Document:

exhibit102.htm

    

      
        

      

      EXHIBIT
        10.2

      

      

      

      

      

      

      

      

      CARMAX,
        INC.

      BENEFIT
        RESTORATION PLAN

      

      

      As
        Amended and Restated

      

      January
        1, 2008

       

       

       

       

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      TABLE
        OF CONTENTS

      

        

          
            	
                    Section
                      I

                  	
                    Purpose
                      of the Plan

                  	
                    1

                  
	
                    1.1

                  	
                    Purpose

                  	
                    1

                  
	
                    1.2

                  	
                    Structure

                  	
                    1

                  
	
                    1.3

                  	
                    Definitions

                  	
                    1

                  
	
                     

                  	 	 
	
                    Section II

                  	
                    Eligibility

                  	
                    3

                  
	
                    2.1

                  	
                    Eligible
                      Employees

                  	
                    3

                  
	
                    2.2

                  	
                    Participation

                  	
                    3

                  
	
                    2.3

                  	
                    No
                      Duplication of Benefits

                  	
                    3

                  
	
                     

                  	 	 
	
                    Section III

                  	
                    Benefits

                  	
                    3

                  
	
                    3.1

                  	
                    Minimum
                      Service Requirement

                  	
                    3

                  
	
                    3.2

                  	
                    Supplemental
                      Benefit

                  	
                    4

                  
	
                    3.3

                  	
                    Adjustment
                      for Early or Late Commencement

                  	
                    4

                  
	
                    3.4

                  	
                    Maximum
                      Benefit

                  	
                    4

                  
	
                    3.5

                  	
                    Additional
                      Benefit Service

                  	
                    5

                  
	
                     

                  	 	 
	
                    Section IV

                  	
                    Computation
                      and Payment of Supplemental Benefit

                  	
                    5

                  
	
                    4.1

                  	
                    Computation

                  	
                    5

                  
	
                    4.2

                  	
                    Payment

                  	
                    5

                  
	
                    4.3

                  	
                    Payments
                      to Key Employees

                  	
                    6

                  
	
                     

                  	 	 
	
                    Section V

                  	
                    Computation
                      and Payment of Survivor Benefit

                  	
                    6

                  
	
                    5.1

                  	
                    Pre-Retirement
                      Survivor Benefit

                  	
                    6

                  
	
                    5.2

                  	
                    Post-Retirement
                      Survivor Benefit

                  	
                    7

                  
	
                    5.3

                  	
                    Actuarial
                      Assumptions

                  	
                    7

                  
	
                    5.4

                  	
                    Medium
                      of Payment

                  	
                    8

                  
	
                     

                  	 	 
	
                    Section VI

                  	
                    Administration

                  	
                    8

                  
	
                    6.1

                  	
                    Amendment
                      and Termination

                  	
                    8

                  
	
                    6.2

                  	
                    Plan
                      Administrator

                  	
                    8

                  
	
                    6.3

                  	
                    Claims
                      Procedure

                  	
                    8

                  
	
                    6.4

                  	
                    Qualified
                      Domestic Relations Orders

                  	
                    8

                  
	
                     

                  	 	 
	
                    Section VII

                  	
                    Change
                      of Control

                  	
                    9

                  
	
                    7.1

                  	
                    Effect
                      of Change of Control

                  	
                    9

                  
	
                    7.2

                  	
                    Definition
                      of Change of Control

                  	
                    9

                  
	
                     

                  	 	 
	
                    Section VIII

                  	
                    Miscellaneous

                  	
                    9

                  
	
                    8.1

                  	
                    Tax
                      Matters

                  	
                    9

                  
	
                    8.2

                  	
                    Rights
                      Under the Plan

                  	
                    9

                  
	
                    8.3

                  	
                    Effect
                      on Employment

                  	
                    10

                  
	
                    8.4

                  	
                    Successors;
                      Governing Law

                  	
                    10

                  
	
                    8.5

                  	
                    Assumption
                      of Liabilities From Predecessor Plan

                  	
                    10

                  
	
                     

                  	 	 
	
                    Appendix
                      A

                  	
                     Provisions
                      Applicable to a Pre-2005 Supplemental Benefit

                  	
                    11

                  

          

          
            
              i

            

            
              
              

              
                

              

            

            
              
              

            

            CarMax,
              Inc.

            Benefit
              Restoration Plan

            As
              Amended and Restated January 1, 2008

          

      

      

       

      Introduction

      

      The
        provisions of this CarMax, Inc.
        Benefit Restoration Plan (the “Plan”) were originally effective October 1,
        2002.  The Plan has been amended and restated from time to time since
        that date.  This amendment and restatement is effective January 1,
        2008.

