Document:

exv4w1

Exhibit 4.1

REGISTRATION RIGHTS AGREEMENT

          This Registration Rights Agreement (the “Agreement”) is made and entered into this 12th day of
March, 2010, 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”) and
Banc of America Securities LLC, as Representative (the “Representative”) of the several Initial
Purchasers listed on Schedule A to the Purchase Agreement (collectively, the “Initial Purchasers”).

          This Agreement is made pursuant to the Purchase Agreement, dated March 9, 2010 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 $210 million principal amount
of the Company’s 9.0% Senior Subordinated Notes due 2018, Series A, 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 to time.

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

     “Affiliate” shall mean, with respect to any specified Person, any entity
controlled by or under common control with or that controls such Person.

     “Closing Date” shall mean the Closing Date 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 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 9.0% Senior Subordinated Notes due
2018, Series B, 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 Holders of Securities
in exchange for Registrable 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 March 12, 2010 between the
Company, the Guarantors and U.S. Bank 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 Securities;
provided that whenever the consent or approval of Holders of a 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.

     “Participating Broker-Dealer” shall mean any of Banc of America Securities LLC,
J.P. Morgan Securities Inc. and Comerica Securities, Inc. 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 upon the earliest to occur of
(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 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

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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 the Financial Industry Regulatory Authority, Inc. (“FINRA”)
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 FINRA, (ii) all fees and expenses incurred in connection with
compliance with state securities or blue sky laws and compliance with the rules of FINRA
(including reasonable fees and disbursements of counsel for any underwriters or Holders in
connection with blue sky qualification of any of the Exchange Securities or Registrable
Securities and any filings with FINRA), (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 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 Fried, Frank, Harris, Shriver
& Jacobson LLP in connection therewith and (ix) 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 by a Holder.

     “Registration Statement” shall mean any registration statement of the Company
which covers any of the Exchange Securities or Registrable Securities pursuant to the
provisions of this Agreement, and all amendments and supplements
to any such Registration Statement, including post-effective

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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
Registrable Securities or 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 commercially reasonable efforts to
(A) prepare and 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), of a
like principal amount of Exchange Securities, (B) to cause the Exchange Offer Registration
Statement to be declared effective under the 1933 Act, (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 270 days following the Closing Date. 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 for Exchange Securities (assuming that such 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 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 business and (d) has no
arrangements or understandings with any Person to participate in the Exchange Offer for

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the purpose
of distributing the Exchange Securities, and has made representations to the Company to that
effect) 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 after the Exchange Offer Registration Statement has been
declared effective under the 1933 Act to each Holder 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 (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 to withdraw tendered Registrable 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, the principal amount of Registrable Securities delivered for
exchange, and a statement that such Holder is withdrawing such Holder’s election to have such
Registrable 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 subordinated basis, that are identical

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(except that 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, as
the case may be, the Company and the Guarantors shall:

     (i) accept for exchange all Registrable 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 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 so accepted for exchange in a principal amount equal to the principal
amount of the Registrable Securities of such Holder 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 surrendered in exchange therefor or,
if no interest has been paid on the Registrable

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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 shall be 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 and (iv) 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 to whom the Exchange Offer is made, and the Initial Purchasers shall
have the right to contact such Holders 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 is not consummated within 270 days after the
original issue of the Registrable Securities, (iii) upon the request of any of the Initial
Purchasers with respect to Registrable Securities not eligible to be exchanged for Exchange
Securities in the Exchange Offer, (iv) if a Holder is not permitted by applicable law to
participate in the Exchange Offer or (v) in the case of any Holder that participates in an Exchange
Offer, such Holder does not receive Exchange Securities acquired by it in the Exchange Offer that
may be sold without restriction under state and federal securities laws (other than due solely to
the status of such Holder as an affiliate of the Company within the meaning of the 1933 Act), then
in case of each of clauses (i) through (v) the Company and the Guarantors shall, at their cost:

          (a) As promptly as practicable, file with the SEC, and thereafter shall use
their commercially reasonable efforts to cause to be declared
effective within 270 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 of distribution elected by the Majority Holders

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participating in the Shelf
Registration and set forth in such Shelf Registration Statement.

          (b) Use their commercially reasonable efforts to keep the Shelf Registration
Statement continuously effective in order to permit the Prospectus forming part
thereof to be usable by Holders until the earliest of (i) two years after the
original issue date of the Registrable Securities, (ii) such time as all Registrable
Securities covered by the Shelf Registration Statement have been sold pursuant to
the Shelf Registration Statement or (iii) the date upon which all Registrable
Securities covered by Shelf Registration Statement become eligible for resale under
Rule 144, without regard to volume, manner of sale or other restrictions contained
in Rule 144 or (iv) all Registrable Securities 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 commercially
reasonable 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.

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          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.

          2.4. Effectiveness. (a) The Company and the Guarantors will be deemed not to have
used their commercially reasonable 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 covered thereby not being able
to exchange or offer and sell such Registrable 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 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 Registrable Securities
pursuant to such Registration Statement may legally resume.

          2.5 Interest. If the Exchange Offer is not consummated or a Shelf Registration
Statement is not declared effective, in either case, on or prior to the 270th calendar day
following the date of original issue of the Securities (either such event , 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

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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 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

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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 commercially reasonable efforts to cause such Registration Statement to become effective
and remain effective in accordance with Section 2 hereof;

          (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 commercially reasonable 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

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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, 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) 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 the Representative on behalf of the Participating Broker-Dealers, and which shall
contain a summary statement of the positions taken or policies made public by the staff of the SEC
with respect to the potential “underwriter” status of any broker-dealer that holds Registrable
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, including a statement that any such broker-dealer who receives Exchange Securities
for Registrable Securities pursuant to the Exchange Offer may be

 - 13 - 

 

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 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 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 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;

          (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) use commercially reasonable efforts to obtain the withdrawal of any order suspending the
effectiveness of a Registration Statement at the earliest possible moment;

          (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);

 - 14 - 

 

          (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 commercially reasonable 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 or any
“issuer free writing prospectus” as defined in Rule 433 under the 1933 Act (“Issuer Free Writing
Prospectus”), 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 commercially reasonable 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
or the Registrable Securities, as the case may be, in a form eligible for deposit with the
Depositary;

 - 15 - 

 

          (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 commercially reasonable 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 commercially 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 Accountants), 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;

 - 16 - 

 

     (iv) 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

     (v) 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 during
regular business hours 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
(collectively, the “Inspectors”), all financial and other records, pertinent corporate documents
and properties of the Company and the Guarantors (“Records”) 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 Guarantors available for
discussion of such documents as shall be reasonably requested by the Initial Purchasers.
Records which the Company determines, in good faith, to be confidential and any

 - 17 - 

 

Records which it
notifies the Inspectors are confidential shall be maintained in confidence and shall not be
disclosed by the Inspectors to any other Person until such time as (1) disclosure of such Records
is required to be set forth in the Shelf Registration Statement or a Prospectus in order that such
Shelf Registration Statement or Prospectus, as the case may be, does not contain an untrue
statement of material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading in the light of the circumstances then
existing (in which case the subject information may only be disclosed to another Person following
such time as the Shelf Registration Statement in which such information is included is publicly
filed by the Company with the SEC), (2) disclosure is required to be made in connection with a
court, administrative or regulatory proceeding or required by law (but only after prior written
notice of such requirement shall have given to the Company), (3) the information in such Records
has been made generally available to the public or (4) such other Person signs a confidentiality
agreement to maintain such Records in confidence in accordance with this Section 3(p). Each such
Inspector will be required to agree to keep information obtained by it as a result of its
inspections pursuant to this Agreement confidential (except as otherwise permitted to be disclosed
hereunder) and not to use such information as the basis for any market transactions in the
securities of the Company unless and until such is made generally available to the public. Each
Inspector will be required to further agree that it will, upon learning that disclosure of such
Records is sought under clause (1) above, give notice to the Company and allow the Company and its
subsidiaries at their expense to undertake appropriate action to prevent disclosure of the Records
deemed confidential;

          (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 or any Issuer Free Writing Prospectus, provide copies of such document to the
Initial Purchasers and to counsel to both the Holders of Registrable 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 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 counsel to the Holders of Registrable 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 or counsel to the Holders of Registrable 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,

 - 18 - 

 

any amendment to such Shelf
Registration Statement or amendment or supplement to such Prospectus or any Issuer Free Writing
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 on 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 commercially reasonable 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 reasonably
requested by the underwriter or underwriters of an underwritten offering of Registrable Securities,
if any;

          (s) in the case of a Shelf Registration, use their commercially reasonable 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 FINRA 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 FINRA); and

          (v) upon consummation of an Exchange Offer or a Private Exchange, obtain (i) a customary
opinion of counsel as may be required by the Trustee and (ii) an

 - 19 - 

 

officers’ certificate containing
the certifications substantially similar to those set forth in Section 5(e) 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. The Company may exclude
from such Shelf Registration Statement the Registrable Securities of any Holder who fails to
furnish such information within a reasonable time (not to exceed 20 business days) after receiving
such request. Each Holder as to which any Shelf Registration Statement is being effected agrees to
as promptly as practicable furnish to the Company all information required to be disclosed in order
to make the information previously furnished to the Company by such Holder not materially
misleading.

          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 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 (other
than registration statements on Forms S-4 or S-8) 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

 - 20 - 

 

(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 each Initial Purchaser, each Holder, each Participating Broker-Dealer, each Person who
participates as an underwriter (any such Person being an “Underwriter”), 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 and the respective Affiliates, directors, officers and employees of any of the
foregoing 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 Issuer Free
Writing Prospectus 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 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

 - 21 - 

 

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 or on behalf of the Initial Purchasers, 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 Affiliates, directors, officers and employees, 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) or any Issuer
Free Writing Prospectus in reliance upon and in conformity with written information with respect to
such Holder furnished to the Company by or on behalf of such Holder expressly for use in the Shelf
Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or
supplement thereto) or any Issuer Free Writing Prospectus; 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 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

 - 22 - 

 

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

 - 23 - 

 

     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,
Exchange Securities and Private Exchange 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 A to the Purchase Agreement and not joint.

          5. Miscellaneous.

          5.1 Rule 144A. Each of the Company and the Guarantors hereby agrees with each
Holder, for so long as any Registrable Securities remain outstanding, if the Company is no longer
required to file reports under the 1934 Act, to make available to any Holder or beneficial owner of
Registrable Securities in connection with any sale thereof and any prospective purchaser of such
Registrable Securities from such Holder or beneficial owner, the information required by Rule
144A(d)(4) under the 1933 Act in

 - 24 - 

 

order to permit resales of such Registrable Securities pursuant to Rule 144A under the 1933
Act.

          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.

          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

 - 25 - 

 

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 one year after the original
issuance of the Securities and the Guarantees, the Company and the Guarantors will not, and to the
extent it has an ability to do so, 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.

          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.

 - 26 - 

 

          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.

 - 27 - 

 

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

	 	 	 	 	 
	 	 	SONIC AUTOMOTIVE, INC.

 
	 	 	By:	 	/s/ Stephen K. Coss
	 	 	 	 	Name: Stephen K. Coss, Esq.
	 	 	 	 	Title:   Senior Vice President, General Counsel

            and Secretary 
	 

	 	 	 
	 

	 	The Guarantors:
	 
	 

	 	ADI OF THE SOUTHEAST LLC (a South Carolina limited

liability company)
	 

	 	ANTREV, LLC (a North Carolina limited liability company)
	 

	 	ARNGAR, INC. (a North Carolina corporation)
	 

	 	AUTOBAHN, INC. (a California corporation)
	 

	 	AVALON FORD, INC. (a Delaware corporation)
	 

	 	CASA FORD OF HOUSTON, INC. (a Texas corporation)
	 

	 	CORNERSTONE ACCEPTANCE CORPORATION (a Florida 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 F, INC. (a California corporation)
	 

	 	FAA MARIN LR, 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, INC. (a California corporation)
	 

	 	FAA SERRAMONTE H, INC. (a California corporation)
	 

	 	FAA SERRAMONTE L, INC. (a California corporation)
	 

	 	FAA STEVENS CREEK, INC. (a California corporation)
	 

	 	FAA TORRANCE CPJ, INC. (a California corporation)

-28-

 

	 	 	 
	 

	 	FIRSTAMERICA AUTOMOTIVE, INC. (a Delaware corporation)
	 

	 	FORT MILL FORD, INC. (a South Carolina corporation)
	 

	 	FORT MYERS COLLISION CENTER, LLC (a Florida limited

liability company)
	 

	 	FRANCISCAN MOTORS, INC. (a California corporation)
	 

	 	FRANK PARRA AUTOPLEX, INC. (a Texas corporation)
	 

	 	FRONTIER OLDSMOBILE – CADILLAC, INC. (a North Carolina
corporation)
	 

	 	HMC FINANCE ALABAMA, INC. (an Alabama corporation)
	 

	 	KRAMER MOTORS INCORPORATED (a California corporation)
	 

	 	L DEALERSHIP GROUP, INC. (a Texas corporation)
	 

	 	MARCUS DAVID CORPORATION (a North Carolina corporation)
	 

	 	MASSEY CADILLAC, INC. (a Tennessee corporation)
	 

	 	MASSEY CADILLAC, INC. (a Texas corporation)
	 

	 	MOUNTAIN STATES MOTORS CO., INC. (a Colorado corporation)
	 

	 	ROYAL MOTOR COMPANY, INC. (an Alabama corporation)
	 

	 	SAI AL HC1, INC. (an Alabama corporation)
	 

	 	SAI AL HC2, INC. (an Alabama corporation), on behalf of
itself and as sole member of:
	 

	 	          SAI IRONDALE L, LLC (an Alabama limited liability company)
	 

	 	SAI ANN ARBOR IMPORTS, LLC (a Michigan limited liability

company)
	 

	 	SAI ATLANTA B, LLC (a Georgia limited liability company)
	 

	 	SAI BROKEN ARROW C, LLC (an Oklahoma limited liability

company)
	 

	 	SAI CHARLOTTE M, LLC (a North Carolina limited liability

company)
	 

	 	SAI COLUMBUS MOTORS, LLC (an Ohio limited liability

company)
	 

	 	SAI COLUMBUS VWK, LLC (an Ohio limited liability company)
	 

	 	SAI FL HC1, INC. (a Florida corporation)
	 

	 	SAI FL HC2, INC. (a Florida corporation), on behalf of
itself and as sole member of:
	 

	 	          SAI CLEARWATER T, LLC (a Florida limited liability company)
	 

	 	SAI FL HC3, INC. (a Florida corporation)
	 

	 	SAI FL HC4, INC. (a Florida corporation)
	 

	 	SAI FL HC5, INC. (a Florida corporation)
	 

	 	SAI FL HC6, INC. (a Florida corporation)
	 

	 	SAI FL HC7, INC. (a Florida corporation)
	 

	 	SAI FORT MYERS B, LLC (a Florida limited liability company)

-29-

 

	 	 	 
	 

	 	SAI FORT MYERS H, LLC (a Florida limited liability company)
	 

	 	SAI FORT MYERS M, LLC (a Florida limited liability company)
	 

	 	SAI FORT MYERS VW, LLC (a Florida limited liability

company)
	 

	 	SAI IRONDALE IMPORTS, LLC (an Alabama limited liability

company)
	 

	 	SAI LANSING CH, LLC (a Michigan limited liability company)
	 

	 	SAI LONG BEACH B, INC. (a California corporation)
	 

	 	SAI MD HC1, INC. (a Maryland corporation), on behalf of
itself and as sole member of:
	 

	 	          SAI ROCKVILLE L, LLC (a Maryland limited liability company)
	 

	 	SAI MONROVIA B, INC. (a California corporation)
	 

	 	SAI MONTGOMERY B, LLC (an Alabama limited liability

company)
	 

	 	SAI MONTGOMERY BCH, LLC (an Alabama limited liability

company)
	 

	 	SAI MONTGOMERY CH, LLC (an Alabama limited liability

company)
	 

	 	SAI NASHVILLE CSH, LLC (a Tennessee limited liability

company)
	 

	 	SAI NASHVILLE H, LLC (a Tennessee limited liability

company)
	 

	 	SAI NASHVILLE M, LLC (a Tennessee limited liability

company)
	 

	 	SAI NASHVILLE MOTORS, LLC (a Tennessee limited liability

company)
	 

	 	SAI NC HC2, INC. (a North Carolina corporation)
	 

	 	SAI OH HC1, INC. (an Ohio corporation)
	 

	 	SAI OK HC1, INC. (an Oklahoma corporation), on behalf of
itself and as sole member of the following entities:
	 

	 	          SAI
OKLAHOMA CITY T, LLC (an Oklahoma limited liability company)
	 

	 	          SAI TULSA T, LLC (an Oklahoma limited liability company)
	 

	 	SAI OKLAHOMA CITY C, LLC (an Oklahoma limited liability

company)
	 

	 	SAI OKLAHOMA CITY H, LLC (an Oklahoma limited liability

company)
	 

	 	SAI ORLANDO CS, LLC (a Florida limited liability company)
	 

	 	SAI PEACHTREE, LLC (a Georgia limited liability company)
	 

	 	SAI PLYMOUTH C, LLC (a Michigan limited liability company)
	 

	 	SAI RIVERSIDE C, LLC (an Oklahoma limited liability

company)

-30-

 

	 	 	 
	 

	 	SAI ROCKVILLE IMPORTS, LLC (a Maryland limited liability

company)
	 

	 	SAI TN HC1, LLC (a Tennessee limited liability company)
	 

	 	SAI TN HC2, LLC (a Tennessee limited liability company)
	 

	 	SAI TN HC3, LLC (a Tennessee limited liability company)
	 

	 	SAI TULSA N, LLC (an Oklahoma limited liability company)
	 

	 	SAI VA HC1, INC. (a Virginia corporation)
	 

	 	SANTA CLARA IMPORTED CARS, INC. (a California corporation)
	 

	 	SONIC AGENCY, INC. (a Michigan corporation)
	 

	 	SONIC AUTOMOTIVE F&I, LLC (a Nevada limited liability

company)
	 

	 	SONIC AUTOMOTIVE OF CHATTANOOGA, LLC (a Tennessee limited

liability company)
	 

	 	SONIC AUTOMOTIVE OF NASHVILLE, LLC (a Tennessee limited

liability company)
	 

	 	SONIC AUTOMOTIVE OF NEVADA, INC. (a Nevada corporation), on
behalf of itself and as sole member of:
	 

	 	          SAI
GEORGIA, LLC (a Georgia limited liability company),

               on behalf of itself and as general partner of the following entities:
	 

	 	                    SAI
GA HC1, LP (a Georgia limited partnership),

                         on behalf of itself and as sole member of:
	 

	 	                              SAI STONE MOUNTAIN T, LLC (a Georgia limited liability

                                   company)
	 

	 	                    SONIC PEACHTREE INDUSTRIAL BLVD., L.P. (a
Georgia limited

                         partnership)
	 

	 	                    SONIC – STONE MOUNTAIN T, L.P. (a Georgia
limited partnership)
	 

	 	                    SRE GEORGIA – 1, L.P. (a Georgia limited
partnership)
	 

	 	                    SRE GEORGIA – 2, L.P. (a Georgia limited
partnership)
	 

	 	                    SRE GEORGIA – 3, L.P. (a Georgia limited
partnership)
	 

	 	SONIC AUTOMOTIVE SUPPORT, LLC (a Nevada limited liability

company)
	 

	 	SONIC AUTOMOTIVE WEST, LLC (a Nevada limited liability

company)
	 

	 	SONIC AUTOMOTIVE – 1495 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 2424 LAURENS RD., GREENVILLE, INC. (a
South Carolina corporation)
	 

	 	SONIC AUTOMOTIVE – 2490 SOUTH LEE HIGHWAY, LLC (a
Tennessee limited liability company)

-31-

 

	 	 	 
	 

	 	SONIC AUTOMOTIVE 2752 LAURENS RD., GREENVILLE, INC. (a
South Carolina corporation)
	 

	 	SONIC AUTOMOTIVE – 3700 WEST BROAD STREET, COLUMBUS, INC.
(an Ohio corporation)
	 

	 	SONIC AUTOMOTIVE – 4000 WEST BROAD STREET, COLUMBUS, INC.
(an Ohio corporation)
	 

	 	SONIC AUTOMOTIVE 5260 PEACHTREE INDUSTRIAL BLVD., LLC (a
Georgia limited liability company)
	 

	 	SONIC AUTOMOTIVE – 6008 N. DALE MABRY, FL, INC. (a Florida
corporation)
	 

	 	SONIC AUTOMOTIVE – 9103 E. INDEPENDENCE, NC, LLC (a North
Carolina limited liability company)
	 

	 	SONIC 2185 CHAPMAN RD., CHATTANOOGA, LLC (a Tennessee
limited liability company)
	 

	 	SONIC – BUENA PARK H, INC. (a California corporation)
	 

	 	SONIC – CALABASAS A, INC. (a California corporation)
	 

	 	SONIC CALABASAS M, INC. (a California corporation)
	 

	 	SONIC – CALABASAS V, INC. (a California corporation)
	 

	 	SONIC – CAPITOL CADILLAC, INC. (a Michigan corporation)
	 

	 	SONIC – CAPITOL IMPORTS, INC. (a South Carolina
corporation)
	 

	 	SONIC – CARSON F, INC. (a California corporation)
	 

	 	SONIC – CARSON LM, INC. (a California corporation)
	 

	 	SONIC – CHATTANOOGA D EAST, LLC (a Tennessee limited
liability company)
	 

	 	SONIC COAST CADILLAC, INC. (a California corporation)
	 

	 	SONIC – DENVER T, INC. (a Colorado corporation)
	 

	 	SONIC – DENVER VOLKSWAGEN, INC. (a Colorado corporation)
	 

	 	SONIC DEVELOPMENT, LLC (a North Carolina limited liability

company)
	 

	 	SONIC DIVISIONAL OPERATIONS, LLC (a Nevada limited

liability company)
	 

	 	SONIC – DOWNEY CADILLAC, INC. (a California corporation)
	 

	 	SONIC – ENGLEWOOD M, INC. (a Colorado corporation)
	 

	 	SONIC ESTORE, INC. (a North Carolina corporation)
	 

	 	SONIC – FORT MILL CHRYSLER JEEP, INC. (a South Carolina
corporation)
	 

	 	SONIC – FORT MILL DODGE, INC. (a South Carolina
corporation)
	 

	 	SONIC FREMONT, INC. (a California corporation)
	 

	 	SONIC – HARBOR CITY H, INC. (a California corporation)
	 

	 	SONIC – INTEGRITY DODGE LV, LLC (a Nevada limited
liability company)
	 

	 	SONIC – LS, LLC (a Delaware limited liability company), on
behalf of itself and as general partner of:
	 

	 	          SONIC – LS CHEVROLET, L.P. (a Texas limited
partnership)

-32-

 

	 	 	 
	 

	 	SONIC – LAKE NORMAN CHRYSLER JEEP, LLC (a North Carolina
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 – LONE TREE CADILLAC, INC. (a Colorado corporation)
	 

	 	SONIC – MANHATTAN FAIRFAX, INC. (a Virginia corporation)
	 

	 	SONIC – MASSEY CHEVROLET, INC. (a California corporation)
	 

	 	SONIC – MASSEY PONTIAC BUICK GMC, INC. (a Colorado
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 OF TEXAS, INC. (a Texas corporation), on behalf of
itself and as general partner of the following entities:
	 

	 	          PHILPOTT MOTORS, LTD. (a Texas limited partnership)
	 

	 	          SONIC ADVANTAGE PA, LP (a Texas limited partnership)
	 

	 	          SONIC AUTOMOTIVE OF TEXAS, L.P. (a Texas limited partnership)
	 

	 	          SONIC
AUTOMOTIVE – 3401 N. MAIN, TX, L.P. (a Texas limited

               partnership)
	 

	 	          SONIC
AUTOMOTIVE – 4701 I-10 EAST, TX, L.P. (a Texas limited

               partnership)
	 

	 	          SONIC
AUTOMOTIVE – 5221 I-10 EAST, TX, L.P. (a Texas limited

               partnership)
	 

	 	          SONIC – CADILLAC D, L.P. (a Texas limited
partnership)
	 

	 	          SONIC – CAMP FORD, L.P. (a Texas limited partnership)
	 

	 	          SONIC – CARROLLTON V, L.P. (a Texas limited
partnership)
	 

	 	          SONIC – CLEAR LAKE N, L.P. (a Texas limited
partnership)
	 

	 	          SONIC
– CLEAR LAKE VOLKSWAGEN, L.P. (a Texas limited

               partnership)

-33-

 

	 	 	 
	 

	 	          SONIC – FORT WORTH T, L.P. (a Texas limited partnership)
	 

	 	          SONIC – FRANK PARRA AUTOPLEX, L.P. (a Texas limited partnership)
	 

	 	          SONIC HOUSTON JLR, LP (a Texas limited partnership)
	 

	 	          SONIC HOUSTON LR, LP (a Texas limited partnership)
	 

	 	          SONIC – HOUSTON V, L.P. (a Texas limited partnership)
	 

	 	          SONIC
– JERSEY VILLAGE VOLKSWAGEN, L.P. (a Texas limited

               partnership)
	 

	 	          SONIC – LUTE RILEY, L. P. (a Texas limited
partnership)
	 

	 	          SONIC – MASSEY CADILLAC, L.P. (a Texas limited
partnership)
	 

	 	          SONIC – MESQUITE HYUNDAI, L.P. (a Texas limited
partnership)
	 

	 	          SONIC MOMENTUM B, L.P. (a Texas limited partnership)
	 

	 	          SONIC MOMENTUM JVP, L.P. (a Texas limited partnership)
	 

	 	          SONIC
MOMENTUM VWA, L.P. (a Texas limited partnership)
	 

	 	          SONIC
– READING, L.P. (a Texas limited partnership)
	 

	 	          SONIC
– RICHARDSON F, L.P. (a Texas limited
partnership)
	 

	 	          SONIC
– SAM WHITE NISSAN, L.P. (a Texas limited
partnership)
	 

	 	          SONIC
– UNIVERSITY PARK A, L.P. (a Texas limited
partnership)
	 

	 	          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
TEXAS – 4, L.P. (a Texas limited partnership)
	 

	 	          SRE
TEXAS – 5, L.P. (a Texas limited partnership)
	 

	 	          SRE
TEXAS – 6, L.P. (a Texas limited partnership)
	 

	 	          SRE
TEXAS – 7, L.P. (a Texas limited partnership)
	 

	 	          SRE
TEXAS – 8, L.P. (a Texas limited partnership)
	 

	 	SONIC OKEMOS IMPORTS, INC. (a Michigan corporation)
	 

	 	SONIC – PLYMOUTH CADILLAC, INC. (a Michigan corporation)
	 

	 	SONIC RESOURCES, INC. (a Nevada corporation)
	 

	 	SONIC – RIVERSIDE AUTO FACTORY, INC. (an Oklahoma
corporation)
	 

	 	SONIC – SANFORD CADILLAC, INC. (a Florida corporation)
	 

	 	SONIC SANTA MONICA M, INC. (a California corporation)
	 

	 	SONIC SANTA MONICA S, INC. (a California corporation)

-34-

 

	 	 	 
	 

	 	SONIC – SATURN OF SILICON VALLEY, INC. (a California
corporation)
	 

	 	SONIC SERRAMONTE I, INC. (a California corporation)
	 

	 	SONIC – SHOTTENKIRK, INC. (a Florida corporation)
	 

	 	SONIC – SOUTH CADILLAC, INC. (a Florida corporation)
	 

	 	SONIC – STEVENS CREEK B, INC. (a California corporation)
	 

	 	SONIC TYSONS CORNER H, INC. (a Virginia corporation)
	 

	 	SONIC TYSONS CORNER INFINITI, INC. (a Virginia corporation)
	 

	 	SONIC – VOLVO LV, LLC (a Nevada limited liability company)
	 

	 	SONIC WALNUT CREEK M, INC. (a California corporation)
	 

	 	SONIC – WEST COVINA T, INC. (a California corporation)
	 

	 	SONIC – WILLIAMS CADILLAC, INC. (an Alabama corporation)
	 

	 	SONIC WILSHIRE CADILLAC, INC. (a California corporation)
	 

	 	SRE ALABAMA – 2, LLC (an Alabama limited liability
company)
	 

	 	SRE ALABAMA – 3, LLC (an Alabama limited liability
company)
	 

	 	SRE ALABAMA – 4, LLC (an Alabama limited liability
company)
	 

	 	SRE ALABAMA – 5, 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)
	 

	 	SREALESTATE ARIZONA – 5, LLC (an Arizona limited liability
company)
	 

	 	SREALESTATE ARIZONA – 6, LLC (an Arizona limited liability
company)
	 

	 	SREALESTATE ARIZONA – 7, LLC (an Arizona limited liability
company)
	 

	 	SRE CALIFORNIA – 1, LLC (a California limited liability
company)
	 

	 	SRE CALIFORNIA – 2, LLC (a California limited liability
company)
	 

	 	SRE CALIFORNIA – 3, LLC (a California limited liability
company)
	 

	 	SRE CALIFORNIA – 4, LLC (a California limited liability
company)
	 

	 	SRE CALIFORNIA – 5, LLC (a California limited liability
company)

-35-

 

	 	 	 
	 

	 	SRE CALIFORNIA – 6, LLC (a California limited liability
company)
	 

	 	SRE COLORADO – 1, LLC (a Colorado limited liability
company)
	 

	 	SRE COLORADO – 2, LLC (a Colorado limited liability
company)
	 

	 	SRE COLORADO – 3, LLC (a Colorado 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 HOLDING, LLC (a North Carolina limited liability

company)
	 

	 	SRE MARYLAND – 1, LLC (a Maryland limited liability
company)
	 

	 	SRE MARYLAND – 2, LLC (a Maryland limited liability
company)
	 

	 	SRE MICHIGAN – 3, LLC (a Michigan 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 NEVADA – 4, LLC (a Nevada limited liability company)
	 

	 	SRE NEVADA – 5, LLC (a Nevada limited liability company)
	 

	 	SRE NORTH CAROLINA – 1, LLC (a North Carolina limited
liability company)
	 

	 	SRE NORTH CAROLINA – 2, LLC (a North Carolina limited
liability company)
	 

	 	SRE NORTH CAROLINA – 3, LLC (a North Carolina limited
liability company)
	 

	 	SRE OKLAHOMA – 1, LLC (an Oklahoma limited liability
company)
	 

	 	SRE OKLAHOMA – 2, LLC (an Oklahoma limited liability
company)
	 

	 	SRE OKLAHOMA – 3, LLC (an Oklahoma limited liability
company)
	 

	 	SRE OKLAHOMA – 4, LLC (an Oklahoma limited liability
company)
	 

	 	SRE OKLAHOMA – 5, LLC (an Oklahoma limited liability
company)
	 

	 	SRE SOUTH CAROLINA – 2, LLC (a South Carolina limited
liability company)
	 

	 	SRE SOUTH CAROLINA – 3, LLC (a South Carolina limited
liability company)
	 

	 	SRE SOUTH CAROLINA – 4, 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)

-36-

 

	 	 	 
	 

	 	SRE TENNESSEE – 3, LLC (a Tennessee limited liability
company)
	 

	 	SRE TENNESSEE – 4, LLC (a Tennessee limited liability
company)
	 

	 	SRE TENNESSEE – 5, LLC (a Tennessee limited liability
company)
	 

	 	SRE TENNESSEE – 6, LLC (a Tennessee limited liability
company)
	 

	 	SRE TENNESSEE – 7, LLC (a Tennessee limited liability
company)
	 

	 	SRE TENNESSEE – 8, LLC (a Tennessee limited liability
company)
	 

	 	SRE TENNESSEE – 9, LLC (a Tennessee limited liability
company)
	 

	 	SRE VIRGINIA – 1, LLC (a Virginia limited liability
company)
	 

	 	SRE VIRGINIA – 2, LLC (a Virginia limited liability
company)
	 

	 	STEVENS CREEK CADILLAC, INC. (a California corporation)
	 

	 	TOWN AND COUNTRY FORD, INCORPORATED (a North Carolina

corporation)
	 

	 	VILLAGE IMPORTED CARS, INC. (a Maryland corporation)
	 

	 	WINDWARD, INC. (a Hawaii corporation)
	 

	 	Z MANAGEMENT, INC. (a Colorado corporation)

	 	 	 	 	 
	 	 	 
	 	 	By:	 	/s/ Stephen K. Coss
 
	 	 	 	 	Name: Stephen K. Coss, Esq. 
	 	 	 	 	Title:   Secretary 
	 

	 	 	 
	 

	 	Sonic Automotive, Inc., as sole member of the following
entities:
	 

	 	            ONTARIO L, LLC (a California limited liability company)
	 

	 	            SAI COLUMBUS T, LLC (an Ohio limited liability company)

	 	 	 	 	 
	 	 	 
	 	 	By:	 	/s/ Stephen K. Coss
 
	 	 	 	 	Name: Stephen K. Coss, Esq. 
	 	 	 	 	Title:   Senior Vice President, General Counsel and Secretary 

-37-

 

	 	 	 	 	 

Confirmed and accepted as 

   of the date first above 

   written:

BANC OF AMERICA SECURITIES LLC 

      Acting on behalf of itself 

      and as the Representative of 

      the several Initial Purchasers

BY: BANC OF AMERICA SECURITIES LLC

	 	 	 	 	 
	 	 
	By:  	                   /s/ Stephan Jaeger
 	 
	 	Name:  	Stephan Jaeger 	 
	 	Title:  	Managing Director 	 
	 

-38-exv4w2

Exhibit 4.2

SONIC AUTOMOTIVE, INC. (a Delaware corporation)

as Issuer

ADI OF THE SOUTHEAST LLC (a South Carolina limited liability company)

ANTREV, LLC (a North Carolina limited liability company)

ARNGAR, INC. (a North Carolina corporation)

AUTOBAHN, INC. (a California corporation)

AVALON FORD, INC. (a Delaware corporation)

CASA FORD OF HOUSTON, INC. (a Texas corporation)

CORNERSTONE ACCEPTANCE CORPORATION (a Florida 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 F, INC. (a California corporation)

FAA MARIN LR, 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 FORD, INC. (a South Carolina corporation)

FORT MYERS COLLISION CENTER, LLC (a Florida limited liability company)

FRANCISCAN MOTORS, INC. (a California corporation)

FRANK PARRA AUTOPLEX, INC. (a Texas corporation)

FRONTIER OLDSMOBILE — CADILLAC, INC. (a North Carolina corporation)

HMC FINANCE ALABAMA, INC. (an Alabama corporation)

KRAMER MOTORS INCORPORATED (a California corporation)

L DEALERSHIP GROUP, INC. (a Texas corporation)

MARCUS DAVID CORPORATION (a North Carolina corporation)

MASSEY CADILLAC, INC. (a Tennessee corporation)

MASSEY CADILLAC, INC. (a Texas corporation)

MOUNTAIN STATES MOTORS CO., INC. (a Colorado corporation)

ONTARIO L, LLC (a California limited liability company)

PHILPOTT MOTORS, LTD. (a Texas limited partnership)

ROYAL MOTOR COMPANY, INC. (an Alabama corporation)

SAI AL HC1, INC. (an Alabama corporation)

SAI AL HC2, INC. (an Alabama corporation)

SAI ANN ARBOR IMPORTS, LLC (a Michigan limited liability company)

 

 

SAI ATLANTA B, LLC (a Georgia limited liability company)

SAI BROKEN ARROW C, LLC (an Oklahoma limited liability company)

SAI CHARLOTTE M, LLC (a North Carolina limited liability company)

SAI CLEARWATER T, LLC (a Florida limited liability company)

SAI COLUMBUS MOTORS, LLC (an Ohio limited liability company)

SAI COLUMBUS T, LLC (an Ohio limited liability company)

SAI COLUMBUS VWK, LLC (an Ohio limited liability company)

SAI FL HC1, INC. (a Florida corporation)

SAI FL HC2, INC. (a Florida corporation)

SAI FL HC3, INC. (a Florida corporation)

SAI FL HC4, INC. (a Florida corporation)

SAI FL HC5, INC. (a Florida corporation)

SAI FL HC6, INC. (a Florida corporation)

SAI FL HC7, INC. (a Florida corporation)

SAI FORT MYERS B, LLC (a Florida limited liability company)

SAI FORT MYERS H, LLC (a Florida limited liability company)

SAI FORT MYERS M, LLC (a Florida limited liability company)

SAI FORT MYERS VW, LLC (a Florida limited liability company)

SAI GA HC1, LP (a Georgia limited partnership)

SAI GEORGIA, LLC (a Georgia limited liability company)

SAI IRONDALE IMPORTS, LLC (an Alabama limited liability company)

SAI IRONDALE L, LLC (an Alabama limited liability company)

SAI LANSING CH, LLC (a Michigan limited liability company)

SAI LONG BEACH B, INC. (a California corporation)

SAI MD HC1, INC. (a Maryland corporation)

SAI MONROVIA B, INC. (a California corporation)

SAI MONTGOMERY B, LLC (an Alabama limited liability company)

SAI MONTGOMERY BCH, LLC (an Alabama limited liability company)

SAI MONTGOMERY CH, LLC (an Alabama limited liability company)

SAI NASHVILLE CSH, LLC (a Tennessee limited liability company)

SAI NASHVILLE H, LLC (a Tennessee limited liability company)

SAI NASHVILLE M, LLC (a Tennessee limited liability company)

SAI NASHVILLE MOTORS, LLC (a Tennessee limited liability company)

SAI NC HC2, INC. (a North Carolina corporation)

SAI OH HC1, INC. (an Ohio corporation)

SAI OK HC1, INC. (an Oklahoma corporation)

SAI OKLAHOMA CITY C, LLC (an Oklahoma limited liability company)

SAI OKLAHOMA CITY H, LLC (an Oklahoma limited liability company)

SAI OKLAHOMA CITY T, LLC (an Oklahoma limited liability company)

SAI ORLANDO CS, LLC (a Florida limited liability company)

SAI PEACHTREE, LLC (a Georgia limited liability company)

SAI PLYMOUTH C, LLC (a Michigan limited liability company)

SAI RIVERSIDE C, LLC (an Oklahoma limited liability company)

SAI ROCKVILLE IMPORTS, LLC (a Maryland limited liability company)

SAI ROCKVILLE L, LLC (a Maryland limited liability company)

SAI STONE MOUNTAIN T, LLC (a Georgia limited liability company)

SAI TN HC1, LLC (a Tennessee limited liability company)

SAI TN HC2, LLC (a Tennessee limited liability company)

SAI TN HC3, LLC (a Tennessee limited liability company)

SAI TULSA N, LLC (an Oklahoma limited liability company)

SAI TULSA T, LLC (an Oklahoma limited liability company)

SAI VA HC1, INC. (a Virginia corporation)

SANTA CLARA IMPORTED CARS, INC. (a California corporation)

SONIC — BUENA PARK H, INC. (a California corporation)

 

 

SONIC — CADILLAC D, L.P. (a Texas limited partnership)

SONIC — CALABASAS A, INC. (a California corporation)

SONIC — CALABASAS V, INC. (a California corporation)

SONIC — CAMP FORD, L.P. (a Texas limited partnership)

SONIC — CAPITOL CADILLAC, INC. (a Michigan corporation)

SONIC — CAPITOL IMPORTS, INC. (a South Carolina corporation)

SONIC — CARROLLTON V, L.P. (a Texas limited partnership)

SONIC — CARSON F, INC. (a California corporation)

SONIC — CARSON LM, INC. (a California corporation)

SONIC — CHATTANOOGA D EAST, LLC (a Tennessee limited liability company)

SONIC — CLEAR LAKE N, L.P. (a Texas limited partnership)

SONIC — CLEAR LAKE VOLKSWAGEN, L.P. (a Texas limited partnership)

SONIC — DENVER T, INC. (a Colorado corporation)

SONIC — DENVER VOLKSWAGEN, INC. (a Colorado corporation)

SONIC — DOWNEY CADILLAC, INC. (a California corporation)

SONIC — ENGLEWOOD M, INC. (a Colorado corporation)

SONIC — FORT MILL CHRYSLER JEEP, INC. (a South Carolina corporation)

SONIC — FORT MILL DODGE, INC. (a South Carolina corporation)

SONIC — FORT WORTH T, L.P. (a Texas limited partnership)

SONIC — FRANK PARRA AUTOPLEX, L.P. (a Texas limited partnership)

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 — JERSEY VILLAGE VOLKSWAGEN, L.P. (a Texas limited partnership)

SONIC — LAKE NORMAN CHRYSLER JEEP, LLC (a North Carolina 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 — LONE TREE CADILLAC, INC. (a Colorado corporation)

SONIC — LS CHEVROLET, L.P. (a Texas limited partnership)

SONIC — LS, LLC (a Delaware limited liability company)

SONIC — LUTE RILEY, L. P. (a Texas limited partnership)

SONIC — MANHATTAN FAIRFAX, INC. (a Virginia corporation)

SONIC — MASSEY CADILLAC, L.P. (a Texas limited partnership)

SONIC — MASSEY CHEVROLET, INC. (a California corporation)

SONIC — MASSEY PONTIAC BUICK GMC, INC. (a Colorado corporation)

SONIC — MESQUITE HYUNDAI, L.P. (a Texas limited partnership)

SONIC — NEWSOME CHEVROLET WORLD, INC. (a South Carolina corporation)

SONIC — NEWSOME OF FLORENCE, INC. (a South Carolina corporation)

SONIC — NORTH CHARLESTON DODGE, INC. (a South Carolina corporation)

SONIC — NORTH CHARLESTON, INC. (a South Carolina corporation)

SONIC — PLYMOUTH CADILLAC, INC. (a Michigan corporation)

SONIC — READING, L.P. (a Texas limited partnership)

SONIC — RICHARDSON F, L.P. (a Texas limited partnership)

SONIC — RIVERSIDE AUTO FACTORY, INC. (an Oklahoma corporation)

SONIC — SAM WHITE NISSAN, L.P. (a Texas limited partnership)

SONIC — SANFORD CADILLAC, INC. (a Florida corporation)

SONIC — SATURN OF SILICON VALLEY, INC. (a California corporation)

SONIC — SHOTTENKIRK, INC. (a Florida corporation)

SONIC — SOUTH CADILLAC, INC. (a Florida corporation)

SONIC — STEVENS CREEK B, INC. (a California corporation)

SONIC — STONE MOUNTAIN T, L.P. (a Georgia limited partnership)

SONIC — UNIVERSITY PARK A, L.P. (a Texas limited partnership)

 

 

SONIC — VOLVO LV, LLC (a Nevada limited liability company)

SONIC — WEST COVINA T, INC. (a California corporation)

SONIC — WILLIAMS CADILLAC, INC. (an Alabama corporation)

SONIC 2185 CHAPMAN RD., CHATTANOOGA, LLC (a Tennessee limited liability company)

SONIC ADVANTAGE PA, LP (a Texas limited partnership)

SONIC AGENCY, INC. (a Michigan corporation)

SONIC AUTOMOTIVE — 1495 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 — 2490 SOUTH LEE HIGHWAY, LLC (a Tennessee limited liability company)

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 — 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 — 6008 N. DALE MABRY, FL, INC. (a Florida corporation)

SONIC AUTOMOTIVE — 9103 E. INDEPENDENCE, NC, LLC (a North Carolina limited liability company)

SONIC AUTOMOTIVE 2424 LAURENS RD., GREENVILLE, INC. (a South Carolina corporation)

SONIC AUTOMOTIVE 2752 LAURENS RD., GREENVILLE, INC. (a South Carolina corporation)

SONIC AUTOMOTIVE F&I, LLC (a Nevada limited liability company)

SONIC AUTOMOTIVE OF CHATTANOOGA, LLC (a Tennessee limited liability company)

SONIC AUTOMOTIVE OF NASHVILLE, LLC (a Tennessee limited liability company)

SONIC AUTOMOTIVE OF NEVADA, INC. (a Nevada corporation)

SONIC AUTOMOTIVE OF TEXAS, L.P. (a Texas limited partnership)

SONIC AUTOMOTIVE SUPPORT, LLC (a Nevada limited liability company)

SONIC AUTOMOTIVE WEST, LLC (a Nevada limited liability company)

SONIC CALABASAS M, INC. (a California corporation)

SONIC COAST CADILLAC, INC. (a California corporation)

SONIC DEVELOPMENT, LLC (a North Carolina limited liability company)

SONIC DIVISIONAL OPERATIONS, LLC (a Nevada limited liability company)

SONIC ESTORE, INC. (a North Carolina corporation)

SONIC FREMONT, INC. (a California corporation)

SONIC HOUSTON JLR, LP (a Texas limited partnership)

SONIC HOUSTON LR, LP (a Texas limited partnership)

SONIC MOMENTUM B, L.P. (a Texas limited partnership)

SONIC MOMENTUM JVP, L.P. (a Texas limited partnership)

SONIC MOMENTUM VWA, L.P. (a Texas limited partnership)

SONIC OF TEXAS, INC. (a Texas corporation)

SONIC OKEMOS IMPORTS, INC. (a Michigan corporation)

SONIC PEACHTREE INDUSTRIAL BLVD., L.P. (a Georgia limited partnership)

SONIC RESOURCES, INC. (a Nevada corporation)

SONIC SANTA MONICA M, INC. (a California corporation)

SONIC SANTA MONICA S, INC. (a California corporation)

SONIC SERRAMONTE I, INC. (a California corporation)

SONIC TYSONS CORNER H, INC. (a Virginia corporation)

SONIC TYSONS CORNER INFINITI, INC. (a Virginia corporation)

SONIC WALNUT CREEK M, INC. (a California corporation)

SONIC WILSHIRE CADILLAC, INC. (a California corporation)

SRE ALABAMA — 2, LLC (an Alabama limited liability company)

SRE ALABAMA — 3, LLC (an Alabama limited liability company)

SRE ALABAMA — 4, LLC (an Alabama limited liability company)

 

 

SRE ALABAMA — 5, LLC (an Alabama limited liability company)

SRE CALIFORNIA — 1, LLC (a California limited liability company)

SRE CALIFORNIA — 2, LLC (a California limited liability company)

SRE CALIFORNIA — 3, LLC (a California limited liability company)

SRE CALIFORNIA — 4, LLC (a California limited liability company)

SRE CALIFORNIA — 5, LLC (a California limited liability company)

SRE CALIFORNIA — 6, LLC (a California limited liability company)

SRE COLORADO — 1, LLC (a Colorado limited liability company)

SRE COLORADO — 2, LLC (a Colorado limited liability company)

SRE COLORADO — 3, LLC (a Colorado 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 partnership)

SRE GEORGIA — 2, L.P. (a Georgia limited partnership)

SRE GEORGIA — 3, L.P. (a Georgia limited partnership)

SRE HOLDING, LLC (a North Carolina limited liability company)

SRE MARYLAND — 1, LLC (a Maryland limited liability company)

SRE MARYLAND — 2, LLC (a Maryland limited liability company)

SRE MICHIGAN — 3, LLC (a Michigan 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 NEVADA — 4, LLC (a Nevada limited liability company)

SRE NEVADA — 5, LLC (a Nevada limited liability company)

SRE NORTH CAROLINA — 1, LLC (a North Carolina limited liability company)

SRE NORTH CAROLINA — 2, LLC (a North Carolina limited liability company)

SRE NORTH CAROLINA — 3, LLC (a North Carolina limited liability company)

SRE OKLAHOMA — 1, LLC (an Oklahoma limited liability company)

SRE OKLAHOMA — 2, LLC (an Oklahoma limited liability company)

SRE OKLAHOMA — 3, LLC (an Oklahoma limited liability company)

SRE OKLAHOMA — 4, LLC (an Oklahoma limited liability company)

SRE OKLAHOMA — 5, LLC (an Oklahoma limited liability company)

SRE SOUTH CAROLINA — 2, LLC (a South Carolina limited liability company)

SRE SOUTH CAROLINA — 3, LLC (a South Carolina limited liability company)

SRE SOUTH CAROLINA — 4, 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 TENNESSEE — 4, LLC (a Tennessee limited liability company)

SRE TENNESSEE — 5, LLC (a Tennessee limited liability company)

SRE TENNESSEE — 6, LLC (a Tennessee limited liability company)

SRE TENNESSEE — 7, LLC (a Tennessee limited liability company)

SRE TENNESSEE — 8, LLC (a Tennessee limited liability company)

SRE TENNESSEE — 9, 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 TEXAS — 4, L.P. (a Texas limited partnership)

SRE TEXAS — 5, L.P. (a Texas limited partnership)

SRE TEXAS — 6, L.P. (a Texas limited partnership)

SRE TEXAS — 7, L.P. (a Texas limited partnership)

SRE TEXAS — 8, L.P. (a Texas limited partnership)

SRE VIRGINIA — 1, LLC (a Virginia limited liability company)

 

 

SRE VIRGINIA — 2, LLC (a Virginia 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)

SREALESTATE ARIZONA — 5, LLC (an Arizona limited liability company)

SREALESTATE ARIZONA — 6, LLC (an Arizona limited liability company)

SREALESTATE ARIZONA — 7, LLC (an Arizona limited liability company)

STEVENS CREEK CADILLAC, INC. (a California corporation)

TOWN AND COUNTRY FORD, INCORPORATED (a North Carolina corporation)

VILLAGE IMPORTED CARS, INC. (a Maryland corporation)

WINDWARD, INC. (a Hawaii corporation)

Z MANAGEMENT, INC. (a Colorado corporation)

as Guarantors,

and

U.S. Bank National Association, as Trustee

 

INDENTURE

Dated as of March 12, 2010

 

9.0% Senior Subordinated Notes due 2018

 

 

Reconciliation and tie between Trust Indenture Act of 1939,

as amended, and Indenture, dated as of March 12, 2010

	 	 	 	 	 	 	 
	Trust Indenture	 	 	 	Indenture
	Act Section	 	 	 	Section
	§ 310
	 	(a)(1)	 	 	 	609
	 
	 	(a)(2)	 	 	 	609
	 
	 	(b)	 	 	 	608, 610
	§ 311
	 	(a)	 	 	 	613
	§ 312
	 	(a)	 	 	 	701
	 
	 	(b)	 	 	 	702
	 
	 	(c)	 	 	 	702
	§ 313
	 	(a)	 	 	 	703
	 
	 	(b)(2)	 	 	 	703
	 
	 	(c)	 	 	 	703, 704
	§ 314
	 	(a)	 	 	 	704
	 
	 	(a)(4)	 	 	 	1018
	 
	 	(c)(1)	 	 	 	103
	 
	 	(c)(2)	 	 	 	103
	 
	 	(e)	 	 	 	103
	§ 315
	 	(a)	 	 	 	601(b)
	 
	 	(b)	 	 	 	602
	 
	 	(c)	 	 	 	601(a)
	 
	 	(d)	 	 	 	601(c), 603
	 
	 	(e)	 	 	 	514
	§ 316
	 	(a)(last sentence)	 	 	 	101 (“Outstanding”)
	 
	 	(a)(1)(A)	 	 	 	512
	 
	 	(a)(1)(B)	 	 	 	513
	 
	 	(b)	 	 	 	508
	 
	 	(c)	 	 	 	105(e)
	§ 317
	 	(a)(1)	 	 	 	503(b)
	 
	 	(a)(2)	 	 	 	504
	 
	 	(b)	 	 	 	1003
	§ 318
	 	(a)	 	 	 	108

 

			
	Note:	 	This reconciliation and tie shall not, for any purpose, be deemed to be a part of this
Indenture.

- 1 -

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	PAGE	 
	PARTIES
	 	 	1	 
	 
	 	 	 	 
	RECITALS
	 	 	1	 
	 
	 	 	 	 
	ARTICLE ONE DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
	 	 	1	 
	 
	 	 	 	 
	Section 101. Definitions.
	 	 	1	 
	“Acquired Indebtedness”
	 	 	2	 
	“Additional Securities”
	 	 	3	 
	“Affiliate”
	 	 	3	 
	“Applicable Premium”
	 	 	3	 
	“Applicable Procedures”
	 	 	3	 
	“Asset Sale”
	 	 	3	 
	“Average Life to Stated Maturity”
	 	 	4	 
	“Bankruptcy Law”
	 	 	4	 
	“Board of Directors”
	 	 	4	 
	“Board Resolution”
	 	 	4	 
	“Book-Entry Security”
	 	 	4	 
	“Business Day”
	 	 	5	 
	“Capital Lease Obligation”
	 	 	5	 
	“Capital Stock”
	 	 	5	 
	“Cash Equivalents”
	 	 	5	 
	“Change of Control”
	 	 	5	 
	“Clearstream”
	 	 	6	 
	“Class A Common Stock”
	 	 	6	 
	“Commission”
	 	 	6	 
	“Commodity Price Protection Agreement”
	 	 	7	 
	“Company”
	 	 	7	 
	“Company Request” or “Company Order”
	 	 	7	 
	“Consolidated Fixed Charge Coverage Ratio”
	 	 	7	 
	“Consolidated Income Tax Expense”
	 	 	8	 
	“Consolidated Interest Expense”
	 	 	8	 
	“Consolidated Net Income (Loss)”
	 	 	8	 
	“Consolidated Non-cash Charges”
	 	 	9	 
	“Consolidated Tangible Assets”
	 	 	9	 
	“Consolidation”
	 	 	9	 
	“Continuing Directors”
	 	 	10	 
	“Corporate Trust Office”
	 	 	10	 
	“Credit Facility”
	 	 	10	 
	“Currency Hedging Agreements”
	 	 	11	 
	“Default”
	 	 	11	 
	“Depositary”
	 	 	11	 
	“Designated Noncash Consideration”
	 	 	11	 

- i -

 

	 	 	 	 	 
	 	 	PAGE	 
	“Designated Senior Indebtedness”
	 	 	11	 
	“Disinterested Director”
	 	 	11	 
	“8.625% Securities”
	 	 	11	 
	“Euroclear”
	 	 	11	 
	“Event of Default”
	 	 	11	 
	“Exchange Act”
	 	 	12	 
	“Exchange Offer”
	 	 	12	 
	“Exchange Offer Registration Statement”
	 	 	12	 
	“Fair Market Value”
	 	 	12	 
	“4.25% Securities”
	 	 	12	 
	“Generally Accepted Accounting Principles” or “GAAP”
	 	 	12	 
	“Global Securities”
	 	 	12	 
	“Guarantee”
	 	 	12	 
	“Guaranteed Debt”
	 	 	12	 
	“Guarantor”
	 	 	13	 
	“Holder”
	 	 	13	 
	“Indebtedness”
	 	 	13	 
	“Indenture”
	 	 	14	 
	“Indenture Obligations”
	 	 	14	 
	“Initial Purchasers”
	 	 	14	 
	“Initial Securities”
	 	 	14	 
	“Interest Payment Date”
	 	 	14	 
	“Interest Rate Agreements”
	 	 	14	 
	“Inventory Facility”
	 	 	14	 
	“Investment”
	 	 	15	 
	“Issue Date”
	 	 	15	 
	“Lien”
	 	 	15	 
	“Manufacturer”
	 	 	15	 
	“Maturity”
	 	 	15	 
	“Moody’s”
	 	 	16	 
	“Mortgage Loans”
	 	 	16	 
	“Net Cash Proceeds”
	 	 	16	 
	“Non-U.S. Person”
	 	 	17	 
	“Officers’ Certificate”
	 	 	17	 
	“Opinion of Counsel”
	 	 	17	 
	“Opinion of Independent Counsel”
	 	 	17	 
	“Outstanding”
	 	 	17	 
	“Pari Passu Indebtedness”
	 	 	18	 
	“Paying Agent”
	 	 	18	 
	“Permitted Holders”
	 	 	18	 
	“Permitted Investment”
	 	 	19	 
	“Permitted Junior Payment”
	 	 	19	 
	“Permitted Guarantor Junior Payment”
	 	 	20	 
	“Person”
	 	 	20	 
	“Predecessor Security”
	 	 	20	 
	“Preferred Stock”
	 	 	20	 
	“Prospectus”
	 	 	20	 

- ii -

 

	 	 	 	 	 
	 	 	PAGE	 
	“Purchase Money Obligation”
	 	 	20	 
	“Qualified Capital Stock”
	 	 	21	 
	“Redeemable Capital Stock”
	 	 	21	 
	“Redemption Date”
	 	 	21	 
	“Redemption Price”
	 	 	21	 
	“Registration Rights Agreement”
	 	 	21	 
	“Registration Statement”
	 	 	21	 
	“Regular Record Date”
	 	 	22	 
	“Regulation S”
	 	 	22	 
	“Regulation S Global Securities”
	 	 	22	 
	“Responsible Officer”
	 	 	22	 
	“Replacement Assets”
	 	 	22	 
	“Restricted Subsidiary”
	 	 	22	 
	“Rule 144A”
	 	 	22	 
	“Rule 144A Global Securities”
	 	 	22	 
	“S&P”
	 	 	22	 
	“Securities Act”
	 	 	22	 
	“Senior Guarantor Indebtedness”
	 	 	22	 
	“Senior Guarantor Representative”
	 	 	23	 
	“Senior Indebtedness”
	 	 	23	 
	“Senior Representative”
	 	 	24	 
	“Series B Global Securities”
	 	 	24	 
	“Shelf Registration Statement”
	 	 	24	 
	“Significant Restricted Subsidiary”
	 	 	24	 
	“Special Record Date”
	 	 	24	 
	“Stated Maturity”
	 	 	24	 
	“Subordinated Indebtedness”
	 	 	25	 
	“Subsidiary”
	 	 	25	 
	“Successor Security”
	 	 	25	 
	“Temporary Cash Investments”
	 	 	25	 
	“Treasury Rate”
	 	 	25	 
	“Trustee”
	 	 	26	 
	“Trust Indenture Act”
	 	 	26	 
	“Unrestricted Subsidiary”
	 	 	26	 
	“Unrestricted Subsidiary Indebtedness”
	 	 	26	 
	“Voting Stock”
	 	 	26	 
	“Wholly-Owned Restricted Subsidiary”
	 	 	26	 
	Section 102. Other Definitions.
	 	 	27	 
	Section 103. Compliance Certificates and Opinions
	 	 	28	 
	Section 104. Form of Documents Delivered to Trustee
	 	 	28	 
	Section 105. Acts of Holders
	 	 	29	 
	Section 106. Notices, etc., to the Trustee, the Company and any Guarantor
	 	 	31	 
	Section 107. Notice to Holders; Waiver
	 	 	31	 
	Section 108. Conflict with Trust Indenture Act
	 	 	32	 
	Section 109. Effect of Headings and Table of Contents
	 	 	32	 
	Section 110. Successors and Assigns
	 	 	32	 
	Section 111. Separability Clause
	 	 	32	 
	Section 112. Benefits of Indenture
	 	 	32	 

- iii -

 

	 	 	 	 	 
	 	 	PAGE	 
	SECTION 113. GOVERNING LAW
	 	 	33	 
	Section 114. Legal Holidays
	 	 	33	 
	Section 115. Independence of Covenants
	 	 	33	 
	Section 116. Schedules and Exhibits
	 	 	33	 
	Section 117. Counterparts
	 	 	33	 
	Section 118. No Personal Liability of Directors, Officers, Employees, Members, Partners
and Stockholders
	 	 	33	 
	 
	 	 	 	 
	ARTICLE TWO SECURITY FORMS
	 	 	34	 
	 
	 	 	 	 
	Section 201. Forms Generally
	 	 	34	 
	Section 202. Form of Face of Security
	 	 	35	 
	Section 203. Form of Reverse of Securities
	 	 	49	 
	Section 204. Form of Guarantee
	 	 	58	 
	 
	 	 	 	 
	ARTICLE THREE THE SECURITIES
	 	 	64	 
	 
	 	 	 	 
	Section 301. Title and Terms
	 	 	64	 
	Section 302. Denominations
	 	 	65	 
	Section 303. Execution, Authentication, Delivery and Dating
	 	 	66	 
	Section 304. Temporary Securities
	 	 	67	 
	Section 305. Registration, Registration of Transfer and Exchange
	 	 	67	 
	Section 306. Book Entry Provisions for Global Securities
	 	 	69	 
	Section 307. Special Transfer and Exchange Provisions
	 	 	71	 
	Section 308. Mutilated, Destroyed, Lost and Stolen Securities
	 	 	74	 
	Section 309. Payment of Interest; Interest Rights Preserved
	 	 	75	 
	Section 310. CUSIP Numbers
	 	 	76	 
	Section 311. Persons Deemed Owners
	 	 	76	 
	Section 312. Cancellation
	 	 	76	 
	Section 313. Computation of Interest
	 	 	77	 
	 
	 	 	 	 
	ARTICLE FOUR DEFEASANCE AND COVENANT DEFEASANCE
	 	 	77	 
	 
	 	 	 	 
	Section 401. Company’s Option to Effect Defeasance or Covenant Defeasance
	 	 	77	 
	Section 402. Defeasance and Discharge
	 	 	77	 
	Section 403. Covenant Defeasance
	 	 	78	 
	Section 404. Conditions to Defeasance or Covenant Defeasance
	 	 	78	 
	Section 405. Deposited Money and U.S. Government Obligations to Be Held in Trust; Other
Miscellaneous Provisions
	 	 	81	 
	Section 406. Reinstatement
	 	 	81	 
	 
