Document:

Receivables Purchase Agreement

 EXHIBIT 10.3 - RECEIVABLES PURCHASE AGREEMENT 

[EXECUTION COPY] 

CARMAX BUSINESS SERVICES, LLC, 

as Seller, 
 and

 CARMAX AUTO FUNDING LLC, 

as Purchaser 
  

 
 RECEIVABLES
PURCHASE AGREEMENT 
 Dated as of July 1, 2010 

 
  

 

 TABLE OF CONTENTS 

 

					
	 	  	 	  	Page
		  	ARTICLE I	  	
		  	DEFINITIONS	  	
			
	SECTION 1.1	  	Definitions	  	1
	SECTION 1.2	  	Other Definitional Provisions	  	4
			
		  	ARTICLE II	  	
		  	CONVEYANCE OF RECEIVABLES	  	
			
	SECTION 2.1	  	Sale and Conveyance of Receivables	  	4
	SECTION 2.2	  	Receivables Purchase Price; Payments on the Receivables	  	5
	SECTION 2.3	  	Transfer of Receivables	  	5
	SECTION 2.4	  	Examination of Receivable Files	  	6
	SECTION 2.5	  	Expenses	  	6
			
		  	ARTICLE III	  	
		  	REPRESENTATIONS AND WARRANTIES	  	
			
	SECTION 3.1	  	Representations and Warranties of the Purchaser	  	6
	SECTION 3.2	  	Representations and Warranties of the Seller	  	7
			
		  	ARTICLE IV	  	
		  	CONDITIONS	  	
			
	SECTION 4.1	  	Conditions to Obligation of the Purchaser	  	13
	SECTION 4.2	  	Conditions to Obligation of the Seller	  	14
			
		  	ARTICLE V	  	
		  	COVENANTS OF THE SELLER	  	
			
	SECTION 5.1	  	Protection of Right, Title and Interest in, to and Under the Receivables	  	15
	SECTION 5.2	  	Security Interests	  	16
	SECTION 5.3	  	Delivery of Payments	  	16
	SECTION 5.4	  	No Impairment	  	17
	SECTION 5.5	  	Costs and Expenses	  	17
	SECTION 5.6	  	Hold Harmless	  	17
			
		  	ARTICLE VI	  	
		  	MISCELLANEOUS PROVISIONS	  	
			
	SECTION 6.1	  	Amendment	  	17
	SECTION 6.2	  	Termination	  	18
	SECTION 6.3	  	Governing Law	  	18
	SECTION 6.4	  	Notices	  	18
	SECTION 6.5	  	Severability of Provisions	  	18

					
	 	  	 	  	Page
	 SECTION 6.6
	  	Further Assurances	  	18
	 SECTION 6.7
	  	No Waiver; Cumulative Remedies	  	18
	 SECTION 6.8
	  	Counterparts	  	19
	 SECTION 6.9
	  	Third-Party Beneficiaries	  	19
	 SECTION 6.10
	  	Headings and Table of Contents	  	19
	 SECTION 6.11
	  	Representations, Warranties and Agreements to Survive	  	19
	 SECTION 6.12
	  	No Proceedings	  	19
	 SECTION 6.13
	  	Accountant’s Letters	  	19
	 SECTION 6.14
	  	Obligations of Purchaser	  	20
			
		  	SCHEDULES	  	
			
	 SCHEDULE A
	  	Receivables Schedule	  	
			
		  	EXHIBITS	  	
			
	 EXHIBIT A
	  	Bill of Sale and Assignment	  	
	 EXHIBIT B
	  	Form of Retail Installment Sale Contract	  	

 RECEIVABLES PURCHASE AGREEMENT 

This Receivables Purchase Agreement, dated as of July 1, 2010, is between CarMax Business Services, LLC, a Delaware limited
liability company (“CarMax”), as seller (the “Seller”), and CarMax Auto Funding LLC, a Delaware limited liability company (“CarMax Funding”), as purchaser (the “Purchaser”).

 WHEREAS, in the regular course of business, CarMax Auto Superstores, Inc., a Virginia corporation (“CarMax
Auto”), and certain affiliates of CarMax Auto originate motor vehicle retail installment sale contracts secured by new and used motor vehicles; 

WHEREAS, the Seller intends to convey all of its right, title and interest in and to contracts having an aggregate outstanding principal
balance of $650,000,000.99 as of the close of business on June 30, 2010 (the “Receivables”) to the Purchaser and, concurrently with its purchase of the Receivables, the Purchaser intends to convey all of its right, title and
interest in and to the Receivables to CarMax Auto Owner Trust 2010-2, as issuer (the “Issuer”), pursuant to a Sale and Servicing Agreement, dated as of July 1, 2010 (the “Sale and Servicing Agreement”), among
the Issuer, CarMax Funding, as depositor, CarMax, as servicer, and Wells Fargo Bank, National Association, a national banking association, as backup servicer; and 

WHEREAS, the Seller and the Purchaser wish to set forth the terms pursuant to which the Receivables are to be sold by the Seller to the
Purchaser; 
 NOW, THEREFORE, in consideration of the mutual terms and covenants contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 ARTICLE I

 DEFINITIONS 

SECTION 1.1 Definitions. Whenever used in this Agreement, the following words and phrases shall have the following meanings:

 “Agreement” shall mean this Receivables Purchase Agreement and all amendments hereof and supplements hereto.

 “Base Prospectus” shall mean the prospectus, dated June 23, 2010, of the Purchaser relating to the
public offering by the Purchaser of the Notes. 
 “Bill of Sale” shall mean the Bill of Sale and Assignment,
substantially in the form attached as Exhibit A. 
 “CarMax” shall mean CarMax Business Services, LLC, a
Delaware limited liability company, and its successors. 
 “CarMax Auto” shall mean CarMax Auto Superstores,
Inc., a Virginia corporation, and its successors. 

 “CarMax Funding” shall mean CarMax Auto Funding LLC, a Delaware limited
liability company, and its successors. 
 “CarMax Funding II” shall mean CarMax Funding II, LLC, a Delaware
limited liability company, and its successors. 
 “Class A Notes” shall mean the Class A-1 Notes, the
Class A-2 Notes, the Class A-3 Notes and the Class A-4 Notes issued pursuant to the Indenture. 
 “Class
B Notes” shall mean the Class B Notes issued pursuant to the Indenture. 
 “Class C Notes” shall mean
the Class C Notes issued pursuant to the Indenture. 
 “Closing Date” shall mean July 8, 2010. 

“Cutoff Date” shall mean June 30, 2010. 

“Delaware Trustee” shall mean BNY Mellon Trust of Delaware, a Delaware banking corporation, as Delaware trustee under
the Trust Agreement, and its successors in such capacity. 
 “Depositor” shall mean CarMax Funding, in its
capacity as Depositor under the Trust Agreement, and its successors in such capacity. 
 “Indenture” shall mean
the Indenture, dated as of July 1, 2010, between the Issuer and the Indenture Trustee, as amended, supplemented or otherwise modified and in effect from time to time. 

“Indenture Trustee” shall mean Wells Fargo Bank, National Association, a national banking association, as indenture
trustee under the Indenture, and its successors in such capacity. 
 “Initial Reserve Account Deposit” shall
mean $1,625,000. 
 “Issuer” shall mean CarMax Auto Owner Trust 2010-2, a Delaware statutory trust, and its
successors. 
 “Noteholders” shall mean the registered holders of the Notes. 

“Notes” shall mean the Class A Notes, the Class B Notes and the Class C Notes. 

“Owner Trustee” shall mean The Bank of New York Mellon, a New York banking corporation, as owner trustee under the Trust
Agreement, and its successors in such capacity. 
 “Prospectus Supplement” shall mean the final prospectus
supplement, dated June 30, 2010, of the Purchaser relating to the public offering by the Purchaser of the Class A Notes, the Class B Notes and the Class C Notes. 
  

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 “Prospectus” shall mean the Prospectus Supplement and the Base Prospectus.

 “Purchaser” shall mean CarMax Funding, in its capacity as purchaser of the Receivables under this Agreement,
and its successors in such capacity. 
 “Receivables” shall mean the motor vehicle retail installment sale
contracts sold by the Seller to the Purchaser pursuant to this Agreement and identified on the Receivables Schedule. 

“Receivables Purchase Price” shall mean $669,500,001.02. 

“Receivables Schedule” shall mean the schedule of receivables attached as Schedule A, as amended, supplemented or
otherwise modified and in effect from time to time. 
 “Representative” shall mean J.P. Morgan Securities,
Inc., a Delaware corporation, as representative of the Underwriters. 
 “Sale and Servicing Agreement” shall
have the meaning specified in the recitals. 
 “Seller” shall mean CarMax, in its capacity as seller of the
Receivables under this Agreement, and its successors in such capacity. 
 “State” shall mean any of the 50
states of the United States or the District of Columbia. 
 “Transaction Documents” shall mean this Agreement,
the Trust Agreement, the Sale and Servicing Agreement, the Indenture, the Administration Agreement and the other documents and certificates delivered in connection therewith, in each case as amended, supplemented or otherwise modified and in effect
from time to time. 
 “Trust Agreement” shall mean the Trust Agreement, dated as of February 25, 2010,
among CarMax Funding, the Delaware Trustee and the Owner Trustee, as amended and restated by the Amended and Restated Trust Agreement, dated as of July 1, 2010, among CarMax Funding, the Delaware Trustee and the Owner Trustee. 

“Trustee” shall mean either the Owner Trustee or the Indenture Trustee, as the context requires. 

“UCC” shall mean the Uniform Commercial Code as in effect in the applicable jurisdiction. 

“Underwriters” shall mean the underwriters named in Schedule A to the Underwriting Agreement. 

“Underwriting Agreement” shall mean the Underwriting Agreement, dated June 30, 2010, among CarMax Funding, CarMax
and the Representative, relating to the purchase of the Notes by the Underwriters from CarMax Funding. 
  

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 SECTION 1.2 Other Definitional Provisions. 

(a) Capitalized terms used herein that are not otherwise defined shall have the meanings ascribed thereto in the Sale and Servicing
Agreement. 
 (b) The words “hereof”, “herein” and “hereunder” and words of similar import when
used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement; Section, subsection, Schedule and Exhibit references contained in this Agreement are references to Sections,
subsections, Schedules and Exhibits in or to this Agreement unless otherwise specified; the term “proceeds” shall have the meaning set forth in the applicable UCC; and the word “including” shall mean including without limitation.

 ARTICLE II 

CONVEYANCE OF RECEIVABLES 

SECTION 2.1 Sale and Conveyance of Receivables. 

(a) On the Closing Date, subject to the terms and conditions of this Agreement, the Seller hereby agrees to sell, transfer, assign, set
over and otherwise convey to the Purchaser, and the Purchaser hereby agrees to purchase from the Seller, without recourse (subject to the Seller’s obligations hereunder and the satisfaction of the conditions set forth in Section 4.1), all
of the right, title and interest of the Seller, whether now owned or hereafter acquired, in, to and under the following: 

(i) the Receivables; 

(ii) all amounts received on or in respect of the Receivables (including proceeds of the repurchase of Receivables by the
Seller pursuant to Section 3.2(f)) after the Cutoff Date; 
 (iii) the security interests in the Financed
Vehicles granted by the Obligors pursuant to the Receivables and any other interest of the Seller in such Financed Vehicles; 

(iv) all proceeds from claims on or refunds of premiums of any physical damage or theft insurance policies covering the
Financed Vehicles and any proceeds or refunds of premiums of any credit life or credit disability insurance policies relating to the Financed Vehicles or the Obligors; 

(v) the Receivable Files; 

(vi) the right to realize upon any property (including the right to receive future Liquidation Proceeds) that shall have
secured a Receivable and have been repossessed by or on behalf of the Issuer; and 
 (vii) all present and future
claims, demands, causes of action and choses in action in respect of any or all of the foregoing and all payments on or under and all proceeds of every kind and nature whatsoever in respect of any or all of the foregoing,

  

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including all proceeds of the conversion thereof, voluntary or involuntary, into cash or other liquid property; all accounts, general intangibles, chattel paper, instruments, documents, money,
investment property, deposit accounts, letters of credit, letter-of-credit rights, insurance proceeds, condemnation awards, rights to payment of any and every kind and other forms of obligations; and all other property which at any time constitutes
all or part of or is included in the proceeds of any of the foregoing. 
 (b) The parties hereto intend that the conveyance of
the Receivables and related property hereunder be a sale and not a loan. In the event that the conveyance hereunder is not for any reason considered a sale, the Seller hereby grants to the Purchaser a first priority perfected security interest in
all of the Seller’s right, title and interest in, to and under the Receivables and all other property conveyed hereunder and listed in this Section and all proceeds of any of the foregoing. The parties intend that this Agreement constitute
a security agreement under applicable law. Such grant is made to secure the payment of all amounts payable hereunder, including the Receivables Purchase Price. If such conveyance is for any reason considered to be a loan and not a sale, the Seller
consents to the Purchaser transferring such security interest in favor of the Indenture Trustee and transferring the obligations secured thereby to the Indenture Trustee. 

