Document:

EX-10.1

 EXHIBIT 10.1 

EXECUTION COPY 
 INCREASING
LENDER COMMITMENT AND ACCEPTANCE 
 Increasing Lender Commitment and Acceptance (this “Commitment and Acceptance”), dated
as of September 21, 2018, by and among UGI Utilities, Inc. (the “Borrower”), each of the entities listed under the caption “Increasing Lenders” on the signature pages hereto (each, an “Increasing
Lender”) and PNC Bank, National Association, as Administrative Agent (in such capacity, the “Agent”). 
 RECITALS:

 WHEREAS, reference is hereby made to the Credit Agreement, dated as of March 27, 2015, by and among the Borrower, the Increasing
Lenders, the other Lenders (if any) party thereto (together with the Increasing Lenders, the “Lenders”) and the Agent (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”); 

WHEREAS, pursuant to subsection 2.19 of the Credit Agreement, the Borrower has requested an increase in the aggregate amount of the
Commitments (as defined in the Credit Agreement) from $300,000,000 to $450,000,000, such increase to become effective on the Increase Date (as defined below); and 

WHEREAS, the Increasing Lenders are willing to provide such increase in the aggregate amount of the Commitments on the terms hereof. 

NOW, THEREFORE, in consideration of the premises herein contained, and for other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the parties hereto hereby agree as follows, intending to be legally bound: 
 1. Defined Terms;
Interpretations; Etc. Capitalized terms used and not defined herein shall have the meanings assigned to such terms in the Credit Agreement. 

2. Increase in Commitments. Effective as of the Increase Date, the Commitment under the Credit Agreement of each of the Increasing
Lenders shall be increased pursuant to this Commitment and Acceptance by an amount equal to the amount set forth on Exhibit A hereto opposite its name under the caption “Commitment Increase”. 

3. Increasing Date Reallocation. Each Increasing Lender shall, before 2:00 p.m. (Pittsburgh, Pennsylvania time) on the Increase Date,
make available for the account of its Applicable Lending Office to the Agent at the Agent’s Account, in same day funds, an amount equal to the excess, if any, of (a) such Increasing Lender’s ratable portion of the Revolving Credit
Borrowings then outstanding (calculated based on its Ratable Share after giving effect to this Commitment and Acceptance) over (b) such Increasing Lender’s ratable portion of the Revolving Credit Borrowings then outstanding (calculated
based on its Commitment (without giving effect to this Commitment and Acceptance). After the Agent’s receipt of such funds from each Increasing Lender, the Agent will promptly thereafter cause to be distributed like funds to the other Lenders
for the account of their respective Applicable Lending Offices in an amount to each other Lender such that the aggregate amount of the outstanding Revolving Credit Advances owing to each Lender after giving effect to such distribution equals such
Lender’s ratable portion of the Revolving Credit Borrowings then outstanding (calculated based on its Ratable Share after giving effect to this Commitment and Acceptance). Each Revolving Credit Advance extended 

 
by an Increasing Lender pursuant to this Section 3 shall have an Interest Period matching the Interest Period of the applicable prepaid Revolving Credit Advances. In connection with the
prepayment contemplated by this Section 3, the Borrower shall pay to each Lender all accrued interest in respect of the Revolving Credit Advances being prepaid to such Lender and, to the extent requested by a Lender, any other amounts payable
to such Lender in accordance with Section 8.04(c) of the Credit Agreement. Notwithstanding the foregoing, each of the Increasing Lenders agrees that no breakage or other indemnities under Section 8.04(c) of the Credit Agreement shall be
payable to such Increasing Lender as a result of any reallocation or repayments pursuant to this Commitment and Acceptance. On the Increase Date, the Agent shall record in the Register the relevant information with respect to each Increasing Lender.
The requirements under Section 8.07 [Assignments and Participations] and requirements in respect of minimum borrowing, pro rata borrowing and pro rata payments elsewhere in the Credit Agreement shall not apply to the transactions effected
pursuant to this Commitment and Acceptance. 
 4. Reallocation of Letters of Credit and Swing Line Advances. On the Increase Date,
each Lender whose Ratable Share is increasing as a result of this Commitment and Acceptance shall be deemed to have automatically and without further act irrevocably and unconditionally purchased and received, and each of the Lenders whose Ratable
Share is decreasing as a result of this Commitment and Acceptance shall automatically and without further act be deemed to have irrevocably sold and assigned, in each case without recourse or warranty, an undivided interest and participation in any
Letter of Credit and Swing Line Advance outstanding on the Increase Date, ratably, such that each Lender (including each Increasing Lender) holds a participation interest in each such Letter of Credit and Swing Line Advance in the amount of its then
Ratable Share thereof (calculated based on its Ratable Share after giving effect to this Commitment and Acceptance). The existing Commitment of the Lenders and the Commitment of the Increasing Lenders hereunder shall constitute a single class for
all purposes under the Credit Agreement. 
 5. No Reliance. Each Increasing Lender agrees that it will, independently and without
reliance upon the Agent or any other Lender or agent and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Credit Agreement and the
other Loan Documents, including this Commitment and Acceptance. 
 6. Revised Schedule II. On the Increase Date, Schedule II to the
Credit Agreement shall be amended and restated to read as set forth on Exhibit A hereto to reflect the increases in the aggregate Commitment. 

