1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
(AMENDMENT NO. 6)
Under the Securities Exchange Act of 1934
AutoZone, Inc.
- --------------------------------------------------------------------------------
(Name of Issuer)
Common Stock, par value $.01 per share
- --------------------------------------------------------------------------------
(Title of Class of Securities)
053332-10-2
-----------------------------------------------------------
(CUSIP Number)
Janice V. Sharry, Esq.
Haynes and Boone, LLP
901 Main Street, Suite 3100
Dallas, Texas 75202
(214) 651-5562
- --------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
October 10, 2000
-----------------------------------------------------------
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of Sections 240.13d-1(e), (f) or (g), check the following box
[ ].
Note: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See Section 240.13d- 7(b) for
other parties to whom copies are to be sent.
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
2
SCHEDULE 13D
- ----------------------
CUSIP No. 053332-10-2
- ----------------------
- --------------------------------------------------------------------------------
NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
1
ESL Partners, L.P., a Delaware limited partnership
22-2875193
- --------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [ ]
2
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SEC USE ONLY
3
- --------------------------------------------------------------------------------
SOURCE OF FUNDS
4
WC
- --------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e) [ ]
5
N/A
- --------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Delaware
- --------------------------------------------------------------------------------
SOLE VOTING POWER
7
10,775,083
NUMBER OF ---------------------------------------------------
SHARES SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY 0
EACH ---------------------------------------------------
REPORTING SOLE DISPOSITIVE POWER
PERSON 9
WITH 10,775,083
---------------------------------------------------
SHARED DISPOSITIVE POWER
10
0
- --------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
11 PERSON
21,762,643
- --------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
12 CERTAIN SHARES [ ]
N/A
- --------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
17.07%(1)
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
- --------------------------------------------------------------------------------
(1) Based on 127,460,964 shares of Common Stock issued and outstanding as of
June 6, 2000, as disclosed in the Issuer's 10-Q filed with the Securities
and Exchange Commission on June 20, 2000.
3
- ----------------------
CUSIP No. 053332-10-2
- ----------------------
- --------------------------------------------------------------------------------
NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
1
ESL Limited, a Bermuda corporation
- --------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [ ]
2
- --------------------------------------------------------------------------------
SEC USE ONLY
3
- --------------------------------------------------------------------------------
SOURCE OF FUNDS
4
WC
- --------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e) [ ]
5
N/A
- --------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Bermuda
- --------------------------------------------------------------------------------
SOLE VOTING POWER
7
2,645,021
NUMBER OF ---------------------------------------------------
SHARES SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY 0
EACH ---------------------------------------------------
REPORTING SOLE DISPOSITIVE POWER
PERSON 9
WITH 2,645,021
---------------------------------------------------
SHARED DISPOSITIVE POWER
10
0
- --------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
11 PERSON
21,762,643
- --------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
12 CERTAIN SHARES [ ]
N/A
- --------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
17.07%(1)
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
CO
- --------------------------------------------------------------------------------
(1) Based on 127,460,964 shares of Common Stock issued and outstanding as of
June 6, 2000, as disclosed in the Issuer's 10-Q filed with the Securities
and Exchange Commission on June 20, 2000.
4
- ----------------------
CUSIP No. 053332-10-2
- ----------------------
- --------------------------------------------------------------------------------
NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
1
ESL Institutional Partners, L.P., a Delaware limited partnership
06-1456821
- --------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [ ]
2
- --------------------------------------------------------------------------------
SEC USE ONLY
3
- --------------------------------------------------------------------------------
SOURCE OF FUNDS
4
WC
- --------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e) [ ]
5
N/A
- --------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Delaware
- --------------------------------------------------------------------------------
SOLE VOTING POWER
7
348,528
NUMBER OF ---------------------------------------------------
SHARES SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY 0
EACH ---------------------------------------------------
REPORTING SOLE DISPOSITIVE POWER
PERSON 9
WITH 348,528
---------------------------------------------------
SHARED DISPOSITIVE POWER
10
0
- --------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
11 PERSON
21,762,643
- --------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
12 CERTAIN SHARES [ ]
N/A
- --------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
17.07%(1)
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
- --------------------------------------------------------------------------------
(1) Based on 127,460,964 shares of Common Stock issued and outstanding as of
June 6, 2000, as disclosed in the Issuer's 10-Q filed with the Securities
and Exchange Commission on June 20, 2000.
