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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0000950123-10-018399.txt : 20100226
<SEC-HEADER>0000950123-10-018399.hdr.sgml : 20100226
<ACCEPTANCE-DATETIME>20100226172521
ACCESSION NUMBER:		0000950123-10-018399
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20100226
ITEM INFORMATION:		Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
FILED AS OF DATE:		20100226
DATE AS OF CHANGE:		20100226

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SONIC AUTOMOTIVE INC
		CENTRAL INDEX KEY:			0001043509
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-AUTO DEALERS & GASOLINE STATIONS [5500]
		IRS NUMBER:				562010790
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0207

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-13395
		FILM NUMBER:		10640941

	BUSINESS ADDRESS:	
		STREET 1:		5401 EAST INDEPENDENCE BLVD
		STREET 2:		PO BOX 18747
		CITY:			CHARLOTTE
		STATE:			NC
		ZIP:			28212
		BUSINESS PHONE:		7045323354

	MAIL ADDRESS:	
		STREET 1:		5401 EAST INDEPENDENCE BLVD
		CITY:			CHARLOTTE
		STATE:			NC
		ZIP:			28212
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>g22307e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
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<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>


<DIV align="center">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>



<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>CURRENT REPORT<BR>
Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Date of Report (Date of earliest event reported): <U> <B>February&nbsp;26, 2010</B></U>
</DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>SONIC AUTOMOTIVE, INC.</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 1pt">(Exact name of registrant as specified in its charter)
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Delaware</B><BR>
(State or other jurisdiction of incorporation)
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
    <TD align="center" valign="top"><B>1-13395</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>56-201079</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(Commission File Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(IRS Employer Identification No.)</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><B>6415 Idlewild Road, Suite&nbsp;109</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>28212</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><B>Charlotte, North Carolina</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(Address of principal executive offices)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Zip Code)</TD>
</TR>
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</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Registrant&#146;s telephone number, including area code: (<B>704) 566-2400</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>N/A</B><BR>
(Former name or former address, if changed since last report.)
</DIV>


<DIV align="center">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-family: Wingdings">&#111;</FONT> Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)<BR>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-family: Wingdings">&#111;</FONT> Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-family: Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-family: Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
</DIV>

<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>







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<DIV style="font-family: 'Times New Roman',Times,serif">









<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Item&nbsp;5.02.</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Departure of Directors or Certain Officers; Election of
Directors; Appointment of Certain Officers; Compensatory
Arrangements of Certain Officers.</B></TD>
</TR>
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</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February&nbsp;26, 2010, the Compensation Committee of the Board of Directors (the &#147;Compensation
Committee&#148;) of Sonic Automotive, Inc. (&#147;Sonic&#148;) established objective criteria for the
determination of performance-based cash bonuses under the Sonic Automotive, Inc. Incentive
Compensation Plan (the &#147;Incentive Compensation Plan&#148;) for the year ending December&nbsp;31, 2010 for
Messrs.&nbsp;O. Bruton Smith, B. Scott Smith, David P. Cosper, David B. Smith and Jeff Dyke (the
&#147;Executive Officers&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The specific annual performance goals established by the Committee are based upon the
achievement of defined earnings per share levels aligned with levels of reported actual volume of
industry-wide new vehicle sales volume in the United States during the 2010 calendar year and
customer satisfaction performance levels. If the minimum performance level specified by the
Compensation Committee for a particular performance component is not achieved, the Executive
Officers will not receive any cash bonus for that performance component pursuant to the Incentive
Compensation Plan. For performance between specified levels within a performance component, the
Executive Officer will receive a pro rata bonus for that performance
component. Under the defined earnings per share component, each Executive Officer will be eligible to receive
a cash bonus ranging from 40% to a maximum of 135% of his respective annual base salary, if Sonic
achieves the defined earnings per share target levels.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the customer satisfaction performance component, each Executive Officer will be eligible
to receive a cash bonus ranging from 5% to a maximum of 25% of his respective annual base salary,
if established percentages of Sonic&#146;s dealerships in its major brands meet or exceed customer
satisfaction performance objectives, as reported by the respective manufacturers for such brands.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the Compensation Committee approved a grant of performance-based restricted
shares of Sonic&#146;s Class&nbsp;A Common Stock under the Stock Incentive Plan to Mr.&nbsp;Cosper and Mr.&nbsp;Dyke
for 38,500 shares and 41,250 shares, respectively. As provided in the
Stock Incentive Plan, these
restricted stock awards generally remain subject to forfeiture and restrictions on transferability
for three years from the date of grant based on continuation of employment and compliance with the
restrictive covenants contained in any agreement between Sonic and
the respective officer. These
awards are also subject to forfeiture, in whole or in part, based on achievement of specified
measures of Sonic&#146;s defined earnings per share performance for
the 2010 fiscal year. These awards vest in three equal annual
installments on March&nbsp;31, 2011, February&nbsp;26, 2012 and
February&nbsp;26, 2013. Messrs.
Cosper and Dyke are entitled to voting rights and to receive any cash dividends declared by Sonic&#146;s
Board of Directors on the Class&nbsp;A Common Stock for each restricted share they hold pursuant to this
grant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Compensation Committee also approved grants of performance-based restricted stock units
under the Stock Incentive Plan to Messrs.&nbsp;Bruton Smith, B. Scott Smith and David B. Smith for
60,500 units, 52,250 units and 33,275 units, respectively. As provided in the Stock Incentive Plan,
these restricted stock unit awards generally remain subject to forfeiture for three
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">years from the date of grant based on continuation of employment and violation of any
restrictive covenants contained in any agreement between Sonic and the respective officer. The
awards of restricted stock units are also subject to forfeiture, in whole or in part, based on
achievement of specified measures of Sonic&#146;s defined earnings per share performance for the 2010
fiscal year. The restricted stock units will be converted to, and paid in the form of, an
equivalent number of shares of Sonic&#146;s Class&nbsp;A Common Stock following vesting. These awards vest in three equal annual
installments on March&nbsp;31, 2011, February&nbsp;26, 2012 and
February&nbsp;26, 2013. If Sonic&#146;s Board of
Directors declares cash dividends with respect to Sonic&#146;s Class&nbsp;A Common Stock, Messrs.&nbsp;Bruton
Smith, B. Scott Smith and David B. Smith will be credited cash dividend equivalents with respect to
the restricted stock units held under this grant following the Compensation Committee&#146;s
certification of the satisfaction of the performance criteria. The cash dividend equivalents will
be paid to Messrs.&nbsp;Bruton Smith, B. Scott Smith and David B. Smith in cash by March&nbsp;15 of the year
following the date the cash dividend equivalents are credited.
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">SONIC AUTOMOTIVE, INC.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Stephen K. Coss</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Stephen K. Coss<BR>
Senior Vice President and General Counsel</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Dated: February&nbsp;26, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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