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EXHIBIT 4.1    
    

RUSH ENTERPRISES INC.

2004 EMPLOYEE STOCK PURCHASE PLAN  

        1.    Purpose of Plan.    

        The
purpose of the Rush Enterprises Inc. Employee Stock Purchase Plan (the "Plan") is to advance the interests of Rush Enterprises Inc., a Texas corporation (the
"Company"), and its shareholders by providing employees of the Company and its subsidiaries with an opportunity to acquire an ownership interest in the Company through the purchase of common stock of
the Company on favorable terms through payroll deductions. It is the intention of the Company that the Plan qualify as an "employee stock purchase plan" under Section 423 of the Internal
Revenue Code of 1986, as amended (the "Code"), and provisions of the Plan shall be construed consistent with such intention. 

        2.    Definitions.    

        The
following terms will have the meanings set forth below, unless the context clearly otherwise requires: 

        2.1   "Agent" means the party or parties designated by the Company to provide Share Accounts and certain administrative
services in connection with the Plan. 

        2.2   "Board" means the Board of Directors of the Company or any committee thereof to which the Board of Directors has
delegated authority with respect to the Plan. 

        2.3   "Common Stock" means the Class A common stock, par value $.01 per share, of the Company, or the number and kind of
shares of stock or other securities into which such common stock may be changed in accordance with Section 11 of the Plan. 

        2.4   "Committee" means the Compensation Committee of the Board, or such successor committee that meets the criteria specified
in Section 3. 

        2.5   "Contribution Account" means an account established for each Participant to which payroll deductions under the Plan are
credited in accordance with Section 7. 

        2.6   "Employee" means any person, including an officer, who is employed on a full-time or part-time
basis by the Company or any of its Subsidiaries. 

        2.7   "Ending Date" means the last day of each Offering Period. 

        2.8   "Exchange Act" means the Securities Exchange Act of 1934, as amended. 

        2.9   "Fair Market Value" means, with respect to the Common Stock, as of any date: 

        (a)   if
the Common Stock is listed on the NASDAQ, the closing price per share of the Common Stock, at the end of the regular trading session, which as of the effective date
of this Plan is 4:00 p.m., New York City time, as reported on the NASDAQ Composite Tape on that date (or, if no shares were traded on such day, as of the first day prior thereto on which there
was such a trade); or 

        (b)   if
the Common Stock is not so listed, such price as is determined in the manner specified by the Committee in its sole discretion, such manner to be acceptable under
Section 423 of the Code. 

        2.10 "Grant Date" means the first day of each Offering Period. 

        2.11 "Insider" means any Employee who is subject to Section 16 of the Exchange Act. 

        2.12 "Offering Period" means each six-month period beginning on January 1 and ending on June 30, or
beginning on July 1 and ending on December 31. 

        2.13 "Participant" means an eligible Employee who elects to participate in the Plan in accordance with Section 6. 

        2.14 "Share Account" means the brokerage account established by the Agent for each Participant to which shares of Common
Stock purchased under the Plan are credited in accordance with Section 9. The Share Account will be established pursuant to a separate agreement between each Participant and the Agent. 

        2.15 "Subsidiary" means any subsidiary corporation of the Company within the meaning of Section 424(f) of the Code. 

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        3.    Administration.    

        The
Plan shall be administered by the Committee (or any successor thereto appointed by the Board consisting of not less than three members, all of whom must be members of the Board who
are "Non-Employee Directors" as defined in Rule 16b-3 under the Exchange Act). Members of the Committee shall be appointed from time to time by the Board, shall serve at
the pleasure of the Board, and may resign at any time upon written notice to the Board. A majority of the members of the Committee shall constitute a quorum. The Committee shall act by majority
approval of the members, but action may be taken by the Committee without a meeting if unanimous written consent is given. In accordance with and subject to the provisions of the Plan, the Committee
shall have authority to interpret the Plan, to make, amend and rescind rules and regulations regarding the Plan (including rules and regulations intended to insure that operation of the Plan complies
with Section 16 of the Exchange Act), and to make all other determinations necessary or advisable in administering the Plan, all of which determinations shall be final and binding upon all
persons. No member of the Committee shall be liable for any action or determination made in good faith with respect to the Plan or any option granted under it. To the extent consistent with corporate
law, the Committee may delegate to any directors or officers of the Company the duties, power and authority of the Committee under the Plan pursuant to such conditions or limitations as the Committee
may establish; provided, however, that only the Committee may exercise such duties, power and authority with respect to Insiders. The Committee may request advice or assistance or retain the services
of such other persons as are necessary for the proper administration of the Plan. 

