Document:

Order of Assesment of Civil Money Penalty

 

Exhibit 10.5

UNITED STATES OF AMERICA

Before The

OFFICE OF THRIFT SUPERVISION

__________________________

	 	 	 	 	 	 	 
	 

	 	 	)	 	 	 
	In the Matter of

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	BankAtlantic

	 	 	)	 	 	Order No.:
	Fort Lauderdale, Florida

	 	 	)	 	 	 
	 

	 	 	)	 	 	Date:
	OTS Docket No. 05551

	 	 	)	 	 	 
	 

	 	 	)	 	 	 

__________________________

ORDER OF ASSESSMENT OF

A CIVIL MONEY PENALTY

     WHEREAS, BankAtlantic, Fort Lauderdale, Florida, OTS Docket No. 05551 (BankAtlantic), by and
through its Board of Directors, has executed a Stipulation and Consent to the Issuance of an Order
to Cease and Desist for Affirmative Relief and an Order of Assessment of a Civil Money Penalty
(Stipulation); and

     WHEREAS, BankAtlantic, by its execution of the Stipulation, has consented and agreed to the
issuance of this Order of Assessment of a Civil Money Penalty (Order), by the Office of Thrift
Supervision (OTS), pursuant to 12 U.S.C. 1818(i).1

     WHEREAS, the Director of the OTS has delegated to the Regional Directors of the OTS the
authority to issued Orders of Assessment of a Civil Money Penalty on behalf of the OTS where the
institution that is the subject of the Order has consented to the issuance of the Order.

NOW THEREFORE, IT IS ORDERED that:

     1. Within ten (10) calendar days of the date of this Order, BankAtlantic shall pay a civil
money penalty in the amount of ten million dollars ($10,000,000.00).

 

			
	1	 	All references to the United States Code (“U.S.C.”) are as amended, unless otherwise indicated.

 

     2. Payment of the penalty assessed pursuant to paragraph 1 of this Order shall be concurrent
with the civil forfeiture of ten million dollars ($10,000,000.00) assessment by the U.S. Department
of Justice in a Deferred Prosecution Agreement with BankAtlantic, dated _______________,
and shall be satisfied by a single payment in the amount of ten million dollars ($10,000,000.00)
paid pursuant to the terms of that Deferred Prosecution Agreement.

     3. The Stipulation is made of part hereof and is incorporated by this reference.

     4. This Order is and shall become effective on the date it is issued, as shown in the caption
hereof. The Stipulation and the Order shall remain in effect until terminated, modified or
suspended in writing by OTS, acting through its Director, Regional Director, or other authorized
representative. The order, however, will terminate automatically on the day following the day on
which BankAtlantic makes full payment of the penalty assessed by this Order.

	 	 	 	 	 
	 	OFFICE OF THRIFT SUPERVISION

 	 
	 	By:  	/s/ John E. Ryan
 	 
	 	 	John E. Ryan 	 
	 	 	Regional Director

Southeast Region 	 
	 

2Indenture

 

Exhibit
4.1 

 

 

 

 

 

 

AUTONATION, INC.,

as Issuer

THE GUARANTORS named herein,

as Guarantors

and

WELLS FARGO BANK, N.A.

as Trustee

 

INDENTURE

Dated as of April 12, 2006

 

Floating Rate Senior Notes due 2013

7% Senior Notes due 2014

 

 

 

 

 

 

 

Table of Contents

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 	 	ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE
	 	 	 	 
	 
	 	 
	 	 	 	 
	Section 1.1.
	 	Definitions.

	 	 	1	 
	Section 1.2.
	 	Other Definitions.

	 	 	22	 
	Section 1.3.
	 	Terms of TIA.

	 	 	22	 
	Section 1.4.
	 	Rules of Construction.

	 	 	23	 
	 
	 	 
	 	 	 	 
	 	 	ARTICLE II

THE NOTES
	 	 	 	 
	 
	 	 
	 	 	 	 
	Section 2.1.
	 	Form and Dating.

	 	 	23	 
	Section 2.2.
	 	Execution and Authentication.

	 	 	24	 
	Section 2.3.
	 	Registrar, Paying Agent and Calculation Agent.

	 	 	25	 
	Section 2.4.
	 	Paying Agent to Hold Money in Trust.

	 	 	25	 
	Section 2.5.
	 	Holder Lists.

	 	 	25	 
	Section 2.6.
	 	Transfer and Exchange.

	 	 	26	 
	Section 2.7.
	 	Replacement Notes.

	 	 	36	 
	Section 2.8.
	 	Outstanding Notes.

	 	 	36	 
	Section 2.9.
	 	Treasury Notes.

	 	 	37	 
	Section 2.10.
	 	Temporary Notes.

	 	 	37	 
	Section 2.11.
	 	Cancellation.

	 	 	37	 
	Section 2.12.
	 	Defaulted Interest.

	 	 	37	 
	Section 2.13.
	 	CUSIP Numbers.

	 	 	38	 
	 
	 	 
	 	 	 	 
	 	 	ARTICLE III

REDEMPTION
	 	 	 	 
	 
	 	 
	 	 	 	 
	Section 3.1.
	 	Notice of Redemption to Trustee.

	 	 	38	 
	Section 3.2.
	 	Selection of Notes to Be Redeemed.

	 	 	38	 
	Section 3.3.
	 	Notice of Redemption to Holders.

	 	 	38	 
	Section 3.4.
	 	Effect of Notice of Redemption.

	 	 	39	 
	Section 3.5.
	 	Deposit of Redemption Price.

	 	 	39	 
	Section 3.6.
	 	Notes Redeemed in Part.

	 	 	39	 
	Section 3.7.
	 	Optional Redemption.

	 	 	40	 
	 
	 	 
	 	 	 	 
	 	 	ARTICLE IV

COVENANTS
	 	 	 	 
	 
	 	 
	 	 	 	 
	Section 4.1.
	 	Payment of Notes.

	 	 	41	 
	Section 4.2.
	 	Maintenance of Office or Agency.

	 	 	41	 
	Section 4.3.
	 	Reports.

	 	 	42	 
	Section 4.4.
	 	Compliance Certificate.

	 	 	42	 
	Section 4.5.
	 	Taxes.

	 	 	43	 
	Section 4.6.
	 	Stay, Extension and Usury Laws.

	 	 	43	 
	Section 4.7.
	 	Limitation on Restricted Payments.

	 	 	43	 
	Section 4.8.
	 	Limitation on Dividend and Other Payment Restrictions Affecting
Restricted Subsidiaries.

	 	 	48	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	Section 4.9.
	 	Limitation on Indebtedness.

	 	 	49	 
	Section 4.10.
	 	Limitation on Sale of Assets.

	 	 	52	 
	Section 4.11.
	 	Limitation on Transactions with Affiliates.

	 	 	55	 
	Section 4.12.
	 	Limitation on Liens.

	 	 	56	 
	Section 4.13.
	 	Limitation on Unrestricted Subsidiaries.

	 	 	57	 
	Section 4.14.
	 	Corporate Existence.

	 	 	58	 
	Section 4.15.
	 	Purchase of Notes upon Change of Control.

	 	 	59	 
	Section 4.16.
	 	Limitation on Guarantees of Indebtedness by Restricted Subsidiaries.

	 	 	60	 
	Section 4.17.
	 	Suspension Period.

	 	 	61	 
	 
	 	 
	 	 	 	 
	 	 	ARTICLE V

SUCCESSORS
	 	 	 	 
	 
	 	 
	 	 	 	 
	Section 5.1.
	 	Consolidation, Merger and Sale of Assets.

	 	 	62	 
	Section 5.2.
	 	Successor Person Substituted.

	 	 	63	 
	 
	 	 
	 	 	 	 
	 	 	ARTICLE VI

DEFAULTS AND REMEDIES
	 	 	 	 
	 
	 	 
	 	 	 	 
	Section 6.1.
	 	Events of Default.

	 	 	63	 
	Section 6.2.
	 	Acceleration.

	 	 	65	 
	Section 6.3.
	 	Other Remedies.

	 	 	66	 
	Section 6.4.
	 	Waiver of Past Defaults.

	 	 	67	 
	Section 6.5.
	 	Control by Majority.

	 	 	67	 
	Section 6.6.
	 	Limitation on Suits.

	 	 	67	 
	Section 6.7.
	 	Rights of Holders of Notes to Receive Payment.

	 	 	67	 
	Section 6.8.
	 	Collection Suit by Trustee.

	 	 	67	 
	Section 6.9.
	 	Trustee May File Proofs of Claim.

	 	 	67	 
	Section 6.10.
	 	Priorities.

	 	 	68	 
	Section 6.11.
	 	Undertaking for Costs.

	 	 	68	 
	 
	 	 
	 	 	 	 
	 	 	ARTICLE VII

TRUSTEE
	 	 	 	 
	 
	 	 
	 	 	 	 
	Section 7.1.
	 	Duties of Trustee.

	 	 	69	 
	Section 7.2.
	 	Rights of Trustee.

	 	 	70	 
	Section 7.3.
	 	Individual Rights of Trustee.

	 	 	71	 
	Section 7.4.
	 	Trustee’s Disclaimer.

	 	 	71	 
	Section 7.5.
	 	Notice of Defaults.

	 	 	71	 
	Section 7.6.
	 	Reports by Trustee to Holders of the Notes.

	 	 	71	 
	Section 7.7.
	 	Compensation and Indemnity.

	 	 	71	 
	Section 7.8.
	 	Replacement of Trustee.

	 	 	72	 
	Section 7.9.
	 	Successor Trustee by Merger, etc.

	 	 	73	 
	Section 7.10.
	 	Eligibility; Disqualification.

	 	 	73	 
	Section 7.11.
	 	Preferential Collection of Claims Against the Company.

	 	 	73	 
	Section 7.12.
	 	Trustee’s Application for Instructions from the Company.

	 	 	74	 

iii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 	 	ARTICLE VIII

DEFEASANCE AND COVENANT DEFEASANCE; DISCHARGE
	 	 	 	 
	 
	 	 
	 	 	 	 
	Section 8.1.
	 	Option to Effect Defeasance or Covenant Defeasance.

	 	 	74	 
	Section 8.2.
	 	Defeasance and Discharge.

	 	 	74	 
	Section 8.3.
	 	Covenant Defeasance.

	 	 	74	 
	Section 8.4.
	 	Conditions to Defeasance or Covenant Defeasance.

	 	 	75	 
	Section 8.5.
	 	Deposited Money and U.S. Government Obligations to Be Held in Trust;
Other Miscellaneous Provisions.

	 	 	76	 
	Section 8.6.
	 	Repayment to the Company.

	 	 	77	 
	Section 8.7.
	 	Reinstatement.

	 	 	77	 
	Section 8.8.
	 	Discharge.

	 	 	77	 
	 
	 	 
	 	 	 	 
	 	 	ARTICLE IX

AMENDMENT, SUPPLEMENT AND WAIVER
	 	 	 	 
	 
	 	 
	 	 	 	 
	Section 9.1.
	 	Without Consent of Holders of Notes.

	 	 	78	 
	Section 9.2.
	 	With Consent of Holders of Notes.

	 	 	79	 
	Section 9.3.
	 	Revocation and Effect of Consents.

	 	 	80	 
	Section 9.4.
	 	Notation on or Exchange of Notes.

	 	 	81	 
	Section 9.5.
	 	Trustee to Sign Amendments, etc.

	 	 	81	 
	 
	 	 
	 	 	 	 
	 	 	ARTICLE X

GUARANTEES
	 	 	 	 
	 
	 	 
	 	 	 	 
	Section 10.1.
	 	Guarantee.

	 	 	81	 
	Section 10.2.
	 	Limitation on Guarantor Liability.

	 	 	82	 
	Section 10.3.
	 	Execution and Delivery of Guarantee.

	 	 	82	 
	Section 10.4.
	 	Releases Following Sale of Assets or Capital Stock.

	 	 	83	 
	Section 10.5.
	 	Acknowledgment of Manufacturers’ Letter Agreements.

	 	 	84	 
	Section 10.6.
	 	Certain California Law Waivers.

	 	 	84	 
	Section 10.7.
	 	Guarantor May Consolidate, Etc. on Certain Terms.

	 	 	84	 
	 
	 	 
	 	 	 	 
	 	 	ARTICLE XI

MISCELLANEOUS
	 	 	 	 
	 
	 	 
	 	 	 	 
	Section 11.1.
	 	Trust Indenture Act Controls.

	 	 	85	 
	Section 11.2.
	 	Notices.

	 	 	85	 
	Section 11.3.
	 	Communication by Holders of Notes with Other Holders of Notes.

	 	 	86	 
	Section 11.4.
	 	Certificate and Opinion as to Conditions Precedent.

	 	 	86	 
	Section 11.5.
	 	Statements Required in Certificate or Opinion.

	 	 	87	 
	Section 11.6.
	 	Rules by Trustee and Agents.

	 	 	87	 
	Section 11.7.
	 	No Personal Liability of Directors, Officers, Employees and Stockholders.

	 	 	87	 
	Section 11.8.
	 	Governing Law.

	 	 	87	 
	Section 11.9.
	 	No Adverse Interpretation of Other Agreements.

	 	 	87	 
	Section 11.10.
	 	Successors.

	 	 	87	 
	Section 11.11.
	 	Severability.

	 	 	88	 
	Section 11.12.
	 	Counterpart Originals; Acceptance by Trustee.

	 	 	88	 
	Section 11.13.
	 	Table of Contents, Headings, etc.

	 	 	88	 

iv

 

EXHIBITS:

	 	 	 
	Exhibit A-1
	 	Form of Floating Rate Note

	Exhibit A-2
	 	Form of Fixed Rate Note

	Exhibit B
	 	Form of Certificate of Transfer

	Exhibit C
	 	Form of Certificate of Exchange

	Exhibit D
	 	Form of Certificate from Acquiring Institutional Accredited Investor

	Exhibit E
	 	Form of Guarantee

	Exhibit F
	 	Form of Supplemental Indenture

	Exhibit G-1
	 	Form of Affidavit of Out-of-State Execution

	Exhibit G-2
	 	Form of Affidavit of Out-of-State Receipt and Acceptance

v

 

CROSS-REFERENCE TABLE*

	 	 	 	 	 
	Trust Indenture Act Section	 	Indenture Section	 
	310 (a)(1)
	 	 	7.1	 
	(a)(2)
	 	 	7.1	 
	(a)(3)
	 	 	N.A.	 
	(a)(4)
	 	 	N.A.	 
	(a)(5)
	 	 	7.1	 
	(b)(i), (ii)
	 	 	7.1	 
	(c)
	 	 	N.A.	 
	311 (a)
	 	 	7.11	 
	(b)
	 	 	7.11	 
	(iii)(c)
	 	 	N.A.	 
	312 (a)
	 	 	2.5	 
	(b)
	 	 	11.3	 
	(c)
	 	 	11.3	 
	313 (a)
	 	 	7.6	 
	(b)(2)
	 	 	7.7	 
	(c)
	 	 	7.6; 11.2	 
	(d)
	 	 	7.6	 
	314 (a)
	 	 	4.3; 11.2	 
	(b)
	 	 	N.A.	 
	(c)(1)
	 	 	11.4	 
	(c)(2)
	 	 	11.4	 
	(c)(3)
	 	 	N.A.	 
	(d)
	 	 	N.A.	 
	(e)
	 	 	11.5	 
	(f)
	 	 	N.A.	 
	315 (a)
	 	 	7.1	 
	(b)
	 	 	7.5; 11.2	 
	(c)
	 	 	7.1	 
	(d)
	 	 	7.1	 
	(e)
	 	 	6.11	 
	316 (a)(last sentence)
	 	 	2.9	 
	(a)(1)(A)
	 	 	6.5	 
	(a)(1)(B)
	 	 	6.4	 
	(a)(2)
	 	 	N.A.	 
	(b)
	 	 	6.7	 
	(c)
	 	 	2.12	 
	317 (a)(1)
	 	 	6.8	 
	(a)(2)
	 	 	6.9	 
	(b)
	 	 	2.4	 
	318 (a)
	 	 	11.1	 
	(b)
	 	 	N.A.	 
	(c)
	 	 	11.1	 

N.A. means not applicable.

*This Cross-Reference Table is not part of this Indenture.

vi

 

          INDENTURE dated as of April 12, 2006 by and among AutoNation, Inc., a Delaware
corporation (the “Company”), as Issuer, each of the GUARANTORS NAMED HEREIN, as Guarantors
(the “Guarantors”) and WELLS FARGO BANK, N.A., a national banking association, as trustee
(the “Trustee”).

W I T N E S S E T H

          WHEREAS, the Company has duly authorized the creation of an issue of (i) $300,000,000
aggregate principal amount of Floating Rate Senior Notes due 2013 (the “Initial Floating Rate
Notes”) and (ii) $300,000,000 aggregate principal amount of 7% Senior Notes due 2014 (the
“Initial Fixed Rate Notes”);

          WHEREAS, concurrently with the issuance of Notes under this Indenture, the Company is (i)
offering to purchase up to 50,000,000 shares of its common stock, (ii) offering to purchase any and
all of its outstanding 9% Senior Notes due 2008, and (ii) entering into an amended credit
agreement; and

          WHEREAS the Company and each of the Guarantors has duly authorized the execution and delivery
of this Indenture.

          NOW, THEREFORE, the Company, each of the Guarantors and the Trustee agree as follows for the
benefit of each other and for the equal and ratable benefit of the Holders of the Notes.

ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE

     Section 1.1. Definitions.

          “Acquired Indebtedness” means Indebtedness of a Person (1) existing at the time such
Person becomes a Restricted Subsidiary or (2) 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, except for Indebtedness of a Person or any of its Subsidiaries that is repaid substantially
concurrently or in connection with the time such Person becomes a Restricted Subsidiary of the
Company or substantially concurrently or in connection with the time of the acquisition of assets
from such Person. Acquired Indebtedness shall be deemed to be incurred on the date of the related
acquisition of assets from any Person or the date the acquired Person becomes a Restricted
Subsidiary, as the case may be.

          “Additional Interest” means, all additional interest, if any, then owing pursuant to
Section 2(d) of the Registration Rights Agreement.

          “Affiliate” means, as to any Person, any other Person who, directly or indirectly,
through one or more intermediaries, controls, or is controlled by, or is under common control with,
the first referred to Person. The term “control” means the possession, directly or indirectly, of
the power to direct or cause the direction of the management and policies of a Person, whether
through the ownership of voting securities, by contract or otherwise.

          “Agent” means any Registrar, Paying Agent or co-registrar.

1

 

          “Applicable Premium” means, with respect to any Note on any redemption date prior to
April 15, 2008, in the case of Floating Rate Notes, and prior to April 15, 2009, in the case of
Fixed Rate Notes, the greater of:

(1) 1.0% of the principal amount of such Note; and

(2) the excess, if any, of (a) the present value at such redemption date of (i) the
redemption price of such Note at April 15, 2008 (with respect to any Floating Rate Note) or
April 15, 2009 (with respect to any Fixed Rate Note) (each such redemption price set forth
in the table in Section 3.7(e) or Section 3.7(f) hereof, as applicable), plus (ii) all
required interest payments due on such Note through April 15, 2008 (with respect to any
Floating Rate Note, assuming that the rate of interest on Floating Rate Notes for the period
from the redemption date through April 15, 2008 will be equal to the rate of interest on
Floating Rate Notes in effect on the date on which the applicable notice of redemption is
given) or April 15, 2009 (with respect to any Fixed Rate Note) (excluding accrued but unpaid
interest to the redemption date), computed using a discount rate equal to the Treasury Yield
as of such redemption date plus 50 basis points; over (b) the outstanding principal amount
of such Note.

          “Applicable Procedures” means, with respect to any transfer or exchange of or for
beneficial interests in any Global Note, the rules and procedures of the Depositary, Euroclear
and/or Clearstream that apply to such transfer or exchange.

          “Asset Sale” means any sale, issuance, conveyance, transfer (other than as security),
lease (other than operating leases entered into in the ordinary course of business) or other
disposition (including, without limitation, by way of merger, consolidation or sale and leaseback
transaction) (collectively, a “transfer”), directly or indirectly, in one or a series of related
transactions, of: (1) any Capital Stock of any Restricted Subsidiary (including by way of merger or
consolidation); (2) all or substantially all of the properties and assets of any division or line
of business of the Company or any Restricted Subsidiary; or (3) 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/or assets:

          (A) that is permitted by the provisions of Section 5.1,

          (B) that is by the Company to any Wholly Owned Restricted Subsidiary, or by any Restricted
Subsidiary to the Company or any Wholly Owned Restricted Subsidiary in accordance with the terms
of this Indenture,

          (C) that would be within the definition of a “Restricted Payment” under Section 4.7 and
would be permitted to be made as a Restricted Payment (and shall be deemed a Restricted Payment)
under Section 4.7,

          (D) that, in the reasonable determination of the Company, consist of obsolete or worn-out
property or property no longer used in the Company’s or any Restricted Subsidiary’s business in
the ordinary course of business,

          (E) that is a sale of receivables pursuant to documentation relating to Vehicle Receivables
Indebtedness incurred in the ordinary course of business,

2

 

          (F) as a result of governmental requirements or franchise and/or framework agreements,
which properties and/or assets were acquired by the Company after the Issue Date as part of a
larger acquisition of properties and/or assets that was permitted by this Indenture, or

          (G) the Fair Market Value of which in the aggregate does not exceed $25.0 million in any
transaction or series of related transactions.

          “Asset Swap” means the exchange by the Company or a Restricted Subsidiary of a portion
of its property, business or assets, in the ordinary course of business, for property, businesses
or assets which, or Capital Stock of a Person all or substantially all of whose assets, are a type
used in a Permitted Business, or a combination of any property, business or assets or Capital Stock
of such a Person and cash or Cash Equivalents.

          “Automobile Retailing Activities” means new and used vehicle retailing, wholesaling,
leasing, financing, servicing and related activities.

          “Average Life to Stated Maturity” means, as of the date of determination with respect
to any Indebtedness, the quotient obtained by dividing (1) 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 (2) the sum of all such principal payments.

          “Bankruptcy Law” means Title 11, United States Bankruptcy Code of 1978, 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 Designee” shall mean a designee of the Board of Directors of the Company
(including a committee of such Board of Directors) who shall be granted authority by the Board of
Directors pursuant to a board resolution to make certain determinations with respect to this
Indenture as specified herein.

          “Board of Directors” means, with respect to any Person, the board of directors of such
Person, or any duly authorized committee of such board.

          “Broker-Dealer” means any broker or dealer registered with the Commission under the
Exchange Act.

          “Business Day” means any day other than a Legal Holiday.

          “Capital Lease Obligation” of any Person means all monetary obligations of such Person
and its Restricted Subsidiaries on a Consolidated basis under any capital lease of (or other
agreement conveying the right to use) real or personal property which, in accordance with GAAP, is
required to be recorded as a capitalized lease obligation.

          “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, other equity
interests whether now outstanding or issued after the date of this Indenture, partnership interests
(whether general or limited), limited liability company interests, 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, the issuing Person,

3

 

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

          (1) any evidence of Indebtedness issued or directly and fully guaranteed or insured by the
United States or any agency or instrumentality thereof;

          (2) deposits, certificates of deposit or acceptances of any financial institution that is a
member of the Federal Reserve System and whose senior unsecured debt is rated at least “A-1” by
Standard & Poor’s or at least “P-1” by Moody’s;

          (3) commercial paper with a maturity of 365 days or less 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, any state thereof or the District of Columbia and rated at least “A-1”
by Standard & Poor’s and at least “P-1” by Moody’s;

          (4) repurchase agreements and reverse repurchase agreements relating to marketable direct
obligations issued or unconditionally guaranteed by the United States or issued by any agency
thereof and backed by the full faith and credit of the United States maturing within 365 days
from the date of acquisition;

          (5) tax-exempt money market mutual funds rated “AAAm” by Standard & Poor’s or “Aaa” by
Moody’s; and

          (6) money market funds which invest substantially all of their assets in securities
described in the preceding clauses (1) through (4).

          “Change of Control” means the occurrence of any of the following events:

          (1) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the
Exchange Act), other than Permitted Holders, is or becomes the “beneficial owner” (as defined in
Rules 13d-3 and 13d-5 under the Exchange Act, except that a Person shall be deemed to have
beneficial ownership of all shares that such Person has the right to acquire, whether such right
is exercisable immediately or only after the passage of time), directly or indirectly, of 50% or
more of the total outstanding Voting Stock of the Company;

          (2) during any period of two consecutive years, individuals who at the beginning of such
period constituted the board of directors of the Company (together with any new directors whose
election to such board or whose nomination for election by the stockholders of the Company was
approved by a vote of a majority of the directors then still in office who were either directors
at the beginning of such period or whose election or nomination for election was previously so
approved) cease for any reason to constitute a majority of such board of directors then in
office;

          (3) the Company consolidates with or merges with or into any Person (other than a Permitted
Holder), or any Person (other than a Permitted Holder) consolidates with or merges into or with
the Company, in any such event pursuant to a transaction in which the outstanding Voting Stock
of the Company is converted into or exchanged for cash, securities or other property, other than
any such transaction where the outstanding Voting Stock of the Company is converted into or
exchanged for Voting Stock of the surviving Person which is not Redeemable Capital Stock
representing a

4

 

majority of the voting power of all Voting Stock of such Surviving Person immediately after
giving effect to such issuance;

          (4) the sale, lease, transfer, conveyance or other disposition (other than by way of merger
or consolidation), in one or a series of related transactions, of all or substantially all of
the assets of the Company and its Restricted Subsidiaries taken as a whole to any “person” or
“group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act) other than a
Permitted Holder; or

          (5) the Company is liquidated or dissolved or adopts a plan of liquidation or dissolution
other than in a transaction which complies with the provisions of Section 5.1.

          “Clearstream” means Clearstream Banking, Société Anonyme.

          “Closing” means the original issuance of Notes on the date of this Indenture.

          “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.

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

          “Company” means AutoNation, 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.

          “Consolidated Fixed Charge Coverage Ratio” of any Person means, for any period, the
ratio of:

          (a) 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 Redeemable Capital Stock or cash dividends paid on any Preferred Stock that is not
Redeemable Capital Stock of such Person and its Restricted Subsidiaries during such period;

          in each case after giving pro forma effect without duplication to:

          (1) 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;

5

 

          (2) 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);

          (3) 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

          (4) 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, and 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

          (1) in 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 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 floating or fixed rate of
interest, shall be computed by applying at the option of such Person either the floating or
fixed rate and

          (2) 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
(determined in accordance with GAAP), on a Consolidated basis (including interest under any Vehicle
Inventory Indebtedness), excluding, to the extent otherwise included in interest expense in
accordance with GAAP for such period, any premium over stated principal paid in connection with the
repurchase and retirement of debt securities of such Person and its Restricted Subsidiaries, but
including, without limitation,

          (1) amortization of debt discount,

          (2) the net costs associated with Interest Rate Agreements and Currency Hedging
Agreements (including amortization of discounts),

          (3) the interest portion of any deferred payment obligation, and

6

 

          (4) all commissions, discounts and other fees and charges owed with respect to letters
of credit and bankers acceptance financing, plus

          (b)(1) the interest component of the Capital Lease Obligations (determined in accordance with
GAAP) of such Person and its Restricted Subsidiaries during such period and (2) all capitalized
interest of such Person and its Restricted Subsidiaries plus

          (c) for purposes of calculating the Consolidated Fixed Charge Coverage Ratio, the interest
expense determined in accordance with GAAP under any Guaranteed Debt of such Person and any
Restricted Subsidiary to the extent not included under clause (a) above, whether or not paid by
such Person or its Restricted Subsidiaries, excluding, to the extent otherwise included in interest
expense in accordance with GAAP for such period, any premium over stated principal paid in
connection with the repurchase and retirement of debt securities of such Person and its Restricted
Subsidiaries.

          “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,

          (1) all extraordinary gains or losses net of taxes (less all fees and expenses relating
thereto);

          (2) the portion of net income (or loss) of such Person and its Restricted 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;

          (3) 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;

          (4) any gain or loss, net of taxes, realized upon the termination of any employee pension
benefit plan;

          (5) 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;

          (6) 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;

          (7) any net gain arising from the acquisition of any securities or extinguishment, under
GAAP, of any Indebtedness of such Person;

          (8) any non-cash charges relating to employee benefit or management compensation plans of
the Company or any Restricted Subsidiary and any non-cash charges arising from any grant of
Capital Stock or any equity-based awards for the benefit of the members of the Board of
Directors of the Company or any Restricted Subsidiary or employees of the Company or any
Restricted Subsidiary;

7

 

          (9) any non-cash goodwill impairment charges; or

          (10) any net after-tax income or loss from discontinued operations and any net after-tax
gains or losses on the disposal of operations.

          “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 Restricted
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 Net Worth” of any Person means, at any time, for such Person
and its Restricted Subsidiaries on a Consolidated basis, an amount computed equal to (a) the
Consolidated stockholders’ equity of the Person and its Restricted Subsidiaries, minus (b) all
Intangible Assets of the Person and its Restricted Subsidiaries, in each case as of such time. For
the purposes hereof, “Intangible Assets” means intellectual property, goodwill and other intangible
assets, in each case determined in accordance with GAAP.

          “Consolidation” means, with respect to any Person, the consolidation of the accounts
of such Person and each of its Restricted Subsidiaries if and to the extent such accounts would
normally be consolidated with those of such Person, all in accordance with GAAP. The term
“Consolidated” shall have a similar meaning.

          “Corporate Trust Office” of the Trustee shall be at the address of the Trustee
specified in Section 11.2 or such other address as to which the Trustee may give notice to the
Company.

          “Credit Agreement” means the credit agreement providing for revolving credit
borrowings of up to $600.0 million (which may be increased to up to $800.0 million pursuant to a
commitment increase feature) and a term loan borrowing of $600.0 million, among the Company, as
borrower, JPMorgan Chase Bank, N.A., as administrative agent, the syndication agent and
documentation agents named therein, and the lenders party thereto from time to time, dated as of
July 14, 2005, as amended as of the Issue Date, as such agreement, in whole or in part, in one or
more instances, 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, supplements or
other modifications of the foregoing).

          “Credit Facilities” means one or more debt facilities or commercial paper facilities,
in each case with banks or other financial institutions or institutional lenders, or other Persons
which provide, originate or arrange debt or commercial paper facilities, providing for revolving
credit loans, term loans, receivables financing or letters of credit, including the Credit
Agreement, in each case in existence from time to time as such facilities, in whole or in part, in
one or more instances, 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,
supplements or other modifications of the foregoing).

          “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.

8

 

          “Custodian” means the Trustee, as custodian with respect to the Notes in global form,
or any successor entity thereto.

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

          “Definitive Note” means a certificated Note registered in the name of the Holder
thereof and issued in accordance with Section 2.2, in the form of Exhibit A-1 or
Exhibit A-2 hereto, as the case may be, except that such Note shall not bear the Global
Note Legend and shall not have the “Schedule of Exchanges of Interests in the Global Note” attached
thereto.

          “Depositary” means The Depository Trust Company, its nominees and successors.

          “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, may not exceed the greater of (x) $100.0 million in the aggregate or (y)
5.0% of the Company’s Consolidated Tangible Net Worth over the term of the Notes, at the time of
the receipt of the Designated Noncash Consideration (with the Fair Market Value being measured at
the time received and without giving effect to subsequent changes in value).

          “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.

          “Eligible Special Purpose Entity” means any Person which is or is not a Subsidiary of
the Company which has been formed by or for the benefit of the Company or any Subsidiary for the
purpose of (i) financing or refinancing, leasing, selling or securitizing Vehicles or related
receivables and which finances, refinances or securitizes Vehicles or related receivables of,
leases Vehicles to or purchases Vehicles or related receivables from the Company or any Subsidiary;
or (ii) financing or refinancing consumer receivables, leases, loans or retail installment
contracts.

          “Euroclear” means Euroclear Bank S.A./N.V.

          “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 Notes” means the Notes issued in the Exchange Offer pursuant to Section
2.6(f) or, with respect to Notes containing a Private Placement Legend issued under this Indenture
subsequent to the date of this Indenture pursuant to Section 2.2, the exchange offer contemplated
by the registration rights agreement relating thereto substantially similar to the Registration
Rights Agreement.

          “Exchange Offer” has the meaning set forth in the Registration Rights Agreement.

          “Exchange Offer Registration Statement” has the meaning set forth in 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

9

 

under no compulsion to sell and an informed and willing buyer under no compulsion to buy. Fair
Market Value shall be determined by either (a) the Board of Directors of the Company acting in good
faith and shall be evidenced by a board resolution or (b) the Board Designee and evidenced by a
certificate (or committee resolution, as the case may be), in each case whose determination shall
be conclusive.

          “Fixed Rate Notes” means the Initial Fixed Rate Notes and any Subsequent Series Fixed
Rate Notes.

          “Floating Rate Notes” means the Initial Floating Rate Notes and any Subsequent Series
Floating Rate Notes.

          “Generally Accepted Accounting Principles” or “GAAP” means generally accepted
accounting principles and interpretations thereof in the United States, consistently applied, which
are in effect at the time of the relevant calculation.

          “Global Note Legend” means the legend set forth in Section 2.6(g)(ii) which is
required to be placed on all Global Notes issued under this Indenture.

          “Global Notes” means, individually and collectively, each certificated Note registered
in the name of the Depositary and issued in accordance with Section 2.1, 2.6(b)(iv), 2.6(d)(ii) or
2.6(f), in the form of Exhibit A-1 or Exhibit A-2 hereto, as the case may be, and
bearing the Global Note Legend and having the “Schedule of Exchanges of Interests in the Global
Note” attached thereto.

          “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 (1) to pay or purchase such Indebtedness or to advance or supply funds for the payment
or purchase of such Indebtedness, (2) to purchase, sell or lease (as lessee or lessor) property, or
to purchase or 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, (3) 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), (4) 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 (5) 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 (a) each of the Subsidiaries that guarantees the Notes on the Issue
Date and each Person that Guarantees the Notes after the Issue Date whether as required after the
date of this Indenture pursuant to Section 4.12 or Section 4.16 or otherwise, in each case 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 Note is registered.

          “Indebtedness” means, with respect to any Person, without duplication, (1) 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

10

 

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, (2) all obligations of such Person evidenced by
bonds, notes, debentures or other similar instruments, (3) 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, (4) all obligations under Interest Rate
Agreements, Currency Hedging Agreements or Commodity Price Protection Agreements of such Person,
(5) all Capital Lease Obligations of such Person, (6) all Indebtedness referred to in clauses (1)
through (5) 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, (7) all Guaranteed Debt of such
Person, (8) 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, (9)
Preferred Stock of any Restricted Subsidiary of the Company, and (10) any amendment, supplement,
modification, deferral, renewal, extension, refunding or refinancing of any liability of the types
referred to in paragraphs (1) through (9) 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 Indenture, as amended or supplemented from time to time.

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

          “Indirect Participant” means a Person who holds a beneficial interest in a Global Note
through a Participant.

          “Initial Fixed Rate Notes” as defined in the recitals hereto.

          “Initial Floating Rate Notes” as defined in the recitals hereto.

          “Initial Notes” means the Initial Floating Rate Notes and the Initial Fixed Rate
Notes.

          “Institutional Accredited Investor” means an institution that is an “accredited
investor” as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act.

          “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.

11

 

          “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), 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.

          “Investment Grade” means, with respect to the Notes, a credit rating of at least Baa3
(or the equivalent) by Moody’s or a rating of at least BBB- (or the equivalent) by Standard &
Poor’s.

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

          “Legal Holiday” means a Saturday, a Sunday or a day on which banking institutions in
The City of New York are authorized by law, regulation or executive order to remain closed. If a
payment date is a Legal Holiday at a place of payment, payment may be made at that place on the
next succeeding day that is not a Legal Holiday, and no interest shall accrue on such payment for
the intervening period.

          “Letter of Transmittal” means the letter of transmittal to be prepared by the Company
and sent to all Holders of the Notes for use by such Holders in connection with the Exchange Offer.

          “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.

          “Manufacturers’ Letter Agreements” means each of the following: (i) that certain
letter dated January 30, 2006 to Mr. Kevin Flynn of Toyota Motor Sales USA, which was confirmed and
agreed by Ms. Nancy Davies on behalf of Toyota Motor Sales, U.S.A., Inc., (ii) that certain letter
dated January 30, 2006 to Ms. Olga Reisler of Nissan North America, Inc., which was confirmed and
agreed by Ms. Reisler on behalf of Nissan North America, Inc., (iii) that certain letter dated
January 30, 2006 to Mr. Alex Larkin of Kia Motors America, Inc., which was confirmed and agreed by
Mr. Larkin on behalf of Kia Motors America, Inc., (iv) that certain letter dated January 30, 2006
to Ms. Jennifer Moneagle of Ford Motor Company, which was confirmed and agreed by R. Erik Peterson
on behalf of Ford Motor Company and (v) that certain letter dated February 23, 2006 to Ms. Donna
Parlapiano, Vice President, Regional Operations & Industry Relations, of the Company, from BMW of
North America, LLC.