7. Conditions Precedent. This Commitment and Acceptance, and each Increasing Lender’s obligation to provide the increase in its
Commitment pursuant to this Commitment and Acceptance, shall become effective as of the date on which the following conditions precedent are satisfied (such date, the “Increase Date”). 

(a) There shall have occurred no Material Adverse Change since September 30, 2017. 

  
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 (b) All governmental, regulatory and third party consents and approvals necessary in
connection with the transactions contemplated hereby shall have been obtained (without the imposition of any conditions that are not acceptable to the Increasing Lenders) and shall remain in effect, and no law or regulation shall be applicable in
the reasonable judgment of the Increasing Lenders that restrains, prevents or imposes materially adverse conditions upon the transactions contemplated hereby. 

(c) The Borrower shall have paid all accrued fees owed to the Agent and the Lenders in connection with this Commitment and Acceptance and all
expenses of the Agent (including, to the extent invoiced, the reasonable fees and expenses of counsel to the Agent). 
 (d) On the Increase
Date, the following statements shall be true and the Agent shall have received a certificate signed by a duly authorized officer of the Borrower, dated the Increase Date, stating that: 

(i) The representations and warranties contained in Section 4.01 of the Credit Agreement are correct in all material respects (except
that any representation or warranty which is already qualified as to materiality or by reference to a Material Adverse Effect shall be correct in all respects) on and as of the Increase Date. 

(ii) No Material Adverse Change has occurred since September 30, 2017. 

(iii) No event has occurred and is continuing that constitutes a Default. 

(iv) No consent is necessary from any governmental authority or regulatory body, including the Pennsylvania Public Utility Commission (the
“PPUC”), relating to this Commitment and Acceptance and the increase of the aggregate Commitment contemplated hereby and the Order of the PPUC adopted and entered on August 20, 2015 has not been amended or modified in any
respect and remains in full force and effect (and attaching thereto a copy of such Order). 
 (e) The Agent shall have received the
following in form and substance satisfactory to the Agent: 
 (i) Either (x) a counterpart of this Commitment and Acceptance signed on
behalf of the Agent, the Borrower and each Increasing Lender or (y) evidence satisfactory to the Agent (which may include electronic transmission) that such party signed a counterpart of this Commitment and Acceptance. 

(ii) An Amended and Restated Revolving Credit Note in favor of each Increasing Lender, to the extent requested by such Increasing Lender
(collectively, the “New Notes”), signed by the Borrower. 
 (iii) Such documents and certificates as the Agent may
reasonably request relating to the organization, existence and good standing of the Borrower. 
 (iv) Certified copies of the resolutions
of the Board of Directors of the Borrower approving this Commitment and Acceptance and the New Notes and of all documents (if any) evidencing other necessary corporate action and governmental approvals, if any, with respect to this Commitment and
Acceptance and the New Notes. 

