Document:

Sonic Automotive, Inc. 2004 Stock Incentive Plan

 Exhibit 10.1 
  
 SONIC AUTOMOTIVE, INC. 
 2004 STOCK INCENTIVE PLAN 
  
 ARTICLE
1.    PURPOSE AND EFFECTIVE DATE 
  
 1.1    Purposes of the Plan.    Sonic Automotive, Inc. (the “Company”) has established this Sonic Automotive, Inc. 2004 Stock Incentive Plan (the “Plan”) to promote the
interests of the Company and its stockholders. The purposes of the Plan are to provide key employees and consultants providing services to the Company and its Subsidiaries with incentives to contribute to the Company’s performance and growth,
to offer such persons stock ownership in the Company or other compensation that aligns their interests with those of the Company’s stockholders and to 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 19, 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. Awards may be granted prior to stockholder approval of the Plan, provided that all such Awards must be subject to stockholder approval of the Plan. This means that no Option or SAR may be
exercised prior to such approval, and all Awards must be subject to forfeiture if such approval is not obtained. 
  
 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, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Awards or Stock Awards. 
  
 (b)  “Award Agreement” means an agreement
entered into by a Participant and the Company, setting forth the terms and conditions applicable to an Award granted to the Participant under this Plan. 
  
 (c)  “Board” or “Board of Directors” means the Board of Directors of the Company. 
  
 (d)  “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, (i) the commission by the Participant of a crime involving moral turpitude, which crime has a material adverse
impact on the Company or a Subsidiary or which is intended to result in the personal enrichment of the Participant at the expense of the Company or a Subsidiary; (ii) the Participant’s material violation of his responsibilities, or the
Participant’s gross negligence or willful misconduct; or (iii) the continuous and willful failure by the Participant to follow the reasonable directives of the Board of Directors. In any event, the existence of “Cause” shall
determined by the Committee. 
  
 (e)  “Change in Control” means 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 of 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. 
  
 (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 committee appointed by the Board to administer the Plan or (ii) in the absence of such appointment, the Board itself. Notwithstanding the foregoing, 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 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. The Compensation Committee of the Board of Directors shall constitute the Committee until otherwise determined by the
Board of Directors. 
  
 (h)  “Common Stock” means the Class A common stock of the Company, par value $0.01 per share. 
  
 (i)  “Company” means Sonic Automotive, 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. 
  
 (n)  “Fair Market
Value” means, as of a particular date, the value of the Common Stock determined as follows: 
  
 (i)  If 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 on the last trading day prior to the date of reference 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 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 on the last trading day prior to the date of reference; 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 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)  “Family Members” means the Participant’s child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law,
brother-in-law or sister-in-law, including adoptive relationships, or any person sharing the Participant’s household (other than a tenant or employee). 
  
 (p)  “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. 
  
 (q)  “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 any Subsidiary, or by the Board, for any reason other than for Cause. 
  
 (r)  “Named Executive Officer” means a
Participant who is considered a “covered employee” within the meaning of Section 162(m) of the Code. 
  
 (s)  “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. 
  

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 (t)  “Option” means an Incentive Stock Option or a Nonqualified Stock
Option. 
  
 (u)  “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. 
  
 (v)  “Participant” means an Employee or consultant who performs services for the Company
or a Subsidiary who has been granted an Award under the Plan which is outstanding. 
  
 (w)  “Performance Award” means an Award granted under Article 10 which is subject to the attainment of one or more
Performance Goals during a Performance Period, as established by the Committee in its discretion. 
  
 (x)  “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 10.1(b) hereof. 
  
 (y)  “Performance Period” means the period designated by the Committee during which the Performance Goals with respect
to a Performance Award will be measured. 
  
 (z)  “Plan” means this Sonic Automotive, 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 a share of Common Stock granted in accordance with the terms of Article 8, which Common
Stock is nontransferable and subject to a substantial risk of forfeiture and such other restrictions as determined by the Committee. 
  
 (cc)  “Restricted Stock Unit” means the right to receive a share of Common Stock (or the value of a share of Common
Stock) in the future granted in accordance with the terms of Article 8, which right is nontransferable and subject to a substantial risk of forfeiture and such other restrictions as determined by the Committee. 
  
 (dd)  “SAR” means a stock appreciation
right granted pursuant to Article 7. 
  
