Document:

EX-10.6

 Exhibit 10.6 

SONIC AUTOMOTIVE, INC. 

2012 STOCK INCENTIVE PLAN 

RESTRICTED STOCK UNIT AGREEMENT 

This Restricted Stock Unit Agreement (the “Restricted Stock Unit Agreement”) is entered into as of <Date
Granted> (the “Grant Date”) between SONIC AUTOMOTIVE, INC., a Delaware corporation (the “Company”), and <Name> (the “Participant”).  

WHEREAS, the Company has established the Sonic Automotive, Inc. 2012 Stock Incentive Plan (the “Plan”), pursuant to which the
Company may, from time to time, make grants of restricted stock units (“Restricted Stock Units”) to eligible employees and other individuals providing services to the Company and its Subsidiaries (as defined in the Plan); and  

WHEREAS, in consideration for the Participant’s service to the Company and/or its Subsidiaries, the Company has determined to
grant the Participant a certain number of Restricted Stock Units representing the contingent right to receive [a certain number of shares] [the value of a certain number of shares] of the Company’s Class A Common Stock, par value $.01 per
share (the “Common Stock”), pursuant to the terms and conditions of the Plan and this Restricted Stock Unit Agreement[, and which grant of Restricted Stock Units also is in consideration for and conditioned upon the Participant entering
into the Restrictive Covenants and Confidentiality Agreement that accompanies this Restricted Stock Unit Agreement (unless such a Restrictive Covenants and Confidentiality Agreement was previously executed and delivered to the Company in connection
with a prior stock incentive award)]; 
 NOW, THEREFORE, in consideration of the promises, mutual covenants and agreements
hereinafter set forth, the Company and the Participant hereby agree as follows: 
 1. Grant of Restricted Stock
Units. In consideration for the Participant’s service to the Company and/or its Subsidiaries and subject to the terms and conditions set forth in this Restricted Stock Unit Agreement and the Plan, the Company hereby grants to the
Participant
                            (          
  ) Restricted Stock Units (the “Restricted Stock Units”).  
 [This grant of Restricted
Stock Units also is subject to the Participant’s entering into the accompanying Restrictive Covenants and Confidentiality Agreement. If the Participant has previously executed and delivered to the Company the Restrictive Covenants and
Confidentiality Agreement in connection with a prior stock incentive award, the Participant shall be deemed to have satisfied such condition with respect to this grant of Restricted Stock Units.] 

2. Vesting Conditions. Except as otherwise provided below in Section 3 or elsewhere in this Restricted Stock
Unit Agreement, the Restricted Stock Units shall vest <insert vesting schedule>. Vesting on any such date is subject to the Participant’s continued service with the Company through such date and subject to the other terms of
this Restricted Stock Unit Agreement.  

 3. Termination of Service.  

(a) Involuntary Termination Without Cause. If the Participant incurs an Involuntary Termination Without Cause prior to [full
vesting date] in a manner that constitutes a separation from service under Section 409A of the Code, the Restricted Stock Units shall become fully vested (to the extent not yet vested) on the date of such termination. 

(b) Death or Disability. In the event of the Participant’s death or Disability prior to [full vesting date] and prior to
any Termination of Service, the Restricted Stock Units shall become fully vested (to the extent not yet vested) on the date of such death. 

(c) Termination For Cause and Other Termination of Employment. If the Participant incurs a Termination of Service for Cause or for any
other reason not specifically addressed above (including voluntary resignation), all unvested Restricted Stock Units shall be immediately and automatically forfeited by the Participant. 

(d) Definitions. For purposes of this Restricted Stock Unit Agreement, the following terms have the definitions indicated: 

(i) “Cause” means any act, action or series of acts or actions or any omission, omissions or series of omissions which
result in, or which have the effect of resulting in, (A) the commission of a crime by the Participant involving moral turpitude, which crime has a material adverse impact on the Company or any Subsidiary or which is intended to result in the
personal enrichment of the Participant at the expense of the Company or any Subsidiary; (B) a material violation of the Participant’s responsibilities; (C) the Participant’s gross negligence or willful misconduct; or (D) the
continuous, willful failure of the Participant to follow the reasonable directives of the Company’s Board of Directors. 
 (ii)
“Code” has the meaning given to such term under the Plan. 
 (iii) “Disability” means that the
Participant is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve months: (A) unable to engage in any
substantial gainful activity, or (B) receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Company. Disability shall be determined in accordance with
Section 409A of the Code. 
 (iv) “Involuntary Termination Without Cause” means a Termination of Service due to the
dismissal of, or the request for the resignation of, the Participant either (A) by 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 (B) by a duly authorized corporate officer of the Company or any
Subsidiary, or by the Company’s Board of Directors, for any reason other than for Cause. 
 (v) “Termination of
Service” has the meaning given to such term under the Plan. 
 [Replace/revise foregoing with alternative or different terms as
determined by the Committee in accordance with Plan terms] 