5
- ----------------------
CUSIP No. 053332-10-2
- ----------------------
- --------------------------------------------------------------------------------
NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
1
Acres Partners, L.P., a Delaware limited partnership
06-1458694
- --------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [ ]
2
- --------------------------------------------------------------------------------
SEC USE ONLY
3
- --------------------------------------------------------------------------------
SOURCE OF FUNDS
4
WC
- --------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e) [ ]
5
N/A
- --------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Delaware
- --------------------------------------------------------------------------------
SOLE VOTING POWER
7
6,867,928
NUMBER OF ---------------------------------------------------
SHARES SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY 0
EACH ---------------------------------------------------
REPORTING SOLE DISPOSITIVE POWER
PERSON 9
WITH 6,867,928
---------------------------------------------------
SHARED DISPOSITIVE POWER
10
0
- --------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
11 PERSON
21,762,643
- --------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
12 CERTAIN SHARES [ ]
N/A
- --------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
17.07%(1)
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
- --------------------------------------------------------------------------------
(1) Based on 127,460,964 shares of Common Stock issued and outstanding as of
June 6, 2000, as disclosed in the Issuer's 10-Q filed with the Securities
and Exchange Commission on June 20, 2000.
6
- ----------------------
CUSIP No. 053332-10-2
- ----------------------
- --------------------------------------------------------------------------------
NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
1
Marion Partners, L.P., a Delaware limited partnership
06-1527654
- --------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [ ]
2
- --------------------------------------------------------------------------------
SEC USE ONLY
3
- --------------------------------------------------------------------------------
SOURCE OF FUNDS
4
WC
- --------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e) [ ]
5
N/A
- --------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Delaware
- --------------------------------------------------------------------------------
SOLE VOTING POWER
7
1,124,840
NUMBER OF ---------------------------------------------------
SHARES SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY 0
EACH ---------------------------------------------------
REPORTING SOLE DISPOSITIVE POWER
PERSON 9
WITH 1,124,840
---------------------------------------------------
SHARED DISPOSITIVE POWER
10
0
- --------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
11 PERSON
21,762,643
- --------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
12 CERTAIN SHARES [ ]
N/A
- --------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
17.07%(1)
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
- --------------------------------------------------------------------------------
(1) Based on 127,460,964 shares of Common Stock issued and outstanding as of
June 6, 2000, as disclosed in the Issuer's 10-Q filed with the Securities
and Exchange Commission on June 20, 2000.
7
- ----------------------
CUSIP No. 053332-10-2
- ----------------------
- --------------------------------------------------------------------------------
NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
1
Edward S. Lampert
- --------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [ ]
2
- --------------------------------------------------------------------------------
SEC USE ONLY
3
- --------------------------------------------------------------------------------
SOURCE OF FUNDS
4
OO
- --------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e) [ ]
5
N/A
- --------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
U.S.
- --------------------------------------------------------------------------------
SOLE VOTING POWER
7
1,243
NUMBER OF ---------------------------------------------------
SHARES SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY 0
EACH ---------------------------------------------------
REPORTING SOLE DISPOSITIVE POWER
PERSON 9
WITH 1,243
---------------------------------------------------
SHARED DISPOSITIVE POWER
10
0
- --------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
11 PERSON
21,762,643
- --------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
12 CERTAIN SHARES [ ]
N/A
- --------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13 17.07%(1)
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
- --------------------------------------------------------------------------------
(1) Based on 127,460,964 shares of Common Stock issued and outstanding as of
June 6, 2000, as disclosed in the Issuer's 10-Q filed with the Securities
and Exchange Commission on June 20, 2000.