 (ee)  “Stock Award” means an equity-based award granted pursuant to Article 9. 
  
 (ff)  “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; provided, that for purposes of Incentive Stock Options, Subsidiary means a “subsidiary corporation” within the meaning of Section
424(f) of the Code. 
  
 (gg)  “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. 
  
 (hh)  “Termination of Service” means the termination of a Participant’s service with the Company and its Subsidiaries as an Employee or consultant 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 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. 
  

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 ARTICLE 3.    ADMINISTRATION 
  
 3.1    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, the duration of an Award, and restrictions on transferability of
an Award and any shares of Common Stock issued thereunder); 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 12) amend the terms and conditions of any outstanding Award to the extent such terms and conditions are within the discretion of the Committee, including
accelerating the time any Option or SAR may be exercised, waiving restrictions and conditions on Awards 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. 
  
 3.2    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.

  
 3.3    Indemnification.    In addition to such other rights they may have as Directors or members of the Committee, each person who is or shall have been a member of the Committee shall be
indemnified and held harmless by the Company against any loss, cost, liability or expense (including settlement amounts paid with the approval of the Committee) that may be imposed upon or reasonably incurred by the Committee member in connection
with or resulting from any claim, action, suit or proceeding in which the member may be a party or otherwise involved by reason of any action taken or failure to act under or in connection with the Plan or any Award, except with respect to matters
as to which the Committee member has been grossly negligent or engaged in willful misconduct; 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 2,000,000 shares. Shares of Common Stock issued under the Plan may be shares of original issuance, shares held in the treasury of the Company 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 and SAR Limit.    No Participant shall be granted, during any one calendar year, Options and/or SARs (whether such SARs may be settled in shares of Common
Stock, cash or a combination thereof) covering in the aggregate more than 500,000 shares of Common Stock. 
  
 (b)  Individual Limit on Other Awards.    With respect to any Awards other than Options and SARs, no
Participant shall be granted, during any one calendar year, such Awards (whether such Awards may be settled in shares of Common Stock, cash or a combination thereof) consisting of, covering or relating to in the aggregate more than 250,000 shares of
Common Stock. 
  
 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 discretion, shall make such similar adjustments as described above in the event of any corporate transaction to which Section 424(a) of 

  

 4 

 
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 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 and consultants providing services to the Company or a Subsidiary (provided such consultants 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.

  
 (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 an Option remains exercisable as provided below
or as otherwise set forth in the Award Agreement, an Option shall immediately terminate upon the Participant’s Termination of Service with the Company and its Subsidiaries for any reason. 
  
 (i)  General
Rule.    In the event that a Participant incurs a Termination of Service for any reason other than Cause, Involuntary Termination Without Cause, or his death or Disability, the Participant may exercise an Option to the extent
that the Participant was entitled to exercise such Option as of the date of termination, but only within 

  

 5 

 
such period of time ending on the earlier of (1) 60 days following such Termination of Service or (2) the expiration of the term of the Option as set forth
in the Award Agreement. 
  
 (ii)  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
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 (1) 90 days following such Termination of Service or (2) the expiration of the
term of the Option as set forth in the Award Agreement. 
  
 (iii)  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 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 (1) one year following such Termination of Service or (2) the expiration of the term of the Option as set
forth in the Award Agreement. 
  
 (iv)  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 exercise period following termination described in subparagraph (i), (ii) or (iii) above, as applicable, then an 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 (1) one year following the date of death or (2) the expiration of the term of the 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 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.    Except as otherwise set forth herein, 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 a
Participant to transfer NSOs, in whole or in part, for no consideration to (1) one or more Family Members; (2) a trust in which Family Members have more than 50% of the beneficial interest; (3) a foundation in which Family Members (or the
Participant) control the management of assets; or (4) any other entity in which Family Members (or the Participant) own more than 50% of the voting interests; provided, that such transfer is permitted under applicable tax laws and Rule 16b-3 of the
Exchange Act as in effect from time to time. In all cases, the Committee must be notified in advance in writing of the terms of any proposed transfer to a permitted transferee and such transfers may occur only with the consent of and subject to the
rules and conditions imposed by the Committee. The transferred NSOs shall continue to be subject to the 

  

 6 

 
same terms and conditions in the hands of the transferee as were applicable immediately prior to the transfer (including the provisions of the Plan and Award
Agreement relating to the expiration or termination of the NSOs). The NSOs shall be exercisable by the permitted transferee only to the extent and for the periods specified herein and in any applicable Award Agreement. 
  