	 	 	 	 
	ARTICLE FIVE REMEDIES
	 	 	82	 
	 
	 	 	 	 
	Section 501. Events of Default
	 	 	82	 
	Section 502. Acceleration of Maturity; Rescission and Annulment
	 	 	84	 
	Section 503. Collection of Indebtedness and Suits for Enforcement by Trustee
	 	 	85	 
	Section 504. Trustee May File Proofs of Claim
	 	 	86	 
	Section 505. Trustee May Enforce Claims without Possession of Securities
	 	 	87	 
	Section 506. Application of Money Collected
	 	 	87	 

- iv -

 

	 	 	 	 	 
	 	 	PAGE	 
	Section 507. Limitation on Suits
	 	 	87	 
	Section 508. Unconditional Right of Holders to Receive Principal, Premium and
Interest
	 	 	88	 
	Section 509. Restoration of Rights and Remedies
	 	 	88	 
	Section 510. Rights and Remedies Cumulative
	 	 	89	 
	Section 511. Delay or Omission Not Waiver
	 	 	89	 
	Section 512. Control by Holders
	 	 	89	 
	Section 513. Waiver of Past Defaults
	 	 	89	 
	Section 514. Undertaking for Costs
	 	 	90	 
	Section 515. Waiver of Stay, Extension or Usury Laws
	 	 	90	 
	Section 516. Remedies Subject to Applicable Law
	 	 	91	 
	 
	 	 	 	 
	ARTICLE SIX THE TRUSTEE
	 	 	91	 
	 
	 	 	 	 
	Section 601. Duties of Trustee
	 	 	91	 
	Section 602. Notice of Defaults
	 	 	92	 
	Section 603. Certain Rights of Trustee.
	 	 	92	 
	Section 604. Trustee Not Responsible for Recitals, Dispositions of Securities or
Application of Proceeds Thereof
	 	 	94	 
	Section 605. Trustee and Agents May Hold Securities; Collections; etc
	 	 	94	 
	Section 606. Money Held in Trust
	 	 	95	 
	Section 607. Compensation and Indemnification of Trustee and Its Prior Claim
	 	 	95	 
	Section 608. Conflicting Interests
	 	 	96	 
	Section 609. Trustee Eligibility
	 	 	96	 
	Section 610. Resignation and Removal; Appointment of Successor Trustee
	 	 	96	 
	Section 611. Acceptance of Appointment by Successor
	 	 	98	 
	Section 612. Merger, Conversion, Consolidation or Succession to Business
	 	 	99	 
	Section 613. Preferential Collection of Claims Against Company
	 	 	99	 
	 
	 	 	 	 
	ARTICLE SEVEN HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY
	 	 	99	 
	 
	 	 	 	 
	Section 701. Company to Furnish Trustee Names and Addresses of Holders
	 	 	99	 
	Section 702. Disclosure of Names and Addresses of Holders
	 	 	100	 
	Section 703. Reports by Trustee
	 	 	100	 
	Section 704. Reports by Company and Guarantors
	 	 	101	 
	 
	 	 	 	 
	ARTICLE EIGHT CONSOLIDATION, MERGER, SALE OF ASSETS
	 	 	102	 
	 
	 	 	 	 
	Section 801. Company and Guarantors May Consolidate, etc., Only on Certain Terms
	 	 	102	 
	Section 802. Successor Substituted
	 	 	104	 
	 
	 	 	 	 
	ARTICLE NINE SUPPLEMENTAL INDENTURES
	 	 	105	 
	 
	 	 	 	 
	Section 901. Supplemental Indentures and Agreements without Consent of Holders
	 	 	105	 
	Section 902. Supplemental Indentures and Agreements with Consent of Holders
	 	 	106	 
	Section 903. Execution of Supplemental Indentures and Agreements
	 	 	107	 
	Section 904. Effect of Supplemental Indentures
	 	 	108	 
	Section 905. Conformity with Trust Indenture Act
	 	 	108	 

- v -

 

	 	 	 	 	 
	 	 	PAGE	 
	Section 906. Reference in Securities to Supplemental Indentures
	 	 	108	 
	Section 907. Notice of Supplemental Indentures
	 	 	108	 
	 
	 	 	 	 
	ARTICLE TEN COVENANTS
	 	 	109	 
	 
	 	 	 	 
	Section 1001. Payment of Principal, Premium and Interest
	 	 	109	 
	Section 1002. Maintenance of Office or Agency
	 	 	109	 
	Section 1003. Money for Security Payments to Be Held in Trust
	 	 	109	 
	Section 1004. Corporate Existence
	 	 	111	 
	Section 1005. Payment of Taxes and Other Claims
	 	 	111	 
	Section 1006. Maintenance of Properties
	 	 	112	 
	Section 1007. Maintenance of Insurance
	 	 	112	 
	Section 1008. Limitation on Indebtedness
	 	 	112	 
	Section 1009. Limitation on Restricted Payments
	 	 	116	 
	Section 1010. Limitation on Transactions with Affiliates
	 	 	122	 
	Section 1011. Limitation on Liens
	 	 	123	 
	Section 1012. Limitation on Sale of Assets
	 	 	124	 
	Section 1013. Limitation on Issuances of Guarantees of and Pledges for Indebtedness
	 	 	129	 
	Section 1014. Purchase of Securities upon a Change of Control
	 	 	130	 
	Section 1015. Limitation on Subsidiary Preferred Stock
	 	 	134	 
	Section 1016. Limitation on Dividends and Other Payment Restrictions Affecting
Subsidiaries
	 	 	134	 
	Section 1017. Limitation on Senior Subordinated Indebtedness
	 	 	136	 
	Section 1018. Limitations on Unrestricted Subsidiaries
	 	 	136	 
	Section 1019. Provision of Financial Statements
	 	 	138	 
	Section 1020. Statement by Officers as to Default
	 	 	138	 
	Section 1021. Waiver of Certain Covenants
	 	 	139	 
	 
	 	 	 	 
	ARTICLE ELEVEN REDEMPTION OF SECURITIES
	 	 	140	 
	 
	 	 	 	 
	Section 1101. Rights of Redemption
	 	 	140	 
	Section 1102. Applicability of Article
	 	 	140	 
	Section 1103. Election to Redeem; Notice to Trustee
	 	 	140	 
	Section 1104. Selection by Trustee of Securities to Be Redeemed
	 	 	140	 
	Section 1105. Notice of Redemption
	 	 	141	 
	Section 1106. Deposit of Redemption Price
	 	 	142	 
	Section 1107. Securities Payable on Redemption Date
	 	 	142	 
	Section 1108. Securities Redeemed or Purchased in Part
	 	 	142	 
	 
	 	 	 	 
	ARTICLE TWELVE SATISFACTION AND DISCHARGE
	 	 	143	 
	 
	 	 	 	 
	Section 1201. Satisfaction and Discharge of Indenture
	 	 	143	 
	Section 1202. Application of Trust Money
	 	 	144	 
	 
	 	 	 	 
	ARTICLE THIRTEEN GUARANTEES
	 	 	145	 
	 
	 	 	 	 
	Section 1301. Guarantors’ Guarantee
	 	 	145	 
	Section 1302. Continuing Guarantee; No Right of Set-Off; Independent Obligation
	 	 	145	 
	Section 1303. Guarantee Absolute
	 	 	146	 

- vi -

 

	 	 	 	 	 
	 	 	PAGE	 
	Section 1304. Right to Demand Full Performance
	 	 	149	 
	Section 1305. Waivers
	 	 	150	 
	Section 1306. The Guarantors Remain Obligated in Event the Company Is No Longer
Obligated to Discharge Indenture Obligations
	 	 	151	 
	Section 1307. Fraudulent Conveyance; Contribution; Subrogation
	 	 	151	 
	Section 1308. Guarantee Is in Addition to Other Security
	 	 	152	 
	Section 1309. Release of Security Interests
	 	 	152	 
	Section 1310. No Bar to Further Actions
	 	 	152	 
	Section 1311. Failure to Exercise Rights Shall Not Operate as a Waiver; No Suspension
of Remedies
	 	 	152	 
	Section 1312. Trustee’s Duties; Notice to Trustee
	 	 	153	 
	Section 1313. Successors and Assigns
	 	 	153	 
	Section 1314. Release of Guarantee
	 	 	153	 
	Section 1315. Execution of Guarantee
	 	 	154	 
	Section 1316. Guarantee Subordinate to Senior Guarantor Indebtedness
	 	 	155	 
	Section 1317. Payment Over of Proceeds Upon Dissolution of the Guarantor, etc
	 	 	155	 
	Section 1318. Suspension of Payment When Designated Senior Guarantor Indebtedness in
Default
	 	 	156	 
	Section 1319. Payment Permitted by Each of the Guarantors if No Default
	 	 	157	 
	Section 1320. Subrogation to Rights of Holders of Senior Guarantor Indebtedness
	 	 	157	 
	Section 1321. Provisions Solely to Define Relative Rights
	 	 	157	 
	Section 1322. Trustee to Effectuate Subordination
	 	 	158	 
	Section 1323. No Waiver of Subordination Provisions
	 	 	158	 
	Section 1324. Notice to Trustee by Each of the Guarantors
	 	 	159	 
	Section 1325. Reliance on Judicial Orders or Certificates
	 	 	160	 
	Section 1326. Rights of Trustee as a Holder of Senior Guarantor Indebtedness;
Preservation of Trustee’s Rights
	 	 	160	 
	Section 1327. Article Applicable to Paying Agents
	 	 	160	 
	Section 1328. No Suspension of Remedies
	 	 	160	 
	Section 1329. Trustee’s Relation to Senior Guarantor Indebtedness
	 	 	161	 
	 
	 	 	 	 
	ARTICLE FOURTEEN SUBORDINATION OF SECURITIES
	 	 	161	 
	 
	 	 	 	 
	Section 1401. Securities Subordinate to Senior Indebtedness
	 	 	161	 
	Section 1402. Payment Over of Proceeds Upon Dissolution, etc
	 	 	161	 
	Section 1403. Suspension of Payment When Designated Senior Indebtedness in Default
	 	 	163	 
	Section 1404. Payment Permitted if No Default
	 	 	164	 
	Section 1405. Subrogation to Rights of Holders of Senior Indebtedness
	 	 	165	 
	Section 1406. Provisions Solely to Define Relative Rights
	 	 	165	 
	Section 1407. Trustee to Effectuate Subordination
	 	 	165	 
	Section 1408. No Waiver of Subordination Provisions
	 	 	166	 
	Section 1409. Notice to Trustee
	 	 	167	 
	Section 1410. Reliance on Judicial Orders or Certificates
	 	 	168	 
	Section 1411. Rights of Trustee as a Holder of Senior Indebtedness; Preservation of
Trustee’s Rights
	 	 	168	 
	Section 1412. Article Applicable to Paying Agents
	 	 	168	 
	Section 1413. No Suspension of Remedies
	 	 	168	 
	Section 1414. Trustee’s Relation to Senior Indebtedness
	 	 	169	 

- vii -

 

TESTIMONIUM

SIGNATURES AND SEALS

ACKNOWLEDGMENTS

	 	 	 
	SCHEDULE I
	 	Existing Indebtedness

	 	 	 

	EXHIBIT A
	 	Regulation S Certificate

	 	 	 

	EXHIBIT B
	 	Restricted Security Certificate

	 	 	 

	EXHIBIT C
	 	Unrestricted Security Certificate

	 	 	 

	APPENDIX I
	 	Form of Transferee Certificate for Series A Securities

	 	 	 

	APPENDIX II
	 	Form of Transferee Certificate for Series B Securities

- viii -

 

          INDENTURE, dated as of March 12, 2018, between Sonic Automotive, Inc., a Delaware
corporation (the “Company”), the guarantors set forth on the signature pages hereto (each a
“Guarantor” and collectively, the “Guarantors”) and U.S. Bank National Association, as Trustee (the
“Trustee”).

RECITALS OF THE COMPANY AND THE GUARANTORS

          The Company has duly authorized the creation of an issue of 9.0% Senior Subordinated Notes due
2018, Series A (the “Series A Securities”) and (ii) 9.0% Senior Subordinated Notes due 2018, Series
B (the “Series B Securities” and, together with the Series A Securities, the “Securities”) of
substantially the tenor and amount hereinafter set forth (subject to the ability of the Company to
issue additional Securities hereunder as described herein), and to provide therefor the Company has
duly authorized the execution and delivery of this Indenture and the Securities;

          Each Guarantor has duly authorized the issuance of a Guarantee of the Securities, of
substantially the tenor hereinafter set forth, and to provide therefor, each Guarantor has duly
authorized the execution and delivery of this Indenture and its Guarantee;

          Upon the issuance of the Series B Securities, this Indenture is subject to, and shall be
governed by, the provisions of the Trust Indenture Act that are required to be part of and to
govern indentures qualified under the Trust Indenture Act;

          All acts and things necessary have been done to make (i) the Securities, when duly issued and
executed by the Company and authenticated and delivered hereunder, the valid obligations of the
Company, (ii) the Guarantees, when executed by each of the Guarantors and delivered hereunder, the
valid obligation of each of the Guarantors and (iii) this Indenture a valid agreement of the
Company and each of the Guarantors in accordance with the terms of this Indenture;

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

          For and in consideration of the premises and the purchase of the Securities by the Holders
thereof, it is mutually covenanted and agreed, for the equal and proportionate benefit of all
Holders of the Securities, as follows:

ARTICLE ONE

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

     Section 101. Definitions.

 - 1 - 

 

          For all purposes of this Indenture, except as otherwise expressly provided or unless the
context otherwise requires:

          (a) the terms defined in this Article have the meanings assigned to them in this Article, and
include the plural as well as the singular;

          (b) all other terms used herein which are defined in the Trust Indenture Act, either directly
or by reference therein, have the meanings assigned to them therein;

          (c) all accounting terms not otherwise defined herein have the meanings assigned to them in
accordance with GAAP;

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

          (e) all references to $, US$, dollars or United States dollars shall refer to the lawful
currency of the United States of America;

          (f) all references herein to particular Sections or Articles refer to this Indenture unless
otherwise so indicated; and

          (g) unsecured Indebtedness shall not be deemed to be subordinate or junior to secured
Indebtedness merely by virtue of its nature as unsecured Indebtedness and Senior Indebtedness shall
not be deemed to be subordinate or junior to any other Senior Indebtedness merely because it has a
junior priority with respect to the same collateral, including, without limitation, for purposes of
Section 1017 hereof.

          Certain terms used principally in Article Four are defined in Article Four.

          “Acquired Indebtedness” means

          (i) Indebtedness of a Person existing at the time such Person becomes a Restricted Subsidiary;

          (ii) Indebtedness of any other Person existing at the time such other Person is merged with or
into or becomes a Restricted Subsidiary of such specified Person; or

          (iii) Indebtedness of a Person assumed in connection with the acquisition of assets from such
Person,

          in each case, other than Indebtedness incurred in connection with, or in contemplation of,
such Person becoming a Restricted Subsidiary or such acquisition, as the case may be. Acquired
Indebtedness shall be deemed to be incurred on the date of the

 - 2 - 

 

related acquisition of assets from any Person or the date the acquired Person becomes a
Restricted Subsidiary, as the case may be.

          “Additional Securities” means further Securities (other than the Initial Securities issued on
the date of this Indenture) issued under this Indenture in accordance with the terms of this
Indenture, including Sections 303 and 1108 hereof, as part of the same series as the Initial
Securities, ranking equally with the Initial Securities in all respects, subject to compliance with
Section 1008 herein. The terms of the Initial Securities and any Additional Securities may have
different issuance dates and dates from which interest accrues and be subject to different
registration rights and shall be part of the same series. The Initial Securities and any
Additional Securities subsequently issued under this Indenture will be consolidated and form a
single series for all purposes under this Indenture, including, without limitation, voting, status,
redemptions, waivers and amendments.

          “Affiliate” means, with respect to any specified Person: (i) any other Person directly or
indirectly controlling or controlled by or under direct or indirect common control with such
specified Person; (ii) any other Person that owns, directly or indirectly, 10% or more of such
specified Person’s Capital Stock or any officer or director of any such specified Person or other
Person or, with respect to any natural Person, any person having a relationship with such Person by
blood, marriage or adoption not more remote than first cousin; or (iii) any other Person 10% or
more of the Voting Stock of which is beneficially owned or held directly or indirectly by such
specified Person. For the purposes of this definition, “control” when used with respect to any
specified Person means the power to direct the management and policies of such Person, directly or
indirectly, whether through ownership of voting securities, by contract or otherwise; and the terms
“controlling” and “controlled” have meanings correlative to the foregoing.

          “Applicable Premium” means, with respect to any Redemption Date, the greater of (i) 1.0% of
the principal amount of the Securities or (ii) the excess of (A) the present value at such
Redemption Date of (1) the Redemption Price of the Securities at March 15, 2014 (such Redemption
Price being set forth in the table appearing in the Form of Reverse of Securities), plus (2) all
required interest payments due on the Securities through March 15, 2014 (excluding accrued but
unpaid interest to the Redemption Date), computed using a discount rate equal to the Treasury Rate
as of such Redemption Date, plus 50 basis points; over (B) the principal amount of the Securities.

          “Applicable Procedures” means, with respect to any transfer or transaction involving a Global
Security or beneficial interest therein, the rules and procedures of the Depositary for such
Security, Euroclear and Clearstream, in each case to the extent applicable to such transaction and
as in effect at the time of such transfer or transaction.

          “Asset Sale” means any sale, issuance, conveyance, transfer, lease or other disposition
(including, without limitation, by way of merger, consolidation or sale and

 - 3 - 

 

leaseback transaction)
(collectively, a “transfer”), directly or indirectly, in one or a series of related transactions,
of: (i) any Capital Stock of any Restricted Subsidiary (other than directors’ qualifying shares
and transfers of Capital Stock required by a Manufacturer to the extent the Company does not
receive cash or Cash Equivalents for such Capital Stock); (ii) all or substantially all of the
properties and assets of any division or line of business of the Company or any Restricted
Subsidiary; or (iii) any other properties or assets of the Company or any Restricted Subsidiary
other than in the ordinary course of business. For the purposes of this definition, the term
“Asset Sale” shall not include any transfer of properties and assets (A) that is governed by the
provisions described under Article Eight hereof, (B) that is by the Company to any Restricted
Subsidiary, or by any Restricted Subsidiary to the Company or any Restricted Subsidiary in
accordance with the terms of this Indenture, (C) that is of obsolete equipment, (D) that consists
of defaulted receivables for collection or any sale, transfer or other disposition of defaulted
receivables for collection, (E) the Fair Market Value of which in the aggregate does not exceed
$5.0 million in any transaction or series of related transactions; or (F) any Restricted Payment
permitted under Section 1009 herein.

          “Average Life to Stated Maturity” means, as of the date of determination with respect to any
Indebtedness, the quotient obtained by dividing (i) the sum of the products of (a) the number of
years from the date of determination to the date or dates of each successive scheduled principal
payment of such Indebtedness multiplied by (b) the amount of each such principal payment; by (ii)
the sum of all such principal payments.

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

          “Board of Directors” means (i) with respect to a corporation, the board of directors of the corporation, (ii) with
respect to a partnership, the board of directors (or committee of such person serving a similar
function) of the general partner of the partnership, and (iii) with respect to any other Person,
the board or committee of such Person serving a similar function.

          “Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant
Secretary of the Company or any Guarantor, as the case may be, to have been duly adopted by the
Board of Directors and to be in full force and effect on the date of such certification, and
delivered to the Trustee.

          “Book-Entry Security” means any Global Securities bearing the legend specified in Section 202
evidencing all or part of a series of Securities, authenticated and delivered to the Depositary for
such series or its nominee, and registered in the name of such Depositary or nominee.

 - 4 - 

 

          “Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day
on which banking institutions or trust companies in The City of New York or the city in which the
Corporate Trust Office of the Trustee is located are authorized or obligated by law, regulation or
executive order to close.

          “Capital Lease Obligation” of any Person means any obligation of such Person and its
Subsidiaries on a Consolidated basis under any capital lease of real or personal property which,
in accordance with GAAP, is required to be recorded as a capitalized lease obligation on the books
of the lessee.

          “Capital Stock” of any Person means any and all shares, interests, participations, rights in
or other equivalents (however designated) of such Person’s capital stock or other equity interests
whether now outstanding or issued after the date of this Indenture, including limited liability
company interests, partnership interests (whether general or limited), any other interest or
participation that confers on a Person that right to receive a share of the profits and losses of,
or distributions of assets of (other than a distribution in respect of Indebtedness), the issuing
Person, including any Preferred Stock and any rights (other than debt securities convertible into
Capital Stock), warrants or options exchangeable for or convertible into such Capital Stock.

          “Cash Equivalents” means (i) marketable direct obligations, maturing not more than one year
after the date of acquisition, issued by the United States of America, or an instrumentality or
agency thereof, and guaranteed fully as to principal, premium, if any, and interest by the United
States of America, (ii) any certificate of deposit, maturing not more than one year after the date
of acquisition, issued by a commercial banking institution that is a member of the Federal Reserve
System and that has combined capital and surplus and undivided profits of not less than $500
million, whose debt has a rating, at the time as of which any investment therein is made, of “P-1”
(or higher) according to Moody’s or any successor rating agency or “A-1” (or higher) according to
S&P or any successor rating agency, (iii) commercial paper, maturing not more than 270 days after
the date of acquisition, issued by a corporation (other than an Affiliate or Subsidiary of the
Company) organized and existing under the laws of the United States of America with a rating, at
the time as of which any investment therein is made, of “P-1” (or higher) according to Moody’s or
“A-1” (or higher) according to S&P and (iv) any money market deposit accounts issued or offered by
a domestic commercial bank having capital and surplus in excess of $500 million; provided that the
short term debt of such commercial bank has a rating, at the time of Investment, of “P-1” (or
higher) according to Moody’s or “A-1” (or higher) according to S&P.

          “Change of Control” means the occurrence of any of the following events: (i) any “person” or
“group” (within the meaning of Section 13(d)(3) of the Exchange Act, other than the Company, its
subsidiaries, a Permitted Holder or the Company’s or their employee benefit plans, is or becomes
the direct or indirect “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act) of
shares of the Company’s Class A

 - 5 - 

 

Common Stock representing more than 35% of the voting power of the
Company’s Capital Stock entitled to vote generally in the election of members of the Company’s
Board of Directors (as evidenced, if we have a class of equity securities registered pursuant to
Sections 12(b) or 12(g) of the Exchange Act, by such person or group filing a Schedule TO or any
schedule, form or report under the Exchange Act disclosing that such person or group has become the
direct or indirect holder of such Class A Common Stock); (ii) the first day on which a majority of
the members of the Board of Directors of the Company are not Continuing Directors; (iii) the
adoption of a plan relating to the liquidation or dissolution of the Company; or (iv) consummation
of (A) any recapitalization, reclassification or change of the Company’s common stock (other than
changes resulting from a subdivision or combination) as a result of which the Company’s common
stock would be converted into, or exchanged for, stock, other securities, other property or assets
or (B) any consolidation, merger or binding share exchange, or any conveyance, transfer, sale,
lease or other disposition of all or substantially all of the properties or assets of the Company
and its Restricted Subsidiaries, taken as a whole, to any person, other than (1) any
transaction (x) that does not result in any reclassification, conversion, exchange or
cancellation of outstanding shares of the Company’s Capital Stock and (y) pursuant to which holders
of the Company’s Capital Stock immediately prior to the transaction have the entitlement to
exercise, directly or indirectly, 50% or more of the total voting power of all shares of Capital
Stock entitled to vote generally in elections of members of the Board of Directors of the
continuing or surviving or successor person immediately after giving effect to such issuance, or
(2) any merger, share exchange, transfer of assets or similar transaction solely for the purpose of
changing the Company’s jurisdiction of incorporation and resulting in a reclassification,
conversion or exchange of outstanding shares of common stock, if at all, solely into shares of
common stock, ordinary shares or American Depositary Shares of the surviving entity or a direct or
indirect parent of the surviving corporation, or (3) any consolidation or merger with or into any
of the Company’s Subsidiaries, so long as such merger or consolidation is not part of a plan or a
series of transactions designed to or having the effect of merging or consolidating with any other
Person.

          “Clearstream” means Clearstream Banking, société anonyme (or any successor securities clearing
agency).

          “Class A Common Stock” means the Company’s Class A common stock, par value $.01 per share, or
any successor common stock thereto.

          “Commission” means the Securities and Exchange Commission, as from time to time constituted,
created under the Exchange Act, or if at any time after the execution of this Indenture such
Commission is not existing and performing the duties now assigned to it under the Securities Act,
Exchange Act and Trust Indenture Act then the body performing such duties at such time.

 - 6 - 

 

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

          “Company” means Sonic Automotive, Inc., a corporation incorporated under the laws of Delaware,
until a successor Person shall have become such pursuant to the applicable
provisions of this Indenture, and thereafter “Company” shall mean such successor Person.

          “Company Request” or “Company Order” means a written request or order signed in the name of
the Company by any one of its Chairman of the Board, its President, its Chief Executive Officer,
its Chief Financial Officer or a Vice President (regardless of Vice Presidential designation), and
by any one of its Treasurer, an Assistant Treasurer, its Secretary or an Assistant Secretary, and
delivered to the Trustee.

          “Consolidated Fixed Charge Coverage Ratio” of any Person means, for any period, the ratio of
(a) without duplication, the sum of Consolidated Net Income (Loss), and in each case to the extent
deducted in computing Consolidated Net Income (Loss) for such period, Consolidated Interest
Expense, Consolidated Income Tax Expense and Consolidated Non-cash Charges for such period, of such
Person and its Restricted Subsidiaries on a Consolidated basis, all determined in accordance with
GAAP, less all noncash items increasing Consolidated Net Income for such period and less all cash
payments during such period relating to noncash charges that were added back to Consolidated Net
Income in determining the Consolidated Fixed Charge Coverage Ratio in any prior period to (b) the
sum of Consolidated Interest Expense for such period and cash and noncash dividends paid on any
Preferred Stock of such Person during such period, in each case after giving pro forma effect to
(i) the incurrence of the Indebtedness giving rise to the need to make such calculation and (if
applicable) the application of the net proceeds therefrom, including to refinance other
Indebtedness, as if such Indebtedness was incurred, and the application of such proceeds occurred,
on the first day of such period; (ii) the incurrence, repayment or retirement of any other
Indebtedness by the Company and its Restricted Subsidiaries since the first day of such period as
if such Indebtedness was incurred, repaid or retired at the beginning of such period (except that,
in making such computation, the amount of Indebtedness under any revolving credit facility shall be
computed based upon the average daily balance of such Indebtedness during such period); (iii) in
the case of Acquired Indebtedness or any acquisition occurring at the time of the incurrence of
such Indebtedness, the related acquisition, assuming such acquisition had been consummated on the
first day of such period; and (iv) any acquisition or disposition by the Company and its Restricted
Subsidiaries of any company or any business or any assets out of the ordinary course of business,
whether by merger, stock purchase or sale or asset purchase or sale, or any related repayment of
Indebtedness, in each case since the first day of such period, assuming such acquisition or
disposition had been consummated on the first day of such period; provided that (i) in

 - 7 - 

 

making such
computation, the Consolidated Interest Expense attributable to interest on any Indebtedness
computed on a pro forma basis and
(A) bearing a floating interest rate shall be computed as if the rate in effect on the date of
computation had been the applicable rate for the entire period (subject to any applicable Interest
Rate Agreement) and (B) which was not outstanding during the period for which the computation is
being made but which bears, at the option of such Person, a fixed or floating rate of interest,
shall be computed by applying at the option of such Person either the fixed or floating rate and
(ii) in making such computation, the Consolidated Interest Expense of such Person attributable to
interest on any Indebtedness under a revolving credit facility computed on a pro forma basis shall
be computed based upon the average daily balance of such Indebtedness during the applicable period.

          “Consolidated Income Tax Expense” of any Person means, for any period, the provision for
federal, state, local and foreign income taxes of such Person and its Consolidated Restricted
Subsidiaries for such period as determined in accordance with GAAP.

          “Consolidated Interest Expense” of any Person means, without duplication, for any period, the
sum of (a) the interest expense of such Person and its Restricted Subsidiaries for such period, on
a Consolidated basis (other than any interest expense related to any Inventory Facility),
including, without limitation, (i) amortization of debt discount, (ii) the net cash costs
associated with Interest Rate Agreements, Currency Hedging Agreements and Commodity Price
Protection Agreements (including amortization of discounts), (iii) the interest portion of any
deferred payment obligation, (iv) all commissions, discounts and other fees and charges owed with
respect to letters of credit and bankers acceptance financing and (v) accrued interest, plus (b)
(i) the interest component of the Capital Lease Obligations paid, accrued and/or scheduled to be
paid or accrued by such Person and its Restricted Subsidiaries during such period and (ii) all
capitalized interest of such Person and its Restricted Subsidiaries, plus (c) the interest expense
under any Guaranteed Debt of such Person and any Restricted Subsidiary or secured by a Lien on
assets of such Person or its Restricted Subsidiary to the extent not included under clause (a)(v)
above, whether or not paid by such Person or its Restricted Subsidiaries but excluding, in the case
of (a), (b) and (c), the amortization or write-off of deferred financing costs, any non-cash
interest expense under the Securities or refinancings thereof or derivatives related thereto and
non-cash imputed interest related to disposition accruals.

          “Consolidated Net Income (Loss)” of any Person means, for any period, the Consolidated net
income (or loss) of such Person and its Restricted Subsidiaries for such period on a Consolidated
basis as determined in accordance with GAAP, adjusted, to the extent included in calculating such
net income (or loss), by excluding, without duplication, (i) all extraordinary gains or losses net
of taxes (less all fees and expenses relating thereto), (ii) the portion of net
income (or loss) of such Person and its Restricted

 - 8 - 

 

Subsidiaries on a Consolidated basis
allocable to minority interests in unconsolidated Persons or Unrestricted Subsidiaries to the
extent that cash dividends or distributions have not actually been received by such Person or one
of its Consolidated Restricted Subsidiaries, (iii) net income (or loss) of any Person combined with
such Person or any of its Restricted Subsidiaries on a “pooling of interests” basis attributable to
any period prior to the date of combination, (iv) any gain or loss, net of taxes, realized upon the
termination of any employee pension benefit plan, (v) gains or losses, net of taxes (less all fees
and expenses relating thereto), in respect of dispositions of assets other than in the ordinary
course of business, (vi) the net income of any Restricted Subsidiary to the extent that the
declaration of dividends or similar distributions by that Restricted Subsidiary of that income is
not at the time permitted, directly or indirectly, by operation of the terms of its charter or any
agreement, instrument, judgment, decree, order, statute, rule or governmental regulation applicable
to that Restricted Subsidiary or its stockholders, (vii) any restoration to net income of any
contingency reserve, except to the extent provision for such reserve was made out of income accrued
at any time following the Issue Date, (viii) any net gain arising from the acquisition of any
securities or extinguishment, under GAAP, of any Indebtedness of such Person, (ix) any net gain or
loss arising from the cumulative effect of changes to GAAP, (x) any non-cash charge related to the
issuance of the Securities or the repurchase, redemption, or other acquisition, renewal, extension,
substitution, refunding, refinancing, replacement or retirement for value of any Indebtedness or
any cancellation of Indebtedness income, (xi) any asset impairment charge or goodwill impairment
charge, or (xii) any non-cash charge related to employee benefit or management compensation plans
of the Company or any Restricted Subsidiary or any non-cash compensation charge arising from any
grant of stock, stock options or other equity-based awards for the benefit of the members of the
Board of Directors of the Company or employees of the Company and its Restricted Subsidiaries
(other than in each case any non-cash charge to the extent that it represents an accrual of or
reserve for cash expenses in any future period or amortization of a prepaid cash expense incurred
in a prior period).

          “Consolidated Non-cash Charges” of any Person means, for any period, the aggregate
depreciation, amortization and other non-cash charges of such Person and its Subsidiaries on a
Consolidated basis for such period, as determined in accordance with GAAP (excluding any non-cash
charge which requires an accrual or reserve for cash charges for any future period).

          “Consolidated Tangible Assets” of any Person means (a) all amounts that would be shown as
assets on a Consolidated balance sheet of such Person and its Restricted Subsidiaries prepared in
accordance with GAAP, less (b) the amount thereof constituting goodwill and other intangible assets
as calculated in accordance with GAAP.

          “Consolidation” means, with respect to any Person, the consolidation of the accounts of such
Person and each of its Subsidiaries if and to the extent the accounts of

 - 9 - 

 

such Person and each of
its Subsidiaries would normally be consolidated with those of such Person, all in accordance with
GAAP. The term “Consolidated” shall have a similar meaning.

          “Continuing Directors” means, as of any date of determination, any member of the Board of
Directors of the Company who (i) was a member of the Board of Directors of the Company on the date
of this Indenture or (ii) was nominated for election or elected to the Board of Directors of the
Company with the approval of, or whose election to the Company’s Board of Directors was ratified
by, at least a majority of the Continuing Directors who were members of the Board of Directors of
the Company at the time of such nomination or election.

          “Corporate Trust Office” means the office of the Trustee or an affiliate or agent thereof at
which at any particular time the corporate trust business for the purposes of this Indenture shall
be principally administered, which office at the date of execution of this Indenture is located at
60 Livingston Avenue, St. Paul, Minnesota 55107.

          “Credit Facility” means, collectively, (i) the Amended and Restated Credit Agreement dated
January 15, 2010 among the Company, Bank of America, N.A., as administrative agent, Bank of
America, N.A., as Swing Line Lender, Bank of America, N.A., DCFS USA LLC, BMW Financial Services
NA, LLC, Toyota Motor Credit Corporation, JPMorgan Chase Bank, N.A., Wachovia Bank, National
Association, Comerica Bank and World Omni Financial Corp., as Lenders and Wells Fargo Bank,
National Association and Bank of America, N.A., as LC issuers and (ii) whether or not the credit
agreement referred to in clause (i) remains outstanding, if designated by the Company in writing to
the Trustee to be included in the definition of “Credit Facility,” one or more (A) debt facilities
or commercial paper facilities, providing for revolving credit loans, term loans, securitization
financings (including through the sale of receivables to lenders or to special purpose entities
formed to borrow from lenders against such receivables) or letters of credit, (B) debt securities,
indentures or other forms of debt financing (including convertible or exchangeable debt instruments
or bank guarantees or bankers’ acceptances), or (C) instruments or agreements evidencing any other
Indebtedness, in each case, with the same or different borrowers, guarantors or issuers or lenders
or group of lenders, and, in the case of (i) and (ii), each as from time to time amended,
supplemented, restated, amended and restated, waived, replaced (whether or not upon
termination, and whether with the original lenders or otherwise), restructured, refunded,
refinanced or otherwise modified from time to time, including any agreement or indenture extending
the maturity thereof, refinancing, replacing or otherwise restructuring all or any portion of the
Indebtedness under such agreement or agreements or indenture or indentures or any successor or
replacement agreement or agreements or indenture or indentures or increasing the amount loaned or
issued thereunder or altering the maturity thereof).

 - 10 - 

 

          “Currency Hedging Agreements” means one or more of the following agreements which shall be
entered into by one or more financial institutions: foreign exchange contracts, currency swap
agreements or other similar agreements or arrangements designed to protect against the fluctuations
in currency values.

          “Default” means any event which is, or after notice or passage of any time or both would be,
an Event of Default.

          “Depositary” means, with respect to the Securities issued in the form of one or more
Book-Entry Securities, The Depository Trust Company (“DTC”), its nominees and successors, or
another Person designated as Depositary by the Company, which must be a clearing agency registered
under the Exchange Act.

          “Designated Noncash Consideration” means the Fair Market Value of non-cash consideration
received by the Company or any of its Restricted Subsidiaries in connection with an Asset Sale that
is so designated pursuant to an Officer’s Certificate, setting forth the basis of the valuation.
The aggregate Fair Market Value of the Designated Noncash Consideration, taken together with the
Fair Market Value at the time of receipt of all other Designated Noncash Consideration received to
the date thereof and then held by the Company or a Restricted Subsidiary, may not exceed $25.0
million in the aggregate outstanding at any one time (with the Fair Market Value being measured at
the time received and without giving effect to subsequent changes in value).

          “Designated Senior Indebtedness” means (i) all Senior Indebtedness under any Inventory
Facility, any Mortgage Loans or any Credit Facility and (ii) any other Senior Indebtedness which at
the time of determination has an aggregate principal amount outstanding of at least $25.0 million
and which is specifically designated in the instrument evidencing such Senior
Indebtedness or the agreement under which such Senior Indebtedness arises as “Designated
Senior Indebtedness” by the Company.

          “Disinterested Director” means, with respect to any transaction or series of related
transactions, a member of the Board of Directors of the Company who does not have any material
direct or indirect financial interest in or with respect to such transaction or series of related
transactions.

          “8.625% Securities” means the 8.625% Senior Subordinated Notes due 2013 issued under the
Indenture, dated as of August 12, 2003, among the Company, the Trustee and the other parties
thereto, as such agreement has been and may be amended or supplemented from time to time.

          “Euroclear” means Euroclear Bank S.A./N.V., as operator of the Euroclear Clearance System (or
any successor securities clearing agency).

          “Event of Default” has the meaning specified in Section 501.

 - 11 - 

 

          “Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor
statute, and the rules and regulations promulgated by the Commission thereunder.

          “Exchange Offer” means the exchange offer by the Company and the Guarantors of Series B
Securities for Series A Securities to be effected pursuant to Section 2.1 of the Registration
Rights Agreement.

          “Exchange Offer Registration Statement” means the registration statement under the Securities
Act contemplated by Section 2.1 of the Registration Rights Agreement.

          “Fair Market Value” means, with respect to any asset or property, the sale value that would be
obtained in an arm’s-length free market transaction between an informed and willing
seller under no compulsion to sell and an informed and willing buyer under no compulsion to
buy. Fair Market Value shall be determined by the Board of Directors of the Company acting in good
faith and shall be evidenced by a Board Resolution.

          “4.25% Securities” means the 4.25% Convertible Senior Subordinated Notes due 2015 issued under
the Indenture, dated as of May 7, 2002, as supplemented by the Second Supplemental Indenture, dated
as of November 23, 2005, each of them among the Company, the Trustee and the other parties thereto,
as such agreements have been and may be amended or supplemented from time to time.

          “Generally Accepted Accounting Principles” or “GAAP” means generally accepted accounting
principles in the United States, consistently applied, which (i) for the purpose of determining
compliance with the covenants contained in this Indenture, were in effect as of the Issue Date, and
(ii) for purposes of complying with the reporting requirements contained in this Indenture, are in
effect from time to time.

          “Global Securities” means the Rule 144A Global Securities, the Regulation S Global Securities
and the Series B Global Securities to be issued as Book-Entry Securities issued to the Depositary
in accordance with Section 306.

          “Guarantee” means the guarantee by any Guarantor of the Company’s Indenture Obligations.

          “Guaranteed Debt” of any Person means, without duplication, all Indebtedness of any other
Person referred to in the definition of Indebtedness below guaranteed directly or indirectly in any
manner by such Person, or in effect guaranteed directly or indirectly by such Person through an
agreement (i) to pay or purchase such Indebtedness or to advance or supply funds for the payment or
purchase of such Indebtedness, (ii) to purchase, sell or lease (as lessee or lessor) property, or
to purchase or

 - 12 - 

 

sell services, primarily for the purpose of enabling the debtor to make payment of
such Indebtedness or to assure the holder of such Indebtedness against loss, (iii) to supply funds
to, or in any other manner invest in, the debtor (including any agreement to pay for property or
services without requiring that such property be received or such services be rendered), (iv) to
maintain working capital or equity capital of the debtor, or otherwise to maintain the net worth,
solvency or other financial condition of the debtor or to cause such debtor to achieve
certain levels of financial performance or (v) otherwise to assure a creditor against loss;
provided that the term “guarantee” shall not include endorsements for collection or deposit, in
either case in the ordinary course of business.

          “Guarantor” means any Subsidiary which is a guarantor of the Securities, including any Person
that is required to execute a guarantee of the Securities pursuant to Section 1011 or Section 1013
until a successor replaces such party pursuant to the applicable provisions of this Indenture and,
thereafter, shall mean such successor.

          “Holder” means a Person in whose name a Security is registered in the Security Register.

          “Indebtedness” means, with respect to any Person, without duplication, (i) all indebtedness of
such Person for borrowed money or for the deferred purchase price of property or services,
excluding any trade payables and other accrued current liabilities arising in the ordinary course
of business, but including, without limitation, all obligations, contingent or otherwise, of such
Person in connection with any letters of credit issued under letter of credit facilities,
acceptance facilities or other similar facilities, (ii) all obligations of such Person evidenced by
bonds, notes, debentures or other similar instruments, (iii) all indebtedness created or arising
under any conditional sale or other title retention agreement with respect to property acquired by
such Person (even if the rights and remedies of the seller or lender under such agreement in the
event of default are limited to repossession or sale of such property), but excluding trade
payables arising in the ordinary course of business, (iv) all net obligations of such Person under
Interest Rate Agreements, Currency Hedging Agreements or Commodity Price Protection Agreements of
such Person, (v) all Capital Lease Obligations of such Person, (vi) all Indebtedness referred to in
clauses (i) through (v) above of other Persons and all dividends of other Persons, the payment of
which is secured by (or for which the holder of such Indebtedness has an existing right, contingent
or otherwise, to be secured by) any Lien, upon or with respect to property (including, without
limitation, accounts and contract rights) owned by such Person, even though such Person has not
assumed or become liable for the payment of such Indebtedness, (vii) all Guaranteed Debt of such
Person, (viii) all Redeemable Capital Stock issued by such Person valued at the greater of its
voluntary or involuntary maximum fixed repurchase price plus accrued and unpaid dividends, (ix)
Preferred Stock of any Restricted Subsidiary of the Company which is not a Guarantor and (x) any
amendment, supplement, modification, deferral, renewal, extension, refunding or refinancing of any
liability of the types referred to in clauses (i)

 - 13 - 

 

through (ix) above. For purposes hereof, the
“maximum fixed repurchase price” of any
Redeemable Capital Stock which does not have a fixed repurchase price shall be calculated in
accordance with the terms of such Redeemable Capital Stock as if such Redeemable Capital Stock were
purchased on any date on which Indebtedness shall be required to be determined pursuant to this
Indenture, and if such price is based upon, or measured by, the Fair Market Value of such
Redeemable Capital Stock, such Fair Market Value to be determined in good faith by the Board of
Directors of the issuer of such Redeemable Capital Stock.

          “Indenture” means this instrument as originally executed (including all exhibits and schedules
thereto) and as it may from time to time be supplemented or amended by one or more indentures
supplemental hereto entered into pursuant to the applicable provisions hereof.

          “Indenture Obligations” means the obligations of the Company and any other obligor under this
Indenture or under the Securities, including any Guarantor, to pay principal of, premium, if any,
and interest when due and payable and any post-petition interest, and all other amounts due or to
become due under or in connection with this Indenture, the Securities and the performance of all
other obligations to the Trustee and the Holders under this Indenture and the Securities, according
to the respective terms hereof and thereof.

          “Initial Purchasers” means Banc of America Securities LLC, J.P. Morgan Securities Inc. and
Comerica Securities, Inc. (or the initial purchasers with respect to Additional Securities issued
after the date hereof).

          “Initial Securities” means Securities issued on the date hereof.

          “Interest Payment Date” means the Stated Maturity of an installment of interest on the
Securities.

          “Interest Rate Agreements” means one or more of the following agreements which shall be
entered into by one or more financial institutions: interest rate protection agreements (including,
without limitation, interest rate swaps, caps, floors, collars and similar agreements) and/or other
types of interest rate hedging agreements from time to time.

          “Inventory Facility” means (i) the Syndicated New and Used Vehicle Floorplan Credit Agreement
dated January 15, 2010 among the Company, as Used Vehicle Borrower, certain Subsidiaries of the
Company, as New Vehicle Borrowers, Bank of America, N.A., as Administrative Agent, New Vehicle
Swing Line Lender and Used Vehicle Swing Line Lender, Bank of America, N.A., as Revolving
Administrative Agent (in its capacity as collateral agent), Bank of America, N.A., JPMorgan Chase
Bank, N.A., Wachovia Bank, National Association, and Comerica Bank as Lenders, (ii)

 - 14 - 

 

any agreement
with one or more of DCFS USA LLC, Ford Motor Credit Company LLC, GMAC, Inc. (formally known as
General Motors Acceptance Corporation), BMW Financial Services NA, Inc., Toyota Motor Credit
Corporation and World Omni Financial Corp. or any other bank or asset-based lender, pursuant to
which the Company or any Restricted Subsidiary incurs Indebtedness the net proceeds of which are
used to purchase, finance or refinance vehicles, vehicle parts, vehicle supplies or (in the case of
a Credit Facility) a pre-existing credit facility, and (iii) any other agreement (including
pursuant to a commercial paper program) pursuant to which the Company or any Restricted Subsidiary
incurs Indebtedness, the net proceeds of which are used to purchase, finance or refinance vehicles
and/or vehicle parts and supplies, each as may be amended, substituted, refinanced or replaced from
time to time with another Inventory Facility.

          “Investment” means, with respect to any Person, directly or indirectly, any advance, loan
(including guarantees), or other extension of credit or capital contribution to (by means of any
transfer of cash or other property to others or any payment for property or services for the
account or use of others) (but for clarity purposes excluding trade receivables and prepaid
expenses, in each case arising in the ordinary course of business), or any purchase, acquisition or
ownership by such Person of any Capital Stock, bonds, notes, debentures or other securities issued
or owned by any other Person and all other items that would be classified as investments on a
balance sheet prepared in accordance with GAAP.

          “Issue Date” means the original issue date of the Securities under this Indenture.

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

          “Manufacturer” means a vehicle manufacturer which is a party to a dealership franchise
agreement with the Company or any Restricted Subsidiary.

          “Maturity” means, when used with respect to the Securities, the date on which the principal of
the Securities becomes due and payable as therein provided or as provided in this Indenture,
whether at Stated Maturity, the Offer Date or the Redemption Date and whether by declaration of
acceleration, Offer in respect of Excess Proceeds, Change of Control Offer in respect of a Change
of Control, call for redemption or otherwise.

 - 15 - 

 

          “Moody’s” means Moody’s Investors Service, Inc. or any successor rating agency.

          “Mortgage Loans” mean (i) Indebtedness of the Company or a Subsidiary secured solely by Liens
on real property used by a Subsidiary of the Company for the operation of a vehicle dealership,
collision repair business or a business ancillary thereto, together with related real property
rights, improvements, fixtures (other than trade fixtures), insurance payments, leases and rents
related thereto and proceeds thereof and (ii) revolving real estate acquisition and construction
lines of credit and related mortgage refinancing facilities of the Company, each as may be amended,
renewed, extended, substituted, refinanced, restructured, replaced, supplemented or otherwise
modified from time to time, including, without limitation, any successive renewals, extensions,
substitutions, refinancings, restructurings, replacements, supplementations or other modifications
of the foregoing.

          “Net Cash Proceeds” means (a) with respect to any Asset Sale by any Person, the proceeds
thereof (without duplication in respect of all Asset Sales) in the form of cash or Temporary Cash
Investments including payments in respect of deferred payment obligations when received in the form
of, or stock or other assets when disposed of for, cash or Temporary Cash Investments (except to
the extent that such obligations are financed or sold with recourse to the Company or any
Restricted Subsidiary) net of (i) brokerage commissions and other reasonable fees and expenses
(including fees and
expenses of counsel and investment bankers) related to such Asset Sale, (ii) provisions for
all taxes payable as a result of such Asset Sale, (iii) payments made to retire Indebtedness where
payment of such Indebtedness is secured by the assets or properties the subject of such Asset Sale,
(iv) amounts required to be paid to any Person (other than the Company or any Restricted
Subsidiary) owning a beneficial interest in the assets subject to the Asset Sale and (v)
appropriate amounts to be provided by the Company or any Restricted Subsidiary, as the case may be,
as a reserve, in accordance with GAAP, against any liabilities associated with such Asset Sale and
retained by the Company or any Restricted Subsidiary, as the case may be, after such Asset Sale,
including, without limitation, pension and other post-employment benefit liabilities, liabilities
related to environmental matters and liabilities under any indemnification obligations associated
with such Asset Sale, all as reflected in an Officers’ Certificate delivered to the Trustee and (b)
with respect to any issuance or sale of Capital Stock or options, warrants or rights to purchase
Capital Stock, or debt securities or Capital Stock that have been converted into or exchanged for
Capital Stock as referred to in Section 1009, the proceeds of such issuance or sale in the form of
cash or Temporary Cash Investments including payments in respect of deferred payment obligations
when received in the form of, or stock or other assets when disposed of for, cash or Temporary Cash
Investments (except to the extent that such obligations are financed or sold with recourse to the
Company or any Restricted Subsidiary), net of attorney’s fees, accountant’s fees and brokerage,
consultation,

 - 16 - 

 

underwriting and other fees and expenses actually incurred in connection with such
issuance or sale and net of taxes paid or payable as a result thereof.

          “Non-U.S. Person” means a Person that is not a “U.S. person” as defined in Regulation S under
the Securities Act.

          “Officers’ Certificate” means a certificate signed by the Chairman of the Board, the
President, the Chief Executive Officer, the Chief Financial Officer or a Vice President (regardless
of Vice Presidential designation), and by the Treasurer, an Assistant Treasurer, the Secretary or
an Assistant Secretary, of the Company or any Guarantor, as the case may be, and in form and
substance reasonably satisfactory to, and delivered to, the Trustee.

          “Opinion of Counsel” means a written opinion of counsel, who may be an employee or counsel for
the Company, any Guarantor or the Trustee, unless an Opinion of Independent Counsel is required
pursuant to the terms of this Indenture, and who shall be acceptable to the Trustee, and which
opinion shall be in form and substance reasonably satisfactory to the Trustee.

          “Opinion of Independent Counsel” means a written opinion of counsel which is issued by a
Person who is not an employee, director or consultant (other than non-employee legal counsel) of
the Company or any Guarantor and who shall be acceptable to the Trustee, and which opinion shall be
in form and substance reasonably satisfactory to the Trustee.

          “Outstanding” when used with respect to Securities means, as of the date of determination, all
Securities theretofore authenticated and delivered under this Indenture, except:

          (a) Securities theretofore canceled by the Trustee or delivered to the Trustee for
cancellation;

          (b) Securities, or portions thereof, for whose payment or redemption money in the necessary
amount has been theretofore deposited with the Trustee or any Paying Agent (other than the Company
or an Affiliate thereof) in trust or set aside and segregated in trust by the Company or an
Affiliate thereof (if the Company or an Affiliate thereof shall act as its own Paying Agent) for
the Holders of such Securities; provided that if such Securities are to be redeemed, notice of such
redemption has been duly given pursuant to this Indenture or provision therefor reasonably
satisfactory to the Trustee has been made;

          (c) Securities, to the extent provided in Sections 402 and 403, with respect to which the
Company has effected defeasance or covenant defeasance as provided in Article Four; and

 - 17 - 

 

          (d) Securities in exchange for or in lieu of which other Securities have been authenticated
and delivered pursuant to this Indenture, other than any such Securities in respect of which there
shall have been presented to the Trustee and the Company proof reasonably satisfactory to each of
them that such Securities are held by a bona fide purchaser in whose hands the Securities are valid
obligations of the Company;

provided, however, that in determining whether the Holders of the requisite principal amount of
Outstanding Securities have given any request, demand, authorization, direction, notice, consent or
waiver hereunder, Securities owned by the Company, any Guarantor, or any other obligor upon the
Securities or any Affiliate of the Company, any Guarantor or such other obligor shall be
disregarded and deemed not to be Outstanding, except that, in determining whether the Trustee shall
be protected in relying upon any such request, demand, authorization, direction, notice, consent or
waiver, only Securities which the Trustee knows to be so owned shall be so disregarded. Securities
so owned which have been pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the reasonable satisfaction of the Trustee the pledgee’s right so to act with
respect to such Securities and that the pledgee is not the Company, any Guarantor or any other
obligor upon the Securities or any Affiliate of the Company, any Guarantor or such other obligor.

          “Pari Passu Indebtedness” means (a) any Indebtedness of the Company that is pari passu in
right of payment to the Securities (including without limitation, the 8.625% Securities and the
4.25% Securities while outstanding) and (b) with respect to any Guarantee, Indebtedness which ranks
pari passu in right of payment to such Guarantee (including without limitation, the Guarantees with
respect to the 8.625% Securities while outstanding).

          “Paying Agent” means any Person (including the Company) authorized by the Company to pay the
principal of, premium, if any, or interest on, any Securities on behalf of the Company.

          “Permitted Holders” means (i) Mr. O. Bruton Smith and his guardians, conservators, committees,
or attorneys-in-fact; (ii) lineal descendants of Mr. Smith (each, a “Descendant”) and their
respective guardians, conservators, committees or attorneys-in-fact; and (iii) each “Family
Controlled Entity” (as defined herein). The term “Family Controlled Entity” means (a) any
not-for-profit corporation if at least 80% of its Board of Directors is composed of Permitted
Holders and/or Descendants; (b) any other corporation if at least 80% of the value of its
outstanding equity is owned directly or indirectly by one or more Permitted Holders; (c) any
partnership if at least 80% of the value of the partnership interests are owned directly or
indirectly by one or more Permitted Holders; (d) any limited liability or similar company if at
least 80% of the value of the company is owned directly or indirectly by one or more Permitted
Holders; and (e) any trusts created for the benefit of any of the persons listed in (i) or (ii) of
the prior sentence.

 - 18 - 

 

          “Permitted Investment” means (i) Investments in the Company, any Restricted Subsidiary or any
Person which, as a result of such Investment, (a) becomes a Restricted Subsidiary or (b) is merged
or consolidated with or into, or transfers or conveys substantially all of its assets to, or is
liquidated into, the Company or any Restricted Subsidiary; (ii) Indebtedness of the Company or a
Restricted Subsidiary described under clauses, (v), (vi) and (vii) of the definition of “Permitted
Indebtedness”; (iii) Investments in any of the Securities; (iv) Temporary Cash Investments; (v)
Investments acquired by the Company or any Restricted Subsidiary in connection with an asset sale
permitted under Section 1012
herein to the extent such Investments are non-cash proceeds as permitted under such covenant; (vi)
any Investment to the extent the consideration therefor consists of Qualified Capital Stock of the
Company or any Restricted Subsidiary; (vii) Investments representing Capital Stock or obligations
issued to the Company or any Restricted Subsidiary in the ordinary course of the good faith
settlement of claims against any other Person by reason of a composition or readjustment of debt or
a reorganization of any debtor or any Restricted Subsidiary; (viii) prepaid expenses advanced to
employees in the ordinary course of business or other loans or advances to employees in the
ordinary course of business not to exceed $1.0 million in the aggregate at any one time
outstanding; (ix) Investments in existence on the Issue Date; (x) deposits, including
interest-bearing deposits, maintained in the ordinary course of business in banks or with floor
plan lenders; endorsements for collection or deposit in the ordinary course of business by such
Person of bank drafts and similar negotiable instruments of such other Person received as payment
for ordinary course of business trade receivables; (xi) Investments acquired in exchange for the
issuance of Capital Stock (other than Redeemable Capital Stock or Preferred Stock) of the Company
or acquired with the Net Cash Proceeds received by the Company after the date of this Indenture
from the issuance and sale of Capital Stock (other than Redeemable Capital Stock or Preferred
Stock); provided that such Net Cash Proceeds are used to make such Investment within 10 days of the
receipt thereof and the amount of all such Net Cash Proceeds will be excluded from Section
1009(a)(3)(C); (xii) Investments in prepaid expenses, negotiable instruments held for collection
and lease, utility and worker’s compensation, performance and other similar deposits provided to
third parties in the ordinary course of business; (xiii) consumer loans and leases entered into,
purchased or otherwise acquired by the Company or its Subsidiaries, as lender, lessor or assignee,
as applicable, in the ordinary course of business consistent with past practices; and (xiv) in
addition to the Investments described in clauses (i) through (xiii) above, Investments in an amount
not to exceed $10.0 million in the aggregate at any one time outstanding. In connection with any
assets or property contributed or transferred to any Person as an Investment, such property and
assets shall be equal to the Fair Market Value (as determined by the Company’s Board of Directors)
at the time of Investment.

          “Permitted Junior Payment” means any payment or other distribution to the holders of the
Securities of securities of the Company or any other entity that are equity securities (other than
Preferred Stock or Redeemable Capital Stock) or are subordinated

 - 19 - 

 

in right of payment to all Senior
Indebtedness to substantially the same extent as, or to a greater extent than, the holders of the
Indenture Obligations are so subordinated.

          “Permitted Guarantor Junior Payment” means any payment or other distribution to the holders of
the Guarantees of securities of any Guarantor or any other entity that are equity securities (other
than
Preferred Stock or Redeemable Capital Stock) or are subordinated in right of payment to all
Senior Guarantor Indebtedness to substantially the same extent as, or to a greater extent than, the
holders of the Indenture Obligations are so subordinated.

          “Person” means any individual, corporation, limited liability company, partnership, joint
venture, association, joint-stock company, trust, unincorporated organization or government or any
agency or political subdivision thereof.

          “Predecessor Security” of any particular Security means every previous Security evidencing all
or a portion of the same debt as that evidenced by such particular Security; and, for the purposes
of this definition, any Security authenticated and delivered under Section 308 in exchange for a
mutilated Security or in lieu of a lost, destroyed or stolen Security shall be deemed to evidence
the same debt as the mutilated, lost, destroyed or stolen Security.

          “Preferred Stock” means, with respect to any Person, any Capital Stock of any class or classes
(however designated) which is preferred as to the payment of dividends or distributions, or as to
the distribution of assets upon any voluntary or involuntary liquidation or dissolution of such
Person, over the Capital Stock of any other class in such Person.

          “Prospectus” means 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 Series A 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 Money Obligation” means any Indebtedness secured by a Lien on assets related to the
business of the Company and any additions and accessions thereto, which are purchased or
constructed by the Company at any time after the Issue Date; provided that (i) the security
agreement or conditional sales or other title retention contract pursuant to which the Lien on such
assets is created (collectively a “Purchase Money Security Agreement”) shall be entered into within
90 days after the purchase or substantial completion of the construction of such assets and shall
at all times be confined solely to the assets so
purchased or acquired, any additions and accessions thereto and any proceeds therefrom, (ii)
at no time shall the aggregate principal amount of the

 - 20 - 

 

outstanding Indebtedness secured thereby be
increased, except in connection with the purchase of additions and accessions thereto and except in
respect of fees and other obligations in respect of such Indebtedness and (iii) (A) the aggregate
outstanding principal amount of Indebtedness secured thereby (determined on a per asset basis in
the case of any additions and accessions) shall not at the time such Purchase Money Security
Agreement is entered into exceed 100% of the purchase price or construction cost to the Company of
the assets subject thereto or (B) the Indebtedness secured thereby shall be with recourse solely to
the assets so purchased or acquired or constructed, any additions and accessions thereto and any
proceeds therefrom.

          “Qualified Capital Stock” of any Person means any and all Capital Stock of such Person other
than Redeemable Capital Stock.

          “Redeemable Capital Stock” means any Capital Stock that, either by its terms or by the terms
of any security into which it is convertible or exchangeable (at the option of the holders
thereof), is or upon the happening of an event or passage of time would be, required to be redeemed
prior to the final Stated Maturity of the principal of the Securities or is redeemable at the
option of the holder thereof at any time prior to such final Stated Maturity (other than upon a
change of control of or sale of assets by the Company in circumstances where a Holder would have
similar rights), or is convertible into or exchangeable for debt securities at any time prior to
any such Stated Maturity at the option of the holder thereof.

          “Redemption Date” when used with respect to any Security to be redeemed pursuant to any
provision in this Indenture means the date fixed for such redemption by or pursuant to this
Indenture.

          “Redemption Price” when used with respect to any Security to be redeemed pursuant to any
provision in this Indenture means the price at which it is to be redeemed pursuant to this
Indenture.

          “Registration Rights Agreement” means (i) the Registration Rights Agreement, dated as of March
12, 2010, among the Company, the Guarantors and the Initial Purchasers and (ii) with respect to
any Additional Securities issued subsequent to March 12, 2010, the registration rights
agreement entered into for the benefit of the holders of such Additional Securities, if any.

          “Registration Statement” means any registration statement of the Company and the Guarantors
which covers the sale or issuance of any of the Series A Securities (and related guarantees) or
Series B Securities (and related guarantees) pursuant to the provisions of the Registration Rights
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.

 - 21 - 

 

          “Regular Record Date” for the interest payable on any Interest Payment Date means the March 1
or September 1 (whether or not a Business Day) next preceding such Interest Payment Date.

          “Regulation S” means Regulation S under the Securities Act, as amended from time to time.

          “Regulation S Global Securities” means one or more permanent global Securities in registered
form representing the aggregate principal amount of Securities sold in reliance on Regulation S
under the Securities Act.