        4.    Eligibility.    

        Any
person who is (a) an Employee on the last day of the calendar month immediately preceding a Grant Date, (b) is not on long-term disability or unpaid leave
status at that time, and (c) has reached the age of majority in the state or province in which he or she resides shall be eligible to participate in the Plan for the Offering Period beginning
on such Grant Date, subject to the limitations imposed by Section 423(b) of the Code. 

        5.    Offering Periods.    

        Options
to purchase shares of Common Stock shall be granted to Participants under the Plan through a series of consecutive Offering Periods. The first Offering Period under the Plan
shall have a Grant Date of July 1, 2004 and an Ending Date of December 31, 2004. Offering Periods under the Plan shall continue until either (a) the
Committee decides, in its sole discretion, to cancel future Offering Periods because the Common Stock remaining available under the Plan is insufficient to grant options to all eligible Employees, or
(b) the Plan is terminated in accordance with Section 17 below. Notwithstanding the foregoing, and without limiting the authority of the Committee under Section 3, 11.2 and 17 of
the Plan, the Committee, in its sole discretion, may (a) accelerate the Ending Date of the then current Offering Period and provide for the exercise of Options thereunder by Participants in
accordance with Section 9 of the Plan, or (b) accelerate the Ending Date of the then current Offering Period and provide that all payroll deductions credited to the accounts of
Participants will be paid to Participants as soon as practicable after such Ending Date and that all Options for such Offering Period will automatically be canceled and will no longer be exercisable. 

        6.    Participation.    

        Participation
in the Plan is voluntary. An eligible Employee may become a Participant in the Plan by completing an enrollment form provided by the Company authorizing payroll deductions
and the establishment of a Share Account, and filing the enrollment form with the Company's Human Resources Department not later than the last business day of the month immediately preceding the Grant
Date of the first Offering Period in which the Participant wishes to participate. 

        7.    Payroll Deductions.    

        7.1   Each
Employee electing to participate in the Plan shall designate on the enrollment form the amount of money which he or she wishes to have deducted from his or her
paycheck each pay day to purchase Common Stock pursuant to the Plan. The aggregate amount of such payroll deductions shall not be less than $25.00 per month, and shall not be more than $10,625.00 (85%
of $12,500.00) per Offering Period, pro-rated equally over the number of pay days applicable to a Participant during each such Offering Period. Deductions for Plan purposes will not be
withheld from compensation amounts, such as annual bonus or gain sharing payments, that are not part of a Participant's normal and recurring compensation each payday. 

        7.2   Payroll
deductions for a Participant shall commence on the first pay day on or after the Grant Date of the applicable Offering Period and shall continue until the
termination date of the Plan, unless participation in the 

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Plan
is sooner terminated as provided in Section 10, the deduction amount is increased or decreased by the Participant as provided in Section 7.4, deductions are suspended as provided in
Section 7.4 or the Offering Period is adjusted by the Committee as provided in Section 5. Except for a Participant's rights to change the amount of, suspend or discontinue deductions
pursuant to Sections 7.4 and 10, the same deduction amount shall be utilized for each pay day during subsequent Offering Periods, whether or not the Participant's compensation level increases
or decreases. If the pay period of any Participant changes, such as from weekly to semi-monthly, an appropriate adjustment shall be made to the deduction amount for each pay day
corresponding to the new pay period, if necessary, so as to ensure the deduction of the proper amount as specified by the Participant in his or her enrollment form for that Offering Period. 

        7.3   All
payroll deductions authorized by a Participant shall be credited to the Participant's Contribution Account. A Participant may not make any separate cash payment or
contribution to such Contribution Account. Contribution Accounts shall be solely for bookkeeping purposes, and no separate fund or trust shall be established for payroll deductions. Until utilized to
purchase shares of Common Stock, funds from payroll deductions shall be held as part of the Employers' general assets, and the Employers shall not be obligated to segregate such funds. No interest
shall accrue on a Participant's payroll deductions under the Plan. 

        7.4   No
increases or decreases in the amount of payroll deductions for a Participant may be made during an Offering Period. A Participant may increase or decrease the amount
of his or her payroll deductions under the Plan, or may suspend such payroll deductions, for subsequent Offering Periods by completing a change form and filing it with the Company's Human Resources
Department not later than the last business day of the month immediately preceding the Grant Date for the Offering Period as of which such increase, decrease or suspension is to be effective. 

