Document:

2003 Equity Incentive Plan

 EXHIBIT 10.1 
 BAKBONE SOFTWARE INCORPORATED 
 2003 EQUITY INCENTIVE PLAN 
 (amended and restated May 7, 2009 and 
 formerly known as BakBone Software Incorporated 2003 Stock Option Plan) 
 1. Purposes of the Plan. The purposes of
this Plan are to attract and retain the best available personnel, to provide additional incentives to Employees, Directors and Consultants and to promote the success of the Company’s business. 
 2. Definitions. The following definitions shall apply as used herein and in the individual Award Agreements except as defined otherwise in an
individual Award Agreement. In the event a term is separately defined in an individual Award Agreement, such definition shall supersede the definition contained in this Section 2. 
 (a) “Administrator” means the Board or any of the Committees appointed to administer the Plan. 
 (b) “Affiliate” and “Associate” shall have the respective meanings ascribed to such terms in
Rule 12b-2 promulgated under the Exchange Act. 
 (c) “Applicable Laws” means the legal requirements
relating to the Plan and the Awards under applicable provisions of Canadian law, U.S. federal and state securities laws, the corporate laws of Canada, the Code, the rules of any applicable stock exchange or national market system, and the rules of
any other non-U.S. jurisdiction applicable to Awards granted to residents therein. 
 (d) “Assumed” means
that pursuant to a Corporate Transaction either (i) the Award is expressly affirmed by the Company or (ii) the contractual obligations represented by the Award are expressly assumed (and not simply by operation of law) by the successor
entity or its Parent in connection with the Corporate Transaction with appropriate adjustments to the number and type of securities of the successor entity or its Parent subject to the Award and the exercise or purchase price thereof which at least
preserves the compensation element of the Award existing at the time of the Corporate Transaction as determined in accordance with the instruments evidencing the agreement to assume the Award. 
 (e) “Award” means the grant of an Option, SAR, Dividend Equivalent Right, Restricted Stock, Restricted Stock Unit or
other right or benefit under the Plan. 
 (f) “Award Agreement” means the written agreement evidencing the
grant of an Award executed by the Company and the Grantee, including any amendments thereto. 
 (g) “Board”
means the Board of Directors of the Company. 
  

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 (h) “Cause” means, with respect to the termination by the Company or a
Related Entity of the Grantee’s Service, that such termination is for “Cause” as such term (or word of like import) is expressly defined in a then-effective written agreement between the Grantee and the Company or such Related Entity,
or in the absence of such then-effective written agreement and definition, is based on, in the determination of the Administrator, the Grantee’s: (i) performance of any act or failure to perform any act in bad faith and to the detriment of
the Company or a Related Entity; (ii) dishonesty, intentional misconduct or material breach of any agreement with the Company or a Related Entity; or (iii) commission of a crime involving dishonesty, breach of trust, or physical or
emotional harm to any person; provided, however, that with regard to any agreement that defines “Cause” on the occurrence of or in connection with a Corporate Transaction or a Change in Control, such definition of “Cause” shall
not apply until a Corporate Transaction or a Change in Control actually occurs. 
 (i) “Change in Control”
means a change in ownership or control of the Company effected through either of the following transactions: 
 (i) the direct
or indirect acquisition by any person or related group of persons (other than an acquisition from or by the Company or by a Company-sponsored employee benefit plan or by a person that directly or indirectly controls, is controlled by, or is under
common control with, the Company) of beneficial ownership (within the meaning of Rule 13d-3 of the Exchange Act) of securities possessing more than fifty percent (50%) of the total combined voting power of the Company’s outstanding
securities pursuant to a tender or exchange offer made directly to the Company’s shareholders which a majority of the Continuing Directors who are not Affiliates or Associates of the offeror do not recommend such shareholders accept, or

 (ii) a change in the composition of the Board over a period of twelve (12) months or less such that a majority of the
Board members (rounded up to the next whole number) ceases, by reason of one or more contested elections for Board membership, to be comprised of individuals who are Continuing Directors. 
 (j) “Code” means the Internal Revenue Code of 1986, as amended. 
 (k) “Committee” means any committee composed of members of the Board appointed by the Board to administer the Plan.

 (l) “Common Stock” means the common stock of the Company. 
 (m) “Company” means BakBone Software Incorporated, a Canada corporation, or any successor entity that adopts the Plan in
connection with a Corporate Transaction. 
 (n) “Consultant” means any person (other than an Employee or a
Director, solely with respect to rendering services in such person’s capacity as a Director) who is engaged by the Company or any Related Entity to render consulting or advisory services to the Company or such Related Entity. 
 (o) “Continuing Directors” means members of the Board who either (i) have been Board members continuously for a
period of at least twelve (12) months or (ii) have been Board members for less than twelve (12) months and were elected or nominated for election as Board members by at least a majority of the Board members described in
clause (i) who were still in office at the time such election or nomination was approved by the Board. 
  

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 (p) “Corporate Transaction” means any of the following transactions,
provided, however, that the Administrator shall determine under parts (iv) and (v) whether multiple transactions are related, and its determination shall be final, binding and conclusive: 
 (i) a merger or consolidation in which the Company is not the surviving entity, except for a transaction the principal purpose of which is
to change the state in which the Company is incorporated; 
 (ii) the sale, transfer or other disposition of all or
substantially all of the assets of the Company; 
 (iii) the complete liquidation or dissolution of the Company; 

(iv) any reverse merger or series of related transactions culminating in a reverse merger (including, but not limited to, a tender
offer followed by a reverse merger) in which the Company is the surviving entity but (A) the shares of Common Stock outstanding immediately prior to such merger are converted or exchanged by virtue of the merger into other property, whether in
the form of securities, cash or otherwise, or (B) in which securities possessing more than fifty percent (50%) of the total combined voting power of the Company’s outstanding securities are transferred to a person or persons different
from those who held such securities immediately prior to such merger or the initial transaction culminating in such merger; or 
 (v) acquisition in a single or series of related transactions by any person or related group of persons (other than the Company or by a Company-sponsored employee benefit plan) of beneficial ownership (within the meaning of Rule 13d-3 of
the Exchange Act) of securities possessing more than fifty percent (50%) of the total combined voting power of the Company’s outstanding securities. 
 (q) “Covered Employee” means an Employee who is a “covered employee” under Section 162(m)(3) of the Code.

 (r) “Director” means a member of the Board or the board of directors of any Related Entity. 
 (s) “Disability” means as defined under the long-term disability policy of the Company or the Related Entity to which the
Grantee provides services regardless of whether the Grantee is covered by such policy. If the Company or the Related Entity to which the Grantee provides service does not have a long-term disability plan in place, “Disability” means that a
Grantee is unable to carry out the responsibilities and functions of the position held by the Grantee by reason of any medically determinable physical or mental impairment for a period of not less than ninety (90) consecutive days. A Grantee
will not be considered to have incurred a Disability unless he or she furnishes proof of such impairment sufficient to satisfy the Administrator in its discretion. 
  

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 (t) “Dividend Equivalent Right” means a right entitling the Grantee to
compensation measured by dividends paid with respect to Common Stock. 
 (u) “Employee” means any person,
including an Officer or Director, who is in the employ of the Company or any Related Entity, subject to the control and direction of the Company or any Related Entity as to both the work to be performed and the manner and method of performance. The
payment of a director’s fee by the Company or a Related Entity shall not be sufficient to constitute “employment” by the Company. 
 (v) “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 (w) “Fair Market Value” means, as of any date, the value of Common Stock determined as follows: 
 (i) If the Common Stock is listed on one or more established stock exchanges or national market systems, including without limitation the Toronto Stock Exchange, The NASDAQ Global Select Market, The NASDAQ Global Market or The NASDAQ
Capital Market of The NASDAQ Stock Market LLC, its Fair Market Value shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on the principal exchange or system on which the Common Stock is listed
(as determined by the Administrator) on the date of determination (or, if no closing sales price or closing bid was reported on that date, as applicable, on the last trading date such closing sales price or closing bid was reported), as reported in
The Wall Street Journal or such other source as the Administrator deems reliable; 
 (ii) If the Common Stock is regularly
quoted on an automated quotation system (including the OTC Bulletin Board) or by a recognized securities dealer, its Fair Market Value shall be the closing sales price for such stock as quoted on such system or by such securities dealer on the date
of determination, but if selling prices are not reported, the Fair Market Value of a share of Common Stock shall be the mean between the high bid and low asked prices for the Common Stock on the date of determination (or, if no such prices were
reported on that date, on the last date such prices were reported), as reported in The Wall Street Journal or such other source as the Administrator deems reliable; or 
 (iii) In the absence of an established market for the Common Stock of the type described in (i) and (ii), above, the Fair Market
Value thereof shall be determined by the Administrator in good faith and in a manner consistent with Applicable Laws. 
 (x)
“Grantee” means an Employee, Director or Consultant who receives an Award under the Plan. 
 (y)
“Immediate Family” means any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in law, daughter-in-law, brother-in-law, or sister-in-law,
including adoptive relationships, any person sharing the Grantee’s household (other than a tenant or employee), a trust in which these persons (or the Grantee) have more than fifty percent (50%) of the beneficial interest, a foundation in
which these persons (or the Grantee) control the management of assets, and any other entity in which these persons (or the Grantee) own more than fifty percent (50%) of the voting interests. 
  

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 (z) “Incentive Stock Option” means an Option intended to qualify as an
incentive stock option within the meaning of Section 422 of the Code. 
 (aa) “Insider” means an
individual who would be considered an “insider” of the Company for purposes of the Ontario Act or Section 16 of the Exchange Act, and the rules and regulations promulgated thereunder. 
 (bb) “Non-Statutory Stock Option” means an Option not intended to qualify as an Incentive Stock Option. 
 (cc) “Officer” means a person who is an officer of the Company or a Related Entity within the meaning of Section 16
of the Exchange Act and the rules and regulations promulgated thereunder. 
 (dd) “Ontario Act” means the
Securities Act (Ontario). 
 (ee) “Option” means an option to purchase Shares pursuant to an Award
Agreement granted under the Plan. 
 (ff) “Parent” means a “parent corporation”, whether now or
hereafter existing, as defined in Section 424(e) of the Code. 
 (gg) “Performance-Based Compensation”
means compensation qualifying as “performance-based compensation” under Section 162(m) of the Code. 
 (hh)
“Plan” means this 2003 Equity Incentive Plan, formerly known as the 2003 Stock Option Plan. 
 (ii)
“Post-Termination Exercise Period” means the period specified in the Award Agreement of not less than thirty (30) days commencing on the date of termination (other than termination by the Company or any Related Entity for
Cause) of the Grantee’s Service, or such longer period as may be applicable upon death or Disability. 
 (jj)
“Related Entity” means any Parent or Subsidiary of the Company. 
 (kk) “Replaced” means
that pursuant to a Corporate Transaction the Award is replaced with a comparable stock award or a cash incentive program of the Company, the successor entity (if applicable) or Parent of either of them which preserves the compensation element
of such Award existing at the time of the Corporate Transaction and provides for subsequent payout in accordance with the same (or a more favorable) vesting schedule applicable to such Award. The determination of Award comparability shall be made by
the Administrator and its determination shall be final, binding and conclusive. 
 (ll) “Restricted Stock”
means Shares issued under the Plan to the Grantee for such consideration, if any, and subject to such restrictions on transfer, rights of first refusal, repurchase provisions, forfeiture provisions, and other terms and conditions as established by
the Administrator. 
  

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 (mm) “Restricted Stock Units” means an Award which may be earned in
whole or in part upon the passage of time or the attainment of performance criteria established by the Administrator and which may be settled for cash, Shares or other securities or a combination of cash, Shares or other securities as established by
the Administrator. 
 (nn) “Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act or any
successor thereto. 
 (oo) “SAR” means a stock appreciation right entitling the Grantee to Shares or cash
compensation, as established by the Administrator, measured by appreciation in the value of Common Stock. 
 (pp)
“Service” means that the provision of services to the Company or a Related Entity in any capacity of Employee, Director or Consultant is not interrupted or terminated. In jurisdictions requiring notice in advance of an effective
termination as an Employee, Director or Consultant, Service shall be deemed terminated upon the actual cessation of providing services to the Company or a Related Entity notwithstanding any required notice period that must be fulfilled before a
termination as an Employee, Director or Consultant can be effective under Applicable Laws. A Grantee’s Service shall be deemed to have terminated either upon an actual termination of Service or upon the entity for which the Grantee provides
services ceasing to be a Related Entity. Service shall not be considered interrupted in the case of (i) any approved leave of absence, (ii) transfers among the Company, any Related Entity, or any successor, in any capacity of Employee,
Director or Consultant, or (iii) any change in status as long as the individual remains in the service of the Company or a Related Entity in any capacity of Employee, Director or Consultant (except as otherwise provided in the Award Agreement).
Notwithstanding the foregoing, except as otherwise determined by the Administrator, in the event of any spin-off of a Related Entity, service as an Employee, Director or Consultant for such Related Entity following such spin-off shall be deemed to
be Service for purposes of the Plan and any Award under the Plan. An approved leave of absence shall include sick leave, military leave, or any other authorized personal leave. For purposes of each Incentive Stock Option granted under the Plan, if
such leave exceeds three (3) months, and reemployment upon expiration of such leave is not guaranteed by statute or contract, then the Incentive Stock Option shall be treated as a Non-Statutory Stock Option on the day three (3) months and
one (1) day following the expiration of such three (3) month period. 
 (qq) “Share” means a share
of the Common Stock. 
 (rr) “Stock” means Common Stock. 
 (ss) “Subsidiary” means a “subsidiary corporation”, whether now or hereafter existing, as defined in
Section 424(f) of the Code. 
 3. Stock Subject to the Plan. 
 (a) Subject to the provisions of Section 10 below, the maximum aggregate number of Shares which may be issued pursuant to all Awards
is ten million three hundred thirty-one thousand five hundred sixteen (10,331,516) Shares; provided, however, that the maximum aggregate number of Shares which may be issued under the Plan at any time shall be reduced by the number of 

  

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Shares subject to any outstanding options granted pursuant to either the BakBone Software Incorporated Stock Option Plan, as amended, or the BakBone Software
Incorporated 2002 Stock Option Plan. The Shares may be authorized, but unissued, or reacquired Common Stock. 
 (b) Any Shares
covered by an Award (or portion of an Award) which is forfeited, canceled (including by reason of surrender under Section 8(f) below) or expires, whether voluntarily or involuntarily, shall be deemed not to have been issued for purposes of
determining the maximum aggregate number of Shares which may be issued under the Plan; provided, however, that Shares covered by Incentive Stock Options surrendered pursuant to Section 8(f) shall not be available for future grants of Incentive
Stock Options under the Plan. Shares that actually have been issued under the Plan pursuant to an Award shall not be returned to the Plan and shall not become available for future issuance under the Plan, except that if unvested Shares are forfeited
or repurchased by the Company, such Shares shall become available for future grant under the Plan. 
 4. Administration of the Plan.

 (a) Plan Administrator. 
 (i) Administration with Respect to Directors and Officers. With respect to grants of Awards to Directors or Employees (i) who
are also Officers or Directors of the Company or (ii) who would also be considered “insiders” for purposes of the Ontario Act, the Plan shall be administered by (A) the Board or (B) a Committee designated by the Board, which
Committee shall be constituted in such a manner as to satisfy the Applicable Laws and to permit such grants and related transactions under the Plan to be exempt from Section 16(b) of the Exchange Act in accordance with Rule 16b-3. Once
appointed, such Committee shall continue to serve in its designated capacity until otherwise directed by the Board. 
 (ii)
Administration With Respect to Consultants and Other Employees. With respect to grants of Awards to Employees or Consultants who are neither Directors nor Officers of the Company, the Plan shall be administered by (A) the Board or
(B) a Committee designated by the Board, which Committee shall be constituted in such a manner as to satisfy the Applicable Laws. Once appointed, such Committee shall continue to serve in its designated capacity until otherwise directed by the
Board. 
 (iii) Administration With Respect to Covered Employees. Notwithstanding the foregoing, grants of Awards to
any Covered Employee intended to qualify as Performance-Based Compensation shall be made only by a Committee (or subcommittee of a Committee) which is comprised solely of two or more Directors eligible to serve on a committee making Awards
qualifying as Performance-Based Compensation. In the case of such Awards granted to Covered Employees, references to the “Administrator” or to a “Committee” shall be deemed to be references to such Committee or subcommittee.

 (b) Multiple Administrative Bodies. The Plan may be administered by different bodies with respect to Directors,
Officers, Consultants, and Employees who are neither Directors nor Officers. 
  

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 (c) Powers of the Administrator. Subject to Applicable Laws and the provisions of
the Plan (including any other powers given to the Administrator hereunder), and except as otherwise provided by the Board, the Administrator shall have the authority, in its discretion: 
 (i) to select the Employees, Directors and Consultants to whom Awards may be granted from time to time hereunder; 
 (ii) to determine whether and to what extent Awards are granted hereunder; 
 (iii) to determine the number of Shares or the amount of other consideration to be covered by each Award granted hereunder; 
 (iv) to approve forms of Award Agreements for use under the Plan; 
 (v) to determine the terms and conditions of any Award granted hereunder; 
 (vi) to establish additional terms, conditions, rules or procedures to accommodate the rules or laws of applicable non-U.S. jurisdictions
and to afford Grantees favorable treatment under such rules or laws; provided, however, that no Award shall be granted under any such additional terms, conditions, rules or procedures with terms or conditions which are inconsistent with the
provisions of the Plan; 
 (vii) to amend the terms of any outstanding Award granted under the Plan, provided that any
amendment that would adversely affect the Grantee’s rights under an outstanding Award shall not be made without the Grantee’s written consent, provided, however, that an amendment or modification that may cause an Incentive Stock Option to
become a Non-Statutory Stock Option shall not be treated as adversely affecting the rights of the Grantee. Notwithstanding the foregoing, shareholder approval shall not be required for (A) the reduction or increase of the exercise price or base
appreciation amount (as applicable) of any Option or SAR awarded under the Plan and (B) canceling an Option or SAR at a time when its exercise price or base appreciation amount (as applicable) exceeds (or is less than) the Fair Market Value of
the underlying Shares, in exchange for another Option, SAR, Restricted Stock, or other Award; 
 (viii) to construe and
interpret the terms of the Plan and Awards, including without limitation, any notice of award or Award Agreement, granted pursuant to the Plan; and 
 (ix) to take such other action, not inconsistent with the terms of the Plan, as the Administrator deems appropriate. 
 The
express grant in the Plan of any specific power to the Administrator shall not be construed as limiting any power or authority of the Administrator; provided that the Administrator may not exercise any right or power reserved to the Board. Any
decision made, or action taken, by the Administrator or in connection with the administration of this Plan shall be final, conclusive and binding on all persons having an interest in the Plan. 
  

