Document:

Exhibit

Exhibit 10.1

FORM OF AUTONATION, INC.
STOCK UNIT AWARDS AGREEMENT

THIS STOCK UNIT AWARDS AGREEMENT (this “Agreement”) is entered into as of ___________ (the “Date of Grant”), by and between the Company and ___________ (the “Participant”), who accepts the Awards of the one-year performance-based Restricted Stock Units (the “RSUs”) and the three-year performance-based Restricted Stock Units (the “PSUs”) made hereby, and agrees to be bound by this Agreement. 
Recitals
A.    The Company has established the AutoNation, Inc. 2017 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 of the Board of Directors of the Company has approved the grant to the Participant of RSUs and PSUs 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 and Schedules.  All capitalized terms used but not defined in this Agreement shall have the meanings given to them in the Plan.  In addition, terms in respect of these Awards that are not addressed in this Agreement shall be set forth on one or more Schedules attached hereto.
2.    Award of RSUs and PSUs Pursuant to Plan.  Subject to the terms and conditions, including the restrictions and risk of forfeiture, set forth herein and in the Plan, the Participant is hereby granted under the Plan, as of the Date of Grant, an Award of RSUs and three (3) grants of PSUs, the number of each of which is set forth for the Participant on the applicable Schedule attached hereto.  
3.    Number of Shares.  The Company will establish a bookkeeping account to reflect the number of shares of Stock that are subject to each of the Participant’s Awards.  The Participant shall not be deemed to be the holder of, or to have any of the rights of a stockholder with respect to, any shares of Stock subject to each of the Participant’s Awards unless and until the shares have been delivered in accordance with Section 7 of this Agreement.
4.    Vesting.  
		
	(a)
	RSUs Grant 1 - Except as otherwise provided in Section 5 of this Agreement or in the Plan, the RSUs shall become vested on the applicable vesting date set forth on Schedule 1, subject to the Participant’s continued employment with the Company, its Subsidiaries or its Affiliates, through such vesting date.  If the Performance Goal set forth on Schedule 1 is not achieved, the RSUs shall be immediately forfeited.  

		
	(b)
	PSUs.  Except as otherwise provided in Section 5 of this Agreement or in the Plan:

		
	(i)
	Grant 2 - the PSUs in respect of this Grant 2 shall be earned based on the achievement of the Performance Goals set forth on Schedule 2 attached hereto and become vested on the date that the Board certifies the level at which such Performance Goals have been achieved, subject to the Participant’s continued employment with the Company, its Subsidiaries or its Affiliates through the end of the Performance Period set forth on such Schedule.  If the Performance Goals set forth on Schedule 2 are not achieved, the PSUs in respect of this Grant 2 shall be immediately forfeited.

		
	(ii)
	Grant 3 - the PSUs in respect of this Grant 3 shall be earned based on the achievement of the Performance Goals set forth on Schedule 3 attached hereto and become vested on the date the Board certifies the level at which such Performance Goals have been achieved, subject to the Participant’s continued employment with the Company, its Subsidiaries or its Affiliates through the end of the Performance Period set forth on such Schedule.  If the Performance Goals set forth on Schedule 3 are not achieved, the PSUs in respect of this Grant 3 shall be immediately forfeited.

		
	(iii)
	Grant 4 - the PSUs in respect of this Grant 4 shall be earned based on the achievement of the Performance Goals set forth on Schedule 4 attached hereto and become vested on the date the Board certifies the level at which such Performance Goals have been achieved, subject to the Participant’s continued employment with the Company, its Subsidiaries or its Affiliates through the end of the Performance Period set forth on such Schedule.  If the Performance Goals set forth on Schedule 4 are not achieved, the PSUs in respect of this Grant 4 shall be immediately forfeited.

		
	(c)
	Without limiting the generality of the foregoing, the Board may exercise negative discretion in respect of the final determination of each Award as set forth on each Schedule to the extent the Board determines such adjustment to be equitable in good faith.

5.    Termination of Employment.  Except as set forth in this Section 5, upon the Participant’s termination of employment for any reason, any RSUs or PSUs that have not been earned or that have not become vested, in each case in accordance with the applicable Schedule, shall be immediately forfeited.  Notwithstanding the foregoing, the following provisions shall apply to the Awards:
		
	(a)
	Termination of Employment for Cause.  Upon the termination of the Participant’s employment for Cause by the Company, its Subsidiaries or its Affiliates, this Agreement shall terminate and all rights of the Participant with respect to all RSUs or PSUs that have not been settled shall immediately terminate.  The RSUs and PSUs shall be forfeited without payment of any consideration, and neither the Participant nor any of the Participant’s successors, heirs, assigns, or personal representatives shall thereafter have any further rights or interests in such RSUs or PSUs.