        7.5   Payroll
deductions which are authorized by Participants who are paid other than in U.S. currency shall be withheld in Contribution Accounts in the country in which such
Participant is employed until exercise of an option granted hereunder. Upon exercise of the option granted to such Participant, the amount so withheld shall be converted into U.S. dollars on the basis
of the rate of exchange published in the Wall Street Journal for such currency into U.S. dollars as of the business day immediately preceding the Ending
Date for such Offering Period. The purchase price shall thereupon be paid to the Company in U.S. dollars following such conversion, the extent to which the Participant may exercise an option therefore
being dependent, in part, upon the applicable rate of currency exchange. If, as a result of fluctuations in the exchange rate between the U.S. dollar and a foreign currency during an Offering Period,
a Participant who is paid in such foreign currency has less than the minimum permitted amount deducted during an Offering Period, the amount deducted will, nevertheless, be used to purchase Common
Stock in accordance with the Plan. 

        8.    Grant of Option.    

        8.1   Subject
to Section 8.2, on each Grant Date, each eligible Employee who is then a Participant shall be granted (by operation of the Plan) an option to purchase the
number of whole and fractional shares (computed to the fourth decimal place) of Common Stock equal to the lesser of (a) the amount determined by dividing the amount of payroll deductions
credited to his or her Contribution Account during the Offering Period beginning on such Grant Date by the Purchase Price specified in the following sentence, or (b) the amount determined by
dividing $12,500.00 by the Fair Market Value of one share of Common Stock on the applicable Grant Date. The purchase price per share of such shares (the "Purchase Price") shall be the lesser of
(i) 85% of the Fair Market Value of one share of Common Stock on the applicable Grant Date, or (ii) 85% of the Fair Market Value of one share of Common Stock on the applicable Ending
Date. 

        8.2   Despite
any provisions of the Plan that may provide or suggest otherwise: 

	(a)
	no
Employee shall be granted an option under the Plan to the extent that immediately after the grant, such Employee (or any other person whose stock ownership would be attributed to
such Employee pursuant to Section 424(d) of the Code) would own shares of Common Stock and/or hold outstanding options to purchase shares of Common Stock that would in the aggregate represent
5% or more of the total combined voting power or value of all classes of shares of the Company or of any Subsidiary;

	(b)
	no
Employee shall be granted an option under the Plan to the extent that the Employee's rights to purchase shares of Common Stock under all "employee stock purchase plans" (within the
meaning of Section 423 of the Code) of the Company and its Subsidiaries would accrue (i.e., become exercisable) at a rate that exceeds $25,000 of Fair Market Value of such shares of Common
Stock (determined at the 

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time
such option is granted, which is the Grant Date) for each calendar year in which such option is outstanding at any time; or 

	(c)
	no
Participant may purchase more than 10,000 shares of Common Stock under the Plan in any given Offering Period. 

        9.    Exercise of Option.    

        9.1   Unless
a Participant withdraws from the Plan pursuant to Section 10, his or her option for the purchase of shares of Common Stock granted for an Offering Period
will be exercised automatically and in full at the applicable Purchase Price as soon as practicable following the Ending Date of such Offering Period. If the full amount credited to a Participant's
Contribution Account during an Offering Period is not required to exercise such Participant's option for that Offering Period in full (due to the applicability of clause (b) of
Section 8.1 and/or fluctuations in the exchange rate between the U.S. dollar and the foreign currency in which such Participant is paid), the amount not required to exercise such option shall
promptly be refunded to the Participant following the Ending Date of such Offering Period. 

        9.2   No
Participant (or any person claiming through such Participant) shall have any interest in any Common Stock subject to an option under the Plan until such option has
been exercised and the shares of Common Stock purchased, at which point such Participant shall have all of the rights and privileges of a shareholder of the Company with respect to shares purchased
under the Plan. During his or her lifetime, a Participant's option to purchase shares of Common Stock under the Plan is exercisable only by the Participant. 

        9.3   Shares
of Common Stock purchased pursuant to the exercise of options hereunder shall be held in Share Accounts maintained for and in the name of each Participant by the
Agent, such Agent or its nominee to be the record holder of such shares for the benefit of the Participant. The Agent shall provide each Participant with a quarterly statement of his or her Share
Account. 

        9.4   Dividends
paid with respect to shares credited to each Share Account will be themselves credited to such Account and, if paid in cash, will automatically be reinvested
in whole and fractional shares of Common Stock. 

        9.5   A
Participant may request that the Agent cause a stock certificate representing some or all of the number of whole shares of Common Stock credited to the Participant's
Share Account be issued in the name of the Participant. The Agent shall cause suchcertificate to be issued as soon as practicable after its receipt of such request and the payment by the Participant
of any applicable issuance fees. From and after the date of the issuance of any such certificate, the number of shares credited to the Participant's Share Account shall be reduced by the number of
shares represented by such certificate, and the Participant shall thereafter be the record holder of the shares represented by such certificate. 