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 (d) Indemnification. In addition to such other rights of indemnification as they
may have as members of the Board or as Officers or Employees of the Company or a Related Entity, members of the Board and any Officers or Employees of the Company or a Related Entity to whom authority to act for the Board, the Administrator or the
Company is delegated shall be defended and indemnified by the Company to the extent permitted by law on an after-tax basis against all reasonable expenses, including attorneys’ fees, actually and necessarily incurred in connection with the
defense of any claim, investigation, action, suit or proceeding, or in connection with any appeal therein, to which they or any of them may be a party by reason of any action taken or failure to act under or in connection with the Plan, or any Award
granted hereunder, and against all amounts paid by them in settlement thereof (provided such settlement is approved by the Company) or paid by them in satisfaction of a judgment in any such claim, investigation, action, suit or proceeding, except in
relation to matters as to which it shall be adjudged in such claim, investigation, action, suit or proceeding that such person is liable for gross negligence, bad faith or intentional misconduct; provided, however, that within thirty (30) days
after the institution of such claim, investigation, action, suit or proceeding, such person shall offer to the Company, in writing, the opportunity at the Company’s expense to defend the same. 
 5. Eligibility. Awards other than Incentive Stock Options may be granted to Employees, Directors and Consultants. Incentive Stock Options may be
granted only to Employees of the Company or a Parent or a Subsidiary of the Company. An Employee, Director or Consultant who has been granted an Award may, if otherwise eligible, be granted additional Awards. Awards may be granted to such Employees,
Directors or Consultants who are residing in non-U.S. jurisdictions as the Administrator may determine from time to time. 
 6. Terms and
Conditions of Awards. 
 (a) Types of Awards. The Administrator is authorized under the Plan to award any type of
arrangement to an Employee, Director or Consultant that is not inconsistent with the provisions of the Plan and that by its terms involves or might involve the issuance of (i) Shares, (ii) cash or (iii) an Option, a SAR, or similar
right with a fixed or variable price related to the Fair Market Value of the Shares and with an exercise or conversion privilege related to the passage of time, the occurrence of one or more events, or the satisfaction of performance criteria or
other conditions. Such awards include, without limitation, Options, SARs, sales or bonuses of Restricted Stock, Restricted Stock Units or Dividend Equivalent Rights, and an Award may consist of one such security or benefit, or two (2) or more
of them in any combination or alternative. 
 (b) Designation of Award. Each Award shall be designated in the Award
Agreement. In the case of an Option, the Option shall be designated as either an Incentive Stock Option or a Non-Statutory Stock Option. However, notwithstanding such designation, an Option will qualify as an Incentive Stock Option under the Code
only to the extent the $100,000 dollar limitation of Section 422(d) of the Code is not exceeded. The $100,000 limitation of Section 422(d) of the Code is calculated based on the aggregate Fair Market Value of the Shares subject to Options
designated as Incentive Stock Options which become exercisable 

  

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for the first time by a Grantee during any calendar year (under all plans of the Company or any Parent or Subsidiary of the Company). For purposes of this
calculation, Incentive Stock Options shall be taken into account in the order in which they were granted, and the Fair Market Value of the Shares shall be determined as of the grant date of the relevant Option. In the event that the Code or the
regulations promulgated thereunder are amended after the date the Plan becomes effective to provide for a different limit on the Fair Market Value of Shares permitted to be subject to Incentive Stock Options, then such different limit will be
automatically incorporated herein and will apply to any Options granted after the effective date of such amendment. 
 (c)
Conditions of Award. Subject to the terms of the Plan, the Administrator shall determine the provisions, terms, and conditions of each Award including, but not limited to, the Award vesting schedule, repurchase provisions, rights of first
refusal, forfeiture provisions, form of payment (cash, Shares, or other consideration) upon settlement of the Award, payment contingencies, and satisfaction of any performance criteria. The performance criteria established by the Administrator may
be based on any one of, or combination of, the following: (i) increase in share price, (ii) earnings per share, (iii) total shareholder return, (iv) operating margin, (v) gross margin, (vi) return on equity,
(vii) return on assets, (viii) return on investment, (ix) operating income, (x) net operating income, (xi) pre-tax profit, (xii) cash flow, (xiii) revenue, (xiv) expenses, (xv) earnings before interest,
taxes and depreciation, (xvi) economic value added and (xvii) market share. The performance criteria may be applicable to the Company, Related Entities and/or any individual business units of the Company or any Related Entity. Partial
achievement of the specified criteria may result in a payment or vesting corresponding to the degree of achievement as specified in the Award Agreement. In addition, the performance criteria shall be calculated in accordance with generally accepted
accounting principles, but excluding the effect (whether positive or negative) of any change in accounting standards and any extraordinary, unusual or nonrecurring item, as determined by the Administrator, occurring after the establishment of the
performance criteria applicable to the Award intended to be performance-based compensation. Each such adjustment, if any, shall be made solely for the purpose of providing a consistent basis from period to period for the calculation of performance
criteria in order to prevent the dilution or enlargement of the Grantee’s rights with respect to an Award intended to be performance-based compensation. 
 (d) Acquisitions and Other Transactions. The Administrator may issue Awards under the Plan in settlement, assumption or
substitution for, outstanding awards or obligations to grant future awards in connection with the Company or a Related Entity acquiring another entity, an interest in another entity or an additional interest in a Related Entity whether by merger,
stock purchase, asset purchase or other form of transaction. 
 (e) Deferral of Award Payment. The Administrator may
establish one or more programs under the Plan to permit selected Grantees the opportunity to elect to defer receipt of consideration upon exercise of an Award, satisfaction of performance criteria, or other event that absent the election would
entitle the Grantee to payment or receipt of Shares or other consideration under an Award. The Administrator may establish the election procedures, the timing of such elections, the mechanisms for payments of, and accrual of interest or other
earnings, if any, on amounts, Shares or other consideration so deferred, and such other terms, conditions, rules and procedures that the Administrator deems advisable for the administration of any such deferral program. 
  

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 (f) Separate Programs. The Administrator may establish one or more separate
programs under the Plan for the purpose of issuing particular forms of Awards to one or more classes of Grantees on such terms and conditions as determined by the Administrator from time to time. 
 (g) Individual Limitations on Awards. 
 (i) Individual Option and SAR Limit. The maximum number of Shares with respect to which Options and SARs may be granted to any Grantee in any fiscal year of the Company shall be one million five hundred
thousand (1,500,000) Shares. The foregoing limitation shall be adjusted proportionately in connection with any change in the Company’s capitalization pursuant to Section 10, below. To the extent required by Section 162(m) of the
Code or the regulations thereunder, in applying the foregoing limitation with respect to a Grantee, if any Option or SAR is canceled, the canceled Option or SAR shall continue to count against the maximum number of Shares with respect to which
Options and SARs may be granted to the Grantee. For this purpose, the repricing of an Option (or in the case of a SAR, the base amount on which the stock appreciation is calculated is reduced to reflect a reduction in the Fair Market Value of the
Common Stock) shall be treated as the cancellation of the existing Option or SAR and the grant of a new Option or SAR. 
 (ii)
Additional Limit. Notwithstanding the provisions of Section 6(g)(i) or Section 6(h), the total number of Shares which may be reserved for issuance to any one Grantee under the Plan shall not exceed five percent (5%) of the
total number of issued and outstanding Shares (on a non-diluted basis) less Shares reserved for issuance under any Award Agreement. 
 (h) Limitations on Awards to Insiders. The aggregate number of Shares issuable pursuant to Awards under the Plan, together with all of the Company’s other previously established or proposed share compensation arrangements, will
not result in either: (i) the number of Shares reserved for issuance pursuant to awards granted to Insiders exceeding ten percent (10%) of the outstanding issue, (ii) the issuance to Insiders, within a one-year period, of a number of
Shares exceeding ten percent (10%) of the outstanding issue, or (iii) the issuance to any one Insider and such Insider’s Associates, within a one-year period, of a number of Shares exceeding five percent (5%) of the outstanding
issue. 
 (i) Early Exercise. The Award Agreement may, but need not, include a provision whereby the Grantee may elect
at any time while an Employee, Director or Consultant to exercise any part or all of the Award prior to full vesting of the Award. Any unvested Shares received pursuant to such exercise may be subject to a repurchase right in favor of the Company or
a Related Entity or to any other restriction the Administrator determines to be appropriate. 
 (j) Term of Award. The
term of each Award shall be the term stated in the Award Agreement, provided, however, that the term shall be no more than ten (10) years from the date of grant thereof. However, in the case of an Incentive Stock Option granted to a Grantee
who, at the time the Option is granted, owns stock representing more than ten percent (10%) of the voting 

  

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power of all classes of stock of the Company or any Parent or Subsidiary of the Company, the term of the Incentive Stock Option shall be five (5) years
from the date of grant thereof or such shorter term as may be provided in the Award Agreement. Notwithstanding the foregoing, the specified term of any Award shall not include any period for which the Grantee has elected to defer the receipt of the
Shares or cash issuable pursuant to the Award. 
 (k) Transferability of Awards. Incentive Stock Options may not be
sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Grantee, only by the Grantee. Other Awards shall be
transferable (i) by will and by the laws of descent and distribution and (ii) during the lifetime of the Grantee, to the extent and in the manner authorized by the Administrator by gift or pursuant to a domestic relations order to members
of the Grantee’s Immediate Family. Notwithstanding the foregoing, the Grantee may designate one or more beneficiaries of the Grantee’s Award in the event of the Grantee’s death on a beneficiary designation form provided by the
Administrator. 
 (l) Time of Granting Awards. The date of grant of an Award shall for all purposes be the date on
which the Administrator makes the determination to grant such Award, or such other later date as is determined by the Administrator. 
 7.
Award Exercise or Purchase Price, Consideration and Taxes. 
 (a) Exercise or Purchase Price. The exercise or
purchase price, if any, for an Award shall be as follows: 
 (i) In the case of an Incentive Stock Option: 
 (A) granted to an Employee who, at the time of the grant of such Incentive Stock Option owns stock representing more than ten percent
(10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary of the Company, the per Share exercise price shall be not less than one hundred ten percent (110%) of the Fair Market Value per Share on the date
of grant; or 
 (B) granted to any Employee other than an Employee described in the preceding paragraph, the per Share
exercise price shall be not less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant. 
 (ii) In the case of a Non-Statutory Stock Option, the per Share exercise price shall be not less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant. 
 (iii) In the case of SARs, the base appreciation amount shall not be less than one hundred percent (100%) of the Fair Market Value
per Share on the date of grant. 
 (iv) In the case of Awards intended to qualify as Performance-Based Compensation, the
exercise or purchase price, if any, shall be not less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant. 
  

 12 

 (v) In the case of the sale of Shares, the per Share purchase price, if any, shall be
such price as is determined by the Administrator. 
 (vi) In the case of other Awards, such price as is determined by the
Administrator. 
 (vii) Notwithstanding the foregoing provisions of this Section 7(a), in the case of an Award issued
pursuant to Section 6(d), above, the exercise or purchase price for the Award shall be determined in accordance with the provisions of the relevant instrument evidencing the agreement to issue such Award. 
 (b) Consideration. Subject to Applicable Laws, the consideration to be paid for the Shares to be issued upon exercise or purchase
of an Award including the method of payment, shall be determined by the Administrator. In addition to any other types of consideration the Administrator may determine, the Administrator is authorized to accept as consideration for Shares issued
under the Plan the following: 
 (i) cash; 
 (ii) check; 
 (iii) delivery of Grantee’s promissory note with such recourse, interest, security, and redemption provisions as the Administrator determines as appropriate (but only to the extent that the acceptance or terms of the promissory note
would not violate an Applicable Law); 
 (iv) surrender of Shares held for the requisite period, if any, necessary to avoid a
charge to the Company’s earnings for financial reporting purposes, or delivery of a properly executed form of attestation of ownership of Shares as the Administrator may require which have a Fair Market Value on the date of surrender or
attestation equal to the aggregate exercise price of the Shares as to which said Award shall be exercised; 
 (v) with respect
to Options, payment through a broker-dealer sale and remittance procedure pursuant to which the Grantee (A) shall provide written instructions to a Company designated brokerage firm to effect the immediate sale of some or all of the purchased
Shares and remit to the Company sufficient funds to cover the aggregate exercise price payable for the purchased Shares and (B) shall provide written directives to the Company to deliver the certificates for the purchased Shares directly to
such brokerage firm in order to complete the sale transaction; 
 (vi) with respect to Options, payment through a “net
exercise” such that, without the payment of any funds, the Grantee may exercise the Option and receive the net number of Shares equal to (i) the number of Shares as to which the Option is being exercised, multiplied by (ii) a
fraction, the numerator of which is the Fair Market Value per Share (on such date as is determined by the Administrator) less the Exercise Price per Share, and the denominator of which is such Fair Market Value per Share (the number of net Shares to
be received shall be rounded down to the nearest whole number of Shares); or 
  

 13 

 (vii) any combination of the foregoing methods of payment. 
 The Administrator may at any time or from time to time, by adoption of or by amendment to the standard forms of Award Agreement described in Section 4(c)(iv), or by
other means, grant Awards which do not permit all of the foregoing forms of consideration to be used in payment for the Shares or which otherwise restrict one or more forms of consideration. 
 (c) Taxes. No Shares shall be delivered under the Plan to any Grantee or other person until such Grantee or other person has made
arrangements acceptable to the Administrator for the satisfaction of any Canadian, Canadian province or territory, U.S. federal, U.S. state, or local income and employment tax withholding obligations, including, without limitation, obligations
incident to the receipt of Shares. Upon exercise or vesting of an Award the Company shall withhold or collect from the Grantee an amount sufficient to satisfy such tax obligations, including, but not limited to, by surrender of the whole number of
Shares covered by the Award sufficient to satisfy the minimum applicable tax withholding obligations incident to the exercise or vesting of an Award (reduced to the lowest whole number of Shares if such number of Shares withheld would result in
withholding a fractional Share with any remaining tax withholding settled in cash). 
 8. Exercise of Award. 
 (a) Procedure for Exercise; Rights as a Shareholder. 
 (i) Any Award granted hereunder shall be exercisable at such times and under such conditions as determined by the Administrator under the
terms of the Plan and specified in the Award Agreement. 
 (ii) An Award shall be deemed to be exercised when written notice
of such exercise has been given to the Company in accordance with the terms of the Award by the person entitled to exercise the Award and full payment for the Shares with respect to which the Award is exercised has been made, including, to the
extent selected, use of the broker-dealer sale and remittance procedure to pay the purchase price as provided in Section 7(b)(v). 
 (b) Exercise of Award Following Termination of Service. In the event of termination of a Grantee’s Service for any reason other than Disability or death (but not in the event of a Grantee’s change of
status from Employee to Consultant or from Consultant to Employee), such Grantee may, but only during the Post-Termination Exercise Period (but in no event later than the expiration date of the term of such Award as set forth in the Award
Agreement), exercise the portion of the Grantee’s Award that was vested at the date of such termination or such other portion of the Grantee’s Award as may be determined by the Administrator. The Grantee’s Award Agreement may provide
that upon the termination of the Grantee’s Service for Cause, the Grantee’s right to exercise the Award shall terminate concurrently with the termination of Grantee’s Service. In the event of a Grantee’s change of status from
Employee to Consultant, an Employee’s Incentive Stock Option shall convert automatically to a Non-Statutory Stock Option on the day three (3) months and one day following such change of status. To the extent that the Grantee’s Award
was unvested at the date of termination, or if the Grantee does not exercise the vested portion of the Grantee’s Award within the Post-Termination Exercise Period, the Award shall terminate. 
  

 14 

 (c) Disability of Grantee. In the event of termination of a Grantee’s Service
as a result of his or her Disability, such Grantee may, but only within twelve (12) months from the date of such termination (or such longer period as specified in the Award Agreement but in no event later than the expiration date of the term
of such Award as set forth in the Award Agreement), exercise the portion of the Grantee’s Award that was vested at the date of such termination; provided, however, that if such Disability is not a “disability” as such term is defined
in Section 22(e)(3) of the Code, in the case of an Incentive Stock Option such Incentive Stock Option shall automatically convert to a Non-Statutory Stock Option on the day three (3) months and one day following such termination. To the
extent that the Grantee’s Award was unvested at the date of termination, or if Grantee does not exercise the vested portion of the Grantee’s Award within the time specified herein, the Award shall terminate. 
 (d) Death of Grantee. In the event of a termination of the Grantee’s Service as a result of his or her death, or in the event
of the death of the Grantee during the Post-Termination Exercise Period or during the twelve (12) month period following the Grantee’s termination of Service as a result of his or her Disability, the Grantee’s estate or a person who
acquired the right to exercise the Award by bequest or inheritance may exercise the portion of the Grantee’s Award that was vested as of the date of termination, within twelve (12) months from the date of death (or such longer period as
specified in the Award Agreement but in no event later than the expiration of the term of such Award as set forth in the Award Agreement). To the extent that, at the time of death, the Grantee’s Award was unvested, or if the Grantee’s
estate or a person who acquired the right to exercise the Award by bequest or inheritance does not exercise the vested portion of the Grantee’s Award within the time specified herein, the Award shall terminate. 
 (e) Extension if Exercise Prevented by Law. Notwithstanding the foregoing, if the exercise of an Award within the applicable time
periods set forth in this Section 8 is prevented by the provisions of Section 9 below, the Award shall remain exercisable until one (1) month after the date the Grantee is notified by the Company that the Award is exercisable, but in
any event no later than the expiration of the term of such Award as set forth in the Award Agreement and only in a manner and to the extent permitted under Code Section 409A. 
 (f) Alternative Settlement of Options. As an alternative to the exercise of Options as set forth in this Section 8, where the
Shares are publicly traded, the Administrator may from time to time in its sole discretion, permit Options to be surrendered, unexercised, to the Company in consideration of the receipt by the holder of such Options of an amount (the
“Settlement Amount”) equal to the excess, if any, of the aggregate Fair Market Value of the Shares able to be purchased pursuant to the vested and exercisable portion of such Options on the date of surrender, over the aggregate exercise
price for those Shares pursuant to those Options. The Settlement Amount shall be payable in cash, Shares or a combination thereof, as the Administrator may from time to time in its discretion determine. 
  

 15 

 9. Conditions Upon Issuance of Shares. 
 (a) If at any time the Administrator determines that the delivery of Shares pursuant to the exercise, vesting or any other provision of an
Award is or may be unlawful under Applicable Laws, the vesting or right to exercise an Award or to otherwise receive Shares pursuant to the terms of an Award shall be suspended until the Administrator determines that such delivery is lawful and
shall be further subject to the approval of counsel for the Company with respect to such compliance. The Company shall have no obligation to effect any registration or qualification of the Shares under Canadian, Canadian province or territory, U.S.
federal or U.S. state laws. 
 (b) As a condition to the exercise of an Award, the Company may require the person exercising
such Award to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a
representation is required by any Applicable Laws. 
 10. Adjustments Upon Changes in Capitalization. Subject to any required action
by the shareholders of the Company and Section 11 hereof, and to the terms of any Award Agreement, the number of Shares covered by each outstanding Award, and the number of Shares which have been authorized for issuance under the Plan but as to
which no Awards have yet been granted or which have been returned to the Plan, the exercise or purchase price of each such outstanding Award, the maximum number of Shares with respect to which Awards may be granted to any Grantee in any calendar
year, as well as any other terms that the Administrator determines require adjustment shall be proportionately adjusted for (i) any increase or decrease in the number of issued Shares resulting from a stock split, reverse stock split, stock
dividend, combination or reclassification of the Shares, or similar transaction affecting the Shares, (ii) any other increase or decrease in the number of issued Shares effected without receipt of consideration by the Company, or (iii) any
other transaction with respect to Common Stock including a corporate merger, consolidation, acquisition of property or stock, separation (including a spin-off or other distribution of stock or property), reorganization, liquidation (whether partial
or complete) or any similar transaction; provided, however that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.” In the event of any distribution of cash
or other assets to shareholders other than a normal cash dividend, the Administrator shall also make such adjustments as provided in this Section 10 or substitute, exchange or grant Awards to effect such adjustments (collectively
“adjustments”). Any such adjustments to outstanding Awards will be effected in a manner that precludes the enlargement of rights and benefits under such Awards. In connection with the foregoing adjustments, the Administrator may, in its
discretion, prohibit the exercise of Awards or other issuance of Shares, cash or other consideration pursuant to Awards during certain periods of time. Except as the Administrator determines, no issuance by the Company of shares of any class, or
securities convertible into shares of any class, shall affect, and no adjustment by reason hereof shall be made with respect to, the number or price of Shares subject to an Award. 
  

 16 

 11. Corporate Transactions and Changes in Control. 
 (a) Termination of Award to Extent Not Assumed in Corporate Transaction. Provided that the Grantee is afforded an opportunity to
exercise vested Awards prior to the consummation of the Corporate Transaction, effective upon the consummation of a Corporate Transaction, all outstanding Awards under the Plan shall terminate. However, all such Awards shall not terminate to the
extent they are Assumed in connection with the Corporate Transaction. 
 (b) Acceleration of Award Upon Corporate
Transaction or Change in Control. The Administrator shall have the authority, exercisable either in advance of any actual or anticipated Corporate Transaction or Change in Control or at the time of an actual Corporate Transaction or Change in
Control and exercisable at the time of the grant of an Award under the Plan or any time while an Award remains outstanding, to provide for the full or partial automatic vesting and exercisability of one or more outstanding unvested Awards under the
Plan and the release from restrictions on transfer and repurchase or forfeiture rights of such Awards in connection with a Corporate Transaction or Change in Control, on such terms and conditions as the Administrator may specify. The Administrator
also shall have the authority to condition any such Award vesting and exercisability or release from such limitations upon the subsequent termination of the Service of the Grantee within a specified period following the effective date of the
Corporate Transaction or Change in Control. The Administrator may provide that any Awards so vested or released from such limitations in connection with a Change in Control, shall remain fully exercisable until the expiration or sooner termination
of the Award. 
 (c) Effect of Acceleration on Incentive Stock Options. Any Incentive Stock Option accelerated under
this Section 11 in connection with a Corporate Transaction or Change in Control shall remain exercisable as an Incentive Stock Option under the Code only to the extent the $100,000 dollar limitation of Section 422(d) of the Code is not
exceeded. 
 12. Effective Date and Term of Plan. The Plan was adopted by the Board on April 24, 2003 and approved by the
shareholders of the Company on July 17, 2003. It shall continue in effect until April 23, 2013 unless sooner terminated. The 2009 amendment and restatement of the Plan shall become effective upon its adoption by the Board on May 7,
2009. The amendments in this 2009 restatement of the Plan are not intended to, and will not be treated as, (i) adversely affecting any rights under or (ii) adding any new beneficial features to outstanding options granted under the Plan
prior to the effective date of the Plan’s 2009 amendment and restatement; the terms of such options shall continue to be governed by the applicable stock option agreements already governing such awards and by the terms of the Plan prior to its
2009 amendment and restatement. 
 13. Amendment, Suspension or Termination of the Plan. 
 (a) The Board may at any time amend, suspend or terminate the Plan; provided, however, that no such amendment shall be made prior to
receipt of requisite regulatory approval to the extent required by Applicable Laws, and provided further that no such amendment shall be made without the approval of the Company’s shareholders to the extent such approval is required by
Applicable Laws. 
  