8
This Amendment No. 6 to Schedule 13D (this "Amendment No. 6") amends
and supplements the Schedule 13D (as previously amended) filed by ESL Partners,
L.P., a Delaware limited partnership ("ESL"), ESL Limited, a Bermuda corporation
("Limited"), ESL Institutional Partners, L.P., a Delaware limited partnership
("Institutional"), Acres Partners, L.P., a Delaware limited partnership
("Acres"), Marion Partners, L.P., a Delaware limited partnership ("Marion"), and
Edward S. Lampert, a U.S. citizen ("Mr. Lampert"), by furnishing the information
set forth below. ESL, Limited, Institutional, Acres, Marion and Mr. Lampert are
collectively defined in this Amendment as the "Filing Persons." Unless set forth
below, all previous Items are unchanged. Capitalized terms used herein which are
not defined herein have the meanings given to them in the Schedule 13D
previously filed with the Securities and Exchange Commission.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
Item 3 is hereby amended as follows:
Mr. Lampert, a director of the Issuer, owns an aggregate of 1,243
Shares, which he received directly from the Issuer pursuant to the Issuer's
director compensation plan.
ITEM 4. PURPOSE OF TRANSACTION.
Item 4 is hereby amended as follows:
ESL Investments, Inc., on behalf of itself and its affiliates
(including the Filing Persons) has entered into a Letter Agreement, attached as
Exhibit 2 and incorporated by reference, with the Company in connection with the
Board of Directors' decision to terminate the recently adopted rights plan. This
Letter Agreement, dated as of October 10, 2000, provides that to the extent the
Filing Persons acquire additional shares of the Company after October 20, 2000
(the date the rights plan expires) and before April 1, 2004, the Filing Persons
have agreed to not vote (or issue written consents with respect to) such shares
prior to April 1, 2004, unless the Board of Directors otherwise permits.
The Filing Persons intend to continue to closely monitor corporate
governance matters at the Company and may also communicate with other
shareholders to share and elicit views regarding the corporate governance of the
Issuer.
Mr. Lampert has communicated to members of management and other
directors that the best interests of the shareholders will be served by the
Issuer improving its operating plan and executing on its strategic
opportunities. Mr. Lampert strongly believes, and has communicated this belief
to the other directors, that an extraordinary transaction, involving either a
change of control or the issuance of additional equity securities, when the
market does not fully reflect the Issuer's potential, would not be in the best
interests of the Issuer's shareholders. The Filing Persons intend to continue to
evaluate their alternatives as circumstances develop.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
Item 5 is hereby amended as follows:
9
(a) Pursuant to that certain Joint Filing Agreement, entered into by
and among the Filing Persons, dated as of October 10, 2000, each of ESL,
Limited, Institutional, Acres, Marion and Mr. Lampert may be deemed to
beneficially own 21,762,643 Shares (which is approximately 17.07% of the Shares
outstanding as of June 6, 2000, as disclosed in the Issuer's 10-Q filed with the
Securities and Exchange Commission on June 20, 2000).
(b)
Sole Shared Sole Shared
Voting Voting Dispositive Dispositive
Power Power Power Power
--------------- ------------- ---------------- ------------
ESL Partners, L.P. 10,775,083 0 10,775,083 0
ESL Limited 2,645,021 0 2,645,021 0
ESL Institutional Partners, L.P. 348,528 0 348,528 0
Acres Partners, L.P. 6,867,928 0 6.867,928 0
Marion Partners, L.P. 1,124,840 0 1,124,840 0
Edward S. Lampert 1,243 0 1,243 0
(c) Since the most recent filing on Schedule 13D, the only transaction
in the Shares was an additional 661 Shares issued to Mr. Lampert pursuant to Mr.
Lampert's role as a director of the Issuer since December 9, 1999, and pursuant
to the Issuer's director compensation plan.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO
SECURITIES OF THE ISSUER.