(c) The Seller agrees to treat the transfer of the Receivables and the related property contemplated by this Section for all
purposes (including financial accounting purposes) as an absolute transfer on all relevant books, records, financial statements and other applicable documents. 

SECTION 2.2 Receivables Purchase Price; Payments on the Receivables. 

(a) On the Closing Date, in exchange for the Receivables and other assets described in Section 2.1, the Purchaser shall pay to the
Seller the Receivables Purchase Price. An amount equal to $646,738,737.52 of the Receivables Purchase Price shall be paid by the Purchaser to the Seller in cash or immediately available funds. The remainder of the Receivables Purchase Price shall be
paid by crediting the Seller with a contribution to the capital of the Purchaser. The Purchaser shall deposit, from funds it receives from the issuance of the Notes, an amount equal to the Initial Reserve Account Deposit into the Reserve Account,
which amount shall be an asset of the Issuer. 
 (b) The Purchaser shall be entitled to, and shall convey such right to the
Owner Trustee pursuant to the Sale and Servicing Agreement, all payments of principal and interest on or in respect of the Receivables received after the Cutoff Date. 

SECTION 2.3 Transfer of Receivables. Pursuant to the Sale and Servicing Agreement, the Purchaser will assign all of its right,
title and interest in, to and under the Receivables and other assets described in Section 2.1 to the Issuer. The parties hereto acknowledge that the Issuer will pledge its rights in, to and under the Receivables and other assets described in
Section 2.1 to the Indenture Trustee pursuant to the Indenture. The Purchaser has the right to assign its interest under this Agreement as may be required to effect the purposes of the Sale and Servicing Agreement, without the consent of the
Seller, and the Owner Trustee as assignee shall succeed to the rights and obligations hereunder of the Purchaser. 
  

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 SECTION 2.4 Examination of Receivable Files. The Seller will make the Receivable
Files available to the Purchaser or its agent for examination during normal business hours at the Seller’s offices or such other location as otherwise shall be agreed upon by the Purchaser and the Seller. 

SECTION 2.5 Expenses. The Seller will reimburse the Purchaser for expenses of the Purchaser in connection with the sale of the
Notes, including expenses which are reimbursable to the Underwriters by the Purchaser pursuant to the Underwriting Agreement. 

ARTICLE III 

REPRESENTATIONS AND WARRANTIES 

SECTION 3.1 Representations and Warranties of the Purchaser. The Purchaser hereby makes the following representations and
warranties to the Seller as of the date of this Agreement and as of the Closing Date: 
 (a) Organization and
Good Standing. The Purchaser is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware, and has power and authority to own its properties and to conduct its business as such
properties are currently owned and such business is presently conducted, and had at all relevant times, and shall have, power, authority and legal right to acquire, own and sell the Receivables. 

(b) Power and Authority; Binding Obligation. The Purchaser has the power and authority to execute and deliver this
Agreement and to carry out its terms; and the execution, delivery and performance of this Agreement has been duly authorized by the Purchaser by all necessary action. This Agreement constitutes the legal, valid and binding obligation of the
Purchaser, enforceable against the Purchaser in accordance with its terms, subject, as to enforceability, to applicable bankruptcy, insolvency, reorganization, conservatorship, receivership, liquidation and other similar laws and to general
equitable principles. 
 (c) No Violation. The consummation of the transactions contemplated by this
Agreement and the fulfillment of the terms hereof shall not conflict with, result in any breach of any of the terms and provisions of, nor constitute (with or without notice or lapse of time) a default under, the limited liability company agreement
or certificate of formation of the Purchaser, or conflict with or breach any of the material terms or provisions of, or constitute (with or without notice or lapse of time) a default under, any indenture, agreement or other instrument to which the
Purchaser is a party or by which it may be bound. 
 (d) No Proceedings. There are no proceedings or
investigations pending, or, to the knowledge of the Purchaser, threatened, against the Purchaser before any court, regulatory body, administrative agency or other tribunal or governmental instrumentality having jurisdiction over the Purchaser or its
properties (i) asserting the invalidity of this Agreement, (ii) seeking to prevent the consummation of any of the transactions contemplated by this Agreement or (iii) seeking any determination or ruling that, in the reasonable
judgment of the Purchaser would materially and adversely affect the performance by the Purchaser of its obligations under, or the validity or enforceability of, this Agreement or the Receivables. 

 

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 SECTION 3.2 Representations and Warranties of the Seller. 

(a) The Seller hereby makes the following representations and warranties to the Purchaser as of the date of this Agreement and as of the
Closing Date: 
 (i) Organization and Good Standing. The Seller is a limited liability company duly
organized, validly existing and in good standing under the laws of the State of Delaware, and has power and authority to own its properties and to conduct its business as such properties are currently owned and such business is presently conducted,
and had at all relevant times, and shall have, power, authority and legal right to acquire, own and sell the Receivables. 

(ii) Power and Authority; Binding Obligation. The Seller has the power and authority to execute and deliver this
Agreement and to carry out its terms; and the execution, delivery and performance of this Agreement has been duly authorized by the Seller by all necessary action. This Agreement constitutes the legal, valid and binding obligation of the Seller,
enforceable against the Seller in accordance with its terms, subject, as to enforceability, to applicable bankruptcy, insolvency, reorganization, conservatorship, receivership, liquidation and other similar laws and to general equitable principles.

 (iii) No Violation. The consummation of the transactions contemplated by this Agreement and the
fulfillment of the terms hereof shall not conflict with, result in any breach of any of the terms and provisions of, nor constitute (with or without notice or lapse of time) a default under, the certificate of formation or limited liability company
agreement of the Seller, or conflict with or breach any of the material terms or provisions of, or constitute (with or without notice or lapse of time) a default under, any indenture, agreement or other instrument to which the Seller is a party or
by which it may be bound. 
 (iv) No Proceedings. There are no proceedings or investigations pending, or,
to the knowledge of the Seller, threatened, against the Seller before any court, regulatory body, administrative agency or other tribunal or governmental instrumentality having jurisdiction over the Seller or its properties (i) asserting the
invalidity of this Agreement, (ii) seeking to prevent the consummation of any of the transactions contemplated by this Agreement or (iii) seeking any determination or ruling that, in the reasonable judgment of the Seller would materially
and adversely affect the performance by the Seller of its obligations under, or the validity or enforceability of, this Agreement or the Receivables. 

(v) No Tax Liens. The Seller is not aware of any material judgment or tax lien filings against the Seller.

  

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 (b) The Seller hereby makes the following representations and warranties to the Purchaser as
of the date of this Agreement and as of the Closing Date, which representations and warranties shall remain operative and in full force and effect, shall survive the transfer and conveyance of the Receivables and other assets described in
Section 2.1 by the Seller to the Purchaser and by the Purchaser to the Issuer and shall inure to the benefit of the Purchaser, the Trustees and the Noteholders: 

(i) Characteristics of Receivables. Each Receivable (i) has been originated by CarMax Auto or an Affiliate of
CarMax Auto in the ordinary course of business in connection with the sale of a new or used motor vehicle and has been fully and properly executed by the parties thereto, (ii) contains customary and enforceable provisions such that the rights
and remedies of the holder thereof are adequate for realization against the collateral of the benefits of the security, (iii) provides for level monthly payments that fully amortize the Amount Financed by maturity (except that the period
between the date of such Receivable and the date of the first Scheduled Payment may be less than or greater than one month and the amount of the first and last Scheduled Payments may be less than or greater than the level payments) and yield
interest at the related APR, (iv) provides for, in the event that such Receivable is prepaid, a prepayment that fully pays the Principal Balance of such Receivable with interest at the related APR through the date of payment, (v) is a
retail installment sale contract substantially in the form of Exhibit B, (vi) is secured by a new or used motor vehicle that had not been repossessed as of the Cutoff Date, (vii) is a Simple Interest Receivable, (viii) relates to an
Obligor who has made at least one payment under such Receivable as of the Cutoff Date and (ix) relates to an Obligor whose mailing address is located in any State. 

(ii) Receivable Schedule. The information set forth in the Receivable Schedule was true and correct in all material
respects as of the opening of business on the Cutoff Date, and no selection procedures believed to be adverse to the Depositor and/or the Noteholders were utilized in selecting the Receivables from those retail installment sale contracts which met
the criteria contained in this Agreement. The information set forth in the compact disk or other listing regarding the Receivables made available to the Depositor and its assigns (which compact disk or other listing is required to be delivered as
specified herein) is true and correct in all material respects. 
 (iii) Compliance with Law. Each
Receivable and the sale of the related Financed Vehicle complied, at the time such Receivable was originated and complies, as of the Closing Date, in all material respects with all requirements of applicable federal, State and local laws, and
regulations thereunder, including usury laws, the Federal Truth-in-Lending Act, the Equal Credit Opportunity Act, the Fair Credit Reporting Act, the Fair Debt Collection Practices Act, the Federal Trade Commission Act, the Magnuson-Moss Warranty
Act, the Federal Reserve Board’s Regulations B and Z, the Servicemembers Civil Relief Act, State adaptations of the National Consumer Act and the Uniform Consumer Credit Code and any other consumer credit, equal opportunity and disclosure laws
applicable to such Receivable and sale. 
  

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 (iv) Binding Obligation. Each Receivable represents the genuine,
legal, valid and binding payment obligation in writing of the related Obligor, enforceable by the holder thereof in all material respects in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency,
reorganization, liquidation or other similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity. 

(v) No Government Obligor. No Receivable is due from the United States or any State or from any agency, department
or instrumentality of the United States or any State. 
 (vi) Security Interest in Financed Vehicles.
Immediately prior to the transfer of the Receivables by the Seller to the Depositor, each Receivable was secured by a valid, binding and enforceable first priority perfected security interest in favor of the Seller in the related Financed Vehicle,
which security interest has been validly assigned by the Seller to the Depositor. The Servicer has received, or will receive within 180 days after the Closing Date, the original certificate of title for each Financed Vehicle (other than any
Financed Vehicle that is subject to a certificate of title statute or motor vehicle registration law that does not require that the original certificate of title for such Financed Vehicle be delivered to the Seller). 

(vii) Receivables in Force. No Receivable has been satisfied, subordinated or rescinded, nor has any Financed
Vehicle been released in whole or in part from the Lien granted by the related Receivable. 
 (viii) No
Waiver. No provision of any Receivable has been waived in such a manner that such Receivable fails to meet all of the representations and warranties made by the Seller in this Section 3.2(b) with respect thereto. 

(ix) No Defenses. No Receivable is subject to any right of rescission, setoff, counterclaim or defense, including
the defense of usury, and the operation of any of the terms of any Receivable, or the exercise of any right thereunder, will not render such Receivable unenforceable in whole or in part or subject to any right of rescission, setoff, counterclaim or
defense, including the defense of usury, and the Seller has no knowledge of any such right of rescission, setoff, counterclaim or defense being asserted or threatened with respect to any Receivable. 

(x) No Liens. The Seller has no knowledge of any liens or claims that have been filed, including liens for work,
labor or materials or for unpaid State or federal taxes, relating to any Financed Vehicle that are prior to, or equal or coordinate with, the security interest in such Financed Vehicle created by the related Receivable. 

(xi) No Default. Except for payment defaults continuing for a period of not more than 30 days, the Seller has no
knowledge that any default, breach, violation or event permitting acceleration under the terms of any Receivable has occurred or that any continuing condition that with notice or the lapse of time or both would constitute a default, breach,
violation or event permitting acceleration under the terms of any Receivable has arisen, and the Seller has not waived any such event or condition. 
  

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 (xii) Title. The Seller intends that the transfer of the Receivables
contemplated by Section 2.1 constitute a sale of the Receivables from the Seller to the Depositor and that the beneficial interest in, and title to, the Receivables not be part of the Seller’s estate in the event of the filing of a
bankruptcy petition by or against the Seller under any bankruptcy law. The Seller has not sold, transferred, assigned or pledged any Receivable to any Person other than the Depositor. Immediately prior to the transfer of the Receivables contemplated
by Section 2.1, the Seller had good and marketable title to the Receivables free and clear of any Lien, claim or encumbrance of any Person and, immediately upon such transfer, the Depositor shall have good and marketable title to the
Receivables free and clear of any Lien, claim or encumbrance of any Person. 
 (xiii) Security Interest
Matters. This Agreement creates a valid and continuing “security interest” (as defined in the Relevant UCC) in the Receivables in favor of the Depositor, which security interest is prior to all other Liens and is enforceable as such
against creditors of and purchasers from the Seller. With respect to each Receivable, the Seller has taken all steps necessary to perfect its security interest against the related Obligor in the related Financed Vehicle. The Receivables constitute
“tangible chattel paper” (as defined in the Relevant UCC). The Seller has caused or will cause prior to the Closing Date the filing of all appropriate financing statements in the proper filing offices in the appropriate jurisdictions under
applicable law necessary to perfect the security interest in the Receivables granted to the Depositor under this Agreement. Other than the security interest granted to the Depositor under this Agreement, the Seller has not pledged, assigned, sold,
granted a security interest in or otherwise conveyed any of the Receivables. The Seller has not authorized the filing of and is not aware of any financing statements against the Seller that include a description of collateral covering the
Receivables other than any financing statement relating to the security interest granted to the Depositor under this Agreement or that has been terminated. The motor vehicle retail installment sale contracts that constitute or evidence the
Receivables do not have any marks or notations indicating that they have been pledged, assigned or otherwise conveyed to any Person other than the Depositor, the Issuer or the Indenture Trustee. The Seller is not aware of any judgment or tax lien
filings against the Seller. 
 (xiv) Financing Statements. All financing statements filed or to be filed
against the Seller in favor of the Indenture Trustee (as assignee of the Depositor and the Issuer) contain a statement substantially to the following effect: “A purchase of or security interest in any collateral described in this financing
statement will violate the rights of the Indenture Trustee.” 
 (xv) Valid Assignment. No Receivable
has been originated in, or is subject to the laws of, any jurisdiction under which the sale, transfer, assignment and conveyance of such Receivable under this Agreement or the Sale and Servicing Agreement or the pledge of such Receivable under the
Indenture is unlawful, void or voidable or under which such Receivable would be rendered void or voidable as a result of any such sale, transfer, assignment, conveyance or pledge. The Seller has not entered into any agreement with any account debtor
that prohibits, restricts or conditions the assignment of the Receivables. 
  