		
	(b)
	Qualifying Termination of Employment.  

		
	(i)
	Death - RSUs.  Upon the termination of the Participant’s employment with the Company, its Subsidiaries or its Affiliates thereof on account of death, the Participant shall immediately vest in full in the RSUs, without regard to the level of achievement of the Performance Goal.  

		
	(ii)
	Death - PSUs.  Upon the termination of the Participant’s employment with the Company, its Subsidiaries or its Affiliates thereof on account of death, the Participant shall continue to vest (as if the Participant’s employment had not been terminated) in a pro-rated portion of the PSUs, subject to the achievement of the Performance Goals as set forth on the applicable Schedule and the immediately following sentence.  Any portion of the PSUs that do not vest in accordance with the foregoing shall automatically be forfeited.  For purposes of the foregoing, the pro-rated portion of the PSUs shall equal the number of full months in the Performance Period during which the Participant was employed by the Company, its Subsidiaries or its Affiliates divided by thirty-six (36).

		
	(iii)
	Disability and Retirement - RSUs and PSUs.  Upon the termination of the Participant’s employment with the Company, its Subsidiaries or its Affiliates thereof (i) due to Disability or (ii) by the Participant due to Retirement, the Participant shall continue to vest (as if the Participant’s employment had not been terminated) in the RSUs and in a pro-rated portion of the PSUs, subject to the achievement of the Performance Goals as set forth on the applicable Schedule and the immediately following sentence.  The RSUs and the pro-rated portion of the PSUs shall continue to vest only if the Participant fully complies with any non-compete, non-disparagement, confidentiality and other restrictive covenants set forth in any agreement entered into between the Participant and the Company or its Subsidiaries or its Affiliates from time to time (including, but not limited to any Restrictive Covenants and Confidentiality Agreement entered into between the Participant and the Company) determined, notwithstanding the time periods set forth therein, as if all such restrictive covenants applied at all times while the Awards are outstanding.  The Board shall determine whether the Participant has complied with such restrictive covenants.  Any portion of the RSUs or PSUs that does not vest in accordance with the foregoing shall automatically be forfeited.  For purposes of the foregoing, the pro-rated portion of the PSUs shall equal the number of full months in the Performance Period during which the Participant was employed by the Company, its Subsidiaries or its Affiliates divided by thirty-six (36).

6.    Dividend Equivalents.  On each date on which a dividend is paid with respect to shares of Stock, dividend equivalents shall be credited hereunder in respect of the shares subject to the Awards.  Such dividend equivalents shall be credited as a number of additional RSUs or PSUs equal to (i) the aggregate amount or value of the dividends paid with respect 

to that number of shares equal to the number of shares subject to such Award on the record date of such dividend, divided by (ii) the Fair Market Value per share on the payment date for such dividend.  Such additional RSUs or PSUs shall be subject to all the terms and conditions of this Agreement and shall vest at the same time that the related Award vests, and the shares subject to such additional RSUs or PSUs shall be distributed only upon the distribution of the underlying shares with respect to which the dividend equivalents were granted.   
7.    Payment.  
		
	(a)
	RSU Payment.  The Company shall deliver to the Participant either, in its sole and absolute discretion (a) a number of shares of Stock equal to the number of vested shares subject to the RSU Award, including dividend equivalents credited with respect to such shares, or (b) an amount of cash equal to the Fair Market Value of such shares on the date of the distribution, in either case, on or as soon as administratively practical following the date of vesting of the applicable portion of the total RSUs pursuant to the terms hereof (and in all events within seventy-five (75) days of the vesting date to the extent necessary to determine whether the Performance Goal has been achieved and otherwise within thirty (30) days of the vesting date).

		
	(b)
	PSU Payment.  The Company shall deliver to the Participant either, in its sole and absolute discretion (a) a number of shares of Stock equal to the number of shares of Stock earned and vested with respect to each applicable PSU Award, including dividend equivalents credited with respect to such shares, or (b) an amount of cash equal to the Fair Market Value of such shares on the date of the distribution, in either case, on or as soon as administratively practical following expiration of the applicable Performance Period (and in all events within seventy-five (75) days thereof).

