Document:

exv10w1

 

EXHIBIT 10.1

STOCKHOLDERS AGREEMENT

BY AND AMONG

INTERNATIONAL MOTOR CARS GROUP I,
L.L.C.,

INTERNATIONAL MOTOR CARS GROUP II,
L.L.C.,

MITSUI & CO., LTD.,

MITSUI & CO. (U.S.A.), INC.,

PENSKE CORPORATION,

AND

PENSKE AUTOMOTIVE HOLDINGS CORP.

Dated as
of March 26,
2004

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
					Page
					

	
    ARTICLE I

    DEFINITIONS
    
	
    
    SECTION 1.1
    

    	 	
    DEFINITIONS
    	 	 	C-1	 
	
    
    SECTION 1.2
    

    	 	
    RULES OF CONSTRUCTION
    	 	 	C-2	 
	
    ARTICLE II

     VOTING AGREEMENTS
    
	
    
    SECTION 2.1
    

    	 	
    VOTING AGREEMENT OF THE PCP ENTITIES AND PENSKE
    	 	 	C-2	 
	
    
    SECTION 2.2
    

    	 	
    VOTING AGREEMENT OF MITSUI
    	 	 	C-2	 
	
    
    SECTION 2.3
    

    	 	
    SUPPORT OF THE PCP ENTITIES AND PENSKE
    	 	 	C-2	 
	
    ARTICLE III

     TRANSFER RESTRICTIONS
    
	
    
    SECTION 3.1
    

    	 	
    TAG-ALONG RIGHTS
    	 	 	C-3	 
	
    ARTICLE IV

     MUTUAL REPRESENTATIONS AND WARRANTIES
    
	
    
    SECTION 4.1
    

    	 	
    ORGANIZATION
    	 	 	C-3	 
	
    
    SECTION 4.2
    

    	 	
    AUTHORIZATION, VALIDITY AND ENFORCEABILITY
    	 	 	C-3	 
	
    
    SECTION 4.3
    

    	 	
    NO VIOLATION OR BREACH
    	 	 	C-3	 
	
    ARTICLE V

     TERM
    
	
    
    SECTION 5.1
    

    	 	
    TERM
    	 	 	C-4	 
	
    
    SECTION 5.2
    

    	 	
    EFFECTS OF TERMINATION
    	 	 	C-4	 
	
    ARTICLE VI

     MISCELLANEOUS PROVISIONS
    
	
    
    SECTION 6.1
    

    	 	
    ASSURANCES
    	 	 	C-4	 
	
    
    SECTION 6.2
    

    	 	
    SURVIVAL
    	 	 	C-4	 
	
    
    SECTION 6.3
    

    	 	
    NOTICES
    	 	 	C-4	 
	
    
    SECTION 6.4
    

    	 	
    AMENDMENTS
    	 	 	C-5	 
	
    
    SECTION 6.5
    

    	 	
    ASSIGNMENT AND PARTIES IN INTEREST
    	 	 	C-5	 
	
    
    SECTION 6.6
    

    	 	
    ENTIRE AGREEMENT
    	 	 	C-5	 
	
    
    SECTION 6.7
    

    	 	
    DESCRIPTIVE HEADINGS
    	 	 	C-5	 
	
    
    SECTION 6.8
    

    	 	
    COUNTERPARTS
    	 	 	C-5	 
	
    
    SECTION 6.9
    

    	 	
    GOVERNING LAW; JURISDICTION
    	 	 	C-6	 
	
    
    SECTION 6.10
    

    	 	
    SEVERABILITY
    	 	 	C-6	 
	
    
    SECTION 6.11
    

    	 	
    SPECIFIC PERFORMANCE
    	 	 	C-6	 
	
    
    SECTION 6.12
    

    	 	
    TRANSFERS TO AFFILIATES
    	 	 	C-6	 
	
    
    SECTION 6.13
    

    	 	
    PUBLIC FILINGS
    	 	 	C-7	 

C-i

 

     
THIS STOCKHOLDERS AGREEMENT
(the “Agreement”) dated as
of March 26,
2004 is by and among INTERNATIONAL MOTOR CARS GROUP I, L.L.C., a
Delaware limited liability company
(“PCP I”), INTERNATIONAL MOTOR CARS
GROUP II, L.L.C., a Delaware limited liability company
(“PCP II” and, together with PCP I,
the “PCP Entities”), MITSUI & CO.,
LTD., a Japanese company (“Mitsui Japan”),
MITSUI & CO. (U.S.A.), INC., a New York corporation
(“Mitsui USA” and together with Mitsui Japan,
“Mitsui”), PENSKE CORPORATION, a Delaware
corporation (“Penske Corporation”), and PENSKE
AUTOMOTIVE HOLDINGS CORP., a Delaware corporation
(“Penske Holdings”, and together with Penske
Corporation, “Penske”).

     
WHEREAS, the parties
hereto wish to provide for certain matters relating to the
ownership and transfer of the Common Stock of United Auto Group,
Inc.;

     
NOW, THEREFORE, in
consideration of the premises, the mutual covenants and
agreements contained herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

ARTICLE I

DEFINITIONS

     
SECTION 1.1     Definitions.
Unless otherwise defined herein, capitalized terms used herein
shall have the meanings specified below:

     
“Affiliate”
means “affiliate” as defined in Rule 405
promulgated under the Securities Act.

     
“Beneficial
Ownership” means
“beneficial ownership” as defined in
Rule 13d-3 promulgated under the Exchange Act. The term
“Beneficial Owner” shall have the correlative
meaning.

     
“Business
Day” means a calendar day, other
than (a) a Saturday or Sunday, and (b) a
day on which commercial banks are required or permitted by law
or other governmental action to close in New York, New York,
United States of America or Tokyo, Japan.

     
“Common
Stock” means the voting Common
Stock, par value $.0001 per share, of the Company, and includes
any securities issued with respect to such shares by way of
stock dividend or stock split or in connection with a
combination of shares, recapitalization, amalgamation, merger,
consolidation or other reorganization or otherwise.

     
“Company”
means United Auto Group, Inc.

     
“Exchange
Act” means the Securities
Exchange Act of 1934, as amended.

     
“Exempt
Sale” has the meaning set forth
in Section 3.1.

     
“Mitsui”
has the meaning set forth in the preamble.

     
“Operating
Agreements” means each of
(i) the Amended and Restated Limited Liability
Company Agreement for PCP I and (ii) the
Amended and Restated Limited Liability Company Agreement for
PCP II, each dated as of the date hereof, and each as
amended from time to time.

     
“PCP
Entities” has the meaning set
forth in the preamble.

     
“PCP I”
has the meaning set forth in the preamble.

     
“PCP II”
has the meaning set forth in the preamble.

     
“Penske”
has the meaning set forth in the recitals hereto.

     
“Penske
Capital” means Penske Capital
Partners, L.L.C.

     
“Penske
Corporation” has the meaning set
forth in the preamble.

     
“Penske
Holdings” has the meaning set
forth in the preamble.

C-1

 

     
“Permitted
Transferee” of a person means
(a) a corporation, partnership or other entity
wholly owned by such person; provided, that such corporation,
partnership or other entity shall agree in writing that it shall
transfer to such person any Restricted Securities which it holds
prior to such time as it ceases to be wholly owned by such
person, and (b) the equity owners of such person to
the extent such equity owners receive a pro rata distribution of
Restricted Securities.

     
“Purchase
Agreement” has the meaning set
forth in Section 2.3.

     
“Restricted
Securities” means any Common
Stock or other equity security of the Company Beneficially Owned
by a Restricted Stockholder and any securities convertible,
exercisable or exchangeable for Common Stock or such other
equity securities.

     
“Restricted
Stockholder” means each of
Penske, the PCP Entities and Mitsui.

     
“Securities
Act” means the Securities Act of
1933, as amended.

     
“Tag-Along
Notice” has the meaning set forth
in Section 3.1.

     
“Transfer”
means any direct or indirect transfer, sale, assignment, gift,
pledge, mortgage, hypothecation or other disposition of any
interest, including, without limitation, a transfer or sale of
securities through a registered offering. The terms
“Transferee,” “Transferor,”
“Transferred,” and “Transferable”
shall each have a correlative meaning.

     
SECTION 1.2     Rules
of Construction. Unless the context otherwise requires:
(a) a term has the meaning assigned to it by this
Agreement; (b) an accounting term not otherwise
defined has the meaning assigned to it in accordance with
generally accepted accounting principles in effect in the United
States of America; (c) “or” is not
exclusive; and (d) words in the singular include the
plural, and in the plural include the singular. The language
used in this Agreement shall be deemed to be the language chosen
by the parties to express their mutual intent, and no rule of
strict construction shall be applied against any party. Any
references to any statute or law shall also refer to all rules
and regulations promulgated thereunder, unless the context
requires otherwise.

ARTICLE II

VOTING AGREEMENTS

     
SECTION 2.1     Voting
Agreement of the PCP Entities and Penske. In connection with
any shareholder election of directors of the Company, unless
Mitsui has declined to put forward such a representative, the
PCP Entities and Penske shall vote all of the voting securities
of the Company Beneficially Owned by them in favor of one
(1) representative of Mitsui, and shall use their best
efforts to cause one (1) representative of Mitsui to be
elected as a director of the Company.

