Document:

s22-9240_ex101.htm

    Exhibit 10.1

    SECOND
AMENDMENT TO LICENSE AGREEMENT

    

    

    This Amendment, dated 19th June 2009
(“EFFECTIVE DATE OF AMENDMENT”), is by and between Adeona Pharmaceuticals
(formerly Pipex Pharmaceuticals)  (“LICENSEE”) and the Regents of the
University of Michigan ("MICHIGAN").

    

    WHEREAS, LICENSEE and MICHIGAN entered
into a license agreement dated August 3, 2005 and amended on August 26, 2008
(collectively, the "License Agreement"); and

    

    WHEREAS, MICHIGAN and LICENSEE desire
to modify certain provisions of the License Agreement as provided
herein.

    

    NOW THEREFORE, MICHIGAN and LICENSEE
hereby agree as follows:

    

    1.           Existing
Paragraph 1.6  “PATENT RIGHTS” shall be deleted in its entirety and
replaced with the following:

    

    1.6           “PATENT
RIGHTS” means MICHIGAN’S legal rights under the patent laws of the United States
or relevant foreign countries for all of the following:

    

    (a)           the
following United States and foreign patents and/or patent applications, and
divisionals, continuations (except continuations-in-part), and foreign
counterparts of the same:

    
 

    U.S.
Issued Patent 7,416,741 entitled, “ Copper Lowering Treatment of Inflammatory
and fibrotic diseases (UM 2169);

    

    (b)           United
States and foreign patents issued from the applications listed in subparagraph
1(a) above, including any reissued or reexamined patents based upon the
same.

    

    2.           Existing
Paragraph 1.1 “FIELD OF USE” shall be deleted in its entirety and replaced with
the following:

    

    1.1         “FIELD
OF USE” means the treatment of Alzheimer’s, Huntington’s, and Parkinson’s
diseases.”

    

    3.           Existing
Paragraph 5.2  “DILIGENCE” shall be deleted in its entirety and
replaced with the following:

    

    5.2           As
part of the diligence required by Paragraph 5.1, LICENSEE agrees to reach the
following commercialization and research and development milestones for the
LICENSED PRODUCTS and LICENSED PROCESSES (together the “MILESTONES”) by the
following dates:

    

    
      	
              (a)  

            	
              Initiate
      manufacturing under Good Manufacturing Practices (GMP) of bulk active
      pharmaceutical ingredient used in the LICENSED PRODUCTS within one (1)
      year of the EFFECTIVE DATE OF AMENDMENT. Provide written proof of
      manufacture of bulk active pharmaceutical ingredient to
      MICHIGAN;

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    
      	
              (b)  

            	
              File
      an investigational new drug (IND) application within twelve (12) months of
      the EFFECTIVE DATE OF AMENDMENT.

            

    

    

    
      	
              (c)  

            	
              Initiate
      Phase I clinical trial within six months (6) of IND
    approval;

            

    

    

    
      	
              (d)  

            	
              First
      COMMERCIAL SALE by December 31,
2016.

            

    

    

    

    4.           LICENSEE
shall reimburse MICHIGAN for back patent costs of $37,562.81 as
follows:

    

    
      	
               
      

            	
              (1)  Within
      five (5) days of the EFFECTIVE DATE OF AMENDMENT:
  $10,000;

            

    

    
      	
               
      

            	
              (2)   Within
      six (6) months of the EFFECTIVE DATE OF AMENDMENT:
  $10,000;

            

    

    
      	
               
      

            	
              (3)   Within
      twelve (12) months of EFFECTIVE DATE OF AMENDMENT:
  $17,562.

            

    

    

    6.           Existing
Paragraph 3.1(e) shall be deleted in its entirety and replaced with the
following:

     

    LICENSEE shall pay to MICHIGAN
minimum annual royalties ("Annual Fee").  This Annual Fee is accrued
on June 30 of the years specified below, and is payable with the semi-annual
report for the ROYALTY PERIOD in which the Annual Fee
accrues.  LICENSEE may credit each Annual Fee in full against all
royalties under subparagraphs (b) and (c) above otherwise due MICHIGAN for the
prior July 1 through the June 30 on which the Annual Fee accrues.  The
Annual Fees are:

    

    (1)           In
2010-2014:
$5,000
and

    

    (2)           In
2015 and in
each year thereafter during the term of this Agreement:
$50,000.  Should this Agreement terminate or expire other than on a
June 30, the Annual Fee for such portion of a year shall be determined by
multiplying the amount set forth above for the given year by a fraction, the
numerator of which shall be the number of days since the prior June 30 during
which the Agreement is in effect and the denominator of which shall be three
hundred and sixty-five.

    

    7.           Existing
Paragraph 13.1 shall be deleted in its entirety and replaced with the
following:

    

    13.1           Any
notice, request, report or payment required or permitted to be given or made
under this Agreement by either parity is effective when mailed if sent by
recognized overnight carrier or certified mail, electronic mail followed by
confirmation by regular U.S. mail, or registered mail (return receipt requested)
to the address set forth below or such other address as such party specifies by
written notice given in conformity herewith. Any notice, request, report or
payment not so given is not effective until actually received by the other
party.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    
      
        	 	To
    MICHIGAN:	To
    LICENSEE:
	 	 	 
	 	The University of
      Michigan	Adeona
      Pharmaceuticals
	 	Office of Technology
      Transfer	3930 Varsity
      Drive
	 	1214 S. University
      Ave. 2nd
      Floor	Ann Arbor, MI
      48108
	 	Ann Arbor, MI
      48104-2592	 
	 	 	 
	 	Attn: File No.
      2169	Attn: Steve H.
      Kanzer

      

      
 

    

    8.           Except
as specifically modified and amended above, all other terms and conditions of
the License Agreement remain unchanged and in effect and are hereby ratified and
adopted as though fully set forth herein.