        10.    Withdrawal; Termination of Employment.    

        10.1 A
Participant may terminate his or her participation in the Plan and withdraw all, but not less than all, of the payroll deductions credited to his or her Contribution
Account under the Plan at any time on or before the last business day of an Offering Period by giving written notice to the Company. Such notice shall (a) state that the Participant wishes to
terminate participation in the Plan, (b) specify the withdrawal date, and (c) request the withdrawal of all of the Participant's payroll deductions held under the Plan. All of the
Participant's payroll deductions credited to his or her Contribution Account will be paid to the Participant as soon as practicable after the withdrawal date specified in the notice of withdrawal (or,
if no such date is specified, as soon as practicable after receipt of the notice of withdrawal), the Participant's option for such Offering Period will be automatically canceled, and no further
payroll deductions for the purchase of shares of Common Stock will be made for such Offering Period or for any subsequent Offering Period, except pursuant to a re-enrollment in the Plan as
provided in Section 10.2. 

        10.2 If
a Participant's suspension of payroll deductions under the Plan pursuant to Section 7.4 continues for four consecutive Offering Periods, such suspension shall
be deemed an election by the Participant to terminate his or her participation in the Plan, and such termination shall be effective as of the Ending Date of the second consecutive Offering Period
during which no payroll deductions occurred. If, for any reason, a Participant's net pay after withholding taxes and other applicable deductions not related to the Plan (such as for health and welfare
benefits) each pay day becomes less than the amount the Participant has designated be deducted each pay day for contribution to the Plan, such occurrence shall be deemed an election by the Participant
to terminate his or her participation in the Plan, and such termination shall be effective immediately. Following such termination, all of the Participant's payroll deductions credited to his or her
Contribution Account will be paid to the Participant as 

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soon
as practicable, the Participant's option for such Offering Period will be automatically canceled, and no further payroll deductions for the purchase of shares of Common Stock will be made for
such Offering Period or for any subsequent Offering Period, except pursuant to a re-enrollment in the Plan as provided in Section 10.4. 

        10.3 Upon
termination of a Participant's employment with the Employer for any reason, including retirement or death, his or her participation in the Plan will automatically
cease and the payroll deductions accumulated in his or her Contribution Account will be returned to the Participant as soon as practicable after such employment termination or, in the case of death,
to the person or persons entitled thereto under Section 12 below, and the Participant's option for the current Offering Period will be automatically canceled. For purposes of the Plan, the
termination date of employment shall be the Participant's last date of actual employment and shall not include any period during which such Participant receives any severance payments. 

        10.4 A
Participant's termination of participation in the Plan pursuant to Section 10.1 or 10.2 will not have any effect upon his or her eligibility to participate in
a subsequent Offering Period by completing and filing a new enrollment form in accordance with Section 6 or in any similar plan that may hereafter be adopted by the Company. 

        11.    Stock Subject to the Plan.    

        11.1 The
maximum number of shares of Common Stock that shall be reserved for sale under the Plan shall be 600,000 shares, subject to adjustment as provided in
Sections 11.2 and 11.3. The shares to be sold to Participants under the Plan may be, at the election of the Company, either treasury shares or shares authorized but unissued. If the total
number of shares of Common Stock that would otherwise be subject to options granted pursuant to Section 8 on any Ending Date exceeds the number of shares then available under the Plan (after
deduction of all shares for which options have been exercised or are then outstanding), the Committee shall make a pro rata allocation of the shares of Common Stock remaining available for issuance in
as uniform and equitable a manner as is practicable, as determined in the Committee's sole discretion. In such event, the Company shall give written notice of such reduction of the number of shares
subject to the option to each Participant affected thereby and shall return any excess funds accumulated in each Participant's Contribution Account as soon as practicable after the Ending Date of such
Offering Period. 

        11.2 In
the event of any reorganization, merger, consolidation, recapitalization, liquidation, reclassification, stock dividend, stock split, combination of shares, rights
offering, divestiture or extraordinary dividend (including a spin-off) or any other similar change in the corporate structure or shares of the Company, the Committee (or, if the Company is
not the surviving corporation in any such transaction, the board of directors of the surviving corporation) will make appropriate adjustments (which determination will be conclusive) as to the number
and kind of securities or other property (including cash) available for issuance or payment under the Plan and, in order to prevent dilution or enlargement of the rights of Participants,
(a) the number and kind of securities or other property (including cash) subject to each outstanding option, and (b) the Purchase Price of outstanding options. 