  
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 4. Settlement of Restricted Stock Units. The number of Restricted
Stock Units that become vested as of a specified date pursuant to Section 2 above shall be converted to, and settled in the form of, [a single payment in the form of an equivalent number of shares of Common Stock] [in a cash payment equal to
the Fair Market Value of the shares of Common Stock with respect to which the Restricted Stock Units were granted] within thirty-one (31) days after such date and the number of Restricted Stock Units that become vested as of an earlier date due
to death, Disability or Termination of Service due to Involuntary Termination Without Cause shall be converted to, and settled in the form of, a single complete payment of an equivalent number of shares of Common Stock within thirty-one
(31) days after such date; provided, that the Participant shall not be permitted, directly or indirectly, to designate the taxable year of the payment.  

Notwithstanding the foregoing, if vesting and payment are triggered by an Involuntary Termination Without Cause that constitutes a separation
from service under Section 409A of the Code and the Participant is classified as of the date of such separation from service as a “specified employee” within the meaning of that term under Section 409A(a)(2)(B) of the Code (and
determined by the Company in accordance with its procedures for such purpose), such payment instead shall be made on the first business day following the expiration of the six (6)-month period measured from the date of the Participant’s
separation from service (or, in accordance with Section 409A of the Code, an earlier date during such six-month period in the event of the Participant’s death during such period). The foregoing shall apply only to the extent any of the
Restricted Stock Units provide for a deferral of compensation under Section 409A of the Code. 
 [Replace/revise foregoing with alternative
or different terms as determined by the Committee in accordance with Plan terms]  
 5. Change in
Control. In the event of a Change in Control (as defined in the Plan), the Restricted Stock Units shall vest and become payable to the extent provided in the Plan, with such settlement made in a single complete payment in the form of an
equivalent number of shares of Common Stock within thirty (30) days following such Change in Control; provided, that to the extent any of the Restricted Stock Units provide for a deferral of compensation under Section 409A of the Code, the
foregoing shall apply only if such “change in control” also constitutes a “change in control event” under Section 409A of the Code. 

6. Dividend Equivalents. [If applicable, describe the form, time of payment and other terms of dividend
equivalents to be received if the Board of Directors declares a cash dividend with respect to the Common Stock, as specified by the Compensation Committee in accordance with the Plan.] 

7. No Rights as Stockholder Prior to Settlement. The Participant shall have no rights as a stockholder of the
Company with respect to any shares of Common Stock represented by the Restricted Stock Units until the Participant shall have become the holder of record of such Common Stock. No adjustments shall be made for distributions (whether in cash, units,
securities or other property) by the Company or other rights for which the record date is prior to the date that the Participant shall have become the holder of record of such shares of Common Stock. 

8. Restrictions on Transferability. The Participant may not sell, assign, convey, pledge, exchange, hypothecate,
alienate or otherwise dispose of or transfer the Restricted Stock Units in any manner. No assignment, pledge or transfer of the Restricted Stock Units, or of the  

  
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rights represented thereby, whether voluntary or involuntary, by operation of law or otherwise, shall be effective; but immediately upon any such attempt to assign, pledge or otherwise transfer
the Restricted Stock Units, the Restricted Stock Units shall be forfeited. 
 9. Company Policies. The
Restricted Stock Units are subject to the terms and conditions of any policy regarding clawbacks, forfeitures, or recoupments adopted by the Company from time to time. Without limiting the foregoing, by acceptance of the Restricted Stock Units, the
Participant agrees to repay to the Company or any Subsidiary any amount that may be required to be repaid under any such policy. 

10. Restrictive Covenants. In the event that the Company determines that the Participant has violated the terms of
any secrecy, confidentiality, noncompetition, no-solicit, no-hire or other restrictive covenants or clauses contained in any agreement with the Company and/or one or more Subsidiaries including but not limited to any Restrictive Covenants and
Confidentiality Agreement (even if such covenants, clauses or agreements are held invalid or unenforceable), then (a) any unvested Restricted Stock Units and any shares of Common Stock arising from vested Restricted Stock Units that have not
yet been delivered to the Participant shall be immediately and automatically forfeited and rescinded upon such violation and (b) if any other Restricted Stock Units have vested after such violation or within two (2) years prior to such
violation, then (without regard to tax consequences) the Participant agrees to return the corresponding shares of Common Stock to the Company or if the Participant has sold or disposed of such shares, the Participant agrees to immediately pay the
Company an amount equal to the fair market value of such shares at the time of such sale or disposition. Subject to applicable law, the Company and its Subsidiaries shall have the right to offset such payment amount against any amounts otherwise
owed to the Participant by the Company or a Subsidiary (including, but not limited to, wages or other compensation, vacation pay, fringe benefits or pursuant to any other compensatory arrangement); provided, that any payment that constitutes
nonqualified deferred compensation subject to Section 409A of the Code, as determined by the Company, shall be subject to offset only to the extent such offset would not give rise to a failure to comply with Section 409A of the Code.
Notwithstanding the foregoing, nothing under this Section shall limit the Company’s or its Subsidiaries’ remedies under any such agreements containing secrecy, confidentiality, noncompetition, no-solicit and/or no-hire covenants or clauses
or otherwise against the Participant for violations thereof. 
 11. Forfeiture Procedures. In the
event of the forfeiture of any Restricted Stock Units, such forfeiture shall be automatic and without further act or deed by the Participant. Notwithstanding the foregoing, if requested by the Company (or its agent), the Participant shall execute
such documents (including, without limitation, a power of attorney in favor of the Company) and take such other action deemed necessary or desirable by the Company to evidence such forfeiture.  

