Document:

Speedway Motorsports 2004 Stock Incentive Plan

 Exhibit 4.1 
  

SPEEDWAY MOTORSPORTS, INC. 
  
 2004 STOCK INCENTIVE PLAN 
  
 ARTICLE 1 
 PURPOSE AND EFFECTIVE DATE

  
 1.1 Purposes of the Plan. Speedway Motorsports, Inc.
(the “Company”) has established this Speedway Motorsports, Inc. 2004 Stock Incentive Plan (the “Plan”) to promote the interests of the Company and its stockholders. The purposes of the Plan are to (a) provide incentives to key
employees, directors, consultants and other individuals providing services to the Company and its Subsidiaries to contribute to the Company’s performance and growth, (b) offer such persons stock ownership in the Company and other compensation
that promotes the financial success of the Company and aligns their interests with those of the Company’s other stockholders and (c) enhance the Company’s ability to attract, reward and retain such persons upon whose efforts the
Company’s success and future growth depends. 
  
 1.2
Effective Date. The Plan was adopted by the Board of Directors on February 18, 2004 and shall be effective as of such date, subject to the requisite approval of the Company’s stockholders at the 2004 Annual Meeting of Stockholders.

  
 ARTICLE 2 
 DEFINITIONS 
  
 2.1 Definitions. As used in the Plan, the following capitalized terms shall have the meanings set forth below: 
  
 (a) “Award” means, individually or collectively, a
grant under this Plan of Incentive Stock Options, Nonqualified Stock Options, Restricted Stock, or Performance Awards. 
  
 (b) “Award Agreement” means an agreement entered into by a Participant and the Company, setting forth the terms and conditions
applicable to Awards granted to the Participant under this Plan. 
  
 (c) “Board” or “Board of Directors” means the Board of Directors of the Company. 
  
 (d) “Cause” means: (i) the commission by the Participant of a crime or other act or practice that involves dishonesty or moral
turpitude and either has an adverse effect on the Company or a Subsidiary or its reputation or is intended to result in the personal enrichment of the Participant at the expense of the Company or a Subsidiary (whether or not resulting in criminal
prosecution or conviction); (ii) the Participant’s gross negligence or willful misconduct in respect of the Participant’s service with the Company or a Subsidiary; or (iii) the continuous and willful failure by the Participant to follow
the reasonable directives of the Participant’s 

 superiors or the Board of Directors. Notwithstanding the foregoing, if the Participant has entered into
an employment agreement that is binding as of the date of the Participant’s Termination of Service and includes a definition of “Cause,” then the definition of “Cause” in such agreement shall supplement the foregoing
definition of “Cause” and shall also apply to the Participant. Following a Participant’s Termination of Service, if it is determined that the Participant’s service could have been terminated for Cause, such Participant’s
service shall be deemed to have been terminated for Cause. In any event, “Cause” shall be determined by the Committee. 
  
 (e) “Change in Control” means any of the following events: 
  
 (i) the acquisition by any Person of beneficial ownership (within the meaning of Rule 13d-3 under the
Exchange Act) of 50.1% or more of either (A) the then outstanding shares of the Common Stock of the Company (the “Outstanding Common Stock”) or (B) the combined voting power of the then outstanding voting securities of the Company entitled
to vote generally in the election of directors (the “Outstanding Voting Securities”); provided, however, that, Person shall not include any person who, on the effective date of the Plan, beneficially owns 12.0% or more of the
Company’s outstanding securities, and provided further, that the following transactions shall not constitute a Change in Control: (1) any acquisition directly from the Company; (2) any acquisition by the Company; (3) any acquisition by any
employee benefit plan (or related trust) sponsored or maintained by the Company or any entity controlled by the Company; or (4) any acquisition by an entity pursuant to a transaction that complies with clauses (A), (B) and (C) of subparagraph (iii)
of this Section 2.1(e); or 
  
 (ii) a change in
the composition of the Board during any two-year period such that the individuals who, as of the beginning of such two-year period, constitute the Board (such Board shall be hereinafter referred to as the “Incumbent Board”) cease for any
reason to constitute at least a majority of the Board; provided, however, that for purposes of this subparagraph (ii), any individual who becomes a member of the Board subsequent to the beginning of the two-year period whose election, or nomination
for election by the Company’s stockholders, was approved by a vote of at least a majority of those individuals who are members of the Board and who were also members of the Incumbent Board (or deemed to be such pursuant to this proviso) shall
be considered as though such individual were a member of the Incumbent Board; but provided further, that any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest (as such terms are used in
Rule 14a-11 of Regulation 14A promulgated under the Exchange Act, including any successor to such Rule), or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board, shall not be so considered
as a member of the Incumbent Board; or 
  
 (iii)
the approval by the stockholders of the Company of a merger, reorganization or consolidation or a sale or other disposition of all or substantially all of the assets of the Company (each, a “Corporate Transaction”) or, if consummation of
such Corporate Transaction is subject, at the time of such approval by the stockholders of the Company, to the consent of any governmental agency, the obtaining of such consent (either explicitly or implicitly by consummation), unless, following
such Corporate Transaction (A) all or substantially all of the individuals and entities who are the beneficial owners of the Outstanding Common Stock and Outstanding Voting Securities immediately prior to such Corporate Transaction will beneficially
own, directly or indirectly, more than 50.1% of the outstanding shares of common stock and the 
  

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 combined voting power of the then outstanding voting securities entitled to vote generally in the
election of directors of the corporation resulting from such Corporate Transaction (including, without limitation, a corporation or other Person which as a result of such transaction owns the Company or all or substantially all of the Company’s
assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Corporate Transaction, of the Outstanding Common Stock and Outstanding Voting Securities, as the case may
be; (B) no Person (other than the Company, any employee benefit plan (or related trust) of the Company, or any such corporation resulting from the Corporate Transaction, or to the extent applicable as described in (A) above, the parent company
thereof) beneficially owns, directly or indirectly, 12.0% or more of, respectively, the outstanding shares of common stock of the corporation resulting from such Corporate Transaction or the combined voting power of the then outstanding voting
securities of such corporation except to the extent that such ownership existed prior to the Corporate Transaction; and (C) at least a majority of the members of the board of directors of the corporation resulting from such Corporate Transaction (or
to the extent applicable as described in (A) above, the parent company thereof) were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board, providing for such Corporate Transaction; or

  
 (iv) the approval by the stockholders of the
Company of a complete liquidation or dissolution of the Company. 
  
 (f) “Code” means the Internal Revenue Code of 1986, as amended from time to time, or any successor act thereto. 
  
 (g) “Committee” means (i) the Compensation Committee of the Board (or a subcommittee thereof); (ii) in the absence of such
committee, any other committee or subcommittee appointed by the Board that is granted authority to administer the Plan; or (iii) in the absence of such appointment, the Board itself. 
  
 (h) “Common Stock” means the common stock of the Company, par value $0.01 per share. 

 
 (i) “Company” means Speedway Motorsports, Inc.,
a Delaware corporation, or any successor thereto. 
  
 (j) “Director” means any individual who is a member of the Board of Directors of the Company. 
  
 (k) “Disability” means a permanent and total disability as described in Section 22(e)(3) of the Code and determined by the
Committee. 
  
 (l) “Employee” means any
employee of the Company or any Subsidiary. Directors who are not otherwise employed by the Company or a Subsidiary are not considered Employees under this Plan. 
  
 (m) “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, or any
successor act thereto. 
  

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 (n) “Fair Market Value” means, as of a particular date, the value of the Common
Stock determined as follows: 
  
 (i) If, on the
relevant date, the Common Stock is traded on a national or regional securities exchange or on the Nasdaq National Market System (“Nasdaq”), Fair Market Value shall be determined on the basis of the closing sale price on the principal
securities exchange on which the Common Stock may then be traded or, if there is no such sale on the relevant date, then on the last previous day on which a sale was reported; 
  
 (ii) If, on the relevant date, the Common Stock is not listed on any securities exchange or traded on
Nasdaq, but nevertheless is publicly traded and reported on Nasdaq without closing sale prices for the Common Stock being customarily quoted, Fair Market Value shall be determined on the basis of the mean between the closing high bid and low asked
quotations in such other over-the-counter market as reported by Nasdaq; but, if there are no bid and asked quotations in the over-the-counter market as reported by Nasdaq on that date, then the mean between the closing bid and asked quotations in
the over-the-counter market as reported by Nasdaq on the immediately preceding day such bid and asked prices were quoted; and 
  
 (iii) If, on the relevant date, the Common Stock is not publicly traded as described in (i) or (ii) above, Fair Market Value shall be
determined by the Committee in good faith. 
  
 (o) “Incentive Stock Option” or “ISO” means an option to purchase shares of Common Stock granted under Article 6 which is designated as an Incentive Stock Option and is intended to meet the requirements of Section 422 of
the Code. 
  
