Document:

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                                                                    Exhibit 4.11

                               Merrill Lynch & Co.
                      Merrill Lynch, Pierce, Fenner & Smith
                                  Incorporated
                         Banc of America Securities LLC

                          REGISTRATION RIGHTS AGREEMENT

This Registration Rights Agreement (the "Agreement") is made and entered into
this 19/th/ day of November, 2001, among Sonic Automotive, Inc., a Delaware
corporation (the "Company"), the guarantors set forth on the signature page
hereto (each a "Guarantor" and collectively, the "Guarantors"), Merrill Lynch,
Pierce, Fenner & Smith, Incorporated and Banc of America Securities LLC
(collectively, the "Initial Purchasers").

          This Agreement is made pursuant to the Purchase Agreement, dated
November 8, 2001 among the Company, the Guarantors and the Initial Purchasers
(the "Purchase Agreement"), which provides for the sale by the Company to the
Initial Purchasers of an aggregate of $75 million principal amount of the
Company's 11% Senior Subordinated Notes due 2008, Series C, and related
guarantees (collectively, the "Securities"). In order to induce the Initial
Purchasers to enter into the Purchase Agreement, the Company has agreed to
provide to the Initial Purchasers and their direct and indirect transferees the
registration rights set forth in this Agreement. The execution of this Agreement
is a condition to the closing under the Purchase Agreement.

          In consideration of the foregoing, the parties hereto agree as
follows:

          1.  Definitions.
              -----------

          As used in this Agreement, the following capitalized defined terms
shall have the following meanings:

          "1933 Act" shall mean the Securities Act of 1933, as amended from time
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     to time.

          "1934 Act" shall mean the Securities Exchange Act of l934, as amended
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     from time to time.

          "Closing Date" shall mean the Closing Time as defined in the Purchase
           ------------
     Agreement.

          "Company" shall have the meaning set forth in the preamble and shall
           -------
     also include the Company's successors.

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          "Depositary" shall mean The Depository Trust Company, or any other
           ----------
     depositary appointed by the Company, provided, however, that such
     depositary must have an address in the Borough of Manhattan, in the City of
     New York.

          "Exchange Offer" shall mean the exchange offer by the Company of
           --------------
     Exchange Securities for Registrable Securities or Original Securities
     pursuant to Section 2.1 hereof.

          "Exchange Offer Registration" shall mean a registration under the 1933
           ---------------------------
     Act effected pursuant to Section 2.1 hereof.

          "Exchange Offer Registration Statement" shall mean an exchange offer
           -------------------------------------
     registration statement on Form S-4 (or, if applicable, on another
     appropriate form), and all amendments and supplements to such registration
     statement, including the Prospectus contained therein, all exhibits thereto
     and all documents incorporated by reference therein.

          "Exchange Period" shall have the meaning set forth in Section 2.1
           ---------------
     hereof.

          "Exchange Securities" shall mean (i) the 11% Senior Subordinated Notes
           -------------------
     due 2008, Series D, issued by the Company and (ii) the related guarantees
     issued by the Guarantors, in each case under the Indenture containing terms
     identical to the Securities in all material respects (except for references
     to certain interest rate provisions, restrictions on transfers and
     restrictive legends), to be offered to (i) Holders of Securities in
     exchange for Registrable Securities and (ii) holders of Original Securities
     in exchange for Original Securities pursuant to the Exchange Offer.

          "Holder" shall mean an Initial Purchaser, for so long as it owns any
           ------
     Registrable Securities, and each of its successors, assigns and direct and
     indirect transferees who become registered owners of Registrable Securities
     under the Indenture and each Participating Broker-Dealer that holds
     Exchange Securities for so long as such Participating Broker-Dealer is
     required to deliver a prospectus meeting the requirements of the 1933 Act
     in connection with any resale of such Exchange Securities.

          "Indenture" shall mean the Indenture relating to the Securities, the
           ---------
     Exchange Securities and the Private Exchange Securities, dated as of
     November 19, 2001 between the Company and U.S. Bank Trust National
     Association, as trustee, as the same may be amended, supplemented, waived
     or otherwise modified from time to time in accordance with the terms
     thereof.

          "Initial Purchasers" shall have the meaning set forth in the preamble.
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          "Majority Holders" shall mean the Holders of a majority of the
           ----------------
     aggregate principal amount of Outstanding (as defined in the Indenture)
     Registrable

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     Securities; provided that whenever the consent or approval of Holders of a
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     specified percentage of Registrable Securities is required hereunder,
     Registrable Securities held by the Company and other obligors on the
     Securities or any Affiliate (as defined in the Indenture) of the Company
     shall be disregarded in determining whether such consent or approval was
     given by the Holders of such required percentage amount.

          "Original Indenture" shall mean the Indenture, dated as of July 1,
           ------------------
     1998, between the Company, U.S. Bank Trust National Association, as trustee
     and the Guarantors and Initial Purchasers named therein, as amended or
     supplemented from time to time, in accordance with the terms thereof.

          "Original Securities" shall mean the $125,000,000 11% Senior
           -------------------
     Subordinated Notes due 2008 of the Company and the related guarantees
     outstanding under the Original Indenture.

          "Participating Broker-Dealer" shall mean any of Merrill Lynch, Pierce,
           ---------------------------
     Fenner & Smith Incorporated ("Merrill Lynch"), Banc of America Securities
     LLC and any other broker-dealer which makes a market in the Securities and
     exchanges Registrable Securities in the Exchange Offer for Exchange
     Securities.

          "Person" shall mean an individual, partnership (general or limited),
           ------
     corporation, limited liability company, trust or unincorporated
     organization, or a government or agency or political subdivision thereof.

          "Private Exchange" shall have the meaning set forth in Section 2.1
           ----------------
     hereof.

          "Private Exchange Securities" shall have the meaning set forth in
           ---------------------------
     Section 2.1 hereof.

          "Prospectus" shall mean the prospectus included in a Registration
           ----------
     Statement, including any preliminary prospectus, and any such prospectus as
     amended or supplemented by any prospectus supplement, including any such
     prospectus supplement with respect to the terms of the offering of any
     portion of the Registrable Securities covered by a Shelf Registration
     Statement, and by all other amendments and supplements to a prospectus,
     including post-effective amendments, and in each case including all
     material incorporated by reference therein.

          "Purchase Agreement" shall have the meaning set forth in the preamble.
           ------------------

          "Registrable Securities" shall mean the Securities and, if issued, the
           ----------------------
     Private Exchange Securities; provided, however, that the Securities and, if
     issued, the Private Exchange Securities, shall cease to be Registrable
     Securities when (i) a Registration Statement with respect to such
     Securities and, if issued, such Private Exchange Securities, shall have
     been declared effective under the 1933 Act and

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     such Securities or Private Exchange Securities, as the case may be, shall
     have been disposed of pursuant to such Registration Statement, (ii) such
     Securities and, if issued, such Private Exchange Securities have been sold
     to the public pursuant to Rule l44 (or any similar provision then in force,
     but not Rule 144A) under the 1933 Act, (iii) such Securities or Private
     Exchange Securities, as the case may be, shall have ceased to be
     outstanding or (iv) the Exchange Offer is consummated (except in the case
     of Securities purchased from the Company and continued to be held by the
     Initial Purchasers).

          "Registration Expenses" shall mean any and all expenses incident to
           ---------------------
     performance of or compliance by the Company with this Agreement, including
     without limitation: (i) all SEC, stock exchange or National Association of
     Securities Dealers, Inc. (the "NASD") registration and filing fees,
     including, if applicable, the fees and expenses of any "qualified
     independent underwriter" (and the reasonable fees and expenses of its
     counsel) that is required to be retained by any holder of Registrable
     Securities in accordance with the rules and regulations of the NASD, (ii)
     all fees and expenses incurred in connection with compliance with state
     securities or blue sky laws and compliance with the rules of the NASD
     (including reasonable fees and disbursements of counsel for any
     underwriters or Holders in connection with blue sky qualification of any of
     the Exchange Securities, Registrable Securities or Original Securities and
     any filings with the NASD), (iii) all expenses of any Persons in preparing
     or assisting in preparing, word processing, printing and distributing any
     Registration Statement, any Prospectus, any amendments or supplements
     thereto, any underwriting agreements, securities sales agreements and other
     documents relating to the performance of and compliance with this
     Agreement, (iv) all fees and expenses incurred in connection with the
     listing, if any, of any of the Registrable Securities or Original
     Securities on any securities exchange or exchanges, (v) all rating agency
     fees, (vi) the fees and disbursements of counsel for the Company and of the
     independent public accountants of the Company, including the expenses of
     any special audits or "cold comfort" letters required by or incident to
     such performance and compliance, (vii) the fees and expenses of the
     Trustee, and any escrow agent or custodian, (viii) the reasonable fees and
     expenses of the Initial Purchasers in connection with the Exchange Offer,
     including the reasonable fees and expenses of counsel to the Initial
     Purchasers in connection therewith, (ix) the reasonable fees and
     disbursements of Fried, Frank, Harris, Shriver & Jacobson, special counsel
     representing the Holders of Registrable Securities and (x) any fees and
     disbursements of the underwriters customarily required to be paid by
     issuers or sellers of securities and the fees and expenses of any special
     experts retained by the Company in connection with any Registration
     Statement, but excluding underwriting discounts and commissions and
     transfer taxes, if any, relating to the sale or disposition of Registrable
     Securities or Original Securities by a Holder.

          "Registration Statement" shall mean any registration statement of the
           ----------------------
     Company which covers any of the Exchange Securities, Registrable Securities
     or

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     Original Securities pursuant to the provisions of this Agreement, and all
     amendments and supplements to any such Registration Statement, including
     post-effective amendments, in each case including the Prospectus contained
     therein, all exhibits thereto and all material incorporated by reference
     therein.

          "SEC" shall mean the Securities and Exchange Commission or any
           ---
     successor agency or government body performing the functions currently
     performed by the United States Securities and Exchange Commission.

          "Shelf Registration" shall mean a registration effected pursuant to
           ------------------
     Section 2.2 hereof.

          "Shelf Registration Statement" shall mean a "shelf" registration
           ----------------------------
     statement of the Company pursuant to the provisions of Section 2.2 of this
     Agreement which covers all of the Registrable Securities or all of the
     Private Exchange Securities on an appropriate form under Rule 415 under the
     1933 Act, or any similar rule that may be adopted by the SEC, and all
     amendments and supplements to such registration statement, including
     post-effective amendments, in each case including the Prospectus contained
     therein, all exhibits thereto and all material incorporated by reference
     therein.

          "Trustee" shall mean the trustee with respect to the Securities, the
           -------
     Exchange Securities and the Private Exchange Securities under the
     Indenture.

          2.  Registration Under the 1933 Act.
              -------------------------------

          2.1 Exchange Offer. The Company and the Guarantors shall, for the
              --------------
benefit of the Holders, at the Company's and the Guarantors' cost, use their
reasonable best efforts to (A) prepare and, as soon as practicable but not later
than 60 days following the Closing Date, file with the SEC an Exchange Offer
Registration Statement on an appropriate form under the 1933 Act with respect to
a proposed Exchange Offer and the issuance and delivery to the Holders, in
exchange for the Registrable Securities (other than Private Exchange Securities)
or Original Securities, of a like principal amount of Exchange Securities, (B)
to cause the Exchange Offer Registration Statement to be declared effective
under the 1933 Act within 135 days of the Closing Date, (C) keep the Exchange
Offer Registration Statement effective until the closing of the Exchange Offer
and (D) cause the Exchange Offer to be consummated not later than 165 days
following the Closing Date, provided, however, that the Company agrees that it
will not consummate the Exchange Offer until after it has made its February 1,
2001 interest payment. The Exchange Securities will be issued under the
Indenture. Upon the effectiveness of the Exchange Offer Registration Statement,
the Company and the Guarantors shall promptly commence the Exchange Offer, it
being the objective of such Exchange Offer to enable each Holder eligible and
electing to exchange Registrable Securities and each holder eligible and
electing to exchange Original Securities for Exchange Securities (assuming that
such Holder or holder (a) is not an affiliate of the Company within the meaning
of Rule 405 under the 1933 Act, (b) is not a broker-dealer

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tendering Registrable Securities acquired directly from the Company for its own
account, (c) acquired the Exchange Securities in the ordinary course of such
Holder's or holder's business and (d) has no arrangements or understandings with
any Person to participate in the Exchange Offer for the purpose of distributing
the Exchange Securities) to transfer such Exchange Securities from and after
their receipt without any limitations or restrictions under the 1933 Act and
under state securities or blue sky laws.

               In connection with the Exchange Offer, the Company and the
Guarantors shall:

                      (a)    mail as promptly as practicable to each Holder and
each holder of Original Securities a copy of the Prospectus forming part of the
Exchange Offer Registration Statement, together with an appropriate letter of
transmittal and related documents;

                      (b)    keep the Exchange Offer open for acceptance for a
period of not less than 30 calendar days after the date notice thereof is mailed
to the Holders and the holders of Original Securities (or longer if required by
applicable law) (such period referred to herein as the "Exchange Period");

                      (c)    utilize the services of the Depositary for the
Exchange Offer;

                      (d)    permit Holders and holders of Original Securities
to withdraw tendered Registrable Securities or Original Securities at any time
prior to 5:00 p.m. (Eastern Standard Time), on the last business day of the
Exchange Period, by sending to the institution specified in the notice, a
telegram, telex, facsimile transmission or letter setting forth the name of such
Holder or holder or Original Securities, the principal amount of Registrable
Securities or Original Securities delivered for exchange, and a statement that
such Holder or holder of Original Securities is withdrawing such party's
election to have such Securities exchanged;

                      (e)    notify each Holder that any Registrable Security
not tendered will remain outstanding and continue to accrue interest, but will
not retain any rights under this Agreement (except in the case of the Initial
Purchasers and Participating Broker-Dealers as provided herein); and

                      (f)    otherwise comply in all respects with all
applicable laws relating to the Exchange Offer.

               If, prior to consummation of the Exchange Offer, the Initial
Purchasers hold any Securities acquired by them and having the status of an
unsold allotment in the initial distribution, the Company and the Guarantors
upon the request of any Initial Purchaser shall, simultaneously with the
delivery of the Exchange Securities in the Exchange Offer, issue and deliver to
such Initial Purchaser in exchange (the "Private Exchange") for the Securities
held by such Initial Purchaser, a like principal amount of debt securities of
the Company, guaranteed by the Guarantors on a senior basis, that are identical
(except that

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such securities shall bear appropriate transfer restrictions) to the Exchange
Securities (the "Private Exchange Securities").

                      The Exchange Securities and the Private Exchange
Securities shall be issued under (i) the Indenture or (ii) an indenture
identical in all material respects to the Indenture and which, in either case,
has been qualified under the Trust Indenture Act of 1939, as amended (the
"TIA"), or is exempt from such qualification and shall provide that the Exchange
Securities shall not be subject to the transfer restrictions set forth in the
Indenture but that the Private Exchange Securities shall be subject to such
transfer restrictions. The Indenture or such indenture shall provide that the
Exchange Securities, the Private Exchange Securities and the Securities shall
vote and consent together on all matters as one class and that none of the
Exchange Securities, the Private Exchange Securities or the Securities will have
the right to vote or consent as a separate class on any matter. The Private
Exchange Securities shall be of the same series as and the Company and the
Guarantors shall use all commercially reasonable efforts to have the Private
Exchange Securities bear the same CUSIP number as the Exchange Securities.
Neither the Company nor any of the Guarantors shall have any liability under
this Agreement solely as a result of such Private Exchange Securities not
bearing the same CUSIP number as the Exchange Securities.

                      As soon as practicable after the close of the Exchange
Offer and/or the Private Exchange, the Company and the Guarantors shall:

                             (i)    accept for exchange all Registrable
                      Securities and Original Securities duly tendered and not
                      validly withdrawn pursuant to the Exchange Offer in
                      accordance with the terms of the Exchange Offer
                      Registration Statement and the letter of transmittal which
                      shall be an exhibit thereto;

                             (ii)   accept for exchange all Securities properly
                      tendered pursuant to the Private Exchange;

                             (iii)  deliver, or cause to be delivered, to the
                      Trustee for cancellation all Registrable Securities and
                      Original Securities so accepted for exchange; and

                             (iv)   cause the Trustee promptly to authenticate
                      and deliver Exchange Securities or Private Exchange
                      Securities, as the case may be, to each Holder of
                      Registrable Securities and each holder of Original
                      Securities so accepted for exchange in a principal amount
                      equal to the principal amount of the Registrable
                      Securities or Original Securities of such party so
                      accepted for exchange.

                      Interest on each Exchange Security and Private Exchange
Security will accrue from the last date on which interest was paid on the
Registrable Securities or Original Securities surrendered in exchange therefor
or, if no interest has been paid on the

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Registrable Securities, from the date of original issuance. The Exchange Offer
and the Private Exchange shall not be subject to any conditions, other than (i)
that the Exchange Offer or the Private Exchange, or the making of any exchange
by a Holder, does not violate applicable law or any applicable interpretation of
the staff of the SEC, (ii) the due tendering of Registrable Securities in
accordance with the Exchange Offer and the Private Exchange, (iii) that each
Holder of Registrable Securities exchanged in the Exchange Offer shall have
represented that all Exchange Securities to be received by it shall be acquired
in the ordinary course of its business and that at the time of the consummation
of the Exchange Offer it shall have no arrangement or understanding with any
person to participate in the distribution (within the meaning of the 1933 Act)
of the Exchange Securities and shall have made such other representations as may
be reasonably necessary under applicable SEC rules, regulations or
interpretations to render the use of Form S-4 or other appropriate form under
the 1933 Act available, (iv) that the Exchange Offer will not be consummated
with respect to any Original Securities unless at least $50,000,000 in aggregate
face value of such Original Securities are tendered and not withdrawn during the
Exchange Period; provided, however, that the failure to achieve such threshold
will not prevent the consummation of the Exchange Offer with respect to any
Registrable Securities, and (v) that no action or proceeding shall have been
instituted or threatened in any court or by or before any governmental agency
with respect to the Exchange Offer or the Private Exchange which, in the
Company's and the Guarantors' judgment, would reasonably be expected to impair
the ability of the Company and the Guarantors to proceed with the Exchange Offer
or the Private Exchange. The Company and the Guarantors shall inform the Initial
Purchasers of the names and addresses of the Holders and holders of Original
Securities to whom the Exchange Offer is made, and the Initial Purchasers shall
have the right to contact such parties and otherwise facilitate the tender of
Registrable Securities in the Exchange Offer.

                      2.2    Shelf Registration. (i) If, because of any changes
                             ------------------
in law, SEC rules or regulations or applicable interpretations thereof by the
staff of the SEC, the Company and the Guarantors are not permitted to effect the
Exchange Offer as contemplated by Section 2.1 hereof, (ii) if for any other
reason the Exchange Offer Registration Statement is not declared effective
within 135 days following the original issue of the Registrable Securities or
the Exchange Offer is not consummated within 165 days after the original issue
of the Registrable Securities, (iii) upon the request of any of the Initial
Purchasers or (iv) if a Holder is not permitted by applicable law to participate
in the Exchange Offer or elects to participate in the Exchange Offer but does
not receive fully tradeable Exchange Securities pursuant to the Exchange Offer,
then in case of each of clauses (i) through (iv) the Company and the Guarantors
shall, at their cost:

                             (a) As promptly as practicable, file with the SEC,
                      and thereafter shall use their reasonable best efforts to
                      cause to be declared effective within 165 days after the
                      original issue of the Registrable Securities, a Shelf
                      Registration Statement relating to the offer and sale of
                      the Registrable Securities by the Holders from time to
                      time in accordance with the methods

<PAGE>

                      of distribution elected by the Majority Holders
                      participating in the Shelf Registration and set forth in
                      such Shelf Registration Statement.

                             (b) Use their reasonable best efforts to keep the
                      Shelf Registration Statement continuously effective in
                      order to permit the Prospectus forming part thereof to be
                      usable by Holders for a period of two years from the date
                      the Shelf Registration Statement is declared effective by
                      the SEC, or for such shorter period that will terminate
                      when all Registrable Securities covered by the Shelf
                      Registration Statement have been sold pursuant to the
                      Shelf Registration Statement or cease to be outstanding or
                      otherwise to be Registrable Securities (the "Effectiveness
                      Period"); provided, however, that the Effectiveness Period
                      in respect of the Shelf Registration Statement shall be
                      extended to the extent required to permit dealers to
                      comply with the applicable prospectus delivery
                      requirements of Rule 174 under the 1933 Act and as
                      otherwise provided herein.

                             (c) Notwithstanding any other provisions hereof,
                      use their reasonable best efforts to ensure that (i) any
                      Shelf Registration Statement and any amendment thereto and
                      any Prospectus forming part thereof and any supplement
                      thereto complies in all material respects with the 1933
                      Act and the rules and regulations thereunder, (ii) any
                      Shelf Registration Statement and any amendment thereto
                      does not, when it becomes effective, contain an untrue
                      statement of a material fact or omit to state a material
                      fact required to be stated therein or necessary to make
                      the statements therein not misleading and (iii) any
                      Prospectus forming part of any Shelf Registration
                      Statement, and any supplement to such Prospectus (as
                      amended or supplemented from time to time), does not
                      include an untrue statement of a material fact or omit to
                      state a material fact necessary in order to make the
                      statements, in light of the circumstances under which they
                      were made, not misleading.

                      The Company and the Guarantors shall not permit any
securities other than Registrable Securities to be included in the Shelf
Registration Statement. The Company and the Guarantors further agree, if
necessary, to supplement or amend the Shelf Registration Statement, as required
by Section 3(b) below, and to furnish to the Holders of Registrable Securities
copies of any such supplement or amendment promptly after its being used or
filed with the SEC.

                      2.3    Expenses. The Company and the Guarantors shall pay
                             --------
all Registration Expenses in connection with the registration pursuant to
Section 2.1 or 2.2. Each Holder shall pay all underwriting discounts and
commissions and transfer taxes, if any, relating to the sale or disposition of
such Holder's Registrable Securities pursuant to the Shelf Registration
Statement.

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                      2.4.   Effectiveness. (a) The Company and the Guarantors
                             -------------
will be deemed not have used their reasonable best efforts to cause the Exchange
Offer Registration Statement or the Shelf Registration Statement, as the case
may be, to become, or to remain, effective during the requisite period if the
Company or any of the Guarantors voluntarily takes any action that would, or
omits to take any action which omission would, result in any such Registration
Statement not being declared effective or in the Holders of Registrable
Securities or the holders of Original Securities covered thereby not being able
to exchange or offer and sell such Registrable Securities or Original Securities
during that period as and to the extent contemplated hereby, unless such action
is required by applicable law.