          “Responsible Officer” when used with respect to the Trustee means any officer or employee
assigned to the Corporate Trust Office or any agent of the Trustee appointed hereunder, including
any vice president, assistant vice president, secretary, assistant secretary, or any other officer
or assistant officer of the Trustee or any agent of the Trustee appointed hereunder to whom any
corporate trust matter is referred because of his or her knowledge of and familiarity with the
particular subject.

          “Replacement Assets” means properties and assets (other than cash or any Capital Stock or
other security) that will be used in a business of the Company or its Restricted Subsidiaries
existing on the Issue Date or in a business reasonably related thereto.

          “Restricted Subsidiary” means any Subsidiary of the Company that has not been designated by
the Board of Directors of the Company by a Board Resolution delivered to the Trustee as an
Unrestricted Subsidiary pursuant to and in compliance with Section 1018 herein.

          “Rule 144A” means Rule 144A under the Securities Act, as amended from time to time.

          “Rule 144A Global Securities” means one or more permanent global Securities in registered form
representing the aggregate principal amount of Securities sold in reliance on Rule 144A under the
Securities Act.

          “S&P” means Standard & Poor’s Rating Services, a division of The McGraw Hill Companies, Inc.,
and any successor rating agency.

          “Securities Act” means the Securities Act of 1933, as amended, or any successor statute and
the rules and regulations promulgated by the Commission thereunder.

          “Senior Guarantor Indebtedness” means the principal of, premium, if any, and interest
(including interest, to the extent allowable, accruing after the filing of a petition initiating
any proceeding under any state, federal or foreign bankruptcy law) on

 - 22 - 

 

any Indebtedness of any
Guarantor (other than as otherwise provided in this definition), whether outstanding on the Issue
Date or thereafter created, incurred or assumed, and whether at any time owing, actually or
contingent, unless, in the case of any particular Indebtedness, the instrument creating or
evidencing the same or pursuant to which the same is outstanding expressly provides that such
Indebtedness shall not be senior in right of payment to any Guarantee. Notwithstanding the
foregoing, “Senior Guarantor Indebtedness” shall (x) include any Inventory Facility, any Mortgage
Loans and any Credit Facility to the extent any Guarantor is a party thereto and (y) not include
(i) Indebtedness evidenced by the Guarantees or the Guarantees with respect to the 8.625%
Securities, (ii) Indebtedness that is subordinated or junior in right of payment to any
Indebtedness of any Guarantor, (iii) Indebtedness which when incurred and without respect to any
election under Section 1111(b) of Title 11 United States Code is without recourse to any Guarantor,
(iv) Indebtedness which is represented by Redeemable Capital Stock, (v) any liability for foreign,
federal, state, local or other taxes owed or owing by any Guarantor to the extent
such liability constitutes Indebtedness, (vi) Indebtedness of any Guarantor to a Subsidiary or
any other Affiliate of the Company or any of such Affiliate’s Subsidiaries, (vii) to the extent it
might constitute Indebtedness, amounts owing for goods, materials or services purchased in the
ordinary course of business or consisting of trade accounts payable owed or owing by such
Guarantor, and amounts owed by such Guarantor for compensation to employees or services rendered to
such Guarantor, (viii) that portion of any Indebtedness which at the time of issuance is issued in
violation of this Indenture and (ix) Indebtedness evidenced by any guarantee of any Subordinated
Indebtedness or Pari Passu Indebtedness.

          “Senior Guarantor Representative” means the agent, indenture trustee or other trustee or
representative for any Senior Guarantor Indebtedness.

          “Senior Indebtedness” means the principal of, premium, if any, and interest (including
interest, to the extent allowable, accruing after the filing of a petition initiating any
proceeding under any state, federal or foreign bankruptcy law) on any Indebtedness of the Company
(other than as otherwise provided in this definition), whether outstanding on the Issue Date or
thereafter created, incurred or assumed, and whether at any time owing, actually or contingent,
unless, in the case of any particular Indebtedness, the instrument creating or evidencing the same
or pursuant to which the same is outstanding expressly provides that such Indebtedness shall not be
senior in right of payment to the Securities. Notwithstanding the foregoing, “Senior Indebtedness”
shall (x) include any Inventory Facility and any Credit Facility to the extent the Company is a
party thereto and (y) not include (i) Indebtedness evidenced by the Securities, the 8.625%
Securities or the 4.25% Securities, (ii) Indebtedness that is subordinate or junior in right of
payment to any Indebtedness of the Company, (iii) Indebtedness which when incurred and without
respect to any election under Section 1111(b) of Title 11 United States Code is without recourse to
the Company, (iv) Indebtedness which is represented by Redeemable Capital Stock, (v) any liability
for foreign, federal, state, local or other taxes owed or owing by

 - 23 - 

 

the Company to the extent such
liability constitutes Indebtedness, (vi) Indebtedness of the Company to a Subsidiary or any other
Affiliate of the Company or any of such Affiliate’s Subsidiaries, (vii) to the extent it might
constitute Indebtedness, amounts owing for goods, materials or services purchased in the ordinary
course of business or consisting of trade accounts payable owed or owing by the Company, and
amounts owed by the Company for compensation to employees or services rendered to the Company,
(viii) that portion of any Indebtedness which at the time of issuance is issued in violation of
this Indenture and (ix) Indebtedness evidenced by any guarantee of any Subordinated Indebtedness or
Pari Passu Indebtedness.

          “Senior Representative” means the agent, indenture trustee or other trustee or representative for any Senior
Indebtedness.

          “Series B Global Securities” means one or more permanent Global Securities in registered form
representing the aggregate principal amount of Series B Securities exchanged for Series A
Securities pursuant to the Exchange Offer.

          “Shelf Registration Statement” means a “shelf” registration statement of the Company and the
Guarantors pursuant to Section 2.2 of the of the Registration Rights Agreement, which covers all of
the Registrable Securities (as defined in the Registration Rights Agreement) on an appropriate form
under Rule 415 under the Securities Act, or any similar rule that may be adopted by the Commission,
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.

          “Significant Restricted Subsidiary” means, at any particular time, any Restricted Subsidiary
that, together with the Restricted Subsidiaries of such Restricted Subsidiary (i) accounted for
more than 5% of the Consolidated revenues of the Company and its Restricted Subsidiaries for their
most recently completed fiscal year or (ii) is or are the owner(s) of more than 5% of the
Consolidated assets of the Company and its Restricted Subsidiaries as at the end of such fiscal
year, all as calculated in accordance with GAAP and as shown on the Consolidated financial
statements of the Company and its Restricted Subsidiaries for such fiscal year.

          “Special Record Date” for the payment of any Defaulted Interest means a date fixed by the
Trustee pursuant to Section 309.

          “Stated Maturity” means, when used with respect to any Indebtedness or any installment of
interest thereon, the dates specified in such Indebtedness as the fixed date on which the principal
of such Indebtedness or such installment of interest, as the case may be, is due and payable.

 - 24 - 

 

          “Subordinated Indebtedness” means Indebtedness of the Company or a Guarantor subordinated in
right of payment to the Securities or the Guarantee of such Guarantor, as the case may be.

          “Subsidiary” of a Person means (i) any corporation more than 50% of the outstanding voting
power of the Voting Stock of which is owned or controlled, directly or indirectly, by such Person
or by one or more other Subsidiaries of such Person, or by such Person and one or more other
Subsidiaries thereof, or (ii) any limited partnership of which such Person or any Subsidiary of
such Person is a general partner, or (iii) any other Person in which such Person, or one or more
other Subsidiaries of such Person, or such Person and one or more other Subsidiaries, directly or
indirectly, has more than 50% of the outstanding partnership or similar interests or has the power,
by contract or otherwise, to direct or cause the direction of the policies, management and affairs
thereof.

          “Successor Security” of any particular Security means every Security issued after, and
evidencing all or a portion of the same debt as that evidenced by, such particular Security; and,
for the purposes of this definition, any Security authenticated and delivered under Section 307 in
exchange for or in lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to
evidence the same debt as the mutilated, destroyed, lost or stolen Security.

          “Temporary Cash Investments” means (i) any evidence of Indebtedness, maturing not more than
one year after the date of acquisition, issued by the United States of America, or an
instrumentality or agency thereof, and guaranteed fully as to principal, premium, if any, and
interest by the United States of America, (ii) any certificate of deposit, maturing not more than
one year after the date of acquisition, issued by, or time deposit of, a commercial banking
institution that is a member of the Federal Reserve System and that has combined capital and
surplus and undivided profits of not less than $500 million, whose debt has a rating, at the time
as of which any investment therein is made, of “P-1” (or higher) according to Moody’s or any
successor rating agency or “A-1” (or higher) according to S&P or any successor rating agency, (iii)
commercial paper, maturing not more than one year after the date of acquisition, issued by a
corporation (other than an Affiliate or Subsidiary of the Company) organized and existing under the
laws of the United States of America with a rating, at the time as of which any investment therein
is made, of “P-1” (or higher) according to Moody’s or “A-1” (or higher) according to S&P, and (iv)
any money market deposit accounts issued or offered by a domestic commercial bank having capital
and surplus in excess of $500 million; provided that the short term debt of such commercial bank
has a rating, at the time of Investment, of “P-1” (or higher) according to Moody’s or “A-1” (or
higher) according to S&P.

          “Treasury Rate” means, as of any redemption date, the yield to maturity as of such redemption date of United
States Treasury securities with a constant maturity (as compiled and published in the most recent
Federal Reserve Statistical Release H.15 (519) that has become publicly available at least two
business days prior to the redemption date

 - 25 - 

 

(or if such Statistical Release is no longer published,
any publicly available source of similar market data)) most nearly equal to the period from the
redemption date to March 15, 2014; provided, however, that if the period from the redemption date
to March 15, 2014 is less than one year, the weekly average yield on actually traded United States
Treasury securities adjusted to a constant maturity of one year will be used.

          “Trustee” means the Person named as the “Trustee” in the first paragraph of this Indenture,
until a successor trustee shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Trustee” shall mean such successor trustee.

          “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended, or any successor
statute.

          “Unrestricted Subsidiary” means any Subsidiary of the Company (other than a Guarantor)
designated as such pursuant to and in compliance with Section 1018 herein.

          “Unrestricted Subsidiary Indebtedness” of any Unrestricted Subsidiary means Indebtedness of
such Unrestricted Subsidiary (i) as to which neither the Company nor any Restricted Subsidiary is
directly or indirectly liable (by virtue of the Company or any such Subsidiary being the primary
obligor on, guarantor of, or otherwise liable in any respect to, such Indebtedness), except
Guaranteed Debt of the Company or any Restricted Subsidiary to any Affiliate, in which case (unless
the incurrence of such Guaranteed Debt resulted in a Restricted Payment at the time of incurrence)
the Company shall be deemed to have made a Restricted Payment equal to the principal amount of any
such Indebtedness to the extent guaranteed at the time such Affiliate is designated an Unrestricted
Subsidiary and (ii) which, upon the occurrence of a default with respect thereto, does not result
in, or permit any holder of any Indebtedness of the Company or any Subsidiary to declare, a default
on such Indebtedness of the Company or any Subsidiary or cause the payment thereof to be
accelerated or payable prior to its Stated Maturity; provided that notwithstanding the foregoing
any Unrestricted Subsidiary may guarantee the Securities.

          “Voting Stock” of a Person means Capital Stock of such Person of the class or classes pursuant to which the
holders thereof have the general voting power under ordinary circumstances to elect at least a
majority of the Board of Directors of such Person (irrespective of whether or not at the time
Capital Stock of any other class or classes shall have or might have voting power by reason of the
happening of any contingency).

          “Wholly-Owned Restricted Subsidiary” means a Restricted Subsidiary all the Capital Stock of
which (other than directors’ qualifying shares and shares of Capital Stock of a Restricted
Subsidiary which a Manufacturer requires to be held by another Person and which Capital Stock,
together with any related contractual arrangements, has

 - 26 - 

 

no significant economic value with respect
to distributions of profits or losses in ordinary circumstances) is owned by the Company or another
Wholly-Owned Restricted Subsidiary (other than directors’ qualifying shares).

     Section 102. Other Definitions.

	 	 	 	 	 
	Term	 	Defined in Section	 
	“Act”
	 	 	105	 
	“Agent Members”
	 	 	306	 
	“Change of Control Offer”
	 	 	1014	 
	“Change of Control Purchase Date”
	 	 	1014	 
	“Change of Control Purchase Notice”
	 	 	1014	 
	“Change of Control Purchase Price”
	 	 	1014	 
	“covenant defeasance”
	 	 	403	 
	“Defaulted Interest”
	 	 	309	 
	“defeasance”
	 	 	402	 
	“Defeasance Redemption Date”
	 	 	404	 
	“Defeased Securities”
	 	 	401	 
	“Excess Proceeds”
	 	 	1012	 
	“incur”
	 	 	1008	 
	“Offer”
	 	 	1012	 
	“Offer Date”
	 	 	1012	 
	“Offered Price”
	 	 	1012	 
	“Pari Passu Debt Amount”
	 	 	1012	 
	“Pari Passu Offer”
	 	 	1012	 
	“Permitted Indebtedness”
	 	 	1008	 
	“Permitted Payment”
	 	 	1009	 
	“Private Placement Legend”
	 	 	202	 
	“Purchase Money Security Agreement”
	 	 	101	 
	“refinancing”
	 	 	1008	 
	“Registration Default”
	 	 	202	 
	“Required Filing Date”
	 	 	1019	 
	“Restricted Payments”
	 	 	1009	 
	“Securities”
	 	Recitals

	“Security Amount”
	 	 	1012	 
	“Security Register”
	 	 	305	 
	“Security Registrar”
	 	 	305	 
	“Series A Securities”
	 	Recitals

	“Series B Securities”
	 	Recitals

	“Special Payment Date”
	 	 	309	 
	“Surviving Entity”
	 	 	801	 
	“Surviving Guarantor Entity”
	 	 	801	 
	“U.S. Government Obligations”
	 	 	404	 

 - 27 - 

 

     Section 103. Compliance Certificates and Opinions.

          Upon any application or request by the Company to the Trustee to take any action under any
provision of this Indenture and as may be requested by the Trustee, the Company and any Guarantor
(if applicable) and any other obligor on the Securities (if applicable) shall furnish to the
Trustee an Officers’ Certificate in a form and substance reasonably acceptable to the Trustee
stating that all conditions precedent, if any, provided for in this Indenture (including any
covenant compliance with which constitutes a condition precedent) relating to the proposed action
have been complied with, and an Opinion of Counsel in a form and substance reasonably acceptable to
the Trustee stating that in the opinion of such counsel all such conditions precedent, if any, have
been complied with, except that, in the case of any such application or request as to which the
furnishing of such certificates or opinions is specifically required by any provision of this
Indenture relating to such particular application or request, no additional certificate or opinion
need be furnished.

          Every certificate or Opinion of Counsel with respect to compliance with a condition or
covenant provided for in this Indenture shall include:

          (a) a statement that each individual signing such certificate or individual or firm signing
such opinion has read and understands such covenant or condition and the definitions herein
relating thereto;

          (b) a brief statement as to the nature and scope of the examination or investigation upon
which the statements or opinions contained in such certificate or opinion are based;

          (c) a statement that, in the opinion of each such individual or such firm, he or it has made
such examination or investigation as is necessary to enable him or it to express an informed
opinion as to whether or not such covenant or condition has been complied with; and

          (d) a statement as to whether, in the opinion of each such individual or such firm, such
condition or covenant has been complied with.

     Section 104. Form of Documents Delivered to Trustee.

          In any case where several matters are required to be certified by, or covered by an opinion
of, any specified Person, it is not necessary that all such matters be certified by, or covered by
the opinion of, only one such Person, or that they be so certified or covered by only one document,
but one such Person may certify or give an

 - 28 - 

 

opinion with respect to some matters and one or more
other such Persons as to other matters, and any such Person may certify or give an opinion as to
such matters in one or several documents.

          Any certificate of an officer of the Company, any Guarantor or other obligor on the Securities
may be based, insofar as it relates to legal matters, upon a certificate or opinion of, or
representations by, counsel, unless such officer has actual knowledge that the certificate or
opinion or representations with respect to the matters upon which his certificate or opinion is
based are erroneous. Any such certificate or opinion may be based, insofar as it relates to
factual matters, upon a certificate or opinion of, or representations by, an officer or officers of
the Company, any Guarantor or other obligor on the Securities stating that the information with
respect to such factual matters is in the possession of the Company, any Guarantor or other obligor
on the Securities, unless such officer or counsel has actual knowledge that the certificate or
opinion or representations with respect to such matters are erroneous. Opinions of Counsel
required to be delivered to the Trustee may have qualifications customary for opinions of the type
required and counsel delivering such Opinions of Counsel may rely on certificates of the Company or
government or other officials customary for opinions of the type required, including certificates
certifying as to matters of fact, including that various financial covenants have been complied
with.

          Any certificate or opinion of an officer of the Company, any Guarantor or other obligor on the
Securities may be based, insofar as it relates to accounting matters, upon a certificate or opinion
of, or representations by, an accountant or firm of accountants in the employ of the Company,
unless such officer has actual knowledge that the certificate or opinion or representations with
respect to the accounting matters upon which his certificate or opinion may be based are erroneous.
Any certificate or opinion of any independent firm of public accountants filed with the Trustee
shall contain a statement that such firm is independent with respect to the Company.

          Where any Person is required to make, give or execute two or more applications, requests,
consents, certificates, statements, opinions or other instruments under this Indenture, they may,
but need not, be consolidated and form one instrument.

     Section 105. Acts of Holders.

          (a) Any request, demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by Holders may be embodied in and evidenced by one
or more instruments of substantially similar tenor signed by such Holders in person or by an agent
duly appointed in writing and may be given or obtained in connection with a purchase of, or tender
offer or exchange offer for, outstanding Securities; and, except as herein otherwise expressly
provided, such action

 - 29 - 

 

shall become effective when such instrument or instruments are delivered to
the Trustee and, where it is hereby expressly required, to the Company. Such instrument or
instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred
to as the “Act” of the Holders signing such instrument or instruments. Proof of execution of any
such instrument or of a writing appointing any such agent shall be sufficient for any purpose of
this Indenture and conclusive in favor of the Trustee and the Company, if made in the manner
provided in this Section 105.

          (b) The ownership of Securities shall be proved by the Security Register.

          (c) Any request, demand, authorization, direction, notice, consent, waiver or other Act by the
Holder of any Security shall bind every future Holder of the same Security or the Holder of every
Security issued upon the transfer thereof or in exchange therefor or in lieu thereof, in respect of
anything done, suffered or omitted to be done by the Trustee, any Paying Agent or the Company, any
Guarantor or any other obligor of the Securities in reliance thereon, whether or not notation of
such action is made upon such Security.

          (d) The fact and date of the execution by any Person of any such instrument or writing may be
proved by the affidavit of a witness of such execution or by a certificate of a notary public or
other officer authorized by law to take acknowledgments of deeds, certifying that the individual
signing such instrument or writing acknowledged to him the execution thereof. Where such execution
is by a signer acting in a capacity other than his individual capacity, such certificate or
affidavit shall also constitute sufficient proof of his authority. The fact and date of the
execution of any such instrument or writing, or the authority of the Person executing the same, may
also be proved in any other manner which the Trustee deems sufficient.

          (e) If the Company shall solicit from the Holders any request, demand, authorization,
direction, notice, consent, waiver or other Act, the Company may, at its option, by or pursuant to
a Board Resolution, fix in advance a record date for the determination of such Holders entitled to
give such request, demand, authorization, direction, notice, consent, waiver or other Act, but the
Company shall have no obligation
to do so. Notwithstanding Trust Indenture Act Section 316(c), any such record date shall be
the record date specified in or pursuant to such Board Resolution, which shall be a date not more
than 30 days prior to the first solicitation of Holders generally in connection therewith and no
later than the date such first solicitation is completed.

          If such a record date is fixed, such request, demand, authorization, direction, notice,
consent, waiver or other Act may be given before or after such record date, but only the Holders of
record at the close of business on such record date shall be deemed to be Holders for purposes of
determining whether Holders of the requisite proportion of Securities then Outstanding have
authorized or agreed or consented to such

 - 30 - 

 

request, demand, authorization, direction, notice,
consent, waiver or other Act, and for this purpose the Securities then Outstanding shall be
computed as of such record date; provided that no such request, demand, authorization, direction,
notice, consent, waiver or other Act by the Holders on such record date shall be deemed effective
unless it shall become effective pursuant to the provisions of this Indenture not later than six
months after such record date.

          (f) For purposes of this Indenture, any action by the Holders which may be taken in writing
may be taken by electronic means or as otherwise reasonably acceptable to the Trustee.

     Section 106. Notices, etc., to the Trustee, the Company and any Guarantor.

          Any request, demand, authorization, direction, notice, consent, waiver or Act of Holders or
other document provided or permitted by this Indenture to be made upon, given or furnished to, or
filed with:

          (a) the Trustee by any Holder or by the Company or any Guarantor or any other obligor on the
Securities shall be sufficient for every purpose (except as provided in Section 501(c)) hereunder
if in writing and mailed, first-class postage prepaid, or delivered by recognized overnight
courier, to or with the Trustee at its Corporate Trust Office, or at any other address previously
furnished in writing to the Holders or the Company, any Guarantor or any other obligor on the
Securities by the Trustee; or

          (b) the Company or any Guarantor by the Trustee or any Holder shall be sufficient for every
purpose (except as provided in Section 501(c)) hereunder if in writing and mailed, first-class
postage prepaid, or delivered by recognized overnight courier, to the Company or such Guarantor
addressed to it c/o Sonic Automotive, Inc., 6415 Idlewild Road, Suite 109, Charlotte, North
Carolina 28212, Attention: Chief Financial Officer or at any other address previously furnished in
writing to the Trustee by the Company or such Guarantor.

     Section 107. Notice to Holders; Waiver.

          Where this Indenture provides for notice to Holders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, or delivered by recognized overnight courier, to each Holder affected
by such event, at its address as it appears in the Security Register, not later than the latest
date, and not earlier than the earliest date, prescribed for the giving of such notice. In any
case where notice to Holders is given by mail, neither the failure to mail such notice, nor any
defect in any notice so mailed, to any particular Holder shall affect the sufficiency of such
notice with respect to other Holders. Any notice when mailed to a Holder in the aforesaid manner
shall be conclusively deemed to

 - 31 - 

 

have been received by such Holder whether or not actually received
by such Holder. Where this Indenture provides for notice in any manner, such notice may be waived
in writing by the Person entitled to receive such notice, either before or after the event, and
such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed
with the Trustee, but such filing shall not be a condition precedent to the validity of any action
taken in reliance upon such waiver.

          In case by reason of the suspension of regular mail service or by reason of any other cause,
it shall be impracticable to mail notice of any event as required by any provision of this
Indenture, then any method of giving such notice as shall be reasonably satisfactory to the Trustee
shall be deemed to be a sufficient giving of such notice.

     Section 108. Conflict with Trust Indenture Act.

          If any provision hereof limits, qualifies or conflicts with any provision of the Trust
Indenture Act or another provision which is required or deemed to be included in this Indenture by
any of the provisions of the Trust Indenture Act, the provision or requirement of the Trust
Indenture Act shall control. If any provision of this Indenture modifies or excludes any provision
of the Trust Indenture Act that may be so modified or excluded, the latter provision shall be
deemed to apply to this Indenture as so modified or to be excluded, as the case may be.

     Section 109. Effect of Headings and Table of Contents.

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

     Section 110. Successors and Assigns.

          All covenants and agreements in this Indenture by the Company and the Guarantors shall bind
their respective successors and assigns, whether so expressed or not.

     Section 111. Separability Clause.

          In case any provision in this Indenture or in the Securities or Guarantees shall be invalid,
illegal or unenforceable, the validity, legality and enforceability of the remaining provisions
shall not in any way be affected or impaired thereby.

     Section 112. Benefits of Indenture.

          Nothing in this Indenture or in the Securities or Guarantees, express or implied, shall give
to any Person (other than the parties hereto and their successors hereunder, any Paying Agent and
the Holders) any benefit or any legal or equitable right, remedy or claim under this Indenture.

 - 32 - 

 

     SECTION 113. GOVERNING LAW.

          THIS INDENTURE, THE SECURITIES AND THE GUARANTEES SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE CONFLICTS OF LAWS
PRINCIPLES THEREOF.

     Section 114. Legal Holidays.

          In any case where any Interest Payment Date, Redemption Date, Maturity or Stated Maturity of
any Security shall not be a Business Day, then (notwithstanding any other provision of this
Indenture or of the Securities) payment of interest or principal or premium, if any, need not be
made on such date, but may be made on the next succeeding Business Day with the same force and
effect as if made on such Interest Payment Date or Redemption Date, or at the Maturity or Stated
Maturity and no interest shall accrue with respect to such payment for the period from and after
such Interest Payment Date, Redemption Date, Maturity or Stated Maturity, as the case may be, to
the next succeeding Business Day.

     Section 115. Independence of Covenants.

          All covenants and agreements in this Indenture shall be given independent effect so that if a
particular action or condition is not permitted by any such covenants, the fact that it would be
permitted by an exception to, or be otherwise within the limitations of, another covenant shall not
avoid the occurrence of a Default or an Event of Default if such action is taken or condition
exists.

     Section 116. Schedules and Exhibits.

          All schedules and exhibits attached hereto are by this reference made a part hereof with the
same effect as if herein set forth in full.

     Section 117. Counterparts.

          This Indenture may be executed in any number of counterparts, each of which shall be deemed an
original; but all such counterparts shall together constitute but one and the same instrument.

     Section 118. No Personal Liability of Directors, Officers, Employees, Members, Partners
and Stockholders.

          No director, officer, employee, member, partner or stockholder of the Company or any
Guarantor, as such, will have any liability for any obligations of the Company or the Guarantors
under the Securities, this Indenture, the Guarantees, or for any claim based on, in respect of, or
by reason of, such obligations or their creation.

 - 33 - 

 

Each Holder of Securities by accepting a
Security waives and releases all such liability. The waiver and release are part of the
consideration for issuance of the Securities. The waiver may not be effective to waive liabilities
under the federal securities law.

ARTICLE TWO

SECURITY FORMS

     Section 201. Forms Generally.

          The Securities, the Guarantees and the Trustee’s certificate of authentication thereon shall
be in substantially the forms set forth in this Article Two, with such appropriate insertions,
omissions, substitutions and other variations as are required or permitted hereby and may have such
letters, numbers or other marks of identification and such legends or endorsements placed thereon
as may be required to comply with the rules of any securities exchange, any organizational document
or governing instrument or applicable law or as may, consistently herewith, be determined by the
officers executing such Securities and Guarantees, as evidenced by their execution of the
Securities and Guarantees. Any portion of the text of any Security may be set forth on the reverse
thereof, with an appropriate reference thereto on the face of the Security.

          The definitive Securities shall be printed, lithographed or engraved or produced by any
combination of these methods or may be produced in any other manner permitted by the rules of any
securities exchange on which the Securities may be listed, all as determined by the officers
executing such Securities, as evidenced by their execution of such Securities.

          Series A Securities offered and sold in reliance on Rule 144A shall be issued initially in the
form of one or more Rule 144A Global Securities, substantially in the form set forth in Section
202, deposited upon issuance with the Trustee, as custodian for the Depositary, registered in the
name of the Depositary, or its nominee, in each case for credit to an account of a direct or
indirect participant of the Depositary, duly executed
by the Company and authenticated by the Trustee as hereinafter provided. The aggregate
principal amount of the Rule 144A Global Securities may from time to time be increased or decreased
by adjustments made on the records of the Trustee, as custodian for the Depositary or its nominee,
as hereinafter provided.

          Series A Securities offered and sold in reliance on Regulation S shall be issued in the form
of one or more Regulation S Global Securities, substantially in the form set forth in Section 202,
deposited upon issuance with the Trustee, as custodian for the Depositary, registered in the name
of the Depositary, or its nominee in each case for credit by the Depositary to an account of a
direct or indirect participant of the Depositary, duly executed by the Company and authenticated by
the Trustee as hereinafter provided;

 - 34 - 

 

provided, however, that upon such deposit through and
including the 40th day after the later of the commencement of the Offering and the original issue
date of the Securities (such period through and including such 40th day, the “Restricted Period”),
all such Securities shall be credited to or through accounts maintained at the Depositary by or on
behalf of Euroclear or Clearstream unless exchanged for interests in the Rule 144A Global
Securities in accordance with the transfer and certification requirements described below. The
aggregate principal amount of the Regulation S Global Securities may from time to time be increased
or decreased by adjustments made on the records of the Trustee, as custodian for the Depositary or
its nominee, as hereinafter provided.

          Series B Securities exchanged for Series A Securities shall be issued initially in the form of
one or more Series B Global Securities, substantially in the form set forth in Section 202,
deposited upon issuance with the Trustee, as custodian for the Depositary, registered in the name
of the Depositary or its nominee, in each case for credit to an account of a direct or indirect
participant of the Depositary, duly executed by the Company and authenticated by the Trustee as
hereinafter provided. The aggregate principal amount of the Series B Global Securities may from
time to time be increased or decreased by adjustments made on the records of the Trustee, as
custodian for the Depositary or its nominee, as hereinafter provided.

          With respect to any Additional Securities issued subsequent to the date of this Indenture
notwithstanding anything else herein, (1) all references in Section 202 herein and elsewhere in
this Indenture to a Registration Rights Agreement shall be to the registration rights agreement
entered into with respect to such Additional Securities, (2) any references in Section 202 and
elsewhere in this Indenture to the Exchange Offer, Exchange Offer Registration Statement, Shelf
Registration Statement, Initial Purchasers, Registration Default, and any other term related
thereto shall be to such terms as they are defined in such registration rights agreement entered
into with respect to such Additional Securities, (3) all time periods described in the Securities
with respect to the registration of such Additional Securities shall be as provided in such
Registration Rights Agreement entered into with respect to such Additional Securities, (4) any
penalty interest may, if set forth in the Registration Rights Agreement, be paid to the holders of
the Additional
Securities immediately prior to the making or the consummation of the Exchange Offer
regardless of any other provisions regarding record dates herein and (5) all provisions of this
Indenture shall be construed and interpreted to permit the issuance of such Additional Securities
and to allow such Additional Securities to become fungible and interchangeable with the Series A
Securities originally issued under this Indenture.

     Section 202. Form of Face of Security.

          (a) The form of the face of any Series A Securities authenticated and delivered hereunder
shall be substantially as follows:

 - 35 - 

 

          Unless and until (i) a Series A Security is sold under an effective Registration Statement or
(ii) a Series A Security is exchanged for a Series B Security in connection with an effective
Registration Statement, in each case pursuant to the Registration Rights Agreement, then such
Security shall bear the legend set forth below (the “Private Placement Legend”) on the face
thereof:

THE SECURITY (OR ITS PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN
A TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THE SECURITY
EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE
ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH
PURCHASER OF THE SECURITY EVIDENCED HEREBY IS HEREBY NOTIFIED THAT THE
SELLER MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF
THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. THE HOLDER OF THE
SECURITY EVIDENCED HEREBY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A)
SUCH SECURITY MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (1)(a)
INSIDE THE UNITED STATES TO A PERSON WHO THE SELLER REASONABLY BELIEVES IS A
QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES
ACT) PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A
UNDER THE SECURITIES ACT, (b) OUTSIDE THE UNITED STATES TO A FOREIGN PERSON
IN A TRANSACTION MEETING THE REQUIREMENTS OF
RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (c) PURSUANT
TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE
144 THEREUNDER (IF APPLICABLE) OR (d) IN ACCORDANCE WITH ANOTHER EXEMPTION
FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND BASED UPON AN
OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY IF THE COMPANY SO REQUESTS),
(2) TO THE COMPANY OR (3) PURSUANT TO AN EFFECTIVE REGISTRATION

 - 36 - 

 

STATEMENT
AND, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY
STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION AND (B) THE
HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER
OF THE SECURITY EVIDENCED HEREBY OF THE RESALE RESTRICTIONS SET FORTH IN
CLAUSE (A) ABOVE. NO REPRESENTATION CAN BE MADE AS TO THE AVAILABILITY OF
THE EXEMPTION PROVIDED BY RULE 144 FOR RESALE OF THE SECURITY EVIDENCED
HEREBY.

[Legend if Security is a Global Security]

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE OF A DEPOSITARY OR A SUCCESSOR DEPOSITARY. TRANSFERS OF THIS GLOBAL
SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF CEDE & CO. OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE
AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO
TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN SECTIONS 306
AND 307 OF THE INDENTURE. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR
ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT AND ANY SUCH CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE
OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE

 - 37 - 

 

REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THE OBLIGATIONS EVIDENCED HEREBY ARE SUBORDINATE IN THE MANNER AND TO THE
EXTENT SET FORTH IN ARTICLE FOURTEEN OF THE INDENTURE TO THE OBLIGATIONS
(INCLUDING INTEREST) OWED BY THE COMPANY AND CERTAIN OF ITS SUBSIDIARIES TO
ALL SENIOR INDEBTEDNESS; THE GUARANTEE OBLIGATIONS EVIDENCED HEREBY ARE
SUBORDINATE IN THE MANNER AND TO THE EXTENT SET FORTH IN ARTICLE THIRTEEN OF
THE INDENTURE TO THE OBLIGATIONS (INCLUDING INTEREST) OWED BY THE GUARANTORS
TO ALL SENIOR GUARANTOR INDEBTEDNESS; AND EACH HOLDER HEREOF BY ITS
ACCEPTANCE HEREOF, SHALL BE BOUND BY THE PROVISIONS OF THE SUBORDINATION AS
SET FORTH IN SAID ARTICLE THIRTEEN AND ARTICLE FOURTEEN OF THE INDENTURE.”

 - 38 - 

 

SONIC AUTOMOTIVE, INC.

 

9.0% SENIOR SUBORDINATED NOTE DUE 2018 SERIES A

	 	 	 
	 

	 	CUSIP NO.
	 
	 	 
	No. ___

	 	$                    

          Sonic Automotive, Inc., a Delaware corporation (herein called the “Company,” which term
includes any successor Person under the Indenture hereinafter referred to), for value received,
hereby promises to pay to                      or registered assigns, the principal sum of                      United
States dollars, or such other principal amount as may be set forth on the Security Register on
Appendix A hereto in accordance with the Indenture, on March 15, 2018, at the office or agency of
the Company referred to below, and to pay interest thereon from March 12, 2010, or from the most
recent Interest Payment Date to which interest has been paid or duly provided for, semiannually on
March 15 and September 15 in each year, commencing September 15, 2010 at the rate of 9.000% per
annum, subject to adjustments as described in the second following paragraph, in United States
dollars, until the principal hereof is paid or duly provided for. Interest shall be computed on
the basis of a 360-day year comprised of twelve 30-day months.

          The Holder of this Series A Security is entitled to the benefits of a Registration Rights
Agreement, pursuant to which, subject to the terms and conditions thereof, the Company and the
Guarantors are obligated to consummate the Exchange Offer pursuant to which the Holder of this
Security (and related Guarantees) shall have the right to exchange this Security (and related
Guarantees) for 9.0% Senior Subordinated Notes due 2018, Series B and related Guarantees (herein
called the “Series B Securities”) in like principal amount as provided therein. The Series A
Securities and the Series B Securities are together (including related Guarantees) referred to as
the “Securities.” The Series A Securities rank pari passu in right of payment with the Series B
Securities and will be treated as one class with the Series B Securities.

          In the event that (a) the Exchange Offer Registration Statement is not filed with the
Commission within the time prescribed under the Registration Rights Agreement following the date of
original issue of the Series A Securities, (b) the Exchange Offer Registration Statement has not
been declared effective within the time prescribed under the Registration Rights Agreement
following the date of original issue of the Series A Securities, (c) the Exchange Offer is not
consummated or a Shelf Registration Statement is not declared effective, in either case, within the
time prescribed under the Registration Rights Agreement following the date of original issue of the
Series A Securities or (d) the

 - 39 - 

 

Shelf Registration Statement is declared effective but shall thereafter become unusable for
more than the time allowed under the Registration Rights Agreement (each such event referred to in
clauses (a) through (d) above, a “Registration Default”), the interest rate borne by the Series A
Securities shall be increased by the amount stated in the Registration Rights Agreement. The Shelf
Registration Statement will be required to remain effective until the time stated under the
Registration Rights Agreement. Following the cure of all Registration Defaults, the accrual of
additional interest will cease and the interest rate will revert to the original rate.

          The interest so payable, and punctually paid or duly provided for, on any Interest Payment
Date will, as provided in such Indenture, be paid to the Person in whose name this Security (or any
Predecessor Securities) is registered at the close of business on the Regular Record Date for such
interest, which shall be the March 1 or September 1 (whether or not a Business Day), as the case
may be, next preceding such Interest Payment Date. Any such interest not so punctually paid, or
duly provided for, and interest on such defaulted interest at the interest rate borne by the Series
A Securities, to the extent lawful, shall forthwith cease to be payable to the Holder on such
Regular Record Date, and may either be paid to the Person in whose name this Security (or any
Predecessor Securities) is registered at the close of business on a Special Record Date for the
payment of such defaulted interest to be fixed by the Trustee, notice whereof shall be given to
Holders of Securities not less than 10 days prior to such Special Record Date, or be paid at any
time in any other lawful manner not inconsistent with the requirements of any securities exchange
on which the Securities may be listed, and upon such notice as may be required by this Indenture
not inconsistent with the requirements of such exchange, all as more fully provided in this
Indenture.

          Payment of the principal of, premium, if any, and interest on, this Security, and exchange or
transfer of the Security, will be made at the office or agency of the Company in The City of New
York maintained for that purpose (which initially will be a corporate trust office of the Trustee
located at 100 Wall Street, Suite 1600, New York, New York, 10005), or at such other office or
agency as may be maintained for such purpose, in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and private debts;
provided, however, that payment of interest may be made at the option of the Company by check
mailed to the address of the Person entitled thereto as such address shall appear on the Security
Register.

          Reference is hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

          This Security is entitled to the benefits of the Guarantees by the Guarantors of the punctual
payment when due and performance of the Indenture Obligations made in favor of the Trustee for the
benefit of the Holders. Reference is made to Article Thirteen

 - 40 - 

 

of the Indenture for a statement of the respective rights, limitations of rights, duties and
obligations under the Guarantees of the Guarantors.

          Unless the certificate of authentication hereon has been duly executed by the Trustee referred
to on the reverse hereof or by the authenticating agent appointed as provided in the Indenture by
manual signature of an authorized signer, this Security shall not be entitled to any benefit under
the Indenture, or be valid or obligatory for any purpose.

          IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed by the manual
or facsimile signature of its authorized officers.

	 	 	 	 	 
	 	Sonic Automotive, Inc.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 - 41 - 

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

          This is one of the 9.0% Senior Subordinated Notes due 2018, Series A referred to in the
within-mentioned Indenture.

	 	 	 	 	 
	 	U.S Bank National Association,

as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signer 	 
	 	 	 	 
	 

Dated:

OPTION OF HOLDER TO ELECT PURCHASE

          If you wish to have this Security purchased by the Company pursuant to Section 1012 or Section
1014, as applicable, of the Indenture, check the Box: [     ].

          If you wish to have a portion of this Security purchased by the Company pursuant to Section
1012 or Section 1014 as applicable, of the Indenture, state the amount (in original principal
amount):

$                     

	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	Your Signature:	 	 	 	 
	 

	 	 

	 	 	 	 

	 	 

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

Signature Guarantee:                                                             

 - 42 - 

 

[Signature must be guaranteed by an eligible Guarantor Institution (banks, stock brokers, savings
and loan associations and credit unions) with membership in an approved guarantee medallion program
pursuant to Securities and Exchange Commission Rule 17Ad-15]

          (b) The form of the face of any Series B Securities authenticated and delivered hereunder
shall be substantially as follows:

          [Legend if Security is a Global Security]

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE OF A DEPOSITARY OR A SUCCESSOR DEPOSITARY. TRANSFERS OF THIS GLOBAL
SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF CEDE & CO. OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE
AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO
TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN SECTIONS 306
AND 307 OF THE INDENTURE.

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITARY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT AND ANY SUCH
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT
IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THE OBLIGATIONS EVIDENCED HEREBY ARE SUBORDINATE IN THE MANNER AND TO THE
EXTENT SET FORTH IN ARTICLE FOURTEEN OF THE

 - 43 - 

 

INDENTURE TO THE OBLIGATIONS (INCLUDING INTEREST) OWED BY THE COMPANY AND
CERTAIN OF ITS SUBSIDIARIES TO ALL SENIOR INDEBTEDNESS; THE GUARANTEE
OBLIGATIONS EVIDENCED HEREBY ARE SUBORDINATE IN THE MANNER AND TO THE EXTENT
SET FORTH IN ARTICLE THIRTEEN OF THE INDENTURE TO THE OBLIGATIONS (INCLUDING
INTEREST) OWED BY THE GUARANTORS TO ALL SENIOR GUARANTOR INDEBTEDNESS; THE
GUARANTEE OBLIGATIONS EVIDENCED HEREBY ARE SUBORDINATE IN THE MANNER AND TO
THE EXTENT SET FORTH IN ARTICLE THIRTEEN OF THE INDENTURE TO THE OBLIGATIONS
(INCLUDING INTEREST) OWED BY THE GUARANTORS TO ALL SENIOR GUARANTOR
INDEBTEDNESS; AND EACH HOLDER HEREOF BY ITS ACCEPTANCE HEREOF, SHALL BE
BOUND BY THE PROVISIONS OF THE SUBORDINATION AS SET FORTH IN SAID ARTICLE
THIRTEEN AND ARTICLE FOURTEEN OF THE INDENTURE.”

 - 44 - 

 

Sonic Automotive, Inc.

 

9.0% SENIOR SUBORDINATED NOTE DUE 2018, SERIES B

	 	 	 
	 

	 	CUSIP NO.
	 
	 	 
	No. ___

	 	$                     

          Sonic Automotive, Inc., a Delaware corporation (herein called the “Company,” which term
includes any successor Person under the Indenture hereinafter referred to), for value received,
hereby promises to pay to  or registered assigns, the principal sum of
                     United States dollars on March 15, 2018, at the office or agency of the Company
referred to below, and to pay interest thereon from March 12, 2010, or from the most recent
Interest Payment Date to which interest has been paid or duly provided for, semiannually on March
15 and September 15 in each year, commencing September 15, 2010 at the rate of 9.000% per annum, in
United States dollars, until the principal hereof is paid or duly provided for; provided that to
the extent interest has not been paid or duly provided for with respect to the Series A Security
exchanged for this Series B Security, interest on this Series B Security shall accrue from the most
recent Interest Payment Date to which interest on the Series A Security which was exchanged for
this Series B Security has been paid or duly provided for, or if no interest has been paid on the
Series A Security, it shall accrue interest from March 12, 2010 with respect to Series A Securities
exchanged for Series B Securities. Interest shall be computed on the basis of a 360-day year
comprised of twelve 30-day months.

          This Series B Security was issued pursuant to the Exchange Offer pursuant to which the 9.0%
Senior Subordinated Notes due 2018, Series A and related Guarantees (herein called the “Series A
Securities”) in like principal amount were exchanged for the Series B Securities and related
Guarantees. The Series B Securities rank pari passu in right of payment with the Series A
Securities and will be treated as one class with the Series A Securities.

          In addition, for any period in which a Series A Security exchanged for this Series B Security
was outstanding, in the event that (a) the Exchange Offer Registration Statement is not filed with
the Commission within the time prescribed under the Registration Rights Agreement following the
date of original issue of the Series A Securities, (b) the Exchange Offer Registration Statement
has not been declared effective within the time prescribed under the Registration Rights Agreement
following the date of original issue of the Series A Securities, (c) the Exchange Offer is not
consummated or a Shelf Registration Statement is not declared effective, in either case, within the
time prescribed under the Registration Rights Agreement following the date of original issue

 - 45 - 

 

of the Series A Securities or (d) the Shelf Registration Statement is declared effective but
shall thereafter become unusable for more than the time allowed under the Registration Rights
Agreement (each such event referred to in clauses (a) through (d) above, a “Registration Default”),
the interest rate borne by the Series A Securities shall be increased by the amount stated under
the Registration Rights Agreement. The Shelf Registration Statement will be required to remain
effective until the time stated under the Registration Rights Agreement. Following the cure of all
Registration Defaults, the accrual of additional interest will cease and the interest rate will
revert to the original rate; provided that, to the extent interest at such increased interest rate
has been paid or duly provided for with respect to the Series A Security, interest at such
increased interest rate, if any, on this Series B Security, if not previously paid on the Series A
Security, shall accrue from the most recent Interest Payment Date to which such interest on the
Series A Security has been paid or duly provided for; provided, however, that, if after any such
reduction in interest rate, a different event specified in clause (a), (b), (c) or (d) above
occurs, the interest rate shall again be increased pursuant to the foregoing provisions.

          The interest so payable, and punctually paid or duly provided for, on any Interest Payment
Date will, as provided in such Indenture, be paid to the Person in whose name this Security (or any
Predecessor Securities) is registered at the close of business on the Regular Record Date for such
interest, which shall be the March 1 or September 1 (whether or not a Business Day), as the case
may be, next preceding such Interest Payment Date. Any such interest not so punctually paid, or
duly provided for, and interest on such defaulted interest at the interest rate borne by the Series
B Securities, to the extent lawful, shall forthwith cease to be payable to the Holder on such
Regular Record Date, and may either be paid to the Person in whose name this Security (or any
Predecessor Securities) is registered at the close of business on a Special Record Date for the
payment of such defaulted interest to be fixed by the Trustee, notice whereof shall be given to
Holders of Securities not less than 10 days prior to such Special Record Date, or be paid at any
time in any other lawful manner not inconsistent with the requirements of any securities exchange
on which the Securities may be listed, and upon such notice as may be required by such exchange,
all as more fully provided in this Indenture.

          Payment of the principal of, premium, if any, and interest on, this Security, and exchange or
transfer of the Security, will be made at the office or agency of the Company in The City of New
York maintained for such purpose (which initially will be a corporate trust office of the Trustee
located at 100 Wall Street, Suite 1600, New York, New York, 10005, or at such other office or
agency as may be maintained for such purpose, in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and private debts;
provided, however, that payment of interest may be made at the option of the Company by check
mailed to the address of the Person entitled thereto as such address shall appear on the Security
Register.

 - 46 - 

 

          Reference is hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

          This Security is entitled to the benefits of the Guarantees by the Guarantors of the punctual
payment when due and performance of the Indenture Obligations made in favor of the Trustee for the
benefit of the Holders. Reference is made to Article Thirteen of the Indenture for a statement of
the respective rights, limitations of rights, duties and obligations under the Guarantees of the
Guarantors.

          Unless the certificate of authentication hereon has been duly executed by the Trustee referred
to on the reverse hereof or by the authenticating agent appointed as provided in the Indenture by
manual signature of an authorized signer, this Security shall not be entitled to any benefit under
the Indenture, or be valid or obligatory for any purpose.

          IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed by the manual
or facsimile signature of its authorized officers.

	 	 	 	 	 
	 	Sonic Automotive, Inc.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 - 47 - 

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

          This is one of the 9.0% Senior Subordinated Notes due 2018, Series B referred to in the
within-mentioned Indenture.

	 	 	 	 	 
	 	U.S. Bank National Association,

as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signer 	 
	 	 	 	 
	 

Dated:

OPTION OF HOLDER TO ELECT PURCHASE

          If you wish to have this Security purchased by the Company pursuant to Section 1012 or Section
1014, as applicable, of the Indenture, check the Box: [     ].

 - 48 - 

 

          If you wish to have a portion of this Security purchased by the Company pursuant to Section
1012 or Section 1014 as applicable, of the Indenture, state the amount (in original principal
amount):

$                     

Date:                                                                 Your Signature:    
                                                             

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

Signature Guarantee:                                                                

[Signature must be guaranteed by an eligible Guarantor Institution (banks, stock brokers, savings
and loan associations and credit unions) with membership in an approved guarantee medallion program
pursuant to Securities and Exchange Commission Rule 17Ad-15]

     Section 203. Form of Reverse of Securities.

          (a) The form of the reverse of the Series A Securities shall be substantially as follows:

Sonic Automotive, Inc.

9.0% Senior Subordinated Note due 2018, Series A

          This Security is one of a duly authorized issue of Securities of the Company designated as its
9.0% Senior Subordinated Notes due 2018, Series A (herein called the “Securities”), issued under
and subject to the terms of an indenture (herein called the “Indenture”) dated as of March 12,
2010, among the Company, the Guarantors and U.S. Bank National Association, as trustee (herein
called the “Trustee,” which term includes any successor trustee under the Indenture), to which
Indenture and all indentures supplemental thereto reference is hereby made for a statement of the
respective rights, limitations of rights, duties, obligations and immunities thereunder of the
Company, the Guarantors, the Trustee and the Holders of the Securities, and of the terms upon which
the Securities are, and are to be, authenticated and delivered.

          The Company may, from time to time, without notice to or the consent of the Holders of the
Securities, create and issue Additional Securities under the Indenture

 - 49 - 

 

ranking equally with the Securities in all respects, subject to the limitations described in
Section 1008 of the Indenture. The terms of the Securities and any Additional Securities may have
additional issuance dates and dates from which interest accrues and be subject to different
registration rights and shall be part of the same series. The total amount of the Securities which
may be issued under the Indenture is unlimited. Such Additional Securities will be consolidated
and form a single series with the Securities, vote together with the Securities and have the same
terms as to status, redemption or otherwise as the Securities. References to the Securities under
the Indenture include these Additional Securities if they are in the same series, unless the
context requires otherwise.

          The Securities are subject to redemption at any time on or after March 15, 2014, at the option
of the Company, in whole or in part, on not less than 30 nor more than 60 days’ prior notice, in
amounts of $1,000 or an integral multiple thereof, at the following redemption prices (expressed as
percentages of the principal amount), if redeemed during the 12-month period beginning March 15 of
the years indicated below:

	 	 	 	 	 
	 	 	Redemption
	Year	 	Price
	2014
	 	 	104.500	%
	2015
	 	 	102.250	%
	2016
	 	 	100.000	%

and thereafter at 100% of the principal amount, in each case, together with accrued and unpaid
interest, if any, to the Redemption Date (subject to the rights of Holders of record on relevant
record dates to receive interest due on an Interest Payment Date).

          In addition, at any time and from time to time on or prior to March 15, 2013, the Company may
redeem up to an aggregate of 35% of the aggregate principal amount of the Securities issued under
the Indenture at a redemption price equal to 109.0% of the aggregate principal amount of the
Securities redeemed, plus accrued and unpaid interest, if any, to the redemption date with the Net
Cash Proceeds from the issuance of any Qualified Capital Stock, provided that

	 	•	 	at least 65% of the aggregate principal amount of the Securities issued
under the Indenture must remain outstanding immediately after any such
redemption; and
	 
	 	•	 	the redemption must occur no later than 60 days after such issuance and
sale of Qualified Capital Stock.

          At any time and from time to time on or prior to March 15, 2014, the Company may redeem all or
a part of the Securities, upon not less than 15 nor more than 60 days’ notice, at a Redemption
Price equal to 100% of the principal amount of the Securities redeemed, plus the Applicable Premium
as of, and accrued and unpaid interest,

 - 50 - 

 

if any, to the Redemption Date (subject to the rights of Holders of record on relevant record
dates to receive interest due on an Interest Payment Date).

          If less than all of the Securities are to be redeemed, the Trustee shall select the Securities
or portions thereof to be redeemed in compliance with the requirements of the principal national
security exchange, if any, on which the Securities are listed, or if the Securities are not so
listed, the Trustee shall select them on a pro rata basis, by lot or by any other method the
Trustee shall deem fair and reasonable; provided, that Securities redeemed in part shall be
redeemed only in integral multiples of $1,000 (subject to the procedures of The Depository Trust
Company or any other Depositary).

          Upon the occurrence of a Change of Control, each Holder may require the Company to purchase
such Holder’s Securities in whole or in part in amounts of $1,000 or an integral multiple thereof,
at a purchase price in cash in an amount equal to 101% of the aggregate principal amount thereof,
plus accrued and unpaid interest, if any, to the date of purchase, pursuant to a Change of Control
Offer in accordance with the procedures set forth in the Indenture.

          Under certain circumstances described more specifically in the Indenture, in the event the Net
Cash Proceeds received by the Company from any Asset Sale, which proceeds are not used to repay
permanently any Senior Indebtedness or Senior Guarantor Indebtedness or invested in Replacement
Assets or exceeds a specified amount, the Company will be required to apply such proceeds to the
repayment of the Securities and certain Indebtedness ranking pari passu in right of payment to the
Securities.

          In the case of any redemption or repurchase of Securities in accordance with the Indenture,
interest installments whose Stated Maturity is on or prior to the Redemption Date will be payable
to the Holders of such Securities of record as of the close of business on the relevant Regular
Record Date or Special Record Date referred to on the face hereof. Securities (or portions thereof)
for whose redemption and payment provision is made in accordance with the Indenture shall cease to
bear interest from and after the Redemption Date.

          In the event of redemption or repurchase of this Security in accordance with the Indenture in
part only, a new Security or Securities for the unredeemed portion hereof shall be issued in the
name of the Holder hereof upon the cancellation hereof.

          If an Event of Default shall occur and be continuing, the principal amount of all the
Securities may be declared due and payable in the manner and with the effect provided in the
Indenture.

          The Indenture contains provisions for defeasance at any time of (a) the entire Indebtedness on
the Securities and (b) certain restrictive covenants and related

 - 51 - 

 

Defaults and Events of Default, in each case upon compliance with certain conditions set forth
therein.

          The Indenture permits, with certain exceptions (including certain amendments permitted without
the consent of any Holders and certain amendments which require the consent of all the Holders) as
therein provided, the amendment thereof and the modification of the rights and obligations of the
Company and the Guarantors and the rights of the Holders under the Indenture and the Securities and
the Guarantees at any time by the Company and the Trustee with the consent of the Holders of at
least a majority in aggregate principal amount of the Securities at the time Outstanding (including
consents obtained in connection with a purchase of, or tender offer or exchange offer for, the
Securities). The Indenture also contains provisions permitting the Holders of at least a majority
in aggregate principal amount of the Securities (100% of the Holders in certain circumstances) at
the time Outstanding, on behalf of the Holders of all the Securities, to waive compliance by the
Company and the Guarantors with certain provisions of the Indenture and the Securities and the
Guarantees and certain past Defaults under the Indenture and the Securities and the Guarantees and
their consequences. Any such consent or waiver by or on behalf of the Holder of this Security
shall be conclusive and binding upon such Holder and upon all future Holders of this Security and
of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu
hereof whether or not notation of such consent or waiver is made upon this Security.

          No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, any Guarantor or any other obligor on the
Securities (in the event such Guarantor or such other obligor is obligated to make payments in
respect of the Securities), which is absolute and unconditional, to pay the principal of, premium,
if any, and interest on, this Security at the times, place, and rate, and in the coin or currency,
herein prescribed.

          As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registrable in the Security Register, upon surrender of this Security
for registration of transfer at the office or agency of the Company in the Borough of Manhattan,
The City of New York, duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or its
attorney duly authorized in writing, and thereupon one or more new Securities, of authorized
denominations and for the same aggregate principal amount, will be issued to the designated
transferee or transferees.

          Certificated securities shall be transferred to all beneficial holders in exchange for their
beneficial interests in the Rule 144A Global Securities or the Regulation S Global Securities, if
any, if (x) the Depositary (A) notifies the Company that it is unwilling or unable to continue as
Depositary for such Global Security or (B) ceases to be a clearing agency registered as such under
the Exchange Act and, in

 - 52 - 

 

either case, a successor Depositary is not appointed by the Company within 90 days or (y) there shall
have occurred and be continuing an Event of Default and the Security Registrar has received a
request from the Depositary. Upon any such issuance, the Trustee is required to register such
certificated Securities in the name of, and cause the same to be delivered to, such Person or
Persons (or the nominee of any thereof). All such certificated Securities would be required to
include the Private Placement Legend unless the legend is not required by applicable law.

          Securities in certificated form are issuable only in registered form without coupons in
denominations of $2,000 and any integral multiple of $1,000. As provided in the Indenture and
subject to certain limitations therein set forth, the Securities are exchangeable for a like
aggregate principal amount of Securities of a differing authorized denomination, as requested by
the Holder surrendering the same.

          At any time when the Company is not subject to Sections 13 or 15(d) of the Exchange Act, upon
the written request of a Holder of a Series A Security, the Company will promptly furnish or cause
to be furnished such information as is specified pursuant to Rule 144A(d)(4) under the Securities
Act (or any successor provision thereto) to such Holder or to a prospective purchaser of such
Security who such Holder informs the Company is reasonably believed to be a “Qualified
Institutional Buyer” within the meaning of Rule 144A under the Securities Act, as the case may be,
in order to permit compliance by such Holder with Rule 144A under the Securities Act.

          No service charge shall be made for any registration of transfer or exchange of Securities,
but the Company may require payment of a sum sufficient to cover any tax or other governmental
charge payable in connection therewith.

          Prior to due presentment of this Security for registration of transfer, the Company, any
Guarantor, the Trustee and any agent of the Company, any Guarantor or the Trustee may treat the
Person in whose name this Security is registered as the owner hereof for all purposes, whether or
not this Security is overdue, and neither the Company, any Guarantor, the Trustee nor any such
agent shall be affected by notice to the contrary.

          THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES THEREOF.

          All terms used in this Security which are defined in the Indenture and not otherwise defined
herein shall have the meanings assigned to them in the Indenture.

          [The Transferee Certificate, in the form of Appendix I hereto, will be attached to the Series
A Security.]

 - 53 - 

 

          (b) The form of the reverse of the Series B Securities shall be substantially as follows:

Sonic Automotive, Inc.

9.0% Senior Subordinated Note due 2018, Series B

          This Security is one of a duly authorized issue of Securities of the Company designated as its
9.0% Senior Subordinated Notes due 2018, Series B (herein called the “Securities”), issued under
and subject to the terms of an indenture (herein called the “Indenture”) dated as of March 12, 2010
among the Company, the Guarantors and U.S. Bank National Association, as trustee (herein called the
“Trustee,” which term includes any successor trustee under the Indenture), to which Indenture and
all indentures supplemental thereto reference is hereby made for a statement of the respective
rights, limitations of rights, duties, obligations and immunities thereunder of the Company, the
Guarantors, the Trustee and the Holders of the Securities, and of the terms upon which the
Securities are, and are to be, authenticated and delivered.

          The Company may, from time to time, without notice to or the consent of the Holders of the
Securities, create and issue Additional Securities under the Indenture ranking equally with the
Securities in all respects, subject to the limitations described in Section 1008 of the Indenture.
The terms of the Securities and any Additional Securities may have additional issuance dates and
dates from which interest accrues and be subject to different registration rights and shall be part
of the same series. The total amount of the Securities which may be issued under the Indenture is
unlimited. Such Additional Securities will be consolidated and form a single series with the
Securities, vote together with the Securities and have the same terms as to status, redemption or
otherwise as the Securities. References to the Securities under the Indenture include these
Additional Securities if they are in the same series, unless the context requires otherwise.

 - 54 - 

 

          The Series B Securities are subject to redemption at any time on or after March 15, 2014, at
the option of the Company, in whole or in part, on not less than 30 nor more than 60 days’ prior
notice, in amounts of $1,000 or an integral multiple thereof, at the following redemption prices
(expressed as percentages of the principal amount), if redeemed during the 12-month period
beginning March 15 of the years indicated below:

	 	 	 	 	 
	 	 	Redemption
	Year	 	Price
	2014
	 	 	104.500	%
	2015
	 	 	102.250	%
	2016
	 	 	100.000	%

and thereafter at 100% of the principal amount, in each case, together with accrued and unpaid
interest, if any, to the Redemption Date (subject to the rights of Holders of record on relevant
record dates to receive interest due on an Interest Payment Date).

          In addition, at any time and from time to time on or prior to March 15, 2013, the Company may
redeem up to an aggregate of 35% of the aggregate principal amount of the Securities issued under
the Indenture at a redemption price equal to 109.0% of the aggregate principal amount of the
Securities redeemed, plus accrued and unpaid interest, if any, to the redemption date with the Net
Cash Proceeds from the issuance of any Qualified Capital Stock, provided that

	 	•	 	at least 65% of the aggregate principal amount of the Securities issued
under the Indenture must remain outstanding immediately after any such
redemption; and
	 
	 	•	 	the redemption must occur no later than 60 days after such issuance and
sale of Qualified Capital Stock.

          At any time and from time to time on or prior to March 15, 2014, the Company may redeem all or
a part of the Securities, upon not less than 15 nor more than 60 days’ notice, at a Redemption
Price equal to 100% of the principal amount of the Securities redeemed, plus the Applicable Premium
as of, and accrued and unpaid interest, if any, to the Redemption Date (subject to the rights of
Holders of record on relevant record dates to receive interest due on an Interest Payment Date).

          If less than all of the Securities are to be redeemed, the Trustee shall select the Securities
or portions thereof to be redeemed in compliance with the requirements of the principal national
security exchange, if any, on which the Securities are listed or, if the Securities are so not
listed, the Trustee shall select them on a pro rata basis, by lot or by any other method the
Trustee shall deem fair and reasonable.