Item 6 is hereby amended as follows:
Except as set forth in Item 4 and Item 5 hereof, there are no
contracts, arrangements, understandings or relationships between ESL, Limited,
Institutional, Acres, Marion, Mr. Lampert or any other person with respect to
the securities of the Issuer.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
Item 7 is hereby amended in its entirety as follows:
Exhibit 1. Joint Filing Agreement, dated as of October 10, 2000,
entered into by and among ESL, Limited, Institutional, Acres, Marion and Mr.
Lampert.
Exhibit 2. Letter Agreement, dated as of October 10, 2000, entered into
by and among ESL Investments, Inc. and AutoZone, Inc.
10
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this Amendment No. 6 is true, complete
and correct.
Date: October 10, 2000
ESL PARTNERS, L.P.
By: RBS Partners, L.P., its general
partner
By: ESL Investments, Inc., its general
partner
By: /s/ EDWARD S. LAMPERT
-----------------------------
Edward S. Lampert
Chairman
ESL LIMITED
By: ESL Investment Management, LLC,
its investment manager
By: /s/ EDWARD S. LAMPERT
-----------------------------
Edward S. Lampert
Managing Member
ESL INSTITUTIONAL PARTNERS, L.P.
By: RBS Investment Management, LLC,
its general partner
By: /s/ EDWARD S. LAMPERT
-----------------------------
Edward S. Lampert
Managing Member
ACRES PARTNERS, L.P.
By: ESL Investments, Inc., its general
partner
By: /s/ EDWARD S. LAMPERT
-----------------------------
Edward S. Lampert
Chairman
11
MARION PARTNERS, L.P.
By: ESL Investments, Inc., its general
partner
By: /s/ EDWARD S. LAMPERT
------------------------------
Edward S. Lampert
Chairman
/s/ EDWARD S. LAMPERT
----------------------------------
EDWARD S. LAMPERT
12
INDEX TO EXHIBITS
EXHIBIT
NUMBER DESCRIPTION
- ------- -----------
1 Joint Filing Agreement, dated as of October 10, 2000, entered
into by and among ESL Partners, L.P., ESL Limited, ESL
Institutional Partners, L.P., Acres Partners, L.P., Marion
Partners, L.P. and Edward S. Lampert.
2 Letter Agreement, dated as of October 10, 2000, entered into
by and among ESL Investments, Inc. and Autozone, Inc.
1
EXHIBIT 1
JOINT FILING AGREEMENT
In accordance with Rule 13d-1(k) promulgated under the Securities Exchange
Act of 1934, as amended, the persons named below agree to the joint filing on
behalf of each of them a Statement on Schedule 13D (including amendments
thereto) with regard to the common stock of AutoZone, Inc., and further agree
that this Joint Filing Agreement be included as an Exhibit to such joint
filings. In evidence thereof, the undersigned, being duly authorized, hereby
execute this Agreement as of the 10th day of October, 2000.
Date: October 10, 2000
ESL PARTNERS, L.P.
By: RBS Partners, L.P., its general
partner
By: ESL Investments, Inc., its general
partner
By: /s/ EDWARD S. LAMPERT
-----------------------------
Edward S. Lampert
Chairman
ESL LIMITED
By: ESL Investment Management, LLC,
its investment manager
By: /s/ EDWARD S. LAMPERT
-----------------------------
Edward S. Lampert
Managing Member
ESL INSTITUTIONAL PARTNERS, L.P.
By: RBS Investment Management, LLC,
its general partner
By: /s/ EDWARD S. LAMPERT
-----------------------------
Edward S. Lampert
Managing Member
2
ACRES PARTNERS, L.P.
By: ESL Investments, Inc., its general
partner
By: /s/ EDWARD S. LAMPERT
-----------------------------
Edward S. Lampert
Chairman
MARION PARTNERS, L.P.