    

    IN WITNESS WHEREOF, the parties have
entered into this Amendment to the Amended Agreement as of the date and year
first above-written.

    
 

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  	
                                                          LICENSEE

                                                        	 
      	
                                                          THE
      REGENTS OF THE UNIVERSITY OF MICHIGAN

                                                        	 
      
	 
      	 
      	 
      	 
      
	
                                                          By:

                                                        	 
      	
                                                          By

                                                        	 
      
	 
      	 
      	 
      	 
      
	
                                                          Title:

                                                        	 
      	
                                                          Titleexhibit101.htm

    
      
        

      
EXHIBIT 10.1

      CARMAX, INC.

      2002
STOCK INCENTIVE PLAN

      (AS
AMENDED AND RESTATED JUNE 23, 2009)

      

       

      1.           Purpose. The purpose of this
CarMax, Inc. 2002 Stock Incentive Plan (the “Plan”) is to further the long term
stability and financial success of CarMax, Inc. (the “Company”) by (a)
attracting and retaining key employees of the Company through the use of stock
incentives and (b) encouraging ownership in the Company by members of the
Company’s Board of Directors. It is believed that ownership of Company Stock
will stimulate the efforts of those employees upon whose judgment and interest
the Company is and will be largely dependent for the successful conduct of its
business. It is also believed that Incentive Awards granted to employees and
directors under this Plan will strengthen their desire to remain with the
Company and will further the identification of those employees’ and directors’
interests with those of the Company’s shareholders.

      

      2.           Definitions. As used in the
Plan, the following terms have the meanings indicated:

       

      (a)           “Act”
means the Securities Exchange Act of 1934, as amended.

      

      (b)           “Applicable
Withholding Taxes” means the minimum aggregate amount of federal, state and
local income and payroll taxes that the Company is required by applicable law to
withhold in connection with any Incentive Award.

      

      (c)           “Board”
means the Board of Directors of the Company.

      

      (d)           “Change
of Control” means the occurrence of either of the following events: (i) any
individual, entity or group (as defined in Section 13(d)(3) of the Act) becomes,
or obtains the right to become, the beneficial owner (as defined in Rule
13(d)(3) under the Act) of Company securities having 20% or more of the combined
voting power of the then outstanding securities of the Company that may be cast
for the election of directors to the Board of the Company (other than as a
result of an issuance of securities initiated by the Company in the ordinary
course of business); or (ii) as the result of, or in connection with, any cash
tender or exchange offer, merger or other business combination, sale of assets
or contested election, or any combination of the foregoing transactions, the
persons who were directors of the Company before such transactions shall cease
to constitute a majority of the Board or of the board of directors of any
successor to the Company.

      

      (e)           “Code”
means the Internal Revenue Code of 1986, as amended. A reference to any
provision of the Code shall include reference to any successor or replacement
provision of the Code.

      

      (f)           “Committee”
means the committee appointed by the Board as described under Section
14.

      

      (g)           “Company”
means CarMax, Inc., a Virginia corporation.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (h)           “Company
Stock” means the common stock of the Company. In the event of a change in the
capital structure of the Company, the shares resulting from such a change shall
be deemed to be Company Stock within the meaning of the Plan.

      

      (i)           “Company
Stock Award” means an award of Company stock made without any
restrictions.

      

      (j)           “Date
of Grant” means the date on which an Incentive Award is granted by the
Committee.

      

      (k)           “Disability”
or “Disabled” means, as to an Incentive Stock Option, a disability within the
meaning of Code Section 22(e)(3), and, as to a Restricted Stock Unit, a
disability within the meaning of Code Section 409A(a)(2)(C).  As to
all other forms of Incentive Awards, the Committee shall determine whether a
disability exists and such determination shall be conclusive.

      

      (l)           “Fair
Market Value” means, for any given date, the fair market value of the Company
Stock as of such date, as determined by the Committee on a basis consistently
applied based on actual transactions in Company Stock on the exchange on which
it generally has the greatest trading volume.

      

      (m)           “Incentive
Award” means, collectively, the award of an Option, Stock Appreciation Right,
Company Stock Award or Restricted Award under the Plan.

      

      (n)           “Incentive
Stock Option” means an Option intended to meet the requirements of, and qualify
for favorable federal income tax treatment under, Code Section 422.

      

      (o)           “Maturity
Date” means, with respect to a Restricted Stock Unit, the date upon which all
restrictions set forth in Section 6(b) with respect to such Restricted Stock
Unit have lapsed or been removed pursuant to Section 6(g) or Section
6(h).

      

      (p)           “Nonstatutory
Stock Option” means an Option that does not meet the requirements of Code
Section 422 or, even if meeting the requirements of Code Section 422, is not
intended to be an Incentive Stock Option and is so designated.

      

      (q)           “Officer”
means a person who is an officer of the Company within the meaning of Section 16
of the Act.

      

      (r)           “Option”
means a right to purchase Company Stock granted under Section 7 of the Plan, at
a price determined in accordance with the Plan.

      

      (s)           “Parent”
means, with respect to any corporation, a parent of that corporation within the
meaning of Code Section 424(e).

      

      (t)           “Participant”
means any employee or director who receives an Incentive Award under the
Plan.

      
        
           

        

        
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      (u)           “Restricted
Award” means, collectively, the award of Restricted Stock or Restricted Stock
Units.

      

      (v)           “Restricted
Stock” means Company Stock awarded upon the terms and subject to the
restrictions set forth in Section 6.

      

      (w)           “Restricted
Stock Unit” means an award granted upon the terms and subject to the
restrictions and limitations set forth in Section 6 that entitles the holder to
receive a payment equal to the Fair Market Value of a share of Company Stock on
the Maturity Date.