 17 

 (b) No Award may be granted during any suspension of the Plan or after termination of the
Plan. 
 (c) No suspension or termination of the Plan (including termination of the Plan under Section 12, above) shall
adversely affect any rights under Awards already granted to a Grantee. 
 14. Reservation of Shares. 
 (a) The Company, during the term of the Plan, will at all times reserve and keep available such number of Shares as shall be sufficient to
satisfy the requirements of the Plan. 
 (b) The inability of the Company to obtain authority from any regulatory body having
jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such Shares as to
which such requisite authority shall not have been obtained. 
 15. No Effect on Terms of Employment/Consulting Relationship. The Plan
shall not confer upon any Grantee any right with respect to the Grantee’s Service, nor shall it interfere in any way with his or her right or the right of the Company or any Related Entity to terminate the Grantee’s Service at any time,
including, but not limited to, Cause, and with or without notice. The ability of the Company or any Related Entity to terminate the employment of a Grantee who is employed at will is in no way affected by its determination that the Grantee’s
Service has been terminated for Cause for the purposes of this Plan. 
 16. No Effect on Retirement and Other Benefit Plans. Except as
specifically provided in a retirement or other benefit plan of the Company or a Related Entity, Awards shall not be deemed compensation for purposes of computing benefits or contributions under any retirement plan of the Company or a Related Entity,
and shall not affect any benefits under any other benefit plan of any kind or any benefit plan subsequently instituted under which the availability or amount of benefits is related to level of compensation. The Plan is not a “Pension Plan”
or “Welfare Plan” under the Employee Retirement Income Security Act of 1974, as amended. 
 17. Information to Grantees. To
the extent required by Applicable Law, the Company shall provide to each Grantee, during the period for which such Grantee has one or more Awards outstanding, copies of financial statements at least annually. The Company shall not be required to
provide such information to persons whose duties in connection with the Company assure them access to equivalent information. 
 18.
Unfunded Obligation. Grantees shall have the status of general unsecured creditors of the Company. Any amounts payable to Grantees pursuant to the Plan shall be unfunded and unsecured obligations for all purposes, including, without
limitation, Title I of the Employee Retirement Income Security Act of 1974, as amended. Neither the Company nor any Related Entity shall be required to segregate any monies from its general funds, or to create any trusts, or establish any
special accounts with respect to such obligations. The Company shall retain at all times beneficial ownership of any investments, including trust investments, which the Company may 

  

 18 

 
make to fulfill its payment obligations hereunder. Any investments or the creation or maintenance of any trust or any Grantee account shall not create or
constitute a trust or fiduciary relationship between the Administrator, the Company or any Related Entity and a Grantee, or otherwise create any vested or beneficial interest in any Grantee or the Grantee’s creditors in any assets of the
Company or a Related Entity. The Grantees shall have no claim against the Company or any Related Entity for any changes in the value of any assets that may be invested or reinvested by the Company with respect to the Plan. 
 19. Construction. Captions and titles contained herein are for convenience only and shall not affect the meaning or interpretation of any
provision of the Plan. Except when otherwise indicated by the context, the singular shall include the plural and the plural shall include the singular. Use of the term “or” is not intended to be exclusive, unless the context clearly
requires otherwise. 
 20. Nonexclusivity of the Plan. Neither the adoption of the Plan by the Board, the submission of the Plan to
the shareholders of the Company for approval, nor any provision of the Plan will be construed as creating any limitations on the power of the Board to adopt such additional compensation arrangements as it may deem desirable, including, without
limitation, the granting of Awards otherwise than under the Plan, and such arrangements may be either generally applicable or applicable only in specific cases. 
  

 19Security Agreement

 Exhibit 4.1 
 Execution Version 
 THIS AGREEMENT OR INSTRUMENT AND THE RIGHTS AND OBLIGATIONS EVIDENCED HEREBY
ARE SUBJECT TO THAT CERTAIN INTERCREDITOR AGREEMENT DATED AS OF MAY 7, 2009, AMONG BANK OF AMERICA, N.A., AS FIRST LIEN AGENT, U.S. BANK NATIONAL ASSOCIATION, AS SECOND LIEN AGENT, SONIC AUTOMOTIVE, INC. AND THE SUBSIDIARIES OF SONIC AUTOMOTIVE,
INC. PARTY THERETO (THE “INTERCREDITOR AGREEMENT”), AND EACH PARTY TO OR HOLDER OF THIS AGREEMENT OR INSTRUMENT, BY ITS ACCEPTANCE HEREOF, IRREVOCABLY AGREES TO BE BOUND BY THE PROVISIONS OF THE INTERCREDITOR AGREEMENT

 SECURITY AGREEMENT 
 THIS SECURITY AGREEMENT (this “Security Agreement”) is made and entered into as of May 7, 2009 by SONIC AUTOMOTIVE, INC., a Delaware corporation (the “Company” and a
“Grantor”), EACH OF THE UNDERSIGNED SUBSIDIARIES OF THE COMPANY AND EACH OTHER PERSON WHO SHALL BECOME A PARTY HERETO BY EXECUTION OF A JOINDER AGREEMENT (each a “Grantor”, and collectively with the Company,
the “Grantors”), and U.S. BANK NATIONAL ASSOCIATION, as collateral agent (together with any successor, the “Collateral Agent”) for the Trustee (as defined below) and each Holder (collectively with the
Collateral Agent, the “Secured Parties”). All capitalized terms used but not otherwise defined herein shall have the respective meanings assigned thereto in the Indenture (as defined below). 
 W I T N E S S E T H: 
 WHEREAS, 6.00% Senior Secured Convertible Notes due 2012 of the Company (the “Securities”), in the original aggregate principal amount of $85,627,000.00 will be issued pursuant to the Indenture, dated as of
May 7, 2009 (as amended, modified, supplemented, restated or amended and restated from time to time, the “Indenture”), among the Company, the Guarantors and U.S. Bank National Association, as trustee (the
“Trustee”); 
 WHEREAS, each Guarantor has, pursuant to the Indenture, unconditionally guaranteed the Secured
Obligations (as defined below); 
 WHEREAS, the Company and each other Grantor will materially benefit from the issuance of the
Securities; and 
 WHEREAS, it is a condition to the issuance and sale of the Securities that the Grantors execute and deliver this
Security Agreement. 
 NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein, the parties hereto
agree as follows: 
 1. Certain Definitions. Terms used in this Security Agreement, not otherwise expressly defined
herein or in the Indenture, and for which meanings are provided in the Uniform Commercial Code of the State of New York (the “UCC”), shall have such meanings. 

 2. Grant of Security Interest. Each Grantor hereby grants as collateral security for
the payment, performance and satisfaction of all of the Indenture Obligations and the payment and performance of its obligations and liabilities (whether now existing or hereafter arising) hereunder or under any other Note Document to which it is
now or hereafter becomes a party (such Indenture Obligations, obligations and liabilities of the Grantors referred to collectively as the “Secured Obligations”), to the Collateral Agent for the benefit of the Secured Parties a
continuing security interest in and to, and collaterally assigns to the Collateral Agent for the benefit of the Secured Parties, all of the personal property and trade fixtures of such Grantor or in which such Grantor has or may have or acquire an
interest or the power to transfer rights therein, whether now owned or existing or hereafter created, acquired or arising and wheresoever located, including the following: 
 (a) All accounts, and including accounts receivable, contracts, bills, acceptances, choses in action, and other forms of monetary
obligations at any time owing to such Grantor arising out of property sold, leased, licensed, assigned or otherwise disposed of or for services rendered or to be rendered by such Grantor, and all of such Grantor’s rights with respect to any
property represented thereby, whether or not delivered, property returned by customers and all rights as an unpaid vendor or lienor, including rights of stoppage in transit and of recovering possession by proceedings including replevin and
reclamation (collectively referred to hereinafter as “Accounts”); 
 (b) All new and used vehicle inventory
(including all inventory consisting of new or used automobiles or trucks with a gross vehicle weight of less than 16,000 pounds) in which such Grantor now or at any time hereafter may have an interest, whether or not the same is in transit or in the
constructive, actual or exclusive occupancy or possession of such Grantor or is held by such Grantor or by others for such Grantor’s account (all of the foregoing, collectively referred to hereinafter as “Vehicle Inventory”);

 (c) All other inventory, including all goods manufactured or acquired for sale or lease, and any piece goods, raw
materials, work in process and finished merchandise, component materials, and all supplies, goods, incidentals, office supplies, packaging materials and any and all items used or consumed in the operation of the business of such Grantor or which may
contribute to the finished product or to the sale, promotion and shipment thereof, in which such Grantor now or at any time hereafter may have an interest, whether or not the same is in transit or in the constructive, actual or exclusive occupancy
or possession of such Grantor or is held by such Grantor or by others for such Grantor’s account, (together with the Vehicle Inventory, collectively referred to hereinafter as “Inventory”); 
 (d) All goods, including all machinery, equipment, motor vehicles, parts, supplies, apparatus, appliances, tools, patterns, molds, dies,
blueprints, fittings, furniture, furnishings, trade fixtures and articles of tangible personal property of every description, and all computer programs embedded in any of the foregoing and all supporting information relating to such computer
programs (collectively referred to hereinafter as “Equipment”); 
 (e) Any right of such Grantor in
(i) contracts in transit relating to any Vehicle Inventory (including any Vehicle Inventory that has been sold, leased or otherwise 

 
disposed of by such Grantor), (ii) any written or oral agreement of any finance company or other Person to provide financing for, or to pay all or any
portion of the purchase price of any Vehicle Inventory (including any Vehicle Inventory that has been sold, leased or otherwise disposed of by such Grantor) or (iii) any amount to be received under such contracts or agreements (collectively
referred to hereinafter as “Contracts In Transit”); 
 (f) All other general intangibles, including all
rights now or hereafter accruing to such Grantor under contracts, leases, agreements or other instruments, including all contracts or contract rights to perform or receive services, to purchase or sell goods (including the Vehicle Inventory) or to
hold or use land or facilities, and to enforce all rights thereunder, all causes of action, corporate or business records, inventions, patents and patent rights, rights in mask works, designs, trade names and trademarks and all goodwill associated
therewith, trade secrets, trade processes, copyrights, licenses, permits, franchises, customer lists, computer programs and software, all internet domain names and registration rights thereto, all internet websites and the content thereof, all
payment intangibles, all claims under guaranties, tax refund claims, all rights and claims against carriers and shippers, leases, all claims under insurance policies, all interests in general and limited partnerships, limited liability companies,
and other Persons not constituting Investment Property (as defined below), all rights to indemnification and all other intangible personal property and intellectual property of every kind and nature, (together with the Contracts-In-Transit,
collectively referred to hereinafter as “General Intangibles”); 
 (g) All deposit accounts, including
demand, time, savings, passbook, or other similar accounts maintained with any bank by or for the benefit of such Grantor (collectively referred to hereinafter as “Deposit Accounts”); 
 (h) All chattel paper, including tangible chattel paper, electronic chattel paper, or any hybrid thereof (collectively referred to
hereinafter as “Chattel Paper”); 
 (i) All investment property, including all securities, security
entitlements, securities accounts, commodity contracts and commodity accounts of or maintained for the benefit of such Grantor, but excluding pledged equity interests subject to either (y) the Securities Pledge Agreement, dated as of the date
hereof (as amended, modified, supplemented, restated or amended and restated from time to time, the “Pledge Agreement”), among the grantors party thereto and the Collateral Agent or (z) the Security Agreement (Escrowed Equity),
dated as of the date hereof (as amended, modified, supplemented, restated or amended and restated from time to time, the “Security Agreement (Escrowed Equity)”), among the grantors party thereto and the Collateral Agent, and the
other property excluded by the proviso at the end of this Section 2 (collectively referred to hereinafter as “Investment Property”); 
 (j) All instruments, including all promissory notes (collectively referred to hereinafter as “Instruments”); 

(k) All documents, including manufacturer statements of origin, certificates or origin, and certificates of title or ownership relating
to any Vehicle Inventory, warehouse 

 
receipts, bills of lading and other documents of title (collectively referred to hereinafter as “Documents”); 
 (l) All rights to payment or performance under letters of credit including rights to proceeds of letters of credit
(“Letter-of-Credit Rights”), and all guaranties, endorsements, Liens, other Guarantee obligations or supporting obligations of any Person securing or supporting the payment, performance, value or liquidation of any of the foregoing
(collectively, with Letter-of-Credit Rights, referred to hereinafter as “Supporting Obligations”); 
 (m) The
commercial tort claims identified on Schedule 8(h) hereto, as such Schedule may be supplemented from time to time in accordance with the terms hereof (collectively referred to hereinafter as “Commercial Tort Claims”);

 (n) All books and records relating to any of the forgoing (including customer data, credit files, ledgers, computer
programs, printouts, and other computer materials and records (and all media on which such data, files, programs, materials and records are or may be stored)); and 
 (o) All proceeds, products and replacements of, accessions to, and substitutions for, any of the foregoing, including without limitation,
proceeds of insurance policies insuring any of the foregoing; 
 All of the property and interests in property described in subsections
(a) through (o) are herein collectively referred to as the “Collateral”; provided, however, that Collateral shall not include any Excluded Property. Notwithstanding the foregoing, the grant of a security
interest and collateral assignment under this Section 2 shall not extend to any of the following (collectively, “Excluded Property”): (A) any Franchise Agreement (as defined in the Credit Facility as of the date
hereof), Framework Agreement (as defined in the Credit Facility as of the date hereof) or similar manufacturer agreement to the extent that any such Franchise Agreement (as defined in the Credit Facility as of the date hereof), Framework Agreement
(as defined in the Credit Facility as of the date hereof) or similar manufacturer agreement is not assignable or capable of being encumbered as a matter of law or by the terms applicable thereto (unless any such restriction on assignment or
encumbrance is ineffective under the UCC or other applicable law), without the consent of the applicable party thereto, (B) the Restricted Equity Interests (as defined in the Security Agreement (Escrowed Equity)) to the extent that applicable
law or terms of the applicable Franchise Agreement (as defined in the Credit Facility as of the date hereof), Framework Agreement (as defined in the Credit Facility as of the date hereof) or similar manufacturer agreement would prohibit the pledge
or encumbrance thereof (unless any such restriction on assignment or encumbrance is ineffective under the UCC or other applicable law), without the consent of the applicable party thereto, (C) any property financed by manufacturer-affiliated
finance companies pursuant to an Inventory Facility permitted to be incurred under the Indenture and that secures such obligations on a first priority basis, (D) any pledges of stock or other equity interests of a Guarantor to the extent that
Rule 3-16 of Regulation S-X under the Securities Act requires or would require (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, that would require) the filing with the SEC of separate financial
statements of such Guarantor that are not otherwise required to be filed, but only to the extent necessary to not be subject to such requirement, (E) equity interests in Unrestricted 

 
Subsidiaries (subject to future grants under the terms of the Indenture), (F) any pledge of more than 65% of the total outstanding voting stock issued
by any Subsidiary organized under the laws of a jurisdiction other than the United States, (G) any Permitted Real Estate Indebtedness Collateral (as defined on Exhibit A), (H) any other real property or (I) any other assets
excluded from, or that (for any other reason) are not included in, the Collateral securing the Credit Facility from time to time after the date hereof; provided, that (i) if any of the foregoing property described in clauses
(A) through (I) ceases to be “Excluded Property” by its terms, such property shall no longer constitute Excluded Property and shall automatically be deemed to be Collateral under this Security Agreement and each other Note
Document, as applicable, (ii) if any material property becomes “Excluded Property” by the operation of clause (I) above, the Company shall promptly notify the Collateral Agent of such property and (iii) if any real property
ever secures the Credit Facility on a first-priority basis, such real property shall be Collateral and the relevant Grantor shall cause such real property to secure the Secured Obligations on a second-priority basis with mortgage, real estate trust
deed or similar instruments of Lien containing terms no more restrictive to the relevant Grantor than in the first-priority basis. 
 3. Perfection. (a) As of the date of execution of this Security Agreement or Joinder Agreement by each Grantor, as applicable (with respect to each Grantor, its “Applicable Date”), such Grantor
shall have: 
 (i) furnished the Collateral Agent with duly authorized financing statements in form, number and substance
suitable for filing, sufficient under applicable law, and satisfactory to the Collateral Agent in order that upon the filing of the same the Collateral Agent, for the benefit of the Secured Parties, shall have a duly perfected security interest in
all Collateral in which a security interest can be perfected by the filing of financing statements; and 
 (ii) delivered to
the Collateral Agent, or an agent or bailee of the Collateral Agent, all Collateral with respect to which either a security interest can be perfected only by possession or a security interest perfected by possession shall have priority as against
Persons not having possession, and including in the case of Instruments, Documents, and Investment Property in the form of certificated securities, duly executed endorsements or stock powers in blank, as the case may be, affixed thereto in form and
substance acceptable to the Collateral Agent and sufficient under applicable law so that the Collateral Agent, for the benefit of the Secured Parties, shall have a security interest in all such Collateral perfected by possession; 
 with the effect that the Liens conferred in favor of the Collateral Agent shall be and remain duly perfected and subject only, to the extent applicable, to Permitted
Liens. All financing statements (including all amendments thereto and continuations thereof), certificates, stock powers and other documents furnished in connection with the creation, enforcement, protection, perfection or priority of the Collateral
Agent’s security interest in Collateral, including such items as are described above in this Section 3, are sometimes referred to herein as “Perfection Documents”. The delivery of possession of items of or
evidencing Collateral, causing other Persons to execute and deliver Perfection Documents as appropriate, the filing or recordation of Perfection Documents, the establishment of control over items of Collateral, and the taking of such other actions
as may be necessary or advisable in the determination of the Collateral Agent to create, enforce, protect, perfect, or establish or maintain the priority of, the security interest of the 

 
Collateral Agent for the benefit of the Secured Parties in the Collateral is sometimes referred to herein as “Perfection Action”.