                             (b)    An Exchange Offer Registration Statement
pursuant to Section 2.1 hereof or a Shelf Registration Statement pursuant to
Section 2.2 hereof will not be deemed to have become effective unless it has
been declared effective by the SEC; provided, however, that if, after it has
been declared effective, the offering of (i) Registrable Securities or Original
Securities pursuant to an Exchange Offer Registration Statement or (ii)
Registrable Securities pursuant to a Shelf Registration Statement is interfered
with by any stop order, injunction or other order or requirement of the SEC or
any other governmental agency or court, such Registration Statement will be
deemed not to have become effective during the period of such interference,
until the offering of such securities pursuant to such Registration Statement
may legally resume.

                      2.5    Interest. The Indenture executed in connection with
                             --------
the Securities will provide that in the event that either (a) the Exchange Offer
Registration Statement is not filed with the Commission on or prior to the 60th
calendar day following the date of original issue of the Securities, (b) the
Exchange Offer Registration Statement has not been declared effective on or
prior to the 135th calendar day following the date of original issue of the
Securities or (c) the Exchange Offer is not consummated or a Shelf Registration
Statement is not declared effective, in either case, on or prior to the 165th
calendar day following the date of original issue of the Securities (each such
event referred to in clauses (a) through (c) above, a "Registration Default"),
the interest rate borne by the Securities and the Private Exchange Securities
shall be increased ("Additional Interest") by one-quarter of one percent per
annum upon the occurrence of each Registration Default, which rate will increase
by one quarter of one percent each 90-day period that such Additional Interest
continues to accrue under any such circumstance, provided that the maximum
aggregate increase in the interest rate will in no event exceed one percent (1%)
per annum. Following the cure of all Registration Defaults the accrual of
Additional Interest will cease and the interest rate will revert to the original
rate.

                      If the Shelf Registration Statement is declared effective
but shall thereafter become unusable by the Holders for any reason, and the
aggregate number of days in any consecutive twelve-month period for which the
Shelf Registration Statement shall not be usable exceeds 30 days in the
aggregate, then the interest rate borne by the Securities and the Private
Exchange Securities (so long as the Private Exchange Securities have the status
of an unsold allotment at the time of the Exchange Offer) will be increased by

<PAGE>

0.25% per annum of the principal amount of the Securities and the Private
Exchange Securities for the first 90-day period (or portion thereof) beginning
on the 31st such date that such Shelf Registration Statement ceases to be
usable, which rate shall be increased by an additional 0.25% per annum of the
principal amount of the Securities and the Private Exchange (so long as the
Private Exchange Securities have the status of an unsold allotment at the time
of the Exchange Offer) at the beginning of each subsequent 90-day period,
provided that the maximum aggregate increase in the interest rate will in no
event exceed one percent (1%) per annum. Any amounts payable under this
paragraph shall also be deemed "Additional Interest" for purposes of this
Agreement. Upon the Shelf Registration Statement once again becoming usable, the
interest rate borne by the Securities and the Private Exchange Securities will
be reduced to the original interest rate if the Company is otherwise in
compliance with this Agreement at such time. Additional Interest shall be
computed based on the actual number of days elapsed in each 90-day period in
which the Shelf Registration Statement is unusable.

                  The Company and the Guarantors shall notify the Trustee within
five business days after each and every date on which an event occurs in respect
of which Additional Interest is required to be paid (an "Event Date").
Additional Interest shall be paid by depositing with the Trustee, in trust, for
the benefit of the Holders of Registrable Securities, on or before the
applicable semiannual interest payment date, immediately available funds in sums
sufficient to pay the Additional Interest then due. The Additional Interest due
shall be payable on each interest payment date to the record Holder of
Securities and Private Exchange Securities entitled to receive the interest
payment to be paid on such date as set forth in the Indenture. Each obligation
to pay Additional Interest shall be deemed to accrue from and including the day
following the applicable Event Date.

                  3.   Registration Procedures.
                       -----------------------

                  In connection with the obligations of the Company and the
Guarantors with respect to Registration Statements pursuant to Sections 2.1 and
2.2 hereof, the Company and the Guarantors shall:

                  (a)  prepare and file with the SEC a Registration Statement,
within the relevant time period specified in Section 2, on the appropriate form
under the 1933 Act, which form (i) shall be selected by the Company and the
Guarantors, (ii) shall, in the case of a Shelf Registration, be available for
the sale of the Registrable Securities by the selling Holders thereof, (iii)
shall comply as to form in all material respects with the requirements of the
applicable form and include or incorporate by reference all financial statements
required by the SEC to be filed therewith or incorporated by reference therein,
and (iv) shall comply in all respects with the requirements of Regulation S-T
under the 1933 Act, and use their reasonable best efforts to cause such
Registration Statement to become effective and remain effective in accordance
with Section 2 hereof;

<PAGE>

                  (b)  prepare and file with the SEC such amendments and
post-effective amendments to each Registration Statement as may be necessary
under applicable law to keep such Registration Statement effective for the
applicable period; and cause each Prospectus to be supplemented by any required
prospectus supplement, and as so supplemented to be filed pursuant to Rule 424
(or any similar provision then in force) under the 1933 Act and comply with the
provisions of the 1933 Act, the 1934 Act and the rules and regulations
thereunder applicable to them with respect to the disposition of all securities
covered by each Registration Statement during the applicable period in
accordance with the intended method or methods of distribution by the selling
holders thereof (including sales by any Participating Broker-Dealer);

                  (c)  in the case of a Shelf Registration, (i) notify each
Holder of Registrable Securities, at least five business days prior to filing,
that a Shelf Registration Statement with respect to the Registrable Securities
is being filed and advising such Holders that the distribution of Registrable
Securities will be made in accordance with the method selected by the Majority
Holders participating in the Shelf Registration; (ii) furnish to each Holder of
Registrable Securities and to each underwriter of an underwritten offering of
Registrable Securities, if any, without charge, as many copies of each
Prospectus, including each preliminary Prospectus, and any amendment or
supplement thereto and such other documents as such Holder or underwriter may
reasonably request, including financial statements and schedules and, if the
Holder so requests, all exhibits, in order to facilitate the public sale or
other disposition of the Registrable Securities; and (iii) hereby consent to the
use of the Prospectus or any amendment or supplement thereto by each of the
selling Holders of Registrable Securities in connection with the offering and
sale of the Registrable Securities covered by the Prospectus or any amendment or
supplement thereto;

                  (d)  in the case of a Shelf Registration, use their reasonable
best efforts to register or qualify the Registrable Securities under all
applicable state securities or "blue sky" laws of such jurisdictions as any
Holder of Registrable Securities covered by a Registration Statement and each
underwriter of an underwritten offering of Registrable Securities shall
reasonably request by the time the applicable Registration Statement is declared
effective by the SEC, and do any and all other acts and things which may be
reasonably necessary or advisable to enable each such Holder and underwriter to
consummate the disposition in each such jurisdiction of such Registrable
Securities owned by such Holder; provided, however, that none of the Company and
the Guarantors shall be required to (i) qualify as a foreign corporation or as a
dealer in securities in any jurisdiction where it would not otherwise be
required to qualify but for this Section 3(d), or (ii) take any action which
would subject it to general service of process or taxation in any such
jurisdiction where it is not then so subject;

                  (e)  notify promptly each Holder of Registrable Securities
under a Shelf Registration or any Participating Broker-Dealer who has notified
the Company and the Guarantors that it is utilizing the Exchange Offer
Registration Statement as provided in paragraph (f) below and, if requested by
such Holder or Participating Broker-Dealer,

<PAGE>

confirm such advice in writing promptly (i) when a Registration Statement has
become effective and when any post-effective amendments and supplements thereto
become effective, (ii) of any request by the SEC or any state securities
authority for post-effective amendments and supplements to a Registration
Statement and Prospectus or for additional information after the Registration
Statement has become effective, (iii) of the issuance by the SEC or any state
securities authority of any stop order suspending the effectiveness of a
Registration Statement or the initiation of any proceedings for that purpose,
(iv) in the case of a Shelf Registration, if, between the effective date of such
Registration Statement and the closing of any sale of Registrable Securities
covered thereby, the representations and warranties of the Company and the
Guarantors contained in any underwriting agreement, securities sales agreement
or other similar agreement, if any, relating to the offering cease to be true
and correct in all material respects, (v) of the happening of any event or the
discovery of any facts during the period a Shelf Registration Statement is
effective which makes any statement made in such Registration Statement or the
related Prospectus untrue in any material respect or which requires the making
of any changes in such Registration Statement or Prospectus in order to make the
statements therein not misleading, (vi) of the receipt by the Company of any
notification with respect to the suspension of the qualification of the
Registrable Securities or the Exchange Securities, as the case may be, for sale
in any jurisdiction or the initiation or threatening of any proceeding for such
purpose and (vii) of any determination by the Company that a post-effective
amendment to such Registration Statement would be appropriate;

                  (f)  (A) in the case of the Exchange Offer Registration
Statement (i) include in the Exchange Offer Registration Statement a section
entitled "Plan of Distribution" which section shall be reasonably acceptable to
Merrill Lynch on behalf of the Participating Broker-Dealers, and which shall
contain a summary statement of the positions taken or policies made by the staff
of the SEC with respect to the potential "underwriter" status of any
broker-dealer that holds Registrable Securities or Original Securities acquired
for its own account as a result of market-making activities or other trading
activities and that will be the beneficial owner (as defined in Rule 13d-3
promulgated under the 1934 Act) of Exchange Securities to be received by such
broker-dealer in the Exchange Offer, whether such positions or policies have
been publicly disseminated by the staff of the SEC or such positions or
policies, in the reasonable judgment of Merrill Lynch on behalf of the
Participating Broker-Dealers and its counsel, represent the prevailing views of
the staff of the SEC, including a statement that any such broker-dealer who
receives Exchange Securities for Registrable Securities or Original Securities
pursuant to the Exchange Offer may be deemed a statutory underwriter and must
deliver a prospectus meeting the requirements of the 1933 Act in connection with
any resale of such Exchange Securities, (ii) furnish to each Participating
Broker-Dealer who has delivered to the Company the notice referred to in Section
3(e), without charge, as many copies of each Prospectus included in the Exchange
Offer Registration Statement, including any preliminary prospectus, and any
amendment or supplement thereto, as such Participating Broker-Dealer may
reasonably request, (iii) hereby consent

<PAGE>

to the use of the Prospectus forming part of the Exchange Offer Registration
Statement or any amendment or supplement thereto, by any Person subject to the
prospectus delivery requirements of the SEC, including all Participating
Broker-Dealers, in connection with the sale or transfer of the Exchange
Securities covered by the Prospectus or any amendment or supplement thereto, and
(iv) include in the transmittal letter or similar documentation to be executed
by an exchange offeree in order to participate in the Exchange Offer (x) the
following provision:

                  "If the exchange offeree is a broker-dealer holding
                  Registrable Securities or Original Securities acquired for its
                  own account as a result of market-making activities or other
                  trading activities, it will deliver a prospectus meeting the
                  requirements of the 1933 Act in connection with any resale of
                  Exchange Securities received in respect of such Registrable
                  Securities or Original Securities pursuant to the Exchange
                  Offer;" and

(y) a statement to the effect that by a broker-dealer making the acknowledgment
described in clause (x) and by delivering a Prospectus in connection with the
exchange of Registrable Securities, the broker-dealer will not be deemed to
admit that it is an underwriter within the meaning of the 1933 Act; and

                             (B)    in the case of any Exchange Offer
Registration Statement, the Company and the Guarantors agree to deliver to the
Initial Purchasers on behalf of the Participating Broker-Dealers upon the
effectiveness of the Exchange Offer Registration Statement (i) an opinion of
counsel or opinions of counsel substantially in the form attached hereto as
Exhibit A, (ii) officers' certificates substantially in the form customarily
delivered in a public offering of debt securities and (iii) a comfort letter or
comfort letters in customary form to the extent permitted by Statement on
Auditing Standards No. 72 of the American Institute of Certified Public
Accountants (or if such a comfort letter is not permitted, an agreed upon
procedures letter in customary form) from the Company's independent certified
public accountants (and, if necessary, any other independent certified public
accountants of any subsidiary of the Company or of any business acquired by the
Company for which financial statements are, or are required to be, included in
the Registration Statement) at least as broad in scope and coverage as the
comfort letter or comfort letters delivered to the Initial Purchasers in
connection with the initial sale of the Securities to the Initial Purchasers;

                  (g)  (i) in the case of an Exchange Offer, furnish counsel for
the Initial Purchasers and (ii) in the case of a Shelf Registration, furnish
counsel for the Holders of Registrable Securities copies of any comment letters
received from the SEC or any other request by the SEC or any state securities
authority for amendments or supplements to a Registration Statement and
Prospectus or for additional information;

                  (h)  make every reasonable effort to obtain the withdrawal of
any order suspending the effectiveness of a Registration Statement at the
earliest possible moment;

<PAGE>

                  (i)  in the case of a Shelf Registration, furnish to each
Holder of Registrable Securities, and each underwriter, if any, without charge,
at least one conformed copy of each Registration Statement and any
post-effective amendment thereto, including financial statements and schedules
(without documents incorporated therein by reference and all exhibits thereto,
unless requested);

                  (j)  in the case of a Shelf Registration, cooperate with the
selling Holders of Registrable Securities to facilitate the timely preparation
and delivery of certificates representing Registrable Securities to be sold and
not bearing any restrictive legends; and enable such Registrable Securities to
be in such denominations (consistent with the provisions of the Indenture) and
registered in such names as the selling Holders or the underwriters, if any, may
reasonably request at least three business days prior to the closing of any sale
of Registrable Securities;

                  (k)  in the case of a Shelf Registration, upon the occurrence
of any event or the discovery of any facts, each as contemplated by Sections
3(e)(v) and 3(e)(vi) hereof, as promptly as practicable after the occurrence of
such an event, use their best efforts to prepare a supplement or post-effective
amendment to the Registration Statement or the related Prospectus or any
document incorporated therein by reference or file any other required document
so that, as thereafter delivered to the purchasers of the Registrable Securities
or Participating Broker-Dealers, such Prospectus will not contain at the time of
such delivery any untrue statement of a material fact or omit to state a
material fact necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading or will remain so
qualified. At such time as such public disclosure is otherwise made or the
Company determines that such disclosure is not necessary, in each case to
correct any misstatement of a material fact or to include any omitted material
fact, the Company agrees promptly to notify each Holder of such determination
and to furnish each Holder such number of copies of the Prospectus as amended or
supplemented, as such Holder may reasonably request;

                  (l)  in the case of a Shelf Registration, within a reasonable
time prior to the filing of any Registration Statement, any Prospectus, any
amendment to a Registration Statement or amendment or supplement to a Prospectus
or any document which is to be incorporated by reference into a Registration
Statement or a Prospectus after initial filing of a Registration Statement,
provide copies of such document to the Initial Purchasers on behalf of such
Holders; and make representatives of the Company and the Guarantors as shall be
reasonably requested by the Holders of Registrable Securities, or the Initial
Purchasers on behalf of such Holders, available for discussion of such document;

                  (m)  use their reasonable best efforts to obtain a CUSIP
number for all Exchange Securities, Private Exchange Securities or Registrable
Securities, as the case may be, not later than the effective date of a
Registration Statement, and provide the Trustee with printed certificates for
the Exchange Securities, Private Exchange Securities

<PAGE>

or the Registrable Securities, as the case may be, in a form eligible for
deposit with the Depositary;

                  (n)      (i) cause the Indenture to be qualified under the
TIA in connection with the registration of the Exchange Securities or
Registrable Securities, as the case may be, (ii) cooperate with the Trustee and
the Holders to effect such changes to the Indenture as may be required for the
Indenture to be so qualified in accordance with the terms of the TIA and (iii)
execute, and use their reasonable best efforts to cause the Trustee to execute,
all documents as may be required to effect such changes, and all other forms and
documents required to be filed with the SEC to enable the Indenture to be so
qualified in a timely manner;

                  (o)      in the case of a Shelf Registration, enter into
agreements (including underwriting agreements) and take all other customary and
appropriate actions in order to expedite or facilitate the disposition of such
Registrable Securities and in such connection whether or not an underwriting
agreement is entered into and whether or not the registration is an underwritten
registration:

                           (i)   make such representations and warranties to the
                  Holders of such Registrable Securities and the underwriters,
                  if any, in form, substance and scope as are customarily made
                  by issuers to underwriters in similar underwritten offerings
                  as may be reasonably requested by them;

                           (ii)  obtain opinions of counsel to the Company and
                  the Guarantors and updates thereof (which counsel and opinions
                  (in form, scope and substance) shall be reasonably
                  satisfactory to the managing underwriters, if any, and the
                  holders of a majority in principal amount of the Registrable
                  Securities being sold) addressed to each selling Holder and
                  the underwriters, if any, covering the matters customarily
                  covered in opinions requested in sales of securities or
                  underwritten offerings and such other matters as may be
                  reasonably requested by such Holders and underwriters;

                           (iii) obtain "cold comfort" letters and updates
                  thereof from the Company's and the Guarantors' independent
                  certified public accountants (and, if necessary, any other
                  independent certified public accountants of any subsidiary of
                  the Company or of any business acquired by the Company for
                  which financial statements are, or are required to be,
                  included in the Registration Statement) addressed to the
                  underwriters, if any, and use reasonable efforts to have such
                  letter addressed to the selling Holders of Registrable
                  Securities (to the extent consistent with Statement on
                  Auditing Standards No. 72 of the American Institute of
                  Certified Public Accounts), such letters to be in customary
                  form and covering matters of the type customarily covered in
                  "cold comfort" letters to underwriters in connection with
                  similar underwritten offerings;

<PAGE>

                           (iv) enter into a securities sales agreement with the
                  Holders and an agent of the Holders providing for, among other
                  things, the appointment of such agent for the selling Holders
                  for the purpose of soliciting purchases of Registrable
                  Securities, which agreement shall be in form, substance and
                  scope customary for similar offerings;

                           (v)  if an underwriting agreement is entered into,
                  cause the same to set forth indemnification provisions and
                  procedures substantially equivalent to the indemnification
                  provisions and procedures set forth in Section 4 hereof with
                  respect to the underwriters and all other parties to be
                  indemnified pursuant to said Section or, at the request of any
                  underwriters, in the form customarily provided to such
                  underwriters in similar types of transactions; provided such
                  underwriting agreement shall contain customary provisions
                  regarding indemnification of the Company and the Guarantors
                  with the respect to information provided by the underwriters;
                  and

                           (vi) deliver such documents and certificates as may
                  be reasonably requested and as are customarily delivered in
                  similar offerings to the Holders of a majority in principal
                  amount of the Registrable Securities being sold and the
                  managing underwriters, if any.

The above shall be done at (i) the effectiveness of such Registration Statement
(and each post-effective amendment thereto) and (ii) each closing under any
underwriting or similar agreement as and to the extent required thereunder. In
the case of any underwritten offering, the Company and the Guarantors shall
provide written notice to the Holders of all Registrable Securities of such
underwritten offering at least 15 days prior to the filing of a prospectus
supplement for such underwritten offering. Such notice shall (x) offer each such
Holder the right to participate in such underwritten offering, (y) specify a
date, which shall be no earlier than 10 days following the date of such notice,
by which such Holder must inform the Company of its intent to participate in
such underwritten offering and (z) include the instructions such Holder must
follow in order to participate in such underwritten offering;

                  (p) in the case of a Shelf Registration or if a Prospectus is
required to be delivered by any Participating Broker-Dealer in the case of an
Exchange Offer, make available for inspection by representatives of the Holders
of the Registrable Securities, any underwriters participating in any disposition
pursuant to a Shelf Registration Statement, any Participating Broker-Dealer and
any counsel or accountant retained by any of the foregoing, all financial and
other records, pertinent corporate documents and properties of the Company and
the Guarantors reasonably requested by any such persons, and cause the
respective officers, directors, employees, and any other agents of the Company
and the Guarantors to supply all information reasonably requested by any such
representative, underwriter, special counsel or accountant in connection with a
Registration Statement, and make such representatives of the Company and the

<PAGE>

Guarantors available for discussion of such documents as shall be reasonably
requested by the Initial Purchasers;

                  (q) (i)  in the case of an Exchange Offer Registration
Statement, within a reasonable time prior to the filing of any Exchange Offer
Registration Statement, any Prospectus forming a part thereof, any amendment to
an Exchange Offer Registration Statement or amendment or supplement to such
Prospectus, provide copies of such document to the Initial Purchasers and to
counsel to both the Holders of Registrable Securities and the holders of
Original Securities and make such changes in any such document prior to the
filing thereof as the Initial Purchasers or counsel to the Holders of
Registrable Securities or the holders or Original Securities may reasonably
request and, except as otherwise required by applicable law, not file any such
document in a form to which the Initial Purchasers on behalf of the Holders of
Registrable Securities and the holders of Original Securities and counsel to the
Holders of Registrable Securities or the holders of Original Securities shall
not have previously been advised and furnished a copy of or to which the Initial
Purchasers on behalf of the Holders of Registrable Securities and the holders of
Original Securities or counsel to either the Holders of Registrable Securities
or the holders of Original Securities shall reasonably object, and make the
representatives of the Company and the Guarantors available for discussion of
such documents as shall be reasonably requested by the Initial Purchasers; and

                      (ii) in the case of a Shelf Registration, within a
reasonable time prior to filing any Shelf Registration Statement, any Prospectus
forming a part thereof, any amendment to such Shelf Registration Statement or
amendment or supplement to such Prospectus, provide copies of such document to
the Holders of Registrable Securities, to the Initial Purchasers, to counsel for
the Holders and to the underwriter or underwriters of an underwritten offering
of Registrable Securities, if any, make such changes in any such document prior
to the filing thereof as the Initial Purchasers, the counsel to the Holders or
the underwriter or underwriters reasonably request and not file any such
document in a form to which the Majority Holders, the Initial Purchasers on
behalf of the Holders of Registrable Securities, counsel for the Holders of
Registrable Securities or any underwriter shall not have previously been advised
and furnished a copy of or to which the Majority Holders, the Initial Purchasers
of behalf of the Holders of Registrable Securities, counsel to the Holders of
Registrable Securities or any underwriter shall reasonably object, and make the
representatives of the Company and the Guarantors available for discussion of
such document as shall be reasonably requested by the Holders of Registrable
Securities, the Initial Purchasers on behalf of such Holders, counsel for the
Holders of Registrable Securities or any underwriter.