  
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 (v) A certificate of the Secretary or an Assistant Secretary of the Borrower certifying the
names and true signatures of the officers of the Borrower authorized to sign this Commitment and Acceptance and the New Notes. 
 (vi) A
favorable opinion of counsel for the Borrower acceptable to the Agent, as to such matters as the Agent may reasonably request. 
 (f) The
Agent and the Increasing Lenders shall have received all documentation and other information about the Borrower and its Subsidiaries as shall have been reasonably requested prior to the Increase Date by the Agent or such Increasing Lender under
applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the USA PATRIOT Act and the beneficial ownership regulations set forth in 31 C.F.R. §1010.230. 

The Agent shall notify the Borrower and the Increasing Lenders of the Increase Date, and such notice shall be conclusive and binding. 

8. Representations and Warranties. In order to induce the Increasing Lenders and the Agent to enter into this Commitment and Acceptance
and to induce each Increasing Lender to provide the increase in its Commitment on the terms hereof, the Borrower hereby represents and warrants to the Increasing Lenders and the Agent on and as of the Increase Date that: 

(a) Power, Authorization; No Contravention. The Borrower has all requisite power and authority and all requisite governmental licenses,
authorizations, consents and approvals to execute, deliver and perform its obligations under this Commitment and Acceptance and the other Loan Documents (as modified hereby). The execution, delivery and performance by the Borrower of this Commitment
and Acceptance and the New Notes have been duly authorized by all necessary corporate action, and do not and will not (i) contravene the Borrower’s charter or bylaws, (ii) conflict with or result in any breach or contravention of, or
the creation of any Lien under, or require any payment to be made under (x) any contractual obligation to which the Borrower is a party or affecting the Borrower or the properties of the Borrower or any Subsidiary or (y) any order,
injunction, writ or decree of any governmental authority or regulatory body or any arbitral award to which the Borrower or any Subsidiary or its property is subject or (c) violate any applicable law. 

(b) Governmental Authorization; Other Consents. No approval, consent, exemption, authorization, or other action by, or notice to, or
filing with, any governmental authority, regulatory body or any other Person is necessary or required in connection with the execution, delivery or performance by, or enforcement against, the Borrower of this Commitment and Acceptance and the New
Notes, except for such approvals, consents, exemptions, authorizations, actions or notices that have been duly obtained, taken or made and in full force and effect. 

(c) Execution and Delivery; Binding Effect. This Commitment and Acceptance and the New Notes have been duly executed and delivered by
the Borrower. Each of this Commitment and Acceptance, the New Notes and the Loan Documents (as modified hereby) 

  
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constitutes a legal, valid and binding obligation of the Borrower, enforceable against the Borrower in accordance with its terms, except as such enforceability may be limited by bankruptcy,
insolvency, reorganization, receivership, moratorium or other Laws affecting creditors’ rights generally and by general principles of equity. 

(d) Representations and Warranties. The representations and warranties contained in Section 4.01 of the Credit Agreement are
correct in all material respects (except that any representation or warranty which is already qualified as to materiality or by reference to a Material Adverse Effect is correct in all respects) on and as of the Increase Date, before and after
giving effect to this Commitment and Acceptance, as though made on and as of the Increase Date, except to the extent such representations and warranties expressly relate to any earlier date, in which case such representations and warranties were
true and correct as of such earlier date in all material respect (or in all respects if already qualified as to materiality or by reference to a Material Advance Effect). 

9. Affirmations. The Borrower hereby (a) ratifies and affirms all the provisions of the Credit Agreement and the other Loan
Documents, as modified hereby, (b) agrees that the terms and conditions of the Credit Agreement and the other Loan Documents shall continue in full force and effect as amended hereby and that all of its obligations thereunder are valid and
enforceable and shall not be impaired or limited by the execution or effectiveness of this Commitment and Acceptance or any other documents or instruments executed in connection herewith and (c) acknowledges and agrees that it has no defense, set-off, counterclaim or challenge against the payment or any sums currently owing under the Credit Agreement and the other Loan Documents or the enforcement of any of the terms or conditions thereof and agrees to
be bound thereby and perform thereunder. 
 10. Limited Effect. Except as expressly modified hereby, the Credit Agreement and the
other Loan Documents shall continue to be, and shall remain, unaltered and in full force and effect in accordance with their terms. 
 11.
Integration. This Commitment and Acceptance constitutes the sole agreement of the parties with respect to the transactions contemplated hereby and shall supersede all oral negotiations and the terms of prior writings with respect thereto.
From and after the Increase Date, all references in the Credit Agreement and each of the other Loan Documents to the Credit Agreement shall be deemed to be references to the Credit Agreement, as modified hereby. This Commitment and Acceptance shall
constitute a Loan Document for all purposes under the Credit Agreement and each of the other Loan Documents. 
 12. Severability. Any
provision of this Commitment and Acceptance which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions
hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 