 (b) Notwithstanding anything to the contrary in this Security Agreement or any other Note Document, (i) no Grantor
shall be required to deliver to the Collateral Agent, or an agent or bailee of the Collateral Agent, any motor- vehicle certificate of title or any other document of title and (ii) no Grantor shall be required to enter into, or to obtain for
the benefit of the Collateral Agent or any Holder, any deposit account control agreement, securities account control agreement, issuer acknowledgement of the Collateral Agent’s interest in Letter-of-Credit Rights, agreements regarding the
control of electronic Chattel Paper (or the electronic components of hybrid Chattel Paper), acknowledgements of warehousemen or bailees or other agreements or instruments, with or from third parties, similar to any of the foregoing. 
 4. Second Priority Nature of Liens. Notwithstanding anything herein to the contrary, the lien and security interest granted
to the Collateral Agent pursuant to this Security Agreement shall be a second priority lien on and security interest in the Collateral to the extent provided in the Intercreditor Agreement and the exercise of any right or remedy by the Collateral
Agent hereunder is subject to the provisions of the Intercreditor Agreement. In the event of any conflict between the terms of the Intercreditor Agreement and this Security Agreement, the terms of the Intercreditor Agreement shall govern and
control. Notwithstanding anything herein to the contrary, prior to the Discharge of the First Lien Debt (as defined in the Intercreditor Agreement), the requirements of this Security Agreement to physically deliver any Collateral to the Collateral
Agent or to cause the Collateral Agent to obtain control of any such Collateral shall be deemed satisfied by delivery of such Collateral to the First Lien Agent (as defined in the Intercreditor Agreement), as agent and bailee of the Collateral
Agent, or by causing the First Lien Agent, as agent and bailee of the Collateral Agent, to obtain control of such Collateral, as applicable, in accordance with the Intercreditor Agreement. 
 5. Maintenance of Security Interest; Further Assurances. 
 (a) Each Grantor will from time to time at its own expense, deliver specific assignments of Collateral or such other Perfection Documents,
and take such other or additional Perfection Action, as may be required by the terms of the Indenture in connection with the administration or enforcement of this Security Agreement or related to the Collateral or any part thereof in order to carry
out the terms of this Security Agreement, to perfect, protect, maintain the priority of or enforce the Collateral Agent’s security interest in the Collateral, subject only to Permitted Liens, or otherwise to better assure and confirm unto the
Collateral Agent its rights, powers and remedies for the benefit of the Secured Parties hereunder. Without limiting the foregoing, each Grantor hereby irrevocably authorizes the Collateral Agent to file (with, or to the extent permitted by
applicable law, without the signature of the Grantor appearing thereon) financing statements (including amendments thereto and initial financing statements in lieu of continuation statements) or other Perfection Documents (including copies thereof)
showing such Grantor as “debtor” at such time or times and in all filing offices as the Collateral Agent may from time to time determine to be necessary or advisable to perfect or protect the rights of the Collateral Agent and the Secured
Parties hereunder, or otherwise to give effect to the transactions herein contemplated. Each Grantor hereby irrevocably ratifies and acknowledges the Collateral Agent’s authority to have effected 

 
filings of Perfection Documents made by the Collateral Agent prior to its Applicable Date. 
 (b) With respect to any and all Collateral, each Grantor agrees to do and cause to be done all things necessary to perfect, maintain the
priority of and keep in full force the security interest granted in favor of the Collateral Agent for the benefit of the Secured Parties, including, but not limited to, the prompt payment upon demand therefor by the Collateral Agent of all fees and
expenses (including documentary stamp, excise or intangibles taxes) incurred in connection with the preparation, delivery, or filing of any Perfection Document or the taking of any Perfection Action to perfect, protect or enforce a security interest
in Collateral in favor of the Collateral Agent for the benefit of the Secured Parties, subject only to Permitted Liens. All amounts not so paid when due shall constitute additional Secured Obligations and (in addition to other rights and remedies
resulting from such nonpayment) shall bear interest from the date of demand until paid in full at the then applicable interest rate borne by the Securities. 
 (c) Each Grantor agrees to maintain among its books and records appropriate notations or evidence of, and to make or cause to be made
appropriate disclosure upon its financial statements of, the security interest granted hereunder to the Collateral Agent for the benefit of the Secured Parties. 
 (d) Each Grantor agrees that, in the event any proceeds (other than goods) of Collateral shall be or become commingled with other property
not constituting Collateral, then such proceeds may, to the extent permitted by law, be identified by application of the lowest intermediate balance rule to such commingled property. 
 6. Preservation and Protection of Collateral. 
 (a) The Collateral Agent shall be under no duty or liability with respect to the collection, protection or preservation of the Collateral, or otherwise. Each Grantor shall be responsible for the safekeeping of its
Collateral, and in no event shall the Collateral Agent have any responsibility for (i) any loss or damage thereto or destruction thereof occurring or arising in any manner or fashion from any cause, (ii) any diminution in the value
thereof, or (iii) any act or default of any carrier, warehouseman, bailee or forwarding agency thereof or other Person in any way dealing with or handling such Collateral. 
 (b) No Grantor shall permit any such items having an aggregate value in excess of $1,000,000 to become a fixture to real property (other
than any signage fixture attached in the ordinary course of business or unless such Grantor has granted the Collateral Agent for the benefit of the Secured Parties a Lien on such real property) or accessions to other personal property. 

(c) Each Grantor agrees (i) to pay prior to delinquency all taxes, charges and assessments against the Collateral in which it has
any interest, unless being contested in good faith by appropriate proceedings diligently conducted and against which adequate reserves have been established in accordance with GAAP applied on a basis consistent with the application of GAAP in the
audited financial statements of the Company and 

 
evidenced to the satisfaction of the Collateral Agent and provided that all enforcement proceedings in the nature of levy or foreclosure are effectively
stayed, and (ii) to cause to be terminated and released all Liens (other than Permitted Liens) on the Collateral. Upon the failure of any Grantor to so pay or contest such taxes, charges, or assessments, or cause such Liens to be terminated,
the Collateral Agent at its option may pay or contest any of them or amounts relating thereto (the Collateral Agent having the sole right to determine the legality or validity and the amount necessary to discharge such taxes, charges, Liens or
assessments) but shall not have any obligation to make any such payment or contest. All sums so disbursed by the Collateral Agent, including fees, charges and disbursements of counsel (“Attorney Costs”), court costs, expenses and
other charges related thereto, shall be payable on demand by the applicable Grantor to the Collateral Agent and shall be additional Secured Obligations secured by the Collateral, and any amounts not so paid on demand (in addition to other rights and
remedies resulting from such nonpayment) shall bear interest at the then applicable interest rate borne by the Securities. 
 7.
Status of Grantors and Collateral Generally. Each Grantor represents and warrants to, and covenants with, the Collateral Agent for the benefit of the Secured Parties, with respect to itself and the Collateral as to which it has or
acquires any interest, that: 
 (a) It is at its Applicable Date (or as to Collateral acquired after its Applicable Date will
be upon the acquisition of the same) and, except as permitted by the Indenture and subsection (b) of this Section 7, will continue to be, the owner of the Collateral, free and clear of all Liens, other than the security
interest hereunder in favor of the Collateral Agent for the benefit of the Secured Parties and Permitted Liens, and that it will at its own cost and expense defend such Collateral and any products and proceeds thereof against all claims and demands
of all Persons (other than holders of Permitted Liens) to the extent of their claims permitted under the Indenture at any time claiming the same or any interest therein adverse to the Secured Parties. Upon the failure of any Grantor to so defend,
the Collateral Agent may do so at its option but shall not have any obligation to do so. All sums so disbursed by the Collateral Agent, including reasonable Attorney Costs, court costs, expenses and other charges related thereto, shall be payable on
demand by the applicable Grantor to the Collateral Agent and shall be additional Secured Obligations secured by the Collateral, and any amounts not so paid on demand (in addition to other rights and remedies resulting from such nonpayment) shall
bear interest at the then applicable interest rate borne by the Securities. 
 (b) It shall not (i) sell, assign,
transfer, lease, license or otherwise dispose of any of, or grant any option with respect to, the Collateral, except for dispositions permitted by the Indenture or (ii) create or suffer to exist any Lien upon or with respect to any of the
Collateral except for the security interests created by this Security Agreement and Permitted Liens, or (iii) take any other action in connection with any of the Collateral that would materially impair the value of the interest or rights of
such Grantor in the Collateral taken as a whole or that would materially impair the interest or rights of the Collateral Agent for the benefit of the Secured Parties, except with respect to any action not prohibited by the Indenture. 

 (c) It has full power, legal right and lawful authority to enter into this Security
Agreement (and any Joinder Agreement applicable to it) and to perform its terms, including the grant of the security interests in the Collateral herein provided for. 
 (d) No authorization, consent, approval or other action by, and no notice to or filing with, any governmental authority or any other
Person which has not been given or obtained, as the case may be, is required either (i) for the grant by such Grantor of the security interests granted hereby or for the execution, delivery or performance of this Security Agreement (or any
Joinder Agreement) by such Grantor, or (ii) for the perfection of or the exercise by the Collateral Agent, on behalf of the Secured Parties, of its rights and remedies hereunder, except for actions required by the Uniform Commercial Codes of
applicable jurisdictions (which UCC-1 financing statement filings will be made substantially concurrently with the execution of this Security Agreement), and federal statutes regarding copyrights, patents and trademarks, to perfect and exercise
remedies with respect to the security interest conferred hereunder. 
 (e) No effective financing statement or other
Perfection Document similar in effect, nor any other Perfection Action, covering all or any part of the Collateral purported to be granted or taken by or on behalf of such Grantor (or by or on behalf of any other Person and which remains effective
as against all or any part of the Collateral) has been filed in any recording office, delivered to another Person for filing (whether upon the occurrence of a contingency or otherwise), or otherwise taken, as the case may be, except such as pertain
to Permitted Liens and such as may have been filed for the benefit of, delivered to, or taken in favor of, the Collateral Agent for the benefit of the Secured Parties in connection with the security interests conferred hereunder. 
 (f) Schedule 7(f) attached hereto contains true and complete information as to each of the following: (i) the exact legal name
of each Grantor as it appears in its organizational documents as of its Applicable Date and at any time during the five (5) year period ending as of its Applicable Date (the “Covered Period”), (ii) the jurisdiction of
formation and form of organization of each Grantor, and the identification number of such Grantor in its jurisdiction of formation (if any) and (iii) each address of the chief executive office of each Grantor as of its Applicable Date and at
any time during the Covered Period. No Grantor shall change its name, change its jurisdiction of formation (whether by reincorporation, merger or otherwise) or change the location of its chief executive office, except in each case upon giving not
less than thirty (30) days’ prior written notice to the Collateral Agent and taking or causing to be taken at such Grantor’s expense all such Perfection Action, including the delivery of such Perfection Documents, as may be reasonably
requested by the Collateral Agent to perfect or protect, or maintain the perfection and priority of, the Lien of the Collateral Agent for the benefit of the Secured Parties in Collateral contemplated hereunder. 
 (g) No Grantor shall engage in any consignment transaction in respect of any of the Collateral, whether as consignee or consignor.

 (h) No Grantor shall cause, suffer or permit any of the tangible personal property Collateral (i) to be evidenced by
any document of title (except for shipping documents as necessary or customary to effect the receipt of such Collateral or the 

 
delivery of such Collateral to such Grantor or to customers, in each case in the ordinary course of business, and motor vehicle certificates of title).

 8. Inspection. The Collateral Agent (by any of its officers, employees and agents), on behalf of the Secured
Parties, shall have the right, upon prior notice to an executive officer of any Grantor, and at any reasonable times during such Grantor’s usual business hours, to inspect the Collateral, all records related thereto (and to make extracts or
copies from such records), and the premises upon which any of the Collateral is located, to discuss such Grantor’s affairs and finances with any Person (other than Persons obligated on any Accounts (“Account Debtors”) except as
expressly otherwise permitted in the Indenture) and to verify with any Person other than (except as expressly otherwise permitted in the Indenture) Account Debtors the amount, quality, quantity, value and condition of, or any other matter relating
to, the Collateral and, if an Event of Default has occurred and is continuing, to discuss such Grantor’s affairs and finances with such Grantor’s Account Debtors and to verify the amount, quality, value and condition of, or any other
matter relating to, the Collateral with such Account Debtors. If an Event of Default has occurred and is continuing, the Collateral Agent may at any time and from time to time employ and maintain on such Grantor’s premises a custodian selected
by the Collateral Agent who shall have full authority to do all acts necessary to protect the Collateral Agent’s (for the benefit of the Secured Parties) interest. All expenses incurred by the Collateral Agent, on behalf of the Secured Parties,
by reason of the employment of such custodian shall be paid by such Grantor on demand from time to time and shall be added to the Secured Obligations secured by the Collateral, and any amounts not so paid on demand (in addition to other rights and
remedies resulting from such nonpayment) shall bear interest at the then applicable interest rate borne by the Securities. 
 9.
Specific Collateral. 
 (a) Accounts. With respect to its Accounts whether now existing or hereafter
created or acquired and wheresoever located, each Grantor represents, warrants and covenants to the Collateral Agent for the benefit of the Secured Parties that: 
 (i) Such Grantor shall keep accurate and complete records of its Accounts. 
 (ii) From time to time, at the Collateral Agent’s request, the Company shall provide the Collateral Agent with a schedule of Accounts
in excess of $1,000,000 describing all Accounts created or acquired by all Grantors (“Schedule of Accounts”); provided, however, that the Company’s failure to execute and deliver any such Schedule of Accounts
shall not affect or limit the Collateral Agent’s security interest or other rights in and to any Accounts for the benefit of the Secured Parties. 
 (b) Inventory. With respect to its Inventory whether now existing or hereafter created or acquired and wheresoever located, each Grantor represents, warrants and covenants to the Collateral Agent for the
benefit of the Secured Parties that: 
 (i) Such Grantor shall keep accurate and complete records itemizing and describing
(1) with respect to its Vehicle Inventory, each new and used 

 
vehicle, including the year, make, model, cost, price, location and Vehicle Identification Number, and (2) with respect to all Inventory, the kind,
type, location and quantity of such Inventory, its cost therefor and the selling price of Inventory held for sale, and the daily withdrawals therefrom and additions thereto. 
 (ii) Such Grantor shall furnish to the Collateral Agent from time to time, at the Collateral Agent’s request, a current schedule of
Inventory (including Vehicle Inventory) based upon its most recent physical inventory and its daily inventory records. 
 (iii) Each Grantor shall conduct a physical inventory no less frequently than annually, and shall furnish to the Collateral Agent such other documents and reports thereof as the Collateral Agent shall reasonably request with respect to the
Inventory during the continuance of any Event of Default. 
 (c) Equipment. With respect to its Equipment
whether now existing or hereafter created or acquired and wheresoever located, each Grantor represents, warrants and covenants to the Collateral Agent for the benefit of the Secured Parties that: 
 (i) Such Grantor, as soon as practicable following a request therefor by the Collateral Agent during the continuance of any Event of
Default, shall deliver to the Collateral Agent any and all evidence of ownership of any of the Equipment (including without limitation certificates of title and applications for title). 
 (ii) Such Grantor shall maintain accurate, itemized records describing the kind, type, quality, quantity and value of its Equipment and
shall furnish the Collateral Agent upon request, during the continuance of any Default or Event of Default, with a current schedule containing the foregoing information. 
 (d) Supporting Obligations. With respect to its Supporting Obligations whether now existing or hereafter created or acquired
and wheresoever located, each Grantor represents, warrants and covenants to the Collateral Agent for the benefit of the Secured Parties that: 
 (i) Such Grantor shall (A) furnish to the Collateral Agent from time to time at the Collateral Agent’s request, a current list identifying in reasonable detail each Supporting Obligation relating to any
Collateral from a single obligor in excess of $1,000,000 and (B) upon the request of the Collateral Agent from time to time during the continuance of any Default or Event of Default, deliver to the Collateral Agent, or an agent or bailee of the
Collateral Agent, the originals of all documents evidencing or constituting Supporting Obligations, together with such other documentation (executed as appropriate by the Grantor) and information as may be necessary to enable the Collateral Agent to
realize upon the Supporting Obligations in accordance with their respective terms or transfer the Supporting Obligations as may be permitted under the Indenture or by applicable law. 

 (ii) With respect to each transferable letter of credit giving rise to Letter-of-Credit
Rights that has an aggregate stated amount available to be drawn in excess of $500,000, such Grantor shall, at the Collateral Agent’s request, during the continuance of any Default or Event of Default, deliver to the Collateral Agent, or an
agent or bailee of the Collateral Agent, a duly executed, undated transfer form in blank sufficient in form and substance under the terms of the related letter of credit to effect, upon completion and delivery to the letter of credit issuer together
with any required fee, the transfer of such letter of credit to the transferee identified in such form. Each Grantor hereby expressly authorizes the Collateral Agent following the occurrence and during the continuance of any Event of Default to
complete and tender each such transfer form as transferor in its own name or in the name, place and stead of the Grantor in order to effect any such transfer, either to the Collateral Agent or to another transferee, as the case may be, in connection
with any sale or other disposition of Collateral or for any other purpose permitted under the Indenture or by applicable law. 
 (e) Investment Property. With respect to its Investment Property whether now existing or hereafter created or acquired and wheresoever located, each Grantor represents, warrants and covenants to the Collateral Agent for the
benefit of the Secured Parties that: 
 (i) Any certificated securities shall be delivered to the Collateral Agent, or its
agent or bailee, together with duly executed undated stock powers endorsed in blank pertaining thereto. 
 (ii) All dividends
and other distributions with respect to any of the Investment Property shall be subject to the security interest conferred hereunder, provided, however, that cash dividends paid to a Grantor as record owner of the Investment Property
may be disbursed to and retained by such Grantor. 
 (iii) So long as no Event of Default shall have occurred and be
continuing, each Grantor shall be entitled to exercise all voting and other rights and powers pertaining to Investment Property for all purposes not inconsistent with the terms hereof or the Indenture. 
 (iv) Upon the occurrence and during the continuance of any Event of Default, at the option of the Collateral Agent upon notice to the
relevant Grantor, all rights of the Grantors to exercise the voting or consensual rights and powers which it is authorized to exercise pursuant to clause (iii) immediately above shall cease and the Collateral Agent may thereupon (but shall not
be obligated to), at its request, cause such Collateral to be registered in the name of the Collateral Agent or its nominee or agent for the benefit of the Secured Parties and/or exercise such voting or consensual rights and powers as appertain to
ownership of such Collateral, and to that end each Grantor hereby appoints the Collateral Agent as its proxy, with full power of substitution, to vote and exercise all other rights as a shareholder with respect to such Investment Property upon the
occurrence and during the continuance of any Event of Default, which proxy is coupled with an interest and is irrevocable until the termination of this Security Agreement, and 

 
each Grantor hereby agrees to provide such further proxies as the Collateral Agent may request; provided, however, that the Collateral Agent in its
discretion may from time to time refrain from exercising, and shall not be obligated to exercise, any such voting or consensual rights or such proxy. 
 (f) Chattel Paper. With respect to its Chattel Paper whether now existing or hereafter created or acquired and wheresoever located, each Grantor represents, warrants and covenants to the Collateral Agent
for the benefit of the Secured Parties that to the extent so expressly required by the Indenture: 
 (i) Such Grantor shall at
all times retain sole physical possession of the originals of all Chattel Paper (other than electronic Chattel Paper and the electronic components of hybrid Chattel Paper); provided, however, that (x) upon the request of the
Collateral Agent upon the occurrence and during the continuance of any Default or Event of Default, such Grantor shall immediately deliver physical possession of such Chattel Paper to the Collateral Agent or its designee, and (y) in the event
that there shall be created more than one original counterpart of any physical document that alone or in conjunction with any other physical or electronic document constitutes Chattel Paper, then such counterparts shall be numbered consecutively
starting with “1” and such Grantor shall retain the counterpart numbered “1”. 
 (ii) Upon the occurrence
and during the continuance of any Event of Default, at the request of the Collateral Agent, such Grantor shall promptly and conspicuously legend all counterparts of all tangible Chattel Paper substantially as follows: “A SECURITY INTEREST IN
THIS CHATTEL PAPER HAS BEEN GRANTED TO U.S. BANK NATIONAL ASSOCIATION, FOR ITSELF AND AS COLLATERAL AGENT FOR CERTAIN HOLDERS PURSUANT TO A SECURITY AGREEMENT DATED AS OF MAY 7, 2009, AS AMENDED FROM TIME TO TIME. EXCEPT WITH RESPECT TO THE SECURITY
AGREEMENT DATED AS OF FEBRUARY 17, 2006 (OR OTHERWISE WITH RESPECT TO A CREDIT FACILITY) AND THE SECURITY INTEREST GRANTED TO BANK OF AMERICA, N.A. FOR ITSELF AND FOR CERTAIN LENDERS IN CONNECTION THEREWITH, NO SECURITY INTEREST OR OTHER INTEREST IN
FAVOR OF ANY OTHER PERSON MAY BE CREATED BY THE TRANSFER OF PHYSICAL POSSESSION OF THIS CHATTEL PAPER OR OF ANY COUNTERPART HEREOF EXCEPT BY OR WITH THE CONSENT OF THE AFORESAID COLLATERAL AGENT AS PROVIDED IN SUCH SECURITY AGREEMENT”. Upon the
occurrence or during the continuance of any Event of Default, such Grantor shall not create or acquire any electronic Chattel Paper (including the electronic components of hybrid Chattel Paper), unless, prior to such acquisition or creation, it
shall have taken such Perfection Action as the Collateral Agent may require to perfect by control the security interest of the Collateral Agent for the benefit of the Secured Parties in such Collateral. 
 (iii) Other than in the ordinary course of business and in keeping with reasonable and customary practice, no Grantor shall amend, modify,
waive or 