12. Tax Matters (Withholding). The Participant shall pay or make provision for payment to the Company or a Subsidiary, as
applicable, through payroll or other withholding (which withholding the Participant hereby authorizes) or other means acceptable to the Committee and permissible under the Plan, the amount necessary to satisfy any federal, state or local withholding
requirements applicable to any taxable event arising in connection with the Restricted Stock Units (including, without limitation, vesting events). If other satisfactory withholding arrangements have not been made by the Participant and unless
otherwise provided by the 

  
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Committee, the Company shall retain and withhold from the Common Stock otherwise deliverable to the Participant upon vesting of the Restricted Stock Units such number of shares with a fair market
value sufficient to satisfy the statutory minimum required withholding amount and any remaining amount shall be otherwise satisfied as described above. The determination of the withholding amounts due shall be made by the Company and/or its
Subsidiaries and shall be binding upon the Participant. The Company shall not be required to deliver such shares of Common Stock unless the Participant has made acceptable arrangements to satisfy any such withholding requirements. Nothing in this
Section shall be construed to impose on the Company a duty to withhold where applicable law does not require such withholding. 
 THE
PARTICIPANT ACKNOWLEDGES THAT THE PARTICIPANT IS RESPONSIBLE FOR AND IS ADVISED TO CONSULT WITH THE PARTICIPANT’S OWN TAX ADVISORS REGARDING THE TAX CONSEQUENCES TO THE PARTICIPANT THAT MAY ARISE IN CONNECTION WITH THE RESTRICTED STOCK UNITS.

 13. Adjustments. Subject to the Plan, in the event of a reorganization, recapitalization, stock split, stock
dividend, extraordinary dividend, spin-off, combination of shares, merger, consolidation or similar transaction or other change in corporate capitalization affecting the Common Stock, equitable adjustments and/or substitutions, as applicable, will
be made to the outstanding Restricted Stock Units by the Committee to prevent the dilution or enlargement of rights. The Committee also will make adjustments in its discretion to eliminate any resulting fractional shares.  

The existence of the Restricted Stock Units does not affect in any way the authority of the Company and its stockholders to exercise their
corporate rights and powers, including, but not by way of limitation, 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, the issuance of securities with preference ahead of or affecting the Common Stock, or any sale or transfer of all or any part of its business or assets. 

14. Nature of Arrangement. The Participant’s rights under this Restricted Stock Unit Agreement shall be only contractual in
nature unsecured by any assets of the Company or any Subsidiary. The Company shall not be required to segregate any specific funds, assets or other property from its general assets with respect to the Restricted Stock Units. The Participant shall
have no rights under this Restricted Stock Unit Agreement other than as an unsecured general creditor of the Company. To the extent that this Restricted Stock Unit Agreement provides for a deferral of compensation within the meaning of
Section 409A of the Code, this Restricted Stock Unit Agreement is intended to comply with Section 409A of the Code and shall be interpreted consistent with such intent. References in this Restricted Stock Unit Agreement to
Section 409A of the Code also shall be deemed to include reference to applicable regulations or other authoritative guidance thereunder, and any amendments or successor provisions to such section, regulations or guidance. To the extent
applicable, each and every payment made pursuant to this Restricted Stock Unit Agreement shall be treated as a separate payment and not as one of a series of payments treated as a single payment for purposes of Section 409A of the Code.
Notwithstanding the foregoing, the Company does not guarantee to the Participant that this Restricted Stock Unit Agreement complies with or is exempt from Section 409A, and shall not indemnify or hold harmless the Participant with respect to
any tax consequences that arise from any such failure under Section 409A of the Code. 