      

      Since
        January 1, 2005, the Plan has
        been operated in good faith compliance with the requirements of Section 409A
        of
        the Code.  Effective January 1, 2005, the Plan is amended to conform
        the written terms of the Plan to the requirements of Section 409A of the
        Code.  These amendments apply solely to amounts accrued on and after
        January 1, 2005, plus any amounts accrued prior to January 1, 2005, that
        are not earned and vested as of December 31, 2004.  Appendix A
        attached hereto describes the rules that apply under prior law to amounts
        accrued prior to January 1, 2005, that are earned and vested as of December
        31,
        2004, and which shall remain subject to the terms of the Plan as in effect
        on
        December 31, 2004.

      

      

      Section I

      Purpose
        of the Plan

       

      

      1.1           Purpose.  CarMax,
        Inc. (the “Company”) maintains the Plan to provide deferred compensation for
        certain key employees of the Company and its Affiliated Companies who are
        expected to contribute significantly to the growth of the Company and its
        Affiliated Companies.  The Board of Directors of the Company (the
“Board”) has determined that the benefits to be provided under the Plan are
        reasonable and appropriate compensation for the services rendered and to
        be
        rendered.

       

      1.2           Structure.  This
        Plan provides benefits as set forth in Sections III, IV and V for a select
        group
        of management or highly compensated employees (and their Beneficiaries) whose
        compensation is in excess of the limit on compensation under Section 401(a)(17)
        of the Code, or whose benefits are limited under the Pension Plan by the
        maximum
        benefit limit under Section 415 of the Code.

       

      1.3           Definitions.  Whenever
        used in the Plan, the following terms shall have the meanings set forth
        below.

       

      (a)           Affiliated
        Company means any company or business organization that is under
        common control with the Company and that has adopted the Pension Plan as
        a
        Related Company.

       

      (b)           Benefit
        Commencement Date means, for a distribution of a Participant’s or
        Beneficiary’s Post-2004 Supplemental Benefit which begins on or after January 1,
        2008, the first day of the month following the month in which the Participant
        terminates

       

      
        
          
          

        

        
          1

          
            

          

        

        CarMax,
          Inc.

        Benefit
          Restoration Plan

        As
          Amended and Restated January 1, 2008

      

      employment
        with the Company or an Affiliated Company provided that such Participant
        has
        satisfied the requirements for Early or Normal Retirement under the Pension
        Plan.

       

      (c)           Code
        means the Internal Revenue Code of 1986, as amended.

       

      (d)           Effective
        Date means October 1, 2002, which is the original effective date
        of the Plan.

       

      (e)           Key
        Employee means a Participant who, as of December 31 of any
        calendar year, satisfies the requirements of Section 416(i)(1)(A)(i), (ii)
        or
        (iii) of the Code (applied in accordance with the Treasury Regulations
        thereunder and disregarding Section 416(i)(5) of the Code).  Such
        Participant will be considered a Key Employee for purposes of the Plan for
        the
        12-month period commencing on the next following April 1.

       

      (f)           Maximum
        Benefit means the maximum annual Supplemental Benefit payable from
        the Plan as determined under Section 3.4.

       

      (g)           Participant
        means an individual who is eligible to participate in the Plan under Section
        II.

       

      (h)           Pension
        Plan means the CarMax, Inc. Pension Plan as in effect from time
        to
        time.

       

      (i)           Post-Retirement
        Survivor Benefit means the benefit payable under the Plan to a
        Beneficiary of a Participant as determined under Section 5.2 or Appendix
        A
        Section 6, as applicable.

       

      (j)           Post-2004
        Supplemental Benefit means the portion of a Participant’s
        Supplemental Benefit accrued on and after January 1, 2005, plus amounts accrued
        prior to January 1, 2005, that are not earned and vested as of December 31,
        2004.

       

      (k)           Pre-Retirement
        Survivor Benefit means the benefit payable under the Plan to a
        surviving Spouse of a Participant as determined under Section 5.1 or Appendix
        A
        Section 5, as applicable.

       

      (l)           Supplemental
        Benefit means the benefit payable under the Plan as determined by
        Section 3.2, subject to adjustments as provided in the Plan.  A
        Participant’s Supplemental Benefit includes his or her Pre-2005 Supplemental
        Benefit (as determined in Appendix A) and Post-2004 Supplemental
        Benefit.