      

      (x)           “Rule
16b-3” means Rule 16b-3 adopted pursuant to Section 16(b) of the Act. A
reference in the Plan to Rule 16b-3 shall include a reference to any
corresponding rule (or number redesignation) of any amendments to Rule 16b-3
adopted after the effective date of the Plan’s adoption.

      

      (y)           “Stock
Appreciation Right” means a right to receive amounts from the Company awarded
upon the terms and subject to the restrictions set forth in Section
8.

      

      (z)           “Subsidiary”
means any business entity (including, but not limited to, a corporation,
partnership or limited liability company) of which a company directly or
indirectly owns one hundred percent (100%) of the voting interests of the entity
unless the Committee determines that the entity should not be considered a
Subsidiary for purposes of the Plan. If a company owns less than one hundred
percent (100%) of the voting interests of the entity, the entity will be
considered a Subsidiary for purposes of the Plan only if the Committee
determines that the entity should be so considered. For purposes of Incentive
Stock Options, Subsidiary shall be limited to a subsidiary within the meaning of
Code Section 424(f).

      

      (aa)           “Substitute
Awards” means Incentive Awards granted or shares of Company Stock issued by the
Company in assumption of, or in substitution or exchange for, awards previously
granted, or the right or obligation to make future awards, in each case, by a
company acquired by the Company or any Subsidiary or with which the Company or
any Subsidiary combines.

      

      (bb)           “10%
Shareholder” means a person who owns, directly or indirectly, stock possessing
more than 10% of the total combined voting power of all classes of stock of the
Company or any Parent or Subsidiary of the Company. Indirect ownership of stock
shall be determined in accordance with Code Section 424(d).

      

      3.           General. Incentive Awards may
be granted under the Plan in the form of Options, Stock Appreciation Rights,
Company Stock Awards and Restricted Awards. Options granted under the Plan may
be Incentive Stock Options or Nonstatutory Stock Options. The provisions of the
Plan referring to Rule 16b-3 shall apply only to Participants who are subject to
Section 16 of the Act.

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      4.           Number of Shares of Company
Stock.

      

      (a)           Subject
to Section 13 of the Plan, there shall be reserved for issuance under the Plan
an aggregate of 38,200,000 shares of Company Stock, which shall be authorized,
but unissued shares.

      

      (b)           Subject
to Section 13 of the Plan, no more than 3,000,000 shares of Company Stock may be
allocated to the Incentive Awards that are granted to any one Participant during
any single calendar year.

      

      (c)           Shares
of Company Stock that have not been issued under the Plan and that are allocable
to Incentive Awards or portions thereof that expire or otherwise terminate
unexercised may again be subjected to an Incentive Award under the Plan.
Similarly, if any shares of Restricted Stock issued pursuant to the Plan are
reacquired by the Company as a result of a forfeiture of such shares pursuant to
the Plan, such shares may again be subjected to an Incentive Award under the
Plan.

      

      (d)           For
purposes of determining the number of shares of Company Stock that are available
for Incentive Awards under the Plan, such number shall include the number of
shares of Company Stock under an Incentive Award tendered by a Participant
(either by actual delivery or attestation) or retained by the Company in payment
of the exercise price of an Option or SAR, or Applicable Withholding
Taxes.

      

      (e)           Incentive
Awards shall reduce the number of shares of Company Stock available for
Incentive Awards under the Plan only to the extent such Incentive Awards are
paid in shares of Company Stock, as opposed to payment in cash or other
consideration.

      

      (f)           Substitute
Awards shall not reduce the shares of Company Stock authorized for grant under
the Plan or the applicable limitations for grant to a Participant under Section
4(b).  Additionally, in the event that a company acquired by the
Company or any Subsidiary or with which the Company or any Subsidiary combines
has shares available under a pre-existing plan approved by shareholders and not
adopted in contemplation of such acquisition or combination, the shares
available for grant pursuant to the terms of such pre-existing plan (as
adjusted, to the extent appropriate, using the exchange ratio or other
adjustment or valuation ratio or formula used in such acquisition or combination
to determine the consideration payable to the holders of common stock of the
entities party to such acquisition or combination) may be used for Incentive
Awards under the Plan and shall not reduce the shares of Company Stock
authorized for grant under the Plan; provided that Incentive Awards using such
available shares shall not be made after the date awards or grants could have
been made under the terms of the pre-existing plan, absent the acquisition or
combination, and shall only be made to individuals who were not Participants
prior to such acquisition or combination.

      

      5.           Eligibility.

      

      (a)           All
present and future employees and directors of the Company (or any Parent or
Subsidiary of the Company, whether now existing or hereafter created or
acquired) shall be

      
        
           

        

        
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      eligible
to receive Incentive Awards under the Plan. The Committee shall have the power
and complete discretion, as provided in Section 14, to select which employees
and directors shall receive Incentive Awards and to determine for each such
Participant the terms and conditions, the nature of the award and the number of
shares or units to be allocated to each Participant as part of each Incentive
Award.

      

      (b)           The
grant of an Incentive Award shall not obligate the Company or any Parent or
Subsidiary of the Company to pay a Participant any particular amount of
remuneration, to continue the employment of the Participant after the grant or
to make further grants to the Participant at any time thereafter.

      

      6.           Company Stock Awards and Restricted
Awards.

      

      (a)           Whenever
the Committee deems it appropriate to grant a Company Stock Award, notice shall
be given to the Participant stating the number of shares of Company Stock for
which the Company Stock Award is granted.  This notice may be given in
writing or in electronic form and shall be the award agreement between the
Company and the Participant. A Company Stock Award may be made by the Committee
in its discretion without cash consideration.