                  (r) in the case of a Shelf Registration, use their reasonable
best efforts to cause all Registrable Securities to be listed on any securities
exchange on which similar debt securities issued by the Company are then listed
if requested by the Majority Holders, or if requested by the underwriter or
underwriters of an underwritten offering of Registrable Securities, if any;

<PAGE>

                  (s) in the case of a Shelf Registration, use their reasonable
best efforts to cause the Registrable Securities to be rated by the appropriate
rating agencies, if so requested by the Majority Holders, or if requested by the
underwriter or underwriters of an underwritten offering of Registrable
Securities, if any;

                  (t) otherwise comply with all applicable rules and regulations
of the SEC and make available to its security holders, as soon as reasonably
practicable, an earnings statement covering at least 12 months which shall
satisfy the provisions of Section 11(a) of the 1933 Act and Rule 158 promulgated
thereunder;

                  (u) cooperate and assist in any filings required to be made
with the NASD and, in the case of a Shelf Registration, in the performance of
any due diligence investigation by any underwriter and its counsel (including
any "qualified independent underwriter" that is required to be retained in
accordance with the rules and regulations of the NASD); and

                  (v) upon consummation of an Exchange Offer or a Private
Exchange, obtain (i) a customary opinion of counsel to the Company and the
Guarantors addressed to the Trustee for the benefit of all Holders of
Registrable Securities and holders of Original Securities participating in the
Exchange Offer or a Private Exchange, and which includes an opinion that (A)
each of the Company and the Guarantors has duly authorized, executed and
delivered the Exchange Securities and/or Private Exchange Securities, as
applicable, and the related indenture, and (B) each of the Exchange Securities
and related indenture constitute legal, valid and binding obligations of each of
the Company and the Guarantors, enforceable against the Company and the
Guarantors in accordance with its respective terms (with customary exceptions)
and (ii) an officers' certificate containing the certifications substantially
similar to those set forth in Section 5(c) of the Purchase Agreement.

                  In the case of a Shelf Registration Statement, the Company and
the Guarantors may (as a condition to such Holder's participation in the Shelf
Registration) require each Holder of Registrable Securities to furnish to the
Company and the Guarantors such information regarding the Holder and the
proposed distribution by such Holder of such Registrable Securities as the
Company and the Guarantors may from time to time reasonably request in writing.

                  In the case of a Shelf Registration Statement, each Holder
agrees that, upon receipt of any notice from the Company and the Guarantors of
the happening of any event or the discovery of any facts, each of the kind
described in Section 3(e)(v) and 3(e)(vi) hereof, such Holder will forthwith
discontinue disposition of Registrable Securities pursuant to a Registration
Statement until such Holder's receipt of the copies of the supplemented or
amended Prospectus contemplated by Section 3(k) hereof, and, if so directed by
the Company and the Guarantors, such Holder will deliver to the Company and the
Guarantors (at their expense) all copies in such Holder's possession, other than

<PAGE>

permanent file copies then in such Holder's possession, of the Prospectus
covering such Registrable Securities current at the time of receipt of such
notice.

                  In the event that the Company and the Guarantors fail to
effect the Exchange Offer or file any Shelf Registration Statement and maintain
the effectiveness of any Shelf Registration Statement as provided herein, the
Company and the Guarantors shall not file any Registration Statement with
respect to any securities (within the meaning of Section 2(1) of the 1933 Act)
of the Company and the Guarantors other than Registrable Securities.

                  If any of the Registrable Securities covered by any Shelf
Registration Statement are to be sold in an underwritten offering, the
underwriter or underwriters and manager or managers that will manage such
offering will be selected by the Majority Holders of such Registrable Securities
included in such offering and shall be acceptable to the Company and the
Guarantors. No Holder of Registrable Securities may participate in any
underwritten registration hereunder unless such Holder (a) agrees to sell such
Holder's Registrable Securities on the basis provided in any underwriting
arrangements approved by the persons entitled hereunder to approve such
arrangements and (b) completes and executes all questionnaires, powers of
attorney, indemnities, underwriting agreements and other documents required
under the terms of such underwriting arrangements.

                  4.    Indemnification; Contribution.
                        -----------------------------

                  (a)   The Company and the Guarantors, jointly and severally,
agree to indemnify and hold harmless the Initial Purchasers, each Holder, each
Participating Broker-Dealer, each Person who participates as an underwriter (any
such Person being an "Underwriter") and each Person, if any, who controls any
Holder or Underwriter within the meaning of Section 15 of the 1933 Act or
Section 20 of the 1934 Act as follows:

                        (i)  against any and all loss, liability, claim, damage
                  and expense whatsoever, as incurred, arising out of any
                  untrue statement or alleged untrue statement of a material
                  fact contained in any Registration Statement (or any
                  amendment or supplement thereto) pursuant to which Exchange
                  Securities or Registrable Securities were registered under
                  the 1933 Act, including all documents incorporated therein
                  by reference, or the omission or alleged omission therefrom of
                  a material fact required to be stated therein or necessary to
                  make the statements therein not misleading, or arising out of
                  any untrue statement or alleged untrue statement of a material
                  fact contained in any Prospectus (or any amendment or
                  supplement thereto) or the omission or alleged omission
                  therefrom of a material fact necessary in order to make the
                  statements therein, in the light of the circumstances under
                  which they were made, not misleading;

                        (ii) against any and all loss, liability, claim, damage
                  and expense whatsoever, as incurred, to the extent of the
                  aggregate amount paid in

<PAGE>

               settlement of any litigation, or any investigation or proceeding
               by any governmental agency or body, commenced or threatened, or
               of any claim whatsoever based upon any such untrue statement or
               omission, or any such alleged untrue statement or omission;
               provided that (subject to Section 4(d) below) any such settlement
               is effected with the written consent of the Company and the
               Guarantors; and

                    (iii) against any and all expense whatsoever, as incurred
               (including the fees and disbursements of counsel chosen by any
               indemnified party), reasonably incurred in investigating,
               preparing or defending against any litigation, or any
               investigation or proceeding by any governmental agency or body,
               commenced or threatened, or any claim whatsoever based upon any
               such untrue statement or omission, or any such alleged untrue
               statement or omission, to the extent that any such expense is not
               paid under subparagraph (i) or (ii) above;

provided, however, that this indemnity agreement shall not apply to any loss,
--------  -------
liability, claim, damage or expense to the extent arising out of any untrue
statement or omission or alleged untrue statement or omission made in reliance
upon and in conformity with written information furnished to the Company and the
Guarantors by the Holder, Participating Broker-Dealer or Underwriter expressly
for use in a Registration Statement (or any amendment thereto) or any Prospectus
(or any amendment or supplement thereto).

               (b) Each Holder severally, but not jointly, agrees to indemnify
and hold harmless the Company, the Guarantors, the Initial Purchasers, each
Underwriter and the other selling Holders, and each of their respective
directors and officers, and each Person, if any, who controls the Company, the
Guarantors, the Initial Purchasers, any Underwriter or any other selling Holder
within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act,
against any and all loss, liability, claim, damage and expense described in the
indemnity contained in Section 4(a) hereof, as incurred, but only with respect
to untrue statements or omissions, or alleged untrue statements or omissions,
made in the Shelf Registration Statement (or any amendment thereto) or any
Prospectus included therein (or any amendment or supplement thereto) in reliance
upon and in conformity with written information with respect to such Holder
furnished to the Company by such Holder expressly for use in the Shelf
Registration Statement (or any amendment thereto) or such Prospectus (or any
amendment or supplement thereto); provided, however, that no such Holder shall
be liable for any claims hereunder in excess of the amount of net proceeds
received by such Holder from the sale of Registrable Securities pursuant to such
Shelf Registration Statement.

               (c) Each indemnified party shall give notice as promptly as
reasonably practicable to each indemnifying party of any action or proceeding
commenced against it in respect of which indemnity may be sought hereunder, but
failure so to notify an indemnifying party shall not relieve such indemnifying
party from any liability hereunder to the extent it is not materially prejudiced
as a result thereof and in any event shall not

<PAGE>

relieve it from any liability which it may have otherwise than on account of
this indemnity agreement. An indemnifying party may participate at its own
expense in the defense of such action; provided, however, that counsel to the
indemnifying party shall not (except with the consent of the indemnified party)
also be counsel to the indemnified party. In no event shall the indemnifying
party or parties be liable for the fees and expenses of more than one counsel
(in addition to any local counsel) separate from their own counsel for all
indemnified parties in connection with any one action or separate but similar or
related actions in the same jurisdiction arising out of the same general
allegations or circumstances. No indemnifying party shall, without the prior
written consent of the indemnified parties, settle or compromise or consent to
the entry of any judgment with respect to any litigation, or any investigation
or proceeding by any governmental agency or body, commenced or threatened, or
any claim whatsoever in respect of which indemnification or contribution could
be sought under this Section 4 (whether or not the indemnified parties are
actual or potential parties thereto), unless such settlement, compromise or
consent (i) includes an unconditional release of each indemnified party from all
liability arising out of such litigation, investigation, proceeding or claim and
(ii) does not include a statement as to or an admission of fault, culpability or
a failure to act by or on behalf of any indemnified party.

                  (d) If at any time an indemnified party shall have requested
an indemnifying party to reimburse the indemnified party for fees and expenses
of counsel, such indemnifying party agrees that it shall be liable for any
settlement of the nature contemplated by Section 4(a)(ii) effected without its
written consent if (i) such settlement is entered into more than 45 days after
receipt by such indemnifying party of the aforesaid request, (ii) such
indemnifying party shall have received notice of the terms of such settlement at
least 30 days prior to such settlement being entered into and (iii) such
indemnifying party shall not have reimbursed such indemnified party in
accordance with such request prior to the date of such settlement.

                  (e) If the indemnification provided for in this Section 4 is
for any reason unavailable to or insufficient to hold harmless an indemnified
party in respect of any losses, liabilities, claims, damages or expenses
referred to therein, then each indemnifying party shall contribute to the
aggregate amount of such losses, liabilities, claims, damages and expenses
incurred by such indemnified party, as incurred, in such proportion as is
appropriate to reflect the relative fault of the Company and the Guarantors on
the one hand and the Holders and the Initial Purchasers each on the other hand
in connection with the statements or omissions which resulted in such losses,
liabilities, claims, damages or expenses, as well as any other relevant
equitable considerations.

         The relative fault of the Company and the Guarantors on the one hand
and the Holders and the Initial Purchasers each on the other hand shall be
determined by reference to, among other things, whether any such untrue or
alleged untrue statement of a material fact or omission or alleged omission to
state a material fact relates to information supplied by the Company and the
Guarantors, the Holders or the Initial

<PAGE>

Purchasers and the parties' relative intent, knowledge, access to information
and opportunity to correct or prevent such statement or omission.

     The Company, the Guarantors, the Holders and the Initial Purchasers agree
that it would not be just and equitable if contribution pursuant to this Section
4 were determined by pro rata allocation (even if the Initial Purchasers were
treated as one entity for such purpose) or by any other method of allocation
which does not take account of the equitable considerations referred to above in
this Section 4. The aggregate amount of losses, liabilities, claims, damages and
expenses incurred by an indemnified party and referred to above in this Section
4 shall be deemed to include any legal or other expenses reasonably incurred by
such indemnified party in investigating, preparing or defending against any
litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, or any claim whatsoever based upon any such
untrue or alleged untrue statement or omission or alleged omission.

     Notwithstanding the provisions of this Section 4, no Initial Purchaser
shall be required to contribute any amount in excess of the amount by which the
total price at which the Securities sold by it were offered exceeds the amount
of any damages which such Initial Purchaser has otherwise been required to pay
by reason of such untrue or alleged untrue statement or omission or alleged
omission.

     No Person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the 1933 Act) shall be entitled to contribution from any Person
who was not guilty of such fraudulent misrepresentation.

     For purposes of this Section 4, each Person, if any, who controls an
Initial Purchaser or Holder within the meaning of Section 15 of the 1933 Act or
Section 20 of the 1934 Act shall have the same rights to contribution as such
Initial Purchaser or Holder, and each director of the Company and such
Guarantor, as the case may be, and each Person, if any, who controls the Company
and such Guarantor, as the case may be, within the meaning of Section 15 of the
1933 Act or Section 20 of the 1934 Act shall have the same rights to
contribution as the Company. The Initial Purchasers' respective obligations to
contribute pursuant to this Section 4 are several in proportion to the principal
amount of Securities set forth opposite their respective names in Schedule B to
the Purchase Agreement and not joint.

          5.    Miscellaneous.
                -------------

          5.1   Rule 144 and Rule 144A. For so long as the Company is subject to
the reporting requirements of Section 13 or 15 of the 1934 Act, the Company and
the Guarantors covenant that they will file the reports required to be filed by
them under the 1933 Act and Section 13(a) or 15(d) of the 1934 Act and the rules
and regulations adopted by the SEC thereunder. If the Company ceases to be so
required to file such reports, the Company and the Guarantors covenant that they
will upon the request of any Holder of Registrable Securities (a) make publicly
available such information as is necessary to permit sales pursuant to Rule 144
under the 1933 Act, (b) deliver such

<PAGE>

information to a prospective purchaser as is necessary to permit sales pursuant
to Rule 144A under the 1933 Act and it will take such further action as any
Holder of Registrable Securities may reasonably request, and (c) take such
further action that is reasonable in the circumstances, in each case, to the
extent required from time to time to enable such Holder to sell its Registrable
Securities without registration under the 1933 Act within the limitation of the
exemptions provided by (i) Rule 144 under the 1933 Act, as such Rule may be
amended from time to time, (ii) Rule 144A under the 1933 Act, as such Rule may
be amended from time to time, or (iii) any similar rules or regulations
hereafter adopted by the SEC. Upon the request of any Holder of Registrable
Securities, the Company and the Guarantors will deliver to such Holder a written
statement as to whether they have complied with such requirements.

     5.2  No Inconsistent Agreements. The Company and the Guarantors have not
          --------------------------
entered into and the Company and the Guarantors will not after the date of this
Agreement enter into any agreement which is inconsistent with the rights granted
to the Holders of Registrable Securities in this Agreement or otherwise
conflicts with the provisions hereof. The rights granted to the Holders
hereunder do not in any way conflict with the rights granted to the holders of
the Company's and the Guarantor's other issued and outstanding securities under
any such agreements.

     5.3  Amendments and Waivers. The provisions of this Agreement, including
          ----------------------
the provisions of this sentence, may not be amended, modified or supplemented,
and waivers or consents to departures from the provisions hereof may not be
given unless the Company and the Guarantors have obtained the written consent of
Holders of at least a majority in aggregate principal amount of the outstanding
Registrable Securities affected by such amendment, modification, supplement,
waiver or departure.

     5.4  Notices. All notices and other communications provided for or
          -------
permitted hereunder shall be made in writing by hand delivery, registered
first-class mail, telex, telecopier, or any courier guaranteeing overnight
delivery (a) if to a Holder, at the most current address given by such Holder to
the Company and the Guarantors by means of a notice given in accordance with the
provisions of this Section 5.4, which address initially is the address set forth
in the Purchase Agreement with respect to the Initial Purchasers; and (b) if to
the Company and the Guarantors, initially at the Company's address set forth in
the Purchase Agreement, and thereafter at such other address of which notice is
given in accordance with the provisions of this Section 5.4.

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

<PAGE>

                  Copies of all such notices, demands, or other communications
shall be concurrently delivered by the person giving the same to the Trustee
under the Indenture, at the address specified in such Indenture.

                  5.5   Successor and Assigns. This Agreement shall inure to the
                        ---------------------
benefit of and be binding upon the successors, assigns and transferees of each
of the parties, including, without limitation and without the need for an
express assignment, subsequent Holders; provided that nothing herein shall be
                                        --------
deemed to permit any assignment, transfer or other disposition of Registrable
Securities in violation of the terms of the Purchase Agreement or the Indenture.
If any transferee of any Holder shall acquire Registrable Securities, in any
manner, whether by operation of law or otherwise, such Registrable Securities
shall be held subject to all of the terms of this Agreement, and by taking and
holding such Registrable Securities such person shall be conclusively deemed to
have agreed to be bound by and to perform all of the terms and provisions of
this Agreement, including the restrictions on resale set forth in this Agreement
and, if applicable, the Purchase Agreement, and such person shall be entitled to
receive the benefits hereof.

                  5.6   Third Party Beneficiaries. The Initial Purchasers (even
                        -------------------------
if the Initial Purchasers are not Holders of Registrable Securities) shall be
third party beneficiaries to the agreements made hereunder between the Company
and the Guarantors, on the one hand, and the Holders, on the other hand, and
shall have the right to enforce such agreements directly to the extent they deem
such enforcement necessary or advisable to protect their rights or the rights of
Holders hereunder. Each Holder of Registrable Securities shall be a third party
beneficiary to the agreements made under this Registration Rights Agreement
between the Company and the Guarantors, on the one hand, and the Initial
Purchasers, on the other hand, and shall have the right to enforce such
agreements directly to the extent it deems such enforcement necessary or
advisable to protect its rights hereunder.

                  5.7.  Specific Enforcement. Without limiting the remedies
                        --------------------
available to the Initial Purchasers and the Holders, the Company and the
Guarantors acknowledge that any failure by the Company and the Guarantors to
comply with their obligations under Sections 2.1 through 2.4 hereof may result
in material irreparable injury to the Initial Purchasers or the Holders for
which there is no adequate remedy at law, that it would not be possible to
measure damages for such injuries precisely and that, in the event of any such
failure, the Initial Purchasers or any Holder may obtain such relief as may be
required to specifically enforce the Company's and the Guarantor's obligations
under Sections 2.1 through 2.4 hereof.

                  5.8.  Restriction on Resales. Until the expiration of two
                        ----------------------
years after the original issuance of the Securities and the Guarantees, the
Company and the Guarantors will not, and will cause their "affiliates" (as such
term is defined in Rule 144(a)(1) under the 1933 Act) not to, resell any
Securities and Guarantees which are "restricted securities" (as such term is
defined under Rule 144(a)(3) under the 1933 Act) that have been reacquired by
any of them and shall immediately upon any purchase of any such

<PAGE>

Securities and Guarantees submit such Securities and Guarantees to the Trustee
for cancellation.

     5.9  Counterparts. This Agreement may be executed in any number of
          ------------
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

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

     5.11 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
          -------------
ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO THE
PRINCIPLES OF CONFLICT OF LAWS THEREOF.

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

<PAGE>

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

                                       SONIC AUTOMOTIVE, INC.

                                       By: /s/ Theodore M. Wright
                                           ---------------------------------
                                           Name:  Theodore M. Wright
                                           Title: Vice President, Treasurer and
                                              Chief Financial Officer

     The Guarantors:

     AUTOBAHN, INC. (a California corporation)
     CAPITOL CHEVROLET AND IMPORTS, INC. (an Alabama corporation)
     COBB PONTIAC CADILLAC, INC. (an Alabama corporation)
     FA SERVICE CORPORATION (a California corporation)
     FAA AUTO FACTORY, INC. (a California corporation)
     FAA BEVERLY HILLS, INC. (a California corporation)
     FAA CAPITOL F, 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 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 MARIN LR, 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)
     FIRSTAMERICA AUTOMOTIVE, INC. (a Delaware corporation)
     FORT MILL CHRYSLER-PLYMOUTH-DODGE INC. (a South Carolina corporation)
     FORT MILL FORD, INC. (a South Carolina corporation)
     FRANCISCAN MOTORS, INC. (a California corporation)
     FREEDOM FORD, INC. (a Florida corporation)
     FRONTIER OLDSMOBILE-CADILLAC, INC. (a North Carolina corporation)
     HMC FINANCE ALABAMA, INC. (an Alabama corporation)
     KRAMER MOTORS INCORPORATED (a California corporation)
     LAWRENCE MARSHALL CHEVROLET, LLC (a Delaware limited liability company)
     LAWRENCE MARSHALL CHEVROLET, L.P. (a Texas limited partnership)
     L DEALERSHIP GROUP, INC. (a Texas corporation)
     MARCUS DAVID CORPORATION (a North Carolina corporation)

<PAGE>

  PHILPOTT MOTORS, LTD. (a Texas limited partnership)
  RIVERSIDE NISSAN, INC. (an  Oklahoma corporation)
  ROYAL MOTOR COMPANY, INC. (an Alabama corporation)
  SANTA CLARA IMPORTED CARS, INC. (a California corporation)
  SMART NISSAN, INC. (a California corporation)
  SONIC AUTOMOTIVE - BONDESEN, INC. (a Florida corporation)
  SONIC AUTOMOTIVE OF CHATTANOOGA, LLC (a Tennessee limited liability company)
  SONIC AUTOMOTIVE-CLEARWATER, INC. (a Florida corporation)
  SONIC AUTOMOTIVE COLLISION CENTER OF CLEARWATER, INC. (a Florida corporation)
  SONIC AUTOMOTIVE F&I, LLC (a Nevada limited liability company)
  SONIC AUTOMOTIVE OF GEORGIA, INC. (a Georgia corporation)
  SONIC AUTOMOTIVE OF NASHVILLE, LLC (a Tennessee limited liability company)
  SONIC AUTOMOTIVE OF NEVADA, INC. (a Nevada corporation)
  SONIC AUTOMOTIVE SERVICING COMPANY, LLC (a Nevada limited liability company)
  SONIC AUTOMOTIVE OF TENNESSEE, INC. (a Tennessee corporation)
  SONIC AUTOMOTIVE OF TEXAS, L.P. (a Texas limited partnership)
  SONIC AUTOMOTIVE WEST, LLC (a Nevada limited liability company)
  SONIC AUTOMOTIVE - 1307 N. DIXIE HWY., NSB, INC. (a Florida corporation)
  SONIC AUTOMOTIVE-1400 AUTOMALL DRIVE, COLUMBUS, INC. (an Ohio corporation)
  SONIC AUTOMOTIVE-1455 AUTOMALL DRIVE, COLUMBUS, INC. (an Ohio corporation)
  SONIC AUTOMOTIVE-1495 AUTOMALL DRIVE, COLUMBUS, INC. (an Ohio corporation)
  SONIC AUTOMOTIVE-1500 AUTOMALL DRIVE, COLUMBUS, INC. (an Ohio corporation)
  SONIC AUTOMOTIVE - 1720 MASON AVE., DB, INC. (a Florida corporation)
  SONIC AUTOMOTIVE - 1720 MASON AVE., DB, LLC (a Florida limited liability
      company)
  SONIC AUTOMOTIVE - 1919 N. DIXIE HWY., NSB, INC. (a Florida corporation)
  SONIC AUTOMOTIVE - 21699 U.S. HWY 19 N., INC. (a Florida corporation)
  SONIC AUTOMOTIVE - 241 RIDGEWOOD AVE., HH, INC. (a Florida corporation)
  SONIC AUTOMOTIVE 2424 LAURENS RD., GREENVILLE, INC. (a South Carolina
      corporation)
  SONIC AUTOMOTIVE - 2490 SOUTH LEE HIGHWAY, LLC (a Tennessee limited liability
      company),
  SONIC AUTOMOTIVE 2752 LAURENS RD., GREENVILLE, INC. (a South Carolina
  corporation)
  SONIC AUTOMOTIVE - 3401 N. MAIN, TX, L.P. (a Texas limited partnership)
  SONIC AUTOMOTIVE-3700 WEST BROAD STREET, COLUMBUS, INC. (an Ohio corporation)
  SONIC AUTOMOTIVE - 3741 S. NOVA RD., PO, INC. (a Florida corporation)
  SONIC AUTOMOTIVE-4000 WEST BROAD STREET, COLUMBUS, INC. (an Ohio corporation)
  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  5260 PEACHTREE INDUSTRIAL BLVD., LLC (a Georgia limited
      liability company)
  SONIC AUTOMOTIVE-5585 PEACHTREE INDUSTRIAL BLVD., LLC (a Georgia limited
      liability company),
  SONIC AUTOMOTIVE - 6008 N. DALE MABRY, FL, INC. (a Florida corporation)
  SONIC AUTOMOTIVE - 6025 INTERNATIONAL DRIVE, LLC (a Tennessee limited
      liability company)
  SONIC AUTOMOTIVE - 9103 E. INDEPENDENCE, NC, LLC (a North Carolina limited
      liability company)
  SONIC - BETHANY H, INC. (an Oklahoma corporation)
  SONIC - 2185 CHAPMAN RD., CHATTANOOGA, LLC (a Tennessee limited liability
      company)
  SONIC - BUENA PARK H, INC. (a California corporation)
  SONIC - CAMP FORD, L.P. (a Texas limited partnership)
  SONIC - CAPITAL CHEVROLET, INC. (an Ohio corporation)
  SONIC - CARROLLTON V, L.P. (a Texas limited partnership)
  SONIC CHRYSLER-PLYMOUTH-JEEP, LLC (a North Carolina limited liability company)
  SONIC - CLASSIC DODGE, INC. (an Alabama corporation)
  SONIC - COAST CADILLAC, INC. (a California corporation)
  SONIC DODGE, LLC (a North Carolina limited liability company)
  SONIC DEVELOPMENT, LLC (a North Carolina limited liability company)
  SONIC - FM AUTOMOTIVE, LLC (a Florida limited liability company)