     
Section 2.2     Voting
Agreement of Mitsui. Provided that the PCP Entities and
Penske are in compliance with the agreements set forth in
Section 2.1 hereof, Mitsui shall, in connection with any
such shareholder election of directors, vote all of the voting
securities of the Company Beneficially Owned by it in favor of
up to 14 persons (not including the Mitsui representative
referred to in Section 2.1) voted for by the PCP Entities
and Penske for election as directors of the Company.

     
SECTION 2.3     Support
of the PCP Entities and Penske. The PCP Entities and Penske
shall (a) not take any action (including by failing to vote
against any amendment to the Company’s certificate of
incorporation or by-laws) that would in any way circumvent the
agreements set forth in Section 2.1 hereof or the
Company’s agreements set forth in Section 6.5 of the
Purchase Agreement, dated as of February 16, 2004, among
Mitsui, the PCP Entities, Penske and the Company (the
“Purchase Agreement”); and (b) not take
any action inconsistent with, and shall use their best efforts
to cause the Company to comply with (in each case including by
way of exercise of voting rights), the Company’s
obligations set forth in Sections 6.3, 6.4, 6.5 and 6.6 of
the Purchase Agreement.

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ARTICLE III

TRANSFER RESTRICTIONS

     
SECTION 3.1     Tag-Along
Rights.

     
(a) Other than one or more Transfers of
Restricted Securities not exceeding, in the aggregate,
996,204 shares (as such number may be equitably adjusted to
reflect stock splits, reverse stock splits, reclassifications
and other similar changes to the Company’s capital
structure) of Common Stock (each, an “Exempt
Sale”), in the event that any of the PCP Entities or
Penske desires to Transfer any Restricted Securities to a third
party (other than (i) with respect to any Restricted
Securities, to their respective Permitted Transferees or
Affiliates or (ii) with respect only to those
securities Transferred from Penske Corporation’s
“Share Account” (as defined in the Operating
Agreement(s)) to the “Carry Account” (as defined in
the Operating Agreement(s)) and those securities held in Penske
Capital’s “Share Account” (as defined in the
Operating Agreement(s)) to Penske Capital or by Penske Capital
to its members or by such members to their members ad infinitum
(it being understood that in no event will this clause (ii)
apply to any Transfer by Penske Corporation)) at any time prior
to the termination of this Agreement in accordance with its
terms, such PCP Entity or Penske, as the case may be, shall
notify Mitsui in writing, of such proposed Transfer and its
terms and conditions (the “Tag Along Notice”);
and

     
(b) Within twenty (20) Business Days of
the date of the Tag-Along Notice, Mitsui shall notify the PCP
Entities or Penske, as the case may be, if it elects to
participate in such Transfer. If Mitsui fails to notify such PCP
Entity or Penske, as the case may be, within such twenty
(20) Business Day period, Mitsui shall be deemed to have
waived its rights to participate in such Transfer. If Mitsui so
notifies the PCP Entities or Penske, as the case may be, Mitsui
shall have the right to Transfer, at the same price per share of
Common Stock and on the same terms and conditions as the
applicable PCP Entity or Penske, as the case may be, an amount
of shares of Common Stock or Common Stock equivalents equal to
the shares of Common Stock or Common Stock equivalents the
Transferee actually proposes to purchase multiplied by a
fraction, the numerator of which shall be the number of shares
of Common Stock and Common Stock equivalents issued and owned by
Mitsui and the denominator of which shall be the aggregate
number of shares of Common Stock and Common Stock equivalents
issued and owned by Mitsui, the PCP Entities and Penske
(assuming for purposes of calculating such fraction the
conversion of all convertible securities and the exercise of all
options held by Mitsui, the PCP Entities and Penske).

ARTICLE IV

MUTUAL REPRESENTATIONS AND WARRANTIES

     
Each of the parties hereto represents and
warrants to the others as follows:

		
	 	     
    SECTION 4.1     Organization.
    It is duly organized, validly existing and in good standing
    under the laws of its jurisdiction of formation.
    
	 
	 	     
    SECTION 4.2     Authorization,
    Validity and Enforceability. It has full power and authority
    to execute, deliver and perform its obligations under this
    Agreement. The execution, delivery and performance by it of this
    Agreement and the consummation by it of the transactions
    contemplated hereby have been duly authorized by all necessary
    corporate action, its board of directors or other governing
    body, as applicable, and no other proceedings on its part are
    necessary to authorize this Agreement or the transactions
    contemplated hereby. This Agreement has been duly executed and
    delivered by it, and constitutes the legal, valid and binding
    obligation of it, enforceable against it in accordance with the
    terms hereof, except as such enforcement may be limited by
    applicable bankruptcy, insolvency, reorganization, moratorium or
    other similar laws affecting rights of creditors generally and
    by general principles of equity (regardless of whether
    enforcement is sought in a proceeding at law or in equity).
    
	 
	 	     
    SECTION 4.3     No
    Violation or Breach. The execution, delivery and performance
    by it of this Agreement and the consummation of the transactions
    contemplated hereby, do not and will not conflict with, result
    in a violation or breach of, constitute a default (or an event
    which with the giving of notice or
    

C-3

 

		
	 	
    the lapse of time or both would constitute a
    default) or give rise to any right of termination or
    acceleration of any right or obligation of it under, or result
    in the creation or imposition of any lien, mortgage, pledge,
    security interest, claim, right of first refusal or other
    limitation on transfer or other encumbrance upon any of its
    Restricted Securities or shares of Common Stock of the Company,
    as the case may be, by reason of the terms of,
    (a) its memorandum of association, certificate of
    incorporation, by-laws or other charter or organizational
    document, (b) any contract, agreement, lease,
    license, mortgage, note, bond, debenture, indenture or other
    instrument or obligation to which it is a party or by or to
    which it or its assets or properties may be bound or subject,
    (c) any order, writ, judgment, injunction, award,
    decree, law, statute, rule or regulation applicable to it or
    (d) any license, permit, order, consent, approval,
    registration, authorization or qualification with or under any
    governmental agency, other than in the case of clauses (b),
    (c) or (d) above any conflict, violation, breach or default
    which would not, individually or in the aggregate together with
    all other such conflicts, violations, breaches or defaults, have
    a material adverse effect on it or have a material adverse
    effect on its ability to perform its obligations, or consummate
    the transactions contemplated, hereunder.
    

ARTICLE V

TERM

     
SECTION 5.1     Term.
This Agreement shall commence on the date hereof, and shall
terminate on the tenth anniversary of the date of this
Agreement. This Agreement shall terminate with respect to a
Restricted Stockholder at such time as such entity ceases to
Beneficially Own any Restricted Securities or any shares of
Common Stock of the Company, as the case may be.

     
SECTION 5.2     Effects
of Termination. Upon termination of this Agreement, this
Agreement (other than Section 6.9) shall thereafter
become void and have no effect, and no party hereto shall have
any liability or obligation to any other party hereto in respect
of this Agreement, except for any liability resulting from such
party’s breach of this Agreement.

ARTICLE VI

MISCELLANEOUS PROVISIONS

     
SECTION 6.1     Assurances.
Each of the parties hereto shall use commercially reasonable
efforts to do such additional things and execute such documents
as are reasonably necessary or proper to carry out and
effectuate the intent of this Agreement or any part hereof.

     
SECTION 6.2     Survival.
All of the representations, warranties, covenants, and
agreements of the parties contained in this Agreement shall
survive until this Agreement is terminated.

     
SECTION 6.3     Notices.
All notices, demands or other communications to be given or
delivered under or by reason of the provisions of this Agreement
shall be in writing and shall be deemed to have been given
(a) when delivered personally to the recipient,
(b) two Business Days after the date when sent to
the recipient by reputable express courier service (charges
prepaid), or (c) seven Business Days after the date
when mailed to the recipient by certified or registered mail,
return receipt requested and postage prepaid. Such notices,
demands and other communications shall be sent to the parties at
the addresses indicated below:

		
	 	
    If to Penske or the PCP Entities:
	 
	 	
    c/o Penske Corporation
    
	 	
    2555 Telegraph Road
    
	 	
    Bloomfield Hills, Michigan 48302
    
	 	
    Attention: General Counsel
    
	 	
    Telecopy: (248) 648-2511
    

C-4

 

		
	 	
    If to Mitsui Japan:
	 
	 	
    Mitsui & Co., Ltd.
    
	 	
    First Motor Vehicles Div.
    
	 	
    2-1, Ohtemachi, I-Chome, Chiyoda-Ku
    
	 	
    Tokyo, Japan
    
	 	
    Attention: General Manager of First Motor
    Vehicles Division
    
	 
	 	
    If to Mitsui USA:
	 
	 	
    Mitsui & Co. (U.S.A.), Inc.
    