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

          “Moody’s” means Moody’s Investors Service, Inc. and its successors.

12

 

          “Mortgage Facilities” means one or more debt facilities in each case with banks,
manufacturers and/or other entities providing for borrowings secured primarily by real property in
each case as amended, restated, modified, renewed, refunded, replaced or refinanced in whole or in
part from time to time; provided, that the value of the security securing such debt facilities
shall not, at the time such debt facilities are entered into, exceed 100% of the aggregate
principal amount of the Indebtedness in respect of such debt facilities.

          “Net Cash Proceeds” means

          (a) with respect to any Asset Sale by any Person, the aggregate cash proceeds received by the
Company or any of its Restricted Subsidiaries (including, without limitation, any cash received
upon the sale or other disposition of any non-cash consideration received in any Asset Sale), net
of (1) brokerage commissions and other reasonable fees and expenses (including fees and expenses of
counsel and investment bankers) related to such Asset Sale, (2) provisions for all taxes payable as
a result of such Asset Sale, (3) payments made to retire Indebtedness where such Indebtedness is
secured by the assets or properties that are the subject of such Asset Sale, (4) 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 (5) 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 has been converted into or
exchanged for Capital Stock as referred to under Section 4.7, the proceeds of such issuance or sale
in the form of cash or Cash Equivalents 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
Cash Equivalents (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, 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.

          “Net Proceeds” means, 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 has
been converted into or exchanged for Capital Stock as referred to in Section 4.7, the proceeds of
such issuance or sale in the form of cash or Cash Equivalents or other property or assets (with the
value of such property or assets to be equal to the Fair Market Value thereof), net of attorney’s
fees, accountant’s fees and brokerage, consultation, 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 who is not a U.S. Person.

          “Notes” means, collectively, the Initial Floating Rate Notes (including any Exchange
Notes issued in exchange therefor) and the Initial Fixed Rate Notes (including any Exchange Notes
issued in exchange therefor) and more particularly means any Notes authenticated and delivered
under this Indenture. For all purposes of this Indenture, the term “Notes” shall also include any
Subsequent Series Floating Rate Notes and any Subsequent Series Fixed Rate Notes that may be issued
under a supplemental indenture hereto. Initial Floating Rate Notes (including any Exchange Notes
issued in exchange therefor) and Initial Fixed Rate Notes (including any Exchange Notes issued in
exchange

13

 

therefor) are separate series of Notes, but shall be treated as a single class for all
purposes under this Indenture, except as set forth herein. For purposes of this Indenture, all
references to Notes to be issued or authenticated upon transfer, replacement or exchange shall be
deemed to refer to Notes of the applicable series.

          “Officer” means, with respect to any Person, the Chairman of the Board, the Chief
Executive Officer, the President, any Executive or Senior Vice President, the Chief Operating
Officer, the Chief Financial Officer, the Treasurer, any Assistant Treasurer, the Controller, the
Secretary or any Vice President of such Person.

          “Officers’ Certificate” means a certificate signed on behalf of the Company by two
Officers of the Company, one of whom must be the Chief Executive Officer, the Chief Financial
Officer or the principal accounting officer of the Company, that meets the requirements of Section
11.5.

          “144A Global Note” means a global note in the form of Exhibit A-1 or
Exhibit A-2 hereto, as the case may be, bearing the Global Note Legend and the Private
Placement Legend and deposited with or on behalf of, and registered in the name of, the Depositary
or its nominee that will be issued in a denomination equal to the outstanding principal amount of
the Notes sold in reliance on Rule 144A.

          “Opinion of Counsel” means an opinion from legal counsel that meets the requirements
of Section 11.5. The counsel may be an employee of or counsel to the Company, any Subsidiary of the
Company or the Trustee.

          “Pari Passu Indebtedness” means (a) any Indebtedness of the Company that is equal in
right of payment to the Notes and (b) with respect to any Guarantee, Indebtedness of a Guarantor
which ranks equal in right of payment to such Guarantor’s Guarantee.

          “Participant” means, with respect to the Depositary, Euroclear or Clearstream, a
Person who has an account with the Depositary, Euroclear or Clearstream, respectively (and, with
respect to The Depository Trust Company, shall include Euroclear and Clearstream).

          “Permitted Business” means the lines of business conducted by the Company and its
Restricted Subsidiaries on the Issue Date and businesses reasonably related, complementary or
ancillary thereto, including reasonably related extensions or expansions thereof.

          “Permitted Holder” means ESL Investments, Inc. and any Person controlled by, or under
common control with, ESL Investments, Inc.

          “Permitted Investment” means

          (1) Investments in any Guarantor or any Wholly Owned Restricted Subsidiary that is not a
Guarantor or any Person that, as a result of or in connection with such Investment, (a) becomes
a Guarantor or a Wholly Owned Restricted Subsidiary that is not a Guarantor 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 Guarantor or any Wholly Owned Restricted Subsidiary that is
not a Guarantor;

          (2) Indebtedness of the Company or a Restricted Subsidiary described under clauses (4),
(5), (6) and (7) of the definition of “Permitted Indebtedness”;

          (3) Investments in any of the Notes or the Guarantees;

14

 

          (4) Cash Equivalents;

          (5) Investments acquired by the Company or any Restricted Subsidiary in connection with an
Asset Sale permitted under Section 4.10 to the extent such Investments are non-cash proceeds as
permitted under such covenant or to the extent such Investments are guarantees of a purchaser’s
continuing obligations pursuant to the assets sold;

          (6) Investments in existence on the Issue Date and any amendment, modification, extension,
renewal or replacement of any such Investments to the extent that such amendment, modification,
extension, renewal or replacement does not cause an increase of the underlying amount of such
Investments;

          (7) any Investment to the extent the consideration therefor consists of Qualified Capital
Stock of the Company;

          (8) Investments representing Capital Stock or obligations issued to the Company or any
Restricted Subsidiary in the 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;

          (9) 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 $2.5 million in
the aggregate at any one time outstanding;

          (10) accounts receivable arising and trade credit granted in the ordinary course of
business and any securities received in satisfaction or partial satisfaction thereof in
connection with accounts of financially troubled Persons to the extent reasonably necessary in
order to prevent or limit loss;

          (11) any security or debt instrument retained by the Company or any Subsidiary in
connection with the creation of Vehicle Receivables Indebtedness or Vehicle Inventory
Indebtedness which security or debt instrument represents a residual interest in assets sold or
transferred to an Eligible Special Purpose Entity;

          (12) consumer loans and leases entered into, purchased or otherwise acquired by the Company
or its Subsidiaries, as lender, lessor or assignee, as applicable, related to Automobile
Retailing Activities;

          (13) Investments constituting the purchase of Capital Stock of a Restricted Subsidiary by
the Company or another Restricted Subsidiary;

          (14) deposits, including interest-bearing deposits, maintained in the ordinary course of
business with floorplan lenders;

          (15) Investments deemed to have been made as a result of the acquisition of a Person that
at the time of such acquisition held instruments constituting Investments that were not acquired
in contemplation of the acquisition of such Person;

          (16) Investments to the extent acquired in exchange for the issuance of shares of the
Company’s Qualified Capital Stock;

15

 

          (17) Investments made by any deferred compensation plan of the Company or any Restricted
Subsidiary; and

          (18) in addition to the Investments described in clauses (1) through (17) above,
Investments in an amount not to exceed in the aggregate at any one time outstanding the greater
of $75.0 million or 5.0% of Consolidated Tangible Net Worth.

          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
either (a) the Board of Directors of the Company and evidenced by a board resolution or (b) the
Board Designee and evidenced by a certificate (or committee resolution, as the case may be), in
each case whose determination shall be conclusive) at the time of Investment.

          “Permitted Liens” means:

          (a) any Lien existing as of the Issue Date;

          (b) any Lien arising by reason of (1) any judgment, decree or order of any court, so long
as such Lien is adequately bonded and any appropriate legal proceedings which may have been duly
initiated for the review of such judgment, decree or order shall not have been finally
terminated or the period within which such proceedings may be initiated shall not have expired;
(2) taxes, governmental assessments or similar governmental charges or levies not yet delinquent
or which are being contested in good faith; (3) security for payment of workers’ compensation,
unemployment insurance and other governmental insurance or benefits and/or other insurance
arrangements; (4) good faith deposits in connection with bids, tenders, statutory obligations,
leases, contracts (other than contracts for the payment of money); (5) zoning restrictions,
easements, licenses, reservations, title defects, rights of others for rights of way, utilities,
sewers, electric lines, telephone or telegraph lines, and other similar purposes, provisions,
covenants, conditions, waivers, restrictions on the use of property or minor irregularities of
title (and with respect to leasehold interests, mortgages, obligations, liens and other
encumbrances incurred, created, assumed or permitted to exist and arising by, through or under a
landlord or owner of the leased property, with or without consent of the lessee), none of which
materially impairs the use of any parcel of property material to the operation of the business
of the Company or any Subsidiary or the value of such property for the purpose of such business;
(6) deposits to secure public or statutory obligations, or in lieu of surety or appeal bonds; or
(7) operation of law in favor of mechanics, carriers, warehousemen, landlords, materialmen,
laborers, employees or suppliers, incurred in the ordinary course of business for sums which are
not yet delinquent or are being contested in good faith by negotiations or by appropriate
proceedings which suspend the collection thereof;

          (c) any Lien securing Acquired Indebtedness created prior to (and not created in connection
with, or in contemplation of) the incurrence of such Indebtedness by the Company or any
Restricted Subsidiary; provided that the Lien shall attach only to the assets of the related
acquired entity and its Restricted Subsidiaries and not assets of the Company and its Restricted
Subsidiaries generally;

          (d) any Lien to secure the performance bids, trade contracts, leases (including, without
limitation, statutory and common law landlord’s liens), statutory obligations, surety and appeal
bonds, letters of credit and other obligations of a like nature and incurred in the ordinary
course of business of the Company or any Subsidiary;

16

 

          (e) any Lien securing Indebtedness permitted to be incurred under Interest Rate Agreements,
Currency Hedging Agreements or Commodity Price Protection Agreements or otherwise incurred to
hedge interest rate risk or currency or commodity pricing risk;

          (f) any Lien securing Capital Lease Obligations or Purchase Money Obligations in existence
as of the Issue Date and/or incurred in accordance with this Indenture (including clause (8) of
the definition of “Permitted Indebtedness”) and which are incurred or assumed solely in
connection with the acquisition, development or construction of real or personal, movable or
immovable property within 180 days of such incurrence or assumption; provided that such Liens
only extend to such acquired, developed or constructed property, such Liens secure Indebtedness
in an amount not in excess of the original purchase price or the original cost of any such
assets or repair, addition or improvement thereto, and the incurrence of such Indebtedness is
permitted by Section 4.9;

          (g) any Lien securing any Vehicle Inventory Indebtedness and/or Vehicle Receivables
Indebtedness;

          (h) Liens securing Indebtedness under Mortgage Facilities permitted to be incurred pursuant
to clause (13) of the definition of “Permitted Indebtedness”;

          (i) other Liens securing Indebtedness in an aggregate amount not to exceed the greater of
(x) $400.0 million and (y) 15% of the Company’s Consolidated Tangible Net Worth; and

          (j) any extension, renewal, refinancing or replacement, in whole or in part, of any Lien
described in the foregoing clauses (a) through (i) so long as no additional collateral is
granted as security thereby.

          “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.

          “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.

          “Private Placement Legend” means the legend set forth in Section 2.6(g)(i) to be
placed on all Notes issued under this Indenture except where otherwise permitted by the provisions
of this Indenture.

          “pro forma” means, with respect to any calculation made or required to be made
pursuant to the terms of the notes, a calculation made in accordance with Article 11 of Regulation
S-X promulgated under the Securities Act.

          “Public Equity Offering” means an underwritten public offering of common stock (other
than Redeemable Capital Stock) of the Company with gross cash proceeds to the Company of at least
$50.0 million pursuant to a registration statement that has been declared effective by the
Commission pursuant to the Securities Act (other than a registration statement on Form S-4 (or any
successor form covering substantially the same transactions), Form S-8 (or any successor form
covering substantially the same transactions) or otherwise relating to equity securities issuable
under any employee benefit plan of the Company).

17

 

          “Purchase Money Obligations” means any Indebtedness secured by a Lien on assets
(including real property) related to the business of the Company and the Restricted Subsidiaries
and any additions and accessions thereto, which are purchased (including in connection with the
acquisition of a business by means of stock purchase, merger or otherwise) or developed by the
Company or a Restricted Subsidiary at any time after the Notes are issued; provided that

          (1) 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 180 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 or accessions thereto or any proceeds therefrom;

          (2) at no time shall the aggregate principal amount of the 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

          (3) 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 to the
Company or a Restricted Subsidiary of the assets subject thereto.

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

          “QIB” means a “qualified institutional buyer” as defined in Rule 144A.

          “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 or otherwise, 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 Notes 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 the Holders of the Notes would have similar rights),
or is convertible into or exchangeable for debt securities at any time prior to such final Stated
Maturity at the option of the Holder thereof.

          “Registration Rights Agreement” means the Registration Rights Agreement, dated as of
the date of this Indenture, by and among the Company, the Guarantors and the other parties named on
the signature pages thereof, as such agreement may be amended, modified or supplemented from time
to time, and, with respect to Subsequent Series Notes issued under this Indenture pursuant to
Section 2.2, the registration rights agreement relating thereto substantially identical to the
Registration Rights Agreement.

          “Regulation S” means Regulation S promulgated under the Securities Act.

          “Regulation S Global Note” means a Global Note in the form of Exhibit A-1 or
Exhibit A-2 hereto, as the case may be, bearing the Global Note Legend and the Private
Placement Legend and deposited with or on behalf of and registered in the name of the Depositary or
its nominee, issued in a denomination equal to the outstanding principal amount of the Notes of the
applicable series sold in reliance upon Regulation S.

          “Responsible Officer,” when used with respect to the Trustee, means any officer within
the corporate trust services department of the Trustee (or any successor group of the Trustee) or
any other officer of the Trustee customarily performing functions similar to those performed by any
of the above

18

 

designated officers and also means, with respect to a particular corporate trust matter, any
other officer to whom such matter is referred because of his knowledge of and familiarity with the
particular subject.

          “Restricted Definitive Note” means a Definitive Note bearing the Private Placement
Legend.

          “Restricted Global Note” means a Global Note bearing the Private Placement Legend.

          “Restricted Period” means the 40-day restricted period as defined in Regulation S.

          “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 the covenant set forth in Section
4.13.

          “Rule 144” means Rule 144 promulgated under the Securities Act.

          “Rule 144A” means Rule 144A promulgated under the Securities Act.

          “Rule 903” means Rule 903 promulgated under the Securities Act.

          “Rule 904” means Rule 904 promulgated the Securities Act.

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

          “Shelf Registration Statement” means the Shelf Registration Statement as defined in
the Registration Rights Agreement.

          “Significant Restricted Subsidiary” means, at any date of determination, any
Restricted Subsidiary that represents 10% or more of the Company’s total consolidated assets at the
end of the most recent fiscal quarter for which financial information is available or 10% or more
of the Company’s consolidated net revenue or consolidated operating income for the most recent four
quarters for which financial information is available.

          “Standard & Poor’s” means Standard & Poor’s, a division of McGraw Hill, Inc., and its
successors.

          “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.

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

          “Subsequent Series Fixed Rate Notes” means subsequent Fixed Rate Notes (other than the
Initial Fixed Rate Notes and other than Exchange Notes issued in exchange for such Fixed Rate
Notes) issued from time to time under this Indenture in accordance with Sections 2.2 and 4.9
hereof.

          “Subsequent Series Floating Rate Notes” means subsequent Floating Rate Notes (other
than the Initial Floating Rate Notes and other than Exchange Notes issued in exchange for such
Floating Rate Notes) issued from time to time under this Indenture in accordance with Sections 2.2
and 4.9 hereof.

19

 

          “Subsequent Series Notes” means Subsequent Series Fixed Rate Notes and Subsequent
Series Floating Rate Notes.

          “Subsidiary” of a Person means (1) 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 (2) any limited partnership of which such Person or any Subsidiary of such
Person is a general partner, or (3) 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, have more than 50% of the outstanding partnership or similar interests or have the
power, by contract or otherwise, to direct or cause the direction of the policies, management and
affairs thereof.

          “Treasury Yield” 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 (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 April 15, 2008 (in the case of Floating Rate Notes)
or April 15, 2009 (in the case of Fixed Rate Notes); provided, however, that if the period from the
redemption date to April 15, 2008 (in the case of Floating Rate Notes) or April 15, 2009 (in the
case of Fixed Rate Notes) 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.

          “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended, or any
successor statute, and rules and regulations promulgated by the Commission thereunder.

          “Trustee” means the party named as such above until a successor replaces it in
accordance with the applicable provisions of this Indenture and thereafter means the successor
serving hereunder.

          “Unrestricted Global Note” means a permanent Global Note representing a series of
Notes that do not and are not required to bear the Private Placement Legend.

          “Unrestricted Definitive Notes” means one or more Definitive Notes that do not bear
and are not required to bear the Private Placement Legend.

          “Unrestricted Notes” means one or more Unrestricted Global Notes and/or Unrestricted
Definitive Notes, including, without limitation, the Exchange Notes.

          “Unrestricted Subsidiary” means any Subsidiary of the Company designated as such
pursuant to and in compliance with the covenant set forth in Section 4.13.

          “Unrestricted Subsidiary Indebtedness” of any Unrestricted Subsidiary means
Indebtedness of such Unrestricted Subsidiary (1) as to which neither the Company nor any Restricted
Subsidiary is directly or indirectly liable (by virtue of the Company or any such Restricted
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 (2) which, upon the occurrence of a default with respect
thereto, does not result in, or

20

 

permit any holder of any Indebtedness of the Company or any Restricted Subsidiary to declare,
a default on such Indebtedness of the Company or any Restricted 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 Notes.

          “U.S. Government Obligations” means securities that are (a) direct obligations of the
United States of America for the timely payment of which its full faith and credit is pledged or
(b) 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 depository
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
depository 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 depository 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 depository receipt.

          “U.S. Person” means a U.S. person as defined in Rule 902(o) under the Securities Act.

          “Vehicle Inventory Indebtedness” means Indebtedness (including pursuant to a
commercial paper program) incurred by the Company, any Restricted Subsidiary or any Eligible
Special Purpose Entity to purchase, lease, finance or refinance or guaranty the purchasing,
leasing, financing or refinancing of Vehicles in the ordinary course of business of the Company and
its Restricted Subsidiaries or related receivables, which Indebtedness (x) is secured by the
Vehicles or related receivables so financed, to the extent, at any date of determination thereof,
the amount of such Indebtedness does not exceed the depreciated book value of such Vehicles or the
book value of such related receivables as determined in accordance with GAAP applied on a
consistent basis or (y) is unsecured and provides for a borrowing base which may not exceed 85% of
the value of such Vehicles.

          “Vehicle Receivables Indebtedness” means Indebtedness (including pursuant to a
commercial paper program) incurred by any Eligible Special Purpose Entity to finance, refinance or
guaranty the financing or refinancing of consumer receivables, leases, loans or retail installment
contracts incurred in the sale, transfer or lease of Vehicles; provided (x) such Indebtedness shall
in accordance with GAAP not appear as an asset or liability on the balance sheet of the Company or
any of its Restricted Subsidiaries; (y) no assets other than the Vehicles, consumer receivables,
leases, loans, retail installment contracts or related proceeds (including, without limitation,
proceeds from insurance, Vehicles and other obligations under such receivables, leases, loans or
retail installment contracts) to be financed or refinanced secure such Indebtedness; and (z)
neither the Company nor any of its Restricted Subsidiaries (other than such Eligible Special
Purpose Entity) shall incur any liability with respect to such Indebtedness other than liability
arising by reason of (1) a breach of a representation or warranty or customary indemnities, in each
case contained in any instrument relating to such Indebtedness or (2) customary interests retained
by the Company and/or its Restricted Subsidiaries in such assets or Indebtedness.

          “Vehicles” means all now existing or hereafter acquired new and used automobiles,
sport utility vehicles, trucks and vans of all types and descriptions, whether held for sale,
lease, rental or operational purposes, which relate to the Company’s or any Restricted Subsidiary’s
Automobile Retailing Activities.

21

 

          “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, managers or trustees 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 (other than directors’ qualifying shares) of which is owned by the Company or another Wholly
Owned Restricted Subsidiary.

     Section 1.2. Other Definitions.

	 	 	 	 	 
	Term Defined	 	in Section	 
	“Authentication Order”
	 	 	2.2	 
	“Calculation Agent”
	 	 	2.3	 
	“Change of Control Offer”
	 	 	4.15	 
	“Change of Control Payment”
	 	 	4.15	 
	“Change of Control Purchase Price”
	 	 	4.15	 
	“Change of Control Purchase Date”.
	 	 	4.15	 
	“Covenant Defeasance”
	 	 	8.3	 
	“Defeasance”
	 	 	8.2	 
	“Designation Amounts”
	 	 	4.13	 
	“DTC”
	 	 	2.3	 
	“Event of Default”
	 	 	6.1	 
	“Excess Proceeds Offer”
	 	 	4.10	 
	“Excess Proceeds Offer Date”
	 	 	4.10	 
	“Excess Proceeds Payment”
	 	 	4.10	 
	“Excess Proceeds Payment Date”
	 	 	4.10	 
	“Excess Proceeds Price”
	 	 	4.10	 
	“Guarantor Surviving Entity”
	 	 	10.7	 
	“incur”
	 	 	4.9	 
	“Note Amount”
	 	 	4.10	 
	“Pari Passu Offer”
	 	 	4.10	 
	“Pari Passu Debt Amount”
	 	 	4.10	 
	“Paying Agent”
	 	 	2.3	 
	“Permitted Indebtedness”
	 	 	4.9	 
	“Permitted Payment”
	 	 	4.7	 
	“Registrar”
	 	 	2.3	 
	“Required Filing Date”
	 	 	4.3	 
	“Restricted Payments”
	 	 	4.7	 
	“Revocation”
	 	 	4.3	 
	“Surviving Entity”
	 	 	5.1	 

     Section 1.3. Terms of TIA.

          Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by
reference in and made a part of this Indenture.

          The following TIA terms used in this Indenture have the following meanings:

          “indenture securities” means the Notes;

22

 

          “indenture security holder” means a Holder of a Note;

          “indenture to be qualified” means this Indenture;

          “indenture trustee” or “institutional trustee” means the Trustee; and

          “obligor” on the Notes and the Guarantees means the Company and the Guarantors,
respectively, and any successor obligor upon the Notes and the Guarantees,
respectively.

          All other terms used in this Indenture that are defined by the TIA, defined by TIA reference
to another statute or defined by Commission rule under the TIA have the meanings so assigned to
them.

     Section 1.4. Rules of Construction.

          Unless the context otherwise requires: (i) a term has the meaning assigned to it; (ii) an
accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP; (iii)
“or” is not exclusive; (iv) words in the singular include the plural, and in the plural include the
singular; (v) provisions apply to successive events and transactions; (vi) references to sections
of or rules under the Securities Act shall be deemed to include substitute, replacement of
successor sections or rules adopted by the Commission from time to time; and (vii) unless the
context otherwise requires, any reference to an “Article,” a “Section” or an “Exhibit” refers to an
Article, a Section or an Exhibit, as the case may be, of this Indenture.

ARTICLE II

THE NOTES

     Section 2.1. Form and Dating.

          (a) General. The Notes and the Trustee’s certificate of authentication shall be
substantially in the form of Exhibit A-1 (in the case of Floating Rate Notes) and
Exhibit A-2 (in the case of Fixed Rate Notes) hereto. The Notes may have notations, legends
or endorsements required by law, stock exchange rules or usage. Each Note shall be dated the date
of its authentication. The Notes shall be in denominations of $1,000 and integral multiples
thereof. Each Note shall have an executed Guarantee from each of the Guarantors endorsed thereon
substantially in the form of Exhibit E hereto.

          The terms and provisions contained in the Notes shall constitute, and are hereby expressly
made, a part of this Indenture, and the Company, the Guarantors and the Trustee, by their execution
and delivery of this Indenture, expressly agree to such terms and provisions and to be bound
thereby. However, to the extent any provision of any Note conflicts with the express provisions of
this Indenture, the provisions of this Indenture shall govern and be controlling.

          (b) Global Notes. Notes issued in global form shall be substantially in the form of
Exhibit A-1 or Exhibit A-2 hereto and shall include the Global Note Legend thereon
and the “Schedule of Exchanges of Interests in the Global Note” thereto. Notes issued in definitive
form shall be substantially in the form of Exhibit A-1 or Exhibit A-2 hereto, but,
in each case, without the Global Note Legend thereon and without the “Schedule of Exchanges of
Interests in the Global Note” attached thereto. Each Global Note shall represent such of the
outstanding Notes as shall be specified in the “Schedule of Exchanges of Interests in the Global
Note” therein and each shall provide that it shall represent the

23

 

aggregate principal amount of outstanding Notes from time to time endorsed thereon and that
the aggregate principal amount of outstanding Notes represented thereby may from time to time be
reduced or increased, as appropriate, to reflect exchanges and redemptions. Any endorsement of a
Global Note to reflect the amount of any increase or decrease in the aggregate principal amount of
outstanding Notes represented thereby shall be made by the Trustee or the Custodian, at the
direction of the Trustee, in accordance with written instructions given by the Holder thereof as
required by Section 2.6 hereof.

          (c) Euroclear and Clearstream Procedures Applicable. The provisions of the “Operating
Procedures of the Euroclear System” and “Terms and Conditions Governing Use of Euroclear” and the
“General Terms and Conditions of Clearstream Banking” and “Customer Handbook” of Clearstream shall
be applicable to transfers of beneficial interests in the Regulation S Global Note held by
Participants through Euroclear or Clearstream.

     Section 2.2. Execution and Authentication.

          An Officer shall sign the Notes for the Company by manual or facsimile signature. If an
Officer whose signature is on a Note no longer holds that office at the time a Note is
authenticated, the Note shall nevertheless be valid.

          A Note shall not be valid or obligatory until authenticated by the manual signature of the
Trustee. The signature shall be conclusive evidence that the Note has been authenticated under this
Indenture.

          The Trustee shall, upon a written order of the Company signed by an Officer (an
“Authentication Order”), authenticate (a) the Initial Floating Rate Notes, (b) the Initial
Fixed Rate Notes. In addition, at any time, from time to time, the Trustee shall upon an
Authentication Order authenticate the Exchange Notes and any Subsequent Series Notes (subject to
compliance with Section 4.9). All Notes issued on the Issue Date and all Subsequent Series Notes
shall be identical in all respects other than issue dates, the date from which interest accrues and
any changes relating thereto. Each such Authentication Order shall specify the aggregate principal
amount of Notes to be authenticated, whether the Notes are to be Initial Notes, Exchange Notes or
Subsequent Series Notes and whether the Notes are to be issued as Definitive Notes or Global Notes
or such other information as the Trustee shall reasonably request.

          In the event that the Company shall issue and the Trustee shall authenticate any Subsequent
Series Notes pursuant to this Section 2.2, the Company shall use its reasonable best efforts to
obtain the same “CUSIP” number for such Subsequent Series Notes as is printed on the Notes
outstanding at such time; provided, however, that if any Subsequent Series Notes are determined not
to be fungible with the Notes outstanding at such time for U.S. federal income tax or U.S. federal
securities law purposes, the Company may obtain a “CUSIP” number for such Notes that is different
than the “CUSIP” number printed on the Subsequent Series Notes then outstanding. Notwithstanding
the foregoing, Notes of each series issued and outstanding under this Indenture affected by a
modification or amendment shall vote and consent together on such modification or amendment as one
class.

          The Trustee may appoint an authenticating agent acceptable to the Company to authenticate
Notes. An authenticating agent may authenticate Notes whenever the Trustee may not be
geographically able to 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 an Agent to
deal with Holders or an Affiliate of the Company.

24

 

     Section 2.3. Registrar, Paying Agent and Calculation Agent.

          The Company shall maintain an office or agency where Notes may be presented for registration
of transfer or for exchange (“Registrar”), an office or agency where Notes may be presented
for payment (“Paying Agent”) and an office or agency where notices and demands to or upon
the Company in respect of the Notes, the Guarantees and this Indenture may be served. In addition,
the Company shall appoint and maintain at all times a Calculation Agent for purposes of the
Floating Rate Notes (the “Calculation Agent”). The Registrar shall keep a register of the
Notes and of their transfer and exchange. The Company may appoint one or more co-registrars and one
or more additional paying agents. The term “Registrar” includes any co-registrar and the term
“Paying Agent” includes any additional paying agent. The Company may change any Paying Agent,
Registrar or Calculation Agent without notice to any Holder. The Company shall promptly notify the
Trustee in writing of the name and address of any Agent not a party to this Indenture. If the
Company fails to appoint or maintain another entity as Registrar, Paying Agent or Calculation
Agent, the Trustee shall act as such. The Company or any of its Subsidiaries may act as Paying
Agent or Registrar but may not act as Calculation Agent.

     The Company initially appoints The Depository Trust Company (“DTC”) to act as
Depositary with respect to the Global Notes.

          The Company initially appoints the Trustee and the Trustee accepts its appointment to act as
the Registrar, Paying Agent and Calculation Agent and to act as Custodian with respect to the
Global Notes.

          The Company shall, prior to each interest record date, notify the Paying Agent of any wire
transfer instructions for payments that it receives from Holders.

     Section 2.4. Paying Agent to Hold Money in Trust. 

          The Company shall require each Paying Agent other than the Trustee to agree in writing that
the Paying Agent will hold in trust for the benefit of Holders or the Trustee all money held by the
Paying Agent for the payment of principal, premium or Additional Interest, if any, or interest on
the Notes (whether such money has been paid to it by the Company or any other obligor on the Notes
or any Guarantor), and will notify the Trustee of any default by the Company (or any other obligor
or the Notes or any Guarantor) in making any such payment. While any such default continues, the
Trustee may require a Paying Agent to pay all money held by it to the Trustee. The Company at any
time may require a Paying Agent to pay all money held by it to the Trustee and the Trustee may at
any time during the continuance of any Event of Default, upon written request to a Paying Agent,
require such Paying Agent to pay forthwith all money so held by it to the Trustee and to account
for any funds disbursed. Upon payment over to the Trustee, the Paying Agent (if other than the
Company or a Subsidiary) shall have no further liability for the money. If the Company or a
Subsidiary acts as Paying Agent, it shall segregate and hold in a separate trust fund for the
benefit of the Holders all money held by it as Paying Agent and the Trustee may at any time during
the continuance of any Event of Default, upon written request to a Paying Agent, require such
Paying Agent to pay forthwith all money so held by it to the Trustee and to account for any funds
disbursed. Upon any bankruptcy or reorganization proceedings relating to the Company, the Trustee
shall serve as Paying Agent for the Notes.

     Section 2.5. Holder Lists.

          The Trustee shall preserve in as current a form as is reasonably practicable the most recent
list available to it of the names and addresses of all Holders and shall otherwise comply with TIA
ss. 312(a). If the Trustee is not the Registrar, the Company shall furnish to the Trustee at least
seven

25

 

Business Days before each interest payment date and at such other times as the Trustee may
request in writing, a list in such form and as of such date as the Trustee may reasonably require
of the names and addresses of the Holders of Notes and the Company shall otherwise comply with TIA
ss. 312(a).

     Section 2.6. Transfer and Exchange.

          (a) Transfer and Exchange of Global Notes. A Global Note may not be transferred as a
whole or in part except by the Depositary to a nominee of the Depositary, by a nominee of the
Depositary to the Depositary or to another nominee of the Depositary, or by the Depositary or any
such nominee to a successor Depositary or a nominee of such successor Depositary. Global Notes will
not be exchanged by the Company for Definitive Notes unless (i) the Company delivers to the Trustee
in writing notice from the Depositary (a) that it is unwilling or unable to continue to act as
Depositary for the Global Note or (b) that it is no longer a clearing agency registered under the
Exchange Act and, in either case, a successor Depositary is not appointed by the Company within 90
days after the date of such notice from the Depositary; (ii) the Company, at its option, determines
that the Global Notes (in whole but not in part) should be exchanged for Definitive Notes and
delivers a written notice to such effect to the Trustee; or (iii) an Event of Default shall have
occurred and be continuing or any event which after notice or lapse or time or both would be an
Event of Default with respect to the Notes and the Trustee has received a request from DTC or any
Holder to issue Definitive Notes. Upon the occurrence of any of the preceding events in (i), (ii)
or (iii) above, Definitive Notes shall be issued in such names as the Depositary shall instruct the
Trustee in writing. Global Notes also may be exchanged or replaced, in whole or in part, as
provided in Sections 2.7 and 2.10. Every Note authenticated and delivered in exchange for, or in
lieu of, a Global Note or any portion thereof, pursuant to this Section 2.6 or Section 2.7 or 2.10,
shall be authenticated and delivered in the form of, and shall be, a Global Note and will bear the
legend restricting transfers that is borne by such Global Note. A Global Note may not be exchanged
for another Note other than as provided in this Section 2.6(a); however, beneficial interests in a
Global Note may be transferred and exchanged as provided in Section 2.6(b) or (f).

          (b) Transfer and Exchange of Beneficial Interests in Global Notes. The transfer and
exchange of beneficial interests in the Global Notes shall be effected through the Depositary, in
accordance with the provisions of this Indenture and the Applicable Procedures. Beneficial
interests in the Restricted Global Notes shall be subject to restrictions on transfer comparable to
those set forth herein to the extent required by the Securities Act. Transfers of beneficial
interests in the Global Notes also shall require compliance with either subparagraph (i) or (ii)
below, as applicable, as well as one or more of the other following subparagraphs, as applicable:

          (i) Transfer of Beneficial Interests in the Same Global
Note. Beneficial interests in any Restricted Global Note may
be transferred to Persons who take delivery thereof in the form of
a beneficial interest in the same Restricted Global Note in
accordance with the transfer restrictions set forth in the Private
Placement Legend; provided, however, that prior to the expiration
of the Restricted Period, transfers of beneficial interests in the
Regulation S Global Note may not be made to a U.S. Person or for
the account or benefit of a U.S. Person (other than an Initial
Purchaser) who takes delivery in the form of an interest in a 144A
Global Note without the receipt by Trustee of a written
certification on behalf of the transferor substantially in the form
of Exhibit B hereto. Beneficial interests in any Unrestricted
Global Note may be transferred to Persons who take delivery thereof
in the form of a beneficial interest in an Unrestricted Global
Note. No written

26

 

orders or instructions shall be required to be delivered to
the Registrar to effect the transfers described in this Section
2.6(b)(i).

          (ii) All Other Transfers and Exchanges of Beneficial
Interests in Global Notes. In connection with all transfers
and exchanges of beneficial interests in any Global Note that is
not subject to Section 2.6(b)(i) above, the transferor of such
beneficial interest must deliver to the Registrar (1) a written
order from a Participant or an Indirect Participant given to the
Depositary in accordance with the Applicable Procedures directing
the Depositary to credit or cause to be credited a beneficial
interest in another Global Note in an amount equal to the
beneficial interest to be transferred or exchanged and (2)
instructions given in accordance with the Applicable Procedures
containing information regarding the Participant account to be
credited with such increase. Upon consummation of the Exchange
Offer by the Company in accordance with Section 2.6(f), the
requirements of this Section 2.6(b)(ii) shall be deemed to have
been satisfied upon receipt by the Registrar of the instructions
contained in the Letter of Transmittal delivered by the holder of
such beneficial interests in the Restricted Global Notes. Upon
satisfaction of all of the requirements for transfer or exchange of
beneficial interests in Global Notes contained in this Indenture
and the Notes or otherwise applicable under the Securities Act, the
Trustee shall adjust the principal amount of the relevant Global
Note(s) pursuant to Section 2.6(h).