       

      (m)           Tax
        Limits means both (i) the limit on compensation under Section
        401(a)(17) of the Code (as adjusted from time to time under the terms of
        the
        Pension Plan), and (ii) the maximum benefit limit under Section 415(b)(1)(A)
        of
        the Code (as adjusted from time to time under the terms of the Pension
        Plan).

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

        CarMax,
          Inc.

        Benefit
          Restoration Plan

        As
          Amended and Restated January 1, 2008

      

      

       

      The
        following terms shall have the meanings provided in the Pension
        Plan:  Actuarial Equivalent, Alternate Payee, Beneficiary, Benefit
        Service, Disability Pension, Early Retirement Date, Joint and Survivor Annuity
        Option, Normal Retirement Date, Period Certain and Continuous Option, Permanent
        Disability, Plan Year, Qualified Domestic Relations Order, Qualified Joint
        and
        Survivor Annuity, Qualified Pre-Retirement Survivor Annuity, Related Company,
        Single Life Annuity and Spouse.

       

       

      Section II

      Eligibility

       

      

      2.1           Eligible
        Employees.  Each participant in the Pension Plan who is an
        employee of the Company or an Affiliated Company on or after the Effective
        Date,
        and whose retirement benefits under the Pension Plan are limited by either
        or
        both of the Tax Limits, shall be a Participant.   In addition,
        any participant in the Pension Plan who had a benefit under the Circuit City
        Stores, Inc. Benefit Restoration Plan as of the Effective Date that is assumed
        under Section 8.5 shall become a Participant as of the Effective
        Date.

       

      2.2           Participation.  A
        Participant shall commence participation in the Plan on the later of the
        Effective Date or the first day of the Plan Year beginning after the
        Participant’s future retirement benefits under the Pension Plan are limited by
        either or both of the Tax Limits.  An individual shall cease to be a
        Participant when the individual’s future retirement benefits under the Pension
        Plan are no longer limited by either of the Tax Limits and when the individual
        and his or her Beneficiary have received all benefits payable under the
        Plan.

       

      2.3           No
        Duplication of Benefits.  All benefits described in the Plan are
        subject to the provisions of Section 3.4.  Notwithstanding anything in
        the Plan to the contrary, there shall be no duplication of benefits under
        this
        Plan and the Pension Plan.

       

      

      Section III

      Benefits

       

      

      3.1           Minimum
        Service Requirement.  To be eligible to receive a Supplemental
        Benefit, a Participant must (i) meet one or more of the criteria described
        in
        Section 3.1(a), (b) and (c), below; and (ii) for distributions which begin
        on or
        after January 1, 2008, terminate from employment with the Company and any
        Affiliated Company after satisfying the requirements for Early or Normal
        Retirement under the Pension Plan.  The criteria are:

       

      
        (a)           A
          Participant must have completed fifteen (15) years of Benefit Service at
          termination of employment with the Company or an Affiliated Company (any
          Benefit
          Service credited after termination of employment during a period of Permanent
          Disability also shall be included in years of Benefit Service for this
          purpose),

      

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

        CarMax,
          Inc.

        Benefit
          Restoration Plan

        As
          Amended and Restated January 1, 2008

      

       

      (b)           A
        Participant must have (i) reached his or her Early Retirement Date at the
        date
        of termination of employment with the Company or an Affiliated Company or
        (ii)
        reached his or her Early Retirement Date and have had a continuous Permanent
        Disability from the date of termination of employment until the Early Retirement
        Date, or

       

      (c)           A
        Participant must have (i) reached his or her Normal Retirement Date at the
        date
        of termination of employment with the Company or an Affiliated Company or
        (ii)
        reached his or her Normal Retirement Date and have had a continuous Permanent
        Disability from the date of termination of employment until the Normal
        Retirement Date.

       

      

       

      3.2           Supplemental
        Benefit.  The Participant shall receive a Supplemental Benefit
        under this Plan equal to the amount (if any) determined as follows:

       

      (a)           The
        retirement benefit that would have been paid from the Pension Plan (i) had
        the
        Participant’s benefit not been limited by the Tax Limits and (ii) additionally
        if applicable, had the Participant actually earned any Benefit Service imputed
        under Section 3.5,

       

      reduced
        by

       

      (b)           The
        total retirement benefit that is payable to the Participant under the Pension
        Plan.