	 	
    Detroit Office
    
	 	
    1000 Town Center, Suite 1900
    
	 	
    Southfield, Michigan 48075
    
	 	
    Attention: Detroit Machinery & Automotive
    Department
    
	 
	 	
    With a copy to: (which shall not constitute
    notice)
	 
	 	
    Debevoise & Plimpton LLP
    
	 	
    919 Third Avenue
    
	 	
    New York, NY 10022
    
	 	
    Attention: William D. Regner, Esq.
    
	 	
    Telecopy: (212) 909-6836
    

or to such other address as any party hereto may,
from time to time, designate in writing delivered pursuant to
the terms of this Section 6.3.

     
SECTION 6.4     Amendments.
The terms, provisions and conditions of this Agreement may not
be changed, modified or amended in any manner except by an
instrument in writing duly executed by all of the parties hereto.

     
SECTION 6.5     Assignment
and Parties in Interest.

     
(a) Neither this Agreement nor any of the
rights, duties, or obligations of any party hereunder may be
assigned or delegated (by operation of law or otherwise) by any
party hereto, other than to an Affiliate of such party, without
the prior written consent of the other parties hereto.

     
(b) This Agreement shall not confer any
rights or remedies upon any person or entity other than the
parties hereto and their respective permitted successors and
assigns; provided, however, that (i) the
rights set forth in Article II hereof shall inure to the
benefit of a Permitted Transferee; and (ii) the
provisions of this Agreement shall be binding on any Permitted
Transferee.

     
SECTION 6.6     Entire
Agreement. This Agreement and the other documents executed
on the date hereof constitute the entire agreement among the
parties hereto with respect to the subject matter hereof and
supersede and are in full substitution for any and all prior
agreements and understandings among them relating to such
subject matter, including without limitation, the Letter
Agreement dated as of April 4, 2003 among the Restricted
Stockholders, and no party shall be liable or bound to the other
party hereto in any manner with respect to such subject matter
by any warranties, representations, indemnities, covenants, or
agreements, except as specifically set forth herein or in the
other documents executed on the date hereof.

     
SECTION 6.7     Descriptive
Headings. The descriptive headings of the several sections
of this Agreement are inserted for convenience only and shall
not control or affect the meaning or construction of any of the
provisions hereof.

     
SECTION 6.8     Counterparts.
For the convenience of the parties, any number of counterparts
of this Agreement may be executed by any one or more parties
hereto, and each such executed counterpart shall be, and shall
be deemed to be, an original, but all of which shall constitute,
and shall be deemed to constitute, in the aggregate but one and
the same instrument.

C-5

 

     
SECTION 6.9     Governing
Law; Jurisdiction.

     
(a) This Agreement shall be governed by and
construed in accordance with the laws of the State of New York
without giving effect to the conflicts of law principles thereof
which might result in the application of the laws of any other
jurisdiction.

     
(b) Each of the parties hereto hereby
irrevocably and unconditionally consents to submit to the
jurisdiction of the courts of the State of New York and the
United States of America located in the County of New York
solely in respect of the interpretation and enforcement of the
provisions of this Agreement, and in respect of the transactions
contemplated hereby, and further agrees that service of any
process, summons, notice or document to its respective address
set forth in Section 6.3 shall be effective service
of process for any action or proceeding brought against it in
any such court. Each of the parties hereto hereby irrevocably
and unconditionally waives any objection to the laying of venue
of any action or proceeding arising out of this Agreement or the
transactions contemplated hereby in the courts of the State of
New York or the United States of America located in the County
of New York, and hereby further irrevocably and unconditionally
waives and agrees not to plead or claim in any such court that
any such action or proceeding brought in any such court has been
brought in an inconvenient forum.

     
SECTION 6.10     Severability.
In the event that any one or more of the provisions contained in
this Agreement or in any other instrument referred to herein,
shall, for any reason, be held to be invalid, illegal or
unenforceable in any respect, then to the maximum extent
permitted by law, such invalidity, illegality or
unenforceability shall not affect any other provision of this
Agreement or any other such instrument. Furthermore, in lieu of
any such invalid or unenforceable term or provision, the parties
hereto intend that there shall be added as a part of this
Agreement a provision as similar in terms to such invalid or
unenforceable provision as may be possible and be valid and
enforceable.

     
SECTION 6.11     Specific
Performance.

     
(a) The parties hereto acknowledge and agree
that irreparable damage would occur in the event that any
provision of this Agreement was not performed in accordance with
its specific terms or was otherwise breached, and further
acknowledge and agree that money damages are an inadequate
remedy for the breach of this Agreement because of the
difficulty of ascertaining the amount of damage that would be
suffered in the event of such breach. The parties hereto
accordingly agree that they each shall be entitled to obtain
specific performance of any provision of this Agreement and
injunctive or other equitable relief to prevent or cure breaches
of any provision of this Agreement, this being in addition to
any other remedy to which they may be entitled by law or equity.

     
(b) The parties hereto further agree that
they shall not be permitted or have the right to terminate or
suspend performance of any provision of this Agreement, it being
agreed that all provisions of this Agreement shall continue and
be specifically enforceable in all events and under all
circumstances until terminated pursuant to the terms of this
Agreement, regardless of any events, occurrences, actions or
omissions before or after the date hereof. In furtherance of the
foregoing, the parties hereto agree that they shall not be
permitted to, and shall not, bring any claim seeking to
terminate or suspend performance of any provision of this
Agreement or seeking any determination that any provision of
this Agreement (including, without limitation, this
Section 6.11) is invalid, inapplicable or
unenforceable.

     
SECTION 6.12     Transfers
to Affiliates. In the event of any Transfer of capital stock
of the Company by any party hereto to an Affiliate of such party
(other than with respect only to those securities Transferred
from Penske Corporation’s “Share Account” (as
defined in the Operating Agreement(s)) to the Carry Account (as
defined in the Operating Agreement(s)) and those securities held
in Penske Capital’s “Share Account” (as defined
in the Operating Agreements(s)) to Penske Capital or by Penske
Capital to its members or by such member to their members ad
infinitum (it being understood that in no event will this
exception apply to any Transfer by Penske Corporation)), prior
to the effectiveness of such Transfer, such Transferee shall
execute a joinder to this Agreement and shall otherwise agree to
be bound by the provisions of this Agreement in the same manner
as the Transferor. The Transferor and the Transferee shall be
jointly and severally responsible for the obligations of the
Transferor under this Agreement.

C-6

 

     
SECTION 6.13     Public
Filings. Prior to making any filings required by
Sections 13 of the Securities Exchange Act of 1934, as
amended, each of the PCP Entities and Penske, on the one hand,
and Mitsui, on the other hand, shall provide the other parties
with a reasonable opportunity to review such filings and comment
thereon.

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

		
	 	
    INTERNATIONAL MOTOR CARS GROUP I, L.L.C.
    

			
	 	By: 	
    Penske Capital Partners, L.L.C.,
    

		
	 	
    as Managing Member
    

			
	 	By: 	
    /s/ James A. Hislop
    

		
	 	
    

	 	
    Name: James A. Hislop
    
	 	
    Title:  President
    
	 
	 	
    INTERNATIONAL MOTOR CARS GROUP II, L.L.C.
    

			
	 	By: 	
    Penske Capital Partners, L.L.C.,
    

		
	 	
    as Managing Member
    

			
	 	By: 	
    /s/ James A. Hislop
    

		
	 	
    

	 	
    Name: James A. Hislop
    
	 	
    Title:  President
    
	 
	 	
    MITSUI & CO., LTD.
    

			
	 	By: 	
    /s/ Tatsuo Nakayama
    

		
	 	
    

	 	
    Name: Tatsuo Nakayama
    

			
	 	Title:	
    General Manager
    

		
	 	
    First Motor Vehicles Division
    
	 
	 	
    MITSUI & CO. (U.S.A.), INC.
    

			
	 	By: 	
    /s/ Osamu Koyama
    

		
	 	
    

	 	
    Name: Osamu Koyama
    
	 	
    Title:  Senior Vice President
    

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    PENSKE CORPORATION
    

			
	 	By: 	
    /s/ Roger S. Penske
    

		
	 	
    

	 	
    Name: Roger S. Penske
    
	 	
    Title:  Chairman & Chief Executive
    Officer
    
	 
	 	
    PENSKE AUTOMOTIVE HOLDINGS CORP.
    

			
	 	By: 	
    /s/ Roger S. Penske
    

		
	 	
    

	 	
    Name: Roger S. Penske
    
	 	
    Title:  Chairman
    

C-9exv10w2

 

EXHIBIT 10.2

SECOND AMENDED AND RESTATED

REGISTRATION RIGHTS AGREEMENT

among

UNITED AUTO GROUP, INC.

MITSUI & CO., LTD.

and

MITSUI & CO. (U.S.A.), INC.

dated as of

March 26 ,
2004

 

 

     
SECOND AMENDED AND RESTATED REGISTRATION RIGHTS
AGREEMENT, dated as
of March 26,
2004, among United Auto Group, Inc., a Delaware corporation (the
“Company”), Mitsui & Co., Ltd., a Japanese
company (“Mitsui Japan”), and Mitsui & Co.
(U.S.A.), Inc., a New York corporation (“Mitsui USA”
and, together with Mitsui Japan, “Mitsui”).