 (p) “Involuntary Termination
Without Cause” means the dismissal, or the request for the resignation, of a Participant by either (i) a court order, order of any court-appointed liquidator or trustee of the Company, or the order or request of any creditors’ committee of
the Company constituted under the federal bankruptcy laws, provided that such order or request contains no specific reference to actions or omissions that would constitute Cause; or (ii) a duly authorized corporate officer of the Company, or by the
Board, for any reason other than for Cause. 
  
 (q) “Named Executive Officer” means a Participant who is considered a “covered employee” within the meaning of Section 162(m) of the Code. 
  
 (r) “Nonqualified Stock Option” or “NSO” means an option to purchase shares of Common
Stock granted under Article 6, and which is not intended or otherwise fails to meet the requirements of Section 422 of the Code. 
  
 (s) “Option” means an Incentive Stock Option or a Nonqualified Stock Option. 
  
 (t) “Option Price” means the price at which a
share of Common Stock may be purchased by a Participant pursuant to an Option, as determined by the Committee in accordance with Article 6. 
  

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 (u) “Participant” means an Employee, Director, consultant or other person who
performs services for the Company or a Subsidiary who has been granted an Award under the Plan which is outstanding. 
  
 (v) “Performance Award” means an Award granted under Article 8 which is subject to the attainment of one or more Performance
Goals during a Performance Period, as established by the Committee in its discretion. 
  
 (w) “Performance Goals” means the criteria and objectives designated by the Committee that must be met during the Performance
Period as a condition of the Participant’s receipt of a Performance Award, as described in Section 8.1(b) hereof. 
  
 (x) “Performance Period” means the period designated by the Committee during which the Performance Goals with respect to a
Performance Award will be measured. 
  
 (y)
“Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof, including a “group” as defined in Section 13(d) thereof. 
  
 (z) “Plan” means this Speedway Motorsports, Inc.
2004 Stock Incentive Plan, as amended from time to time. 
  
 (aa) “Restricted Period” means the period beginning on the grant date of an Award of Restricted Stock and ending on the date the shares of Common Stock subject to such Award are no longer restricted and
subject to forfeiture. 
  
 (bb) “Restricted
Stock” means an Award of Common Stock (or the right to receive a share of Common Stock in the future) granted in accordance with the terms of Article 7 that is nontransferable and subject to a substantial risk of forfeiture and such other
restrictions designated by the Committee. 
  
 (cc) “Subsidiary” means a corporation, partnership, limited liability company, joint venture or other entity in which the Company directly or indirectly controls 50% or more of the voting power or equity or profits interests;
provided, that for purposes of eligibility to receive Incentive Stock Options, Subsidiary means a “subsidiary corporation” within the meaning of Section 424(f) of the Code. 
  
 (dd) “Ten Percent Stockholder” means a Participant who owns (directly or by attribution within the
meaning of Section 424(d) of the Code) stock possessing more than 10% of the total combined voting power of all classes of stock of the Company, any Subsidiary or a parent of the Company. 
  
 (ee) “Termination of Service” means the
termination of a Participant’s service with the Company and its Subsidiaries as an Employee, Director, consultant or otherwise for any reason other than a change in the capacity in which the Participant renders service to the Company or a
Subsidiary or a transfer between or among the Company and its Subsidiaries. Unless otherwise determined by the Committee, an Employee shall be considered to have incurred a Termination of Service if his or her employer ceases to be a Subsidiary. All

  

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 determinations relating to whether a Participant has incurred a Termination of Service and the effect
thereof shall be made by the Committee in its discretion, including whether a leave of absence shall constitute a Termination of Service, subject to applicable law. 
  
 ARTICLE 3 
 ADMINISTRATION 
  
 3.1 General. The Plan
shall be administered by the Committee. The members of the Committee shall be appointed from time to time by, and shall serve at the discretion of, the Board of Directors. Notwithstanding the foregoing, (a) to the extent required for Awards to be
exempt from Section 16 of the Exchange Act pursuant to Rule 16b-3, the Committee shall consist of two or more Directors who are “non-employee directors” within the meaning of such Rule 16b-3, and/or (b) to the extent required for Awards to
satisfy the requirements for “performance-based compensation” within the meaning of Section 162(m) of the Code and the regulations thereunder, the Committee shall consist of two or more Directors who are “outside directors”
within the meaning of Section 162(m) of the Code. 
  
 3.2
Authority of the Committee. Subject to the provisions of the Plan, the Committee shall have full and exclusive power to select the individuals to whom Awards may from time to time be granted under the Plan; determine the size and types of
Awards; determine the terms, restrictions and conditions of Awards in a manner consistent with the Plan (including, but not limited to, the number of shares of Common Stock subject to an Award, vesting or other exercise conditions applicable to an
Award, restrictions on transferability of the Award and any shares of Common Stock issued thereunder, and the duration of the Award); construe and interpret the Plan and any agreement or instrument entered into under the Plan; establish, amend or
waive rules and regulations for the Plan’s administration; delegate administrative responsibilities under the Plan; and (subject to the provisions of Article 10) amend the terms and conditions of any outstanding Award to the extent such terms
and conditions are within the discretion of the Committee as provided in the Plan, including accelerating the time any Option may be exercised and establishing different terms and conditions relating to the effect of a Termination of Service. The
Committee also shall have the absolute discretion to make all other determinations which may be necessary or advisable in the Committee’s opinion for the administration of the Plan. Notwithstanding the foregoing, the Board shall have full and
exclusive power to make the determinations set forth above with respect to Awards to non-employee Directors. 
  
 3.3 Decisions Binding. All determinations, decisions and interpretations made by the Committee pursuant to the provisions of the Plan and all
related resolutions of the Board shall be final, conclusive and binding on all persons, including the Company, the Company’s stockholders, and Participants and their estates and beneficiaries. 
  
 3.4 Indemnification. In addition to such other rights they may have as
Directors or members of the Committee under the Company’s Articles of Incorporation or Bylaws or otherwise, each person who is or shall have been a member of the Committee, or the Board, shall be indemnified and held harmless by the Company
against any loss, cost, liability or expense that may be imposed upon or reasonably incurred by the member in connection with or resulting from any claim, action, suit or proceeding to which the member may be a party or in which the member may be
involved by reason of any action taken or failure to act under or in connection 
  

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 with the Plan or any Award and against all amounts paid by the member in settlement thereof (provided such settlement is
approved by the Company) or paid by the member in satisfaction of any judgment in any such action, suit or proceeding against the member, except with respect to matters as to which the member of the Committee has been grossly negligent or engaged in
willful misconduct with respect to the performance of the member’s duties; provided, however, that the member shall give the Company an opportunity, at its own expense, to handle and defend the same before the member undertakes to handle and
defend it on the member’s own behalf. 
  
 ARTICLE 4

 STOCK SUBJECT TO THE PLAN 
  
 4.1 Stock Available Under the Plan. Subject to adjustments as provided in Section 4.3, the aggregate number of shares of Common Stock that may be
issued pursuant to Awards under the Plan is 2,500,000 shares. Shares of Common Stock issued under the Plan may be shares of original issuance, treasury shares or shares purchased in the open market or otherwise. Shares of Common Stock covered by
Awards which expire or are forfeited or canceled for any reason or which are settled in cash shall be available for further Awards under the Plan. 
  
 4.2 Award Limits. Notwithstanding any provision in the Plan to the contrary, the following limitations shall apply (subject to adjustment as
provided in Section 4.3): 
  
 (a) Individual
Option Limit. No Participant shall be granted, during any one calendar year, Options covering in the aggregate more than 100,000 shares of Common Stock. 
  
 (b) Individual Limit on Other Awards. With respect to Restricted Stock that is intended to be “performance-based
compensation” (within the meaning of Section 162(m) of the Code), no Participant shall be granted, during any one calendar year, Restricted Stock covering in the aggregate more than 35,000 shares of Common Stock. 
  
 (c) Aggregate Limit on Certain Awards. The maximum
number of shares of Common Stock that may be issued under the Plan in connection with Awards other than Options shall be 1,000,000 shares. 
  
 4.3 Adjustments. In the event of a reorganization, recapitalization, stock split, stock dividend, combination of shares, merger, consolidation or
similar transaction or other change in corporate capitalization affecting the Common Stock, unless the Committee should determine otherwise, corresponding adjustments or substitutions, as applicable, shall be made to the maximum number and kind of
shares of Common Stock which may be issued under the Plan set forth in Section 4.1, the number of shares of Common Stock subject to the Award limits set forth in Section 4.2 and in the number, kind and price of shares of Common Stock subject to
outstanding Awards granted under the Plan. In addition, the Committee, in its sole discretion, shall make such similar adjustments as described above in the event of any corporate transaction to which Section 424(a) of the Code applies or such other
event which in the judgment of the Committee necessitates an adjustment as may be determined to be appropriate and equitable by the Committee. Notwithstanding the foregoing, the number of shares of Common Stock subject to any Award shall always be a
whole number and the Committee, in its discretion, shall make 
  

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 such adjustments as are necessary to eliminate fractional shares that may result from any adjustments made pursuant
hereto. Except as expressly provided herein, the issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall not affect, and no adjustment by reason thereof shall be made with respect
to, the number or price of shares of Common Stock subject to an outstanding Award. 
  