13. Miscellaneous. 
 (a)
Expenses. The Borrower agrees to pay all of the Agent’s reasonable out-of-pocket fees and expenses incurred in connection with this Commitment and Acceptance
and the transactions contemplated hereby, including, without limitation, the reasonable fees and expenses of counsel to the Agent. 

  
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 (b) GOVERNING LAW. THIS COMMITMENT AND ACCEPTANCE SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO ITS CONFLICT OF LAWS PRINCIPLES. 
 (c) Successor and
Assigns. This Commitment and Acceptance shall inure to the benefit of, and be binding upon, the parties hereto and their respective successors and assigns. 

(d) Counterparts. This Commitment and Acceptance may be executed in one or more counterparts, each of which counterparts when executed
and delivered shall be deemed to be an original, and all of which shall constitute one and the same instrument. Delivery of an executed counterpart of a signature page to this Commitment and Acceptance by facsimile or other electronic transmission
will be effective as delivery of a manually executed counterpart hereof. 
 (e) Headings. The headings of any paragraph of this
Commitment and Acceptance are for convenience only and shall not be used to interpret any provision hereof. 
 (f) Modifications. No
modification hereof or any agreement referred to herein shall be binding or enforceable unless in writing and signed on behalf of the party against whom enforcement is sought. 

  
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 IN WITNESS WHEREOF, the parties hereto have caused this Commitment and Acceptance to be
executed by their respective officers thereunto duly authorized, as of the date first above written. 
  

					
	UGI UTILITIES, INC.
		
	By  	 	/s/ Daniel J. Platt
		 	Name:	 	Daniel J. Platt
		 	Title:	 	Vice President – Finance and Chief
	Financial Officer, Treasurer

  

			
	 PNC BANK, NATIONAL ASSOCIATION,

    as Agent

		
	By  	 	Dominic D’Ginto
		 	Name: Dominic D’Ginto
		 	Title: Senior Vice President

  
 [Signature Page to
Increasing Lender Commitment and Acceptance] 

 
			
	Increasing Lenders
	
	PNC BANK, NATIONAL ASSOCIATION,
		
	By  	 	Dominic D’Ginto
		 	Name: Dominic D’Ginto
		 	Title: Senior Vice President

  
 [Signature Page to
Increasing Lender Commitment and Acceptance] 

 
			
	CITIZENS BANK OF PENNSYLVANIA
		
	By  	 	 /s/ David W. Dinella

		 	Name: David W. Dinella
		 	Title: Senior Vice President

  
 [Signature Page to
Increasing Lender Commitment and Acceptance] 

 
			
	CITIBANK, N.A.
		
	By  	 	 /s/ Michael Zeller

		 	Name: Michael Zeller
		 	Title: Vice President

  
 [Signature Page to
Increasing Lender Commitment and Acceptance] 

 
			
	CREDIT SUISSE AG, Cayman Islands Branch
		
	By  	 	 /s/ Mikhail Faybusovich

		 	Name: Mikhail Faybusovich
		 	Title: Authorized Signatory
		
	By  	 	 /s/ Brady Bingham

		 	Name: Brady Bingham
		 	Title: Authorized Signatory

  

  
 [Signature Page to
Increasing Lender Commitment and Acceptance] 

 
			
	JPMORGAN CHASE BANK, N.A.
		
	By  	 	 /s/ Helen D. Davis

		 	Name: Helen D. Davis
		 	Title: Authorized Officer

  
 [Signature Page to
Increasing Lender Commitment and Acceptance] 

 
			
	WELLS FARGO BANK, NATIONAL ASSOCIATION
		
	By  	 	 /s/ Patrick Engel

		 	Name: Patrick Engel
		 	Title: Managing Director

  
 [Signature Page to
Increasing Lender Commitment and Acceptance] 

 
			
	THE BANK OF NEW YORK MELLON
		
	By  	 	 /s/ Richard K. Fronapfel, Jr.