<PAGE>

 SONIC - FM, INC. (a Florida corporation)
 SONIC - FM NISSAN, INC. (a Florida corporation)
 SONIC - FM VW, INC. (a Florida corporation)
 SONIC - FORT WORTH T, L.P. (a Texas limited partnership)
 SONIC - FREELAND, INC. (a Florida corporation)
 SONIC - GLOBAL IMPORTS, L.P. (a Georgia limited partnership)
 SONIC-GLOVER, INC. (an Oklahoma corporation)
 SONIC - HARBOR CITY H, INC. (a California corporation)
 SONIC - HOUSTON V, L.P. (a Texas limited partnership)
 SONIC - INTEGRITY DODGE LV, LLC (a Nevada limited liability company)
 SONIC - LAS VEGAS C EAST, LLC (a Nevada limited liability company)
 SONIC - LAS VEGAS C WEST, 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-MONTGOMERY FLM, INC. (an Alabama corporation)
 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 - PARK PLACE A, L.P. (a Texas limited partnership) (formerly Sonic -
    Dallas Auto Factory, L.P.)
 SONIC PEACHTREE INDUSTRIAL BLVD., L.P. (a Georgia limited partnership)
 SONIC - READING, L.P. (a Texas limited partnership)
 SONIC RESOURCES, INC. (a Nevada corporation)
 SONIC - RICHARDSON F, L.P. (a Texas limited partnership)
 SONIC-RIVERSIDE, INC. (an Oklahoma corporation)
 SONIC - RIVERSIDE AUTO FACTORY, INC. (an Oklahoma corporation)
 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 - SHOTTENKIRK, INC. (a Florida corporation)
 SONIC - STEVENS CREEK B, INC. (a California corporation) (formerly
    known as Don Lucas International, Inc.)
 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 - WEST COVINA T, INC. (a California corporation)
 SONIC - WEST RENO CHEVROLET, INC. (an Oklahoma corporation)
 SONIC - WILLIAMS BUICK, INC. (an Alabama corporation)
 SONIC - WILLIAMS CADILLAC, INC. (an Alabama corporation)
 SONIC - WILLIAMS IMPORTS, INC. (an Alabama corporation)
 SONIC - WILLIAMS MOTORS, LLC (an Alabama limited liability company)
 SPEEDWAY CHEVROLET, INC. (an Oklahoma corporation)
 SRE ALABAMA - 2, LLC (an Alabama limited liability company)
 SRE ALABAMA - 3, LLC (an Alabama limited liability company)
 SREALESTATE ARIZONA - 1, LLC (an Arizona limited liability company)
 SREALESTATE ARIZONA - 2, LLC (an Arizona limited liability company)
 SREALESTATE ARIZONA - 3, LLC (an Arizona limited liability company)
 SREALESTATE ARIZONA - 4, LLC (an Arizona limited liability company)
 SRE FLORIDA - 1, LLC (a Florida limited liability company)
 SRE FLORIDA - 2, LLC (a Florida limited liability company)
 SRE FLORIDA - 3, LLC (a Florida limited liability company)
 SRE GEORGIA - 1, L.P. (a Georgia limited liability partnership)
 SRE GEORGIA - 2, L.P. (a Georgia limited liability partnership)
 SRE GEORGIA - 3, L.P. (a Georgia limited liability partnership)

<PAGE>

  SRE HOLDING, LLC (a North Carolina limited liability company)
  SRE NEVADA - 1, LLC (a Nevada limited liability company)
  SRE NEVADA - 2, LLC (a Nevada limited liability company)
  SRE NEVADA - 3, LLC (a Nevada limited liability company)
  SRE SOUTH CAROLINA - 2, LLC (a South Carolina limited liability company)
  SRE TENNESSEE - 1, LLC (a Tennessee limited liability company)
  SRE TENNESSEE - 2, LLC (a Tennessee limited liability company)
  SRE TENNESSEE - 3, LLC (a Tennessee limited liability company)
  SRE TEXAS - 1, L.P. (a Texas limited partnership)
  SRE TEXAS - 2, L.P. (a Texas limited partnership)
  SRE TEXAS - 3, L.P. (a Texas limited partnership)
  SRE VIRGINIA - 1, LLC (a Virginia limited liability company)
  STEVENS CREEK CADILLAC, INC. (a California corporation)
  TRANSCAR LEASING, INC. (a California corporation)
  TOWN AND COUNTRY CHRYSLER-PLYMOUTH-JEEP, LLC (a Tennessee limited liability
    company]
  TOWN AND COUNTRY CHRYSLER-PLYMOUTH-JEEP OF ROCK HILL, INC. (a South Carolina
    corporation)
  TOWN AND COUNTRY FORD, INCORPORATED (a North Carolina corporation)
  TOWN AND COUNTRY FORD OF CLEVELAND, LLC (a Tennessee limited liability
    company)
  TOWN AND COUNTRY JAGUAR, LLC (a Tennessee limited liability company)
  VILLAGE IMPORTED CARS, INC. (a Maryland corporation)
  WINDWARD, INC. (a Hawaii corporation)

  By:  /s/ Theodore M. Wright
      ---------------------------------------
      Name: Theodore M. Wright
      Title: Vice President, Treasurer and
             Chief Financial Officer

<PAGE>

Confirmed and accepted as
 of the date first above
 written:

MERRILL LYNCH & CO.
MERRILL LYNCH, PIERCE, FENNER & SMITH
            INCORPORATED

BANC OF AMERICA SECURITIES LLC

BY:  MERRILL LYNCH, PIERCE, FENNER & SMITH
                 INCORPORATED

By:  /s/ signature illegible
    --------------------------------------------------------
    Name:
    Title:

<PAGE>

                                                                       Exhibit A
                                                                       ---------

                           Form of Opinion of Counsel
                           --------------------------

Merrily Lynch & Co.
Merrill Lynch, Pierce, Fenner & Smith
            Incorporated
North Tower
World Financial Center
New York, New York 10281

Ladies and Gentlemen:

         We have acted as counsel for Sonic Automotive, Inc., a Delaware
corporation (the "Company") and its subsidiaries (as "Guarantors" as defined in
the Registration Rights Agreement), in connection with the issuance and sale by
the Company to the Initial Purchasers (as defined below) of $75,000,000
aggregate principal amount of 11% Senior Subordinated Notes due 2008 (the
"Notes") of the Company pursuant to and in accordance with the terms of a the
Purchase Agreement dated as of November 8, 2001 (the "Purchase Agreement")
entered into among the Company, the Guarantors, Merrill Lynch, Pierce, Fenner &
Smith Incorporated and Banc of America Securities LLC (collectively, the
"Initial Purchasers") and the filing by the Company and the Guarantors of an
Exchange Offer Registration Statement (the "Registration Statement") in
connection with an Exchange Offer to be effected pursuant to the Registration
Rights Agreement (the "Registration Rights Agreement"), dated as of November 19,
2001 between the Company, the Guarantors and the Initial Purchasers. This
opinion is furnished to you pursuant to Section 3(f)(B) of the Registration
Rights Agreement. Unless otherwise defined herein, capitalized terms used in
this opinion that are defined in the Registration Rights Agreement are used
herein as so defined.

         We have examined such documents, records and matters of law as we have
deemed necessary for purposes of this opinion. In rendering this opinion, as to
all matters of fact relevant to this opinion, we have assumed the completeness
and accuracy of, and are relying solely upon, the representations and warranties
of the Company and the Guarantors set forth in the Purchase Agreement and the
statements set forth in certificates of public officials and officers of the
Company and the Guarantors, without making any independent investigation or
inquiry with respect to the completeness or accuracy of such representations,
warranties or statements, other than a review of the certificate of
incorporation, by-laws and relevant minute books of the Company and the
Guarantors.

         Based on and subject to the foregoing, we are of the opinion that:

<PAGE>

         1.   The Exchange Securities (including the Guarantees thereof) have
been duly authorized, executed and delivered by the Company and the Guarantors,
as the case may be.

         2.   The Exchange Offer Registration Statement and the Prospectus
(other than the financial statements, notes or schedules thereto and other
financial data and supplemental schedules included or incorporated by reference
therein or omitted therefrom and the Form T-1, as to which such counsel need
express no opinion), comply as to form in all material respects with the
requirements of the 1933 Act and the applicable rules and regulations
promulgated under the 1933 Act.

         3.   We have participated with you and your counsel in the preparation
of the Registration Statement and the Prospectus and in the course thereof have
had discussions with representatives of the Initial Purchasers, officers and
other representatives of the Company and the Company's accountants, the
Company's independent public accountants, during which the contents of the
Registration Statement and the Prospectus were discussed. We have not, however,
independently verified and are not passing upon, and do not assume any
responsibility for, the accuracy, completeness or fairness of the statements
contained in the Registration Statement and the Prospectus. In the course of
such participation, no facts have come to our attention that would lead us to
believe that the Registration Statement (except for financial statements and
schedules and other financial data included therein as to which we make no
statement) contained an untrue statement of a material fact or omitted to state
a material fact required to be stated therein or necessary to make the
statements therein not misleading or that the Prospectus or any amendment or
supplement thereto (except for financial statements and schedules and other
financial data included therein, as to which such counsel need make no
statement), at the time the Prospectus was issued, at the time any such amended
or supplemented Prospectus was issued or at the Closing Time, included or
includes an untrue statement of a material fact or omitted or omits to state a
material fact necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading.

     This opinion is being furnished to you solely for your benefit in
connection with the transactions contemplated by the Registration Rights
Agreement, and may not be used for any other purpose or relied upon by any
person other than you. Except with

<PAGE>

our prior written consent, the opinions herein expressed are not to be used,
circulated, quoted or otherwise referred to in connection with any transactions
other than those contemplated by the Registration Rights Agreement by or to any
other person.

                                                     Very truly yours,<PAGE>

                                                                    Exhibit 4.12
================================================================================

                SONIC AUTOMOTIVE, INC. (a Delaware corporation)
                       The Guarantors Listed on Schedule A

                                   $75,000,000

                     11% Senior Subordinated Notes due 2008

                               PURCHASE AGREEMENT
                               ------------------

                             Dated: November 8, 2001

================================================================================

<PAGE>

<TABLE>
<S>                                                                          <C>
PURCHASE AGREEMENT .........................................................   2

SECTION 1.    Representations and Warranties................................   3
              ------------------------------

(a)    Representations and Warranties by the Company and the Guarantors ....   3

      (i)     Similar Offerings.............................................   4
              -----------------

      (ii)    Offering Memorandum ..........................................   4
              -------------------

      (iii)   Independent Accountants.......................................   4
              -----------------------

      (iv)    Financial Statements..........................................   4
              --------------------

      (v)     No Material Adverse Change in Business .......................   4
              --------------------------------------

      (vi)    Good Standing of the Company .................................   5
              ----------------------------

      (vii)   Subsidiaries .................................................   5
              ------------

      (viii)  Capitalization ...............................................   6
              --------------

      (ix)    Authorization of Agreements ..................................   6
              ---------------------------

      (x)     Authorization of the Indenture ...............................   6
              ------------------------------

      (xi)    Authorization of the Securities, the Guarantees and
              ---------------------------------------------------
              the Exchange Securities ......................................   6
              -----------------------

      (xii)   Description of the Securities, the Guarantees, the
              --------------------------------------------------
              Indenture, the Registration Rights Agreement and the
              ----------------------------------------------------
              Exchange Securities ..........................................   7
              -------------------

      (xiii)  Absence of Defaults and Conflicts ............................   7
              ---------------------------------

      (xiv)   Absence of Labor Disputes ....................................   8
              -------------------------

      (xv)    Absence of Proceedings .......................................   8
              ----------------------

      (xvi)   Possession of Intellectual Property ..........................   9
              -----------------------------------

      (xvii)  Absence of Further Requirements ..............................   9
              -------------------------------

      (xviii) Possession of Licenses and Permits ...........................   9
              ----------------------------------

      (xix)   Title to Property ............................................  10
              -----------------

      (xx)    Tax Returns ..................................................  10
              -----------

      (xxi)   Insurance ....................................................  11
              ---------

      (xxii)  Solvency .....................................................  11
              --------

      (xxiii) Stabilization or Manipulation ................................  11
              -----------------------------
</TABLE>

                                      -i-

<PAGE>

<TABLE>
<S>                                                                           <C>
      (xxiv)   Related Party Transactions ..................................  11
               --------------------------

      (xxv)    Suppliers....................................................  11
               ---------

      (xxvi)   Environmental Laws ..........................................  12
               ------------------

      (xxvii)  Registration Rights .........................................  12
               -------------------

      (xxviii) Accounting Controls .........................................  12
               -------------------

      (xxix)   Investment Company Act ......................................  13
               ----------------------

      (xxx)    Rule 144A Eligibility .......................................  13
               ---------------------

      (xxxi)   No General Solicitation .....................................  13
               -----------------------

      (xxxii)  No Registration Required ....................................  13
               ------------------------

      (xxxiii) PORTAL ......................................................  13
               ------

      (xxxiv)  Franchise Agreements ........................................  13
               --------------------

      (xxxv)   Smith Subordination Agreement ...............................  14
               -----------------------------

  (b) Officer's Certificates ...............................................  14

SECTION 2.     Sale and Delivery to Initial Purchasers; Closing ............  14
               ------------------------------------------------

  (a) Securities and Guarantees ............................................  14

  (b) Payment ..............................................................  14

  (c) Qualified Institutional Buyer ........................................  15

  (d) Denominations; Registration ..........................................  15

SECTION 3.     Covenants of the Company and the Guarantors .................  15
               -------------------------------------------

  (a) Offering Memorandum ..................................................  15

  (b) Notice and Effect of Material Events .................................  15

  (c) Amendment to Offering Memorandum and Supplements .....................  16

  (d) Qualification of Securities and Guarantees for Offer and Sale ........  16

  (e) Exchange Offer .......................................................  16

  (f) Integration ..........................................................  17
</TABLE>

                                      -ii-

<PAGE>

<TABLE>
<S>                                                                           <C>
  (g)   Rating of Securities ...............................................  17

  (h)   Rule 144A Information ..............................................  17

  (i)   Restriction on Resales .............................................  17

  (j)   Use of Proceeds ....................................................  17

  (k)   Restriction on Sale of Securities ..................................  18

  (l)   DTC Clearance ......................................................  18

  (m)   Legends. ...........................................................  18

  (n)   Interim Financial Statements .......................................  18

  (o)   Periodic Reports ...................................................  18

SECTION 4.  Payment of Expenses ............................................  19
            -------------------

  (a)   Expenses ...........................................................  19

  (b)   Termination of Agreement ...........................................  19

SECTION 5.   Conditions of Initial Purchasers' Obligations .................  19
             ---------------------------------------------

  (a)   Opinion of Counsel for the Company and the Guarantors ..............  20

  (b)   Opinion of Counsel for the Initial Purchasers ......................  20

  (c)   Officers' Certificate ..............................................  20

  (d)   Accountants' Letters and Consents ..................................  21

  (e)   Maintenance of Rating ..............................................  21

  (f)   PORTAL .............................................................  21

  (g)   Chief Financial Officer's Certificate ..............................  21

  (h)   Registration Rights Agreement and Indenture ........................  21

  (i)   Manufacturers' Consents ............................................  22

  (j)   Lenders' Consents ..................................................  22
</TABLE>

                                      -iii-

<PAGE>

<TABLE>
<S>                                                                          <C>
    (k)     Additional Documents ...........................................  22

    (l)     Termination of Agreement .......................................  22

SECTION 6.     Indemnification .............................................  22
               ---------------

    (a)     Indemnification of Initial Purchasers ..........................  22

    (b)     Indemnification of Company, Guarantors, and Directors ..........  23

    (c)     Actions against Parties;  Notification .........................  24

    (d)     Settlement without Consent if Failure to Reimburse .............  24

SECTION 7.     Contribution ................................................  24
               ------------

SECTION 8.     Representations, Warranties and Agreements to Survive
               -----------------------------------------------------
               Delivery ....................................................  26
               --------

SECTION 9.     Termination of Agreement ....................................  26
               ------------------------

    (a)    Termination; General ............................................  26

    (b)    Liabilities .....................................................  27

SECTION 10.  Default by One or More of the Initial Purchasers ..............  27
             ------------------------------------------------

SECTION 11.  Notices .......................................................  28
             -------

SECTION 12.  Parties .......................................................  28
             -------

SECTION 13.  Governing Law and Time ........................................  28
             ----------------------

SECTION 14.  General Provisions ............................................  29
             ------------------

SECTION 15.  Partial Unenforceability ......................................  29
             ------------------------

SECTION 16.  Effect of Headings ............................................  29
             ------------------
</TABLE>

Schedule A--Subsidiaries which are Guarantors
Schedule B--Initial Purchaser Amounts
Schedule C--2% Subsidiaries
Schedule D--Securities

                                      -iv-

<PAGE>

                                   $75,000,000

                     11% Senior Subordinated Notes due 2008

                 SONIC AUTOMOTIVE, INC. (a Delaware corporation)
                       The Guarantors Listed on Schedule A

                                       -1-

<PAGE>

                               PURCHASE AGREEMENT

                                                                November 8, 2001

MERRILL LYNCH & CO.
Merrill Lynch, Pierce, Fenner & Smith
            Incorporated
Banc of America Securities LLC

c/o Merrill Lynch & Co.
Merrill Lynch, Pierce, Fenner & Smith
            Incorporated
North Tower
World Financial Center
New York, New York 10281

Ladies and Gentlemen:

         Sonic Automotive, Inc., a Delaware corporation (the "Company"), and
each of the Guarantors listed on Schedule A hereto (the "Guarantors") confirm
their respective agreements with Merrill Lynch, Pierce, Fenner & Smith
Incorporated ("Merrill Lynch") and Banc of America Securities LLC (the "Initial
Purchasers"), (which term shall also include any initial purchaser substituted
as hereinafter provided in Section 10 hereof), for whom Merrill Lynch is acting
as representative (in such capacity, the "Representative"), with respect to (i)
the issue and sale by the Company and the purchase by the Initial Purchasers,
acting severally and not jointly, of the respective principal amounts set forth
in Schedule B of $75,000,000 aggregate principal amount of the Company's 11%
Senior Subordinated Notes due 2008 (the "Securities") and (ii) the issue and
sale by the Guarantors and the purchase by the Initial Purchasers, acting
severally and not jointly of the guarantees (the "Guarantees") of the Company's
obligations under the Securities. The Securities and the Guarantees are to be
issued pursuant to an indenture dated as of November 19, 2001 (the "Indenture")
among the Company, the Guarantors and U.S. Bank Trust National Association, as
trustee (the "Trustee"). Securities issued in book-entry form will be issued to
Cede & Co. as nominee of The Depository Trust Company ("DTC") pursuant to a
letter agreement, to be dated as of the Closing Time (as defined in Section
2(b)) (the "DTC Agreement"), among the Company, the Trustee and DTC.

         The Company and the Guarantors understand that the Initial Purchasers
propose to make an offering of the Securities (together with the related
Guarantees) on the terms and in the manner set forth herein and agree that the
Initial Purchasers may resell, subject to the conditions set forth herein, all
or a portion of the Securities and the Guarantees to purchasers ("Subsequent
Purchasers") at any time after the date of this Agreement. The Securities and
the Guarantees are to be offered and sold through the Initial Purchasers without
being registered under the Securities Act of 1933, as amended (the "1933 Act"),
in reliance upon exemptions therefrom. Pursuant to the terms of the Securities,
the Guarantees and the Indenture, investors that acquire Securities

                                       -2-

<PAGE>

and Guarantees may only resell or otherwise transfer such Securities and
Guarantees if such Securities and Guarantees are hereafter registered under the
1933 Act or if an exemption from the registration requirements of the 1933 Act
is available (including the exemption afforded by Rule 144A ("Rule 144A")
pursuant to the rules and regulations promulgated under the 1933 Act by the
Securities and Exchange Commission (the "Commission")).

         The Company and the Guarantors have prepared and will deliver to each
Initial Purchaser by November 16, 2001 (by overnight courier), copies of a final
offering memorandum dated November 8, 2001 (the "Final Offering Memorandum"), to
be used by such Initial Purchaser in connection with its solicitation of,
purchases of, or offering of the Securities and the Guarantees. "Offering
Memorandum" means, with respect to any date or time referred to in this
Agreement, all offering memoranda (whether the Final Offering Memorandum, or any
amendment or supplement to such document), including exhibits thereto and any
documents incorporated therein by reference, which has been prepared and
delivered by the Company and the Guarantors to the Initial Purchasers in
connection with their solicitation of, purchases of, or offering of the
Securities and the Guarantees.

