Document:

Exhibit

Exhibit 4.4

SUPPLEMENTAL INDENTURE 
SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of February 29, 2016, among (i) AutoNation, Inc., a Delaware corporation (the “Company”), (ii) Allen Samuels Chevrolet of Corpus Christi, Inc., Allen Samuels Chevrolet of Waco, Inc., Allen Samuels Enterprises, Inc., Auto Company 2016-1, Inc., Auto Company 2016-2, Inc., Auto Company 2016-3, Inc., Auto Company 2016-4, Inc., Auto Company 2016-5, Inc., Auto Company 2016-6, Inc., Auto Company 2016-7, Inc., Auto Company 2016-8, Inc., Auto Company 2016-9, Inc., Auto Company 2016-10, Inc., Auto Company 2016-11, Inc., Auto Company 2016-12, Inc., Auto Company 2016-13, Inc., Auto Company 2016-14, Inc., Auto Company 2016-15, Inc., Auto Company 2016-16, Inc., Auto Company 2016-17, Inc., Auto Company 2016-18, Inc., Auto Company 2016-19, Inc., Auto Company 2016-20, Inc., Auto Dealership 2016-1, LLC, Auto Dealership 2016-2, LLC, Auto Dealership 2016-3, LLC, Auto Dealership 2016-4, LLC, Auto Dealership 2016-5, LLC, Auto Dealership 2016-6, LLC, Auto Dealership 2016-7, LLC, Auto Dealership 2016-8, LLC, Auto Dealership 2016-9, LLC, Auto Dealership 2016-10, LLC, TX Alliance Motors, Inc., TX Ennis Autoplex Motors, Inc., TX Motors of North Richland Hills, Inc., TX Motors on Katy Freeway, Inc., TX Motors on Southwest Loop, Inc. and TX West Houston Motors, Inc. (each a “Guaranteeing Subsidiary” and together, the “Guaranteeing Subsidiaries”), each an indirect subsidiary of the Company (or its permitted successor), and (iii) Wells Fargo Bank, National Association, as trustee under the indenture referred to below (the “Trustee”). 
W I T N E S S E T H 
WHEREAS, the Company and the Guarantors named therein have heretofore executed and delivered to the Trustee the Indenture, dated as of April 14, 2010 (the “Base Indenture”), as supplemented by that Supplemental Indenture dated as of September 21, 2015 (the “2015 Supplemental Indenture” and, together with the Base Indenture, the “Indenture”), providing for the issuance of 4.500% Senior Notes due 2025 (the “Notes”); 
WHEREAS, the Indenture provides that the Guaranteeing Subsidiaries shall execute and deliver to the Trustee a supplemental indenture pursuant to which the Guaranteeing Subsidiaries shall unconditionally guarantee all of the Company’s obligations under the Notes and the Indenture on the terms and conditions set forth herein (the “Guarantee”); and 
WHEREAS, pursuant to Section 8.01 of the 2015 Supplemental Indenture, the Trustee is authorized to execute and deliver this Supplemental Indenture. 
NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Company, the Guaranteeing Subsidiaries and the Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes as follows: 
1. Capitalized Terms. Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture. 
2. Agreement to Guarantee. Each Guaranteeing Subsidiary hereby agrees as follows: 

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

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

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

		
	(b)
	The obligations hereunder shall be unconditional, irrespective of the validity, regularity or enforceability of the Notes or the Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder of the Notes with respect to any provisions hereof or thereof, the recovery of any judgment against the Company, any action to enforce the same or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of a Guarantor.

		
	(c)
	The following is hereby waived: diligence, presentment, demand of payment (except as specifically provided in (a) above), filing of claims with a court in the event of insolvency or bankruptcy of the Company, any right to require a proceeding first against the Company, protest, notice and all demands (except as specifically provided in (a) above) whatsoever.