		 	Name: Richard K. Fronapfel, Jr.
		 	Title: Director

  
 [Signature Page to
Increasing Lender Commitment and Acceptance] 

 
			
	BANK OF AMERICA, N.A.
		
	By  	 	 /s/ Jerry L. Wells

		 	Name: Jerry L. Wells
		 	Title: Director

  
 [Signature Page to
Increasing Lender Commitment and Acceptance] 

 EXHIBIT A TO INCREASING LENDER COMMITMENT AND ACCEPTANCE 

SCHEDULE II 
 UGI UTILITIES, INC.

 CREDIT AGREEMENT 
 COMMITMENTS

  

				                     				                     				                     	
	 Lender
	 	Existing
Commitment	 	  	Commitment
Increase	 	 	Total Commitment
After Commitment
Increase	 
				
	 PNC Bank, National Association
	 	$	55,000,000	 	  	$	27,500,000	 	 	$	82,500,000	 
				
	 Citizens Bank of Pennsylvania
	 	$	55,000,000	 	  	$	27,500,000	 	 	$	82,500,000	 
				
	 Citibank, N.A.
	 	$	32,000,000	 	  	$	16,000,000	 	 	$	48,000,000	 
				
	 Credit Suisse AG, Cayman Islands Branch
	 	$	32,000,000	 	  	$	16,000,000	 	 	$	48,000,000	 
				
	 JPMorgan Chase Bank, N.A.
	 	$	32,000,000	 	  	$	16,000,000	 	 	$	48,000,000	 
				
	 Wells Fargo Bank, National Association
	 	$	32,000,000	 	  	$	16,000,000	 	 	$	48,000,000	 
				
	 Bank of America, N.A.
	 	$	32,000,000	 	  	$	16,000,000	 	 	$	48,000,000	 
				
	 The Bank of New York Mellon
	 	$	30,000,000	 	  	$	15,000,000	 	 	$	45,000,000	 
		 	  
	  
	 	  	  
	  
	 	 	  
	  
	 
				
	 Total
	 	$	300,000,000	 	  	$	150,000,000	 	 	$	450,000,000	 

  
 A-1EX-10.1

 Exhibit 10.1 

AGREEMENT 
 This Agreement
(“Agreement”) is made and entered into as of September 25, 2018 by and among B. Scott Smith (“Executive”), and Sonic Automotive, Inc. (“Sonic”). 

BACKGROUND 

1.    Executive currently is employed as Chief Executive Officer and President of Sonic, and further serves as a director
of Sonic and as an officer, director, manager or governor of all of Sonic’s direct or indirect wholly-owned subsidiaries. 

2.    Executive has informed the Board of Directors of Sonic that he would like to resign (a) his officer positions as
Chief Executive Officer and President of Sonic, (b) his position as a director of Sonic, and (c) his positions as an officer, director, manager or governor of each of Sonic’s direct or indirect wholly-owned subsidiaries,
subject to entering into a mutually-acceptable agreement to continue his employment with Sonic in his capacity as Co-Founder of Sonic. 

NOW, THEREFORE, for and in consideration of the mutual promises hereinafter expressed, it is hereby agreed by and among the parties as
follows: 
 1.    Resignation of Officer and Director Positions. Pursuant to his execution and delivery of
the formal resignation letter attached hereto as Exhibit A, Executive shall resign (a) his officer positions as Chief Executive Officer and President of Sonic, (b) his position as a director of Sonic, and
(c) his positions as an officer, director, manager or governor of each of Sonic’s direct or indirect wholly-owned subsidiaries, in each case effective September 24, 2018. Executive’s employment with Sonic will continue as
an employee at will in his capacity as Co-Founder of Sonic, and Executive will continue to provide strategic consulting services to Sonic in this capacity. 