 
terminate any provision of, or fail to exercise promptly and diligently each material right or remedy conferred under or in connection with, any Chattel
Paper, in any case in such a manner as could reasonably be expected to materially adversely affect the value of affected Chattel Paper as collateral. 
 (g) Instruments. With respect to its Instruments whether now existing or hereafter created or acquired and wheresoever located, each Grantor represents, warrants and covenants to the Collateral Agent for
the benefit of the Secured Parties that: 
 (i) Such Grantor shall maintain at all times, and, upon the request of the
Collateral Agent, furnish to the Collateral Agent a current list identifying in reasonable detail Instruments of which such Grantor is the payee or holder and having a face amount payable in excess of $1,000,000 in the aggregate from any single
Person. 
 (ii) Such Grantor shall, upon the request of the Collateral Agent, deliver to the Collateral Agent, or an agent or
bailee of the Collateral Agent, the originals of all such Instruments, together with duly executed undated endorsements in blank affixed thereto and such other documentation and information as may be necessary to enable the Collateral Agent to
realize upon the Instruments in accordance with their respective terms or transfer the Instruments as may be permitted under the Indenture or by applicable law. 
 (iii) Other than in the ordinary course of business and in keeping with reasonable and customary practice, no Grantor shall amend, modify,
waive or terminate any provision of, or fail to exercise promptly and diligently each material right or remedy conferred under or in connection with, any Instrument, in any case in such a manner as could reasonably be expected to materially
adversely affect the value of affected Instrument as collateral. 
 (h) Commercial Tort Claims. With respect to
its Commercial Tort Claims whether now existing or hereafter created or acquired and wheresoever located, each Grantor represents, warrants and covenants to the Collateral Agent for the benefit of the Secured Parties that: 
 (i) Schedule 8(h) attached hereto contains a true and complete list of all Commercial Tort Claims in which any Grantor has an
interest and which have been identified by a Grantor as of its Applicable Date, and as to which the Grantor believes in good faith there exists the possibility of recovery (including by way of settlement) of monetary relief in excess of $1,000,000
(“Grantor Claims”). Each Grantor shall furnish to the Collateral Agent, quarterly within fifteen (15) days after the end of each fiscal quarter of the Company, and upon request by the Collateral Agent, a certificate of an
officer of such Grantor referring to this Section 8(h) and (x) identifying all Grantor Claims that are not then described on Schedule 8(h) attached hereto and stating that each of such additional Grantor Claims shall be
deemed added to such Schedule 8(h) and shall constitute a Commercial Tort Claim, a Grantor Claim, and additional Collateral hereunder, and (y) summarizing the status or disposition of any Grantor Claims that have 

 
been settled, or have been made the subject of any binding mediation, judicial or arbitral proceeding, or any judicial or arbitral order on the merits, or
that have been abandoned. With respect to each such additional Grantor Claim, such Grantor Claim shall be and become part of the Collateral hereunder from the date such claim is identified to the Collateral Agent as provided above without further
action. 
 (ii) The Collateral Agent is hereby authorized (but shall not be obligated to) at the expense of the applicable
Grantor to execute and file such additional financing statements or amendments to previously filed financing statements, and take such other action as it may deem necessary or advisable to perfect the Lien on such additional Grantor Claims conferred
hereunder, and the Grantor shall, if required by applicable law or otherwise at the request of the Collateral Agent, execute and deliver such Perfection Documents and take such other Perfection Action to perfect or protect the Lien of the Collateral
Agent for the benefit of the Secured Parties in such additional Grantor Claims conferred hereunder. 
 10. Casualty and Liability
Insurance Required. 
 (a) Each Grantor will keep the Collateral continuously insured against such risks as are
customarily insured against by businesses of like size and type engaged in the same or similar operations. 
 (b) Each
insurance policy obtained in satisfaction of the requirements of Section 9(a): 
 (i) may be provided by blanket
policies now or hereafter maintained by each or any Grantor or by the Borrower; 
 (ii) shall be issued by such insurer (or
insurers) as shall be financially responsible and of recognized standing; 
 (iii) shall be in such form and have such
provisions (including, without limitation, the loss payable clause, the wavier of subrogation clause, the deductible amount, if any, and the standard mortgagee endorsement clause) as are generally considered standard provisions for the type of
insurance involved. 
 (iv) shall prohibit cancellation or substantial modification, termination or lapse in coverage by the
insurer without at least thirty (30) days’ prior written notice to the Collateral Agent, except for non-payment of premium, as to which such policies shall provide for at least ten (10) days’ prior written notice to the
Collateral Agent; and 
 (v) without limiting the generality of the foregoing, all insurance policies where applicable under
Section 9(a) carried on the Collateral shall name the Collateral Agent, for the benefit of the Secured Parties, as second loss payee and the Collateral Agent and Holders as parties insured thereunder in respect of any claim for payment.

 (c) Prior to expiration of any such policy, such Grantor shall furnish the Collateral
Agent with evidence that the policy or certificate has been renewed or replaced or is no longer required by this Security Agreement. 
 (d) Each Grantor hereby makes, constitutes and appoints the Collateral Agent (and all officers, employees or agents designated by the Collateral Agent), for the benefit of the Secured Parties, as such Grantor’s true and lawful attorney
(and agent-in-fact) for the purpose of making, settling and adjusting claims under such policies of insurance, endorsing the name of such Grantor on any check, draft, instrument or other item or payment for the proceeds of such policies of insurance
and for making all determinations and decisions with respect to such policies of insurance, which appointment is coupled with an interest and is irrevocable; provided, however, that the powers pursuant to such appointment shall be exercisable only
upon the occurrence and during the continuance of any Event of Default. 
 11. Rights and Remedies Upon Event of
Default. Upon the occurrence and during the continuance of any Event of Default, the Collateral Agent shall have the following rights and remedies on behalf of the Secured Parties in addition to any rights and remedies set forth elsewhere in
the Indenture, this Security Agreement or any other Note Document, all of which may be exercised with or, if allowed by law, without notice to a Grantor: 
 (a) All of the rights and remedies of a secured party under the UCC or under other applicable law, all of which rights and remedies shall be cumulative, and none of which shall be exclusive, to the extent permitted by
law, in addition to any other rights and remedies contained in the Indenture, this Security Agreement or any other Note Document; 
 (b) The right to foreclose the Liens and security interests created under this Security Agreement by any available judicial procedure or without judicial process; 
 (c) The right to (i) enter upon the premises of a Grantor through self-help and without judicial process, without first obtaining a
final judgment or giving such Grantor notice or opportunity for a hearing on the validity of the Collateral Agent’s claim and without any obligation to pay rent to such Grantor, or any other place or places where any Collateral is located and
kept, and remove the Collateral therefrom to the premises of the Collateral Agent or any agent of the Collateral Agent, for such time as the Collateral Agent may desire, in order effectively to collect or liquidate the Collateral, (ii) require
such Grantor or any bailee or other agent of such Grantor to assemble the Collateral and make it available to the Collateral Agent at a place to be designated by the Collateral Agent that is reasonably convenient to both parties, and
(iii) notify any or all Persons who have possession of or control over any Collateral of the occurrence of any Event of Default and other appropriate circumstances, and exercise control over and take possession or custody of any or all
Collateral in the possession, custody or control of such other Persons; 
 (d) The right to (i) exercise all of a
Grantor’s rights and remedies with respect to the collection of Accounts, Chattel Paper, Instruments, Supporting Obligations and General Intangibles (collectively, “Payment Collateral”), including the right to demand 

 
payment thereof and enforce payment, by legal proceedings or otherwise; (ii) settle, adjust, compromise, extend or renew all or any Payment Collateral
or any legal proceedings pertaining thereto; (iii) discharge and release all or any Payment Collateral; (iv) take control, in any manner, of any item of payment or proceeds constituting Collateral; (v) prepare, file and sign a
Grantor’s name on any proof of claim in bankruptcy, notice of Lien, assignment or satisfaction of Lien or similar document in any action or proceeding adverse to any obligor under any Payment Collateral or otherwise in connection with any
Payment Collateral; (vi) endorse the name of a Grantor upon any chattel paper, document, instrument, invoice, freight bill, bill of lading or similar document or agreement relating to any Collateral; (vii) use the information recorded on
or contained on a Grantor’s internet website or otherwise in any data processing equipment and computer hardware and software relating to any Collateral to which a Grantor has access; (viii) open such Grantor’s mail and collect any
and all amounts due to such Grantor from any Account Debtors or other obligor in respect of Payment Collateral; (ix) take over such Grantor’s post office boxes or make other arrangements as the Collateral Agent, on behalf of the Secured
Parties, deems necessary to receive such Grantor’s mail, including notifying the post office authorities to change the address for delivery of such Grantor’s mail to such address as the Collateral Agent, on behalf of the Secured Parties,
may designate; (x) notify any or all Account Debtors or other obligor on any Payment Collateral that such Payment Collateral has been assigned to the Collateral Agent for the benefit of the Secured Parties and that Collateral Agent has a
security interest therein for the benefit of the Secured Parties (provided that the Collateral Agent may at any time give such notice to an Account Debtor that is a department, agency or authority of the United States government); each Grantor
hereby agrees that any such notice, in the Collateral Agent’s sole discretion, may (but need not) be sent on such Grantor’s stationery, in which event such Grantor shall co-sign such notice with the Collateral Agent if requested to do so
by the Collateral Agent; and (xi) do all acts and things and execute all documents necessary, in Collateral Agent’s sole discretion, to collect the Payment Collateral; and 
 (e) The right to sell all or any Collateral in its then existing condition, or after any further manufacturing or processing thereof, at
such time or times, at public or private sale or sales, with such notice as may be required by law, in lots or in bulk, for cash or on credit, with or without representations and warranties, all as the Collateral Agent, in its sole discretion, may
deem advisable. The Collateral Agent shall have the right to conduct such sales on a Grantor’s premises or elsewhere and shall have the right to use a Grantor’s premises without charge for such sales for such time or times as the
Collateral Agent may see fit. The Collateral Agent may, if it deems it reasonable, postpone or adjourn any sale of the Collateral from time to time by an announcement at the time and place of such postponed or adjourned sale, and such sale may,
without further notice, be made at the time and place to which it was so adjourned. Each Grantor agrees that the Collateral Agent has no obligation to preserve rights to the Collateral against prior parties or to marshal any Collateral for the
benefit of any Person. The Collateral Agent for the benefit of the Secured Parties is hereby granted an irrevocable fully paid license or other right (including each Grantor’s rights under any license or any franchise agreement), each of which
shall remain in full force and effect until the termination of this Security Agreement, to use, without charge, each of the labels, patents, copyrights, names, trade secrets, trade names, trademarks and advertising matter, 

 
or any property of a similar nature owned or licensed by any Grantor, as it pertains to the Collateral, in completing production of, advertising for sale and
selling any Collateral. If any of the Collateral shall require repairs, maintenance, preparation or the like, or is in process or other unfinished state, the Collateral Agent shall have the right, but shall not be obligated, to perform such repairs,
maintenance, preparation, processing or completion of manufacturing for the purpose of putting the same in such saleable form as the Collateral Agent shall deem appropriate, but the Collateral Agent shall have the right to sell or dispose of the
Collateral without such processing and no Grantor shall have any claim against the Collateral Agent for the value that may have been added to such Collateral with such processing. In addition, each Grantor agrees that in the event notice is
necessary under applicable law, written notice mailed to such Grantor in the manner specified herein ten (10) days prior to the date of public sale of any of the Collateral or prior to the date after which any private sale or other disposition
of the Collateral will be made shall constitute commercially reasonable notice to such Grantor. All notice is hereby waived with respect to any of the Collateral which threatens to decline speedily in value or is of a type customarily sold on a
recognized market. The Collateral Agent may purchase all or any part of the Collateral at public or, if permitted by law, private sale, free from any right of redemption which is hereby expressly waived by such Grantor and, in lieu of actual payment
of such purchase price, may set off the amount of such price against the Secured Obligations. Each Grantor recognizes that the Collateral Agent may be unable to effect a public sale of certain of the Collateral by reason of certain prohibitions
contained in the Securities Act, and applicable state law, and may be otherwise delayed or adversely affected in effecting any sale by reason of present or future restrictions thereon imposed by governmental authorities (“Affected
Collateral”), and that as a consequence of such prohibitions and restrictions the Collateral Agent may be compelled (i) to resort to one or more private sales to a restricted group of purchasers who will be obliged to agree, among
other things, to acquire Affected Collateral for their own account, for investment and not with a view to the distribution or resale thereof, or (ii) to seek regulatory approval of any proposed sale or sales, or (iii) to limit the amount
of Affected Collateral sold to any Person or group. Each Grantor agrees and acknowledges that private sales so made may be at prices and upon terms less favorable to such Grantor than if such Affected Collateral was sold either at public sales or at
private sales not subject to other regulatory restrictions, and that the Collateral Agent has no obligation to delay the sale of any Affected Collateral for the period of time necessary to permit the Grantor or any other Person to register or
otherwise qualify them under or exempt them from any applicable restriction, even if such Grantor or other Person would agree to register or otherwise qualify or exempt such Affected Collateral so as to permit a public sale under the Securities Act
or applicable state law. Each Grantor further agrees, to the extent permitted by applicable law, that the use of private sales made under the foregoing circumstances to dispose of Affected Collateral shall be deemed to be dispositions in a
commercially reasonable manner. Each Grantor hereby acknowledges that a ready market may not exist for Affected Collateral that is not traded on a national securities exchange or quoted on an automated quotation system. 
 The net cash proceeds resulting from the collection, liquidation, sale, or other disposition of the Collateral shall be applied first to the expenses
(including all Attorneys’ Costs) of retaking, holding, storing, processing and preparing for sale, selling, collecting, liquidating and the like, and then to the satisfaction of all Secured Obligations in accordance with the terms of 

 
Section 406 of the Indenture. Each Grantor shall be liable to the Collateral Agent, for the benefit of the Secured Parties, and shall pay to the
Collateral Agent, for the benefit of the Secured Parties, on demand any deficiency which may remain after such sale, disposition, collection or liquidation of the Collateral. 
 12. Attorney-in-Fact. Each Grantor hereby appoints the Collateral Agent as the Grantor’s attorney-in-fact for the purposes of
carrying out the provisions of this Security Agreement and taking any action and executing any instrument which the Collateral Agent may deem necessary or advisable to accomplish the purposes hereof, which appointment is irrevocable and coupled with
an interest; provided, that the Collateral Agent shall have and may exercise rights under this power of attorney only upon the occurrence and during the continuance of any Event of Default. Without limiting the generality of the foregoing,
upon the occurrence and during the continuance of any Event of Default, the Collateral Agent shall have the right and power: 
 (a) to ask, demand, collect, sue for, recover, compromise, receive and give acquittance and receipts for moneys due and to become due under or in respect of any of the Collateral; 
 (b) to receive, endorse and collect any drafts or other instruments, documents and chattel paper in connection with clause (a) above;

 (c) to endorse such Grantor’s name on any checks, notes, drafts or any other payment relating to or constituting
proceeds of the Collateral which comes into the Collateral Agent’s possession or the Collateral Agent’s control, and deposit the same to the account of the Collateral Agent, for the benefit of the Secured Parties, on account and for
payment of the Secured Obligations; 
 (d) to file any claims or take any action or institute any proceedings that the
Collateral Agent may deem necessary or desirable for the collection of any of the Collateral or otherwise to enforce the rights of the Collateral Agent, for the benefit of the Secured Parties, with respect to any of the Collateral; and 

(e) to execute, in connection with any sale or other disposition of Collateral provided for herein, any endorsement, assignments, or
other instruments of conveyance or transfer with respect thereto. 
 13. Reinstatement. The granting of a security
interest in the Collateral and the other provisions hereof shall continue to be effective or be reinstated, as the case may be, if at any time any payment of any of the Secured Obligations is rescinded or must otherwise be returned by any Secured
Party or is repaid by any Secured Party in whole or in part in good faith settlement of a pending or threatened avoidance claim, whether upon the insolvency, bankruptcy or reorganization of any Grantor or otherwise, all as though such payment had
not been made. The provisions of this Section 12 shall survive repayment of all of the Secured Obligations and the termination or expiration of this Security Agreement in any manner. 
 14. Certain Waivers by the Grantors. Each Grantor waives to the extent permitted by applicable law (a) any right to require any
Secured Party or any other obligee of the Secured 

 
Obligations to (x) proceed against any Person or entity, including without limitation any Grantor, (y) proceed against or exhaust any Collateral or
other collateral for the Secured Obligations, or (z) pursue any other remedy in its power; (b) any defense arising by reason of any disability or other defense of any other Person, or by reason of the cessation from any cause whatsoever of
the liability of any other Person or entity, (c) any right of subrogation, and (d) any right to enforce any remedy which any Secured Party or any other obligee of the Secured Obligations now has or may hereafter have against any other
Person and any benefit of and any right to participate in any collateral or security whatsoever now or hereafter held by the Collateral Agent for the benefit of the Secured Parties. Each Grantor authorizes the Collateral Agent and the Trustee
without notice (except notice required by applicable law or the Indenture) or demand and without affecting its liability hereunder, under the Indenture or under the other Note Documents from time to time to: (i) take and hold security, other
than the Collateral herein described, for the payment of such Secured Obligations or any part thereof, and exchange, enforce, waive and release the Collateral herein described or any part thereof or any such other security; and (ii) apply such
Collateral or other security and direct the order or manner of sale thereof as the Collateral Agent or the Trustee in its discretion may determine. 
 The Collateral Agent may at any time deliver (without representation, recourse or warranty) the Collateral or any part thereof to a Grantor and the receipt thereof by such Grantor shall be a complete and full acquittance for the Collateral
so delivered, and the Collateral Agent shall thereafter be discharged from any liability or responsibility therefor. 
 15.
Continued Powers. Until the termination of this Security Agreement, the power of sale and other rights, powers and remedies granted to the Collateral Agent for the benefit of the Secured Parties hereunder shall continue to exist and
may, after the occurrence and during the continuance of any Event of Default, be exercised by the Collateral Agent at any time and from time to time irrespective of the fact that any of the Secured Obligations or any part thereof may have become
barred by any statute of limitations or that any part of the liability of any Grantor may have ceased. 
 16. Other
Rights. The rights, powers and remedies given to the Collateral Agent for the benefit of the Secured Parties by this Security Agreement shall be in addition to all rights, powers and remedies given to the Collateral Agent or any Secured
Party under the Indenture or any other Note Document or by virtue of any statute or rule of law. Any forbearance or failure or delay by the Collateral Agent in exercising any right, power or remedy hereunder shall not be deemed to be a waiver of
such right, power or remedy, and any single or partial exercise of any right, power or remedy hereunder shall not preclude the further exercise thereof; and every right, power and remedy of the Secured Parties shall continue in full force and effect
until such right, power or remedy is specifically waived in accordance with the terms of the Indenture. 
 17. Limitation on
Duty in Respect of Collateral. (a) Beyond the exercise of reasonable care in the custody and preservation thereof, neither the Collateral Agent nor the Trustee will have any duty as to any Collateral in its possession or control or in
the possession or control of any sub-agent or bailee or any income therefrom or as to the preservation of rights against prior parties or any other rights pertaining thereto. The Collateral Agent will be deemed to have exercised reasonable care in
the custody and preservation of the Collateral in its possession or control if such Collateral is accorded treatment substantially equal to that which it accords its own property, and will not be liable or responsible for any loss or damage to any

 
Collateral, or for any diminution in the value thereof, by reason of any act or omission of any sub-agent or bailee selected by the Collateral Agent in good
faith or by reason of any act or omission by the Collateral Agent pursuant to instructions from the Collateral Agent, except to the extent that such liability arises from the Collateral Agent’s gross negligence, bad faith or willful misconduct.
The Trustee shall not be responsible for filing any financing or continuation statements or recording any documents or instruments in any public office at any time or times or otherwise perfecting or maintaining the perfection of any security
interest in the Collateral. The Trustee shall not be responsible for the existence, genuineness or value of any of the Collateral or for the validity, perfection, priority or enforceability of the Liens in any of the Collateral, whether impaired by
operation of law or by reason of any action or omission to act on its part hereunder, except to the extent such action or omission constitutes gross negligence, bad faith or willful misconduct on the part of the Trustee, for the validity or
sufficiency of the Collateral or any agreement or assignment contained therein, for the validity of the title of the Company to the Collateral, for insuring the Collateral or for the payment of taxes, charges, assessments or Liens upon the
Collateral or otherwise as to the maintenance of the Collateral. 
 (b) To the extent that applicable law imposes duties on
Collateral Agent to exercise remedies in a commercially reasonable manner, each Grantor acknowledges and agrees that it is not commercially unreasonable for the Collateral Agent (i) to fail to incur expenses reasonably deemed significant by the
Collateral Agent to prepare Collateral for disposition or otherwise to complete raw material or work-in-process into finished goods or other finished products for disposition, (ii) to fail to exercise collection remedies against Grantors or
other Persons obligated on Collateral or to remove liens or encumbrances on or any adverse claims against Collateral, (iii) to exercise collection remedies against Grantors and other Persons obligated on Collateral directly or through the use
of collection agencies and other collection specialists, (iv) to advertise dispositions of Collateral through publications or media of general circulation, whether or not the Collateral is of a specialized nature, (v) to contact other
Persons, whether or not in the same business as the Grantors, for expressions of interest in acquiring all or any portion of the Collateral, (vi) to hire one or more professional auctioneers to assist in the disposition of Collateral, whether
or not the collateral is of a specialized nature, (vii) to dispose of Collateral by utilizing Internet sites that provide for the auction of assets of the types included in the Collateral or that have the reasonable capability of doing so, or
that match buyers and sellers of assets, (viii) to dispose of assets in wholesale rather than retail markets, (ix) to disclaim disposition warranties, including, without limitation, any warranties of title, (x) to purchase insurance
or credit enhancements to insure the Collateral Agent against risks of loss, collection or disposition of Collateral, or to provide to the Collateral Agent a guaranteed return from the collection or disposition of Collateral or (xi) to the
extent deemed appropriate by the Collateral Agent, to obtain the services of brokers, investment bankers, consultants and other professionals to assist the Collateral Agent in the collection or disposition of any of the Collateral. Each Grantor
acknowledges that the purpose of this Section is to provide non-exhaustive indications of what actions or omissions by the Collateral Agent would not be commercially unreasonable in the Collateral Agent’s exercise of remedies against the
Collateral and that other actions or omissions by the Collateral Agent shall not be deemed commercially unreasonable solely on account of not being specifically referred to in this Section. 
 18. Special Provisions Relating to the Collateral Agent 