		
	(d)
	This Guarantee shall not be discharged except by complete performance of the obligations contained in the Notes and the Indenture. Each Guarantor also expressly waives, without any requirement of any notice to or further assent by such Guarantor, to the fullest extent permitted by applicable law, the benefit of all principles or provisions of applicable law which are or might be in conflict with the terms hereof, including, without limitation, Section 10-7-23 and Section 10-7-24 of the Official Code of Georgia Annotated.

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

		
	(f)
	The Guaranteeing Subsidiary shall not be entitled to any right of subrogation in relation to the Holders in respect of any obligations guaranteed hereby until payment in full of all obligations guaranteed hereby.

		
	(g)
	As between the Guarantors, on the one hand, and the Holders and the Trustee, on the other hand, (x) the maturity of the obligations guaranteed hereby may be accelerated as provided in Article VII of the Base Indenture for the purposes of this Guarantee, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the obligations guaranteed hereby, and (y) in the event of any declaration of acceleration of such obligations as provided in Article VII of the Base Indenture, such obligations (whether or not due and payable) shall forthwith become due and payable by the Guarantors for the purpose of this Guarantee, failing payment when due by the Company which failure continues for three days after demand therefor is made to the Company.

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

3. Guaranteeing Subsidiary May Consolidate, Etc. on Certain Terms. Each Guaranteeing Subsidiary agrees that, unless its Guarantee is being concurrently released in conformity with Section 9.04 of the 2015 Supplemental Indenture, it may not consolidate with or merge with or into any Person other than the Company or any other Guarantor unless (a) such Guaranteeing Subsidiary will be the surviving corporation or the Person formed by or surviving any such consolidation or merger (if other than the Guarantor) is a corporation organized and existing under the laws of the United States of America, any State thereof or the District of Columbia and such Person assumes by supplemental indenture all of the obligations of such Guaranteeing Subsidiary on its Guarantee and (b) immediately after giving effect to such transaction, no Default or Event of Default shall have occurred and be continuing. 
4. Execution and Delivery. Each Guaranteeing Subsidiary agrees that the Guarantees shall remain in full force and effect notwithstanding any failure to endorse on each Note a notation of such Guarantee. 
5. Releases. The Guarantee of a Guaranteeing Subsidiary shall be released in accordance with the provisions set forth in the Indenture, including, without limitation, Section 9.04 of the 2015 Supplemental Indenture. The Trustee, at the expense and written direction of the Company, will execute proper instruments acknowledging the termination of such Subsidiary Guarantee as reasonably required by the representative of such Guarantor. Any Guarantor not released from its obligations under its Guarantee shall remain liable for the full amount of principal of and interest on the Notes and for the other obligations of any Guarantor under the Indenture as provided in Article IX of the 2015 Supplemental Indenture. 
6. No Recourse Against Others. No director, officer, employee, incorporator, stockholder or agent of a Guaranteeing Subsidiary, as such, shall have any liability for any obligations of the Company or any Guaranteeing Subsidiary under the Notes, the Indenture, any Guarantees or this Supplemental Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder of Notes by accepting a Note waives and releases all such liability. 

The waiver and release are part of the consideration for issuance of the Notes. Such waiver may not be effective to waive liabilities under the federal securities laws. 
7. NEW YORK LAW TO GOVERN. THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE. 
8. WAIVER OF JURY TRIAL. THE COMPANY, THE GUARANTEEING SUBSIDIARIES AND THE TRUSTEE EACH HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, ACTION, OR OTHER PROCEEDING ARISING OUT OF OR RELATING TO THIS SUPPLEMENTAL INDENTURE, THE GUARANTEE OF A GUARANTEEING SUBSIDIARY OR THE TRANSACTIONS CONTEMPLATED HEREBY.

9. Counterparts. The parties may sign any number of copies of this Supplemental Indenture. Each signed copy shall be an original, but all of them together represent the same agreement. The exchange of copies of this Supplemental Indenture and of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Supplemental Indenture as to the parties hereto and may be used in lieu of the original Supplemental Indenture for all purposes. Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes. 
10. Effect of Headings. The Section headings herein are for convenience only and shall not affect the construction hereof. 
11. The Trustee. The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity, legality or sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by the Guaranteeing Subsidiaries and the Company.

IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed and attested, all as of the date first above written.
	
			
	 
	Allen Samuels Chevrolet of Corpus Christi, Inc.
Allen Samuels Chevrolet of Waco, Inc.
Allen Samuels Enterprises, Inc.
Auto Company 2016-1, Inc.
Auto Company 2016-2, Inc.
Auto Company 2016-3, Inc.
Auto Company 2016-4, Inc.
Auto Company 2016-5, Inc.
Auto Company 2016-6, Inc.
Auto Company 2016-7, Inc.
Auto Company 2016-8, Inc.
Auto Company 2016-9, Inc.
Auto Company 2016-10, Inc.
Auto Company 2016-11, Inc.
Auto Company 2016-12, Inc.
Auto Company 2016-13, Inc.
Auto Company 2016-14, Inc.
Auto Company 2016-15, Inc.
Auto Company 2016-16, Inc.
Auto Company 2016-17, Inc.
Auto Company 2016-18, Inc.
Auto Company 2016-19, Inc.
Auto Company 2016-20, Inc.
Auto Dealership 2016-1, LLC
Auto Dealership 2016-2, LLC
Auto Dealership 2016-3, LLC
Auto Dealership 2016-4, LLC
Auto Dealership 2016-5, LLC
Auto Dealership 2016-6, LLC
Auto Dealership 2016-7, LLC
Auto Dealership 2016-8, LLC
Auto Dealership 2016-9, LLC
Auto Dealership 2016-10, LLC
TX Alliance Motors, Inc.
TX Ennis Autoplex Motors, Inc.
TX Motors of North Richland Hills, Inc.
TX Motors on Katy Freeway, Inc.
TX Motors on Southwest Loop, Inc.
TX West Houston Motors, Inc.

	 
	 
	 

	 
	By:
	/s/ C. Coleman G. Edmunds

	 
	 
	Name: C. Coleman G. Edmunds

	 
	 
	Title: Assistant Secretary

	
			
	 
	AUTONATION, INC.

	 
	 
	 

	 
	By:
	/s/ C. Coleman G. Edmunds

	 
	 
	Name: C. Coleman G. Edmunds

	 
	 
	Title: Sr. Vice President, Deputy General
Counsel and Assistant Secretary

	
		
	ATTEST:

	 
	 

	By:
	/s/ Jonathan P. Ferrando

	 
	Name: Jonathan P. Ferrando

	 
	Title: Executive Vice President - General
Counsel, Corporate Development and Human
Resources of AutoNation, Inc.

	
			
	 
	WELLS FARGO BANK, NATIONAL ASSOCIATION, As Trustee

	 
	 
	 

	 
	By:
	/s/ Raymond Delli Colli

	 
	 
	Name: Raymond Delli Colli

	 
	 
	Title: Vice PresidentExhibit

Exhibit 10.1

FORM OF AUTONATION, INC.
STOCK OPTION AGREEMENT

THIS STOCK OPTION AGREEMENT (this “Agreement”) is entered into as of March __, ____, by and between AUTONATION, INC., a Delaware corporation (together with its subsidiaries and affiliates, the “Company”), and ____________ (“Optionee”) who accepts the award of the Option (as defined below) made hereby, and agrees to be bound by this Agreement.

RECITALS

A.The Company has established the AutoNation, Inc. 2008 Employee Equity and Incentive Plan (the “Plan”) in order to provide valued employees of the Company incentives to create and maintain long-term stockholder value; and

B.The Compensation Committee (the “Committee”) of the Board of Directors (the “Board”) of the Company has approved the grant to Optionee of a non-qualified employee stock option to purchase from the Company shares of the Company’s common stock, par value $0.01 per share (“Common Stock”), on the terms and conditions set forth in this Agreement.