  
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 15. Securities Laws. Notwithstanding any provision herein to the contrary or in the
Plan, the Company shall be under no obligation to issue any shares of Common Stock to the Participant pursuant to this Restricted Stock Unit Agreement unless and until the Company has determined that such issuance is either exempt from registration,
or is registered, under the Securities Act of 1933, as amended, and is either exempt from registration and qualification, or is registered or qualified, as applicable, under all applicable state securities or “blue sky” laws. Nothing in
this Restricted Stock Unit Agreement shall be construed to obligate the Company 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 any Common Stock that may be issued pursuant to this Restricted Stock Unit Agreement. The Company may require that the Participant make such representations and agreements and furnish such information as the Company deems appropriate
to assure compliance with applicable legal and regulatory requirements. 
 16. Resolution of Disputes;
Interpretation. Any question of interpretation, dispute or disagreement that arises under, or as a result of, this Restricted Stock Unit Agreement shall be determined by the Committee in its absolute and uncontrolled discretion, and any
determination or other interpretation by the Committee in connection with this Restricted Stock Unit Agreement shall be final, binding and conclusive on all parties affected thereby.  

17. Personal Data. The Participant acknowledges that Plan participation and receipt of awards under the Plan
(including the Restricted Stock Units) involve the use and transfer, in electronic or other form, of personal data about the Participant between and among the Company, its Subsidiaries and third-party service providers. This data may include, but is
not limited to, the Participant’s name, home address, telephone number, date of birth, social security number, information regarding securities of the Company held by such Participant, and details of awards granted to the Participant under the
Plan, including the Restricted Stock Units. By accepting the Restricted Stock Units, the Participant consents and agrees that the Company and its Subsidiaries may transfer such data to third parties assisting the Company in the administration and
management of the Plan, the Restricted Stock Units and the Participant’s participation in the Plan, including any requisite transfer of such data to a broker or other third party with whom the Company or the Participant may deposit any shares
of Common Stock. 
 18. Miscellaneous. 

(a) Binding on Successors and Representatives. Subject to the transfer restrictions applicable to the Participant hereunder and
other conditions hereof, this Restricted Stock Unit Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Company and the Participant’s heirs, executors, administrators and personal representatives; and
the parties agree, for themselves and their successors, representatives and assigns, to execute any instrument that may be necessary legally to effect the terms and conditions of this Restricted Stock Unit Agreement. 

(b) No Employment Rights. Nothing contained in this Restricted Stock Unit Agreement shall confer upon the Participant any right to
continue in the employ or service of the 

  
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Company or any Subsidiary nor interfere with or limit in any way the right of the Company or a Subsidiary to terminate the Participant’s employment by, or performance of services for, the
Company or Subsidiary at any time. 
 (c) Entire Agreement. This Restricted Stock Unit Agreement together with the Plan
constitute the entire agreement of the parties with respect to the Restricted Stock Units and supersede any previous agreement, whether written or oral, with respect thereto. This Restricted Stock Unit Agreement has been entered into in compliance
with the terms of the Plan; wherever a conflict may arise between the terms of this Restricted Stock Unit Agreement and the terms of the Plan, the terms of the Plan shall control. 

(d) Amendment. Except as otherwise provided below or in the Plan, neither this Restricted Stock Unit Agreement nor any of the
terms and conditions herein set forth may be altered or amended orally, and any such alteration or amendment shall be effective only when reduced to writing and agreed to by each of the parties hereto. Notwithstanding the foregoing, to the extent
applicable, it is intended that this Restricted Stock Unit Agreement comply with the provisions of Section 409A of the Code. The Company or the Committee may, without obtaining the Participant’s written consent, amend this Restricted Stock
Unit Agreement in any respect either deems necessary or advisable to comply with Section 409A of the Code and applicable regulations and guidance thereunder and/or to prevent this Restricted Stock Unit Agreement from being subject to
Section 409A of the Code. 
 (e) Construction of Terms and Definitions. Any reference herein to the singular or plural
shall be construed as plural or singular whenever the context requires. Capitalized terms not otherwise defined in this Restricted Stock Unit Agreement shall have the meanings ascribed to them in the Plan. 

(f) Notices. All notices required and permitted to be given hereunder shall be in writing and shall be deemed to have been given
(i) if delivered by hand, when so delivered; (ii) if sent by Federal Express or other overnight express service, one (1) business day after delivery to such service; or (iii) if mailed by certified or registered mail, return
receipt requested, three (3) days after delivery to the post office. In each case, all notices shall be addressed to the intended recipient as follows or at such other address as is provided by either party by notice to the other: 

 

			
	If to the Company:	  	With a copy to:
		
	Sonic Automotive, Inc.	  	Sonic Automotive, Inc.
	Attention: Chief Financial Officer	  	Attention: General Counsel
	4401 Colwick Road	  	4401 Colwick Road
	Charlotte, NC 28211	  	Charlotte, NC 28211

 If to the Participant: 

The Participant’s address appearing in the Company’s records. 

(g) Governing Law. This Restricted Stock Unit Agreement shall be governed by, and construed in accordance with, the laws of the
State of North Carolina, without regard to its principles of conflict of laws. The parties agree that any action, suit or proceeding arising out of or related to this Restricted Stock Unit Agreement shall be instituted only in the state or federal
courts sitting in Mecklenburg County, North Carolina. 