8.    Participant Bound by Terms of Plan.  The Participant hereby acknowledges receipt of a copy of the Plan and agrees to be bound by all of the terms, conditions and provisions thereof.
9.    Withholding.  The Participant must satisfy any tax or other applicable withholding by having the Company withhold shares of Stock otherwise issuable hereunder.
10.    Governing Law.  This Agreement shall be administered, interpreted and enforced under the internal laws of the State of Delaware without regard to conflicts of laws thereof.  
11.    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.
12.    Notices.  All notices, requests, demands, claims and other communications by the Participant with respect to this Award 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 the Participant from time to time):
AutoNation, Inc.
200 SW 1st Avenue
Fort Lauderdale, Florida 33301
Attention:  Human Resources, Suite 1400
Telecopy:  (954) 656-xxxx
with a copy to:
AutoNation, Inc.
200 SW 1st Avenue
Fort Lauderdale, Florida 33301
Attention:  General Counsel, Suite 1600
Telecopy:  (954) 769-xxxx
13.    Binding Effect.  This Agreement shall not constitute a binding obligation of the Company or the Participant unless it is accepted by the Participant by ________.  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 the Participant’s heirs, legatees, distributees and personal representatives.  No handmarked or interlineated modifications shall constitute a part of this Agreement.

14.    Conflict with Terms of the Plan.  These Awards are subject to the terms of the Plan, which provisions are hereby incorporated herein as if fully set forth herein.  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.
15.    409A.  This Agreement is intended to be exempt from, or to the extent subject thereto, comply with, the requirements of Section 409A of the Code, and shall in all respects be administered and interpreted in accordance with such intent.  Notwithstanding anything to the contrary in this Agreement, to the extent necessary to avoid the imposition of any individual penalty tax and late interest charges imposed under Section 409A of the Code, such payment shall instead be made on the first business day after the date that is six (6) months following such separation from service (or upon the Participant’s death, if earlier). 
16.    Integration.  This Agreement supersedes all prior agreements and understandings between the Participant and the Company, its Subsidiaries and its Affiliates relating to the grant of these Awards, whether oral or otherwise, provided however that this Agreement shall not supersede any agreement (including any employment agreement) with the Company, its Subsidiaries and its Affiliates or policy of the Company, its Subsidiaries and its Affiliates relating to confidentiality, no-solicitation, no-hire, non-competition, non-disparagement or recoupment of compensation, including but not limited to the Restrictive Covenants and Confidentiality Agreement previously entered into between the Company and the Participant.
[Signature page follows]

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

By:    

By:    AUTONATION, INC.

Name:
Title:

Schedule 1
Grant 1 - RSUs

Award:  

Vesting:  

Schedule 2
GRANT 2 - PSUs

Target Award:  

Vesting:  

Schedule 3
GRANT 3 - PSUs

Target Award:  

Vesting:  

Schedule 4
GRANT 4 - PSUs

Target Award:  

Vesting:Exhibit

Exhibit 10.2
AUTONATION, INC.
EXECUTIVE SEVERANCE PLAN
The Company has adopted this AutoNation, Inc. Executive Severance Plan for the benefit of certain key employees of the Company and its Subsidiaries, on the terms and conditions hereinafter stated.  All capitalized terms used herein are defined in Section 1 hereof.  The Plan, as set forth herein, is intended to help retain key employees and maintain a stable work environment by providing severance benefits to Eligible Executives in the event of certain terminations of employment.
		
	Section 1.
	DEFINITIONS.  As hereinafter used:

1.1.“Affiliate” means, with respect to any individual or entity, any other individual or entity who, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with, such individual or entity.
1.2.“Alternative Arrangement” shall have the meaning ascribed to that term in Section 2.8.
1.3.“Board” means the Board of Directors of the Company.
1.4.“COBRA” means the group health continuation requirements of Section 4980B of the Code.
1.5.“Cause” means that the Eligible Executive has: (a) breached his or her restrictive covenants set forth in any agreement with the Company (including the Eligible Executive’s Restrictive Covenants as defined in Section 2.9); (b) failed or refused to perform his or her assigned duties and responsibilities to the Company in any material respect, after notice and a reasonable opportunity to cure; (c) willfully engaged in illegal conduct or gross misconduct in the performance of his or her duties to the Company; (d) committed an act of fraud or dishonesty affecting the Company or committed an act constituting a felony; or (e) willfully violated any material Company policies (including the Code of Ethics Policy for Senior Officers) in any material respect.  No act or failure to act on the part of the Eligible Executive shall be deemed “willful” unless done, or omitted to be done, by the Eligible Executive not in good faith or without reasonable belief that the Eligible Executive’s act or failure to act was in the best interests of the Company.  The Company must notify the Eligible Executive of an act or failure to act constituting Cause within ninety (90) days following the date that the Company first obtained actual knowledge of the existence of Cause, or such Eligible Executive’s act or failure to act shall not constitute cause under this Plan.  
1.6.“Code” means the Internal Revenue Code of 1986, as amended.
1.7.“Committee” means the Employee Benefits Committee of the Company.
1.8.“Compensation Committee” means the Compensation Committee of the Board of Directors of the Company.
1.9.“Company” means AutoNation, Inc. and any successors thereto and, where the context requires, its Subsidiaries.
1.10.“Effective Date” means April 18, 2018.
1.11.“Effective Period” means the period beginning on the Effective Date.
1.12.“Eligible Executive” means an employee of the Company or any of its Subsidiaries who is an Executive Vice President or above, other than the Chief Executive Officer of the Company unless otherwise designated in writing by the Compensation Committee.
1.13.“ERISA” means the Employee Retirement Income Security Act of 1974, as amended.
1.14.“Good Reason” means the occurrence (without the Eligible Executive’s express written consent) of any one of the following acts by the Company, or failures by the Company to act, unless, in the case of any act or failure to act described in paragraph (a) or (e) below, such act or failure to act is corrected prior to the date of termination of the Eligible Executive’s employment or service:
(a)the assignment to the Eligible Executive of any duties inconsistent with the Eligible Executive’s status or a substantial adverse alteration in the nature or status of the Eligible Executive’s responsibilities, including, without limitation, if the Eligible Executive was an executive officer of a public company reporting to the Chief 

Executive Officer, the Participant ceasing to be an executive officer of a public company reporting to the Chief Executive Officer;
(b)a reduction by the Company in the Eligible Executive’s annual base salary;
(c)the relocation of the Eligible Executive’s principal place of employment by more than 50 miles or the Company’s requiring the Eligible Executive’s to be based anywhere other than such principal place of employment (or permitted relocation thereof) except for required travel on the Company’s business to an extent substantially consistent with the Eligible Executive’s previous business travel obligations;
(d)the failure by the Company to pay to the Eligible Executive’s any portion of the Eligible Executive’s current compensation or to pay to the Eligible Executive any portion of an installment of deferred compensation under any deferred compensation program of the Company, within seven (7) days of the date such compensation is due; or
(e)the failure by the Company to continue in effect any compensation plan in which the Eligible Executive’s participates which is material to the Eligible Executive’s total compensation, including but not limited to the Company’s equity-based long term incentive plans and annual incentive plans, unless a comparable arrangement (embodied in an ongoing substitute or alternative plan) has been made with respect to such plan, or an adverse change in the Eligible Executive’s participation therein (or in such substitute or alternative plan) either in terms of the amount or timing of payment of benefits provided or the level of the Eligible Executive’s participation relative to other participants.
The Eligible Executive’s right to terminate the Eligible Executive’s employment for Good Reason shall not be affected by the Eligible Executive’s incapacity due to physical or mental illness.  The Participant’s continued employment shall not constitute consent to, or a waiver of rights with respect to, any act or failure to act constituting Good Reason hereunder; provided, that the Eligible Executive provides the Company with a written notice of termination within sixty days (60) days following the occurrence of the event constituting Good Reason.  In no event shall the Eligible Executive have Good Reason to terminate employment if such act or failure to act has been cured within thirty (30) days after a notice of termination is delivered by the Eligible Executive to the Company.
1.15.“Notice Period” shall have the meaning ascribed to that term in Section 5.2.
1.16.“Person” shall have the meaning given in Section 3(a)(9) of the Securities Exchange Act of 1934, as modified and used in Sections 13(d) and 14(d) thereof.
1.17.“Plan” means the AutoNation, Inc. Executive Severance Plan, as set forth herein, as it may be amended from time to time.
1.18.“Plan Administrator” means the Committee or such other person or persons appointed from time to time by the Compensation Committee to administer the Plan.
1.19.“Restrictive Covenants” shall have the meaning ascribed to that term in Section 2.9.
1.20.“Severance Event” means (a) the involuntary termination of an Eligible Executive’s employment by the Company or any Subsidiary thereof, other than for Cause during the Effective Period or (b) the termination of an Eligible Executive’s employment by the Eligible Executive for Good Reason during the Effective Period.
1.21.“Severance Date” means the date on which an Eligible Executive incurs a Severance Event.
1.22.“Subsidiary” means, with respect to the Company, as of any date of determination, any other Person as to which the Company owns or otherwise controls, directly or indirectly, more than 50% of the voting shares or other similar interests or a sole general partner interest or managing member or similar interest of such other Person.
		