          (iii) Transfer of Beneficial Interests to Another
Restricted Global Note. A beneficial interest in any
Restricted Global Note may be transferred to a Person who takes
delivery thereof in the form of a beneficial interest in another
Restricted Global Note if the transfer complies with the
requirements of Section 2.6(b)(ii) and the Registrar receives the
following:

          (A) if the transferee will take delivery in the form of a beneficial
interest in a 144A Global Note, then the transferor must deliver a
certificate in the form of Exhibit B hereto, including the
certifications in item (1) thereof; and

          (B) if the transferee will take delivery in the form of a beneficial
interest in a Regulation S Global Note, then the transferor must deliver a
certificate in the form of Exhibit B hereto, including the
certifications in item (2) thereof;

          (iv) Transfer and Exchange of Beneficial Interests in a
Restricted Global Note for Beneficial Interests in an Unrestricted
Global Note. A beneficial interest in any Restricted Global
Note may be exchanged by any holder thereof for a beneficial
interest in an Unrestricted Global Note or transferred to a Person
who takes delivery thereof in the form of a beneficial interest in
an Unrestricted Global Note if the exchange or transfer complies
with the requirements of Section 2.6(b)(ii) and:

27

 

          (A) such exchange or transfer is effected pursuant to the Exchange
Offer in accordance with the Registration Rights Agreement and the holder of
the beneficial interest to be transferred, in the case of an exchange, or
the transferee, in the case of a transfer, certifies in the applicable
Letter of Transmittal that it is not (1) a broker-dealer, (2) a Person
participating in the distribution of the Exchange Notes or (3) a Person who
is an affiliate (as defined in Rule 144) of the Company;

          (B) such transfer is effected pursuant to the Shelf Registration
Statement in accordance with the Registration Rights Agreement;

          (C) such transfer is effected by a Broker-Dealer pursuant to the Shelf
Registration Statement in accordance with the Registration Rights Agreement;
or

          (D) the Registrar receives the following:

          (1) if the holder of such beneficial interest in a
Restricted Global Note proposes to exchange such beneficial
interest for a beneficial interest in an Unrestricted
Global Note, a certificate from such holder in the form of
Exhibit C hereto, including the certifications in
item (1)(a) thereof; or

          (2) if the holder of such beneficial interest in a
Restricted Global Note proposes to transfer such beneficial
interest to a Person who shall take delivery thereof in the
form of a beneficial interest in an Unrestricted Global
Note, a certificate from such holder in the form of
Exhibit B hereto, including the certifications in
item (4) thereof; or

          (3) such exchange or transfer relates to Notes sold in
reliance upon Regulation S and the applicable Restricted
Period has expired;

and, in each such case set forth in this subparagraph (D), if the
Registrar so requests or if the Applicable Procedures so require, an
Opinion of Counsel in form reasonably acceptable to the Registrar to
the effect that such exchange or transfer is in compliance with the
Securities Act and that the restrictions on transfer contained herein
and in the Private Placement Legend are no longer required in order
to maintain compliance with the Securities Act.

          If any such transfer is effected pursuant to subparagraph (B) or (D) above at a time when an
Unrestricted Global Note has not yet been issued, the Company shall issue and execute and, upon
receipt of an Authentication Order in accordance with Section 2.2, the Trustee shall authenticate
one or more Unrestricted Global Notes in an aggregate principal amount equal to the aggregate
principal amount of beneficial interests transferred pursuant to subparagraph (B) or (D) above.

          Beneficial interests in an Unrestricted Global Note cannot be exchanged for, or transferred to
Persons who take delivery thereof in the form of, a beneficial interest in a Restricted Global
Note.

28

 

          (c) Transfer and Exchange of Beneficial Interests in Global Notes for Definitive
Notes. A beneficial interest in a Global Note may not be exchanged for a Definitive Note
except under the circumstances described in Section 2.6(a). A beneficial interest in a Global Note
may not be transferred to a Person who takes delivery thereof in the form of a Definitive Note
except under the circumstances described in Section 2.6(a) hereof.

          (d) Transfer and Exchange of Definitive Notes for Beneficial Interests in Global
Notes.

               (i) Restricted Definitive Notes to Beneficial Interests in Restricted Global Notes.
If any Holder of a Restricted Definitive Note proposes to exchange such Note for a beneficial
interest in a Restricted Global Note or to transfer such Restricted Definitive Notes to a Person
who takes delivery thereof in the form of a beneficial interest in a Restricted Global Note, then,
upon receipt by the Registrar of the following documentation:

          (A) if the Holder of such Restricted Definitive Note proposes to
exchange such Note for a beneficial interest in a Restricted Global Note, a
certificate from such Holder in the form of Exhibit C hereto,
including the certifications in item (2)(a) thereof;

          (B) if such Restricted Definitive Note is being transferred to a QIB in
accordance with Rule 144A under the Securities Act, a certificate to the
effect set forth in Exhibit B hereto, including the certifications
in item (1) thereof;

          (C) if such Restricted Definitive Note is being transferred to a Non-
U.S. Person in an offshore transaction in accordance with Rule 903 or Rule
904 under the Securities Act, a certificate to the effect set forth in
Exhibit B hereto, including the certifications in item (2) thereof;

          (D) if such Restricted Definitive Note is being transferred pursuant to
an exemption from the registration requirements of the Securities Act in
accordance with Rule 144 under the Securities Act, a certificate to the
effect set forth in Exhibit B hereto, including the certifications
in item (3)(a) thereof;

          (E) if such Restricted Definitive Note is being transferred to an
Institutional Accredited Investor in reliance on an exemption from the
registration requirements of the Securities Act other than those listed in
subparagraphs (B) through (D) above, a certificate to the effect set forth
in Exhibit B hereto, including the certifications, certificates and
Opinion of Counsel required by item (3)(d) thereof, if applicable;

          (F) if such Restricted Definitive Note is being transferred to the
Company or any of its Subsidiaries, a certificate to the effect set forth in
Exhibit B hereto, including the certifications in item (3)(b)
thereof; or

          (G) if such Restricted Definitive Note is being transferred pursuant to
an effective registration statement under the Securities Act, a certificate
to the effect set forth in Exhibit B hereto, including the
certifications in item (3)(c) thereof, the Trustee shall cancel the
Restricted Definitive Note, and increase or cause to be increased the
aggregate principal amount of, in the case of clause (A) above, the
appropriate Restricted Global Note, and in the case of clause (B)

29

 

above, the 144A Global Note, and in the case of clause (C) above, the
Regulation S Global Note.

               (ii) Restricted Definitive Notes to Beneficial Interests in Unrestricted Global Notes.
A Holder of a Restricted Definitive Note may exchange such Note for a beneficial interest in an
Unrestricted Global Note or transfer such Restricted Definitive Note to a Person who takes delivery
thereof in the form of a beneficial interest in an Unrestricted Global Note only if:

          (A) such exchange or transfer is effected pursuant to the Exchange
Offer in accordance with the Registration Rights Agreement and the Holder,
in the case of an exchange, or the transferee, in the case of a transfer,
certifies in the applicable Letter of Transmittal that it is not (1) a
broker-dealer, (2) a Person participating in the distribution of the
Exchange Notes or (3) a Person who is an affiliate (as defined in Rule 144)
of the Company;

          (B) such transfer is effected pursuant to the Shelf Registration
Statement in accordance with the Registration Rights Agreement;

          (C) such transfer is effected by a Broker-Dealer pursuant to the
Exchange Registration Statement in accordance with the Registration Rights
Agreement;

          (D) the Registrar receives the following:

          (1) if the Holder of such Restricted Definitive Notes
proposes to exchange such Notes for a beneficial interest
in the Unrestricted Global Note, a certificate from such
Holder in the form of Exhibit C hereto, including
the certifications in item (1)(b) thereof; or

          (2) if the Holder of such Restricted Definitive Notes
proposes to transfer such Notes to a Person who shall take
delivery thereof in the form of a beneficial interest in
the Unrestricted Global Note, a certificate from such
Holder in the form of Exhibit B hereto, including
the certifications in item (4) thereof;

and, in each such case set forth in this subparagraph (D), if the
Registrar so requests or if the Applicable Procedures so require, an
Opinion of Counsel in form reasonably acceptable to the Registrar to
the effect that such exchange or transfer is in compliance with the
Securities Act and that the restrictions on transfer contained herein
and in the Private Placement Legend are no longer required in order
to maintain compliance with the Securities Act.

          Upon satisfaction of the conditions of any of the subparagraphs in this Section 2.6(d)(ii),
the Trustee shall cancel the Restricted Definitive Notes and increase or cause to be increased the
aggregate principal amount of the Unrestricted Global Note.

               (iii) Unrestricted Definitive Notes to Beneficial Interests in Unrestricted Global
Notes. A Holder of an Unrestricted Definitive Note may exchange such Note for a beneficial

30

 

interest in an Unrestricted Global Note or transfer such Definitive Note to a Person who takes
delivery thereof in the form of a beneficial interest in an Unrestricted Global Note at any time.
Upon receipt of a request for such an exchange or transfer, the Trustee shall cancel the applicable
Unrestricted Definitive Note and increase or cause to be increased the aggregate principal amount
of one of the Unrestricted Global Notes.

          If any such exchange or transfer from a Definitive Note to a beneficial interest is effected
pursuant to subparagraph (ii)(B), (ii)(D) or (iii) above at a time when an Unrestricted Global Note
has not yet been issued, the Company shall issue and, upon receipt of an Authentication Order in
accordance with Section 2.2, the Trustee shall authenticate one or more Unrestricted Global Notes
in an aggregate principal amount equal to the principal amount of Definitive Notes so transferred.

          (e) Transfer and Exchange of Definitive Notes for Definitive Notes. Upon request by a
Holder of Definitive Notes and such Holder’s compliance with the provisions of this Section 2.6(e),
the Registrar shall register the transfer or exchange of Definitive Notes. Prior to such
registration of transfer or exchange, the requesting Holder shall present or surrender to the
Registrar the Definitive Notes duly endorsed or accompanied by a written instruction of transfer in
form satisfactory to the Registrar duly executed by such Holder or by its attorney, duly authorized
in writing. In addition, the requesting Holder shall provide any additional certifications,
documents and information, as applicable, required pursuant to the following provisions of this
Section 2.6(e):

               (i) Restricted Definitive Notes to Restricted Definitive Notes. Any Restricted
Definitive Note may be transferred to and registered in the name of Persons who take delivery
thereof in the form of a Restricted Definitive Note if the Registrar receives the
following:

          (A) if the transfer will be made pursuant to Rule 144A under the
Securities Act, then the transferor must deliver a certificate in the form
of Exhibit B hereto, including the certifications in item (1)
thereof;

          (B) if the transfer will be made pursuant to Rule 903 or Rule 904, then
the transferor must deliver a certificate in the form of Exhibit B
hereto, including the certifications in item (2) thereof; and

          (C) if the transfer will be made pursuant to any other exemption from
the registration requirements of the Securities Act, then the transferor
must deliver a certificate in the form of Exhibit B hereto,
including the certifications, certificates and Opinion of Counsel required
by item (3)(d) thereof, if applicable.

               (ii) Restricted Definitive Notes to Unrestricted Definitive Notes. Any Restricted
Definitive Note may be exchanged by the Holder thereof for an Unrestricted Definitive Note or
transferred to a Person or Persons who take delivery thereof in the form of an Unrestricted
Definitive Note if:

          (A) such exchange or transfer is effected pursuant to the Exchange
Offer in accordance with the Registration Rights Agreement and the Holder,
in the case of an exchange, or the transferee, in the case of a transfer,
certifies in the applicable Letter of Transmittal that it is not (1) a
broker-dealer, (2) a Person participating in the distribution of the
Exchange Notes or (3) a Person who is an affiliate (as defined in Rule 144)
of the Company;

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          (B) any such transfer is effected pursuant to the Shelf Registration
Statement in accordance with the Registration Rights Agreement;

          (C) any such transfer is effected by a Broker-Dealer pursuant to the
Exchange Registration Statement in accordance with the Registration Rights
Agreement; or

          (D) the Registrar receives the following:

          (1) if the Holder of such Restricted Definitive Notes
proposes to exchange such Notes for an Unrestricted
Definitive Note, a certificate from such Holder in the form
of Exhibit C hereto, including the certifications
in item (1)(c) thereof;

          (2) if the Holder of such Restricted Definitive Notes
proposes to transfer such Notes to a Person who shall take
delivery thereof in the form of an Unrestricted Definitive
Note, a certificate from such Holder in the form of Exhibit
B hereto, including the certifications in item (4) thereof;
or

          (3) such exchange or transfer relates to Notes sold in
reliance upon Regulation S and the applicable Restricted
Period has expired;

and, in each such case set forth in this subparagraph (D), if the Registrar so
requests, an Opinion of Counsel in form reasonably acceptable to the Company to the
effect that such exchange or transfer is in compliance with the Securities Act and
that the restrictions on transfer contained herein and in the Private Placement
Legend are no longer required in order to maintain compliance with the Securities
Act.

               (iii) Unrestricted Definitive Notes to Unrestricted Definitive Notes. A Holder of
Unrestricted Definitive Notes may transfer such Notes to a Person who takes delivery thereof in the
form of an Unrestricted Definitive Note. Upon receipt of a request to register such a transfer, the
Registrar shall register the Unrestricted Definitive Notes pursuant to the instructions from the
Holder thereof.

          (f) Exchange Offer. Upon the occurrence of the Exchange Offer in accordance with the
Registration Rights Agreement, the Company shall issue and execute and, upon receipt of an
Authentication Order in accordance with Section 2.2, the Trustee shall authenticate (i) one or more
Unrestricted Global Notes in an aggregate principal amount equal to the principal amount of the
beneficial interests in the Restricted Global Notes tendered for acceptance by Persons that certify
in the applicable Letters of Transmittal that (x) they are not broker-dealers, (y) they are not
participating in a distribution of the Exchange Notes and (z) they are not affiliates (as defined
in Rule 144) of the Company, and accepted for exchange in the Exchange Offer and (ii) Definitive
Notes in an aggregate principal amount equal to the principal amount of the Restricted Definitive
Notes accepted for exchange in the Exchange Offer. Concurrently with the issuance of such Notes,
the Trustee shall cause the aggregate principal amount of the applicable Restricted Global Notes to
be reduced accordingly, and the Company shall execute and the Trustee shall authenticate and
deliver to the Persons designated by the Holders of Definitive Notes so accepted Definitive Notes
in the appropriate principal amount.

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          (g) Legends. The following legends shall appear on the face of all Global Notes and
Definitive Notes issued under this Indenture unless specifically stated otherwise in the applicable
provisions of this Indenture.

               (i) Private Placement Legend.

          (A) Except as permitted by subparagraph (B) below, each Global Note and
each Definitive Note (and all Notes issued in exchange therefor or
substitution thereof) shall bear the legend in substantially the following
form:

          THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE ‘‘SECURITIES ACT’’), OR THE SECURITIES LAWS OF ANY STATE OR
OTHER JURISDICTION. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION
HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR
OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH
TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION. THE HOLDER
OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, AGREES ON ITS OWN BEHALF AND ON
BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES, TO
OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE
‘‘RESALE RESTRICTION TERMINATION DATE’’) THAT IS [IN THE CASE OF RULE 144A
NOTES: TWO YEARS] [IN THE CASE OF REGULATION S NOTES: 40 DAYS] AFTER THE
LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE
ISSUER OR ANY AFFILIATE OF THE ISSUER WAS THE OWNER OF THIS SECURITY (OR ANY
PREDECESSOR OF SUCH SECURITY), ONLY (A) TO THE ISSUER, (B) PURSUANT TO A
REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES
ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO
RULE 144A UNDER THE SECURITIES ACT, TO A PERSON IT REASONABLY BELIEVES IS A
‘‘QUALIFIED INSTITUTIONAL BUYER’’ AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS
BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES THAT
OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE
SECURITIES ACT, (E) TO AN INSTITUTIONAL ‘‘ACCREDITED INVESTOR’’ WITHIN THE
MEANING OF RULE 501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT THAT IS
AN INSTITUTIONAL ACCREDITED INVESTOR ACQUIRING THE SECURITY FOR ITS OWN
ACCOUNT OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, IN
EACH CASE IN A MINIMUM PRINCIPAL AMOUNT OF THE SECURITIES OF $250,000, FOR
INVESTMENT PURPOSES AND NOT WITH A VIEW TO OR FOR OFFER OR SALE IN
CONNECTION WITH ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, OR (F)
PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT, SUBJECT TO THE ISSUER’S AND THE

33

 

TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO
CLAUSES (D), (E) OR (F) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATION AND/ OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM. THIS
LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE
RESTRICTION TERMINATION DATE.

          (B) Notwithstanding the foregoing, any Global Note or Definitive Note
issued pursuant to subparagraph (b)(iv), (d)(ii), (d)(iii), (e)(ii),
(e)(iii) or (f) of this Section 2.6 (and all Notes issued in exchange
therefor or substitution thereof) shall not bear the Private Placement
Legend.

               (ii) Global Note Legend. Each Global Note shall bear a legend in substantially the
following form:

          THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE
GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE
BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY
CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS
MAY BE REQUIRED PURSUANT TO THE INDENTURE, (II) THIS GLOBAL NOTE MAY BE
EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.6(a) OF THE
INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR
CANCELLATION PURSUANT TO SECTION 2.11 OF THE INDENTURE AND (IV) THIS GLOBAL
NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN
CONSENT OF THE COMPANY. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN
PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT
AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE
OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR
BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE
OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET,
NEW YORK, NEW YORK) (“DTC”) TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN
THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR
SUCH OTHER ENTITY AS MAY BE 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.

               (h) Cancellation and/or Adjustment of Global Notes. At such time as all beneficial
interests in a particular Global Note have been exchanged for Definitive Notes or interests in
another

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Global Note or a particular Global Note has been redeemed, repurchased or canceled in whole
and not in part, each such Global Note shall be returned to or retained and canceled by the Trustee
in accordance with Section 2.11. At any time prior to such cancellation, if any beneficial interest
in a Global Note is exchanged for or transferred to a Person who will take delivery thereof in the
form of a beneficial interest in another Global Note or for Definitive Notes, the principal amount
of Notes represented by such Global Note shall be reduced accordingly and an endorsement shall be
made on such Global Note by the Trustee or by the Depositary at the direction of the Trustee to
reflect such reduction; and if the beneficial interest is being exchanged for or transferred to a
Person who will take delivery thereof in the form of a beneficial interest in another Global Note,
such other Global Note shall be increased accordingly and an endorsement shall be made on such
Global Note by the Trustee or by the Depositary at the direction of the Trustee to reflect such
increase.

               (i) General Provisions Relating to Transfers and Exchanges. (1) To permit
registrations of transfers and exchanges, the Company shall execute and the Trustee shall
authenticate Global Notes and Definitive Notes upon the Company’s order or at the Registrar’s
request.

          (2) No service charge shall be made to a holder of a beneficial interest in a
Global Note or to a Holder of a Definitive Note for any registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
transfer tax or similar governmental charge payable in connection therewith (other
than any such transfer taxes or similar governmental charge payable upon exchange or
transfer pursuant to Sections 2.10, 3.6, 4.10, 4.15 and 9.5).

          (3) All Global Notes and Definitive Notes issued upon any registration of
transfer or exchange of Global Notes or Definitive Notes shall be the legal, valid
and binding obligations of the Company, evidencing the same debt, and entitled to
the same benefits under this Indenture, as the Global Notes or Definitive Notes
surrendered upon such registration of transfer or exchange.

          (4) The Registrar shall not be required (A) to register the transfer of or to
exchange any Notes during a period beginning at the opening of business 15 days
before the day of any mailing of notice of redemption of Notes for redemption under
Section 3.2 and ending at the close of business on the day of such mailing, (B) to
register the transfer of or to exchange any Note so selected for redemption in whole
or in part, except the unredeemed portion of any Note being redeemed in part or (c)
to register the transfer of or to exchange a Note between a record date and the next
succeeding interest payment date.

          (5) Prior to due presentment for the registration of a transfer of any Note,
the Trustee, any Agent and the Company may deem and treat the Person in whose name
any Note is registered as the absolute owner of such Note for the purpose of
receiving payment of principal of and interest on such Notes and for all other
purposes, and none of the Trustee, any Agent or the Company shall be affected by
notice to the contrary.

          (6) The Trustee shall authenticate Global Notes and Definitive Notes in
accordance with the provisions of Section 2.2.

          (7) All certifications, certificates and Opinions of Counsel required to be
submitted to the Registrar pursuant to this Section 2.6 to effect a registration of
transfer or exchange may be submitted by facsimile.

35

 

          (8) Each Holder of a Note agrees to indemnify the Company and the Trustee
against any liability that may result from the transfer, exchange or assignment of
such Holder’s Note in violation of any provision of this Indenture and/or applicable
United States federal or state securities law.

          The Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance
with any restrictions on transfer imposed under this Indenture or under applicable law with respect
to any transfer of any interest in any Note (including any transfers between or among Depositary
Participants or beneficial owners of interests in any Global Note) other than to require delivery
of such certificates and other documentation or evidence as are expressly required by, and to do so
if and when expressly required by the terms of, this Indenture, and to examine the same to
determine reasonable compliance as to form with the express requirements hereof, provided that the
Trustee shall have no obligation to investigate or confirm the accuracy or correctness thereof.

     Section 2.7. Replacement Notes.

          If any mutilated Note is surrendered to the Trustee or the Company and the Trustee receives
evidence to its satisfaction of the destruction, loss or theft of any Note, the Company shall issue
and execute and the Trustee, upon receipt of an Authentication Order, shall authenticate a
replacement Note if the Trustee’s requirements are met. An indemnity bond must be supplied by the
Holder that is sufficient in the judgment of the Trustee and the Company to protect The Company,
the Trustee, any Agent and any authenticating agent from any loss that any of them may suffer if a
Note is replaced. The Company may charge for its expenses in replacing a Note.

          Every replacement Note is an additional and binding obligation of the Company and shall be
entitled to all of the benefits of this Indenture equally and proportionately with all other Notes
duly issued hereunder.

     Section 2.8. Outstanding Notes.

          The Notes outstanding at any time are all the Notes authenticated by the Trustee except for
those canceled by it, those delivered to it for cancellation, those reductions in the interest in a
Global Note effected by the Trustee in accordance with the provisions hereof and those described in
this Section as not outstanding. Except as set forth in Section 2.9, a Note does not cease to be
outstanding because the Company or an Affiliate of the Company holds the Note; however, Notes held
by the Company or a Subsidiary of the Company shall not be deemed to be outstanding for purposes of
Section 3.7(b).

          If a Note is replaced pursuant to Section 2.7, it ceases to be outstanding unless the Trustee
receives proof and indemnification satisfactory to it that the replaced Note is held by a bona fide
purchaser.

          If the principal amount of any Note is considered paid under Section 4.1, it ceases to be
outstanding and interest on it ceases to accrue.

          If the Paying Agent (other than the Company, a Subsidiary of the Company or an Affiliate of
any thereof) holds, on a redemption date or maturity date, money sufficient to pay Notes payable on
that date, then on and after that date such Notes shall be deemed to be no longer outstanding and
shall cease to accrue interest.

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     Section 2.9. Treasury Notes.

          In determining whether the Holders of the required principal amount of Notes have concurred in
any direction, waiver or consent, Notes owned by the Company or by any Affiliate of the Company
shall be considered as though not outstanding, except that for the purposes of determining whether
the Trustee shall be protected in relying on any such direction, waiver or consent, only Notes that
a Responsible Officer of the Trustee actually knows are so owned shall be so disregarded.

     Section 2.10. Temporary Notes.

          The Company may prepare and execute and the Trustee, upon receipt of an Authentication Order,
shall authenticate temporary Notes. Temporary Notes shall be substantially in the form of permanent
Notes but may have variations that the Company considers appropriate for temporary Notes and as
shall be reasonably acceptable to the Trustee. The Company may prepare and execute and the Trustee,
upon receipt of an Authentication Order, shall authenticate permanent Notes in exchange for
temporary Notes.

          Holders of temporary Notes shall be entitled to all of the benefits of this Indenture.

     Section 2.11. Cancellation.

          The Company at any time may deliver Notes to the Trustee for cancellation. The Registrar and
Paying Agent shall forward to the Trustee any Notes surrendered to them for registration of
transfer, exchange or payment. The Trustee upon direction by the Company and no one else shall
cancel all Notes surrendered for registration of transfer, exchange, payment, replacement or
cancellation and shall dispose of the Notes (subject to the record retention requirement of the
Exchange Act). The Company may not issue new Notes to replace Notes that it has paid or that have
been delivered to the Trustee for cancellation.

     Section 2.12. Defaulted Interest.

          The Company shall pay interest on overdue principal from time to time on demand at the rate of
interest then borne by the Notes. The Company shall, to the extent lawful, pay interest on overdue
installments of interest (without regard to any applicable grace periods) from time to time on
demand at the rate of interest then borne by the Notes.

          If the Company defaults in a payment of interest on the Notes, such interest shall cease to be
payable to the Holders on the relevant record date and the Company shall instead pay the defaulted
interest in any lawful manner plus, to the extent lawful, interest payable on the defaulted
interest, to the Persons who are Holders on a subsequent special record date, in each case at the
rate provided in the Notes and in Section 4.1. The Company shall notify the Trustee at least 20
days before the subsequent special record date in writing of the amount of defaulted interest and
interest payable on such defaulted interest, if any, proposed to be paid on each Note and the date
of the proposed payment. The Company shall fix or cause to be fixed each such special record date
and payment date, provided that no such special record date shall be less than 5 days prior to the
related payment date for such defaulted interest. At least 10 days before the special record date,
the Company (or, upon the written request of the Company, the Trustee in the name and at the
expense of the Company) shall mail or cause to be mailed to Holders a notice that states the
special record date, the related payment date and the amount of such interest to be paid.

37

 

          Notwithstanding the foregoing, any interest which is paid prior to the expiration of the
30-day period set forth in Section 6.1(1) shall be paid to Holders as of the Interest Record Date
for the Interest Payment Date for which interest has not been paid.

     Section 2.13. CUSIP Numbers.

          The Company, in issuing the Notes, may use “CUSIP” numbers (if then generally in use) and, if
so, the Trustee shall use “CUSIP” numbers in notices of redemption as a convenience to Holders;
provided that any such notice may state that no representation is made as to the correctness of
such numbers either as printed on the Notes or as contained in any notice of a redemption and that
reliance may be placed only on the other identification numbers printed on the Notes, and any such
redemption shall not be affected by any defect in or omission of such numbers. The Company will
promptly notify the Trustee of any change in the “CUSIP” numbers.

ARTICLE III

REDEMPTION

     Section 3.1. Notice of Redemption to Trustee.

          If the Company elects to redeem Floating Rate Notes or Fixed Rate Notes pursuant to the
optional redemption provisions of Section 3.7, it shall furnish to the Trustee, at least 30 days
but not more than 90 days before the redemption date, an Officers’ Certificate setting forth (i)
the redemption date, (ii) the principal amount of Floating Rate Notes or Fixed Rate Notes, as the
case may be, to be redeemed and (iii) the redemption price or, if then indeterminable, basis for
determining the redemption price.

     Section 3.2. Selection of Notes to Be Redeemed.

          If less than all of Floating Rate Notes or Fixed Rate Notes, as the case may be, are to be
redeemed or purchased in an offer to purchase at any time, the Trustee shall select the Notes to be
redeemed among the Holders of the Notes in compliance with the requirements of the principal
national securities exchange, if any, on which the Notes are listed or, if the Notes are not so
listed, on a pro rata basis, by lot or by such method as the Trustee shall deem appropriate. In the
event of partial redemption by lot pursuant to Section 3.7, the particular Notes to be redeemed
shall be selected, unless otherwise provided herein, not less than 30 nor more than 60 days prior
to the redemption date by the Trustee from the outstanding Notes not previously called for
redemption.

          The Trustee shall promptly notify the Company in writing of the Notes selected for redemption
and the principal amount thereof to be redeemed. Notes and portions of Notes selected shall be in
amounts of $1,000 or whole multiples of $1,000, except that if all of the Notes of a Holder are to
be redeemed, then the entire outstanding amount of Notes held by such Holder, even if not a
multiple of $1,000, shall be redeemed.

     Section 3.3. Notice of Redemption to Holders.

          If the Company elects to redeem Notes pursuant to the optional redemption provisions of
Section 3.7, at least 30 days but not more than 60 days before the redemption date and, if
applicable, no later than 30 days after the closing of the related Public Equity Offering, the
Company shall mail or cause to be mailed, by first class mail, a notice of redemption to each
Holder whose Notes are to be redeemed at its registered address. The notice shall identify the
Notes to be redeemed (including “CUSIP” number(s)) and shall state: (i) the redemption date; (ii)
the redemption price or, if then indeterminable, basis for

38

 

determining the redemption price; (iii) if any Note is being redeemed in part, the portion of
the principal amount of such Note to be redeemed and that, after the redemption date upon surrender
of such Note, a new Note or Notes in principal amount equal to the unredeemed portion shall be
issued upon cancellation of the original Note; (iv) the name and address of the Paying Agent; (v)
that Notes called for redemption must be surrendered to the Paying Agent to collect the redemption
price; (vi) that, unless the Company defaults in making such redemption payment, interest on Notes
called for redemption ceases to accrue on and after the redemption date; (vii) the paragraph of the
Notes and/or Section of this Indenture pursuant to which the Notes called for redemption are being
redeemed; and (viii) that no representation is made as to the correctness or accuracy of the
“CUSIP” number, if any, listed in such notice or printed on the Notes.

          At the Company’s request, the Trustee shall give the notice of redemption in the Company’s
name and at its expense; provided, however, that the Company shall have delivered to the Trustee,
at least 45 days prior to the redemption date, an Officers’ Certificate requesting that the Trustee
give such notice and setting forth the information to be stated in such notice as provided in the
preceding paragraph.

     Section 3.4. Effect of Notice of Redemption.

          Once notice of redemption is mailed in accordance with Section 3.3, Notes called for
redemption become irrevocably due and payable on the redemption date at the redemption price. A
notice of redemption may not be conditional.

     Section 3.5. Deposit of Redemption Price.

          No later than 10:00 a.m., New York City time, on the redemption date, the Company shall
deposit with the Paying Agent money sufficient to pay the redemption price of and accrued interest
(including Additional Interest, if any) on all Notes to be redeemed on that date. The Paying Agent
shall promptly return to the Company any money deposited with the Paying Agent by the Company in
excess of the amounts necessary to pay the redemption price of, and accrued interest (including
Additional Interest, if any) on, all Notes to be redeemed.

          If the Company complies with the provisions of the preceding paragraph, on and after the
redemption date, interest shall cease to accrue on the Notes or the portions of Notes called for
redemption. If a Note is redeemed on or after an interest record date but on or prior to the
related interest payment date, then any accrued and unpaid interest shall be paid to the Person in
whose name such Note was registered at the close of business on such record date. If any Note
called for redemption shall not be so paid upon surrender for redemption because of the failure of
the Company to comply with the preceding paragraph, interest (including Additional Interest, if
any) shall be paid on the unpaid principal, from the redemption date until such principal is paid,
and to the extent lawful on any interest (including Additional Interest, if any) not paid on such
unpaid principal, in each case at the rate provided in the Notes and in Section 4.1.

     Section 3.6. Notes Redeemed in Part.

          Upon surrender of a Note that is redeemed in part, the Company shall issue and execute and,
upon the Company’s written request, the Trustee shall authenticate for the Holder at the expense of
the Company a new Note equal in principal amount to the unredeemed portion of the Note surrendered.

39

 

     Section 3.7. Optional Redemption.

          (a) Except pursuant to clause (b) or (c) of this Section 3.7, Floating Rate Notes will not be
redeemable at the Company’s option prior to April 15, 2008. Except pursuant to clause (b) or (d) of
this Section 3.7, Fixed Rate Notes will not be redeemable by the Company prior to April 15, 2009.

          (b) At any time prior to April 15, 2008, in the case of the Floating Rate Notes, and April 15,
2009, in the case of the Fixed Rate Notes, the Company, at its option, may use the net cash
proceeds of one or more Public Equity Offerings to redeem up to an aggregate of 40% of the
aggregate principal amount of Floating Rate Notes and up to an aggregate of 40% of the aggregate
principal amount of Fixed Rate Notes issued under this Indenture (including respective series of
Subsequent Series Notes, if any) at a redemption price equal to 100% of the principal amount of the
Notes to be redeemed plus a premium (as a percentage of the principal amount of the Notes to be
redeemed) equal to the applicable interest rate on the date on which notice of redemption was
given, in the case of Floating Rate Notes, and 107% of the aggregate principal amount of the Notes
to be redeemed, in the case of Fixed Rate Notes, plus, in each case, 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). At least 60% of the aggregate principal
amount of Notes of the applicable series being redeemed (including Subsequent Series Notes, if any)
must remain outstanding immediately after the occurrence of such redemption. In order to effect any
such redemption, the Company must complete such redemption within 60 days of the closing of the
Public Equity Offering.

          (c) At any time prior to April 15, 2008, the Company may redeem all or a part of Floating Rate
Notes, at a redemption price equal to 100% of the principal amount of Floating Rate Notes redeemed
plus the Applicable Premium as of, and accrued and unpaid interest and Additional Interest, if any,
to the date of redemption, subject to the rights of Holders of Floating Rate Notes on the relevant
Record Date to receive interest due on the relevant Interest Payment Date.

          (d) At any time prior to April 15, 2009, the Company may redeem all or a part of Fixed Rate
Notes, at a redemption price equal to 100% of the principal amount of Fixed Rate Notes redeemed
plus the Applicable Premium as of, and accrued and unpaid interest and Additional Interest, if any,
to the redemption date, subject to the rights of Holders of Fixed Rate Notes on the relevant Record
Date to receive interest due on the relevant Interest Payment Date.

          (e) On and after April 15, 2008, the Company may redeem Floating Rate Notes, in whole or in
part, at the redemption prices (expressed as percentages of principal amount of Floating Rate Notes
to be redeemed) set forth below, plus accrued and unpaid interest and Additional Interest, if any,
to the applicable redemption date, subject to the right of Holders of Floating Rate Notes of record
on the relevant Record Date to receive interest due on the relevant Interest Payment Date, if
redeemed during the twelve-month period beginning on April 15 of each of the years indicated below:

	 	 	 	 	 
	Year	 	Percentage	 
	2008
	 	 	103.000	%
	2009
	 	 	102.000	%
	2010
	 	 	101.000	%
	2011 and thereafter
	 	 	100.000	%

          (f) On and after April 15, 2009, the Company may redeem Fixed Rate Notes, in whole or in part,
at the redemption prices (expressed as percentages of principal amount of Fixed Rate

40

 

Notes to be redeemed) set forth below, plus accrued and unpaid interest thereon and Additional
Interest, if any, to the applicable redemption date, subject to the right of Holders of Fixed Rate
Notes of record on the relevant Record Date to receive interest due on the relevant Interest
Payment Date, if redeemed during the twelve-month period beginning on April 15 of each of the years
indicated below:

	 	 	 	 	 
	Year	 	Percentage	 
	2009
	 	 	105.250	%
	2010
	 	 	103.500	%
	2011
	 	 	101.750	%
	2012 and thereafter
	 	 	100.000	%

          (g) Any redemption pursuant to this Section 3.7 shall be made pursuant to the provisions of
Section 3.1 through 3.6.

ARTICLE IV

COVENANTS

     Section 4.1. Payment of Notes.

          The Company shall pay or cause to be paid the principal of, premium, if any, Additional
Interest, if any, and interest on the Notes on the dates and in the manner provided in the Notes.
Principal, premium, if any, and interest shall be considered paid on the date due if the Paying
Agent, if other than the Company or a Subsidiary thereof, holds as of 10:00 a.m. Eastern Time on
the due date money deposited by the Company in immediately available funds and designated for and
sufficient to pay all principal, premium, if any, and interest then due. At the option of the
Company interest may be paid by check mailed to the address of the Holder as such address appears
on the securities register. The Company shall pay all Additional Interest, if any, in the same
manner on the dates and in the amounts set forth in the Registration Rights Agreement.

          The Company shall pay interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue principal at the rate equal to 1% per annum in excess of the then
applicable interest rate on the Notes to the extent lawful; it shall pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of
interest and Additional Interest (without regard to any applicable grace period) at the same rate
to the extent lawful.

     Section 4.2. Maintenance of Office or Agency.

          The Company shall maintain an office or agency (which may be an office of the Trustee or an
affiliate of the Trustee, Registrar or co-registrar) where Notes may be surrendered for
registration of transfer or for exchange and where notices and demands to or upon the Company in
respect of the Notes and this Indenture may be served. The Company shall give prompt written notice
to the Trustee of the location, and any change in the location, of such office or agency. If at any
time the Company shall fail to maintain any such required office or agency or shall fail to furnish
the Trustee with the address thereof, such presentations, surrenders, notices and demands may be
made or served at the Corporate Trust Office of the Trustee.

          The Company may also from time to time designate one or more other offices or agencies where
the Notes may be presented or surrendered for any or all such purposes and may from time to time
rescind such designations; provided, however, that no such designation or rescission shall in any
manner

41

 

relieve the Company of its obligation to maintain an office or agency for such purposes. The
Company shall give prompt written notice to the Trustee of any such designation or rescission and
of any change in the location of any such other office or agency.

          The Company hereby designates the Corporate Trust Office of the Trustee as one such office or
agency of the Company in accordance with Section 2.3.

     Section 4.3. Reports.