 - 55 - 

 

          Upon the occurrence of a Change of Control, each Holder may require the Company to purchase
such Holder’s Securities in whole or in part in amounts of $1,000 or an integral multiple thereof,
at a purchase price in cash in an amount equal to 101% of the aggregate principal amount thereof,
plus accrued and unpaid interest, if any, to the date of purchase, pursuant to Change of Control
Offer and in accordance with the procedures set forth in the Indenture.

          Under certain circumstances described more specifically in the Indenture, in the event the Net
Cash Proceeds received by the Company from any Asset Sale, which proceeds are not used to repay
permanently any Senior Indebtedness or Senior Guarantor Indebtedness or invested in Replacement
Assets or exceeds a specified amount, the Company will be required to apply such proceeds to the
repayment of the Securities and certain Indebtedness ranking pari passu in right of payment to the
Securities.

          In the case of any redemption or repurchase of Securities in accordance with the Indenture,
interest installments whose Stated Maturity is on or prior to the Redemption Date will be payable
to the Holders of such Securities of record as of the close of business on the relevant Regular
Record Date or Special Record Date referred to on the face hereof. Securities (or portions
thereof) for whose redemption and payment provision is made in accordance with the Indenture shall
cease to bear interest from and after the Redemption Date.

          In the event of redemption or repurchase of this Security in accordance with the Indenture in
part only, a new Security or Securities for the unredeemed portion hereof shall be issued in the
name of the Holder hereof upon the cancellation hereof.

          If an Event of Default shall occur and be continuing, the principal amount of all the
Securities may be declared due and payable in the manner and with the effect provided in the
Indenture.

          The Indenture contains provisions for defeasance at any time of (a) the entire Indebtedness on
the Securities and (b) certain restrictive covenants and related Defaults and Events of Default, in
each case upon compliance with certain conditions set forth therein.

          The Indenture permits, with certain exceptions (including certain amendments permitted without
the consent of any Holders and certain amendments which required the consent of all of the Holders)
as therein provided, the amendment thereof and the modification of the rights and obligations of
the Company and the Guarantors and the rights of the Holders under the Indenture and the Securities
and the Guarantees at any time by the Company and the Trustee with the consent of the Holders of at
least a majority in aggregate principal amount of the Securities at the time Outstanding (including
consents obtained in connection with a purchase of, or tender offer or exchange offer for, the
Securities). The Indenture also contains provisions

 - 56 - 

 

permitting the Holders of at least a majority in aggregate principal amount of the Securities
(100% of the Holders in certain circumstances) at the time Outstanding, on behalf of the Holders of
all the Securities, to waive compliance by the Company and the Guarantors with certain provisions
of the Indenture and the Securities and the Guarantees and certain past Defaults under the
Indenture and the Securities and the Guarantees and their consequences. Any such consent or waiver
by or on behalf of the Holder of this Security shall be conclusive and binding upon such Holder and
upon all future Holders of this Security and of any Security issued upon the registration of
transfer hereof or in exchange herefor or in lieu hereof whether or not notation of such consent or
waiver is made upon this Security.

          No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, any Guarantor or any other obligor on the
Securities (in the event such Guarantor or such other obligor is obligated to make payments in
respect of the Securities), which is absolute and unconditional, to pay the principal of, and
premium, if any, and interest on, this Security at the times, place, and rate, and in the coin or
currency, herein prescribed.

          As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registrable in the Security Register, upon surrender of this Security
for registration of transfer at the office or agency of the Company in the Borough of Manhattan,
The City of New York, duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or its
attorney duly authorized in writing, and thereupon one or more new Securities, of authorized
denominations and for the same aggregate principal amount, will be issued to the designated
transferee or transferees.

          Certificated securities shall be transferred to all beneficial holders in exchange for their
beneficial interests in the Rule 144A Global Securities or the Regulation S Global Securities if
(x) the Depositary (A) notifies the Company that it is unwilling or unable to continue as
Depositary for such Global Security or (B) ceases to be a clearing agency registered as such under
the Exchange Act and, in either case, a successor Depositary is not appointed by the Company within
90 days or (y) there shall have occurred and be continuing an Event of Default and the Security
Registrar has received a request from the Depositary. Upon any such issuance, the Trustee is
required to register such certificated Securities in the name of, and cause the same to be
delivered to, such Person or Persons (or the nominee of any thereof).

          Securities in certificated form are issuable only in registered form without coupons in
denominations of $2,000 and any integral multiple of $1,000. As provided in the Indenture and
subject to certain limitations therein set forth, the Securities are exchangeable for a like
aggregate principal amount of Securities of a differing authorized denomination, as requested by
the Holder surrendering the same.

 - 57 - 

 

          No service charge shall be made for any registration of transfer or exchange of Securities,
but the Company may require payment of a sum sufficient to cover any tax or other governmental
charge payable in connection therewith.

          Prior to due presentment of this Security for registration of transfer, the Company, any
Guarantor, the Trustee and any agent of the Company, any Guarantor or the Trustee may treat the
Person in whose name this Security is registered as the owner hereof for all purposes, whether or
not this Security is overdue, and neither the Company, any Guarantor, the Trustee nor any such
agent shall be affected by notice to the contrary.

          THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES THEREOF.

          All terms used in this Security which are defined in the Indenture and not otherwise defined
herein shall have the meanings assigned to them in the Indenture.

          [The Transferee Certificate, in the form of Appendix II hereto, will be attached to the Series
B Security.]

     Section 204. Form of Guarantee.

          The form of Guarantee shall be set forth on the Securities substantially as follows:

GUARANTEE

          For value received, each of the undersigned hereby absolutely, fully and unconditionally and
irrevocably guarantees, jointly and severally with each other Guarantor, to the holder of this
Security the payment of principal of, premium, if any, and interest on this Security upon which
these Guarantees are endorsed in the amounts and at the time when due and payable whether by
declaration thereof, or otherwise, and interest on the overdue principal and interest, if any, of
this Security, if lawful, and the payment or performance of all other obligations of the Company
under the Indenture or the Securities, to the holder of this Security and the Trustee, all in
accordance with and subject to the terms and limitations of this Security and Article Thirteen of
the Indenture. These Guarantees shall be subordinate in the manner and to the extent set forth in
Article Thirteen of the Indenture to all Senior Guarantor Indebtedness. These Guarantees will not
become effective until the Trustee duly executes the certificate of authentication on this
Security. These Guarantees shall be governed by and construed in accordance with the laws of the
State of New York, without regard to conflict of law principles thereof.

Dated:

ADI OF THE SOUTHEAST LLC (a South Carolina limited liability company)

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ANTREV, LLC (a North Carolina limited liability company)

ARNGAR, INC. (a North Carolina corporation)

AUTOBAHN, INC. (a California corporation)

AVALON FORD, INC. (a Delaware corporation)

CASA FORD OF HOUSTON, INC. (a Texas corporation)

CORNERSTONE ACCEPTANCE CORPORATION (a Florida 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 F, INC. (a California corporation)

FAA MARIN LR, 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, INC. (a California corporation)

FAA SERRAMONTE H, INC. (a California corporation)

FAA SERRAMONTE L, 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 FORD, INC. (a South Carolina corporation)

FORT MYERS COLLISION CENTER, LLC (a Florida limited liability company)

FRANCISCAN MOTORS, INC. (a California corporation)

FRANK PARRA AUTOPLEX, INC. (a Texas corporation)

FRONTIER OLDSMOBILE – CADILLAC, INC. (a North Carolina corporation)

HMC FINANCE ALABAMA, INC. (an Alabama corporation)

KRAMER MOTORS INCORPORATED (a California corporation)

L DEALERSHIP GROUP, INC. (a Texas corporation)

MARCUS DAVID CORPORATION (a North Carolina corporation)

MASSEY CADILLAC, INC. (a Tennessee corporation)

MASSEY CADILLAC, INC. (a Texas corporation)

MOUNTAIN STATES MOTORS CO., INC. (a Colorado corporation)

ROYAL MOTOR COMPANY, INC. (an Alabama corporation)

SAI AL HC1, INC. (an Alabama corporation)

SAI AL HC2, INC. (an Alabama corporation), on behalf of itself and as sole member of:

     SAI IRONDALE L, LLC (an Alabama limited liability company)

SAI ANN ARBOR IMPORTS, LLC (a Michigan limited liability company)

SAI ATLANTA B, LLC (a Georgia limited liability company)

SAI BROKEN ARROW C, LLC (an Oklahoma limited liability company)

SAI CHARLOTTE M, LLC (a North Carolina limited liability company)

SAI COLUMBUS MOTORS, LLC (an Ohio limited liability company)

SAI COLUMBUS VWK, LLC (an Ohio limited liability company)

SAI FL HC1, INC. (a Florida corporation)

SAI FL HC2, INC. (a Florida corporation), on behalf of itself and as sole member of:

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     SAI CLEARWATER T, LLC (a Florida limited liability company)

SAI FL HC3, INC. (a Florida corporation)

SAI FL HC4, INC. (a Florida corporation)

SAI FL HC5, INC. (a Florida corporation)

SAI FL HC6, INC. (a Florida corporation)

SAI FL HC7, INC. (a Florida corporation)

SAI FORT MYERS B, LLC (a Florida limited liability company)

SAI FORT MYERS H, LLC (a Florida limited liability company)

SAI FORT MYERS M, LLC (a Florida limited liability company)

SAI FORT MYERS VW, LLC (a Florida limited liability company)

SAI IRONDALE IMPORTS, LLC (an Alabama limited liability company)

SAI LANSING CH, LLC (a Michigan limited liability company)

SAI LONG BEACH B, INC. (a California corporation)

SAI MD HC1, INC. (a Maryland corporation), on behalf of itself and as sole member of:

     SAI ROCKVILLE L, LLC (a Maryland limited liability company)

SAI MONROVIA B, INC. (a California corporation)

SAI MONTGOMERY B, LLC (an Alabama limited liability company)

SAI MONTGOMERY BCH, LLC (an Alabama limited liability company)

SAI MONTGOMERY CH, LLC (an Alabama limited liability company)

SAI NASHVILLE CSH, LLC (a Tennessee limited liability company)

SAI NASHVILLE H, LLC (a Tennessee limited liability company)

SAI NASHVILLE M, LLC (a Tennessee limited liability company)

SAI NASHVILLE MOTORS, LLC (a Tennessee limited liability company)

SAI NC HC2, INC. (a North Carolina corporation)

SAI OH HC1, INC. (an Ohio corporation)

SAI OK HC1, INC. (an Oklahoma corporation), on behalf of itself and as sole member of the following entities:

     SAI OKLAHOMA CITY T, LLC (an Oklahoma limited liability company)

     SAI TULSA T, LLC (an Oklahoma limited liability company)

SAI OKLAHOMA CITY C, LLC (an Oklahoma limited liability company)

SAI OKLAHOMA CITY H, LLC (an Oklahoma limited liability company)

SAI ORLANDO CS, LLC (a Florida limited liability company)

SAI PEACHTREE, LLC (a Georgia limited liability company)

SAI PLYMOUTH C, LLC (a Michigan limited liability company)

SAI RIVERSIDE C, LLC (an Oklahoma limited liability company)

SAI ROCKVILLE IMPORTS, LLC (a Maryland limited liability company)

SAI TN HC1, LLC (a Tennessee limited liability company)

SAI TN HC2, LLC (a Tennessee limited liability company)

SAI TN HC3, LLC (a Tennessee limited liability company)

SAI TULSA N, LLC (an Oklahoma limited liability company)

SAI VA HC1, INC. (a Virginia corporation)

SANTA CLARA IMPORTED CARS, INC. (a California corporation)

SONIC AGENCY, INC. (a Michigan corporation)

SONIC AUTOMOTIVE F&I, LLC (a Nevada limited liability company)

SONIC AUTOMOTIVE OF CHATTANOOGA, LLC (a Tennessee limited liability company)

SONIC AUTOMOTIVE OF NASHVILLE, LLC (a Tennessee limited liability company)

SONIC AUTOMOTIVE OF NEVADA, INC. (a Nevada corporation), on behalf of itself and as sole member

of:

     SAI GEORGIA, LLC (a Georgia limited liability company), on behalf of itself and as general partner of the following entities:

          SAI GA HC1, LP (a Georgia limited partnership), on behalf of itself and as sole member of:

               SAI STONE MOUNTAIN T, LLC (a Georgia limited liability company)

          SONIC PEACHTREE INDUSTRIAL BLVD., L.P. (a Georgia limited partnership)

          SONIC – STONE MOUNTAIN T, L.P. (a Georgia limited partnership)

          SRE GEORGIA – 1, L.P. (a Georgia limited partnership)

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          SRE GEORGIA – 2, L.P. (a Georgia limited partnership)

          SRE GEORGIA – 3, L.P. (a Georgia limited partnership)

SONIC AUTOMOTIVE SUPPORT, LLC (a Nevada limited liability company)

SONIC AUTOMOTIVE WEST, LLC (a Nevada limited liability company)

SONIC AUTOMOTIVE – 1495 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 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 – 3700 WEST BROAD STREET, COLUMBUS, INC. (an Ohio corporation)

SONIC AUTOMOTIVE – 4000 WEST BROAD STREET, COLUMBUS, INC. (an Ohio corporation)

SONIC AUTOMOTIVE 5260 PEACHTREE INDUSTRIAL BLVD., LLC (a Georgia limited liability

company)

SONIC AUTOMOTIVE – 6008 N. DALE MABRY, FL, INC. (a Florida corporation)

SONIC AUTOMOTIVE – 9103 E. INDEPENDENCE, NC, LLC (a North Carolina limited liability company)

SONIC 2185 CHAPMAN RD., CHATTANOOGA, LLC (a Tennessee limited liability company)

SONIC – BUENA PARK H, INC. (a California corporation)

SONIC – CALABASAS A, INC. (a California corporation)

SONIC CALABASAS M, INC. (a California corporation)

SONIC – CALABASAS V, INC. (a California corporation)

SONIC – CAPITOL CADILLAC, INC. (a Michigan corporation)

SONIC – CAPITOL IMPORTS, INC. (a South Carolina corporation)

SONIC – CARSON F, INC. (a California corporation)

SONIC – CARSON LM, INC. (a California corporation)

SONIC – CHATTANOOGA D EAST, LLC (a Tennessee limited liability company)

SONIC COAST CADILLAC, INC. (a California corporation)

SONIC – DENVER T, INC. (a Colorado corporation)

SONIC – DENVER VOLKSWAGEN, INC. (a Colorado corporation)

SONIC DEVELOPMENT, LLC (a North Carolina limited liability company)

SONIC DIVISIONAL OPERATIONS, LLC (a Nevada limited liability company)

SONIC – DOWNEY CADILLAC, INC. (a California corporation)

SONIC – ENGLEWOOD M, INC. (a Colorado corporation)

SONIC ESTORE, INC. (a North Carolina corporation)

SONIC – FORT MILL CHRYSLER JEEP, INC. (a South Carolina corporation)

SONIC – FORT MILL DODGE, INC. (a South Carolina corporation)

SONIC FREMONT, INC. (a California corporation)

SONIC – HARBOR CITY H, INC. (a California corporation)

SONIC – INTEGRITY DODGE LV, LLC (a Nevada limited liability company)

SONIC – LS, LLC (a Delaware limited liability company), on behalf of itself and as general partner of:

     SONIC – LS CHEVROLET, L.P. (a Texas limited partnership)

SONIC – LAKE NORMAN CHRYSLER JEEP, LLC (a North Carolina 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 – LONE TREE CADILLAC, INC. (a Colorado corporation)

SONIC – MANHATTAN FAIRFAX, INC. (a Virginia corporation)

SONIC – MASSEY CHEVROLET, INC. (a California corporation)

SONIC – MASSEY PONTIAC BUICK GMC, INC. (a Colorado 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)

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SONIC OF TEXAS, INC. (a Texas corporation), on behalf of itself and as general partner of the following

entities:

     PHILPOTT MOTORS, LTD. (a Texas limited partnership)

      SONIC ADVANTAGE PA, LP (a Texas limited partnership)

      SONIC AUTOMOTIVE OF TEXAS, L.P. (a Texas limited partnership)

      SONIC AUTOMOTIVE – 3401 N. MAIN, TX, L.P. (a Texas limited partnership)

      SONIC AUTOMOTIVE – 4701 I-10 EAST, TX, L.P. (a Texas limited partnership)

      SONIC AUTOMOTIVE – 5221 I-10 EAST, TX, L.P. (a Texas limited partnership)

      SONIC – CADILLAC D, L.P. (a Texas limited partnership)

      SONIC – CAMP FORD, L.P. (a Texas limited partnership)

      SONIC – CARROLLTON V, L.P. (a Texas limited partnership)

      SONIC – CLEAR LAKE N, L.P. (a Texas limited partnership)

      SONIC – CLEAR LAKE VOLKSWAGEN, L.P. (a Texas limited partnership)

      SONIC – FORT WORTH T, L.P. (a Texas limited partnership)

      SONIC – FRANK PARRA AUTOPLEX, L.P. (a Texas limited partnership)

      SONIC HOUSTON JLR, LP (a Texas limited partnership)

      SONIC HOUSTON LR, LP (a Texas limited partnership)

      SONIC – HOUSTON V, L.P. (a Texas limited partnership)

      SONIC – JERSEY VILLAGE VOLKSWAGEN, L.P. (a Texas limited partnership)

      SONIC – LUTE RILEY, L. P. (a Texas limited partnership)

      SONIC – MASSEY CADILLAC, L.P. (a Texas limited partnership)

      SONIC – MESQUITE HYUNDAI, L.P. (a Texas limited partnership)

      SONIC MOMENTUM B, L.P. (a Texas limited partnership)

      SONIC MOMENTUM JVP, L.P. (a Texas limited partnership)

      SONIC MOMENTUM VWA, L.P. (a Texas limited partnership)

      SONIC – READING, L.P. (a Texas limited partnership)

      SONIC – RICHARDSON F, L.P. (a Texas limited partnership)

      SONIC – SAM WHITE NISSAN, L.P. (a Texas limited partnership)

      SONIC – UNIVERSITY PARK A, L.P. (a Texas limited partnership)

      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 TEXAS – 4, L.P. (a Texas limited partnership)

      SRE TEXAS – 5, L.P. (a Texas limited partnership)

      SRE TEXAS – 6, L.P. (a Texas limited partnership)

      SRE TEXAS – 7, L.P. (a Texas limited partnership)

      SRE TEXAS – 8, L.P. (a Texas limited partnership)

SONIC OKEMOS IMPORTS, INC. (a Michigan corporation)

SONIC – PLYMOUTH CADILLAC, INC. (a Michigan corporation)

SONIC RESOURCES, INC. (a Nevada corporation)

SONIC – RIVERSIDE AUTO FACTORY, INC. (an Oklahoma corporation)

SONIC – SANFORD CADILLAC, INC. (a Florida corporation)

SONIC SANTA MONICA M, INC. (a California corporation)

SONIC SANTA MONICA S, INC. (a California corporation)

SONIC – SATURN OF SILICON VALLEY, INC. (a California corporation)

SONIC SERRAMONTE I, INC. (a California corporation)

SONIC – SHOTTENKIRK, INC. (a Florida corporation)

SONIC – SOUTH CADILLAC, INC. (a Florida corporation)

SONIC – STEVENS CREEK B, INC. (a California corporation)

SONIC TYSONS CORNER H, INC. (a Virginia corporation)

SONIC TYSONS CORNER INFINITI, INC. (a Virginia corporation)

SONIC – VOLVO LV, LLC (a Nevada limited liability company)

SONIC WALNUT CREEK M, INC. (a California corporation)

SONIC – WEST COVINA T, INC. (a California corporation)

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SONIC – WILLIAMS CADILLAC, INC. (an Alabama corporation)

SONIC WILSHIRE CADILLAC, INC. (a California corporation)

SRE ALABAMA – 2, LLC (an Alabama limited liability company)

SRE ALABAMA – 3, LLC (an Alabama limited liability company)

SRE ALABAMA – 4, LLC (an Alabama limited liability company)

SRE ALABAMA – 5, 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)

SREALESTATE ARIZONA – 5, LLC (an Arizona limited liability company)

SREALESTATE ARIZONA – 6, LLC (an Arizona limited liability company)

SREALESTATE ARIZONA – 7, LLC (an Arizona limited liability company)

SRE CALIFORNIA – 1, LLC (a California limited liability company)

SRE CALIFORNIA – 2, LLC (a California limited liability company)

SRE CALIFORNIA – 3, LLC (a California limited liability company)

SRE CALIFORNIA – 4, LLC (a California limited liability company)

SRE CALIFORNIA – 5, LLC (a California limited liability company)

SRE CALIFORNIA – 6, LLC (a California limited liability company)

SRE COLORADO – 1, LLC (a Colorado limited liability company)

SRE COLORADO – 2, LLC (a Colorado limited liability company)

SRE COLORADO – 3, LLC (a Colorado 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 HOLDING, LLC (a North Carolina limited liability company)

SRE MARYLAND – 1, LLC (a Maryland limited liability company)

SRE MARYLAND – 2, LLC (a Maryland limited liability company)

SRE MICHIGAN – 3, LLC (a Michigan 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 NEVADA – 4, LLC (a Nevada limited liability company)

SRE NEVADA – 5, LLC (a Nevada limited liability company)

SRE NORTH CAROLINA – 1, LLC (a North Carolina limited liability company)

SRE NORTH CAROLINA – 2, LLC (a North Carolina limited liability company)

SRE NORTH CAROLINA – 3, LLC (a North Carolina limited liability company)

SRE OKLAHOMA – 1, LLC (an Oklahoma limited liability company)

SRE OKLAHOMA – 2, LLC (an Oklahoma limited liability company)

SRE OKLAHOMA – 3, LLC (an Oklahoma limited liability company)

SRE OKLAHOMA – 4, LLC (an Oklahoma limited liability company)

SRE OKLAHOMA – 5, LLC (an Oklahoma limited liability company)

SRE SOUTH CAROLINA – 2, LLC (a South Carolina limited liability company)

SRE SOUTH CAROLINA – 3, LLC (a South Carolina limited liability company)

SRE SOUTH CAROLINA – 4, 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 TENNESSEE – 4, LLC (a Tennessee limited liability company)

SRE TENNESSEE – 5, LLC (a Tennessee limited liability company)

SRE TENNESSEE – 6, LLC (a Tennessee limited liability company)

SRE TENNESSEE – 7, LLC (a Tennessee limited liability company)

SRE TENNESSEE – 8, LLC (a Tennessee limited liability company)

SRE TENNESSEE – 9, LLC (a Tennessee limited liability company)

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SRE VIRGINIA – 1, LLC (a Virginia limited liability company)

SRE VIRGINIA – 2, LLC (a Virginia limited liability company)

STEVENS CREEK CADILLAC, INC. (a California corporation)

TOWN AND COUNTRY FORD, INCORPORATED (a North Carolina corporation)

VILLAGE IMPORTED CARS, INC. (a Maryland corporation)

WINDWARD, INC. (a Hawaii corporation)

Z MANAGEMENT, INC. (a Colorado corporation)

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Sonic Automotive, Inc., as sole member of the following entities:

      ONTARIO L, LLC (a California limited liability company)

      SAI COLUMBUS T, LLC (an Ohio limited liability company)

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

ARTICLE THREE

THE SECURITIES

     Section 301. Title and Terms.

          The initial aggregate principal amount of Securities which may be authenticated and delivered
under this Indenture is $210,000,000 in principal amount of Securities, except for Securities
authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of,
other Securities pursuant to Section 303, 304, 305, 306, 307, 308, 906, 1012, 1015, 1108 or
otherwise. Notwithstanding the foregoing, the Company may, from time to time, without notice to or
the consent of the Holders of Securities, create and issue Additional Securities under this
Indenture ranking equally with the Securities in all respects, subject to the limitations described
in Section 1008 hereof. The Company may issue Additional Securities as Series A Securities (with
or without registration rights) or freely tradable Series B Securities. The terms of the
Securities and any Additional Securities may have different issuance dates and dates from which
interest accrues and be subject to different registration rights and shall be part of the same
series. The total amount of the Securities which may be issued under this Indenture is unlimited.
Such Additional Securities will be consolidated and form a single series with the Securities, vote
together with the Securities and have the same terms as to

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status, redemption or otherwise as the Securities. References to the Securities under this
Indenture include these Additional Securities if they are in the same series, unless the context
requires otherwise.

          The Securities shall be known and designated as the “9.0% Senior Subordinated Notes due 2018”
of the Company. A separate reference may be made to each series. The Stated Maturity of the
Securities shall be March 15, 2018, and the Securities shall each bear interest at the rate of
9.000% per annum, as such interest rate may be adjusted as set forth in the Securities, from March
12, 2010, or from the most recent Interest Payment Date to which interest has been paid, payable
semiannually on March 15 and September 15 in each year, commencing as of September 15, 2010 until
the principal thereof is paid or duly provided for. Interest on any overdue principal, interest
(to the extent lawful) or premium, if any, shall be payable on demand.

          The principal of, premium, if any, and interest on, the Securities shall be payable and the
Securities shall be exchangeable and transferable at an office or agency of the Company in The City
of New York maintained for such purposes (which initially will be a corporate trust office of the
Trustee located at 100 Wall Street, Suite 1600, New York, New York, 10005); provided, however, that
payment of interest may be made at the option of the Company by check mailed to addresses of the
Persons entitled thereto as shown on the Security Register.

          For all purposes hereunder, the Series A Securities and the Series B Securities will be
treated as one class and are together referred to as the “Securities.” The Series A Securities
rank pari passu in right of payment with the Series B Securities.

          The Securities shall be subject to repurchase by the Company pursuant to an Offer as provided
in Section 1012.

          Holders shall have the right to require the Company to purchase their Securities, in whole or
in part, in the event of a Change of Control pursuant to Section 1014.

          The Securities shall be redeemable as provided in Article Eleven and in the Securities.

          The Indebtedness evidenced by these Securities shall be subordinated in right of payment to
all other Senior Indebtedness.

          At the election of the Company, the entire Indebtedness on the Securities or certain of the
Company’s obligations and covenants and certain Events of Default thereunder may be defeased as
provided in Article Four.

     Section 302. Denominations.

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          The Securities shall be issuable only in fully registered form without coupons and only in
denominations of $2,000 and any integral multiple of $1,000.

     Section 303. Execution, Authentication, Delivery and Dating.

          The Securities shall be executed on behalf of the Company by one of its Chairman of the Board,
its President, its Chief Executive Officer, its Chief Financial Officer or one of its Vice
Presidents. The signatures of any of these officers on the Securities may be manual or facsimile.

          Securities bearing the manual or facsimile signatures of individuals who were at any time the
proper officers of the Company shall bind the Company, notwithstanding that such individuals or any
of them have ceased to hold such offices prior to the authentication and delivery of such
Securities or did not hold such offices at the date of such Securities.

          At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Securities executed by the Company to the Trustee (with or without Guarantees
endorsed thereon) for authentication, together with a Company Order for the authentication and
delivery of such Securities; and the Trustee in accordance with such Company Order shall
authenticate and make available for delivery such Securities as provided in this Indenture and not
otherwise.

          Each Security shall be dated the date of its authentication.

          No Security or Guarantee endorsed thereon shall be entitled to any benefit under this
Indenture or be valid or obligatory for any purpose unless there appears on such Security a
certificate of authentication substantially in the form provided for herein duly executed by the
Trustee by manual signature of an authorized officer, and such certificate upon any Security shall
be conclusive evidence, and the only evidence, that such Security has been duly authenticated and
delivered hereunder and is entitled to the benefits of this Indenture.

          In case the Company or any Guarantor, pursuant to Article Eight, shall, in a single
transaction or through a series of related transactions, be consolidated or merged with or into any
other Person or shall sell, assign, convey, transfer, lease or otherwise dispose of all or
substantially all of its properties and assets to any Person, and the successor Person resulting
from such consolidation or surviving such merger, or into which the Company or such Guarantor shall
have been merged, or the successor Person which shall have participated in the sale, assignment,
conveyance, transfer, lease or other disposition as aforesaid, shall have executed an indenture
supplemental hereto with the Trustee pursuant to Article Eight, any of the Securities authenticated
or delivered prior to such consolidation, merger, sale, assignment, conveyance, transfer, lease or
other disposition may, from time to time, at the request of the successor Person, be exchanged

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for other Securities executed in the name of the successor Person with such changes in
phraseology and form as may be appropriate, but otherwise in substance of like tenor as the
Securities surrendered for such exchange and of like principal amount; and the Trustee, upon the
written request of the successor Person, shall authenticate and deliver Securities as specified in
such request for the purpose of such exchange. If Securities shall at any time be authenticated
and delivered in any new name of a successor Person pursuant to this Section 303 in exchange or
substitution for or upon registration of transfer of any Securities, such successor Person, at the
option of the Holders but without expense to them, shall provide for the exchange of all Securities
at the time Outstanding for Securities authenticated and delivered in such new name.

          The Trustee may appoint an authenticating agent acceptable to the Company to authenticate
Securities on behalf of the Trustee. Unless limited by the terms of such appointment, an
authenticating agent may authenticate Securities whenever the Trustee may do so. Each reference in
this Indenture to authentication by the Trustee includes authentication by such agent. An
authenticating agent has the same rights as any Security Registrar or Paying Agent to deal with the
Company and its Affiliates.

          If an officer whose signature is on a Security no longer holds that office at the time the
Trustee authenticates such Security such Security shall be valid nevertheless.

     Section 304. Temporary Securities.

          Pending the preparation of definitive Securities, the Company may execute, and upon Company
Order the Trustee shall authenticate and make available for delivery, temporary Securities which
are printed, lithographed, typewritten or otherwise produced, in any authorized denomination,
substantially of the tenor of the definitive Securities in lieu of which they are issued and with
such appropriate insertions, omissions, substitutions and other variations as the officers
executing such Securities may determine, as conclusively evidenced by their execution of such
Securities.

          If temporary Securities are issued, the Company will cause definitive Securities to be
prepared without unreasonable delay. After the preparation of definitive Securities, the temporary
Securities shall be exchangeable for definitive Securities upon surrender of the temporary
Securities at the office or agency of the Company designated for such purpose pursuant to Section
1002, without charge to the Holder. Upon surrender for cancellation of any one or more temporary
Securities, the Company shall execute and the Trustee (in accordance with a Company Order for the
authentication of such Securities) shall authenticate and make available for delivery in exchange
therefor a like principal amount of definitive Securities of authorized denominations. Until so
exchanged the temporary Securities shall in all respects be entitled to the same benefits under
this Indenture as definitive Securities.

     Section 305. Registration, Registration of Transfer and Exchange.

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          The Company shall cause the Trustee to keep, so long as it is the Security Registrar, at the
Corporate Trust Office of the Trustee, or such other office as the Trustee may designate, a
register (the register maintained in such office or in any other office or agency designated
pursuant to Section 1002 being herein sometimes referred to as the “Security Register”) in which,
subject to such reasonable regulations as the Security Registrar may prescribe, the Company shall
provide for the registration of Securities and of transfers of Securities. The Trustee shall
initially be the “Security Registrar” for the purpose of registering Securities and transfers of
Securities as herein provided. The Company may change the Security Registrar or appoint one or
more co-Security Registrars without notice.

          Upon surrender for registration of transfer of any Security at the office or agency of the
Company designated pursuant to Section 1002, the Company shall execute, and the Trustee shall (in
accordance with a Company Order for the authentication of such Securities) authenticate and make
available for delivery, in the name of the designated transferee or transferees, one or more new
Securities of the same series of any authorized denomination or denominations, of a like aggregate
principal amount.

          Furthermore, any Holder of the Global Security shall, by acceptance of such Global Security,
agree that transfers of beneficial interests in such Global Security may be effected only through a
book-entry system maintained by the Holder of such Global Security (or its agent), and that
ownership of a beneficial interest in a Security shall be required to be reflected in a book entry.

          At the option of the Holder, Securities may be exchanged for other Securities of any
authorized denomination or denominations, of a like aggregate principal amount, upon surrender of
the Securities to be exchanged at such office or agency. Whenever any Securities are so
surrendered for exchange, the Company shall execute, and the Trustee shall (in accordance with a
Company Order for the authentication of such Securities) authenticate and make available for
delivery, Securities of the same series which the Holder making the exchange is entitled to
receive; provided that no exchange of Series A Securities for Series B Securities shall occur until
an Exchange Offer Registration Statement shall have been declared effective by the Commission and
the Series A Securities exchanged for the Series B Securities shall be canceled.

          All Securities issued upon any registration of transfer or exchange of Securities shall be the
valid obligations of the Company, evidencing the same Indebtedness, and entitled to the same
benefits under this Indenture, as the Securities surrendered upon such registration of transfer or
exchange.

          Every Security presented or surrendered for registration of transfer, or for exchange,
repurchase or redemption, shall (if so required by the Company or the Trustee) be duly endorsed, or
be accompanied by a written instrument of transfer in form

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satisfactory to the Company and the Security Registrar, duly executed by the Holder thereof or
his attorney duly authorized in writing.

          No service charge shall be made to a Holder for any registration of transfer, exchange or
redemption of Securities, except for any tax or other governmental charge that may be imposed in
connection therewith, other than exchanges pursuant to Sections 303, 304, 305, 308, 906, 1012, 1014
or 1108 not involving any transfer.

          The Company shall not be required (a) to issue, register the transfer of or exchange any
Security during a period beginning at the opening of business 15 days before the mailing of a
notice of redemption of the Securities selected for redemption under Section 1104 and ending at the
close of business on the day of such mailing or (b) to register the transfer of or exchange any
Security so selected for redemption in whole or in part, except the unredeemed portion of
Securities being redeemed in part.

          Every Security shall be subject to the restrictions on transfer provided in the legend
required to be set forth on the face of each Security pursuant to Section 202, and the restrictions
set forth in this Section 305, and the Holder of each Security, by such Holder’s acceptance thereof
(or interest therein), agrees to be bound by such restrictions on transfer.

          Except as provided in the preceding paragraph, any Security authenticated and delivered upon
registration of transfer of, or in exchange for, or in lieu of, any Global Security, whether
pursuant to this Section 305, Section 304, 308, 906 or 1108 or otherwise, shall also be a Global
Security and bear the legend specified in Section 202.

     Section 306. Book Entry Provisions for Global Securities.

          (a) Each Global Security initially shall (i) be registered in the name of the Depositary for
such Global Security or the nominee of such Depositary, (ii) be deposited with, or on behalf of,
the Depositary or with the Trustee as custodian for such Depositary and (iii) bear legends as set
forth in Section 202.

          Members of, or participants in, the Depositary (“Agent Members”) shall have no rights under
this Indenture with respect to any Global Security held on their behalf by the Depositary, or the
Trustee as its custodian, or under such Global Security, and the Depositary may be treated by the
Company, the Guarantors, the Trustee and any agent of the Company or the Trustee as the absolute
owner of such Global Security for all purposes whatsoever. Notwithstanding the foregoing, nothing
herein shall prevent the Company, the Guarantors, the Trustee or any agent of the Company or the
Trustee from giving effect to any written certification, proxy or other authorization furnished by
the Depositary or shall impair, as between the Depositary and its Agent Members, the operation of
customary practices governing the exercise of the rights of a holder of any Security.

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          (b) Notwithstanding any other provision in this Indenture, no Global Security may be exchanged
in whole or in part for Securities registered, and no transfer of a Global Security in whole or in
part may be registered, in the name of any Person other than the Depositary for such Global
Security or a nominee thereof unless (i) such Depositary (A) has notified the Company that it is
unwilling or unable to continue as Depositary for such Global Security or (B) has ceased to be a
clearing agency registered as such under the Exchange Act, and in either case the Company fails to
appoint a successor Depositary, (ii) the Company, at its option, executes and delivers to the
Trustee a Company Order stating that it elects to cause the issuance of the Securities in
certificated form and that all Global Securities shall be exchanged in whole for Securities that
are not Global Securities (in which case such exchange shall be effected by the Trustee) or
(iii) there shall have occurred and be continuing an Event of Default or any event which after
notice or lapse of time or both would be an Event of Default with respect to such Global Security.

          (c) If any Global Security is to be exchanged for other Securities or canceled in whole, it
shall be surrendered by or on behalf of the Depositary or its nominee to the Trustee, as Security
Registrar, for exchange or cancellation as provided in this Article Three. If any Global Security
is to be exchanged for other Securities or canceled in part, or if another Security is to be
exchanged in whole or in part for a beneficial interest in any Global Security, then either
(i) such Global Security shall be so surrendered for exchange or cancellation as provided in this
Article Three or (ii) the principal amount thereof shall be reduced or increased by an amount equal
to the portion thereof to be so exchanged or canceled, or equal to the principal amount of such
other Security to be so exchanged for a beneficial interest therein, as the case may be, by means
of an appropriate adjustment made on the records of the Trustee, as Security Registrar, whereupon
the Trustee, in accordance with the Applicable Procedures, shall instruct the Depositary or its
authorized representative to make a corresponding adjustment to its records. Upon any such
surrender or adjustment of a Global Security, the Trustee shall, subject to this Section 306(c) and
as otherwise provided in this Article Three, authenticate and deliver any Securities issuable in
exchange for such Global Security (or any portion thereof) to or upon the order of, and registered
in such names as may be directed by, the Depositary or its authorized representative. Upon the
request of the Trustee in connection with the occurrence of any of the events specified in the
preceding paragraph, the Company shall promptly make available to the Trustee a reasonable supply
of Securities that are not in the form of Global Securities. The Trustee shall be entitled to rely
upon any order, direction or request of the Depositary or its authorized representative which is
given or made pursuant to this Article Three if such order, direction or request is given or made
in accordance with the Applicable Procedures.

          (d) Every Security authenticated and delivered upon registration of transfer of, or in
exchange for or in lieu of, a Global Security or any portion thereof, whether pursuant to this
Article Three or otherwise, shall be authenticated and delivered

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in the form of, and shall be, a Global Security, unless such Security is registered in the
name of a Person other than the Depositary for such Global Security or a nominee thereof.

          (e) The Depositary or its nominee, as registered owner of a Global Security, shall be the
Holder of such Global Security for all purposes under this Indenture and the Securities, and owners
of beneficial interests in a Global Security shall hold such interests pursuant to the Applicable
Procedures. Accordingly, any such owner’s beneficial interest in a Global Security will be shown
only on, and the transfer of such interest shall be effected only through, records maintained by
the Depositary or its nominee or its Agent Members.

     Section 307. Special Transfer and Exchange Provisions.

          (a) Certain Transfers and Exchanges. Transfers and exchanges of Securities and
beneficial interests in a Global Security of the kinds specified in this Section 307 shall be made
only in accordance with this Section 307 and subject in each case to the Applicable Procedures.

     (i) Rule 144A Global Security to Regulation S Global Security. If the
owner of a beneficial interest in the Rule 144A Global Security wishes at any time
to transfer such interest to a Person who wishes to acquire the same in the form of
a beneficial interest in the Regulation S Global Security, such transfer may be
effected only in accordance with the provisions of this paragraph and paragraph (iv)
below and subject to the Applicable Procedures. Upon receipt by the Trustee, as
Security Registrar, of (a) an order given by the Depositary or its authorized
representative directing that a beneficial interest in the Regulation S Global
Security in a specified principal amount be credited to a specified Agent Member’s
account and that a beneficial interest in the Rule 144A Global Security in an equal
principal amount be debited from another specified Agent Member’s account and (b) a
Regulation S Certificate in the form of Exhibit A hereto, satisfactory to the
Trustee and duly executed by the owner of such beneficial interest in the Rule 144A
Global Security or his attorney duly authorized in writing, then the Trustee, as
Security Registrar but subject to paragraph (iv) below, shall reduce the principal
amount of the Rule 144A Global Security and increase the principal amount of the
Regulation S Global Security by such specified principal amount as provided in
Section 306(c).

     (ii) Regulation S Global Security to Rule 144A Global Security. If the
owner of a beneficial interest in the Regulation S Global Security wishes at any
time to transfer such interest to a Person who wishes to acquire the same in the
form of a beneficial interest in the Rule 144A

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Global Security, such transfer may be effected only in accordance with this
paragraph (ii) and subject to the Applicable Procedures. Upon receipt by the
Trustee, as Security Registrar, of (a) an order given by the Depositary or its
authorized representative directing that a beneficial interest in the Rule 144A
Global Security in a specified principal amount be credited to a specified Agent
Member’s account and that a beneficial interest in the Regulation S Global Security
in an equal principal amount be debited from another specified Agent Member’s
account and (b) if such transfer is to occur during the Restricted Period, a
Restricted Securities Certificate in the form of Exhibit B hereto, satisfactory to
the Trustee and duly executed by the owner of such beneficial interest in the
Regulation S Global Security or his attorney duly authorized in writing, then the
Trustee, as Security Registrar, shall reduce the principal amount of the
Regulation S Global Security and increase the principal amount of the Rule 144A
Global Security by such specified principal amount as provided in Section 306(c).

     (iii) Exchanges between Global Security and Non-Global Security. A
beneficial interest in a Global Security may be exchanged for a Security that is not
a Global Security as provided in Section 307(b), provided that, if such
interest is a beneficial interest in the Rule 144A Global Security, or if such
interest is a beneficial interest in the Regulation S Global Security and such
exchange is to occur during the Restricted Period, then such interest shall bear the
Private Placement Legend (subject in each case to Section 307(b)).

     (iv) Regulation S Global Security to be Held Through Euroclear or
Clearstream during Restricted Period. The Company shall use its best efforts to
cause the Depositary to ensure that, until the expiration of the Restricted Period,
beneficial interests in the Regulation S Global Security may be held only in or
through accounts maintained at the Depositary by Euroclear or Clearstream (or by
Agent Members acting for the account thereof), and no person shall be entitled to
effect any transfer or exchange that would result in any such interest being held
otherwise than in or through such an account; provided that this paragraph
(iv) shall not prohibit any transfer or exchange of such an interest in accordance
with paragraph (ii) above.

          (b) Private Placement Legends. Rule 144A Securities and their Successor Securities
and Regulation S Securities and their Successor Securities shall bear a Private Placement Legend,
subject to the following:

     (i) subject to the following clauses of this Section 307(b), a Security or any
portion thereof which is exchanged, upon transfer or otherwise, for a Global
Security or any portion thereof shall bear the

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Private Placement Legend borne by such Global Security while represented
thereby;

     (ii) subject to the following Clauses of this Section 307(b), a new Security
which is not a Global Security and is issued in exchange for another Security
(including a Global Security) or any portion thereof, upon transfer or otherwise,
shall bear the Private Placement Legend borne by such other Security;

     (iii) Series B Securities, and all other Securities sold or otherwise disposed
of pursuant to an effective registration statement under the Securities Act,
together with their respective Successor Securities, shall not bear a Private
Placement Legend;

     (iv) at any time after the Securities may be freely transferred without
registration under the Securities Act or without being subject to transfer
restrictions pursuant to the Securities Act, a new Security which does not bear a
Private Placement Legend may be issued in exchange for or in lieu of a Security
(other than a Global Security) or any portion thereof which bears such a legend if
the Trustee has received an Unrestricted Securities Certificate substantially in the
form of Exhibit C hereto, satisfactory to the Trustee and duly executed by the
Holder of such legended Security or his attorney duly authorized in writing, and
after such date and receipt of such certificate, the Trustee shall authenticate and
deliver such a new Security in exchange for or in lieu of such other Security as
provided in this Article Three;

     (v) a new Security which does not bear a Private Placement Legend may be issued
in exchange for or in lieu of a Security (other than a Global Security) or any
portion thereof which bears such a legend if, in the Company’s judgment, placing
such a legend upon such new Security is not necessary to ensure compliance with the
registration requirements of the Securities Act, and the Trustee, at the direction
of the Company, shall authenticate and deliver such a new Security as provided in
this Article Three; and

     (vi) notwithstanding the foregoing provisions of this Section 307(b), a
Successor Security of a Security that does not bear a particular form of Private
Placement Legend shall not bear such form of legend unless the Company has
reasonable cause to believe that such Successor Security is a “restricted security”
within the meaning of Rule 144, in which case the Trustee, at the direction of the
Company, shall authenticate and deliver a new Security bearing a Private Placement
Legend in exchange for such Successor Security as provided in this Article Three.

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          By its acceptance of any Security bearing the Private Placement Legend, each Holder of such a
Security acknowledges the restrictions on transfer of such Security set forth in this Indenture and
in the Private Placement Legend and agrees that it will transfer such Security only as provided in
this Indenture.

          The Security Registrar shall retain copies of all letters, notices and other written
communications received pursuant to Section 306 or this Section 307. The Company shall have the
right to inspect and make copies of all such letters, notices or other written communications at
any reasonable time upon the giving of reasonable written notice to the Security Registrar.

          In the event that Regulation S is amended during the term of this Indenture to alter the
applicable holding period, all reference in this Indenture to a holding period for Non-U.S. Persons
will be deemed to include such amendment.

     Section 308. Mutilated, Destroyed, Lost and Stolen Securities.

          If (a) any mutilated Security is surrendered to the Trustee, or (b) the Company and the
Trustee receive evidence to their satisfaction of the destruction, loss or theft of any Security,
and there is delivered to the Company, any Guarantor and the Trustee, such security or indemnity,
in each case, as may be required by them to save each of them harmless, then, in the absence of
notice to the Company, any Guarantor or the Trustee that such Security has been acquired by a bona
fide purchaser, the Company shall execute and upon a Company Request the Trustee shall authenticate
and deliver, in exchange for any such mutilated Security or in lieu of any such destroyed, lost or
stolen Security, a replacement Security of like tenor and principal amount, bearing a number not
contemporaneously outstanding and each Guarantor shall execute a replacement Guarantee.

          In case any such mutilated, destroyed, lost or stolen Security has become or is about to
become due and payable, the Company in its discretion may, instead of issuing a replacement
Security, pay such Security.

          Upon the issuance of any replacement Securities under this Section, the Company may require
the payment of a sum sufficient to pay all documentary, stamp or similar issue or transfer taxes or
other governmental charges that may be imposed in relation thereto and any other expenses
(including the fees and expenses of the Trustee) connected therewith.

          Every replacement Security and Guarantee issued pursuant to this Section in lieu of any
destroyed, lost or stolen Security shall constitute an original additional contractual obligation
of the Company and any Guarantor, whether or not the destroyed, lost or stolen Security shall be at
any time enforceable by anyone, and shall be entitled to

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all benefits of this Indenture equally and proportionately with any and all other Securities
duly issued hereunder.

          The provisions of this Section are exclusive and shall preclude (to the extent lawful) all
other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost
or stolen Securities.

     Section 309. Payment of Interest; Interest Rights Preserved.

          Interest on any Security which is payable, and is punctually paid or duly provided for, on the
Stated Maturity of such interest shall be paid to the Person in whose name the Security (or any
Predecessor Securities) is registered at the close of business on the Regular Record Date for such
interest payment.

          Any interest on any Security which is payable, but is not punctually paid or duly provided
for, on the Stated Maturity of such interest, and interest on such defaulted interest at the then
applicable interest rate borne by the Securities, to the extent lawful (such defaulted interest and
interest thereon herein collectively called “Defaulted Interest”), shall forthwith cease to be
payable to the Holder on the Regular Record Date; and such Defaulted Interest may be paid by the
Company, at its election in each case, as provided in Subsection (a) or (b) below:

(a) The Company may elect to make payment of any Defaulted Interest to the Persons
in whose names the Securities (or any relevant Predecessor Securities) are
registered at the close of business on a Special Record Date for the payment of such
Defaulted Interest, which shall be fixed in the following manner. The Company shall
notify the Trustee in writing of the amount of Defaulted Interest proposed to be
paid on each Security and the date (not less than 30 days after such notice) of the
proposed payment (the “Special Payment Date”), and at the same time the Company
shall deposit with the Trustee an amount of money equal to the aggregate amount
proposed to be paid in respect of such Defaulted Interest or shall make arrangements
satisfactory to the Trustee for such deposit prior to the Special Payment Date, such
money when deposited to be held in trust for the benefit of the Persons entitled to
such Defaulted Interest as in this Subsection provided. Thereupon the Trustee shall
fix a Special Record Date for the payment of such Defaulted Interest which shall be
not more than 15 days and not less than 10 days prior to the date of the Special
Payment Date and not less than 10 days after the receipt by the Trustee of the
notice of the proposed payment. The Trustee shall promptly notify the Company in
writing of such Special Record Date. In the name and at the expense of the Company,
the Trustee shall cause notice of the proposed payment of such Defaulted Interest
and the Special Record Date therefor to be mailed, first-class postage prepaid, to
each Holder at its address as it

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appears in the Security Register, not less than 10 days prior to such Special Record
Date. Notice of the proposed payment of such Defaulted Interest and the Special
Record Date and Special Payment Date therefor having been so mailed, such Defaulted
Interest shall be paid to the Persons in whose names the Securities are registered
on such Special Record Date and shall no longer be payable pursuant to the following
Subsection (b).

(b) The Company may make payment of any Defaulted Interest in any other lawful
manner not inconsistent with the requirements of any securities exchange on which
the Securities may be listed, and upon such notice as may be required by this
Indenture not inconsistent with the requirements of such exchange, if, after written
notice given by the Company to the Trustee of the proposed payment pursuant to this
Subsection, such payment shall be deemed practicable by the Trustee.

          Subject to the foregoing provisions of this Section 309, each Security delivered under this
Indenture upon registration of transfer of or in exchange for or in lieu of any other Security
shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such
other Security.

     Section 310. CUSIP Numbers.

          The Company in issuing the Securities may use “CUSIP” numbers (if then generally in use), and
the Company, or the Trustee on behalf of the Company, shall use CUSIP numbers in notices of
redemption or exchange as a convenience to Holders; provided, however, that any such notice may
state that no representation is made as to the correctness of such numbers either as printed on the
Securities or as contained in any notice of redemption or exchange and that reliance may be placed
only on the other identification numbers printed on the Securities; and provided further, however,
that failure to use CUSIP numbers in any notice of redemption or exchange shall not affect the
validity or sufficiency of such notice.

     Section 311. Persons Deemed Owners.

          Prior to due presentment of a Security for registration of transfer, the Company, any
Guarantor, the Trustee and any agent of the Company, any Guarantor or the Trustee may treat the
Person in whose name any Security is registered as the owner of such Security for the purpose of
receiving payment of principal of, premium, if any, and (subject to Section 309) interest on, such
Security and for all other purposes whatsoever, whether or not such Security is overdue, and
neither the Company, any Guarantor, the Trustee nor any agent of the Company, any Guarantor or the
Trustee shall be affected by notice to the contrary.

     Section 312. Cancellation.

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          All Securities surrendered for payment, purchase, redemption, registration of transfer or
exchange shall be delivered to the Trustee and, if not already canceled, shall be promptly canceled
by it. The Company and any Guarantor may at any time deliver to the Trustee for cancellation any
Securities previously authenticated and delivered hereunder which the Company or such Guarantor may
have acquired in any manner whatsoever, and all Securities so delivered shall be promptly canceled
by the Trustee. No Securities shall be authenticated in lieu of or in exchange for any Securities
canceled as provided in this Section 312, except as expressly permitted by this Indenture. All
canceled Securities held by the Trustee shall be returned to the Company. The Trustee shall
provide the Company a list of all Securities that have been canceled from time to time as requested
by the Company.

     Section 313. Computation of Interest.

          Interest on the Securities shall be computed on the basis of a 360-day year comprised of
twelve 30-day months.

ARTICLE FOUR

DEFEASANCE AND COVENANT DEFEASANCE

     Section 401. Company’s Option to Effect Defeasance or Covenant Defeasance.

          The Company may, at its option by Board Resolution, at any time, with respect to the
Securities, elect to have either Section 402 or Section 403 be applied to all of the Outstanding
Securities (the “Defeased Securities”), upon compliance with the conditions set forth below in this
Article Four.

     Section 402. Defeasance and Discharge.

          Upon the Company’s exercise under Section 401 of the option applicable to this Section 402,
the Company, each Guarantor and any other obligor upon the Securities, if any, shall be deemed to
have been discharged from its obligations with respect to the Defeased Securities on the date the
conditions set forth in Section 404 below are satisfied (hereinafter, “defeasance”). For this
purpose, such defeasance means that the Company, each Guarantor and any other obligor under this
Indenture shall be deemed to have paid and discharged the entire Indebtedness represented by the
Defeased Securities, which shall thereafter be deemed to be “Outstanding” only for the purposes of
Section 405 and the other Sections of this Indenture referred to in (a) and (b) below, and to have
satisfied all its other obligations under such Securities and this Indenture insofar as such
Securities are concerned (and the Trustee, at the expense of the Company and upon Company Request,
shall execute proper instruments acknowledging the same), except for the

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following which shall survive until otherwise terminated or discharged hereunder: (a) the
rights of Holders of Defeased Securities to receive, solely from the trust fund described in
Section 404 and as more fully set forth in such Section, payments in respect of the principal of,
premium, if any, and interest on, such Securities, when such payments are due, (b) the Company’s
obligations with respect to such Defeased Securities under Sections 304, 305, 308, 1002 and 1003,
(c) the rights, powers, trusts, duties and immunities of the Trustee hereunder, including, without
limitation, the Trustee’s rights under Section 607, and (d) this Article Four. Subject to
compliance with this Article Four, the Company may exercise its option under this Section 402
notwithstanding the prior exercise of its option under Section 403 with respect to the Securities.

     Section 403. Covenant Defeasance.

          Upon the Company’s exercise under Section 401 of the option applicable to this Section 403,
the Company and each Guarantor shall be released from its obligations under any covenant or
provision contained or referred to in Sections 1005 through 1020, inclusive, and the provisions of
clause (iii) of Section 801(a), with respect to the Defeased Securities, on and after the date the
conditions set forth in Section 404 below are satisfied (hereinafter, “covenant defeasance”), and
the Defeased Securities shall thereafter be deemed to be not “Outstanding” for the purposes of any
direction, waiver, consent or declaration or Act of Holders (and the consequences of any thereof)
in connection with such covenants, but shall continue to be deemed “Outstanding” for all other
purposes hereunder. For this purpose, such covenant defeasance means that, with respect to the
Defeased Securities, the Company and each Guarantor may omit to comply with and shall have no
liability in respect of any term, condition or limitation set forth in any such Section, whether
directly or indirectly, by reason of any reference elsewhere herein to any such Section or by
reason of any reference in any such Section to any other provision herein or in any other document
and such omission to comply shall not constitute a Default or an Event of Default under Section
501(c), (d) or (f) but, except as specified above, the remainder of this Indenture and such
Defeased Securities shall be unaffected thereby.

     Section 404. Conditions to Defeasance or Covenant Defeasance.

          The following shall be the conditions to application of either Section 402 or Section 403 to
the Defeased Securities:

          (1) The Company shall irrevocably have deposited or caused to be deposited with the Trustee as
trust funds in trust for the purpose of making the following payments, specifically pledged as
security for, and dedicated solely to, the benefit of the Holders of such Securities, (a) cash in
United States dollars, (b) U.S. Government Obligations, or (c) a combination thereof, in such
amounts as will be sufficient, in the opinion of a nationally recognized firm of independent public
accountants or a nationally recognized investment banking firm expressed in a written certification
thereof delivered

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to the Trustee, to pay and discharge, and which shall be applied by the Trustee to pay and
discharge, the principal of, premium, if any, and interest on, the Defeased Securities, on the
Stated Maturity of such principal or interest (or on any date after March 15, 2014 (such date being
referred to as the “Defeasance Redemption Date”) if at or prior to electing to exercise either its
option applicable to Section 402 or its option applicable to Section 403, the Company has delivered
to the Trustee an irrevocable notice to redeem the Defeased Securities on the Defeasance Redemption
Date). For this purpose, “U.S. Government Obligations” means securities that are (i) direct
obligations of the United States of America for the timely payment of which its full faith and
credit is pledged or (ii) obligations of a Person controlled or supervised by and acting as an
agency or instrumentality of the United States of America the timely payment of which is
unconditionally guaranteed as a full faith and credit obligation by the United States of America,
which, in either case, are not callable or redeemable at the option of the issuer thereof, and
shall also include a Depositary receipt issued by a bank (as defined in Section 3(a)(2) of the
Securities Act), as custodian with respect to any such U.S. Government Obligation or a specific
payment of principal of or interest on any such U.S. Government Obligation held by such custodian
for the account of the holder of such Depositary receipt, provided that (except as required by law)
such custodian is not authorized to make any deduction from the amount payable to the holder of
such Depositary receipt from any amount received by the custodian in respect of the U.S. Government
Obligation or the specific payment of principal of or interest on the U.S. Government Obligation
evidenced by such Depositary receipt;

          (2) In the case of an election under Section 402, the Company shall have delivered to the
Trustee an Opinion of Independent Counsel in the United States stating that (A) the Company has
received from, or there has been published by, the Internal Revenue Service a ruling or (B) since
the Issue Date, there has been a change in the applicable federal income tax law, in either case to
the effect that, and based thereon such Opinion of Independent Counsel in the United States shall
confirm that, the Holders of the Outstanding Securities will not recognize income, gain or loss for
federal income tax purposes as a result of such defeasance and will be subject to federal income
tax on the same amounts, in the same manner and at the same times as would have been the case if
such defeasance had not occurred;

          (3) In the case of an election under Section 403, the Company shall have delivered to the
Trustee an Opinion of Independent Counsel in the United States to the effect that the Holders of
the Outstanding Securities will not recognize income, gain or loss for federal income tax purposes
as a result of such covenant defeasance and will be subject to federal income tax on the same
amounts, in the same manner and at the same times as would have been the case if such covenant
defeasance had not occurred;

          (4) No Default or Event of Default shall have occurred and be continuing on the date of such
deposit or insofar as Section 501(g) or (h) is concerned, at

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any time during the period ending on the 91st day after the date of deposit (it being
understood that this condition shall not be deemed satisfied until the expiration of such period)
(other than a Default which results from the borrowing of amounts to finance the defeasance and
which borrowing does not result in a breach or violation of, or constitute a default, under any
other material agreement or instrument to which the Company or any Restricted Subsidiary is a party
or to which it is bound);

          (5) Such defeasance or covenant defeasance shall not cause the Trustee for the Securities to
have a conflicting interest in violation of and for purposes of the Trust Indenture Act with
respect to any other securities of the Company or any Guarantor;

          (6) Such defeasance or covenant defeasance shall not result in a breach or violation of, or
constitute a Default under, this Indenture or any other material agreement or instrument to which
the Company, any Guarantor or any Restricted Subsidiary is a party or by which it is bound;

          (7) Such defeasance or covenant defeasance shall not result in the trust arising from such
deposit constituting an investment company within the meaning of the Investment Company Act of
1940, as amended, unless such trust shall be registered under such Act or exempt from registration
thereunder;

          (8) The Company shall have delivered to the Trustee an Opinion of Independent Counsel in the
United States to the effect that (assuming that no Holder of any Securities would be considered an
insider of the Company under any applicable bankruptcy or insolvency law and assuming no
intervening bankruptcy or insolvency of the Company between the date of deposit and the
91st day following the deposit) after the 91st day following the deposit, the trust
funds will not be subject to the effect of any applicable bankruptcy, insolvency, reorganization or
similar laws affecting creditors’ rights generally;

          (9) The Company shall have delivered to the Trustee an Officers’ Certificate stating that the
deposit was not made by the Company with the intent of preferring the holders of the Securities or
any Guarantee over the other creditors of the Company or any Guarantor with the intent of
defeating, hindering, delaying or defrauding creditors of the Company, any Guarantor or others;

          (10) No event or condition shall exist that would prevent the Company from making payments of
the principal of, premium, if any, and interest on the Securities on the date of such deposit or at
any time ending on the 91st day after the date of such deposit; and

          (11) The Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion
of Independent Counsel, each stating that all conditions

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precedent provided for relating to either the defeasance under Section 402 or the covenant
defeasance under Section 403 (as the case may be) have been complied with.

          Opinions of Counsel or Opinions of Independent Counsel required to be delivered under this
Section shall be in form and substance reasonably satisfactory to the Trustee may have
qualifications customary for opinions of the type required and counsel delivering such opinions may
rely on certificates of the Company or government or other officials customary for opinions of the
type required, which certificates shall be limited as to matters of fact, including that various
financial covenants have been complied with.

     Section 405. Deposited Money and U.S. Government Obligations to Be Held in Trust; Other
Miscellaneous Provisions.

          Subject to the provisions of the last paragraph of Section 1003, all United States dollars and
U.S. Government Obligations (including the proceeds thereof) deposited with the Trustee pursuant to
Section 404 in respect of the Defeased Securities shall be held in trust and applied by the
Trustee, in accordance with the provisions of such Securities and this Indenture, to the payment,
either directly or through any Paying Agent (excluding the Company or any of its Affiliates acting
as Paying Agent), as the Trustee may determine, to the Holders of such Securities of all sums due
and to become due thereon in respect of principal, premium, if any, and interest, but such money
need not be segregated from other funds except to the extent required by law.

          The Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed
on or assessed against the U.S. Government Obligations deposited pursuant to Section 404 or the
principal and interest received in respect thereof other than any such tax, fee or other charge
which by law is imposed, assessed or for the account of the Holders of the Defeased Securities.