 ARTICLE 5 
 ELIGIBILITY AND PARTICIPATION 
  
 Awards under the Plan may be granted to Employees, Directors, consultants and other individuals providing services to the
Company or a Subsidiary (provided such consultants and other individuals render bona fide services not in connection with the offer and sale of securities in a capital-raising transaction) as selected by the Committee. In determining the individuals
to whom such an Award shall be granted and the terms and conditions of such Award, the Committee may take into account any factors it deems relevant, including the duties of the individual, the Committee’s assessment of the individual’s
present and potential contributions to the success of the Company or its Subsidiaries and such other factors as the Committee shall deem relevant in connection with accomplishing the purposes of the Plan. Subject to the Award limits set forth in
Section 4.2, a Participant may be granted more than one Award under the Plan. 
  
 ARTICLE 6 
 STOCK OPTIONS 
  
 6.1 Stock Options. Subject to the provisions of the Plan, the Committee may grant Options upon the following terms
and conditions: 
  
 (a) Award Agreement.
Each grant of an Option shall be evidenced by an Award Agreement in such form as the Committee may from time to time approve. The Award Agreement shall specify the number of shares of Common Stock to which the Option pertains, whether the Option is
an ISO or a NSO, the Option Price, the term of the Option, the conditions upon which the Option shall become vested and exercisable, and such additional terms and conditions, not inconsistent with the provisions of the Plan, as the Committee shall
determine. ISOs may be granted only to Employees of the Company or a Subsidiary. 
  
 (b) Option Price. The Option Price per share of Common Stock shall be determined by the Committee, but shall not be less than the
Fair Market Value per share of Common Stock on the date of grant of the Option. In the case of an ISO granted to a Ten Percent Stockholder, the Option Price per share of Common Stock shall not be less than 110% of the Fair Market Value per share of
Common Stock on the date of grant of the Option. Notwithstanding the foregoing, an Option may be granted with an Option Price per share of Common Stock less than that set forth above if such Option is granted pursuant to an assumption of, or
substitution for, another option in a manner satisfying the provisions of Section 424(a) of the Code. For purposes of this Article 6, the term “date of grant” means the latest of (i) the date on which the Committee authorizes the grant of
the Award, (ii) the date the Participant receiving the Award commences service with the Company or a Subsidiary, to the extent that such commencement is a condition of the grant or a requirement under the Code or the Exchange Act; 
  

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 or (iii) such other later date as the Committee may designate and set forth in the Participant’s
Award Agreement. 
  
 (c) Exercise of
Options. An Option shall be exercisable in whole or in part (including periodic installments) at such time or times, and subject to such restrictions and conditions, as the Committee shall determine. Except as otherwise provided in the Award
Agreement, the right to purchase shares of Common Stock under the Option that become exercisable in periodic installments shall be cumulative so that such shares of Common Stock (or any part thereof) may be purchased at any time thereafter until the
expiration or termination of the Option. 
  
 (d)
Option Term. The term of an Option shall be determined by the Committee, but in no event shall an ISO be exercisable more than ten years from the date of its grant or, in the case of any ISO granted to a Ten Percent Stockholder, more than
five years from the date of its grant. 
  
 (e)
Termination of Service. Except to the extent that an Option remains exercisable as provided below or as otherwise set forth by the Committee in the Award Agreement, an Option shall immediately terminate upon the Participant’s Termination
of Service for any reason. 
  
 (i) Involuntary
Termination Without Cause. In the event that a Participant incurs a Termination of Service that constitutes an Involuntary Termination Without Cause, the Participant may exercise an outstanding Option to the extent that the Participant was
entitled to exercise such Option as of the date of termination, but only within such period of time ending on the earlier of (A) the date three months following such Termination of Service or (B) the expiration of the term of such Option as set
forth in the Award Agreement. 
  
 (ii)
Disability. In the event that a Participant incurs a Termination of Service as a result of the Participant’s Disability, the Participant may exercise an outstanding Option to the extent that the Participant was entitled to exercise such
Option as of the date of termination, but only within such period of time ending on the earlier of (A) the date twelve months following such Termination of Service or (B) the expiration of the term of such Option as set forth in the Award Agreement.

  
 (iii) Death. In the event that a
Participant’s Termination of Service is caused by the Participant’s death, or in the event of the Participant’s death following the Participant’s Termination of Service but during the three-month or twelve-month period described
in subparagraph (i) or (ii) above, then any outstanding Option may be exercised to the extent the Participant was entitled to exercise such Option as of the date of death by the person or persons to whom the Participant’s rights to exercise the
Option passed by will or the laws of descent and distribution (or by the executor or administrator of the Participant’s estate), but only within the period ending on the earlier of (A) the date twelve months following the date of death or (B)
the expiration of the term of such Option as set forth in the Award Agreement. 
  
 (f) ISO Limitation. To the extent that the aggregate Fair Market Value (determined as of the date of grant) of the shares of Common
Stock with respect to which ISOs 
  

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 are exercisable for the first time during any calendar year (under all plans of the Company and its
subsidiaries) exceeds $100,000 or such other applicable limitation set forth in Section 422 of the Code or any regulations thereunder, such ISOs shall be treated as NSOs. The determination of which ISOs shall be treated as NSOs generally shall be
based on the order in which such ISOs were granted and shall be determined by the Committee in accordance with applicable rules and regulations. 
  
 (g) Payment. Options shall be exercised by the delivery of a written notice of exercise to the Company, specifying the number of
shares of Common Stock with respect to which the Option is to be exercised, accompanied by the aggregate Option Price for the shares of Common Stock. The aggregate Option Price shall be payable to the Company in full in cash or cash equivalent
acceptable to the Company, or if approved by the Committee, by tendering previously acquired shares of Common Stock (or delivering a certification of ownership of such shares) having an aggregate Fair Market Value at the time of exercise equal to
the total Option Price (provided that the shares of Common Stock either were purchased on the open market or have been held by the Participant for a period of at least six months (unless such six-month period is waived by the Committee)), a
combination of the foregoing, or by any other means which the Company determines to be consistent with the Plan’s purpose and applicable law (including the tendering of Awards having an aggregate Fair Market Value at the time of exercise equal
to the total Option Price, as determined by the Committee). 
  
 (h) Transfer Restrictions. Options may not be sold, transferred, pledged, assigned, alienated, hypothecated or disposed of in any manner other than by will or the laws of descent and distribution and Options
shall be exercisable during the Participant’s lifetime only by the Participant (or, to the extent permitted by applicable law, the Participant’s guardian or legal representative in the event of the Participant’s legal incapacity).
Notwithstanding the foregoing, the Committee, in its absolute discretion, may permit further transferability of Options, on a general or specific basis, and may impose conditions and limitations on any permitted transferability. 
  
 (i) No Stockholder Rights. No Participant shall have
any rights as a stockholder with respect to shares of Common Stock subject to the Participant’s Option until the issuance of such shares to the Participant pursuant to the exercise of such Option. 
  
 ARTICLE 7 
 RESTRICTED STOCK 
  
 7.1 Grants of Restricted Stock. Subject to the provisions of the Plan, the Committee may grant Restricted Stock upon the following terms and conditions: 
  
 (a) Award Agreement. Each grant of Restricted Stock
shall be evidenced by an Award Agreement in such form as the Committee may from time to time approve. The Award Agreement shall specify the number of shares of Restricted Stock granted, the Restricted Period, the conditions upon or the time at which
the Restricted Period shall lapse, and such additional terms and conditions, not inconsistent with the provisions of the Plan, as the Committee shall determine. 
  

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 (b) Purchase Price. The Committee shall determine the purchase price, if any, to
be paid for the Restricted Stock, subject to such minimum consideration as may be required by applicable law. 
  
 (c) Nontransferability. Except as otherwise set forth in the Award Agreement, shares of Restricted Stock may not be sold,
transferred, pledged, assigned, alienated, hypothecated or disposed of in any manner until the end of the Restricted Period applicable to such shares and the satisfaction of any and all other conditions prescribed by the Committee. 
  
 (d) Other Restrictions. The Committee may impose such
conditions and restrictions on the grant or vesting of shares of Restricted Stock as it determines, including but not limited to restrictions based upon the achievement of financial or other business objectives (including the Performance Goals
described in Section 8.1(b)), the occurrence of a specific event, continued service for a period of time or other time-based restrictions. The Committee may provide that such restrictions may lapse separately or in combination at such time or times
and with respect to all shares of Restricted Stock or in installments or otherwise as the Committee may deem appropriate. 
  
 (e) Section 83(b) Election. The Committee may provide in an Award Agreement that an Award of Restricted Stock is subject to the
Participant making or refraining from making an election under Section 83(b) of the Code. If a Participant makes an election pursuant to Section 83(b) of the Code with respect to Restricted Stock, the Participant shall be required to promptly file a
copy of such election with the Company as required under Section 83(b) of the Code. 
  