          Whether or not the Company is subject to Section 13(a) or 15(d) of the Exchange Act, the
Company will, to the extent permitted under the Exchange Act, file with the Commission the annual
reports, quarterly reports and other documents which the Company would have been required to file
with the Commission pursuant to Section 13(a) or 15(d) if the Company 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 would have been required so to file such documents if the Company
were so subject.

          The Company will also in any event (a) within 15 days of each Required Filing Date file with
the Trustee copies of the annual reports, quarterly reports and other documents which the Company
would have been required to file with the Commission pursuant to Section 13(a) or 15(d) of the
Exchange Act if the Company were subject to either of such Sections and (b) if filing such
documents by the Company 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 Holder or prospective holder at the Company’s cost.

          If any Guarantor’s financial statements would be required to be included in the financial
statements or footnotes 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 (or include such financial statements in a footnote) in any filing or delivery pursuant
to this Indenture.

          Delivery of such reports, information and documents to the Trustee is for informational
purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained therein, including the
Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to
rely exclusively on Officers’ Certificates).

     Section 4.4. Compliance Certificate

          (a) The Company and each Guarantor (to the extent that such Guarantor is so required under the
TIA) shall deliver to the Trustee, on or before a date not more than 60 days after the end of each
fiscal quarter and not more than 120 days after the end of each fiscal year, an Officers’
Certificate stating that a review of the activities of the Company and its Subsidiaries during the
preceding fiscal year has been made under the supervision of the signing Officers with a view to
determining whether the Company has kept, observed, performed and fulfilled its obligations under
this Indenture, and further stating, as to each such Officer signing such certificate, that to the
best of his or her knowledge the Company has kept, observed, performed and fulfilled each and every
covenant contained in this Indenture and is not in default in the performance or observance of any
of the terms, provisions and conditions of this Indenture (or, if a Default or Event of Default
shall have occurred and be continuing, describing all such Defaults or Events of Default of which
he or she may have knowledge and what action the Company is taking or proposes to take with respect
thereto) and that to his or her knowledge no event has occurred and remains in existence by reason
of which payments on account of the principal of or interest, if any, on

42

 

the Notes is prohibited or if such event has occurred, a description of the event and what
action the Company is taking or proposes to take with respect thereto.

          (b) The Company shall, so long as any of the Notes are outstanding, deliver to the Trustee as
soon as possible and in any event within five Business Days, forthwith upon the Company becoming
aware of any Default or Event of Default that has occurred and is continuing, an Officers’
Certificate specifying such Default or Event of Default and what action the Company is taking or
proposes to take with respect thereto.

     Section 4.5. Taxes.

          The Company shall pay, and shall cause each of its Subsidiaries to pay, prior to delinquency,
all material taxes, assessments, and governmental levies imposed on them except such as are
contested in good faith and by appropriate proceedings or where the failure to effect such payment
is not adverse in any material respect to the Holders of the Notes.

     Section 4.6. Stay, Extension and Usury Laws.

          The Company and each of the Guarantors covenants (to the extent permitted by applicable law)
that it shall not at any time insist upon, plead, or in any manner whatsoever claim or take the
benefit or advantage of, any stay, extension or usury law wherever enacted, now or at any time
hereafter in force, that may affect the covenants or the performance of this Indenture; and the
Company and each of 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 shall not, by resort to any
such law, hinder, delay or impede the execution of any power herein granted to the Trustee, but
shall suffer and permit the execution of every such power as though no such law has been enacted.

     Section 4.7. Limitation on Restricted Payments. 

          (a) The Company will not, and will not 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 (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, more than one
year prior to any scheduled principal payment, sinking fund payment or
maturity, any Subordinated Indebtedness;
	 
	 	(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

43

 

	 	 	 	any of its Restricted Subsidiaries or (b) dividends or distributions
made by a Restricted Subsidiary 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 paragraphs (i) through (v) above, 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 either by (a) the Board of Directors of the
Company and evidenced by a board resolution or (b) the Board Designee and evidenced by a
certificate (or committee resolution, as the case may be), in each case whose determination shall
be conclusive), 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;
	 
	 	(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 the provisions described under Section 4.9; 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 in which the Issue Date occurs 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 Proceeds
received after the Issue Date by the Company either (1) as
capital contributions in the form of common equity to the
Company or (2) 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 Stock or Subordinated Indebtedness as set forth
below in paragraph (2) or (3) of clause (b) below) (and
excluding the Net Proceeds 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 Proceeds
received after the Issue Date by the Company (other than from
any of its Subsidiaries) upon the

44

 

	 	 	 	exercise of any options, warrants or rights to purchase
Qualified Capital Stock of the Company (and excluding the Net
Proceeds 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 Proceeds
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 was issued after the
Issue Date, the aggregate of the Net Proceeds from its original
issuance (and excluding the Net Proceeds 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 100% of
the aggregate net proceeds (including the fair market value of
assets other than cash) received by the Company and its
Restricted Subsidiaries, 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 (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
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 plus any additional
amounts contributed or loaned to the Unrestricted Subsidiary
which were deemed Restricted Payments; and
	 
	 	(F)	 	$500.0 million.

          (b) Notwithstanding the foregoing, and in the case of paragraphs (2) through (4) and (9)
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 paragraphs (1) through (14)
being referred to as a “Permitted Payment”):

	 	(1)	 	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 4.7 and such payment shall have been deemed to have been paid
on such date of declaration and shall not have been deemed a “Permitted
Payment” for purposes of the calculation required by paragraph (a) of
this Section 4.7;

45

 

	 	(2)	 	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 Proceeds of (A) a substantially concurrent
issuance and sale for cash (other than to a Subsidiary) of other shares
of Qualified Capital Stock of the Company or (B) an issuance and sale
for cash (other than to any Subsidiary), which issuance and sale was
done in contemplation of such repurchase, redemption, acquisition or
retirement of, other shares of Qualified Capital Stock of the Company;
provided that the Net Proceeds from the issuance of such shares of
Qualified Capital Stock are excluded from paragraph (3)(B) of clause
(a) of this Section 4.7;
	 
	 	(3)	 	the repurchase, redemption, defeasance,
retirement or acquisition for value or payment of principal of any
Subordinated Indebtedness in exchange for, or in an amount not in
excess of the Net Proceeds of (A) a substantially concurrent issuance
and sale for cash (other than to any Subsidiary of the Company) of any
Qualified Capital Stock of the Company or (B) an issuance and sale for
cash (other than to any Subsidiary of the Company), which issuance and
sale was done in contemplation of such repurchase, redemption,
defeasance, retirement or acquisition, of any Qualified Capital Stock
of the Company, provided that the Net Proceeds from the issuance of
such shares of Qualified Capital Stock are excluded from paragraph
(3)(B) of clause (a) of this Section 4.7;
	 
	 	(4)	 	the repurchase, redemption, defeasance,
retirement, refinancing, acquisition for value or payment of principal
of any Subordinated Indebtedness (a “refinancing”) through the
substantially concurrent issuance of new Subordinated Indebtedness of
the Company or a Guarantor, provided that any such new Subordinated
Indebtedness.

	 	(A)	 	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 (1) 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 (2) 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 or such Guarantor incurred in connection with such
refinancing;
	 
	 	(B)	 	has an Average Life to Stated
Maturity greater than the remaining Average Life to Stated
Maturity of Fixed Rate Notes, or if no Fixed Rate Notes remain
outstanding, Floating Rate Notes;

46

 

	 	(C)	 	has a Stated Maturity for its
final scheduled principal payment later than the Stated Maturity
for the final scheduled principal payment of Fixed Rate Notes,
or if no Fixed Rate Notes remain outstanding, Floating Rate
Notes;
	 
	 	(D)	 	is expressly subordinated in
right of payment to the Notes or the Guarantee of such
Guarantor, as the case may be, at least to the same extent as
the Subordinated Indebtedness to be refinanced;

	 	(5)	 	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 or their estates or the beneficiaries of
their estates in an amount not to exceed $5.0 million in the aggregate
in any calendar year; provided that the Company may carry over and make
in subsequent calendar years, in addition to amounts permitted for such
calendar year, the amount of purchases, redemptions, or other
acquisitions or retirements for value permitted to have been made but
not made in any preceding calendar year up to a maximum of $10.0
million in any calendar year;
	 
	 	(6)	 	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;
	 
	 	(7)	 	the payment of the contingent purchase price of
an acquisition to the extent such payment would be deemed a Restricted
Payment;
	 
	 	(8)	 	the payment of the deferred purchase price,
including holdbacks (and the receipt of any corresponding consideration
therefor), of an acquisition to the extent such payment would have been
permitted by this Indenture at the time of such acquisition;
	 
	 	(9)	 	loans or advances to employees of the Company
or any Subsidiary of the Company the proceeds of which are used to
purchase Capital Stock of the Company, in an aggregate amount not in
excess of $10.0 million at any one time outstanding;
	 
	 	(10)	 	repurchases of Capital Stock deemed to occur
upon the exercise of stock options, warrants or other convertible
securities if such Capital Stock represents a portion of the exercise
price thereof;
	 
	 	(11)	 	payments or distributions to dissenting
shareholders pursuant to applicable law in connection with or in
contemplation of a merger, consolidation or transfer of assets that
complies with the provisions of the Indenture relating to mergers,
consolidations or transfers of substantially all of the Company’s
assets;

47

 

	 	(12)	 	cash payments in lieu of issuing fractional shares pursuant to the exercise or conversion of any exercisable or
convertible securities;
	 
	 	(13)	 	the repurchase of Subordinated Indebtedness in
the event of a Change of Control or an Asset Sale in accordance with
provisions similar to those in Sections 4.15 or 4.10 to the extent
required by the agreement governing such Subordinated Indebtedness, as
applicable; provided that, prior to such purchase, a Change of Control
Offer or Excess Proceeds Offer, as applicable, has been made with
respect to the Notes, and all Notes validly tendered for payment in
connection therewith have been repurchased, in accordance with Section
4.15 or Section 4.10 as applicable prior to offering to purchase,
purchasing or repaying such Subordinated Indebtedness; and
	 
	 	(14)	 	additional Restricted Payments not to exceed
$25.0 million in the aggregate.

          Section 4.8. Limitation on Dividend and Other Payment Restrictions Affecting Restricted
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

	 	(1)	 	pay dividends or make any other distribution on its Capital
Stock or any other interest or participation in or measured by its profits,
	 
	 	(2)	 	pay any Indebtedness owed to the Company or any other
Restricted Subsidiary,
	 
	 	(3)	 	make any Investment in the Company or any Wholly Owned
Restricted Subsidiary, or
	 
	 	(4)	 	transfer any of its properties or assets to the Company or any
Wholly Owned Restricted Subsidiary.

          However, this covenant will not prohibit any encumbrance or restriction (a) pursuant to an
agreement, or otherwise effective, in effect on the Issue Date; (b) with respect to a Restricted
Subsidiary that is 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(ies)
which is (are) becoming a Restricted Subsidiary(ies); (c) contained in any Acquired Indebtedness or
other agreement of an entity or related to assets acquired by or merged into or consolidated with
the Company or any Restricted Subsidiary so long as such encumbrance or restriction was not entered
into in contemplation of the acquisition, merger or consolidation transaction; (d) 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; (e) any
encumbrance or restriction existing under or by reason of applicable law, including any applicable
laws governing Restricted Subsidiaries of the Company which underwrite and/or reinsure insurance
products; (f) customary provisions restricting subletting or

48

 

assignment of any lease governing any leasehold interest of any Restricted Subsidiary; (g)
covenants in franchise agreements and/or framework agreements with Manufacturers customary for
franchise agreements and/or framework agreements in the automobile retailing industry; (h) any
encumbrances or restrictions in security agreements securing Indebtedness (other than Subordinated
Indebtedness) of a Restricted Subsidiary permitted to be incurred under this Indenture (including
any Vehicle Inventory Indebtedness) (to the extent that such Liens are otherwise incurred in
accordance with the provisions of Section 4.12) 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) imposed by the Notes, the
Indenture and the Guarantees; (j) created under or by reason of any other Indebtedness of the
Company or any Restricted Subsidiary permitted under the Indenture to be incurred; provided that
any such Indebtedness incurred after the date of the Indenture does not materially adversely affect
the Company’s ability to make anticipated payments of principal, premium and interest on the
Indebtedness of the Company and its Restricted Subsidiaries including, without limitation, the
Notes (as determined at the time of incurrence of such Indebtedness in good faith by the Company);
(k) contained in contracts for sales of Capital Stock or assets permitted by Section 4.10 with
respect to the assets or Capital Stock to be sold pursuant to such contract or in customary merger
or acquisition agreements (or any option to enter into such contract) for the purchase or
acquisition of Capital Stock or assets or any of the Company’s Subsidiaries by another Person; (1)
arising by reason of customary non-assignment provisions in agreements; (m) with respect to
Vehicles Receivables Financing, provided that such encumbrances or restrictions are customarily
required in such Vehicles Receivables Financing; and (n) under any agreement that extends, renews,
refinances or replaces the agreements containing the encumbrances or restrictions in the foregoing
paragraphs (a) through (h), or in this clause (n), provided that the terms and conditions of any
such encumbrances or restrictions are no more restrictive in any material respect than those under
or pursuant to the agreement evidencing the Indebtedness so extended, renewed, refinanced or
replaced.

     Section 4.9. Limitation on Indebtedness.

          (a) 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 incurrence of such Indebtedness taken as one period is equal to or greater than 2.0:1.0.

          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”):

     (1) Indebtedness of the Company (and guarantees by Guarantors of such
Indebtedness) under the Credit Facilities in an aggregate principal amount at any
one time outstanding not to exceed $1.5 billion;

     (2) Indebtedness of the Company pursuant to the Notes issued on the Issue Date
(and any Exchange Notes issued in exchange therefor) and Indebtedness of any
Guarantor pursuant to a Guarantee of such Notes;

     (3) Indebtedness of the Company or any Restricted Subsidiary outstanding on the
Issue Date;

49

 

     (4) Indebtedness of the Company or a Guarantor owing to a Restricted
Subsidiary; provided that any Indebtedness of the Company or a Guarantor owing to a
Restricted Subsidiary that is not a Guarantor, except pursuant to the customary cash
management procedures of the Company and its Restricted Subsidiaries, is made
pursuant to an intercompany note and is unsecured and, other than with respect to
Indebtedness owed to AutoNation Cayman Insurance Company, Ltd. with respect to
capital and surplus, is subordinated in right of payment from and after such time as
the Notes shall become due and payable (whether at Stated Maturity, acceleration or
otherwise) to the payment and performance of the Company’s obligations under the
Notes or such Guarantor’s obligations under its guarantee; 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 paragraph (4);

     (5) Indebtedness of a Restricted Subsidiary that is not a Guarantor owing to
the Company or another Restricted Subsidiary; provided that (except pursuant to the
customary cash management procedures of the Company and its Restricted Subsidiaries)
any such Indebtedness is made pursuant to an intercompany 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 paragraph (5), 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 paragraph (5);

     (6) guarantees of any Restricted Subsidiary made in accordance with the
provisions of Section 4.16;

     (7) 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 payment obligations of such Indebtedness then outstanding,
	 
	 	(B)	 	under any Currency Hedging Agreements, relating
to (1) Indebtedness of the Company or any Restricted Subsidiary and/or
(2) 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

50

 

	 	 	 	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;

     (8) 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 (including in connection with
an acquisition of a business by means of stock purchase, merger or otherwise) 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 at any one time outstanding pursuant to this
paragraph (8) not to exceed the greater of (a) $100.0 million and (b) 15% of the
Company’s Consolidated Tangible Net Worth; provided that the principal amount of any
Indebtedness permitted under this paragraph (8) 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;

     (9) Vehicle Inventory Indebtedness;

     (10) obligations arising from agreements by the Company or a Restricted
Subsidiary to provide for indemnification, customary purchase price closing
adjustments, guarantees (excluding guarantees for borrowed money), earn-outs,
hold-backs or other similar obligations, in each case, incurred in connection with
the acquisition or disposition of any business or assets of a Restricted Subsidiary;

     (11) Indebtedness evidenced by letters of credit or similar obligations in the
ordinary course of business to support the Company’s or any Restricted Subsidiary’s
insurance, obligations to employees under any deferred compensation program of the
Company or self-insurance obligations for workers’ compensation, surety bonds and
other similar insurance coverages;

     (12) Vehicle Receivables Indebtedness;

     (13) Indebtedness of the Company or any Guarantor under one or more Mortgage
Facilities in an aggregate principal amount not to exceed $500.0 million incurred
and outstanding after the Issue Date;

     (14) Indebtedness of a Restricted Subsidiary incurred and outstanding on the
date on which such Restricted Subsidiary was acquired by, or merged into, the
Company or any Restricted Subsidiary (other than Indebtedness Incurred (a) to
provide all or any portion of the funds utilized to consummate the transaction or
series of related transactions pursuant to which such Restricted Subsidiary became a
Restricted Subsidiary or was otherwise acquired by the Company or (b) otherwise in
connection with, or in contemplation of, such acquisition); provided, however, that
immediately after giving effect to such transaction on a pro forma basis, the
Company’s Consolidated Fixed Charge Coverage Ratio would be greater than such ratio
for the Company immediately prior to the transaction;

     (15) Indebtedness of the Company and its Restricted Subsidiaries in addition to
that described by the foregoing paragraphs (1) through (14) above, and any renewals,

51

 

extensions, substitutions, refinancings or replacements of such Indebtedness,
so long as the aggregate principal amount of all such Indebtedness shall not exceed
$150.0 million outstanding at any one time in the aggregate;

     (16) obligations in respect of letters of credit, performance and surety bonds
and completion guarantees provided by the Company or any Restricted Subsidiary of
the Company in the ordinary course of business;

     (17) the incurrence by the Company or any Restricted Subsidiary of
Indebtedness, to the extent that the net proceeds thereof are promptly (A) used to
purchase notes tendered pursuant to a Change of Control Offer or (B) deposited to
defease or satisfy and discharge the notes pursuant to Section 8.2 hereof; and

     (18) without limiting the terms of the foregoing paragraphs (1) through (17),
any renewals, extensions, substitutions, refundings, refinancings or replacements
(collectively, a “refinancing”) of any Indebtedness incurred pursuant to the
ratio test in the first paragraph of clause (a) of this Section 4.9 or described in
paragraphs (2), (3) and (6) 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) is not
increased by such refinancing plus the lesser of (a) 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 (b) 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.

          (b) For purposes of determining compliance with this Section 4.9, in the event that an item of
Indebtedness meets the criteria of more than one of the types of Indebtedness permitted by this
Section 4.9, the Company in its sole discretion shall classify or later reclassify in whole or in
part such item of Indebtedness and only be required to include the amount of such Indebtedness as
one of such types.

          (c) For purposes of determining any particular amount of Indebtedness under this Section 4.9,
(i) the accrual of interest, the accretion or amortization of original issue discount, the payment
of interest on any Indebtedness in the form of additional Indebtedness with the same terms, and the
payment of dividends on Redeemable Stock in the form of additional shares of the same class of
Redeemable Stock will not be deemed to be an incurrence of Indebtedness; and (ii) guarantees,
surety bonds, obligations with respect to letters of credit or Liens, in each case supporting
Indebtedness otherwise included in the determination of such particular amount will not be treated
as Indebtedness.

     Section 4.10. Limitation on Sale of Assets.

          (a) Company will not, and will not cause or permit any of its Restricted Subsidiaries to,
directly or indirectly, consummate an Asset Sale unless (1) at least 75% of the consideration from
such Asset Sale other than Asset Swaps is received in cash or Cash Equivalents and (2) 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
either (a) the Board of

52

 

Directors of the Company and evidenced by a board resolution or (b) the Board Designee and
evidenced by a certificate (or committee resolution, as the case may be), in each case whose
determination shall be conclusive); provided that the amount of:

          (i) any securities, notes or other obligations received by the
Company or any such Restricted Subsidiary in connection with such
transfer that are within 90 days converted, sold or exchanged by
the Company or such Restricted Subsidiary into cash (to the extent
of the cash received);

          (ii) any Designated Noncash Consideration received by the
Company or any of its Restricted Subsidiaries in the Asset Sale;
and

          (iii) any payment, or assumption, of Indebtedness which is
related to the assets sold in the Asset Sale

shall be deemed “cash” for purposes of this provision.

          With respect to an Asset Swap constituting an Asset Sale, the Company or any Restricted
Subsidiary shall be required to receive in cash (as such term is deemed to be defined for purposes
of this paragraph (a)) or Cash Equivalents an amount equal to 75% of the proceeds of the Asset Sale
which do not consist of like-kind assets acquired with the Asset Swap.

          (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 Indebtedness under the Credit Facilities, the Mortgage Facilities,
the Vehicle Receivables Indebtedness and/or the Vehicle Inventory Indebtedness then outstanding as
required by the terms thereof, or the Company determines not to apply such Net Cash Proceeds to the
permanent prepayment of such Indebtedness under the Credit Facilities, the Mortgage Facilities, the
Vehicle Receivables Indebtedness and/or the Vehicle Inventory Indebtedness, or if no such
Indebtedness under the Credit Facilities, the Mortgage Facilities, the Vehicle Receivables
Indebtedness and/or the Vehicle Inventory Indebtedness is then outstanding, then the Company or a
Restricted Subsidiary may within 30 days before or 365 days after the Asset Sale invest the Net
Cash Proceeds in properties and other assets that (as determined by either (a) the Board of
Directors of the Company and evidenced by a board resolution or (b) the Board Designee and
evidenced by a certificate (or committee resolution, as the case may be), in each case whose
determination shall be conclusive) replace the properties and assets that were the subject of the
Asset Sale or in properties and assets that will be used in a Permitted Business of the Company or
its Restricted Subsidiaries, or, if and to the extent that, within 365 days after the applicable
Asset Sale, the Company or a Restricted Subsidiary, as the case may be, has entered into and not
abandoned or rejected a binding agreement to purchase such properties or assets to replace the
properties and assets that were the subject of the applicable Asset Sale, the Company or a
Restricted Subsidiary may, within 180 days after the end of such 365 day period, invest the Net
Cash Proceeds in such properties or assets. The amount of such Net Cash Proceeds not used or
invested within 365 days or 545 days, as applicable, of the Asset Sale as set forth in this
paragraph constitutes “Excess Proceeds.”

          (c) When the aggregate amount of Excess Proceeds exceeds $50.0 million, the Company will apply
the Excess Proceeds to the repayment of the Notes 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
“Excess Proceeds Offer”) from all holders of the Notes in
accordance with the procedures

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	 	 	 	set forth in this Indenture in the maximum principal amount
(expressed as a multiple of $1,000) of Notes that may be purchased
out of an amount (the “Note Amount”) equal to the product of
such Excess Proceeds multiplied by a fraction, the numerator of which
is the outstanding principal amount of the Notes, and the denominator
of which is the sum of the outstanding principal amount (or accreted
value in the case of Indebtedness issued with original issue
discount) of the Notes and such Pari Passu Indebtedness (subject to
proration in the event such amount is less than the aggregate Excess
Proceeds Price (as defined herein) of all Notes 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 Note 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 Notes will be payable in cash in an amount equal to 100% of the
principal amount of the Notes plus accrued and unpaid interest, if any,
to the date (the “Excess Proceeds Offer Date”) such Excess
Proceeds Offer is consummated (the “Excess Proceeds Price”), in
accordance with the procedures set forth in this Indenture. To the
extent that the aggregate Excess Proceeds Price of the Notes tendered
pursuant to the Excess Proceeds Offer is less than the Note 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 Notes
and Pari Passu Indebtedness surrendered by Holders thereof exceeds the
amount of Excess Proceeds, the Trustee shall select the Notes to be
purchased on a pro rata basis. Upon the completion of the purchase of
all the Notes tendered pursuant to an Excess Proceeds Offer and the
completion of a Pari Passu Offer, the amount of Excess Proceeds, if
any, shall be reset at zero.

          (d) Upon the commencement of an Excess Proceeds Offer, the Company shall send, by first class
mail, a notice to the Trustee and to each Holder at its registered address. The notice shall
contain all instructions and materials necessary to enable such Holder to tender Notes pursuant to
the Excess Proceeds Offer. Any Excess Proceeds Offer shall be made to all Holders. The notice,
which shall govern the terms of the Excess Proceeds Offer, shall state: (1) that the Excess
Proceeds Offer is being made pursuant to this Section 4.10; (2) the Note Amount, the Excess
Proceeds Price and the date on which Notes tendered and accepted for payment shall be purchased,
which date shall be at least 30 days and no later than 60 days from the date such notice is mailed,
or such later date as may be necessary to comply with the requirements of the Exchange Act (the
“Excess Proceeds Payment Date”); (3) that any Note not tendered or accepted for payment
shall continue to accrete or accrue interest; (4) that, unless the Company defaults in making such
payment, any Note accepted for payment pursuant to the Excess Proceeds Offer shall cease to accrete
or accrue interest after the Excess Proceeds Payment Date; (5) that Holders electing to have a Note
purchased pursuant to the Excess Proceeds Offer may only elect to have

54

 

all of such Note purchased and may not elect to have only a portion of such Note purchased;
(6) that Holders electing to have a Note purchased pursuant to any Excess Proceeds Offer shall be
required to surrender the Note, with the form entitled “Option of Holder to Elect Purchase” on the
reverse of the Note completed, or transfer by book-entry transfer, to the Company, a depositary, if
appointed by the Company, or the Paying Agent at the address specified in the notice at least three
days before the Excess Proceeds Payment Date; (7) that Holders shall be entitled to withdraw their
election if the Company, the depositary or the Paying Agent, as the case may be, receives, not
later than the Excess Proceeds Payment Date, a notice setting forth the name of the Holder, the
principal amount of the Note the Holder delivered for purchase and a statement that such Holder is
withdrawing his election to have such Note purchased; (8) that, if the aggregate principal amount
of Notes surrendered by Holders exceeds the Note Amount, the Company shall select the Notes to be
purchased on a pro rata basis (with such adjustments as may be deemed appropriate by the Company so
that only Notes in denominations of $1,000, or integral multiples thereof, shall be purchased); and
(9) that Holders whose Notes were purchased only in part shall be issued new Notes equal in
principal amount to the unpurchased portion of the Notes surrendered (or transferred by book-entry
transfer). The Company shall comply with the requirements of Rule 14e-1 under the Exchange Act and
any other securities laws and regulations thereunder to the extent such laws and regulations are
applicable in connection with the repurchase of the Notes as a result of an Asset Sale.

          (e) On the Excess Proceeds Payment Date, the Company shall, to the extent lawful: (1) accept
for payment all Notes or portions thereof properly tendered pursuant to the Excess Proceeds Offer;
(2) deposit with the Paying Agent an amount equal to the Excess Proceeds Price in respect of all
Notes or portions thereof so tendered; and (3) deliver or cause to be delivered to the Trustee the
Notes so accepted together with an Officers’ Certificate stating the aggregate principal amount of
Notes or portions thereof being repurchased by the Company. The Company shall publicly announce the
results of the Excess Proceeds Offer on the Excess Proceeds Payment Date.

          (f) The Paying Agent shall promptly mail to each Holder of Notes so tendered the Excess
Proceeds Price for such Notes, and the Trustee shall promptly authenticate pursuant to an
Authentication Order and mail (or cause to be transferred by book entry) to each Holder a new Note
equal in principal amount to any unrepurchased portion of the Notes surrendered, if any; provided
that each such new Note shall be in a principal amount of $1,000 or an integral multiple thereof.
However, if the Excess Proceeds Payment Date is on or after an interest record date and on or
before the related interest payment date, any accrued and unpaid interest shall be paid to the
Person in whose name a Note is registered at the close of business on such record date, and no
Additional Interest shall be payable to Holders who tender Notes pursuant to the Excess Proceeds
Offer.

     Section 4.11. 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, a Wholly Owned Restricted
Subsidiary or a Restricted Subsidiary that is a Guarantor) unless such transaction or series of
related transactions is entered into in good faith and in writing and

	 	(1)	 	such transaction or series of related transactions is on terms
or pursuant to arrangements that existed as of the Issue Date, or on terms or
pursuant to arrangements that existed as of the Issue Date but which are
thereafter amended or modified, provided that, as amended or modified, such
transaction or series of transactions is no more disadvantageous to Holders
than the original terms or arrangements;

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	 	(2)	 	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,
	 
	 	(3)	 	with respect to any transaction or series of related
transactions not covered by clause (1) above involving aggregate value in
excess of $25.0 million, the Company delivers an officers’ certificate to the
Trustee certifying that such transaction or series of related transactions
complies with paragraph (2) above, and
	 
	 	(4)	 	with respect to any transaction or series of related
transactions not covered by paragraph (1) above involving aggregate value in
excess of $50.0 million, either

	 	(A)	 	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, or
	 
	 	(B)	 	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 is fair to the Company or such Restricted
Subsidiary from a financial point of view;

provided, however, that this Section 4.11 shall not apply to (i) employee benefit and perquisite
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 or Permitted Payment or Permitted Investment pursuant to Section 4.7; (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; and (v) loans or advances to officers of the Company in the ordinary
course of business not to exceed $5.0 million in any calendar year.

     Section 4.12. 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 upon any property or assets (including any
intercompany notes) of the Company or any Restricted Subsidiary owned on the Issue Date or acquired
thereafter, or assign or convey any right to receive any income or profits therefrom, unless the
Notes (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 Notes shall have with respect to such Subordinated Indebtedness) the obligation or
liability secured by such Lien except for any Permitted Liens.

          Notwithstanding the foregoing, any Lien securing the Notes granted pursuant to this covenant
shall be automatically and unconditionally released and discharged upon the release by the 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

56

 

payment in full of all obligations under such Indebtedness, at such time as the 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 4.13. Limitation on Unrestricted Subsidiaries.

          The Company may designate after the Issue Date any Subsidiary as an “Unrestricted Subsidiary”
(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 an Investment (other
than a Permitted Investment) at the time of Designation (assuming the
effectiveness of such Designation) pursuant to paragraph (a) of Section 4.7 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 either (a) the Board of
Directors of the Company and evidenced by a board resolution or (b) the Board
Designee and evidenced by a certificate (or committee resolution, as the case
may be), in each case whose determination shall be conclusive;
	 
	 	(c)	 	the Company would be permitted to incur $1.00 of additional
Indebtedness (other than Permitted Indebtedness) pursuant to Section 4.9 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 Notes; and
	 
	 	(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 4.7 for all purposes of this Indenture in the
Designation Amount.

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The Company shall not and shall not cause or permit any Restricted Subsidiary to at any time

	 	(a)	 	provide credit support for, guarantee 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
	 
	 	(b)	 	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 as Unrestricted Subsidiaries.

          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 4.9.

          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.

     Section 4.14. Corporate Existence.

          Subject to Article V hereof, the Company shall do or cause to be done all things necessary to
preserve and keep in full force and effect (a) its corporate existence, and the corporate,
partnership or other existence of each of its Subsidiaries, in accordance with the respective
organizational documents (as the same may be amended from time to time) of the Company or any such
Subsidiary and (b) the rights (charter and statutory), licenses and franchises of the Company and
its Subsidiaries; provided, however, that the Company shall not be required to preserve any such
right, license or franchise, or the corporate, partnership or other existence of any of its
Subsidiaries, if the Board of Directors of the Company shall determine that the preservation
thereof is no longer desirable in the conduct of the business of the Company and its Subsidiaries,
taken as a whole, and that the loss thereof is not adverse in any material respect to the Holders
of the Notes.

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     Section 4.15. Purchase of Notes upon Change of Control.

          If a Change of Control occurs, each Holder will have the right to require that the Company
purchase all or any part (in integral multiples of $1,000) of such Holder’s Notes pursuant to the
offer described below (the “Change of Control Offer”). In the Change of Control Offer, the
Company will offer to purchase all of the Notes, at a purchase price (the “Change of Control
Purchase Price”) in cash in an amount equal to 101% of the principal amount of such Notes (the
“Change of Control Payment”), plus accrued and unpaid interest, if any, to the date of
purchase (the “Change of Control Purchase Date”) (subject to the rights of Holders of
record on relevant record dates to receive interest due on an interest payment date).

          Within 30 days after any Change of Control or, at the Company’s option, prior to such Change
of Control but after it is publicly announced, the Company must notify the Trustee and give written
notice of the Change of Control to each Holder, by first-class mail, postage prepaid, at his, her
or its address appearing in the security register. The notice must state, among other things,

          (i) that a Change of Control has occurred, or will occur, and
the date, or expected date, of such event;

          (ii) the circumstances and relevant facts regarding such
Change of Control, including information with respect to pro forma
historical income, cash flow and capitalization after giving effect
to such Change of Control;

          (iii) the purchase price and the 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 the notice is mailed, or such
later date as is necessary to comply with requirements under the
Exchange Act;

          (iv) that any Note not tendered will continue to accrue
interest;

          (v) that, unless the Company defaults in the payment of the
Change of Control Purchase Price, any Notes accepted for payment
pursuant to the Change of Control Offer will cease to accrue
interest after the Change of Control Purchase Date; and

          (vi) other procedures that a Holder must follow to accept a
Change of Control Offer or to withdraw acceptance of the Change of
Control Offer.

          On the Change of Control Purchase Date, the Company will, to the extent lawful, (i) accept for
payment all Notes or portions thereof properly tendered pursuant to the Change of Control Offer,
(ii) deposit with the Paying Agent an amount equal to the Change of Control Purchase Price in
respect of all Notes or portions thereof so tendered and (iii) deliver or cause to be delivered to
the Trustee the Notes so accepted together with an Officers’ Certificate stating the aggregate
principal amount of Notes or portions thereof being purchased by the Company. The Paying Agent will
promptly mail to each Holder of Notes so tendered the Change of Control Purchase Price for such
Notes, and the Trustee will promptly authenticate and mail (or cause to be transferred by book
entry) to each Holder a new Note equal in principal amount to any unpurchased portion of the Notes
surrendered; provided that each such new Note will be issued in an original principal amount in
denominations of $1,000 or an integral

59

 

multiple thereof. The Company will publicly announce the results of the Change of Control
Offer on or as soon as practicable after the Change of Control Purchase Date. The Company shall not
be required to make a Change of Control Offer upon 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 applicable to a Change of Control Offer made by the Company and purchases all Notes
validly tendered and not withdrawn under such Change of Control Offer.

          In addition, the Company shall not be required to make a Change of Control Offer upon a Change
of Control if a notice of redemption has been given pursuant to Section 3.7, provided that there is
no default in the payment of the applicable redemption price.

          The Change of Control provisions described above will be applicable whether or not any other
provisions of this Indenture are applicable. Except as described above with respect to a Change of
Control, this Indenture does not contain provisions that permit the Holders of the Notes to require
the Company to repurchase or redeem the Notes in the event of a takeover, recapitalization or
similar transaction.

          The Paying Agent shall promptly mail to each Holder of Notes so tendered the Change of Control
Payment for such Notes, and the Trustee shall promptly authenticate pursuant to an Authentication
Order and mail (or cause to be transferred by book entry) to each Holder a new Note equal in
principal amount to any unrepurchased portion of the Notes surrendered, if any; provided that each
such new Note shall be in a principal amount of $1,000 or an integral multiple thereof. However, if
the Change of Control Purchase Date is on or after an interest record date and on or before the
related interest payment date, any accrued and unpaid interest shall be paid to the Person in whose
name a Note is registered at the close of business on such record date, and no Additional Interest
shall be payable to Holders who tender Notes pursuant to the Change of Control Offer.

     Section 4.16. Limitation on Guarantees of Indebtedness by Restricted Subsidiaries

          (a) 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
simultaneously executes and delivers a supplemental indenture to this Indenture providing for a
Guarantee of the Notes on the same terms as the guarantee of such Indebtedness except that (A) such
guarantee need not be secured unless required pursuant to Section 4.12 and (B) if such Indebtedness
is by its terms expressly subordinated to the Notes, 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 Notes at least to the same extent as such
Indebtedness is subordinated to the Notes.

          The preceding paragraph shall not be applicable to any guarantees of any Restricted Subsidiary
(i) permitted to be incurred pursuant to clauses (1), (4), (5) and (7) of Section 4.9 hereof; or
(ii) given to a bank or trust company or any commercial banking institution that is a member of the
U.S. Federal Reserve System (or any branch, subsidiary or Affiliate thereof), in connection with
the operation of cash management programs established for its benefit or that of any Restricted
Subsidiary.

          (b) Notwithstanding the foregoing, any Guarantee by a Restricted Subsidiary of the Notes 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 such

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Restricted Subsidiary is released from all guarantees, if any, by it of other Indebtedness of
the Company or any Restricted Subsidiary, (ii) the Designation of a Restricted Subsidiary as an
Unrestricted Subsidiary in compliance with this Indenture and (iii) with respect to any Guarantees
created after the Issue Date, the release by the holders of the Indebtedness of the Company
described in the preceding clause (a) above of 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 guaranteed by such Restricted
Subsidiary or (B) the holders of all such other Indebtedness which is guaranteed by such Restricted
Subsidiary also release their guarantee by such Restricted Subsidiary (including any deemed release
upon payment in full of all obligations under such Indebtedness).