2.    Consideration. In consideration of Executive’s obligations entered into pursuant to this
Agreement, Sonic hereby agrees to the following: 
  

	 	(a)	 Executive shall continue his employment with Sonic as an employee at will in his capacity as Co-Founder of Sonic, subject to the terms and conditions of this Agreement; 

  

	 	(b)	 All of the currently outstanding performance-based restricted stock units (“RSUs”) previously granted
to Executive in 2016 and 2017 by Sonic shall vest in full, with no further restrictions, effective as of the date of this Agreement; with respect to the February 23, 2018 grant to Executive of 92,525 RSUs subject to a performance
condition based on Sonic’s achievement of 2018 earnings per share objectives, subject to Executive’s continued employment with Sonic and continued adherence to the terms and conditions of this Agreement, such grant will remain outstanding
until certification of the extent of achievement of such performance condition by Sonic’s Compensation Committee (to occur by no later than March 15, 

  
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2019) and any corresponding reduction in the amount of such RSUs by Sonic’s Compensation Committee, and the RSUs remaining after such certification and reduction by Sonic’s Compensation
Committee (if any) shall then immediately vest in full with no further restrictions effective as of the date of certification by Sonic’s Compensation Committee; 

 

	 	(c)	 Executive’s base salary currently in effect will continue in effect during his continued employment with
Sonic; 

  

	 	(d)	 Subject to his continued employment with Sonic and his continued adherence to the terms and conditions of this
Agreement, Executive shall remain eligible for an annual performance-based cash bonus for his performance during the 2018 calendar year on the same terms and conditions as previously approved by the Compensation Committee of Sonic’s Board of
Directors on February 23, 2018; 

  

	 	(e)	 Subject to his continued employment with Sonic and his continued adherence to the terms and conditions of this
Agreement, Executive shall remain eligible for a grant of performance-based restricted stock units in February 2019 at the same time of grant as to Sonic’s executive officers, in an amount equivalent to the dollar value at time of grant of
Executive’s performance-based restricted stock unit grant received on February 23, 2018, and otherwise on the same terms and conditions as will apply to the performance-based restricted stock units granted to Sonic’s executive
officers in February 2019; 

  

	 	(f)	 Subject to his continued employment with Sonic and his continued adherence to the terms and conditions of this
Agreement, Executive shall continue to receive all of the same benefits and perquisites currently in effect for Executive; and 

  

	 	(g)	 Executive’s rights to indemnification as an officer and director of Sonic and its subsidiaries, as
contained in the bylaws of Sonic and, as applicable, the bylaws or operating agreements of Sonic’s subsidiaries, shall continue in full force and effect notwithstanding Executive no longer serving as an officer, director, manager or governor.

 3.    Mutual Non-Disparagement. 

(a)              Executive agrees that he will not, directly or
indirectly, disparage Sonic or any of its subsidiaries, or any of the officers or directors of Sonic, and Executive will further not initiate or participate in any contact or communications, written or oral, which have the effect of damaging their
reputation, unless required by subpoena, court order or applicable law. This obligation of Executive shall apply for a period of ten (10) years following the date of this Agreement. 

  
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 (b)              Executive
agrees that he will direct any communications or questions related to his resignations contemplated by this Agreement to Sonic’s Corporate Director of Human Resources. 

(c)              Sonic agrees that it will not, directly or indirectly
through any of its officers or directors, disparage Executive, and will not initiate or participate in any contact or communications, written or oral, which have the effect of damaging Executive’s reputation, unless required by subpoena, court
order or applicable law. This obligation of Sonic shall apply for a period of ten (10) years following the date of this Agreement. 