 (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.    STOCK APPRECIATION RIGHTS

  
 7.1    Grants of
SARs.    Subject to the provisions of the Plan, the Committee may grant SARs upon the following terms and conditions: 
  
 (a)  Award Agreement.    Each grant of a SAR 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 SAR pertains, the term of the SAR, the conditions upon which the SAR shall become vested and exercisable, and such
additional terms and conditions, not inconsistent with the provisions of the Plan, as the Committee shall determine. The Committee may grant SARs in tandem with or independently from Options. 
  
 (b)  Initial Value of
SARs.    The Committee shall assign an initial value to each SAR, provided that the initial value may not be less than the aggregate Fair Market Value on the date of grant of the shares of Common Stock to which the SAR
pertains. 
  
 (c)  Exercise of
SARs.    A SAR 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. Notwithstanding the
foregoing, in the case of a SAR that is granted in tandem with an Option, the SAR may be exercised only with respect to the shares of Common Stock for which its related Option is then exercisable. The exercise of either an Option or a SAR that are
granted in tandem shall result in the termination of the other to the extent of the number of shares of Common Stock with respect to which such Option or SAR is exercised. 
  
 (d)  Term of SARs.    The term of a SAR granted independently from an
Option shall be determined by the Committee, but in no event shall such a SAR be exercisable more than ten years from the date of its grant. A SAR granted in tandem with an Option shall have the same term as the Option to which it relates.

  
 (e)  Termination of
Service.    In the event that a Participant incurs a Termination of Service, the Participant’s SARs shall terminate in accordance with the provisions specified in Article 6 with respect to Options. 
  
 (f)  Payment of SAR
Value.    Upon the exercise of a SAR, a Participant shall be entitled to receive (i) the excess of the Fair Market Value on the date of exercise of the shares of Common Stock with respect to which the SAR is being exercised,
over (ii) the initial value of the SAR on the date of grant, as determined in accordance with Section 7.1(b) above. Notwithstanding the foregoing, the Committee may specify in an Award Agreement that the amount payable upon the exercise of a SAR
shall not exceed a designated amount. At the Committee’s discretion, the amount payable as a result of the exercise of a SAR may be settled in cash, shares of Common Stock of equivalent value, or a combination of cash and Common Stock. A
fractional share of Common Stock shall not be deliverable upon the exercise of a SAR, but a cash payment shall be made in lieu thereof. 
  
 (g)  Nontransferability.    Except as otherwise set forth herein, SARs granted under the Plan 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 SARs 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 a
Participant to transfer SARs, in whole or in part, for no consideration to (i) one or more Family Members; (ii) a trust in which Family Members have more than 50% of the beneficial interest; (iii) a foundation in which Family Members (or the
Participant) control the management of assets; or (iv) any other entity in which Family Members (or the Participant) own more than 

  

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50% of the voting interests; provided, that such transfer is permitted under applicable tax laws and Rule 16b-3 of the Exchange Act as in effect from time to
time. In all cases, the Committee must be notified in advance in writing of the terms of any proposed transfer to a permitted transferee and such transfers may occur only with the consent of and subject to the rules and conditions imposed by the
Committee. The transferred SARs shall continue to be subject to the same terms and conditions in the hands of the transferee as were applicable immediately prior to the transfer (including the provisions of the Plan and Award Agreement relating to
the expiration or termination of the SARs). The SARs shall be exercisable by the permitted transferee only to the extent and for the periods specified herein and in any applicable Award Agreement. 
  
 (h)  No Stockholder
Rights.    No Participant shall have any rights as a stockholder of the Company with respect to shares of Common Stock subject to a SAR until the issuance of shares (if any) to the Participant pursuant to the exercise of such
SAR. 
  
 ARTICLE 8.    RESTRICTED STOCK AND RESTRICTED
STOCK UNITS 
  
 8.1    Grants of
Restricted Stock and Restricted Stock Units.    Subject to the provisions of the Plan, the Committee may grant Restricted Stock and/or Restricted Stock Units upon the following terms and conditions: 
  
 (a)  Award
Agreement.    Each grant of Restricted Stock or Restricted Stock Units 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 with respect to which the Restricted Stock or Restricted Stock Units are 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. 
  
