EX-10.9 3 7 a2024q4ex1093xserpawardlet.htm EX-10.9. 3
R LITHIA MOTORS, INC. SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (SERP)
NOTICE OF DISCRESTIONARY CONTRIBUTION AWARD
F R OM: C o m p e ns ation C o m m ittee
TO:
DA TE: Ja nu ary 1, ____
This N ot i ce of D i s cr e t io n ary Contribution Aw ard (“N otice”) is to in f orm y o u that the C o mpan y’s C o mpen s a ti o n Com m i t t ee has a w arded y ou a D i s cretio n ary Con t ributi o n of $________________ under the L ithia M otor s, I n c. Supplemental Executive Retirement P lan (t h e “P l an”). T his D i s cre t ionary Contribu t i o n w ill be c red i ted to y o u r “________ D i s c r et i onary Contribu t ion A ccou n t” und e r the P l a n i n _____ and w i l l be g o v erned by and s ubject to t h e P la n’s rule s, as s upp l e m ent e d by the add i tio n al te r ms a n d con d itions pro v ided in t h is N oti c e.
I.V e s ti n g.
Y our ____ D i s c retio n ary Contribution A c count (a w ar d ed on J an u a r y 1, ____) w ill v e s t as f ollo ws:
a.Se r v i c e-Ba s ed V e s ting S c hedu l e. Ex c ept as pro v ided belo w, y our ____ D i s cre t i onary Contributi o n A ccount w i l l v e s t a c cor d ing to t h e f ollo w ing s chedule pro v ided y ou rem a in e mplo y ed w ith us on t h e f ollo w ing V e s ting D ate(s):
V e s ti n g D a t e Vested Pe r ce n t

J an u ary 1, YYYY | 20%
J an u ary 1, YYYY | 40%
J an u ary 1, YYYY | 60%
J an u ary 1, YYYY | 80%
J an u ary 1, YYYY | 100%

b.Ag e-Ba s ed V e s ting S che d ul e. Y our _____ D i s c r et i onary Contribution A cc o unt v e s ting percen t a g e w ill be t h e g reat e r of the S er v ic e-Ba s ed v e s ting per c enta g e abo v e or the s chedu l e below a ss u m ing y ou rem a in e mplo y ed w ith us on the d a t e(s) y ou attain t he f ollo w ing a g e s:
A ge Pe r ce n t

62 | 70%
63 | 80%
64 | 90%
65 | 100%

c.Qualified Retirement V e s ting S c hedu l e. If you terminate employment due to a Qualified Retirement that occurs at least one year from the Date of Grant, discretionary contributions will continue to vest as scheduled in Section I(a) of this Agreement.
A “Qualified Retirement” means you voluntarily terminate employment after you have reached fifty-five (55) years of age and completed a minimum of 10 years of service.
d.Ve s ti n g Acceleration Events. To the ex t ent y ou are n o t a lr e ady 100% v e s ted in y our _____ D i s cre t ionary Contribu t i o n A ccou n t un d er the ab ov e S er v ic e or A g e-Ba s e d s ched u le s, y ou

w ill b e come 100% v e s ted in y our _____ D i s cret i onary Contributi o n A ccount a ss uming y ou r em a in e mplo y ed w ith us at t h e ti m e any of the f o llo w ing e v ents occu r:
1)The C o mpany under g oes a Chan g e in C o ntro l;
2)Y ou die; or
3)Y ou bec o me D i s a b led.
II.Pay m e n t Com m e n ce m e n t.
P a y ment of the v e s ted portion of y our ____ D i s cretionary Contribution A cc ount s hall c o m m en c e be t w een the J a n uary 1 and March 1 5 of the c a len d ar y ear f ollo w ing the c a l endar y e ar in w hich y ou S eparate f rom S er v ice.
N ot e: I f at t h e t i m e y o ur v e s ted _____ D i s cr e ti o nary Contribution A cco u nt b e co m es pa y able y ou a r e con s ide r ed a “s pe c i f ied e mplo y ee” un d er S e c t ion 4 09A of the I nt e rnal R e v enue Co d e of 1986, as a m e n ded, y our di s tribution co m me n ce m ent d a t e m ay be s ubject to a s ix (6) month de l a y.
The P l an d o cu m ent g o v erns the p a y ment, v e s ting and f or f eiture of y our ______ D i s cr e tio n ary Contribu t ion A c coun t. Capi t a l i z ed it e ms u s ed in this N oti c e th a t are n o t h e rein de f ined s h a ll ha v e t h e m e anin g s pre s cribed t o s uch terms i n the P l a n doc u me n t.
This N o t ice re f l e cts y our ______ D i s cr e tio n ary Contribution to be a w ar d ed t o y ou b y the Com p en s a t i o n Com m i t t e e on J a n uary 1, _____.
L I T H I A MO T O R S, I N C.