     
On February 16, 2004, the Company and Mitsui
entered into a Purchase Agreement (the “Purchase
Agreement”) pursuant to which, Mitsui agreed to purchase at
Closing (as described therein) 4,050,000 shares of voting
common stock par value 0.0001 per share of the Company subject
to the terms and conditions set forth therein.

     
The shares of Common Stock to be purchased by
Mitsui pursuant to the Purchase Agreement, together with the
shares of Common Stock currently owned by Mitsui, represent
approximately 15.7% of the issued and outstanding capital stock
of the Company.

     
If Mitsui desires to sell shares of Common Stock,
it may be desirable to register such shares under the Securities
Act (as defined below).

     
As part of, and as consideration for,
Mitsui’s initial acquisition of shares of Common Stock from
the Company, the Company granted to Mitsui certain registration
and other rights with respect to its shares of Common Stock
pursuant to a Registration Rights Agreement among the Company,
Mitsui Japan and Mitsui USA dated as of February 28, 2001,
which Registration Rights Agreement was amended and restated by
an Amended and Restated Registration Rights Agreement among the
Company, Mitsui Japan and Mitsui USA dated as of
February 22, 2002 (“Existing Agreement”).

     
The parties wish to amend and restate in its
entirety the Existing Agreement to provide for certain matters
relating to the registration and other rights with respect to
Mitsui’s shares of Common Stock, on the terms and
conditions provided in this Agreement.

     
Accordingly, the parties hereto agree as follows:

     
1.     Definitions.
As used herein, unless the context otherwise requires, the
following terms have the following respective meanings:

     
“Affiliate” means “affiliate”
as defined in Rule 405 promulgated under the Securities Act.

     
“Certificate of Incorporation” means
the Certificate of Incorporation of the Company, as it may be
amended or restated from time to time.

     
“Commission” means the Securities and
Exchange Commission or any other Federal agency at the time
administering the Securities Act.

     
“Common Stock” means any shares of
voting common stock, par value $0.0001 per share, of the
Company, now or hereafter authorized to be issued, and, any and
all securities of any kind whatsoever of the Company which may
be issued on or after the date hereof in respect of, in exchange
for, or upon conversion of shares of voting common stock
pursuant to a merger, consolidation, stock split, stock
dividend, recapitalization of the Company or otherwise.

     
“Exchange Act” means the Securities
Exchange Act of 1934, as amended, or any similar Federal
statute, and the rules and regulations of the Commission
thereunder, all as the same shall be in effect at the time.
Reference to a particular section of the Exchange Act shall
include a reference to the comparable section, if any, of any
such similar Federal statute.

     
“IMCG” means International Motor Cars
Group I, L.L.C. and International Motor Cars Group II,
L.L.C.

     
“Penske” means (i) Penske
Corporation, a corporation organized under the laws of the State
of Delaware, (ii) IMCG, and (iii) Penske Automotive
Holdings Corp.

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“Person” means a corporation, an
association, a partnership, an organization, a business, a
trust, an individual, or any other entity or organization,
including a government or political subdivision or an
instrumentality or agency thereof.

     
“Registrable Securities” means
(i) any shares of Common Stock owned by Mitsui,
(ii) any shares of Common Stock that Mitsui may acquire
after the date hereof, and (iii) any shares of Common Stock
issued with respect to the Common Stock referred to in clause
(i) by way of a stock dividend, stock split or reverse
stock split or in connection with a combination of shares,
recapitalization, merger, consolidation or otherwise. As to any
particular Registrable Securities, such securities shall cease
to be Registrable Securities (a) when a registration
statement with respect to the sale of such securities shall have
become effective under the Securities Act and such securities
shall have been disposed of in accordance with such registration
statement, (b) when such securities shall have been
otherwise transferred, new certificates for them not bearing a
legend restricting further transfer shall have been delivered by
the Company and subsequent public distribution of them shall not
require registration of them under the Securities Act, or
(c) when such securities shall have been sold in compliance
with Rule 144 of the Securities Act. Any certificate
evidencing the Registrable Securities shall bear a legend
stating that the securities have not been registered under the
Securities Act and setting forth or referring to the
restrictions on transferability and sale of the securities.

     
“Registration Expenses” means all
expenses incident to the registration and disposition of the
Registrable Securities pursuant to Section 2 hereof,
including, without limitation, all registration, filing and
applicable national securities exchange fees, all fees and
expenses of complying with state securities or blue sky laws
(including fees and disbursements of counsel to the underwriters
or Mitsui in connection with “blue sky” qualification
of the Registrable Securities and determination of their
eligibility for investment under the laws of the various
jurisdictions), all word processing, duplicating and printing
expenses, all messenger and delivery expenses, the fees and
disbursements of counsel for the Company and of its independent
public accountants, including the expenses of “cold
comfort” letters or any special audits required by, or
incident to, such registration, all fees and disbursements of
underwriters (other than underwriting discounts and
commissions), all transfer taxes and all fees and expenses of
counsel to Mitsui (such fees and expenses of counsel to Mitsui
not to exceed a maximum of $50,000 per registration); provided,
however, that Registration Expenses shall exclude, and Mitsui
shall pay, underwriting discounts and commissions in respect of
the Registrable Securities being registered.

     
“Securities Act” means the Securities
Act of 1933, as amended, or any similar Federal statute, and the
rules and regulations of the Commission thereunder, all as the
same shall be in effect at the time. References to a particular
section of the Securities Act shall include a reference to the
comparable section, if any, of any such similar Federal statute.

     
2.     Registration
Under the Securities Act, etc.

     
2.1     Registration
on Request.

     
(a) Registration. Mitsui shall have
the right to require the Company to effect the registration
under the Securities Act of all or part of the Registrable
Securities by delivering a written request therefor to the
Company specifying the number of shares of Registrable
Securities and the intended method of distribution. The Company
shall use its reasonable best efforts to (i) effect
such registration under the Securities Act (including by means
of a shelf registration pursuant to Rule 415 under the
Securities Act if so requested and if the Company is then
eligible to use such a registration) of the Registrable
Securities which the Company has been so requested to register
by Mitsui, for distribution in accordance with the intended
method of distribution set forth in the written request
delivered by Mitsui, such registration to be effected as
expeditiously as possible, and (ii) if requested by
Mitsui, obtain acceleration of the effective date of the
registration statement relating to such registration.

     
(b) Registration of Other Securities.
Whenever the Company shall effect a registration pursuant to
this Section 2.1, the Company may, upon notice to Mitsui,
include securities of the Company which are held by Persons who,
by virtue of agreements with the Company, are entitled to
include such securities, in each case, in any such registration
(the “Other Stockholders”). In the case of an
underwritten offering pursuant to this

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Section 2.1, if the Other Stockholders
request such inclusion, the Company shall offer to include the
securities of such Other Stockholders in the underwriting and
may condition such offer on their acceptance of the further
applicable provisions of this Agreement. The Company and the
Other Stockholders shall enter into an underwriting agreement in
customary form with the representative of the underwriter or
underwriters selected pursuant to Section 2.1(f).
Notwithstanding any other provision of this Section 2, if
the representative advises Mitsui in writing that marketing
factors require a limitation on the number of shares to be
underwritten, the securities of the Company held by the Other
Stockholders shall be excluded from such registration to the
extent required by such limitation; provided, however,
that if any of the Penske entities requests such inclusion, the
Penske entity shall have the right to include in the
registration an amount of shares of Common Stock equal to the
number of shares of Common Stock to which the registration is
limited in accordance with such representative’s advice,
multiplied by a fraction, the numerator of which shall be the
number of shares of Common Stock and Common Stock equivalents
issued and owned by Mitsui and the denominator of which shall be
the aggregate number of shares of Common Stock and Common Stock
equivalents issued and owned by Mitsui and Penske (assuming for
purposes of calculating such fraction the conversion of all
convertible securities and the exercise of all options held by
Mitsui and Penske).

     
(c) Registration Statement Form.
Registrations under this Section 2.1, shall be on such
appropriate registration form of the Commission as shall be
selected by the Company and as shall be reasonably acceptable to
Mitsui.

     
(d) Expenses. The Company shall pay
all Registration Expenses in connection with any registration
pursuant to this Section 2.1.

     
(e) Effective Registration Statement.
A registration pursuant to this Section 2.1 shall not be
deemed to have been effected (including for purposes of
paragraph (h) of this Section 2.1
(i) unless a registration statement with respect
thereto has become effective and has been kept continuously
effective for a period of at least 180 days (or such
shorter period which shall terminate when all the Registrable
Securities covered by such registration statement have been sold
pursuant thereto), (ii) if after it has become
effective, such registration is interfered with by any stop
order, injunction or other order or requirement of the
Commission or other governmental agency or court for any reason
not attributable to Mitsui and has not thereafter become
effective, or (iii) if the conditions to closing
specified in the underwriting agreement, if any, entered into in
connection with such registration are not satisfied or waived.

     
(f) Underwritten Offering; Selection of
Underwriters.