4.    Mutual Confidentiality. Sonic and Executive agree that they will not, at any time or in any manner,
either directly or indirectly, disclose, divulge, communicate, or otherwise reveal or allow to be revealed information about the terms, substance or content of this Agreement, the terms, substance or content of any communications, written or oral,
concerning the negotiation, execution or implementation of this Agreement, with the exception of public disclosure required of Sonic pursuant to applicable federal securities laws and the rules of the New York Stock Exchange. This confidentiality
obligation shall extend to any communications by Executive with regard to his employment or the resignations contemplated by this Agreement, unless required by subpoena, court order or applicable law; provided, however, that Executive may disclose
such information to his attorney, spouse, accountant, medical providers, or financial advisor so long as he obtains their prior commitment to follow the confidentiality provisions of this Paragraph 4, and that Company may disclose such information
as required pursuant to applicable federal securities laws and the rules of the New York Stock Exchange. 
 5.    Non-Competition. During Executive’s employment with Sonic following the date of this Agreement, Executive shall not provide information to, solicit or sell for, organize or own any interest in (either
directly or through any parent, affiliate or subsidiary corporation, partnership or other entity), or become employed or engaged by, or act as an agent or consultant for any individual or entity engaged in the marketing, selling and leasing of new
and/or used automobiles and trucks, the servicing of automobiles and/or trucks, including collision repair, and the provision of financing and insurance to automobile and truck customers, and the development and implementation of new and highly
proprietary business methods, technologies, and marketing strategies to expand such business (the “Business”) located within a twenty-five (25) mile radius from any automobile dealership owned by Sonic or any subsidiary of
Sonic as of the date of this Agreement (the “Restricted Territory”); provided, however, that nothing herein shall preclude the Executive from holding not more than three percent (3%) of the outstanding shares of any publicly held
company which may be so engaged in a trade or business identical or similar to the Business of Sonic, so long as such ownership does not provide to the Executive the ability to influence the management of such company in any material respect. 

6.    Non-Solicitation. During his employment and for a period of two (2) years following
Executive’s resignation from employment from Sonic or termination of Executive’s employment with Sonic for any reason, Executive shall not directly or indirectly, on his own behalf or on behalf of any other individual or entity:
(a) employ or solicit the employment of, or hire or retain as an agent, consultant or any other capacity, or engage in a business enterprise with, any person who at any time during the twelve (12) calendar months immediately
preceding the termination or expiration of his employment, was employed by Sonic or any of Sonic’s 

  
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subsidiaries, or (b) interfere or attempt to interfere with the terms or any aspects of the relationship between Sonic or any of Sonic’s subsidiaries and any person or entity with whom
Sonic or any subsidiary of Sonic has purchased automobiles, trucks, parts, supplies, inventory or services, including but not limited to any automobile manufacturer or its U.S. sales affiliate, at any time during the twelve (12) calendar months
immediately preceding the termination or expiration of his employment with Sonic. 
 7.    Clawback. In
the event that Sonic determines that Executive has violated the terms of Paragraphs 3 (“Mutual Non-Disparagement”), 4 (“Mutual Confidentiality”), 5
(“Non-Competition”) or 6 (“Non-Solicitation”) (even if such paragraphs are held invalid or unenforceable), then the Executive agrees to immediately
pay Sonic an amount equal to the fair market value of all compensation paid by Sonic to the Executive following the date of this Agreement, with the sole exception of any base salary paid to Executive following the date of this Agreement. 

8.    Governing Law; Venue. This Agreement and any dispute or controversy arising out of or relating to this
Agreement shall, in all respects, be governed by and construed according to the substantive laws of the State of North Carolina and without application of its choice of law principles. 

9.    Arbitration. Any dispute or controversy arising out of or relating to this Agreement shall be settled
exclusively by arbitration in Charlotte, North Carolina, in accordance with the terms of Sonic’s standard arbitration agreement for employment-related disputes. 

10.    Required Approval by Sonic’s Compensation Committee; Binding Effect. This Agreement is subject
to the formal approval of the Compensation Committee of Sonic’s Board of Directors. This Agreement will be binding upon, inure to the benefit of and be enforceable by any and all successors and assigns of the parties. 

11.    Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be
deemed to be an original as against any party whose signature appears thereon, and all of which shall together constitute one and the same instrument. This Agreement shall become binding when one or more counterparts hereof, individually or taken
together, shall bear the signatures of the parties reflected hereon as the signatories. 
 12.    Voluntary
Execution. The parties, intending to be legally bound, apply their signatures voluntarily and with full understanding of the contents of this Agreement and after having had ample time to review and study this Agreement. 

[The remainder of this page is intentionally left blank.] 

  
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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the
day and year first written above. 
  

			
	EXECUTIVE
	
	/s/ B. SCOTT SMITH
	B. Scott Smith
		 	
	
	SONIC AUTOMOTIVE, INC.
		
	By:	 	/s/ HEATH BYRD
	Name:	 	Heath Byrd
	Title:	 	EVP/CFO

  
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