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 (xvi) One Original. There is only one original executed copy of each
Receivable. 
 (xvii) Principal Balance. Each Receivable had an original Principal Balance of not more
than $65,000 and a remaining Principal Balance as of the Cutoff Date of not less than $500. 
 (xviii) No
Bankrupt Obligors. As of the Cutoff Date, no Receivable was due from an Obligor that was the subject of a proceeding under the Bankruptcy Code of the United States or was bankrupt. 

(xix) New and Used Vehicles. As of the Cutoff Date, approximately 0.94% of the Pool Balance related to Receivables
secured by new Financed Vehicles and approximately 99.06% of the Pool Balance related to Receivables secured by used Financed Vehicles. 

(xx) Origination. Each Receivable was originated after January 5, 2005. 

(xxi) Term to Maturity. Each Receivable had an original term to maturity of not more than 72 months and not less
than 12 months and a remaining term to maturity as of the Cutoff Date of not more than 71 months and not less than three months. 

(xxii) Weighted Average Remaining Term to Maturity. As of the Cutoff Date, the weighted average remaining term to
maturity of the Receivables was approximately 58.98 months. 
 (xxiii) Annual Percentage Rate. Each
Receivable has an APR of at least 4.45% and not more than 25.00%. 
 (xxiv) Location of Receivable Files.
The Receivable Files are maintained at the location listed in Schedule 2 to the Sale and Servicing Agreement. 

(xxv) Simple Interest Method. All payments with respect to the Receivables have been allocated consistently in
accordance with the Simple Interest Method. 
 (xxvi) No Delinquent Receivables. As of the Cutoff Date, no
payment due under any Receivable was more than 30 days past due. 
 (xxvii) Insurance. Each Obligor has
obtained or agreed to obtain physical damage insurance (which insurance shall not be force placed insurance) covering the related Financed Vehicle in accordance with the Seller’s normal requirements. 

(xxviii) Fair Market Value. The Receivables Purchase Price represents the fair market value of the Receivables.

  

 11 

 (xxix) Custodial Agreements. Immediately prior to the transfer of the
Receivables by the Seller to the Depositor, the Seller or an Affiliate of the Seller had possession of the Receivable Files and there were no, and there will not be any, custodial agreements in effect materially adversely affecting the right or
ability of the Seller to make, or cause to be made, any delivery required under this Agreement. 
 (xxx) Bulk
Transfer Laws. The transfer of the Receivables and the Receivable Files by the Seller to the Depositor pursuant to this Agreement is not subject to the bulk transfer laws or any similar statutory provisions in effect in any applicable
jurisdiction. 
 (c) The Seller shall indemnify the Purchaser and hold the Purchaser harmless against any losses, penalties,
fines, forfeitures, legal fees and related costs, judgments and other costs and expenses resulting from any third party claim, demand, defense or assertion based on or grounded upon, or resulting from, a breach of the Seller’s representations
and warranties set forth in Section 3.2(b). The Trustees shall also have the remedies provided in the Sale and Servicing Agreement. 

(d) Any cause of action against the Seller relating to or arising out of the breach of any of its representations and warranties set
forth in Section 3.2(b) shall accrue as to any Receivable upon (i) discovery of such breach by the Purchaser or either Trustee or notice thereof by the Seller to the Purchaser, (ii) failure by the Seller to cure such breach and
(iii) demand upon the Seller by the Purchaser for all amounts payable in respect of such Receivable under this Agreement. 

(e) The Purchaser or the Seller, as the case may be, shall inform the other parties promptly, in writing, upon discovery of any breach of
the Seller’s representations and warranties set forth in Section 3.2(b) which materially and adversely affects the interests of the Noteholders in any Receivable. 

(f) If a breach of any representation or warranty set forth in Section 3.2(b) which materially and adversely affects the interests
of the Purchaser, the Issuer or the Noteholders in any Receivable shall not have been cured by the close of business on the last day of the Collection Period which includes the thirtieth day after the date on which the Seller becomes aware of, or
receives written notice from the Servicer, the Purchaser or the Owner Trustee of, such breach or failure, the Seller shall repurchase such Receivable from the Purchaser on the Distribution Date following such Collection Period. In consideration for
the repurchase of any such Receivable, the Seller shall remit the Purchase Amount of such Receivable to the Purchaser. Upon any such repurchase, the Purchaser shall, without further action, be deemed to transfer, assign, set-over and otherwise
convey to the Seller, without recourse, representation or warranty, all the right, title and interest of the Purchaser in, to and under such repurchased Receivable and all other related assets described in Section 2.1. The Purchaser shall
execute such documents and instruments of transfer or assignment and take such other actions as shall reasonably be requested by the Seller to effect the conveyance of such Receivable pursuant to this Section. The sole remedy of the Purchaser with
respect to a breach of the Seller’s representations and warranties set forth in Section 3.2(b) shall be to require the Seller to repurchase the related Receivables pursuant to this Section. 

 

 12 

 ARTICLE IV 

CONDITIONS 

SECTION 4.1 Conditions to Obligation of the Purchaser. The obligation of the Purchaser to purchase the Receivables from the Seller
on the Closing Date is subject to the satisfaction of the following conditions: 
 (a) Representations and
Warranties True. The representations and warranties of the Seller contained herein and in the other Transaction Documents shall be true and correct on the Closing Date with the same effect as if made on the Closing Date, and each of the Seller
and the Servicer shall have performed all obligations to be performed by it hereunder and under the other Transaction Documents on or before the Closing Date. 

(b) Computer Files Marked. The Seller shall, at its own expense, on or before the Closing Date, indicate in its
computer files that the Receivables have been sold to the Purchaser pursuant to this Agreement and deliver to the Purchaser the Receivables Schedule, certified by an officer of the Seller to be true, correct and complete. 

(c) Release of Lenders. The Seller shall obtain executed release agreements and UCC partial releases with respect
to the Receivables from Bank of America, N.A. (and certain other parties) and CarMax Funding II, in each case in form and substance satisfactory to the Purchaser. 

(d) Documents to be Delivered. The Purchaser shall have received the following, all of which shall be dated as of
the Closing Date or such other date as specified: 
 (i) the Receivables Schedule; 

(ii) an Officer’s Certificate of the Seller, in form and substance previously approved by the Purchaser and its
counsel, as to, among other things, the representations and warranties of the Seller and satisfaction of conditions precedent; 

(iii) an opinion or opinions of counsel for the Seller, in form and substance previously approved by the Purchaser and its
counsel, addressed to the Purchaser; 
 (iv) [RESERVED]; 

(v) copies of resolutions of the manager of the Seller approving the execution, delivery and performance of the
Transaction Documents to which the Seller is a party, and the performance of the transactions contemplated hereunder and thereunder, certified by the Secretary or an Assistant Secretary of the Seller; 

 

 13 

 (vi) copies of the certificate of formation of the Seller, together with all
amendments, revisions and supplements thereto, certified by the Delaware Secretary of State as of a recent date, and a certificate of good standing from the Delaware Secretary of State, dated as of a recent date, to the effect that the Seller has
been duly formed, is in good standing and has a legal existence; 
 (vii) UCC search reports from the appropriate
offices in Delaware as to the Seller; 
 (viii) reliance letters to each opinion of counsel to the Seller or the
Servicer delivered to Standard & Poor’s or Fitch in connection with the purchase of the Receivables hereunder or the issuance or sale of the Notes; 

(ix) a financing statement to be filed with the Delaware Secretary of State, naming the Seller, as seller or debtor, the
Purchaser, as purchaser or secured party, and the Issuer as assignee, naming the Receivables and the related property described in Section 2.1 as collateral and meeting the requirements of the laws of each such jurisdiction and in such manner
as is necessary to perfect the sale, transfer, assignment and conveyance of the Receivables to the Purchaser; 

(x) the Bill of Sale; and 

(xi) such other documents, certificates and opinions as may be reasonably requested by the Purchaser or its counsel.

 (e) Execution of Transaction Documents. The Transaction Documents shall have been executed and
delivered by the parties thereto. 
 (f) Rating of the Notes. Fitch and Standard & Poor’s,
respectively, shall have assigned ratings of (i) “F1+” and “A-1+” to the Class A-1 Notes, (ii) “AAA” and “AAA” to the Class A-2 Notes, the Class A-3 Notes and the Class A-4 Notes,
(iii) “A” and “A” to the Class B Notes and (iv) “BBB+” and “BBB” to the Class C Notes. 

(g) [RESERVED]. 

(h) Other Transactions. The transactions contemplated by the Transaction Documents and the Underwriting Agreement
shall be consummated on the Closing Date. 
 SECTION 4.2 Conditions to Obligation of the Seller. The obligation of the
Seller to sell the Receivables to the Purchaser on the Closing Date is subject to the satisfaction of the following conditions: 

(a) Representations and Warranties True. The representations and warranties of the Purchaser contained herein and
in the other Transaction Documents shall be true and correct on the Closing Date with the same effect as if then made, and the Purchaser shall have performed all obligations to be performed by it hereunder and under the other Transaction Documents
on or before the Closing Date. 
  

 14 

 (b) Payment of Receivables Purchase Price. In consideration of the
sale of the Receivables from the Seller to the Purchaser as provided in Section 2.1, on the Closing Date the Purchaser shall have paid to the Seller the Receivables Purchase Price. 

(c) Opinions of Purchaser. An opinion or opinions of counsel for the Purchaser addressed to the Seller and the
Underwriters shall have been delivered. 
 ARTICLE V 

COVENANTS OF THE SELLER 

SECTION 5.1 Protection of Right, Title and Interest in, to and Under the Receivables. 

(a) The Seller, at its expense, shall cause all financing statements and continuation statements and any other necessary documents
covering the Purchaser’s right, title and interest in, to and under the Receivables and other property conveyed by the Seller to the Purchaser hereunder to be promptly authorized, recorded, registered and filed, and at all times to be kept
recorded, registered and filed, all in such manner and in such places as may be required by law fully to preserve and protect the right, title and interest of the Purchaser hereunder to the Receivables and such other property. The Seller shall
deliver to the Purchaser file-stamped copies of, or filing receipts for, any document recorded, registered or filed as provided above, as soon as available following such recording, registration or filing. The Purchaser shall cooperate fully with
the Seller in connection with the obligations set forth above and will execute any and all documents reasonably required to fulfill the intent of this subsection. 

(b) Within five days after the Seller makes any change in its name, identity or organizational structure which would make any financing
statement or continuation statement filed in accordance with Section 4.1(d) seriously misleading within the meaning of the UCC as in effect in the applicable State, the Seller shall give the Purchaser notice of any such change and, within 30
days after such change, shall authorize and file such financing statements or amendments as may be necessary to continue the perfection of the Purchaser’s security interest in the Receivables and the proceeds thereof. 

(c) The Seller shall give the Purchaser written notice within five days of any relocation of the State of organization of the Seller or
any office in which the Seller keeps records concerning the Receivables and whether, as a result of such relocation, the applicable provisions of the UCC would require the filing of any amendment of any previously filed financing or continuation
statement or of any new financing statement and, within 30 days after such relocation, shall authorize and file such financing statements or amendments as may be necessary to continue the perfection of the interest of the Purchaser in the
Receivables and the proceeds thereof. The Seller shall at all times maintain its State of organization, its principal place of business and its chief executive office and the location of the office where the Receivables Files and any accounts and
records relating to the Receivables are kept within the United States. 
  