         All references in this Agreement to financial statements and schedules
and other information which is "contained," "included" or "stated" in the
Offering Memorandum (or other references of like import) shall be deemed to mean
and include all such financial statements and schedules and other information
which are incorporated by reference in the Offering Memorandum; and all
references in this Agreement to amendments or supplements to the Offering
Memorandum shall be deemed to mean and include the filing of any document under
the Securities Exchange Act of 1934, as amended (the "1934 Act"), which is
incorporated by reference in the Offering Memorandum.

         The holders of the Securities and the Guarantees will be entitled to
the benefits of the registration rights agreement to be dated as of the Closing
Time (the "Registration Rights Agreement"), among the Company, the Guarantors
and the Initial Purchasers, pursuant to which the Company and the Guarantors
will agree among other things, to file, as soon as practicable after the Closing
Time but in any event within 60 days of the Closing Time, a registration
statement with the Commission registering the Exchange Securities (as defined in
the Registration Rights Agreement and including the securities exchanged for the
Original Securities (as defined below)) under the 1933 Act and to offer to
exchange the Company's existing $125,000,000 11% Senior Subordinated Notes due
2008 (the "Original Securities") for an equal principal amount of Exchange
Securities.

         SECTION 1.  Representations and Warranties.
                     ------------------------------

         (a)   Representations and Warranties by the Company and the Guarantors.
The Company and each of the Guarantors, jointly and severally, represent and
warrant to the Initial Purchasers as of the date hereof and as of the Closing
Time referred to in Section 2(b) hereof, and agrees with each Initial Purchaser
as follows:

                                       -3-

<PAGE>

                  (i)   Similar Offerings. The Company and the Guarantors have
                        -----------------
         not, directly or indirectly, solicited any offer to buy or offered to
         sell, and will not, directly or indirectly, solicit any offer to buy or
         offer to sell, in the United States or to any United States citizen or
         resident, any security which is or would be integrated with the sale of
         the Securities and the Guarantees in a manner that would require the
         Securities or the Guarantees to be registered under the 1933 Act.

                  (ii)  Offering Memorandum. The Offering Memorandum does not,
                        -------------------
         and at the Closing Time will not, include an untrue statement of a
         material fact or omit to state a material fact necessary in order to
         make the statements therein, in the light of the circumstances under
         which they were made, not misleading; provided, that this
                                               --------
         representation, warranty and agreement shall not apply to statements in
         or omissions from the Offering Memorandum made in reliance upon and in
         conformity with information furnished to the Company and the Guarantors
         in writing by any Initial Purchaser through Merrill Lynch expressly for
         use in the Offering Memorandum.

                  (iii) Independent Accountants. The accountants who certified
                        -----------------------
         the financial statements (which term as used in this Agreement includes
         the notes related thereto) and supporting schedules (of (i) the Company
         and (ii) its Subsidiaries (as defined below in Section (a)(vii))
         included in the Offering Memorandum are independent certified public
         accountants within the meaning of Regulation S-X under the 1933 Act
         with respect to the Company, the Guarantors and their respective
         Subsidiaries.

                  (iv)  Financial Statements. The financial statements of the
                        --------------------
         Company, together with the related schedules and notes, included in the
         Offering Memorandum present fairly the financial position of the
         Company and its consolidated Subsidiaries at the dates indicated and
         the combined balance sheets, statements of income, statements of
         stockholders' equity and statements of cash flows of the Company and
         its consolidated Subsidiaries for the periods specified; said financial
         statements have been prepared in conformity with United States
         generally accepted accounting principles ("GAAP") applied on a
         consistent basis throughout the periods involved. The summary financial
         information included in the Offering Memorandum presents fairly the
         information shown therein and have been compiled on a basis consistent
         with that of the audited financial statements included in the Offering
         Memorandum. There are no pro forma financial statements and other pro
         forma financial information (including the summary pro forma financial
         information) of the Company, its Subsidiaries and entities acquired or
         to be acquired by the Company or its Subsidiaries and the related notes
         thereto which would be required to be included in the Offering
         Memorandum if the Offering Memorandum were required to comply with the
         requirements of the 1933 Act for a Form S-3 registration statement and
         securities sold pursuant thereto.

                  (v)   No Material Adverse Change in Business. Since the
                        --------------------------------------
respective dates as of which information is given in the Offering Memorandum,
except as otherwise stated therein, (A) there has been no material adverse
change in the condition (financial or otherwise), earnings, business affairs or
business prospects of the Company and its Subsidiaries considered as one
enterprise, whether or not arising in the ordinary course of business (a
"Material Adverse Effect"), (B) there have been no transactions entered into,

                                       -4-

<PAGE>

         or liabilities or obligations incurred, by the Company or any of its
         Subsidiaries, other than those in the ordinary course of business,
         which are material with respect to the Company and its Subsidiaries
         considered as one enterprise, and (C) there has been no dividend or
         distribution of any kind declared, paid or made by the Company on any
         class of its capital stock.

                  (vi)   Good Standing of the Company. The Company has been duly
                         ----------------------------
         organized and is validly existing as a corporation in good standing
         under the laws of the State of Delaware and has corporate power and
         authority to own, lease and operate its properties and to conduct its
         business as described in the Offering Memorandum and to enter into and
         perform its obligations under this Agreement, the Registration Rights
         Agreement, the Indenture, the Securities, the Exchange Securities, and
         the DTC Agreement and to enter into and consummate all the transactions
         in connection therewith as contemplated in the Offering Memorandum; and
         the Company is duly qualified as a foreign corporation to transact
         business and is in good standing in each other jurisdiction in which
         such qualification is required, whether by reason of the ownership or
         leasing of property or the conduct of business, except where the
         failure so to qualify or to be in good standing would not result in a
         Material Adverse Effect.

                  (vii)  Subsidiaries. Each subsidiary of the Company that is a
                         ------------
         Guarantor (each a "Subsidiary" and collectively the "Subsidiaries") is
         listed on Schedule A attached hereto. Each Subsidiary is a corporation,
         limited liability company or limited partnership duly organized, as the
         case may be, validly existing and in good standing under the laws of
         the jurisdiction of its organization, has corporate, limited liability
         company or limited partnership, as the case may be, power and authority
         to own, lease and operate its properties and to conduct its business as
         described in the Offering Memorandum and is duly qualified as a foreign
         corporation to transact business and is in good standing in each
         jurisdiction in which such qualification is required, whether by reason
         of the ownership or leasing of property or the conduct of business,
         except where the failure so to qualify or to be in good standing would
         not result in a Material Adverse Effect; except as otherwise disclosed
         in the Offering Memorandum, all of the issued and outstanding capital
         stock, membership interests or partnership interests, as the case may
         be, of each such Subsidiary have been duly authorized and validly
         issued, is fully paid and non-assessable and is owned by the Company,
         directly or through the Subsidiaries, free and clear of any security
         interest, mortgage, pledge, lien, encumbrance, claim or equity; none of
         the outstanding shares of capital stock of the Subsidiaries was issued
         in violation of any preemptive or similar rights arising by operation
         of law, or under the charter or by-laws of any Subsidiary or under any
         agreement to which the Company or any Subsidiary is a party. Except as
         set forth on Schedule C, none of the Guarantors or any other Subsidiary
         of the Company produced or accounted for more than 2% of the Company's
         total revenues for the six months ended June 30, 2001 (the "Significant
         Subsidiaries").

                  (viii) Capitalization. The authorized, issued and outstanding
                         --------------
         capital stock of the Company is as set forth in the Offering Memorandum
         in the column entitled "Actual" under the caption "Capitalization"
         (except for subsequent issuances, if any, pursuant to employee benefit
         plans referred to in the Offering Memorandum or pursuant to the

                                       -5-

<PAGE>

         exercise of convertible securities or options referred to in the
         Offering Memorandum and subsequent purchases of the Company's Class A
         Common Stock, par value $0.01 per share). The shares of issued and
         outstanding capital stock of the Company have been duly authorized and
         validly issued and are fully paid and non-assessable; and except as
         disclosed in the Offering Memorandum, none of the outstanding shares of
         capital stock of the Company was issued in violation of the preemptive
         or other similar rights of any securityholder of the Company arising by
         operation of law, under the charter or by-laws of the Company, under
         any agreement to which the Company or any of the Subsidiaries is a
         party or otherwise.

                  (ix) Authorization of Agreements. This Agreement and the
                       ---------------------------
         Registration Rights Agreement have each been duly authorized by the
         Company and each of the Guarantors. This Agreement has been, and as of
         the Closing Time the Registration Rights Agreement will have been, duly
         executed and delivered by the Company and each of the Guarantors. Upon
         the execution and delivery thereof by the Company and each of the
         Guarantors, the Registration Rights Agreement will constitute a valid
         and binding obligation of the Company and each of the Guarantors,
         enforceable against the Company and each of the Guarantors in
         accordance with its terms. The DTC Agreement has been duly authorized
         by the Company; as of the Closing Time, the DTC Agreement will have
         been duly executed and delivered by the Company; and, upon the
         execution and delivery thereof by the Company, the DTC Agreement will
         constitute a valid and binding obligation of the Company, enforceable
         against the Company in accordance with its terms.

                  (x)  Authorization of the Indenture. The Indenture has been
                       ------------------------------
         duly authorized by the Company and each of the Guarantors and, at the
         Closing Time, will have been duly executed and delivered by the Company
         and each of the Guarantors and will constitute a valid and binding
         agreement of the Company and each of the Guarantors, enforceable
         against the Company and each of the Guarantors in accordance with its
         terms.

                  (xi) Authorization of the Securities, the Guarantees and the
                       -------------------------------------------------------
                  Exchange Securities. The Securities have been duly authorized
                  -------------------
         by the Company and, at the Closing Time, will have been duly executed
         by the Company and, when authenticated in the manner provided for in
         the Indenture and delivered against payment of the purchase price
         therefor, will constitute valid and binding obligations of the
         Company, enforceable against the Company in accordance with their
         terms and will be in the form contemplated by, and entitled to the
         benefits of, the Indenture. The Guarantees have been duly authorized
         by each of the Guarantors and, at the Closing Time, will have been
         duly executed by each of the Guarantors and, when authenticated in the
         manner provided for in the Indenture and delivered against payment of
         the purchase price therefor, will constitute valid and binding
         obligations of each of the Guarantors, enforceable against each of the
         Guarantors in accordance with their terms, and will be in the form
         contemplated by, and entitled to the benefits of, the Indenture. The
         Exchange Securities, which shall include any securities which may be
         issued in exchange for the Original Securities (as defined in the
         Registration Rights Agreement) have been duly authorized by the
         Company and each

                                       -6-

<PAGE>

          of the Guarantors and, when executed and authenticated and issued and
          delivered by the Company and each of the Guarantors in exchange for
          the Securities and the Original Securities and, in each case, the
          related Guarantees pursuant to the Exchange Offer (as defined in the
          Registration Rights Agreement), will constitute valid and binding
          obligations of the Company and each of the Guarantors.

               (xii)  Description of the Securities, the Guarantees, the
                      --------------------------------------------------
               Indenture, the Registration Rights Agreement and the Exchange
               -------------------------------------------------------------
               Securities. The Securities, the Guarantees, the Indenture, the
               ----------
          Registration Rights Agreement, the Company's floor plan facilities,
          credit facilities and mortgage facilities conform and will conform in
          all material respects to the respective statements relating thereto
          contained in the Offering Memorandum and will be in substantially the
          respective forms previously delivered to the Initial Purchasers. The
          Exchange Securities will conform in all material respects to the
          statements relating thereto contained in the Offering Memorandum and
          the Registration Statement (as defined in the Registration Rights
          Agreement) at the time it becomes effective. There are no contracts or
          documents which are required to be described or referred to in a
          registration statement on Form S-1 under the 1933 Act which have not
          been described or referred to in the Offering Memorandum. The terms of
          the Notes and the Original Securities are identical.

               (xiii) Absence of Defaults and Conflicts. (1) Except as disclosed
                      ---------------------------------
          in the Offering Memorandum, neither the Company nor any of the
          Subsidiaries is in violation of its charter or by-laws or in default
          in the performance or observance of any obligation, agreement,
          covenant or condition contained in any contract, indenture, mortgage,
          deed of trust, loan or credit agreement, note, lease or other
          agreement or instrument to which the Company or any of the
          Subsidiaries is a party or by which any of them may be bound, or to
          which any of the property or assets of the Company or any of the
          Subsidiaries is subject (collectively, "Agreements and Instruments")
          or has violated or is in violation of any applicable law, statute,
          rule, regulation, judgment, order, writ or decree of any government,
          government instrumentality or court, domestic or foreign, having
          jurisdiction over the Company or any of the Subsidiaries or any of
          their assets, properties or operations, except in each case for such
          defaults or violations that would not result in a Material Adverse
          Effect. (2) Except as disclosed in the Offering Memorandum, the
          execution, delivery and performance of this Agreement, the
          Registration Rights Agreement, the Indenture, the DTC Agreement, the
          Securities, the Guarantees, the Exchange Securities and any other
          agreement or instrument entered into or issued or to be entered into
          or issued by the Company or any of the Guarantors in connection with
          the transactions contemplated hereby or thereby or in the Offering
          Memorandum or in connection with the consummation of the transactions
          contemplated herein and in the Offering Memorandum (including the
          issuance and sale of the Securities and the Guarantees and the use of
          the proceeds from the sale of the Securities (together with the
          related Guarantees as described in the Offering Memorandum under the
          caption "Use of Proceeds"), the exchange of the Securities and the
          Original Securities for Exchange Securities and compliance by the
          Company and the Guarantors with their respective obligations
          hereunder) have been duly authorized by all necessary corporate,
          limited

                                       -7-

<PAGE>

          liability company or partnership action and do not and will not,
          whether with or without the giving of notice or passage of time or
          both, conflict with or constitute a breach of, or default or a
          Repayment Event (as defined below) under, or result in the creation or
          imposition of any lien, charge or encumbrance upon any property or
          assets of the Company or any of the Subsidiaries (other than existing
          liens on properties being acquired in the pending acquisitions)
          pursuant to, the Agreements and Instruments, nor will such action
          result in any violation of the provisions of the charter or by-laws of
          the Company or any of the Subsidiaries or any applicable law, statute,
          rule, regulation, judgment, order, writ or decree of any government,
          government instrumentality or court, domestic or foreign, having
          jurisdiction over the Company or any of the Subsidiaries or any of
          their assets, properties or operations. As used herein, a "Repayment
          Event" means any event or condition which gives the holder of any
          note, debenture or other evidence of indebtedness (or any person
          acting on such holder's behalf) the right to require the repurchase,
          redemption or repayment of all or a portion of such indebtedness by
          the Company or any of the Subsidiaries.

               (xiv) Absence of Labor Disputes. No material labor dispute with
                     -------------------------
          the employees of the Company or any of the Subsidiaries exists or, to
          the knowledge of the Company and the Guarantors, is imminent, and
          except as disclosed in the Offering Memorandum, the Company and the
          Guarantors are not aware of any existing or imminent labor disturbance
          by the employees of any of their or any of the Subsidiaries' principal
          suppliers, manufacturers, customers or contractors, which, in either
          case, may reasonably be expected to result in a Material Adverse
          Effect.

               (xv)  Absence of Proceedings. Except as disclosed in the Offering
                     ----------------------
          Memorandum, there is no action, suit, proceeding, inquiry or
          investigation, in each case before or by any court or governmental
          agency or body, domestic or foreign, now pending, or, to the knowledge
          of the Company or any Guarantor, threatened, against or affecting (i)
          the Company or any Subsidiary thereof or (ii) or property owned or
          leased by, the Company or any of the Subsidiaries which, singly or in
          the aggregate, might reasonably be expected to result in a Material
          Adverse Effect, or which, singly or in the aggregate, might reasonably
          be expected to materially and adversely affect the properties or
          assets of the Company or any of the Significant Subsidiaries or the
          consummation of this Agreement or the performance by the Company and
          the Guarantors of their respective obligations hereunder or under the
          Securities, the Guarantees or the Exchange Securities. The aggregate
          of all pending legal or governmental proceedings to which the Company
          or any Subsidiary thereof is a party or of which any of their
          respective property or assets is the subject which are not described
          in the Offering Memorandum, including ordinary routine litigation
          incidental to the business, could not reasonably be expected to result
          in a Material Adverse Effect.

               (xvi) Possession of Intellectual Property. The Company and the
                     -----------------------------------
          Subsidiaries own, possess or license, or can acquire on reasonable
          terms, adequate patents, patent rights, licenses, inventions,
          copyrights, know-how (including trade secrets and other unpatented
          and/or unpatentable proprietary or confidential information, systems
          or procedures), trademarks, service marks, trade names or other
          intellectual property

                                       -8-

<PAGE>

          (collectively, "Intellectual Property") presently employed by them in
          connection with the business now operated by them, and neither the
          Company nor any of the Subsidiaries has received any notice or is
          otherwise aware of any infringement of or conflict with asserted
          rights of others with respect to any Intellectual Property (including
          Intellectual Property which is licensed) or of any facts or
          circumstances which would render any Intellectual Property invalid or
          inadequate to protect the interest of the Company or any of the
          Subsidiaries therein, and which infringement or conflict (if the
          subject of any unfavorable decision, ruling or finding) or invalidity
          or inadequacy, singly or in the aggregate, would reasonably be
          expected to result in a Material Adverse Effect.

               (xvii)  Absence of Further Requirements. Except as may be
                       -------------------------------
          required under state securities laws or to effect the Exchange Offer
          contemplated by the Registration Rights Agreement, no filing with, or
          authorization, approval, consent, license, order, registration,
          qualification or decree of, any court or governmental authority or
          agency is necessary or required for the performance by the Company or
          any of the Guarantors of their respective obligations hereunder, in
          connection with the offering, issuance or sale of the Securities and
          the Guarantees hereunder or the consummation of the transactions
          contemplated by or for the due execution, delivery or performance of
          this Agreement, the Registration Rights Agreement, the Indenture, the
          DTC Agreement, the Securities, the Guarantees, the Exchange Securities
          or any other agreement or instrument entered into or issued or to be
          entered into or issued by the Company or any of the Subsidiaries in
          connection with the consummation of the transactions contemplated
          herein and in the Offering Memorandum (including the issuance and sale
          of the Securities and the Guarantees and the use of the proceeds from
          the sale of the Securities and the Guarantees as described in the
          Offering Memorandum under the caption "Use of Proceeds").

               (xviii) Possession of Licenses and Permits. The Company and the
                       ----------------------------------
          Subsidiaries possess such permits, licenses, approvals, consents,
          certificates and other authorizations (collectively, "Governmental
          Licenses") issued by the appropriate federal, state, local or foreign
          regulatory agencies or bodies necessary to conduct the business now
          operated by them, except where the failure to possess such
          Governmental Licenses would not, singly or in the aggregate, have a
          Material Adverse Effect; the Company and the Subsidiaries are in
          compliance with the terms and conditions of all such Governmental
          Licenses and with the rules and regulations of the regulatory
          authorities and governing bodies having jurisdiction with respect
          thereto, except where the failure so to comply would not, singly or in
          the aggregate, have a Material Adverse Effect; all of the Governmental
          Licenses are valid and in full force and effect, except where the
          invalidity of such Governmental Licenses or the failure of such
          Governmental Licenses to be in full force and effect would not have a
          Material Adverse Effect; and neither the Company nor any of the
          Subsidiaries has received any written notice of proceedings relating
          to the revocation or modification of any such Governmental Licenses,
          nor are there, to the knowledge of the Company or any Guarantor,
          pending or threatened actions, suits, claims or proceedings against
          the Company or any Subsidiary before any court, governmental agency or
          body or otherwise that, if successful, would limit, revoke, cancel,
          suspend or cause not to be renewed any Governmental License, in each
          case, which, singly or in the aggregate, if the subject of an
          unfavorable decision, ruling or finding, would result in a Material
          Adverse Effect.

                                       -9-

<PAGE>

               (xix)  Title to Property. The Company and the Subsidiaries have
                      -----------------
          good and marketable title to all real property owned by the Company
          and the Subsidiaries and good title to all other properties owned by
          them, in each case, free and clear of all mortgages, pledges, liens,
          security interests, claims, restrictions or encumbrances of any kind
          except such as (a) are described in the Offering Memorandum or (b) do
          not, singly or in the aggregate, materially affect the value of such
          property and do not interfere with the use made and proposed to be
          made of such property by the Company or any of the Subsidiaries; and
          all of the leases and subleases material to the business of the
          Company and the Subsidiaries, considered as one enterprise, and under
          which the Company or any of the Subsidiaries holds properties
          described in the Offering Memorandum, are in full force and effect,
          and neither the Company nor any of the Subsidiaries has any notice of
          any material claim of any sort that has been asserted by anyone
          adverse to the rights of the Company or any of the Subsidiaries under
          any of the leases or subleases mentioned above, or affecting or
          questioning the rights of the Company or any Subsidiary to the
          continued possession of the leased or subleased premises under any
          such lease or sublease.

               (xx)   Tax Returns. All United States federal income tax returns
                      -----------
          of the Company and the Subsidiaries required by law to be filed have
          been filed (taking into account extensions granted by the applicable
          federal governmental agency) and all taxes shown by such returns or
          pursuant to any assessment received by the Company or any Subsidiary,
          which are due and payable, have been paid, except assessments against
          which appeals have been or will be promptly taken in good faith and as
          to which adequate reserves have been provided. The Company and the
          Subsidiaries have filed all other tax returns that are required to
          have been filed by them pursuant to applicable foreign, federal,
          state, local or other law, and have paid all taxes due pursuant to
          such returns or pursuant to any assessment received by the Company and
          the Subsidiaries, except for such taxes, if any, as are being
          contested in good faith and by appropriate proceedings and as to which
          adequate reserves have been provided. The charges, accruals and
          reserves on the books of the Company in respect of all federal, state,
          local and foreign tax liabilities of the Company and each Subsidiary
          for any years not finally determined are adequate to meet any
          assessments or re-assessments for additional income tax for any years
          not finally determined, except to the extent of any inadequacy that
          would not result in a Material Adverse Effect.

               (xxi)  Insurance. The Company and the Subsidiaries carry or are
                      ---------
          entitled to the benefits of insurance, with financially sound and
          reputable insurers, in such amounts and covering such risks as is
          generally maintained by companies of established repute engaged in the
          same or similar business and all such insurance is in full force and
          effect.