        11.3 Subject
to the following provisions of this Section 11.3, if the Company is the surviving corporation in any reorganization, merger or consolidation with or
involving one or more other corporations, each outstanding option under the Plan shall apply to the amount and kind of securities to which a holder of the number of shares of Common Stock subject to
such option would have been entitled immediately following such reorganization, merger or consolidation, with a corresponding proportionate adjustment of the Purchase Price. If there is a
(a) dissolution or liquidation of the Company, (b) merger, consolidation or reorganization of the Company with one or more other corporations in which the Company is not the surviving
corporation, (c) sale of all or substantially all of the assets of the Company to another person or entity, or (d) transaction (including a merger or reorganization in which the Company
is the surviving corporation) approved by the Board that results in any person or entity owning more than 50% of the combined voting power of all classes of stock of the Company, then the Plan and all
options outstanding thereunder shall terminate, except as provided in the following sentence. If provision is made in writing in connection with such transaction for the continuation of the Plan and
either the assumption of the options theretofore granted or the substitution for such options of new options covering the stock of a successor corporation (or a parent or subsidiary thereof), in
either case with appropriate adjustments as to the number and kinds of shares and exercise prices, then the Plan shall continue in the manner and under the terms provided. If the Plan is terminated as
provided in this Section 11.3, the current Offering Period shall be deemed to have ended on the last trading day prior to such termination, and the options of each Participant then outstanding
shall be deemed to have been automatically exercised in accordance with Section 9.1 on such last trading day. The Committee shall cause written notice to be sent of an event that will result in
such a termination 

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to
all Participants not later than the time the Company gives notice thereof to its shareholders. Adjustments under this Section 11.3 shall be made by the Committee, whose determination in that
respect shall be final, binding and conclusive. 

        12.    Designation of Beneficiary.    

        12.1 A
Participant may file a written designation of a beneficiary who is to receive a cash refund of the amount, if any, from the Participant's Contribution Account
under the Plan in the event of such Participant's death at a time when cash is held for his or her account. Disposition of shares of Common Stock in a Participant's Share Account upon the
Participant's death shall be in accordance with the agreement governing the Share Account. 

        12.2 A
designation of beneficiary pursuant to Section 12.1 may be changed by the Participant at any time by written notice. In the event of the death of a Participant
in the absence of a valid designation of a beneficiary who is living at the time of such Participant's death, the Company shall deliver such cash to the executor or administrator of the estate of the
Participant; or, if no such executor or administrator has been appointed (to the knowledge of the Company), the Company in its discretion, may deliver such cash to the spouse or to any one or more
dependents or relatives of the Participant; or, if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate. 

        13.    No Right to Employment.    

        Nothing
in the Plan will interfere with or limit in any way the right of the Company or any of its subsidiaries to terminate the employment of any Employee or Participant at any time,
nor confer upon any Employee or Participant any right to continue in the employ of the Company or any of its subsidiaries. 

        14.    Rights As a Shareholder.    

        As
a holder of an Option under the Plan, a Participant will have no rights as a shareholder unless and until such Option is exercised and the Participant becomes the holder of record of
shares of Common Stock. Except as otherwise provided in the Plan, no adjustment will be made for dividends or distributions with respect to Options as to which there is a record date preceding the
date the Participant becomes the holder of record of such shares, except as the Committee may determine in its sole discretion. 

        15.    Transferability.    

        Neither
payroll deductions credited to a Participant's Contribution Account nor any rights with regard to the exercise of an option or to receive shares of Common Stock under the Plan
may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will or the laws of descent and distribution) by the Participant. Any such attempt at assignment, transfer,
pledge or other disposition shall be without effect. 

        16.    Conditions of Sale.    

        Notwithstanding
any other provision of the Plan or any agreements entered into pursuant to the Plan, the Company will not be required to issue any shares of Common Stock under the Plan,
and a Participant may not sell, assign, transfer or otherwise dispose of shares of Common Stock issued pursuant to Options granted under the Plan, unless (a) there is in effect with respect to
such shares a registration statement under the Securities Act and any applicable state or foreign securities laws or an exemption from such registration under the Securities Act and applicable state
or foreign securities laws, and (b) there has been obtained any other consent, approval or permit from any other regulatory body that the Committee, in its sole discretion, deems necessary or
advisable. The Company may condition such issuance, sale or transfer upon the receipt of any representations or agreements from the parties involved, and the placement of any legends on certificates
representing shares of Common Stock, as may be deemed necessary or advisable by the Company in order to comply with such securities law or other restrictions. 