 The following provisions shall govern the Collateral Agent’s rights, powers, obligations and duties
under this Security Agreement and the other Note Documents, notwithstanding anything herein to the contrary: 
 (a) With
respect to this Security Agreement, the Collateral Agent undertakes to perform such duties, and only such duties, as are specifically set forth in this Security Agreement. No implied covenants or obligations shall be read into this Security
Agreement. 
 (b) The Collateral Agent shall not be personally liable or accountable to any Person, under any circumstances
except for its own grossly negligent action, grossly negligent failure to act or willful misconduct. The Collateral Agent shall take any action permitted to be taken by it hereunder at the direction of the Trustee, and the Collateral Agent shall not
be liable with respect to any action taken or omitted to be taken by it in accordance with the written instructions provided by the Trustee; provided the Collateral Agent shall not be required to take any action hereunder or pursuant to any
written instruction delivered in accordance with the provisions hereof if the Collateral Agent shall have reasonably determined, or shall have been advised in writing by counsel, that such action is contrary to the terms hereof or is otherwise
contrary to law. 
 (c) The Collateral Agent shall incur no liability to anyone in acting upon any signature, written
instrument, or notice reasonably believed by it to be genuine and reasonably believed by it to be signed by the proper party or parties and need not investigate any fact or matter in any such document as long as the Collateral Agent has otherwise
satisfied its obligations under this Security Agreement. 
 (d) The Collateral Agent shall receive as compensation for its
services hereunder such fees as have been separately agreed to between it and the Company on or before the date hereof, and the Trustee shall not be liable for the payment of such fees. 
 (e) The Company and the Grantors, jointly and severally, shall indemnify, protect, save and hold the Collateral Agent, its officers,
directors, shareholders and employees (each an “Indemnified Person”) harmless against any and all loss, liability, obligation, damage, claim, penalty, tax (excluding any taxes on the Collateral Agent on, or measured by, any
compensation received by the Collateral Agent) or expense of any kind or nature whatsoever arising out of or in connection with this Security Agreement and each of the other Note Documents, including the costs and expenses of defending itself
against any claim or liability in connection with the exercise or performance of any of its rights, powers or duties hereunder (each of the foregoing, a “Claim”); provided, however, the Grantors shall not be required
to indemnify, protect, save and hold any Indemnified Person harmless from any Claim (or portion thereof) resulting from gross negligence or willful misconduct on its part. Upon the Collateral Agent becoming aware of the occurrence of an event that
results in any loss, liability or expense to an Indemnified Person, the Collateral Agent shall promptly send written notice thereof to the Grantors. The indemnities contained in this Section 18 shall survive the resignation or
termination of the Collateral Agent and the termination of this Security Agreement. 

 (f) The Collateral Agent shall have no obligation to institute, conduct or defend any
litigation under this Security Agreement or in relation to this Security Agreement, at the request, order or direction of the Trustee or any other Person unless such requesting party shall have first offered the Collateral Agent security or
indemnity satisfactory to the Collateral Agent against any and all costs, expenses (including Attorney Costs) and liabilities that may be incurred herein or thereby and such requesting party so instructs the Collateral Agent. 
 (g) The Collateral Agent may resign as Collateral Agent hereunder upon 90 days’ prior written notice to the Grantors and the Trustee,
such resignation to become effective only upon the appointment of a successor Collateral Agent by the Trustee. The Trustee shall appoint a successor Collateral Agent within ten (10) days prior to the expiration of the 90-day period referred to
above. If no successor Collateral Agent is named as provided herein then the Collateral Agent may petition any court of competent jurisdiction for the appointment of its successor. 
 (h) Prior to the occurrence of a Default, the Company (with the written consent of the Trustee (acting with or without the consent of the
Company) is authorized to remove the Collateral Agent hereunder and appoint a successor. Following the occurrence of any Default, the Trustee acting alone is authorized to remove the Collateral Agent hereunder and appoint a successor. No such
removal in either case shall be effective until a successor Collateral Agent has been appointed and has accepted such appointment. No Grantor shall terminate this Security Agreement without the written consent of the Trustee. 
 19. Anti-Marshaling Provisions. The right is hereby given by each Grantor to the Collateral Agent, for the benefit of the Secured
Parties, to make releases (whether in whole or in part) of all or any part of the Collateral agreeable to the Collateral Agent without notice to, or the consent, approval or agreement of other parties and interests, including junior lienors, which
releases shall not impair in any manner the validity of or priority of the Liens and security interests in the remaining Collateral conferred hereunder, nor release any Grantor from personal liability for the Secured Obligations. Notwithstanding the
existence of any other security interest in the Collateral held by the Collateral Agent, for the benefit of the Secured Parties, the Collateral Agent shall have the right to determine the order in which any or all of the Collateral shall be
subjected to the remedies provided in this Security Agreement. Each Grantor hereby waives any and all right to require the marshaling of assets in connection with the exercise of any of the remedies permitted by applicable law, the Indenture, this
Security Agreement or any other Note Document. 
 20. Entire Agreement. This Security Agreement and each Joinder
Agreement, together with the Indenture and the other Note Documents and the Intercreditor Agreement, constitutes and expresses the entire understanding between the parties hereto with respect to the subject matter hereof, and supersedes all prior
negotiations, agreements and understandings, inducements, commitments or conditions, express or implied, oral or written, except as contained in such documents. The express terms hereof and of the Joinder Agreements control and supersede any course
of performance or usage of the trade inconsistent with any of the terms hereof or thereof. Neither this Security Agreement nor any Joinder Agreement nor any portion or provision hereof or thereof may be changed, altered, modified, supplemented,
discharged, 

 
canceled, terminated, or amended orally or in any manner other than as provided in the Indenture. 
 21. Third Party Reliance. Each Grantor hereby consents and agrees that all issuers of or obligors in respect of any Collateral, and
all securities intermediaries, warehousemen, bailees, public officials and other Persons having any interest in, possession of, control over or right, privilege, duty or discretion in respect of, any Collateral shall be entitled to accept the
provisions hereof and of the Joinder Agreements as conclusive evidence of the right of the Collateral Agent, on behalf of the Secured Parties, to exercise its rights hereunder or thereunder with respect to the Collateral, notwithstanding any other
notice or direction to the contrary heretofore or hereafter given by any Grantor or any other Person to any of such Persons. 
 22.
Binding Agreement; Assignment. This Security Agreement and each Joinder Agreement, and the terms, covenants and conditions hereof and thereof, shall be binding upon and inure to the benefit of the parties hereto, and to their
respective successors and assigns, except that no Grantor shall be permitted to assign this Security Agreement, any Joinder Agreement or any interest herein or therein or, except as expressly permitted herein or in the Indenture, in the Collateral
or any part thereof or interest therein. All references herein to the Collateral Agent and to the Secured Parties (including Holders of Securities) shall include any successor thereof or permitted assignee, and any other obligees from time to time
of the Secured Obligations. 
 23. Release of Liens. 
 (a) If any part of the Collateral is sold, transferred or otherwise disposed of in compliance with the requirements of the Indenture, then
in each such case, such Collateral shall automatically be released from the Liens and security interest granted to the Collateral Agent for the benefit of the Secured Parties under this Security Agreement. Upon any Grantor’s request, the
Collateral Agent shall (upon receipt of a written certification of an officer of the Company, which states that the Collateral Agent has received all documents, if any, required by the Trust Indenture Act (if the Trust Indenture Act is then
applicable to the Indenture) and the Indenture) promptly execute and deliver to such Grantor, at such Grantor’s expense, all UCC termination statements, releases and similar documents that such Grantor shall reasonably request to terminate of
record, or otherwise give appropriate notice of the termination of, any Lien conferred hereunder in connection with the making of such sales, dispositions or other transfers; provided, that the Collateral Agent shall not be required to take
any action or execute or deliver any document if doing so would violate the terms of the Intercreditor Agreement or the Indenture. 
 (b) If all or substantially all of the Collateral is required to be released in accordance with the Indenture with the consent of the Holders, then in each such case, at the request and expense of any Grantor, the Collateral Agent, having
received the consent of the requisite Holders as required under the Indenture, will (upon receipt of a written certification of a Responsible Officer of the Company that the Trustee has received all documents, if any, required by the Trust Indenture
Act (if the Trust Indenture Act is then applicable to the Indenture) and the Indenture) duly release from the security interest created hereby and, with respect to Collateral in the physical possession of the Collateral 

 
Agent, deliver to such Grantor (without recourse and without representation or warranty) such of the Collateral as is then being (or has been) so released
and has not theretofore been released pursuant to this Security Agreement, and execute and deliver to such Grantor, at such Grantor’s expense, all UCC termination statements, releases and similar documents that such Grantor shall reasonably
request to terminate of record, or otherwise give appropriate notice of the termination of, any Lien conferred hereunder in connection with such release of all or substantially all of the Collateral; provided, that the Collateral Agent shall
not be required to take any action or execute or deliver any document if doing so would violate the terms of the Intercreditor Agreement or the Indenture. 
 24. Severability. The provisions of this Security Agreement are independent of and separable from each other. If any provision hereof shall for any reason be held invalid or unenforceable, such
invalidity or unenforceability shall not affect the validity or enforceability of any other provision hereof, but this Security Agreement shall be construed as if such invalid or unenforceable provision had never been contained herein. 

25. Counterparts. This Security Agreement may be executed in any number of counterparts each of which when so executed and
delivered shall be deemed an original, and it shall not be necessary in making proof of this Security Agreement to produce or account for more than one such counterpart executed by the Grantor against whom enforcement is sought. 
 26. Termination. Subject to the provisions of Section 12, this Security Agreement and each Joinder Agreement, and all
obligations of the Grantors hereunder (excluding those obligations and liabilities that expressly survive such termination) shall terminate without delivery of any instrument or performance of any act by any party when the Second Priority Liens have
been released, in whole, in accordance with the terms and conditions of Section 1505 of the Indenture. Upon such termination of this Security Agreement, the Collateral Agent shall, at the request and sole expense of the Grantors,
promptly deliver to the Grantors such termination statements and take such further actions as the Grantors may reasonably request to terminate of record, or otherwise to give appropriate notice of the termination of, any Lien conferred hereunder.

 27. Notices. Any notice required or permitted hereunder shall be given in accordance with Section 106 of
the Indenture. 
 28. Joinder. Each Person who shall at any time execute and deliver to the Collateral Agent a Joinder
Agreement (including each Person required to deliver a Joinder Agreement pursuant to Section 913(b) of the Indenture) shall thereupon irrevocably, absolutely and unconditionally become a party hereto and obligated hereunder as a Grantor and
shall have thereupon pursuant to Section 2 hereof granted a security interest in and collaterally assigned to the Collateral Agent for the benefit of the Secured Parties all Collateral in which it has at its Applicable Date or thereafter
acquires any interest or the power to transfer, and all references in the Indenture, this Security Agreement and the other Note Documents to the Grantors or to the parties to this Security Agreement shall be deemed to include such Person as a
Grantor hereunder. Each Joinder Agreement shall be accompanied by the Supplemental Schedules referred to therein, appropriately completed with information relating to the Grantor executing such Joinder Agreement and its property. Each of the
applicable Schedules attached hereto shall 

 
be deemed amended and supplemented without further action by such information reflected on the Supplemental Schedules attached to each Joinder Agreement.

 29. Governing Law; Waivers. 
 (a) THIS SECURITY AGREEMENT AND EACH JOINDER AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH
STATE; PROVIDED THAT (i) WITH RESPECT TO THOSE INSTANCES IN WHICH THE APPLICABLE CHOICE OF LAWS RULES OF SUCH STATE, INCLUDING SECTION 9-301 OF THE UCC, REQUIRE THAT THE MANNER OF CREATION OF A SECURITY INTEREST IN SPECIFIC COLLATERAL OR THE
MANNER OR EFFECT OF PERFECTION OR NONPERFECTION OR THE RULES GOVERNING PRIORITY OF SECURITY INTERESTS ARE TO BE GOVERNED BY THE LAWS OF ANOTHER JURISDICTION, THEN THE LAWS OF SUCH OTHER JURISDICTION SHALL GOVERN SUCH MATTERS AND (ii) IN THOSE
INSTANCES IN WHICH THE LAWS OF THE JURISDICTION IN WHICH COLLATERAL IS LOCATED GOVERN MATTERS PERTAINING TO THE METHODS AND EFFECT OF REALIZING ON COLLATERAL, SUCH LAWS SHALL BE GIVEN EFFECT WITH RESPECT TO SUCH MATTERS. 
 (b) EACH GRANTOR HEREBY EXPRESSLY AND IRREVOCABLY AGREES AND CONSENTS THAT ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO
THIS SECURITY AGREEMENT OR ANY JOINDER AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREIN OR THEREIN MAY BE INSTITUTED IN ANY STATE OR FEDERAL COURT SITTING IN NEW YORK COUNTY, STATE OF NEW YORK, UNITED STATES OF AMERICA AND, BY THE EXECUTION AND
DELIVERY OF THIS SECURITY AGREEMENT OR A JOINDER AGREEMENT, EXPRESSLY WAIVES ANY OBJECTION THAT IT MAY HAVE NOW OR HEREAFTER TO THE LAYING OF THE VENUE OR TO THE JURISDICTION OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND IRREVOCABLY SUBMITS GENERALLY
AND UNCONDITIONALLY TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUCH SUIT, ACTION OR PROCEEDING. 
 (c) EACH GRANTOR
AGREES THAT SERVICE OF PROCESS MAY BE MADE BY PERSONAL SERVICE OF A COPY OF THE SUMMONS AND COMPLAINT OR OTHER LEGAL PROCESS IN ANY SUCH SUIT, ACTION OR PROCEEDING, OR BY REGISTERED OR CERTIFIED MAIL (POSTAGE PREPAID) TO THE ADDRESS OF SUCH PARTY
PROVIDED IN SECTION 26 OR BY ANY OTHER METHOD OF SERVICE PROVIDED FOR UNDER THE APPLICABLE LAWS IN EFFECT IN THE STATE OF NORTH CAROLINA. 
 (d) NOTHING CONTAINED IN SUBSECTIONS (b) OR (c) HEREOF SHALL PRECLUDE THE COLLATERAL AGENT FROM BRINGING ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS 

 
SECURITY AGREEMENT OR ANY JOINDER AGREEMENT OR THE INDENTURE OR ANY OTHER NOTE DOCUMENT IN THE COURTS OF ANY PLACE WHERE ANY OTHER PARTY OR ANY OF SUCH
PARTY’S PROPERTY OR ASSETS MAY BE FOUND OR LOCATED. TO THE EXTENT PERMITTED BY THE APPLICABLE LAWS OF ANY SUCH JURISDICTION, EACH GRANTOR HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT AND EXPRESSLY WAIVES, IN RESPECT OF ANY
SUCH SUIT, ACTION OR PROCEEDING, THE JURISDICTION OF ANY OTHER COURT OR COURTS WHICH NOW OR HEREAFTER, BY REASON OF ITS PRESENT OR FUTURE DOMICILE, OR OTHERWISE, MAY BE AVAILABLE UNDER APPLICABLE LAW. 
 (e) IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS OR REMEDIES UNDER OR RELATED TO THIS SECURITY AGREEMENT OR ANY JOINDER
AGREEMENT OR ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR THAT MAY IN THE FUTURE BE DELIVERED IN CONNECTION WITH THE FOREGOING, EACH PARTY HEREBY AGREES, TO THE EXTENT PERMITTED BY APPLICABLE LAW, THAT ANY SUCH ACTION OR PROCEEDING
SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY AND HEREBY EXPRESSLY WAIVES, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT SUCH PERSON MAY HAVE TO TRIAL BY JURY IN ANY SUCH ACTION, SUIT OR PROCEEDING. 
 (f) EACH GRANTOR HEREBY EXPRESSLY WAIVES ANY OBJECTION IT MAY HAVE THAT ANY COURT TO WHOSE JURISDICTION IT HAS SUBMITTED PURSUANT TO
THE TERMS HEREOF IS AN INCONVENIENT FORUM. 
 [Signature pages follow] 

 IN WITNESS WHEREOF, the parties hereto have caused this instrument to be made, executed and
delivered by their duly authorized officers as of the day and year first above written. 
  

			
	COMPANY:
	
	SONIC AUTOMOTIVE, INC.
		
	By:	 	/s/ Stephen K. Coss
	Name:	 	Stephen K. Coss, Senior VP,
	Title:	 	General Counsel, and Secretary

  

			
	OTHER GRANTORS:
	
	 ARNGAR, INC.
 AUTOBAHN, INC.

 AVALON FORD, INC.
 CORNERSTONE ACCEPTANCE CORPORATION
 FAA AUTO FACTORY, INC.
 FAA BEVERLY HILLS, INC.
 FAA CAPITOL F, INC.
 FAA CAPITOL N, INC.
 FAA CONCORD H, INC.
 FAA CONCORD T, INC.
 FAA DUBLIN N, INC.
 FAA DUBLIN VWD, INC.
 FAA HOLDING CORP.
 FAA LAS VEGAS H, INC.
 FAA POWAY G, INC.
 FAA POWAY H, INC.
 FAA POWAY T, INC.
 FAA SAN BRUNO, INC.
 FAA SANTA MONICA V, INC.
 FAA SERRAMONTE H, INC.
 FAA SERRAMONTE L, INC.
 FAA SERRAMONTE, INC.
 FAA STEVENS CREEK, INC.
 FAA TORRANCE CPJ, INC.
 FIRSTAMERICA AUTOMOTIVE, INC.
 FORT MILL FORD, INC.
 FORT MYERS COLLISION CENTER,
LLC
 FRANCISCAN MOTORS, INC.
 FRONTIER
OLDSMOBILE-CADILLAC, INC.
 KRAMER MOTORS INCORPORATED

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

 Signature Page to Security Agreement 

			
	 L DEALERSHIP GROUP, INC.
 MARCUS DAVID CORPORATION
 MASSEY CADILLAC, INC.
 MOUNTAIN STATES MOTORS CO., INC.
 ONTARIO L, LLC
 ROYAL MOTOR COMPANY, INC.
 SAI AL HC1, INC.
 SAI AL HC2, INC.
 SAI ANN ARBOR IMPORTS, LLC (as successor by merger with Sonic-Ann Arbor Imports, Inc.) 
 SAI ATLANTA B, LLC (as successor by merger with Sonic - Global Imports, L.P.) 
 SAI BROKEN ARROW C, LLC (f/k/a and converted from Speedway Chevrolet, Inc.) 
 SAI CHARLOTTE M, LLC
 SAI COLUMBUS MOTORS, LLC (f/k/a and converted from Sonic
Automotive-1400 Automall Drive, Columbus, Inc.) 
 SAI COLUMBUS VWK, LLC (f/k/a and converted from
Sonic Automotive-1455 Automall Drive, Columbus, Inc.) 
 SAI FL HC2, INC.
 SAI FL HC3, INC.
 SAI FL HC4, INC.
 SAI FL HC6, INC.
 SAI FL HC7, INC.
 SAI FORT MYERS B, LLC (f/k/a and converted from Sonic - FM, Inc.)
 SAI
FORT MYERS H, LLC (f/k/a and converted from Sonic - Freeland, Inc.)
 SAI FORT MYERS M, LLC (f/k/a Sonic -
FM Automotive, LLC) 
 SAI FORT MYERS VW, LLC (f/k/a and converted from Sonic - FM VW, Inc.) 