               (xxii) Solvency. The Company and each of the Guarantors is, and
                      --------
          immediately after the Closing will be, Solvent. As used herein, the
          term "Solvent" means, with respect to the Company and each Guarantor,
          as the case may be, on a particular date, that on such date (A) the
          fair market value of the assets of the Company or such Guarantor is
          greater than the total amount of liabilities (including contingent
          liabilities) of the Company or such Guarantor, (B) the present fair
          salable value of the

                                       -10-

<PAGE>

     assets of the Company or such Guarantor is greater than the amount that
     will be required to pay the probable liabilities of the Company or such
     Guarantor on its debts as they become absolute and mature, (C) the Company
     or such Guarantor is able to realize upon its assets and pay its debts and
     other liabilities, including contingent obligations, as they mature, and
     (D) the Company or such Guarantor does not have unreasonably small capital.

          (xxiii) Stabilization or Manipulation. Neither the Company nor any
                  -----------------------------
     Guarantor nor any of their respective officers, directors or controlling
     persons has taken, or will take, directly or indirectly, any action
     designed to cause or to result in, or that has constituted or which might
     reasonably be expected to constitute, the stabilization or manipulation of
     the price of any security of the Company or any Guarantor in order to
     facilitate the sale or resale of the Securities or the Guarantees. The
     Company and the Guarantors have not distributed and, prior to the later to
     occur of (i) the Closing Time and (ii) completion of the distribution of
     the Securities and the Guarantees, will not distribute any offering
     material in connection with the offering and sale of the Securities and the
     Guarantees other than the Offering Memorandum or other materials, if any,
     permitted by the 1933 Act and approved by the Representative.

          (xxiv)  Related Party Transactions. No relationship, direct or
                  --------------------------
     indirect, exists between or among any of the Company, the Guarantors or any
     affiliate of the Company or any Guarantor, on the one hand, and any
     director, officer, stockholder, customer or supplier of any of them, on the
     other hand, which is required by the 1933 Act or by the rules and
     regulations enacted thereunder to be described in a registration statement
     on Form S-3 which is not so described or is not described as required in
     the Offering Memorandum.

          (xxv)   Suppliers. No supplier of merchandise to the Company or any of
                  ---------
     the Subsidiaries has ceased shipments of merchandise to the Company or any
     of the Subsidiaries, other than in the normal and ordinary course of
     business consistent with past practices, which cessation would not result
     in a Material Adverse Effect.

          (xxvi)  Environmental Laws. Except as described in the Offering
                  ------------------
     Memorandum and except for such matters as would not, singly or in the
     aggregate, result in a Material Adverse Effect, (A) neither the Company nor
     any of the Subsidiaries is in violation of any federal, state, local or
     foreign statute, law, rule, regulation, ordinance, code, policy or rule of
     common law or any judicial or administrative interpretation thereof,
     including any judicial or administrative order, consent, decree or
     judgment, relating to pollution or protection of human health, the
     environment (including, without limitation, ambient air, surface water,
     groundwater, land surface or subsurface strata) or wildlife, including,
     without limitation, laws and regulations relating to the release or
     threatened release of chemicals, pollutants, contaminants, wastes, toxic
     substances, hazardous substances, petroleum or petroleum products or
     nuclear or radioactive material (collectively, "Hazardous Materials") or to
     the manufacture, processing, distribution, use, treatment, storage,
     disposal, transport or handling of Hazardous Materials (collectively,
     "Environmental Laws"); (B) the Company and the Subsidiaries have all
     permits, licenses,

                                       -11-

<PAGE>

     authorizations and approvals required for their respective businesses under
     any applicable Environmental Laws and are each in compliance with their
     requirements, (C) there are no pending or threatened administrative,
     regulatory or judicial actions, suits, demands, demand letters, claims,
     liens, notices of noncompliance or violation, investigation or proceedings
     relating to any Environmental Law against the Company or any of the
     Subsidiaries and (D) there are no events, facts or circumstances that might
     reasonably be expected to form the basis of any liability or obligation of
     the Company or any of the Subsidiaries, including, without limitation, any
     order, decree, plan or agreement requiring clean-up or remediation, or any
     action, suit or proceeding by any private party or governmental body or
     agency, against or affecting the Company or any of the Subsidiaries
     relating to any Hazardous Materials or Environmental Laws.

          (xxvii)  Registration Rights. Except as described in the Offering
                   -------------------
     Memorandum, there are no holders of securities (debt or equity) of the
     Company or any Guarantor, or holders of rights (including, without
     limitation, preemptive rights), warrants or options to obtain securities of
     the Company or any Guarantor, who in connection with the issuance, sale and
     delivery of the Securities, the Guarantees and the Exchange Securities, if
     any, and the execution, delivery and performance of this Agreement and the
     Registration Rights Agreement, have the right to request the Company or any
     Guarantor to register securities held by them under the 1933 Act.

          (xxviii) Accounting Controls. The Company and its consolidated
                   -------------------
     Subsidiaries maintain a system of internal accounting controls sufficient
     to provide reasonable assurances that (A) transactions are executed in
     accordance with management's general or specific authorization; (B)
     transactions are recorded as necessary to permit preparation of financial
     statements in conformity with United States GAAP and to maintain
     accountability for assets; (C) access to assets is permitted only in
     accordance with management's general or specific authorization; and (D) the
     amounts recorded for assets is compared with the existing assets at
     reasonable intervals and appropriate action is taken with respect to any
     differences.

          (xxix)   Investment Company Act. The Company and each of the
                   ----------------------
     Guarantors is not, and upon the issuance and sale of the Securities and the
     Guarantees as herein contemplated and the application of the net proceeds
     therefrom as described in the Offering Memorandum will not be, an
     "investment company" or an entity "controlled" by an "investment company"
     as such terms are defined in the Investment Company Act of 1940, as amended
     (the "1940 Act").

          (xxx)    Rule 144A Eligibility. The Securities and the Guarantees are
                   ---------------------
     eligible for resale pursuant to Rule 144A and will not be, at the Closing
     Time, of the same class as securities listed on a national securities
     exchange registered under Section 6 of the 1934 Act, or quoted in a U.S.
     automated interdealer quotation system.

          (xxxi)   No General Solicitation. None of the Company, the Guarantors,
                   -----------------------
     any of their respective affiliates, as such term is defined in Rule 501(b)
     under the 1933 Act ("Affiliates"), or any person acting on any of their
     behalf (other than the Initial Purchasers, as to whom the Company and the
     Guarantors make no representation) has

                                       -12-

<PAGE>

     engaged or will engage, in connection with the offering of the Securities
     and the Guarantees, in any form of general solicitation or general
     advertising within the meaning of Rule 502(c) under the 1933 Act.

          (xxxii)  No Registration Required. Subject to compliance by the
                   ------------------------
     Initial Purchasers with the representations and warranties set forth in
     Section 2, it is not necessary in connection with the offer, sale and
     delivery of the Securities and the Guarantees to the Initial Purchasers and
     to each Subsequent Purchaser in the manner contemplated by this Agreement
     and the Offering Memorandum to register the Securities and the Guarantees
     under the 1933 Act or to qualify the Indenture under the Trust Indenture
     Act of 1939, as amended.

          (xxxiii) PORTAL. There are no securities of the Company or any of the
                   ------
     Guarantors which are of the same class as the Securities or the Guarantees
     that are listed on a national securities exchange registered under Section
     6 of the 1934 Act, or quoted in a United States automated inter dealer
     quotation system. The Company and the Guarantors have been advised by the
     National Association of Securities Dealers, Inc. PORTAL Market that the
     Securities and the Guarantees will be designated Private Offerings, Resales
     and Trading Through Automated Linkages ("PORTAL") eligible securities in
     accordance with the rules and regulations of the National Association of
     Securities Dealers, Inc.

          (xxxiv)  Franchise Agreements. Each franchise agreement, in each case
                   --------------------
     between a Subsidiary and the applicable manufacturer has been duly
     authorized by the Company and such Subsidiaries, and, as of the Closing
     Time, the Company shall have obtained all consents, authorizations and
     approvals from the Manufacturers required to consummate the Offering.

          (xxxv)   Smith Subordination Agreement. The Subordinated Smith Loan
                   -----------------------------
     (as defined in the Offering Memorandum) will be governed by a Subordination
     Agreement to be dated November 19, 2001, which will be in a form agreed to
     by the Representative and shall be binding and enforceable against O.
     Bruton Smith, and under which the debt owed to Mr. Smith is subordinated to
     the Securities and the Exchange Securities.

     (b)  Officer's Certificates. Any certificate signed by any officer of the
Company or any of the Subsidiaries delivered to the Initial Purchasers or to
counsel for the Initial Purchasers shall be deemed a representation and warranty
by the Company or any of the Subsidiaries to the Initial Purchasers as to the
matters covered thereby.

     SECTION 2. Sale and Delivery to Initial Purchasers; Closing.
                ------------------------------------------------

     (a)  Securities and Guarantees. On the basis of the representations and
warranties herein contained and subject to the terms and conditions herein set
forth, the Company and the Guarantors agree to sell to each Initial Purchaser,
severally and not jointly, and each Initial Purchaser, severally and not
jointly, agrees to purchase from the Company and the Guarantors, at the price
set forth in Schedule D, the aggregate principal amount of Securities (including
the Guarantees) set forth in Schedule B opposite the name of such Initial
Purchaser, plus any

                                       -13-

<PAGE>

additional principal amount of Securities (including the Guarantees) which such
Initial Purchaser may become obligated to purchase pursuant to the provisions of
Section 10 hereof.

     (b) Payment. Payment of the purchase price for, and delivery of
certificates for, the Securities and the Guarantees shall be made at the office
of Fried, Frank, Harris, Shriver & Jacobson, or at such other place as shall be
agreed upon by the Representative and the Company and the Guarantors at 9:00
A.M. (New York Time) on November 19, 2001 (unless postponed in accordance with
the provisions of Section 10), or such other time not later than ten business
days after such date as shall be agreed upon by the Representative and the
Company and the Guarantors (such time and date of payment and delivery being
herein called the "Closing Time").

     Payment shall be made to the Company and the Guarantors by wire transfer of
immediately available funds to a bank account designated by the Company and the
Guarantors, against delivery to the respective accounts of the Initial
Purchasers of certificates for the Securities and the Guarantees to be purchased
by them. It is understood that each Initial Purchaser has authorized the
Representative, for its account, to accept delivery of, receipt for, and make
payment of the purchase price for, the Securities and the Guarantees which it
has agreed to purchase. Merrill Lynch, individually and not as representative of
the Initial Purchasers, may (but shall not be obligated to) make payment of the
purchase price for the Securities and the Guarantees to be purchased by any
Initial Purchaser whose funds have not been received by the Closing Time, but
such payment shall not relieve such Initial Purchaser from its obligations
hereunder. The certificates representing the Securities and the Guarantees shall
be registered in the name of Cede & Co. pursuant to the DTC Agreement, or
physical certificates representing the Securities and the Guarantees shall be
registered in the names and denominations requested by each Initial Purchaser,
and in either case shall be made available for examination and packaging by the
Initial Purchasers in The City of New York not later than 9:00 A.M. on the last
business day prior to the Closing Time.

     (c) Qualified Institutional Buyer. Each Initial Purchaser severally and not
jointly represents and warrants to, and agrees with, the Company and each of the
Guarantors that it is a "qualified institutional buyer" within the meaning of
Rule 144A under the 1933 Act (a "Qualified Institutional Buyer").

     (d) Denominations; Registration. Certificates representing the Securities
(including the Guarantees) shall be in such denominations ($1,000 or integral
multiples thereof) and registered in such names as the Representative may
request in writing at least one full business day before the Closing Time.

     SECTION 3. Covenants of the Company and the Guarantors. The Company and the
                -------------------------------------------
Guarantors, jointly and severally, covenant with each Initial Purchaser as
follows:

     (a) Offering Memorandum. The Company and the Guarantors, as promptly as
possible, will furnish to each Initial Purchaser, without charge, such number of
copies of the Offering Memorandum thereto such Initial Purchaser may reasonably
request.

                                       -14-

<PAGE>

     (b) Notice and Effect of Material Events. The Company and the Guarantors
will immediately notify each Initial Purchaser, and confirm such notice in
writing, of (x) any filing made by the Company or any Guarantor of information
relating to the offering of the Securities and the Guarantees with any
securities exchange or any other regulatory body in the United States or any
other jurisdiction, and (y) prior to the completion of the placement of the
Securities and the Guarantees by the Initial Purchasers, any material changes in
or affecting the earnings, business affairs or business prospects of the Company
and the Subsidiaries which (i) make any statement in the Offering Memorandum
false or misleading or (ii) are not disclosed in the Offering Memorandum. In
such event or if during such time any event shall occur or condition shall exist
as a result of which it is necessary, in the opinion of the Company and the
Guarantors, their counsel, the Initial Purchasers or counsel for the Initial
Purchasers, to amend or supplement the Offering Memorandum in order that the
Offering Memorandum not include any untrue statement of a material fact or omit
to state a material fact necessary in order to make the statements therein not
misleading in the light of the circumstances then existing, the Company will
forthwith amend or supplement the Offering Memorandum by preparing and
furnishing to each Initial Purchaser an amendment or amendments of, or a
supplement or supplements to, the Offering Memorandum (in form and substance
satisfactory in the opinion of counsel for the Initial Purchasers) so that, as
so amended or supplemented, the Offering Memorandum will not include an untrue
statement of a material fact or omit to state a material fact necessary in order
to make the statements therein, in the light of the circumstances existing at
the time it is delivered to a Subsequent Purchaser, not misleading.

     (c) Amendment to Offering Memorandum and Supplements. The Company and the
Guarantors will advise each Initial Purchaser promptly of any proposal to amend
or supplement the Offering Memorandum and will not effect such amendment or
supplement without the consent of the Initial Purchasers. Neither the consent of
the Initial Purchasers to, nor the Initial Purchasers' delivery of, any such
amendment or supplement, shall constitute a waiver of any of the conditions set
forth in Section 5 hereof.

     (d) Qualification of Securities and Guarantees for Offer and Sale. The
Company and the Guarantors will endeavor, in cooperation with the Initial
Purchasers, to register or qualify the Securities and the Guarantees for
offering and sale under the applicable securities laws of such jurisdictions as
the Representative may designate and will maintain such qualifications in effect
as long as required for the sale of the Securities and the Guarantees; provided,
however, that the Company and the Guarantors shall not be obligated to file any
general consent to service of process or to qualify as a foreign corporation or
as a dealer in securities in any jurisdiction in which it is not so qualified or
to subject itself to taxation in respect of doing business in any jurisdiction
in which it is not otherwise so subject.

     (e) Exchange Offer. The Company and the Guarantors will offer the holders
of the Company's 11% Senior Subordinated Notes due 2008 the opportunity to
exchange such notes for the Exchange Securities. Such offer will be on terms
acceptable to Merrill Lynch and shall be made as soon after the date hereof as
is practicable in accordance with the Registration Rights Agreement.

                                       -15-

<PAGE>

     (f) Integration. The Company and the Guarantors agree that they will not
and will cause their affiliates not to make any offer or sale of securities of
the Company or any Guarantor of any class if, as a result of the doctrine of
"integration" referred to in Rule 502 promulgated under the 1933 Act, such offer
or sale could be deemed to render invalid (for the purpose of (i) the sale of
the Securities and the Guarantees by the Company and the Guarantors to the
Initial Purchasers, (ii) the resale of the Securities and the Guarantees by the
Initial Purchasers to Subsequent Purchasers or (iii) the resale of the
Securities and the Guarantees by such Subsequent Purchasers to others) the
exemption from the registration requirements of the 1933 Act provided by Section
4(2) thereof or by Rule 144A or by Regulation S thereunder or otherwise.

     (g) Rating of Securities. The Company and the Guarantors shall take all
reasonable action necessary to enable Standard & Poor's Ratings Group, a
division of McGraw Hill, Inc. ("S&P"), and Moody's Investors Service, Inc.
("Moody's"), to provide their respective credit ratings of the Securities and
the Guarantees.

     (h) Rule 144A Information. The Company and the Guarantors agree that, in
order to render the Securities and the Guarantees eligible for resale pursuant
to Rule 144A under the 1933 Act, while any of the Securities and the Guarantees
remain outstanding, it will make available, upon request, to any holder of
Securities and Guarantees or prospective purchasers of Securities and Guarantees
the information specified in Rule 144A(d)(4), unless the Company and the
Guarantors furnish information to the Commission pursuant to Section 13 or 15(d)
of the 1934 Act (such information, whether made available to holders or
prospective purchasers or furnished to the Commission, is hereinafter referred
to as "Additional Information").

     (i) Restriction on Resales. Until the expiration of two years after the
original issuance of the Securities and the Guarantees, the Company and the
Guarantors will not, and will cause their "affiliates" (as such term is defined
in Rule 144(a)(1) under the 1933 Act) not to, resell any Securities and
Guarantees which are "restricted securities" (as such term is defined under Rule
144(a)(3) under the 1933 Act) that have been reacquired by any of them and shall
immediately upon any purchase of any such Securities and Guarantees submit such
Securities and Guarantees to the Trustee for cancellation.

     (j) Use of Proceeds. The Company and the Guarantors will use the net
proceeds received by them from the sale of the Securities and the Guarantees in
the manner specified in the Offering Memorandum under "Use of Proceeds."

     (k) Restriction on Sale of Securities. During a period of 180 days from the
date of the Final Offering Memorandum, the Company and the Guarantors will not,
without the prior written consent of Merrill Lynch, directly or indirectly,
issue, sell, offer to sell, grant any option for the sale of, or otherwise
dispose of, any debt securities or guarantees of debt securities of the Company
or any of the Guarantors, or any securities convertible or exchangeable into or
exercisable for any debt securities or guarantees of debt securities of the
Company or any of the Guarantors, and will not file a registration statement in
connection therewith (other than a registration statement registering solely the
Securities, the Guarantees and/or the Exchange

                                       -16-

<PAGE>

Securities); provided, however, the Company may incur indebtedness under its
existing revolving credit, floor plan and construction/mortgage facilities.

     (l) DTC Clearance. The Company and the Guarantors will use all reasonable
efforts in cooperation with the Initial Purchasers to permit the Securities and
the Guarantees to be eligible for clearance and settlement through DTC.

     (m) Legends. Each certificate representing a Security (including a
Guarantee) will bear the legend contained in "Notices to Investors" in the
Offering Memorandum for the time period and upon the other terms stated in the
Offering Memorandum.

     (n) Interim Financial Statements. Prior to the Closing Time, the Company
shall furnish to the Initial Purchasers any unaudited interim financial
statements of the Company, promptly after they have been completed, for any
periods subsequent to the periods covered by the financial statements appearing
in the Offering Memorandum.

     (o) Periodic Reports. For a period of three years after the Closing Time,
the Company and the Guarantors will furnish to the Initial Purchasers copies of
all annual reports, quarterly reports and current reports (excluding exhibits)
filed with the Commission on Forms 10-K, 10-Q and 8-K, or such other similar
forms as may be designated by the Commission, and such other documents, reports
and information as shall be furnished by the Company and the Guarantors
generally to the holders of the Securities and the Guarantees or to security
holders of its publicly issued securities generally.

     SECTION 4. Payment of Expenses.
                -------------------

     (a) Expenses. The Company and the Guarantors, jointly and severally, will
pay (or cause to be paid) all expenses incident to the performance of their
respective obligations under this Agreement, including (i) the preparation,
printing and any filing of the Offering Memorandum and the Registration
Statement (including financial statements and any schedules or exhibits) and of
each amendment or supplement thereto, including the Offering Memorandum and the
Exchange Offer prospectus to be contained in the Registration Statement, (ii)
the preparation, printing and delivery to the Initial Purchasers of this
Agreement, the Registration Rights Agreement, the Indenture and such other
documents as may be required in connection with the offering, purchase, sale and
delivery of the Securities and the Guarantees, (iii) the preparation, issuance
and delivery of the certificates for the Securities and the Guarantees to the
Initial Purchasers, including any charges of DTC in connection therewith, (iv)
the fees and disbursements of the Company's and the Guarantors' counsel,
accountants and other advisors, (v) the qualification of the Securities and the
Guarantees under securities laws in accordance with the provisions of Section
3(d) hereof, including filing fees and the reasonable fees and disbursements of
counsel for the Initial Purchasers in connection therewith and in connection
with the preparation, printing and delivery to the Initial Purchasers of copies
of any memorandum related to blue sky matters, any supplement thereto or any
survey of investment qualifications, (vi) the fees and expenses of the Trustee,
including the fees and disbursements of

                                       -17-

<PAGE>

counsel for the Trustee in connection with the Indenture and the Securities and
the Guarantees, (vii) any fees payable in connection with the rating of the
Securities and the Guarantees and the listing of the Securities and the
Guarantees with the PORTAL market, and (viii) any filing fees incident to, and
any reasonable fees and disbursements of counsel to the Initial Purchasers in
connection with, the review by the National Association of Securities Dealers,
Inc. of the terms of the sale of the Securities and the Guarantees.

     (b) Termination of Agreement. If this Agreement is terminated by the
Representative in accordance with the provisions of Section 5 or Section 9(a)(i)
or 9(a)(ii) hereof, the Company and the Guarantors, jointly and severally, shall
reimburse the Initial Purchasers for all of their out-of-pocket expenses,
including the reasonable fees and disbursements of counsel for the Initial
Purchasers.

     SECTION 5. Conditions of Initial Purchasers' Obligations. The obligations
                ---------------------------------------------
of the several Initial Purchasers hereunder are subject to the accuracy of the
representations and warranties of the Company and the Guarantors contained in
Section 1 hereof or in certificates of any officer of the Company or any of the
Subsidiaries delivered pursuant to the provisions hereof, to the performance by
the Company and the Guarantors of their covenants and other obligations
hereunder, and to the following further conditions:

     (a) Opinion of Counsel for the Company and the Guarantors. At the Closing
Time, the Initial Purchasers shall have received the favorable opinion, dated as
of the Closing Time, of Moore & Van Allen PLLC, counsel for the Company and the
Guarantors, in form and substance satisfactory to counsel for the Initial
Purchasers, together with signed or reproduced copies of such letters for each
of the other Initial Purchasers, to the effect previously agreed to by the
parties and to such further effect as counsel for the Initial Purchasers may
reasonably request.