      

      (b)           Whenever
the Committee deems it appropriate to grant a Restricted Award, notice shall be
given to the Participant stating the number of shares of Restricted Stock or
number of Restricted Stock Units for which the Restricted Award is granted and
the terms and conditions to which the Restricted Award is subject. This notice
may be given in writing or in electronic form and shall be the award agreement
between the Company and the Participant. A Restricted Award may be made by the
Committee in its discretion without cash consideration.

      

      (c)           A
Restricted Award issued pursuant to the Plan shall be subject to the following
restrictions:

      

      (i)           None
of such shares or units may be sold, assigned, transferred, pledged,
hypothecated, or otherwise encumbered or disposed of until the restrictions on
such shares or units shall have lapsed or shall have been removed pursuant to
paragraph (h) or (i) below.

      

      (ii)           The
restrictions on such shares or units must remain in effect for a period of no
less than one year from the Date of Grant, except as provided under paragraph
(h) or (i) in the case of Disability, retirement, death or a Change in
Control.

      

      (iii)           If
a Participant ceases to be employed by the Company or a Parent or Subsidiary of
the Company, the Participant shall forfeit to the Company any Restricted Awards,
the restrictions on which shall not have lapsed or shall not have been removed
pursuant to paragraph (h) or (i) below, on the date such Participant shall cease
to be so employed.

      

      (iv)           The
Committee may establish such other restrictions on such shares or units that the
Committee deems appropriate, including, without limitation, events of forfeiture
and performance requirements for the vesting of awards.

      
        
           

        

        
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      (d)           Upon
the acceptance by a Participant of an award of Restricted Stock, such
Participant shall, subject to the restrictions set forth in paragraph (c) above,
have all the rights of a shareholder with respect to the shares of Restricted
Stock subject to such award of Restricted Stock, including, but not limited to,
the right to vote such shares of Restricted Stock and the right to receive all
dividends and other distributions paid thereon. Certificates, if any,
representing Restricted Stock shall bear a legend referring to the restrictions
set forth in the Plan and the Participant’s award agreement. If shares of
Restricted Stock are issued without certificates, notice of the restrictions set
forth in the Plan and the Participant’s Award Agreement must be given to the
shareholder in the manner required by law.

      

      (e)           Each
Restricted Stock Unit shall entitle the Participant, on the Maturity Date, to
receive from the Company an amount equal to the Fair Market Value on the
Maturity Date of one share of Company Stock subject to any limitations or
enhancements on such value as the Committee may set forth in the notice of the
Restricted Stock Unit award.

      

      (f)           The
manner in which the Company’s obligation arising on the Maturity Date of a
Restricted Stock Unit shall be paid and date of payment shall be determined by
the Committee and shall be set forth in the Participant’s Restricted Stock Unit
agreement.  The Committee may provide for payment in Company Stock or
cash or a fixed combination of Company Stock and cash, or the Committee may
reserve the right to determine the manner of payment at the time the payment is
made.  Shares of Company Stock issued as payment for a Restricted
Stock Unit shall be valued at Fair Market Value on the Maturity Date subject to
any limitations or enhancements on such value as the Committee may set forth in
the notice of the Restricted Stock Unit award.

      

      (g)           A
Participant receiving an award of Restricted Stock Units shall not possess any
rights of a shareholder with respect to the Restricted Stock Units and shall be
entitled to receive payments equivalent to dividends and other distributions
paid on shares of Company Stock only to the extent set forth in the Restricted
Stock Unit agreement.

      

      (h)           The
Committee shall establish as to each Restricted Award the terms and conditions
upon which the restrictions set forth in paragraph (c) above shall lapse. Such
terms and conditions may include, without limitation, the lapsing of such
restrictions as a result of the Disability, death or retirement of the
Participant or the occurrence of a Change of Control.

      

      (i)           Notwithstanding
the forfeiture provisions of paragraph (c)(iii) above, the Committee may at any
time, in its sole discretion, accelerate the time at which any or all
restrictions will lapse or remove any and all such restrictions.

      

      (j)           Each
Participant shall agree at the time his Company Stock Award and/or Restricted
Award is granted, and as a condition thereof, to pay to the Company or make
arrangements satisfactory to the Company regarding the payment to the Company
of, Applicable Withholding Taxes. Until such amount has been paid or
arrangements satisfactory to the Company have been made, no stock certificates
free of a legend reflecting the restrictions set forth in paragraph (c) above
shall be issued to such Participant for Restricted Stock.  If
Restricted Stock is being issued to a Participant without the use of a stock
certificate, the restrictions set forth in paragraph (c) shall be communicated
to the shareholder in the manner required by law. As an alternative to making a
cash payment to the Company to satisfy Applicable Withholding Taxes for an award
of Company Stock or Restricted Stock, 

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      if the
grant so provides, or the Committee by separate action so permits, the
Participant may elect to (i) deliver shares of Company Stock or (ii) have the
Company retain that number of shares of Company Stock that would satisfy all or
a specified portion of the Applicable Withholding Taxes. Any such election shall
be made only in accordance with procedures established by the Committee. The
Committee has the express authority to change any election procedure it
establishes at any time.  Applicable Withholding Taxes attributable to
Restricted Stock Units may be withheld from the payment by the Company to the
Participant for such Restricted Stock Units.

      

      7.           Options.

      

      (a)           Whenever
the Committee deems it appropriate to grant Options, notice shall be given to
the Participant stating the number of shares for which Options are granted, the
exercise price per share, whether the Options are Incentive Stock Options or
Nonstatutory Stock Options, the extent, if any, to which Stock Appreciation
Rights are granted, and the conditions to which the grant and exercise of the
Options are subject. This notice may be given in writing or in electronic form
and shall be the stock option agreement between the Company and the
Participant.