By: ESL Investments, Inc., its general
partner
By: /s/ EDWARD S. LAMPERT
------------------------------
Edward S. Lampert
Chairman
/s/ EDWARD S. LAMPERT
----------------------------------
EDWARD S. LAMPERT
1
EXHIBIT 2
LETTER AGREEMENT
AUTOZONE, INC.
123 SOUTH FRONT STREET
MEMPHIS, TENNESSEE 38103-3607
October 10, 2000
ESL Investments, Inc.
One Lafayette Place
Greenwich, Connecticut 06830
Ladies and Gentlemen:
The purpose of this letter, which shall be a binding agreement
between us upon its execution by ESL Investments, Inc., a Delaware corporation
("ESL"), is to set forth the agreement between AutoZone, Inc., a Nevada
corporation (the "Company"), and ESL concerning the voting of certain shares of
the Company's stock not currently owned by ESL.
The Company will terminate its Rights Agreement, dated as of
March 21, 2000 (the "Rights Agreement"), by amending the Rights Agreement's
expiration date to October 20, 2000. ESL, on behalf of itself and each of its
affiliates (as such term is defined in Rule 12b-2 under the Securities Exchange
Act of 1934, as amended), agrees to take such action as may be required to
ensure that during the period from October 20, 2000 through April 1, 2004,
without the prior written consent of the Company, any shares of common stock of
the Company acquired by ESL or any of its affiliates after October 20, 2000 and
before April 1, 2004 (the "Acquired Shares") are not voted on any matter
presented at any meeting of shareholders of the Company and that no written
consent is executed with respect to any Acquired Shares for any matter presented
to the shareholders of the Company. In addition, during such period, ESL, on
behalf of itself and each of its affiliates, agrees to use all reasonable
efforts to provide for the Acquired Shares to be present for determining a
quorum at all shareholder meetings of the Company. The term "Acquired Shares"
shall not include any securities received by ESL or any of its affiliates
directly from the Company. This letter agreement shall not affect ESL's voting
rights with respect to shares held by ESL or any of its affiliates that are not
Acquired Shares.
If this letter is countersigned by ESL and becomes a binding
agreement, the Company and ESL agree that this agreement shall be governed by,
and construed in accordance with the internal laws of the state of Nevada,
without giving effect to the principles of conflicts of laws thereof. In
addition, we each acknowledge that money damages are an inadequate remedy for
breach of this agreement because of the difficulty of ascertaining the amount of
damage that will be suffered in the event that such agreement were breached.
Therefore, we each agree that the parties to this agreement may obtain specific
performance of such agreement and injunctive or other equitable relief as a
remedy for any such breach, and each party further waives any requirement for
the securing or posting of any bond in connection with any such remedy. Such
2
remedy shall not be deemed to be the exclusive remedy for breach of this
agreement, but shall be in addition to all other remedies available at law or at
equity. In the event that either party to this agreement believes that the other
party is in breach of this agreement, prior to commencing any litigation with
respect to such breach, the non-breaching party shall give written notice of the
alleged breach to the breaching party and provide the breaching party with a
reasonable opportunity to respond. This agreement may be modified or waived only
by a separate writing between the Company and ESL expressly so modifying or
waiving such agreement.
If you are in agreement with the foregoing, please so indicate
by signing and returning one copy of this letter, which will constitute our
agreement with respect to the matters set forth herein.
Very truly yours,
AUTOZONE, INC.
By: /s/ HARRY L. GOLDSMITH
-----------------------------------
Name: Harry L. Goldsmith
Title: Sr. V.P. & Secretary
By: /s/ ROBERT J. HUNT
-----------------------------------
Name: Robert J. Hunt
Title: Executive V.P. & CFO
Confirmed and agreed to as of the
date first above written, upon which
this shall become a binding agreement:
ESL INVESTMENTS, INC.,
on behalf of itself and its affiliates
By: /s/ WILLIAM C. CROWLEY
------------------------------------
Name: William C. Crowley
Title: President