 (f) Termination of Service. Notwithstanding anything herein to the contrary and except as otherwise set forth by the Committee in
the Award Agreement, in the event of the Participant’s Termination of Service prior to the expiration of the Restricted Period, all shares of Restricted Stock with respect to which the applicable restrictions have not yet lapsed shall be
forfeited. Notwithstanding the foregoing, in the event that a Participant’s Termination of Service is the result of the Participant’s death, Disability or Involuntary Termination Without Cause, the Committee may elect, in its discretion,
to waive in whole or in part any remaining restrictions with respect to all or any part of such Participant’s Restricted Stock. 
  
 (g) Stockholder Rights. A grant of Restricted Stock may be evidenced in such manner as the Committee shall deem appropriate,
including without limitation, book-entry registration or the issuance of a stock certificate (or certificates) representing the number of shares of Restricted Stock granted to the Participant, containing such legends as the Committee deems
appropriate and held in custody by the Company or on its behalf, in which case the grant of Restricted Stock shall be accompanied by appropriate stop-transfer instructions to the transfer agent for the Common Stock, until (i) the expiration or
termination of the Restricted Period for such shares of Restricted Stock and the satisfaction of any and all other conditions prescribed by the Committee or (ii) the forfeiture of such shares of Restricted Stock. The Committee may require a
Participant to deliver to the Company a stock power, endorsed in blank, relating to the shares of Restricted Stock to be held in custody by or for the Company. A Participant that has been granted Restricted Stock shall have the rights and privileges
of a stockholder as to such Restricted Stock, including the right to vote such Restricted Stock and the right to receive 
  

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 dividends, if and when declared by the Board of Directors, provided, that the Committee may require that
any cash dividends shall be automatically reinvested in additional shares of Restricted Stock. With respect to any shares received as a result of adjustments under Section 4.3 hereof and any shares of Restricted Stock that result from cash dividends
declared on Restricted Stock, the Participant shall have the same rights and privileges, and be subject to the same restrictions, as are set forth in this Article 7. 
  
 ARTICLE 8 
 PERFORMANCE AWARDS 
  
 8.1 Performance
Awards. Subject to the terms of the Plan, the Committee may designate an Award of Restricted Stock as a Performance Award based upon a determination that the Participant is or may become a Named Executive Officer and the Committee wishes such
Awards to qualify for the exemption from the limitation on deductibility imposed by Section 162(m) of the Code. The vesting, payment or delivery of any such Performance Awards shall be contingent upon the attainment of one or more Performance Goals.
The provisions of this Article 8 shall control to the extent inconsistent with Article 7 and such Performance Awards shall be subject to the following terms and conditions: 
  
 (a) Award Agreement. Each grant of a Performance Award shall be evidenced by an Award Agreement in
such form as the Committee may from time to time approve. The Award Agreement shall specify the number of shares of Common Stock to which the Performance Award pertains, the Performance Goals applicable to such Performance Award, the length of the
Performance Period, and such additional terms and conditions, not inconsistent with the provisions of the Plan, as the Committee shall determine. 
  
 (b) Performance Goals. The Committee shall establish one or more Performance Goals for the Participant that are objectively
determinable (i.e., such that a third party with knowledge of the relevant facts could determine whether the goals have been met). Such Performance Goals must be established in writing by the Committee within ninety (90) days after the beginning of
the Performance Period (or, if earlier, by the date on which 25% of the Performance Period has elapsed) or within such other time period prescribed by Section 162(m) of the Code and the regulations thereunder; provided, that achievement of the
Performance Goals must be substantially uncertain at the time they are established. The Performance Goals shall be based on one or more of the following, as determined in the sole discretion of the Committee: stock price; earnings per share; net
earnings; operating or other earnings; profits; revenues; net cash flow; financial return ratios; stockholder return; return on equity; return on investment; return on net assets; debt rating; sales; expense reduction levels; growth in assets,
sales, or market share; or strategic business objectives based on meeting specified revenue goals, market penetration goals, geographic business expansion goals, cost targets, or goals relating to acquisitions or divestitures. Performance Goals may
be based on the performance of the Company, based on the Participant’s division, business unit or employing Subsidiary, based on the performance of one or more divisions, business units or Subsidiaries, based on the performance of the Company
and its Subsidiaries as a whole, or based on any combination of the foregoing. Performance Goals may be either absolute in their terms or relative. Performance Goals may provide for the inclusion or exclusion of items such as the effect of unusual
charges or income items or other events, including acquisitions or dispositions 
  

 12 

 of businesses or assets, restructurings, reductions in force, or changes in accounting principles or tax laws. The
Committee also may establish subjective Performance Goals for Participants, provided that for Named Executive Officers, the subjective Performance Goals may be used only to reduce, and not increase, the Performance Award otherwise payable under the
Plan. 
  
 (c) Payment. Prior to the
vesting, payment or delivery, as the case may be, of a Performance Award, the Committee shall certify in writing the extent to which the applicable Performance Goals and any other material terms of the Performance Award have been achieved or
exceeded for the applicable Performance Period. In no event may the Committee waive achievement of the Performance Goal requirements for a Named Executive Officer except in its discretion in the case of the death or Disability of the Participant or
as otherwise provided in Article 9 with respect to a Change in Control. 
  
 (d) Code Section 162(m). The Committee shall have the power to impose such other restrictions on Performance Awards as it may deem necessary or appropriate to ensure that such Performance Awards satisfy all
requirements for “performance-based compensation” within the meaning of Section 162(m) of the Code and the regulations thereunder. 
  
 ARTICLE 9 
 CHANGE IN CONTROL 

 
 9.1 Impact on Options. Notwithstanding any other provision of the
Plan, in the event of a Change in Control, any Option outstanding as of the date such Change in Control is determined to have occurred, and which is not yet then exercisable and vested, shall become fully exercisable and vested. 
  
 9.2 Impact on Restricted Stock. Notwithstanding any other provision of
the Plan, in the event of a Change in Control, all Awards of Restricted Stock (including Performance Awards) outstanding as of the date such Change in Control is determined to have occurred shall be deemed vested, and all restrictions shall be
deemed lapsed, all terms and conditions (including applicable Performance Goals) shall be deemed satisfied and the Restricted Period and, if applicable, the Performance Period shall be deemed to have ended. 
  
 ARTICLE 10 
 AMENDMENT, SUSPENSION AND TERMINATION 
  
 10.1 Amendment, Suspension and Termination of Plan. The Board may at any time, and from time to time, amend, suspend or terminate the Plan in whole
or in part; provided, that no amendment, suspension or termination shall be effective unless approved by the stockholders of the Company (a) to the extent stockholder approval is necessary to satisfy the applicable requirements of the Code, the
Exchange Act or Rule 16b-3 thereunder, any New York Stock Exchange, Nasdaq or securities exchange listing requirements or any other law or regulation; (b) if such amendment is intended to allow the Option Price of outstanding Options to be reduced
by repricing or replacing such Options; or (c) to the extent the Board determines, in its discretion, that stockholder approval is desirable even if such stockholder approval is not expressly required by the Plan or applicable law or regulation.
Unless sooner terminated by the Board, the Plan shall terminate ten years from the date the Plan is adopted by the Board. Upon the termination of 
  

 13 

 the Plan, no further Awards may be granted pursuant to the Plan, but the Plan shall remain effective with respect to any
outstanding Awards previously granted. No amendment, suspension or termination of the Plan shall adversely affect in any material way the rights of a Participant under any outstanding Award without the Participant’s consent. 
  
 10.2 Amendment of Awards. Subject to Section 10.1 above, the Committee
may at any time amend the terms of an Award previously granted to a Participant, but no such amendment shall adversely affect in any material way the rights of the Participant without the Participant’s consent. 
  
 ARTICLE 11 
 WITHHOLDING 
  
 11.1 Tax Withholding in General. The Company shall have the power and the right to deduct or withhold from cash payments or other property to be paid to the Participant, or require a Participant to remit to the Company or a
Subsidiary, an amount sufficient to satisfy federal, state and local taxes (including the Participant’s FICA obligation) required by law to be withheld with respect to any taxable event arising in connection with an Award under this Plan. The
Company shall not be required to issue any shares of Common Stock or settle any Awards payable hereunder until such withholding requirements have been satisfied. 
  
 11.2 Share Withholding and Remittance. With respect to withholding required upon the exercise of Options, or upon any
other taxable event arising as a result of Awards granted hereunder which are to be paid in the form of shares of Common Stock, the Company may withhold from an Award, or the Participant may remit, subject to applicable law (including Rule 16b-3
under the Exchange Act) shares of Common Stock having a Fair Market Value on the date the tax is to be determined of no more than the minimum statutory total tax which could be imposed on the transaction. All such elections shall be made in
accordance with procedures established by the Committee and/or the Company. Notwithstanding the foregoing, the Committee and/or the Company shall have the right to restrict a Participant’s ability to satisfy tax obligations through share
withholding as they may deem necessary or appropriate. 
  