        17.    Amendment or Termination.    

        The
Board may suspend or terminate the Plan or any portion thereof at any time, and may amend the Plan from time to time in such respects as the Board may deem advisable in order that
Options under the Plan will conform to any change in applicable laws or regulations or in any other respect the Board may deem to be in the best interests of the Company; provided, however, that no
amendments to the Plan will be effective without approval of the shareholders of the Company if shareholder approval of the amendment is then required pursuant 

6

 

to
Section 423 of the Code or the rules of any stock exchange or similar regulatory body. Upon termination of the Plan, the Committee, in its sole discretion, may take any of the actions
described in Section 5 of the Plan. 

        18.    Notices.    

        All
notices or other communications by a Participant to the Company in connection with the Plan shall be deemed to have been duly given when received by the Senior Vice
President & CFO of the Company or by any other person designated by the Company for the receipt of such notices or other communications, in the form and at the location specified by the
Company. 

        19.    Effective Date of Plan.    

        The
Plan shall be effective as of February 25, 2004, the date it was adopted by the Board. The Plan was adopted subject to shareholder approval, which was obtained on
May 19, 2004. 

        20.    Miscellaneous.    

        The
headings to sections of the Plan have been included for convenience of reference only. The Plan shall be interpreted and construed in accordance with the laws of the State of Texas.
References in the Plan to "$" or "dollars" shall be deemed to refer to United States dollars unless the context clearly indicates otherwise. 

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EXHIBIT 4.2    
    

NON-QUALIFIED STOCK OPTION AGREEMENT  

        NON-QUALIFIED STOCK OPTION AGREEMENT dated as of March 15, 2001 between RUSH ENTERPRISES, INC., a Texas corporation (the "Company"), and
                        (the "Optionee"). 

        The
Company hereby grants to the Optionee to purchase 20,000 shares of the Company's Common Stock, $.01 par value ("Common Stock"), at the price of $4.13 per share, subject to
adjustment as provided herein (the "Option"). This Option is granted outside of and therefore shall not be subject to the terms and provisions of the Company's Amended 1997 Non-Employer
Director Stock Option Plan. This Option is a non-qualified stock option which is not intended to be governed by Section 422 of the Internal Revenue Code of 1986, as amended. 

        1.    Term.    This Option shall be for a term commencing on this date and ending ten years
from the date of grant (such date being indicated above), unless this Option is terminated earlier by reason of the Optionee's ceasing to be a director as provided in Paragraph 4 below. 

        2.    Vesting.    Each Option shall be fully exercisable as of the date of grant. 

        3.    Restrictions on Transfer.    The Option granted hereunder shall not be assignable or
transferrable by the Optionee except by will or by the laws of descent and distribution is exercisable, during the Optionee's lifetime, only by the Optionee. 

        4.    Termination.    Except as may be otherwise expressly provided herein, the Option, to the
extent it shall not previously have been exercised, shall terminate on the earlier of the following: 

	(a)
	On
the last day within the thirty day period commencing on the date on which the Optionee ceases to be a member of the Company's Board of Directors, for any reason other than the
death or disability of the Optionee or his resignation after five years of service;

	(b)
	On
the last day within the one year period commencing on the date on which the Optionee ceases to be a member of the Company's Board of Directors because of permanent disability;

	(c)
	On
the last day within the one year period commencing on the date of the Optionee's death while serving as a member of the Company's Board of Directors, during which period the
executor or administrator of the Optionee's estate or the person or persons to whom the Optionee's Option shall have been transferred by will or the laws of descent or distribution, shall be entitled
to exercise the Option in respect of the number of shares that the Optionee would have been entitled to purchase had the Optionee exercised the Option on the date of his death;

	(d)
	On
the last day within the one year period commencing on the date the Optionee, has had at least five years of service on the Board of Directors of the Company, resigns from the Board
of Directors of the Company, during which period the Optionee, or the executor or administrator of the Optionee's estate or the person or persons to whom the Option shall have been transferred by the
will or the laws of descent or distribution in the event of the Optionee's death within such one year period, as the case may be, shall be entitled to exercise the Option in respect of the number of
shares that the Optionee would have been entitled to purchase had the Optionee exercised the Option on the date of such resignation; and

	(e)
	Ten
years after the date of grant of the Option. 

        5.    Changes in the Company's Capital Structure.    In the event of any stock dividends,
stock splits, recapitalizations, combinations, exchanges of shares, mergers, consolidation, liquidations, split-ups, split-offs, spin-offs, or other similar changes
in capitalization, or any distribution to shareholders, including a rights offering, other than regular cash dividends,changes in the outstanding stock of the Company by reason of any increase or
decrease in the number of issued shares of Common Stock resulting from a split-up or consolidation of shares or any similar capital adjustment or the payment of any stock dividend, any
share repurchase at a price in excess of the market price of the Common Stock at the time such repurchase is announced or other increase or decrease in the number of such shares, the Company shall
make appropriate adjustment in the number, price or kind of shares covered by the Option; provided, however, that no such adjustment shall increase the aggregate value of the Company. 