TERMS OF AGREEMENT

NOW THEREFORE, for good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound hereby, the parties hereby agree as follows:

1.Definitions.  Capitalized terms used herein which are defined in this Section 1 have the respective meanings assigned hereto in this Section 1. All other capitalized terms used but not defined in this Agreement shall have the meanings given to them in the Plan.

  “Affiliate” shall mean a Subsidiary or any other entity of which on the relevant date at least a majority of the Voting Securities are at the time owned directly or indirectly by the Company or any Subsidiary.

“Change in Ownership”  A Change in Ownership shall be deemed to have occurred with respect to an Optionee if (i) as a result of a merger, consolidation, reorganization, business combination, sale, exchange or other disposition of Voting Securities or other transaction, the corporation or other entity by which Optionee is employed ceases to be a Subsidiary or Affiliate of the Company and, immediately after such transaction, the persons who were stockholders of the Company immediately before such transaction do not own at least a majority of the Voting Securities of such corporation or other entity, or (ii) there is a sale or other disposition of all or substantially all of the assets of the trade, business, corporation or other entity by which Optionee is employed and, immediately after such transaction, the Company or the persons who were stockholders of the Company immediately before such transaction do not own at least a majority of the Voting Securities of a corporation or other entity that acquires such assets or engages in such trade or business.  Notwithstanding the foregoing, a Change in Ownership shall not include a Change in Control (as defined in the Plan) of the Company.

“Spin-Off”  A Spin-Off shall be deemed to have occurred with respect to an Optionee if the corporation or other entity by which Optionee was employed, or the entity that succeeds to the business unit or trade by which Optionee was employed, is not a Subsidiary or Affiliate of the Company following a pro rata distribution or dividend of its capital stock to the persons who were stockholders of the Company immediately before such transaction and, immediately after such transaction, such corporation or other entity has a class of Voting Securities that is traded publicly on a national securities exchange.

“Subsidiary” shall have the meaning given to it in Section 424(f) of the Internal Revenue Code of 1986, as amended.

“Voting Securities” shall mean securities or other ownership interest having ordinary voting power (absolutely or contingently) for the election of directors or other persons performing similar functions.

2.Grant of Option.  Subject to the terms and conditions set forth herein and in the Plan, Optionee shall be granted under the Plan as of the date hereof the right and option (the “Option”) to purchase from the Company _________ shares of Common Stock at an exercise price equal to $______ per share.  The Option shall not be treated as an incentive stock option under Section 422 of the Internal Revenue Code of 1986, as amended.

3.Term.  The term of the Option shall commence on the date of this Agreement and expire on March __, ____, subject to the terms and conditions set forth herein and in the Plan, as may be amended from time to time. 

4.Vesting.  Except as otherwise provided herein or in the Plan, the Option shall vest and become exercisable in four equal annual installments, 25% on March 1, ____, 25% on March 1, ____, 25% on March 1, ____, and 25% on March 1, ____, subject to continuous employment by Optionee with the Company from the date hereof until such date.  Any portion of the Option may be exercised only to purchase whole shares of Common Stock, and in no case may a fraction of a share be purchased.  If any fractional share of Common Stock would be deliverable upon exercise, such fraction shall be rounded down to the nearest whole number.

5.Termination of Option if Employment is Terminated Due to a Change in Ownership of Subsidiary or Affiliate or Spin-Off.  For the purpose of clarification, if Optionee ceases to be an employee of the Company or any Subsidiary or Affiliate of the Company following a Change in Ownership or Spin-Off of the Subsidiary, Affiliate or business unit by which Optionee is employed (whether because of the termination of employment of Optionee or because the corporation or other entity by which Optionee was employed ceases to be a Subsidiary or Affiliate of the Company or otherwise), such cessation shall be deemed to be a termination of employment or other service and Sections 12 and 13 of the Plan shall apply.