  
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 (h) Severability. The invalidity or unenforceability of any particular provision of
this Restricted Stock Unit Agreement 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. 
 (i) Electronic Delivery and Acknowledgement. The Participant also acknowledges and agrees that the Company may, in
its discretion, deliver documents related to the Restricted Stock Units and participation in the Plan (including, without limitation, this Restricted Stock Unit Agreement, Plan documents and disclosures that may be required by the Securities and
Exchange Commission) by electronic means, including through an on-line or electronic system (including by posting them on a website) established and maintained by the Company or a third party designated by the Company, and the Participant consents
to receive documents in such manner. Regardless of whether the Company delivers and permits or requires acceptance of this Restricted Stock Unit Agreement electronically, the Participant agrees to be bound by all terms and provisions of this
Restricted Stock Unit Agreement and the Plan. 
 IN WITNESS WHEREOF, the parties hereto have executed this Restricted Stock Unit Agreement
effective as of the day and year first written above. 
  

							
	SONIC AUTOMOTIVE, INC.	 		 	PARTICIPANT: <NAME>
				
	By:	 	  
	 		 	  

				
	Title:	 	  
	 		 	

  
 8EX-10.7

 Exhibit 10.7 

SONIC AUTOMOTIVE, INC. 

2012 STOCK INCENTIVE PLAN 

STOCK APPRECIATION RIGHTS AGREEMENT 

This Stock Appreciation Rights Agreement is entered into as of <Date Granted> between SONIC AUTOMOTIVE, INC., a Delaware
corporation (the “Company”), and <Name> (the “Participant”). 
 WHEREAS, the Company has
established the Sonic Automotive, Inc. 2012 Stock Incentive Plan pursuant to which the Company may, from time to time, grant stock appreciation rights to eligible employees and other individuals providing services to the Company and its
Subsidiaries; and 
 WHEREAS, in consideration for the Participant’s service to the Company and/or its Subsidiaries, the
Company has determined to grant the Participant stock appreciation rights pursuant to the terms and conditions of this Stock Appreciation Rights Agreement (the “SAR Agreement”) and the Plan[, and which stock appreciation rights also are in
consideration for and conditioned upon the Participant entering into the Restrictive Covenants and Confidentiality Agreement that accompanies this SAR Agreement (unless such Restrictive Covenants and Confidentiality Agreement was previously executed
and delivered to the Company in connection with a prior stock incentive award)]; 
 NOW, THEREFORE, in consideration of the
promises and the mutual covenants and agreements hereinafter set forth, the parties hereby agree as follows: 
 1.
Definitions. For purposes of this SAR Agreement, the following terms have the meanings set forth in the Plan, as generally defined below. Capitalized terms not otherwise defined in this SAR Agreement have the
meanings indicated in the Plan. 
 (a) “Cause” means any act(s) or omission(s) that result in, or that 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 Company or any Subsidiary or which is intended to result in the personal enrichment of the
Participant at the expense of the Company or any Subsidiary; (ii) a material violation of the Participant’s responsibilities; (iii) the Participant’s gross negligence or willful misconduct; or (iv) the continuous, willful
failure of the Participant to follow the reasonable directives of the Company’s Board of Directors. 
 (b) “Committee”
means the Compensation Committee of the Company’s Board of Directors or such other committee that is designated by the Board of Directors to administer the Plan. In the event that no such Committee exists or is appointed,
“Committee” refers to the Company’s Board of Directors. 
 (c) “Common Stock” means the Class A
Common Stock, par value $.01 per share, of the Company. 
 (d) “Disability” means the permanent and total disability of the
Participant, determined in accordance with the Plan. 

 (e) “Initial Value” means the initial value assigned to each SAR as set forth in
Section 2 of the SAR Agreement. 
 (f) “Involuntary Termination Without Cause” means the dismissal of, or the request
for the resignation of, the Participant either (i) by 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) by a duly authorized corporate officer of the Company or any Subsidiary, or by the Company’s
Board of Directors, for any reason other than for Cause. 
 (g) “Participant” means the person to whom the SAR is granted
and, as applicable, the estate, personal representative, beneficiary or other permitted transferee to whom the SARs may be transferred pursuant to this SAR Agreement by will or the laws of descent and distribution, or as otherwise permitted by the
Plan. 
 (h) “Plan” means the Sonic Automotive, Inc. 2012 Stock Incentive Plan, as amended from time to time. 

(i) “SAR” means a stock appreciation right granted to the Participant pursuant to this SAR Agreement. 

(j) “SAR Agreement” means this Stock Appreciation Rights Agreement between the Company and the Participant. 

(k) “SAR Period” means the period beginning on the date of this SAR Agreement and ending at the close of business
<insert number of years – no more than ten years> years from the date of this SAR Agreement. 
 (l)
“Subsidiary” means a corporation, partnership, limited liability company, joint venture or other entity in which the Company directly or indirectly controls more than 50% of the voting power or equity or profits interests. 