 15 

 (d) The Seller shall maintain accounts and records as to each Receivable accurately and in
sufficient detail to permit (i) the reader thereof to know at any time the status of such Receivable, including payments and recoveries made and payments owing (and the nature of each) and (ii) reconciliation between payments or recoveries
on (or with respect to) each Receivable. 
 (e) The Seller shall maintain its computer systems so that, from and after the time
of the transfer of the Receivables to the Purchaser pursuant to this Agreement, the Seller’s master computer records (including any back-up archives) that refer to a Receivable shall indicate clearly and unambiguously that such Receivable is
owned by the Purchaser (or, upon transfer of the Receivables to the Issuer, by the Issuer). Indication of the Purchaser’s ownership of a Receivable shall be deleted from or modified on the Seller’s computer systems when, and only when,
such Receivable shall have been paid in full or repurchased by the Seller. 
 (f) If at any time the Seller shall propose to
sell, grant a security interest in or otherwise transfer any interest in any motor vehicle retail installment sale contract to any prospective purchaser, lender or other transferee, the Seller shall give to such prospective purchaser, lender or
other transferee computer tapes, compact disks, records or print-outs (including any restored from back-up archives) that, if they shall refer in any manner whatsoever to any Receivable, shall indicate clearly and unambiguously that such Receivable
has been sold and is owned by the Purchaser (or, upon transfer of the Receivables to the Issuer, the Issuer), unless such Receivable has been paid in full or repurchased by the Seller. 

(g) The Seller shall permit the Purchaser and its agents at any time during normal business hours to inspect, audit and make copies of
and abstracts from the Seller’s records regarding any Receivable. 
 (h) If the Seller has repurchased one or more
Receivables from the Purchaser or the Issuer pursuant to Section 3.2(f), the Seller shall, upon request, furnish to the Purchaser, within ten days, a list of all Receivables (by receivable number and name of Obligor) then owned by the
Purchaser, together with a reconciliation of such list to the Receivables Schedule. 
 SECTION 5.2 Security Interests.
Except for the conveyances hereunder, the Seller covenants that it will not sell, pledge, assign or transfer to any other Person, or grant, create, incur, assume or suffer to exist any Lien on any Receivable, whether now existing or hereafter
created, or any interest therein; the Seller will immediately notify the Purchaser of the existence of any Lien on any Receivable and, in the event that the interests of the Noteholders in such Receivable are materially and adversely affected, such
Receivable shall be repurchased from the Purchaser by the Seller in the manner and with the effect specified in Section 3.2(f), and the Seller shall defend the right, title and interest of the Purchaser in, to and under the Receivables, whether
now existing or hereafter created, against all claims of third parties claiming through or under the Seller. 
 SECTION 5.3
Delivery of Payments. The Seller covenants and agrees to deliver in kind upon receipt to the Servicer under the Sale and Servicing Agreement all payments received by the Seller in respect of the Receivables as soon as practicable after
receipt thereof by the Seller. 
  

 16 

 SECTION 5.4 No Impairment. The Seller covenants that it shall take no action, nor
omit to take any action, which would impair the rights of the Purchaser in any Receivable, nor shall it, except as otherwise provided in this Agreement or the Sale and Servicing Agreement, reschedule, revise or defer payments due on any Receivable.

 SECTION 5.5 Costs and Expenses. The Seller shall pay all reasonable costs and expenses incurred in connection with the
perfection of the Purchaser’s right, title and interest in, to and under the Receivables. 
 SECTION 5.6 Hold
Harmless. The Seller shall protect, defend, indemnify and hold the Purchaser and the Issuer and their respective assigns and their attorneys, accountants, employees, officers and directors harmless from and against all losses, costs,
liabilities, claims, damages and expenses of every kind and character, as incurred, resulting from or relating to or arising out of (i) the inaccuracy, nonfulfillment or breach of any representation, warranty, covenant or agreement made by the
Seller in this Agreement, (ii) any legal action, including any counterclaim, that has either been settled by the litigants (which settlement, if the Seller is not a party thereto shall be with the consent of the Seller) or has proceeded to
judgment by a court of competent jurisdiction, in either case to the extent it is based upon alleged facts that, if true, would constitute a breach of any representation, warranty, covenant or agreement made by the Seller in this Agreement,
(iii) any actions or omissions of the Seller or any employee or agent of the Seller occurring prior to the Closing Date with respect to any Receivable or Financed Vehicle or (iv) any failure of a Receivable to be originated in compliance
with all requirements of law. These indemnity obligations shall be in addition to any obligation that the Seller may otherwise have. 

ARTICLE VI 

MISCELLANEOUS PROVISIONS 

SECTION 6.1 Amendment. 

(a) This Agreement may be amended from time to time by a written amendment duly executed and delivered by the Purchaser and the Seller,
without the consent of any Noteholder, to cure any ambiguity, to correct or supplement any provision herein which may be inconsistent with any other provision herein or to add any other provision with respect to matters or questions arising under
this Agreement which shall not be inconsistent with the provisions of this Agreement or the Sale and Servicing Agreement; provided, however, that any such amendment shall not, as evidenced by an Opinion of Counsel to the Seller
delivered to the Indenture Trustee, adversely affect in any material respect the interests of the Noteholders. 
 (b) This
Agreement may also be amended from time to time for any other purpose by a written amendment duly executed and delivered by the Seller and by the Purchaser; provided, however, that any such amendment that materially adversely affects
the interests of the Noteholders under the Indenture, the Sale and Servicing Agreement or the Trust Agreement must be consented to by the Holders of Notes evidencing not less than 51% of the Note Balance of the Controlling Class. 

 

 17 

 (c) Promptly after the execution of any amendment to this Agreement, the Seller shall
furnish written notification of the substance of such amendment to the Owner Trustee, the Indenture Trustee and the Rating Agencies. 

SECTION 6.2 Termination. The respective obligations and responsibilities of the Seller and the Purchaser created hereby shall
terminate, except for the indemnity obligations of the Seller as provided herein, upon the termination of the Issuer as provided in the Trust Agreement. 

SECTION 6.3 Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT
REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 

SECTION 6.4 Notices. All demands, notices and communications hereunder shall be in writing and shall be deemed to have been duly
given if personally delivered at or sent by telecopier, overnight courier or mailed by registered mail, return receipt requested, in the case of (i) the Purchaser, to CarMax Auto Funding LLC, 12800 Tuckahoe Creek Parkway, Suite 400, Richmond,
Virginia 23238, Attention: Treasurer, and (ii) the Seller, to CarMax Business Services, LLC, 12800 Tuckahoe Creek Parkway, Richmond, Virginia 23238, Attention: Treasury Department; or, as to either of such Persons, at such other address as
shall be designated by such Person in a written notice to the other Person. 
 SECTION 6.5 Severability of Provisions. If
any one or more of the covenants, agreements, provisions or terms of this Agreement shall for any reason whatsoever be held invalid, then such covenants, agreements, provisions or terms shall be deemed severable from the remaining covenants,
agreements, provisions and terms of this Agreement and shall in no way affect the validity or enforceability of the other covenants, agreements, provisions and terms of this Agreement or any amendment or supplement hereto. 

SECTION 6.6 Further Assurances. The Seller and the Purchaser agree to do and perform, from time to time, any and all acts and to
execute any and all further instruments required or reasonably requested by the other party hereto or by the Issuer or the Indenture Trustee more fully to effect the purposes of this Agreement, including the execution of any financing statements,
amendments, continuation statements or releases relating to the Receivables for filing under the provisions of the UCC or other law of any applicable jurisdiction. 

SECTION 6.7 No Waiver; Cumulative Remedies. No failure to exercise and no delay in exercising, on the part of the Purchaser, the
Issuer or the Seller, any right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or
the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exhaustive of any rights, remedies, powers and privileges provided by law. 

 

 18 

 SECTION 6.8 Counterparts. This Agreement may be executed in two or more counterparts
(and by different parties on separate counterparts), each of which shall be an original, but all of which together shall constitute one and the same instrument. 

SECTION 6.9 Third-Party Beneficiaries. This Agreement will inure to the benefit of and be binding upon the parties hereto, the
Issuer and the Indenture Trustee for the benefit of the Noteholders, who shall be considered to be third-party beneficiaries hereof. Except as otherwise provided in this Agreement, no other Person will have any right or obligation hereunder.

 SECTION 6.10 Headings and Table of Contents. The Table of Contents and headings herein are for purposes of reference
only and shall not otherwise affect the meaning or interpretation of any provision hereof. 
 SECTION 6.11 Representations,
Warranties and Agreements to Survive. The respective agreements, representations, warranties and other statements by the Seller and by the Purchaser set forth in or made pursuant to this Agreement shall remain in full force and effect and will
survive the closing hereunder of the transfers and assignments by the Seller to the Purchaser and by the Purchaser to the Issuer and shall inure to the benefit of the Purchaser, the Trustees and the Noteholders. 

SECTION 6.12 No Proceedings. The Seller covenants and agrees that so long as this Agreement is in effect, and for one year plus
one day following its termination, it will not file any involuntary petition or otherwise institute, or cooperate with or encourage others to institute, any bankruptcy, reorganization arrangement, insolvency or liquidation proceeding or other
proceedings under any federal or State bankruptcy law or similar law against the Issuer or the Owner Trustee. 
 SECTION 6.13
Accountant’s Letters. 
 (a) The Seller shall cause a firm of independent certified public accountants (who may also
render other services to the Seller) to perform certain procedures regarding the characteristics of the Receivables described in the Receivables Schedule and to compare those characteristics to the information with respect to the Receivables
contained in the Prospectus. The Seller shall cooperate with the Purchaser and such accountants in making available all information and taking all steps reasonably necessary to permit such accountants to complete such procedures and to deliver the
letters required of them under the Underwriting Agreement. 
 (b) The Seller shall cause a firm of independent certified public
accountants (who may also render other services to the Seller) to deliver to the Purchaser a letter dated June 30, 2010 in the form previously agreed to by the Seller and the Purchaser, with respect to the financial and statistical information
contained in the Prospectus under the caption “CarMax—Delinquency, Credit Loss and Recovery Information” and with respect to such other information as may be agreed in the forms of such letters. 

 

 19 

 SECTION 6.14 Obligations of Purchaser. The obligations of the Purchaser under this
Agreement shall not be affected by reason of any invalidity, illegality or irregularity of any Receivable. 
 [SIGNATURE PAGE
FOLLOWS] 
  

 20 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by
their respective officers as of the day and year first above written. 
  

			
	 CARMAX BUSINESS SERVICES, LLC,
as Seller

		
	By:	 	 /s/ Kim D. Orcutt

	Name:	 	Kim D. Orcutt
	Title:	 	Vice President
	
	 CARMAX AUTO FUNDING LLC,
as Purchaser

		
	By:	 	 /s/ Thomas W. Reedy

	Name:	 	Thomas W. Reedy
	Title:	 	Treasurer

  

 S-1 

Receivables Purchase AgreementRegistration Rights Agreement

 Exhibit 10.12 

EXECUTION COPY 
  

 
  

REGISTRATION RIGHTS AGREEMENT 

among 
 Toys
“R” Us Holdings, Inc. 
 Funds managed by Bain Capital Partners, LLC or its Affiliates, 

Toybox Holdings LLC, 

Vornado Truck LLC and 

certain other Persons 

Dated as of July 21, 2005 
  

 
  

 TABLE OF CONTENTS 

 

			
	 	  	Page
		
	DEMAND REGISTRATIONS	  	2
		
	 1.1    Requests for Registration
	  	2
	 1.2    Demand Notice
	  	2
	 1.3    Demand Registration Expenses
	  	2
	 1.4    Short-Form Registrations
	  	2
	 1.5    Priority on Demand Registrations
	  	3
	 1.6    Restrictions on Demand Registrations
	  	3
	 1.7    Selection of Underwriters
	  	3
	 1.8    Other Registration Rights
	  	3
		
	PIGGYBACK REGISTRATIONS	  	4
		
	 2.1    Right to Piggyback
	  	4
	 2.2    Piggyback Expenses
	  	4
	 2.3    Priority on Primary Registrations
	  	4
	 2.4    Priority on Secondary Registrations
	  	4
		
	REGISTRATION GENERALLY	  	5
		
	 3.1    Registration Procedures
	  	5
	 3.2    Registration Expenses
	  	9
	 3.3    Participation in Underwritten Offerings
	  	10
	 3.4    Holdback Agreements
	  	10
	 3.4.1    Securityholder Holdback
	  	10
	 3.4.2    Company Holdback
	  	10
	 3.5    Current Public Information
	  	11
		
	INDEMNIFICATION	  	11
		
	 4.1    Indemnification by the Company
	  	11
	 4.2    Indemnification by Holders of Registrable Securities
	  	12
	 4.3    Procedure
	  	12
	 4.4    Entry of Judgment; Settlement
	  	13
	 4.5    Contribution
	  	13
	 4.6    Other Rights
	  	14
		
	DEFINITIONS	  	14
		
	MISCELLANEOUS	  	17
		
	 6.1    No Inconsistent Agreements; Foreign Registration
	  	17
	 6.2    Adjustments Affecting Registrable Securities
	  	17
	 6.3    Remedies
	  	18
	 6.4    Amendment and Waiver
	  	18

  

 i 

			
	 6.5      Successors and Assigns; Transferees
	  	18
	 6.6      Severability
	  	19
	 6.7      Counterparts
	  	19
	 6.8      Descriptive Headings
	  	19
	 6.9      Notices
	  	20
	 6.10    Delivery by Facsimile
	  	21
	 6.11    Governing Law
	  	21

  

 ii 

 REGISTRATION RIGHTS AGREEMENT 

This Registration Rights Agreement (this “Agreement”) is made as of July 21, 2005 (the “Effective
Date”) by and among: 
  

	(i)	Toys “R” Us Holdings, Inc., a Delaware corporation (together with its successors and permitted assigns, the “Company”);

  

	(ii)	Funds managed by Bain Capital Partners, LLC or its Affiliates that are listed on the signature pages hereto (together with their respective Affiliates,
“Bain”); 

  

	(iii)	Toybox Holdings LLC, a Delaware limited liability company (together with its Affiliates, “KKR.”); 

 

	(iv)	Vornado Truck LLC, a Delaware limited liability company (together with its Affiliates, “Vornado” and together with Bain and KKR, the
“Sponsors”); 

  

	(v)	each Person executing this Agreement and listed as an Other Investor on the signature pages hereto (collectively, the “Other Investors” and together
with the Sponsors, the “Investors”); and 

  

	(vi)	such other Persons, if any, that from time to time become parties hereto pursuant to Section 6.5 hereof (collectively, together with the Investors, the
“Stockholders”). 