6.Optionee Bound by Terms of Plan.  Optionee hereby acknowledges receipt of a copy of the Plan and agrees to be bound by all of the terms, conditions and provisions thereof (including, without limitation, the termination of the Option in the event of a termination of the Optionee’s employment with the Company for Cause).  For the purpose of clarification, the Optionee hereby acknowledges that in the event of a termination of the Optionee’s employment with the Company for Cause at a time when the Optionee is eligible for Retirement (as such term is defined in the Plan), both the Option and any other stock options to acquire shares of Company stock previously granted to the Optionee shall be forfeited and terminate immediately.

7.Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Florida, without regard to its principles of conflict of laws.  The parties agree that any action, suit or proceeding arising out of or relative to this Agreement or the relationship of Optionee and the Company shall be instituted only in the State or federal courts located in Broward County in the State of Florida, and each party waives any objection that such party may now or hereafter have to such venue or jurisdiction in any action, suit or proceeding brought in any State or federal court located in Broward County, Florida. Optionee affirms that he or she has sufficient contact with Florida such that Optionee would reasonably anticipate being hailed into said courts in Florida regarding this Agreement or any other contract or issues arising between the parties hereto.  Any and all service of process and any other notice in any such action, suit or proceeding shall be effective against Optionee if given by mail (registered or certified where possible, return receipt requested), postage prepaid, mailed to Optionee at the address set forth in the Company’s records, or shall be effective against the Company if given in accordance with Paragraph 10 hereof.

8.No Right to Continued Employment.  Nothing contained in this Agreement shall confer on Optionee the right to continue in the employment of the Company or otherwise shall impede the Company’s ability to terminate Optionee’s employment.

9.Severability.  The invalidity or enforceability of any one or more provisions of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect.

10.Notices. All notices, requests, demands, claims and other communications by Optionee with respect to the Option shall be in writing and shall be deemed given if delivered by certified or registered mail (first class postage prepaid), guaranteed overnight delivery or facsimile transmission if such transmission is confirmed by delivery by certified or registered mail (first class postage prepaid) or guaranteed overnight delivery, to the following address (or to such other addresses or telecopy numbers which the Company shall designate in writing to Optionee from time to time):
AutoNation, Inc.
200 SW 1st Avenue
Fort Lauderdale, Florida 33301
Attention: Human Resources, Suite 1400
Telecopy:  (954) xxx-xxxx

		
	with a copy to:
	AutoNation, Inc.

200 SW 1st Avenue
Fort Lauderdale, Florida 33301
Attention:  General Counsel, Suite 1600
Telecopy:  (954) xxx-xxxx
(no copy required for notice of Option exercise)

11.Binding Effect.  This Agreement shall not constitute a binding obligation of the Company or the Optionee until it is signed by the Vice President, Human Resources of the Company and the Optionee.  Subject to the limitations stated above and in the Plan, this Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Company and to Optionee’s heirs, legatees, distributees and personal representatives. No handmarked or interlineated modifications shall constitute a part of this Agreement.

12.Method of Option Exercise.  To the extent permitted by the Company, the Option may be exercised by electronic submission of an exercise order in accordance with the instructions set forth thereon or otherwise in accordance with Section 9(d) of the Plan.

13.Conflict with Terms of the Plan.  In the event that any provision of this Agreement conflicts with any provision of the Plan and cannot reasonably be interpreted to be a clarification of such provision of the Plan or an exercise of the authority granted to the Plan’s administrator pursuant to the Plan, the provision of the Plan shall govern and be controlling.  For the purpose of clarification, Paragraph 4 and the last sentence of Paragraph 6 hereof shall govern notwithstanding any contrary provisions of the Plan.

14.Integration.   This Agreement supersedes all prior agreements and understandings between the Company and Optionee relating to the grant of the Option, whether oral or otherwise, provided however that this Agreement shall not supersede any agreement (including any employment agreement) with the Company or policy of the Company relating to confidentiality, no-solicitation, no-hire, non-competition, non-disparagement or recoupment of compensation, including but not limited to that certain Restrictive Covenants and Confidentiality Agreement of even date herewith by and between the Company and Optionee.

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

	
				
	By:
	AUTONATION, INC.
	 
	OPTIONEE:

	 
	 
	 
	 

	 
	Name:
Title:

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