        In
the event of any adjustment in the number of shares covered by any Option, any fractional shares resulting from such adjustment shall be disregarded and each such Option shall cover
only the number of full shares resulting from such adjustment. 

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        6.    Exercise of Options.    Payment of the purchase price of the shares of Common Stock
subject to this Option may be made (i) in any combination of cash or whole shares of Common Stock already owned by the Optionee or (ii) in shares of Common Stock withheld by the Company
from the shares of Common Stock otherwise issuable to the Optionee as a result of the exercise of this Option ("cashless exercise"). Subject to the terms and conditions of this Agreement, this Option
may be exercised by written notice to the Company at its principal office, attention of the Secretary. Such notice shall (a) state the election to exercise this Option, the number of shares in
respect of which it is being exercised and the manner of payment for such shares and (b) be signed by the person or persons so exercising this Option and, in the event such Option is being
exercised pursuant to Paragraph 4 by any person or persons other than the Optionee, accompanied by appropriate proof of the right of such person or persons to exercise this Option. Such notice
shall either (i) elect cashless exercise or be accompanied by payment of the full purchase price of such shares, in which event the Company shall issue and deliver a certificate or certificates
representing such shares as soon as practicable after the notice is received, or (ii) fix a date (not more than 10 business days from the date of such notice) for the payment of the full
purchase price of such shares at the Company's principal office, against delivery of a certificate or certificates representing such shares. Cash payments of such purchase price shall, in case of
clause (i) or (ii) above, be made by cash or check payable to the order of the Company. Common Stock payments (valued at fair market value on the date of exercise, as determined by the
Board of Directors of the Company), shall be made by delivery of stock certificates in negotiable form. All cash and Common Stock payments shall, in either case, be delivered to the Company at its
principal office, attention of the Secretary. Shares of Common Stock withheld pursuant to a cashless exercise election shall be valued at the fair market value on the date of exercise, as determined
by the Board of Directors of the Company. If certificates representing Common Stock are used to pay all or part of the purchase price of this Option, a replacement certificate shall be delivered by
the Company representing the number of shares delivered but not so used, and an additional certificate shall be delivered representing the additional shares to which the holder of this Option is
entitled as a result of the exercise of this Option. The certificate or certificates for the shares as to which this Option shall have been so exercised shall be registered in the name of the person
or persons so exercising this Option and shall be delivered as aforesaid to or upon the written order of the person or persons exercising this Option. All shares issued as provided herein will be
fully paid and nonassessable. 

        For
purposes of this Paragraph 6, the "fair market value" of a share of stock as of any particular date shall mean the closing sale price of a share of Common Stock on that date
as reported by the principal national securities exchange on which the Common Stock is listed if the Common Stock is then listed on a national securities exchange, or if the Common Stock is not so
listed, the average of the bid and asked price of a share of Common Stock on that date and reported in the National Association of Securities Dealers Automated Quotation system; provided that if no
such closing price or quotes are so reported on that date or if in the discretion of the Committee another means of determining the fair market value of a share of stock at such date shall be
necessary or advisable, the Board of Directors of the Company may provide for another means for determining such fair market value. 

        7.    Administration.    The Board of Directors of the Company shall have the power to
interpret this Agreement. All actions taken and all interpretations and determinations made by the Board of Directors of the Company shall be final and binding upon the Optionee, the Company and all
other interested persons. 

        8.    Reserves, Etc.    Shares of Common Stock delivered upon the exercise of this Option
shall, in the discretion of the Board, be either shares of Common Stock heretofore or hereafter authorized and then unissued, or previously issued shares of Common Stock heretofore or hereafter
acquired through purchase in the open market or otherwise, or some of each. The Company shall be under no obligation to reserve or to retain in its treasury any particular number of shares of Common
Stock at any time, and no particular shares, whether unissued or held as treasury shares, shall be identified as those covered by this Option. 