 RECITALS 

1. The Company, as of the date hereof, is authorized by its Certificate of Incorporation to issue capital stock consisting of 495,000,000
shares of its Class A Common Stock, par value $0.01 per share (the “Class A Common”), and 55,000,000 shares of its Class L Common Stock, par value $0.01 per share (the “Class L Common” and together with the
Class A Common, the “Common Stock”). 
 2. As of or after the date hereof, certain managers of the Company
and its Subsidiaries may purchase shares of Common Stock, or receive options exercisable for shares of Common Stock, pursuant to the Company’s 2005 Management Equity Plan, as amended from time to time according to its terms (the
“Management Equity Plan”). With respect to any Common Stock purchased under the Management Equity Plan, or any Common Stock issued upon exercise of any options granted under the Management Equity Plan, the holders thereof (and their
permitted transferees) (collectively, the “Management Stockholders”) will be subject to the terms of the Management Stockholders Addendum attached to the Management Equity Plan (the “Management Stockholders
Addendum”). 
 3. The parties hereto desire for the Company to provide the registration rights set out in this
Agreement. Unless otherwise noted in this Agreement, capitalized terms used herein shall have the meanings set forth in Section 5. 

 AGREEMENT 

NOW, THEREFORE, the parties to this Agreement hereby agree as follows: 

 

	1.	DEMAND REGISTRATIONS. 

1.1 Requests for Registration. At any time prior to the Initial Public Offering, a Sponsor Majority may initiate the registration
of Company securities in the Initial Public Offering; provided that during the five-year period commencing on the Effective Date, such initiation shall require Unanimous Sponsor Approval. Subject to the other provisions of Section 1,
(a) during the first two (2) years after the Initial Public Offering, a Sponsor Majority may initiate an unlimited number of registrations of all or part of their Registrable Securities on Form S-I or any similar or successor long-form
registration (“Long-Form Registrations”) and, if available, an unlimited number of registrations of all or part of their Registrable Securities on Form S-2 or S-3 or any similar or successor short-form registration
(“Short-Form. Registrations”), and (b) from and after the second anniversary of the Initial Public Offering, each Sponsor may (on behalf of itself and any Affiliate of it included in the term Sponsor) initiate up to three
(3) Long-Form Registrations and, if available, an unlimited number of Short-Form Registrations; provided in each case that the aggregate gross offering price of the Registrable Securities requested to be registered in any Demand
Registration must equal at least $50,000,000 in the case of any Long Form Registration and at least $20,000,000 in the case of any Short Form Registration; provided, further, that a Demand Registration shall not count as one of the
Sponsor’s number of permitted Long-Form Registrations specified above unless the Sponsor initiating such registration and its Affiliates are able to sell pursuant to such registration at least 80% of the total number of Registrable Securities
they requested to be included in such registration. 
 1.2 Demand Notice. All requests for Demand Registrations shall be
made by giving written notice to the Company (a “Demand Notice”). Each Demand Notice shall specify the approximate number of Registrable Securities requested to be registered. Within ten days after receipt of any such Demand Notice,
the Company will give written notice of such requested registration to all other holders of Registrable Securities and, subject to Section 1.5, will include in such registration (and in all related registrations and qualifications under blue
sky laws or in compliance with other registration requirements and in any related underwriting) all Registrable Securities with respect to which the Company has received written requests for inclusion therein within 15 days after the delivery of the
Company’s notice. 
 1.3 Demand Registration Expenses. The Company will pay all Registration Expenses in connection
with any registration initiated as a Demand Registration, whether or not it has become effective, and whether or not such registration has counted as one of the permitted number of Long-Form Registrations. 

1.4 Short-Form Registrations. Demand Registrations will be Short-Form Registrations whenever the Company is permitted to use any
applicable short-form (unless the managing underwriter(s) of such offering requests the Company to use a Long-Form Registration in order to sell all of the Registrable Securities requested to be sold). After the Company has

  

 2 

 
become subject to the reporting requirements of the Securities Exchange Act, the Company will use its reasonable efforts to make Short-Form Registrations available for the sale of Registrable
Securities. A Sponsor Majority may, in connection with any Demand Registration requested by such holders that is a Short-Form Registration, require the Company to file such Short-Form Registration with the Securities and Exchange Commission in
accordance with and pursuant to Rule 415 under the Securities Act (or any successor rule then in effect) (a “Shelf Registration”). 

1.5 Priority on Demand Registrations. The Company shall not include in any Demand Registration any securities which are not
Registrable Securities without the prior written consent of the holders of a majority of the Registrable Securities included in such registration. If a Demand Registration is an underwritten offering and the managing underwriter(s) advises the
Company in writing that in its opinion the number of Registrable Securities and, if permitted hereunder, other securities requested to be included in such offering exceeds the number of Registrable Securities and other securities, if any, which can
be sold therein without adversely affecting the marketability of the offering, then the Company shall include in such registration, prior to the inclusion of any securities that are not Registrable Securities, the number of Registrable Securities
requested to be included in such offering that, in the opinion of such underwriter(s), can be sold without adversely affecting the marketability of the offering, pro rata among the respective holders thereof on the basis of the number of Registrable
Securities owned by each such holder, and only then securities that are not Registrable Securities if the managing underwriter(s) has advised that such securities may be included. 

1.6 Restrictions on Demand Registrations. The Company will not be obligated to effect any Demand Registration within 90 days after
the closing of a Public Offering (other than on Form S-4 or Form S-8 or any successor or similar form, but including the closing of an underwritten distribution pursuant to a Shelf Registration). The Company may postpone for up to 30 days (from the
date of the request) the filing or the effectiveness of a registration statement for a Demand Registration if and so long as the Company determines that such Demand Registration would reasonably be expected to have an adverse effect on any proposal
or plan by the Company or any of the Subsidiaries to engage in any acquisition of assets (other than in the ordinary course of business) or any merger, consolidation, tender offer, registration or issuance of securities, financing or other material
transaction; provided, however, that in such event, the Company will pay all Registration Expenses in connection with such registration. The Company may not postpone a Demand Registration more than two (2) times in any
twelve-month period. 
 1.7 Selection of Underwriters. The Sponsor(s) holding the majority of the Registrable Securities
included in a Demand Registration will have the right to select the underwriter or underwriters to administer the offering, provided that such selection will be subject to the approval of the board of directors of the Company (the
“Board”), which approval will not be unreasonably withheld. 
 1.8 Other Registration Rights. The
Company represents and warrants that it is not a party to, or otherwise subject to, any other agreement granting registration rights to any other Person with respect to any securities of the Company, other than this Agreement and the Management
Stockholders Addendum. Except as provided in this Agreement, the Company shall not grant to any Persons the right to request the Company to register any equity securities of the Company, or any securities convertible or exchangeable into or
exercisable for such securities, 
  

 3 

 
without the Requisite Sponsor Approval approving the issuance of such securities; provided that without such approval, subject to Section 6.1, (a) the Company may grant rights to
other Persons to participate in Demand Registrations and Piggyback Registrations so long as such rights are subordinate to the rights of the holders of Registrable Securities with respect to such Demand Registrations and Piggyback Registrations; and
(b) the Company may grant rights to other Persons to request registrations so long as the holders of Registrable Securities are entitled to participate in any such registrations with such Persons pro rata on the basis of the number of shares of
Common Stock owned by each such holder. 
  

	2.	PIGGYBACK REGISTRATIONS. 

2.1 Right to Piggyback. Whenever the Company proposes to register any of its equity securities under the Securities Act (other than
(a) in the Initial Public Offering (unless otherwise determined by the Requisite Sponsor Approval initiating such offering), (b) pursuant to a Demand Registration or (c) in connection with registration on Form S-4 or Form S-8 or any
successor or similar form) and the registration form to be used may be used for the registration of Registrable Securities (a “Piggyback Registration”), the Company will give prompt written notice to all holders of Registrable
Securities of its intention to effect such a registration and, subject to Sections 2.3 and 2.4 below, will include in such registration all Registrable Securities with respect to which the Company has received written requests for inclusion therein
within 15 days after the delivery of the Company’s notice. Each such Company notice shall specify the approximate number of Company equity securities to be registered and the anticipated per share price range for such offering. 

2.2 Piggyback Expenses. The Registration Expenses of the holders of Registrable Securities will be paid by the Company in all
Piggyback Registrations, whether or not any such registration becomes effective. 
 2.3 Priority on Primary
Registrations. If a Piggyback Registration is an underwritten primary registration on behalf of the Company and the managing underwriter(s) advises the Company in writing (with a copy to each party hereto requesting registration of Registrable
Securities) that in its opinion the number of securities requested to be included in such registration exceeds the number which can be sold in such offering without adversely affecting the marketability of such offering, the Company will include in
such registration: (a) first, the securities the Company proposes to sell, (b) second, the Registrable Securities requested to be included in such registration, pro rata among the holders of such Registrable Securities on the basis of the
number of shares owned by each such holder, and (c) third, other securities requested to be included in such registration. 

2.4 Priority on Secondary Registrations. If a Piggyback Registration is an underwritten secondary registration on behalf of
holders of Company securities (other than the holders of Registrable Securities), and the managing underwriter(s) advises the Company in writing that in its opinion the number of securities requested to be included in such registration exceeds the
number which can be sold in such offering without adversely affecting the marketability of the offering, the Company will include in such registration: (a) first, the securities requested to be included therein by the holders requesting
registration, and the 
  

 4 

 Registrable Securities requested to be included in such registration, pro rata among the holders of such
securities and Registrable Securities on the basis of the number of shares owned by each such holder, and (b) second, other such securities requested to be included in such registration. 

 

	3.	REGISTRATION GENERALLY. 

3.1 Registration Procedures. Whenever the holders of Registrable Securities have requested that any Registrable Securities be
registered pursuant to this Agreement, the Company will use its best efforts to effect the registration and the sale of such Registrable Securities in accordance with the intended method of disposition thereof and pursuant thereto the Company will
as expeditiously as reasonably practicable: 
 (a) prepare and (within 60 days after the end of the period within
which requests for inclusion in such registration may be given to the Company) file with the Securities and Exchange Commission a registration statement with respect to such Registrable Securities and thereafter use its best efforts to cause such
registration statement to become effective (provided that before filing a registration statement or prospectus or any amendments or supplements thereto, the Company will furnish to the counsel selected by the Sponsors owning a majority of the
Registrable Securities to be included in any Demand Registration copies of all such documents proposed to be filed, which documents will be subject to review by such counsel and any other counsel selected by a Sponsor not part of the majority
selecting such counsel; provided that any fees and expenses associated with such other counsel shall be borne by such Sponsor); 

(b) prepare and file with the Securities and Exchange Commission such amendments and supplements to such registration
statement and the prospectus used in connection therewith as may be necessary (i) to keep such registration statement effective for a period (A) of not less than 180 days (subject to extension pursuant to Section 3.3(b)) or, if such
registration statement relates to an underwritten offering, such longer period as in the opinion of counsel for the underwriters a prospectus is required by law to be delivered in connection with sales of Registrable Securities by an underwriter or
dealer, (B) of less than 180 days, which period will terminate when all of the securities covered by such registration statement have been disposed of in accordance with the intended methods of disposition by the seller or sellers thereof set
forth in such registration statement (but in any event not before the expiration of any longer period required under the Securities Act), or (C) in the case of a Shelf Registration, ending on the earlier of (I) the date on which all
Registrable Securities have been sold pursuant to the Shelf Registration or have otherwise ceased to be Registrable Securities, (II) the second anniversary of the effective date of such Shelf Registration, (III) such other date determined by the
Sponsor Majority approving such Shelf Registration and (IV) when all such Registrable Securities are freely saleable under Rule 144(k) under the Securities Act, and (ii) to comply with the provisions of the Securities Act with respect to the
disposition of all securities covered by 
  

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such registration statement until such time as all of such securities have been disposed of in accordance with the intended methods of disposition by the seller or sellers thereof set forth in
such registration statement; 
 (c) furnish to each seller of Registrable Securities such number of copies of
such registration statement, each amendment and supplement thereto, the prospectus included in such registration statement (including each preliminary prospectus) and such other documents as such seller may reasonably request in order to facilitate
the disposition of the Registrable Securities owned by such seller; 
 (d) use its best efforts to register or
qualify such Registrable Securities under such other securities or blue sky laws of such jurisdictions as any seller reasonably requests and do any and all other acts and things which may be reasonably necessary or advisable to enable such seller to
consummate the disposition in such jurisdictions of the Registrable Securities owned by such seller (provided that the Company will not be required to (i) qualify generally to do business in any jurisdiction where it would not otherwise be
required to qualify but for this subsection, (ii) subject itself to taxation in respect of doing business in any such jurisdiction or (iii) consent to general service of process in any such jurisdiction); 