 (b)  Purchase Price.    The Committee shall determine the purchase price, if any, to be paid for each share of Restricted Stock or each Restricted Stock Unit, 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 and Restricted Stock Units 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 Restricted Stock and Restricted Stock Units as it determines, including but not limited to restrictions based upon the
occurrence of a specific event, continued service for a period of time or other time-based restrictions, or the achievement of financial or other business objectives (including the Performance Goals described in Section 10.1(b)). 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 and Restricted Stock Units or in installments or otherwise as the Committee may deem appropriate.

  
 (e)  Settlement of Restricted
Stock Units.    After the expiration of the Restricted Period and all conditions and restrictions applicable to Restricted Stock Units have been satisfied or lapsed, the Participant shall be entitled to receive the then Fair
Market Value of the shares of Common Stock with respect to which the Restricted Stock Units were granted. Such amount shall be paid in cash, shares of Common Stock or a combination thereof as determined by the Committee. 
  
 (f)  Section 83(b)
Election.    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. 
  
 (g)  Termination of Service.    Notwithstanding anything herein to the contrary and except as otherwise determined by the Committee, in the event of the Participant’s Termination of Service prior to
the expiration of the Restricted Period, all shares of Restricted Stock and Restricted Stock Units with respect to which the applicable restrictions have not yet lapsed shall be forfeited. 
  

 8 

 (h)  Stockholder Rights. 
  
 (i)  Restricted
Stock.    Except to the extent otherwise provided by the Committee, 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 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. 
  
 (ii)    Restricted Stock Units.    A Participant shall have no voting or other stockholder rights or ownership interest in shares of Common Stock with respect to which Restricted Stock Units
are granted. Notwithstanding the foregoing, if the Board of Directors declares a dividend with respect to the Common Stock, the Committee may, in its discretion, determine that Participants receive dividend equivalents with respect to their
Restricted Stock Units. The Committee may determine the form of such dividend equivalents, which may include cash or Restricted Stock Units. 
  
 (iii)  Adjustments and Dividends Subject to Plan.    With respect to any shares of Restricted Stock
or Restricted Stock Units received as a result of adjustments under Section 4.3 hereof and also any shares of Common Stock, Restricted Stock or Restricted Stock Units that result from dividends declared on the Common Stock, the Participant shall
have the same rights and privileges, and be subject to the same restrictions, as are set forth in this Article 8 except to the extent the Committee otherwise determines. 
  
 (i)  Issuance of Restricted Stock.    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 (1) 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 (2) 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. 
  
 ARTICLE 9.    STOCK AWARDS 
  
 The Committee may grant other types of Stock Awards that involve the
issuance of shares of Common Stock or that are valued by reference to shares of Common Stock, including but not limited to the grant of shares of Common Stock or the right to acquire or purchase shares of Common Stock. Stock Awards 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 Stock Award pertains, the form in which the Stock Award shall be paid
and such additional terms and conditions, not inconsistent with the provisions of the Plan, as the Committee shall determine. 
  
 ARTICLE 10.    PERFORMANCE AWARDS 
  
 10.1    Performance Awards.    Subject to the terms of the Plan, the Committee may designate an Award of
Restricted Stock or Restricted Stock Units or a Stock Award 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. Performance Awards shall be contingent upon the attainment of one or more Performance Goals. The provisions of this Article 10 shall control to the extent inconsistent with Articles
8 and 9 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. 
  

 9 

 (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, customer satisfaction 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 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 11 with respect to a Change in
Control. Notwithstanding anything herein to the contrary, the maximum cash payment that may paid during a calendar year to a Participant pursuant to a Performance Award shall be $2,000,000. 
  
 (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 11.    CHANGE IN CONTROL 
  
 11.1    Impact on Options, SARs and Stock Awards.    Notwithstanding any other provision of the Plan, all
outstanding Options, SARs and Stock Awards (other than Stock Awards that have been designated as Performance Awards) shall become fully vested and exercisable on and after (a) the date of consummation of a tender offer or exchange offer that
constitutes a Change in Control or (b) the third business day prior to the effective date of any other Change in Control. 
  