	Section 2.
	SEVERANCE BENEFITS.

2.1.Generally.  Subject to Sections 2.6, 2.7, 2.8 and 2.9, each Eligible Executive shall be entitled to severance payments and/or benefits pursuant to applicable provisions of Section 2 of this Plan if the Eligible Executive incurs a Severance Event.
2.2.Payment after a Severance Event.  Subject to Sections 2.6, 2.7, 2.8 and 2.9, the Company shall pay to each Eligible Executive who incurs a Severance Event during the Effective Period, (a) in equal installments over eighteen (18) months in accordance with the Company’s regular payroll practices commencing with the first administratively practical 

regular payroll date next following the effectiveness of the release as described in Section 2.6, 1.5 times the sum of (i) the Eligible Executive’s annual base salary as in effect on the Severance Date (or if greater, as in effect prior to the event giving rise to Good Reason) and (ii) the Eligible Executive’s target annual bonus as in effect on the Severance Date (or if greater, as in effect prior to the event giving rise to Good Reason), and (b) in a lump sum at the same time bonuses are paid to active employees generally and as soon as reasonably practicable following the effectiveness of the release described in Section 2.6, but in no event later than March 15th of the calendar year following the calendar year that includes the Severance Date, an amount equal to the Eligible Executive’s annual bonus as determined by the Committee, pro-rated for the number of days the Eligible Executive was employed during the calendar year through the Severance Date.
2.3.Benefits Supplement.  Subject to Sections 2.6, 2.7, 2.8 and 2.9, in the case of each Eligible Executive who incurs a Severance Event, the Company shall pay to each Eligible Executive who incurs a Severance Event during the Effective Period, in a lump sum no later than the first administratively practical regular payroll date next following the effectiveness of the release as described in Section 2.6, an amount equal to the cost of coverage under COBRA, grossed up for taxes, based on the Eligible Executive’s then-current health, dental and vision elections for an eighteen (18) month period.  
2.4.Payment of Accrued Obligations.  If an Eligible Executive incurs a Severance Event during the Effective Period, the Company shall pay to such Eligible Executive on the Severance Date or as soon as practicable thereafter (or in the case of (b) at the same time bonuses are paid to active employees) in accordance with applicable law, a lump sum payment in cash equal to the sum of (a) the Eligible Executive’s accrued but previously unpaid annual base salary and any accrued vacation pay through the Severance Date, and (b) the Eligible Executive’s annual bonus earned for the fiscal year immediately preceding the fiscal year in which the Severance Date occurs (if such bonus is determinable and has not been paid as of the Severance Date).
2.5.Outplacement Services.  Subject to Sections 2.6, 2.7, 2.8 and 2.9, each Eligible Executive who incurs a Severance Event shall be provided with outplacement services, at the sole cost of the Company not to exceed $20,000, with a firm to be mutually agreed upon by the parties for a period of up to twelve (12) months.
2.6.Release.  No Eligible Executive who incurs a Severance Event shall be eligible to receive any payments or other benefits under the Plan (other than payments under Section 2.2 hereof) unless he or she first executes a waiver, release of claims, and covenant not to sue in favor of the Company and its Subsidiaries in a form as determined by the Company and does not revoke such release within the time permitted therein for such revocation, if any.  The Company shall provide the release to the Eligible Executive no later than seven (7) business days after the Eligible Executive’s termination of employment.  If such release is not effective on or before the sixtieth (60th) day following the Eligible Executive’s termination of employment, payments or benefits shall not be paid or otherwise provided to the Eligible Executive under this Plan and instead shall be forfeited.
2.7.Section 409A.  It is intended that payments and benefits under this Plan not subject Eligible Executives to taxation under Section 409A of the Code and, accordingly, this Plan shall be interpreted and administered to be in compliance therewith.  Any payments described in this Plan that are due within the “short term deferral period” as defined in Section 409A of the Code, or that qualify as “involuntary separation pay” within the meaning of Treas. Reg. §1.409A-1(b)(9) shall not be treated as deferred compensation unless applicable law requires otherwise.  If any amount payable under the Plan upon a termination of employment is determined by the Company to constitute nonqualified deferred compensation for purposes of Section 409A of the Code, such amount shall not be paid unless and until the Eligible Executive’s termination of employment also constitutes a “separation from service” under Section 409A of the Code.  If current or future regulations or guidance from the Internal Revenue Service dictates, or the Company’s counsel determines that any payments or benefits due to the Eligible Executive hereunder upon the schedule otherwise provided herein would cause the application of an accelerated or additional tax under Section 409A, then, to the extent required to avoid an accelerated or additional tax under Section 409A amounts that would otherwise be payable and benefits that would otherwise be provided pursuant to this Plan during the six (6) month period immediately following the Eligible Executive’s Severance Date shall instead be paid on the first business day after the date that is six (6) months following the Eligible Executive’s Severance Date (or upon such Eligible Executive’s death, if earlier) and amounts payable after such six (6) month period shall be paid in accordance with their original payment schedule.  To the extent required to avoid an accelerated or additional tax under Section 409A, amounts reimbursable to the Eligible Executive under this Plan shall be paid to the Eligible Executive on or before the last day of the calendar year following the calendar year in which the expense or tax was incurred and the amount of expenses eligible for reimbursement (and in-kind benefits provided to the Eligible Executive) during any one calendar year may not effect amounts reimbursable or provided in any subsequent calendar year.  Notwithstanding anything herein to the contrary, in no event shall the timing of an Eligible Executive’s execution of the release described in Section 2.6, directly or indirectly, result in the Eligible Executive designating the calendar year of payment, and if a payment that is subject to execution of the general release could be made in more than one taxable year, payment shall be made in the later taxable year.  Each payment in a series of payments shall be 