     Section 4.17. Suspension Period.

          During the Suspension Period, the provisions of this Indenture under Sections 4.7, 4.8, 4.9,
4.10, 4.11, 4.13, 4.15 and the requirement set forth in paragraph (3) of Section 5.1 will no longer
be applicable to the Company and its Restricted Subsidiaries.

          “Suspension Period” means the period (a) beginning on the date that:

	 	(1)	 	the Notes have an Investment Grade rating;
	 
	 	(2)	 	no Default and Event of Default has occurred and is continuing;
and
	 
	 	(3)	 	the Company has delivered an Officers’ Certificate to the
Trustee certifying that the conditions set forth in clauses (1) and (2) above
are satisfied;

and (b) ending on the date (the “Reversion Date”) that neither Moody’s nor Standard
& Poor’s has an Investment Grade rating on the Notes. The Company shall notify the
Trustee in writing of any Reversion Date.

          On the Reversion Date, all Indebtedness incurred during the Suspension Period will be
classified to have been incurred pursuant to clause (a) of Section 4.9 of this Indenture or one of
the clauses set forth in the definition of Permitted Indebtedness (to the extent such Indebtedness
would be permitted to be incurred thereunder as of the Reversion Date and after giving effect to
Indebtedness incurred prior to the Suspension Period and outstanding on the Reversion Date). To the
extent any Indebtedness would not be so permitted to be incurred pursuant to clause (a) of Section
4.9 of this Indenture or any of the clauses set forth in the definition of Permitted Indebtedness,
such Indebtedness will be deemed to have been outstanding on the Issue Date, so that it is
classified as Permitted Indebtedness under clause (3) of the definition of Permitted Indebtedness
and permitted to be refinanced under clause (16) of the definition of Permitted Indebtedness.

          For purposes of calculating the amount available to be made as Restricted Payments under
clause (3) of paragraph (a) of Section 4.7, calculations under that clause will be made with
reference to the Issue Date as set forth in that clause. Accordingly, Restricted Payments made
during the Suspension Period will reduce the amount available to be made as Restricted Payments
under such clause (3) and the events specified in subclauses (A) through (F) of such clause (3)
that occur during the Suspension Period will increase the amount available to be made as Restricted
Payments under such clause (3).

          For purposes of Section 4.10, on the Reversion Date, the amount of Excess Proceeds will be
reset to zero.

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ARTICLE V

SUCCESSORS

Section 5.1. Consolidation, Merger and Sale of Assets.

          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”
(as such term is used in Sections 13(d) and 14(d) of the Exchange Act) of Persons, 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 Company and its Restricted Subsidiaries on a Consolidated basis to any other Person or
“group” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) of Persons, unless
at the time and after giving effect thereto

	 	(1)	 	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 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 Notes and this Indenture and the
Registration Rights Agreement, as the case may be, and the Notes and this
Indenture and the Registration Rights Agreement will remain in full force and
effect as so supplemented (and any Guarantees will be confirmed as applying to
such Surviving Entity’s obligations);
	 
	 	(2)	 	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;
	 
	 	(3)	 	immediately after giving effect to such transaction on a pro
forma basis, the Company (or the Surviving Entity if the Company is not the
continuing obligor under this Indenture) could incur $1.00 of additional
Indebtedness (other than Permitted Indebtedness) under Section 4.9 or if the
Company could not incur $1.00 of additional Indebtedness (other than Permitted
Indebtedness) under Section 4.9, the Fixed Charge Coverage Ratio of the Company
(or the Surviving Entity if the Company is not the continuing obligor under the
Indenture) on a pro forma basis would be greater than such ratio for the
Company immediately prior to such transaction;
	 
	 	(4)	 	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

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	 	 	 	that its Guarantee shall apply to such Person’s obligations under this
Indenture and the Notes; and
	 	(5)	 	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 therein provided for relating to such
transaction have been complied with.

     Section 5.2. Successor Person Substituted.

          In the event of any transaction (other than a lease) described in and complying with the
conditions listed in the immediately preceding paragraph in which the Company is not the continuing
corporation, the successor Person formed or remaining or to which such transfer is made shall
succeed to, and be substituted for, and may exercise every right and power of, the Company and the
Company will be discharged (other than in a transaction that results in the transfer of assets
constituting or accounting for less than 95% of the Consolidated assets (as of the last balance
sheet date available to the Company) of the Company or the Consolidated revenue of the Company (as
of the last 12-month period for which financial statements are available)) from all obligations and
covenants under this Indenture and the Notes and the Registration Rights Agreement.

ARTICLE VI

DEFAULTS AND REMEDIES

     Section 6.1. Events of Default.

          The occurrence of any of the following will constitute an “Event of Default:”

	 	(1)	 	there shall be a default in the payment of any interest on any
Note when it becomes due and payable, and such default shall continue for a
period of 30 days;
	 
	 	(2)	 	there shall be a default in the payment of the principal of (or
premium, if any, on) any Note at its Maturity (upon acceleration, optional or
mandatory redemption, if any, required repurchase or otherwise);
	 
	 	(3)	 	(a) 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 paragraph (1), (2) or
in clause (b) or (c) of this paragraph (3)) and such default or breach shall
continue for a period of 30 days after written notice has been given, by
certified mail, (1) to the Company by the Trustee or (2) to the Company and the
Trustee by the holders of at least 25% in aggregate principal amount of the
outstanding Notes; (b) there shall be a default in the performance or breach of
the provisions described in Section 5.1; or (c) the Company shall have failed
to make or consummate a Change of Control Offer in accordance with the
provisions of Section 4.15;

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	 	(4)	 	(a) any default in the payment of the principal, premium, if
any, or interest on any Indebtedness 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 $50.0 million when
the same shall become due and payable in full and such default shall have
continued after any applicable grace period and shall not have been cured or
waived and, if not already matured at its final maturity in accordance with its
terms, the holder of such Indebtedness shall have the right to accelerate such
Indebtedness or (b) an event of default as defined in any of the agreements,
indentures or instruments described in clause (a) of this paragraph (4) shall
have occurred and the Indebtedness thereunder, if not already matured at its
final maturity in accordance with its terms, shall have been accelerated;
	 
	 	(5)	 	any Guarantee from any Guarantor that is a Significant
Restricted Subsidiary shall for any reason cease to be, or shall for any reason
be asserted in writing by such 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;
	 
	 	(6)	 	one or more judgments, orders or decrees of any court or
regulatory or administrative agency for the payment of money in excess of $50.0
million, either individually or in the aggregate (exclusive of any portion of
any such payment covered by insurance), shall be rendered against the Company
or any Restricted Subsidiary or any of their respective properties and shall
not be discharged 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;
	 
	 	(7)	 	any holder or holders of at least $50.0 million in aggregate
principal amount of Indebtedness of the Company or any Restricted Subsidiary
after a default under such Indebtedness shall notify the Trustee of the
intended sale or disposition of any assets of the Company or any Restricted
Subsidiary that have been pledged to or for the benefit of such holder or
holders to secure such Indebtedness or shall commence proceedings, or take any
action (including by way of set-off), to retain in satisfaction of such
Indebtedness or to collect on, seize, dispose of or apply in satisfaction of
Indebtedness, assets of the Company or any Restricted Subsidiary (including
funds on deposit or held pursuant to lock-box and other similar arrangements);
	 
	 	(8)	 	there shall have been the entry by a court of competent
jurisdiction of (a) 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 (b) 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
affairs, and any such decree or order for relief shall

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	 	 	 	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
	 
	 	(9)	 	(a) 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,

	 
	 	(b)	 	the Company or any Significant Restricted
Subsidiary consents to the entry of a decree or order for relief in
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,
	 
	 	(c)	 	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,
	 
	 	(d)	 	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
	 
	 	(e)	 	the Company or any Significant Restricted
Subsidiary takes any corporate action in furtherance of any such
actions in this paragraph (9).

     Section 6.2. Acceleration.

          If an Event of Default (other than as specified in clauses (8) and (9) of Section 6.1) shall
occur and be continuing with respect to this Indenture as it relates to Floating Rate Notes or
Fixed Rate Notes, as the case may be, the Trustee or the Holders of not less than 25% in aggregate
principal amount of Floating Rate Notes or Fixed Rate Notes, as the case may be, 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 such Notes to be due and payable immediately, by a
notice in writing to the Company (and to the Trustee if given by the Holders) 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 (8) or (9) of Section 6.1 occurs and is
continuing, then all the Notes shall ipso facto become and be due and payable immediately in an
amount equal to the principal amount of the Notes, together with accrued and unpaid interest, if
any, to the date the Notes 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 by appropriate judicial proceedings.

          After a declaration of acceleration, but before a judgment or decree for payment of the money
due has been obtained by the Trustee, the Holders of a majority in aggregate principal amount of
Notes outstanding as to which a notice of acceleration has been given may, 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 (1) all sums paid or advanced by the Trustee under this
Indenture and the reasonable

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	 	 	 	compensation, expenses, disbursements and advances of the Trustee, its
agents and counsel, (2) all overdue interest on all such Notes then
outstanding, (3) the principal of, and premium, if any, on any such Notes
then outstanding which have become due otherwise than by such declaration of
acceleration and interest thereon at the rate borne by such Notes and (4) to
the extent that payment of such interest is lawful, interest upon overdue
interest at the rate borne by such Notes;
	 	(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 such Notes which have become due solely by
such declaration of acceleration, have been cured or waived as provided in this
Indenture.

          No such rescission shall affect any subsequent default or impair any right consequent thereon.

          The Holders of not less than a majority in aggregate principal amount of Floating Rate Notes
or Fixed Rate Notes outstanding may on behalf of the Holders of all outstanding Notes of the
respective series waive any past default under this Indenture and its consequences, except a
default (1) in the payment of the principal of, premium, if any, or interest on any Note of such
series (which may only be waived with the consent of each Holder affected) or (2) in respect of a
covenant or provision which under this Indenture cannot be modified or amended without the consent
of the Holder affected by such modification or amendment.

          No Holder has any right to institute any proceedings with respect to this Indenture or any
remedy thereunder, unless the Holders of at least 25% in aggregate principal amount of the
outstanding Notes of that series have made written request, and offered reasonable indemnity, to
the Trustee to institute such proceeding as Trustee under such Notes and this Indenture, the
Trustee has failed to institute such proceeding within 15 days after receipt of such notice and the
Trustee, within such 15-day period, has not received directions inconsistent with such written
request by Holders of a majority in aggregate principal amount of such Notes outstanding. Such
limitations do not, however, apply to a suit instituted by a Holder for the enforcement of the
payment of the principal of, premium, if any, or interest on such Note on or after the respective
due dates expressed in such Note.

     Section 6.3. Other Remedies.

          If an Event of Default occurs and is continuing, the Trustee may pursue any available remedy
to collect the payment of principal, premium, if any, Additional Interest, if any, and interest on
the Notes or to enforce the performance of any provision of the Notes or this Indenture.

          The Trustee may maintain a proceeding even if it does not possess any of the Notes or does not
produce any of them in the proceeding. A delay or omission by the Trustee or any Holder of a Note
in exercising any right or remedy accruing upon an Event of Default shall not impair the right or
remedy or constitute a waiver of or acquiescence in the Event of Default. All remedies are
cumulative to the extent permitted by law.

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     Section 6.4. Waiver of Past Defaults.

          The Holders of not less than a majority in aggregate principal amount of the outstanding Notes
may, on behalf of the Holders of all the Notes of that series, waive any past Defaults, except a
Default in the payment of the principal of, premium, if any, Additional Interest, if any, or
interest on any Note of that series, or in respect of a covenant or provision which under this
Indenture cannot be modified or amended without the consent of the Holder of each Note of that
series outstanding. Upon 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 6.5. Control by Majority.

          Holders of a majority in principal amount of the then outstanding Notes of that series may
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 it. Holders may not enforce this
Indenture or the Notes, however, except as provided in this Indenture. In addition, the Trustee may
refuse to follow any direction that conflicts with law or this Indenture or that the Trustee
determines may be unduly prejudicial to the rights of other Holders of Notes of that series or that
may involve the Trustee in personal liability.

     Section 6.6. Limitation on Suits.

          A Holder of a Note may not use this Indenture to prejudice the rights of another Holder of a
Note or to obtain a preference or priority over another Holder of a Note.

     Section 6.7. Rights of Holders of Notes to Receive Payment.

          Notwithstanding any other provision of this Indenture, the right of any Holder of a Note to
receive payment of principal, premium and Additional Interest, if any, and interest on the Note, on
or after the respective due dates expressed in the Note (including in connection with an offer to
purchase), or to bring suit for the enforcement of any such payment on or after such respective
dates, shall not be impaired or affected without the consent of such Holder.

     Section 6.8. Collection Suit by Trustee.

          If an Event of Default specified in Section 6.1(1) or (2) occurs and is continuing, the
Trustee is authorized to recover judgment in its own name and as trustee of an express trust
against the Company for the whole amount of principal of, premium and Additional Interest, if any,
and interest remaining unpaid on the Notes and interest on overdue principal and, to the extent
lawful, interest and 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.

     Section 6.9. Trustee May File Proofs of Claim.

          The Trustee is authorized to file such proofs of claim and 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 the Holders of the Notes allowed in any judicial proceedings relative to the Company
(or any other obligor upon the Notes), its creditors or its property and shall be entitled and
empowered to collect, receive and distribute any money or other property payable or deliverable on
any such claims and any

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custodian 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 to the Trustee any amount due to 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 7.7. To the extent that the payment of any such
compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any
other amounts due the Trustee under Section 7.7 out of the estate in any such proceeding, shall be
denied for any reason, payment of the same shall be secured by a Lien on, and shall be paid out of,
any and all distributions, dividends, money, securities and other properties that the Holders may
be entitled to receive in such proceeding whether in liquidation or under any plan of
reorganization or arrangement or otherwise. 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 Notes or the rights of any
Holder, or to authorize the Trustee to vote in respect of the claim of any Holder in any such
proceeding.

     Section 6.10. Priorities.

          If the Trustee collects any money pursuant to this Article, it shall pay out the money in the
following order:

          First: to the Trustee, its agents and counsel for amounts due under Section
7.7, including payment of all compensation, expense and liabilities incurred, and
all advances made, by the Trustee and the costs and expenses of collection;

          Second: to Holders of Notes for amounts due and unpaid on the Notes for
principal, premium and Additional Interest, if any, and interest, ratably, without
preference or priority of any kind, according to the amounts due and payable on the
Notes for principal, premium and Additional Interest, if any, and interest,
respectively; and

          Third: to the Company or to such party as a court of competent jurisdiction
shall direct.

          The Trustee may fix a record date and payment date for any payment to Holders of Notes
pursuant to this Section 6.10.

     Section 6.11. Undertaking for Costs.

          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 or omitted by it as a Trustee, a court in its discretion
may require the filing by any party litigant in the suit of an undertaking to pay the costs of the
suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’
fees and expenses, against any party litigant in the suit, having due regard to the merits and good
faith of the claims or defenses made by the party litigant. This Section does not apply to a suit
by the Trustee, a suit by a Holder of a Note pursuant to Section 6.7, or a suit by Holders of more
than 10% in principal amount of the then outstanding Notes.

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ARTICLE VII

TRUSTEE

     Section 7.1. Duties of Trustee.

          (a) If 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, as a prudent person would exercise or use under the circumstances in the conduct of
such person’s own affairs.

          (b) Except during the continuance of an Event of Default:

          (i) the duties of the Trustee shall be determined solely by
the express provisions of this Indenture and the Trustee need
perform only those duties that are specifically set forth in this
Indenture and no others, and no implied covenants or obligations
shall be read into this Indenture against the Trustee; and

          (ii) in the absence of bad faith 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 reasonably conforming to the
requirements of this Indenture. However, in the case of any such
certificates or opinions which by any provision hereof are
specifically required to be furnished to the Trustee, the Trustee
shall examine the certificates and opinions to determine whether or
not they reasonably conform to the requirements of this Indenture
(but need not confirm or investigate the accuracy of any
mathematical calculations or other facts stated therein).

          (c) The Trustee may not be relieved from liabilities for its own negligent action, its own
negligent failure to act, or its own willful misconduct, except that:

          (i) this paragraph does not limit the effect of paragraph (b)
of this Section 7.1;

          (ii) the Trustee shall not be liable for any error of judgment
made in good faith by a Responsible Officer, unless it is proved by
a court of competent jurisdiction that the Trustee was negligent in
ascertaining the pertinent facts; and

          (iii) 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 received by it pursuant to Section 6.5.

          (d) Whether or not therein expressly so provided, every provision of this Indenture that in
any way relates to the Trustee is subject to the paragraphs of this Section.

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          (e) The Trustee shall not be liable for interest on any money received by it except as the
Trustee may agree in writing with the Company. Money held in trust by the Trustee need not be
segregated from other funds except to the extent required by law.

     Section 7.2. Rights of Trustee.

          (a) The Trustee may conclusively rely upon any document believed by it to be genuine and to
have been signed or purportedly presented by the proper Person. The Trustee need not investigate
any fact or matter stated in the document.

          (b) Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate
or an Opinion of Counsel or both. The Trustee shall not be liable for any action it takes or omits
to take in good faith in reliance on such Officers’ Certificate or Opinion of Counsel. The Trustee
may consult with counsel of its selection and the advice of such counsel or any Opinion of Counsel
shall be full and complete authorization and protection from liability in respect of any action
taken, suffered or omitted by it hereunder in good faith and in reliance thereon.

          (c) The Trustee may act through its attorneys and agents and shall not be responsible for the
misconduct or negligence of any agent appointed with due care.

          (d) The Trustee shall not be liable for any action it takes or omits to take in good faith
that it believes to be authorized or within the rights or powers conferred upon it by this
Indenture.

          (e) Unless otherwise specifically provided in this Indenture, any demand, request, direction
or notice from the Company shall be sufficient if signed by an Officer of the Company.

          (f) No provision of this Indenture shall require the Trustee to expend or risk its own funds
or incur any liability. The Trustee shall be under no obligation to exercise any of its rights or
powers under this Indenture at the request or direction of any of the Holders unless such Holders
shall have offered to the Trustee security or indemnity satisfactory to the Trustee against any
loss, liability or expense that might be incurred by it in compliance with such request or
direction.

          (g) The Trustee shall not be bound to make any investigation into the facts or matters stated
in any document, but the Trustee, in its judgment, may make such further inquiry or investigation
into such facts or matters as it may see 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, at reasonable times upon reasonable notice to the Company, personally or by agent
or attorney at the sole cost of the Company, and shall incur no liability or additional liability
of any kind by reason of such inquiry or investigation.

          (h) 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 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.

          (i) The Trustee shall not be deemed to have notice of any Default or Event of Default unless a
Responsible Officer of the Trustee has actual knowledge thereof or unless written notice of any
event which is in fact such a Default is received by the Trustee at the Corporate Trust Office of
the Trustee, and such notice references the Notes and this Indenture.

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          (j) The rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to, and shall be
enforceable by, the Trustee in each of its capacities hereunder, and to each agent, custodian and
other Person employed to act hereunder.

     Section 7.3. Individual Rights of Trustee.

          The Trustee in its individual or any other capacity may become the owner or pledgee of Notes
and may otherwise deal with the Company or any Affiliate of the Company with the same rights it
would have if it were not Trustee. However, in the event that the Trustee acquires any conflicting
interest it must eliminate such conflict within 90 days, apply to the Commission for permission to
continue as trustee or resign. Any Agent may do the same with like rights and duties. The Trustee
is also subject to Sections 7.10 and 7.11.

     Section 7.4. Trustee’s Disclaimer.

          The Trustee shall not be responsible for and makes no representation as to the validity or
adequacy of this Indenture or the Notes, it shall not be accountable for the Company’s use of the
proceeds from the Notes or any money paid to the Company or upon the Company’s direction under any
provision of this Indenture, it shall not be responsible for the use or application of any money
received by any Paying Agent other than the Trustee, and it shall not be responsible for any
statement or recital herein or any statement in the Notes or any other document in connection with
the sale of the Notes or pursuant to this Indenture other than its certificate of authentication.

     Section 7.5. Notice of Defaults.

          If a Default or Event of Default occurs and is continuing and if it is actually known to a
Responsible Officer of the Trustee, the Trustee shall mail to Holders of Notes as it appears on the
Registrar a notice of the Default or Event of Default within 90 days after it occurs. Except in the
case of a Default or Event of Default relating to the payment of principal or interest on any Note,
the Trustee may withhold the notice if it determines, in good faith, that withholding the notice is
in the interests of the Holders of the Notes.

     Section 7.6. Reports by Trustee to Holders of the Notes.

          Within 60 days after each May 15 beginning with May 15, 2007, and for so long as Notes remain
outstanding, the Trustee shall mail to the Holders of the Notes a brief report dated as of such
reporting date that complies with TIA ss. 313(a) (but if no event described in TIA ss. 313(a) has
occurred within the twelve months preceding the reporting date, no report need be transmitted). The
Trustee also shall comply with TIA ss. 313(b)(2). The Trustee shall also transmit by mail all
reports as required by TIA ss. 313(c).

          A copy of each report at the time of its mailing to the Holders of Notes shall be mailed to
the Company and filed with the Commission and each stock exchange on which the Notes are listed in
accordance with TIA ss. 313(d). The Company shall promptly notify the Trustee when the Notes are
listed on any stock exchange and of any delisting thereof.

     Section 7.7. Compensation and Indemnity.

          The Company shall pay to the Trustee from time to time reasonable compensation for its
acceptance of this Indenture and services as the Company and the Trustee shall from time to time
agree in

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writing. The Trustee’s compensation shall not be limited by any law on compensation of a
trustee of an express trust. The Company shall reimburse the Trustee promptly upon request for all
reasonable disbursements, advances and expenses incurred or made by it in addition to the
compensation for its services. Such expenses shall include the reasonable compensation,
disbursements and expenses of the Trustee’s agents and counsel.

          The Company shall indemnify the Trustee and any predecessor Trustee against any and all
losses, damages, claims, liabilities or expenses incurred by it including taxes (other than taxes
based upon, measured by or determined by the profits, income or capital of the Trustee) arising out
of or in connection with the acceptance or administration of its duties under this Indenture,
including the costs and expenses of enforcing this Indenture against the Company (including this
Section 7.7) and defending itself against any claim (whether asserted by the Company or any Holder
or any other person) or liability in connection with the acceptance, exercise or performance of any
of its powers or duties hereunder, except to the extent any such loss, damage, claim, liability or
expense is determined by a court of competent jurisdiction to have been caused by its own
negligence or bad faith. The Trustee shall notify the Company promptly of any claim which a
Responsible Officer has actually received for which it may seek indemnity. Failure by the Trustee
to so notify the Company shall not relieve the Company of its obligations hereunder, except to the
extent that the Company is actually prejudiced thereby. The Company shall defend the claim and the
Trustee shall cooperate in the defense. The Trustee may have separate counsel and the Company shall
pay the reasonable fees and expenses of such counsel. The Company need not pay for any settlement
made without its consent, which consent shall not be unreasonably withheld. The Company need not
reimburse any expense or indemnify against any loss, liability or expense incurred by the Trustee
through the Trustee’s own willful misconduct, negligence or bad faith.

          The obligations of the Company under this Section 7.7 shall survive the satisfaction and
discharge of this Indenture.

          To secure the Company’s payment obligations in this Section, the Trustee shall have a Lien
prior to the Notes on all money or property held or collected by the Trustee, except that held in
trust to pay principal and interest on particular Notes. Such Lien shall survive the satisfaction
and discharge of this Indenture.

          When the Trustee incurs expenses or renders services after an Event of Default specified in
Section 6.1(8) or (9) occurs, the expenses and the compensation for the services (including the
fees and expenses of its agents and counsel) are intended to constitute expenses of administration
under any Bankruptcy Law.

          The Trustee shall comply with the provisions of TIA ss. 313(b)(2) to the extent applicable.

     Section 7.8. Replacement of Trustee.

          A resignation or removal of the Trustee and appointment of a successor Trustee shall become
effective only upon the successor Trustee’s acceptance of appointment as provided in this Section
7.8.

          The Trustee may resign in writing at any time and be discharged from the trust hereby created
by so notifying the Company. The Holders of Notes of a majority in principal amount of the then
outstanding Notes may remove the Trustee by so notifying the Trustee and the Company in writing.
The Company may remove the Trustee if: (a) the Trustee fails to comply with Section 7.10; (b) the
Trustee is

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adjudged a bankrupt or an insolvent or an order for relief is entered with respect to the
Trustee under any Bankruptcy Law; (c) a custodian or public officer takes charge of the Trustee or
its property; or (d) the Trustee becomes incapable of acting.

          If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any
reason, the Company shall promptly appoint a successor Trustee. Within one year after the successor
Trustee takes office, the Holders of a majority in principal amount of the then outstanding Notes
may appoint a successor Trustee to replace the successor Trustee appointed by the Company.

          If a successor Trustee does not take office within 60 days after the retiring Trustee resigns
or is removed, the retiring Trustee, the Company, or the Holders of Notes of at least 10% in
principal amount of the then outstanding Notes may petition any court of competent jurisdiction for
the appointment of a successor Trustee, at the expense of the Company.

          If the Trustee, after written request by any Holder of a Note who has been a Holder of a Note
for at least six months, fails to comply with Section 7.10, such Holder of a Note may petition any
court of competent jurisdiction for the removal of the Trustee and the appointment of a successor
Trustee.

          A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company. Thereupon, the resignation or removal of the retiring Trustee shall
become effective, and the successor Trustee shall have all the rights, powers and duties of the
Trustee under this Indenture. The successor Trustee shall mail a notice of its succession to
Holders of the Notes. The retiring Trustee shall promptly transfer all property held by it as
Trustee to the successor Trustee, provided that all sums owing to the Trustee hereunder have been
paid and subject to the Lien provided for in Section 7.7. Notwithstanding replacement of the
Trustee pursuant to this Section 7.8, the Company’s obligations under Section 7.7 shall continue
for the benefit of the retiring Trustee.

     Section 7.9. Successor Trustee by Merger, etc.

          If the Trustee consolidates, merges or converts into, or transfers all or substantially all of
its corporate trust business to, another corporation, the successor corporation without any further
act shall be the successor Trustee.

     Section 7.10. Eligibility; Disqualification.

          There shall at all times be a Trustee hereunder that is a corporation organized and doing
business under the laws of the United States of America or of any state thereof that is authorized
under such laws to exercise corporate trustee power, that is subject to supervision or examination
by federal or state authorities and that has a combined capital and surplus of at least $50,000,000
as set forth in its most recent published annual report of condition.

          This Indenture shall always have a Trustee who satisfies the requirements of TIA ss.ss.
310(a)(1), (2) and (5). The Trustee is subject to TIA ss. 310(b).

     Section 7.11. Preferential Collection of Claims Against the Company.

          The Trustee is subject to TIA ss. 311(a), excluding any creditor relationship listed in TIA
ss. 311(b). A Trustee who has resigned or been removed shall be subject to TIA ss. 311(a) to the
extent indicated therein.

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     Section 7.12. Trustee’s Application for Instructions from the Company.

          Any application by the Trustee for written instructions from the Company, may, at the option
of the Trustee, set forth in writing any action proposed to be taken or omitted by the Trustee
under this Indenture and the date on and/or after which such action shall be taken or such omission
shall be effective. The Trustee shall not be liable for any action taken by, or omission of, the
Trustee in accordance with a proposal included in such application on or after the date specified
in such application (which date shall not be less than ten Business Days after the date any officer
of the Company actually receives such application, unless any such officer shall have consented in
writing to any earlier date) unless prior to taking any such action (or the effective date in the
case of an omission), the Trustee shall have received written instructions in response to such
application specifying the action to be taken or omitted.

ARTICLE VIII

DEFEASANCE AND COVENANT DEFEASANCE; DISCHARGE

     Section 8.1. Option to Effect Defeasance or Covenant Defeasance.

          The Company may, at the option of its Board of Directors evidenced by a resolution set forth
in an Officers’ Certificate, at any time, elect to have either Section 8.2 or 8.3 be applied to all
outstanding Notes of a series and Guarantees upon compliance with the conditions set forth below in
this Article VIII.

     Section 8.2. Defeasance and Discharge.

          Upon the Company’s exercise under Section 8.1 of the option applicable to this Section 8.2,
the Company shall, subject to the satisfaction of the conditions set forth in Section 8.4, be
deemed to have been discharged from its obligations with respect to all outstanding Notes of a
specified series and the related Guarantees on the date the conditions set forth below are
satisfied (hereinafter, “Defeasance”). For this purpose, Defeasance means that the Company,
a Guarantor, if applicable, and any other obligor under this Indenture shall be deemed to have paid
and discharged the entire Indebtedness represented by the outstanding Notes being defeased, which
shall thereafter be deemed to be “outstanding” only for the purposes of Section 8.5 and the other
Sections of this Indenture referred to in (a) and (b) below, and to have satisfied all its other
obligations under such Notes and this Indenture (and the Trustee, on demand of and at the expense
of the Company, shall execute proper instruments acknowledging the same), except for the following
provisions which shall survive until otherwise terminated or discharged hereunder: (a) the rights
of Holders of such outstanding Notes to receive, solely from the trust fund described in Section
8.4, and as more fully set forth in such Section 8.4, payments in respect of the principal of,
premium, if any, Additional Interest, if any, and interest on such Notes when such payments are
due, (b) the Company’s obligations with respect to such Notes under Article II and Section 4.2, (c)
the rights, powers, trusts, duties and immunities of the Trustee hereunder and the Company’s
obligations in connection therewith and (d) this Article VIII. Subject to compliance with this
Article VIII, the Company may exercise its option under this Section 8.2 notwithstanding the prior
exercise of its option under Section 8.3.

     Section 8.3. Covenant Defeasance.

          Upon the Company’s exercise under Section 8.1 hereof of the option applicable to this Section
8.3, the Company and each Guarantor shall, subject to the satisfaction of the conditions set forth
in Section 8.4 hereof, be released from their obligations under the covenants contained in Sections
4.3, 4.4, 4.7, 4.8, 4.9, 4.10, 4.11, 4.12, 4.13, 4.15, 4.16, 4.17 and the operation of Section 5.1
hereof with

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respect to the outstanding Notes of a specified series on and after the date the conditions
set forth in Section 8.4 are satisfied (hereinafter, “Covenant Defeasance”), and such Notes shall
thereafter be deemed 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 (it being
understood that such Notes shall not be deemed outstanding for accounting purposes). For this
purpose, Covenant Defeasance means that, with respect to the outstanding Notes of the specified
series, 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 covenant, whether directly or
indirectly, by reason of any reference elsewhere herein to any such covenant or by reason of any
reference in any such covenant 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 6.1 with
respect to either or both Floating Rate Notes and Fixed Rate Notes, but, except as specified above,
the remainder of this Indenture and such Notes shall be unaffected thereby. In addition, upon the
Company’s exercise under Section 8.1 of the option applicable to this Section 8.3, subject to the
satisfaction of the conditions set forth in Section 8.4, Sections 6.1(3) through 6.1(6) shall not
constitute Events of Default with respect to the Notes that have been defeased.

     Section 8.4. Conditions to Defeasance or Covenant Defeasance.

          The following shall be the conditions to the application of either Section 8.2 or 8.3 to the
outstanding Floating Rate Notes or Fixed Rate Notes, as the case may be:

          (a) the Company must irrevocably deposit or cause to be deposited with the Trustee, in
trust, for the benefit of the Holders of such Notes, cash in United States dollars, U.S.
Government Obligations, or 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, to pay and discharge the principal of,
premium, if any, Additional Interest, if any, and interest on such outstanding Notes on the
Stated Maturity;

          (b) in the case of an election under Section 8.2, the Company shall have delivered to
the Trustee an Opinion of 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 applicable U.S. federal income tax law, in
either case to the effect that, and based thereon such opinion shall confirm that the
Holders of such outstanding Notes will not recognize income, gain or loss for U.S. federal
income tax purposes as a result of such Defeasance and will be subject to U.S. 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;

          (c) in the case of an election under Section 8.3, the Company shall have delivered to
the Trustee an Opinion of Counsel in the United States to the effect that the Holders of
such outstanding Notes will not recognize income, gain or loss for U.S. federal income tax
purposes as a result of such Covenant Defeasance and will be subject to U.S. 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;

          (d) no Default or Event of Default shall have occurred and be continuing with respect
to such Notes either (a) on the date of such deposit (other than a Default or Event of
Default solely resulting from the borrowing of funds to be applied to such deposit); or (b)
insofar as paragraphs (8) and (9) under the first paragraph under Section 6.1 are concerned,
at any time during the period ending on the 91st day after the date of deposit;

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          (e) such Defeasance or Covenant Defeasance shall not cause the Trustee for such Notes
to have a conflicting interest as defined in this Indenture and for purposes of the Trust
Indenture Act with respect to any securities of the Company or any Guarantor;

          (f) 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 (other than, to the extent set forth in clause (d) above, this Indenture) to
which the Company or any Restricted Subsidiary is a party or by which it is bound;

          (g) 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;

          (h) the Company shall have delivered to the Trustee an Opinion of Counsel to the effect
that after the 91st day following the date of deposit, the trust funds will not be subject
to the effect of any applicable bankruptcy, insolvency, reorganization or similar laws
affecting creditors’ rights generally;

          (i) 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
such Notes or any Guarantee over the other creditors of either the Company or any Guarantor
with the intent of defeating, hindering, delaying or defrauding creditors of either the
Company or any Guarantor or others; and

          (j) the Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent provided for relating to
either the Defeasance or the Covenant Defeasance, as the case may be, have been complied
with.

     Section 8.5. Deposited Money and U.S. Government Obligations to Be Held in Trust; Other
Miscellaneous Provisions.

          Subject to Section 8.6, all money and non-callable U.S. Government Obligations (including the
proceeds thereof) deposited with the Trustee (or other qualifying trustee, collectively for
purposes of this Section 8.5, the “Trustee”) pursuant to Section 8.4 in respect of the outstanding
Floating Rate Notes and/or Fixed Rate Notes being defeased shall be held in trust and applied by
the Trustee, in accordance with the provisions of such Notes and this Indenture, to the payment,
either directly or through any Paying Agent (including the Company acting as Paying Agent) as the
Trustee may determine, to the Holders of such Notes 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 cash or non-callable U.S. Government Obligations deposited pursuant to
Section 8.4 or the principal and interest received in respect thereof other than any such tax, fee
or other charge which by law is for the account of the Holders of the outstanding Notes being
defeased.

          Anything in this Article VIII to the contrary notwithstanding, the Trustee shall deliver or
pay to the Company from time to time upon the request of the Company any money or non-callable U.S.
Government Obligations held by it as provided in Section 8.4 which, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written certification thereof
delivered to

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the Trustee (which may be the opinion delivered under Section 8.4(a)), are in excess of the
amount thereof that would then be required to be deposited to effect an equivalent Defeasance or
Covenant Defeasance.

     Section 8.6. Repayment to the Company.

          Subject to applicable laws relating to abandoned property, 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, Additional Interest, if any, or interest on any Note and remaining unclaimed
for two years after such principal, and premium, if any, or interest has become due and payable
shall be paid to the Company on its request or (if then held by the Company) shall be discharged
from such trust; and the Holder of such Note shall thereafter, as a secured 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), 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 or publication, any unclaimed balance of such money then remaining will be repaid to
the Company.

     Section 8.7. Reinstatement.

          If the Trustee or Paying Agent is unable to apply any United States dollars or non-callable
U.S. Government Obligations in accordance with Section 8.2 or 8.3, 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 Notes
theretofore defeased shall be revived and reinstated as though no deposit had occurred pursuant to
Section 8.2 or 8.3 until such time as the Trustee or Paying Agent is permitted to apply all such
money in accordance with Section 8.2 or 8.3, as the case may be; provided, however, that, if the
Company makes any payment of principal of, premium, if any, Additional Interest, if any, or
interest on any Note following the reinstatement of its obligations, the Company shall be
subrogated to the rights of the Holders of such Notes to receive such payment from the money held
by the Trustee or Paying Agent.

     Section 8.8. Discharge.