(e) promptly notify each seller of such Registrable Securities, at any time when a prospectus relating thereto is required
to be delivered under the Securities Act, upon discovery that, or upon the discovery of the happening of any event as a result of which, the prospectus included in such registration statement contains an untrue statement of a material fact or omits
any fact necessary to make the statements therein not misleading in the light of the circumstances under which they were made, and, at the request of any such seller, the Company will prepare and furnish to such seller a reasonable number of copies
of a supplement or amendment to such prospectus so that, as thereafter delivered to the prospective purchasers of such Registrable Securities, such prospectus will not contain an untrue statement of a material fact or omit to state any fact
necessary to make the statements therein not misleading in the light of the circumstances under which they were made; 

(f) cause all such Registrable Securities to be listed on each securities exchange on which similar securities issued by
the Company are then listed and, if not so listed, to be listed on the NASD automated quotation system and, if listed on the NASD automated quotation system, use its best efforts to secure designation of all such Registrable Securities covered by
such registration statement as a NASDAQ “national market system security” within the meaning of Rule 11Aa2-1 of the Securities and Exchange Commission or, failing that, to secure NASDAQ authorization for such Registrable Securities and,
without limiting the generality of the foregoing, to arrange for at least two market makers to register as such with respect to such Registrable Securities with the NASD; 
  

 6 

 (g) provide a transfer agent and registrar for all such Registrable
Securities not later than the effective date of such registration statement; 
 (h) enter into such customary
agreements (including underwriting agreements in customary form) and take all such other actions as the Sponsors owning a majority of the Registrable Securities to be included in the registration or the underwriters, if any, reasonably request in
order to expedite or facilitate the disposition of such Registrable Securities (which might include effecting a stock split or a combination of shares); 

(i) make available for inspection by any seller of Registrable Securities, any underwriter participating in any
disposition pursuant to such registration statement and any attorney, accountant or other agent retained by any such seller or underwriter, all financial and other records, pertinent corporate documents and properties of the Company, and cause the
Company’s officers, directors, employees and independent accountants to supply all information reasonably requested by any such seller, underwriter, attorney, accountant or agent in connection with such registration statement, and to cooperate
and participate as reasonably requested by any such seller in road show presentations, in the preparation of the registration statement, each amendment and supplement thereto, the prospectus included therein, and other activities as such seller may
reasonably request in order to facilitate the disposition of the Registrable Securities owned by such seller; 

(j) otherwise use its best efforts to comply with all applicable rules and regulations of the Securities and Exchange
Commission, and make available to its security holders, as soon as reasonably practicable, but not later than 18 months after the effective date of the registration statement, an earnings statement covering the period of at least twelve months
beginning with the first day of the Company’s first full calendar quarter after the effective date of the registration statement, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158
thereunder; 
 (k) in the event of the issuance of any stop order suspending the effectiveness of a registration
statement, or of any order suspending or preventing the use of any related prospectus or suspending the qualification of any Securities included in such registration statement for sale in any jurisdiction, the Company will use its reasonable best
efforts promptly to obtain the withdrawal of such order; 
 (l) obtain one or more comfort letters, dated the
effective date of such registration statement (and, if such registration includes an underwritten public offering, dated the date of the closing under the underwriting agreement), signed by the Company’s independent public accountants in the
then-current customary form and covering such matters of the type customarily covered from time to time by comfort letters as the holders of a majority of the Registrable Securities being sold reasonably request; 

 

 7 

 (m) provide a legal opinion of the Company’s outside counsel, dated the
effective date of such registration statement (and, if such registration includes an underwritten public offering, dated the date of the closing under the underwriting agreement), with respect to the registration statement, each amendment and
supplement thereto, the prospectus included therein (including the preliminary prospectus) and such other documents relating thereto in the then-current customary form and covering such matters of the type customarily covered from time to time by
legal opinions of such nature (in a form reasonably acceptable to the holders of a majority of the Registrable Securities included in the registration); 

(n) cooperate with the sellers of Registrable Securities covered by the registration statement and the managing
underwriter or agent, if any, to facilitate the timely preparation and delivery of certificates (not bearing any restrictive legends) representing securities to be sold under the registration statement, and enable such securities to be in such
denominations and registered in such names as the managing underwriter or agent, if any, or such holders may request; 

(o) notify counsel for the sellers of Registrable Securities included in such registration statement and the managing
underwriter or agent, immediately, and confirm the notice in writing (i) when the registration statement, or any post-effective amendment to the registration statement, shall have become effective, or any supplement to the prospectus or any
amendment prospectus shall have been filed, (ii) of the receipt of any comments from the Securities and Exchange Commission, (iii) of any request of the Securities and Exchange Commission to amend the registration statement or amend or
supplement the prospectus or for additional information, and (iv) of the issuance by the Securities and Exchange Commission of any stop order suspending the effectiveness of the registration statement or of any order preventing or suspending
the use of any preliminary prospectus, or of the suspension of the qualification of the registration statement for offering or sale in any jurisdiction, or of the institution or threatening of any proceedings for any of such purposes; 

(p) use its reasonable effort to prevent the issuance of any stop order suspending the effectiveness of the registration
statement or of any order preventing or suspending the use of any preliminary prospectus and, if any such order is issued, to obtain the withdrawal of any such order at the earliest possible moment; 

(q) if requested by the managing underwriter or agent or any holder of Registrable Securities covered by the registration
statement, promptly incorporate in a prospectus supplement or post-effective amendment such information as the managing underwriter or agent or such holder reasonably 

 

 8 

 
requests to be included therein, including, without limitation, with respect to the number of Registrable Securities being sold by such holder to such underwriter or agent, the purchase price
being paid therefor by such underwriter or agent and with respect to any other terms of the underwritten offering of the Registrable Securities to be sold in such offering; and make all required filings of such prospectus supplement or
post-effective amendment as soon as practicable after being notified of the matters incorporated in such prospectus supplement or post-effective amendment; and 

(r) cooperate with each seller of Registrable Securities and each underwriter or agent participating in the disposition of
such Registrable Securities and their respective counsel in connection with any filings required to be made with the National Association of Securities Dealers, Inc. 

The Company may require each seller of Registrable Securities as to which any registration is being effected to furnish the Company such information
relating to the sale or registration of such Securities regarding such seller and the distribution of such securities as the Company may from time to time reasonably request in writing. 

3.2 Registration Expenses. 

(a) All expenses incident to the Company’s performance of or compliance with this Agreement, including, without
limitation, all registration, qualification and filing fees, fees and expenses of compliance with securities or blue sky laws, printing expenses, messenger and delivery expenses, and fees and disbursements of counsel for the Company and all
independent certified public accountants, underwriters (excluding discounts and commissions) and other Persons retained by the Company (all such expenses being herein called “Registration Expenses”), will be paid by the Company in
respect of each Demand Registration and each Piggyback Registration, whether or not it has become effective, including that the Company will pay its internal expenses (including, without limitation, all salaries and expenses of its officers and
employees performing legal or accounting duties), the expense of any annual audit or quarterly review, the expense of any liability insurance and the expenses and fees for listing the securities to be registered on each securities exchange on which
similar securities issued by the Company are then listed or on the NASD automated quotation system. 
 (b) In
connection with each Demand Registration and each Piggyback Registration, whether or not it has become effective, the Company will pay, and reimburse the holders of Registrable Securities covered by such registration for the payment of, the
reasonable fees and disbursements of one counsel chosen by the holders of a majority of the Registrable Securities included in such registration, and such expenses shall be considered Registration Expenses hereunder. 

 

 9 

 3.3 Participation in Underwritten Offerings. 

(a) No Person may participate in any registration hereunder which is underwritten unless such Person (i) agrees to
sell such Person’s securities on the basis provided in any underwriting arrangements approved by the Person or Persons entitled hereunder to approve such arrangements (including, without limitation, pursuant to the terms of any over-allotment
or “green shoe” option requested by the managing underwriter(s), provided that no holder of Registrable Securities will be required to sell more than the number of Registrable Securities that such holder has requested the Company to
include in any registration) and (ii) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements. 

(b) Each Person that is participating in any registration hereunder agrees that, upon receipt of any notice from the
Company of the happening of any event of the kind described in Section 3.1(e) above, such Person will forthwith discontinue the disposition of its Registrable Securities pursuant to the registration statement until such Person’s receipt of
the copies of a supplemented or amended prospectus as contemplated by such Section 3.1(e). In the event the Company shall give any such notice, the applicable time period mentioned in Section 3.1(b) during which a Registration Statement is
to remain effective shall be extended by the number of days during the period from and including the date of the giving of such notice pursuant to this paragraph to and including the date when each seller of a Registrable Security covered by such
registration statement shall have received the copies of the supplemented or amended prospectus contemplated by Section 3.1(e). 

3.4 Holdback Agreements. 

3.4.1. Securityholder Holdback. To the extent not inconsistent with applicable law, each holder of Registrable
Securities shall not effect any public sale or distribution (including sales pursuant to Rule 144) of equity securities of the Company, or any securities, options or rights convertible into or exchangeable or exercisable for such securities, during
(a) with respect to the Initial Public Offering, the seven days prior to and the 180-day period beginning on the effective date of such Initial Public Offering, (b) with respect to any other underwritten Demand Registration or any
underwritten Piggyback Registration in which Registrable Securities are included, the seven days prior to and the 90-day period beginning on the effective date of such registration, and (c) upon notice from the Company of the commencement of an
underwritten distribution in connection with any Shelf Registration, the seven days prior to and the 90-day period beginning on the date of commencement of such distribution, in each case except as part of such underwritten registration, and in each
case unless the underwriters managing the registered public offering otherwise agree. 
 3.4.2. Company
Holdback. The Company shall not effect any public sale or distribution of its equity securities, or any securities convertible into or exchangeable or exercisable for such securities, during (a) with respect to the Initial Public Offering,
the seven days prior to and the 180-day period beginning on the effective date of such Initial 
  

 10 

 
Public Offering, (b) with respect to any other underwritten Demand Registration or any underwritten Piggyback Registration in which Registrable Securities are included, the seven days prior
to and the 90-day period beginning on the effective date of such registration, and (c) upon notice from any holder(s) of Registrable Securities subject to a Shelf Registration that such holder(s) intend to effect an underwritten distribution of
Registrable Securities pursuant to such Shelf Registration (upon receipt of which, the Company will promptly notify all other holders of Registrable Securities of the date of the commencement of such distribution), the seven days prior to and the
90-day period beginning on the date of the commencement of such distribution, in each case except as part of such underwritten registration or pursuant to registrations on Form S-4 or Form 5-8, and in each case unless the underwriters managing the
registered public offering otherwise agree. 
 3.5 Current Public Information. At all times after the Company has filed a
registration statement with the Securities and Exchange Commission pursuant to the requirements of either the Securities Act or the Securities Exchange Act, the Company will use its reasonable efforts to timely file all reports required to be filed
by it under the Securities Act and the Securities Exchange Act and the rules and regulations adopted by the Securities and Exchange Commission thereunder, and will take such further action as any holder or holders of Registrable Securities may
reasonably request, all to the extent required to enable such holders to sell Registrable Securities pursuant to Rule 144 adopted by the Securities and Exchange Commission under the Securities Act (as such rule may be amended from time to time) or
any similar rule or regulation hereafter adopted by the Securities and Exchange Commission. 
  