treated as a “separate payment” for purposes of Section 409A of the Code.  No interpretation or amendment of this Plan shall require the Company to incur any additional costs or to reimburse any Eligible Executive for any taxes or penalties that might be imposed upon the Eligible Executive as a result of Section 409A of the Code.
2.8.Non-Duplication; Coordination with Other Arrangements.  This Plan shall not be deemed to impair any rights of an Eligible Executive pursuant to any other agreement, plan or arrangement with the Company, a Subsidiary, or an Affiliate (an “Alternative Arrangement”); provided however that the compensation and benefits provided under this Plan shall be coordinated with similar compensation and benefits provided under other Company-sponsored plans and individual agreements with Eligible Executives so as to avoid the duplication of any such compensation and benefits.  In the event that an Eligible Executive is party to an Alternative Arrangement which provides severance payments or benefits upon a termination of employment, the payments and benefits provided under this Plan shall be reduced to the extent necessary to effectuate the intent of this Section 2.8.
2.9.Restrictive Covenants; Cessation of Severance Pay and Benefits.  Except as otherwise expressly provided in a written agreement signed by the Chief Executive Officer of the Company or the General Counsel of the Company, the severance pay and severance benefits which are being paid or are being provided to an Eligible Executive as a result of a Severance Event shall immediately cease (provided that the Eligible Executive shall be entitled to receive and retain at least one thousand dollars ($1,000) of severance payments and benefits) and not be resumed in the event that the Eligible Executive (a) is in material breach of any such confidential information, non-solicitation or non-competition covenant, or any other restrictive covenant agreement with the Company or any Subsidiary (collectively, the “Restrictive Covenants”) or (b) would be in material breach of the Restrictive Covenants had such Restrictive Covenants been in effect through the eighteen (18) month period following the Severance Date.
		
	Section 3.
	PLAN ADMINISTRATION.

3.1.    Except as otherwise designated by the Compensation Committee, the Plan Administrator shall have full discretionary authority and control to administer the Plan and make all other determinations necessary or advisable for the administration of the Plan, subject to all of the provisions of the Plan, including remedying any ambiguities or inconsistencies and supplying any omissions.
3.2.    The Plan Administrator may delegate any of its duties hereunder to such person or persons from time to time as it may designate.
Section 4.    PLAN MODIFICATION OR TERMINATION.
The Plan may be terminated or amended by the Compensation Committee at any time; provided, however, the effective date of the termination of the Plan or an amendment that would be adverse to the interests of any Eligible Executive shall be effective no earlier than two (2) years following the written announcement of such termination or adverse amendment.
Section 5.    GENERAL PROVISIONS.
5.1.    Except as otherwise provided herein or by law, no right or interest of any Eligible Executive under the Plan shall be assignable or transferable, in whole or in part, either directly or by operation of law or otherwise, including without limitation by execution, levy, garnishment, attachment, pledge or in any manner; and no attempted assignment or transfer thereof shall be effective.  When a payment is due under this Plan to a severed employee who is unable to care for his or her affairs, payment may be made directly to his or her legal guardian or personal representative.
5.2.    If the Company or any Subsidiary is obligated by law or by contract to pay severance pay, a termination indemnity, or the like, or if the Company or any Subsidiary is obligated by law or contract to provide advance notice of separation (“Notice Period”), then any severance pay hereunder shall be reduced by the amount of any such severance pay, termination indemnity, or the like, as applicable, and by the amount of any compensation received during any Notice Period, provided the Eligible Executive was relieved of duties during such Notice Period.
5.3.    Neither the establishment of the Plan, nor any modification thereof, nor the creation of any fund, trust or account, nor the payment of any benefits shall be construed as giving any Eligible Executive, or any person whomsoever, the right to be retained in the service of the Company or any Subsidiary, and all Eligible Executives shall remain subject to discharge to the same extent as if the Plan had never been adopted.