		
	 	     
    (i) Mitsui shall, at its request, be
    entitled to an underwritten offering of Registrable Securities
    in connection with any registration pursuant to this
    Section 2.1; provided, however, that Mitsui shall
    not be entitled to request more than one (1) underwritten
    offering within any two (2) year period, it being
    understood that Mitsui’s right to request an underwritten
    offering at a later date pursuant to this Section 2.1(f)
    will not be affected if Mitsui chooses to not exercise such
    right during any such two (2) year period.
    
	 
	 	     
    (ii) The underwriters of each underwritten
    offering of the Registrable Securities to be so registered
    pursuant to this Section 2.1 shall be selected by Mitsui
    and shall be subject to the approval of the Company, not to be
    unreasonably withheld or delayed.
    

     
(g) Right to Withdraw. If the
managing underwriter of any underwritten offering shall advise
Mitsui that the Registrable Securities covered by the
registration statement cannot be sold in such offering within a
price range acceptable to Mitsui, then Mitsui shall have the
right to notify the Company in writing that it has determined
that the registration statement with respect to the Registrable
Securities be abandoned or withdrawn, in which event the Company
shall abandon or withdraw such registration statement with
respect to the Registrable Securities. In the event of such
abandonment or withdrawal, such request shall not be counted for
purposes of the requests for registration to which Mitsui is
entitled pursuant to this Section 2.1

     
(h) Limitations on Registration on
Request. Mitsui shall be entitled to require the Company to
effect, and the Company shall be required to effect, two
(2) registrations in the aggregate pursuant to this
Section 2.1, provided, however, that the aggregate offering
value of the shares to be registered pursuant to any

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such registration shall be at least $10,000,000
unless Mitsui then owns shares with an aggregate value of less
than $10,000,000 (in which case such lesser number of shares may
be registered).

     
(i) Postponement. The Company shall
be entitled once in any six-month period to postpone for a
reasonable period of time (but not exceeding 90 days) (the
“Postponement Period”) the filing of any registration
statement required to be prepared and filed by it pursuant to
this Section 2.1 if the Company determines, in its
reasonable judgment, that such registration and offering would
materially interfere with any material financing, corporate
reorganization or other material transaction involving the
Company or any subsidiary, or would require premature disclosure
thereof, and promptly gives Mitsui written notice of such
determination, containing a general statement of the reasons for
such postponement and an approximation of the anticipated delay.
If the Company shall so postpone the filing of a registration
statement, (i) the Company shall use its reasonable best
efforts to limit the delay to as short a period as is
practicable and (ii) Mitsui shall have the right to
withdraw the request for registration by giving written notice
to the Company at any time and, in the event of such withdrawal,
such request shall not be counted for purposes of the requests
for registration to which Mitsui is entitled pursuant to this
Section 2.1.

     
2.2 Incidental Registration.

     
(a) Right to Include Registrable
Securities. If the Company at any time proposes to register
any of its securities under the Securities Act by registration
on Form S-1, S-2 or S-3 or any successor or similar form(s)
(except for registration on any such form or similar form(s)
solely for registration of securities in connection with an
employee benefit plan, dividend reinvestment plan or merger or
consolidation), whether or not for sale for its own account, the
Company will each such time give prompt written notice to Mitsui
of its intention to do so and of Mitsui’s rights under this
Section 2.2. Upon the written request of Mitsui (which request
shall specify the maximum number of Registrable Securities
intended to be disposed of by Mitsui), made as promptly as
practicable and in any event within 30 days after the
receipt of any such notice (15 days if the Company states
in such written notice or gives telephonic notice to Mitsui,
with written confirmation to follow promptly thereafter, stating
that (i) such registration will be on Form S-3 and
(ii) such shorter period of time is required because of a
planned filing date), the Company shall use its reasonable best
efforts to include in such registration under the Securities Act
all Registrable Securities which the Company has been so
requested to register by Mitsui. Notwithstanding anything to the
contrary contained in this Agreement, the Company may in its
discretion withdraw any registration commenced pursuant to this
Section 2.2 without liability to the holders of Registrable
Securities. No registration effected under this Section 2.2
shall relieve the Company of its obligation to effect any
registration under Section 2.1 The Company will pay all
Registration Expenses in connection with any registration of
Registrable Securities requested pursuant to this
Section 2.2.

     
(b) Right to Withdraw. Mitsui shall
have the right to withdraw its request for inclusion of any of
its Registrable Securities in any registration statement
pursuant to this Section 2.2 at any time prior to the
execution of an underwriting agreement with respect thereto by
giving written notice to the Company of its request to withdraw.

     
(c) Priority in Incidental
Registrations. If the managing underwriter of any
underwritten offering shall inform the Company by letter of its
belief that the number of Registrable Securities requested to be
included in such registration, when added to the number of other
securities to be offered in such registration, would materially
adversely affect such offering, then the Company shall include
in such registration, to the extent of the number which the
Company is so advised can be sold in (or during the time of)
such offering without so materially adversely affecting such
offering (the “Section 2.2 Sale Amount”),
(i) all of the securities proposed by the Company to be
sold for its own account; (ii) thereafter, to the extent
the Section 2.2 Sale Amount is not exceeded, any other
securities of the Company requested to be included in such
registration by Mitsui, Penske and their respective Affiliates,
with the amount of securities of Mitsui, Penske and their
respective Affiliates to be included based on the pro rata
amount of shares of Common Stock held, or obtainable by exercise
or conversion of other securities of the Company, by Mitsui, and
Penske and their respective Affiliates; and
(iii) thereafter, to the extent the Section 2.2 Sale
Amount is not exceeded, any other holder of Company securities
entitled to register such securities.

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(d) Plan of Distribution. Any
participation by holders of Registrable Securities in a
registration by the Company pursuant to this Section 2.2
shall be in accordance with the Company’s plan of
distribution.

     
(e) The Company represents and warrants
that, as of the date hereof, no Person has rights to require the
Company to effect the registration under the Securities Act of
Common Stock, except as disclosed prior to the date hereof in
the Company’s filings with the U.S. Securities and Exchange
Commission.

     
(f) After the date hereof, the Company shall
not grant to any Person, rights to require the Company to effect
a registration under the Securities Act of Common Stock that are
more favorable to such Person than the rights granted to Mitsui
hereunder unless the Company simultaneously enters into an
amendment of this Agreement pursuant to which Mitsui will be
granted rights to require the Company to effect a registration
under the Securities Act of Common Stock that are equal to the
rights granted to such Person.

     
(g) After the date hereof, the Company shall
not grant to any Person rights to include Common Stock in a
registration under the Securities Act of Common Stock that are
more favorable to such Person than the rights granted to Mitsui
hereunder unless the Company simultaneously enters into an
amendment of this Agreement pursuant to which Mitsui will be
granted rights to include Common Stock in a registration under
the Securities Act that are equal to the rights provided to such
Person.

     
2.3 Registration Procedures. If and
whenever the Company is required to use its reasonable best
efforts to effect the registration of any Registrable Securities
under the Securities Act as provided in Sections 2.1 and
2.2 hereof, the Company shall unless and until either Mitsui has
withdrawn its request or is no longer entitled to include in
such registration, all or any portion of the Registrable
Securities, as expeditiously as possible:

		
	 	     
    (a) prepare and file with the Commission as
    soon as practicable the requisite registration statement to
    effect such registration (and shall include all financial
    statements required by the Commission to be filed therewith) and
    thereafter use its reasonable best efforts to cause such
    registration statement to become effective; provided,
    however, that before filing such registration statement
    (including all exhibits) or any amendment or supplement thereto
    or comparable statements under securities or blue sky laws of
    any jurisdiction, the Company shall as promptly as practicable
    furnish such documents to Mitsui and each underwriter, if any,
    participating in the offering of the Registrable Securities and
    their respective counsel, which documents will be subject to the
    reasonable review and comments of Mitsui, each underwriter and
    their respective counsel; and provided, further, however,
    that the Company may discontinue any registration of its
    securities pursuant to Section 2.2 or which are not Registrable
    Securities at any time prior to the effective date of the
    registration statement relating thereto;
    
	 
	 	     
    (b) notify Mitsui of the Commission’s
    requests for amending or supplementing the registration
    statement and the prospectus, and prepare and file with the
    Commission such amendments and supplements to such registration
    statement and the prospectus used in connection therewith as may
    be necessary to keep such registration statement effective and
    to comply with the provisions of the Securities Act with respect
    to the disposition of all Registrable Securities covered by such
    registration statement for such period as shall be required for
    the disposition of all of such Registrable Securities in
    accordance with the intended method of distribution thereof;
    provided, that except with respect to any such
    registration statement filed pursuant to Rule 415 under the
    Securities Act, such period need not exceed 180 days;
    
	 
	 	     
    (c) furnish, without charge, to Mitsui and
    each underwriter such number of conformed copies of such
    registration statement and of each such amendment and supplement
    thereto (in each case including all exhibits), such number of
    copies of the prospectus contained in such registration
    statement (including each preliminary prospectus and any summary
    prospectus) and any other prospectus filed under Rule 424
    under the Securities Act, in conformity with the requirements of
    the Securities Act, and such other documents, as Mitsui and such
    underwriters may reasonably request;
    
	 
	 	     