(m) “Termination of Service” means the termination of the Participant’s service with the Company and its Subsidiaries. A
Participant generally shall be considered to have incurred a Termination of Service if his or her employer ceases to be a Subsidiary. All determinations relating to whether the Participant has incurred a Termination of Service and the effect thereof
shall be made by the Committee, including whether a leave of absence shall constitute a Termination of Service, subject to applicable law. 

2. Grant of SARs. Subject to the terms and conditions set forth in this SAR Agreement and the Plan [and to the
Participant’s entering into the Restrictive Covenants and Confidentiality Agreement], the Company hereby grants to the Participant stock appreciation rights with respect to an aggregate of
             shares of Common Stock (the “SARs”). The Initial Value of each SAR is $            , which is no
less than the aggregate Fair Market Value of a share of Common Stock on the date of grant of the SARs. Once vested, a SAR entitles the Participant to receive from the Company upon exercise of the SAR an amount [payable in cash] [payable in shares of
Common Stock] equal to the excess, if any, of the Fair Market Value of one  

  
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share of Common Stock on the date of exercise over the Initial Value of the SAR [include if applicable: ; provided, that the amount payable upon exercise of the SAR shall not exceed
$            ]. The SARs shall terminate at the expiration of the SAR Period, unless the SARs terminate earlier pursuant to this SAR Agreement. [Notwithstanding the foregoing, if the
Participant has previously executed and delivered to the Company a Restrictive Covenants and Confidentiality Agreement in connection with a prior stock incentive award, the Participant shall be deemed to have satisfied such condition with respect to
the grant of these SARs.]  
 3. Exercise of SARs. Subject to termination of the SARs, the SARs may be
exercised in accordance with the following:  
 (a) The SARs shall vest <insert vesting schedule>. Vesting
on any such date is subject to the Participant’s continued service with the Company and its Subsidiaries through such date. 
 (b) The
SARs will become fully vested and exercisable in connection with a “Change in Control” (as defined in the Plan). 
 (c) To the
extent vested, the SARs generally will be exercisable until the expiration of the SAR Period or earlier termination of the SARs. 
 (d) No
less than 100 SARs may be exercised at any time unless the number of shares purchased at such time is the total number of shares for which the SARs are then exercisable. 

(e) The Participant may exercise the SARs, to the extent vested and exercisable, by the delivery to the Company (or its designated
representative) of a written notice of exercise (in the form and manner directed by the Company or its delegate) specifying the number of SARs to be exercised and payment of, or provision for, all applicable withholding taxes (pursuant to
Section 4 below). 
 (f) Upon the exercise of a vested SAR, the Participant shall receive from the Company an amount [payable in cash]
[payable in shares of Common Stock] equal to (i) the excess of the Fair Market Value on the date of exercise of one share of Common Stock, over (ii) the Initial Value of the SAR on the date of grant as set forth above [include if
applicable: ; provided, that the amount payable upon exercise of the SAR shall not exceed $            ]. [In the event the amount payable as a result of the exercise of a SAR is
settled in shares of Common Stock and a fractional share of Common Stock would be deliverable upon the exercise of the SAR, a cash payment shall be made in lieu of such fractional share of Common Stock.] 

(g) The Company may require that the Participant make such representations and agreements and furnish such information as the Company deems
appropriate to assure compliance with applicable legal and regulatory requirements. 
 4. Payment of Withholding
Taxes. Upon the Participant’s exercise of any SAR, the Participant shall pay or make provision for payment to the Company, through payroll or other withholding (which withholding the Participant hereby authorizes) or other means
acceptable to  

  
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the Committee and permissible under the Plan, the amount necessary to satisfy any federal, state or local tax and other withholding requirements that may arise in connection with or be due upon
such exercise. The determination of the withholding amounts due shall be made by the Company and its Subsidiaries and shall be binding upon the Participant. If the amount requested is not paid, the Company may refuse to settle the SAR. Nothing in
this Section shall be construed to impose on the Company and its Subsidiaries a duty to withhold where applicable law does not require such withholding. 

THE PARTICIPANT ACKNOWLEDGES THAT HE OR SHE IS RESPONSIBLE FOR, AND IS ADVISED TO CONSULT WITH HIS OR HER OWN TAX ADVISORS REGARDING, THE TAX
CONSEQUENCES TO THE PARTICIPANT THAT MAY ARISE IN CONNECTION WITH THE SARS AND THEIR EXERCISE. 
 5. Termination of
Service. If the Participant incurs a Termination of Service prior to the expiration of the SAR Period, the SARs shall terminate except as provided below:  

(a) The SARs shall terminate sixty (60) days from the Participant’s Termination of Service for any reason other than Cause, death,
Disability or Involuntary Termination Without Cause. 
 (b) The SARs shall terminate ninety (90) days from the Participant’s
Involuntary Termination Without Cause. 
 (c) The SARs shall terminate one (1) year from the Participant’s Termination of Service
due to the Participant’s Disability. 
 (d) The SARs shall terminate one (1) year from the Participant’s death if it caused
the Participant’s Termination of Service or occurred during the exercise period following Termination of Service described in subsection (a), (b) or (c) above. 