     (b) Opinion of Counsel for the Initial Purchasers. At the Closing Time, the
Initial Purchasers shall have received the favorable opinion, dated as of the
Closing Time, of Fried, Frank, Harris, Shriver & Jacobson, counsel for the
Initial Purchasers, together with signed or reproduced copies of such letter for
each of the other Initial Purchasers, with respect to certain matters agreed
upon. In giving such opinion such counsel may rely, as to all matters governed
by the laws of jurisdictions other than the law of the State of New York and the
federal law of the United States and the General Corporation Law of the State of
Delaware, upon the opinions of counsel satisfactory to the Representative. Such
counsel may also state that, insofar as such opinion involves factual matters,
they have relied, to the extent they deem proper, upon certificates of officers
of the Company, the Guarantors and the Subsidiaries and certificates of public
officials.

     (c) Officers' Certificate. At the Closing Time, (i) the Offering
Memorandum, as it may then be amended or supplemented, including any documents
incorporated by reference therein, shall not contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading; (ii) there shall not
have been, since the date hereof or since the respective dates as of which
information is given in the Offering Memorandum, any material adverse change in
the condition

                                       -18-

<PAGE>

(financial or otherwise), earnings, business affairs or business prospects of
the Company and its Subsidiaries, considered as one enterprise, whether or not
arising in the ordinary course of business; (iii) the Company and the Guarantors
shall have complied with all agreements and satisfied all conditions on its part
to be performed or satisfied at or prior to the Closing Time; and (iv) the
representations and warranties of the Company and the Guarantors in Section 1
shall be accurate and true and correct as though expressly made at and as of the
Closing Time. At the Closing Time, the Initial Purchasers shall have received a
certificate of the Chief Executive Officer of the Company and the Chief
Financial Officer of the Company, and equivalent officials of each Guarantor,
dated as of the Closing Time, to such effect.

     (d) Accountants' Letters and Consents. At the Closing Time, the Initial
Purchasers shall have received from Deloitte & Touche LLP a letter dated such
date, in form and substance satisfactory to the Representative and to counsel
for the Initial Purchasers, together with signed or reproduced copies of such
letters for each of the other Initial Purchasers, containing statements and
information of the type ordinarily included in accountants' "comfort letters" to
the Initial Purchasers with respect to the financial statements and certain
financial information contained in the Offering Memorandum and in the form
previously agreed to. To the extent an audit report of Deloitte & Touche LLP is
included in the Offering Memorandum, such accounting firm shall include either
in such letter or in a separate writing a consent to the inclusion of its report
in the Offering Memorandum and to the reference to it under the caption
"Independent Auditors" in the Offering Memorandum.

     (e) Maintenance of Rating. At the Closing Time, the Securities and the
Guarantees shall be rated at least B-2 by Moody's and B+ by S&P, and the Company
and the Guarantors shall have delivered to the Representative a letter dated the
Closing Time, from each such rating agency, or other evidence satisfactory to
the Representative, confirming that the Securities and the Guarantees have such
ratings; and since the date of this Agreement, there shall not have occurred a
downgrading in the rating assigned to the Securities and the Guarantees or any
of the Company's and the Guarantor's other debt securities by any nationally
recognized securities rating agency, and no such securities rating agency shall
have publicly announced that it has under surveillance or review, with possible
negative implications, its rating of the Securities and the Guarantees or any of
the Company's and the Guarantor's other debt securities.

     (f) PORTAL. At the Closing Time, the Securities and the Guarantees shall
have been designated for trading on PORTAL.

     (g) Chief Financial Officer's Certificate. At the Closing Time, the Initial
Purchasers shall have received a certificate of the principal financial officer
of the Company and the Guarantors as to certain agreed upon accounting matters.

     (h) Registration Rights Agreement and Indenture. The Company and each of
the Guarantors shall have duly authorized, executed and delivered the
Registration Rights

                                       -19-

<PAGE>

Agreement and the Indenture to the Initial Purchasers in a form and substance
satisfactory to the Representative and counsel for the Initial Purchasers.

     (i) Manufacturers' Consents. The Representative shall have received on or
as of the Closing Time, as the case may be, a certificate, in a form and
substance satisfactory to the Representative, of two executive officers of the
Company certifying that each of the Company and its subsidiaries owns, possesses
or has obtained any required consents and approvals from all Manufacturers with
respect to the Offering and such consents and approvals, if any, shall be in a
form satisfactory to the Representative other than those consents not received
as described in the Offering Memorandum.

     (j) Lenders' Consents. Prior to or at the Closing Time, the Company shall
have received any required consents under their existing indebtedness for the
issuance and sale of the Securities pursuant to the terms of this Agreement and
the Indenture.

     (k) Additional Documents. At the Closing Time, counsel for the Initial
Purchasers shall have been furnished with such documents and opinions as they
may require for the purpose of enabling them to pass upon the issuance and sale
of the Securities and the Guarantees as herein contemplated, or in order to
evidence the accuracy of any of the representations or warranties, or the
fulfillment of any of the conditions, herein contained; and all proceedings
taken by the Company and the Guarantors in connection with the issuance and sale
of the Securities and the Guarantees as herein contemplated shall be
satisfactory in form and substance to the Initial Purchasers and counsel for the
Initial Purchasers.

     (l) Termination of Agreement. If any condition specified in this Section
shall not have been fulfilled when and as required to be fulfilled, this
Agreement may be terminated by the Representative by notice to the Company at
any time at or prior to the Closing Time, and such termination shall be without
liability of any party to any other party except as provided in Section 4 and
except that Sections 1, 6, 7 and 8 shall survive any such termination and remain
in full force and effect.

     SECTION 6. Indemnification.
                ---------------

     (a) Indemnification of Initial Purchasers. The Company and each of the
Guarantors, jointly and severally, agree to indemnify and hold harmless each
Initial Purchaser and each person, if any, who controls any Initial Purchaser
within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act
as follows:

         (i) against any and all loss, liability, claim, damage and expense
     whatsoever, as incurred, arising out of any untrue statement or alleged
     untrue statement of a material fact contained in the Offering Memorandum,
     or the omission or alleged omission therefrom of a material fact necessary
     in order to make the statements therein, in the light of the circumstances
     under which they were made, not misleading;

                                       -20-

<PAGE>

               (ii)  against any and all loss, liability, claim, damage and
          expense whatsoever, as incurred, to the extent of the aggregate amount
          paid in settlement of any litigation, or any investigation or
          proceeding by any governmental agency or body, commenced or
          threatened, or of any claim whatsoever based upon any such untrue
          statement or omission, or any such alleged untrue statement or
          omission; provided that (subject to Section 6(d) below) any such
          settlement is effected with the written consent of the Company; and

               (iii) against any and all expense whatsoever, as incurred
          (including the fees and disbursements of counsel chosen by the
          Representative), reasonably incurred in investigating, preparing or
          defending against any litigation, or any investigation or proceeding
          by any governmental agency or body, commenced or threatened, or any
          claim whatsoever based upon any such untrue statement or omission, or
          any such alleged untrue statement or omission, to the extent that any
          such expense is not paid under (i) or (ii) above;

provided, however, that this indemnity agreement shall not apply to any loss,
--------  -------
liability, claim, damage or expense to the extent arising out of any untrue
statement or omission or alleged untrue statement or omission made in reliance
upon and in conformity with written information furnished to the Company or the
Guarantors by any Initial Purchaser through Merrill Lynch expressly for use in
the Offering Memorandum.

          (b)  Indemnification of Company, Guarantors, and Directors. Each
     Initial Purchaser severally agrees to indemnify and hold harmless the
     Company, the Guarantors and their directors, and each person, if any, who
     controls the Company or the Guarantors within the meaning of Section 15 of
     the 1933 Act or Section 20 of the 1934 Act against any and all loss,
     liability, claim, damage and expense described in the indemnity contained
     in subsection (a) of this Section, as incurred, but only with respect to
     untrue statements or omissions, or alleged untrue statements or omissions,
     made in the Offering Memorandum in reliance upon and in conformity with
     written information furnished to the Company or the Guarantors by such
     Initial Purchasers through Merrill Lynch expressly for use in the Offering
     Memorandum. The Company hereby acknowledges that the only information that
     the Initial Purchasers have furnished to the Company expressly for use in
     the Offering Memorandum are the statements set forth in the third sentence
     in the paragraph directly below the table and all sentences in the fourth
     paragraph below the table under the caption "Plan of Distribution" in the
     Offering Memorandum.

          (c)  Actions against Parties; Notification. Each indemnified party
     shall give notice as promptly as reasonably practicable to each
     indemnifying party of any action commenced against it in respect of which
     indemnity may be sought hereunder, but failure to so notify an indemnifying
     party shall not relieve such indemnifying party from any liability
     hereunder to the extent it is not materially prejudiced as a result thereof
     and in any event shall not relieve it from any liability which it may have
     otherwise than on account of this indemnity agreement. In the case of
     parties indemnified pursuant to Section 6(a) above, counsel to the
     indemnified parties shall be selected by the Representative, and, in the
     case of parties indemnified pursuant to

                                      -21-

<PAGE>

Section 6(b) above, counsel to the indemnified parties shall be selected by the
Company. An indemnifying party may participate at its own expense in the defense
of any such action; provided, however, that counsel to the indemnifying party
                    --------  -------
shall not (except with the consent of the indemnified party) also be counsel to
the indemnified party. In no event shall the indemnifying parties be liable for
fees and expenses of more than one counsel (in addition to any local counsel)
separate from their own counsel for all indemnified parties in connection with
any one action or separate but similar or related actions in the same
jurisdiction arising out of the same general allegations or circumstances. No
indemnifying party shall, without the prior written consent of the indemnified
parties, settle or compromise or consent to the entry of any judgment with
respect to any litigation, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, or any claim whatsoever in
respect of which indemnification or contribution could be sought under this
Section 6 or Section 7 hereof (whether or not the indemnified parties are actual
or potential parties thereto), unless such settlement, compromise or consent (i)
includes an unconditional release of each indemnified party from all liability
arising out of such litigation, investigation, proceeding or claim and (ii) does
not include a statement as to or an admission of fault, culpability or a failure
to act by or on behalf of any indemnified party.

     (d) Settlement without Consent if Failure to Reimburse. If at any time an
indemnified party shall have requested an indemnifying party to reimburse the
indemnified party for fees and expenses of counsel, such indemnifying party
agrees that it shall be liable for any settlement of the nature contemplated by
Section 6(a)(ii) effected without its written consent if (i) such settlement is
entered into more than 45 days after receipt by such indemnifying party of the
aforesaid request, (ii) such indemnifying party shall have received notice of
the terms of such settlement at least 30 days prior to such settlement being
entered into and (iii) such indemnifying party shall not have reimbursed such
indemnified party in accordance with such request prior to the date of such
settlement.

     SECTION 7. Contribution. If the indemnification provided for in Section 6
                ------------
hereof is for any reason unavailable to or insufficient to hold harmless an
indemnified party in respect of any losses, liabilities, claims, damages or
expenses referred to therein, then each indemnifying party shall contribute to
the aggregate amount of such losses, liabilities, claims, damages and expenses
incurred by such indemnified party, as incurred, (i) in such proportion as is
appropriate to reflect the relative benefits received by the Company and the
Guarantors on the one hand and the Initial Purchasers on the other hand from the
offering of the Securities and the Guarantees pursuant to this Agreement or (ii)
if the allocation provided by clause (i) is not permitted by applicable law, in
such proportion as is appropriate to reflect not only the relative benefits
referred to in clause (i) above but also the relative fault of the Company and
the Guarantors on the one hand and of the Initial Purchasers on the other hand
in connection with the statements or omissions which resulted in such losses,
liabilities, claims, damages or expenses, as well as any other relevant
equitable considerations.

     The relative benefits received by the Company and the Guarantors on the one
hand and the Initial Purchasers on the other hand in connection with the
offering of the Securities and the Guarantees pursuant to this Agreement shall
be deemed to be in the same respective proportions

                                       -22-

<PAGE>

as the total net proceeds from the offering of the Securities and the Guarantees
pursuant to this Agreement (before deducting expenses) received by the Company
and the Guarantors and the total underwriting discount received by the Initial
Purchasers, bear to the aggregate initial offering price of the Securities and
the Guarantees.

     The relative fault of the Company and the Guarantors on the one hand and
the Initial Purchasers on the other hand shall be determined by reference to,
among other things, whether any such untrue or alleged untrue statement of a
material fact or omission or alleged omission to state a material fact relates
to information supplied by the Company or the Guarantors, or by the Initial
Purchasers, and the parties' relative intent, knowledge, access to information
and opportunity to correct or prevent such statement or omission.

     The Company, the Guarantors and the Initial Purchasers agree that it would
not be just and equitable if contribution pursuant to this Section 7 were
determined by pro rata allocation (even if the Initial Purchasers were treated
as one entity for such purpose) or by any other method of allocation which does
not take account of the equitable considerations referred to above in this
Section 7. The aggregate amount of the losses, liabilities, claims, damages and
expenses incurred by an indemnified party and referred to above in this Section
7 shall be deemed to include any legal or other fees reasonably incurred by such
indemnified party in investigating, preparing or defending against any
litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, or any claim whatsoever based upon such untrue or
alleged untrue statement or omission or alleged omission.

     Notwithstanding the provisions of this Section 7, no Initial Purchaser
shall be required to contribute any amount in excess of the amount by which the
total price at which the Securities (including the Guarantees) purchased by it
and distributed to the public were offered to the public exceeds the amount of
any damages which such Initial Purchaser has otherwise been required to pay by
reason of any such untrue or alleged untrue statement or omission or alleged
omission.

     No person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the 1933 Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation.

     For purposes of this Section 7, each person, if any, who controls an
Initial Purchaser within the meaning of Section 15 of the 1933 Act or Section 20
of the 1934 Act shall have the same rights to contribution as such Initial
Purchaser, and each director of the Company and each Guarantor, and each person,
if any, who controls the Company and each Guarantor within the meaning of
Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same
rights to contribution as the Company and each Guarantor. The Initial
Purchasers' respective obligations to contribute pursuant to this Section 7 are
several in proportion to the principal amount of Securities (including the
Guarantees) set forth opposite their respective names in Schedule B hereto and
not joint.

                                       -23-

<PAGE>

     SECTION 8. Representations, Warranties and Agreements to Survive Delivery.
                --------------------------------------------------------------
All representations, warranties and agreements contained in this Agreement or in
certificates of officers of the Company or any of the Subsidiaries submitted
pursuant hereto, shall remain operative and in full force and effect, regardless
of any investigation made by or on behalf of any Initial Purchaser or
controlling person, or by or on behalf of the Company or any Guarantor, and
shall survive (i) delivery of the Securities (including the Guarantees) to the
Initial Purchasers and (ii) any termination of this Agreement.

     SECTION 9. Termination of Agreement.
                ------------------------

     (a) Termination; General. The Representative may terminate this Agreement,
by notice to the Company and the Guarantors, at any time at or prior to the
Closing Time (i) if there has been, since the time of execution of this
Agreement or since the respective dates as of which information is given in the
Final Offering Memorandum (exclusive of any amendment or supplement thereto),
any material adverse change in the condition, financial or otherwise, or in the
earnings, business affairs or business prospects of the Company and the
Subsidiaries considered as one enterprise, whether or not arising in the
ordinary course of business, or (ii) if there shall have occurred a downgrading
in the rating assigned to the Securities or Guarantees or any of the Company's
or any Guarantor's other debt securities by any nationally recognized securities
rating agency, or if such securities rating agency shall have publicly announced
that it has under surveillance or review, with possible negative implications,
its rating of the Securities, the Guarantees or any of the Company's or
Guarantors' other debt securities or guarantees of debt securities, or (iii) if
there has occurred any material adverse change in the financial markets in the
United States or the international financial markets, any outbreak of
hostilities or escalation thereof or other calamity or crisis or any change or
development involving a prospective change in national or international
political, financial or economic conditions, in each case the effect of which is
such as to make it, in the judgment of the Representative, impracticable or
inadvisable to market the Securities or the Guarantees or to enforce contracts
for the sale of the Securities or the Guarantees, or (iv) if trading in any
securities of the Company or any Guarantor has been suspended or materially
limited by the Commission or the NASDAQ National Market System, or if trading
generally on the American Stock Exchange or the New York Stock Exchange or in
the Nasdaq National Market has been suspended or materially limited, or minimum
or maximum prices for trading have been fixed, or maximum ranges for prices have
been required, by any of said exchanges or by such system or by order of the
Commission, the National Association of Securities Dealers, Inc. or any other
governmental authority, or (v) the Company shall have sustained a loss by
strike, fire, flood, earthquake, accident or other calamity of such character as
in the judgment of the Representative may interfere materially with the conduct
of the business and operations of the Company regardless of whether or not such
loss shall have been insured, or (vi) a material disruption has occurred in
commercial banking or securities settlement or clearance services in the United
States, or (vii) if a banking moratorium has been declared by either Federal,
Delaware or New York authorities.

     (b) Liabilities. If this Agreement is terminated pursuant to this Section,
such termination shall be without liability of any party to any other party
except as provided in

                                       -24-

<PAGE>

Section 4 hereof, and provided further that Sections 1, 6, 7 and 8 shall survive
suchnation and remain in full force and effect.

     SECTION 10. Default by One or More of the Initial Purchasers. If one or
                 ------------------------------------------------
more of the Initial Purchasers shall fail at Closing Time to purchase the
Securities which it or they are obligated to purchase under this Agreement (the
"Defaulted Securities"), the Representative shall have the right, but not the
obligation, within 24 hours thereafter, to make arrangements for one or more of
the non-defaulting Initial Purchasers, or any other initial purchasers, to
purchase all, but not less than all, of the Defaulted Securities in such amounts
as may be agreed upon and upon the terms herein set forth; if, however, the
Representative shall not have completed such arrangements within such 24-hour
period, then

          (a) if the number of Defaulted Securities does not exceed 10% of the
     aggregate principal amount of the Securities to be purchased hereunder,
     each of the non-defaulting Initial Purchasers shall be obligated, severally
     and not jointly, to purchase the full amount thereof in the proportions
     that their respective obligations hereunder bear to the obligations of all
     non-defaulting Initial Purchasers, or

          (b) if the number of Defaulted Securities exceeds 10% of the aggregate
     principal amount of the Securities to be purchased hereunder, this
     Agreement shall terminate without liability on the part of any
     non-defaulting Initial Purchaser.

     No action taken pursuant to this Section shall relieve any defaulting
Initial Purchaser from liability in respect of its default.

     In the event of any such default which does not result in a termination of
this Agreement, either the Representative, the Company or the Guarantors shall
have the right to postpone the Closing Time for a period not exceeding seven
days in order to effect any required changes in the Offering Memorandum or in
any other documents or arrangements. As used herein, the term "Initial
Purchaser" includes any person substituted for an Initial Purchaser under this
Section 10.

     SECTION 11. Notices. All notices and other communications hereunder shall
                 -------
be in writing and shall be deemed to have been duly given if mailed or
transmitted by any standard form of telecommunication. Notices to the Initial
Purchasers shall be directed to (i) the Representative at North Tower, World
Financial Center, New York, New York 10281-1209, attention of Barry Price and
(ii) Banc of America Securities LLC at 9 West 57th Street, New York, New York
10019, attention of Joel Van Dusen, with a copy to Fried, Frank, Harris, Shriver
& Jacobson, 1 New York Plaza, New York, New York 10004, attention of Stuart H.
Gelfond, Esq.; notices to the Company or the Guarantors shall be directed to
them at Sonic Automotive, Inc., 6415 Idlewild Road, Suite 109, Charlotte, North
Carolina 28212, attention of Theodore Wright; with a copy to Barney Stewart,
III, Esq., Moore & Van Allen, PLLC, 100 North Tryon Street, Suite 4700,
Charlotte, North Carolina 28202-4003.

     SECTION 12. Parties. This Agreement shall inure to the benefit of and be
                 -------
binding upon the Initial Purchasers, the Company and the Guarantors and their
respective successors. Nothing

                                       -25-

<PAGE>

expressed or mentioned in this Agreement is intended or shall be construed to
give any person, firm or corporation, other than the Initial Purchasers, the
Company and the Guarantors and their respective successors and the controlling
persons and officers and directors referred to in Sections 6 and 7 and their
heirs and legal representatives, any legal or equitable right, remedy or claim
under or in respect of this Agreement or any provision herein contained. This
Agreement and all conditions and provisions hereof are intended to be for the
sole and exclusive benefit of the Initial Purchasers, the Company and the
Guarantors and their respective successors, and said controlling persons and
officers and directors and their heirs and legal representatives, and for the
benefit of no other person, firm or corporation. No purchaser of Securities and
Guarantees from any Initial Purchaser shall be deemed to be a successor by
reason merely of such purchase.

         SECTION 13.  Governing Law and Time.  THIS AGREEMENT SHALL BE GOVERNED
                      ----------------------
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. SPECIFIED
TIMES OF DAY HEREIN REFER TO NEW YORK CITY TIME.

         SECTION 14.  General Provisions. This Agreement constitutes the entire
                      ------------------
agreement of the parties to this Agreement and supersedes all prior written or
oral and all contemporaneous oral agreements, understandings and negotiations
with respect to the subject matter hereof. This Agreement may be executed in two
or more counterparts, each one of which shall be an original, with the same
effect as if the signatures thereto and hereto were upon the same instrument.
This Agreement may not be amended or modified unless in writing by all of the
parties hereto, and no condition herein (express or implied) may be waived
unless waived in writing by each party whom the condition is meant to benefit.

         SECTION 15.  Partial Unenforceability. The invalidity or
                      ------------------------
unenforceability of any Section, paragraph or provision of this Agreement shall
not affect the validity or enforceability of any other Section, paragraph or
provision hereof. If any Section, paragraph or provision of this Agreement is
for any reason determined to be invalid or unenforceable, there shall be deemed
to be made such minor changes (and only such minor changes) as are necessary to
make it valid and enforceable.

         SECTION 16.  Effect of Headings.  The Article and Section headings
                      ------------------
herein and the Table of Contents are for convenience only and shall not affect
the construction hereof.

         Each of the parties hereto acknowledges that it is a sophisticated
business person who was adequately represented by counsel during negotiations
regarding the provisions hereof, including, without limitation, the
indemnification provisions of Section 6 and the contribution provisions of
Section 7, and is fully informed regarding said provisions. Each of the parties
hereto further acknowledges that the provisions of Sections 6 and 7 hereto
fairly allocate the risks in light of the ability of the parties to investigate
the Company, its affairs and its business in order to assure that adequate
disclosure has been made in Offering Memorandum.

                                       -26-

<PAGE>

         If the foregoing is in accordance with your understanding of our
agreement, please sign and return to the Company and the Guarantors a
counterpart hereof, whereupon this instrument, along with all counterparts, will
become a binding agreement among the Initial Purchasers, the Company and the
Guarantors in accordance with its terms.

                              Very truly yours,

                              SONIC AUTOMOTIVE, INC.