          This Indenture will cease to be of further effect (except as to surviving rights of
registration of transfer or exchange of the Notes as expressly provided for in this Indenture and
the compensation and indemnification provisions relating to the Trustee) and the Trustee, at the
expense of the Company, will execute proper instruments acknowledging satisfaction and discharge of
this Indenture as to all Floating Rate Notes or Fixed Rate Notes, as the case may be, when

          (a) either (i) all such Notes theretofore authenticated and delivered (except destroyed,
lost or stolen Notes which have been replaced or paid or Notes whose payment money has been
deposited in trust with the Trustee or any paying agent or segregated and held in trust by the
Company and thereafter repaid to the Company or discharged from such trust as provided for in
this Indenture) have been delivered to the Trustee for cancellation or (ii) all such Notes not
theretofore delivered to the Trustee for cancellation (x) have become due and payable, (y) will
become due and payable at Stated Maturity within one year or (z) are to be called for redemption
within one year under arrangements satisfactory to the Trustee for the giving of notice of
redemption by the Trustee in the name, and at the expense, of the Company;

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          (b) 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 such Notes not theretofore delivered to the Trustee for
cancellation, including principal of, premium, if any, Additional Interest, if any, and interest
on the Notes to the date of such deposit (in the case of Notes which have become due and
payable) or to the Stated Maturity or redemption date, as the case may be;

          (c) the Company or any Guarantor has paid or caused to be paid all sums payable under this
Indenture by the Company and any Guarantor; and

          (d) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that (i) all conditions precedent provided in this Indenture relating to
the satisfaction and discharge of this Indenture 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 Subsidiary is a party or by which the Company, any Guarantor or any Subsidiary
is bound.

ARTICLE IX

AMENDMENT, SUPPLEMENT AND WAIVER

     Section 9.1. Without Consent of Holders of Notes. 

          Notwithstanding Section 9.2, the Company, any Guarantor, any other obligor under the Notes and
the Trustee may amend or supplement this Indenture or the Notes without notice to or the consent of
any Holder of a Note.

	 	(a)	 	to evidence the succession of another Person to the Company or
a Guarantor, and the assumption by any such successor of the covenants of the
Company or such Guarantor in this Indenture and in the Notes and in any
Guarantee in accordance with Section 5.1;
	 
	 	(b)	 	to add to the covenants of the Company, any Guarantor or any
other obligor upon the Notes for the benefit of the Holders of the Notes or to
surrender any right or power conferred upon the Company or any Guarantor or any
other obligor upon the Notes, as applicable, in this Indenture, in the Notes or
in any Guarantee;
	 
	 	(c)	 	to cure any ambiguity, or to correct or supplement any
provision in this Indenture, the Notes or any Guarantee which may be defective
or inconsistent with any other provision in this Indenture, the Notes or any
Guarantee or make any other provisions with respect to matters or questions
arising under this Indenture, the Notes or any Guarantee; provided that, in
each case, such provisions shall not adversely affect the interest of the
Holders of the Notes;
	 
	 	(d)	 	to comply with the requirements of the Commission in order to
effect or maintain the qualification of this Indenture under this Trust
Indenture Act;
	 
	 	(e)	 	to add a Guarantor under this Indenture;
	 
	 	(f)	 	to evidence and provide the acceptance of the appointment of a
successor Trustee under this Indenture;

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	 	(g)	 	to mortgage, pledge, hypothecate or grant a security interest
in favor of the Trustee for the benefit of the Holders of the Notes as
additional security for the payment and performance of the Company’s and any
Guarantor’s obligations under this Indenture, 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;
	 
	 	(h)	 	to provide for the issuance of Subsequent Series Notes in
accordance with and if permitted by the terms and limitations set forth in this
Indenture; or
	 
	 	(i)	 	to make any other change that would provide any additional
rights or benefits to the Holders or that does not adversely affect the legal
rights under the Indenture of any Holder.

          Upon the written request of the Company accompanied by a resolution of its Board of Directors
authorizing the execution of any such amended or supplemental Indenture, and upon receipt by the
Trustee of any of the documents requested by it pursuant to Section 7.2(b), the Trustee shall join
with the Company and the Guarantors in the execution of such amended or supplemental Indenture and
to make any further appropriate agreements and stipulations that may be therein contained, unless
such amended or supplemental Indenture directly affects the Trustee’s own rights, duties or
immunities under this Indenture or otherwise, in which case the Trustee may in its judgment, but
shall not be obligated to, enter into such amended or supplemental Indenture.

     Section 9.2. With Consent of Holders of Notes.

          Except as provided below in this Section 9.2, the Company and the Trustee may amend or
supplement this Indenture (including Sections 4.10 and 4.15) or the Notes and/or any Guarantees may
be amended or supplemented (including, without limitation, consents obtained in connection with a
purchase of, tender offer or exchange offer for, Notes) of the holders of at least a majority in
outstanding aggregate principal amount of each series of Notes (including Subsequent Series Notes,
if any) affected by such modifications or amendments; and, subject to Sections 6.4 and 6.7, any
existing Default or Event of Default (other than a Default or Event of Default in the payment of
the principal of, premium, if any, Additional Interest, if any, or interest on the Notes, except a
payment default resulting from an acceleration that has been rescinded) or compliance with any
provision of this Indenture, the Notes or the Guarantees may be waived with the consent of the
Holders of a majority in principal amount of the then outstanding Notes (including consents
obtained in connection with a purchase of, tender offer or exchange offer for, Notes). Section 2.8
shall determine which Notes are considered to be “outstanding” for purposes of this Section 9.2.

          Upon the written request of the Company accompanied by a resolution of its Board of Directors
authorizing the execution of any such amended or supplemental Indenture, and upon the filing with
the Trustee of evidence satisfactory to the Trustee of the consent of the Holders of Notes as
aforesaid, and upon receipt by the Trustee of any document requested by it pursuant to Section
7.2(b), the Trustee shall join with the Company and the Guarantors in the execution of such amended
or supplemental Indenture and to make any further appropriate agreements and stipulations that may
be therein contained, unless such amended or supplemental Indenture directly affects the Trustee’s
own rights, duties or immunities under this Indenture or otherwise, in which case the Trustee may
in its discretion, but shall not be obligated to, enter into such amended or supplemental
Indenture.

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          It shall not be necessary for the consent of the Holders of Notes under this Section 9.2 to
approve the particular form of any proposed amendment or waiver, but it shall be sufficient if such
consent approves the substance thereof.

          After an amendment, supplement or waiver under this Section 9.2 becomes effective, the Company
shall mail to the Holders of Notes affected thereby a notice briefly describing the amendment,
supplement or waiver. 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 amended or supplemental
Indenture or waiver. Subject to Sections 6.4 and 6.7, the Holders of a majority in aggregate
principal amount of the Notes then outstanding voting as a single class may waive compliance in a
particular instance by the Company and/or the Guarantors with any provision of this Indenture, the
Notes or the Notes Guarantees. However, without the consent of each Holder affected, an amendment
or waiver under this Section 9.2 may not (with respect to any Notes held by a non-consenting
Holder):

	 	(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 Note or the method of calculating the rate of interest
thereon, in the case of Floating Rate Notes, or reduce the principal amount
thereof or the rate of interest thereon, in the case of Fixed Rate Notes, or
any premium payable upon the redemption thereof, or change the coin or currency
in which the principal of any such Note or any premium or the interest thereon
is payable, or impair the right to institute suit for the enforcement of any
such payment after the Stated Maturity thereof (or, in the case of redemption,
on or after the redemption date);
	 
	 	(b)	 	reduce the percentage in principal amount of such outstanding
Notes, 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 relating to supplemental
indentures requiring the consent of Holders or relating to the waiver of past
defaults or relating to the waiver of certain covenants, except to increase the
percentage of such outstanding Notes required for 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 Note affected thereby;
	 
	 	(e)	 	except as otherwise permitted under Section 5.1, consent to the
assignment or transfer by the Company or any Guarantor of any of its rights and
obligations under this Indenture; or
	 
	 	(f)	 	amend or modify any of the provisions of this Indenture in any
manner which subordinates the Notes issued thereunder 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 any such
Guarantee

     Section 9.3. Revocation and Effect of Consents.

          Until an amendment, supplement or waiver becomes effective, a consent to it by a Holder of a
Note is a continuing consent by the Holder of a Note and every subsequent Holder of a Note or
portion of a Note that evidences the same debt as the consenting Holder’s Note, even if notation of
the

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consent is not made on any Note. However, any such Holder of a Note or subsequent Holder of a
Note may revoke the consent as to its Note if the Trustee receives written notice of revocation
before the date the waiver, supplement or amendment becomes effective. An amendment, supplement or
waiver becomes effective in accordance with its terms and thereafter binds every Holder.

     Section 9.4. Notation on or Exchange of Notes.

          The Trustee may place an appropriate notation about an amendment, supplement or waiver on any
affected Note thereafter authenticated. The Company in exchange for all affected Notes may issue
and the Trustee shall, upon receipt of an Authentication Order, authenticate new Notes that reflect
the amendment, supplement or waiver.

          Failure to make the appropriate notation or issue a new Note shall not affect the validity and
effect of such amendment, supplement or waiver.

     Section 9.5. Trustee to Sign Amendments, etc.

          The Trustee shall sign any amended or supplemental Indenture authorized pursuant to this
Article IX if the amendment or supplement does not in the judgment of the Trustee adversely affect
the rights, duties, liabilities or immunities of the Trustee. The Company may not sign an amendment
or supplemental Indenture until its Board of Directors approves it. In executing any amended or
supplemental indenture, the Trustee shall be entitled to receive and (subject to Section 7.1) shall
be fully protected in relying upon, in addition to the documents required by Section 11.4, an
Officers’ Certificate and an Opinion of Counsel stating that the execution of such amended or
supplemental Indenture is authorized or permitted by this Indenture.

ARTICLE X

GUARANTEES

     Section 10.1. Guarantee.

          Subject to this Article X, each of the Guarantors hereby, jointly and severally,
unconditionally guarantees to each Holder of a Note authenticated and delivered by the Trustee and
to the Trustee and its successors and assigns, irrespective of the validity and enforceability of
this Indenture, the Notes or the obligations of the Company hereunder or thereunder, that: (a) the
principal of, premium, if any, Additional Interest, if any, and interest on the Notes will be
promptly paid by the Company in full when due, whether at maturity, by acceleration, redemption or
otherwise, and interest on the overdue principal of, premium, if any, Additional Interest, if any,
and interest on the Notes, if any, if lawful, and all other obligations of the Company to the
Holders or the Trustee hereunder or thereunder will be promptly paid by the Company in full or
performed by the Company, all in accordance with the terms hereof and thereof; and (b) in case of
any extension of time of payment or renewal of any Notes or any of such other obligations, that
same will be promptly paid by the Company in full when due or performed by the Company in
accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration
or otherwise. Failing payment when due by the Company of any amount so guaranteed or any
performance so guaranteed which failure continues for ten days after demand therefor is made to the
Company for whatever reason, the Guarantors shall be jointly and severally obligated to pay the
same immediately. Each Guarantor agrees that this is a guarantee of payment and not a guarantee of
collection.

          The Guarantors hereby agree that their obligations hereunder shall be unconditional,
irrespective of the validity, regularity or enforceability of the Notes or this Indenture, the
absence of any

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action to enforce the same, any waiver or consent by any Holder of the Notes with respect to
any provisions hereof or thereof, the recovery of any judgment against the Company, any action to
enforce the same or any other circumstance which might otherwise constitute a legal or equitable
discharge or defense of a Guarantor. Each Guarantor hereby waives diligence, presentment, demand of
payment (except as specifically provided in the preceding paragraph), filing of claims with a court
in the event of insolvency or bankruptcy of the Company, any right to require a proceeding first
against the Company, protest, notice and all demands (except as specifically provided in the
preceding paragraph) whatsoever and covenant that this Guarantee shall not be discharged except by
complete performance of the obligations contained in the Notes and this Indenture. Each Guarantor
also expressly waives, without any requirement of any notice to or further assent by such
Guarantor, to the fullest extent permitted by applicable law, the benefit of all principles or
provisions of applicable law which are or might be in conflict with the terms hereof, including,
without limitation, Section 10-7-23 and Section 10-7-24 of the Official Code of Georgia Annotated.

          If any Holder or the Trustee is required by any court or otherwise to return to the Company,
the Guarantors or any custodian, trustee, liquidator or other similar official acting in relation
to either the Company or the Guarantors, any amount paid by either to the Trustee or such Holder,
this Guarantee, to the extent theretofore discharged, shall be reinstated in full force and effect.

          Each Guarantor agrees that it shall not be entitled to any right of subrogation in relation to
the Holders in respect of any obligations guaranteed hereby until payment in full of all
obligations guaranteed hereby. Each Guarantor further agrees that, as between the Guarantors, on
the one hand, and the Holders and the Trustee, on the other hand, (x) the maturity of the
obligations guaranteed hereby may be accelerated as provided in Article VI hereof for the purposes
of this Guarantee, notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the obligations guaranteed hereby, and (y) in the event of any
declaration of acceleration of such obligations as provided in Article VI hereof, such obligations
(whether or not due and payable) shall forthwith become due and payable by the Guarantors for the
purpose of this Guarantee, failing payment when due by the Company which failure continues for ten
days after demand therefor is made to the Company. The Guarantors shall have the right to seek
contribution from any non-paying Guarantor so long as the exercise of such right does not impair
the rights of the Holders under the Guarantee.

     Section 10.2. Limitation on Guarantor Liability.

          Each Guarantor, and by its acceptance of Notes, each Holder, hereby confirms that it is the
intention of all such parties that the Guarantee of such Guarantor not constitute a fraudulent
transfer or conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the
Uniform Fraudulent Transfer Act or any similar federal or state law to the extent applicable to any
Guarantee. To effectuate the foregoing intention, the Trustee, the Holders and the Guarantors
hereby irrevocably agree that the obligations of such Guarantor under its Guarantee and this
Article X shall be limited to the maximum amount as will, after giving effect to such maximum
amount and all other contingent and fixed liabilities of such Guarantor that are relevant under
such laws, and after giving effect to any collections from, rights to receive contribution from or
payments made by or on behalf of any other Guarantor in respect of the obligations of such other
Guarantor under this Article X, result in the obligations of such Guarantor under its Guarantee not
constituting a fraudulent transfer or conveyance.

     Section 10.3. Execution and Delivery of Guarantee.

          To evidence the Guarantees set forth in Section 10.1, the Company hereby agrees to cause a
notation of such Guarantee substantially in the form of Exhibit E hereto to be endorsed by
manual or facsimile signature by an Officer of each Guarantor on each Note authenticated and
delivered by the

82

 

Trustee. The Company shall cause all future Guarantors to execute a supplemental indenture
substantially in the form of Exhibit F hereto.

          Each Guarantor hereby agrees that its Guarantee set forth in Section 10.1 shall remain in full
force and effect notwithstanding any failure to endorse on each Note a notation of such Guarantee.

          If an Officer whose signature is on any supplemental indenture or on the Guarantee no longer
holds that office at the time the Trustee authenticates the Note on which a Guarantee is endorsed,
the Guarantee shall be valid and obligatory nevertheless.

          The delivery of any Note by the Trustee, after the authentication thereof hereunder, shall
constitute due delivery of the Guarantee set forth in this Indenture on behalf of the Guarantors.

          In the event that the Company creates or acquires any new Subsidiaries subsequent to the date
of this Indenture, if required by Section 4.16 hereof the Company shall cause such Subsidiaries to
execute supplemental indentures to this Indenture and Guarantees in accordance with Section 4.16
and this Article X, to the extent applicable; provided that all Subsidiaries that have properly
been designated as Unrestricted Subsidiaries in accordance with this Indenture (a) will not be
subject to the requirements of Section 4.16 and (b) will be released from all obligations under any
Guarantee, in each case for so long as they continue to constitute Unrestricted Subsidiaries.

     Section 10.4. Releases Following Sale of Assets or Capital Stock.

          The Guarantee of a Guarantor will be released:

          (a) in connection with any sale or other disposition of all or substantially
all of the assets of such Guarantor (including by way of merger or consolidation),
if the Company applies the Excess Proceeds of that sale or other disposition in
accordance with the applicable provisions of this Indenture, including, without
limitation, Section 4.10;

          (b) in connection with any sale or other disposition or liquidation of all or
substantially all of the assets of such Guarantor (including by way of merger or
consolidation) if such sale or other disposition or liquidation is to, with or into
another Guarantor or the Company;

          (c) in connection with any sale of all or substantially all of the Capital
Stock of a Guarantor to any Person that is not an Affiliate of the Company, if the
Company applies the Excess Proceeds of that sale in accordance with the applicable
provisions of this Indenture, including, without limitation, Section 4.10; or

          (d) if the Company designates any Restricted Subsidiary that is a Guarantor as
an Unrestricted Subsidiary in accordance with this Indenture.

          The Trustee will provide any written confirmation or evidence of the termination of such
Guarantee as reasonably required by the representative of such Guarantor.

          Any Guarantor not released from its obligations under its Guarantee shall remain liable for
the full amount of principal of and interest on the Notes and for the other obligations of any
Guarantor under this Indenture as provided in this Article X.

83

 

     Section 10.5. Acknowledgment of Manufacturers’ Letter Agreements.

          It is hereby acknowledged that the enforcement of certain rights with respect to the
Guarantees is subject to the terms and conditions of the Manufacturers’ Letter Agreements.

     Section 10.6. Certain California Law Waivers.

          As used in this Section 10.6, any reference to “the principal” includes the Company, and any
reference to “the creditor” includes the Holders. In accordance with Section 2856 of the California
Civil Code:

	 	(a)	 	each Guarantor agrees (i) to waive any and all rights of
subrogation and reimbursement against the Company or against any collateral or
security granted by the Company for any of the Guarantor’s obligations and (ii)
to withhold the exercise of any and all rights of contribution against any
other guarantor of any of the Guarantor’s obligations and against any
collateral or security granted by any such other guarantor for any of the
Guarantor’s obligations until the Guarantor’s obligations shall have been
indefeasibly paid in full;
	 
	 	(b)	 	each Guarantor waives any and all other rights and defenses
available to Guarantor by reason of Sections 2787 to 2855, inclusive, 2899 and
3433 of the California Civil Code, including any and all rights or defenses
Guarantor may have by reason of protection afforded to the principal with
respect to any of the Guarantor’s obligations, or to any other guarantor of any
of the Guarantor’s obligations with respect to any of such guarantor’s
obligations under its guaranty, in either case pursuant to the antideficiency
or other laws of the State of California limiting or discharging the
principal’s indebtedness or such guarantor’s obligations, including Section
580a, 580b, 580d, or 726 of the California Code of Civil Procedure; and
	 
	 	(c)	 	each Guarantor waives all rights and defenses arising out of an
election of remedies by the creditor, even though that election of remedies,
such as a nonjudicial foreclosure with respect to security for any Guarantee
obligation, has destroyed Guarantor’s rights of subrogation and reimbursement
against the principal by the operation of Section 580d of the Code of Civil
Procedure or otherwise; and even though that election of remedies by the
creditor, such as nonjudicial foreclosure with respect to security for an
obligation of any other guarantor of any of the Guarantor’s obligations, has
destroyed Guarantor’s rights of contribution against such other guarantor.

          No other provision of this Article X shall be construed as limiting the generality of any of
the covenants and waivers set forth in this Section 10.6. In accordance with Section 11.8 hereof,
the Guarantees shall be governed by, and shall be construed and enforced in accordance with, the
internal laws of the State of New York. This Section 10.6 is included solely out of an abundance of
caution, and shall not be construed to mean that any of the above-referenced provisions of
California law are in any way applicable to the Guarantees or to any of the Guarantor’s
obligations.

     Section 10.7. Guarantor May Consolidate, Etc. on Certain Terms. Each Guarantor agrees that,
unless its Guarantee is being concurrently released in conformity with Section 10.4, it may not
sell or otherwise dispose of all or substantially all of its assets, or consolidate with or merge
with or into (whether or not such Guarantor is the surviving Person) another corporation, Person or
entity whether or

84

 

not affiliated with such Guarantor unless either (a) the Guarantor will be the continuing
corporation (in the case of a consolidation or merger involving the Guarantor ) or (b) the Person
(if other than the Guarantor) formed by such consolidation or into which the 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 “Guarantor Surviving Entity”) will be 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 Guarantor under its Guarantee and this
Indenture and the Registration Rights Agreement, as the case may be, and the Guarantee and this
Indenture and the Registration Rights Agreement will remain in full force and effect as so
supplemented and at the time of the transaction the Guarantor or the Guarantor 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 therein provided for relating to such transaction have been complied with.

ARTICLE XI

MISCELLANEOUS

     Section 11.1. Trust Indenture Act Controls.

          If any provision of this Indenture limits, qualifies or conflicts with the duties imposed by
TIA ss. 318(c), the imposed duties shall control.

     Section 11.2. Notices.

          Any notice or communication by the Company, any Guarantor or the Trustee to the others is duly
given if in writing and delivered in person or mailed by first class mail (registered or certified,
return receipt requested), or sent by telecopier or overnight courier guaranteeing next day
delivery, to the other’s address.

          If to the Company and/or any Guarantor:

			
	                    	 	AutoNation, Inc.

AutoNation Tower

110 S.E. 6th Street

Fort Lauderdale, Florida 33301

Attention: Chief Financial Officer

          With a copy to:

			
	                    	 	Skadden, Arps, Slate, Meagher & Flom (Illinois)

333 W. Wacker Drive, Suite 2100

Chicago, Illinois 60606

Attention: Gary Cullen, Esq.

85

 

     If to the Trustee:

			
	                    	 	Wells Fargo Bank, N.A.

213 Court Street

Suite 703

Middletown, Connecticut 06457

Telecopier No.: (860) 704-6219

Attention: Corporate Trust Services

Re: AutoNation, Inc.

          The Company, any Guarantor or the Trustee, by notice to the others may designate additional or
different addresses for subsequent notices or communications.

          All notices and communications (other than those sent to Holders) shall be deemed to have been
duly given: at the time delivered by hand, if personally delivered; five Business Days after being
deposited in the mail, postage prepaid, if mailed; when receipt acknowledged, if telecopied; and
the next Business Day after timely delivery to the courier, if sent by overnight air courier
guaranteeing next day delivery.

          Any notice or communication to a Holder shall be mailed by first class mail, or by overnight
air courier guaranteeing next day delivery to its address shown on the register kept by the
Registrar. Any notice or communication shall also be so mailed to any Person described in TIA ss.
313(c), to the extent required by the TIA. Failure to mail a notice or communication to a Holder or
any defect in it shall not affect its sufficiency with respect to other Holders.

          If a notice or communication is mailed in the manner provided above within the time
prescribed, it is duly given, whether or not the addressee receives it.

          If the Company mails a notice or communication to Holders, it shall mail a copy to the Trustee
and each Agent at the same time.

     Section 11.3. Communication by Holders of Notes with Other Holders of Notes.

          Holders may communicate pursuant to TIA ss. 312(b) with other Holders with respect to their
rights under this Indenture or the Notes. The Company, the Trustee, the Registrar and anyone else
shall have the protection of TIA ss. 312(c).

     Section 11.4. Certificate and Opinion as to Conditions Precedent.

          Upon any request or application by the Company to the Trustee to take any action under this
Indenture, the Company shall furnish to the Trustee:

	 	(a)	 	an Officers’ Certificate in form and substance reasonably
satisfactory to the Trustee (which shall include the statements set forth in
Section 11.5) stating that, in the opinion of the signers, all conditions
precedent and covenants, if any, provided for in this Indenture relating to the
proposed action have been satisfied; and
	 
	 	(b)	 	an Opinion of Counsel in form and substance reasonably
satisfactory to the Trustee (which shall include the statements set forth in
Section 11.5) stating that, in the opinion of such counsel, all such conditions
precedent and covenants have been satisfied.

86

 

     Section 11.5. Statements Required in Certificate or Opinion. 

          Each certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture (other than a certificate provided pursuant to TIA ss. 314(a)(4)) shall
comply with the provisions of TIA ss. 314(e) and shall include:

	 	(a)	 	a statement that the Person making such certificate or opinion
has read such covenant or condition; (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 such Person, he or she has
made such examination or investigation as is necessary to enable him to express
an informed opinion as to whether or not such covenant or condition has been
satisfied; and
	 
	 	(d)	 	a statement as to whether or not, in the opinion of such
Person, such condition or covenant has been satisfied.

     Section 11.6. Rules by Trustee and Agents.

          The Trustee may make reasonable rules for action by or at a meeting of Holders.

          The Registrar or Paying Agent may make reasonable rules and set reasonable requirements for
its functions.

     Section 11.7. No Personal Liability of Directors, Officers, Employees and
Stockholders.

          No director, officer, employee, incorporator or stockholder of the Company or any Guarantor,
as such, shall have any liability for any obligations of the Company or such Guarantor under the
Notes, this Indenture, the Guarantees, the Registration Rights Agreement or for any claim based on,
in respect of, or by reason of, such obligations or their creation. Each Holder of Notes by
accepting a Note waives and releases all such liability. The waiver and release are part of the
consideration for issuance of the Notes.

     Section 11.8. Governing Law.

          THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS INDENTURE,
THE NOTES AND THE GUARANTEES.

     Section 11.9. No Adverse Interpretation of Other Agreements.

          This Indenture may not be used to interpret any other indenture, loan or debt agreement of the
Company or its Subsidiaries or of any other Person. Any such indenture, loan or debt agreement may
not be used to interpret this Indenture.

     Section 11.10. Successors.

          All agreements of the Company in this Indenture and the Notes shall bind its successors. All
agreements of the Trustee in this Indenture shall bind its successors.

87

 

     Section 11.11. Severability.

          In case any provision in this Indenture or in the Notes 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 11.12. Counterpart Originals; Acceptance by Trustee.

          The parties may sign any number of copies of this Indenture. Each signed copy shall be an
original, but all of them together represent the same agreement. The Trustee hereby accepts the
trusts in this Indenture declared or provided, upon the terms and conditions hereinabove set forth.

     Section 11.13. Table of Contents, Headings, etc.

          The Table of Contents, Cross-Reference Table and Headings of the Articles and Sections of this
Indenture have been inserted for convenience of reference only, are not to be considered a part of
this Indenture and shall in no way modify or restrict any of the terms or provisions hereof.

[Signatures on following page]

88

 

Dated as of April 12, 2006

	 	 	 	 	 
	 	AUTONATION, INC.

 	 
	 	By:  	/s/ James J. Teufel
 	 
	 	 	Name:  	James J. Teufel 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 
	 	WELLS FARGO BANK, N.A., as Trustee

 	 
	 	By:  	/s/ Joseph P. O'Donnell
 	 
	 	 	Name:  	Joseph P. O'Donnell 	 
	 	 	Title:  	Vice President 	 
	 
	 	7 Rod Real Estate North, a Limited Liability Company

7 Rod Real Estate South, a Limited Liability Company

Abraham Chevrolet-Miami, Inc.

Abraham Chevrolet-Tampa, Inc.

ACER Fiduciary, Inc.

Al Maroone Ford, LLC

Albert Berry Motors, Inc.

Allison Bavarian

All-State Rent A Car, Inc.

American Way Motors, Inc.

AN Cadillac of WPB, LLC

AN California Region Management, LLC

AN Chevrolet — Arrowhead, Inc.

AN Chevrolet of Phoenix, LLC

AN CJ Valencia, Inc.

AN Corpus Christi GP, LLC

AN Corpus Christi Imports Adv. GP, LLC

AN Corpus Christi Imports Adv., LP

AN Corpus Christi Imports GP, LLC

AN Corpus Christi Imports II GP, LLC

AN Corpus Christi Chevrolet, LP

AN Corpus Christi Imports II, LP

AN Corpus Christi Imports, LP

AN Corpus Christi T. Imports GP, LLC

AN Corpus Christi T. Imports, LP

AN County Line Ford, Inc.

AN Dealership Holding Corp.

AN East Central Region Management, LLC

AN Florida Region Management, LLC

AN Fremont Luxury Imports, Inc.

AN Imports of Henderson, LLC

AN Imports of Lithia Springs, LLC

AN Imports of Reno, LLC

AN Imports on Weston Road, Inc.

 	 
	 	 	 
	 	 	 
	 	 	 

89

 

	 	 	 	 	 

	 	 	 	 	 
	 	AN Luxury Imports GP, LLC

AN Luxury Imports of Pembroke Pines, Inc.

AN Luxury Imports of Sarasota, Inc.

AN Luxury Imports, Ltd.

AN Motors of Delray Beach, Inc.

AN Motors of Scottsdale, LLC

AN Pontiac GMC Houston North GP, LLC

AN Pontiac GMC Houston North, LP

AN Texas Region Management, Ltd.

AN West Central Region Management, LLC

AN/CF Acquisition Corp.

AN/FMK Acquisition Corp.

AN/GMF, Inc.

AN/MF Acquisition Corp.

AN/MNI Acquisition Corp.

AN/PF Acquisition Corp.

AN/STD Acquisition Corp.

Anderson Chevrolet

Anderson Chevrolet Los Gatos, Inc.

Anderson Cupertino, Inc.

Appleway Chevrolet, Inc.

Atrium Restaurants, Inc.

Auto Ad Agency, Inc.

Auto Car, Inc.

Auto Holding Corp.

Auto Mission, Ltd.

Auto West, Inc.

Autohaus Holdings, Inc.

AutoNation Benefits Company, Inc.

AutoNation Corporate Management, LLC

AutoNation Dodge of Pembroke Pines, Inc.

AutoNation Enterprises Incorporated

AutoNation Financial Services Corp.

AutoNation Fort Worth Motors, Ltd.

AutoNation GM GP, LLC

AutoNation Holding Corp.

AutoNation Imports of Katy GP, LLC

AutoNation Imports of Katy, L.P.

AutoNation Imports of Lithia Springs, Inc.

AutoNation Imports of Longwood, Inc.

AutoNation Imports of Palm Beach, Inc.

AutoNation Imports of Winter Park, Inc.

AutoNation Motors Holding Corp.

AutoNation Motors of Lithia Springs, Inc.

AutoNation North Texas Management GP, LLC

AutoNation Northwest Management, LLC

AutoNation Orlando Venture Holdings, Inc.

AutoNation Realty Corporation

AutoNation USA of Perrine, Inc.

AutoNation V. Imports of Delray Beach, LLC

AutoNation Vermont, Inc.

 	 
	 	 	 
	 	 	 
	 	 	 

90

 

	 	 	 	 	 

	 	 	 	 	 
	 	AutoNationDirect.com, Inc.

Bankston Auto, Inc.

Bankston Chrysler Jeep of Frisco, L.P.

Bankston CJ GP, LLC

Bankston Ford of Frisco, Ltd. Co.

Bankston Nissan in Irving, Inc.

Bankston Nissan Lewisville GP, LLC

Bankston Nissan Lewisville, Ltd.

Bargain Rent-A-Car

Batfish, LLC

BBCSS, Inc.

Beach City Chevrolet Company, Inc.

Beacon Motors, Inc.

Bell Dodge, L.L.C.

Bengal Motor Company, Ltd.

Bengal Motors, Inc.

Bill Ayares Chevrolet, LLC

Bledsoe Dodge, LLC

Bob Townsend Ford, Inc.

Body Shop Holding Corp.

BOSC Automotive Realty, Inc.

Brown & Brown Chevrolet — Superstition Springs, LLC

Brown & Brown Chevrolet, Inc.

Brown & Brown Nissan Mesa, L.L.C

Brown & Brown Nissan, Inc.

Buick Mart Limited Partnership

Bull Motors, LLC

C. Garrett, Inc.

Carlisle Motors, LLC

Carwell, LLC

Cerritos Body Works, Inc.

Cerritos Imports, Inc.

Champion Chevrolet, LLC

Champion Ford, Inc.

Charlie Hillard, Inc.

Charlie Thomas Chevrolet GP, LLC

Charlie Thomas Chevrolet, Ltd.

Charlie Thomas Chrysler-Plymouth, Inc.

Charlie Thomas’ Courtesy Ford, Ltd.

Charlie Thomas’ Courtesy GP, LLC

Charlie Thomas Courtesy Leasing, Inc.

Charlie Thomas F. GP, LLC

Charlie Thomas Ford, Ltd.

Chesrown Auto, LLC

Chesrown Chevrolet, LLC

Chesrown Collision Center, Inc.

Chesrown Ford, Inc.

Chevrolet World, Inc.

Chuck Clancy Ford of Marietta, LLC

Coastal Cadillac, Inc.

Consumer Car Care Corporation

 	 
	 	 	 
	 	 	 
	 	 	 

91

 

	 	 	 	 	 

	 	 	 	 	 
	 	Contemporary Cars, Inc.

Cook-Whitehead Ford, Inc.

Corporate Properties Holding, Inc.

Costa Mesa Cars, Inc.

Courtesy Auto Group, Inc.

Courtesy Broadway, LLC

Covington Pike Motors, Inc.

CT Intercontinental GP, LLC

CT Intercontinental, Ltd.

CT Motors, Inc.

D/L Motor Company

Deal Dodge of Des Plaines, Inc.

Dealership Properties, Inc.

Dealership Realty Corporation

Desert Buick-GMC Trucks, L.L.C.

Desert Chrysler-Plymouth, Inc.

Desert Dodge, Inc.

Desert GMC, L.L.C.

Desert Lincoln-Mercury, Inc.

Dobbs Brothers Buick-Pontiac, Inc.

Dobbs Ford of Memphis, Inc.

Dobbs Ford, Inc.

Dobbs Mobile Bay, Inc.

Dobbs Motors of Arizona, Inc.

Dodge of Bellevue, Inc.

Don Mealey Chevrolet, Inc.

Don Mealey Imports, Inc.

Don-A-Vee Jeep Eagle, Inc.

Downers Grove Dodge, Inc.

Driver’s Mart Worldwide, Inc.

Eastgate Ford, Inc.

Ed Mullinax Ford, LLC

Edgren Motor Company, Inc.

El Monte Imports, Inc.

El Monte Motors, Inc.

Elmhurst Auto Mall, Inc.

Emich Chrysler Plymouth, LLC

Emich Dodge, LLC

Emich Oldsmobile, LLC

Emich Subaru West, LLC

Empire Services Agency, Inc.

Financial Services GP, LLC

Financial Services, Ltd

First Team Automotive Corp.

First Team Ford of Manatee, Ltd.

First Team Ford, Ltd

First Team Imports, Ltd.

First Team Jeep Eagle, Chrysler-Plymouth, Ltd.

First Team Management, Inc.

First Team Premier, Ltd.

Fit Kit, Inc.

 	 
	 	 	 
	 	 	 
	 	 	 

92

 

	 	 	 	 	 

	 	 	 	 	 
	 	Florida Auto Corp.

Ford of Garden Grove Limited Partnership

Ford of Kirkland, Inc.

Fox Chevrolet, LLC

Fox Imports, LLC

Fox Motors, LLC

Fred Oakley Motors, Inc.

Ft. Lauderdale Nissan, Inc.

G.B. Import Sales & Service, LLC

Gene Evans Ford, LLC

George Sutherlin Nissan, LLC

Government Blvd. Motors, Inc.

Gulf Management, Inc.

Hayward Dodge, Inc.

Hillard Auto Group, Inc.

Hollywood Imports Limited, Inc.

Hollywood Kia, Inc.

Horizon Chevrolet, Inc.

House of Imports, Inc.

Houston Auto M. Imports Greenway, Ltd.

Houston Auto M. Imports North, Ltd.

Houston Imports Greenway GP, LLC

Houston Imports North GP, LLC

Hub Motor Company, LLC

Irvine Imports, Inc.

Irvine Toyota/Nissan/Volvo Limited Partnership

Jemautco, Inc.

Jerry Gleason Chevrolet, Inc.

Jerry Gleason Dodge, Inc.

Jim Quinlan Chevrolet Co.

Jim Quinlan Ford Lincoln-Mercury, Inc.

Joe MacPherson Ford

Joe MacPherson Imports No. I

Joe MacPherson Infiniti

Joe MacPherson Oldsmobile

John M. Lance Ford, LLC

J-R Advertising Company

J-R Motors Company North

J-R Motors Company South

JRJ Investments, Inc.

J-R-M Motors Company Northwest LLC

Kenyon Dodge, Inc.

King’s Crown Ford, Inc.

Kirkland Pontiac-Buick-GMC, Inc.

L.P. Evans Motors WPB, Inc.

L.P. Evans Motors, Inc.

Lance Children, Inc.

Leesburg Imports, LLC

Leesburg Motors, LLC

Les Marks Chevrolet, Inc.

Lew Webb’s Ford, Inc.

 	 
	 	 	 
	 	 	 
	 	 	 

93

 

	 	 	 	 	 

	 	 	 	 	 
	 	Lew Webb’s Irvine Nissan, Inc.

Lewisville Imports GP, LLC

Lewisville Imports, Ltd.

Lexus of Cerritos Limited Partnership

Lot 4 Real Estate Holdings, LLC

MacHoward Leasing

MacPherson Enterprises, Inc.

Magic Acquisition Corp.

Marks Family Dealerships, Inc.

Marks Transport, Inc.

Maroone Chevrolet Ft. Lauderdale, Inc.