      

      (b)           The
exercise price of shares of Company Stock covered by an Incentive Stock Option
shall be not less than 100% of the Fair Market Value of such shares on the Date
of Grant; provided that if an Incentive Stock Option is granted to an employee
who, at the time of the grant, is a 10% Shareholder, then the exercise price of
the shares covered by the Incentive Stock Option shall be not less than 110% of
the Fair Market Value of such shares on the Date of Grant.

      

      (c)           The
exercise price of shares of Company Stock covered by a Nonstatutory Stock Option
shall be not less than 100% of the Fair Market Value of such shares on the Date
of Grant.  No Nonstatutory Stock Option may be exercised after ten
years from the Date of Grant.

      

      (d)           Options
may be exercised in whole or in part at such times as may be specified by the
Committee in the Participant’s stock option agreement; provided that the
exercise provisions for Incentive Stock Options shall in all events not be more
liberal than the following provisions:

      

      (i)           No
Incentive Stock Option may be exercised after the first to occur
of:

      

      (x)           Ten
years (or, in the case of an Incentive Stock Option granted to a 10%
Shareholder, five years) from the Date of Grant,

      

      (y)           Three
months following the date of the Participant’s termination of employment with
the Company and any Parent or Subsidiary of the Company for reasons other than
death or Disability; or

      

      (z)           One
year following the date of the Participant’s termination of employment by reason
of death or Disability.

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      (ii)           Except
as otherwise provided in this paragraph, no Incentive Stock Option may be
exercised unless the Participant is employed by the Company or a Parent or
Subsidiary of the Company at the time of the exercise and has been so employed
at all times since the Date of Grant. If a Participant’s employment is
terminated other than by reason of death or Disability at a time when the
Participant holds an Incentive Stock Option that is exercisable (in whole or in
part), the Participant may exercise any or all of the then exercisable portion
of the Incentive Stock Option (to the extent exercisable on the date of
termination) within three months after the Participant’s termination of
employment. If a Participant’s employment is terminated by reason of his
Disability at a time when the Participant holds an Incentive Stock Option that
is exercisable (in whole or in part), the Participant may exercise any or all of
the then exercisable portion of the Incentive Stock Option (to the extent
exercisable on the date of Disability) within one year after the Participant’s
termination of employment. If a Participant’s employment is terminated by reason
of his death at a time when the Participant holds an Incentive Stock Option that
is exercisable (in whole or in part), the then exercisable portion of the
Incentive Stock Option may be exercised (to the extent exercisable on the date
of death) within one year after the Participant’s death by the person to whom
the Participant’s rights under the Incentive Stock Option shall have passed by
will or by the laws of descent and distribution.

      

      (iii)           An
Incentive Stock Option, by its terms, shall be exercisable in any calendar year
only to the extent that the aggregate Fair Market Value (determined at the Date
of Grant) of the Company Stock with respect to which Incentive Stock Options are
exercisable for the first time during the calendar year does not exceed $100,000
(the “Limitation Amount”). Incentive Stock Options granted under the Plan and
all other plans of the Company and any Parent or Subsidiary of the Company shall
be aggregated for purposes of determining whether the Limitation Amount has been
exceeded. The Committee may impose such conditions as it deems appropriate on an
Incentive Stock Option to ensure that the foregoing requirement is met. If
Incentive Stock Options that first become exercisable in a calendar year exceed
the Limitation Amount, the excess Options will be treated as Nonstatutory Stock
Options to the extent permitted by law.

      

      (e)           The
Committee may, in its discretion, grant Options that by their terms become fully
exercisable upon a Change of Control notwithstanding other conditions on
exercisability in the stock option agreement.

      

      (f)           Notwithstanding
the foregoing, an Option agreement may provide that if on the last day of the
term of an Option the Fair Market Value of one share of Company Stock exceeds
the exercise price of the Option, the Participant has not exercised the Option
and the Option has not expired, the Option shall be deemed to have been
exercised by the Participant on such day with payment made by withholding shares
of Company Stock otherwise issuable in connection with the exercise of the
Option.  In such event, the Company shall deliver to the Participant
the number of shares of Company Stock for which the Option was deemed exercised,
less the number of shares of Company Stock required to be withheld for the
payment of the total purchase price and Applicable Withholding Taxes; any
fractional share of Company Stock shall be settled in cash.

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      8.           Stock Appreciation
Rights.

      

      (a)           Whenever
the Committee deems it appropriate, Stock Appreciation Rights may be granted in
connection with all or any part of an Option, either concurrently with the grant
of the Option or, if the Option is a Nonstatutory Stock Option, by an amendment
to the Option at any time thereafter during the term of the Option. Stock
Appreciation Rights may be exercised in whole or in part at such times and under
such conditions as may be specified by the Committee in the Participant’s stock
option agreement. The following provisions apply to all Stock Appreciation
Rights that are granted in connection with Options:

      

      (i)           Stock
Appreciation Rights shall entitle the Participant, upon exercise of all or any
part of the Stock Appreciation Rights, to surrender to the Company unexercised
that portion of the underlying Option relating to the same number of shares of
Company Stock as is covered by the Stock Appreciation Rights (or the portion of
the Stock Appreciation Rights so exercised) and to receive in exchange from the
Company an amount equal to the excess of (x) the Fair Market Value on the date
of exercise of the Company Stock covered by the surrendered portion of the
underlying Option over (y) the exercise price of the Company Stock covered by
the surrendered portion of the underlying Option. The Committee may limit the
amount that the Participant will be entitled to receive upon exercise of the
Stock Appreciation Right.

      

      (ii)           Upon
the exercise of a Stock Appreciation Right and surrender of the related portion
of the underlying Option, the Option, to the extent surrendered, shall not
thereafter be exercisable.