5.4.    If any provision of this Plan shall be held invalid or unenforceable, such invalidity or unenforceability shall not affect any other provisions hereof, and this Plan shall be construed and enforced as if such provisions had not been included.
5.5.    This Plan shall inure to the benefit of and be binding upon the parties and their heirs, executors, administrators, successors and assigns of the parties, including each Eligible Executive, present and future, and any successor to the Company.  If a severed employee shall die while any amount would still be payable to such severed employee hereunder if the severed employee had continued to live, all such amounts, unless otherwise provided herein, shall be paid in a lump sum in accordance with the terms of this Plan to the executor, personal representative or administrators of the severed employee’s estate.
5.6.    The headings and captions herein are provided for reference and convenience only, shall not be considered part of the Plan, and shall not be employed in the construction of the Plan.
5.7.    The Plan shall be unfunded.  No Eligible Executive shall have any right to, or interest in, any assets of the Company which may be applied by the Company to the payment of benefits or other rights under this Plan.
5.8.    All notices and other communications required or permitted pursuant to the terms hereof shall be in writing and shall be deemed given (a) when delivered personally by hand (with written confirmation of receipt by other than automatic means, whether electronic or otherwise), (b) when sent by facsimile or email (with written confirmation of transmission) or (c) one (1) business day following the day sent by an internationally recognized overnight courier (with written confirmation of receipt), in each case, at the intended recipient’s last known address, facsimile number and email address.
5.9.    The Plan and all determinations made and actions taken pursuant to this Plan shall be governed by the laws of the State of Delaware without giving effect to the conflict of laws principles thereof, to the extent not preempted by ERISA.
5.10.    All payments and benefits paid or otherwise provided under or pursuant to the Plan shall be reduced by applicable tax withholding and shall be subject to applicable tax reporting, as determined by the Plan Administrator.
5.11.    The Plan, as a “severance pay arrangement” within the meaning of Section 3(2)(B)(i) of ERISA, is intended to be excepted from the definitions of “employee pension benefit plan” and “pension plan” set forth under section 3(2) of ERISA, and is intended to meet the descriptive requirements of a plan constituting a “severance pay plan” within the meaning of regulations published by the Secretary of Labor at Title 29, Code of Federal Regulations §2510.3-2(b).  The Plan is also intended to constitute an “unfunded welfare plan” maintained by the Company “for the purpose of providing benefits for a select group of management or highly compensated employees” such that it will be, among other things, exempt from the reporting and disclosure requirements of Part 1 of Title I of ERISA.  In the event that the Plan does not meet the requirements of a “severance pay arrangements” or an “unfunded welfare plan”, as described above, the Plan is intended to be “a plan which is unfunded and maintained by an employer primarily for the purpose of providing deferred compensation for a select group of management or highly compensation employees”, within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA.
5.12.    All severance benefit payments are subject to set-off, recoupment, or other recovery or “clawback” as required by applicable law or by any Company policy on the clawback of compensation, as amended from time to time.
5.13.    An Eligible Executive who is receiving or has received payments or other benefits under this Plan following a Severance Event will not be required to seek other employment, nor will there be any offset against amounts due to such Eligible Executive under this Plan for any remuneration payable by any subsequent employer.  An Eligible Executive who is receiving or has received payments or other benefits under this Plan following a Severance Event will cooperate fully with the Company in the defense or prosecution of any government investigations and any government or third-party claims or actions then in existence or which may be brought or threatened in the future against or on behalf of the Company, including any claim or action against its directors, officers and employees in which the Eligible Executive has personal knowledge of any relevant facts.  The Eligible Executive’s cooperation in connection with such claims or actions shall include the Eligible Executive being available, within reason given the constraints of personal commitments, future employment or job search activities, to meet with the Company to prepare for any proceeding, to provide truthful affidavits, to assist with any audit, inspection, proceeding or other inquiry, and to act as a witness in connection with any litigation or other legal proceeding affecting the Company.  The Company will reimburse the Eligible Executive for any reasonable, out-of-pocket expenses that the Eligible Executive may incur in providing such assistance.