          Anything in this Article Four to the contrary notwithstanding, the Trustee shall deliver or
pay to the Company from time to time upon Company Request any United States dollars or U.S.
Government Obligations held by it as provided in Section 404 which, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written certification thereof
delivered to the Trustee, are in excess of the amount thereof which would then be required to be
deposited to effect defeasance or covenant defeasance.

     Section 406. Reinstatement.

          If the Trustee or Paying Agent is unable to apply any United States dollars or U.S. Government
Obligations in accordance with Section 402 or 403, as the case may be, by reason of any order or
judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting
such application, then the Company’s obligations under this Indenture and the Securities and any
Guarantor’s obligations under any

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Guarantee shall be revived and reinstated, with present and prospective effect, as though no
deposit had occurred pursuant to Section 402 or 403, as the case may be, until such time as the
Trustee or Paying Agent is permitted to apply all such United States dollars or U.S. Government
Obligations in accordance with Section 402 or 403, as the case may be; provided, however, that if
the Company makes any payment to the Trustee or Paying Agent of principal of, premium, if any, or
interest on any Security following the reinstatement of its obligations, the Trustee or Paying
Agent shall promptly pay any such amount to the Holders of the Securities and the Company shall be
subrogated to the rights of the Holders of such Securities to receive such payment from the United
States dollars and U.S. Government Obligations held by the Trustee or Paying Agent.

ARTICLE FIVE

REMEDIES

     Section 501. Events of Default.

          “Event of Default,” wherever used herein, means any one of the following events (whatever the
reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by
operation of law or pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body):

          (a) there shall be a default in the payment of any interest on any Security when it becomes
due and payable, and such default shall continue for a period of 30 days (whether or not prohibited
by the subordination provisions of this Indenture);

          (b) there shall be a default in the payment of the principal of (or premium, if any, on) any
Security at its Maturity (upon acceleration, optional or mandatory redemption, required repurchase
or otherwise) (whether or not prohibited by the subordination provisions of this Indenture);

          (c) (i) there shall be a default in the performance, or breach, of any covenant or agreement
of the Company or any Guarantor under this Indenture or any Guarantee (other than a default in the
performance, or breach, of a covenant or agreement which is specifically dealt with in clause (a),
(b) or in clause (ii), (iii) or (iv) of this clause (c)) and such default or breach shall continue
for a period of 60 days after written notice (30 days in the case of a default under Section 1008
or Section 1009 herein) has been given, by certified mail, (x) to the Company by the Trustee or
(y) to the Company and the Trustee by the Holders of at least 25% in aggregate principal amount of
the outstanding Securities; (ii) there shall be a default in the performance or breach of the
provisions of Article Eight; (iii) the Company shall have failed to consummate an Offer in
accordance with the provisions of Section 1012; or (iv) the Company shall have failed to

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consummate a Change of Control Offer in accordance with the provisions of Section 1014;

          (d) one or more defaults, individually or in the aggregate, shall have occurred under any of
the agreements, indentures or instruments under which the Company or any Restricted Subsidiary then
has outstanding Indebtedness in excess of $35.0 million in principal amount, individually or in the
aggregate, and either (i) such default results from the failure to pay such Indebtedness at its
stated final maturity or (ii) such default or defaults resulted in the acceleration of the maturity
of such Indebtedness;

          (e) any Guarantee shall for any reason ceases to be, or shall for any reason be asserted in
writing by any Guarantor or the Company not to be, in full force and effect and enforceable in
accordance with its terms, except to the extent contemplated by this Indenture and any such
Guarantee , if such default continues for a period of 30 days after written notice has been given
(x) to the Company by the Trustee or (y) to the Company and the Trustee by the Holders of not less
than 25% in aggregate principal amount of the Securities then outstanding;

          (f) one or more final judgments, orders or decrees (not subject to appeal) of any court or
regulatory or administrative agency for the payment of money in excess of $35.0 million, either
individually or in the aggregate (exclusive of any portion of any such payment covered by insurance
or indemnification), shall be rendered against the Company, any Guarantor or any Restricted
Subsidiary or any of their respective properties and shall not be discharged or fully bonded and
there shall have been a period of 60 consecutive days during which a stay of enforcement of such
judgment or order, by reason of an appeal or otherwise, shall not be in effect;

          (g) there shall have been the entry by a court of competent jurisdiction of (i) a decree or
order for relief in respect of the Company or any Significant Restricted Subsidiary in an
involuntary case or proceeding under any applicable Bankruptcy Law or (ii) a decree or order
adjudging the Company or any Significant Restricted Subsidiary bankrupt or insolvent, or seeking
reorganization, arrangement, adjustment or composition of or in respect of the Company or any
Significant Restricted Subsidiary under any applicable federal or state law, or appointing a
custodian, receiver, liquidator, assignee, trustee, sequestrator (or other similar official) of the
Company or any Significant Restricted Subsidiary or of any substantial part of their respective
properties, or ordering the winding up or liquidation of their respective affairs, and any such
decree or order for relief shall continue to be in effect, or any such other decree or order shall
be unstayed and in effect, for a period of 60 consecutive days; or

          (h) (i) the Company or any Significant Restricted Subsidiary commences a voluntary case or
proceeding under any applicable Bankruptcy Law or any other case or proceeding to be adjudicated
bankrupt or insolvent, (ii) the Company or any Significant Restricted Subsidiary consents to the
entry of a decree or order for relief in

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respect of the Company or such Significant Restricted Subsidiary in an involuntary case or
proceeding under any applicable Bankruptcy Law or to the commencement of any bankruptcy or
insolvency case or proceeding against it, (iii) the Company or any Significant Restricted
Subsidiary files a petition or answer or consent seeking reorganization or relief under any
applicable federal or state law, (iv) the Company or any Significant Restricted Subsidiary
(1) consents to the filing of such petition or the appointment of, or taking possession by, a
custodian, receiver, liquidator, assignee, trustee, sequestrator or similar official of the Company
or such Significant Restricted Subsidiary or of any substantial part of their respective
properties, (2) makes an assignment for the benefit of creditors or (3) admits in writing its
inability to pay its debts generally as they become due or (v) the Company or any Significant
Restricted Subsidiary takes any corporate action in furtherance of any such actions in this
paragraph (h).

     Section 502. Acceleration of Maturity; Rescission and Annulment.

          If an Event of Default (other than an Event of Default specified in Sections 501(g) and (h))
shall occur and be continuing with respect to this Indenture, the Trustee or the Holders of not
less than 25% in aggregate principal amount of the Securities then Outstanding may, and the Trustee
at the request of such Holders shall, declare all unpaid principal of, premium, if any, and accrued
interest on all Securities to be due and payable immediately, by a notice in writing to the Company
(and to the Trustee if given by the Holders of the Securities) and upon any such declaration, such
principal, premium, if any, and interest shall become due and payable immediately. If an Event of
Default specified in clause (g) or (h) of Section 501 occurs and is continuing, then all the
Securities shall ipso facto become and be due and payable immediately in an amount equal to the
principal amount of the Securities, together with accrued and unpaid interest, if any, to the date
the Securities become due and payable, without any declaration or other act on the part of the
Trustee or any Holder. Thereupon, the Trustee may, at its discretion, proceed to protect and
enforce the rights of the Holders of the Securities by appropriate judicial proceedings.

          After a declaration of acceleration with respect to the Securities, but before a judgment or
decree for payment of the money due has been obtained by the Trustee as hereinafter in this Article
provided, the Holders of a majority in aggregate principal amount of the Securities Outstanding, by
written notice to the Company and the Trustee, may rescind and annul such declaration and its
consequences if:

          (a) the Company has paid or deposited with the Trustee a sum sufficient to pay

     (i) all sums paid or advanced by the Trustee under this Indenture and the
reasonable compensation, expenses, disbursements and advances of the Trustee, its
agents and counsel,

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     (ii) all overdue interest on all Outstanding Securities,

     (iii) the principal of and premium, if any, on any Outstanding Securities which
have become due otherwise than by such declaration of acceleration and interest
thereon at the rate borne by the Securities, and

     (iv) to the extent that payment of such interest is lawful, interest upon
overdue interest at the rate borne by the Securities;

          (b) the rescission would not conflict with any judgment or decree of a court of competent
jurisdiction; and

          (c) all Events of Default, other than the non-payment of principal of, premium, if any, and
interest on the Securities which have become due solely by such declaration of acceleration, have
been cured or waived as provided in Section 513. No such rescission shall affect any subsequent
Default or impair any right consequent thereon.

     Section 503. Collection of Indebtedness and Suits for Enforcement by Trustee.

          The Company and each Guarantor covenant that if

          (a) default is made in the payment of any interest on any Security when such interest becomes
due and payable and such default continues for a period of 30 days, or

          (b) default is made in the payment of the principal of or premium, if any, on any Security at
the Stated Maturity thereof or otherwise,

the Company and such Guarantor will, upon demand of the Trustee, pay to it, for the benefit of the
Holders of such Securities, the whole amount then due and payable on such Securities for principal
and premium, if any, and interest, with interest upon the overdue principal and premium, if any,
and, to the extent that payment of such interest shall be legally enforceable, upon overdue
installments of interest, at the rate borne by the Securities; and, in addition thereto, such
further amount as shall be sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel.

          If the Company or any Guarantor, as the case may be, fails to pay such amounts forthwith upon
such demand, the Trustee, in its own name and as trustee of an express trust, may institute a
judicial proceeding for the collection of the sums so due and unpaid and may prosecute such
proceeding to judgment or final decree, and may enforce the same against the Company or any
Guarantor or any other obligor upon the Securities and collect the moneys adjudged or decreed to be
payable in the manner provided by law

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out of the property of the Company, any Guarantor or any other obligor upon the Securities,
wherever situated.

          If an Event of Default occurs and is continuing, the Trustee may in its discretion proceed to
protect and enforce its rights and the rights of the Holders under this Indenture or any Guarantee
by such appropriate private or judicial proceedings as the Trustee shall deem most effectual to
protect and enforce such rights, including seeking recourse against any Guarantor pursuant to the
terms of any Guarantee, whether for the specific enforcement of any covenant or agreement in this
Indenture or in aid of the exercise of any power granted herein or therein, or to enforce any other
proper remedy, including, without limitation, seeking recourse against any Guarantor pursuant to
the terms of a Guarantee, or to enforce any other proper remedy, subject however to Section 512.
No recovery of any such judgment upon any property of the Company or any Guarantor shall affect or
impair any rights, powers or remedies of the Trustee or the Holders.

     Section 504. Trustee May File Proofs of Claim.

          In case of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the
Company or any other obligor, including any Guarantor, upon the Securities or the property of the
Company or of such other obligor or their creditors, the Trustee (irrespective of whether the
principal of the Securities shall then be due and payable as therein expressed or by declaration or
otherwise and irrespective of whether the Trustee shall have made any demand on the Company for the
payment of overdue principal or interest) shall be entitled and empowered, by intervention in such
proceeding or otherwise,

          (a) to file and prove a claim for the whole amount of principal, and premium, if any, and
interest owing and unpaid in respect of the Securities and to file such other papers or documents
as may be necessary or advisable in order to have the claims of the Trustee (including any claim
for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel) and of the Holders allowed in such judicial proceeding, and

          (b) to collect and receive any moneys or other property payable or deliverable on any such
claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or similar official in any
such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee
and, in the event that the Trustee shall consent to the making of such payments directly to the
Holders, to pay the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the
Trustee under Section 607.

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          Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to
or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or
composition affecting the Securities or the rights of any Holder thereof, or to authorize the
Trustee to vote in respect of the claim of any Holder in any such proceeding.

     Section 505. Trustee May Enforce Claims without Possession of Securities.

          All rights of action and claims under this Indenture, the Securities or the Guarantees may be
prosecuted and enforced by the Trustee without the possession of any of the Securities or the
production thereof in any proceeding relating thereto, and any such proceeding instituted by the
Trustee shall be brought in its own name and as trustee of an express trust, and any recovery of
judgment shall, after provision for the payment of the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, be for the ratable benefit of
the Holders of the Securities in respect of which such judgment has been recovered.

     Section 506. Application of Money Collected.

          Any money collected by the Trustee pursuant to this Article or otherwise on behalf of the
Holders or the Trustee pursuant to this Article or through any proceeding or any arrangement or
restructuring in anticipation or in lieu of any proceeding contemplated by this Article shall be
applied, subject to applicable law, in the following order, at the date or dates fixed by the
Trustee and, in case of the distribution of such money on account of principal, premium, if any, or
interest, upon presentation of the Securities and the notation thereon of the payment if only
partially paid and upon surrender thereof if fully paid:

          FIRST: To the payment of all amounts due the Trustee under Section 607;

          SECOND: To the payment of the amounts then due and unpaid upon the Securities for principal,
premium, if any, and interest, in respect of which or for the benefit of which such money has been
collected, ratably, without preference or priority of any kind, according to the amounts due and
payable on such Securities for principal, premium, if any, and interest; and

          THIRD: The balance, if any, to the Person or Persons entitled thereto, including the Company,
provided that all sums due and owing to the Holders and the Trustee have been paid in full as
required by this Indenture.

     Section 507. Limitation on Suits.

          No Holder of any Securities shall have any right to institute any proceeding, judicial or
otherwise, with respect to this Indenture or the Securities, or for the appointment of a receiver
or trustee, or for any other remedy hereunder, unless

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          (a) such Holder has previously given written notice to the Trustee of a continuing Event of
Default;

          (b) the Holders of not less than 25% in aggregate principal amount of the Outstanding
Securities shall have made written request to the Trustee to institute proceedings in respect of
such Event of Default in its own name as trustee hereunder;

          (c) such Holder or Holders have offered to the Trustee a reasonable indemnity or furnished
security against the costs, expenses and liabilities to be incurred in compliance with such
request;

          (d) the Trustee for 30 days after its receipt of such notice, request and offer (and if
requested, provision) of indemnity or security has failed to institute any such proceeding; and

          (e) no direction inconsistent with such written request has been given to the Trustee during
such 30-day period by the Holders of a majority in aggregate principal amount of the Outstanding
Securities;

it being understood and intended that no one or more Holders shall have any right in any manner
whatever by virtue of, or by availing of, any provision of this Indenture, any Security or any
Guarantee to affect, disturb or prejudice the rights of any other Holders, or to obtain or to seek
to obtain priority or preference over any other Holders or to enforce any right under this
Indenture, any Security or any Guarantee, except in the manner provided in this Indenture and for
the equal and ratable benefit of all the Holders.

     Section 508. Unconditional Right of Holders to Receive Principal, Premium and
Interest.

          Notwithstanding any other provision in this Indenture, the Holder of any Security shall have
the right based on the terms stated herein, which is absolute and unconditional, to receive payment
of the principal of, premium, if any, and (subject to Section 309) interest on such Security on or
after the respective Stated Maturities expressed in such Security (or, in the case of redemption or
repurchase, on the Redemption Date or the repurchase date) and to institute suit for the
enforcement of any such payment, and such rights shall not be impaired without the consent of such
Holder.

     Section 509. Restoration of Rights and Remedies.

          If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy
under this Indenture or any Guarantee and such proceeding has been discontinued or abandoned for
any reason, or has been determined adversely to the Trustee or to such Holder, then and in every
such case the Company, any Guarantor, any other obligor on the Securities, the Trustee and the
Holders shall, subject to any determination in such proceeding, be restored severally and
respectively to their former

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positions hereunder, and thereafter all rights and remedies of the Trustee and the Holders
shall continue as though no such proceeding had been instituted.

     Section 510. Rights and Remedies Cumulative.

          No right or remedy herein conferred upon or reserved to the Trustee or to the Holders is
intended to be exclusive of any other right or remedy, and every right and remedy shall, to the
extent permitted by law, be cumulative and in addition to every other right and remedy given
hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

     Section 511. Delay or Omission Not Waiver.

          No delay or omission of the Trustee or of any Holder of any Security to exercise any right or
remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a
waiver of any such Event of Default or an acquiescence therein. Every right and remedy given by
this Article or by law to the Trustee or to the Holders may be exercised from time to time, and as
often as may be deemed expedient, by the Trustee or by the Holders, as the case may be.

     Section 512. Control by Holders.

          The Holders of not less than a majority in aggregate principal amount of the Outstanding
Securities shall have the right to direct the time, method and place of conducting any proceeding
for exercising any remedy available to the Trustee, or exercising any trust or power conferred on
the Trustee, provided that

          (a) such direction shall not be in conflict with any rule of law or with this Indenture
(including, without limitation, Section 507) or any Guarantee, expose the Trustee to personal
liability, or be unduly prejudicial to Holders not joining therein; and

          (b) subject to the provisions of Section 315 of the Trust Indenture Act, the Trustee may take
any other action deemed proper by the Trustee which is not inconsistent with such direction.

     Section 513. Waiver of Past Defaults.

          The Holders of not less than a majority in aggregate principal amount of the Outstanding
Securities may on behalf of the Holders of all Outstanding Securities waive any existing or past
Default hereunder and its consequences, except a Default

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          (a) in the payment of the principal of, premium, if any, or interest on any Security (which
may only be waived with the consent of each Holder of the Securities affected); or

          (b) in respect of a covenant or a provision hereof which under this Indenture cannot be
modified or amended without the consent of the Holder of each Security Outstanding affected by such
modification or amendment.

          Upon any such waiver, such Default shall cease to exist, and any Event of Default arising
therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such
waiver shall extend to any subsequent or other Default or impair any right consequent thereon.

     Section 514. Undertaking for Costs.

          All parties to this Indenture agree, and each Holder of any Security by his acceptance thereof
shall be deemed to have agreed, that any court may in its discretion require, in any suit for the
enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any
action taken, suffered or omitted by it as Trustee, the filing by any party litigant in such suit
of an undertaking to pay the costs of such suit, and that such court may in its discretion assess
reasonable costs, including reasonable attorneys’ fees, against any party litigant in such suit,
having due regard to the merits and good faith of the claims or defenses made by such party
litigant, but the provisions of this Section shall not apply to any suit instituted by the Trustee,
to any suit instituted by any Holder, or group of Holders, holding in the aggregate more than 10%
in principal amount of the Outstanding Securities, or to any suit instituted by any Holder for the
enforcement of the payment of the principal of, premium, if any, or interest on, any Security on or
after the respective Stated Maturities expressed in such Security (or, in the case of redemption,
on or after the Redemption Date).

     Section 515. Waiver of Stay, Extension or Usury Laws.

          Each of the Company and the Guarantors covenants (to the extent that it may lawfully do so)
that it will not at any time insist upon, or plead, or in any manner whatsoever claim or take the
benefit or advantage of, any stay or extension law or any usury or other law wherever enacted, now
or at any time hereafter in force, which would prohibit or forgive the Company or any Guarantor
from paying all or any portion of the principal of, premium, if any, or interest on the Securities
contemplated herein or in the Securities or which may affect the covenants or the performance of
this Indenture; and each of the Company and the Guarantors (to the extent that it may lawfully do
so) hereby expressly waives all benefit or advantage of any such law, and covenants that it will
not hinder, delay or impede the execution of any power herein granted to the Trustee, but will
suffer and permit the execution of every such power as though no such law had been enacted.

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     Section 516. Remedies Subject to Applicable Law.

          All rights, remedies and powers provided by this Article Five may be exercised only to the
extent that the exercise thereof does not violate any applicable provision of law in the premises,
and all the provisions of this Indenture are intended to be subject to all applicable mandatory
provisions of law which may be controlling in the premises and to be limited to the extent
necessary so that they will not render this Indenture invalid, unenforceable or not entitled to be
recorded, registered or filed under the provisions of any applicable law.

ARTICLE SIX

THE TRUSTEE

     Section 601. Duties of Trustee.

          Subject to the provisions of Trust Indenture Act Sections 315(a) through 315(d):

          (a) if a Default or an Event of Default has occurred and is continuing, the Trustee shall
exercise such of the rights and powers vested in it by this Indenture and use the same degree of
care and skill in its exercise thereof as a prudent person would exercise or use under the
circumstances in the conduct of his own affairs;

          (b) except during the continuance of a Default or an Event of Default:

     (1) the Trustee need perform only those duties as are specifically set forth in
this Indenture and no covenants or obligations shall be implied in this Indenture
that are adverse to the Trustee; and

     (2) in the absence of bad faith or willful misconduct on its part, the Trustee
may conclusively rely, as to the truth of the statements and the correctness of the
opinions expressed therein, upon certificates or opinions furnished to the Trustee
and conforming to the requirements of this Indenture. However, the Trustee shall
examine the certificates and opinions to determine whether or not they conform to
the requirements of this Indenture;

          (c) the Trustee may not be relieved from liability for its own negligent action, its own
negligent failure to act, or its own willful misconduct, except that:

     (1) this Subsection (c) does not limit the effect of Subsection (b) of this
Section 601;

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     (2) the Trustee shall not be liable for any error of judgment made in good
faith by a Responsible Officer, unless it is proved that the Trustee was negligent
in ascertaining the pertinent facts; and

     (3) the Trustee shall not be liable with respect to any action it takes or
omits to take in good faith, in accordance with a direction of the Holders of a
majority in principal amount of Outstanding Securities relating to the time, method
and place of conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power confirmed upon the Trustee under this Indenture;

          (d) no provision of this Indenture shall require the Trustee to expend or risk its own funds
or otherwise incur any financial liability in the performance of any of its duties hereunder or in
the exercise of any of its rights or powers if it shall have reasonable grounds for believing that
repayment of such funds or adequate indemnity against such risk or liability is not reasonably
assured to it;

          (e) whether or not therein expressly so provided, every provision of this Indenture that in
any way relates to the Trustee is subject to Subsections (a), (b), (c) and (d) and (f) of this
Section 601; and

          (f) the Trustee shall not be liable for interest on any money or assets received by it except
as the Trustee may agree with the Company. Assets held in trust by the Trustee need not be
segregated from other assets except to the extent required by law.

     Section 602. Notice of Defaults.

          Within 30 days after a Responsible Officer of the Trustee receives notice of the occurrence of
any Default, the Trustee shall transmit by mail to all Holders and any other Persons entitled to
receive reports pursuant to Section 313(c) of the Trust Indenture Act, as their names and addresses
appear in the Security Register, notice of such Default hereunder known to the Trustee, unless such
Default shall have been cured or waived; provided, however, that, except in the case of a Default
in the payment of the principal of, premium, if any, or interest on any Security, the Trustee shall
be protected in withholding such notice if and so long as a trust committee of Responsible Officers
of the Trustee in good faith determines that the withholding of such notice is in the interest of
the Holders.

     Section 603. Certain Rights of Trustee.

          Subject to the provisions of Section 601 hereof and Trust Indenture Act Sections
315(a) through 315(d):

          (a) the Trustee may rely and shall be protected in acting or refraining from acting upon
receipt by it of any resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, other

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evidence of Indebtedness or other paper or document believed by it to be genuine and to have
been signed or presented by the proper party or parties;

          (b) any request or direction of the Company mentioned herein shall be sufficiently evidenced
by a Company Request or Company Order and any resolution of the Board of Directors may be
sufficiently evidenced by a Board Resolution;

          (c) the Trustee may consult with counsel of its selection and any advice of such counsel or
any Opinion of Counsel shall be full and complete authorization and protection in respect of any
action taken, suffered or omitted by it hereunder in good faith and in reliance thereon in
accordance with such advice or Opinion of Counsel;

          (d) the Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request or direction of any of the Holders pursuant to this Indenture,
unless such Holders shall have offered to the Trustee security or indemnity satisfactory to the
Trustee against the costs, expenses and liabilities which might be incurred therein;

          (e) the Trustee shall not be liable for any action taken or omitted by it in good faith and
believed by it to be authorized or within the discretion, rights or powers conferred upon it by
this Indenture other than any liabilities arising out of the negligence, bad faith or willful
misconduct of the Trustee;

          (f) the Trustee shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order, approval, appraisal, bond, debenture, note, coupon, security or other paper or
document unless requested in writing to do so by the Holders of not less than a majority in
aggregate principal amount of the Securities then Outstanding; provided that, if the payment within
a reasonable time to the Trustee of the costs, expenses or liabilities likely to be incurred by it
in the making of such investigation is, in the opinion of the Trustee, not reasonably assured to
the Trustee by the security afforded to it by the terms of this Indenture, the Trustee may require
reasonable indemnity against such expenses or liabilities as a condition to proceeding; the
reasonable expenses of every such investigation so requested by the Holders of not less than 25% in
aggregate principal amount of the Securities Outstanding shall be paid by the Company or, if paid
by the Trustee or any predecessor Trustee, shall be repaid by the Company upon demand; provided,
further, the Trustee in its discretion may make such further inquiry or investigation into such
facts or matters as it may deem fit, and, if the Trustee shall determine to make such further
inquiry or investigation, it shall be entitled to examine the books, records and premises of the
Company, personally or by agent or attorney;

          (g) the Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through agents or attorneys and the

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Trustee shall not be responsible for any misconduct or negligence on the part of any agent or
attorney appointed with due care by it hereunder;

          (h) Except with respect to Section 1001, the Trustee shall have no duty to inquire as to the
performance of the Company with respect to the covenants contained in Article 10. In addition, the
Trustee shall not be deemed to have knowledge of an Event of Default except (i) any Default or
Event of Default occurring pursuant to Sections 1001, 501(a) or 50l(b) or (ii) any Default or Event
of Default of which the Trustee shall have received written notification or obtained actual
knowledge; and

          (i) Delivery of reports, information and documents to the Trustee under Section 1019 is for
informational purposes only and the Trustee’s receipt of the foregoing shall not constitute
constructive notice of any information contained therein or determinable from information contained
therein, including the Company’s compliance with any of their covenants hereunder (as to which the
Trustee is entitled to rely exclusively on Officer’s Certificates).

     Section 604. Trustee Not Responsible for Recitals, Dispositions of Securities or
Application of Proceeds Thereof.

          The recitals contained herein and in the Securities, except the Trustee’s certificates of
authentication, shall be taken as the statements of the Company, and the Guarantors, and the
Trustee assumes no responsibility for their correctness. The Trustee makes no representations as
to the validity or sufficiency of this Indenture or of the Securities, except that the Trustee
represents that it is duly authorized to execute and deliver this Indenture, authenticate the
Securities and perform its obligations hereunder and that the statements made by it in any
Statement of Eligibility and Qualification on Form T-1 supplied to the Company are true and
accurate subject to the qualifications set forth therein. The Trustee shall not be accountable for
the use or application by the Company of Securities or the proceeds thereof.

     Section 605. Trustee and Agents May Hold Securities; Collections; etc.

          The Trustee, any Paying Agent, Security Registrar or any other agent of the Company, in its
individual or any other capacity, may become the owner or pledgee of Securities, with the same
rights it would have if it were not the Trustee, Paying Agent, Security Registrar or such other
agent and, subject to Trust Indenture Act Sections 310 and 311, may otherwise deal with the Company
and receive, collect, hold and retain collections from the Company with the same rights it would
have if it were not the Trustee, Paying Agent, Security Registrar or such other agent.

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     Section 606. Money Held in Trust.

          All moneys received by the Trustee shall, until used or applied as herein provided, be held in
trust for the purposes for which they were received, but need not be segregated from other funds
except to the extent required by mandatory provisions of law. Except for funds or securities
deposited with the Trustee pursuant to Article Four, the Trustee shall be required to invest all
moneys received by the Trustee, until used or applied as herein provided, in Temporary Cash
Investments in accordance with the directions of the Company.

     Section 607. Compensation and Indemnification of Trustee and Its Prior Claim.

          The Company covenants and agrees to pay to the Trustee from time to time, and the Trustee
shall be entitled to, such compensation as the parties shall agree in writing from time to time for
all services rendered by it hereunder (which compensation shall not be limited by any provision of
law in regard to the compensation of a trustee of an express trust) and the Company covenants and
agrees to pay or reimburse the Trustee and each predecessor Trustee upon its request for all
reasonable expenses, disbursements and advances incurred or made by or on behalf of the Trustee in
accordance with any of the provisions of this Indenture (including the reasonable compensation and
the expenses and disbursements of its counsel and of all agents and other persons not regularly in
its employ) except any such expense, disbursement or advance as may arise from its negligence, bad
faith or willful misconduct. The Company also covenants and agrees to indemnify the Trustee and
each predecessor Trustee for, and to hold it harmless against, any claim, loss, liability, tax,
assessment or other governmental charge (other than taxes applicable to the Trustee’s compensation
hereunder) or expense incurred without negligence, bad faith or willful misconduct on its part,
arising out of or in connection with the acceptance or administration of this Indenture or the
trusts hereunder and its duties hereunder, including enforcement of this Section 607 and also
including any liability which the Trustee may incur as a result of failure to withhold, pay or
report any tax, assessment or other governmental charge, and the costs and expenses of defending
itself against or investigating any claim or liability in connection with the exercise or
performance of any of its powers or duties hereunder. The obligations of the Company under this
Section 607 to compensate and indemnify the Trustee and each predecessor Trustee and to pay or
reimburse the Trustee and each predecessor Trustee for reasonable expenses, disbursements and
advances shall constitute an additional obligation hereunder and shall survive the satisfaction and
discharge of this Indenture and the resignation or removal of the Trustee and each predecessor
Trustee.

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     Section 608. Conflicting Interests.

          The Trustee shall comply with the provisions of Section 310(b) of the Trust Indenture Act.

     Section 609. Trustee Eligibility.

          There shall at all times be a Trustee hereunder which shall be eligible to act as trustee
under Trust Indenture Act Section 310(a) and is a member of a bank holding company which shall have
a combined capital and surplus of at least $250,000,000, to the extent there is an institution
eligible and willing to serve. If the Trustee does not have a Corporate Trust Office in The City
of New York, the Trustee may appoint an agent in The City of New York reasonably acceptable to the
Company to conduct any activities which the Trustee may be required under this Indenture to conduct
in The City of New York. If such Trustee publishes reports of condition at least annually,
pursuant to law or to the requirements of federal, state, territorial or District of Columbia
supervising or examining authority, then for the purposes of this Section 609, the combined capital
and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published. If at any time the Trustee shall cease to be
eligible in accordance with the provisions of this Section 609, the Trustee shall resign
immediately in the manner and with the effect hereinafter specified in this Article.

     Section 610. Resignation and Removal; Appointment of Successor Trustee.

          (a) No resignation or removal of the Trustee and no appointment of a successor trustee
pursuant to this Article shall become effective until the acceptance of appointment by the
successor trustee under Section 611.

          (b) The Trustee, or any trustee or trustees hereafter appointed, may at any time resign by
giving written notice thereof to the Company no later than 20 Business Days prior to the proposed
date of resignation. Upon receiving such notice of resignation, the Company shall promptly appoint
a successor trustee by written instrument executed by authority of the Board of Directors of the
Company, a copy of which shall be delivered to the resigning Trustee and a copy to the successor
trustee. If an instrument of acceptance by a successor trustee shall not have been delivered to
the Trustee within 30 days after the giving of such notice of resignation, the resigning Trustee
may, or any Holder who has been a bona fide Holder of a Security for at least six months may, on
behalf of himself and all others similarly situated, petition any court of competent jurisdiction
for the appointment of a successor trustee. Such court may thereupon, after such notice, if any,
as it may deem proper, appoint and prescribe a successor trustee.

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          (c) The Trustee may be removed at any time for any cause or for no cause by an Act of the
Holders of not less than a majority in aggregate principal amount of the Outstanding Securities,
delivered to the Trustee and to the Company.

          (d) If at any time:

     (1) the Trustee shall fail to comply with the provisions of Trust Indenture Act
Section 310(b) after written request therefor by the Company or by any Holder who
has been a bona fide Holder of a Security for at least six months,

     (2) the Trustee shall cease to be eligible under Section 609 and shall fail to
resign after written request therefor by the Company or by any Holder who has been a
bona fide Holder of a Security for at least six months, or

     (3) the Trustee shall become incapable of acting or shall be adjudged a
bankrupt or insolvent, or a receiver of the Trustee or of its property shall be
appointed or any public officer shall take charge or control of the Trustee or of
its property or affairs for the purpose of rehabilitation, conservation or
liquidation,

then, in any case, (i) the Company by a Board Resolution may remove the Trustee, or (ii) subject to
Section 514, the Holder of any Security who has been a bona fide Holder of a Security for at least
six months may, on behalf of himself and all others similarly situated, petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a successor trustee.
Such court may thereupon, after such notice, if any, as it may deem proper and prescribe, remove
the Trustee and appoint a successor trustee.

          (e) If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy
shall occur in the office of Trustee for any cause, the Company, by a Board Resolution, shall
promptly appoint a successor trustee and shall comply with the applicable requirements of Section
611. If, within 60 days after such resignation, removal or incapability, or the occurrence of such
vacancy, the Company has not appointed a successor Trustee, a successor trustee shall be appointed
by the Act of the Holders of a majority in principal amount of the Outstanding Securities delivered
to the Company and the retiring Trustee. Such successor trustee so appointed shall forthwith upon
its acceptance of such appointment become the successor trustee and supersede the successor trustee
appointed by the Company. If no successor trustee shall have been so appointed by the Company or
the Holders of the Securities and accepted appointment in the manner hereinafter provided, the
Trustee or the Holder of any Security who has been a bona fide Holder for at least six months may,
subject to Section 514, on behalf of

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himself and all others similarly situated, petition any court of competent jurisdiction for
the appointment of a successor trustee.

          (f) The Company shall give notice of each resignation and each removal of the Trustee and each
appointment of a successor trustee by mailing written notice of such event by first-class mail,
postage prepaid, to the Holders of Securities as their names and addresses appear in the Security
Register. Each notice shall include the name of the successor trustee and the address of its
Corporate Trust Office or agent hereunder.

     Section 611. Acceptance of Appointment by Successor.

          Every successor trustee appointed hereunder shall execute, acknowledge and deliver to the
Company and to the retiring Trustee an instrument accepting such appointment, and thereupon the
resignation or removal of the retiring Trustee shall become effective and such successor trustee,
without any further act, deed or conveyance, shall become vested with all the rights, powers,
trusts and duties of the retiring Trustee as if originally named as Trustee hereunder; but,
nevertheless, on the written request of the Company or the successor trustee, upon payment of its
charges pursuant to Section 607 then unpaid, such retiring Trustee shall pay over to the successor
trustee all moneys at the time held by it hereunder and shall execute and deliver an instrument
transferring to such successor trustee all such rights, powers, duties and obligations. Upon
request of any such successor trustee, the Company shall execute any and all instruments for more
fully and certainly vesting in and confirming to such successor trustee all such rights and powers.

          No successor trustee with respect to the Securities shall accept appointment as provided in
this Section 611 unless at the time of such acceptance such successor trustee shall be eligible to
act as trustee under the provisions of Trust Indenture Act Section 310(a) and this Article Six and
shall have a combined capital and surplus of at least $250,000,000 and have a Corporate Trust
Office or an agent selected in accordance with Section 609.

          Upon acceptance of appointment by any successor trustee as provided in this Section 611, the
Company shall give notice thereof to the Holders of the Securities, by mailing such notice to such
Holders at their addresses as they shall appear on the Security Register. If the acceptance of
appointment is substantially contemporaneous with the appointment, then the notice called for by
the preceding sentence may be combined with the notice called for by Section 610. If the Company
fails to give such notice within 10 days after acceptance of appointment by the successor trustee,
the successor trustee shall cause such notice to be given at the expense of the Company.

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     Section 612. Merger, Conversion, Consolidation or Succession to Business.

          Any corporation into which the Trustee may be merged or converted or with which it may be
consolidated, or any corporation resulting from any merger, conversion or consolidation to which
the Trustee shall be a party, or any corporation succeeding to all or substantially all of the
corporate trust business of the Trustee (including the trust created by this Indenture) shall be
the successor of the Trustee hereunder, provided that such corporation shall be eligible under
Trust Indenture Act Section 310(a) and this Article Six and shall have a combined capital and
surplus of at least $250,000,000 and have a Corporate Trust Office or an agent selected in
accordance with Section 609, without the execution or filing of any paper or any further act on the
part of any of the parties hereto.

          In case at the time such successor to the Trustee shall succeed to the trusts created by this
Indenture any of the Securities shall have been authenticated but not delivered, any such successor
to the Trustee may adopt the certificate of authentication of any predecessor Trustee and deliver
such Securities so authenticated; and, in case at that time any of the Securities shall not have
been authenticated, any successor to the Trustee may authenticate such Securities either in the
name of any predecessor hereunder or in the name of the successor trustee; and in all such cases
such certificate shall have the full force which it is anywhere in the Securities or in this
Indenture provided that the certificate of the Trustee shall have; provided that the right to adopt
the certificate of authentication of any predecessor Trustee or to authenticate Securities in the
name of any predecessor Trustee shall apply only to its successor or successors by merger,
conversion or consolidation.

     Section 613. Preferential Collection of Claims Against Company.

          If and when the Trustee shall be or become a creditor of the Company (or other obligor under
the Securities), the Trustee shall be subject to the provisions of the Trust Indenture Act
regarding the collection of claims against the Company (or any such other obligor). A Trustee who
has resigned or been removed shall be subject to Trust Indenture Act Section 311(a) to the extent
indicated therein.

ARTICLE SEVEN

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

     Section 701. Company to Furnish Trustee Names and Addresses of Holders.

          The Company will furnish or cause to be furnished to the Trustee

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          (a) semiannually, not more than 10 days after each Regular Record Date, a list, in such form
as the Trustee may reasonably require, of the names and addresses of the Holders as of such Regular
Record Date; and

          (b) at such other times as the Trustee may reasonably request in writing, within 30 days after
receipt by the Company of any such request, a list of similar form and content to that in
subsection (a) hereof as of a date not more than 15 days prior to the time such list is furnished;

provided, however, that if and so long as the Trustee shall be the Security Registrar, no such list
need be furnished.

     Section 702. Disclosure of Names and Addresses of Holders.

          Holders may communicate pursuant to Trust Indenture Act Section 312(b) with other Holders with
respect to their rights under this Indenture or the Securities, and the Trustee shall comply with
Trust Indenture Act Section 312(b). The Company, the Trustee, the Security Registrar and any other
Person shall have the protection of Trust Indenture Act Section 312(c). Further, every Holder of
Securities, by receiving and holding the same, agrees with the Company and the Trustee that neither
the Company nor the Trustee or any agent of either of them shall be held accountable by reason of
the disclosure of any information as to the names and addresses of the Holders in accordance with
Trust Indenture Act Section 312, regardless of the source from which such information was derived,
and that the Trustee shall not be held accountable by reason of mailing any material pursuant to a
request made under Trust Indenture Act Section 312.

     Section 703. Reports by Trustee.

          (a) Within 60 days after May 15 of each year commencing with the first May 15 after the
issuance of Securities, the Trustee, if so required under the Trust Indenture Act, shall transmit
by mail to all Holders, in the manner and to the extent provided in Trust Indenture Act Section
313(c), a brief report dated as of such May 15 in accordance with and with respect to the matters
required by Trust Indenture Act Section 313(a). The Trustee shall also transmit by mail to all
Holders, in the manner and to the extent provided in Trust Indenture Act Section 313(c), a brief
report in accordance with and with respect to the matters required by Trust Indenture Act Section
313(b)(2).

          (b) A copy of each report transmitted to Holders pursuant to this Section 703 shall, at the
time of such transmission, be mailed to the Company and filed with each stock exchange, if any,
upon which the Securities are listed and also with the Commission. The Company will notify the
Trustee promptly if the Securities are listed on any stock exchange.

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     Section 704. Reports by Company and Guarantors.

          The Company and each Guarantor, as the case may be, shall:

          (a) file with the Trustee, within 15 days after the Company or any Guarantor, as the case may
be, is required to file the same with the Commission, copies of the annual reports and of the
information, documents and other reports (or copies of such portions of any of the foregoing as the
Commission may from time to time by rules and regulations prescribe) which the Company or any
Guarantor may be required to file with the Commission pursuant to Section 13 or Section 15(d) of
the Exchange Act; or, if the Company or any Guarantor, as the case may be, is not required to file
information, documents or reports pursuant to either of said Sections, then it shall (i) deliver to
the Trustee annual audited financial statements of the Company and its Subsidiaries, prepared on a
Consolidated basis in conformity with GAAP, within 120 days after the end of each fiscal year of
the Company, and (ii) file with the Trustee and, to the extent permitted by law, the Commission, in
accordance with the rules and regulations prescribed from time to time by the Commission, such of
the supplementary and periodic information, documents and reports which may be required pursuant to
Section 13 of the Exchange Act in respect of a security listed and registered on a national
securities exchange as may be prescribed from time to time in such rules and regulations; provided,
however, that documents filed by the Company with the Commission via the EDGAR system (or any
successor system) will be deemed filed with the Trustee as of the time such documents are so filed
via the EDGAR system (or any successor system);

          (b) file with the Trustee and the Commission, in accordance with the rules and regulations
prescribed from time to time by the Commission, such additional information, documents and reports
with respect to compliance by the Company or any Guarantor, as the case may be, with the conditions
and covenants of this Indenture as are required from time to time by such rules and regulations
(including such information, documents and reports referred to in Trust Indenture Act
Section 314(a)); and

          (c) within 15 days after the filing thereof with the Trustee, transmit by mail to all Holders
in the manner and to the extent provided in Trust Indenture Act Section 313(c), such summaries of
any information, documents and reports required to be filed by the Company or any Guarantor, as
the case may be, pursuant to Section 1019 hereunder and subsections (a) and (b) of this Section as
are required by rules and regulations prescribed from time to time by the Commission.

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ARTICLE EIGHT

CONSOLIDATION, MERGER, SALE OF ASSETS

     Section 801. Company and Guarantors May Consolidate, etc., Only on Certain Terms.

          (a) The Company will not, in a single transaction or through a series of related transactions,
consolidate with or merge with or into any other Person or sell, assign, convey, transfer, lease or
otherwise dispose of all or substantially all of its properties and assets to any Person or group
of Persons, or permit any of its Restricted Subsidiaries to enter into any such transaction or
series of related transactions if such transaction or series of related transactions, in the
aggregate, would result in a sale, assignment, conveyance, transfer, lease or disposition of all or
substantially all of the properties and assets of the Company and its Restricted Subsidiaries on a
Consolidated basis to any other Person or group of Persons, unless at the time and after giving
effect thereto:

     (i) either (a) the Company will be the continuing corporation (in the case of a
consolidation or merger involving the Company) or (b) the Person (if other than the
Company) formed by such consolidation or into which the Company is merged or the
Person which acquires by sale, assignment, conveyance, transfer, lease or
disposition all or substantially all of the properties and assets of the Company and
its Restricted Subsidiaries on a Consolidated basis (the “Surviving Entity”) will be
a corporation, partnership, limited liability company, trust or other entity duly
organized and validly existing under the laws of the United States of America, any
state thereof or the District of Columbia and such Person expressly assumes, by a
supplemental indenture, in a form reasonably satisfactory to the Trustee, all the
obligations of the Company under the Securities and this Indenture and the
Registration Rights Agreement, as the case may be, and the Securities and this
Indenture and the Registration Rights Agreement (to the extent any obligations
remain under the Registration Rights Agreement) will remain in full force and effect
as so supplemented;

     (ii) immediately before and immediately after giving effect to such transaction
on a pro forma basis (and treating any Indebtedness not previously an obligation of
the Company or any of its Restricted Subsidiaries which becomes the obligation of
the Company or any of its Restricted Subsidiaries as a result of such transaction as
having been incurred at the time of such transaction), no Default or Event of
Default will have occurred and be continuing;

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     (iii) immediately before and immediately after giving effect to such
transaction on a pro forma basis (on the assumption that the transaction occurred on
the first day of the four-quarter period for which financial statements are
available ending immediately prior to the consummation of such transaction with the
appropriate adjustments with respect to the transaction being included in such pro
forma calculation), the Company (or the Surviving Entity if the Company is not the
continuing obligor hereunder) could incur $1.00 of additional Indebtedness (other
than Permitted Indebtedness) under Section 1008;

     (iv) at the time of the transaction, each Guarantor, if any, unless it is the
other party to the transactions described above, will have by supplemental indenture
confirmed that its Guarantee shall apply to such Person’s obligations under this
Indenture and under the Securities;

     (v) at the time of the transaction if any of the property or assets of the
Company or any of its Restricted Subsidiaries would thereupon become subject to any
Lien, the provisions of Section 1011 are complied with; and

     (vi) at the time of the transaction the Company or the Surviving Entity will
have delivered, or caused to be delivered, to the Trustee, in form and substance
reasonably satisfactory to the Trustee, an Officers’ Certificate and an Opinion of
Counsel, each to the effect that such consolidation, merger, transfer, sale,
assignment, conveyance, transfer, lease or other transaction and the supplemental
indenture in respect thereof comply with this Indenture and that all conditions
precedent herein provided for relating to such transaction have been complied with.

          (b) Each Guarantor will not, and the Company will not permit a Guarantor to, in a single
transaction or through a series of related transactions, consolidate with or merge with or into any
other Person (other than the Company or any Guarantor) or sell, assign, convey, transfer, lease or
otherwise dispose of all or substantially all of its properties and assets on a Consolidated basis
to any Person or group of Persons (other than the Company or any Guarantor), or permit any of its
Restricted Subsidiaries to enter into any such transaction or series of transactions if such
transaction or series of transactions, in the aggregate, would result in a sale, assignment,
conveyance, transfer, lease or disposition of all or substantially all of the properties and assets
of the Guarantor and its Restricted Subsidiaries on a Consolidated basis to any other Person or
group of Persons (other than the Company or any Guarantor), unless at the time and after giving
effect thereto:

     (i) either (1) the Guarantor will be the continuing entity (in the case of a
consolidation or merger involving the Guarantor) or (2) the Person

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(if other than the Guarantor) formed by such consolidation or into which such
Guarantor is merged or the Person which acquires by sale, assignment, conveyance,
transfer, lease or disposition all or substantially all of the properties and assets
of the Guarantor and its Restricted Subsidiaries on a Consolidated basis (the
“Surviving Guarantor Entity”) is duly organized and validly existing under the laws
of the United States of America, any state thereof or the District of Columbia and
such Person expressly assumes, by a supplemental indenture, in a form reasonably
satisfactory to the Trustee, all the obligations of such Guarantor under its
Guarantee of the Securities and this Indenture and the Registration Rights Agreement
(to the extent any obligations remain under the Registration Rights Agreement) and
such Guarantee, Indenture and Registration Rights Agreement will remain in full
force and effect;

     (ii) immediately before and immediately after giving effect to such
transaction, on a pro forma basis, no Default or Event of Default will have occurred
and be continuing; and

     (iii) at the time of the transaction such Guarantor or the Surviving Guarantor
Entity will have delivered, or caused to be delivered, to the Trustee, in form and
substance reasonably satisfactory to the Trustee, an Officers’ Certificate and an
Opinion of Counsel, each to the effect that such consolidation, merger, transfer,
sale, assignment, conveyance, lease or other transaction and the supplemental
indenture in respect thereof comply with this Indenture and that all conditions
precedent therein provided for relating to such transaction have been complied with.

          (c) Notwithstanding the foregoing, the provisions of Section 801(b) shall not apply to any
Guarantor whose Guarantee of the Securities is unconditionally released and discharged in
accordance with paragraph (c) under Section 1013.

          (d) Notwithstanding the foregoing, nothing in the provisions of Sections 801(a) or 801(b)
shall prohibit a merger or consolidation of the Company or any of the Guarantors into an Affiliate
organized in the United States solely for the purpose of changing the entity’s jurisdiction of
organization.

     Section 802. Successor Substituted.

          Upon any consolidation or merger, or any sale, assignment, conveyance, transfer, lease or
disposition of all or substantially all of the properties and assets of the Company or any
Guarantor, if any, in accordance with Section 801, the successor Person formed by such
consolidation or into which the Company or such Guarantor, as the case may be, is not the
continuing corporation or the successor Person formed or remaining or to which such transfer, sale,
assignment, conveyance, lease or other transaction is made

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shall succeed to, and be substituted for, and may exercise every right and power of, the
Company or such Guarantor, as the case may be, under this Indenture, the Securities and/or the
related Guarantee, as the case may be, with the same effect as if such successor had been named as
the Company or such Guarantor, as the case may be, herein, in the Securities and/or in the
Guarantee, as the case may be, and the Company or such Guarantor, as the case may be, shall be
discharged from all obligations and covenants under this Indenture and the Securities or its
Guarantee, as the case may be.

ARTICLE NINE

SUPPLEMENTAL INDENTURES

     Section 901. Supplemental Indentures and Agreements without Consent of Holders.

          Without the consent of any Holders, the Company, the Guarantors, if any, and any other obligor
under the Securities when authorized by a Board Resolution, and the Trustee, at any time and from
time to time, may enter into one or more indentures supplemental hereto or agreements or other
instruments with respect to this Indenture, the Securities or any Guarantee, in form and substance
satisfactory to the Trustee, for any of the following purposes:

          (a) to evidence the succession of another Person to the Company or a Guarantor or any other
obligor upon the Securities, and the assumption by any such successor of the covenants of the
Company or such Guarantor or obligor herein and in the Securities and in any Guarantee in
accordance with Article Eight;

          (b) to add to the covenants of the Company, any Guarantor or any other obligor upon the
Securities for the benefit of the Holders, or to surrender any right or power conferred upon the
Company or any Guarantor or any other obligor upon the Securities, as applicable, herein, in the
Securities or in any Guarantee;

          (c) to cure any ambiguity, or to correct or supplement any provision herein or in any
supplemental indenture, the Securities or any Guarantee which may be defective or inconsistent with
any other provision herein or in the Securities or any Guarantee or to make any other provisions
with respect to matters or questions arising under this Indenture, the Securities or the
Guarantees; provided that, in each case, such provisions shall not adversely affect the interest of
the Holders;

          (d) to make any change to conform this Indenture, the Securities or any Guarantee to the
description thereof provided to investors in connection with the initial offering of the
Securities;

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          (e) to comply with the requirements of the Commission in order to effect or maintain the
qualification of this Indenture under the Trust Indenture Act, as contemplated by Section 905 or
otherwise;

          (f) to add a Guarantor pursuant to the requirements of Section 1013 hereof or otherwise;

          (g) to evidence and provide the acceptance of the appointment of a successor Trustee
hereunder; or

          (h) to mortgage, pledge, hypothecate or grant a security interest in favor of the Trustee for
the benefit of the Holders as additional security for the payment and performance of the Company’s
or any Guarantor’s Indenture Obligations, in any property, or assets, including any of which are
required to be mortgaged, pledged or hypothecated, or in which a security interest is required to
be granted to the Trustee pursuant to this Indenture or otherwise.

     Section 902. Supplemental Indentures and Agreements with Consent of Holders.

          Except as permitted by Section 901, with the consent of the Holders of not less than a
majority in aggregate principal amount of the Outstanding Securities (including consents obtained
in connection with a tender offer or exchange offer for Securities), by Act of said Holders
delivered to the Company, each Guarantor, if any, and the Trustee, the Company and each Guarantor
(if a party thereto) when authorized by or pursuant to Board Resolutions, and the Trustee may (i)
enter into an indenture or indentures supplemental hereto or agreements or other instruments with
respect to any Guarantee in form and substance satisfactory to the Trustee, for the purpose of
adding any provisions to or amending, modifying or changing in any manner or eliminating any of the
provisions of this Indenture, the Securities or any Guarantee (including but not limited to, for
the purpose of modifying in any manner the rights of the Holders under this Indenture, the
Securities or any Guarantee) or (ii) waive compliance with any provision in this Indenture, the
Securities or any Guarantee (other than waivers of past Defaults covered by Section 513 and waivers
of covenants which are covered by Section 1021); provided, however, that no such supplemental
indenture, agreement or instrument shall, without the consent of the Holder of each Outstanding
Security affected thereby:

          (a) change the Stated Maturity of the principal of, or any installment of interest on, or
change to an earlier date any Redemption Date of, or waive a default in the payment of the
principal of, premium, if any, or interest on, any such Security or reduce the principal amount
thereof or the rate of interest thereon or any premium payable upon the redemption thereof, or
change the coin or currency in which the principal of any Security or any premium or the interest
thereon is payable, or impair the right to institute

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suit for the enforcement of any such payment on or after the Stated Maturity thereof (or, in
the case of redemption, on or after the Redemption Date);

          (b) amend, change or modify the obligation of the Company to make and consummate an Offer with
respect to any Asset Sale or Asset Sales in accordance with Section 1012 or the obligation of the
Company to make and consummate a Change of Control Offer in the event of a Change of Control in
accordance with Section 1014, including, in each case, amending, changing or modifying any
definitions relating thereto but only to the extent such definitions relate thereto;

          (c) reduce the percentage in principal amount of the Outstanding Securities, the consent of
whose Holders is required for any such supplemental indenture, or the consent of whose Holders is
required for any waiver or compliance with certain provisions of this Indenture;

          (d) modify any of the provisions of this Section 902 or Section 513 or 1021, except to
increase the percentage of such Outstanding Securities required for any such actions or to provide
that certain other provisions of this Indenture cannot be modified or waived without the consent of
the Holder of each such Security affected thereby;

          (e) except as otherwise permitted under Article Eight, consent to the assignment or transfer
by the Company or any Guarantor of any of its rights and obligations hereunder; or

          (f) amend or modify any of the provisions of this Indenture that subordinates the Securities
issued hereunder in right of payment to any other Indebtedness of the Company or which subordinates
any Guarantee in right of payment to any other Indebtedness of the Guarantor issuing such
Guarantee.

          Upon the written request of the Company and each Guarantor, if any, accompanied by a copy of
Board Resolutions authorizing the execution of any such supplemental indenture or Guarantee, and
upon the filing with the Trustee of evidence of the consent of Holders as aforesaid, the Trustee
shall join with the Company and each Guarantor in the execution of such supplemental indenture or
Guarantee.

          It shall not be necessary for any Act of Holders under this Section 902 to approve the
particular form of any proposed supplemental indenture or Guarantee or agreement or instrument
relating to any Guarantee, but it shall be sufficient if such Act shall approve the substance
thereof.

     Section 903. Execution of Supplemental Indentures and Agreements.

          In executing, or accepting the additional trusts created by, any supplemental indenture,
agreement, instrument or waiver permitted by this Article Nine or the

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modifications thereby of the trusts created by this Indenture, the Trustee shall be entitled
to receive, and (subject to Trust Indenture Act Sections 315(a) through 315(d) and Section 603(a)
hereof) shall be fully protected in relying upon, an Opinion of Counsel and an Officers’
Certificate stating that the execution of such supplemental indenture, agreement or instrument (a)
is authorized or permitted by this Indenture and (b) does not violate the provisions of any
agreement or instrument evidencing any other Indebtedness of the Company, any Guarantor or any
other Restricted Subsidiary. The Trustee may, but shall not be obligated to, enter into any such
supplemental indenture, agreement or instrument which affects the Trustee’s own rights, duties or
immunities under this Indenture, any Guarantee or otherwise.

     Section 904. Effect of Supplemental Indentures.

          Upon the execution of any supplemental indenture under this Article, this Indenture shall be
modified in accordance therewith, and such supplemental indenture shall form a part of this
Indenture for all purposes; and every Holder of Securities theretofore or thereafter authenticated
and delivered hereunder shall be bound thereby.

     Section 905. Conformity with Trust Indenture Act.

          Every supplemental indenture executed pursuant to this Article Nine shall conform to the
requirements of the Trust Indenture Act as then in effect.

     Section 906. Reference in Securities to Supplemental Indentures.

          Securities authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article Nine may, and shall if required by the Trustee, bear a notation in form
approved by the Trustee as to any matter provided for in such supplemental indenture. If the
Company shall so determine, new Securities so modified as to conform, in the opinion of the Trustee
and the Board of Directors, to any such supplemental indenture may be prepared and executed by the
Company and each Guarantor and authenticated and delivered by the Trustee in exchange for
Outstanding Securities.

     Section 907. Notice of Supplemental Indentures.

          Promptly after the execution by the Company, any Guarantor and the Trustee of any supplemental
indenture pursuant to the provisions of Section 902, the Company shall give notice thereof to the
Holders of each Outstanding Security affected, in the manner provided for in Section 106, setting
forth in general terms the substance of such supplemental indenture. Any failure of the Company to
mail such notice, or any defect therein, shall not, however, in any way impair or affect the
validity of any such supplemental indenture.

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ARTICLE TEN

COVENANTS

     Section 1001. Payment of Principal, Premium and Interest.

          The Company shall duly and punctually pay the principal of, premium, if any, and interest on
the Securities in accordance with the terms of the Securities and this Indenture.

     Section 1002. Maintenance of Office or Agency.

          The Company shall maintain an office or agency where Securities may be presented or
surrendered for payment. The Company also will maintain in The City of New York an office or
agency where Securities may be surrendered for registration of transfer, redemption or exchange and
where notices and demands to or upon the Company in respect of the Securities and this Indenture
may be served. The office of the Trustee, at its Corporate Trust Office initially located at 100
Wall Street, Suite 1600, New York, New York, 10005, will be such office or agency of the Company,
unless the Company shall designate and maintain some other office or agency for one or more of such
purposes. The Company will give prompt written notice to the Trustee of the location and any
change in the location of any such offices or agencies. If at any time the Company shall fail to
maintain any such required offices or agencies or shall fail to furnish the Trustee with the
address thereof, such presentations, surrenders, notices and demands may be made or served at the
office of the Trustee and the Company hereby appoints the Trustee such agent as its agent to
receive all such presentations, surrenders, notices and demands.

          The Company may from time to time designate one or more other offices or agencies (in or
outside of The City of New York) where the Securities may be presented or surrendered for any or
all such purposes, and may from time to time rescind such designation. The Company will give
prompt written notice to the Trustee of any such designation or rescission and any change in the
location of any such office or agency.

          The Trustee shall initially act as Paying Agent for the Securities.

     Section 1003. Money for Security Payments to Be Held in Trust.

          If the Company or any of its Affiliates shall at any time act as Paying Agent, it will, on or
before each due date of the principal of, premium, if any, or interest on any of the Securities,
segregate and hold in trust for the benefit of the Holders entitled thereto a sum sufficient to pay
the principal, premium, if any, or interest so becoming due

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until such sums shall be paid to such Persons or otherwise disposed of as herein provided, and
will promptly notify the Trustee of its action or failure so to act.

          If the Company or any of its Affiliates is not acting as Paying Agent, the Company will, on or
before each due date of the principal of, premium, if any, or interest on any of the Securities,
deposit with a Paying Agent a sum in same day funds sufficient to pay the principal, premium, if
any, or interest so becoming due, such sum to be held in trust for the benefit of the Persons
entitled to such principal, premium or interest, and (unless such Paying Agent is the Trustee) the
Company will promptly notify the Trustee of such action or any failure so to act.

          If the Company is not acting as Paying Agent, the Company will cause each Paying Agent other
than the Trustee to execute and deliver to the Trustee an instrument in which such Paying Agent
shall agree with the Trustee, subject to the provisions of this Section, that such Paying Agent
will:

          (a) hold all sums held by it for the payment of the principal of, premium, if any, or interest
on the Securities in trust for the benefit of the Persons entitled thereto until such sums shall be
paid to such Persons or otherwise disposed of as herein provided;

          (b) give the Trustee notice of any Default by the Company or any Guarantor (or any other
obligor upon the Securities) in the making of any payment of principal, premium, if any, or
interest on the Securities;

          (c) at any time during the continuance of any such Default, upon the written request of the
Trustee, forthwith pay to the Trustee all sums so held in trust by such Paying Agent; and

          (d) acknowledge, accept and agree to comply in all aspects with the provisions of this
Indenture relating to the duties, rights and liabilities of such Paying Agent.

          The Company may at any time, for the purpose of obtaining the satisfaction and discharge of
this Indenture or for any other purpose, pay, or by Company Order direct any Paying Agent to pay,
to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be held by
the Trustee upon the same trusts as those upon which such sums were held by the Company or such
Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be
released from all further liability with respect to such money.

          Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in
trust for the payment of the principal of, premium, if any, or interest on any Security and
remaining unclaimed for two years after such principal and premium,

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if any, or interest has become due and payable shall promptly be paid to the Company on
Company Request, or (if then held by the Company) shall be discharged from such trust; and the
Holder of such Security shall thereafter, as an unsecured general creditor, look only to the
Company for payment thereof, and all liability of the Trustee or such Paying Agent with respect to
such trust money, and all liability of the Company as trustee thereof, shall thereupon cease;
provided, however, that the Trustee or such Paying Agent, before being required to make any such
repayment, may at the expense of the Company cause to be published once, in the New York
Times and The Wall Street Journal (national edition), and mail to each such Holder,
notice that such money remains unclaimed and that, after a date specified therein, which shall not
be less than 30 days from the date of such notification, publication and mailing, any unclaimed
balance of such money then remaining will promptly be repaid to the Company.

     Section 1004. Corporate Existence.

          Subject to Article Eight, the Company shall do or cause to be done all things necessary to
preserve and keep in full force and effect the corporate existence and related rights and
franchises (charter and statutory) of the Company and each Restricted Subsidiary; provided,
however, that the Company shall not be required to preserve any such right or franchise or the
corporate existence of any such Restricted Subsidiary if the Board of Directors of the Company
shall determine that the preservation thereof is no longer necessary or desirable in the conduct of
the business of the Company and its Restricted Subsidiaries as a whole; and provided, further,
however, that the foregoing shall not prohibit a sale, transfer or conveyance of a Restricted
Subsidiary or any of its assets in compliance with the terms of this Indenture.