      

      (iii)           The
Committee may, in its discretion, grant Stock Appreciation Rights in connection
with Options which by their terms become fully exercisable upon a Change of
Control, which Stock Appreciation Rights shall only be exercisable following a
Change of Control. The underlying Option may provide that such Stock
Appreciation Rights shall be payable solely in cash. The terms of the underlying
Option shall provide the method by which the value of the Company Stock on the
date of exercise shall be calculated based on one of the following
alternatives:

      

      
        	
                (x)

              	
                the
      Fair Market Value of the Company Stock on the day of
    exercise;

              

      

      

      
        
          	
                  (y)

                	
                  the
      highest closing price of the Company Stock on the exchange on which it is
      then traded, during the 90 days immediately preceding the Change of
      Control; or

                

        

      

      

      
        	
                (z)

              	
                the
      greater of (x) or (y).

              

      

      

      (iv)           Subject
to any further conditions upon exercise imposed by the Committee, a Stock
Appreciation Right shall be exercisable only to the extent that the related
Option is exercisable, and shall expire no later than the date on which the
related Option expires.

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      (v)           A
Stock Appreciation Right may only be exercised at a time when the Fair Market
Value of the Company Stock covered by the Stock Appreciation Right exceeds the
exercise price of the Company Stock covered by the underlying
Option.

      

      (b)           Whenever
the Committee deems it appropriate, Stock Appreciation Rights may be granted
without related Options. The terms and conditions of the award shall be set
forth in a Stock Appreciation Rights agreement between the Company and the
Participant in written or electronic form. The following provisions apply to all
Stock Appreciation Rights that are granted without related Options:

      

      (i)           Stock
Appreciation Rights shall entitle the Participant, upon the exercise of all or
any part of the Stock Appreciation Rights, to receive from the Company an amount
equal to the excess of (x) the Fair Market Value on the date of exercise of the
Company Stock covered by the surrendered Stock Appreciation Rights over (y) the
Fair Market Value on the Date of Grant of the Company Stock covered by the Stock
Appreciation Rights. The Committee may limit the amount that the Participant may
be entitled to receive upon exercise of the Stock Appreciation
Right.

      

      (ii)           Stock
Appreciation Rights shall be exercisable, in whole or in part, at such times as
the Committee shall specify in the Participant’s Stock Appreciation Rights
agreement.

      

      (c)           The
manner in which the Company’s obligation arising upon the exercise of a Stock
Appreciation Right shall be paid shall be determined by the Committee and shall
be set forth in the Participant’s stock option agreement (if the Stock
Appreciation Rights are related to an Option) or Stock Appreciation Rights
agreement. The Committee may provide for payment in Company Stock or cash, or a
fixed combination of Company Stock or cash, or the Committee may reserve the
right to determine the manner of payment at the time the Stock Appreciation
Right is exercised. Shares of Company Stock issued upon the exercise of a Stock
Appreciation Right shall be valued at their Fair Market Value on the date of
exercise.

      

      9.           Method of Exercise of Options and
Stock Appreciation Rights.

      

      (a)           Options
and Stock Appreciation Rights may be exercised by the Participant by giving
notice of the exercise to the Company, stating the number of shares the
Participant has elected to purchase under the Option or the number of Stock
Appreciation Rights he has elected to exercise. In the case of a purchase of
shares under an Option, such notice shall be effective only if accompanied by
the exercise price in full paid in cash; provided that, if the terms of an
Option so permit, or the Committee by separate action so permits, the
Participant may (i) deliver shares of Company Stock (valued at their Fair Market
Value on the date of exercise) in satisfaction of all or any part of the
exercise price (either by actual delivery or attestation), (ii) to the extent
permitted under applicable laws and regulations, deliver a properly executed
exercise notice together with irrevocable instructions to a broker to exercise
all or part of the Option, sell a sufficient number of shares of Company Stock
to cover the exercise price, Applicable Withholding Taxes (if required by the
Committee) and other costs and expenses associated with such sale and deliver
promptly the amount necessary to pay the exercise price and any Applicable
Withholding Taxes or (iii) request that the Company reduce 

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      the
number of shares of Company Stock issued by the number of shares having an
aggregate Fair Market Value equal to the aggregate exercise price. The
Participant shall not be entitled to make payment of the exercise price other
than in cash unless provisions for an alternative payment method are included in
the Participant’s stock option agreement or are agreed to in writing by the
Company with the approval of the Committee prior to exercise of the
Option.

      

      (b)           The
Company may place on any certificate representing Company Stock issued upon the
exercise of an Option or a Stock Appreciation Right any legend deemed desirable
by the Company’s counsel to comply with federal or state securities laws, and
the Company may require of the participant a customary written indication of his
investment intent. Until the Participant has made any required payment,
including any Applicable Withholding Taxes, and has had issued to him a
certificate for the shares of Company Stock acquired, he shall possess no
shareholder rights with respect to the shares.

      

      (c)           Each
Participant shall agree as a condition of the exercise of an Option or a Stock
Appreciation Right to pay to the Company Applicable Withholding Taxes, or make
arrangements satisfactory to the Company regarding the payment to the Company of
such amounts. Until Applicable Withholding Taxes have been paid or arrangements
satisfactory to the Company have been made, no stock certificate shall be issued
upon the exercise of an Option or a Stock Appreciation Right.

      

      As an
alternative to making a cash payment to the Company to satisfy Applicable
Withholding Taxes if the Option or Stock Appreciation Rights agreement so
provides, or the Committee by separate action so provides, a Participant may
elect to (i) deliver shares of Company Stock or (ii) have the Company retain
that number of shares of Company Stock that would satisfy all or a specified
portion of the Applicable Withholding Taxes. Any such election shall be made
only in accordance with procedures established by the Committee.