(e) The SARs shall terminate immediately upon the Participant’s Termination of Service for Cause. 

In the event the SAR remains exercisable for a period of time following Termination of Service as described above, the SAR may be exercised
during such period of time only to the same extent the SAR was vested and exercisable on the date of the Participant’s Termination of Service. Notwithstanding any extended exercise period following a Termination of Service, the SAR will
terminate earlier upon the expiration of the SAR Period. 
 6. Transferability. Except as otherwise permitted under the
Plan, the SARs are not transferable by the Participant other than by will or the laws of descent and distribution. No assignment, pledge or transfer of the SARs, or of the rights represented thereby, whether voluntary or involuntary, by operation of
law or otherwise, except as described above, shall be effective; but immediately upon any such attempt to assign, pledge or transfer the SARs, the SARs shall terminate and be of no further force or effect. 

7. Company Policies. The SARs and the exercise thereof are subject to the terms and conditions of any policy
regarding clawbacks, forfeitures, or recoupments adopted by the  

  
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Company from time to time. Without limiting the foregoing, by acceptance of the SARs, the Participant agrees to repay to the Company or any Subsidiary any amount that may be required to be repaid
under any such policy. 
 8. Restrictive Covenants. In the event that the Company
determines that the Participant has violated the terms of any secrecy, confidentiality, noncompetition, no-solicit and/or no-hire covenants or clauses contained in any agreement with the Company and/or one or more Subsidiaries, including but not
limited to any Restrictive Covenants and Confidentiality Agreement (even if such covenants, clauses or agreements are held invalid or unenforceable), then (a) to the extent still outstanding, the SARs shall immediately terminate upon such
violation and (b) the Participant shall be required to immediately pay the Company an amount equal to the Participant’s gain associated with the exercise of all or any part of the SARs both after such violation and within two
(2) years prior to such violation, with such gain being determined based on the excess of the fair market value of the Common Stock at exercise over the exercise price, without regard to any subsequent increase or decrease in the value of the
Common Stock. The Company and its Subsidiaries shall have the right to offset such gain against any amounts otherwise owed to the Participant by the Company or a Subsidiary (including, but not limited to, wages or other compensation, vacation pay,
fringe benefits or pursuant to any other compensatory arrangement); provided, that any payment that constitutes nonqualified deferred compensation subject to Section 409A of the Code, as determined by the Company, shall be subject to offset
only to the extent such offset would not give rise to a failure to comply with Section 409A of the Code. Notwithstanding the foregoing, nothing under this Section shall limit the Company’s or its Subsidiaries’ remedies under any such
agreements containing secrecy, confidentiality, noncompetition, no-solicit and/or no-hire covenants or clauses or otherwise against the Participant for violations thereof. 

9. Rights as Stockholder. The Participant shall have no rights as a stockholder of the Company with respect to any
shares of Common Stock subject to a SAR unless and until the Participant shall have become the holder of record of such Common Stock (if the SAR is payable in shares of Common Stock) following exercise of the SAR. Subject to Section 10 below,
no adjustments shall be made for dividends (ordinary or extraordinary, whether in cash, securities or other property) or distributions or other rights for which the record date is prior to the date that the Participant shall have become the holder
of record of the shares of Common Stock acquired pursuant to the SARs (if any). 
 10.
Adjustments. Subject to the Plan, in the event of a reorganization, recapitalization, stock split, stock dividend, extraordinary dividend, spin-off, combination of shares, merger, consolidation or similar transaction or other change in
corporate capitalization affecting the Common Stock, equitable adjustments and/or substitutions, as applicable, will be made by the Committee to prevent the dilution or enlargement of rights, including adjustments to the Initial Value of the SARs,
as provided in the Plan. The Committee also will make adjustments in its discretion to eliminate any resulting fractional shares. 

The existence of the SARs does not affect in any way the authority of the Company and its stockholders to exercise their corporate rights and
powers, including, but not by way of limitation, 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, the issuance of securities with preference ahead of or affecting the Common Stock, or any sale or transfer of all or any part of its business or assets. 