    (d) use its reasonable best efforts
    (i) to register or qualify all Registrable Securities and
    other securities covered by such registration statement under
    such securities or blue sky laws of such States of the United
    States of America where an exemption is not available and as
    Mitsui or any managing underwriter shall reasonably request,
    (ii) to keep such registration or qualification in effect
    for so long as such registration statement remains in effect,
    and (iii) to take any other action which may be reasonably
    

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    necessary or advisable to enable Mitsui to
    consummate the disposition in such jurisdictions of the
    securities to be sold by Mitsui, except that the Company shall
    not for any such purpose be required to qualify generally to do
    business as a foreign corporation in any jurisdiction wherein it
    would not but for the requirements of this subsection
    (d) be obligated to be so qualified or to consent to
    general service of process in any such jurisdiction;
    
	 
	 	     
    (e) furnish to Mitsui and each underwriter,
    if any, participating in the offering of the securities covered
    by such registration statement, a signed counterpart of
    (i) an opinion of counsel for the Company, and (ii) a
    “comfort” letter signed by the independent public
    accountants who have certified the Company’s or any other
    entity’s financial statements included or incorporated by
    reference in such registration statement, covering substantially
    the same matters with respect to such registration statement
    (and the prospectus included therein) and, in the case of the
    accountants’ comfort letter, with respect to events
    subsequent to the date of such financial statements, as are
    customarily covered in opinions of issuer’s counsel and in
    accountants’ comfort letters delivered to the underwriters
    in underwritten public offerings of securities (and dated the
    dates such opinions and comfort letters are customarily dated)
    and, in the case of the legal opinion, such other legal matters,
    and, in the case of the accountants’ comfort letter, such
    other financial matters, as the underwriters, may reasonably
    request;
    
	 
	 	     
    (f) promptly notify Mitsui and each managing
    underwriter, if any, participating in the offering of the
    securities covered by such registration statement (i) when
    such registration statement, any pre-effective amendment, the
    prospectus or any prospectus supplement related thereto or
    post-effective amendment to such registration statement has been
    filed, and, with respect to such registration statement or any
    post-effective amendment, when the same has become effective;
    (ii) of any request by the Commission for amendments or
    supplements to such registration statement or the prospectus
    related thereto or for additional information; (iii) of the
    issuance by the Commission of any stop order suspending the
    effectiveness of such registration statement or the initiation
    of any proceedings for that purpose; (iv) of the receipt by
    the Company of any notification with respect to the suspension
    of the qualification of any of the Registrable Securities for
    sale under the securities or blue sky laws of any jurisdiction
    or the initiation of any proceeding for such purpose;
    (v) at any time when a prospectus relating thereto is
    required to be delivered under the Securities Act, upon
    discovery that, or upon the happening of any event as a result
    of which, the prospectus included in such registration
    statement, as then in effect, includes an untrue statement of a
    material fact or omits to state any material fact required to be
    stated therein or necessary to make the statements therein not
    misleading, in the light of the circumstances under which they
    were made, and in the case of this clause (v), at the request of
    Mitsui promptly prepare and furnish to Mitsui and each managing
    underwriter, if any, participating in the offering of the
    Registrable Securities, a reasonable number of copies of a
    supplement to or an amendment of such prospectus as may be
    necessary so that, as thereafter delivered to the purchasers of
    such securities, such prospectus shall not include 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 in the light of the
    circumstances under which they were made;
    
	 
	 	     
    (g) otherwise comply with all applicable
    rules and regulations of the Commission, and make available to
    its security holders, as soon as reasonably practicable, an
    earnings statement covering the period of at least twelve months
    beginning with the first full calendar month after the effective
    date of such registration statement, which earnings statement
    shall satisfy the provisions of Section 11(a) of the
    Securities Act and Rule 158 promulgated thereunder, and
    promptly furnish to Mitsui a copy of any amendment or supplement
    to such registration statement or prospectus;
    
	 
	 	     
    (h) provide and cause to be maintained a
    transfer agent and registrar (which, in each case, may be the
    Company) for all Registrable Securities covered by such
    registration statement from and after a date not later than the
    effective date of such registration;
    
	 
	 	     
    (i) (i) use its reasonable best efforts
    to cause all Registrable Securities covered by such registration
    statement to be listed on the principal securities exchange on
    which similar securities issued by the Company are then listed
    (if any), if the listing of such Registrable Securities is then
    permitted under the
    

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    rules of such exchange, or (ii) if no
    similar securities are then so listed, use its reasonable best
    efforts to (x) cause all such Registrable Securities to be
    listed on a national securities exchange or (y) failing
    that, secure designation of all such Registrable Securities as a
    NASDAQ “national market system security” within the
    meaning of Rule 11Aa2-1 of the Commission or
    (z) failing that, to secure NASDAQ authorization for such
    shares and, without limiting the generality of the foregoing, to
    arrange for at least two market makers to register as such with
    respect to such shares with the National Association of
    Securities Dealers, Inc.;
    
	 
	 	     
    (j) deliver promptly to counsel to Mitsui
    and each underwriter, if any, participating in the offering of
    the Registrable Securities, copies of all correspondence between
    the Commission and the Company, its counsel or auditors;
    
	 
	 	     
    (k) use its reasonable best efforts to
    obtain the withdrawal of any order suspending the effectiveness
    of the registration statement;
    
	 
	 	     
    (l) provide a CUSIP number for all
    Registrable Securities, no later than the effective date of the
    registration statement; and
    
	 
	 	     
    (m) make available its employees and
    personnel (including Company management) and otherwise provide
    reasonable assistance to the underwriters (taking into account
    the needs of the Company’s business) in their marketing of
    Registrable Securities, including, without limitation, the
    reasonable participation and cooperation of such employees and
    personnel (including Company management) in any “road
    show” or similar event undertaken by Mitsui or the
    underwriters; provided, however that the Company shall comply
    with the terms of this clause (m) only two times,
    irrespective of the terms of paragraph (g) of
    Section 2.1.
    

     
The Company may require Mitsui to furnish the
Company such information regarding Mitsui and the distribution
of the Registrable Securities as the Company may need for the
purpose of effecting a registration of Common Stock, including
Registrable Securities, under the Securities Act. The Company
shall be excused from any obligation to Mitsui hereunder to the
extent that Mitsui’s failure to deliver such information
has impaired the Company’s ability to perform its
obligations hereunder and comply with applicable laws and
regulations under the Securities Act, and for so long as Mitsui
has not delivered such information to the extent required by
applicable law.

     
Mitsui agrees that upon receipt of any notice
from the Company of the happening of any event of the kind
described in paragraph (f)(iii), (iv) or (v) of this
Section 2.3, Mitsui will, to the extent appropriate,
discontinue its disposition of Registrable Securities pursuant
to the registration statement relating to such Registrable
Securities until, in the case of paragraphs (f)(iii) and
(f)(iv) of this Section 2.3, such stop order, suspension,
or the proceeding has been terminated, and, in the case of
paragraph (f)(v) of this Section 2.3, its receipt of
the copies of the supplemented or amended prospectus
contemplated by paragraph (f)(v) of this Section 2.3
and, if so directed by the Company, will deliver to the Company
(at the Company’s expense) all copies, other than permanent
file copies, then in its possession, of the prospectus relating
to such Registrable Securities current at the time of receipt of
such notice. If the disposition by Mitsui of its securities is
discontinued pursuant to the foregoing sentence, the Company
shall extend the period of effectiveness of the registration
statement required pursuant to Section 2.3(b) by the number
of days during the period from and including the date of the
giving of notice to and including the date when Mitsui shall
have received copies of the supplemented or amended prospectus
contemplated by paragraph (f)(v) of this Section 2.3.

     
2.4 Underwritten Offerings.

     
(a) Requested Underwritten Offerings.
If requested by the underwriters for any underwritten offering
requested by Mitsui pursuant to a registration under
Section 2.1, the Company shall enter into a customary
underwriting agreement (in the form of underwriting agreement
used at such time by the managing underwriter(s)) with a
managing underwriter or underwriters selected pursuant to
Section 2.1(f) which shall contain such terms as are
generally prevailing in agreements of the managing
underwriter(s), including, without limitation, their customary
provisions relating to indemnification and contribution (the
“Customary Terms”). Mitsui shall be party to
such underwriting agreement and may, at its option, require that
any or all

B-7

 

of the representations and warranties by, and the
other agreements on the part of, the Company to and for the
benefit of such underwriters shall also be made to and for the
benefit of Mitsui, and that any or all of the conditions
precedent to the obligations of such underwriters relating to
the Company under such underwriting agreement be conditions
precedent to the obligations of Mitsui. Mitsui shall not be
required to make any representations or warranties to or
agreements with the Company or the underwriters other than
representations, warranties or agreements regarding Mitsui,
Mitsui’s ownership of and title to the Registrable
Securities, and Mitsui’s intended methods of distribution
and other representations that constitute Customary Terms, and
any liability of Mitsui to any underwriter or other person under
such underwriting agreement shall be several and not joint, and
shall be limited to liability arising from breach of their
respective representations and warranties and shall be limited
to an amount equal to the proceeds (net of expenses and
underwriting discounts and commissions) that Mitsui derives from
such registration.