 ARTICLE
12 
 GENERAL PROVISIONS 
  
 12.1 No Employment Rights. Nothing in the Plan or any Award Agreement shall confer upon any Participant any right to continue in the employ or
service of the Company or a Subsidiary nor interfere with or limit in any way the right of the Company or a Subsidiary to terminate any Participant’s employment by, or performance of services for, the Company or Subsidiary at any time for any
reason. 
  
 12.2 No Participation Rights. No person shall
have the right to be selected to receive an Award under this Plan and there is no requirement for uniformity of treatment among Participants. 
  
 12.3 Unfunded Plan. To the extent that any person acquires a right to receive Common Stock, cash payments or other property under the Plan, such
right shall be only contractual in nature unsecured by any assets of the Company or a Subsidiary. Neither the Company nor any 
  

 14 

 Subsidiary shall be required to segregate any specific funds, assets or other property with respect to any Awards under
this Plan. 
  
 12.4 Restrictions on Transferability. Except
as otherwise provided herein or in an Award Agreement, no Award or any shares of Common Stock subject to an Award which have not been issued, or as to which any applicable restrictions have not lapsed, may be sold, transferred, pledged, assigned,
alienated, hypothecated or disposed of in any manner. Any attempt to transfer an Award or such shares of Common Stock in violation of the Plan or an Award Agreement shall relieve the Company and its Subsidiaries from any obligations to the
Participant thereunder. 
  
 12.5 Requirements of Law. The
granting of Awards and the issuance of shares of Common Stock under the Plan shall be subject to all applicable laws, rules and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. With
respect to Participants who are subject to Section 16 of the Exchange Act, this Plan is intended to comply with all provisions of Rule 16b-3 or any successor rule under the Exchange Act, unless determined otherwise by the Committee. 
  
 12.6 Regulatory Approvals and Listing. The Company shall not be
required to grant, issue or settle any Awards or issue any certificate or certificates for shares of Common Stock under the Plan prior to (a) obtaining any required approval from the stockholders of the Company; (b) obtaining any approval from any
governmental agency which the Company shall, in its discretion, determine to be necessary or advisable; (c) the admission of such shares of Common Stock to listing on any national securities exchange on which the Company’s Common Stock may be
listed; and (d) the completion of any registration or other qualification of such shares of Common Stock under any state or federal law or ruling or regulation of any governmental body which the Company shall, in its sole discretion, determine to be
necessary or advisable. The Company may require that any recipient of an Award make such representations and agreements and furnish such information as it deems appropriate to assure compliance with the foregoing or any other applicable legal
requirement. Notwithstanding the foregoing, the Company shall not be obligated at any time to file or maintain a registration statement under the Securities Act of 1933, as amended, or to effect similar compliance under any applicable state laws
with respect to the Common Stock that may be issued pursuant to this Plan. 
  
 12.7 Compliance with Code Section 162(m). It is intended that the Plan comply fully with and meet all of the requirements of Section 162(m) of the Code with respect to Options granted hereunder. At all times
when the Committee determines that compliance with the performance-based compensation exception under Section 162(m) of the Code is required or desired, all Performance Awards granted under this Plan also shall comply with the requirements of
Section 162(m) of the Code, and the Plan must be resubmitted to the stockholders of the Company as necessary to enable Awards to qualify as performance-based compensation under Section 162(m) of the Code (which rules currently require that the
stockholders reapprove the Plan no later than the first stockholders meeting that occurs in the fifth year following the year in which the stockholders previously approved the Plan). In addition, in the event that changes are made to Section 162(m)
of the Code to permit greater flexibility with respect to any Award or Awards under the Plan, the Committee may make any adjustments it deems appropriate. The Committee may, in its discretion, determine that it is advisable to grant Awards that
shall not 
  

 15 

 qualify as “performance-based compensation” and may grant Awards without satisfying the requirements of Section
162(m) of the Code. 
  
 12.8 Other Corporate Actions.
Nothing contained in the Plan shall be construed to limit the authority of the Company to exercise its corporate rights and powers, including, but not by way of limitation, the right of the Company to adopt other compensation arrangements or the
right of the Company to authorize any adjustment, reclassification, reorganization, or other change in its capital or business structure, any merger or consolidation of the Company, the dissolution or liquidation of the Company, or any sale or
transfer of all or any part of its business or assets. 
  
 12.9
Gender and Number. Except where otherwise indicated by the context, any masculine term used herein shall also include the feminine, and the plural shall include the singular and the singular shall include the plural. 
  
 12.10 Severability. The invalidity or unenforceability of any
particular provision of this Plan shall not affect the other provisions hereof, and the Committee may elect in its discretion to construe such invalid or unenforceable provision in a manner which conforms to applicable law or as if such provision
was omitted. 
  
 12.11 Governing Law. To the extent not
preempted by federal law, the Plan, and all Award Agreements hereunder, shall be construed in accordance with and governed by the laws of the State of North Carolina (excluding the principles of conflict of law thereof). 
  

 16Employee Stock Purchase Plan

 Exhibit 4.1 
  

SPEEDWAY MOTORPORTS, INC. 
  
 EMPLOYEE STOCK PURCHASE PLAN 
  
 AMENDED AND RESTATED 
  
 AS OF 
  
 MARCH 1, 2004 
  

 SPEEDWAY MOTORSPORTS, INC. 
  
 EMPLOYEE STOCK PURCHASE PLAN 
  

AMENDED AND RESTATED 
  
 AS OF 
  
 MARCH 1, 2004 
  
 TABLE OF CONTENTS 
  

							
	 	    	 	  	 	  	Page

	 ARTICLE I. PURPOSE; DEFINITIONS; CONSTRUCTION
	  	1
	 1.1
	    	Purpose of Plan	  	1
	 1.2
	    	Definitions	  	1
	 	    	(a)	  	“Account”	  	1
	 	    	(b)	  	“Base Pay”	  	1
	 	    	(c)	  	“Board of Directors”	  	1
	 	    	(d)	  	“Business Day”	  	1
	 	    	(e)	  	“Cause”	  	1
	 	    	(f)	  	“Code”	  	2
	 	    	(g)	  	“Committee”	  	2
	 	    	(h)	  	“Company”	  	2
	 	    	(i)	  	“Company Stock”	  	2
	 	    	(j)	  	“Contributions”	  	2
	 	    	(k)	  	“Effective Date”	  	2
	 	    	(l)	  	“Employee”	  	2
	 	    	(m)	  	“Employer”	  	2
	 	    	(n)	  	“Exercise Date”	  	2
	 	    	(o)	  	“Grant Date”	  	2
	 	    	(p)	  	“Option”	  	2
	 	    	(q)	  	“Participant”	  	2
	 	    	(r)	  	“Plan”	  	3

  

 i 

									
	 1.3
	    	Construction	  	3
	 ARTICLE II. ADMINISTRATION
	  	3
	 2.1
	    	Appointment and Procedure of Committee	  	3
	 2.2
	    	Authority of Committee	  	3
	 ARTICLE III. PARTICIPATION
	  	3
	 3.1
	    	Eligibility to Participate	  	3
	 3.2
	    	Restrictions on Participation	  	4
	 3.3
	    	Leave of Absence	  	4
	 ARTICLE IV. CONTRIBUTIONS
	  	4
	 4.1
	    	Payroll Deductions	  	4
	 4.2
	    	Direct Payment	  	5
	 4.3
	    	Leave of Absence	  	5
	 4.4
	    	Contributions to Accounts	  	5
	 4.5
	    	Withdrawal of Contributions from Plan	  	5
	 4.6
	    	Termination of Employment	  	5
	 ARTICLE V. OPTIONS
	  	6
	 5.1
	    	Company Stock Available for Options	  	6
	 5.2
	    	Granting of Options	  	6
	 5.3
	    	Option Price	  	6
	 5.4
	    	Option Period	  	7
	 5.5
	    	Exercise of Options	  	7
	 	    	(a)	  	Automatic Exercise	  	7
	 	    	(b)	  	Nontransferability of Options	  	7
	 	    	(c)	  	Effect of Termination of Employment	  	7
	 	    	 	  	(i)	  	Termination of Employment Related to Cause	  	7
	 	    	 	  	(ii)	  	Termination of Employment Due to Death	  	8
	 	    	 	  	(iii)	  	Other Termination of Employment	  	8
	 	    	(d)	  	Leave of Absence	  	8