        9.    General Restrictions.    

	(a)
	The
Company shall not be required to sell or issue any shares under this Option if the issuance of such shares shall constitute a violation by the Optionee or the Company of any
provisions of any law or regulation of any governmental authority. This Option granted hereunder shall be subject to the requirement that, if at any time the Board shall determine that (i) the
listing, registration or qualification of the shares of Common Stock subject or related thereto upon any securities exchange or under any state or federal law, or (ii) the consent or approval
of any governmental regulatory body, or (iii) an agreement by the Optionee with respect to the disposition of shares of Common Stock is necessary or desirable (in connection with any
requirement or interpretation of any federal or state securities law, rule 

2

 

or
regulation) as a condition of, or in connection with, the granting of this Option or the issuance, purchase or delivery of shares of Common Stock thereunder, this Option may not be exercised in
whole or in part unless such listing, registration, qualification, consent, approval or agreement shall have been effected or obtained free of any conditions not acceptable to the Board. 

	(b)
	The
Optionee hereby (i) represents and warrants that any shares of Common Stock issued, transferred or delivered to, or acquired by, the Optionee pursuant to this Agreement
shall be acquired solely for the Optionee's own account for investment, and not with a view to any distribution thereof that would violate the Securities Act of 1933 (the "Securities Act") or the
applicable securities laws of any state, (ii) agrees that he will not distribute any such shares of Common Stock in violation of the Securities Act or the applicable securities laws of any
state, and (iii) acknowledges that, unless notified to the contrary by the Company, such shares of Common Stock will not have been registered under the Securities Act or the securities laws of
any state and must be held indefinitely unless subsequently registered under the Securities Act and any applicable state securities laws or unless an exemption from such registration becomes or is
available.

	(c)
	In
the event the shares issuable on exercise of this Option are not registered under the Securities Act of 1933, the Company may imprint on the certificate for such shares the
following legend or any other legend which counsel for the Company considers necessary or advisable to comply with the Securities Act of 1933: 

"The
shares of stock represented by this certificate have not been registered under the Securities Act of 1933 or under the securities laws of any state and may not be sold or transferred except upon
such registration or upon receipt by the Corporation of an opinion of counsel satisfactory, in form and substance to the Corporation, that registration is not required for such sale or transfer." 

The
Company may, but shall in no event be obligated to, register any securities covered hereby pursuant to the Securities Act of 1933 (as now in effect or as hereafter amended) and, in the event any
shares are so registered, the Company may remove any legend on certificates representing such shares. The Company shall not be obligated to take any other affirmative action in order to cause the
exercise of this Option or the issuance of shares pursuant thereto to comply with any law or regulation of any governmental authority. 

        10.    No Rights as Stockholder.    The Optionee shall have no rights as a stockholder with
respect to shares covered by the Option until the date of issuance of a stock certificate for such shares; and, except as otherwise provided in Section 5 hereof, no adjustment for dividends or
otherwise shall be made if the record date therefor is prior to the date of issuance of such certificate. 

        11.    Entire Agreement; Amendment.    This Agreement constitutes the entire agreement between
the parties with respect to the subject matter hereof. Any term or provision of this Agreement may be waived at any time by the party which is entitled to the benefits thereof, except that any waiver
of any term or condition of this Agreement must be in writing. 

        12.    Governing Law.    The laws of the State of Texas shall govern the interpretation,
validity and performance of the terms of this Agreement regardless of the law that might be applied under principles of conflict of laws. 

        13.    Successors.    This Agreement shall be binding upon and inure to the benefit of the
successors, assigns and heirs of the respective parties. 

        14.    Notices.    All notices or other communications made or given in connection with this
Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed by registered or certified mail, 

3

 

return
receipt requested, to those listed below at their following respective addresses or at such other address as each may specify by notice to the others: 

	To the Optionee:	 
	

    
    
    
	

 
	
To the Company:	

 
	
Street Address:	

 
	

Rush Enterprises, Inc.

555 IH-35 South, Suite 500

New Braunfels, Texas 78130

Attn: Secretary	

 
	
Mailing Address:	

 
	

Rush Enterprises, Inc.

P. O. Box 34630

San Antonio, Texas 78265

Attention: Secretary	

 

        15.    Waiver.    The failure of a party to insist upon strict
adherence to any term of this Agreement on any occasion shall not be considered a waiver thereof or deprive that party of the right thereafter to insist upon strict adherence to that term or any other
term of this Agreement. 

        16.    Construction.    Titles are provided herein for convenience only and are not to serve
as a basis for interpretation on construction of this Agreement. The singular form shall include the plural, when the context so indicates. 

        IN
WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by its officer thereunto duly authorized, and the Optionee has hereunto set his signature, all as of the
date first above written. 

	 	RUSH ENTERPRISES, INC.
	

 	

By:	
 	

    
 W. Marvin Rush

Chairman of the Board and

Chief Executive Officer
	

 	

OPTIONEE
	

 	

    

4

QuickLinks

EXHIBIT 4.2

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