  
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 11. Securities Laws. Notwithstanding any provision herein to the contrary or in the
Plan, the Company shall be under no obligation to issue any shares of Common Stock to the Participant upon exercise of the SARs unless and until the Company has determined that such issuance is either exempt from registration, or is registered,
under the Securities Act of 1933, as amended, and is either exempt from registration and qualification, or is registered or qualified, as applicable, under all applicable state securities or “blue sky” laws. Nothing in this SAR Agreement
shall be construed to obligate the Company 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 SAR Agreement. 
 12. Personal Data. The Participant acknowledges that Plan
participation and receipt of awards under the Plan (including the SARs) involve the use and transfer, in electronic or other form, of personal data about the Participant between and among the Company, its Subsidiaries and third-party service
providers. This data may include, but is not limited to, the Participant’s name, home address, telephone number, date of birth, social security number, information regarding securities of the Company held by such Participant, and details of
awards granted to the Participant under the Plan, including the SARs. By accepting the SARs, the Participant consents and agrees that the Company and its Subsidiaries may transfer such data to third parties assisting the Company in the
administration and management of the Plan, the SARs and the Participant’s participation in the Plan, including any requisite transfer of such data to a broker or other third party with whom the Company or the Participant may deposit any shares
of Common Stock. 
 13. Resolution of Disputes; Interpretation. Any question of interpretation,
dispute or disagreement that arises under, or as a result of, this SAR Agreement shall be determined by the Committee in its absolute and uncontrolled discretion, and any determination or interpretation by the Committee in connection with this SAR
Agreement shall be final, binding and conclusive on all parties affected thereby. 
 14. Miscellaneous.

 (a) Binding on Successors and Representatives. Subject to applicable transfer restrictions applicable to the
Participant, this SAR Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Company and the Participant’s heirs, executors, administrators, personal representatives, and assigns; and the parties agree,
for themselves and their successors, representatives and assigns, to execute any instrument that may be necessary legally to effect the terms and conditions of this SAR Agreement. 

(b) No Employment Rights. Nothing contained in this SAR Agreement shall confer upon the Participant any right to continue in the employ
or service of the Company or any Subsidiary nor interfere with or limit in any way the right of the Company or a Subsidiary to terminate the Participant’s employment by, or performance of services for, the Company or Subsidiary at any time.

  
 6 

 (c) Entire Agreement. This SAR Agreement together with the Plan constitute the
entire agreement of the parties with respect to the SARs and supersede any previous agreement, whether written or oral, with respect thereto. This SAR Agreement has been entered into in compliance with the terms of the Plan; wherever a conflict may
arise between the terms of this SAR Agreement and the terms of the Plan, the terms of the Plan shall control. 
 (d)
Amendment. Except as otherwise provided in the Plan, neither this SAR Agreement nor any of the terms and conditions herein set forth may be altered or amended orally, and any such alteration or amendment shall be effective only when
reduced to writing and agreed to by each of the parties hereto or their respective successors and assigns. 
 (e) Construction of
Terms. Any reference herein to the singular or plural shall be construed as plural or singular whenever the context requires. 

(f) Notices. Except as otherwise provided in Section 3, all notices required and permitted to be given hereunder shall be
in writing and notices shall be deemed to have been given (i) if delivered by hand, when so delivered, (ii) if sent by overnight express service, one (1) business day after delivery to such service, or (iii) if mailed by
certified or registered mail, return receipt requested, three (3) days after delivery to the post office. In each case, all notices shall be addressed to the intended recipient as follows or at such other address as is provided by either party
by notice to the other: 
  

			
	If to the Company:	  	With a copy to:
		
	Sonic Automotive, Inc.	  	Sonic Automotive, Inc.
	Attention: Chief Financial Officer	  	Attention: General Counsel
	4401 Colwick Road	  	4401 Colwick Road
	Charlotte, NC 28211	  	Charlotte, NC 28211

 If to the Participant: 

The Participant’s address appearing in the Company’s records. 

(g) Governing Law. This SAR Agreement shall be governed by, and construed in accordance with, the laws of the State of North
Carolina, without regard to its principles of conflict of laws. The parties agree that any action, suit or proceeding arising out of or related to this SAR Agreement shall be instituted in the state or federal courts sitting in Mecklenburg County,
North Carolina. 
 (h) Severability. The invalidity or unenforceability of any particular provision of this SAR Agreement
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. 

(i) Electronic Delivery and Acknowledgement. The Participant acknowledges and agrees that the Company may, in its discretion, deliver
documents related to the SARs and participation in the Plan (including, without limitation, this SAR Agreement, Plan 

  
 7 

 
documents and disclosures that may be required by the Securities and Exchange Commission) by electronic means, including through an on-line or electronic system (including by posting them on a
website) established and maintained by the Company or a third party designated by the Company, and the Participant consents to receive documents in such manner. Regardless of whether the Company delivers and permits or requires acceptance of this
SAR Agreement electronically, the Participant agrees to be bound by all terms and provisions of this SAR Agreement and the Plan. 
 IN
WITNESS WHEREOF, the parties hereto have executed this SAR Agreement effective as of the day and year first written above. 
  

							
	SONIC AUTOMOTIVE, INC.	 		 	PARTICIPANT: <NAME>
				
	By:	 	  
	 		 	  

				
	Title:	 	  
	 		 	

  
 8

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