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Exhibit 10.3
 

FORM AMENDMENT TO EMPLOYMENT/SEVERANCE AGREEMENT

This AMENDMENT TO CARMAX, INC. EMPLOYMENT/SEVERANCE AGREEMENT FOR EXECUTIVE
OFFICER (the “Amendment”), is made on this 3rd day of November, 2008 (the
“Effective Date”), by and between CarMax, Inc. (“CarMax”) and [EXECUTIVE NAME]
(the “Executive”);

WHEREAS, CarMax and the Executive executed the CarMax, Inc. Employment/
Severance Agreement for Executive Officer, effective as of [DATE OF
AGREEMENT](the “Agreement”); and

WHEREAS, CarMax and the Executive desire to amend the Agreement as set forth
herein.

NOW, THEREFORE, in consideration of the mutual covenants and agreements of the
parties set forth herein and in the Agreement, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
CarMax and the Executive, intending to be legally bound, agree as follows:

1.  
Section 7.7(b)(iv) of the Agreement shall be deleted in its entirety and
replaced with the following:

The Executive shall be entitled to his Accrued Obligations.  The Accrued
Obligations provided under Section 7.2(b)(i) and (ii) shall be paid to the
Executive in a lump sum cash payment within ten (10) days after the Date of
Termination or as soon thereafter as may be practicable.  The Accrued
Obligations provided under Section 7.2(b)(iii) and (iv) shall be paid in
accordance with the terms of the plan under which they are due.

2.  
A new Section 7.7(b)(vi) shall be added to the Agreement:

The Executive shall be entitled to a one-time payment in an amount equal to the
Executive’s Base Salary on the Date of Termination multiplied by ______ percent
(__%)[APPLICABLE NUMBER].  This one-time payment shall be paid to the Executive
in a lump sum cash payment within ten (10) days after the Date of Termination or
as soon thereafter as may be practicable.
 
3.  
Defined terms used but not defined in this Amendment shall have the meanings
assigned to them in the Agreement.

 
4.  
CarMax and the Executive hereby acknowledge and agree that, except as provided
in this Amendment, the Agreement has not been modified, amended, or
superseded.  The Agreement as amended herein is hereby ratified and confirmed by
the parties hereto and shall continue in full force and effect, affected by this
Amendment only to the extent of the amendments and modifications set forth
above.

 
 

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IN WITNESS WHEREOF, CarMax and the Executive have executed and delivered this
Amendment effective as of the Effective Date.

[EXECUTIVE]    
 
CarMax, Inc.
 

By:
 
By:
 

 

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Schedule of Terms for Named Executive Officers

Name
Title
Date of Original Employment/Severance Agreement 1
Applicable Number 2
Thomas J. Folliard
President and Chief Executive Officer
October 17, 2006
100%
Keith D. Browning
Executive Vice President and Chief Financial Officer
February 14, 2007
60%
Michael K. Dolan
Executive Vice President and Chief Administrative Officer
February 14, 2007
60%
Joseph S. Kunkel
Senior Vice President, Marketing and Strategy
February 14, 2007
40%
Richard M. Smith
Senior Vice President and Chief Information Officer
February 14, 2007
40%

1.  See first “Whereas” clause of Form Amendment to Employment/Severance
Agreement
2.  See Section 2 of Form Amendment to Employment/Severance Agreement