Maroone Chevrolet, LLC

Maroone Dodge, LLC

Maroone Ford, LLC

Maroone Management Services, Inc

Maroone Oldsmobile, LLC

MC/RII, LLC

Mealey Holdings, Inc.

Mechanical Warranty Protection, Inc.

Metro Chrysler Jeep, Inc.

Midway Chevrolet, Inc.

Mike Hall Chevrolet, Inc.

Mike Shad Chrysler Plymouth Jeep Eagle, Inc.

Mike Shad Ford, Inc.

Miller-Sutherlin Automotive, LLC

Mission Blvd. Motors, Inc.

Mr. Wheels, Inc.

Mullinax East, LLC

Mullinax Ford North Canton, Inc.

Mullinax Ford South, Inc.

Mullinax Lincoln-Mercury, Inc.

Mullinax of Mayfield, LLC

Mullinax Used Cars, Inc.

Naperville Imports, Inc.

Newport Beach Cars, LLC

Nichols Ford, Ltd.

Nichols GP, LLC

Nissan of Brandon, Inc.

Northpoint Chevrolet, Inc.

Northpoint Ford, Inc.

Northwest Financial Group, Inc.

Ontario Dodge, Inc.

Orange County Automotive Imports, LLC

Payton-Wright Ford Sales, Inc.

Peyton Cramer Automotive

Peyton Cramer Ford

Peyton Cramer Infiniti

Peyton Cramer Jaguar

Peyton Cramer Lincoln-Mercury

Pierce Automotive Corporation

Pierce, LLC

 	 
	 	 	 
	 	 	 
	 	 	 

94

 

	 	 	 	 	 

	 	 	 	 	 
	 	Pitre Buick-Pontiac-GMC of Scottsdale, Inc.

Pitre Chrysler-Plymouth-Jeep of Bell, Inc.

Pitre Chrysler-Plymouth-Jeep of Scottsdale, Inc.

Pitre Isuzu-Subaru-Hyundai of Scottsdale, Inc.

Plains Chevrolet GP, LLC

Plains Chevrolet, Ltd.

PMWQ, Inc.

PMWQ, Ltd.

Port City Imports, Inc.

Port City Pontiac-GMC Trucks, Inc.

Prime Auto Resources, Inc.

Quality Nissan GP, LLC

Quality Nissan, Ltd.

Quinlan Motors, Inc.

R. Coop Limited

R.L. Buscher II, Inc.

R.L. Buscher III, Inc.

Real Estate Holdings, Inc.

Republic DM Property Acquisition Corp.

Republic Resources Company

Republic Risk Management Services, Inc.

Resources Aviation, Inc.

RI Merger Corp.

RI/ASC Acquisition Corp.

RI/BB Acquisition Corp.

RI/BBNM Acquisition Corp

RI/BRC Real Estate Corp.

RI/DM Acquisition Corp.

RI/Hollywood Nissan Acquisition Corp.

RI/LLC Acquisition Corp.

RI/LLC-2 Acquisition Corp.

RI/PII Acquisition Corp.

RI/RMC Acquisition GP, LLC

RI/RMC Acquisition, Ltd.

RI/RMP Acquisition Corp.

RI/RMT Acquisition GP, LLC

RI/RMT Acquisition, Ltd.

RI/WFI Acquisition Corporation

RKR Motors, Inc.

Rosecrans Investments, LLC

Roseville Motor Corporation

RRM Corporation

RSHC, Inc.

Sahara Imports, Inc.

Sahara Nissan, Inc.

Saul Chevrolet, Inc.

SCM Realty, Inc.

Service Station Holding Corp.

Shamrock Ford, Inc.

Six Jays LLC

SMI Motors, Inc.

 	 
	 	 	 
	 	 	 
	 	 	 

95

 

	 	 	 	 	 

	 	 	 	 	 
	 	Smythe European, Inc.

Southwest Dodge, LLC

Spitfire Properties, Inc.

Star Motors, LLC

Steakley Chevrolet GP, LLC

Steakley Chevrolet, Ltd.

Steeplechase Motor Company

Steve Moore Chevrolet Delray, LLC

Steve Moore Chevrolet, LLC

Steve Moore’s Buy-Right Auto Center, Inc.

Steve Rayman Pontiac-Buick-GMC-Truck, LLC

Stevens Creek Motors, Inc.

Sunrise Nissan of Jacksonville, Inc.

Sunrise Nissan of Orange Park, Inc.

Sunset Pontiac-GMC Truck South, Inc.

Sunset Pontiac-GMC, Inc.

Superior Nissan, Inc.

Sutherlin Chrysler-Plymouth Jeep-Eagle, LLC

Sutherlin H. Imports, LLC

Sutherlin Imports, LLC

Sutherlin Nissan, LLC

Sutherlin Town Center, Inc.

Tartan Advertising, Inc.

Tasha Incorporated

Taylor Jeep Eagle, LLC

Team Dodge, Inc.

Terry York Motor Cars, Ltd.

Texan Ford Sales, Ltd.

Texan Ford, Inc.

Texan Sales GP, LLC

Texan Lincoln-Mercury, Inc.

Texas Management Companies LP, LLC

The Consulting Source, Inc.

The Pierce Corporation II, Inc.

Tinley Park A. Imports, Inc.

Tinley Park J. Imports, Inc.

Tinley Park V. Imports, Inc.

Torrance Nissan, LLC

Tousley Ford, Inc.

Town & Country Chrysler Jeep, Inc.

Toyota Cerritos Limited Partnership

Triangle Corporation

T-West Sales & Service, Inc.

Valencia B. Imports, Inc.

Valencia Dodge

Valencia H. Imports, Inc.

Valley Chevrolet, LLC

Vanderbeek Motors, Inc.

Vanderbeek Olds/GMC Truck, Inc.

Village Motors, LLC

Vince Wiese Chevrolet, Inc.

 	 
	 	 	 
	 	 	 
	 	 	 

96

 

	 	 	 	 	 

	 	 	 	 	 
	 	W.O. Bankston Lincoln-Mercury, Inc.

W.O. Bankston Nissan, Inc.

Wallace Dodge, LLC

Wallace Ford, LLC

Wallace Lincoln-Mercury, LLC

Wallace Nissan, LLC

Webb Automotive Group, Inc.

West Colton Cars, Inc.

West Side Motors, Inc.

Westgate Chevrolet GP, LLC

Westgate Chevrolet, Ltd

Westmont A. Imports, Inc.

Westmont B. Imports, Inc.

Westmont M. Imports, Inc.

Woody Capital Investment Company II

Woody Capital Investment Company III

Working Man’s Credit Plan, Inc.

York Enterprises South, Inc.

 	 
	 	 	 
	 	 	 
	 	 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	                    /s/ Gordon E. Devens
 	 
	 	 	Name:  	Gordon E. Devens 	 
	 	 	Title:  	Authorized Signatory 	 

97

 

	 	 	 	 	 

EXHIBIT A-1

[Face of Floating Rate Note]

[Insert the Global Note Legend, if applicable pursuant to the provisions of the Indenture]

[Insert the Private Placement Legend, if applicable pursuant to the provisions of the Indenture]

CUSIP:

[[Rule 144A][Regulation S] Global Note representing]

Floating Rate Senior Notes due 2013

			
	No.:___
	 	$___

AutoNation, Inc.

promises
to pay to ____________________ or registered assigns, the principal sum
of ______________ Dollars on April 15, 2013.

Interest Payment Dates: January 15, April 15, July 15 and October 15 of each year, commencing July
15, 2006.

Record Dates: January 1, April 1, July 1 and October 1.

     IN WITNESS HEREOF, the Company has caused this instrument to be duly executed.

Dated:

	 	 	 	 	 
	 	AUTONATION, INC.

 	 
	 	By:  	/s/
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

1

 

	 	 	 	 	 

     This is one of the Floating Rate Notes referred to in the within-mentioned Indenture:

	 	 	 	 	 
	 	WELLS FARGO BANK, N.A.,

as Trustee

 	 
	 	By:  	/s/
 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

2

 

	 	 	 	 	 

(Back of Note)

Floating Rate Senior Notes due 2013

[Insert the Global Note Legend, if applicable pursuant to the provisions of the Indenture]

[Insert the Private Placement Legend, if applicable pursuant to the provisions of the Indenture]

          Capitalized terms used herein shall have the meanings assigned to them in the Indenture
referred to below unless otherwise indicated.

          1. Interest. AutoNation, Inc. promises to pay interest on the principal
amount of this Floating Rate Note at a rate per annum, reset quarterly, equal to LIBOR (as defined
below) plus 2.0% as determined by the calculation agent (the “Calculation Agent”), which
shall initially be the Trustee, commencing April 12, 2006 until maturity and shall pay Additional
Interest, if any, payable pursuant to Section 2(d) of the Registration Rights Agreement referred to
below. The Company shall make each interest payment in cash quarterly in arrears on January 15,
April 15, July 15 and October 15 of each year, or if any such day is not a Business Day, on the
next succeeding Business Day (each an “Interest Payment Date”). Notwithstanding the
foregoing, if any such Interest Payment Date (other than an Interest Payment Date at maturity)
would otherwise be a day that is not a Business Day, then the interest payment will be postponed to
the next succeeding Business Day (except if that Business Day falls in the next succeeding calendar
month, then interest will be paid on the immediately preceding Business Day). If the maturity date
of the Floating Rate Notes is a day that is not a Business Day, all payments to be made on such day
will be made on the next succeeding Business Day, with the same force and effect as if made on the
maturity date, and no additional interest will be payable as a result of such delay in payment. The
interest rate for each Interest Period (as defined below), other than the Interest Period
commencing April 12, 2006 and continuing until July 14, 2006, for which the interest rate shall be
7.04469%, shall be adjusted with effect from the Interest Payment Date on which such Interest
Period begins. Interest on the Floating Rate Notes will accrue from the most recent date to which
interest has been paid or, if no interest has been paid, from the date of original issuance;
provided, that the first Interest Payment Date shall be July 15, 2006. The Company shall pay
interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue
principal and premium, if any, from time to time on demand to the extent lawful at a rate that is
1% per annum in excess of the rate then in effect; it shall pay interest (including post-petition
interest in any proceeding under any Bankruptcy Law) on overdue installments of interest and
Additional Interest (without regard to any applicable grace periods) from time to time on demand at
the rate borne by the Floating Rate Notes.

          Interest will be computed on the basis of a 360-day year for the actual number of days
elapsed. The amount of interest for each day that the Floating Rate Notes are outstanding (the
“Daily Interest Amount”) shall be calculated by dividing the interest rate in effect for
such day by 360 and multiplying the result by the principal outstanding amount of the Floating Rate
Notes. The amount of interest to be paid on the Floating Rate Notes for each Interest Period shall
be calculated by adding the Daily Interest Amounts for each day in the Interest Period.

          “Determination Date,” with respect to an Interest Period, will be the second London
Banking Day preceding the first day of the Interest Period.

          “Interest Period” means the period commencing on and including an Interest Payment
Date and ending on and including the day immediately preceding the next succeeding Interest Payment
Date; provided that the first Interest Period shall commence on and include April 12, 2006, and end
on and include July 14, 2006.

3

 

          “LIBOR” with respect to an Interest Period will be the rate (expressed as a
percentage per annum) for deposits in United States dollars for three-month periods beginning on
the first day of such Interest Period that appears on Telerate Page 3750 as of 11:00 a.m., London
time, on the Determination Date. If Telerate Page 3750 does not include such a rate or is
unavailable on a Determination Date, the Calculation Agent will request the principal London
office of each of four major banks in the London interbank market, as selected by the Calculation
Agent, to provide such bank’s offered quotation (expressed as a percentage per annum), as of
approximately 11:00 a.m., London time, on such Determination Date, to prime banks in the London
interbank market for deposits in a Representative Amount in United States dollars for a three-month
period beginning on the first day of such Interest Period. If at least two such offered quotations
are so provided, LIBOR for the Interest Period will be the arithmetic mean of such quotations. If
fewer than two such quotations are so provided, the Calculation Agent will request each of three
major banks in New York City, as selected by the Calculation Agent, to provide such bank’s rate
(expressed as a percentage per annum), as of approximately 11:00 a.m., New York City time, on such
Determination Date, for loans in a Representative Amount in United States dollars to leading
European banks for a three-month period beginning on the first day of such Interest Period. If at
least two such rates are so provided, LIBOR for the Interest Period will be the arithmetic mean of
such rates. If fewer than two such rates are so provided, then LIBOR for the Interest Period will
be LIBOR in effect with respect to the immediately preceding Interest Period.

          “London Banking Day” is any day in which dealings in United States dollars are
transacted or, with respect to any future date, are expected to be transacted in the London
interbank market.

          “Representative Amount” means a principal amount of not less than $1,000,000 for a
single transaction in the relevant market at the relevant time.

          “Treasury Yield” 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 (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 April 15, 2008 (in the case of Floating Rate Notes)
or April 15, 2009 (in the case of Fixed Rate Notes); provided, however, that if the period from the
redemption date to April 15, 2008 (in the case of Floating Rate Notes) or April 15, 2009 (in the
case of Fixed Rate Notes) 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.

          All percentages resulting from any of the above calculations will be rounded, if necessary, to
the nearest one hundred-thousandth of a percentage point, with five one-millionths of a percentage
point being rounded upwards (e.g., 9.876545% (or .09876545) being
rounded to 9.87655% (or .0987655)) and all dollar amounts used in or resulting from such calculations will be rounded to
the nearest cent (with one-half cent being rounded upwards).

          The interest rate on the Floating Rate Notes will in no event be higher than the maximum rate
permitted by applicable law.

          The Calculation Agent will, upon the request of the holder of any Floating Rate Note, provide
the interest rate then in effect with respect to the Floating Rate Notes. All calculations made by
the Calculation Agent in the absence of manifest error will be conclusive for all purposes and
binding on the Company, the Guarantors and the holders of the Floating Rate Notes.

4

 

          2. Method of Payment. The Company will pay interest on the Floating Rate
Notes (except defaulted interest) and Additional Interest to the Persons who are registered Holders
of the Floating Rate Notes at the close of business on the January 1, April 1, July 1 and October 1
immediately preceding the relevant Interest Payment Date, even if such Floating Rate Notes are
canceled after such record date and on or before such Interest Payment Date, except as provided in
Section 2.12 of the Indenture with respect to defaulted interest.

          Principal, premium, if any, and interest and Additional Interest on the Notes will be payable
at the office or agency of the Company maintained for such purpose or at the option of the Company,
payment of interest and Additional Interest may be made by check mailed to the Holders of the Notes
at their respective addresses set forth in the register of Holders of Notes. Until otherwise
designated by the Company, the Company’s office or agency will be the office of the Trustee
maintained for such purpose. The Notes will be issued in denominations of $1,000 and integral
multiples thereof. Such payment shall be 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.

          3. Paying Agent and Registrar. Initially, Wells Fargo Bank, N.A., the Trustee
under the Indenture, will act as Paying Agent and Registrar. The Company may change any Paying
Agent or Registrar without notice to any Holder. The Company or any of its Subsidiaries may act in
any such capacity.

          4. Indenture. The Company issued the Floating Rate Notes under an Indenture
dated as of April 12, 2006 (as amended, the “Indenture”) between the Company, each of the
Guarantors named in the Indenture and the Trustee. The terms of the Notes include those stated in
the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939,
as amended (15 U.S. Code ss.ss. 77aaa-77bbbb) (the 11 “TIA”). The Notes are subject to all such
terms, and Holders are referred to the Indenture and the TIA for a statement of such terms. To the
extent any provision of this Note conflicts with the express provisions of the Indenture, the
provisions of the Indenture shall govern and be controlling.

          5. Optional Redemption. Except as described below, the Floating Rate Notes
will not be redeemable by the Company prior to maturity.

          At any time prior to April 15, 2008, the Company, at its option, may use the net cash proceeds
of one or more Public Equity Offerings to redeem up to an aggregate of 40% of the aggregate
principal amount of Floating Rate Notes at a redemption price equal to 100% of the principal amount
of the Floating Rate Notes to be redeemed plus a premium (as a percentage of the principal amount
of the Notes to be redeemed) equal to the applicable interest rate on the date on which notice of
redemption was given, plus accrued and unpaid interest and Additional 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). At least 60% of the aggregate principal amount of the
Floating Rate Notes being redeemed must remain outstanding immediately after the occurrence of such
redemption. In order to effect any such redemption, the Company must complete such redemption
within 60 days of the closing of the Public Equity Offering.

          “Public Equity Offering” means an underwritten public offering of common stock (other than
Redeemable Capital Stock) of the Company with gross cash proceeds to the Company of at least $50
million pursuant to a registration statement that has been declared effective by the Commission
pursuant to the Securities Act (other than a registration statement on Form S-4 (or any successor
form covering substantially the same transactions), Form S-8 (or any successor form covering
substantially the same

5

 

transactions) or otherwise relating to equity securities issuable under any employee benefit plan
of the Company).

          At any time prior to April 15, 2008, the Company may redeem all or, from time to time, a part
of the Floating Rate Notes, at a redemption price equal to 100% of the principal amount of Floating
Rate Notes redeemed plus the Applicable Premium as of, and accrued and unpaid interest and
Additional Interest, if any, to the redemption date (subject to the right of holders of record on
the relevant record date to receive interest due on the relevant Interest Payment Date).

          On and after April 15, 2008, the Company may redeem all or, from time to time, a part of the
Floating Rate Notes, at the following redemption prices (expressed as a percentage of principal
amount) plus accrued and unpaid interest and Additional Interest, if any, to the applicable
redemption date (subject to the right of Holders of record on the relevant record date to receive
interest due on the relevant Interest Payment Date), if redeemed during the twelve-month period
beginning on April 15 of the years indicated below:

	 	 	 	 	 
	Year	 	Percentage	 
	2008
	 	 	103.000	%
	2009
	 	 	102.000	%
	2010
	 	 	101.000	%
	2011 and thereafter
	 	 	100.000	%

          6. Repurchase Upon Change of Control. If a Change of Control occurs, each
Holder of Notes will have the right to require that the Company purchase all or any part (in
integral multiples of $1,000) of such Holder’s Notes pursuant to the offer described below (the
“Change of Control Offer”). In the Change of Control Offer, the Company will offer to
purchase all of the Notes, at a purchase price (the “Change of Control Purchase Price”) in
cash in an amount equal to 101% of the principal amount of such Notes (the “Change of Control
Payment”), plus accrued and unpaid interest, if any, to the date of purchase (the “Change
of Control Purchase Date”) (subject to the rights of holders of record on relevant record dates
to receive interest due on an interest payment date).

          Within 30 days after any Change of Control or, at the Company’s option, prior to such Change
of Control but after it is publicly announced, the Company must notify the Trustee and give written
notice of the Change of Control to each Holder of Notes, by first-class mail, postage prepaid, at
his, her or its address appearing in the security register. The notice must state, among other
things,

     (i) that a Change of Control has occurred, or will occur, and the
date or expected date of such event;

     (ii) the circumstances and relevant facts regarding such Change of
Control, including information with respect to pro forma historical
income, cash flow and capitalization after giving effect to such
Change of Control;

     (iii) the purchase price and the 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 the notice is mailed, or such later date
as is necessary to comply with requirements under the Exchange Act;

6

 

     (iv) that any Note not tendered will continue to accrue interest;
(v) that, unless the Company defaults in the payment of the Change
of Control Purchase Price, any Notes accepted for payment pursuant
to the Change of Control Offer will cease to accrue interest after
the Change of Control Purchase Date; and

     (v) other procedures that a Holder of Notes must follow to accept
a Change of Control Offer or to withdraw acceptance of the Change
of Control Offer.

          7. Notice of Optional Redemption. Notice of redemption pursuant to
Paragraph 5 of this Floating Rate Note will be mailed by first class mail at least 30 days but not
more than 60 days before the redemption date to each Holder of Floating Rate Notes to be redeemed
at its registered address. Notices of redemption may not be conditional. Floating Rate Notes in
denominations larger than $1,000 may be redeemed in part. If any Floating Rate Note is to be
redeemed in part only, the notice of redemption that relates to such Floating Rate Note shall state
the portion of the principal amount thereof to be redeemed. A new Floating Rate Note in principal
amount equal to the unredeemed portion thereof will be issued in the name of the Holder thereof
upon cancellation of the original Floating Rate Note. On and after the redemption date interest
ceases to accrue on Floating Rate Notes or portions thereof called for redemption.

          8. Denominations, Transfer, Exchange. The Floating Rate Notes are in
registered form without coupons in denominations of $1,000 and integral multiples of $1,000. The
transfer of Floating Rate Notes may be registered and Floating Rate Notes may be exchanged as
provided in the Indenture. The Registrar and the Trustee may require a Holder, among other things,
to furnish appropriate endorsements and transfer documents and the Company may require a Holder to
pay any taxes and fees required by law or permitted by the Indenture. The Company or the Registrar
is not required to transfer or exchange any Floating Rate Note selected for redemption. Also, the
Company or the Registrar is not required to transfer or exchange any Floating Rate Notes for a
period of 15 days before the mailing of a notice of redemption of Floating Rate Notes to be
redeemed.

          9. Persons Deemed Owners. The registered Holder of a Floating Rate Note may be
treated as its owner for all purposes.

          10. Amendment, Supplement and Waiver. The Indenture, the Guarantees or the
Floating Rate Notes may be amended or supplemented as provided in the Indenture.

          11. Defaults and Remedies. If an Event of Default occurs and is continuing,
the principal of all Floating Rate Notes then outstanding, plus all accrued and unpaid interest, if
any, to and including the date the Notes are paid, may be declared due and payable in the manner
and with the effect provided in the Indenture. Holders may not enforce the Indenture or the
Floating Rate Notes except as provided in the Indenture. The Trustee is not obligated to enforce
the Indenture or the Notes unless it has received indemnity reasonably satisfactory to it. The
Indenture permits, subject to certain limitations therein provided, Holders of a majority in
aggregate principal amount of the Notes of the applicable series then outstanding to direct the
Trustee in its exercise of any trust or power. The Trustee may withhold from Holders of Floating
Rate Notes notice of any continuing Default or Event of Default (except a Default in payment of
principal or interest when due, for any reason or a Default in compliance with Article Five of the
Indenture) if it determines that withholding notice is in their interest.

          12. Trustee Dealings with the Company. The Trustee, in its individual or any
other capacity, may make loans to, accept deposits from, and perform services for the Company or
its

7

 

Affiliates, and may otherwise deal with the Company or its Affiliates, as if it were not the
Trustee; however, if it acquires any conflicting interest it must eliminate such conflict within 90
days, apply to the Commission for permission to continue or resign.

          13. No Recourse Against Others. A director, officer, employee, incorporator
or stockholder, of the Company or any Guarantor, as such, shall not have any liability for any
obligations of the Company or any Guarantor under the Floating Rate Notes, the Indenture, the
Guarantees, the Registration Rights Agreement or for any claim based on, in respect of, or by
reason of, such obligations or their creation. Each Holder by accepting a Floating Rate Note waives
and releases all such liability. The waiver and release are part of the consideration for the
issuance of the Floating Rate Notes.

          14. Guarantees. Assuming certain conditions described in the Indenture have
been satisfied, this Floating Rate Note will be entitled to the benefits of certain Guarantees made
for the benefit of the Holders. Reference is hereby made to the Indenture for a statement of the
respective rights, limitations of rights, duties and obligations thereunder of the Guarantors, the
Trustee and the Holders.

          15. Authentication. This Floating Rate Note shall not be valid or obligatory
until authenticated by the manual signature of the Trustee or an authenticating agent.

          16. Abbreviations. Customary abbreviations may be used in the name of a
Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the
entireties), JT TEN (=joint tenants with right of survivorship and not as tenants in common), CUST
(= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

          17. Additional Rights of Holders of Notes. In addition to the rights
provided to Holders of Floating Rate Notes under the Indenture, Holders of Floating Rate Notes
shall have all the rights set forth in the Exchange and Registration Rights Agreement dated as of
the date of the Indenture, between the Company and the parties named on the signature pages thereof
(the “Registration Rights Agreement”).

          18. CUSIP Numbers. Pursuant to a recommendation promulgated by the Committee
on Uniform Security Identification Procedures, the Company has caused CUSIP numbers to be printed
on the Notes and the Trustee may use CUSIP numbers in notices of redemption as a convenience to
Holders. No representation is made as to the accuracy of such numbers either as printed on the
Notes or as contained in any notice of redemption and reliance may be placed only on the other
identification numbers placed thereon.

          19. Governing Law. THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND
BE USED TO CONSTRUE THIS FLOATING RATE NOTE.

          The Company will furnish to any Holder upon written request and without charge a copy of the
Indenture and/or the Registration Rights Agreement. Requests may be made to: AutoNation, Inc.,
AutoNation Tower, 110 S.E. 6th Street, Fort Lauderdale, Florida 33301, Telecopier No.: (954)
769-6340, Attention: General Counsel.

8

 

ASSIGNMENT FORM

To assign this Note, fill in the form below: (I) or (we) assign and transfer this Floating Rate
Note to

 

(Insert assignee’s soc. sec. or tax I.D. no.)

 

 

 

(Print or type assignee’s name, address and zip code)

and
irrevocably appoint ___________________ to transfer this Floating Rate Note on the books
of the Company. The agent may substitute another to act for him.

Date:__________________

	 	 	 	 	 
	 	Your Signature:

 	 
	 	/s/
 	 
	 	(Sign exactly as your name 	 
	 	appears on the Floating Rate Note) 	 
	 

	 	 	 	 	 
	 	SIGNATURE GUARANTEE

 	 
	 	/s/
 	 
	 	Participant in a Recognized Signature 	 
	 	Guarantee Medallion Program 	 

9

 

	 	 	 	 	 

OPTION OF HOLDER TO ELECT PURCHASE

     If you want to elect to have this Floating Rate Note purchased by the Company pursuant to
Section 4.10 or 4.15 of the Indenture, check the box below:

	 	 	 
	 ̈ Section 4.10

	 	 ̈ Section 4.15

     If you want to elect to have only part of the Floating Rate Note purchased by the Company
pursuant to Section 4.10 or Section 4.15 of the Indenture, state the amount you elect to have
purchased:

$ ________________________________

Date: ________________________________

Your Signature:________________________

(Sign exactly as your name appears on the Floating Rate Note)

Tax Identification No:_____________________

	 	 	 	 	 
	 	SIGNATURE GUARANTEE

 	 
	 	/s/
 	 
	 	Participant in a Recognized Signature 	 
	 	Guarantee Medallion Program 	 

10

 

	 	 	 	 	 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE1

     The following exchanges of a part of this Global Note for an interest in another Global Note
or for a Definitive Note, or exchanges of a part of another Global Note or Definitive Note for an
interest in this Global Note, have been made:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Principal Amount of	 	 	Signature of	 
	 	 	 	 	 	 	 	 	 	 	this Global Note	 	 	authorized	 
	 	 	Amount of decrease	 	 	Amount of increase	 	 	following such	 	 	signatory of	 
	 	 	in Principal Amount	 	 	in Principal Amount	 	 	decrease (or	 	 	Trustee of	 
	Date of Exchange	 	of this Global Note	 	 	of this Global Note	 	 	increase)	 	 	Custodian	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

			
	1	 	This schedule should be included only if the Floating Rate Note is issued in global form.

11

 

EXHIBIT A-2

[Face of Fixed Rate Note]

[Insert the Global Note Legend, if applicable pursuant to the provisions of the Indenture]

[Insert the Private Placement Legend, if applicable pursuant to the provisions of the Indenture]

CUSIP:

[[Rule 144A][Regulation S] Global Note representing]

7% Senior Notes due 2014

			
	No.:___
	 	$___

AutoNation, Inc.

promises
to pay to ____________________ or registered assigns, the principal sum
of __________________________________ Dollars on April 15, 2014.

Interest Payment Dates: April 15 and October 15 of each year, commencing October 15, 2006.

Record Dates: April 1 and October 1.

     IN WITNESS HEREOF, the Company has caused this instrument to be duly executed.

     Dated:

	 	 	 	 	 
	 	AUTONATION, INC.

 	 
	 	By:  	/s/
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

1

 

	 	 	 	 	 

     This is one of the Fixed Rate Notes referred to in the within-mentioned Indenture:

	 	 	 	 	 
	 	WELLS FARGO BANK, N.A.,

as Trustee

 	 
	 	By:  	/s/
 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

2

 

	 	 	 	 	 

(Back of Note)

7% Senior Rate Note due 2014

          Capitalized terms used herein shall have the meanings assigned to them in the Indenture
referred to below unless otherwise indicated.

          1. Interest. AutoNation, Inc. promises to pay interest on the principal amount of
this Note at 7% per annum from April 12, 2006 until maturity and shall pay the Additional Interest
payable pursuant to Section 2(d) of the Registration Rights Agreement referred to below. The
Company will pay interest and Additional Interest in cash semi-annually in arrears on April 15 and
October 15 of each year, or if any such day is not a Business Day, on the next succeeding Business
Day (each an “Interest Payment Date”). Interest on the Fixed Rate Notes will accrue from
the most recent date to which interest has been paid or, if no interest has been paid, from the
date of original issuance; provided that if there is no existing Default in the payment of
interest, and if this Fixed Rate Note is authenticated between a record date referred to on the
face hereof and the next succeeding Interest Payment Date, interest shall accrue from such next
succeeding Interest Payment Date; provided, further, that the first Interest Payment Date shall be
October 15, 2006. The Company shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue principal and premium, if any, from time to time on
demand to the extent lawful at a rate that is 1% per annum in excess of the rate then in effect; it
shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on
overdue installments of interest and Additional Interest (without regard to any applicable grace
periods) from time to time on demand at the same rate to the extent lawful. Interest will be
computed on the basis of a 360-day year comprised of twelve 30-day months.

          2. Method of Payment. The Company shall pay interest on the Notes (except
defaulted interest) and Additional Interest to the Persons who are registered Holders of Notes at
the close of business on the April 1 or October 1 immediately preceding the relevant Interest
Payment Date, even if such Notes are canceled after such record date and on or before such Interest
Payment Date, except as provided in Section 2.12 of the Indenture with respect to defaulted
interest. Principal, premium, if any, and interest and Additional Interest on the Notes will be
payable at the office or agency of the Company maintained for such purpose or, at the option of the
Company, payment of interest and Additional Interest may be made by check mailed to the Holders of
the Notes at their respective addresses set forth in the register of Holders of Notes. Until
otherwise designated by the Company, the Company’s office or agency will be the office of the
Trustee maintained for such purpose. The Fixed Rate Notes will be issued in denominations of $1,000
and integral multiples thereof. Such payment shall be 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.

          3. Paying Agent and Registrar. Initially, Wells Fargo Bank, N.A., the
Trustee under the Indenture, will act as Paying Agent and Registrar. The Company may change any
Paying Agent or Registrar without notice to any Holder. The Company or any of its Subsidiaries may
act in any such capacity.

          4. Indenture. The Company issued the Notes under an Indenture dated as of
April 12, 2006 (as amended, the “Indenture”) between the Company, each of the Guarantors
named in the Indenture and the Trustee. The terms of the Notes include those stated in the
Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as
amended (15 U.S. Code ss.ss. 77aaa-77bbbb) (the 11 “TIA”). The Notes are subject to all such terms,
and Holders are referred to the Indenture and the TIA for a statement of such terms. To the extent
any provision of this Note conflicts with the express provisions of the Indenture, the provisions
of the Indenture shall govern and be controlling.

3

 

          5. Optional Redemption. Except as described below, the Notes will not be
redeemable by the Company prior to maturity.

          At any time prior to April 15, 2009, the Company, at its option, may use the net cash proceeds
of one or more Public Equity Offerings to redeem up to an aggregate of 40% of the aggregate
principal amount of Fixed Rate Notes at a redemption price equal to 107% of the aggregate principal
amount of the Fixed Rate Notes redeemed plus 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). At least 60% of the aggregate principal amount of the Fixed Rate
Notes being redeemed must remain outstanding immediately after the occurrence of such redemption.
In order to effect any such redemption, the Company must mail a notice of redemption no later than
30 days after the closing of the related Public Equity Offering and must complete such redemption
within 60 days of the closing of the Public Equity Offering.

          “Public Equity Offering” means an underwritten public offering of common stock (other than
Redeemable Capital Stock) of the Company with gross cash proceeds to the Company of at least $50
million pursuant to a registration statement that has been declared effective by the Commission
pursuant to the Securities Act (other than a registration statement on Form S-4 (or any successor
form covering substantially the same transactions), Form S-8 (or any successor form covering
substantially the same transactions) or otherwise relating to equity securities issuable under any
employee benefit plan of the Company).

          At any time prior to April 15, 2009, the Company may redeem all or, from time to time, a part
of the Fixed Rate Notes, at a redemption price equal to 100% of the principal amount of Fixed Rate
Notes redeemed plus the Applicable Premium as of, and accrued and unpaid interest and Additional
Interest, if any, to the redemption date (subject to the right of holders of record on the relevant
record date to receive interest due on the relevant Interest Payment Date).

          On and after April 15, 2009, the Company may redeem all or, from time to time, a part of the
Fixed Rate Notes at the following redemption prices (expressed as a percentage of principal amount)
plus accrued and unpaid interest and Additional Interest, if any, to the applicable redemption date
(subject to the right of holders of record on the relevant record date to receive interest due on
the relevant Interest Payment Date), if redeemed during the twelve-month period beginning on April
15 of the years indicated below:

	 	 	 	 	 
	Year	 	Percentage	 
	2009
	 	 	105.250	%
	2010
	 	 	103.500	%
	2011
	 	 	101.750	%
	2012 and thereafter
	 	 	100.000	%

          6. Repurchase Upon Change of Control. If a Change of Control occurs, each
Holder of Notes will have the right to require that the Company purchase all or any part (in
integral multiples of $1,000) of such Holder’s Notes pursuant to the offer described below (the
“Change of Control Offer”). In the Change of Control Offer, the Company will offer to
purchase all of the Notes, at a purchase price (the “Change of Control Purchase Price”) in
cash in an amount equal to 101% of the principal amount of such Notes (the “Change of Control
Payment”), plus accrued and unpaid interest, if any, to the date of purchase (the “Change
of Control Purchase Date”) (subject to the rights of holders of record on relevant record dates
to receive interest due on an interest payment date).

4

 

          Within 30 days after any Change of Control or, at the Company’s option, prior to such Change
of Control but after it is publicly announced, the Company must notify the Trustee and give written
notice of the Change of Control to each Holder of Notes, by first-class mail, postage prepaid, at
his, her or its address appearing in the security register. The notice must state, among other
things,

     (i) that a Change of Control has occurred or will occur, and the
date or expected date of such event;

     (ii) the circumstances and relevant facts regarding such Change of
Control, including information with respect to pro forma historical
income, cash flow and capitalization after giving effect to such
Change of Control;

     (iii) the purchase price and the 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 the notice is mailed, or such later date
as is necessary to comply with requirements under the Exchange Act;

     (iv) that any Note not tendered will continue to accrue interest;
(v) that, unless the Company defaults in the payment of the Change
of Control Purchase Price, any Notes accepted for payment pursuant
to the Change of Control Offer will cease to accrue interest after
the Change of Control Purchase Date; and

     (v) other procedures that a Holder of Notes must follow to accept
a Change of Control Offer or to withdraw acceptance of the Change
of Control Offer.

          7. Notice of Optional Redemption. Notice of redemption pursuant to
Paragraph 5 of this Fixed Rate Note will be mailed by first class mail at least 30 days but not
more than 60 days before the redemption date to each Holder of Fixed Rate Notes to be redeemed at
its registered address. Notices of redemption may not be conditional. Fixed Rate Notes in
denominations larger than $1,000 may be redeemed in part. If any Fixed Rate Note is to be redeemed
in part only, the notice of redemption that relates to such Fixed Rate Note shall state the portion
of the principal amount thereof to be redeemed. A new Fixed Rate Note in principal amount equal to
the unredeemed portion thereof will be issued in the name of the Holder thereof upon cancellation
of the original Fixed Rate Note. On and after the redemption date interest ceases to accrue on
Fixed Rate Notes or portions thereof called for redemption.

          8. Denominations, Transfer, Exchange. The Fixed Rate Notes are in
registered form without coupons in denominations of $1,000 and integral multiples of $1,000. The
transfer of Fixed Rate Notes may be registered and Fixed Rate Notes may be exchanged as provided in
the Indenture. The Registrar and the Trustee may require a Holder, among other things, to furnish
appropriate endorsements and transfer documents and the Company may require a Holder to pay any
taxes and fees required by law or permitted by the Indenture. The Company or the Registrar is not
required to transfer or exchange any Fixed Rate Note selected for redemption. Also, the Company or
the Registrar is not required to transfer or exchange any Fixed Rate Notes for a period of 15 days
before the mailing of a notice of redemption of Fixed Rate Notes to be redeemed.