      

      (d)           Notwithstanding
anything herein to the contrary, if the Company is subject to Section 16 of the
Act, Options and Stock Appreciation Rights shall always be granted and exercised
in such a manner as to conform to the provisions of Rule 16b-3.

      

      10.           Nontransferability of Incentive
Awards. Incentive Awards shall not be transferable unless so provided in
the award agreement or an amendment to the award agreement; provided, however,
that no transfer for value or consideration will be permitted without the prior
approval of the Company’s shareholders. Options and Stock Appreciation Rights
which are intended to be exempt under Rule 16b-3 (to the extent required by Rule
16b-3 at the time of grant or amendment of the award agreement), by their terms,
shall not be transferable by the Participant except by will or by the laws of
descent and distribution and shall be exercisable, during the Participant’s
lifetime, only by the Participant or by his guardian or legal
representative.

      

      11.           Effective Date of the
Plan.  This Plan became effective as of October 1, 2002, and
has been amended and restated effective as of June 23, 2009.

      

      12.           Termination, Modification,
Change. If not sooner terminated by the Board, this Plan shall terminate
at the close of business on June 23, 2019. No Incentive Awards shall be

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      granted
under the Plan after its termination. The Board may terminate the Plan or may
amend the Plan in such respects as it shall deem advisable; provided that, if
and to the extent required by the Code or Rule 16b-3, no change shall be made
that increases the total number of shares of Company Stock reserved for issuance
pursuant to Incentive Awards granted under the Plan (except pursuant to Section
13), expands the class of persons eligible to receive Incentive Awards, or
materially increases the benefits accruing to Participants under the Plan unless
such change is authorized by the shareholders of the Company. Notwithstanding
the foregoing, the Board may unilaterally amend the Plan and Incentive Awards as
it deems appropriate to ensure compliance with Rule 16b-3 and to cause Incentive
Awards to meet the requirements of the Code, including Code Sections 162(m) and
422, and regulations thereunder. Except as provided in the preceding sentence, a
termination or amendment of the Plan shall not, without the consent of the
Participant, adversely affect a Participant’s rights under an Incentive Award
previously granted to him.

      

      13.           Change in Capital
Structure.

      

      (a)           In
the event of a stock dividend, stock split or combination of shares,
recapitalization, merger in which the Company is the surviving corporation,
reorganization, reincorporation, consolidation, or other change in the Company’s
capital stock without the receipt of consideration by the Company (including,
but not limited to, the creation or issuance to shareholders generally of
rights, options or warrants for the purchase of common stock or preferred stock
of the Company), the number and kind of shares of stock or securities of the
Company to be subject to the Plan and to Incentive Awards then outstanding or to
be granted thereunder, the aggregate and individual maximum number of shares or
securities which may be delivered under the Plan pursuant to Section 4, and the
exercise price and other terms and relevant provisions of Incentive Awards shall
be appropriately adjusted by the Committee, whose determination shall be binding
on all persons; provided, however, that no adjustment of an outstanding Option
or Stock Appreciation Right may be made that would create a deferral of income
or a modification, extension or renewal of such Option or Stock Appreciation
Right under Code Section 409A except as may be permitted in applicable Treasury
Regulations. If the adjustment would produce fractional shares with respect to
any Restricted Award or unexercised Option or Stock Appreciation Right, the
Committee may adjust appropriately the number of shares covered by the Incentive
Award so as to eliminate the fractional shares.

      

      (b)           If
the Company is a party to a consolidation or merger in which the Company is not
the surviving corporation, a transaction that results in the acquisition of
substantially all of the Company’s outstanding stock by a single person or
entity, or a sale or transfer of substantially all of the Company’s assets, the
Committee may take such actions with respect to outstanding Incentive Awards as
the Committee deems appropriate.

      

      (c)           Any
determination made or action taken under this Section 13 by the Committee shall
be final and conclusive and may be made or taken without the consent of any
Participant.

      

      14.           Administration Of The Plan.
The Plan shall be administered by a Committee, which shall be appointed by the
Board, consisting of not less than three members of the Board. Subject to
paragraph (e) below, the Committee shall be the Compensation Committee of the
Board unless

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

      the Board
shall appoint another Committee to administer the Plan. The Committee shall have
general authority to impose any limitation or condition upon an Incentive Award
that the Committee deems appropriate to achieve the objectives of the Incentive
Award and the Plan and, without limitation and in addition to powers set forth
elsewhere in the Plan, shall have the following specific authority:

      

      (a)           The
Committee shall have the power and complete discretion to determine (i) which
eligible employees and directors shall receive an Incentive Award and the nature
of the Incentive Award, (ii) the number of shares of Company Stock to be covered
by each Incentive Award, (iii) whether Options shall be Incentive Stock Options
or Nonstatutory Stock Options, (iv) when, whether and to what extent Stock
Appreciation Rights shall be granted in connection with Options, (v) the Fair
Market Value of Company Stock, (vi) the time or times when an Incentive Award
shall be granted, (vii) whether an Incentive Award shall become vested over a
period of time and when it shall be fully vested, (viii) when Options or Stock
Appreciation Rights may be exercised, (ix) whether a Disability exists, (x) the
manner in which payment will be made upon the exercise of Options or Stock
Appreciation Rights, (xi) conditions relating to the length of time before
disposition of Company Stock received upon the exercise of Options or Stock
Appreciation Rights is permitted, (xii) whether to approve a Participant’s
election (A) to deliver Company Stock to satisfy Applicable Withholding Taxes or
(B) to have the Company withhold from the shares to be issued upon the exercise
of a Nonstatutory Stock Option or a Stock Appreciation Right the number of
shares necessary to satisfy Applicable Withholding Taxes, (xiii) the terms and
conditions applicable to Restricted Awards, (xiv) the terms and conditions on
which restrictions upon Restricted Awards shall lapse, (xv) whether to
accelerate the time at which any or all restrictions with respect to Restricted
Awards will lapse or be removed, (xvi) notice provisions relating to the sale of
Company Stock acquired under the Plan, and (xvii) any additional requirements
relating to Incentive Awards that the Committee deems appropriate.
Notwithstanding the foregoing, no “tandem stock options” (where two stock
options are issued together and the exercise of one option affects the right to
exercise the other option) may be issued in connection with Incentive Stock
Options. The Committee shall have the power to amend the terms of previously
granted Incentive Awards so long as the terms as amended are consistent with the
terms of the Plan and provided that the consent of the Participant is obtained
with respect to any amendment that would be detrimental to the Participant,
except that such consent will not be required if such amendment is for the
purpose of complying with Rule 16b-3 or any requirement of the Code applicable
to the Incentive Award.