 SAI IRONDALE IMPORTS, LLC (f/k/a and converted from Sonic – Williams Imports, Inc.) 

SAI LONG BEACH B, INC.
 SAI MD HC1, INC.
 SAI MONROVIA B, INC.
 SAI MONTGOMERY B, LLC (f/k/a and converted from
Sonic Montgomery B, Inc.) 
 SAI MONTGOMERY BCH, LLC (f/k/a and converted from Cobb Pontiac-Cadillac,
Inc.) 
 SAI MONTGOMERY CH, LLC (f/k/a and converted from Capitol Chevrolet and Imports,
Inc.)
 SAI NASHVILLE CSH, LLC (f/k/a Sonic-Crest Cadillac, LLC) 
 SAI NASHVILLE H, LLC (f/k/a Sonic-Crest H, LLC)

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

 Signature Page to Security Agreement 

			
	 SAI NASHVILLE M, LLC (f/k/a Sonic Nashville M, LLC)
 SAI NASHVILLE MOTORS, LLC
 SAI OK HC1, INC., an Oklahoma corporation
 SAI OKLAHOMA CITY C, LLC (f/k/a and
converted from Sonic – West Reno Chevrolet, Inc.)
 SAI OKLAHOMA CITY H, LLC (f/k/a and converted from
Sonic – Bethany H, Inc.)
 SAI ORLANDO CS, LLC (f/k/a and converted from Sonic – North Cadillac,
Inc.)
 SAI RIVERSIDE C, LLC (f/k/a and converted from Sonic – Riverside, Inc.)
 SAI ROCKVILLE IMPORTS, LLC (as successor by merger with Sonic-Rockville Imports, Inc.)
 SAI TN HC1, LLC
 SAI TN HC2, LLC
 SAI TN HC3, LLC
 SAI TULSA
N, LLC (f/k/a and converted from Riverside Nissan, Inc.)
 SANTA CLARA IMPORTED CARS, INC.
 SONIC – 2185 CHAPMAN RD., CHATTANOOGA, LLC
 SONIC – CALABASAS V, INC.
 SONIC – CARSON F, INC.
 SONIC – COAST CADILLAC, INC.
 SONIC – DENVER T, INC.
 SONIC – DOWNEY CADILLAC, INC.
 SONIC – ENGLEWOOD M, INC.
 SONIC – FORT MILL DODGE, INC.
 SONIC – HARBOR CITY H, INC.
 SONIC - LAS VEGAS C EAST, LLC
 SONIC - LAS VEGAS C WEST, LLC
 SONIC - LLOYD NISSAN, INC.
 SONIC - LLOYD PONTIAC - CADILLAC, INC.
 SONIC – LONE TREE CADILLAC, INC.
 SONIC – LS, LLC
 SONIC – MANHATTAN FAIRFAX, INC.
 SONIC – MASSEY CHEVROLET,
INC.
 SONIC – MASSEY PONTIAC BUICK GMC, INC.
 SONIC – NEWSOME CHEVROLET WORLD, INC.
 SONIC - NEWSOME OF FLORENCE, INC.
 SONIC - NORTH CHARLESTON DODGE, INC.
 SONIC - NORTH CHARLESTON, INC.
 SONIC – SANFORD CADILLAC, INC.
 SONIC – SHOTTENKIRK, INC.
 SONIC – STEVENS CREEK B, INC. 

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

 Signature Page to Security Agreement 

			
	 SONIC - WILLIAMS CADILLAC, INC.
 SONIC AGENCY, INC.
 SONIC AUTOMOTIVE - 1720 MASON AVE., DB, INC.
 SONIC AUTOMOTIVE - 1720
MASON AVE., DB, LLC
 SONIC AUTOMOTIVE - 6008 N. DALE MABRY, FL, INC.
 SONIC AUTOMOTIVE - 9103 E. INDEPENDENCE, NC, LLC
 SONIC AUTOMOTIVE 2752 LAURENS RD., GREENVILLE, INC.
 SONIC AUTOMOTIVE 5260 PEACHTREE INDUSTRIAL BLVD., LLC
 SONIC AUTOMOTIVE F&I, LLC
 SONIC AUTOMOTIVE OF CHATTANOOGA, LLC
 SONIC AUTOMOTIVE OF NASHVILLE, LLC
 SONIC AUTOMOTIVE OF NEVADA, INC. (including as successor by merger with Sonic Automotive of Tennessee, Inc.)

 SONIC AUTOMOTIVE SUPPORT, LLC
 SONIC AUTOMOTIVE WEST, LLC
 SONIC AUTOMOTIVE-3700 WEST BROAD STREET, COLUMBUS, INC.
 SONIC AUTOMOTIVE-4000 WEST BROAD STREET, COLUMBUS, INC.
 SONIC CALABASAS M, INC.
 SONIC DEVELOPMENT, LLC
 SONIC DIVISIONAL OPERATIONS, LLC
 SONIC FREMONT, INC.
 SONIC OF TEXAS, INC.
 SONIC RESOURCES, INC.
 SONIC SANTA MONICA M, INC.
 SONIC SANTA MONICA S, INC.
 SONIC TYSONS CORNER H, INC.
 SONIC TYSONS CORNER INFINITI, INC.
 SONIC WALNUT CREEK M, INC.
 SONIC WILSHIRE CADILLAC, INC.
 SONIC-BUENA PARK H, INC.
 SONIC-CALABASAS A, INC.
 SONIC-CAPITOL CADILLAC, INC.
 SONIC-CAPITOL IMPORTS, INC.
 SONIC-CARSON LM, INC.
 SONIC-PLYMOUTH CADILLAC, INC.
 SONIC-SATURN OF SILICON VALLEY, INC.
 SONIC-SERRAMONTE I, INC.
 SONIC-VOLVO LV, LLC (as successor by merger with Sonic Automotive Servicing Company, LLC)
 SONIC-WEST COVINA T, INC. 

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

 Signature Page to Security Agreement 

  

			
	 SRE ALABAMA - 2, LLC
 SRE ALABAMA- 5, LLC
 SRE CALIFORNIA - 1, LLC
 SRE CALIFORNIA - 2, LLC
 SRE CALIFORNIA - 4, LLC
 SRE COLORADO - 1, LLC
 SRE FLORIDA- 1, LLC
 SRE FLORIDA - 2, LLC
 SRE HOLDING, LLC
 SRE NORTH CAROLINA - 2, LLC
 SRE OKLAHOMA-1, LLC
 SRE OKLAHOMA-2, LLC
 SRE OKLAHOMA-5, LLC
 SRE SOUTH CAROLINA-3, LLC
 SRE SOUTH CAROLINA - 4, LLC
 SRE TENNESSEE-4, LLC
 SRE VIRGINIA – 1, LLC
 SREALESTATE ARIZONA - 2, LLC
 SREALESTATE ARIZONA - 3, LLC
 STEVENS CREEK CADILLAC, INC.
 TOWN AND COUNTRY FORD, INCORPORATED
 VILLAGE IMPORTED CARS, INC.
 WINDWARD, INC.
 Z MANAGEMENT, INC.

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

  

					
	 SAI CLEARWATER T, LLC (f/k/a and converted from Sonic Automotive-Clearwater, Inc.)

		
	 By:
	 	 SAI FL HC2, INC.,
 as Sole Member

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

  

					
	 SAI COLUMBUS T, LLC (f/k/a and converted from Sonic Automotive-1500 Automall Drive, Columbus,
Inc.)

		
	By:	 	 SONIC AUTOMOTIVE, INC.,
 as Sole
Member

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

 Signature Page to Security Agreement 

					
	 SAI IRONDALE L, LLC (f/k/a Sonic – Williams Motors, LLC)

		
	 By:
	 	 SAI AL HC2, INC.,
 as Sole
Member

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

  

					
	 SAI OKLAHOMA CITY T, LLC (f/k/a and converted from Wrangler Investments, Inc.)

	
	SAI TULSA T, LLC (f/k/a and converted from Sonic – Oklahoma T, Inc.)
		
	 By:
	 	 SAI OK HC1, INC.,
 as Sole
Member

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

  

					
	SAI ROCKVILLE L, LLC (as successor by merger with Sonic-Rockville Motors, Inc.)
		
	 By:
	 	 SAI MD HC1, INC.,
 as Sole
Member

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

  

					
	SAI GEORGIA, LLC (f/k/a and converted from Sonic Automotive of Georgia, Inc.)
		
	 By:
	 	 SONIC AUTOMOTIVE OF NEVADA, INC.,
 as
Sole Member

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

 Signature Page to Security Agreement 

							
	 SAI GA HC1, LP
 SONIC PEACHTREE INDUSTRIAL BLVD., L.P.
 SONIC – STONE MOUNTAIN T, L.P.

	By:	 	SAI GEORGIA, LLC, as Sole General Partner
			
		 	 By:
	 	 SONIC AUTOMOTIVE OF NEVADA, INC.,
 as Sole Member

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

  

					
	 PHILPOTT MOTORS, LTD.
 SONIC ADVANTAGE PA, L.P.
 SONIC AUTOMOTIVE OF TEXAS, L.P.
 SONIC AUTOMOTIVE – 3401 N. MAIN, TX, L.P.
 SONIC AUTOMOTIVE – 4701 I-10 EAST, TX, L.P.
 SONIC – CADILLAC D, L.P.
 SONIC – CAMP FORD, L.P.
 SONIC – CARROLLTON V, L.P.
 SONIC-CLEAR LAKE VOLKSWAGEN, L.P.
 SONIC – FORT WORTH T, L.P.
 SONIC – FRANK PARRA AUTOPLEX, L.P.
 SONIC HOUSTON JLR, L.P.
 SONIC HOUSTON LR, L.P.
 SONIC – HOUSTON V, L.P.
 SONIC-JERSEY VILLAGE VOLKSWAGEN, L.P.
 SONIC – LUTE RILEY, L.P.
 SONIC – MESQUITE HYUNDAI, L.P.
 SONIC MOMENTUM B, L.P.
 SONIC MOMENTUM JVP, L.P.
 SONIC MOMENTUM VWA, L.P.
 SONIC – READING, L.P.
 SONIC – RICHARDSON F, L.P.
 SONIC – UNIVERSITY PARK A, L.P.
 SRE TEXAS – 1, L.P.
 SRE TEXAS – 2, L.P.
 SRE TEXAS – 3, L.P.
 SRE TEXAS – 4, L.P.
 SRE TEXAS – 5, L.P.
 SRE TEXAS – 6, L.P.
 SRE TEXAS – 7, L.P.
 SRE TEXAS – 8, L.P.

		
	 By:
	 	 SONIC OF TEXAS, INC.,
 as Sole General
Partner

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

 Signature Page to Security Agreement 

					
	SONIC – LS CHEVROLET, L.P.
		
	 By:
	 	 SONIC – LS, LLC,
 as Sole General
Partner

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

 Signature Page to Security Agreement 

			
	COLLATERAL AGENT:
	
	U.S. BANK NATIONAL ASSOCIATION, as Collateral Agent
		
	By:	 	/s/ Richard Prokosch
	Name:	 	Richard Prokosch
	Title:	 	Vice President

 [Security Agreement] 

 EXHIBIT A 
 “Permitted Real Estate Indebtedness Collateral” means the applicable real property (the “Premises”) used by a Subsidiary of the Company for the operation of a vehicle dealership or a
business ancillary thereto, together with real property rights, improvements, fixtures (other than trade fixtures), insurance payments, leases and rents related thereto and proceeds thereof, including, but not limited to: 
 (a) all buildings, structures, improvements, parking areas, landscaping, fixtures (other than “trade fixtures”) now or hereafter
erected on or attached to the Premises; including but without being limited to all of the following to the extent affixed to the Premises: all heating, air conditioning and incinerating apparatus, all boilers, piping and plumbing fixtures, water
heaters, cooling, ventilating and sprinkling systems, fire extinguishing apparatus, gas and electric fixtures, carpeting, floor coverings, underpadding, partitions, built-in mirrors, screens, storm sash, awnings, and shrubbery and plants, all of
which property mentioned in this clause (a) shall be deemed part of the realty and not severable wholly or in part without material injury to the freehold of the Premises (all of the foregoing together with replacements and additions thereto
are refereed to herein as “Improvements”); 
 (b) all contracts, contract rights (including without
limitation the right to payment thereunder), agreements and documents of any nature relating to the design, construction, operation and/or maintenance of the Improvements including, without limitations, all guaranties and warranties related thereto,
and all work product created pursuant to any of the foregoing; 
 (c) all compensation, awards, damages, rights of action and
proceeds, including interest thereon and/or the proceeds of any policies of insurance therefor, arising out of or relating to (i) a taking or damaging of the Premises or Improvements thereon by reason of any public or private improvement,
condemnation proceeding (including change of grade), sale or transfer in lieu of condemnation, or fire, earthquake or other casualty, or (ii) any injury to or decrease in the value of the Premises or the Improvements for any reason whatsoever;

 (d) return premiums or other payments upon any insurance any time provided with respect to the Premises and Improvements
for the benefit of or naming the fee mortgagee, and refunds or rebates of real-property taxes or assessments on the Premises; 
 (e) all written and oral leases and rental agreements (including extensions, renewals and subleases thereof, all of the foregoing being referred to collectively herein as the “Leases”) now or hereafter entered into with
respect to the Premises, and including, without limitation, all rents, issues, income, profits and other revenues and income therefrom and from the renting, leasing or bailment of Improvements (and all accounts into which the foregoing are
deposited), all lease guaranties, and all rights and claims of any kind that a Subsidiary may have against any tenant under the Leases or in connection with the termination or rejection of the applicable Leases in a bankruptcy or insolvency
proceeding; 

 (f) all books, records, surveys, reports and other documents related to the Premises, the
Improvements, the applicable Leases, or other items of collateral described herein; and 
 (g) all additions, accessions,
replacements, substitutions and proceeds of the collateral described herein, including but not limited to lease and real estate proceeds and other amounts relating to the use, disposition, or sale of the collateral described herein which proceeds or
other amounts are characterized as general intangibles. 

 Schedule 7(f) 
 GRANTOR INFORMATION 
  

					
	I.	  	II.	  	III.
	 Name
	  	 Jurisdiction of Formation/Form of
Equity/I.D.
Number
	  	 Address of Chief Executive Office

			
	 1.      Sonic Automotive, Inc.
	  	 Delaware
 Corporation
 2714319
	  	 The chief executive office for all entities is 6415 Idlewild Road, Suite 109
 Charlotte, NC

			
	 2.      Arngar, Inc.
	  	 North Carolina
 Corporation
 0005612
	  	
			
	 3.      Autobahn, Inc.
	  	 California
 Corporation
 C1548941
	  	
			
	 4.      Avalon Ford, Inc.
	  	 Delaware
 Corporation
 0896102
	  	
			
	 5.      Cornerstone Acceptance Corporation
	  	 Florida
 Corporation
 593532504
	  	
			
	 6.      FAA Auto Factory, Inc.
	  	 California
 Corporation
 C2058910
	  	
			
	 7.      FAA Beverly Hills, Inc.
	  	 California
 Corporation
 C2069519
	  	
			
	 8.      FAA Capitol F, Inc.
	  	 California
 Corporation
 C2207446
	  	
			
	 9.      FAA Capitol N, Inc.
	  	 California
 Corporation
 C2054429
	  	
			
	 10.    FAA Concord H, Inc.
	  	 California
 Corporation
 C2004304
	  	

					
	I.	  	II.	  	III.
	 Name
	  	 Jurisdiction of Formation/Form of
Equity/I.D.
Number
	  	 Address of Chief Executive Office

			
	 11.    FAA Concord T, Inc.
	  	 California
 Corporation
 C0613543
	  	
			
	 12.    FAA Dublin N, Inc.
	  	 California
 Corporation
 C2007600
	  	
			
	 13.    FAA Dublin VWD, Inc.
	  	 California
 Corporation
 C2007571
	  	
			
	 14.    FAA Holding Corp.
	  	 California
 Corporation
 C2174202
	  	
			
	 15.    FAA Las Vegas H, Inc.
	  	 Nevada
 Corporation
 C13186-1999
	  	
			
	 16.    FAA Poway G, Inc.
	  	 California
 Corporation
 C2069464
	  	
			
	 17.    FAA Poway H, Inc.
	  	 California
 Corporation
 C2006230
	  	
			
	 18.    FAA Poway T, Inc.
	  	 California
 Corporation
 C2006232
	  	
			
	 19.    FAA San Bruno, Inc.
	  	 California
 Corporation
 C2004303
	  	
			
	 20.    FAA Santa Monica V, Inc.
	  	 California
 Corporation
 C2165877
	  	
			
	 21.    FAA Serramonte, Inc.
	  	 California
 Corporation
 C2004221
	  	
			
	 22.    FAA Serramonte H, Inc.
	  	 California
 Corporation
 C2069465
	  	

					
	I.	  	II.	  	III.
	 Name
	  	 Jurisdiction of Formation/Form of
Equity/I.D.
Number
	  	 Address of Chief Executive Office

			
	 23.    FAA Serramonte L, Inc.
	  	 California
 Corporation
 C2004222
	  	
			
	 24.    FAA Stevens Creek, Inc.
	  	 California
 Corporation
 C2004216
	  	
			
	 25.    FAA Torrance CPJ, Inc.
	  	 California
 Corporation
 C2165823
	  	
			
	 26.    FirstAmerica Automotive, Inc.
	  	 Delaware
 Corporation
 2761294
	  	
			
	 27.    Fort Mill Ford, Inc.
	  	 South Carolina
 Corporation
	  	
			
	 28.    Fort Myers Collision Center, LLC
	  	 Florida
 Limited Liability Company
 593659948
	  	
			
	 29.    Franciscan Motors, Inc.
	  	 California
 Corporation
 C1532758
	  	
			
	 30.    Frontier Oldsmobile-Cadillac, Inc.
	  	 North Carolina
 Corporation
 0233650
	  	
			
	 31.    Kramer Motors Incorporated
	  	 California
 Corporation
 C0392185
	  	
			
	 32.    L Dealership Group, Inc.
	  	 Texas
 Corporation
 151278900
	  	
			
	 33.    Marcus David Corporation
	  	 North Carolina
 Corporation
 0272880
	  	
			
	 34.    Massey Cadillac, Inc.
	  	 Tennessee
 Corporation
 0230052
	  	

					
	I.	  	II.	  	III.
	 Name
	  	 Jurisdiction of Formation/Form of
Equity/I.D.
Number
	  	 Address of Chief Executive Office

			
	 35.    Mountain States Motors Co., Inc.
	  	 Colorado
 Corporation
 19911043766
	  	
			
	 36.    Ontario L, LLC
	  	 California
 Limited Liability Company
 200330110050
	  	
			
	 37.    Philpott Motors, Ltd.
	  	 Texas
 Limited Partnership
 12223010
	  	
			
	 38.    Royal Motor Company, Inc.
	  	 Alabama
 Corporation
 D/C 134-171
	  	
			
	 39.    SAI AL HC1, Inc.
	  	 Alabama
 Corporation
 D/C 206-272
	  	
			
	 40.    SAI AL HC2, Inc.
	  	 Alabama
 Corporation
 D/C 199-217
	  	
			
	 41.    SAI Ann Arbor Imports, LLC
	  	 Michigan
 Limited Liability
 Company
 E15303
	  	
			
	 42.    SAI Atlanta B, LLC
	  	 Georgia
 Limited Liability Company
 08083814
	  	
			
	 43.    SAI Broken Arrow C, LLC
	  	 Oklahoma Limited Liability Company
 3512215667
	  	
			
	 44.    SAI Charlotte M, LLC
	  	 North Carolina
 Limited Liability Company

0433486
	  	
			
	 45.    SAI Clearwater T, LLC
	  	 Florida Limited Liability Company
 L08000116713
	  	

					
	I.	  	II.	  	III.
	 Name
	  	 Jurisdiction of Formation/Form of
Equity/I.D.
Number
	  	 Address of Chief Executive Office