          9. Persons Deemed Owners. The registered Holder of a Fixed Rate Note may
be treated as its owner for all purposes.

5

 

          10. Amendment, Supplement and Waiver. The Indenture, the Guarantees or the
Fixed Rate Notes may be amended or supplemented as provided in the Indenture.

          11. Defaults and Remedies. If an Event of Default occurs and is continuing,
the principal of all Fixed Rate Notes then outstanding, plus all accrued and unpaid interest, if
any, to and including the date the Notes are paid, may be declared due and payable in the manner
and with the effect provided in the Indenture. Holders may not enforce the Indenture or the Fixed
Rate Notes except as provided in the Indenture. The Trustee is not obligated to enforce the
Indenture or the Notes unless it has received indemnity reasonably satisfactory to it. The
Indenture permits, subject to certain limitations therein provided, Holders of a majority in
aggregate principal amount of the Notes of the applicable series then outstanding to direct the
Trustee in its exercise of any trust or power. The Trustee may withhold from Holders of Fixed Rate
Notes notice of any continuing Default or Event of Default (except a Default in payment of
principal or interest when due, for any reason or a Default in compliance with Article Five of the
Indenture) if it determines that withholding notice is in their interest.

          12. Trustee Dealings with the Company. The Trustee, in its individual or any
other capacity, may make loans to, accept deposits from, and perform services for the Company or
its Affiliates, and may otherwise deal with the Company or its Affiliates, as if it were not the
Trustee; however, if it acquires any conflicting interest it must eliminate such conflict within 90
days, apply to the Commission for permission to continue or resign.

          13. No Recourse Against Others. A director, officer, employee, incorporator
or stockholder, of the Company or any Guarantor, as such, shall not have any liability for any
obligations of the Company or any Guarantor under the Fixed Rate Notes, the Indenture, the
Guarantees, the Registration Rights Agreement or for any claim based on, in respect of, or by
reason of, such obligations or their creation. Each Holder by accepting a Fixed Rate Note waives
and releases all such liability. The waiver and release are part of the consideration for the
issuance of the Fixed Rate Notes.

          14. Guarantees. Assuming certain conditions described in the Indenture
have been satisfied, this Fixed Rate Note will be entitled to the benefits of certain Guarantees
made for the benefit of the Holders. Reference is hereby made to the Indenture for a statement of
the respective rights, limitations of rights, duties and obligations thereunder of the Guarantors,
the Trustee and the Holders.

          15. Authentication. This Fixed Rate Note shall not be valid or obligatory
until authenticated by the manual signature of the Trustee or an authenticating agent.

          16. Abbreviations. Customary abbreviations may be used in the name of a
Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the
entireties), JT TEN (=joint tenants with right of survivorship and not as tenants in common), CUST
(= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

          17. Additional Rights of Holders of Notes. In addition to the rights
provided to Holders of Fixed Rate Notes under the Indenture, Holders of Fixed Rate Notes shall have
all the rights set forth in the Exchange and Registration Rights Agreement dated as of the date of
the Indenture, between the Company and the parties named on the signature pages thereof (the
“Registration Rights Agreement”).

          18. CUSIP Numbers. Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures, the Company has caused CUSIP numbers to

6

 

be printed on the Notes and the Trustee may use CUSIP numbers in notices of redemption as a
convenience to Holders. No representation is made as to the accuracy of such numbers either as
printed on the Notes or as contained in any notice of redemption and reliance may be placed only on the other
identification numbers placed thereon.

          19 Governing Law. THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN
AND BE USED TO CONSTRUE THIS FIXED RATE NOTE.

          The Company will furnish to any Holder upon written request and without charge a copy of the
Indenture and/or the Registration Rights Agreement. Requests may be made to: AutoNation, Inc.,
AutoNation Tower, 110 S.E. 6th Street, Fort Lauderdale, Florida 33301, Telecopier No.: (954)
769-6340, Attention: General Counsel.

7

 

ASSIGNMENT FORM

To assign this Note, fill in the form below: (I) or (we) assign and transfer this Fixed Rate Noteto

 

(Insert assignee’s soc. sec. or tax I.D. no.)

 

 

 

(Print or type assignee’s name, address and zip code)

and
irrevocably appoint _____________________________ to transfer this Fixed Rate Note on the books of
the Company. The agent may substitute another to act for him.

 

Date:__________________

	 	 	 	 	 
	 	Your Signature:

 	 
	 	/s/
 	 
	 	(Sign exactly as your name
 	 
	 	appears on the Fixed Rate Note) 	 
	 

	 	 	 	 	 
	 	SIGNATURE GUARANTEE

 	 
	 	/s/
 	 
	 	Participant in a Recognized Signature 	 
	 	Guarantee Medallion Program 	 

8

 

	 	 	 	 	 

OPTION OF HOLDER TO ELECT PURCHASE

          If you want to elect to have this Fixed Rate Note purchased by the Company pursuant to Section
4.10 or 4.15 of the Indenture, check the box below:

	 	 	 
	 ̈ Section 4.10

	 	 ̈ Section 4.15

          If you want to elect to have only part of the Fixed Rate Note purchased by the Company
pursuant to Section 4.10 or Section 4.15 of the Indenture, state the amount you elect to have
purchased:

$ ______________________________

Date: __________________________

Your Signature: ________________

(Sign exactly as your name appears on the Fixed Rate Note)

Tax Identification No:_____________________

	 	 	 	 	 
	 	SIGNATURE GUARANTEE

 	 
	 	/s/
 	 
	 	Participant in a Recognized Signature 	 
	 	Guarantee Medallion Program 	 

9

 

	 	 	 	 	 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE2

     The following exchanges of a part of this Global Note for an interest in another Global Note
or for a Definitive Note, or exchanges of a part of another Global Note or Definitive Note for an
interest in this Global Note, have been made:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Principal Amount of	 	 	Signature of	 
	 	 	 	 	 	 	 	 	 	 	this Global Note	 	 	authorized	 
	 	 	Amount of decrease	 	 	Amount of increase	 	 	following such	 	 	signatory of	 
	 	 	in Principal Amount	 	 	in Principal Amount	 	 	decrease (or	 	 	Trustee of	 
	Date of Exchange	 	of this Global Note	 	 	of this Global Note	 	 	increase)	 	 	Custodian	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

			
	2	 	This schedule should be included only if the Fixed Rate Note is issued in global form.

10

 

EXHIBIT B

FORM OF CERTIFICATE OF TRANSFER

AutoNation, Inc.

AutoNation Tower

110 S.E. 6th Street

Fort Lauderdale, Florida 33301

Wells Fargo Bank, N.A.

213 Court Street

Suite 703

Middletown, Connecticut 06457

Telecopier No. (860) 704-6219

Attention: Corporate Trust Services

Re: AutoNation, Inc.

Re: [Floating Rate] [7%] Senior Notes due [2013][2014]

(CUSIPs [      ], [      ], [      ] and [      ])

          Reference is hereby made to the Indenture, dated as of April 12, 2006, (as amended, the
“Indenture”), between AutoNation, Inc., as issuer (the “Company”), each of the Guarantors
named in the Indenture, as Guarantors and Wells Fargo Bank, N.A., as trustee. Capitalized terms
used but not defined herein shall have the meanings given to them in the Indenture.

          ____________________
(the “Transferor”) owns and proposes to transfer the Note[s] or interest in
such Note[s] specified in Annex A hereto, in the principal
amount of $ _________________ in such Note[s]
or interests (the “Transfer”), to
__________________________ (the “Transferee”), as further specified in Annex A
hereto. In connection with the Transfer, the Transferor hereby certifies that:

[CHECK ALL THAT APPLY]

          1.  o  Check if Transferee will take delivery of a beneficial interest in a 144A Global Note or a
Definitive Note pursuant to Rule 144A. The Transfer is being effected pursuant to and in accordance
with Rule 144A under the United States Securities Act of 1933, as amended (the “Securities Act”),
and, accordingly, the Transferor hereby further certifies that the beneficial interest or
Definitive Note is being transferred to a Person that the Transferor reasonably believed and
believes is purchasing the beneficial interest or Definitive Note for its own account, or for one
or more accounts with respect to which such Person exercises sole investment discretion, and such
Person and each such account is a “qualified institutional buyer” within the meaning of Rule 144A
in a transaction meeting the requirements of Rule 144A and such Transfer is in compliance with any
applicable blue sky securities laws of any state of the United States. Upon consummation of the
proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial
interest or Definitive Note will be subject to the restrictions on transfer enumerated in the
Private Placement Legend printed on the 144A Global Note and/or the Definitive Note and in the
Indenture and the Securities Act.

          2.  o  Check if Transferee will take delivery of a beneficial interest in a Regulation S Global
Note or a Definitive Note pursuant to Regulation S. The Transfer is being effected pursuant to and
in accordance with Rule 903 or Rule 904 under the Securities Act and, accordingly, the Transferor
hereby further certifies that (i) the Transfer is not being made to a person in the United States
and (x) at the time

1

 

the buy order was originated, the Transferee was outside the United States or such Transferor
and any Person acting on its behalf reasonably believed and believes that the Transferee was
outside the United States or (y) the transaction was executed in, on or through the facilities of a
designated offshore securities market and neither such Transferor nor any Person acting on its
behalf knows that the transaction was prearranged with a buyer in the United States, (ii) no
directed selling efforts have been made in contravention of the requirements of Rule 903(b) or Rule
904(b) of Regulation S under the Securities Act, (iii) the transaction is not part of a plan or
scheme to evade the registration requirements of the Securities Act and (iv) if the proposed
transfer is being made prior to the expiration of the Restricted Period, the transfer is not being
made to a U.S. Person or for the account or benefit of a U.S. Person (other than an initial
purchaser). Upon consummation of the proposed Transfer in accordance with the terms of the
Indenture, the transferred beneficial interest or Definitive Note will be subject to the
restrictions on transfer enumerated in the Private Placement Legend printed on the Regulation S
Global Note and/or the Definitive Note and in the Indenture and the Securities Act.

          3.  o  Check and complete if Transferee will take delivery of a beneficial interest in the Global
Note or a Definitive Note pursuant to any provision of the Securities Act other than Rule 144A or
Regulation S. The Transfer is being effected in compliance with the transfer restrictions
applicable to beneficial interests in Restricted Global Notes and Restricted Definitive Notes and
pursuant to and in accordance with the Securities Act and any applicable blue sky securities laws
of any state of the United States, and accordingly the Transferor hereby further certifies that
(check one):

     (a)  o  such Transfer is being effected pursuant to and in accordance with Rule 144 under
the Securities Act;

or

     (b)  o  such Transfer is being effected to the Company or to a Subsidiary thereof;

or

     (c)  o  such Transfer is being effected pursuant to an effective registration statement
under the Securities Act and in compliance with the prospectus delivery requirements of the
Securities Act;

or

     (d)  o  such Transfer is being effected to an Institutional Accredited Investor and
pursuant to an exemption from the registration requirements of the Securities Act other than
Rule 144A, Rule 144 or Rule 904, and the Transferor hereby further certifies that it has not
engaged in any general solicitation within the meaning of Regulation D under the Securities
Act and the Transfer complies with the transfer restrictions applicable to beneficial
interests in a Restricted Global Note or Restricted Definitive Notes and the requirements of
the exemption claimed, which certification is supported by (1) a certificate executed by the
Transferee in the form of Exhibit D to the Indenture and (2) if such Transfer is in respect
of a principal amount of Notes at the time of transfer of less than $250,000, an Opinion of
Counsel provided by the Transferor or the Transferee (a copy of which the Transferor has
attached to this certification), to the effect that such Transfer is in compliance with the
Securities Act. Upon consummation of the proposed Transfer in accordance with the terms of
the Indenture, the transferred beneficial interest or Definitive Note will be subject to the
restrictions on transfer enumerated in the Private Placement Legend printed on the Global
Note and/or the Definitive Notes and in the Indenture and the Securities Act.

2

 

          4.  o  Check if Transferee will take delivery of a beneficial interest in an Unrestricted Global
Note or an Unrestricted Definitive Note.

          (a)  o  Check if Transfer is pursuant to Rule 144. (i) The Transfer is being effected pursuant to
and in accordance with Rule 144 under the Securities Act and in compliance, with the transfer
restrictions contained in the Indenture and any applicable blue sky securities laws of any state of
the United States and (ii) the restrictions on transfer contained in the Indenture and the Private
Placement Legend are not required in order to maintain compliance with the Securities Act. Upon
consummation of the proposed Transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Note will no longer be subject to the restrictions on
transfer enumerated in the Private Placement Legend printed on the Restricted Global Notes, on
Restricted Definitive Notes and in the Indenture.

          (b)  o  Check if Transfer is pursuant to Regulation S. (i) The Transfer is being effected pursuant
to and in accordance with Rule 903 or Rule 904 under the Securities Act and in compliance with the
transfer restrictions contained in the Indenture and any applicable blue sky securities laws of any
state of the United States and (ii) the restrictions on transfer contained in the Indenture and the
Private Placement Legend are not required in order to maintain compliance with the Securities Act.
Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Note will no longer be subject to the restrictions on
transfer enumerated in the Private Placement Legend printed on the Restricted Global Notes, on
Restricted Definitive Notes and in the Indenture.

          (c)  o  Check if Transfer is pursuant to Other Exemption. (i) The Transfer is being effected
pursuant to and in compliance with an exemption from the registration requirements of the
Securities Act other than Rule 144, Rule 903 or Rule 904 and in compliance with the transfer
restrictions contained in the Indenture and any applicable blue sky securities laws of any state of
the United States and (ii) the restrictions on transfer contained in the Indenture and the Private
Placement Legend are not required in order to maintain compliance with the Securities Act. Upon
consummation of the proposed Transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Note will not be subject to the restrictions on
transfer enumerated in the Private Placement Legend printed on the Restricted Global Notes, on
Restricted Definitive Notes and in the Indenture.

          This certificate and the statements contained herein are made for your benefit and the benefit
of the Company.

	 	 	 	 	 

	 
	 
		_____________________________________

[Insert Name of Transferor]

 	 
	 	By:  	/s/
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

3

 

	 	 	 	 	 

ANNEX A TO CERTIFICATE OF TRANSFER

     1. The Transferor owns and proposes to transfer the following:

[CHECK ONE]

	 	 	 
	(a)

	 	o  a beneficial interest in the:
	(i)

	 	o  144A Global Note, or
	(ii)

	 	o  Regulation S Global Note, or
	(b)

	 	o  a Restricted Definitive Note.

     2. After the Transfer the Transferee will hold:

[CHECK ONE]

	 	 	 
	(a)  

	 	o  a beneficial interest in the:
	(i)

	 	o  144A Global Note, or
	(ii)

	 	o  Regulation S Global Note, or
	(iii)

	 	o  Unrestricted Global Note; or
	(b)

	 	o  a Restricted Definitive Note; or
	(c)

	 	o  an Unrestricted Definitive Note, in accordance with the terms of the Indenture.

4

 

EXHIBIT C

FORM OF CERTIFICATE OF EXCHANGE

AutoNation, Inc.

AutoNation Tower

110 S.E. 6th Street

Fort Lauderdale, Florida 33301

Wells Fargo Bank, N.A.

213 Court Street

Suite 703

Middletown, Connecticut 06457

Telecopier No. (860) 704-6219

Attention: Corporate Trust Services

Re: AutoNation, Inc.

Re: [Floating Rate] [7%] Senior Notes due [2013][2014]

(CUSIP [    ] and [    ])

          Reference is hereby made to the Indenture, dated as of April 12, 2006 (as amended, the
“Indenture”), between AutoNation, Inc., as issuer (the “Company”), each of the Guarantors named in
the Indenture, as Guarantors and Wells Fargo Bank, N.A., as trustee. Capitalized terms used but not
defined herein shall have the meanings given to them in the Indenture.

          ______________
(the “Owner”) owns and proposes to exchange the Note[s] or interest in such
Note[s] specified herein, in the principal amount of $
________________ in such Note[s] or interests (the
“Exchange”). In connection with the Exchange, the Owner hereby certifies that:

          1. Exchange of Restricted Definitive Notes or Beneficial Interests in a Restricted Global Note
for Unrestricted Definitive Notes or Beneficial Interests in an Unrestricted Global Note

          (a)  o  
Check if Exchange is from beneficial interest in a Restricted Global Note to beneficial
interest in an Unrestricted Global Note. In connection with the Exchange of the Owner’s beneficial
interest in a Restricted Global Note for a beneficial interest in an Unrestricted Global Note in an
equal principal amount, the Owner hereby certifies (i) the beneficial interest is being acquired
for the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance
with the transfer restrictions applicable to the Global Notes and pursuant to and in accordance
with the United States Securities Act of 1933, as amended (the “Securities Act”), (iii) the
restrictions on transfer contained in the Indenture and the Private Placement Legend are not
required in order to maintain compliance with the Securities Act and (iv) the beneficial interest
in an Unrestricted Global Note is being acquired in compliance with any applicable blue sky
securities laws of any state of the United States.

          (b)  o  
Check if Exchange is from Restricted Definitive Note to beneficial interest in an
Unrestricted Global Note. In connection with the Owner’s Exchange of a Restricted Definitive Note
for a beneficial interest in an Unrestricted Global Note, the Owner hereby certifies (i) the
beneficial interest is being acquired for the Owner’s own account without transfer, (ii) such
Exchange has been effected in compliance with the transfer restrictions applicable to Restricted
Definitive Notes and pursuant to and in accordance with the Securities Act, (iii) the restrictions
on transfer contained in the Indenture and the Private Placement Legend are not required in order
to maintain compliance with the Securities Act and

1

 

(iv) the beneficial interest is being acquired in compliance with any applicable blue sky
securities laws of any state of the United States.

          (c)  o  
Check if Exchange is from Restricted Definitive Note to Unrestricted Definitive Note. In
connection with the Owner’s Exchange of a Restricted Definitive Note for an Unrestricted Definitive
Note, the Owner hereby certifies (i) the Unrestricted Definitive Note is being acquired for the
Owner’s own account without transfer, (ii) such Exchange has been effected in compliance with the
transfer restrictions applicable to Restricted Definitive Notes and pursuant to and in accordance
with the Securities Act, (iii) the restrictions on transfer contained in the Indenture and the
Private Placement Legend are not required in order to maintain compliance with the Securities Act
and (iv) the Unrestricted Definitive Note is being acquired in compliance with any applicable blue
sky securities laws of any state of the United States.

          2. Exchange of Restricted Definitive Notes for Restricted Definitive Notes or Beneficial
Interests in Restricted Global Notes

          (a)  o  
Check if Exchange is from Restricted Definitive Note to beneficial interest in a
Restricted Global Note. In connection with the Exchange of the Owner’s Restricted Definitive Note
for a beneficial interest in the [CHECK ONE]  o  
144A Global Note,  o  
Regulation S Global Note with an
equal principal amount, the Owner hereby certifies (i) the beneficial interest is being acquired
for the Owner’s own account without transfer and (ii) such Exchange has been effected in compliance
with the transfer restrictions applicable to the Restricted Global Notes and pursuant to and in
accordance with the Securities Act, and in compliance with any applicable blue sky securities laws
of any state of the United States. Upon consummation of the proposed Exchange in accordance with
the terms of the Indenture, the beneficial interest issued will be subject to the restrictions on
transfer enumerated in the Private Placement Legend printed on the relevant Restricted Global Note
and in the Indenture and the Securities Act.

          This certificate and the statements contained herein are made for your benefit and the benefit
of the Company.

	 	 	 	 	 
	 	[Insert Name of Owner]

 	 
	 	By:  	/s/
 	 
	 	 	Name:  	
 	 
	 	 	Title:  	 	 
	 

Dated: _________________

2

 

EXHIBIT D

FORM OF CERTIFICATE FROM

ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR

AutoNation, Inc.

AutoNation Tower

110 S.E. 6th Street

Fort Lauderdale, Florida 33301

Wells Fargo Bank, N.A.

213 Court Street

Suite 703

Middletown, Connecticut 06457

Telecopier No. (860) 704-6219

Attention: Corporate Trust Services

Re: AutoNation, Inc.

Re: [Floating Rate] [7%] Senior Notes due [2013][2014]

(CUSIP [    ], [    ], [    ] and [    ])

          Reference is hereby made to the Indenture, dated as of April 12, 2006 (as amended, the
“Indenture”), between AutoNation, Inc., as issuer (the “Company”), each of the Guarantors
named in the Indenture, as Guarantors and Wells Fargo Bank, N.A., as trustee. Capitalized terms
used but not defined herein shall have the meanings given to them in the Indenture.

          In
connection with our proposed purchase of $ _________________ aggregate principal amount of:

          (a)  o  
a beneficial interest in a Global Note, or

          (b)  o  
a Definitive Note,

          we confirm that:

          1. We understand that any subsequent transfer of the Notes or any interest therein is subject
to certain restrictions and conditions set forth in the Indenture and the undersigned agrees to be
bound by, and not to resell, pledge or otherwise transfer the Notes or any interest therein except
in compliance with, such restrictions and conditions and the United States Securities Act of 1933,
as amended (the “Securities Act”).

          2. We understand that the offer and sale of the Notes have not been registered under the
Securities Act, and that the Notes and any interest therein may not be offered or sold except as
permitted in the following sentence. We agree, on our own behalf and on behalf of any accounts for
which we are acting as hereinafter stated, that if we should sell the Notes or any interest
therein, we will do so only (A) to the Company or any Subsidiary thereof, (B) in accordance with
Rule 144A under the Securities Act to a “qualified institutional buyer” (as defined therein), (C)
to an institutional “accredited investor” (as defined below) that, prior to such transfer,
furnishes (or has furnished on its behalf by a U.S. broker-dealer) to you and to the Company a
signed letter substantially in the form of this letter and, if such transfer is in respect of a
principal amount of Notes, at the time of transfer, of less than $250,000, an

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Opinion of Counsel in form reasonably acceptable to the Company to the effect that such
transfer is in compliance with the Securities Act, (D) outside the United States in accordance with
Rule 904 of Regulation S, under the Securities Act, (E) pursuant to the provisions of Rule 144(k)
under the Securities Act or (F) pursuant to an effective registration statement under the
Securities Act, and we further agree to provide to any person purchasing the Definitive Note or
beneficial interest in a Global Note from us in a transaction meeting the requirements of clauses
(A) through (E) of this paragraph a notice advising such purchaser that resales thereof are
restricted as stated herein.

          3. We understand that, on any proposed resale of the Notes or beneficial interest therein, we
will be required to furnish to you and the Company such certifications, legal opinions and other
information as you and the Company may reasonably require to confirm that the proposed sale
complies with the foregoing restrictions. We further understand that the Notes purchased by us will
bear a legend to the foregoing effect.

          4. We are an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or
(7) of Regulation D under the Securities Act) and have such knowledge and experience in financial
and business matters as to be capable of evaluating the merits and risks of our investment in the
Notes, and we and any accounts for which we are acting are each able to bear the economic risk of
our or its investment.

          5. We are acquiring the Notes or beneficial interest therein purchased by us for our own
account or for one or more accounts (each of which is an institutional “accredited investor”) as to
each of which we exercise sole investment discretion.

          You and the Company are entitled to rely upon this letter and are irrevocably authorized to
produce this letter or a copy hereof to any interested party in any administrative or legal
proceedings or official inquiry with respect to the matters covered hereby.

	 	 	 	 	 
	 	_______________________________________

[Insert Name of Accredited Owner]

 	 
	 	By:  	/s/
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Dated:__________________

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EXHIBIT E

FORM OF GUARANTEE

          For value received, the undersigned (including any successor Person under the Indenture) has,
jointly and severally, unconditionally guaranteed, to the extent set forth in the Indenture and
subject to the provisions in the Indenture dated as of April 12, 2006 (as amended and supplemented,
the “Indenture”) between AutoNation, Inc. (the “Company”), each of the Guarantors named in the
Indenture (the “Guarantors”) and Wells Fargo Bank, N.A., as trustee (the “Trustee”), (a) the due
and punctual payment by the Company of the principal of, premium, if any, Additional Interest, if
any, and interest on the Notes (as defined in the Indenture), whether at maturity, by acceleration,
redemption or otherwise, the due and punctual payment by the Company of interest on overdue
principal and premium, and, to the extent permitted by law, interest, and the due and punctual
performance of all other obligations of the Company to the Holders or the Trustee all in accordance
with the terms of the Indenture and (b) in case of any extension of time of payment or renewal of
any Notes or any of such other obligations, that the same will be promptly paid by the Company in
full when due or performed in accordance with the terms of the extension or renewal, whether at
stated maturity, by acceleration or otherwise. The obligations of the undersigned to the Holders of
Notes and to the Trustee pursuant to this Guarantee and the Indenture are expressly set forth in
Article 10 of the Indenture and reference is hereby made to the Indenture for the precise terms of
this Guarantee. Each Holder of a Note, by accepting the same, agrees to and shall be bound by such
provisions.

          The terms of the Indenture, including, without limitation, Article 10 of the Indenture, are
incorporated herein by reference. Capitalized terms used herein shall have the meanings assigned to
them in the Indenture unless otherwise indicated.

	 	 	 	 	 
	 	[NAME OF GUARANTOR]

 	 
	 	By:  	/s/
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

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EXHIBIT F

FORM OF SUPPLEMENTAL INDENTURE

          SUPPLEMENTAL
INDENTURE (this “Supplemental Indenture”), dated as of
__________________ , among
AutoNation, Inc., a Delaware corporation (the “Company”),
____________________ (the “Guaranteeing
Subsidiary”), a subsidiary of AutoNation, Inc. (or its permitted successor) and Wells Fargo Bank,
N.A., as trustee under the indenture referred to below (the “Trustee”).

          W I T N E S S E T H

          WHEREAS, the Company and the Guarantors named therein have heretofore executed and delivered
to the Trustee the indenture (as amended, the “Indenture”), dated as of April 12, 2006, providing
for the issuance of Floating Rate Senior Notes due 2013 and 7% Senior Notes due 2014 (the “Notes”);

          WHEREAS, the Indenture provides that the Guaranteeing Subsidiary shall execute and deliver to
the Trustee a supplemental indenture pursuant to which the Guaranteeing Subsidiary shall
unconditionally guarantee all of the Company’s obligations under the Notes and the Indenture on the
terms and conditions set forth herein (the “Guarantee”); and

          WHEREAS, pursuant to Section 9.1 of the Indenture, the Trustee is authorized to execute and
deliver this Supplemental Indenture.

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

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

          2. Agreement to Guarantee. The Guaranteeing Subsidiary hereby agrees as follows:

	 	(a)	 	To jointly and severally Guarantee to each
Holder of a Note authenticated and delivered by the Trustee and to the
Trustee and its successors and assigns, irrespective of the validity
and enforceability of the Indenture, the Notes or the obligations of
the Company hereunder or thereunder, that:

	 	(i)	 	the principal of and interest on
the Notes will be promptly paid by the Company in full when due,
whether at maturity, by acceleration, redemption or otherwise,
and interest on the overdue principal of and interest on the
Notes, if any, if lawful, and all other obligations of the
Company to the Holders or the Trustee hereunder or thereunder
will be promptly paid by the Company in full or performed by the
Company, all in accordance with the terms hereof and thereof;
and
	 
	 	(ii)	 	in case of any extension of time
of payment or renewal of any Notes or any of such other
obligations, that same will be

1

 

	 	 	 	promptly paid by the Company in full when due or performed by
the Company in accordance with the terms of the extension or
renewal, whether at stated maturity, by acceleration or
otherwise. Failing payment when due by the Company of any
amount so guaranteed or any performance so guaranteed which
failure continues for three days after demand therefor is
made to the Company for whatever reason, the Guarantors shall
be jointly and severally obligated to pay the same
immediately. Each Guarantor agrees that this is a guarantee
of payment and not a guarantee of collection.

	 	(b)	 	The obligations hereunder shall be
unconditional, irrespective of the validity, regularity or
enforceability of the Notes or the Indenture, the absence of any action
to enforce the same, any waiver or consent by any Holder of the Notes
with respect to any provisions hereof or thereof, the recovery of any
judgment against the Company, any action to enforce the same or any
other circumstance which might otherwise constitute a legal or
equitable discharge or defense of a Guarantor.
	 
	 	(c)	 	The following is hereby waived: diligence,
presentment, demand of payment (except as specifically provided in (a)
above), filing of claims with a court in the event of insolvency or
bankruptcy of the Company, any right to require a proceeding first
against the Company, protest, notice and all demands (except as
specifically provided in (a) above) whatsoever.
	 
	 	(d)	 	This Guarantee shall not be discharged except
(i) by complete performance of the obligations contained in the Notes
and the Indenture. Each Guarantor also expressly waives, without any
requirement of any notice to or further assent by such Guarantor, to
the fullest extent permitted by applicable law, the benefit of all
principles or provisions of applicable law which are or might be in
conflict with the terms hereof, including, without limitation, Section
10-7-23 and Section 10-7-24 of the Official Code of Georgia Annotated.
	 
	 	(e)	 	If any Holder or the Trustee is required by any
court or otherwise to return to the Company, the Guarantors, or any
Custodian, Trustee, liquidator or other similar official acting in
relation to either the Company or the Guarantors, any amount paid by
either to the Trustee or such Holder, this Guarantee, to the extent
theretofore discharged, shall be reinstated in full force and effect.
	 
	 	(f)	 	The Guaranteeing Subsidiary shall not be
entitled to any right of subrogation in relation to the Holders in
respect of any obligations guaranteed hereby until payment in full of
all obligations guaranteed hereby.
	 
	 	(g)	 	As between the Guarantors, on the one hand, and
the Holders and the Trustee, on the other hand, (x) the maturity of the
obligations guaranteed hereby may be accelerated as provided in Article
6 of the Indenture for the purposes of this Guarantee, notwithstanding
any stay, injunction or

2

 

	 	 	 	other prohibition preventing such acceleration in
respect of the obligations guaranteed hereby, and (y) in the event of
any declaration of acceleration of such obligations as provided in
Article 6 of the Indenture, such obligations (whether or not due and
payable) shall forthwith become due and payable by the Guarantors for
the purpose of this Guarantee, failing payment when due by the Company
which failure continues for three days after demand therefor is made to
the Company.

	 	(h)	 	The Guarantors shall have the right to seek
contribution from any non-paying Guarantor so long as the exercise of
such right does not impair the rights of the Holders under the
Guarantee.

          3. Execution and Delivery. Each Guaranteeing Subsidiary agrees that the Guarantees
shall remain in full force and effect notwithstanding any failure to endorse on each Note a
notation of such Guarantee.

          4. Guaranteeing Subsidiary May Consolidate, Etc. on Certain Terms. Each Guaranteeing
Subsidiary agrees that, unless its Guarantee is being concurrently released in conformity with
Section 10.4 of the Indenture, it may not sell or otherwise dispose of all or substantially all of
its assets, or consolidate with or merge with or into (whether or not such Guaranteeing Subsidiary
is the surviving Person) another corporation, Person or entity whether or not affiliated with such
Guaranteeing Subsidiary unless either (a) the Guaranteeing Subsidiary will be the continuing
corporation (in the case of a consolidation or merger involving the Guaranteeing Subsidiary) or (b)
the Person (if other than the Guaranteeing Subsidiary) formed by such consolidation or into which
the Guaranteeing Subsidiary 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
Guaranteeing Subsidiary and its Restricted Subsidiaries on a Consolidated basis (the
“Guaranteeing Subsidiary Surviving Entity”) will be 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 Guaranteeing Subsidiary under its Guarantee and the
Indenture and the Registration Rights Agreement, as the case may be, and the Guarantee and the
Indenture and the Registration Rights Agreement will remain in full force and effect as so
supplemented and at the time of the transaction the Guaranteeing Subsidiary or the Guaranteeing
Subsidiary 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 therein provided for relating to such
transaction have been complied with.

          5. Releases. The Guarantee of the Guaranteeing Subsidiary will be released in
accordance with the provisions set forth in the Indenture, including, without limitation, Section
10.4 of the Indenture. The Trustee will provide any written confirmation or evidence of the
termination of such Guarantee as reasonably required by the Company. Any Guarantor not released
from its obligations under its Guarantee shall remain liable for the full amount of principal of
and interest on the Notes and for the other obligations of any Guarantor under the Indenture as
provided in Article 10 of the Indenture.

          6. No Recourse Against Others. No director, officer, employee, incorporator,
stockholder or agent of the Guaranteeing Subsidiary, as such, shall have any liability for any
obligations of the Company or any Guaranteeing Subsidiary under the Notes, the Indenture, any
Guarantees or this Supplemental Indenture or for any claim based on, in respect of, or by reason
of, such obligations or their creation. Each Holder of Notes by accepting a Note waives and
releases all such liability. The waiver and

3

 

release are part of the consideration for issuance of the Notes. Such waiver may not be
effective to waive liabilities under the federal securities laws.

          7. New York Law to Govern. THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND
BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE.

          8. Counterparts. The parties may sign any number of copies of this Supplemental
Indenture. Each signed copy shall be an original, but all of them together represent the same
agreement.

          9. Effect of Headings. The Section headings herein are for convenience only and shall
not affect the construction hereof.

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

4

 

     IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly
executed and attested, all as of the date first above written.

Dated:

	 	 	 	 	 
	 	[GUARANTEEING SUBSIDIARY]

 	 
	 	By:  	/s/
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	AUTONATION, INC.

 	 
	 	By:  	/s/
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	WELLS FARGO BANK, N.A., as Trustee

 	 
	 	By:  	/s/
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

5

 

	 	 	 	 	 

EXHIBIT G-1

FORM OF AFFIDAVIT OF OUT-OF-STATE EXECUTION

STATE OF NEW YORK

COUNTY OF NEW YORK

          I
hereby certify that on this ____________________ day of ___, 20___, before me, an officer duly authorized in
the County and State aforesaid to take acknowledgments, personally appeared [Name], as [Title] of
AutoNation, Inc., a Delaware corporation (the “Company”), and as [Title] or authorized signatory of
each of the subsidiaries of the Company party to the hereinafter defined Indenture (the
“Guarantors”), who is personally known to me or who has
produced ______________________ as identification,
who did/did not take an oath, who is known to me to be the person who executed the Indenture, dated
as of April 12, 2006 (the “Indenture”), by and among the Company, the Guarantors and Wells Fargo
Bank, N.A., as trustee (the “Trustee”), to which this Affidavit is attached on behalf of the
Company and on behalf of each of the Guarantors in New York, New York, and who acknowledged before
me that be executed the same.

	 	 	 	 	 
	 	_______________________________________

Notary Public

 	 
	 	/s/
 	 
	 	Print Name 	 
	 
	 	My Commission  Expires: _________________	 

1

 

	 	 	 	 	 

EXHIBIT G-2

FORM OF AFFIDAVIT OF OUT OF STATE RECEIPT AND ACCEPTANCE

STATE OF NEW YORK)

COUNTY OF NEW YORK)

          Before
me this day personally appeared _________________ (“Affiant”), who being personally
sworn, deposes and says that:

          1. Affiant is a [Title] of Wells Fargo Bank, N.A., as trustee (the “Trustee”) under the
Indenture, dated as of April 12, 2006 (the “Indenture”), by and among AutoNation, Inc., a Delaware
corporation (the “Company”), the subsidiaries of the Company party thereto (the “Guarantors”) and
the Trustee.

          2. The Trustee is the authorized agent for each of the initial purchasers under the Purchase
Agreement, dated April 5, 2006 (the “Purchase Agreement”), by and among the initial purchasers
named therein (the “Initial Purchasers”), the Company, and the Guarantors relating to the sale by
the Company to the Initial Purchasers of $300,000,000 aggregate principal amount of its Floating
Rate Senior Notes due 2013 and $300,000,000 aggregate principal amount of its 7% Fixed Rate Senior
Notes due 2014, for the purpose of receiving delivery of and accepting of the Indenture on behalf
of the Initial Purchasers and on behalf of the Trustee.

          3. The Indenture was executed in the City of New York, and the State of New York by [Name] as
[Title] of the Company and as [Title] or authorized signatory of each of the Guarantors.

          4. On the date hereof, Affiant received delivery of and accepted the Indenture on behalf of
the Trustee and on behalf of the Initial Purchasers within the City of New York, and the State of
New York.

FURTHER AFFIANT SAYETH NOT.

Dated: _________________ , 20___

	 	 	 	 	 
	 	___________________________________

Print Name: __________________________

 	 
	 	 	 
	 	 	 
	 	 	 

1

 

	 	 	 	 	 

          THE
FOREGOING instrument was acknowledged before me this
___________________ day of April, 2006, by
__________________ , who is personally known to me or who has
produced ____________________ as
identification and who did/did not take an oath.

	 	 	 	 	 
	 	________________________________

Notary Public

 	 
	 	/s/
 	 
	 	Print Name 	 
	 
	 	My Commission Expires: ______________ 	 
	 

This should be included only if the Note is issued in global form.

2

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