      

      (b)           The
Committee may adopt rules and regulations for carrying out the Plan. The
interpretation and construction of any provision of the Plan by the Committee
shall be final and conclusive. The Committee may consult with counsel, who may
be counsel to the Company, and shall not incur any liability for any action
taken in good faith in reliance upon the advice of counsel.

      

      (c)           A
majority of the members of the Committee shall constitute a quorum, and all
actions of the Committee shall be taken by a majority of the members present.
Any action may be taken by a written instrument signed by all of the members,
and any action so taken shall be fully effective as if it had been taken at a
meeting.

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

      (d)           The
Board from time to time may appoint members previously appointed and may fill
vacancies, however caused, in the Committee. If a Committee of the Board is
appointed to serve as the Committee, such Committee shall have, in connection
with the administration of the Plan, the powers possessed by the Board,
including the power to delegate a subcommittee of the administrative powers the
Committee is authorized to exercise, subject, however, to such resolutions, not
inconsistent with the provisions of the Plan, as may be adopted from time to
time by the Board.

      

      (e)           
To the extent permitted by applicable law, the Committee may delegate to one or
more Officers the authority to do one or both of the following:
(i) designate Participants who are not Officers to be recipients of
Incentive Awards, and (ii) determine the number of shares of Company Stock
or units to be subject to such Incentive Awards granted to such Participants;
provided, however, that the Committee’s
delegation of this authority shall specify the total number of shares of Company
Stock or units subject to such delegation, and that, in no event, shall such
Officer grant an Incentive Award to himself or herself.  All other
terms and conditions of any Incentive Award made pursuant to this delegation of
authority shall be determined by the Committee.

      

      (f)           All
members of the Committee must be “outside directors” as described in Code
Section 162(m). In addition, all members of the Committee must be “non-employee
directors” as defined in Rule 16b-3.

      

      (g)           Except
in connection with a corporate transaction involving the Company (including,
without limitation, any stock dividend, stock split, extraordinary cash
dividend, recapitalization, reorganization, merger, consolidation, split-up,
spin-off, combination or exchange of shares), the terms of outstanding Incentive
Awards may not be amended to reduce the exercise price of outstanding Options or
SARS or cancel outstanding Options or SARs in exchange for cash, other Incentive
Awards or Options or SARs with an exercise price that is less than the exercise
price of the original Options or SARs without shareholder approval.

      

      15.           Notice. All notices and other
communications required or permitted to be given under this Plan shall be in
writing and shall be deemed to have been duly given if delivered personally or
mailed first class, postage prepaid, as follows:

      

      (a)           If
to the Company—at its principal business address to the attention of the
Secretary;

      

      (b)           If
to any Participant—at the last address of the Participant known to the sender at
the time the notice or other communication is sent.

      

      16.           Shareholder Rights. No
Participant shall be deemed to be the holder of, or to have any of the rights of
a holder with respect to, any shares of Company Stock subject to an Incentive
Award unless and until such Participation has satisfied all requirements under
the terms of the Incentive Award.

      

      17.           No Employment or Other Service
Rights. Nothing in the Plan or any instrument executed or Incentive Award
granted under the Plan shall confer upon any Participant any right

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

      to
continue to serve the Company (or a Parent or Subsidiary of the Company) in the
capacity in effect at the time the Incentive Award was granted or shall affect
the right of the Company (or a Parent or Subsidiary of the Company) to terminate
the employment of a Participant with or without notice and with or without
cause.

      

      18.           Interpretation. The terms of
the Plan shall be governed by the laws of the Commonwealth of Virginia, without
regard to conflict of law provisions at any jurisdiction. The terms of this Plan
are subject to all present and future regulations and rulings of the Secretary
of the Treasury or his delegate relating to the qualification of Incentive Stock
Options under the Code. If any provision of the Plan conflicts with any such
regulation or ruling, then that provision of the Plan shall be void and of no
effect. As to all Incentive Stock Options and all Nonstatutory Stock Options
with an exercise price of at least 100% of Fair Market Value of the Company
Stock on the Date of Grant, this Plan shall be interpreted for such Options to
be excluded from applicable employee remuneration for purposes of Code Section
162(m).

      

      

      IN
WITNESS HEREOF, this instrument has been executed as of the 23rd day of
June, 2009.

      

        
          
            
              
                
                  
                    
                      	 
      	
                              CARMAX,
      INC.

                            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                              By:

                            	
                                /s/ Keith D.
  Browning

                            
	 
      	 
      	
                              Keith
      D. Browning

                            
	 
      	 
      	
                              Executive
      Vice President &

                            
	 
      	 
      	
                              Chief
      Financial
Officer

                            

                    

                  

                

              

            

          

        

      

    

     

     

     

     

     

     

     

    15

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