  

 ii 

							
	 	    	(e)	  	Delivery of Stock	  	9
	 	    	(f)	  	Acceleration of Exercisability of Options Upon Occurrence of Certain Events	  	9
	 	    	(g)	  	Registration, Listing and Qualification of Shares of Stock	  	9
	 ARTICLE VI. MISCELLANEOUS
	  	9
	 6.1
	    	Adjustments Upon Changes in Capitalization	  	9
	 6.2
	    	Approval of Stockholders	  	10
	 6.3
	    	Amendment, Suspension and Termination	  	10
	 6.4
	    	Intent to Comply With Code Section 423.	  	10
	 6.5
	    	Equal Rights and Privileges	  	10
	 6.6
	    	Use of Funds.	  	10
	 6.7
	    	Withholding	  	11
	 6.8
	    	Effect of Plan	  	11
	 6.9
	    	No Employment Rights	  	11
	 6.10
	    	Governing Law.	  	11
	 6.11
	    	Other Actions.	  	11

  

 iii 

 SPEEDWAY MOTORSPORTS, INC. 
 EMPLOYEE STOCK PURCHASE PLAN 
  
 AMENDED AND RESTATED 
 AS OF 
 MARCH 1, 2004 
  
 ARTICLE I. PURPOSE; DEFINITIONS; CONSTRUCTION 
  
 1.1 Purpose of Plan. The purpose of the Plan, which shall be known as the Speedway Motorsports, Inc. Employee Stock Purchase Plan (the “Plan”), is to provide employees of Speedway Motorsports, Inc.
(the “Company”) and its participating subsidiaries (which hereinafter shall be referred to collectively with the Company as the “Employer”) an opportunity to acquire a proprietary interest in the Company through the purchase of
the common stock, $.01 par value per share, of the Company. This Plan is intended to qualify as an “employee stock purchase plan” within the meaning of Section 423 of the Internal Revenue Code of 1986, as amended (the “Code”).

  
 1.2 Definitions. Throughout this Plan, the following
terms shall have the meanings indicated: 
  
 (a)
“Account” shall mean a memorandum account maintained to record each Participant’s Contributions pending purchase of Company Stock. 
  
 (b) “Base Pay” shall mean the Participant’s regular cash compensation (excluding overtime pay, bonuses, shift premiums,
commissions, fringe benefits, other special payments and imputed income) determined without reduction for Contributions made under this Plan or contributions to any Code Section 401(k) or Section 125 Plan. 
  
 (c) “Board of Directors” shall mean the Board of
Directors of the Company. 
  
 (d) “Business
Day” shall mean any day other than a Saturday, Sunday or holiday. 
  
 (e) “Cause” shall mean any act, action or series of acts or actions or any omission, omissions or series of omissions which, in the opinion of the Committee, result in, or which have the effect of resulting
in, (i) the commission of a crime by the Participant involving moral turpitude, which crime has a material adverse impact on the Employer, (ii) gross negligence or willful misconduct which is continuous and results in material damage to the
Employer, or (iii) the continuous, willful failure of the person in question to follow the reasonable directives of the Employer. 
  

 1 

 (f) “Code” shall mean the Internal Revenue Code of 1986, as amended, any
successor revenue laws of the United States, and the rules and regulations promulgated thereunder. 
  
 (g) “Committee” shall mean the Compensation Committee of the Board of Directors, or in the event that there is no Compensation
Committee or to the extent the authority of the Compensation Committee is limited, the Board of Directors. 
  
 (h) “Company” shall mean Speedway Motorsports, Inc., a company organized and existing under the laws of the State of Delaware.

  
 (i) “Company Stock” shall mean the
common stock, $.0l par value per share, of the Company. 
  
 (j) “Contributions” shall mean the after-tax payroll deductions or other permissible contributions made by Participants to the Plan pursuant to Article IV. 
  
 (k) “Effective Date” shall mean July 1, 1996 or as
soon as administratively practicable thereafter. The Plan’s original effective date was April 1, 1996. 
  
 (l) “Employee” shall mean any person who (i) is employed on a full-time or part-time basis by a participating Employer, (ii) is
regularly scheduled to work more than twenty hours per week, and (iii) is customarily employed more than five months in any calendar year. Independent contractors and outside directors shall not be included in the definition of Employee for purposes
of this Plan. 
  
 (m) “Employer” shall
mean the Company and any of its present or future subsidiaries (within the meaning of Sections 424(f) and (g) of the Code) which the Committee may designate from time to time as participating Employers under this Plan for purposes of a Grant Date.

  
 (n) “Exercise Date” shall mean the
last Business Day of March, June, September and December on which the principal trading market for Company Stock is open for trading, plus any other interim dates during the year which the Committee designates as Exercise Dates. 
  
 (o) “Grant Date” shall mean January 1 of each year
during the term of the Plan, plus any other interim dates during the year designated by the Board of Directors or the Committee. 
  
 (p) “Option” shall mean an option to purchase shares of Company Stock granted to a Participant pursuant to this Plan.

  

 2 

 (q) “Participant” shall mean an Employee participating in this Plan in
accordance with Article III. 
  
 (r)
“Plan” shall mean this Speedway Motorsports, Inc. Employee Stock Purchase Plan, as amended and restated as of March 1, 2004, and as subsequently amended from time to time. 
  
 1.3 Construction. The masculine gender, where appearing in the Plan, shall be deemed to include the feminine gender,
unless the context clearly indicates to the contrary. The words “hereof,” “herein,” “hereunder” and other similar compounds of the word “here” shall mean and refer to the entire Plan and not to any particular
provision or Section. 
  
 ARTICLE II. ADMINISTRATION

  
 2.1 Appointment and Procedure of Committee. The
Plan shall be administered by the Board of Directors or the Compensation Committee appointed by the Board of Directors. The Committee shall be appointed from time to time by the Board of Directors and shall consist of not fewer than two of its
members. No member of the Board of Directors who serves on the Committee shall be eligible to participate in the Plan. The Committee shall hold its meetings at such times and places as it may determine. A majority of its members shall constitute a
quorum. All determinations of the Committee shall be made by a majority of its members. Any decision or determination reduced to writing and signed by all members shall be as effective as if it had been made by a majority vote at a meeting duly
called and held. The Committee may appoint a Secretary (who need not be a member of the Committee). 
  
 2.2 Authority of Committee. The Committee, subject to the terms of the Plan, shall have plenary authority in its discretion to interpret and
construe the Plan (including, without limitation, any of its terms which are uncertain, doubtful or disputed); to decide all questions of Employee eligibility hereunder; to determine the amount, manner and timing of all Options and purchases of
Company Stock hereunder; to establish, amend and rescind rules and regulations pertaining to the administration of the Plan; and to make determinations and interpretations and take such other administrative actions as it deems necessary or advisable
for the administration of this Plan. The express grant in the Plan of any specific power to the Committee shall not be construed as limiting any power or authority of the Committee. No member of the Committee shall be liable for any act,
determination or omission with respect to his service on the Committee, if he acts in good faith and in a manner he reasonably believes to be in or not opposed to the best interests of the Employer. All expenses of administering this Plan shall be
borne by the Employer. 
  
 ARTICLE III. PARTICIPATION

  
 3.1 Eligibility to Participate. Subject to the
restrictions of Section 3.2 below, effective January 1, 2001, an Employee shall be eligible to participate in this Plan on a Grant Date if, as of such Grant Date, the Employee has been in the continuous service of the Employer 
  

 3 

 for at least six consecutive months and remains employed with the Employer. Prior to January 1, 2001, an Employee shall
be eligible to participate in this Plan on a Grant Date if, as of such Grant Date, the Employee has been in the continuous service of the Employer for at least one year and remains employed with the Employer. For this purpose, years of employment
prior to the Effective Date will be considered. If the Board of Directors or the Committee designates an interim Grant Date after January 1, 2000 and before January 1, 2001, an Employee shall be eligible to participate in this Plan on such Grant
Date if the Employee had been in the continuous service of the Employer for at least six consecutive months as of January 1, 2000 and remains employed with the Employer; provided, however, that an Employee who already had been eligible to
participate in the Plan on January 1, 2000 shall not be eligible to participate on such interim Grant Date. 
  
 For purposes of eligibility to participate in this Plan, the following service also shall be recognized: (a) service with an entity prior to the
acquisition by the Company, or one of its subsidiaries, of a controlling interest in or substantially all of the assets of such entity, and (b) service with Sonic Automotive, Inc. and its subsidiaries. 
  
 3.2 Restrictions on Participation. Notwithstanding the foregoing
Section 3.1, no Employee shall be eligible to participate in the Plan if such Employee owns or holds options to purchase (or upon participation in this Plan would own or hold options to purchase) stock possessing an aggregate of 5% or more of the
total combined voting power or value of all classes of stock of the Company or any of its subsidiaries (as determined in accordance with the rules of Code Section 424(d) relating to attribution of stock ownership). 
  
 3.3 Leave of Absence. Termination by the Company of an Employee’s
bona fide leave on absence, other than termination of such leave of absence on return to regular full-time or part-time employment, shall terminate an Employee’s employment for all purposes of the Plan. Notwithstanding the foregoing, for
purposes of participation in the Plan, an Employee on a leave of absence shall be deemed to continue to be an Employee for the first ninety days of such leave of absence and such Employee’s employment shall be deemed to have terminated at the
close of business on the ninetieth day of such leave of absence unless such Employee shall have returned to regular full-time or part-time employment prior to the close of business on such ninetieth day (or unless the Employee’s reemployment is
guaranteed by law or contract). 
  