     Section 1005. Payment of Taxes and Other Claims.

          The Company shall pay or discharge or cause to be paid or discharged, on or before the date
the same shall become due and payable, (a) all taxes, assessments and governmental charges levied
or imposed upon the Company or any of its Restricted Subsidiaries shown to be due on any return of
the Company or any of its Restricted Subsidiaries or otherwise assessed or upon the income, profits
or property of the Company or any of its Restricted Subsidiaries if failure to pay or discharge the
same could reasonably be expected to have a material adverse effect on the ability of the Company
or any Guarantor to perform its obligations hereunder and (b) all lawful claims for labor,
materials and supplies, which, if unpaid, would by law become a Lien upon the property of the
Company or any of its Restricted Subsidiaries, except for any Lien permitted to be incurred under
Section 1011, if failure to pay or discharge the same could reasonably be expected to have a
material adverse effect on the ability of the Company or any Guarantor to perform its obligations
hereunder; provided, however, that the Company shall not be required to pay or discharge or cause
to be paid or discharged any such tax, assessment, charge or claim whose amount, applicability or
validity is being contested in good faith by appropriate proceedings properly instituted and
diligently conducted and in

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respect of which appropriate reserves (in the good faith judgment of management of the
Company) are being maintained in accordance with GAAP.

     Section 1006. Maintenance of Properties.

          The Company shall cause all material properties owned by the Company or any of its Restricted
Subsidiaries or used or held for use in the conduct of its business or the business of any of its
Restricted Subsidiaries to be maintained and kept in good condition, repair and working order
(ordinary wear and tear excepted) and supplied with all necessary equipment and will cause to be
made all necessary repairs, renewals, replacements, betterments and improvements thereof, all as in
the reasonable judgment of the Company may be consistent with sound business practice and necessary
so that the business carried on in connection therewith may be properly conducted at all times;
provided, however, that nothing in this Section shall prevent the Company from discontinuing the
maintenance of any of such properties if such discontinuance is in the ordinary course of business
or, in the reasonable judgment of the Company, desirable in the conduct of its business or the
business of any of its Restricted Subsidiaries; and provided, further, however, that the foregoing
shall not prohibit a sale, transfer or conveyance of a Restricted Subsidiary or any of its
properties or assets in compliance with the terms of this Indenture.

     Section 1007. Maintenance of Insurance.

          The Company shall at all times keep all of its and its Restricted Subsidiaries’ properties
which are of an insurable nature insured with insurers, believed by the Company in good faith to be
financially sound and responsible, against loss or damage to the extent that property of similar
character is usually so insured by corporations similarly situated and owning like properties in
the same general geographic areas in which the Company and its Restricted Subsidiaries operate,
except where the failure to do so could not reasonably be expected to have a material adverse
effect on the condition (financial or otherwise), earnings, business affairs or prospects of the
Company and its Restricted Subsidiaries, taken as a whole.

     Section 1008. Limitation on Indebtedness.

          The Company will not, and will not cause or permit any of its Restricted Subsidiaries to,
create, issue, incur, assume, guarantee or otherwise in any manner become directly or indirectly
liable for the payment of or otherwise incur, contingently or otherwise (collectively, “incur”),
any Indebtedness (including any Acquired Indebtedness), unless such Indebtedness is incurred by the
Company or any Guarantor or constitutes Acquired Indebtedness of a Restricted Subsidiary and, in
each case, the Company’s Consolidated Fixed Charge Coverage Ratio for the most recent four full
fiscal quarters for which financial statements are available immediately preceding the

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incurrence of such Indebtedness taken as one period is at least equal to or greater than
2.00:1.

          Notwithstanding the foregoing, the Company and, to the extent specifically set forth below,
the Restricted Subsidiaries may incur each and all of the following (collectively, the “Permitted
Indebtedness”):

          (i) Indebtedness of the Company and the Guarantors under any Credit Facility in an aggregate
principal amount at any one time outstanding not to exceed the greater of (a) $550.0 million or (b)
20% of the Company’s Consolidated Tangible Assets, in any case under any Credit Facility or in
respect of letters of credit thereunder;

          (ii) Indebtedness of the Company and the Guarantors under Mortgage Loans in an amount not to
exceed $200.0 million at any time outstanding;

          (iii) Indebtedness of the Company and the Guarantors under any Inventory Facility, whether or
not an Inventory Facility under any Credit Facility;

          (iv) Indebtedness of the Company or any Restricted Subsidiary outstanding on the Issue Date,
and listed on Schedule I to the Indenture to the extent constituting Indebtedness, and not
otherwise referred to in this definition of Permitted Indebtedness;

          (v) Indebtedness of the Company owing to a Restricted Subsidiary; provided that any
Indebtedness of the Company owing to a Restricted Subsidiary that is not a Guarantor is made
pursuant to an intercompany note and is unsecured and is subordinated in right of payment from and
after such time as the Securities shall become due and payable (whether at Stated Maturity,
acceleration or otherwise) to the payment and performance of the Company’s obligations under the
Securities; provided, further, that any disposition, pledge or transfer of any such Indebtedness to
a Person (other than a disposition, pledge or transfer to a Restricted Subsidiary) shall be deemed
to be an incurrence of such Indebtedness by the Company or other obligor not permitted by this
clause (v);

          (vi) Indebtedness of a Restricted Subsidiary owing to the Company or another Restricted
Subsidiary; provided that any such Indebtedness is made pursuant to an intercompany loan note;
provided, further, that (a) any disposition, pledge or transfer of any such Indebtedness to a
Person (other than a disposition, pledge or transfer to the Company or a Restricted Subsidiary)
shall be deemed to be an incurrence of such Indebtedness by the obligor not permitted by this
clause (vi), and (b) any transaction pursuant to which any Restricted Subsidiary, which has
Indebtedness owing to the Company or any other Restricted Subsidiary, ceases to be a Restricted
Subsidiary shall be deemed to be the incurrence of Indebtedness by such Restricted Subsidiary that
is not permitted by this clause (vi);

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          (vii) guarantees of any Restricted Subsidiary made in accordance with the provisions of
Section 1013; provided that the Indebtedness of the Company or any Restricted Subsidiary subject to
such guarantee was permitted to be incurred;

          (viii) obligations of the Company or any Guarantor entered into in the ordinary course of
business (a) pursuant to Interest Rate Agreements designed to protect the Company or any Restricted
Subsidiary against fluctuations in interest rates in respect of Indebtedness of the Company or any
Restricted Subsidiary as long as such obligations do not exceed the aggregate principal amount of
such Indebtedness then outstanding, (b) under any Currency Hedging Agreements, relating to (i)
Indebtedness of the Company or any Restricted Subsidiary and/or (ii) obligations to purchase or
sell assets or properties, in each case, incurred in the ordinary course of business of the Company
or any Restricted Subsidiary; provided, however, that such Currency Hedging Agreements do not
increase the Indebtedness or other obligations of the Company or any Restricted Subsidiary
outstanding other than as a result of fluctuations in foreign currency exchange rates or by reason
of fees, indemnities and compensation payable thereunder or (c) under any Commodity Price
Protection Agreements which do not increase the amount of Indebtedness or other obligations of the
Company or any Restricted Subsidiary outstanding other than as a result of fluctuations in
commodity prices or by reason of fees, indemnities and compensation payable thereunder;

          (ix) Indebtedness of the Company or any Restricted Subsidiary represented by Capital Lease
Obligations or Purchase Money Obligations or other Indebtedness incurred or assumed in connection
with the acquisition or development of real or personal, movable or immovable, property in each
case incurred for the purpose of financing or refinancing all or any part of the purchase price or
cost of construction or improvement of property used in the business of the Company, in an
aggregate principal amount pursuant to this clause (ix) not to exceed $35.0 million outstanding at
any time; provided that the principal amount of any Indebtedness permitted under this clause (ix)
did not in each case at the time of incurrence exceed the Fair Market Value, as determined by the
Company in good faith, of the acquired or constructed asset or improvement so financed;

          (x) obligations arising from agreements by the Company or a Restricted Subsidiary to provide
for indemnification, customary purchase price closing adjustments, earn-outs or other similar
obligations, in each case, incurred in connection with the acquisition or disposition of any
business or assets of a Restricted Subsidiary;

          (xi) Indebtedness in the ordinary course of business to support the Company’s or a Restricted
Subsidiary’s insurance or self-insurance obligations for workers’ compensation and other similar
insurance coverages;

          (xii) guarantees by the Company or a Guarantor of Indebtedness of a Restricted Subsidiary that
was permitted to be incurred under this Section 1008;

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          (xiii) any renewals, extensions, substitutions, refundings, refinancings or replacements
(collectively, a “refinancing”) of any Indebtedness incurred pursuant to the first paragraph of
this Section 1008 or described in clause (iv) (other than an aggregate principal amount of 8.625%
Securities redeemed or repurchased with proceeds from the sale of the Securities) or clause (xviii)
of this definition of “Permitted Indebtedness,” including any successive refinancings so long as
the borrower under such refinancing is the Company or, if not the Company, the same as the borrower
of the Indebtedness being refinanced and the aggregate principal amount of Indebtedness represented
thereby (or if such Indebtedness provides for an amount less than the principal amount thereof to
be due and payable upon a declaration of acceleration of the maturity thereof, the original issue
price of such Indebtedness plus any accreted value attributable thereto since the original issuance
of such Indebtedness) does not exceed the initial principal amount of such Indebtedness plus the
lesser of (I) the stated amount of any premium or other payment required to be paid in connection
with such a refinancing pursuant to the terms of the Indebtedness being refinanced or (II) the
amount of premium or other payment actually paid at such time to refinance the Indebtedness, plus,
in either case, the amount of expenses of the Company incurred in connection with such refinancing
and (A) in the case of any refinancing of Indebtedness that is Subordinated Indebtedness, such new
Indebtedness is made subordinated to the Securities at least to the same extent as the Indebtedness
being refinanced and (B) in the case of Pari Passu Indebtedness or Subordinated Indebtedness, as
the case may be, such refinancing does not reduce the Average Life to Stated Maturity or the Stated
Maturity of such Indebtedness;

          (xiv) Indebtedness of the Company or any of its Restricted Subsidiaries arising from the
honoring by a bank or other financial institution of a check, draft or similar instrument
inadvertently (except in the case of daylight overdrafts) drawn against insufficient funds in the
ordinary course of business; provided, however, that such Indebtedness is extinguished within five
Business Days of occurrence;

          (xv) Indebtedness of the Company or any Guarantor to the extent the net proceeds thereof are
promptly deposited to (a) defease the Securities as described in Article Four or (b) redeem the
Securities as described in Article Eleven;

          (xvi) shares of Preferred Stock of a Restricted Subsidiary issued to the Company or a
Wholly-Owned Restricted Subsidiary of the Company; provided that any subsequent transfer of any
such shares of Preferred Stock (except to the Company or a Wholly-Owned Restricted Subsidiary of
the Company) shall be deemed to be an issuance of Preferred Stock that was not permitted by this
clause (xvi);

          (xvii) Indebtedness of the Company and its Restricted Subsidiaries or any Guarantor in
addition to that described in clauses (i) through (xvi) above and clause (xviii) below, and any
renewals, extensions, substitutions, refinancings or replacements of such Indebtedness, so long as
the aggregate principal amount of all such Indebtedness shall not exceed $40.0 million outstanding
at any one time in the aggregate; and

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          (xviii) Indebtedness of the Company pursuant to the Securities issued on the date of the
Indenture (and any Series B Securities issued in exchange therefor) and Indebtedness of any
Guarantor pursuant to a Guarantee of the Securities issued on the date of the Indenture (and any
Series B Securities issued in exchange therefor).

          For purposes of determining compliance with this Section 1008, in the event that an item of
Indebtedness meets the criteria of more than one of the types of Indebtedness permitted by this
Section 1008, the Company in its sole discretion shall classify or reclassify such item of
Indebtedness and only be required to include the amount of such Indebtedness as one of such types.
The Company may also divide and classify such item of Indebtedness in more than one of the types of
Indebtedness described above. Accrual of interest, accretion or amortization of original issue
discount and the payment of interest on any Indebtedness in the form of additional Indebtedness
with the same terms, and the payment of dividends on any Redeemable Capital Stock or Preferred
Stock in the form of additional shares of the same class of Redeemable Capital Stock or Preferred
Stock will not be deemed to be an incurrence of Indebtedness for purposes of this Section 1008
provided, in each such case, that the amount thereof as accrued over time is included in the
Consolidated Fixed Charge Coverage Ratio of the Company.

     Section 1009. Limitation on Restricted Payments.

     (a) The Company will not, and will not cause or permit any Restricted Subsidiary to, directly
or indirectly:

	 	(i)	 	declare or pay any dividend on, or make any distribution to
holders of, any shares of the Company’s Capital Stock (other than dividends or
distributions payable solely in shares of its Qualified Capital Stock or in
options, warrants or other rights to acquire shares of such Qualified Capital
Stock);
	 
	 	(ii)	 	purchase, redeem, defease or otherwise acquire or retire for
value, directly or indirectly, the Company’s Capital Stock or any Capital Stock
of any Affiliate of the Company, including any Subsidiary of the Company (other
than Capital Stock of any Restricted Subsidiary of the Company), or options,
warrants or other rights to acquire such Capital Stock;
	 
	 	(iii)	 	make any principal payment on, or repurchase, redeem, defease,
retire or otherwise acquire for value, prior to any scheduled principal
payment, sinking fund payment or maturity, any Subordinated Indebtedness;

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	 	(iv)	 	declare or pay any dividend or distribution on any Capital
Stock of any Restricted Subsidiary to any Person (other than (a) to the Company
or any of its Wholly-Owned Restricted Subsidiaries or (b) dividends or
distributions made by a Restricted Subsidiary (i) organized as a partnership,
limited liability company or similar pass-through entity to the holders of its
Capital Stock in amounts sufficient to satisfy the tax liabilities arising from
their ownership of such Capital Stock or (ii) on a pro rata basis to all
stockholders of such Restricted Subsidiary); or
	 
	 	(v)	 	make any Investment in any Person (other than any Permitted
Investments)

(any of the foregoing actions described in clauses (i) through (v), other than any such action that
is a Permitted Payment (as defined below), collectively, “Restricted Payments”) (the amount of any
such Restricted Payment, if other than cash, shall be the Fair Market Value of the assets proposed
to be transferred, as determined by the Board of Directors of the Company, whose determination
shall be conclusive and evidenced by a board resolution), unless (1) immediately before and
immediately after giving effect to such proposed Restricted Payment on a pro forma basis, no
Default or Event of Default shall have occurred and be continuing and such Restricted Payment shall
not be an event which is, or after notice or lapse of time or both, would be, an “event of default”
under the terms of any Indebtedness of the Company or its Restricted Subsidiaries; (2) immediately
before and immediately after giving effect to such Restricted Payment on a pro forma basis, the
Company could incur $1.00 of additional Indebtedness (other than Permitted Indebtedness) under
Section 1008 herein; and (3) after giving effect to the proposed Restricted Payment, the aggregate
amount of all such Restricted Payments declared or made after the Issue Date and all Designation
Amounts does not exceed the sum of:

	 	(A)	 	50% of the aggregate Consolidated Net Income of the Company accrued on a
cumulative basis during the period beginning on the first day of the Company’s fiscal
quarter during which the Issue Date fell and ending on the last day of the Company’s
last fiscal quarter ending prior to the date of the Restricted Payment, or, if such
aggregate cumulative Consolidated Net Income shall be a loss, minus 100% of such loss;
	 
	 	(B)	 	the aggregate Net Cash Proceeds and the Fair Market Value of assets other than
cash received after the Issue Date by the Company either (x) as capital contributions
in the form of common equity to the Company or (y) from the issuance or sale (other
than to any of its Subsidiaries) of Qualified Capital Stock of the Company or any
options, warrants or rights to purchase such Qualified Capital Stock of the Company
(except, in each case, to the extent such proceeds are used to purchase, redeem or
otherwise retire Capital

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	 	 	 	Stock or Subordinated Indebtedness as set forth below in clause (ii) or (iii) of
paragraph (b) below) (and excluding the Net Cash Proceeds and the Fair Market Value
of assets other than cash received from the issuance of Qualified Capital Stock
financed, directly or indirectly, using funds borrowed from the Company or any
Subsidiary until and to the extent such borrowing is repaid);
	 
	 	(C)	 	the aggregate Net Cash Proceeds and the Fair Market Value of assets other than
cash received after the Issue Date by the Company (other than from any of its
Subsidiaries) upon the exercise of any options, warrants or rights to purchase
Qualified Capital Stock of the Company (and excluding the Net Cash Proceeds and the
Fair Market Value of assets other than cash received from the exercise of any options,
warrants or rights to purchase Qualified Capital Stock financed, directly or
indirectly, using funds borrowed from the Company or any Subsidiary until and to the
extent such borrowing is repaid);
	 
	 	(D)	 	the aggregate Net Cash Proceeds and the Fair Market Value of assets other than
cash received after the Issue Date by the Company from the conversion or exchange, if
any, of debt securities or Redeemable Capital Stock of the Company or its Restricted
Subsidiaries into or for Qualified Capital Stock of the Company plus, to the extent
such debt securities or Redeemable Capital Stock were issued after the Issue Date, upon
the conversion or exchange of such debt securities or Redeemable Capital Stock, the
aggregate of Net Cash Proceeds and the Fair Market Value of assets other than cash
received from their original issuance (and excluding the Net Cash Proceeds and the Fair
Market Value of assets other than cash received from the conversion or exchange of debt
securities or Redeemable Capital Stock financed, directly or indirectly, using funds
borrowed from the Company or any Subsidiary until and to the extent such borrowing is
repaid);
	 
	 	(E)	 	(a) in the case of the disposition or repayment of any Investment constituting
a Restricted Payment made after the Issue Date, an amount (to the extent not included
in Consolidated Net Income) equal to (a) the lesser of (i) the return of capital with
respect to such Investment and (ii) the initial amount of such Investment, in either
case, less the cost of the disposition of such Investment and net of taxes, and (b) in
the case of the designation of an Unrestricted Subsidiary as a Restricted Subsidiary or
an Unrestricted Subsidiary ceasing to be an Unrestricted Subsidiary for purposes of
this Indenture (in each case, as long as the designation of such Subsidiary as an
Unrestricted Subsidiary was deemed a Restricted Payment), the Fair Market Value of the
Company’s interest in such Subsidiary provided that such

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	 	 	 	amount shall not in any case exceed the amount of the Restricted Payment deemed made
at the time the Subsidiary was designated as an Unrestricted Subsidiary; and
	 
	 	(F)	 	any amount which previously qualified as a Restricted Payment on account of any
Guarantee entered into by the Company or any Restricted Subsidiary; provided that such
Guarantee has not been called upon and the obligation arising under such Guarantee no
longer exists.

     (b) Notwithstanding the foregoing, and in the case of clauses (ii) through (iv) below, so long
as no Default or Event of Default is continuing or would arise therefrom, the foregoing provisions
shall not prohibit the following actions (each of clauses (i) through (iv) and (vii) through (xiii)
being referred to as a “Permitted Payment”):

	 	(i)	 	the payment of any dividend within 60 days
after the date of declaration thereof, if at such date of declaration
such payment was permitted by the provisions of paragraph (a) of this
Section and such payment shall have been deemed to have been paid on
the date of declaration and shall not have been deemed a “Permitted
Payment” for purposes of the calculation required by paragraph (a) of
this Section 1009;
	 
	 	(ii)	 	the repurchase, redemption, or other
acquisition or retirement for value of any shares of any class of
Capital Stock of the Company in exchange for, including any such
exchange pursuant to the exercise of a conversion right or privilege in
connection with which cash is paid in lieu of the issuance of
fractional shares or scrip, or out of the Net Cash Proceeds of a
substantially concurrent issuance and sale for cash (other than to a
Subsidiary) of, other shares of Qualified Capital Stock of the Company;
provided that the Net Cash Proceeds from the issuance of such shares of
Qualified Capital Stock are excluded from clause (3)(C) of paragraph
(a) of this Section 1009;
	 
	 	(iii)	 	the repurchase, redemption, defeasance,
retirement or acquisition for value or payment of principal of any
Subordinated Indebtedness or Redeemable Capital Stock in exchange for,
or in an amount not in excess of the Net Cash Proceeds of, a
substantially concurrent issuance and sale for cash (other than to any
Subsidiary of the Company) of any Qualified Capital Stock of the
Company, provided that the Net Cash Proceeds from the issuance of such shares of

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	 	 	 	Qualified Capital Stock are excluded from clause (3)(C) of paragraph
(a) of this Section 1009;

	 	(iv)	 	the repurchase, redemption, defeasance,
retirement, refinancing, acquisition for value or payment of principal
of any Subordinated Indebtedness (other than Redeemable Capital Stock)
(a “refinancing”) through the substantially concurrent issuance of new
Subordinated Indebtedness of the Company, provided that any such new
Subordinated Indebtedness (1) shall be in a principal amount that does
not exceed the principal amount so refinanced (or, if such Subordinated
Indebtedness provides for an amount less than the principal amount
thereof to be due and payable upon a declaration of acceleration
thereof, then such lesser amount as of the date of determination), plus
the lesser of (I) the stated amount of any premium or other payment
required to be paid in connection with such a refinancing pursuant to
the terms of the Indebtedness being refinanced or (II) the amount of
premium or other payment actually paid at such time to refinance the
Indebtedness, plus, in either case, the amount of expenses of the
Company incurred in connection with such refinancing; (2) has an
Average Life to Stated Maturity greater than the remaining Average Life
to Stated Maturity of the Securities; (3) has a Stated Maturity for its
final scheduled principal payment later than the Stated Maturity for
the final scheduled principal payment of the Securities; and (4) is
expressly subordinated in right of payment to the Securities at least
to the same extent as the Subordinated Indebtedness to be refinanced;
	 
	 	(v)	 	the purchase, redemption, or other acquisition
or retirement for value of any class of Capital Stock of the Company
from employees, former employees, directors or former directors of the
Company or any Subsidiary in an amount not to exceed $2.0 million in
the aggregate in any twelve-month period plus the aggregate cash
proceeds received by the Company during such twelve-month period from
any reissuance of Capital Stock by the Company to members of
management of the Company or any Restricted Subsidiary; provided that
the Company may carry over and make in a subsequent twelve-month
period, in addition to the amount otherwise permitted for such
twelve-month period, the amount of such purchase, redemptions or other
acquisitions for value permitted to have

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	 	 	 	been made but not made in any preceding twelve-month period; provided
that the aggregate repurchases, redemptions or other acquisitions or
retirements for value does not exceed $4.0 million in any
twelve-month period;
	 
	 	(vi)	 	the repurchase, redemption or other acquisition
or retirement for value of Capital Stock of the Company issued pursuant
to acquisitions by the Company to the extent required by or needed to
comply with the requirements of any of the Manufacturers with which the
Company or a Restricted Subsidiary is a party to a franchise agreement;
	 
	 	(vii)	 	the payment of the contingent purchase price
or the payment of the deferred purchase price, including holdbacks (and
the receipt of any corresponding consideration therefor), of an
acquisition to the extent any such payment would be deemed a Restricted
Payment and would otherwise have been permitted by this Indenture at
the time of such acquisition;
	 
	 	(viii)	 	the repurchase of Capital Stock of the Company issued to sellers of
businesses acquired by the Company or its Restricted Subsidiaries, in
an amount not to exceed $5.0 million during the term of this Indenture;
	 
	 	(ix)	 	the repurchase of Capital Stock deemed to occur
upon exercise of stock options to the extent that shares of such
Capital Stock represent a portion of the exercise price of such
options;
	 
	 	(x)	 	the payment of cash in lieu of the issuance of
fractional shares in connection with the exercise of warrants, options
or other securities convertible or exercisable for Capital Stock of the
Company;
	 
	 	(xi)	 	payments or distributions to stockholders
pursuant to appraisal rights required under applicable law in
connection with any consolidation, merger or transfer of assets that
complies with Section 801;
	 
	 	(xii)	 	the making of any Restricted Payments after
the date of this Indenture not exceeding in the aggregate $100.0
million; provided that no Default or Event of Default shall have
occurred and be continuing immediately after such transaction; and

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	 	(xiii)	 	the payment of cash dividends on the Company’s Qualified Capital
Stock in the aggregate amount per fiscal quarter up to or equal to
$0.10 per share for each share of the Company’s Qualified Capital Stock
outstanding as of the quarterly record date for dividends payable in
respect of such fiscal quarter (as such amount shall be adjusted for
changes in the capitalization of the Company upon recapitalizations,
reclassifications, stock splits, stock dividends, reverse stock splits,
stock consolidations and similar transactions), provided, however, in
the event a Change of Control occurs, the aggregate amounts permitted
to be paid in cash dividends per fiscal quarter shall not exceed the
aggregate amounts of such cash dividends paid in the same fiscal
quarter most recently occurring prior to such Change of Control,
provided, further, that for purposes of this exception, shares of
Qualified Capital Stock issued for less than fair market value (other
than shares issued pursuant to options or otherwise in accordance with
the Company’s stock option, employee stock purchase or other equity
compensation plans) shall not be deemed outstanding; provided, further,
that no Default or Event of Default shall have occurred and be
continuing immediately after such transaction.

     Section 1010. Limitation on Transactions with Affiliates.

          The Company will not, and will not cause or permit any of its Restricted Subsidiaries to,
directly or indirectly, enter into any transaction or series of related transactions (including,
without limitation, the sale, purchase, exchange or lease of assets, property or services) with or
for the benefit of any Affiliate of the Company (other than the Company or a Restricted Subsidiary)
unless such transaction or series of related transactions is entered into in good faith and in
writing and (a) such transaction or series of related transactions is on terms that are no less
favorable to the Company or such Restricted Subsidiary, as the case may be, than those that would
be available in a comparable transaction in arm’s-length dealings with an unrelated third party,
(b) with respect to any transaction or series of related transactions involving aggregate value in
excess of $5.0 million, the Company delivers an Officers’ Certificate to the Trustee certifying
that such transaction or series of related transactions complies with clause (a) above or such
transaction or series of related transactions has been approved by a majority of the Disinterested
Directors of the Board of Directors of the Company, or in the event there is only one Disinterested
Director, by such Disinterested Director, and (c) with respect to any transaction or series of
related transactions involving aggregate value in excess of $15.0 million, either (i) such
transaction or series of related transactions has been approved by a majority of the Disinterested
Directors of the Board

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of Directors of the Company, or in the event there is only one Disinterested Director, by such
Disinterested Director, or (ii) the Company delivers to the Trustee a written opinion of an
investment banking firm of national standing or other recognized independent expert with experience
appraising the terms and conditions of the type of transaction or series of related transactions
for which an opinion is required stating that the transaction or series of related transactions or
the consideration being paid is fair to the Company or such Restricted Subsidiary from a financial
point of view; provided, however, that this provision shall not apply to (i) compensation and
employee benefit arrangements with any officer or director of the Company, including under any
stock option or stock incentive plans, entered into in the ordinary course of business; (ii) any
transaction permitted as a Restricted Payment pursuant to Section 1009; (iii) the payment of
customary fees to directors of the Company and its Restricted Subsidiaries; (iv) any transaction
with any officer or member of the Board of Directors of the Company involving indemnification
arrangements; (v) loans or advances to officers of the Company in the ordinary course of business
not to exceed $1.0 million in any calendar year; and (vi) any transactions undertaken pursuant to
any contractual obligations in existence on the Issue Date and any renewals, replacements or
modifications of such obligations (pursuant to new transactions or otherwise) on terms no less
favorable than could be received from an unaffiliated third party.

     Section 1011. Limitation on Liens.

          The Company will not, and will not cause or permit any Restricted Subsidiary to, directly or
indirectly, create, incur or affirm any Lien of any kind securing any Pari Passu Indebtedness or
Subordinated Indebtedness (including any assumption, guarantee or other liability with respect
thereto by any Restricted Subsidiary) upon any property or assets (including any intercompany
notes) of the Company or any Restricted Subsidiary owned on the Issue Date or acquired after the
Issue Date, or assign or convey any right to receive any income or profits therefrom, unless the
Securities or a Guarantee in the case of Liens of a Guarantor are directly secured equally and
ratably with (or, in the case of Subordinated Indebtedness, prior or senior thereto, with the same
relative priority as the Securities shall have with respect to such Subordinated Indebtedness) the
obligation or liability secured by such Lien except for Liens (A) securing any Indebtedness which
became Indebtedness pursuant to a transaction permitted under Article Eight or securing Acquired
Indebtedness which was created prior to (and not created in connection with, or in contemplation
of) the incurrence of such Pari Passu Indebtedness or Subordinated Indebtedness (including any
assumption, guarantee or other liability with respect thereto by any Restricted Subsidiary) and
which Indebtedness is permitted under the provisions of Section 1008 or (B) securing any
Indebtedness incurred in connection with any refinancing, renewal, substitutions or replacements of
any such Indebtedness described in clause (A), so long as the aggregate principal amount of
Indebtedness represented thereby (or if such Indebtedness provides for an amount less than the
principal amount thereof to be due and payable upon a declaration of

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acceleration of the maturity thereof, the original issue price of such Indebtedness plus any
accreted value attributable thereto since the original issuance of such Indebtedness) is not
increased by such refinancing by an amount greater than the lesser of (i) the stated amount of any
premium or other payment required to be paid in connection with such a refinancing pursuant to the
terms of the Indebtedness being refinanced or (ii) the amount of premium or other payment actually
paid at such time to refinance the Indebtedness, plus, in either case, the amount of expenses of
the Company incurred in connection with such refinancing; provided, however, that in the case of
clauses (A) and (B), any such Lien only extends to the assets that were subject to such Lien
securing such Indebtedness prior to the related acquisition by the Company or its Restricted
Subsidiaries. Notwithstanding the foregoing, any Lien securing the Securities granted pursuant to
this covenant shall be automatically and unconditionally released and discharged upon the release
by the holder or holders of the Pari Passu Indebtedness or Subordinated Indebtedness described
above of their Lien on the property or assets of the Company or any Restricted Subsidiary
(including any deemed release upon payment in full of all obligations under such Indebtedness), at
such time as the holder or holders of all such Pari Passu Indebtedness or Subordinated
Indebtedness also release their Lien on the property or assets of the Company or such Restricted
Subsidiary, or upon any sale, exchange or transfer to any Person not an Affiliate of the Company of
the property or assets secured by such Lien, or of all of the Capital Stock held by the Company or
any Restricted Subsidiary in, or all or substantially all the assets of, any Restricted Subsidiary
creating such Lien.

     Section 1012. Limitation on Sale of Assets.

          (a) The Company will not, and will not cause or permit any of its Restricted Subsidiaries to,
directly or indirectly, consummate an Asset Sale unless (i) at least 75% of the consideration from
such Asset Sale consists of (A) cash or Cash Equivalents, (B) the assumption of Senior Indebtedness
or Senior Guarantor Indebtedness by the party acquiring the assets from the Company of any
Restricted Subsidiary, (C) Replacement Assets; (D) Designated Noncash Consideration; or (E) a
combination of any of the foregoing; and (ii) the Company or such Restricted Subsidiary receives
consideration at the time of such Asset Sale at least equal to the Fair Market Value of the shares
or assets subject to such Asset Sale (as determined by the Board of Directors of the Company and
evidenced in a Board Resolution); provided that any notes or other obligations received by the
Company or any such Restricted Subsidiary from any transferee of assets from the Company or such
Restricted Subsidiary that are converted by the Company or such Restricted Subsidiary into cash at
Fair Market Value within 30 days after receipt shall be deemed to be cash for purposes of this
provision.

          (b) If all or a portion of the Net Cash Proceeds of any Asset Sale are not required to be
applied to repay permanently any Senior Indebtedness or Senior Guarantor Indebtedness then
outstanding as required by the terms thereof, the Company determines

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not to apply such Net Cash Proceeds to the permanent prepayment of such Senior Indebtedness or
Senior Guarantor Indebtedness, or if no such Senior Indebtedness or Senior Guarantor Indebtedness
that requires prepayment is then outstanding (or such prepayment is waived), then the Company or a
Restricted Subsidiary may within 365 days of the Asset Sale invest the Net Cash Proceeds in
Replacement Assets. The amount of such Net Cash Proceeds not used or invested within 365 days of
the Asset Sale as set forth in this paragraph constitutes “Excess Proceeds.”

          (c) When the aggregate amount of Excess Proceeds exceeds $25.0 million or more, the Company
will apply the Excess Proceeds to the repayment of the Securities and any other Pari Passu
Indebtedness outstanding with similar provisions requiring the Company to make an offer to purchase
such Indebtedness with the proceeds from any Asset Sale as follows: (A) the Company will make an
offer to purchase (an “Offer”) to all holders of the Securities in accordance with the procedures
set forth in this Indenture in the maximum principal amount (expressed as a multiple of $1,000) of
Securities that may be purchased out of an amount (the “Security Amount”) equal to the product of
such Excess Proceeds multiplied by a fraction, the numerator of which is the outstanding principal
amount of the Securities, and the denominator of which is the sum of the outstanding principal
amount of the Securities and such Pari Passu Indebtedness (subject to proration in the event such
amount is less than the aggregate Offered Price (as defined herein) of all Securities tendered) and
(B) to the extent required by such Pari Passu Indebtedness to permanently reduce the principal
amount of such Pari Passu Indebtedness, the Company will make an offer to purchase or otherwise
repurchase or redeem Pari Passu Indebtedness (a “Pari Passu Offer”) in an amount (the “Pari Passu
Debt Amount”) equal to the excess of the Excess Proceeds over the Security Amount; provided that in
no event will the Company be required to make a Pari Passu Offer in a Pari Passu Debt Amount
exceeding the principal amount of such Pari Passu Indebtedness plus the amount of any premium
required to be paid to repurchase such Pari Passu Indebtedness. The offer price for the Securities
will be payable in cash in an amount equal to 100% of the principal amount of the Securities plus
accrued and unpaid interest, if any, to the date (the “Offer Date”) such Offer is consummated (the
“Offered Price”), in accordance with the procedures set forth herein. To the extent that the
aggregate Offered Price of the Securities tendered pursuant to the Offer is less than the Security
Amount relating thereto or the aggregate amount of Pari Passu Indebtedness that is purchased in a
Pari Passu Offer is less than the Pari Passu Debt Amount, the Company may use any remaining Excess
Proceeds for general corporate purposes. If the aggregate principal amount of Securities and Pari
Passu Indebtedness surrendered by holders thereof exceeds the amount of Excess Proceeds, the
Trustee shall select the Securities to be purchased on a pro rata basis. Upon the completion of
the purchase of all the Securities tendered pursuant to an Offer and the completion of a Pari Passu
Offer, the amount of Excess Proceeds, if any, shall be reset at zero.

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          (d) When the aggregate amount of Excess Proceeds exceeds $10 million, such Excess
Proceeds will, prior to any purchase of Securities described in paragraph (c) above, be set aside
by the Company in a separate account pending (i) deposit with the Depositary or a paying agent of
the amount required to purchase the Securities tendered in an Offer or Pari Passu Indebtedness
tendered in a Pari Passu Offer, (ii) delivery by the Company of the Offered Price to the holders of
the Securities tendered in an Offer or Pari Passu Indebtedness tendered in a Pari Passu Offer and
(iii) the completion of the purchase of all the Securities tendered pursuant to the Offer and the
completion of the Pari Passu Offer. Such Excess Proceeds may be invested in Temporary Cash
Investments, provided that the maturity date of any such investment made after the amount of Excess
Proceeds exceeds $10 million shall not be later than the Offer Date. The Company shall be entitled
to any interest or dividends accrued, earned or paid on such Temporary Cash Investments; provided
that the Company shall not withdraw such interest from the separate account if an Event of Default
has occurred and is continuing.

          (e) If the Company becomes obligated to make an Offer pursuant to clause (c) above, the
Securities and the Pari Passu Indebtedness shall be purchased by the Company, at the option of the
holders thereof, in whole or in part in integral multiples of $1,000, on a date that is not earlier
than 30 days and not later than 60 days from the date the notice of the Offer is given to holders,
or such later date as may be necessary for the Company to comply with the requirements under the
Exchange Act.

          (f) The Company will comply with the applicable tender offer rules, including Rule 14e-1 under
the Exchange Act, and any other applicable securities laws or regulations in connection with an
Offer.

          (g) Subject to paragraph (e) above, within 30 days after the date on which the amount of
Excess Proceeds equals or exceeds $10 million, the Company shall send or cause to be sent by
first-class mail, postage prepaid, to the Trustee and to each Holder, at his address appearing in
the Security Register, a notice stating or including:

     (1) that the Holder has the right to require the Company to repurchase, subject
to proration, such Holder’s Securities at the Offered Price;

     (2) the Offer Date;

     (3) the instructions a Holder must follow in order to have his Securities
purchased in accordance with paragraph (c) of this Section;

     (4) (i) the most recently filed Annual Report on Form 10-K (including audited
consolidated financial statements) of the Company, the most recent subsequently
filed Quarterly Report on Form 10-Q, as
applicable, and any Current Report on Form 8-K of the Company filed

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subsequent
to such Quarterly Report, other than Current Reports describing Asset Sales
otherwise described in the offering materials (or corresponding successor reports)
(or in the event the Company is not required to prepare any of the foregoing Forms,
the comparable information required pursuant to Section 1020), (ii) a description of
material developments, if any, in the Company’s business subsequent to the date of
the latest of such reports, (iii) if material, appropriate pro forma financial
information, and (iv) such other information, if any, concerning the business of the
Company which the Company in good faith believes will enable such Holders to make an
informed investment decision regarding the Offer;

     (5) the Offered Price;

     (6) the names and addresses of the Paying Agent and the offices or agencies
referred to in Section 1002;

     (7) that Securities must be surrendered prior to the Offer Date to the Paying
Agent at the office of the Paying Agent or to an office or agency referred to in
Section 1002 to collect payment;

     (8) that any Securities not tendered will continue to accrue interest and that
unless the Company defaults in the payment of the Offered Price, any Security
accepted for payment pursuant to the Offer shall cease to accrue interest on and
after the Offer Date;

     (9) the procedures for withdrawing a tender; and

     (10) that the Offered Price for any Security which has been properly tendered
and not withdrawn and which has been accepted for payment pursuant to the Offer will
be paid promptly following the Offered Date.

          (h) Holders electing to have Securities purchased hereunder will be required to surrender such
Securities at the address specified in the notice prior to the Offer Date. Holders will be
entitled to withdraw their election to have their Securities purchased pursuant to this Section
1012 if the Company receives, not later than one Business Day prior to the Offer Date, a telegram,
telex, facsimile transmission or letter setting forth (1) the name of the Holder, (2) the
certificate number of the Security in respect of which such notice of withdrawal is being
submitted, (3) the principal amount of the Security (which shall be $1,000 or an integral multiple
thereof) delivered for purchase by the Holder as to which his election is to be withdrawn, (4) a
statement that such Holder is withdrawing his election to have such principal amount of such
Security purchased, and (5) the principal amount, if any, of such Security (which shall be $1,000

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or an integral multiple thereof) that remains subject to the original notice of the Offer and
that has been or will be delivered for purchase by the Company.

          (i) The Company shall (i) not later than the Offer Date, accept for payment Securities or
portions thereof tendered pursuant to the Offer, (ii) not later than 10:00 a.m. (New York time) on
the Business Day following the Offer Date, deposit with the Trustee or with a Paying Agent an
amount of money in same day funds (or New York Clearing House funds if such deposit is made prior
to the Offer Date) sufficient to pay the aggregate Offered Price of all the Securities or portions
thereof which have been so accepted for payment and (iii) not later than 10:00 a.m. (New York time)
on the Business Day following the Offer Date, deliver to the Paying Agent an Officers’ Certificate
stating the Securities or portions thereof accepted for payment by the Company. The Paying Agent
shall promptly mail or deliver to Holders of Securities so accepted payment in an amount equal to
the Offered Price of the Securities purchased from each such Holder, and the Company shall execute
and the Trustee shall promptly authenticate and mail or deliver to such Holders a new Security
equal in principal amount to any unpurchased portion of the Security surrendered. Any Securities
not so accepted shall be promptly mailed or delivered by the Paying Agent at the Company’s expense
to the Holder thereof. For purposes of this Section 1012, the Company shall choose a Paying Agent
which shall not be the Company.

          Subject to applicable escheat laws, the Trustee and the Paying Agent shall return to the
Company any cash that remains unclaimed, together with interest, if any, thereon, held by them for
the payment of the Offered Price; provided, however, that (x) to the extent that the aggregate
amount of cash deposited by the Company with the Trustee in respect of an Offer exceeds the
aggregate Offered Price of the Securities or portions thereof to be purchased, then the Trustee
shall hold such excess for the Company and (y) unless otherwise directed by the Company in writing,
promptly after the Business Day following the Offer Date the Trustee shall return any such excess
to the Company together with interest or dividends, if any, thereon.

          (j) Securities to be purchased shall, on the Offer Date, become due and payable at the Offered
Price and from and after such date (unless the Company shall default in the payment of the Offered
Price) such Securities shall cease to bear interest. Such Offered Price shall be paid to such
Holder promptly following the later of the Offer Date and the time of delivery of such Security to
the relevant Paying Agent at the office of such Paying Agent by the Holder thereof in the manner
required. Upon surrender of any such Security for purchase in accordance with the foregoing
provisions, such Security shall be paid by the Company at the Offered Price; provided, however,
that installments of interest whose Stated Maturity is on or prior to the Offer Date shall be
payable to the Person in whose name the Securities (or any Predecessor Securities) is registered as
such on the relevant Regular Record Dates according to the terms and the provisions of Section 309;
provided, further, that Securities to be purchased are subject to

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proration in the event the Excess Proceeds are less than the aggregate Offered Price of all
Securities tendered for purchase, with such adjustments as may be appropriate by the Trustee so
that only Securities in denominations of $1,000 or integral multiples thereof, shall be purchased.
If any Security tendered for purchase shall not be so paid upon surrender thereof by deposit of
funds with the Trustee or a Paying Agent in accordance with paragraph (h) above, the principal
thereof (and premium, if any, thereon) shall, until paid, bear interest from the Offer Date at the
rate borne by such Security. Any Security that is to be purchased only in part shall be
surrendered to a Paying Agent at the office of such Paying Agent (with, if the Company, the
Security Registrar or the Trustee so requires, due endorsement by, or a written instrument of
transfer in form satisfactory to the Company and the Security Registrar or the Trustee duly
executed by, the Holder thereof or such Holder’s attorney duly authorized in writing), and the
Company shall execute and the Trustee shall authenticate and deliver to the Holder of such
Security, without service charge, one or more new Securities of any authorized denomination as
requested by such Holder in an aggregate principal amount equal to, and in exchange for, the
portion of the principal amount of the Security so surrendered that is not purchased. The Company
shall publicly announce the results of the Offer on or as soon as practicable after the Offer Date.

     Section 1013. Limitation on Issuances of Guarantees of and Pledges for Indebtedness.

          (a) The Company will not cause or permit any Restricted Subsidiary, other than a Guarantor,
directly or indirectly, to secure the payment of any Senior Indebtedness of the Company and the
Company will not, and will not permit any Restricted Subsidiary to, pledge any intercompany notes
representing obligations of any Restricted Subsidiary (other than a Guarantor) to secure the
payment of any Senior Indebtedness unless in each case such Restricted Subsidiary executes and
delivers a supplemental indenture to this Indenture providing for a guarantee of payment of the
Securities by such Restricted Subsidiary within 30 days, which guarantee shall be on the same terms
as the guarantee of the Senior Indebtedness (if a guarantee of Senior Indebtedness is granted by
any such Restricted Subsidiary) except that the guarantee of the Securities need not be secured and
shall be subordinated to the claims against such Restricted Subsidiary in respect of Senior
Indebtedness to the same extent as the Securities are subordinated to Senior Indebtedness of the
Company under this Indenture.

          (b) The Company will not cause or permit any Restricted Subsidiary (which is not a Guarantor),
directly or indirectly, to guarantee, assume or in any other manner become liable with respect to
any Indebtedness of the Company or any Restricted Subsidiary unless such Restricted Subsidiary
executes and delivers a supplemental indenture to this Indenture providing for a Guarantee of the
Securities within 30 days on the same terms as the guarantee of such Indebtedness except that (A)
such guarantee need not be secured unless required pursuant to Section 1011, (B) if such
Indebtedness is by its

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terms Senior Indebtedness, any such assumption, guarantee or other liability of such
Restricted Subsidiary with respect to such Indebtedness shall be senior to such Restricted
Subsidiary’s Guarantee of the Securities to the same extent as such Senior Indebtedness is senior
to the Securities and (C) if such Indebtedness is by its terms expressly subordinated to the
Securities, any such assumption, guarantee or other liability of such Restricted Subsidiary with
respect to such Indebtedness shall be subordinated to such Restricted Subsidiary’s Guarantee of the
Securities at least to the same extent as such Indebtedness is subordinated to the Securities.

          (c) Notwithstanding the foregoing, any Guarantee by a Restricted Subsidiary of the Securities
shall provide by its terms that it (and all Liens securing the same) shall be automatically and
unconditionally released and discharged upon (i) any sale, exchange or transfer, to any Person not
an Affiliate of the Company, of all of the Company’s Capital Stock in, or all or substantially all
the assets of, such Restricted Subsidiary, which transaction is in compliance with the terms of
this Indenture and pursuant to which transaction such Subsidiary is released from all guarantees,
if any, by it of other Indebtedness of the Company or any Restricted Subsidiaries or (ii) the
release by the holders of the Indebtedness of the Company of their security interest or their
guarantee by such Restricted Subsidiary (including any deemed release upon payment in full of all
obligations under such Indebtedness), at such time as (A) no other Indebtedness of the Company has
been secured or guaranteed by such Restricted Subsidiary, as the case may be, or (B) the holders of
all such other Indebtedness which is secured or guaranteed by such Restricted Subsidiary also
release their security interest in or guarantee by such Restricted Subsidiary (including any deemed
release upon payment in full of all obligations under such Indebtedness).

     Section 1014. Purchase of Securities upon a Change of Control.

          (a) If a Change of Control shall occur at any time, then each Holder shall have the right to
require that the Company purchase such Holder’s Securities in whole or in part in integral
multiples of $1,000, at a purchase price (the “Change of Control Purchase Price”) in cash in an
amount equal to 101% of the aggregate principal amount of such Securities, plus accrued and unpaid
interest, if any, to the date of purchase (the “Change of Control Purchase Date”), pursuant to the
offer described below in this Section 1014 (the “Change of Control Offer”) and in accordance with
the other procedures set forth in subsections (b), (c), (d) and (e) of this Section 1014.

          (b) Within 30 days of any Change of Control, or at the Company’s option, prior to such Change
of Control but after it is publicly announced, the Company shall notify the Trustee thereof and
give written notice (a “Change of Control Purchase Notice”) of such Change of Control to each
Holder by first-class mail, postage prepaid, at his address appearing in the Security Register,
stating among other things:

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     (1) that a Change of Control has occurred or will occur, the date of such
event, and that such Holder has the right to require the Company to repurchase such
Holder’s Securities at the Change of Control Purchase Price;

     (2) the circumstances and relevant facts regarding the Change of Control
(including, but not limited to, information with respect to pro forma historical
income, cash flow and capitalization after giving effect to such Change of Control);

     (3) (i) the most recently filed Annual Report on Form 10-K (including audited
consolidated financial statements) of the Company, the most recent subsequently
filed Quarterly Report on Form 10-Q, as applicable, and any Current Report on Form
8-K of the Company filed subsequent to such Quarterly Report (or in the event the
Company is not required to prepare any of the foregoing Forms, the comparable
information required to be prepared by the Company and any Guarantor pursuant to
Section 1020), (ii) a description of material developments, if any, in the Company’s
business subsequent to the date of the latest of such reports and (iii) such other
information, if any, concerning the business of the Company which the Company in
good faith believes will enable such Holders to make an informed investment decision
regarding the Change of Control Offer;

     (4) that the Change of Control Offer is being made pursuant to this Section
1014 and that all Securities properly tendered pursuant to the Change of Control
Offer will be accepted for payment at the Change of Control Purchase Price;

     (5) the Change of Control Purchase Date, which shall be fixed by the Company on
a Business Day no earlier than 30 days nor later than 60 days from the date such
notice is mailed, or such later date as is necessary to comply with requirements
under the Exchange Act; provided that the Change of Control Purchase Date may not
occur prior to the Change of Control;

     (6) the Change of Control Purchase Price;

     (7) the names and addresses of the Paying Agent and the offices or agencies
referred to in Section 1002;

     (8) that Securities must be surrendered on or prior to the Change of Control
Purchase Date to the Paying Agent at the office of the Paying

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Agent or to an office or agency referred to in Section 1002 to collect payment;

     (9) that the Change of Control Purchase Price for any Security which has been
properly tendered and not withdrawn will be paid promptly following the Change of
Control Offer Purchase Date;

     (10) the procedures that a Holder must follow to accept a Change of Control
Offer or to withdraw such acceptance;

     (11) that any Security not tendered will continue to accrue interest; and

     (12) that, unless the Company defaults in the payment of the Change of Control
Purchase Price, any Securities accepted for payment pursuant to the Change of
Control Offer shall cease to accrue interest after the Change of Control Purchase
Date.

          (c) Upon receipt by the Company of the proper tender of Securities, the Holder of the Security
in respect of which such proper tender was made shall (unless the tender of such Security is
properly withdrawn) thereafter be entitled to receive solely the Change of Control Purchase Price
with respect to such Security. Upon surrender of any such Security for purchase in accordance with
the foregoing provisions, such Security shall be paid by the Company at the Change of Control
Purchase Price; provided, however, that installments of interest whose Stated Maturity is on or
prior to the Change of Control Purchase Date shall be payable to the Holders of such Securities, or
one or more Predecessor Securities, registered as such on the relevant Regular Record Dates
according to the terms and the provisions of Section 309. If any Security tendered for purchase in
accordance with the provisions of this Section 1014 shall not be so paid upon surrender thereof,
the principal thereof (and premium, if any, thereon) shall, until paid, bear interest from the
Change of Control Purchase Date at the rate borne by such Security. Holders electing to have
Securities purchased will be required to surrender such Securities to the Paying Agent at the
address specified in the Change of Control Purchase Notice at least one Business Day prior to the
Change of Control Purchase Date. Any Security that is to be purchased only in part shall be
surrendered to a Paying Agent at the office of such Paying Agent (with, if the Company, the
Security Registrar or the Trustee so requires, due endorsement by, or a written instrument of
transfer in form satisfactory to the Company and the Security Registrar or the Trustee, as the case
may be, duly executed by, the Holder thereof or such Holder’s attorney duly authorized in writing),
and the Company shall execute and the Trustee shall authenticate and deliver to the Holder of such
Security, without service charge, one or more new Securities of any authorized denomination as
requested by such Holder in an aggregate principal amount equal to, and in exchange for, the
portion of the principal amount of the Security so surrendered that is not purchased.

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          (d) The Company shall (i) not later than the Change of Control Purchase Date, accept for
payment Securities or portions thereof tendered pursuant to the Change of Control Offer, (ii) not
later than 10:00 a.m. (New York time) on the Business Day following the Change of Control Purchase
Date, deposit with the Trustee or with a Paying Agent an amount of money in same day funds
sufficient to pay the aggregate Change of Control Purchase Price of all the Securities or portions
thereof which have been so accepted for payment and (iii) not later than 10:00 a.m. (New York time)
on the Business Day following Change of Control Purchase Date, deliver to the Paying Agent an
Officers’ Certificate stating the Securities or portions thereof accepted for payment by the
Company. The Paying Agent shall promptly mail or deliver to Holders of Securities so accepted
payment in an amount equal to the Change of Control Purchase Price of the Securities purchased from
each such Holder, and the Company shall execute and the Trustee shall promptly authenticate and
mail or deliver to such Holders a new Security equal in principal amount to any unpurchased portion
of the Security surrendered. Any Securities not so accepted shall be promptly mailed or delivered
by the Paying Agent at the Company’s expense to the Holder thereof. The Company will publicly
announce the results of the Change of Control Offer on the Change of Control Purchase Date. For
purposes of this Section 1014, the Company shall choose a Paying Agent which shall not be the
Company.

          (e) A tender made in response to a Change of Control Purchase Notice may be withdrawn if the
Company receives, not later than one Business Day prior to the Change of Control Purchase Date, a
telegram, telex, facsimile transmission or letter, specifying, as applicable:

     (1) the name of the Holder;

     (2) the certificate number of the Security in respect of which such notice of
withdrawal is being submitted;

     (3) the principal amount of the Security (which shall be $1,000 or an integral
multiple thereof) delivered for purchase by the Holder as to which such notice of
withdrawal is being submitted;

     (4) a statement that such Holder is withdrawing his election to have such
principal amount of such Security purchased; and

     (5) the principal amount, if any, of such Security (which shall be $1,000 or an
integral multiple thereof) that remains subject to the original Change of Control
Purchase Notice and that has been or will be delivered for purchase by the Company.

          (f) Subject to applicable escheat laws, the Trustee and the Paying Agent shall return to the
Company any cash that remains unclaimed, together with interest or

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dividends, if any, thereon, held by them for the payment of the Change of Control Purchase
Price; provided, however, that, (x) to the extent that the aggregate amount of cash deposited by
the Company pursuant to clause (ii) of paragraph (d) above exceeds the aggregate Change of Control
Purchase Price of the Securities or portions thereof to be purchased, then the Trustee shall hold
such excess for the Company and (y) unless otherwise directed by the Company in writing, promptly
after the Business Day following the Change of Control Purchase Date the Trustee shall return any
such excess to the Company together with interest, if any, thereon.

          (g) The Company shall comply, to the extent applicable, with the applicable tender offer
rules, including Rule 14e-1 under the Exchange Act, and any other applicable securities laws or
regulations in connection with a Change of Control Offer.

          (h) Notwithstanding the foregoing, the Company will not be required to make a Change of
Control Offer upon or in anticipation of a Change of Control if a third party makes the Change of
Control Offer in the manner, at the time and otherwise in compliance with the requirements set
forth in this Indenture applicable to a Change of Control Offer made by the Company and purchases
all the Securities validly tendered and not withdrawn under such Change of Control Offer.

     Section 1015. Limitation on Subsidiary Preferred Stock.

          The Company will not permit (a) any Restricted Subsidiary of the Company to issue, sell or
transfer any Preferred Stock, except for (i) Preferred Stock issued or sold to, held by or
transferred to the Company or a Wholly-Owned Restricted Subsidiary, and (ii) Preferred Stock issued
by a Person prior to the time (A) such Person becomes a Restricted Subsidiary, (B) such Person
merges with or into a Restricted Subsidiary or (C) a Restricted Subsidiary merges with or into such
Person; provided that such Preferred Stock was not issued or incurred by such Person in
anticipation of the type of transaction contemplated by subclause (A), (B) or (C) or (b) any Person
(other than the Company or a Wholly-Owned Restricted Subsidiary) to acquire Preferred Stock of any
Restricted Subsidiary from the Company or any Restricted Subsidiary, except, in the case of clause
(a) or (b), or upon the acquisition of all the outstanding Capital Stock of such Restricted
Subsidiary in accordance with the terms of this Indenture.

     Section 1016. Limitation on Dividends and Other Payment Restrictions Affecting
Subsidiaries.

          The Company will not, and will not cause or permit any of its Restricted Subsidiaries to, directly
or indirectly, create or otherwise cause to exist or become effective any consensual encumbrance or
restriction on the ability of any Restricted Subsidiary to (i) pay dividends or make any other
distribution on its Capital Stock, or any other interest or participation in or measured by its
profits, (ii) pay any Indebtedness owed to the Company or any other Restricted Subsidiary, (iii)
make any Investment in the Company

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or any other Restricted Subsidiary or (iv) transfer any of its properties or assets to the Company
or any other Restricted Subsidiary, except for: (a) any encumbrance or restriction pursuant to an
agreement in effect on the Issue Date; (b) any encumbrance or restriction, with respect to a
Restricted Subsidiary that was not a Restricted Subsidiary of the Company on the Issue Date, in
existence at the time such Person becomes a Restricted Subsidiary of the Company and not incurred
in connection with, or in contemplation of, such Person becoming a Restricted Subsidiary, provided
that such encumbrances and restrictions are not applicable to the Company or any Restricted
Subsidiary or the properties or assets of the Company or any Restricted Subsidiary other than such
Subsidiary which is becoming a Restricted Subsidiary; (c) customary provisions contained in an
agreement that has been entered into for the sale or other disposition of all or substantially all
of the Capital Stock or assets of a Restricted Subsidiary; provided, however, that the restrictions
are applicable only to such Restricted Subsidiary or assets; (d) any encumbrance or restriction
existing under or by reason of applicable law or any requirement of any regulatory body; (e)
customary provisions restricting subletting or assignment of any lease governing any leasehold
interest of any Restricted Subsidiary; (f) covenants in franchise agreements with Manufacturers
customary for franchise agreements in the automobile retailing industry; (g) any encumbrance or
restriction contained in any Purchase Money Obligations for property to the extent such restriction
or encumbrance restricts the transfer of such property; (h) any encumbrances or restrictions in
security agreements securing Indebtedness (other than Subordinated Indebtedness) of a Guarantor
(including any Credit Facility or any Inventory Facility) (to the extent that such Liens are
otherwise incurred in accordance with Section 1011) that restrict the transfer of property subject
to such agreements, provided that any such encumbrance or restriction is released to the extent the
underlying Lien is released or the related Indebtedness is repaid; (i) covenants in Inventory
Facilities customary for inventory and floor plan financing in the automobile retailing industry;
(j) any encumbrance related to assets acquired by or merged into or consolidated with the Company
or any Restricted Subsidiary so long as such encumbrance was not entered into in contemplation of
the acquisition, merger or consolidation transaction; (k) customary non-assignment provisions
contained in (a) any lease governing a leasehold interest or (b) any supply, license or other
agreement entered into in the ordinary course of business of the Company or any of its Restricted
Subsidiaries; (l) Liens securing Indebtedness otherwise permitted to be incurred under Section 1011
that limit the right of the debtor to dispose of the assets subject to such Liens; (m) restrictions
on cash or other deposits or net worth imposed by customers or vendors under contracts entered into
in the ordinary course of business; (n) restrictions contained in any other indenture or instrument
governing debt or preferred securities that are not materially more restrictive, taken as a whole,
than those contained in this Indenture governing the Securities; and (o) any encumbrance or
restriction existing under any agreement that extends, renews, refinances or replaces the
agreements containing the encumbrances or restrictions in the foregoing clauses (a), (b), (j) or in
this clause (o), provided that the terms and conditions of any such encumbrances or restrictions
are no more restrictive in any material respect than

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those under or pursuant to the agreement evidencing the Indebtedness so extended, renewed,
refinanced or replaced.

     Section 1017. Limitation on Senior Subordinated Indebtedness.

          The Company will not, and will not permit or cause any Guarantor to, directly or indirectly,
create, incur, issue, assume, guarantee or otherwise in any manner become directly or indirectly
liable for or with respect to or otherwise permit to exist any Indebtedness that is subordinate in
right of payment to any Indebtedness of the Company or such Guarantor, as the case may be, unless
such Indebtedness is also pari passu with the Securities or the Guarantee of such Guarantor or
subordinated in right of payment to the Securities or such Guarantee at least to the same extent as
the Securities or such Guarantee are subordinated in right of payment to Senior Indebtedness or
such Guarantor’s Senior Guarantor Indebtedness, as the case may be, as set forth in this Indenture.

     Section 1018. Limitations on Unrestricted Subsidiaries.

          The Company may designate after the Issue Date any Subsidiary as an “Unrestricted Subsidiary”
under this Indenture (a “Designation”) only if:

          (a) no Default shall have occurred and be continuing at the time of or after giving effect to
such Designation;

          (b) the Company would be permitted to make a Permitted Investment or an Investment at the time
of Designation (assuming the effectiveness of such Designation) pursuant to the first paragraph of
Section 1009 herein in an amount (the “Designation Amount”) equal to the greater of (1) the net
book value of the Company’s interest in such Subsidiary calculated in accordance with GAAP or (2)
the Fair Market Value of the Company’s interest in such Subsidiary as determined in good faith by
the Company’s Board of Directors;

          (c) the Company would be permitted to incur $1.00 of additional Indebtedness (other than
Permitted Indebtedness) pursuant to Section 1008 at the time of such Designation (assuming the
effectiveness of such Designation);

          (d) such Unrestricted Subsidiary does not own any Capital Stock in any Restricted Subsidiary
of the Company which is not simultaneously being designated an Unrestricted Subsidiary;

          (e) such Unrestricted Subsidiary is not liable, directly or indirectly, with respect to any
Indebtedness other than Unrestricted Subsidiary Indebtedness, provided that an Unrestricted
Subsidiary may provide a Guarantee for the Securities; and

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          (f) such Unrestricted Subsidiary is not a party to any agreement, contract, arrangement or
understanding at such time with the Company or any Restricted Subsidiary unless the terms of any
such agreement, contract, arrangement or understanding are no less favorable to the Company or such
Restricted Subsidiary than those that might be obtained at the time from Persons who are not
Affiliates of the Company or, in the event such condition is not satisfied, the value of such
agreement, contract, arrangement or understanding to such Unrestricted Subsidiary shall be deemed a
Restricted Payment.