     
(b) Incidental Underwritten Offering.
In the case of a registration pursuant to Section 2.2
hereof, if the Company shall have determined to enter into any
underwriting agreements in connection therewith, all of the
Registrable Securities to be included in such registration shall
be subject to such underwriting agreements. Mitsui shall not be
required to make any representations or warranties to or
agreements with the Company or the underwriters other than
representations, warranties or agreements regarding Mitsui,
Mitsui’s ownership of and title to the Registrable
Securities, and Mitsui’s intended methods of distribution
and other representations that constitute Customary Terms, and
any liability of Mitsui to any underwriter or other person under
such underwriting agreement shall be several and not joint, and
shall be limited to liability arising from breach of their
respective representations and warranties and shall be limited
to an amount equal to the proceeds (net of expenses and
underwriting discounts and commissions) that Mitsui derives from
such registration.

     
2.5 Preparation; Reasonable
Investigation. In connection with the preparation and filing
of each registration statement under the Securities Act pursuant
to this Agreement, the Company will give Mitsui, Mitsui’s
underwriters, if any, and Mitsui’s counsel, accountants and
other representatives and agents the opportunity to participate
in the preparation of such registration statement, each
prospectus included therein or filed with the Commission, and
each amendment thereof or supplement thereto, and give each of
them such reasonable access to its books and records and such
reasonable opportunities to discuss the business of the Company
with its officers and employees and the independent public
accountants who have certified its financial statements, and
supply all other information reasonably requested by each of
them, as shall be necessary or appropriate, in the opinion of
Mitsui, and such underwriters’ respective counsel, to
conduct a reasonable investigation within the meaning of the
Securities Act.

     
2.6 Indemnification.

     
(a) Indemnification by the Company.
The Company agrees that in the event of any registration of any
securities of the Company under the Securities Act, the Company
shall indemnify and hold harmless Mitsui, its respective
directors, officers, members, partners, agents and affiliates
and each other Person who participates as an underwriter in the
offering or sale of such securities and each other Person, if
any, who controls Mitsui or any such underwriter within the
meaning of the Securities Act, against any losses, claims,
damages, or liabilities, joint or several, to which Mitsui or
any such director, officer, member, partner, agent or affiliate
or underwriter or controlling person may become subject under
the Securities Act or otherwise, insofar as such losses, claims,
damages or liabilities, joint or several (or actions or
proceedings, whether commenced or threatened, in respect
thereof), arise out of or are based upon (i) any untrue
statement or alleged untrue statement of any material fact
contained in any registration statement under which such
securities were registered under the Securities Act, any
preliminary prospectus, final prospectus or summary prospectus
contained therein, or any amendment or supplement thereto or
(ii) any omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make
the statements therein in light of the circumstances in which
they were made not misleading, and the Company shall reimburse
Mitsui and each such director, officer, member, partner, agent
or affiliate, underwriter and controlling Person for any legal
or any other expenses reasonably incurred by them in connection
with investigating or defending any such loss, claim, liability,
action or proceeding; provided that the Company shall not
be liable in any such case to Mitsui or any such director,
officer, member, partner, agent, affiliate, or controlling
person to the extent that any such loss, claim, damage,
liability (or action or proceeding in respect thereof) or
expense arises out of or is based

B-8

 

upon an untrue statement or alleged untrue
statement or omission or alleged omission made in such
registration statement, any such preliminary prospectus, final
prospectus, summary prospectus, amendment or supplement in
reliance upon and in conformity with written information
furnished to the Company by or on behalf of Mitsui, specifically
stating that it is for use in the preparation thereof;
provided, however, that the foregoing indemnity agreement
with respect to any preliminary prospectus shall not inure to
the benefit of any person from whom the person asserting any
such losses, claims, damages or liabilities (the
“Claimant”) purchased securities, or any person
controlling such person, if a copy of the prospectus (as then
amended or supplemented if the Company shall have furnished any
amendment or supplement thereto) was not sent or given by or on
behalf of such person to such Claimant, if required by law to
have been so delivered, at or prior to the written confirmation
of the sale of the securities sold to such Claimant, and if the
prospectus (as so amended and supplemented) would have cured the
defect giving rise to such losses, claims, damages or
liabilities. Such indemnity shall remain in full force
regardless of any investigation made by or on behalf of Mitsui
or any such director, officer, member, partner, agent,
affiliate, underwriter or controlling Person and shall survive
the transfer of such securities by Mitsui.

     
(b) Indemnification by Mitsui. As a
condition to including any Registrable Securities in any
registration statement, Mitsui shall indemnify and hold harmless
(in the same manner and to the same extent as set forth in
paragraph (a) of this Section 2.6) the Company, and
each director of the Company, each officer of the Company and
each other Person, if any, who controls the Company within the
meaning of the Securities Act, with respect to any statement or
alleged statement in or omission or alleged omission from such
registration statement, any preliminary prospectus, final
prospectus or summary prospectus contained therein, or any
amendment or supplement thereto, but only to the extent such
statement or alleged statement or omission or alleged omission
was made in reliance upon and in conformity with written
information furnished to the Company by or on behalf of Mitsui
specifically stating that it is for use in the preparation of
such registration statement, preliminary prospectus, final
prospectus, summary prospectus, amendment or supplement;
provided, however, that the liability of such
indemnifying party under this Section 2.6(b) shall be
limited to the amount of proceeds (net of expenses and
underwriting discounts and commissions) received by such
indemnifying party in the offering giving rise to such
liability. Such indemnity shall remain in full force and effect,
regardless of any investigation made by or on behalf of the
Company or any such director, officer or controlling Person and
shall survive the transfer of such securities by Mitsui.

     
(c) Notices of Claims, etc. Promptly
after receipt by an indemnified party of notice of the
commencement of any action or proceeding involving a claim
referred to in the preceding subsections of this
Section 2.6, such indemnified party shall, if a claim in
respect thereof is to be made against an indemnifying party,
give written notice to the latter of the commencement of such
action or proceeding; provided, however, that the failure
of any indemnified party to give notice as provided herein shall
not relieve the indemnifying party of its obligations under the
preceding subsections of this Section 2.4, except to the
extent that the indemnifying party is actually prejudiced by
such failure to give notice, and shall not relieve the
indemnifying party from any liability which it may have to the
indemnified party otherwise than under this Section 2.6. In
case any such action or proceeding is brought against an
indemnified party, the indemnifying party shall be entitled to
participate therein and, unless in the opinion of outside
counsel to the indemnified party a conflict of interest between
such indemnified and indemnifying parties may exist in respect
of such claim, to assume the defense thereof, jointly with any
other indemnifying party similarly notified to the extent that
it may wish, with counsel reasonably satisfactory to such
indemnified party; provided, however, that if the
defendants in any such action or proceeding include both the
indemnified party and the indemnifying party and if in the
opinion of outside counsel to the indemnified party there may be
legal defenses available to such indemnified party and/or other
indemnified parties which are in conflict with or in addition to
those available to the indemnifying party, the indemnified party
or parties shall have the right to select separate counsel to
defend such action or proceeding on behalf of such indemnified
party or parties, provided, however, that the indemnifying party
shall be obligated to pay for only one counsel and one local
counsel for all indemnified parties. After notice from the
indemnifying party to such indemnified party of its election so
to assume the defense thereof and approval by the indemnified
party of such counsel, the indemnifying party shall not be
liable to such indemnified party for any legal expenses
subsequently incurred by the latter in connection with the
defense thereof (unless the first proviso in the preceding
sentence shall be applicable). No indemnifying party shall be
liable for any settlement

B-9

 

of any action or proceeding effected without its
written consent. No indemnifying party shall, without the
consent of the indemnified party, consent to entry of any
judgment or enter into any settlement which does not include as
an unconditional term thereof the giving by the claimant or
plaintiff to such indemnified party of a release from all
liability in respect to such claim or litigation.

     
(d) Contribution. If the
indemnification provided for in this Section 2.6 shall for
any reason be held by a court to be unavailable to an
indemnified party under subsection (a) or (b) hereof
in respect of any loss, claim, damage or liability, or any
action in respect thereof, then, in lieu of the amount paid or
payable under subsection (a) or (b) hereof, the indemnified
party and the indemnifying party under subsection (a) or
(b) hereof shall contribute to the aggregate losses, claims,
damages and liabilities (including legal or other expenses
reasonably incurred in connection with investigating the same),
(i) in such proportion as is appropriate to reflect the
relative fault of the indemnifying party on the one hand, and
the indemnified party on the other, which resulted in such loss,
claim, damage or liability, or action in respect thereof, with
respect to the statements or omissions which resulted in such
loss, claim, damage or liability, or action in respect thereof,
as well as any other relevant equitable considerations, or
(ii) if the allocation provided by clause (i) above is
not permitted by applicable law, in such proportion as shall be
appropriate to reflect not only the relative fault but also the
relative benefits received by the indemnifying party and the
indemnified party from the offering of the securities covered by
such registration statement as well as any other relevant
equitable considerations. The parties hereto agree that it would
not be just and equitable if contributions pursuant to this
Section 2.6(d) were to be determined by pro rata allocation
or by any other method of allocation which does not take into
account the equitable considerations referred to in the
preceding sentence of this Section 2.6(d). No Person guilty
of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) shall be entitled to
contribution from any Person who was not guilty of such
fraudulent misrepresentation. In addition, no Person shall be
obligated to contribute hereunder any amounts in payment for any
settlement of any action or claim effected without such
Person’s consent, which consent shall not be unreasonably
withheld. Notwithstanding anything in this subsection
(d) to the contrary, no indemnifying party (other than the
Company) shall be required to contribute any amount in excess of
the proceeds (net of expenses and underwriting discounts and
commissions) received by such party from the sale of the
Registrable Securities in the offering to which the losses,
claims, damages or liabilities of the indemnified parties relate.