 ARTICLE IV. CONTRIBUTIONS

  
 4.1 Payroll Deductions. By written election, made
and filed with the Committee pursuant to the Committee’s rules and procedures, a Participant may elect to designate a whole percentage between one percent and ten percent (or such higher or lower percentage as may be allowed by the
Committee’s rules and procedures) of his Base Pay to be deferred by payroll deduction as a Contribution to the Plan. Payroll deductions shall commence as soon as administratively practicable following the filing of such written election with
the Committee. The Committee may develop in its discretion additional rules and procedures regarding payroll deduction elections. 
  

 4 

 A Participant may change or revoke his payroll deduction amount by filing, on such forms and in
accordance with such rules and procedures as the Committee may prescribe in its discretion, a revised written election with the Committee. Such modification or revocation shall take effect as soon as administratively practicable after the
Committee’s receipt of such revised election. Notwithstanding the foregoing, a Participant may change his payroll deduction election only once each calendar quarter, or as otherwise specifically allowed by the Committee’s rules and
procedures. If payroll deductions are discontinued, payroll deductions may not be resumed by the Participant until the payroll period which begins on or after the following Exercise Date, or as otherwise specifically allowed by the Committee’s
rules and procedures. Under no circumstances may a Participant’s payroll deduction election be made, modified or revoked retroactively. 
  
 4.2 Direct Payment. In accordance with such rules and procedures as the Committee may prescribe in its discretion, in lieu of payroll deductions
pursuant to Section 4.1, a Participant may elect to make Contributions by direct cash payment (including by check, subject to the Committee’s rules and procedures) to the Plan rather than by payroll deduction. Such direct payments must be
received by the Plan at least ten Business Days prior to an Exercise Date in order for such payments to be applied in the exercise of an Option toward the purchase of Company Stock on such Exercise Date. 
  
 4.3 Leave of Absence. If a Participant goes on a bona fide leave of
absence, such Participant shall have the right to elect to (a) withdraw from the Plan and receive a distribution of the balance in his Account pursuant to Section 4.5, (b) discontinue Contributions to the Plan but remain a Participant in the Plan,
or (c) subject to Section 3.3, remain a Participant in the Plan during such leave of absence, authorizing deductions to be made from payments by the Company to the Participant during such leave of absence or making direct cash payments to the Plan
pursuant to Section 4.2. 
  
 4.4 Contributions to Accounts.
A memorandum Account shall be established by the Committee for each Participant for the purpose of accounting for Contributions. Contributions shall be credited to Accounts as soon as administratively practicable following payroll withholding or
receipt of other permissible direct cash payment. Amounts credited to Accounts will not accrue interest. 
  
 4.5 Withdrawal of Contributions from Plan. Prior to the end of a calendar quarter, a Participant may elect to withdraw the Contributions then
credited to his Account by filing written notice thereof with the Committee on such forms and in accordance with such procedures as the Committee may prescribe. The Participant’s Contributions shall be distributed to him as soon as
administratively practicable after the Committee’s receipt of his notice of withdrawal and, if applicable, payroll deductions from his Base Pay shall cease. 
  
 4.6 Termination of Employment. Upon termination of a Participant’s employment for any reason, such Participant
may no longer make Contributions to the Plan or be granted 
  

 5 

 Options under the Plan. A Participant’s right to exercise any unexpired Option he holds as of his termination of
employment for any reason unrelated to Cause may continue, if he so elects, until the next Exercise Date following such termination of employment pursuant to Section 5.5(c)(ii) or (iii), or he may withdraw the Contributions then credited to his
Account in accordance with Section 4.5. 
  
 ARTICLE V. OPTIONS

  
 5.1 Company Stock Available for Options. There
shall be available for Options under the Plan an aggregate maximum of 800,000 shares of Company Stock, subject to any adjustments which may be made pursuant to Section 6.1 of the Plan in connection with changes in capitalization of the Company.
Shares of Company Stock used for purposes of the Plan may be either authorized and unissued shares, or previously issued shares held in the treasury of the Company, or both. Shares of Company Stock covered by Options which have expired prior to
exercise shall be available for further Options granted hereunder. 
  
 5.2 Granting of Options. The Plan shall be implemented by annual offerings of approximately twelve months duration (except as otherwise provided in Section 5.4 or in the event of interim Grant Dates designated by the Board of
Directors or the Committee). On each Grant Date, all Employees eligible to receive an Option on such Grant Date shall be granted an Option to purchase shares of Company Stock. Prior to each Grant Date, the Committee shall determine the number of
shares of Company Stock available for purchase under each Option to be granted on such Grant Date; provided that, the same number of shares will be available under each Option granted on such Grant Date. No Participant may be granted an Option which
permits his rights to purchase stock under this Plan and all other employee stock purchase plans of the Company or Employer to accrue at a rate which exceeds $25,000 of the fair market value of such stock (determined at the time such Option is
granted) for each calendar year in which such Option is outstanding at any time. Furthermore, no Participant may be granted Options in any calendar year which permits the Participant to purchase more than 500 shares of Company Stock, subject to any
adjustments which are made pursuant to Section 6.1 (or such higher or lower number as the Committee may establish with respect to all subsequently granted Options for all Participants in the Plan, subject to the limitations of Code Section 423).

  
 5.3 Option Price. The purchase price per share of
Company Stock acquired pursuant to the exercise of all or any portion of an Option granted under this Plan shall be ninety percent of the lesser of (i) the fair market value per share of Company Stock on the applicable Grant Date, and (ii) the fair
market value per share of Company Stock on the applicable Exercise Date. For purposes of this Section 5.3, the fair market value per share of Company Stock shall be the closing price on the last Business Day prior to the date of reference, or in the
event that no sales take place on such date, the average of the closing high bid and low asked prices, in either case on the principal national securities exchange on which the Company Stock is listed or admitted to trading, or if the Company Stock
is not listed or admitted to trading on any national securities exchange, the last sale price reported on the National Market System of the National Association of Securities Dealers Automated Quotation system (“NASDAQ”) on such date, or
the average of 
  

 6 

 the closing high bid and low asked prices of the Company Stock in the over-the-counter market reported on NASDAQ on such
date, as furnished to the Committee by any New York Stock Exchange member selected from time to time by the Committee for such purposes. If there is no bid or asked price reported on any such date, the fair market value shall be determined by the
Committee in accordance with the regulations promulgated under Code Section 2031, or by any other appropriate method selected by the Committee. 
  
 5.4 Option Period. Each Option granted to a Participant under the Plan shall expire on the earliest of (a) the last Exercise Date of the calendar
year in which the Option was granted, (b) the Participant’s voluntary withdrawal from the Plan following termination of employment, and (c) the date of the Participant’s termination of employment related to Cause, or the Exercise Date
immediately following the Participant’s termination of employment for any reason unrelated to Cause. In no event will the duration of an Option period exceed twenty-seven months (or such other applicable period permitted under Code Section
423(b)(7)) from the date on which such Option is granted. 
  
 5.5
Exercise of Options. 
  
 (a) Automatic
Exercise. Any Option granted to a Participant shall be exercised automatically on each Exercise Date during the calendar year of the Option’s Grant Date in whole or in part such that the Participant’s accumulated Contributions as of
such Exercise Date shall be applied to the purchase of the maximum number of whole shares of Company Stock that his Contributions will allow at the applicable Option price (determined in accordance with Section 5.3), limited to the number of shares
subject to such Option. In the event that the number of shares of Company Stock that may be purchased by all Participants in the Plan exceeds the number of shares then available for issuance under the Plan, the Committee shall make a pro rata
allocation of the available shares in as uniform a manner as it determines to be practicable and equitable. Any remaining Contributions in the Participant’s Account amounting to less than the Option price of a whole share of Company Stock shall
be carried forward and applied on the next Exercise Date; provided that, Contributions remaining after the last Exercise Date of the calendar year may be distributed to the Participant at his election. 
  
 (b) Nontransferability of Options. During a
Participant’s lifetime, Options held by such Participant shall be exercisable only by that Participant. No Option shall be transferable other than by will or the laws of descent and distribution. 
  
 (c) Effect of Termination of Employment. 

 
 (i) Termination of Employment Related to Cause.
Upon termination of a Participant’s employment related to Cause, the Participant’s participation in the Plan also shall terminate. Any unexpired Option he holds will expire as of the date of his termination of employment. Remaining
contributions credited to his Account shall be distributed to the Participant as soon as administratively practicable following termination of employment. 
  