 11.2    Impact on Restricted Stock and Restricted Stock Units.    Notwithstanding any other provision of
the Plan, all Awards of Restricted Stock and Restricted Stock Units (other than those that have been designated as Performance Awards) shall be deemed vested, all restrictions shall be deemed lapsed, all terms and conditions shall be deemed
satisfied and the Restricted Period with respect thereto shall be deemed to have ended as of (a) the date of consummation of a tender offer or exchange offer that constitutes a Change in Control or (b) the third business day prior to the effective
date of any other Change in Control. 
  
 11.3    Performance Awards.    All Performance Awards earned and outstanding as of the date of the Change in Control shall be payable in full within 30 days following the Change in Control. Any
remaining Performance Awards shall be accelerated and deemed to have been fully earned as of the date of the Change in Control, with a pro rata settlement of the Performance Award to be made within 30 days following the Change in Control based upon
an assumed achievement of the applicable Performance Goals and the length of time within the Performance Period that has elapsed prior to the Change in Control. 
  

 10 

 ARTICLE 12.    AMENDMENT, SUSPENSION AND TERMINATION 
  
 12.1    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 (including, but not limited to, Sections 162(m) and 422 thereof), 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. No further Awards may be granted after the termination of 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. 
  
 12.2    Amendment of Awards.    Subject to Section 12.1 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 13.    WITHHOLDING 
  
 13.1    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. 
  
 13.2    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 14.    GENERAL PROVISIONS 
  
 14.1    Restrictions on Stock Ownership/Legends.    The Committee, in its discretion, may establish guidelines applicable to the ownership of any shares of Common Stock acquired pursuant to the
exercise of an Option or SAR or in connection with any other Award under this Plan as it may deem desirable or advisable, including, but not limited to, time-based or other restrictions on transferability regardless of whether or not the Participant
is otherwise vested in such Common Stock. All stock certificates representing shares of Common Stock issued pursuant to this Plan shall be subject to such stock transfer orders and other restrictions as the Committee may deem advisable and the
Committee may cause any such certificates to have legends affixed thereto to make appropriate references to any applicable restrictions. 
  
 14.2    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. 
  
 14.3    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.

  
 14.4    Unfunded
Plan.    To the extent that any person acquires a right to receive Common Stock or cash payments under the Plan, such right shall be only contractual in nature unsecured by any assets of the Company or a Subsidiary. 

  

 11 

 
Neither the Company nor any Subsidiary shall be required to segregate any specific funds, assets or other property with respect to any Awards under this
Plan. 
  
 14.5    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. 
  
 14.6    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. 
  
 14.7    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. 
  
 14.8    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 and SARs 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 Performance Awards to qualify as performance-based compensation thereunder (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 qualify as “performance-based
compensation” and may grant Awards without satisfying the requirements of Section 162(m) of the Code. 
  
 14.9    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. 
  
 14.10    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. 
  
 14.11    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. 
  
 14.12    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). 
  

 12Separation Agreement dated April 26, 2004 between Sonic and Theodore M. Wright

 Exhibit 10.2 
  
 AGREEMENT 
  
 This AGREEMENT (this “Agreement”) made this 26th day of April, 2004 between SONIC AUTOMOTIVE, INC., a Delaware corporation (the “Employer”), and THEODORE M. WRIGHT (the
“Employee”). 
  
 R E C
I T A L S 
  
 WHEREAS, the Employee currently serves as President of the Employer, as a director of the Employer and as an officer, director, manager or governor of numerous direct and indirect subsidiaries of the Employer; and 
  
 WHEREAS, the Employee and the Employer are parties to an Employment
Agreement dated October 25, 2000 (the “Employment Agreement”); and 
  
 WHEREAS, the Employee has notified the Employer that he desires to resign his employment with the Employer in order to pursue other interests; and 
  
 WHEREAS, the Employee and the Employer desire to enter into this Agreement for the purpose of effecting an orderly
resignation by the Employee of his officer, director and employment relationships with the Employer and subsidiaries of the Employer, including the amendment of the Employment Agreement as provided below. 
  