	4.	INDEMNIFICATION. 

4.1 Indemnification by the Company. The Company agrees to indemnify and hold harmless, to the fullest extent permitted by law, each
holder of Registrable Securities and, as applicable, its officers, directors, trustees, employees, stockholders, holders of beneficial interests, members, and general and limited partners (collectively, such holder’s
“Indemnitees”) and each Person who controls such holder (within the meaning of the Securities Act) against any and all losses, claims, damages, liabilities, joint or several, to which such holder or any such Indemnitee may become
subject under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon (a) any untrue or alleged
untrue statement of material fact contained in any registration statement, prospectus or preliminary prospectus or any amendment thereof or supplement thereto, together with any documents incorporated therein by reference or, (b) any omission
or alleged omission of a material fact required to be stated therein or necessary to make the statements therein not misleading, and the Company will reimburse such holder and each of its Indemnitees for any legal or any other expenses, including
any amounts paid in any settlement effected with the consent of the Company, which consent will not be unreasonably withheld or delayed, incurred by them in connection with investigating or defending any such loss, claim, liability, action or
proceeding; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage, liability (or action or proceeding in respect thereof) or expense arises out of or is based upon an
untrue statement or alleged untrue statement, or omission or alleged omission, made in such registration statement, any such prospectus or preliminary prospectus or any amendment or 

 

 11 

 
supplement thereto, or in any application, in reliance upon, and in conformity with, written information prepared and furnished to the Company by such holder expressly for use therein. In
connection with an underwritten offering, the Company will indemnify such underwriters, their officers and directors and each Person who controls such underwriters (within the meaning of the Securities Act) to the same extent as provided above with
respect to the indemnification of the holders of Registrable Securities. 
 4.2 Indemnification by Holders of Registrable
Securities. In connection with any registration statement in which a holder of Registrable Securities is participating, each such holder will furnish to the Company in writing such information and affidavits as the Company reasonably requests
for use in connection with any such registration statement or prospectus and, to the extent permitted by law, will indemnify and hold harmless the Company and its Indemnitees against any losses, claims, damages, liabilities, joint or several, to
which the Company or any such Indemnitee may become subject under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of
or are based upon (a) any untrue or alleged untrue statement of material fact contained in the registration statement, prospectus or preliminary prospectus or any amendment thereof or supplement thereto or in any application, together with any
documents incorporated therein by reference or (b) any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein not misleading, but only to the extent that such untrue statement
(or alleged untrue statement) or omission (or alleged omission) is made in such registration statement, any such prospectus or preliminary prospectus or any amendment or supplement thereto, or in any application, in reliance upon and in conformity
with written information prepared and furnished to the Company by such holder expressly for use therein, and such holder will reimburse the Company and each such Indemnitee for any legal or any other expenses including any amounts paid in any
settlement effected with the consent of such holder, which consent will not be unreasonably withheld or delayed, incurred by them in connection with investigating or defending any such loss, claim, liability, action or proceeding; provided,
however, that the obligation to indemnify will be individual (and not joint and several) to each holder and will be limited to the net amount of proceeds received by such holder from the sale of Registrable Securities pursuant to such
registration statement, less any other amounts paid by such holder in respect of such untrue statement, alleged untrue statement, omission or alleged omission. 

4.3 Procedure. Any Person entitled to indemnification hereunder will (a) give prompt written notice to the indemnifying party
of any claim with respect to which it seeks indemnification (provided, however, that the failure of any indemnified party to give such notice shall not relieve the indemnifying party of its obligations hereunder, except to the extent
that the indemnifying party is actually prejudiced by such failure to give such notice), and (b) unless in such indemnified party’s reasonable judgment a conflict of interest between such indemnified and indemnifying parties may exist with
respect to such claim, permit such indemnifying party to assume the defense of such claim with counsel reasonably satisfactory to the indemnified party. If such defense is assumed, the indemnifying party will not be subject to any liability for any
settlement made by the indemnified party without its consent (but such consent will not be unreasonably withheld). An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim will not be obligated to pay the fees
and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party a conflict of interest may exist between such indemnified party and
any other of such indemnified parties with respect to such claim. 
  

 12 

 4.4 Entry of Judgment; Settlement. The indemnifying party shall not, except with the
approval of each indemnified party, consent to entry of any judgment or enter into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to each indemnified party of a release from all
liability in respect to such claim or litigation without any payment or consideration provided by such indemnified party. 
 4.5
Contribution. If the indemnification provided for in this Section 4 is, other than expressly pursuant to its terms, unavailable to or is insufficient to hold harmless an indemnified party under the provisions above in respect of any
losses, claims, damages or liabilities referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such losses, claims, damages or liabilities (a) in such proportion
as is appropriate to reflect the relative benefits received by the Company on the one hand and the sellers of Registrable Securities and any other sellers participating in the registration statement on the other hand from the sale of Registrable
Securities pursuant to the registered offering of securities as to which indemnity is sought or (b) if the allocation provided by clause (a) above is not permitted by applicable law, in such proportion as is appropriate to reflect the
relative benefits referred to in clause (a) above but also the relative fault of the Company on the one hand and of the sellers of Registrable Securities and any other sellers participating in the registration statement on the other hand in
connection with the statement or omissions which resulted in such losses, claims, damages or liabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the sellers of
Registrable Securities and any other sellers participating in the registration statement on the other hand shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) to the Company bear to
the total net proceeds from the offering (before deducting expenses) to the sellers of Registrable Securities and any other sellers participating in the registration statement. The relative fault of the Company on the one hand and of the sellers of
Registrable Securities and any other sellers participating in the registration statement on the other hand shall be determined by reference to, among other things, whether the untrue or alleged omission to state a material fact relates to
information supplied by the Company or by the sellers of Registrable Securities or other sellers participating in the registration statement and the parties’ relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission. 
 The Company and the sellers of Registrable Securities agree that it would not be just and equitable if
contribution pursuant to this Section 4 were determined by pro rata allocation (even if the sellers of Registrable Securities were treated as one entity for such purpose) or by any other method of allocation which does not take account of the
equitable considerations referred to in the immediately preceding paragraph. The amount paid or payable by an indemnified party as a result of the losses, claims, damages and liabilities referred to in the immediately preceding paragraph shall be
deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this
Section 4, no seller of Registrable Securities shall be required to contribute any amount in excess of the net proceeds received by such Seller from the sale of Registrable Securities covered by the registration

  

 13 

 
statement filed pursuant hereto, less any other amounts paid by such holder in respect of such untrue statement, alleged untrue statement, omission or alleged omission. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. 

4.6 Other Rights. The indemnification and contribution by any such party provided for under this Agreement shall be in addition to
any other rights to indemnification or contribution which any indemnified party may have pursuant to law or contract and will remain in full force and effect regardless of any investigation made or omitted by or on behalf of the indemnified party or
any officer, director or controlling Person of such indemnified party and will survive the transfer of securities. 
  

	5.	DEFINITIONS. 

“Affiliate” means, with respect to any Person, (i) any other Person which directly or indirectly through one or more
intermediaries controls, or is controlled by, or is under common control with, such Person (for the purposes of this definition, “control” (including, with correlative meanings, the terms “controlling,” “controlled by”
and “under common control with”), as used with respect to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through the ownership
of voting securities, by agreement or otherwise); provided, however, that neither the Company nor any of its subsidiaries shall be deemed an Affiliate of any of the Stockholders (and vice versa) and none of the Stockholders shall be
deemed Affiliates of each other solely as a result of their relationship with respect to the Company, (ii) if such Person is an investment fund, any other investment fund the primary investment advisor to which is the primary investment advisor
to such Person or an Affiliate thereof and (iii) if such Person is a natural Person, any Family Member of such natural Person. 

“Agreement” shall have the meaning set forth in the Preface. 

“Amendment” shall have the meaning set forth in Section 6.4. 

“Bain” shall have the meaning set forth in the Preface. 

“Board” shall have the meaning set forth in Section 1.7. 

“Class A Common” shall have the meaning set forth in the Recitals. 

“Class L Common” shall have the meaning set forth in the Recitals. 

“Common Stock” shall have the meaning set forth in the Recitals. 

“Company” shall have the meaning set forth in the Preface. 

“Demand Notice” shall have the meaning set forth in Section 1.2. 

“Demand Registrations” means Long-Form Registrations and Short-Form Registrations requested pursuant to
Section 1.1. 
  

 14 

 “Effective Date” shall have the meaning set forth in the Preface.

 “Family Member” means, with respect to any natural Person, such Person’s spouse and descendants
(whether or not adopted) and any trust, family limited partnership or limited liability company that is and remains at all times solely for the benefit of such Person’s spouse and/or descendants. 

“Holdco” shall have the meaning set forth in Section 6.2. 

“Indemnitees” shall have the meaning set forth in Section 4.1. 

“Initial Public Offering” means the initial firm underwritten Public Offering registered under the Securities Act or
equivalent foreign securities laws (other than a registration statement on Form S-4 or S-8 (or any similar or successor form)). 

“Initial Shares” means, with respect to any Sponsor, the number of shares of Stock owned by such Sponsor on the
Effective Date, as set forth opposite such Sponsor’s name on Schedule I attached hereto; which number of shares of Stock shall be proportionally adjusted (and Schedule I shall be modified accordingly) for any stock split,
combinations, stock dividend or other recapitalization affecting such Stock. 
 “Investors” shall have the
meaning set forth in the Preface. 
 “KKR” shall have the meaning set forth in the Preface. 

“Long-Form Registrations” shall have the meaning set forth in Section 1.1. 

“Majority Sponsor Approval” means the written approval of the Sponsor Majority. 

“Management Equity Plan” shall have the meaning set forth in the Recitals. 

“Management Stockholders” shall have the meaning set forth in the Recitals. 

“Management Stockholders Addendum” shall have the meaning set forth in the Recitals. 

“Managers” shall have the meaning set forth in the Preface. 

“Other Investors” shall have the meaning set forth in the Preface. 

“Person” means an individual, a partnership, a joint venture, a corporation, a limited liability company, a trust, an
unincorporated organization and a government or any department or agency thereof. 
 “Permitted Transferee”
shall mean, with respect to any Stockholder, an Affiliate of such Stockholder (other than any “portfolio company” of such Stockholder or any entity controlled by any portfolio company of such Stockholder). 

“Piggyback Registration” shall have the meaning set forth in Section 2.1. 

 

 15 

 “Public Offering” means a public offering and sale of Common Stock pursuant
to an effective registration statement under the Securities Act or equivalent foreign securities laws. 
 “Registrable
Securities” means (i) any share of Class A Common issued to any Investor (or any Affiliate thereof) as of the Effective Date or thereafter acquired, (ii) any common equity securities issued or issuable directly or indirectly
with respect to any of the foregoing securities referred to in clause (i) by way of stock dividend or stock split or in connection with a combination of shares, recapitalization, merger, consolidation or other reorganization, and
(iii) with respect to any particular registration hereunder, any securities held by a Management Stockholder that are entitled to participate in such registration pursuant to the terms of the Management Stockholders Addendum. As to any
particular shares constituting Registrable Securities, such shares will cease to be Registrable Securities when they have been (x) effectively registered under the Securities Act and disposed of in accordance with the registration statement
covering them, or (y) sold to the public pursuant to Rule 144 under the Securities Act or sold in a block sale to a financial institution in the ordinary course of its trading business. For purposes of this Agreement, a Person will be deemed to
be a holder of Registrable Securities whenever such Person has the right to acquire directly or indirectly such Registrable Securities (upon conversion or exercise in connection with a transfer of securities or otherwise, but disregarding any
restrictions or limitations upon the exercise of such right), whether or not such acquisition has actually been effected. 

“Registration Expenses” shall have the meaning set forth in Section 3.2. 

“Requisite Sponsor Approval” means (a) with respect to any action that requires or would require Unanimous Sponsor
Approval under the terms of this Agreement or Section 2.6 of the Stockholders Agreement, the approval of Sponsors constituting both Unanimous Sponsor Approval and Majority Sponsor Approval; and (b) with respect to any action that requires
or would require Majority Sponsor Approval under the terms of this Agreement or Section 2.6 or 2.7 of the Stockholders Agreement, Majority Sponsor Approval. 

“Securities Act” means the Securities Act of 1933, as amended, or any successor federal law then in force. 

“Securities and Exchange Commission” includes any governmental body or agency succeeding to the functions thereof.

 “Securities Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor federal
law then in force. 
 “Shelf Registration” shall have the meaning set forth in Section 1.4. 

“Short-Form Registrations” shall have the meaning set forth in Section 1.1. 

“Sponsor Majority” means (a) if each of the three (3) Sponsors continues to own at least 30% of its Initial
Shares, then at least two (2) of such three (3) Sponsors; (b) if only two (2) of the Sponsors continue to own at least 30% of their Initial Shares, then both of such Sponsors; (c) if only one (1) Sponsor continues to
own at least 30% of its Initial Shares, then such Sponsor; and (d) otherwise, the holders of a majority of the shares of Stock then held by the Sponsors. 
  

 16 

 “Sponsors” shall have the meaning set forth in the Preface. 

“Stock” shall mean the capital stock of the Company. For clarification purposes, as of the Effective Date, the Common
Stock constitutes all of the Company’s issued and outstanding capital stock. 
 “Stockholders” shall have
the meaning set forth in the Preface. 
 “Stockholders Agreement” means that certain stockholders agreement,
dated as of the Effective Date, among the Company and the Stockholders, as amended from time to time in accordance with its terms. 

“Transfer” shall mean any sale, pledge, assignment, encumbrance or other transfer or disposition of any shares of Stock
to any other Person, whether directly, indirectly, voluntarily, involuntarily, by operation of law, pursuant to judicial process or otherwise; provided that the sale, pledge, assignment, encumbrance or other transfer or disposition of the common
shares of beneficial interest, par value $0.04, of Vornado Realty Trust, a Maryland real estate investment trust (or its successors), will not be deemed a Transfer. 

“Unanimous Sponsor Approval” means the written approval of each of the Sponsors that continues to own at least 50% of
its Initial Shares; provided that if none of the Sponsors continues to own at least 50% of its Initial Shares, Unanimous Sponsor Approval shall mean Majority Sponsor Approval. 

“Vornado” shall have the meaning set forth in the Preface. 

