base Salary under Section 3.a and his benefits under Section 3.b
above until the date of termination.

SECTION 9.  REMEDY FOR BREACH.

The Executive acknowledges that a violation of any of the provisions of this
Agreement, including its restrictive covenants, will cause irreparable damage to
the Employer, its successors and assigns. The Executive consents that any
violation shall entitle the Employer or its successors and assigns, in addition
to any other rights or remedies it, or they, may have, to an immediate
injunction restraining any violation.

SECTION 10.  NOTICES.

All notices, requests, demands, and other communications that are required or
may be given under this Agreement shall be in writing and shall be deemed to
have been duly given if delivered personally or sent by registered or certified
mail, return receipt requested, postage prepaid addressed to the intended
recipient as follows or at such other address as is provided by either party to
the other:

<PAGE>

    If to the Corporation:                With a copy to:

    Sonic Automotive, Inc.                Parker, Poe, Adams & Bernstein L.L.P.
    5401 East Independence Boulevard      2500 Charlotte Plaza
    P.O. Box 18747                        Charlotte, NC  28244
    Charlotte, NC  28218                  Telecopier No.: (704) 334-4706
    Telecopier No.: (704) 532-3323        Attn:  Edward W. Wellman, Jr.
    Attention:  Chief Financial Officer

    If to Executive:                      With a copy to:

    Mr. Thomas A. Price                   Gray, Cary, Ware & Friedenrich LLP
    55 Peninsula Drive                    400 Hamilton Avenue
    Belvedere, CA 94920                   Palo Alto, CA  94301-1825
    Telecopier No. (415) 435-2133         Telecopier No.: (650) 327-3699
                                          Attn:  Andrew Zeif

SECTION 11. GOVERNING LAWS.

This Agreement shall be construed and enforced in accordance with the laws of
the State of California excluding its conflict of law provisions.

SECTION 12.  ENTIRE AGREEMENT.

This Agreement contains the entire agreement among the parties regarding
Executive's pay plan and the employment relationship. All prior negotiations,
agreements, and understandings are superseded. This Agreement may not be amended
or revised except by a writing signed by all the parties.

SECTION 13.  BINDING EFFECT; ASSIGNMENT.

This Agreement shall be binding upon and inure to the benefit of the heirs,
legal representatives, and successors of the respective parties; provided
however, that this Agreement and all its rights may not be assigned by any party
except by or with the written consent of the other parties, except that the
Corporation shall have the right to assign this Agreement to an assignee who
acquires all or substantially all of the business and assets of the Corporation.

SECTION 14.  SURVIVAL.

In the event of termination of Executive's employment and this Agreement for any
reason by Executive or the Corporation, Executive and/or the Corporation, as the
case may be, nevertheless shall continue to be bound by the terms and conditions
set forth in Section 13 herein.

<PAGE>

SECTION 15.  ATTORNEYS' FEES.

The prevailing party shall be entitled to recover from the losing party its
attorneys' fees and costs incurred in any action brought to enforce any right
arising out of this Agreement.

IT IS SO UNDERSTOOD AND AGREED:

EXECUTIVE:

                                 Signature:    /s/ Thomas A. Price
                                               -------------------
                                               Thomas A. Price

EMPLOYER:

                                                Sonic Automotive, Inc.

                                                By: /s/ O. Bruton Smith
                                                    -------------------
                                                Its: Chairman and Chief
                                                     Executive Officer

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