Employee Stock Purchase Plan

Good to Know

You can buy shares of Lithia & Driveway (LAD) stock through convenient payroll deductions. The better the stock performs, the more valuable your investment. E*TRADE, a Morgan Stanley company, administers the ESPP.

Contributions

You can contribute 1% to 10% of your eligible pay to purchase Lithia & Driveway stock at a discounted price through after-tax payroll deductions, up to $25,000. This is a maximum of $21,250 in payroll deductions per year.

Eligibility

All team members can participate in the ESPP if they:

Have completed 90 consecutive days of employment before the start of a new quarter and
Are regularly scheduled to work at least 20 hours per week

How to Enroll

After you have completed 90 days of consecutive employment, you become eligible to enroll during the next quarterly ESPP enrollment window. This window is open the 10th through 25th of the month preceding the start of the next quarter. Watch for email reminders prompting you to enroll on My Lithia Benefits when the quarterly enrollment window opens.

Purchasing Lithia & Driveway Stock

Your contributions accumulate throughout the quarter (“offer period”) and are used to purchase shares of LAD stock at a 15% discount on the first business day of the following calendar quarter.

Offering Period

LAD Stock Purchased

1st Quarter: January–March

First business day in April

2nd Quarter: April–June

First business day in July

3rd Quarter: July–September

First business day in October

4th Quarter: October–December

First business day in January

You can sell your shares anytime and receive a distribution in cash or transfer your shares to another broker.

Designate a Beneficiary

When you sign up for the ESPP, don't forget to choose a beneficiary. If something happens to you, they'll receive the assets in your account.

If you haven't named a beneficiary and something happens, the assets will go to:

Your spouse, or
Your estate, if you don't have a surviving spouse

Changing or Stopping Deductions

You can stop your deductions at any time during the quarter. To receive a refund of your quarter to date deductions, you must cancel no later than 15 days before the last day of the quarter. If you stop deductions, you may not restart until the next quarterly enrollment window. To cancel deductions, complete the ESPP Cancellation Form.

Selling Your Stock

You are fully vested in your stock shares, which means you own them outright. You can sell your shares anytime by calling E*TRADE at 800-838-0908 or logging into your E*TRADE account. Note that E*TRADE charges a fee for each stock sale.

Activate Your Account

Once your ESPP stock is purchased, you must activate your account through E*Trade. Follow these steps:

Go to E*TRADE Account Set-up
Enter LAD in the Company Name/Ticker
Enter your Social Security Number or Employee ID Number
Click Request New Code, then Continue
Check your email for an authentication code
Return to E*TRADE Account Set-up and re-enter LAD and your SSN/Employee ID Number, but this time enter the authentication code
Follow the prompts to complete set-up

For help activating your account, or if you have an existing E*TRADE account that you'd like to merge, call E*TRADE at 800-387-2331.

Employee Notice

Employees who are “insiders” have access to important, non-public, confidential information about the company, including executives or key employees. These individuals must follow certain trading window rules before selling or transferring any shares they own through the ESPP.

You contribute to our success every day—why not own a piece of Lithia & Driveway and share in the rewards? With the ESPP, purchasing Company stock at a 15% discount is easy and cost-effective.