 NOW, THEREFORE, the parties intending to be legally bound agree as
follows: 
  
 1. Resignation. The Employee hereby
voluntarily resigns the following positions effective immediately: (i) President of the Employer; (ii) director of the Employer; (iii) officer, director, manager and governor of all direct and indirect subsidiaries of the Employer, and (iv) officer
and Manager of North Point Imports, LLC d/b/a North Point Volvo. If requested by the Employer, the Employee shall further evidence such resignations by executing formal resignation letters in form and substance agreeable to the Employee and the
Employer. The parties agree that the Employee will remain as an employee of the Employer, with full entitlement to his current salary and benefits, until May 26, 2004 (which date will be considered the effective date of the Employee’s voluntary
resignation of employment pursuant to the Employment Agreement and any stock option agreements with the Employer). As of the close of business on May 26, 2004, the parties agree that the Employee will be automatically deemed to have tendered his
voluntary resignation of employment with the Employer, with no further action necessary or required on the part of either the Employee or the Employer. During the period from the date of this Agreement through May 26, 2004, the Employee will (A) not
be required to work full time or to report for regular duty to the Employer at the Employer’s offices, (B) be provided his customary access to the Employee’s current executive assistant for routine and customary administrative support
needs of the Employee, which services shall be provided at the Employer’s cost, and (C) make himself reasonably available to members of the senior management team of the Employer during normal business hours for consultation and other
reasonable duties. 
  
 2. Reimbursement of Costs. The
Employer shall reimburse the Employee for all attorneys fees and costs of the law firm of Rayburn, Cooper & Durham, P.A. associated with such firm’s legal services provided to the Employee from December 1, 2003 through the date of execution
and delivery of this Agreement. The Employer shall make such reimbursement to the Employee (or, at the Employee’s option, make direct payment to the law firm) within 5 business days following the Employer’s receipt of written invoices from
the firm relating to such representation. 

 3. Amendment to Employment Agreement. Notwithstanding anything to the contrary set forth in
Section 8 of the Employment Agreement, the Employee shall not be prevented from, and it shall not constitute a violation of Section 8 of the Employment Agreement for the Employee to: 
  
 (a) acquire, directly or indirectly, any automobile dealership located within the Restricted Territory (as defined in the
Employment Agreement) during the Restrictive Period (as defined in the Employment Agreement), or 
  
 (b) serve as a compensated broker for the acquisition by any third party of any automobile dealership located within the Restricted Territory during the
Restrictive Period; 
  
 provided, however, that in the case of
either (a) or (b) above during the Restrictive Period, the Employee shall first offer to the Employer any such automobile dealership acquisition opportunity located in the Restricted Territory that is presented to the Employee. Upon receipt of
written notice from the Employee to the Chief Executive Officer and the Chief Financial Officer of the Employer setting forth such dealership acquisition opportunity, the Employer will have fifteen (15) days thereafter to advise the Employee that
the Employer is eligible to acquire or interested in pursuing such dealership acquisition opportunity. In the event that the Employer does not notify the Employee within such fifteen (15) day period that it is eligible to acquire and desires to
pursue such dealership acquisition, or if the Employer pursues such dealership acquisition but does not enter into a written agreement to acquire such dealership within one hundred twenty (120) days following the Employer’s receipt of the
written notice from the Employee notifying of the dealership acquisition opportunity, then the Employee shall have the right, notwithstanding the provisions of Section 8 of the Employment Agreement, to acquire such dealership or to serve as a
compensated broker for a third party’s acquisition of such dealership. 
  
 Except as specifically provided for herein, the provisions of this Section 3 shall not in any way otherwise diminish the Employee’s obligations under Section 8 of the Employment Agreement. 
  
 4. Effect on Employment Agreement and Other Agreements. Except as
expressly modified herein, this Agreement shall have no effect on the Employment Agreement or any other existing written agreements between the Employee and the Employer, and all other terms and conditions of the Employment Agreement and such other
agreements shall remain in full force and effect, without modification. 
  
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement to be effective as of the date first above written. 
  

							
	 EMPLOYEE:
	 	 /s/ Theodore M. Wright

	 	 (SEAL)

	 	 	 THEODORE M. WRIGHT
	 	 
			
	 EMPLOYER:
	 	 SONIC AUTOMOTIVE, INC.
	 	 
				
	 	 	 By:
	 	 /s/ O. Bruton Smith

	 	 
	 	 	 	 	 O. Bruton Smith, Chairman and CEO
	 	 

  

 2

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