Section 6.    CLAIMS, INQUIRIES, APPEALS.
6.1.    Applications for Benefits and Inquiries.  Any application for benefits, inquiries about the Plan or inquiries about present or future rights under the Plan must be submitted to the Plan Administrator in writing, as follows:  
Plan Administrator
AutoNation, Inc.
200 SW 1st Avenue
Fort Lauderdale, Florida 33301
Attention:  General Counsel, Suite 1600
Telecopy:  (954) 769-6527
6.2.    Denial of Claims.  In the event that any application for benefits is denied in whole or in part, the Plan Administrator must notify the applicant, in writing, of the denial of the application, and of the applicant’s right to review the denial.  The written notice of denial will be set forth in a manner designed to be understood by the employee, and will include specific reasons for the denial, specific references to the Plan provision upon which the denial is based, a description of any information or material that the Plan Administrator needs to complete the review and an explanation of the Plan’s review procedure.
This written notice will be given to the applicant within ninety (90) days after the Plan Administrator receives the application, unless special circumstances require an extension of time, in which case, the Plan Administrator has up to an additional ninety (90) days for processing the application.  If an extension of time for processing is required, written notice of the extension will be furnished to the applicant before the end of the initial ninety (90) day period.
This notice of extension will describe the special circumstances necessitating the additional time and the date by which the Plan Administrator is to render its decision on the application.  If written notice of denial of the application for benefits is not furnished within the specified time, the application shall be deemed to be denied.  The applicant will then be permitted to appeal the denial in accordance with the Review Procedure described below.
6.3.    Request for a Review.  Any person (or that person’s authorized representative) for whom an application for benefits is denied (or deemed denied), in whole or in part, may appeal the denial by submitting a request for a review to the Plan Administrator within sixty (60) days after the application is denied (or deemed denied).  The Plan Administrator will give the applicant (or his or her representative) an opportunity to review pertinent documents in preparing a request for a review and submit written comments, documents, records and other information relating to the claim.  A request for a review shall be in writing and shall be addressed to:  
Plan Administrator
AutoNation, Inc.
200 SW 1st Avenue
Fort Lauderdale, Florida 33301
Attention:  General Counsel, Suite 1600
Telecopy:  (954) 769-6527
A request for review must set forth all of the grounds on which it is based, all facts in support of the request and any other matters that the applicant feels are pertinent.  The Plan Administrator may require the applicant to submit additional facts, documents or other material as he or she may find necessary or appropriate in making his or her review.
6.4.    Decision on Review.  The Plan Administrator will act on each request for review within sixty (60) days after receipt of the request, unless special circumstances require an extension of time (not to exceed an additional sixty (60) days), for processing the request for a review.  If an extension for review is required, written notice of the extension will be furnished to the applicant within the initial sixty (60) day period.  The Plan Administrator will give prompt, written notice of its decision to the applicant.  In the event that the Plan Administrator confirms the denial of the application for benefits in whole or in part, the notice will outline, in a manner calculated to be understood by the applicant, the specific Plan provisions upon which the decision is based.
6.5.    Rules and Procedures.  The Plan Administrator may establish rules and procedures, consistent with the Plan and with ERISA, as necessary and appropriate in carrying out his or her responsibilities in reviewing benefit claims.  The Plan Administrator may require an applicant who wishes to submit additional information in connection with an appeal from the denial (or deemed denial) of benefits to do so at the applicant’s own expense.

6.6.    Exhaustion of Remedies.  No legal action for benefits under the Plan may be brought until the claimant (a) has submitted a written application for benefits in accordance with the procedures described by Section 6.1 above, (b) has been notified by the Plan Administrator that the application is denied (or the application is deemed denied due to the Plan Administrator’s failure to act on it within the established time period), (c) has filed a written request for a review of the application in accordance with the appeal procedure described in Section 6.3 above and (d) has been notified in writing that the Plan Administrator has denied the appeal (or the appeal is deemed to be denied due to the Plan Administrator’s failure to take any action on the claim within the time prescribed by Section 6.4 above).
6.7.    Limitation on Civil Actions.  In no event shall a claimant or any other person be entitled to challenge a decision of the Plan Administrator in court or in any other administrative proceeding unless and until the claim and appeal procedures described above have been complied with and exhausted, nor may a claimant or other person bring any action in a court or other tribunal more than two (2) years after the Eligible Executive has terminated employment, regardless of whether the periods for the claim and appeal procedures have expired.

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