Exhibit 10.3
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PROMISSORY NOTE
(Acquisition/Revolving Line of Credit)
(LIBOR Rate)
$250,000,000.00 Charlotte, North Carolina
June 20, 2001
FOR VALUE RECEIVED, SONIC AUTOMOTIVE, INC., a Delaware corporation
("Borrower"), whose address is 0000 Xxxxxxxx Xxxx, Xxxxx 000, Xxxxxxxxx, Xxxxx
Xxxxxxxx 00000, promises to pay to CHRYSLER FINANCIAL COMPANY, a Michigan
limited liability company, ("Lender"), or order, at 00000 Xxxxxxxx Xxxx,
Xxxxxxxxxx, Xxxxxxxx 00000-0000 or at such other place as Lender may from time
to time in writing designate, in lawful money of the United States of America,
the principal sum of TWO HUNDRED FIFTY MILLION AND 00/100 DOLLARS
($250,000,000.00), or so much thereof as may be advanced from time to time,
together with interest, adjusted monthly, on the principal balance outstanding
from time to time (the "Principal Balance"), in like money, from the date of
this Promissory Note (this "Note"), to and including the Termination Date, at
the rate of two and fifty hundredths percent (2.50%) per annum above the LIBOR
Rate (as defined herein) in effect from time to time (the "Applicable LIBOR
Rate"):
Capitalized terms used herein and not otherwise defined herein
shall have the meaning given to such terms in the Credit Agreement dated as of
August 10, 2000, as amended by the Amended and Restated Credit Agreement dated
as of even date herewith, among Borrower, the Lender and certain other lender
parties thereto, and Ford Motor Credit Company, a Delaware corporation, as Agent
for all lender parties (the "Agreement").
Xxxxxxxx promises to pay interest on the unpaid principal balance
outstanding until such principal amount is paid in full, at the Applicable LIBOR
Rate, and payable at such times as are specified in the Agreement.
Both principal and interest are payable in lawful money of the United
States of America to the Agent under the Agreement, in same day funds. Each
Advance owing to the Lender by the Borrower, and all payments made on account of
principal thereof, shall be recorded by the Lender and, prior to any transfer
hereof, endorsed on the grid attached hereto, which is part of this Note;
provided, however, that the failure of the Lender to make any such recordation
or endorsement will not affect the Obligations of the Borrower under this Note.
This Note is one of the Notes referred to in, and is entitled to the
benefits of, the Agreement. The Agreement, among other things, (i) provides for
the making of Advances by the Lender to or for the benefit of the Borrower from
time to time in an aggregate amount not to exceed at any time outstanding the
U.S. dollar amount first above mentioned, the indebtedness of the Borrower
resulting from each such Advance being evidenced by this Note, and (ii) contains
provisions for acceleration of the maturity hereof upon the happening of certain
stated events and also for prepayments on account of principal hereof prior to
the maturity hereof
upon the terms and conditions therein specified. The Obligations of
Borrower under this Note and the Loan Documents, and the obligations of the
Dealership Guarantors and any other parties to the loan are secured by the
Collateral as provided in the Loan Documents.
In no circumstance may the aggregate principal amount of all Advances
(as defined in the Agreement) outstanding under the Notes (as defined in the
Agreement) exceed the aggregate amount of all Lender's Commitments (as more
specifically set forth in the Agreement.
IN WITNESS WHEREOF, Xxxxxxxx, intending to be legally bound hereby,
has duly executed this Note under seal, the day and year first above written.
SONIC AUTOMOTIVE, INC.,
a Delaware corporation
By: /s/ XXXXXXXX X. XXXXXX (SEAL)
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Name: Xxxxxxxx X. Xxxxxx
Title: Vice President
[SIGNATURE PAGE TO PROMISSORY NOTE]
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