                              By: /s/ Theodore M. Wright
                                 -----------------------------------------------
                                   Name: Theodore M. Wright
                                   Title: Vice President, Treasurer and Chief
                                   Financial Officer

                              AUTOBAHN, INC.
                              CAPITOL CHEVROLET AND IMPORTS, INC.
                              COBB PONTIAC CADILLAC, INC.
                              FA SERVICE CORPORATION
                              FAA AUTO FACTORY, INC.
                              FAA BEVERLY HILLS, INC.
                              FAA CAPITOL F, INC.
                              FAA CAPITOL N, INC.
                              FAA CONCORD H, INC.
                              FAA CONCORD N, INC.
                              FAA CONCORD T, INC.
                              FA 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 MARIN LR, INC.
                              FA  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.

<PAGE>

                            FAA SERRAMONTE, INC.
                            FAA STEVENS CREEK, INC.
                            FAA TORRANCE CPJ, INC.
                            FIRSTAMERICA AUTOMOTIVE, INC.
                            FORT MILL CHRYSLER-PLYMOUTH-DODGE INC.
                            FORT MILL FORD, INC.
                            FRANCISCAN MOTORS, INC.
                            FREEDOM FORD, INC.
                            FRONTIER OLDSMOBILE-CADILLAC, INC.
                            HMC FINANCE ALABAMA, INC.
                            KRAMER MOTORS INCORPORATED
                            LAWRENCE MARSHALL CHEVROLET, LLC
                            LAWRENCE MARSHALL CHEVROLET, L.P.
                            L DEALERSHIP GROUP, INC. (formerly LUCAS DEALERSHIP
                                 GROUP, INC.)
                            MARCUS DAVID CORPORATION
                            PHILPOTT MOTORS, LTD.
                            RIVERSIDE NISSAN, INC.
                            ROYAL MOTOR COMPANY, INC.
                            SANTA CLARA IMPORTED CARS, INC.
                            SMART NISSAN, INC.
                            SONIC AUTOMOTIVE - BONDESEN, INC.
                            SONIC AUTOMOTIVE OF CHATTANOOGA, LLC
                            SONIC AUTOMOTIVE-CLEARWATER, INC.
                            SONIC AUTOMOTIVE COLLISION CENTER OF CLEARWATER,
                                 INC,
                            SONIC AUTOMOTIVE F&I, LLC
                            SONIC AUTOMOTIVE OF GEORGIA, INC.
                            SONIC AUTOMOTIVE OF NASHVILLE, LLC
                            SONIC AUTOMOTIVE OF NEVADA, INC.
                            SONIC AUTOMOTIVE SERVICING COMPANY, LLC
                            SONIC AUTOMOTIVE OF TENNESSEE, INC.
                            SONIC AUTOMOTIVE OF TEXAS, L.P.
                            SONIC AUTOMOTIVE WEST, LLC
                            SONIC AUTOMOTIVE - 1307 N. DIXIE HWY.,
                                  NSB, 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,

<PAGE>

                             COLUMBUS, INC.
                         SONIC AUTOMOTIVE - 1720 MASON AVE., DB,
                             INC.
                         SONIC AUTOMOTIVE - 1720 MASON AVE., DB,
                             LLC
                         SONIC AUTOMOTIVE - 1919 N. DIXIE HWY.,
                             NSB, INC.
                         SONIC AUTOMOTIVE - 21699 U.S. HWY 19 N.,
                              INC.
                         SONIC AUTOMOTIVE - 241 RIDGEWOOD AVE.,
                             HH, INC.
                         SONIC AUTOMOTIVE 2424 LAURENS RD., GREENVILLE, INC.
                         SONIC AUTOMOTIVE 2752 LAURENS RD., GREENVILLE, INC.
                         SONIC AUTOMOTIVE 2490 SOUTH LEE HIGHWAY, LLC
                         SONIC AUTOMOTIVE - 3401 N. MAIN, TX, L.P.
                         SONIC AUTOMOTIVE-3700 WEST BROAD STREET, COLUMBUS, INC.
                         SONIC AUTOMOTIVE - 3741 S. NOVA RD., PO,
                             INC.
                         SONIC AUTOMOTIVE-4000 WEST BROAD STREET, COLUMBUS, INC.
                         SONIC AUTOMOTIVE - 4701 I-10 EAST, TX, L.P.
                         SONIC AUTOMOTIVE - 5221 I-10 EAST, TX, L.P.
                         SONIC AUTOMOTIVE  5260 PEACHTREE INDUSTRIAL BLVD., LLC
                         SONIC AUTOMOTIVE - 5585 PEACHTREE INDUSTRIAL BLVD., LLC
                         SONIC AUTOMOTIVE - 6008 N. DALE MABRY,
                             FL, INC.
                         SONIC AUTOMOTIVE - 6025 INTERNATIONAL
                             DRIVE, LLC
                         SONIC AUTOMOTIVE - 9103 E. INDEPENDENCE,
                             NC, LLC
                         SONIC - 2185 CHAPMAN RD., CHATTANOOGA,
                             LLC
                         SONIC - BETHANY H, INC.
                         SONIC - BUENA PARK H, INC.
                         SONIC - CAMP FORD, L.P.
                         SONIC - CAPITAL CHEVROLET, INC.
                         SONIC - CARROLLTON V, L.P.

<PAGE>

                           SONIC CHRYSLER-PLYMOUTH-JEEP, LLC
                           SONIC-CLASSIC DODGE, INC.
                           SONIC - COAST CADILLAC, INC. (formerly FAA WOODLAND
                               HILLS VW, INC.)
                           SONIC DODGE, LLC
                           SONIC DEVELOPMENT, LLC
                           SONIC - FM AUTOMOTIVE, LLC
                           SONIC - FM, INC.
                           SONIC - FM NISSAN, INC.
                           SONIC - FM VW, INC.
                           SONIC - FORT WORTH T, L.P.
                           SONIC - FREELAND, INC.
                           SONIC - GLOBAL IMPORTS, L.P.
                           SONIC-GLOVER, INC.
                           SONIC - HARBOR CITY H, INC.
                           SONIC - HOUSTON V, L.P.
                           SONIC - INTEGRITY DODGE LV, LLC
                           SONIC - LAS VEGAS C EAST, LLC
                           SONIC - LAS VEGAS C WEST, LLC
                           SONIC - LLOYD NISSAN, INC.
                           SONIC - LLOYD PONTIAC - CADILLAC, INC.
                           SONIC - LUTE RILEY, L. P.
                           SONIC - MANHATTAN FAIRFAX, INC.
                           SONIC - MANHATTAN WALDORF, INC.
                           SONIC-MONTGOMERY FLM, INC.
                           SONIC - NEWSOME CHEVROLET WORLD, INC.
                           SONIC - NEWSOME OF FLORENCE, INC.
                           SONIC - NORTH CHARLESTON, INC.
                           SONIC - NORTH CHARLESTON DODGE, INC.
                           SONIC - PARK PLACE A, L.P. (formerly  SONIC - DALLAS
                               AUTO FACTORY, L.P.)
                           SONIC PEACHTREE INDUSTRIAL BLVD., L.P.
                           SONIC - READING, L.P.
                           SONIC RESOURCES, INC.
                           SONIC - RICHARDSON F, L.P.
                           SONIC-RIVERSIDE, INC.
                           SONIC - RIVERSIDE AUTO FACTORY, INC.
                           SONIC - ROCKVILLE IMPORTS, INC.
                           SONIC - ROCKVILLE MOTORS, INC.
                           SONIC - SAM WHITE NISSAN, L.P.
                           SONIC - SHOTTENKIRK, INC.
                           SONIC -SUPERIOR OLDSMOBILE, LLC
                           SONIC - STEVENS CREEK B, INC.

<PAGE>

                              SONIC OF TEXAS, INC.
                              SONIC-VOLVO LV, LLC
                              SONIC - WEST COVINA T, INC.
                              SONIC - WEST RENO CHEVROLET, INC.
                              SONIC-WILLIAMS BUICK, INC.
                              SONIC - WILLIAMS CADILLAC, INC.
                              SONIC - WILLIAMS IMPORTS, INC.
                              SONIC - WILLIAMS MOTORS, LLC
                              SPEEDWAY CHEVROLET, INC.
                              SRE ALABAMA - 2, LLC
                              SRE ALABAMA - 3, LLC
                              SREALESTATE ARIZONA - 1, LLC
                              SREALESTATE ARIZONA - 2, LLC
                              SREALESTATE ARIZONA - 3, LLC
                              SREALESTATE ARIZONA - 4, LLC
                              SRE FLORIDA - 1, LLC
                              SRE FLORIDA - 2, LLC
                              SRE FLORIDA - 3, LLC
                              SRE GEORGIA - 1, L.P.
                              SRE GEORGIA - 2, L.P.
                              SRE GEORGIA - 3, L.P.
                              SRE HOLDING, LLC
                              SRE NEVADA - 1, LLC
                              SRE NEVADA - 2, LLC
                              SRE NEVADA - 3, LLC
                              SRE SOUTH CAROLINA - 2, LLC
                              SRE TENNESSEE - 1, LLC
                              SRE TENNESSEE - 2, LLC
                              SRE TENNESSEE - 3, LLC
                              SRE TEXAS - 1, L.P.
                              SRE TEXAS - 2, L.P.
                              SRE TEXAS - 3, L.P.
                              SRE VIRGINIA - 1, LLC
                              STEVENS CREEK CADILLAC, INC.
                              TOWN AND COUNTRY CHRYSLER-PLYMOUTH-JEEP, LLC
                              TOWN AND COUNTRY CHRYSLER-PLYMOUTH-JEEP OF
                                ROCK HILL, INC.
                              TOWN AND COUNTRY FORD, INCORPORATED
                              TOWN AND COUNTRY FORD OF CLEVELAND, LLC
                              TOWN AND COUNTRY JAGUAR, LLC
                              TRANSCAR LEASING, INC.
                              VILLAGE IMPORTED CARS, INC.

<PAGE>

                                  WINDWARD, INC.

                                  By: /s/ Theodore M. Wright
                                      ------------------------------------------
                                      Name:  Theodore M. Wright
                                      Title: Vice President, Treasurer and Chief
                                      Financial Officer

<PAGE>

CONFIRMED AND ACCEPTED,
   as of the date first above written:

MERRILL LYNCH & CO.

MERRILL LYNCH, PIERCE, FENNER & SMITH
            INCORPORATED

By: /s/ signature illegible
   -------------------------------------
            Authorized Signatory

<PAGE>

                                   SCHEDULE A

                        Subsidiaries which are Guarantors
                        ---------------------------------

AUTOBAHN, INC. (a California corporation)
CAPITOL CHEVROLET AND IMPORTS, INC. (an Alabama corporation)
COBB PONTIAC CADILLAC, INC. (an Alabama corporation)
FA SERVICE CORPORATION (a California corporation)
FAA AUTO FACTORY, INC. (a California corporation)
FAA BEVERLY HILLS, INC. (a California corporation)
FAA CAPITOL F, 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 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 MARIN LR, 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)
FIRSTAMERICA AUTOMOTIVE, INC. (a Delaware corporation)
FORT MILL CHRYSLER-PLYMOUTH-DODGE INC. (a South Carolina corporation)
FORT MILL FORD, INC. (a South Carolina corporation)
FRANCISCAN MOTORS, INC. (a California corporation)
FREEDOM FORD, INC. (a Florida corporation)
FRONTIER OLDSMOBILE-CADILLAC, INC. (a North Carolina corporation)
HMC FINANCE ALABAMA, INC. (an Alabama corporation)
KRAMER MOTORS INCORPORATED (a California corporation)
LAWRENCE MARSHALL CHEVROLET, LLC (a Delaware limited liability company)
LAWRENCE MARSHALL CHEVROLET, L.P. (a Texas limited partnership)
L DEALERSHIP GROUP, INC. (a Texas corporation)

                                      -1-

<PAGE>

MARCUS DAVID CORPORATION (a North Carolina corporation)
PHILPOTT MOTORS, LTD. (a Texas limited partnership)
RIVERSIDE NISSAN, INC. (an  Oklahoma corporation)
ROYAL MOTOR COMPANY, INC. (an Alabama corporation)
SANTA CLARA IMPORTED CARS, INC. (a California corporation)
SMART NISSAN, INC. (a California corporation)
SONIC AUTOMOTIVE - BONDESEN, INC. (a Florida corporation)
SONIC AUTOMOTIVE OF CHATTANOOGA, LLC (a Tennessee limited liability company)
SONIC AUTOMOTIVE-CLEARWATER, INC. (a Florida corporation)
SONIC AUTOMOTIVE COLLISION CENTER OF CLEARWATER, INC. (a Florida corporation)
SONIC AUTOMOTIVE F&I, LLC (a Nevada limited liability company)
SONIC AUTOMOTIVE OF GEORGIA, INC. (a Georgia corporation)
SONIC AUTOMOTIVE OF NASHVILLE, LLC (a Tennessee limited liability company)
SONIC AUTOMOTIVE OF NEVADA, INC. (a Nevada corporation)
SONIC AUTOMOTIVE SERVICING COMPANY, LLC (a Nevada limited liability company)
SONIC AUTOMOTIVE OF TENNESSEE, INC. (a Tennessee corporation)
SONIC AUTOMOTIVE OF TEXAS, L.P. (a Texas limited partnership)
SONIC AUTOMOTIVE WEST, LLC (a Nevada limited liability company)
SONIC AUTOMOTIVE - 1307 N. DIXIE HWY., NSB, INC. (a Florida corporation)
SONIC AUTOMOTIVE-1400 AUTOMALL DRIVE, COLUMBUS, INC. (an Ohio corporation)
SONIC AUTOMOTIVE-1455 AUTOMALL DRIVE, COLUMBUS, INC. (an Ohio corporation)
SONIC AUTOMOTIVE-1495 AUTOMALL DRIVE, COLUMBUS, INC. (an Ohio corporation)
SONIC AUTOMOTIVE-1500 AUTOMALL DRIVE, COLUMBUS, INC. (an Ohio corporation)
SONIC AUTOMOTIVE - 1720 MASON AVE., DB, INC. (a Florida corporation)
SONIC AUTOMOTIVE - 1720 MASON AVE., DB, LLC (a Florida limited liability
     company)
SONIC AUTOMOTIVE - 1919 N. DIXIE HWY., NSB, INC. (a Florida corporation)
SONIC AUTOMOTIVE - 21699 U.S. HWY 19 N., INC. (a Florida corporation)
SONIC AUTOMOTIVE - 241 RIDGEWOOD AVE., HH, INC. (a Florida corporation)
SONIC AUTOMOTIVE 2424 LAURENS RD., GREENVILLE, INC. (a South Carolina
     corporation)
SONIC AUTOMOTIVE - 2490 SOUTH LEE HIGHWAY, LLC (a Tennessee limited liability
     company)
SONIC AUTOMOTIVE 2752 LAURENS RD., GREENVILLE, INC. (a South Carolina
     corporation)
SONIC AUTOMOTIVE - 3401 N. MAIN, TX, L.P. (a Texas limited partnership)
SONIC AUTOMOTIVE-3700 WEST BROAD STREET, COLUMBUS, INC. (an Ohio corporation)
SONIC AUTOMOTIVE - 3741 S. NOVA RD., PO, INC. (a Florida corporation)
SONIC AUTOMOTIVE-4000 WEST BROAD STREET, COLUMBUS, INC. (an Ohio corporation)
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  5260 PEACHTREE INDUSTRIAL BLVD., LLC (a Georgia limited
     liability company)

                                      -2-

<PAGE>

SONIC AUTOMOTIVE-5585 PEACHTREE INDUSTRIAL BLVD., LLC (a Georgia limited
    liability company)
SONIC AUTOMOTIVE - 6008 N. DALE MABRY, FL, INC. (a Florida corporation)
SONIC AUTOMOTIVE - 6025 INTERNATIONAL DRIVE, LLC (a Tennessee limited liability
    company)
SONIC AUTOMOTIVE - 9103 E. INDEPENDENCE, NC, LLC (a North Carolina limited
    liability company)
SONIC - BETHANY H, INC. (an Oklahoma corporation)
SONIC - 2185 CHAPMAN RD., CHATTANOOGA, LLC (a Tennessee limited liability
    company)
SONIC - BUENA PARK H, INC. (a California corporation)
SONIC - CAMP FORD, L.P. (a Texas limited partnership)
SONIC - CAPITAL CHEVROLET, INC. (an Ohio corporation)
SONIC - CARROLLTON V, L.P. (a Texas limited partnership)
SONIC CHRYSLER-PLYMOUTH-JEEP, LLC (a North Carolina limited liability company)
SONIC - CLASSIC DODGE, INC. (an Alabama corporation)
SONIC - COAST CADILLAC, INC. (a California corporation)
SONIC DODGE, LLC (a North Carolina limited liability company)
SONIC DEVELOPMENT, LLC (a North Carolina limited liability company)
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 - FORT WORTH T, L.P. (a Texas limited partnership)
SONIC - FREELAND, INC. (a Florida corporation)
SONIC - GLOBAL IMPORTS, L.P. (a Georgia limited partnership)
SONIC-GLOVER, INC. (an Oklahoma corporation)
SONIC - HARBOR CITY H, INC. (a California corporation)
SONIC - HOUSTON V, L.P. (a Texas limited partnership)
SONIC - INTEGRITY DODGE LV, LLC (a Nevada limited liability company)
SONIC - LAS VEGAS C EAST, LLC (a Nevada limited liability company)
SONIC - LAS VEGAS C WEST, 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 - MONTGOMERY FLM, INC. (an Alabama corporation)
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 - PARK PLACE A, L.P. (a Texas limited partnership) (formerly Sonic -
    Dallas Auto Factory, L.P.)

                                      -3-

<PAGE>

SONIC PEACHTREE INDUSTRIAL BLVD., L.P. (a Georgia limited partnership)
SONIC - READING, L.P. (a Texas limited partnership)
SONIC RESOURCES, INC. (a Nevada corporation)
SONIC - RICHARDSON F, L.P. (a Texas limited partnership)
SONIC-RIVERSIDE, INC. (an Oklahoma corporation)
SONIC - RIVERSIDE AUTO FACTORY, INC. (an Oklahoma corporation)
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 - SHOTTENKIRK, INC. (a Florida corporation)
SONIC - STEVENS CREEK B, INC. (a California corporation) (formerly known as Don
    Lucas International, Inc.)
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 - WEST COVINA T, INC. (a California corporation)
SONIC - WEST RENO CHEVROLET, INC. (an Oklahoma corporation)
SONIC - WILLIAMS BUICK, INC. (an Alabama corporation)
SONIC - WILLIAMS CADILLAC, INC. (an Alabama corporation)
SONIC - WILLIAMS IMPORTS, INC. (an Alabama corporation)
SONIC - WILLIAMS MOTORS, LLC (an Alabama limited liability company)
SPEEDWAY CHEVROLET, INC. (an Oklahoma corporation)
SRE ALABAMA - 2, LLC (an Alabama limited liability company)
SRE ALABAMA - 3, LLC (an Alabama limited liability company)
SREALESTATE ARIZONA - 1, LLC (an Arizona limited liability company)
SREALESTATE ARIZONA - 2, LLC (an Arizona limited liability company)
SREALESTATE ARIZONA - 3, LLC (an Arizona limited liability company)
SREALESTATE ARIZONA - 4, LLC (an Arizona limited liability company)
SRE FLORIDA - 1, LLC (a Florida limited liability company)
SRE FLORIDA - 2, LLC (a Florida limited liability company)
SRE FLORIDA - 3, LLC (a Florida limited liability company)
SRE GEORGIA - 1, L.P. (a Georgia limited liability partnership)
SRE GEORGIA - 2, L.P. (a Georgia limited liability partnership)
SRE GEORGIA - 3, L.P. (a Georgia limited liability partnership)
SRE HOLDING, LLC (a North Carolina limited liability company)
SRE NEVADA - 1, LLC (a Nevada limited liability company)
SRE NEVADA - 2, LLC (a Nevada limited liability company)
SRE NEVADA - 3, LLC (a Nevada limited liability company)
SRE SOUTH CAROLINA - 2, LLC (a South Carolina limited liability company)
SRE TENNESSEE - 1, LLC (a Tennessee limited liability company)
SRE TENNESSEE - 2, LLC (a Tennessee limited liability company)
SRE TENNESSEE - 3, LLC (a Tennessee limited liability company)
SRE TEXAS - 1, L.P. (a Texas limited partnership)
SRE TEXAS - 2, L.P. (a Texas limited partnership)
SRE TEXAS - 3, L.P. (a Texas limited partnership)

                                      -4-

<PAGE>

SRE VIRGINIA - 1, LLC (a Virginia limited liability company)
STEVENS CREEK CADILLAC, INC. (a California corporation)
TRANSCAR LEASING, INC. (a California corporation)
TOWN AND COUNTRY CHRYSLER-PLYMOUTH-JEEP, LLC (a Tennessee limited liability
     company]
TOWN AND COUNTRY CHRYSLER-PLYMOUTH-JEEP OF ROCK HILL, INC. (a South Carolina
     corporation)
TOWN AND COUNTRY DODGE OF CHATTANOOGA, LLC (a Tennessee limited liability
     company)
TOWN AND COUNTRY FORD, INCORPORATED (a North Carolina corporation)
TOWN AND COUNTRY FORD OF CLEVELAND, LLC (a Tennessee limited liability
     company)
TOWN AND COUNTRY JAGUAR, LLC (a Tennessee limited liability company)
VILLAGE IMPORTED CARS, INC. (a Maryland corporation), and
WINDWARD, INC. (a Hawaii corporation)

                                      -5-

<PAGE>

                                   SCHEDULE B

 Aggregate Principal Amounts of Securities to be Purchased by each Initial
 -------------------------------------------------------------------------
                                   Purchaser
                                   ---------

Merrill Lynch, Pierce, Fenner & Smith
            Incorporated                                      $45,000,000

Banc of America Securities LLC                                $30,000,000

<PAGE>

                                   SCHEDULE C

                                 2% Subsidiaries
                                 ----------------

                                 Autobahn, Inc.

                         Sonic Automotive of Texas, L.P.

                          Sonic - Global Imports, L.P.

                            Sonic - Lute Riley, L.P.

                           Sonic - Richardson F, L.P.

<PAGE>

                                   SCHEDULE D

                                   Securities
                                   ----------

     1. The initial offering price of the Securities (including the Guarantees)
shall be 100.5% of the principal amount thereof, plus accrued interest, if any,
from the date of issuance.

     2. The purchase price to be paid by the Initial Purchasers for the
Securities and the Guarantees shall be 98.8% of the principal amount thereof.

                                      -1-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00032-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00032-of-00352.parquet"}]]