          In the event of any such Designation, the Company shall be deemed to have made an Investment
constituting a Restricted Payment pursuant to Section 1009 for all purposes of this Indenture in
the Designation Amount.

          The Company shall not and shall not cause or permit any Restricted Subsidiary to at any time
(x) provide credit support for, or subject any of its property or assets (other than the Capital
Stock of any Unrestricted Subsidiary) to the satisfaction of, any Indebtedness of any Unrestricted
Subsidiary (including any undertaking, agreement or instrument evidencing such Indebtedness) (other
than Permitted Investments in Unrestricted Subsidiaries) or (y) be directly or indirectly liable
for any Indebtedness of any Unrestricted Subsidiary. For purposes of the foregoing, the
Designation of a Subsidiary of the Company as an Unrestricted Subsidiary shall be deemed to be the
Designation of all of the Subsidiaries of such Subsidiary.

          The Company may revoke any Designation of a Subsidiary as an Unrestricted Subsidiary (a
“Revocation”) if:

          (a) no Default shall have occurred and be continuing at the time of and after giving effect to
such Revocation;

          (b) all Liens and Indebtedness of such Unrestricted Subsidiary outstanding immediately
following such Revocation would, if incurred at such time, have been permitted to be incurred for
all purposes of this Indenture; and

          (c) unless such redesignated Subsidiary shall not have any Indebtedness outstanding (other
than Indebtedness that would be Permitted Indebtedness), immediately after giving effect to such
proposed Revocation, and after giving pro forma effect to the incurrence of any such Indebtedness
of such redesignated Subsidiary as if such Indebtedness was incurred on the date of the Revocation,
the Company could incur $1.00 of additional Indebtedness (other than Permitted Indebtedness)
pursuant to Section 1008 herein.

          All Designations and Revocations must be evidenced by a resolution of the Board of Directors
of the Company delivered to the Trustee certifying compliance with the foregoing provisions.

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     Section 1019. Provision of Financial Statements.

          Whether or not the Company is subject to Section 13(a) or 15(d) of the Exchange Act, the
Company and each Guarantor (to the extent such Guarantor would be required if subject to Section
13(a) or 15(d) of the Exchange Act) will, to the extent permitted under the Exchange Act, file with
the Commission the annual reports, quarterly reports and other documents which the Company and such
Guarantor would have been required to file with the Commission pursuant to Sections 13(a) or 15(d)
if the Company or such Guarantor were so subject, such documents to be filed with the Commission on
or prior to the date (the “Required Filing Date”) by which the Company and such Guarantor would
have been required so to file such documents if the Company and such Guarantor were so subject.
The Company will also in any event (x) within 15 days of each Required Filing Date (i) transmit by
mail to all Holders, as their names and addresses appear in the Security Register, without cost to
such Holders and (ii) file with the Trustee copies of the annual reports, quarterly reports and
other documents which the Company and such Guarantor would have been required to file with the
Commission pursuant to Sections 13(a) or 15(d) of the Exchange Act if the Company and such
Guarantor were subject to either of such Sections and (y) if filing such documents by the Company
and such Guarantor with the Commission is not permitted under the Exchange Act, promptly upon
written request and payment of the reasonable cost of duplication and delivery, supply copies of
such documents to any prospective Holder at the Company’s cost. If any Guarantor’s financial
statements would be required to be included in the financial statements filed or delivered pursuant
to this Indenture if the Company were subject to Section 13(a) or 15(d) of the Exchange Act, the
Company shall include such Guarantor’s financial statements in any filing or delivery pursuant to
this Indenture. In addition, so long as any of the Securities remain outstanding, the Company will
make available to any prospective purchaser of Securities or beneficial owner of Securities in
connection with any sale thereof the information required by Rule 144A(d)(4) under the Securities
Act, until such time as the Company has either exchanged the Securities for securities identical in
all material respects which have been registered under the Securities Act or until such time as the
Holders thereof have disposed of such Securities pursuant to an effective registration statement
under the Securities Act.

          For purposes of this Indenture, documents filed by the Company with the Commission via the
EDGAR system (or any successor system) will be deemed filed with the Trustee and provided to
Holders and prospective purchasers as of the time such documents are so filed via the EDGAR system
(or any successor system).

     Section 1020. Statement by Officers as to Default.

          (a) The Company will deliver to the Trustee, on or before a date not more than 120 days after
the end of each fiscal year of the Company ending after the date hereof, and 60 days after the end
of each fiscal quarter ending after the date hereof, a written statement signed by two executive
officers of the Company and the Guarantors,

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one of whom shall be the principal executive officer, principal financial officer or principal
accounting officer of the Company and the Guarantors, as to compliance herewith, including whether
or not, after a review of the activities of the Company during such year and of the Company’s and
each Guarantor’s performance under this Indenture, to the best knowledge, based on such review, of
the signers thereof, the Company and each Guarantor have fulfilled all of their respective
obligations and are in compliance with all conditions and covenants under this Indenture throughout
such year and, if there has been a Default specifying each Default and the nature and status
thereof and any actions being taken by the Company with respect thereto.

          (b) When any Default or Event of Default has occurred and is continuing, or if the Trustee or
any Holder or the trustee for or the holder of any other evidence of Indebtedness of the Company or
any Subsidiary gives any notice or takes any other action with respect to a claimed default the
Company shall deliver to the Trustee by registered or certified mail or facsimile transmission
followed by an originally executed copy of an Officers’ Certificate specifying such Default, Event
of Default, notice or other action, the status thereof and what actions the Company is taking or
proposes to take with respect thereto, within five Business Days after the occurrence of such
Default or Event of Default.

     Section 1021. Waiver of Certain Covenants.

          The Company may omit in any particular instance to comply with any covenant or condition set
forth in Sections 1006 through 1011, 1013 and 1015 through 1020, if, before or after the time for
such compliance, the Holders of not less than a majority in aggregate principal amount of the
Securities at the time Outstanding shall, by Act of such Holders, waive such compliance in such
instance with such covenant or provision, but no such waiver shall extend to or affect such
covenant or condition except to the extent so expressly waived, and, until such waiver shall become
effective, the obligations of the Company and the duties of the Trustee in respect of any such
covenant or condition shall remain in full force and effect.

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ARTICLE ELEVEN

REDEMPTION OF SECURITIES

     Section 1101. Rights of Redemption.

          The Securities are subject to redemption, subject to the conditions, and at the Redemption
Prices, specified in the Form of Reverse of Securities, together with accrued and unpaid interest,
if any, to the Redemption Date (subject to the right of Holders of record on relevant Regular
Record Dates and Special Record Dates to receive interest due on relevant Interest Payment Dates
and Special Payment Dates).

     Section 1102. Applicability of Article.

          Redemption of Securities at the election of the Company or otherwise, as permitted or required
by any provision of this Indenture, shall be made in accordance with such provision and this
Article Eleven.

     Section 1103. Election to Redeem; Notice to Trustee.

          The election of the Company to redeem any Securities pursuant to Section 1101 shall be
evidenced by a Company Order and an Officers’ Certificate. In case of any redemption at the
election of the Company, the Company shall, not less than 45 nor more than 60 days prior to the
Redemption Date fixed by the Company (unless a shorter notice period shall be satisfactory to the
Trustee), notify the Trustee in writing of such Redemption Date and of the principal amount of
Securities to be redeemed.

     Section 1104. Selection by Trustee of Securities to Be Redeemed.

          If less than all the Securities are to be redeemed, the Trustee shall select the Securities or
portions thereof to be redeemed in compliance with the requirements of the principal national
security exchange, if any, on which the Securities are listed, or if the Securities are not so
listed, the Trustee shall select them on a on a pro rata basis, by lot or by any other method the
Trustee shall deem fair and reasonable.

          The Trustee shall promptly notify the Company and the Security Registrar in writing of the
Securities selected for redemption and, in the case of any Securities selected for partial
redemption, the principal amount thereof to be redeemed.

          For all purposes of this Indenture, unless the context otherwise requires, all provisions
relating to redemption of Securities shall relate, in the case of any Security redeemed or to be
redeemed only in part, to the portion of the principal amount of such Security which has been or is
to be redeemed.

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     Section 1105. Notice of Redemption.

          Except as otherwise provided herein, notice of redemption shall be given by first-class mail,
postage prepaid, mailed not less than 30 days nor more than 60 days prior to the Redemption Date,
to each Holder of Securities to be redeemed, at its address appearing in the Security Register.

          All notices of redemption shall state:

          (a) the Redemption Date;

          (b) the Redemption Price;

          (c) if less than all Outstanding Securities are to be redeemed, the identification of the
particular Securities to be redeemed;

          (d) in the case of a Security to be redeemed in part, the principal amount of such Security to
be redeemed and that after the Redemption Date upon surrender of such Security, new Security or
Securities in the aggregate principal amount equal to the unredeemed portion thereof will be
issued;

          (e) that Securities called for redemption must be surrendered to the Paying Agent to collect
the Redemption Price;

          (f) that on the Redemption Date the Redemption Price will become due and payable upon each
such Security or portion thereof to be redeemed, and that (unless the Company shall default in
payment of the Redemption Price) interest thereon shall cease to accrue on and after said date;

          (g) the names and addresses of the Paying Agent and the offices or agencies referred to in
Section 1002 where such Securities are to be surrendered for payment of the Redemption Price;

          (h) the CUSIP number, if any, relating to such Securities; and

          (i) the procedures that a Holder must follow to surrender the Securities to be redeemed.

          Notice of redemption of Securities to be redeemed at the election of the Company shall be
given by the Company or, at the Company’s written request, by the Trustee in the name and at the
expense of the Company. If the Company elects to give notice of redemption, it shall provide the
Trustee with a certificate stating that such notice has been given in compliance with the
requirements of this Section 1105.

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          The notice if mailed in the manner herein provided shall be conclusively presumed to have been
given, whether or not the Holder receives such notice. In any case, failure to give such notice by
mail or any defect in the notice to the Holder of any Security designated for redemption as a whole
or in part shall not affect the validity of the proceedings for the redemption of any other
Security.

     Section 1106. Deposit of Redemption Price.

          On or prior to any Redemption Date, the Company shall deposit with the Trustee or with a
Paying Agent (or, if the Company or any of its Affiliates is acting as Paying Agent, segregate and
hold in trust as provided in Section 1003) an amount of money in same day funds sufficient to pay
the Redemption Price of, and (except if the Redemption Date shall be an Interest Payment Date or
Special Payment Date) accrued interest on, all the Securities or portions thereof which are to be
redeemed on that date. The Paying Agent shall promptly mail or deliver to Holders of Securities so
redeemed payment in an amount equal to the Redemption Price of the Securities purchased from each
such Holder. All money, if any, earned on funds held in trust by the Trustee or any Paying Agent
shall be remitted to the Company. For purposes of this Section 1106, the Company shall choose a
Paying Agent which shall not be the Company.

     Section 1107. Securities Payable on Redemption Date.

          Notice of redemption having been given as aforesaid, the Securities so to be redeemed shall,
on the Redemption Date, become due and payable at the Redemption Price therein specified and from
and after such date (unless the Company shall default in the payment of the Redemption Price and
accrued interest) such Securities shall cease to bear interest. Holders will be required to
surrender the Securities to be redeemed to the Paying Agent at the address specified in the notice
of redemption at least one Business Day prior to the Redemption Date. Upon surrender of any such
Security for redemption in accordance with said notice, such Security shall be paid by the Company
at the Redemption Price together with accrued interest to the Redemption Date; provided, however,
that installments of interest whose Stated Maturity is on or prior to the Redemption Date shall be
payable to the Holders of such Securities, or one or more Predecessor Securities, registered as
such on the relevant Regular Record Dates and Special Record Dates according to the terms and the
provisions of Section 309.

          If any Security called for redemption shall not be so paid upon surrender thereof for
redemption, the principal and premium, if any, shall, until paid, bear interest from the Redemption
Date at the rate borne by such Security.

     Section 1108. Securities Redeemed or Purchased in Part.

          Any Security which is to be redeemed or purchased only in part shall be surrendered to the
Paying Agent at the office or agency maintained for such purpose

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pursuant to Section 1002 (with, if the Company, the Security Registrar or the Trustee so
requires, due endorsement by, or a written instrument of transfer in form satisfactory to the
Company, the Security Registrar or the Trustee, as the case may be, duly executed by, the Holder
thereof or such Holder’s attorney duly authorized in writing), and the Company shall execute, and
the Trustee shall authenticate and deliver to the Holder of such Security without service charge, a
new Security or Securities, of any authorized denomination as requested by such Holder in aggregate
principal amount equal to, and in exchange for, the unredeemed portion of the principal of the
Security so surrendered that is not redeemed or purchased.

ARTICLE TWELVE

SATISFACTION AND DISCHARGE

     Section 1201. Satisfaction and Discharge of Indenture.

          This Indenture shall be discharged and shall cease to be of further effect (except as to
surviving rights of registration of transfer or exchange of Securities as expressly provided for
herein) as to all Outstanding Securities hereunder, and the Trustee, upon Company Request and at
the expense of the Company, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture, when

          (a) either

     (1) all the Securities theretofore authenticated and delivered (except (i)
lost, stolen or destroyed Securities which have been replaced or paid as provided in
Section 308 or (ii) all Securities whose payment has theretofore been deposited in
trust or segregated and held in trust by the Company and thereafter repaid to the
Company or discharged from such trust as provided in Section 1003) have been
delivered to the Trustee for cancellation; or

     (2) all Securities not theretofore delivered to the Trustee for cancellation
(i) have become due and payable, (ii) will become due and payable at their Stated
Maturity within one year or (iii) are to be called for redemption within one year
under arrangements reasonably satisfactory to the Trustee for the giving of notice
of redemption by the Trustee in the name, and at the expense, of the Company; and
the Company or any Guarantor has irrevocably deposited or caused to be deposited
with the Trustee as trust funds in trust an amount in United States dollars
sufficient to pay and discharge the entire Indebtedness on the Securities not
theretofore delivered to the Trustee for cancellation, including the principal

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of, premium, if any, and accrued interest on, such Securities at such Maturity,
Stated Maturity or Redemption Date;

          (b) the Company or any Guarantor has paid or caused to be paid all other sums payable
hereunder by the Company and any Guarantor; and

          (c) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Independent Counsel, in form and substance reasonably satisfactory to the Trustee, each stating
that (i) all conditions precedent herein relating to the satisfaction and discharge hereof have
been complied with and (ii) such satisfaction and discharge will not result in a breach or
violation of, or constitute a default under, this Indenture or any other material agreement or
instrument to which the Company, any Guarantor or any Restricted Subsidiary is a party or by which
the Company, any Guarantor or any Restricted Subsidiary is bound.

          Notwithstanding the satisfaction and discharge hereof, the obligations of the Company to the
Trustee under Section 607 and, if United States dollars shall have been deposited with the Trustee
pursuant to subclause (2) of subsection (a) of this Section 1201, the obligations of the Trustee
under Section 1202 and the last paragraph of Section 1003 shall survive.

     Section 1202. Application of Trust Money.

          Subject to the provisions of the last paragraph of Section 1003, all United States dollars
deposited with the Trustee pursuant to Section 1201 shall be held in trust and applied by it, in
accordance with the provisions of the Securities and this Indenture, to the payment, either
directly or through any Paying Agent (including the Company acting as its own Paying Agent) as the
Trustee may determine, to the Persons entitled thereto, of the principal of, premium, if any, and
interest on, the Securities for whose payment such United States dollars have been deposited with
the Trustee.

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ARTICLE THIRTEEN

GUARANTEES

     Section 1301. Guarantors’ Guarantee.

          For value received, each of the Guarantors, in accordance with this Article Thirteen, hereby
absolutely, fully, unconditionally and irrevocably guarantees, jointly and severally with each
other and with each other Person which may become a Guarantor hereunder, to the Trustee and the
Holders, as if the Guarantors were the principal debtor, the punctual payment and performance when
due of all Indenture Obligations (which for purposes of this Guarantee shall also be deemed to
include all commissions, fees, charges, costs and other expenses (including reasonable legal fees
and disbursements of one counsel) arising out of or incurred by the Trustee or the Holders in
connection with the enforcement of this Guarantee).

     Section 1302. Continuing Guarantee; No Right of Set-Off; Independent Obligation.

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

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

          (c) Each Guarantor, jointly and severally, guarantees that the Indenture Obligations shall be
paid strictly in accordance with their terms regardless of any law,

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regulation or order now or hereafter in effect in any jurisdiction affecting any of such terms or
the rights of the holders of the Securities.

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

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

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

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

     Section 1303. Guarantee Absolute.

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

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

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	 	(b)	 	any grants of time, renewals, extensions, indulgences,
releases, discharges or modifications which the Trustee or the Holders may
extend to, or make with, the Company, any Guarantor or any other Person, or any
change in the time, manner or place of payment of, or in any other term of, all
or any of the Indenture Obligations, or any other amendment or waiver of, or
any consent to or departure from, this Indenture or the Securities, including
any increase or decrease in the Indenture Obligations;
	 
	 	(c)	 	the taking of security from the Company, any Guarantor or any
other Person, and the release, discharge or alteration of, or other dealing
with, such security;
	 
	 	(d)	 	the occurrence of any change in the laws, rules, regulations or
ordinances of any jurisdiction by any present or future action of any
governmental authority or court amending, varying, reducing or otherwise
affecting, or purporting to amend, vary, reduce or otherwise affect, any of the
Indenture Obligations and the obligations of any Guarantor hereunder;
	 
	 	(e)	 	the abstention from taking security from the Company, any
Guarantor or any other Person or from perfecting, continuing to keep perfected
or taking advantage of any security;
	 
	 	(f)	 	any loss, diminution of value or lack of enforceability of any
security received from the Company, any Guarantor or any other Person, and
including any other guarantees received by the Trustee;
	 
	 	(g)	 	any other dealings with the Company, any Guarantor or any other
Person, or with any security;
	 
	 	(h)	 	the Trustee’s or the Holders’ acceptance of compositions from
the Company or any Guarantor;
	 
	 	(i)	 	the application by the Holders or the Trustee of all monies at
any time and from time to time received from the Company, any Guarantor or any
other Person on account of any indebtedness and liabilities owing by the
Company or any Guarantor to the Trustee or the Holders, in such manner as the
Trustee or the Holders deems best and the changing of such application in whole
or in part and at any time or from time to time, or any manner of application
of collateral,

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	 	 	 	or proceeds thereof, to all or any of the Indenture Obligations, or the
manner of sale of any collateral;
	 
	 	(j)	 	the release or discharge of the Company or any Guarantor of the
Securities or of any Person liable directly as surety or otherwise by operation
of law or otherwise for the Securities, other than an express release in
writing given by the Trustee, on behalf of the Holders, of the liability and
obligations of any Guarantor hereunder;
	 
	 	(k)	 	any change in the name, business, capital structure or
governing instrument of the Company or any Guarantor or any refinancing or
restructuring of any of the Indenture Obligations;
	 
	 	(l)	 	the sale of the Company’s or any Guarantor’s business or any
part thereof;
	 
	 	(m)	 	subject to Section 1314, any merger or consolidation,
arrangement or reorganization of the Company, any Guarantor, any Person
resulting from the merger or consolidation of the Company or any Guarantor with
any other Person or any other successor to such Person or merged or
consolidated Person or any other change in the corporate existence, structure
or ownership of the Company or any Guarantor or any change in the corporate
relationship between the Company and any Guarantor, or any termination of such
relationship;
	 
	 	(n)	 	the insolvency, bankruptcy, liquidation, winding-up,
dissolution, receivership, arrangement, readjustment, assignment for the
benefit of creditors or distribution of the assets of the Company or its assets
or any resulting discharge of any obligations of the Company (whether voluntary
or involuntary) or of any Guarantor (whether voluntary or involuntary) or the
loss of corporate existence;
	 
	 	(o)	 	subject to Section 1314, any arrangement or plan of
reorganization affecting the Company or any Guarantor;
	 
	 	(p)	 	any failure, omission or delay on the part of the Company to
conform or comply with any term of this Indenture;
	 
	 	(q)	 	any limitation on the liability or obligations of the Company
or any other Person under this Indenture, or any discharge, termination,
cancellation, distribution, irregularity, invalidity or unenforceability in
whole or in part of this Indenture;

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	 	(r)	 	any other circumstance (including any statute of limitations)
that might otherwise constitute a defense available to, or discharge of, the
Company or any Guarantor; or
	 
	 	(s)	 	any modification, compromise, settlement or release by the
Trustee, or by operation of law or otherwise, of the Indenture Obligations or
the liability of the Company or any other obligor under the Securities, in
whole or in part, and any refusal of payment by the Trustee, in whole or in
part, from any other obligor or other guarantor in connection with any of the
Indenture Obligations, whether or not with notice to, or further assent by, or
any reservation of rights against, each of the Guarantors.

     Section 1304. Right to Demand Full Performance.

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

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     Section 1305. Waivers.

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

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

	 	(i)	 	enforce, assert, exercise, initiate or exhaust
any rights, remedies or recourse against the Company, any Guarantor or
any other Person under this Indenture or otherwise;
	 
	 	(ii)	 	value, realize upon, or dispose of any security
of the Company or any other Person held by the Trustee or the Holders;
	 
	 	(iii)	 	initiate or exhaust any other remedy which the
Trustee or the Holders may have in law or equity; or
	 
	 	(iv)	 	mitigate the damages resulting from any default
under this Indenture;

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

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     Section 1306. The Guarantors Remain Obligated in Event the Company Is No Longer Obligated
to Discharge Indenture Obligations.

               It is the express intention of the Trustee and the Guarantors that if for any reason the
Company has no legal existence, is or becomes under no legal obligation to discharge the Indenture
Obligations owing to the Trustee or the Holders by the Company or if any of the Indenture
Obligations owing by the Company to the Trustee or the Holders becomes irrecoverable from the
Company by operation of law or for any reason whatsoever, this Guarantee and the covenants,
agreements and obligations of the Guarantors contained in this Article Thirteen shall nevertheless
be binding upon the Guarantors, as principal debtor, until such time as all such Indenture
Obligations have been paid in full to the Trustee and all Indenture Obligations owing to the
Trustee or the Holders by the Company have been discharged, or such earlier time as Section 402
shall apply to the Securities and the Guarantors shall be responsible for the payment thereof to
the Trustee or the Holders upon demand.

     Section 1307. Fraudulent Conveyance; Contribution; Subrogation.

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

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

          (c) Each Guarantor hereby waives all rights of subrogation or contribution, whether arising by
contract or operation of law (including, without limitation, any such right arising under federal
bankruptcy law) or otherwise by reason of

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any payment by it pursuant to the provisions of this Article Thirteen until payment in full of all
Indenture Obligations.

     Section 1308. Guarantee Is in Addition to Other Security.

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

     Section 1309. Release of Security Interests.

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

     Section 1310. No Bar to Further Actions.

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

     Section 1311. Failure to Exercise Rights Shall Not Operate as a Waiver; No Suspension of
Remedies.

          (a) No failure to exercise and no delay in exercising, on the part of the Trustee or the
Holders, any right, power, privilege or remedy under this Article Thirteen

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and this Guarantee shall operate as a waiver thereof, nor shall any single or partial exercise of
any rights, power, privilege or remedy preclude any other or further exercise thereof, or the
exercise of any other rights, powers, privileges or remedies. The rights and remedies herein
provided for are cumulative and not exclusive of any rights or remedies provided in law or equity.

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

     Section 1312. Trustee’s Duties; Notice to Trustee.

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

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

     Section 1313. Successors and Assigns.

          All terms, agreements and conditions of this Article Thirteen shall extend to and be binding
upon each Guarantor and its successors and permitted assigns and shall enure to the benefit of and
may be enforced by the Trustee and its successors and assigns; provided, however, that the
Guarantors may not assign any of their rights or obligations hereunder other than in accordance
with Article Eight.

     Section 1314. Release of Guarantee.

          Concurrently with the payment in full of all of the Indenture Obligations, the Guarantors
shall be released from and relieved of their obligations under this Article Thirteen. Upon the
delivery by the Company to the Trustee of an Officers’ Certificate and, if requested by the
Trustee, an Opinion of Counsel to the effect that the transaction giving rise to the release of
this Guarantee was made by the Company in accordance with the provisions of this Indenture and the
Securities, the Trustee shall execute any

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documents reasonably required in order to evidence the release of the Guarantors from their
obligations under this Guarantee. If any of the Indenture Obligations are revived and reinstated
after the termination of this Guarantee, then all of the obligations of the Guarantors under this
Guarantee shall be revived and reinstated as if this Guarantee had not been terminated until such
time as the Indenture Obligations are paid in full, and each Guarantor shall enter into an
amendment to this Guarantee, reasonably satisfactory to the Trustee, evidencing such revival and
reinstatement.

          This Guarantee shall terminate with respect to each Guarantor and shall be automatically and
unconditionally released and discharged as provided in Section 1013(c).

     Section 1315. Execution of Guarantee.

          (a) To evidence the Guarantee, each Guarantor hereby agrees to execute the guarantee
substantially in the form set forth in Section 204, to be endorsed on each Security authenticated
and delivered by the Trustee and that this Indenture shall be executed on behalf of each Guarantor
by its Chairman of the Board, its President, its Chief Executive Officer, Chief Operating Officer
or one of its Vice Presidents. The signature of any of these officers on the Securities may be
manual or facsimile.

          (b) Any person that was not a Guarantor on the Issue Date may become a Guarantor by executing
and delivering to the Trustee (i) a supplemental indenture in form and substance satisfactory to
the Trustee, which subjects such person to the provisions (including the representations and
warranties) of this Indenture as a Guarantor, (ii) in the event that as of the date of such
supplemental indenture any Registrable Securities are outstanding, an instrument in form and
substance satisfactory to the Trustee which subjects such person to the provisions of the
Registration Rights Agreement with respect to such outstanding Registrable Securities, and (iii) an
Opinion of Counsel to the effect that such supplemental indenture has been duly authorized and
executed by such person and constitutes the legal, valid and binding obligation of such person
(subject to such customary assumptions and exceptions as may be acceptable to the Trustee in its
reasonable discretion).

          (c) If an officer whose signature is on this Indenture no longer holds that office at the time
the Trustee authenticates a Security on which this Guarantee is endorsed, such Guarantee shall be
valid nevertheless.

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     Section 1316. Guarantee Subordinate to Senior Guarantor Indebtedness.

          Each Guarantor covenants and agrees, and each Holder of a Guarantee, by his acceptance
thereof, likewise covenants and agrees, that, to the extent and in the manner hereinafter set forth
in this Article, the Indebtedness represented by the Guarantees is hereby expressly made
subordinate and subject in right of payment as provided in this Article to the prior payment in
full of all Senior Guarantor Indebtedness.

          This Article shall constitute a continuing offer to all Persons who, in reliance upon such
provisions, become holders of, or continue to hold Senior Guarantor Indebtedness; and such
provisions are made for the benefit of the holders of Senior Guarantor Indebtedness; and such
holders are made obligees hereunder and they or each of them may enforce such provisions.

     Section 1317. Payment Over of Proceeds Upon Dissolution of the Guarantor, etc.

          In the event of (a) any insolvency or bankruptcy case or proceeding, or any receivership,
liquidation, reorganization or other similar case or proceeding in connection therewith, relative
to any Guarantor or to its assets, or (b) any liquidation, dissolution or other winding up of any
Guarantor, whether voluntary or involuntary, or whether or not involving insolvency or bankruptcy,
or (c) any assignment for the benefit of creditors or any other marshaling of assets or liabilities
of any Guarantor, then and in any such event:

          (1) the holders of Senior Guarantor Indebtedness shall be entitled to receive payment in full
of all amounts due on or in respect of all Senior Guarantor Indebtedness before the Holders of the
Securities are entitled to receive any payment or distribution of any kind or character (excluding
Permitted Guarantor Junior Payment) on account of the Guarantee of such Guarantor or on account of
the purchase, redemption, defeasance or other acquisition of, or in respect of the Guarantees
(other than amounts previously set aside with the Trustee, or payments previously made, in either
case, pursuant to the provisions of Sections 402 and 403 of this Indenture); and

          (2) any payment or distribution of assets of any Guarantor of any kind or character, whether
in cash, property or securities (excluding Permitted Guarantor Junior Payment), by set-off or
otherwise, to which the Holders or the Trustee would be entitled but for the provisions of this
Article shall be paid by the liquidating trustee or agent or other Person making such payment or
distribution, whether a trustee in bankruptcy, a receiver or liquidating trustee or otherwise,
directly to the holders of Senior Guarantor Indebtedness or their representative or representatives
or to the trustee or trustees under any indenture under which any instruments evidencing any of
such Senior Guarantor Indebtedness may have been issued, ratably according to the aggregate amounts
remaining unpaid on account of the Senior Guarantor Indebtedness held or

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represented by each, to the extent necessary to make payment in full of all Senior Guarantor
Indebtedness remaining unpaid, after giving effect to any concurrent payment or distribution to the
holders of such Senior Guarantor Indebtedness; and

          (3) in the event that, notwithstanding the foregoing provisions of this Section, the Trustee
or the Holder of any Security shall have received any payment or distribution of assets of any
Guarantor of any kind or character, whether in cash, property or securities (excluding Permitted
Guarantor Junior Payment), in respect of the Guarantee of such Guarantor before all Senior
Guarantor Indebtedness is paid in full, then and in such event such payment or distribution
(excluding Permitted Guarantor Junior Payment) shall be paid over or delivered forthwith to the
trustee in bankruptcy, receiver, liquidating trustee, custodian, assignee, agent or other Person
making payments or distributions of assets of such Guarantor for application to the payment of all
Senior Guarantor Indebtedness remaining unpaid, to the extent necessary to pay all Senior Guarantor
Indebtedness in full after giving effect to any concurrent payment or distribution to or for the
holders of Senior Guarantor Indebtedness.

          The consolidation of any Guarantor with, or the merger of any Guarantor with or into, another
Person or the liquidation or dissolution of any Guarantor following the sale, assignment,
conveyance, transfer, lease or other disposal of its properties and assets substantially as an
entirety to another Person upon the terms and conditions set forth in Article Eight shall not be
deemed a dissolution, winding up, liquidation, reorganization, assignment for the benefit of
creditors or marshaling of assets and liabilities of such Guarantor for the purposes of this
Section if the Person formed by such consolidation or the surviving entity of such merger or the
Person which acquires by sale, assignment, conveyance, transfer, lease or other disposal of such
properties and assets substantially as an entirety, as the case may be, shall, as a part of such
consolidation, merger, sale, assignment, conveyance, transfer, lease or other disposal, comply with
the conditions set forth in Article Eight.

     Section 1318. Suspension of Payment When Designated Senior Guarantor Indebtedness in
Default.

          (a) Upon the maturity of any Senior Guarantor Indebtedness by lapse of time, acceleration or
otherwise, all principal thereof and interest thereon and other amounts due in connection therewith
shall first be paid in full or such payment duly provided for before any payment is made by any of
the Guarantors or any Person acting on behalf of any of the Guarantors in respect of the Guarantee
of such Guarantor.

          (b) No payment (excluding payments in the form of Permitted Guarantor Junior Payment) shall be
made by any Guarantor in respect of its Guarantee during the period in which Section 1317 shall be
applicable, during any suspension of payments in effect under Section 1403(a) of this Indenture or
during any Payment Blockage Period in effect under Sections 1403(b) and (c) of this Indenture.

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          (c) In the event that, notwithstanding the foregoing, any Guarantor shall make any
payment to the Trustee or the Holder of its Guarantee prohibited by the foregoing provisions of
this Section, then and in such event such payment shall be paid over and delivered forthwith to a
Senior Guarantor Representative of the holders of the Senior Guarantor Indebtedness or as a court
of competent jurisdiction shall direct.

     Section 1319. Payment Permitted by Each of the Guarantors if No Default.

     Nothing contained in this Article, elsewhere in this Indenture or in any of the Securities
shall prevent any Guarantor, at any time except during the pendency of any case, proceeding,
dissolution, liquidation or other winding-up, assignment for the benefit of creditors or other
marshaling of assets and liabilities of such Guarantor referred to in Section 1317 or under the
conditions described in Section 1318, from making payments at any time on the Guarantees.

     Section 1320. Subrogation to Rights of Holders of Senior Guarantor Indebtedness.

     After the payment in full of all Senior Guarantor Indebtedness, the Holders of the Guarantees
shall be subrogated to the rights of the holders of such Senior Guarantor Indebtedness to receive
payments and distributions of cash, property and securities applicable to the Senior Guarantor
Indebtedness until the payment on the Guarantees shall be paid in full. For purposes of such
subrogation, no payments or distributions to the holders of Senior Guarantor Indebtedness of any
cash, property or securities to which the Holders of the Guarantees or the Trustee would be
entitled except for the provisions of this Article, and no payments over pursuant to the provisions
of this Article to the holders of Senior Guarantor Indebtedness by Holders of the Guarantees or the
Trustee, shall, as among any Guarantor, its creditors other than holders of Senior Guarantor
Indebtedness, and the Holders of the Guarantees, be deemed to be a payment or distribution by such
Guarantor to or on account of the Senior Guarantor Indebtedness.

     Section 1321. Provisions Solely to Define Relative Rights.

     The provisions of Sections 1316 through 1329 of this Indenture are intended solely for the
purpose of defining the relative rights of the Holders of the Guarantees on the one hand and the
holders of Senior Guarantor Indebtedness on the other hand. Nothing contained in this Article or
elsewhere in this Indenture or in the Guarantees is intended to or shall (a) impair, as among any
Guarantor, its creditors other than holders of Senior Guarantor Indebtedness and the Holders of the
Guarantees, the obligation such Guarantor, which is absolute and unconditional, to pay to the
Holders of the Guarantees the payment on the Guarantees as and when the same shall become due and
payable in accordance with their terms; or (b) affect the relative rights against each of the
Guarantors of the Holders of the Guarantees and creditors of each of the Guarantors other

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than the holders of Senior Guarantor Indebtedness; or (c) prevent the Trustee or the Holder of
any Guarantee from exercising all remedies otherwise permitted by applicable law upon default under
this Indenture, subject to the rights, if any, under this Article of the holders of Senior
Guarantor Indebtedness (1) in any case, proceeding, dissolution, liquidation or other winding up,
assignment for the benefit of creditors or other marshaling of assets and liabilities of the
Guarantors referred to in Section 1317, to receive, pursuant to and in accordance with such
Section, cash, property and securities otherwise payable or deliverable to the Trustee or such
Holder, or (2) under the conditions specified in Section 1318, to prevent any payment prohibited by
such Section or enforce their rights pursuant to Section 1318(c).

     Section 1322. Trustee to Effectuate Subordination.

     Each Holder of a Guarantee by such Holder’s acceptance thereof authorizes and directs the
Trustee on such Holder’s behalf to take such action as may be necessary or appropriate to
effectuate the subordination provided in this Article and appoints the Trustee such Holder’s
attorney-in-fact for any and all such purposes, including, in the event of any dissolution,
winding-up, liquidation or reorganization of any Guarantor whether in bankruptcy, insolvency,
receivership proceedings, or otherwise, the timely filing of a claim for the unpaid balance of the
indebtedness of any Guarantor owing to such Holder in the form required in such proceedings and the
causing of such claim to be approved.

     Section 1323. No Waiver of Subordination Provisions.

     (a) No right of any present or future holder of any Senior Guarantor Indebtedness to enforce
subordination as herein provided shall at any time in any way be prejudiced or impaired by any act
or failure to act on the part of any Guarantor or by any act or failure to act, in good faith, by
any such holder, or by any non-compliance by any Guarantor with the terms, provisions and covenants
of this Indenture, regardless of any knowledge thereof any such holder may have or be otherwise
charged with.

     (b) Without limiting the generality of subsection (a) of this Section, the holders of Senior
Guarantor Indebtedness may, at any time and from time to time, without the consent of or notice to
the Trustee or the Holders of the Guarantees, without incurring responsibility to the Holders of
the Guarantees and without impairing or releasing the subordination provided in this Article or the
obligations hereunder of the Holders of the Guarantees to the holders of Senior Guarantor
Indebtedness, do any one or more of the following: (1) change the manner, place or terms of
payment or extend the time of payment of, or renew or alter, Senior Guarantor Indebtedness or any
instrument evidencing the same or any agreement under which Senior Guarantor Indebtedness is
outstanding; (2) sell, exchange, release or otherwise deal with any property pledged, mortgaged or
otherwise securing Senior Guarantor Indebtedness; (3) release any Person

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liable in any manner for the collection or payment of Senior Guarantor Indebtedness; and (4)
exercise or refrain from exercising any rights against any of the Guarantors and any other Person;
provided, however, that in no event shall any such actions limit the right of the Holders of the
Guarantees to take any action to accelerate the maturity of the Securities pursuant to Article Five
of this Indenture or to pursue any rights or remedies hereunder or under applicable laws if the
taking of such action does not otherwise violate the terms of this Article.

     Section 1324. Notice to Trustee by Each of the Guarantors.

     (a) Each Guarantor shall give prompt written notice to the Trustee of any fact known to such
Guarantor which would prohibit the making of any payment to or by the Trustee in respect of the
Guarantee. Notwithstanding the provisions of this Article or any other provision of this
Indenture, the Trustee shall not be charged with knowledge of the existence of any facts which
would prohibit the making of any payment to or by the Trustee in respect of the Guarantees, unless
and until the Trustee shall have received written notice thereof from any Guarantor or a holder of
Senior Guarantor Indebtedness or from a Senior Guarantor Representative or any trustee, fiduciary
or agent therefor; and, prior to the receipt of any such written notice, the Trustee shall be
entitled in all respects to assume that no such facts exist; provided, however, that if the Trustee
shall not have received the notice provided for in this Section by Noon, Eastern Time, on the
Business Day prior to the date upon which by the terms hereof any money may become payable for any
purpose (including, without limitation, the payment of the principal of, premium, if any, or
interest on any Guarantee), then, anything herein contained to the contrary notwithstanding but
without limiting the rights and remedies of the holders of Senior Guarantor Indebtedness, a Senior
Guarantor Representative or any trustee, fiduciary or agent thereof, the Trustee shall have full
power and authority to receive such money and to apply the same to the purpose for which such money
was received and shall not be affected by any notice to the contrary which may be received by it
after such date; nor shall the Trustee be charged with knowledge of the curing of any default or
the elimination of the act or condition preventing any such payment unless and until the Trustee
shall have received an Officers’ Certificate to such effect.

          (b) The Trustee shall be entitled to rely on the delivery to it of a written notice to the
Trustee and each Guarantor by a Person representing himself to be a Senior Guarantor Representative
or a holder of Senior Guarantor Indebtedness (or a trustee, fiduciary or agent therefor) to
establish that such notice has been given by a Senior Guarantor Representative or a holder of
Senior Guarantor Indebtedness (or a trustee, fiduciary or agent therefor); provided, however, that
failure to give such notice to the Company or any Guarantor shall not affect in any way the ability
of the Trustee to rely on such notice. In the event that the Trustee determines in good faith that
further evidence is required with respect to the right of any Person as a holder of Senior
Guarantor Indebtedness to participate in any payment or distribution pursuant to this Article, the

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Trustee may request such Person to furnish evidence to the reasonable satisfaction of the
Trustee as to the amount of Senior Guarantor Indebtedness held by such Person, the extent to which
such Person is entitled to participate in such payment or distribution and any other facts
pertinent to the rights of such Person under this Article, and if such evidence is not furnished,
the Trustee may defer any payment to such Person pending judicial determination as to the right of
such Person to receive such payment.

     Section 1325. Reliance on Judicial Orders or Certificates.

     Upon any payment or distribution of assets of any Guarantor referred to in this Article, the
Trustee and the Holders of the Guarantees shall be entitled to rely upon any order or decree
entered by any court of competent jurisdiction in which such insolvency, bankruptcy, receivership,
liquidation, reorganization, dissolution, winding up or similar case or proceeding is pending, or a
certificate of the trustee in bankruptcy, receiver, liquidating trustee, custodian, assignee for
the benefit of creditors, agent or other person making such payment or distribution, or a
certificate of a Senior Guarantor Representative delivered to the Trustee or to the Holders of
Guarantees for the purpose of ascertaining the Persons entitled to participate in such payment or
distribution, the holders of Senior Guarantor Indebtedness and other indebtedness of such
Guarantor, the amount thereof or payable thereon, the amount or amounts paid or distributed thereon
and all other facts pertinent thereto or to this Article, provided that the foregoing shall apply
only if such court has been fully apprised of the provisions of this Article.

     Section 1326. Rights of Trustee as a Holder of Senior Guarantor Indebtedness; Preservation
of Trustee’s Rights.

     The Trustee in its individual capacity shall be entitled to all the rights set forth in this
Article with respect to any Senior Guarantor Indebtedness which may at any time be held by it, to
the same extent as any other holder of Senior Guarantor Indebtedness, and nothing in this Indenture
shall deprive the Trustee of any of its rights as such holder. Nothing in this Article shall apply
to claims of, or payments to, the Trustee under or pursuant to Section 607.

     Section 1327. Article Applicable to Paying Agents.

     In case at any time any Paying Agent other than the Trustee shall have been appointed by the
Company and be then acting under this Indenture, the term “Trustee” as used in this Article shall
in such case (unless the context otherwise requires) be construed as extending to and including
such Paying Agent within its meaning as fully for all intents and purposes as if such Paying Agent
were named in this Article in addition to or in place of the Trustee; provided, however, that
Section 1326 shall not apply to the Company or any Affiliate of the Company if it or such Affiliate
acts as Paying Agent.

     Section 1328. No Suspension of Remedies.

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     Nothing contained in this Article shall limit the right of the Trustee or the Holders of
Guarantees to take any action to accelerate the maturity of the Securities pursuant to Article Five
of this Indenture or to pursue any rights or remedies hereunder or under applicable law, subject to
the rights, if any, under this Article of the holders, from time to time, of Senior Guarantor
Indebtedness to receive the cash, property or securities receivable upon the exercise of such
rights or remedies.

     Section 1329. Trustee’s Relation to Senior Guarantor Indebtedness.

     With respect to the holders of Senior Guarantor Indebtedness, the Trustee undertakes to
perform or to observe only such of its covenants and obligations as are specifically set forth in
this Article, and no implied covenants or obligations with respect to the holders of Senior
Guarantor Indebtedness shall be read into this Article against the Trustee. The Trustee shall not
be deemed to owe any fiduciary duty to the holders of Senior Guarantor Indebtedness and the Trustee
shall not be liable to any holder of Senior Guarantor Indebtedness if it shall in good faith
mistakenly (absent negligence or willful misconduct) pay over or deliver to Holders, a Guarantor or
any other Person moneys or assets to which any holder of Senior Guarantor Indebtedness shall be
entitled by virtue of this Article or otherwise.

ARTICLE FOURTEEN

SUBORDINATION OF SECURITIES

     Section 1401. Securities Subordinate to Senior Indebtedness.

          The Company covenants and agrees, and each Holder of a Security, by his acceptance thereof,
likewise covenants and agrees, that, to the extent and in the manner hereinafter set forth in this
Article, the Indebtedness represented by the Securities and the payment of the principal of,
premium, if any, and interest on, the Securities are hereby expressly made subordinate and subject
in right of payment as provided in this Article to the prior payment in full of all Senior
Indebtedness.

          This Article Fourteen shall constitute a continuing offer to all Persons who, in reliance upon
such provisions, become holders of, or continue to hold Senior Indebtedness; and such provisions
are made for the benefit of the holders of Senior Indebtedness; and such holders are made obligees
hereunder and they or each of them may enforce such provisions.

     Section 1402. Payment Over of Proceeds Upon Dissolution, etc.

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          In the event of (a) any insolvency or bankruptcy case or proceeding, or any receivership,
liquidation, reorganization or other similar case or proceeding in connection therewith, relative
to the Company or its assets, or (b) any liquidation, dissolution or other winding up of the
Company, whether voluntary or involuntary, or whether or not involving insolvency or bankruptcy, or
(c) any assignment for the benefit of creditors or any other marshaling of assets or liabilities of
the Company, then and in any such event:

          (1) the holders of Senior Indebtedness shall be entitled to receive payment in full of all
amounts due on or in respect of Senior Indebtedness before the Holders of the Securities are
entitled to receive any payment or distribution of any kind or character (excluding Permitted
Junior Payment) on account of the principal of, premium, if any, or interest on the Securities or
on account of the purchase, redemption, defeasance or other acquisition of, or in respect of, the
Securities (other than amounts previously set aside with the Trustee, or payments previously made,
in either case, pursuant to the provisions of Sections 402 and 403 of this Indenture); and

          (2) any payment or distribution of assets of the Company of any kind or character, whether in
cash, property or securities (excluding Permitted Junior Payment), by set-off or otherwise, to
which the Holders or the Trustee would be entitled but for the provisions of this Article shall be
paid by the liquidating trustee or agent or other Person making such payment or distribution,
whether a trustee in bankruptcy, a receiver or liquidating trustee or otherwise, directly to the
holders of Senior Indebtedness or their representative or representatives or to the trustee or
trustees under any indenture under which any instruments evidencing any of such Senior Indebtedness
may have been issued, ratably according to the aggregate amounts remaining unpaid on account of the
Senior Indebtedness held or represented by each, to the extent necessary to make payment in full,
of all Senior Indebtedness remaining unpaid, after giving effect to any concurrent payment or
distribution to the holders of such Senior Indebtedness; and

          (3) in the event that, notwithstanding the foregoing provisions of this Section, the Trustee
or the Holder of any Security shall have received any payment or distribution of assets of the
Company of any kind or character, whether in cash, property or securities (excluding Permitted
Junior Payment), in respect of principal, premium, if any, and interest on the Securities before
all Senior Indebtedness is paid in full, then and in such event such payment or distribution
(excluding Permitted Junior Payment) shall be paid over or delivered forthwith to the trustee in
bankruptcy, receiver, liquidating trustee, custodian, assignee, agent or other Person making
payments or distributions of assets of the Company for application to the payment of all Senior
Indebtedness remaining unpaid, to the extent necessary to pay all Senior Indebtedness in full after
giving effect to any concurrent payment or distribution to or for the holders of Senior
Indebtedness.

          The consolidation of the Company with, or the merger of the Company with or into, another
Person or the liquidation or dissolution of the Company following the sale, assignment, conveyance,
transfer, lease or other disposal of its properties and

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assets substantially as an entirety to another Person upon the terms and conditions set forth
in Article Eight shall not be deemed a dissolution, winding up, liquidation, reorganization,
assignment for the benefit of creditors or marshaling of assets and liabilities of the Company for
the purposes of this Section if the Person formed by such consolidation or the surviving entity of
such merger or the Person which acquires by sale, assignment, conveyance, transfer, lease or other
disposal of such properties and assets substantially as an entirety, as the case may be, shall, as
a part of such consolidation, merger, sale, assignment, conveyance, transfer, lease or other
disposal, comply with the conditions set forth in Article Eight.

     Section 1403. Suspension of Payment When Designated Senior Indebtedness in Default.

          (a) Unless Section 1402 shall be applicable, upon the occurrence and during the continuance of
any default in the payment of any Designated Senior Indebtedness beyond any applicable grace period
(a “Payment Default”) and after the receipt by the Trustee from a Senior Representative of any
Designated Senior Indebtedness of written notice of such default, no payment (other than amounts
previously set aside with the Trustee or payments previously made, in either case, pursuant to
Section 402 or 403 in this Indenture) or distribution of any assets of the Company or any
Subsidiary of any kind or character (excluding Permitted Junior Payment) may be made by the Company
on account of the principal of, premium, if any, or interest on, the Securities, or on account of
the purchase, redemption, defeasance or other acquisition of or in respect of, the Securities
unless and until such Payment Default shall have been cured or waived or shall have ceased to exist
or such Designated Senior Indebtedness shall have been discharged or paid in full, after which the
Company shall (subject to the other provisions of this Article Fourteen) resume making any and all
required payments in respect of the Securities, including any missed payments.

          (b) Unless Section 1402 shall be applicable, (1) upon the occurrence and during the
continuance of any non-payment default or non-payment event of default with respect to any
Designated Senior Indebtedness pursuant to which the maturity thereof may then be accelerated
immediately (a “Non-payment Default”) and (2) after the receipt by the Trustee and the Company from
a Senior Representative of any Designated Senior Indebtedness of written notice of such Non-payment
Default, no payment (other than any amounts previously set aside with the Trustee, or payments
previously made, in either case, pursuant to the provisions of Sections 402 or 403 in this
Indenture) or distribution of any assets of the Company of any kind or character (excluding
Permitted Junior Payment) may be made by the Company or any Subsidiary on account of the principal
of, premium, if any, or interest on, the Securities, or on account of the purchase, redemption,
defeasance or other acquisition of, or in respect of, the Securities for the period specified below
(“Payment Blockage Period”).

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          (c) The Payment Blockage Period shall commence upon the receipt of notice of the Non-payment
Default by the Trustee and the Company from a Senior Representative and shall end on the earliest
of (i) the 179th day after such commencement, (ii) the date on which such Non-payment Default (and
all other Non-payment Defaults as to which notice is given after such Payment Blockage Period is
initiated) is cured, waived or ceases to exist or on which such Designated Senior Indebtedness is
discharged or paid in full, or (iii) the date on which such Payment Blockage Period (and all
Non-payment Defaults as to which notice is given after such Payment Blockage Period is initiated)
shall have been terminated by written notice to the Company or the Trustee from the Senior
Representative initiating such Payment Blockage Period, after which, in the case of clauses (i),
(ii) and (iii), the Company shall promptly resume making any and all required payments in respect
of the Securities, including any missed payments. In no event will a Payment Blockage Period
extend beyond 179 days from the date of the receipt by the Company and the Trustee of the notice
initiating such Payment Blockage Period (such 179-day period referred to as the “Initial Period”).
Any number of notices of Non-payment Defaults may be given during the Initial Period; provided that
during any period of 365 consecutive days only one Payment Blockage Period, during which payment of
principal of, premium, if any, or interest on, the Securities may not be made, may commence and the
duration of such period may not exceed 179 days. No Non-payment Default with respect to any
Designated Senior Indebtedness that existed or was continuing on the date of the commencement of
any Payment Blockage Period will be, or can be, made the basis for the commencement of a second
Payment Blockage Period, whether or not within a period of 365 consecutive days, unless such
default has been cured or waived for a period of not less than 90 consecutive days. The Company
shall deliver a notice to the Trustee promptly after the date on which any Non-payment Default is
cured or waived or ceases to exist or on which the Designated Senior Indebtedness related thereto
is discharged or paid in full, and the Trustee is authorized to act in reliance on such notice.

          (d) In the event that, notwithstanding the foregoing, the Company shall make any payment to
the Trustee or the Holder of any Security prohibited by the foregoing provisions of this Section,
then and in such event such payment shall be paid over and delivered forthwith to a Senior
Representative of the holders of the Designated Senior Indebtedness or as a court of competent
jurisdiction shall direct.

     Section 1404. Payment Permitted if No Default.

          Nothing contained in this Article, elsewhere in this Indenture or in any of the Securities
shall prevent the Company, at any time except during the pendency of any case, proceeding,
dissolution, liquidation or other winding-up, assignment for the benefit of creditors or other
marshaling of assets and liabilities of the Company referred to in Section 1402 or under the
conditions described in Section 1403, from making payments at any time of principal of, premium, if
any, or interest on the Securities.

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     Section 1405. Subrogation to Rights of Holders of Senior Indebtedness.

          After the payment in full, the Holders of the Securities shall be subrogated to the rights of
the holders of such Senior Indebtedness to receive payments and distributions of cash, property and
securities applicable to the Senior Indebtedness until the principal of, premium, if any, and
interest on, the Securities shall be paid in full. For purposes of such subrogation, no payments
or distributions to the holders of Senior Indebtedness of any cash, property or securities to which
the Holders of the Securities or the Trustee would be entitled except for the provisions of this
Article, and no payments over pursuant to the provisions of this Article to the holders of Senior
Indebtedness by Holders of the Securities or the Trustee, shall, as among the Company, its
creditors other than holders of Senior Indebtedness, and the Holders of the Securities, be deemed
to be a payment or distribution by the Company to or on account of the Senior Indebtedness.

     Section 1406. Provisions Solely to Define Relative Rights.

          The provisions of this Article are intended solely for the purpose of defining the relative
rights of the Holders of the Securities on the one hand and the holders of Senior Indebtedness on
the other hand. Nothing contained in this Article or elsewhere in this Indenture or in the
Securities is intended to or shall (a) impair, as among the Company, its creditors other than
holders of Senior Indebtedness and the Holders of the Securities, the obligation of the Company,
which is absolute and unconditional, to pay to the Holders of the Securities the principal of,
premium, if any, and interest on, the Securities as and when the same shall become due and payable
in accordance with their terms; or (b) affect the relative rights against the Company or the
Holders of the Securities and creditors of the Company other than the holders of Senior
Indebtedness; or (c) prevent the Trustee or the Holder of any Security from exercising all remedies
otherwise permitted by applicable law upon default under this Indenture, subject to the rights, if
any, under this Article of the holders of Senior Indebtedness (1) in any case, proceeding,
dissolution, liquidation or other winding up, assignment for the benefit of creditors or other
marshaling of assets and liabilities of the Company referred to in Section 1402, to receive,
pursuant to and in accordance with such Section, cash, property and securities otherwise payable or
deliverable to the Trustee or such Holder, or (2) under the conditions specified in Section 1403,
to prevent any payment prohibited by such Section or enforce their rights pursuant to Section
1403(d).

     Section 1407. Trustee to Effectuate Subordination.

          Each Holder of a Security by such Holder’s acceptance thereof authorizes and directs the
Trustee on such Holder’s behalf to take such action as may be necessary or appropriate to
effectuate the subordination provided in this Article and appoints the Trustee such Holder’s
attorney-in-fact for any and all such purposes, including, in the event of any dissolution,
winding-up, liquidation or reorganization of the Company

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whether in bankruptcy, insolvency, receivership proceedings, or otherwise, the timely filing
of a claim for the unpaid balance of the indebtedness of the Company owing to such Holder in the
form required in such proceedings and the causing of such claim to be approved.

     Section 1408. No Waiver of Subordination Provisions.

          (a) No right of any present or future holder of any Senior Indebtedness to enforce
subordination as herein provided shall at any time in any way be prejudiced or impaired by any act
or failure to act on the part of the Company or by any act or failure to act, in good faith, by any
such holder, or by any non-compliance by the Company with the terms, provisions and covenants of
this Indenture, regardless of any knowledge thereof any such holder may have or be otherwise
charged with.

          (b) Without limiting the generality of subsection (a) of this Section, the holders of Senior
Indebtedness may, at any time and from time to time, without the consent of or notice to the
Trustee or the Holders of the Securities, without incurring responsibility to the Holders of the
Securities and without impairing or releasing the subordination provided in this Article or the
obligations hereunder of the Holders of the Securities to the holders of Senior Indebtedness, do
any one or more of the following: (1) change the manner, place or terms of payment or extend the
time of payment of, or renew or alter, Senior Indebtedness or any instrument evidencing the same or
any agreement under which Senior Indebtedness is outstanding; (2) sell, exchange, release or
otherwise deal with any property pledged, mortgaged or otherwise securing Senior Indebtedness; (3)
release any Person liable in any manner for the collection or payment of Senior Indebtedness; and
(4) exercise or refrain from exercising any rights against the Company and any other Person;
provided, however, that in no event shall any such actions limit the right of the Holders of the
Securities to take any action to accelerate the maturity of the Securities pursuant to Article Five
of this Indenture or to pursue any rights or remedies hereunder or under applicable laws if the
taking of such action does not otherwise violate the terms of this Article.

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     Section 1409. Notice to Trustee.

          (a) The Company shall give prompt written notice to the Trustee of any fact known to the
Company which would prohibit the making of any payment to or by the Trustee in respect of the
Securities. Notwithstanding the provisions of this Article or any other provision of this
Indenture, the Trustee shall not be charged with knowledge of the existence of any facts which
would prohibit the making of any payment to or by the Trustee in respect of the Securities, unless
and until the Trustee shall have received written notice thereof from the Company or a holder of
Senior Indebtedness or from a Senior Representative or any trustee, fiduciary or agent therefor;
and, prior to the receipt of any such written notice, the Trustee shall be entitled in all respects
to assume that no such facts exist; provided, however, that if the Trustee shall not have received
the notice provided for in this Section by Noon, Eastern Time, on the Business Day prior to the
date upon which by the terms hereof any money may become payable for any purpose (including,
without limitation, the payment of the principal of, premium, if any, or interest on any Security),
then, anything herein contained to the contrary notwithstanding but without limiting the rights and
remedies of the holders of Senior Indebtedness, a Senior Representative or any trustee, fiduciary
or agent thereof, the Trustee shall have full power and authority to receive such money and to
apply the same to the purpose for which such money was received and shall not be affected by any
notice to the contrary which may be received by it after such date; nor shall the Trustee be
charged with knowledge of the curing of any default or the elimination of the act or condition
preventing any such payment unless and until the Trustee shall have received an Officers’
Certificate to such effect.

          (b) The Trustee shall be entitled to rely on the delivery to it of a written notice to the
Trustee and the Company by a Person representing himself to be a Senior Representative or a holder
of Senior Indebtedness (or a trustee, fiduciary or agent therefor) to establish that such notice
has been given by a Senior Representative or a holder of Senior Indebtedness (or a trustee,
fiduciary or agent therefor); provided, however, that failure to give such notice to the Company
shall not affect in any way the ability of the Trustee to rely on such notice. In the event that
the Trustee determines in good faith that further evidence is required with respect to the right of
any Person as a holder of Senior Indebtedness to participate in any payment or distribution
pursuant to this Article, the Trustee may request such Person to furnish evidence to the reasonable
satisfaction of the Trustee as to the amount of Senior Indebtedness held by such Person, the extent
to which such Person is entitled to participate in such payment or distribution and any other facts
pertinent to the rights of such Person under this Article, and if such evidence is not furnished,
the Trustee may defer any payment to such Person pending judicial determination as to the right of
such Person to receive such payment.

- 167 -

 

     Section 1410. Reliance on Judicial Orders or Certificates.

          Upon any payment or distribution of assets of the Company referred to in this Article, the
Trustee and the Holders of the Securities shall be entitled to rely upon any order or decree
entered by any court of competent jurisdiction in which such insolvency, bankruptcy, receivership,
liquidation, reorganization, dissolution, winding up or similar case or proceeding is pending, or a
certificate of the trustee in bankruptcy, receiver, liquidating trustee, custodian, assignee for
the benefit of creditors, agent or other person making such payment or distribution, or a
certificate of a Senior Representative, delivered to the Trustee or to the Holders of Securities
for the purpose of ascertaining the Persons entitled to participate in such payment or
distribution, the holders of Senior Indebtedness and other indebtedness of the Company, the amount
thereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts
pertinent thereto or to this Article, provided that the foregoing shall apply only if such court
has been fully apprised of the provisions of this Article.

     Section 1411. Rights of Trustee as a Holder of Senior Indebtedness; Preservation of
Trustee’s Rights.

          The Trustee in its individual capacity shall be entitled to all the rights set forth in this
Article with respect to any Senior Indebtedness which may at any time be held by it, to the same
extent as any other holder of Senior Indebtedness, and nothing in this Indenture shall deprive the
Trustee of any of its rights as such holder. Nothing in this Article shall apply to claims of, or
payments to, the Trustee under or pursuant to Section 607.

     Section 1412. Article Applicable to Paying Agents.

          In case at any time any Paying Agent other than the Trustee shall have been appointed by the
Company and be then acting under this Indenture, the term “Trustee” as used in this Article shall
in such case (unless the context otherwise requires) be construed as extending to and including
such Paying Agent within its meaning as fully for all intents and purposes as if such Paying Agent
were named in this Article in addition to or in place of the Trustee; provided, however, that
Section 1411 shall not apply to the Company or any Affiliate of the Company if it or such Affiliate
acts as Paying Agent.

     Section 1413. No Suspension of Remedies.

          Nothing contained in this Article shall limit the right of the Trustee or the Holders of
Securities to take any action to accelerate the maturity of the Securities pursuant to Article Five
of this Indenture or to pursue any rights or remedies hereunder or under applicable law, subject to
the rights, if any, under this Article of the holders, from

- 168 -

 

time to time, of Senior Indebtedness to receive the cash, property or securities receivable
upon the exercise of such rights or remedies.

     Section 1414. Trustee’s Relation to Senior Indebtedness.

          With respect to the holders of Senior Indebtedness, the Trustee undertakes to perform or to
observe only such of its covenants and obligations as are specifically set forth in this Article,
and no implied covenants or obligations with respect to the holders of Senior Indebtedness shall be
read into this Article against the Trustee. The Trustee shall not be deemed to owe any fiduciary
duty to the holders of Senior Indebtedness and the Trustee shall not be liable to any holder of
Senior Indebtedness if it shall in good faith mistakenly (absent negligence or willful misconduct)
pay over or deliver to Holders, the Company or any other Person moneys or assets to which any
holder of Senior Indebtedness shall be entitled by virtue of this Article or otherwise.