 

	6.	MISCELLANEOUS. 

6.1 No Inconsistent Agreements; Foreign Registration. The Company will not hereafter enter into any agreement with respect to its
securities which is inconsistent with or violates the rights granted to the holders of Registrable Securities in this Agreement. In the event the Board and the Requisite Sponsor Approval approve a public offering or a sale of the Common Stock of the
Company (or other securities representing, or exercisable for or convertible into, shares of common stock) pursuant to the securities laws of a country other than the United States of America, the Board shall have the power to amend this Agreement
in such manner as it shall deem reasonably necessary to ensure that the provisions of this Agreement will apply in as close to the same manner as possible under such foreign securities laws, and to otherwise preserve and give effect to the rights of
the parties hereto. 
 6.2 Adjustments Affecting Registrable Securities. The Company will not take any action, or permit
any change to occur, with respect to its securities which would materially and adversely affect the ability of the holders of Registrable Securities to include such Registrable Securities in a registration undertaken pursuant to this Agreement
(including, without limitation, effecting a stock split or a combination of shares). If the holders of Registrable Securities create a new holding company (“Holdco”), the result of which is that the stockholders of the Company
immediately before such event become all the stockholders of Holdco, then in each instance the provisions of this Agreement will, in addition to applying to the Company, also apply to Holdco in the same manner as if Holdco were substituted for the
Company throughout this Agreement. 
  

 17 

 6.3 Remedies. The parties hereto agree and acknowledge that money damages may not be
an adequate remedy for any breach of the provisions of this Agreement and that, in addition to any other rights and remedies at law or in equity existing in its favor, any party shall be entitled to specific performance and/or other injunctive
relief from any court of law or equity of competent jurisdiction (without posting any bond or other security) in order to enforce or prevent violation of the provisions of this Agreement. 

6.4 Amendment and Waiver. Except as otherwise provided herein, this Agreement may be amended, modified, extended or terminated,
and the provisions hereof may be waived, only by an agreement in writing signed by the Company and each Sponsor that continues to own at least 30% of its Initial Shares; provided, however, that the Sponsor Majority may amend or modify
this Agreement in connection with equity transactions that do not require Unanimous Sponsor Approval under the Stockholders Agreement; and provided further, that the admission of new parties pursuant to the terms of Section 6.5 shall not
constitute an amendment of this Agreement for purposes of this Section 6.4. 
 Notwithstanding the foregoing, if any amendment,
modification, extension, termination of waiver (an “Amendment”) would treat any holder or group of holders of Registrable Securities that is a party hereto in a manner different from, and materially adverse relative to, the Sponsors
voting in favor of such Amendment, then such Amendment will require the consent of the holder or holders of a majority of the Registrable Securities of such group adversely treated. 

Each such Amendment shall be binding upon each party hereto and each Stockholder subject hereto. In addition, each party hereto and each Stockholder
subject hereto may waive any right hereunder, as to itself, by an instrument in writing signed by such party or Stockholder. The failure of any party to enforce any provisions of this Agreement shall in no way be construed as a waiver of such
provisions and shall not affect the right of such party thereafter to enforce each and every provision of this Agreement in accordance with its terms. To the extent the Amendment of any Section of this Agreement would require a specific consent
pursuant to this Section 6.4, any Amendment to definitions to the extent used in such Section shall also require the specified consent. 

6.5 Successors and Assigns; Transferees. This Agreement shall be binding upon and inure to the benefit of and be enforceable by
the parties hereto and their respective successors and assigns. Registrable Securities shall continue to be Registrable Securities after any Transfer (except if such securities were effectively registered under the Securities Act and disposed of in
accordance with the registration statement covering them or sold to the public pursuant to Rule 144 under the Securities Act). Any transferee receiving shares of Registrable Securities in a Transfer effected in compliance with the terms of the
Stockholders Agreement shall become a Stockholder, party to this Agreement and subject to the terms and conditions of, and be entitled to enforce, this Agreement to the same extent, and in the same capacity, as the Person that Transfers such shares
to such transferee; provided that only a Permitted Transferee of a Sponsor will be deemed to be a Sponsor for purposes of this Agreement; and provided further that only a Permitted Transferee of an Investor will be deemed to be an
Investor for purposes of this Agreement. For the avoidance of doubt, any transferee receiving Registrable Securities in a Transfer that is not a Sponsor or a Permitted Transferee of a Sponsor or its Affiliates will become a party to this Agreement
without the benefit of the right to trigger Demand 
  

 18 

 
Registrations or other rights afforded to the Sponsors hereunder. Prior to the Transfer of any Registrable Securities to any transferee, and as a condition thereto, each Stockholder effecting
such Transfer shall (a) cause such transferee to deliver to the Company and each of the Investors its written agreement, in form and substance reasonably satisfactory to the Company, to be bound by the terms and conditions of this Agreement to
the extent described in the preceding sentence and (b) if such Transfer is to a Permitted Transferee, remain directly liable for the performance by such Permitted Transferee of all obligations of such transferee under this Agreement.

 6.6 Severability. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability
shall not affect any other provision or the effectiveness or validity of any provision in any other jurisdiction, and this Agreement shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable
provision had never been contained herein. 
 6.7 Counterparts. This Agreement may be executed in separate counterparts,
each of which shall be an original and all of which taken together shall constitute one and the same Agreement. 
 6.8
Descriptive Headings. The descriptive headings of this Agreement are inserted for convenience only and do not constitute a part of this Agreement. 
  

 19 

 6.9 Notices. Any and all notices or other communications or deliveries required or
permitted to be provided hereunder shall be in writing and shall be deemed given, delivered and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile telephone
number specified in this Section 6.9 prior to 5:00 p.m. (New York time) on a Business Day, (ii) the Business Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile telephone number
specified in this Agreement later than 5:00 p.m. (New York time) on any Business Day and earlier than 11:59 p.m. (New York time) on the day preceding the next Business Day, (iii) one (1) Business Day after when sent, if sent by nationally
recognized overnight courier service (charges prepaid), or (iv) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as follows: 

 

					
	 If to the Company:

		
		    	Toys “R” Us Holdings, Inc.
		    	c/o Toys “R” Us, Inc.
		    	One Geoffrey Way
		    	Wayne, NJ 07470
		    	Facsimile:	 	(973) 617-4004
		    	Attention:	 	Chief Executive Officer
		    		 	General Counsel
	
	 If to Bain:

		
		    	Bain Capital Partners, LLC
		    	 111 Huntington Ave., 35th Floor

Boston, MA 02199

		    	Facsimile:	 	(617) 516-2010
		    	Attention:	 	 Matthew S. Levin
 Dwight Poler

		    		 	Jordan Hitch
	
	 with copies to:

		
		    	Kirkland & Ellis LLP
		    	200 East Randolph Drive
		    	Chicago, Illinois 60601
		    	Facsimile:	 	(312) 861-2200
		    	Attention:	 	Matthew E. Steinmetz, P.C.
		    		 	Jeffrey W. Richards
	
	 If to KKR:

		
		    	Kohlberg Kravis Roberts & Co.
		    	2800 Sand Hill Road, Suite 200
		    	Menlo Park, CA 94025
		    	Facsimile:	 	(650) 233-6553
		    	Attention:	 	Michael M. Calbert
	
	 with a copy to:

		
		    	Latham & Watkins LLP
		    	135 Commonwealth Drive
		    	Menlo Park, CA 94025
		    	Facsimile:	 	(650) 463-2600
		    	Attention:	 	Peter F. Kerman

  

 20 

					
	 If to Vornado:

		
		    	Vornado Realty Trust
		    	888 Seventh Avenue
		    	New York, New York 10019
		    	Facsimile:	 	(212) 894-7996
		    	Attention:	 	Wendy Silverstein
		    		 	Alan Rice
	 with a copy to:

		
		    	Sullivan & Cromwell LLP
		    	125 Broad Street
		    	New York, NY 10004-2498
		    	Facsimile:	 	(212) 558-3588
		    	Attention:	 	Alan J. Sinsheimer
		    		 	Eric M. Krautheimer

 6.10 Delivery by
Facsimile. This Agreement and any signed agreement or instrument entered into in connection herewith or contemplated hereby, and any amendments hereto or thereto, to the extent signed and delivered by means of a facsimile machine, shall be
treated in all manner and respects as an original agreement or instrument and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person. At the request of any party hereto or to
any such agreement or instrument, each other party hereto or thereto shall re-execute original forms thereof and deliver them to all other parties. No party hereto or to any such agreement or instrument shall raise the use of a facsimile machine to
deliver a signature or the fact that any signature or agreement or instrument was transmitted or communicated through the use of a facsimile machine as a defense to the formation of a contract and each such party forever waives any such defense.

 6.11 Governing Law. The corporate law of Delaware will govern all issues concerning the relative rights of the Company
and its Stockholders. All other issues concerning this agreement shall be governed by and construed in accordance with the laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the
State of New York or any other jurisdiction) that would cause the application of the law of any jurisdiction other than the State of New York. 

*    *    Signature pages follow    *    *

  

 21 

 IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement on the day,
and year first above written. 
  

			
	COMPANY:
	
	TOYS “R” US HOLDINGS, INC.
		
	By:	 	 /s/ Michael M. Calbert

	Name:	 	 Michael M. Calbert

	Title:	 	  

	
	SPONSORS:
	
	BAIN CAPITAL (TRU) VIII, L.P.
		
	By	 	Bain Capital Partners VIII, L.P.
	Its:	 	General Partner
		
	By:	 	Bain Capital Investors, LLC
	Its:	 	General Partner
		
	By:	 	 /s/ Matthew S. Levin

	Name:	 	 Matthew S. Levin

	Its:	 	  

	
	BAIN CAPITAL (TRU) VIII-E, L.P
		
	By.	 	Bain Capital Partners VIII, L.P.
	Its:	 	General Partner
		
	By.	 	Bain Capital Investors, LLC
	Its:	 	General Partner
		
	By:	 	 /s/ Matthew S. Levin

	Name:	 	 Matthew S. Levin

	Its:	 	  

			
	 BAIN CAPITAL (TRU) VIII

COINVESTMENT, L.P.

		
	By:	 	Bain Capital Investors VIII, L.P.
	Its:	 	General Partner
		
	By:	 	Bain Capital Investors, LLC
	Its:	 	General Partner
		
	By:	 	 /s/ Matthew S. Levin

	Name:	 	 Matthew S. Levin

	Its:	 	  

	
	 BAIN CAPITAL INTEGRAL

INVESTORS, LLC

		
	By:	 	Bain Capital Investors, LLC
	Its:	 	Administrative Member
		
	By:	 	 /s/ Matthew S. Levin

	Name:	 	 Matthew S. Levin

	Its:	 	  

	
	BCIP TCV, LLC
		
	By:	 	Bain Capital Investors, LLC
	Its:	 	Administrative Member
		
	By:	 	 /s/ Matthew S. Levin

	Name:	 	 Matthew S. Levin

	Its:	 	  

	
	TOYBOX HOLDINGS, LLC
		
	By:	 	 /s/ Michael M. Calbert

	Name:	 	 Michael M. Calbert

	Its:	 	  

	
	VORNADO TRUCK, LLC
		
	By:	 	Vornado Realty L.P.
	Its:	 	Sole Member
		
	By:	 	Vornado Realty L.P.
	Its:	 	General Partner
		
	By:	 	 /s/ Michael D. Fascitelli

	Name:	 	 Michael D. Fascitelli

	Its:	 	  

  

			
	GB HOLDING I, LLC
		
	By:	 	 /s/ James M. Dworkin

	Name:	 	 James M. Dworkin

	Its:	 	  

 Schedule I 

TOYS “R” US HOLDINGS, INC. 

Ownership of Shares 
  

											
	 Stockholder
	 	Capital Contribution
with respect 
to
Class A Common Stock	 	Number of Shares of
Class A Common Stock	 	Capital
Contribution
with respect to
Class L Common Stock	 	Number of Shares of
Class L Common Stock
					
	 Sponsors
	 			 		 			 	
					
	 Bain Capital (TRU) VIII, L.P.
	 	$	25,741,291.47	 	86,612,690.00	 	$	231,690,865.13	 	9,623,632.00
					
	 Bain Capital (TRU) VIII-E, L.P.
	 	$	10,833,113.56	 	36,450,584.00	 	$	97,506,124.88	 	4,050,065.00
					
	 Bain Capital (TRU) VIII Coinvestment, L.P.
	 	 	4,219,412.00	 	14,197,214.00	 	$	37,977,857.59	 	1,577,468.00
					
	 Bain Capital Integral Investors, LLC
	 	$	1,778,012.97	 	5,982,547.00	 	 	9,706,687.29	 	403,182.00
					
	 BCIP TCV, LLC
	 	$	258,308.71	 	869,141.00	 	$	8,621,738.40	 	358,117.00
					
	 Toybox Holdings LLC
	 	$	42,830,138.71	 	144,112,176.00	 	$	385,503,273.29	 	16,012,464.00
					
	 Vornado Truck LLC
	 	$	42,830,138.71	 	144,112,176.00	 	$	385,503,273.29	 	16,012,464.00
					
	 Other Investors
	 			 		 			 	
					
	 QB Holding I, LLC
	 	$	1,499,888.75	 	5,046,732.00	 	$	13,500,120.25	 	560,748.00
					
	 TOTAL
	 	$	129,990.304.88	 	437,383,260	 	$	1,170,009,940.12	 	48,598,140.00

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