			
	 46.    SAI Columbus Motors, LLC
	  	 Ohio Limited Liability Company
 CP13127
	  	
			
	 47.    SAI Columbus T, LLC
	  	 Ohio Limited Liability Company
 CP13128
	  	
			
	 48.    SAI Columbus VWK, LLC
	  	 Ohio Limited Liability Company
 CP13130
	  	
			
	 49.    SAI FL HC2, Inc.
	  	 Florida
 Corporation
 P98000016038
	  	
			
	 50.    SAI FL HC3, Inc.
	  	 Florida
 Corporation
 P98000064012
	  	
			
	 51.    SAI FL HC4, Inc.
	  	 Florida
 Corporation
 P98000064009
	  	
			
	 52.    SAI FL HC6, Inc.
	  	 Florida
 Corporation
 593552436
	  	
			
	 53.    SAI FL HC7, Inc.
	  	 Florida
 Corporation
 592214873
	  	
			
	 54.    SAI Fort Myers B, LLC
	  	 Florida Limited Liability Company
 L08000116712
	  	
			
	 55.    SAI Fort Myers H, LLC
	  	 Florida Limited Liability Company
 L08000116710
	  	
			
	 56.    SAI Fort Myers M, LLC
	  	 Florida
 Limited Liability Company
 593535971
	  	
			
	 57.    SAI Fort Myers VW, LLC
	  	 Florida Limited Liability Company
 L08000116709
	  	

					
	I.	  	II.	  	III.
	 Name
	  	 Jurisdiction of Formation/Form of
Equity/I.D.
Number
	  	 Address of Chief Executive Office

			
	 58.    SAI GA HC1, LP
	  	 Georgia
 Limited Partnership
 0224680
	  	
			
	 59.    SAI Georgia, LLC
	  	 Georgia Limited Liability Company
 08094603
	  	
			
	 60.    SAI Irondale Imports, LLC
	  	 Alabama Limited Liability Company
 428-744
	  	
			
	 61.    SAI Irondale L, LLC
	  	 Alabama
 Corporation
 DLL 662-073
	  	
			
	 62.    SAI Long Beach B, Inc.
	  	California Corporation C2998588	  	
			
	 63.    SAI MD HC1, Inc.
	  	 Maryland
 Corporation
 D05310776
	  	
			
	 64.    SAI Monrovia B, Inc.
	  	California Corporation CA # C2979304	  	
			
	 65.    SAI Montgomery B, LLC
	  	 Alabama Limited Liability Company
 428-746
	  	
			
	 66.    SAI Montgomery BCH, LLC
	  	 Alabama Limited Liability Company
 428-745
	  	
			
	 67.    SAI Montgomery CH, LLC
	  	 Alabama Limited Liability Company
 428-747
	  	
			
	 68.    SAI Nashville CSH, LLC
	  	 Tennessee
 Limited Liability Company
 0336183
	  	
			
	 69.    SAI Nashville H, LLC
	  	 Tennessee
 Limited Liability Company
 0336180
	  	
			
	 70.    SAI Nashville M, LLC
	  	 Tennessee
 Limited Liability Company
 0336182
	  	
			
	 71.    SAI Nashville Motors, LLC
	  	Tennessee Limited Liability Company 0566970	  	

					
	I.	  	II.	  	III.
	 Name
	  	 Jurisdiction of Formation/Form of
Equity/I.D.
Number
	  	 Address of Chief Executive Office

			
	 72.    SAI OK HC1, Inc.
	  	 Oklahoma
 Corporation
 1900632183
	  	
			
	 73.    SAI Oklahoma City C, LLC
	  	 Oklahoma Limited Liability Company
 3512215668
	  	
			
	 74.    SAI Oklahoma City H, LLC
	  	 Oklahoma Limited Liability Company
 3512215666
	  	
			
	 75.    SAI Oklahoma City T, LLC
	  	 Oklahoma Limited Liability Company
 3512215664
	  	
			
	 76.    SAI Orlando CS, LLC
	  	 Florida Limited Liability Company
 L08000116711
	  	
			
	 77.    SAI Riverside C, LLC
	  	 Oklahoma Limited Liability Company
 3512215685
	  	
			
	 78.    SAI Rockville Imports, LLC
	  	 Maryland
 Limited Liability
 Company
 W12791083
	  	
			
	 79.    SAI Rockville L, LLC
	  	 Maryland
 Limited Liability Company
 W12796074
	  	
			
	 80.    SAI TN HC1, Inc.
	  	 Tennessee
 Corporation
 0336184
	  	
			
	 81.    SAI TN HC2, LLC
	  	Tennessee Limited Liability Company 0336185	  	
			
	 82.    SAI TN HC3, Inc.
	  	 Tennessee
 Corporation
 0336181
	  	
			
	 83.    SAI Tulsa N, LLC
	  	 Oklahoma Limited Liability Company
 3512215684
	  	

					
	I.	  	II.	  	III.
	 Name
	  	 Jurisdiction of Formation/Form of
Equity/I.D.
Number
	  	 Address of Chief Executive Office

			
	 84.    SAI Tulsa T, LLC
	  	 Oklahoma Limited Liability Company
 3512215671
	  	
			
	 85.    Santa Clara Imported Cars, Inc.
	  	 California
 Corporation
 C0587296
	  	
			
	 86.    Sonic – 2185 Chapman Rd., Chattanooga, LLC
	  	 Tennessee
 Limited Liability Company
 0366281
	  	
			
	 87.    Sonic Advantage PA, L.P
	  	 Texas
 Limited Partnership
 800235623
	  	
			
	 88.    Sonic Agency, Inc.
	  	 Michigan
 Corporation
 35010C
	  	
			
	 89.    Sonic Automotive - 1720 Mason Ave., DB, Inc.
	  	 Florida
 Corporation
 593523303
	  	
			
	 90.    Sonic Automotive - 1720 Mason Ave., DB, LLC
	  	 Florida
 Limited Liability Company
 571072509
	  	
			
	 91.    Sonic Automotive 2752 Laurens Rd., Greenville, Inc.
	  	 South Carolina
 Corporation
	  	
			
	 92.    Sonic Automotive - 3401 N. Main, TX, L.P.
	  	 Texas
 Limited Partnership
 11376510
	  	
			
	 93.    Sonic Automotive-3700 West Broad Street, Columbus, Inc.
	  	 Ohio
 Corporation
 CP13131
	  	
			
	 94.    Sonic Automotive-4000 West Broad Street, Columbus, Inc.
	  	 Ohio
 Corporation
 CP13126
	  	
			
	 95.    Sonic Automotive - 4701 I-10 East, TX, L.P.
	  	 Texas
 Limited Partnership
 11345010
	  	

					
	I.	  	II.	  	III.
	 Name
	  	 Jurisdiction of Formation/Form of
Equity/I.D.
Number
	  	 Address of Chief Executive Office

			
	 96.    Sonic Automotive 5260 Peachtree Industrial Blvd., LLC
	  	 Georgia
 Limited Liability Company
 K734665
	  	
			
	 97.    Sonic Automotive - 6008 N. Dale Mabry, FL, Inc.
	  	 Florida
 Corporation
 593535965
	  	
			
	 98.    Sonic Automotive - 9103 E. Independence, NC, LLC
	  	 North Carolina
 Limited Liability Company

0470751
	  	
			
	 99.    Sonic Automotive F&I, LLC
	  	 Nevada
 Limited Liability Company
 LLC8620-1999
	  	
			
	 100. Sonic Automotive of Chattanooga, LLC
	  	 Tennessee
 Limited Liability Company
 0336188
	  	
			
	 101. Sonic Automotive of Nashville, LLC
	  	 Tennessee
 Limited Liability Company
 0336186
	  	
			
	 102. Sonic Automotive of Nevada, Inc.
	  	 Nevada
 Corporation
 C18014-1997
	  	
			
	 103. Sonic Automotive of Texas, L.P.
	  	 Texas
 Limited Partnership
 11324210
	  	
			
	 104. Sonic Automotive Support, LLC
	  	 Nevada
 Limited Liability Company
 LLC19412-2003
	  	
			
	 105. Sonic Automotive West, LLC
	  	 Nevada
 Limited Liability Company
 LLC9139-1999
	  	
			
	 106. Sonic–Buena Park H, Inc.
	  	 California
 Corporation
 C2356456
	  	
			
	 107. Sonic – Cadillac D, L.P.
	  	 Texas
 Limited Partnership
 800061917
	  	

					
	I.	  	II.	  	III.
	 Name
	  	 Jurisdiction of Formation/Form of
Equity/I.D.
Number
	  	 Address of Chief Executive Office

			
	 108. Sonic–Calabasas A, Inc.
	  	 California
 Corporation
 C2413759
	  	
			
	 109. Sonic Calabasas M, Inc.
	  	California Corporation C2975101	  	
			
	 110. Sonic – Calabasas V, Inc.
	  	 California
 Corporation
 C2501983
	  	
			
	 111. Sonic – Camp Ford, L.P.
	  	 Texas
 Limited Partnership
 12312610
	  	
			
	 112. Sonic–Capitol Cadillac, Inc.
	  	 Michigan
 Corporation
 26619C
	  	
			
	 113. Sonic–Capitol Imports, Inc.
	  	 South Carolina
 Corporation
	  	
			
	 114. Sonic – Carrollton V, L.P.
	  	 Texas
 Limited Partnership
 13894610
	  	
			
	 115. Sonic – Carson F, Inc.
	  	 California
 Corporation
 C2375909
	  	
			
	 116. Sonic – Carson LM, Inc.
	  	 California
 Corporation
 C2375100
	  	
			
	 117. Sonic–Clear Lake Volkswagen, L.P.
	  	 Texas
 Limited Partnership
 800207889
	  	
			
	 118. Sonic – Coast Cadillac, Inc.
	  	 California
 Corporation
 C2124569
	  	
			
	 119. Sonic – Denver T, Inc.
	  	 Colorado
 Corporation
 20021350687
	  	
			
	 120. Sonic Development, LLC
	  	 North Carolina Limited Liability Company
 0483658
	  	

					
	I.	  	II.	  	III.
	 Name
	  	 Jurisdiction of Formation/Form of
Equity/I.D.
Number
	  	 Address of Chief Executive Office

			
	 121. Sonic Divisional Operations, LLC
	  	 Nevada
 Limited Liability Company
 LLC26157-2004
	  	
			
	 122. Sonic – Downey Cadillac, Inc.
	  	 California
 Corporation
 C2375896
	  	
			
	 123. Sonic – Englewood M, Inc.
	  	 Colorado
 Corporation
 20021021611
	  	
			
	 124. Sonic – Fort Mill Dodge, Inc.
	  	 South Carolina
 Corporation
	  	
			
	 125. Sonic – Fort Worth T, L.P.
	  	 Texas
 Limited Partnership
 13920710
	  	
			
	 126. Sonic – Frank Parra Autoplex, L.P.
	  	 Texas
 Limited Partnership
 800079059
	  	
			
	 127. Sonic Fremont, Inc.
	  	California Corporation C2935225	  	
			
	 128. Sonic – Harbor City H, Inc.
	  	 California
 Corporation
 C2356454
	  	
			
	 129. Sonic Houston JLR, LP
	  	Texas Limited Partnership 800735509	  	
			
	 130. Sonic Houston LR, L.P.
	  	 Texas
 Limited Partnership
 800236309
	  	
			
	 131. Sonic – Houston V, LP
	  	 Texas
 Limited Partnership
 15286810
	  	
			
	 132. Sonic–Jersey Village Volkswagen, L.P.
	  	 Texas
 Limited Partnership
 800207902
	  	
			
	 133. Sonic - Las Vegas C East, LLC
	  	 Nevada
 Limited Liability Company
 LLC7435-2000
	  	

					
	I.	  	II.	  	III.
	 Name
	  	 Jurisdiction of Formation/Form of
Equity/I.D.
Number
	  	 Address of Chief Executive Office

			
	 134. Sonic - Las Vegas C West, LLC
	  	 Nevada
 Limited Liability Company
 LLC7434-2000
	  	
			
	 135. Sonic - Lloyd Nissan, Inc.
	  	 Florida
 Corporation
 593560057
	  	
			
	 136. Sonic - Lloyd Pontiac - Cadillac, Inc.
	  	 Florida
 Corporation
 593560058
	  	
			
	 137. Sonic – Lone Tree Cadillac, Inc.
	  	 Colorado
 Corporation
 20021021609
	  	
			
	 138. Sonic – LS Chevrolet, L.P.
	  	 Texas
 Limited Partnership
 11958210
	  	
			
	 139. Sonic – LS, LLC
	  	 Delaware
 Limited Liability Company
 3440418
	  	
			
	 140. Sonic - Lute Riley, L.P.
	  	 Texas
 Limited Partnership
 11869810
	  	
			
	 141. Sonic - Manhattan Fairfax, Inc.
	  	 Virginia
 Corporation
 0521177-6
	  	
			
	 142. Sonic – Massey Chevrolet, Inc.
	  	 California
 Corporation
 C2375359
	  	
			
	 143. Sonic – Massey Pontiac Buick GMC, Inc.
	  	 Colorado
 Corporation
 20021021616
	  	
			
	 144. Sonic – Mesquite Hyundai, L.P.
	  	 Texas
 Limited Partnership
 800087803
	  	
			
	 145. Sonic Momentum B, L.P.
	  	 Texas
 Limited Partnership
 800235477
	  	

					
	I.	  	II.	  	III.
	 Name
	  	 Jurisdiction of Formation/Form of
Equity/I.D.
Number
	  	 Address of Chief Executive Office

			
	 146. Sonic Momentum JVP, L.P.
	  	 Texas
 Limited Partnership
 800235475
	  	
			
	 147. Sonic Momentum VWA, L.P.
	  	 Texas
 Limited Partnership
 800207910
	  	
			
	 148. Sonic - Newsome Chevrolet World, Inc.
	  	 South Carolina
 Corporation
	  	
			
	 149. Sonic - Newsome of Florence, Inc.
	  	 South Carolina
 Corporation
	  	
			
	 150. Sonic - North Charleston Dodge, Inc.
	  	 South Carolina
 Corporation
	  	
			
	 151. Sonic - North Charleston, Inc.
	  	 South Carolina
 Corporation
	  	
			
	 152. Sonic of Texas, Inc.
	  	 Texas
 Corporation
 150782300
	  	
			
	 153. Sonic Peachtree Industrial Blvd., L.P.
	  	 Georgia
 Limited Partnership
 K739239
	  	
			
	 154. Sonic – Plymouth Cadillac, Inc.
	  	 Michigan
 Corporation
 26618C
	  	
			
	 155. Sonic - Reading, L.P.
	  	 Texas
 Limited Partnership
 12032210
	  	
			
	 156. Sonic Resources, Inc.
	  	 Nevada
 Corporation
 C24652-2001
	  	
			
	 157. Sonic – Richardson F, L.P.
	  	 Texas
 Limited Partnership
 14037410
	  	
			
	 158. Sonic – Sanford Cadillac, Inc.
	  	 Florida
 Corporation
 010595473
	  	

					
	I.	  	II.	  	III.
	 Name
	  	 Jurisdiction of Formation/Form of
Equity/I.D.
Number
	  	 Address of Chief Executive Office

			
	 159. Sonic Santa Monica M, Inc.
	  	 California
 Corporation
 C2727452
	  	
			
	 160. Sonic Santa Monica S, Inc.
	  	California Corporation C2788444	  	
			
	 161. Sonic–Saturn of Silicon Valley, Inc.
	  	 California
 Corporation
 C2547838
	  	
			
	 162. Sonic–Serramonte I, Inc.
	  	 California
 Corporation
 C2469221
	  	
			
	 163. Sonic - Shottenkirk, Inc.
	  	 Florida
 Corporation
 593575773
	  	
			
	 164. Sonic - Stevens Creek B, Inc.
	  	 California
 Corporation
 C0723787
	  	
			
	 165. Sonic – Stone Mountain T, L.P.
	  	 Georgia
 Limited Partnership
 0342795
	  	
			
	 166. Sonic Tysons Corner H, Inc.
	  	 Virginia
 ID #0645231
	  	
			
	 167. Sonic Tysons Corner Infiniti, Inc.
	  	 Virginia
 ID # 0645232
	  	
			
	 168. Sonic – University Park A, L.P.
	  	 Texas
 Limited Partnership
 13748310
	  	
			
	 169. Sonic-Volvo LV, LLC
	  	 Nevada
 Limited Liability Company
 LLC6829-1999
	  	
			
	 170. Sonic Walnut Creek M, Inc.
	  	 California
 Corporation
 C2508517
	  	

					
	I.	  	II.	  	III.
	 Name
	  	 Jurisdiction of Formation/Form of
Equity/I.D.
Number
	  	 Address of Chief Executive Office

			
	 171. Sonic–West Covina T, Inc.
	  	 California
 Corporation
 C2356455
	  	
			
	 172. Sonic - Williams Cadillac, Inc.
	  	 Alabama
 Corporation
 D/C 199-219
	  	
			
	 173. Sonic Wilshire Cadillac, Inc.
	  	California Corporation C2882071	  	
			
	 174. SRE Alabama-2, LLC
	  	 Alabama Limited Liability Company
 670-275
	  	
			
	 175. SRE Alabama-5, LLC
	  	 Alabama Limited Liability Company
 DLL
691-622
	  	
			
	 176. SRE California-1, LLC
	  	 California Limited Liability Company
 200202910110

	  	
			
	 177. SRE California-2, LLC
	  	 California Limited Liability Company
 200202910111

	  	
			
	 178. SRE California-4, LLC
	  	 California Limited Liability Company
 200202810144

	  	
			
	 179. SRE Colorado-1, LLC
	  	 Colorado Limited Liability Company
 20021330518
	  	
			
	 180. SRE Florida-1, LLC
	  	 Florida Limited Liability Company
 L00000006050
	  	
			
	 181. SRE Florida-2, LLC
	  	 Florida Limited Liability Company
 L00000006045
	  	
			
	 182. SRE Holding, LLC
	  	 North Carolina Corporation
 551475
	  	
			
	 183. SRE North Carolina-2, LLC
	  	 North Carolina Limited Liability Company
 682830
	  	
			
	 184. SRE Oklahoma-1, LLC
	  	 Oklahoma Limited Liability Company
 3500697104
	  	
			
	 185. SRE Oklahoma –2, LLC
	  	Oklahoma Limited Liability Company 3500697105	  	

					
	I.	  	II.	  	III.
	 Name
	  	 Jurisdiction of Formation/Form of
Equity/I.D.
Number
	  	 Address of Chief Executive Office

			
	 186. SRE Oklahoma-5, LLC
	  	 Oklahoma Limited Liability Company
 3500697108
	  	
			
	 187. SRE South Carolina-3, LLC
	  	 South Carolina Limited Liability Company
 N/A
	  	
			
	 188. SRE South Carolina-4, LLC
	  	 South Carolina Limited Liability Company
 N/A
	  	
			
	 189. SRE Tennessee – 4, LLC
	  	Tennessee Limited Liability Company 0450279	  	
			
	 190. SRE Texas-1, L.P
	  	 Texas Limited Partnership
 00135233-10
	  	
			
	 191. SRE Texas-2, L.P.
	  	 Texas Limited Partnership
 00135234-10
	  	
			
	 192. SRE Texas-3, L.P.
	  	 Texas Limited Partnership
 00135235-10
	  	
			
	 193. SRE Texas-4, L.P.
	  	 Texas Limited Partnership
 800048705
	  	
			
	 194. SRE Texas – 5, L.P.
	  	Texas Limited Partnership 800048740	  	
			
	 195. SRE Texas-6, L.P.
	  	 Texas Limited Partnership
 80000448741
	  	
			
	 196. SRE Texas-7, L.P.
	  	 Texas Limited Partnership
 800048742
	  	
			
	 197. SRE Texas-8, L.P.
	  	 Texas Limited Partnership
 800048743
	  	
			
	 198. SRE Virginia – 1, LLC
	  	Virginia Limited Liability Company S050246-0	  	
			
	 199. SRealEstate Arizona-2, LLC
	  	 Arizona Limited Liability Company
 L-0951252-2
	  	
			
	 200. SRealEstate Arizona-3, LLC
	  	 Arizona Limited Liability Company
 L-0951282-8
	  	

					
	I.	  	II.	  	III.
	 Name
	  	 Jurisdiction of Formation/Form of
Equity/I.D.
Number
	  	 Address of Chief Executive Office

			
	 201. Stevens Creek Cadillac, Inc.
	  	 California
 Corporation
 C1293380
	  	
			
	 202. Town and Country Ford, Incorporated
	  	 North Carolina
 Corporation
 0148959
	  	
			
	 203. Village Imported Cars, Inc.
	  	 Maryland
 Corporation
 D00308593d
	  	
			
	 204. Windward, Inc.
	  	 Hawaii
 Corporation
 41788D1FPD
	  	
			
	 205. Z Management, Inc.
	  	 Colorado
 Corporation
 19911043768
	  	

 Schedule 8(h) 
 COMMERCIAL TORT CLAIMS 
 Sonic Automotive, Inc. v. Mercedes-Benz USA, LLC, (08-CVS-4259) pending in the North
Carolina Business Court.

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