*       *       *

- 169 -

 

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

	 	 	 	 	 
	 	SONIC AUTOMOTIVE, INC.

 	 
	 	By:  	/s/ David P. Cosper
 	 
	 	 	Name:  	David P. Cosper 	 
	 	 	Title:  	Vice Chairman and Chief Financial Officer 	 
	 

	 	 	 
	 	 	ADI OF THE SOUTHEAST LLC (a South Carolina limited
liability company)

	 	 	ANTREV, LLC (a North Carolina limited liability company)

	 	 	ARNGAR, INC. (a North Carolina corporation)

	 	 	AUTOBAHN, INC. (a California corporation)

	 	 	AVALON FORD, INC. (a Delaware corporation)

	 	 	CASA FORD OF HOUSTON, INC. (a Texas corporation)

	 	 	CORNERSTONE ACCEPTANCE CORPORATION (a Florida 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 F, INC. (a California corporation)

	 	 	FAA MARIN LR, 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, INC. (a California corporation)

	 	 	FAA SERRAMONTE H, INC. (a California corporation)

	 	 	FAA SERRAMONTE L, 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 FORD, INC. (a South Carolina corporation)

	 	 	FORT MYERS COLLISION CENTER, LLC (a Florida limited
liability company)

- 170 -

 

	 	 	 
	 	 	FRANCISCAN MOTORS, INC. (a California corporation)

	 	 	FRANK PARRA AUTOPLEX, INC. (a Texas corporation)

	 	 	FRONTIER OLDSMOBILE – CADILLAC, INC. (a North Carolina
corporation)

	 	 	HMC FINANCE ALABAMA, INC. (an Alabama corporation)

	 	 	KRAMER MOTORS INCORPORATED (a California corporation)

	 	 	L DEALERSHIP GROUP, INC. (a Texas corporation)

	 	 	MARCUS DAVID CORPORATION (a North Carolina corporation)

	 	 	MASSEY CADILLAC, INC. (a Tennessee corporation)

	 	 	MASSEY CADILLAC, INC. (a Texas corporation)

	 	 	MOUNTAIN STATES MOTORS CO., INC. (a Colorado corporation)

	 	 	ROYAL MOTOR COMPANY, INC. (an Alabama corporation)

	 	 	SAI AL HC1, INC. (an Alabama corporation)

	 	 	SAI AL HC2, INC. (an Alabama corporation), on behalf of
itself and as sole member of:

	 	 	SAI
IRONDALE L, LLC (an Alabama limited liability
company)

	 	 	SAI ANN ARBOR IMPORTS, LLC (a Michigan limited liability
company)

	 	 	SAI ATLANTA B, LLC (a Georgia limited liability company)

	 	 	SAI BROKEN ARROW C, LLC (an Oklahoma limited liability
company)

	 	 	SAI CHARLOTTE M, LLC (a North Carolina limited liability
company)

	 	 	SAI COLUMBUS MOTORS, LLC (an Ohio limited liability
company)

	 	 	SAI COLUMBUS VWK, LLC (an Ohio limited liability company)

	 	 	SAI FL HC1, INC. (a Florida corporation)

	 	 	SAI FL HC2, INC. (a Florida corporation), on behalf of
itself and as sole member of:

	 	 	SAI
CLEARWATER T, LLC (a Florida limited liability
company)

	 	 	SAI FL HC3, INC. (a Florida corporation)

	 	 	SAI FL HC4, INC. (a Florida corporation)

	 	 	SAI FL HC5, INC. (a Florida corporation)

	 	 	SAI FL HC6, INC. (a Florida corporation)

	 	 	SAI FL HC7, INC. (a Florida corporation)

	 	 	SAI FORT MYERS B, LLC (a Florida limited liability company)

	 	 	SAI FORT MYERS H, LLC (a Florida limited liability company)

	 	 	SAI FORT MYERS M, LLC (a Florida limited liability company)

	 	 	SAI FORT MYERS VW, LLC (a Florida limited liability
company)

- 171 -

 

	 	 	 
	 	 	SAI IRONDALE IMPORTS, LLC (an Alabama limited liability
company)

	 	 	SAI LANSING CH, LLC (a Michigan limited liability company)

	 	 	SAI LONG BEACH B, INC. (a California corporation)

	 	 	SAI MD HC1, INC. (a Maryland corporation), on behalf of
itself and as sole member of:

	 	 	SAI
ROCKVILLE L, LLC (a Maryland limited liability
company)

	 	 	SAI MONROVIA B, INC. (a California corporation)

	 	 	SAI MONTGOMERY B, LLC (an Alabama limited liability
company)

	 	 	SAI MONTGOMERY BCH, LLC (an Alabama limited liability
company)

	 	 	SAI MONTGOMERY CH, LLC (an Alabama limited liability
company)

	 	 	SAI NASHVILLE CSH, LLC (a Tennessee limited liability
company)

	 	 	SAI NASHVILLE H, LLC (a Tennessee limited liability
company)

	 	 	SAI NASHVILLE M, LLC (a Tennessee limited liability
company)

	 	 	SAI NASHVILLE MOTORS, LLC (a Tennessee limited liability
company)

	 	 	SAI NC HC2, INC. (a North Carolina corporation)

	 	 	SAI OH HC1, INC. (an Ohio corporation)

	 	 	SAI OK HC1, INC. (an Oklahoma corporation), on behalf of
itself and as sole member of the following entities:

	 	 	SAI
OKLAHOMA CITY T, LLC (an Oklahoma limited
liability company)

	 	 	SAI
TULSA T, LLC (an Oklahoma limited liability
company)

	 	 	SAI OKLAHOMA CITY C, LLC (an Oklahoma limited liability
company)

	 	 	SAI OKLAHOMA CITY H, LLC (an Oklahoma limited liability
company)

	 	 	SAI ORLANDO CS, LLC (a Florida limited liability company)

	 	 	SAI PEACHTREE, LLC (a Georgia limited liability company)

	 	 	SAI PLYMOUTH C, LLC (a Michigan limited liability company)

	 	 	SAI RIVERSIDE C, LLC (an Oklahoma limited liability
company)

	 	 	SAI ROCKVILLE IMPORTS, LLC (a Maryland limited liability
company)

	 	 	SAI TN HC1, LLC (a Tennessee limited liability company)

	 	 	SAI TN HC2, LLC (a Tennessee limited liability company)

	 	 	SAI TN HC3, LLC (a Tennessee limited liability company)

	 	 	SAI TULSA N, LLC (an Oklahoma limited liability company)

	 	 	SAI VA HC1, INC. (a Virginia corporation)

- 172 -

 

	 	 	 
	 	 	SANTA CLARA IMPORTED CARS, INC. (a California corporation)

	 	 	SONIC AGENCY, INC. (a Michigan corporation)

	 	 	SONIC AUTOMOTIVE F&I, LLC (a Nevada limited liability
company)

	 	 	SONIC AUTOMOTIVE OF CHATTANOOGA, LLC (a Tennessee limited
liability company)

	 	 	SONIC AUTOMOTIVE OF NASHVILLE, LLC (a Tennessee limited
liability company)

	 	 	SONIC AUTOMOTIVE OF NEVADA, INC. (a Nevada corporation), on
behalf of itself and as sole member of:

	 	 	SAI
GEORGIA, LLC (a Georgia limited liability
company), on behalf of itself and as general
partner of the following entities:

	 	 	SAI
GA HC1, LP (a Georgia limited
partnership), on behalf of itself and as
sole member of:

	 	 	SAI
STONE MOUNTAIN T, LLC (a Georgia
limited liability company)

	 	 	SONIC
PEACHTREE INDUSTRIAL BLVD., L.P. (a
Georgia limited partnership)

	 	 	SONIC
– STONE MOUNTAIN T, L.P. (a Georgia
limited partnership)

	 	 	SRE
GEORGIA – 1, L.P. (a Georgia limited
partnership)

	 	 	SRE
GEORGIA – 2, L.P. (a Georgia limited
partnership)

	 	 	SRE
GEORGIA – 3, L.P. (a Georgia limited
partnership)

	 	 	SONIC AUTOMOTIVE SUPPORT, LLC (a Nevada limited liability
company)

	 	 	SONIC AUTOMOTIVE WEST, LLC (a Nevada limited liability
company)

	 	 	SONIC AUTOMOTIVE – 1495 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 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 – 3700 WEST BROAD STREET, COLUMBUS, INC.
(an Ohio corporation)

	 	 	SONIC AUTOMOTIVE – 4000 WEST BROAD STREET, COLUMBUS, INC.
(an Ohio corporation)

	 	 	SONIC AUTOMOTIVE 5260 PEACHTREE INDUSTRIAL BLVD., LLC (a
Georgia limited liability company)

- 173 -

 

	 	 	 
	 	 	SONIC AUTOMOTIVE – 6008 N. DALE MABRY, FL, INC. (a Florida
corporation)

	 	 	SONIC AUTOMOTIVE – 9103 E. INDEPENDENCE, NC, LLC (a North
Carolina limited liability company)

	 	 	SONIC 2185 CHAPMAN RD., CHATTANOOGA, LLC (a Tennessee
limited liability company)

	 	 	SONIC – BUENA PARK H, INC. (a California corporation)

	 	 	SONIC – CALABASAS A, INC. (a California corporation)

	 	 	SONIC CALABASAS M, INC. (a California corporation)

	 	 	SONIC – CALABASAS V, INC. (a California corporation)

	 	 	SONIC – CAPITOL CADILLAC, INC. (a Michigan corporation)

	 	 	SONIC – CAPITOL IMPORTS, INC. (a South Carolina
corporation)

	 	 	SONIC – CARSON F, INC. (a California corporation)

	 	 	SONIC – CARSON LM, INC. (a California corporation)

	 	 	SONIC – CHATTANOOGA D EAST, LLC (a Tennessee limited
liability company)

	 	 	SONIC COAST CADILLAC, INC. (a California corporation)

	 	 	SONIC – DENVER T, INC. (a Colorado corporation)

	 	 	SONIC – DENVER VOLKSWAGEN, INC. (a Colorado corporation)

	 	 	SONIC DEVELOPMENT, LLC (a North Carolina limited liability
company)

	 	 	SONIC DIVISIONAL OPERATIONS, LLC (a Nevada limited
liability company)

	 	 	SONIC – DOWNEY CADILLAC, INC. (a California corporation)

	 	 	SONIC – ENGLEWOOD M, INC. (a Colorado corporation)

	 	 	SONIC ESTORE, INC. (a North Carolina corporation)

	 	 	SONIC – FORT MILL CHRYSLER JEEP, INC. (a South Carolina
corporation)

	 	 	SONIC – FORT MILL DODGE, INC. (a South Carolina
corporation)

	 	 	SONIC FREMONT, INC. (a California corporation)

	 	 	SONIC – HARBOR CITY H, INC. (a California corporation)

	 	 	SONIC – INTEGRITY DODGE LV, LLC (a Nevada limited liability
company)

	 	 	SONIC – LS, LLC (a Delaware limited liability company), on
behalf of itself and as general partner of:

	 	 	SONIC
– LS CHEVROLET, L.P. (a Texas limited
partnership)

	 	 	SONIC – LAKE NORMAN CHRYSLER JEEP, LLC (a North Carolina
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)

- 174 -

 

	 	 	 
	 	 	SONIC – LONE TREE CADILLAC, INC. (a Colorado corporation)

	 	 	SONIC – MANHATTAN FAIRFAX, INC. (a Virginia corporation)

	 	 	SONIC – MASSEY CHEVROLET, INC. (a California corporation)

	 	 	SONIC – MASSEY PONTIAC BUICK GMC, INC. (a Colorado
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 OF TEXAS, INC. (a Texas corporation), on behalf of
itself and as general partner of the following entities:

	 	 	PHILPOTT MOTORS, LTD. (a Texas limited partnership)

	 	 	SONIC
ADVANTAGE PA, LP (a Texas limited partnership)

	 	 	SONIC
AUTOMOTIVE OF TEXAS, L.P. (a Texas limited
partnership)

	 	 	SONIC
AUTOMOTIVE – 3401 N. MAIN, TX, L.P. (a Texas
limited partnership)

	 	 	SONIC
AUTOMOTIVE – 4701 I-10 EAST, TX, L.P. (a Texas
limited partnership)

	 	 	SONIC
AUTOMOTIVE – 5221 I-10 EAST, TX, L.P. (a Texas
limited partnership)

	 	 	SONIC
– CADILLAC D, L.P. (a Texas limited partnership)

	 	 	SONIC
– CAMP FORD, L.P. (a Texas limited partnership)

	 	 	SONIC
– CARROLLTON V, L.P. (a Texas limited
partnership)

	 	 	SONIC
– CLEAR LAKE N, L.P. (a Texas limited
partnership)

	 	 	SONIC
– CLEAR LAKE VOLKSWAGEN, L.P. (a Texas limited
partnership)

	 	 	SONIC
– FORT WORTH T, L.P. (a Texas limited
partnership)

	 	 	SONIC
– FRANK PARRA AUTOPLEX, L.P. (a Texas limited
partnership)

	 	 	SONIC
HOUSTON JLR, LP (a Texas limited partnership)

	 	 	SONIC
HOUSTON LR, LP (a Texas limited partnership)

	 	 	SONIC
– HOUSTON V, L.P. (a Texas limited partnership)

- 175 -

 

	 	 	 
	 	 	SONIC
– JERSEY VILLAGE VOLKSWAGEN, L.P. (a Texas
limited partnership)

	 	 	SONIC
– LUTE RILEY, L. P. (a Texas limited
partnership)

	 	 	SONIC
– MASSEY CADILLAC, L.P. (a Texas limited
partnership)

	 	 	SONIC
– MESQUITE HYUNDAI, L.P. (a Texas limited
partnership)

	 	 	SONIC
MOMENTUM B, L.P. (a Texas limited partnership)

	 	 	SONIC
MOMENTUM JVP, L.P. (a Texas limited partnership)

	 	 	SONIC
MOMENTUM VWA, L.P. (a Texas limited partnership)

	 	 	SONIC
– READING, L.P. (a Texas limited partnership)

	 	 	SONIC
– RICHARDSON F, L.P. (a Texas limited
partnership)

	 	 	SONIC
– SAM WHITE NISSAN, L.P. (a Texas limited
partnership)

	 	 	SONIC
– UNIVERSITY PARK A, L.P. (a Texas limited
partnership)

	 	 	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
TEXAS – 4, L.P. (a Texas limited partnership)

	 	 	SRE
TEXAS – 5, L.P. (a Texas limited partnership)

	 	 	SRE
TEXAS – 6, L.P. (a Texas limited partnership)

	 	 	SRE
TEXAS – 7, L.P. (a Texas limited partnership)

	 	 	SRE
TEXAS – 8, L.P. (a Texas limited partnership)

	 	 	SONIC OKEMOS IMPORTS, INC. (a Michigan corporation)

	 	 	SONIC – PLYMOUTH CADILLAC, INC. (a Michigan corporation)

	 	 	SONIC RESOURCES, INC. (a Nevada corporation)

	 	 	SONIC – RIVERSIDE AUTO FACTORY, INC. (an Oklahoma
corporation)

	 	 	SONIC – SANFORD CADILLAC, INC. (a Florida corporation)

	 	 	SONIC SANTA MONICA M, INC. (a California corporation)

	 	 	SONIC SANTA MONICA S, INC. (a California corporation)

	 	 	SONIC – SATURN OF SILICON VALLEY, INC. (a California
corporation)

	 	 	SONIC SERRAMONTE I, INC. (a California corporation)

	 	 	SONIC – SHOTTENKIRK, INC. (a Florida corporation)

	 	 	SONIC – SOUTH CADILLAC, INC. (a Florida corporation)

	 	 	SONIC – STEVENS CREEK B, INC. (a California corporation)

	 	 	SONIC TYSONS CORNER H, INC. (a Virginia corporation)

	 	 	SONIC TYSONS CORNER INFINITI, INC. (a Virginia corporation)

	 	 	SONIC – VOLVO LV, LLC (a Nevada limited liability company)

- 176 -

 

	 	 	 
	 	 	SONIC WALNUT CREEK M, INC. (a California corporation)

	 	 	SONIC – WEST COVINA T, INC. (a California corporation)

	 	 	SONIC – WILLIAMS CADILLAC, INC. (an Alabama corporation)

	 	 	SONIC WILSHIRE CADILLAC, INC. (a California corporation)

	 	 	SRE ALABAMA – 2, LLC (an Alabama limited liability company)

	 	 	SRE ALABAMA – 3, LLC (an Alabama limited liability company)

	 	 	SRE ALABAMA – 4, LLC (an Alabama limited liability company)

	 	 	SRE ALABAMA – 5, 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)

	 	 	SREALESTATE ARIZONA – 5, LLC (an Arizona limited liability
company)

	 	 	SREALESTATE ARIZONA – 6, LLC (an Arizona limited liability
company)

	 	 	SREALESTATE ARIZONA – 7, LLC (an Arizona limited liability
company)

	 	 	SRE CALIFORNIA – 1, LLC (a California limited liability
company)

	 	 	SRE CALIFORNIA – 2, LLC (a California limited liability
company)

	 	 	SRE CALIFORNIA – 3, LLC (a California limited liability
company)

	 	 	SRE CALIFORNIA – 4, LLC (a California limited liability
company)

	 	 	SRE CALIFORNIA – 5, LLC (a California limited liability
company)

	 	 	SRE CALIFORNIA – 6, LLC (a California limited liability
company)

	 	 	SRE COLORADO – 1, LLC (a Colorado limited liability
company)

	 	 	SRE COLORADO – 2, LLC (a Colorado limited liability
company)

	 	 	SRE COLORADO – 3, LLC (a Colorado 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 HOLDING, LLC (a North Carolina limited liability
company)

- 177 -

 

	 	 	 
	 	 	SRE MARYLAND – 1, LLC (a Maryland limited liability
company)

	 	 	SRE MARYLAND – 2, LLC (a Maryland limited liability
company)

	 	 	SRE MICHIGAN – 3, LLC (a Michigan 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 NEVADA – 4, LLC (a Nevada limited liability company)

	 	 	SRE NEVADA – 5, LLC (a Nevada limited liability company)

	 	 	SRE NORTH CAROLINA – 1, LLC (a North Carolina limited
liability company)

	 	 	SRE NORTH CAROLINA – 2, LLC (a North Carolina limited
liability company)

	 	 	SRE NORTH CAROLINA – 3, LLC (a North Carolina limited
liability company)

	 	 	SRE OKLAHOMA – 1, LLC (an Oklahoma limited liability
company)

	 	 	SRE OKLAHOMA – 2, LLC (an Oklahoma limited liability
company)

	 	 	SRE OKLAHOMA – 3, LLC (an Oklahoma limited liability
company)

	 	 	SRE OKLAHOMA – 4, LLC (an Oklahoma limited liability
company)

	 	 	SRE OKLAHOMA – 5, LLC (an Oklahoma limited liability
company)

	 	 	SRE SOUTH CAROLINA – 2, LLC (a South Carolina limited
liability company)

	 	 	SRE SOUTH CAROLINA – 3, LLC (a South Carolina limited
liability company)

	 	 	SRE SOUTH CAROLINA – 4, 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 TENNESSEE – 4, LLC (a Tennessee limited liability
company)

	 	 	SRE TENNESSEE – 5, LLC (a Tennessee limited liability
company)

	 	 	SRE TENNESSEE – 6, LLC (a Tennessee limited liability
company)

	 	 	SRE TENNESSEE – 7, LLC (a Tennessee limited liability
company)

	 	 	SRE TENNESSEE – 8, LLC (a Tennessee limited liability
company)

	 	 	SRE TENNESSEE – 9, LLC (a Tennessee limited liability
company)

- 178 -

 

	 	 	 
	 	 	SRE VIRGINIA – 1, LLC (a Virginia limited liability
company)

	 	 	SRE VIRGINIA – 2, LLC (a Virginia limited liability
company)

	 	 	STEVENS CREEK CADILLAC, INC. (a California corporation)

	 	 	TOWN AND COUNTRY FORD, INCORPORATED (a North Carolina
corporation)

	 	 	VILLAGE IMPORTED CARS, INC. (a Maryland corporation)

	 	 	WINDWARD, INC. (a Hawaii corporation)

	 	 	Z MANAGEMENT, INC. (a Colorado corporation)

	 	 	 	 	 
	 	 	 
	 	By:  	                                        David P. Cosper
 	 
	 	 	Name:  	David P. Cosper 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 
	 	 	Sonic Automotive, Inc., as sole member of the
following entities:

	 	 	ONTARIO L, LLC (a California limited liability
company)

	 	 	SAI
COLUMBUS T, LLC (an Ohio limited liability
company)

	 	 	 	 	 
	 	 	 
	 	By:  	                                        David P. Cosper
 	 
	 	 	Name:  	David P. Cosper 	 
	 	 	Title:  	Vice Chairman and Chief Financial Officer 	 

- 179 -

 

	 	 	 	 	 

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ Joshua A. Hahn
 	 
	 	 	Name:  	Joshua A. Hahn 	 
	 	 	Title:  	Assistant Vice President 	 
	 

- 180 -

 

	 	 	 	 	 	 	 
	STATE OF North Carolina

	 	 	)	 	 	 
	 

	 	 	)	 	 	ss.:
	COUNTY OF Mecklenburg

	 	 	)	 	 	 

     On the 12th day of March, 2010, before me personally came David P. Cosper, to me
known, who, being by me duly sworn, did depose and say that he resides at Charlotte, North
Carolina; that he is the Vice Chairman and Chief Financial Officer of Sonic Automotive, Inc., a
corporation described in and which executed the foregoing instrument; and that he signed his name
thereto pursuant to authority of the Board of Directors of such corporation and as sole member of
the following limited liability companies listed below.

(NOTARIAL

SEAL)

	 	 	 	 	 	 	 
	 

	 	 	 	Rebecca H. Pegg
 

Notary Public
	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Sonic Automotive, Inc., as sole member of the
following entities:
	 	 	 	 	ONTARIO L, LLC (a California limited liability

     company)
	 	 	 	 	SAI COLUMBUS T, LLC (an Ohio limited liability

     company)

- 1 -

 

	 	 	 	 	 	 	 
	STATE OF North Carolina

	 	 	)	 	 	 
	 

	 	 	)	 	 	ss.:
	COUNTY OF Mecklenburg

	 	 	)	 	 	 

     On the 12th day of March, 2010, before me personally came David P. Cosper, to me known, who,
being by me duly sworn, did depose and say that he resides at Charlotte, North Carolina; that he is
the Vice President of the corporations listed below, corporations described in and which executed
the foregoing instrument; and that he signed his name thereto pursuant to authority of the Board of
Directors of such corporations.

(NOTARIAL

SEAL)

	 	 	 	 	 	 	 
	 

	 	 	 	Rebecca H. Pegg
 

Notary Public
	 	 

	 	 	 	 	 
	 	 	 	 	ARNGAR, INC. (a North Carolina corporation)

	 	 	 	 	AUTOBAHN, INC. (a California corporation)

	 	 	 	 	AVALON FORD, INC. (a Delaware corporation)

	 	 	 	 	CASA FORD OF HOUSTON, INC. (a Texas corporation)

	 	 	 	 	CORNERSTONE ACCEPTANCE CORPORATION (a Florida 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 F, INC. (a California corporation)

	 	 	 	 	FAA MARIN LR, 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, INC. (a California corporation)

	 	 	 	 	FAA SERRAMONTE H, INC. (a California corporation)

- 1 -

 

	 	 	 	 	 
	 	 	 	 	FAA SERRAMONTE L, 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 FORD,
INC. (a South Carolina corporation)

	 	 	 	 	FRANCISCAN MOTORS, INC. (a California corporation)

	 	 	 	 	FRANK PARRA AUTOPLEX, INC. (a Texas corporation)

	 	 	 	 	FRONTIER OLDSMOBILE — CADILLAC, INC. (a North Carolina
corporation)

	 	 	 	 	HMC FINANCE ALABAMA, INC. (an Alabama corporation)

	 	 	 	 	KRAMER MOTORS INCORPORATED (a California corporation)

	 	 	 	 	L DEALERSHIP GROUP, INC. (a Texas corporation)

	 	 	 	 	MARCUS DAVID CORPORATION (a North Carolina corporation)

	 	 	 	 	MASSEY CADILLAC, INC. (a Tennessee corporation)

	 	 	 	 	MASSEY CADILLAC, INC. (a Texas corporation)

	 	 	 	 	MOUNTAIN STATES MOTORS CO., INC. (a Colorado corporation)

	 	 	 	 	ROYAL MOTOR COMPANY, INC. (an Alabama corporation)

	 	 	 	 	SAI AL HC1, INC. (an Alabama corporation)

	 	 	 	 	SAI AL HC2, INC. (an Alabama corporation), on behalf of
itself and as sole member of:

	 	 	 	 	SAI
IRONDALE L, LLC (an Alabama limited liability
company)

	 	 	 	 	SAI FL HC1, INC. (a Florida corporation)

	 	 	 	 	SAI FL HC2, INC. (a Florida corporation), on behalf of
itself and as sole member of:

	 	 	 	 	SAI
CLEARWATER T, LLC (a Florida limited liability
company)

	 	 	 	 	SAI FL HC3, INC. (a Florida corporation)

	 	 	 	 	SAI FL HC4, INC. (a Florida corporation)

	 	 	 	 	SAI FL HC5, INC. (a Florida corporation)

	 	 	 	 	SAI FL HC6, INC. (a Florida corporation)

	 	 	 	 	SAI FL HC7, INC. (a Florida corporation)

	 	 	 	 	SAI LONG BEACH B, INC. (a California corporation)

	 	 	 	 	SAI MD HC1, INC. (a Maryland corporation), on behalf of
itself and as sole member of:

	 	 	 	 	SAI
ROCKVILLE L, LLC (a Maryland limited liability
company)

	 	 	 	 	SAI MONROVIA B, INC. (a California corporation)

	 	 	 	 	SAI NC HC2, INC. (a North Carolina corporation)

	 	 	 	 	SAI OH HC1, INC. (an Ohio corporation)

	 	 	 	 	SAI OK HC1, INC. (an Oklahoma corporation), on behalf of
itself and as sole member of the following entities:

	 	 	 	 	SAI
OKLAHOMA CITY T, LLC (an Oklahoma limited
liability company)

	 	 	 	 	SAI
TULSA T, LLC (an Oklahoma limited liability
company)

- 2 -

 

	 	 	 	 	 
	 	 	 	 	SAI VA HC1, INC. (a Virginia corporation)

	 	 	 	 	SANTA CLARA IMPORTED CARS, INC. (a California corporation)

	 	 	 	 	SONIC AGENCY, INC. (a Michigan corporation)

	 	 	 	 	SONIC AUTOMOTIVE OF NEVADA, INC. (a Nevada corporation), on
behalf of itself and as sole member of:

	 	 	 	 	SAI
GEORGIA, LLC (a Georgia limited liability
company), on behalf of itself and as general
partner of the following entities:

	 	 	 	 	SAI
GA HC1, LP (a Georgia limited
partnership), on behalf of itself and as
sole member of:

	 	 	 	 	SAI
STONE MOUNTAIN T, LLC (a Georgia
limited liability company)

	 	 	 	 	SONIC
PEACHTREE INDUSTRIAL BLVD., L.P. (a
Georgia limited partnership)

	 	 	 	 	SONIC
— STONE MOUNTAIN T, L.P. (a Georgia
limited partnership)

	 	 	 	 	SRE
GEORGIA — 1, L.P. (a Georgia limited
partnership)

	 	 	 	 	SRE
GEORGIA — 2, L.P. (a Georgia limited
partnership)

	 	 	 	 	SRE
GEORGIA — 3, L.P. (a Georgia limited
partnership)

	 	 	 	 	SONIC AUTOMOTIVE — 1495 AUTOMALL DRIVE, COLUMBUS, INC. (an
Ohio corporation)

	 	 	 	 	SONIC AUTOMOTIVE — 1720 MASON AVE., DB, INC. (a Florida
corporation)

	 	 	 	 	SONIC AUTOMOTIVE 2424 LAURENS RD., GREENVILLE, INC. (a
South Carolina corporation)

	 	 	 	 	SONIC AUTOMOTIVE 2752 LAURENS RD., GREENVILLE, INC. (a
South Carolina corporation)

	 	 	 	 	SONIC AUTOMOTIVE — 3700 WEST BROAD STREET, COLUMBUS, INC.
(an Ohio corporation)

	 	 	 	 	SONIC AUTOMOTIVE — 4000 WEST BROAD STREET, COLUMBUS, INC.
(an Ohio corporation)

	 	 	 	 	SONIC AUTOMOTIVE — 6008 N. DALE MABRY, FL, INC. (a Florida
corporation)

	 	 	 	 	SONIC — BUENA PARK H, INC. (a California corporation)

	 	 	 	 	SONIC — CALABASAS A, INC. (a California corporation)

	 	 	 	 	SONIC CALABASAS M, INC. (a California corporation)

	 	 	 	 	SONIC — CALABASAS V, INC. (a California corporation)

	 	 	 	 	SONIC — CAPITOL CADILLAC, INC. (a Michigan corporation)

	 	 	 	 	SONIC — CAPITOL IMPORTS, INC. (a South Carolina
corporation)

	 	 	 	 	SONIC — CARSON F, INC. (a California corporation)

	 	 	 	 	SONIC — CARSON LM, INC. (a California corporation)

	 	 	 	 	SONIC COAST CADILLAC, INC. (a California corporation)

	 	 	 	 	SONIC — DENVER T, INC. (a Colorado corporation)

- 3 -

 

	 	 	 	 	 
	 	 	 	 	SONIC — DENVER VOLKSWAGEN, INC. (a Colorado corporation)

	 	 	 	 	SONIC — DOWNEY CADILLAC, INC. (a California corporation)

	 	 	 	 	SONIC — ENGLEWOOD M, INC. (a Colorado corporation)

	 	 	 	 	SONIC ESTORE, INC. (a North Carolina corporation)

	 	 	 	 	SONIC — FORT MILL CHRYSLER JEEP, INC. (a South Carolina
corporation)

	 	 	 	 	SONIC — FORT MILL DODGE, INC. (a South Carolina
corporation)

	 	 	 	 	SONIC FREMONT, INC. (a California corporation)

	 	 	 	 	SONIC — HARBOR CITY H, INC. (a California corporation)

	 	 	 	 	SONIC — LLOYD NISSAN, INC. (a Florida corporation)

	 	 	 	 	SONIC — LLOYD PONTIAC — CADILLAC, INC. (a Florida
corporation)

	 	 	 	 	SONIC — LONE TREE CADILLAC, INC. (a Colorado corporation)

	 	 	 	 	SONIC — MANHATTAN FAIRFAX, INC. (a Virginia corporation)

	 	 	 	 	SONIC — MASSEY CHEVROLET, INC. (a California corporation)

	 	 	 	 	SONIC — MASSEY PONTIAC BUICK GMC, INC. (a Colorado
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 OF TEXAS, INC. (a Texas corporation), on behalf of
itself and as general partner of the following entities:

	 	 	 	 	PHILPOTT MOTORS, LTD. (a Texas limited partnership)

	 	 	 	 	SONIC
ADVANTAGE PA, LP (a Texas limited partnership)

	 	 	 	 	SONIC
AUTOMOTIVE OF TEXAS, L.P. (a Texas limited
partnership)

	 	 	 	 	SONIC
AUTOMOTIVE — 3401 N. MAIN, TX, L.P. (a Texas
limited partnership)

	 	 	 	 	SONIC
AUTOMOTIVE — 4701 I-10 EAST, TX, L.P. (a Texas
limited partnership)

	 	 	 	 	SONIC
AUTOMOTIVE — 5221 I-10 EAST, TX, L.P. (a Texas
limited partnership)

	 	 	 	 	SONIC
— CADILLAC D, L.P. (a Texas limited
partnership)

	 	 	 	 	SONIC
— CAMP FORD, L.P. (a Texas limited partnership)

	 	 	 	 	SONIC
— CARROLLTON V, L.P. (a Texas limited
partnership)

- 4 -

 

	 	 	 	 	 
	 	 	 	 	SONIC
— CLEAR LAKE N, L.P. (a Texas limited
partnership)

	 	 	 	 	SONIC
— CLEAR LAKE VOLKSWAGEN, L.P. (a Texas limited
partnership)

	 	 	 	 	SONIC
— FORT WORTH T, L.P. (a Texas limited
partnership)

	 	 	 	 	SONIC
— FRANK PARRA AUTOPLEX, L.P. (a Texas limited
partnership)

	 	 	 	 	SONIC
HOUSTON JLR, LP (a Texas limited partnership)

	 	 	 	 	SONIC
HOUSTON LR, LP (a Texas limited partnership)

	 	 	 	 	SONIC
— HOUSTON V, L.P. (a Texas limited partnership)

	 	 	 	 	SONIC
— JERSEY VILLAGE VOLKSWAGEN, L.P. (a Texas
limited partnership)

	 	 	 	 	SONIC
— LUTE RILEY, L. P. (a Texas limited
partnership)

	 	 	 	 	SONIC
— MASSEY CADILLAC, L.P. (a Texas limited
partnership)

	 	 	 	 	SONIC
— MESQUITE HYUNDAI, L.P. (a Texas limited
partnership)

	 	 	 	 	SONIC
MOMENTUM B, L.P. (a Texas limited partnership)

	 	 	 	 	SONIC
MOMENTUM JVP, L.P. (a Texas limited partnership)

	 	 	 	 	SONIC
MOMENTUM VWA, L.P. (a Texas limited partnership)

	 	 	 	 	SONIC
— READING, L.P. (a Texas limited partnership)

	 	 	 	 	SONIC
— RICHARDSON F, L.P. (a Texas limited
partnership)

	 	 	 	 	SONIC
— SAM WHITE NISSAN, L.P. (a Texas limited
partnership)

	 	 	 	 	SONIC
— UNIVERSITY PARK A, L.P. (a Texas limited
partnership)

	 	 	 	 	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
TEXAS — 4, L.P. (a Texas limited partnership)

	 	 	 	 	SRE
TEXAS — 5, L.P. (a Texas limited partnership)

	 	 	 	 	SRE
TEXAS — 6, L.P. (a Texas limited partnership)

	 	 	 	 	SRE
TEXAS — 7, L.P. (a Texas limited partnership)

	 	 	 	 	SRE
TEXAS — 8, L.P. (a Texas limited partnership)

	 	 	 	 	SONIC OKEMOS IMPORTS, INC. (a Michigan corporation)

	 	 	 	 	SONIC — PLYMOUTH CADILLAC, INC. (a Michigan corporation)

	 	 	 	 	SONIC RESOURCES, INC. (a Nevada corporation)

	 	 	 	 	SONIC — RIVERSIDE AUTO FACTORY, INC. (an Oklahoma
corporation)

	 	 	 	 	SONIC — SANFORD CADILLAC, INC. (a Florida corporation)

- 5 -

 

	 	 	 	 	 
	 	 	 	 	SONIC SANTA MONICA M, INC. (a California corporation)

	 	 	 	 	SONIC SANTA MONICA S, INC. (a California corporation)

	 	 	 	 	SONIC — SATURN OF SILICON VALLEY, INC. (a California
corporation)

	 	 	 	 	SONIC SERRAMONTE I, INC. (a California corporation)

	 	 	 	 	SONIC — SHOTTENKIRK, INC. (a Florida corporation)

	 	 	 	 	SONIC — SOUTH CADILLAC, INC. (a Florida corporation)

	 	 	 	 	SONIC — STEVENS CREEK B, INC. (a California corporation)

	 	 	 	 	SONIC TYSONS CORNER H, INC. (a Virginia corporation)

	 	 	 	 	SONIC TYSONS CORNER INFINITI, INC. (a Virginia corporation)

	 	 	 	 	SONIC WALNUT CREEK M, INC. (a California corporation)

	 	 	 	 	SONIC — WEST COVINA T, INC. (a California corporation)

	 	 	 	 	SONIC — WILLIAMS CADILLAC, INC. (an Alabama corporation)

	 	 	 	 	SONIC WILSHIRE CADILLAC, INC. (a California corporation)

	 	 	 	 	STEVENS CREEK CADILLAC, INC. (a California corporation)

	 	 	 	 	TOWN AND COUNTRY FORD, INCORPORATED (a North Carolina
corporation)

	 	 	 	 	VILLAGE IMPORTED CARS, INC. (a Maryland corporation)

	 	 	 	 	WINDWARD, INC. (a Hawaii corporation)

	 	 	 	 	Z MANAGEMENT, INC. (a Colorado corporation)

- 6 -

 

	 	 	 	 	 	 	 
	STATE OF North Carolina

	 	 	)

)	 	 	ss.:
	COUNTY OF Mecklenburg

	 	 	)	 	 	 

     On the 12th day of March, 2010, before me personally came David P. Cosper, to me known, who,
being by me duly sworn, did depose and say that he resides at Charlotte, North Carolina; that he is
the Vice President of the limited liability companies listed below, limited liability companies
described in and which executed the foregoing instrument; and that he signed his name thereto
pursuant to authority under the operating agreements of such limited liability companies.

(NOTARIAL

SEAL)

	 	 	 	 	 	 	 
	 

	 	 	 	Rebecca H. Pegg
 

Notary Public
	 	 

	 	 	 	 	 
	 	 	 	 	ADI OF THE SOUTHEAST LLC (a South Carolina limited
liability company)

	 	 	 	 	ANTREV, LLC (a North Carolina limited liability company)

	 	 	 	 	FORT MYERS COLLISION CENTER, LLC (a Florida limited
liability company)

	 	 	 	 	SAI ANN ARBOR IMPORTS, LLC (a Michigan limited liability
company)

	 	 	 	 	SAI ATLANTA B, LLC (a Georgia limited liability company)

	 	 	 	 	SAI BROKEN ARROW C, LLC (an Oklahoma limited liability
company)

	 	 	 	 	SAI CHARLOTTE M, LLC (a North Carolina limited liability
company)

	 	 	 	 	SAI COLUMBUS MOTORS, LLC (an Ohio limited liability
company)

	 	 	 	 	SAI COLUMBUS VWK, LLC (an Ohio limited liability company)

	 	 	 	 	SAI FORT MYERS B, LLC (a Florida limited liability company)

	 	 	 	 	SAI FORT MYERS H, LLC (a Florida limited liability company)

	 	 	 	 	SAI FORT MYERS M, LLC (a Florida limited liability company)

	 	 	 	 	SAI FORT MYERS VW, LLC (a Florida limited liability
company)

	 	 	 	 	SAI IRONDALE IMPORTS, LLC (an Alabama limited liability
company)

- 7 -

 

	 	 	 	 	 
	 	 	 	 	SAI LANSING CH, LLC (a Michigan limited liability company)

	 	 	 	 	SAI MONTGOMERY B, LLC (an Alabama limited liability
company)

	 	 	 	 	SAI MONTGOMERY BCH, LLC (an Alabama limited liability
company)

	 	 	 	 	SAI MONTGOMERY CH, LLC (an Alabama limited liability
company)

	 	 	 	 	SAI NASHVILLE CSH, LLC (a Tennessee limited liability
company)

	 	 	 	 	SAI NASHVILLE H, LLC (a Tennessee limited liability
company)

	 	 	 	 	SAI NASHVILLE M, LLC (a Tennessee limited liability
company)

	 	 	 	 	SAI NASHVILLE MOTORS, LLC (a Tennessee limited liability
company)

	 	 	 	 	SAI OKLAHOMA CITY C, LLC (an Oklahoma limited liability
company)

	 	 	 	 	SAI OKLAHOMA CITY H, LLC (an Oklahoma limited liability
company)

	 	 	 	 	SAI ORLANDO CS, LLC (a Florida limited liability company)

	 	 	 	 	SAI PEACHTREE, LLC (a Georgia limited liability company)

	 	 	 	 	SAI PLYMOUTH C, LLC (a Michigan limited liability company)

	 	 	 	 	SAI RIVERSIDE C, LLC (an Oklahoma limited liability
company)

	 	 	 	 	SAI ROCKVILLE IMPORTS, LLC (a Maryland limited liability
company)

	 	 	 	 	SAI TN HC1, LLC (a Tennessee limited liability company)

	 	 	 	 	SAI TN HC2, LLC (a Tennessee limited liability company)

	 	 	 	 	SAI TN HC3, LLC (a Tennessee limited liability company)

	 	 	 	 	SAI TULSA N, LLC (an Oklahoma limited liability company)

	 	 	 	 	SONIC AUTOMOTIVE F&I, LLC (a Nevada limited liability
company)

	 	 	 	 	SONIC AUTOMOTIVE OF CHATTANOOGA, LLC (a Tennessee limited
liability company)

	 	 	 	 	SONIC AUTOMOTIVE OF NASHVILLE, LLC (a Tennessee limited
liability company)

	 	 	 	 	SONIC AUTOMOTIVE SUPPORT, LLC (a Nevada limited liability
company)

	 	 	 	 	SONIC AUTOMOTIVE WEST, LLC (a Nevada limited liability
company)

	 	 	 	 	SONIC AUTOMOTIVE — 1720 MASON AVE., DB, LLC (a Florida
limited liability company)

	 	 	 	 	SONIC AUTOMOTIVE — 2490 SOUTH LEE HIGHWAY, LLC (a
Tennessee limited liability company)

	 	 	 	 	SONIC AUTOMOTIVE 5260 PEACHTREE INDUSTRIAL BLVD., LLC (a
Georgia limited liability company)

	 	 	 	 	SONIC AUTOMOTIVE — 9103 E. INDEPENDENCE, NC, LLC (a North
Carolina limited liability company)

- 8 -

 

	 	 	 	 	 
	 	 	 	 	SONIC 2185 CHAPMAN RD., CHATTANOOGA, LLC (a Tennessee
limited liability company)

	 	 	 	 	SONIC — CHATTANOOGA D EAST, LLC (a Tennessee limited
liability company)

	 	 	 	 	SONIC DEVELOPMENT, LLC (a North Carolina limited liability
company)

	 	 	 	 	SONIC DIVISIONAL OPERATIONS, LLC (a Nevada limited
liability company)

	 	 	 	 	SONIC — INTEGRITY DODGE LV, LLC (a Nevada limited
liability company)

	 	 	 	 	SONIC — LS, LLC (a Delaware limited liability company), on
behalf of itself and as general partner of:

	 	 	 	 	SONIC
— LS CHEVROLET, L.P. (a Texas limited
partnership)

	 	 	 	 	SONIC — LAKE NORMAN CHRYSLER JEEP, LLC (a North Carolina
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 — VOLVO LV, LLC (a Nevada limited liability company)

	 	 	 	 	SRE ALABAMA — 2, LLC (an Alabama limited liability
company)

	 	 	 	 	SRE ALABAMA — 3, LLC (an Alabama limited liability
company)

	 	 	 	 	SRE ALABAMA — 4, LLC (an Alabama limited liability
company)

	 	 	 	 	SRE ALABAMA — 5, 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)

	 	 	 	 	SREALESTATE ARIZONA — 5, LLC (an Arizona limited liability
company)

	 	 	 	 	SREALESTATE ARIZONA — 6, LLC (an Arizona limited liability
company)

	 	 	 	 	SREALESTATE ARIZONA — 7, LLC (an Arizona limited liability
company)

	 	 	 	 	SRE CALIFORNIA — 1, LLC (a California limited liability
company)

	 	 	 	 	SRE CALIFORNIA — 2, LLC (a California limited liability
company)

	 	 	 	 	SRE CALIFORNIA — 3, LLC (a California limited liability
company)

- 9 -

 

	 	 	 	 	 
	 	 	 	 	SRE CALIFORNIA — 4, LLC (a California limited liability
company)

	 	 	 	 	SRE CALIFORNIA — 5, LLC (a California limited liability
company)

	 	 	 	 	SRE CALIFORNIA — 6, LLC (a California limited liability
company)

	 	 	 	 	SRE COLORADO — 1, LLC (a Colorado limited liability
company)

	 	 	 	 	SRE COLORADO — 2, LLC (a Colorado limited liability
company)

	 	 	 	 	SRE COLORADO — 3, LLC (a Colorado 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 HOLDING, LLC (a North Carolina limited liability
company)

	 	 	 	 	SRE MARYLAND — 1, LLC (a Maryland limited liability
company)

	 	 	 	 	SRE MARYLAND — 2, LLC (a Maryland limited liability
company)

	 	 	 	 	SRE MICHIGAN — 3, LLC (a Michigan 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 NEVADA — 4, LLC (a Nevada limited liability company)

	 	 	 	 	SRE NEVADA — 5, LLC (a Nevada limited liability company)

	 	 	 	 	SRE NORTH CAROLINA — 1, LLC (a North Carolina limited
liability company)

	 	 	 	 	SRE NORTH CAROLINA — 2, LLC (a North Carolina limited
liability company)

	 	 	 	 	SRE NORTH CAROLINA — 3, LLC (a North Carolina limited
liability company)

	 	 	 	 	SRE OKLAHOMA — 1, LLC (an Oklahoma limited liability
company)

	 	 	 	 	SRE OKLAHOMA — 2, LLC (an Oklahoma limited liability
company)

	 	 	 	 	SRE OKLAHOMA — 3, LLC (an Oklahoma limited liability
company)

	 	 	 	 	SRE OKLAHOMA — 4, LLC (an Oklahoma limited liability
company)

	 	 	 	 	SRE OKLAHOMA — 5, LLC (an Oklahoma limited liability
company)

	 	 	 	 	SRE SOUTH CAROLINA — 2, LLC (a South Carolina limited
liability company)

	 	 	 	 	SRE SOUTH CAROLINA — 3, LLC (a South Carolina limited
liability company)

	 	 	 	 	SRE SOUTH CAROLINA — 4, LLC (a South Carolina limited
liability company)

- 10 -

 

	 	 	 	 	 
	 	 	 	 	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 TENNESSEE — 4, LLC (a Tennessee limited liability
company)

	 	 	 	 	SRE TENNESSEE — 5, LLC (a Tennessee limited liability
company)

	 	 	 	 	SRE TENNESSEE — 6, LLC (a Tennessee limited liability
company)

	 	 	 	 	SRE TENNESSEE — 7, LLC (a Tennessee limited liability
company)

	 	 	 	 	SRE TENNESSEE — 8, LLC (a Tennessee limited liability
company)

	 	 	 	 	SRE TENNESSEE — 9, LLC (a Tennessee limited liability
company)

	 	 	 	 	SRE VIRGINIA — 1, LLC (a Virginia limited liability
company)

	 	 	 	 	SRE VIRGINIA — 2, LLC (a Virginia limited liability
company)

- 11 -

 

SCHEDULE I

Existing Indebtedness

	 	 	 	 	 
	Senior Subordinated Notes bearing interest at 8.625%
	 	$	275,000,000	 
	Convertible Senior Notes bearing interest at 5.0%
	 	 	172,500,000	 
	Convertible Senior Subordinated Notes bearing interest at 4.25%
	 	 	17,045,000	 
	Notes payable to a finance company bearing interest from 9.52%
to 10.52%
	 	 	17,439,054	 
	Mortgage notes to finance companies
	 	 	116,925,153	 
	Dealership related debt and other
	 	 	6,295,251	 
	 
	 	 	 
	Total
	 	$	605,204,458	 
	 
	 	 	 

- 12 -

 

EXHIBIT A

REGULATION S CERTIFICATE

(For transfers pursuant to § 307(a)(i) of the Indenture)

U.S. Bank National Association

108 East 5th Street

St. Paul, Minnesota 55101

	 	 	 	 	 
	 

	 	Re:
	 	9.0% Senior Subordinated Notes due 2018 of Sonic Automotive,
Inc. (the “Securities”)
	 

	 	 	 	

     Reference is made to the Indenture, dated as of March 12, 2010, (the “Indenture”), among Sonic
Automotive, Inc., a Delaware corporation (the “Company”), the Guarantors and U.S. Bank National
Association as Trustee. Terms used herein and defined in the Indenture or in Regulation S or Rule
144 under the U.S. Securities Act of 1933 (the “Securities Act”) are used herein as so defined.

     This certificate relates to US$                      principal amount of Securities, which are
evidenced by the following certificate(s) (the “Specified Securities”):

	 	 	 	 	 	 	 
	 

	 	CUSIP No(s).	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 CERTIFICATE No(s).	 	 	 	 
	 

	 	 	 	 	 	 

     The person in whose name this certificate is executed below (the “Undersigned”) hereby
certifies that either (i) it is the sole beneficial owner of the Specified Securities or (ii) it is
acting on behalf of all the beneficial owners of the Specified Securities and is duly authorized by
them to do so. Such beneficial owner or owners are referred to herein collectively as the “Owner.”
The Specified Securities are represented by a Global Security and are held through the Depositary
or an Agent Member in the name of the Undersigned, as or on behalf of the Owner.

     The Owner has requested that the Specified Securities be transferred to a person (the
“Transferee”) who will take delivery in the form of a Regulation S Global Security. In connection
with such transfer, the Owner hereby certifies that, unless such transfer is being effected
pursuant to an effective registration statement under the Securities Act, it is being effected in
accordance with Rule 904 or Rule 144 under the Securities Act and with all applicable securities
laws of the states of the United States and other jurisdictions. Accordingly, the Owner hereby
further certifies as follows:

     (1) Rule 904 Transfers. If the transfer is being effected in
accordance with Rule 904:

 - 1 - 

 

     (A) the Owner is not a distributor of the Securities, an affiliate of
the Company or any such distributor or a person acting on behalf of any of
the foregoing;

     (B) the offer of the Specified Securities was not made to a person in
the United States;

     (C) either:

     (i) at the time the buy order was originated, the Transferee was
outside the United States or the Owner and any person acting on its
behalf reasonably believed that the Transferee was outside the United
States, or

     (ii) the transaction is being executed in, on or through the
facilities of the Eurobond market, as regulated by the Association of
International Bond Dealers, or another designated offshore securities
market and neither the Owner nor any person acting on its behalf
knows that the transaction has been prearranged with a buyer in the
United States;

     (D) no directed selling efforts have been made in the United States by
or on behalf of the Owner or any affiliate thereof;

     (E) if the Owner is a dealer in securities or has received a selling
concession, fee or other remuneration in respect of the Specified
Securities, and the transfer is to occur during the Restricted Period, then
the requirements of Rule 904(c)(1) have been satisfied; and

     (F) the transaction is not part of a plan or scheme to evade the
registration requirements of the Securities Act.

     (2) Rule 144 Transfers. If the transfer is being effected pursuant to
Rule 144:

     (A) the transfer is occurring after a holding period of at least one
year (computed in accordance with paragraph (d) of Rule 144) has elapsed
since the Specified Securities were last acquired from the Company or from
an affiliate of the Company, whichever is later, and is being effected in
accordance with the applicable amount, manner of sale and notice
requirements of Rule 144; or

     (B) the transfer is occurring after a holding period of at least two
years has elapsed since the Specified Securities were last acquired from the
Company or from an affiliate of the Company, 

 - 2 - 

 

whichever is later, and the
Owner is not, and during the preceding three months has not been, an
affiliate of the Company.

     This certificate and the statements contained herein are made for your benefit and the benefit
of the Company and the Initial Purchasers.

Dated:

	 	 	 	 	 	 	 
	 	 	(Print the name of the Undersigned, as such term is
defined in the second paragraph of this certificate.)	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	(If the Undersigned is a corporation, partnership or
fiduciary, the title of the person signing on behalf
of the Undersigned must be stated.)	 	 

 - 3 - 

 

EXHIBIT B

RESTRICTED SECURITIES CERTIFICATE

(For transfers pursuant to § 307(a)(ii) of the Indenture)

[U.S. Bank National Association

108 East 5th Street

St. Paul, Minnesota 55101]

	 	 	 	Re: 9.0% Senior Subordinated Notes due 2018 of Sonic Automotive,
Inc. (the “Securities”)

     Reference is made to the Indenture, dated as of March 12, 2010 (the “Indenture”), among Sonic
Automotive, Inc., a Delaware corporation (the “Company”), the Guarantors and U.S. Bank National
Association, as Trustee. Terms used herein and defined in the Indenture or in Rule 144A or Rule
144 under the U.S. Securities Act of 1933 (the “Securities Act”) are used herein as so defined.

     This certificate relates to US$                      principal amount of Securities, which are
evidenced by the following certificate(s) (the “Specified Securities”):

	 	 	 	 	 	 	 
	 

	 	CUSIP No(s).	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	ISIN No(s). If any.	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	CERTIFICATE No(s).	 	 	 	 
	 

	 	 	 	 

	 	 

     The person in whose name this certificate is executed below (the “Undersigned”) hereby
certifies that either (i) it is the sole beneficial owner of the Specified Securities or (ii) it is
acting on behalf of all the beneficial owners of the Specified Securities and is duly authorized by
them to do so. Such beneficial owner or owners are referred to herein collectively as the “Owner”.
The Specified Securities are represented by a Global Security and are held through the Depositary
or an Agent Member in the name of the Undersigned, as or on behalf of the Owner.

     The Owner has requested that the Specified Securities be transferred to a person (the
“Transferee”) who will take delivery in the form of a Restricted Security. In connection with such
transfer, the Owner hereby certifies that, unless such transfer is being effected pursuant to an
effective registration statement under the Securities Act, it is being effected in accordance with
Rule 144A or Rule 144 under the Securities Act and all applicable securities laws of the states of
the United States and other jurisdictions. Accordingly, the Owner hereby further certifies as
follows:

     (1) Rule 144A Transfers. If the transfer is being effected in
accordance with Rule 144A:

 - 1 - 

 

     (A) the Specified Securities are being transferred to a person that the
Owner and any person acting on its behalf reasonably believe is a “qualified
institutional buyer” within the meaning of Rule 144A, acquiring for its own
account or for the account of a qualified institutional buyer; and

     (B) the Owner and any person acting on its behalf have taken reasonable
steps to ensure that the Transferee is aware that the Owner may be relying
on Rule 144A in connection with the transfer; and

     (2) Rule 144 Transfers. If the transfer is being effected pursuant to
Rule 144:

     (A) the transfer is occurring after a holding period of at least six
months (computed in accordance with paragraph (d) of Rule 144) has elapsed
since the Specified Securities were last acquired from the Company or from
an affiliate of the Company, whichever is later, and is being effected in
accordance with the requirements of Rule 144; or

     (B) if the transfer is occurring prior to the first anniversary of the
date of issuance of the Specified Securities, the Company is, and has been
for a period of at least 90 days immediately before the transfer, subject to
the reporting requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934.

     This certificate and the statements contained herein are made for your benefit and the benefit
of the Company and the Initial Purchasers.

Dated:

	 	 	 	 	 	 	 
	 	 	(Print the name of the Undersigned, as such term is
defined in the second paragraph of this certificate.)	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	(If the Undersigned is a corporation, partnership or
fiduciary, the title of the person signing on behalf
of the Undersigned must be stated.)	 	 

 - 2 - 

 

EXHIBIT C

UNRESTRICTED SECURITIES CERTIFICATE

(For removal of Securities Act Legends pursuant to § 307(b)) of the Indenture)

[U.S. Bank National Association

108 East 5th Street

St. Paul, Minnesota 55101]

Re:     9.0% Senior Subordinated Notes due 2018 of Sonic Automotive,
Inc. (the “Securities”)

     Reference is made to the Indenture, dated as of March 12, 2010, among Sonic Automotive, Inc.,
a Delaware corporation (the “Company”), the Guarantors and U.S. Bank Trust Company, as Trustee.
Terms used herein and defined in the Indenture or in Rule 144 under the U.S. Securities Act of 1933
(the “Securities Act”) are used herein as so defined.

     This certificate relates to US$                      principal amount of Securities, which are
evidenced by the following certificate(s) (the “Specified Securities”):

 

CUSIP No(s).                                                            

CERTIFICATE No(s).                                                             

     The person in whose name this certificate is executed below (the “Undersigned”) hereby
certifies that either (i) it is the sole beneficial owner of the Specified Securities or (ii) it is
acting on behalf of all the beneficial owners of the Specified Securities and is duly authorized by
them to do so. Such beneficial owner or owners are referred to herein collectively as the “Owner”.
If the Specified Securities are represented by a Global Security, they are held through the
Depositary or an Agent Member in the name of the Undersigned, as or on behalf of the Owner. If the
Specified Securities are not represented by a Global Security, they are registered in the name of
the Undersigned, as or on behalf of the Owner.

     The Owner has requested that the Specified Securities be exchanged for Securities bearing no
Private Placement Legend pursuant to Section 307(b) of the Indenture. In connection with such
exchange, the Owner hereby certifies that the exchange is occurring after a holding period of at
least one year (computed in accordance with paragraph (d) of Rule 144) has elapsed since the
Specified Securities were last acquired from the Company or from an affiliate of the Company,
whichever is later, and the Owner is not, and during the preceding three months has not been, an
affiliate of the Company. The Owner also acknowledges that any future transfers of the Specified
Securities must comply with all applicable securities laws of the states of the United States and
other jurisdictions.

- 1 -

 

     This certificate and the statements contained herein are made for your benefit and the benefit
of the Company and the Initial Purchasers.

Dated:

	 	 	 	 	 
	 	(Print the name of the Undersigned, as such term is

defined in the second paragraph of this certificate.)

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	(If the Undersigned is a corporation, partnership or

fiduciary, the title of the person signing on behalf

of the Undersigned must be stated.)

 	 

- 2 -

 

	 	 	 	 	 

APPENDIX I

[FORM OF TRANSFER NOTICE]

     FOR VALUE RECEIVED the undersigned registered holder hereby sell(s), assign(s) and transfer(s)
unto

Insert Taxpayer Identification No.

 

 

 

(Please print or typewrite name and address including zip code of assignee)

 

the within Security and all rights thereunder, hereby irrevocably constituting and appointing

 

attorney to transfer such Security on the books of the Company with full power of substitution in
the premises.

[THE FOLLOWING PROVISION TO BE INCLUDED

ON ALL CERTIFICATES FOR SERIES C SECURITIES

EXCEPT PERMANENT OFFSHORE PHYSICAL

CERTIFICATES]

     In connection with any transfer of this Security occurring prior to the date which is the
earlier of the date of an effective Registration Statement or March 12, 2012, the undersigned
confirms that without utilizing any general solicitation or general advertising that:

[Check One]

	 	 	 	 	 
	[   ]	 	(a)
	 	this Security is being transferred in compliance with the exemption from registration
	 

	 	 	 	under the Securities Act of 1933, as amended, provided by Rule 144A thereunder.
	 

	 	 	 	or
	[   ]	 	(b)
	 	this Security is being transferred other than in accordance with (a) above and documents
	 

	 	 	 	are being furnished which comply with the conditions of transfer set forth in this Security
	 

	 	 	 	and the Indenture.

If none of the foregoing boxes is checked, the Trustee or other Security Registrar shall not be
obligated to register this Security in the name of any Person other than the Holder hereof

- 1 -

 

unless and until the conditions to any such transfer of registration set forth herein and in
Section 307 of the Indenture shall have been satisfied.

Date:
                                                           

	 	 	 
	 

	 	 
	 

	 	NOTICE: The signature to this assignment
	 

	 	must correspond with the name as written upon
	 

	 	the face of the within-mentioned instrument in every
	 

	 	particular, without alteration or any change
	 

	 	whatsoever.

Signature Guarantee:                    
                                                            

[Signature must be guaranteed by an eligible Guarantor Institution (banks, stock brokers, savings
and loan associations and credit unions) with membership in an approved guarantee medallion program
pursuant to Securities and Exchange Commission Rule 17Ad-15]

TO BE COMPLETED BY PURCHASER IF (a) ABOVE IS CHECKED.

     The undersigned represents and warrants that it is purchasing this Security for its own
account or an account with respect to which it exercises sole investment discretion and that it and
any such account is a “qualified institutional buyer” within the meaning of Rule 144A under the
Securities Act of 1933, as amended, and is aware that the sale to it is being made in reliance on
Rule 144A and acknowledges that it has received such information regarding the Company as the
undersigned has requested pursuant to Rule 144A or has determined not to request such information
and that it is aware that the transferor is relying upon the undersigned’s foregoing
representations in order to claim the exemption from registration provided by Rule 144A.

	 	 	 	 	 
	Dated:
	 	 	 	 
	 

	 	 
	 	 
	 

	 	 	 	NOTICE: To be executed by an authorized signatory

- 2 -

 

APPENDIX II

FORM OF TRANSFEREE CERTIFICATE

I or we assign and transfer this Security to:

Please insert social security or other identifying number of assignee

 

 

Print or type name, address and zip code of assignee and irrevocably
appoint                                                            

[Agent], to transfer this Security on the books of the Company. The Agent may substitute another
to act for him.

	 	 	 	 	 	 	 
	Dated

	 	 	 	Signed	 	 
	 

	 	 
	 	 	 	 
	(Sign exactly as name appears on the other side of this Security)

[Signature must be guaranteed by an eligible Guarantor Institution (banks, stock brokers, savings
and loan associations and credit unions) with membership in an approved guarantee medallion program
pursuant to Securities and Exchange Commission Rule 17 Ad-15]

- i -

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