     
(e) Other Indemnification.
Indemnification and contribution similar to that specified
in the preceding subsections of this Section 2.6 (with
appropriate modifications) shall be given by the Company and
Mitsui with respect to any required registration or other
qualification of securities under any federal, state or blue sky
law or regulation of any governmental authority other than the
Securities Act. The indemnification agreements contained in this
Section 2.6 shall be in addition to any other rights to
indemnification or contribution which any indemnified party may
have pursuant to law or contract and shall remain operative and
in full force and effect regardless of any investigation made by
or on behalf of any indemnified party and shall survive the
transfer of any of the Registrable Securities by Mitsui.

     
(f) Indemnification Payments. The
indemnification and contribution required by this
Section 2.6 shall be made by periodic payments of the
amount thereof during the course of the investigation or
defense, as and when bills are received or expense, loss, damage
or liability is incurred.

     
2.7     Unlegended
Certificates. In connection with the offering of any
Registrable Securities registered pursuant to this
Section 2, the Company shall promptly after the sale of
such Registrable Securities (i) facilitate the timely
preparation and delivery to Mitsui and the underwriters, if any,
participating in such offering, of unlegended certificates
representing ownership of such Registrable Securities being sold
in such denominations and registered in such names as requested
by Mitsui or such underwriters, and (ii) instruct any
transfer agent and registrar of such Registrable Securities to
release any stop transfer orders with respect to any such
Registrable Securities.

     
2.8     No Required
Sale. Nothing in this Agreement shall be deemed to create an
independent obligation on the part of Mitsui to sell any
Registrable Securities pursuant to any effective registration
statement.

B-10

 

     
3.     Rule 144.
The Company shall take all actions reasonably necessary to
enable Mitsui to sell its Common Stock without registration
under the Securities Act within the limitation of the exemptions
provided by (i) Rule 144 under the Securities Act, or
(ii) any similar rule or regulation hereafter adopted by
the Commission including, without limiting the generality of the
foregoing, filing on a timely basis all reports required to be
filed by the Exchange Act. Upon the request of Mitsui, the
Company will deliver to such holder a written statement as to
whether it has complied with such requirements.

     
4.     Amendments and
Waivers. This Agreement may be amended, modified or
supplemented only by written agreement of the parties.

     
5.     Adjustments.
In the event of any change in the capitalization of the
Company as a result of any stock split, stock dividend, reverse
split, combination, recapitalization, merger, consolidation, or
otherwise, the provisions of this Agreement shall be
appropriately adjusted.

     
6.     Notices.
Except as otherwise provided in this Agreement, all notices,
requests, consents and other communications hereunder to any
party shall be deemed to be sufficient if contained in a written
instrument delivered in person or by telecopy, nationally
recognized overnight courier or first class registered or
certified mail, return receipt requested, postage prepaid,
addressed to such party at the address set forth below or such
other address as may hereafter be designated in writing by such
party to the other parties:

		
	 	
    (a) If to Mitsui to:
    

Mitsui & Co., Ltd.

First Motor Vehicles Div.

2-1, Ohtemachi 1-chome, Chiyoda-ku

Tokyo, Japan

Attention: General Manager of First Motor
Vehicles Div.

If to Mitsui USA:

Mitsui & Co. (U.S.A.), Inc.

Detroit Office

1000 Town Center, Suite 1900

Southfield, Michigan 48075

Attention: Detroit Machinery & Automotive
Department

with a copy to:

Debevoise & Plimpton LLP

919 Third Avenue

New York, N.Y. 10022

Attention: William D. Regner, Esq.

(b) If to the Company, to it at:

United Auto Group, Inc.

2555 Telegraph Road

Bloomfield Hills, Michigan 48302-0954

Attention: General Counsel

     
7.     Assignment;
Third Party Beneficiaries; Majority Controls. This Agreement
shall be binding upon and inure to the benefit of and be
enforceable by the parties hereto and their respective
successors and permitted assigns. This Agreement may not be
assigned by the Company, without the prior written consent of
Mitsui. Mitsui may, at its election, at any time or from time to
time, assign its rights or delegate its obligations under this
Agreement, in whole or in part, to any purchaser or other
transferee of Registrable Securities held by it; provided,
however, that any rights to withdraw shares from inclusion
in a registration statement pursuant to Section 2 shall be
made only by Mitsui for itself and all such purchasers and
transferees and provided further that any decision hereunder
made by the holders of the majority of the Registrable
Securities shall be binding on all other holders of Registrable
Securities.

B-11

 

     
8.     Remedies.
The parties hereto agree that money damages or other remedy
at law would not be sufficient or adequate remedy for any breach
or violation of, or a default under, this Agreement by them and
that, in addition to all other remedies available to them, each
of them shall be entitled to an injunction restraining such
breach, violation or default or threatened breach, violation or
default and to any other equitable relief, including without
limitation specific performance, without bond or other security
being required. In any action or proceeding brought to enforce
any provision of this Agreement (including the indemnification
provisions thereof), the successful party shall be entitled to
recover reasonable attorneys’ fees in addition to its costs
and expenses and any other available remedy.

     
9.     Descriptive
Headings. The descriptive headings of the several sections
and paragraphs of this Agreement are inserted for reference only
and shall not control or otherwise affect the meaning hereof.

     
10.     Governing
Law. This Agreement shall be construed and enforced in
accordance with, and the rights and obligations of the parties
hereto shall be governed by, the laws of the State of New York,
without giving effect to the conflicts of law principles thereof
which might result in the application of the laws of any other
jurisdiction. Each of the parties hereto hereby irrevocably
consents to submit to the jurisdiction of the courts of the
State of New York and the United States of America located in
the County of New York solely in respect of the interpretation
and enforcement of the provisions of this Agreement, and in
respect of the transactions contemplated hereby (and agrees not
to commence any action or proceeding relating thereto except in
such courts), and further agrees that service of any process,
summons, notice or document by U.S. registered mail to its
respective address set forth in Section 6 hereof shall be
effective service of process for any action or proceeding
brought against it in any such court. Each of the parties hereto
hereby irrevocably and unconditionally waives any objection to
the laying of venue of any action or proceeding arising out of
this Agreement or the transactions contemplated hereby in the
courts of the State of New York or the United States of America
located in the County of New York, and hereby further
irrevocably and unconditionally waives and agrees not to plead
or claim in any such court that any such action or proceeding
brought in any such court has been brought in an inconvenient
forum.

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

     
12.     Invalidity of
Provision. The invalidity or unenforceability of any
provision of this Agreement in any jurisdiction shall not affect
the validity or enforceability of the remainder of this
Agreement in that jurisdiction or the validity or enforceability
of this Agreement, including that provision, in any other
jurisdiction. If any restriction or provision of this Agreement
is held unreasonable, unlawful or unenforceable in any respect,
such restriction or provision shall be interpreted, revised or
applied in a manner that renders it lawful and enforceable to
the fullest extent possible under law.

     
13.     Further
Assurances. Each party hereto shall do and perform or cause
to be done and performed all further acts and things and shall
execute and deliver all other agreements, certificates,
instruments, and documents as any other party hereto reasonably
may request in order to carry out the intent and accomplish the
purposes of this Agreement and the consummation of the
transactions contemplated hereby.

     
14.     Entire
Agreement. This Agreement constitutes the entire agreement,
and supersedes all prior agreements and understandings, oral and
written, between the parties hereto with respect to the subject
matter hereof.

[Remainder of page left blank]

B-12

 

     
IN WITNESS WHEREOF, the parties have caused this
Agreement to be executed and delivered by their respective
officers thereunto duly authorized.

		
	 	
    UNITED AUTO GROUP, INC.
    

			
	 	By: 	
    /s/ Robert H. Kurnick, Jr.
    

		
	 	
    

	 	
    Name:  Robert
    H. Kurnick, Jr.
    

			
	 	Title:	
    Executive Vice President
    

		
	 	
    MITSUI & CO., LTD.
    

			
	 	By: 	
    /s/ Tatsuo Nakayama
    

		
	 	
    

	 	
    Name:  Tatsuo
    Nakayama
    

			
	 	Title:	
    General Manager
    

		
	 	
    First Motor Vehicles Division
    
	 
	 	
    MITSUI & CO. (U.S.A.), INC.
    

			
	 	By: 	
    /s/ Osamu Koyama
    

		
	 	
    

	 	
    Name:  Osamu
    Koyama
    

			
	 	Title:	
    Senior Vice President
    

B-13

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