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 (ii) Termination of Employment Due to Death. In the event of the death of the
Participant while employed, or during the period following his termination of employment for any reason unrelated to Cause but prior to the next Exercise Date, the Participant’s estate shall have the right to elect by written notice to the
Committee prior to the earlier of the expiration of sixty days commencing with the date of the Participant’s death and the Exercise Date next following the date of the Participant’s death: 
  
 (A) To withdraw all of the Contributions then credited to
the Participant’s Account under the Plan, or 
  
 (B) To allow any unexercised Options held by the Participant as of the date of his death for the purchase of Company Stock to be exercised on the Exercise Date next following the date of the Participant’s death in accordance with
Section 5.5(a), but only to the extent such Options were exercisable on the date of the Participant’s death, with any remaining Contributions credited to the Participant’s Account being distributed to the Participant’s estate as soon
as administratively practicable after such Exercise Date. 
  
 In
the event that no such written election is timely and properly received by the Committee, all Contributions credited to the Participant’s Account shall be distributed to the Participant’s estate. In no event shall any Option be exercisable
beyond the applicable exercise period specified in Section 5.4 of the Plan. 
  
 (iii) Other Termination of Employment. Upon termination of a Participant’s employment for any reason unrelated to Cause or death, the Participant may at his election: 
  
 (A) Withdraw from the Plan pursuant to Section 4.5 and
request the return of the remaining Contributions then credited to his Account, or 
  
 (B) Continue participation in the Plan, subject to the provisions of Section 4.6, until the Exercise Date next following his date of
termination of employment for the limited purpose of allowing any unexpired Options he holds as of his termination of employment to be exercised automatically in accordance with Section 5.5(a) on the Exercise Date next following his termination of
employment, but only to the extent such Options were exercisable on the date of the Participant’s termination of employment, with any remaining Contributions credited to the Participant’s Account being distributed to the Participant as
soon as administratively practicable after such Exercise Date. 
  
 (d) Leave of Absence. A Participant on a bona fide leave of absence shall, subject to the election made by such Participant pursuant to Section 4.3 and subject to this Section 5.5(d), continue to be a
Participant in the Plan so long as such Participant is on such bona fide leave of absence. A Participant who has been on a bona fide leave of absence for more than ninety days and who therefore is not an Employee for purposes of the Plan (unless the
right to reemployment is guaranteed by statute or contract) shall not be entitled to participate in any 
  

 8 

 offering commencing on any Grant Date following the ninetieth day of such leave of absence.
Notwithstanding any other provisions of the Plan, unless a Participant on a bona fide leave of absence returns to regular full-time or part-time employment with the Employer at the earlier of (i) the termination of such leave of absence, or (ii) the
day after the ninetieth day of such leave of absence, such Participant’s employment shall be deemed to have terminated for purposes of the Plan on whichever of such dates first occurs (unless the Participant’s right to reemployment is
guaranteed by statute or contract). 
  
 (e)
Delivery of Stock. As soon as administratively practicable after each Exercise Date, the Company or the Committee will deliver, as applicable, certificates evidencing shares of Company Stock purchased under this Plan. 
  
 (f) Acceleration of Exercisability of Options Upon
Occurrence of Certain Events. In connection with any merger or consolidation in which the Company is not the surviving corporation and which results in the holders of the outstanding voting securities of the Company (determined immediately prior
to such merger or consolidation) owning less than a majority of the outstanding voting securities of the surviving corporation (determined immediately following such merger or consolidation), or any sale or transfer by the Company of all or
substantially all its assets or any tender offer or exchange offer for or the acquisition, directly or indirectly, by any person or group of all or a majority of the then-outstanding voting securities of the Company, all outstanding Options under
the Plan shall become exercisable in full, notwithstanding any other provision of the Plan or of any outstanding Options granted thereunder, on and after (i) the fifteenth day prior to the effective date of such merger, consolidation, sale, transfer
or acquisition or (ii) the date of commencement of such tender offer or exchange offer, as the case may be. Notwithstanding the foregoing, in no event shall any Option be exercisable after the date of termination of the exercise period of such
Option specified in Section 5.4. 
  
 (g)
Registration, Listing and Qualification of Shares of Stock. Each Option shall be subject to the requirement that if at any time the Company shall determine that the registration, listing or qualification of shares of Company Stock covered
thereby upon any securities exchange or under any federal or state law, or the consent or approval of any governmental regulatory body, is necessary or desirable as a condition of, or in connection with, the granting of such option or the purchase
of shares of Company Stock thereunder, no such Option may be exercised unless and until such registration, listing, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Company. The
Company may require that any person for whom an Option is being exercised make such representations and agreements and furnish such information as it deems appropriate to assure compliance with the foregoing or any other applicable legal
requirement. 
  
 ARTICLE VI. MISCELLANEOUS 
  
 6.1 Adjustments Upon Changes in Capitalization. In the event of a
reorganization, stock split, stock dividend, combination of shares, merger, consolidation, rights offering or any 
  

 9 

 other change in the corporate structure or shares of the Company, the Committee may make such adjustments to the extent
and in the manner it deems appropriate in the number and/or kind of shares of Company Stock available for issuance under the Plan, the number and/or kind of shares of Company Stock subject to outstanding Options under the Plan, and in the Option
exercise price per share. In addition, the Committee may make such other adjustments as it determines to be equitable. Any adjustments made pursuant to this Section 6.1 remain subject to the limitations of Code Section 423 (including its $25,000
annual limitations). 
  
 6.2 Approval of Stockholders.
Within twelve months before or after the Plan is originally adopted, this Plan must be approved by a majority of the votes cast thereon by the stockholders of the Company at a meeting of stockholders duly called and held for such purpose or by
unanimous written consent of such stockholders, and no Option granted hereunder shall be exercisable prior to such approval. 
  
 6.3 Amendment, Suspension and Termination. The Board of Directors may at any time amend, suspend or terminate this Plan; provided, however, that no
amendment, suspension or termination may, without the consent of a Participant, adversely affect the rights of the Participant under any Option he then holds; and provided further, that approval by the stockholders of the Company shall be required
for an amendment, suspension or termination to the extent necessary to comply with any applicable law or regulation or the rules of any self-regulatory organization that are applicable to the Company or this Plan. Any required stockholder approval
shall be deemed to have been given upon approval by a majority of the votes cast on such amendment, suspension or termination by the stockholders of the Company at a meeting of stockholders duly called and held for such purpose or by unanimous
written consent of such stockholders. The Plan will continue until terminated by the Board of Directors or until all of the shares of Company Stock reserved for issuance under the Plan have been issued, whichever first occurs. 
  
 6.4 Intent to Comply With Code Section 423. It is intended that this
Plan qualify as an “employee stock purchase plan” under Code Section 423. The provisions of this Plan shall be construed so as to extend and limit participation in a manner consistent with the requirements of that Section of the Code. In
the event of an inconsistency between the Plan and Code Section 423, the Plan shall be interpreted in a manner which complies with the requirements of Code Section 423 and the regulations thereunder, without further act or amendment by the Company
or the Board of Directors unless otherwise required pursuant to Section 6.3 of this Plan. 
  
 6.5 Equal Rights and Privileges. All Participants granted Options under this Plan shall have equal rights and privileges within the meaning of Code Section 423(b)(5) and the regulations thereunder. The
provisions applying to one Option granted on a Grant Date must apply in the same manner to all other Options granted on such Grant Date. 
  
 6.6 Use of Funds. All Contributions received and held by the Employer under this Plan may be used by the Employer for any corporate purpose and the
Employer shall not be obligated to segregate such Contributions. 
  

 10 

 6.7 Withholding. It shall be a condition to the obligation of the Company to issue shares of
Company Stock upon exercise of an Option that the Participant (or his estate pursuant to Section 5.5(c)(ii)), through payroll withholding, cash payment or otherwise, make adequate provision acceptable to the Company to satisfy any tax withholding
obligations arising in connection with Options granted hereunder or Common Stock acquired upon the exercise thereof, including taxes owed by the Participant due to the disposition of Company Stock by the Participant prior to the expiration of the
holding periods described in Code Section 423 (a). 
  
 6.8
Effect of Plan. This Plan shall be binding upon each Participant and his successors, including, without limitation, such Participant’s estate and the executors, administrators or trustees thereof, heirs and legatees, and any receiver,
trustee in bankruptcy or representative of creditors of such Participant. 
  
 6.9 No Employment Rights. Nothing in this Plan or in any Option granted pursuant to the Plan shall be construed as a contract of employment between the Employer and any employee, or as a right of any employee
to continue in the employ of the Employer, or as a limitation of the right of the Employer to discharge any of its employees, with or without cause. 
  
 6.10 Governing Law. This Plan and all rights and obligations hereunder shall be construed in accordance with and governed by the laws of the State
of North Carolina (excluding the principles of conflict of laws thereof), except to the extent such laws are preempted by the laws of the United States. 
  
 6.11 Other Actions. Nothing contained in the Plan shall be construed to limit the authority of the Company to exercise its corporate rights and
powers, including, but not by way of limitation, the right of the Company to grant or assume options for proper corporate purposes other than under the Plan with respect to any employee or other person, firm, corporation or association. 

 

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