       

      3.3           Adjustment
        for Early or Late Commencement.  If a Supplemental Benefit
        commences before the Participant’s Normal Retirement Date, the benefit under
        Section 3.2(a) shall be calculated in accordance with any early retirement
        reduction provided under the Pension Plan.  If a Supplemental Benefit
        commences after a Participant’s Normal Retirement Date, the benefit under
        Section 3.2(a) shall be calculated in accordance with the provisions of the
        Pension Plan for benefits commencing after Normal Retirement Date.  If
        a Supplemental Benefit commences when a Participant starts a Disability Pension
        under the Pension Plan, the benefit under Section 3.2(a) shall be calculated
        by
        including Benefit Service during the period of Permanent Disability in
        accordance with the provisions of the Pension Plan for a Disability
        Pension.

       

      3.4           Maximum
        Benefit.

       

      
        (a)           Notwithstanding
          any other provision of the Plan to the contrary, the annual Supplemental
          Benefit
          payable to a Participant under this Plan shall not exceed (i) the Maximum
          Benefit reduced by (ii) the total annual benefit that is payable to the
          Participant under the Pension Plan.  The Maximum Benefit is based on
          the payment of the Supplemental Benefit as a single life annuity (with
          no
          ancillary benefits).  If benefits are payable in any other form, the
          Maximum Benefit shall be actuarially adjusted to be the Actuarial Equivalent
          of
          the Maximum Benefit payable as a single life annuity (with no ancillary
          benefits).

      

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

        CarMax,
          Inc.

        Benefit
          Restoration Plan

        As
          Amended and Restated January 1, 2008

      

       

      (b)           The
        Maximum Benefit is an annual amount equal to $400,000, as adjusted
        below.  The Maximum Benefit shall be subject to increase in the same
        percentage as the dollar limit is adjusted under Section 415(d)(1)(A) of
        the
        Code from time to time.  The adjustment will be made effective as of
        each January 1 beginning with January  1, 2006, based on the
        percentage adjustment applicable to that calendar year.  If no
        adjustment is made under Section 415(d)(1)(A) of the Code for a calendar
        year,
        there shall be no adjustment in the Maximum Benefit for that year.  In
        addition, the Maximum Benefit shall be proportionately adjusted for increases
        in
        the statutory maximum dollar limit under Section 415(b)(1)(A) of the
        Code.  The Maximum Benefit is not actuarially increased or decreased
        if the Participant commences payments other than at Normal Retirement
        Date.

       

      (c)           A
        Participant’s Maximum Benefit shall be determined as of the commencement of
        payment of the Supplemental Benefit to the Participant and shall not be subject
        to future adjustment.  The Supplemental Benefit shall not be reduced
        if additional benefits become payable from the Pension Plan for any
        reason.  A Participant’s Supplemental Benefit shall not be increased
        if the Maximum Benefit is increased under Section 3.4(b) after the commencement
        of payments under the Plan.

       

      3.5           Additional
        Benefit Service.  At its discretion, the Board of Directors or the
        Compensation and Personnel Committee of the Board may provide that any
        Participant shall be credited with additional imputed Benefit Service for
        purposes of Section 3.2(a).  The Board or Compensation and Personnel
        Committee shall have complete discretion to determine the amount of additional
        Benefit Service to be imputed and any other terms and conditions of the
        additional service crediting.   Any imputed Benefit Service shall
        be treated the same as actual Benefit Service for purposes of this
        Plan.

       

       

      Section IV

      Computation
        and Payment of Supplemental Benefit

       

       

      4.1           Computation.  The
        amount of the Supplemental Benefit described in Section III will initially
        be
        determined by assuming that the benefits payable under this Plan and the
        Pension
        Plan are paid in the form of a Single Life Annuity payable for the Participant’s
        lifetime, beginning on the date on which payments actually begin to be made
        to
        the Participant from the Plan assuming that payments have begun under the
        Pension Plan and ending at the Participant’s death.

       

      4.2           Payment.  This
        Section 4.2 governs the payment of a Participant’s Post- 2004 Supplemental
        Benefit, distribution of which begins on or after January 1, 2008.

       

      (a)           A
        Participant’s Supplemental Benefit governed by this Section 4.2 will be paid or
        begin to be paid on the Participant’s Benefit Commencement Date, in the form
        elected by the Participant, except as provided in Section 4.3
        below.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
            CarMax,
              Inc.

            Benefit
              Restoration Plan

            As
              Amended and Restated January 1, 2008

          

        

      

       

      (b)           The
        Supplemental Benefit described in Section III will be actuarially adjusted,
        using the actuarial assumptions then in effect under the Pension
        Plan.  A Participant must make an election under this Section 4.2
        either (i) in 2007 or (ii) if not made in 2007, within 30 days following
        the
        first day of the Plan Year after the Plan Year in which he or she first becomes
        a Participant.

       

      (c)           A
        Participant may elect from the following forms of benefit, which shall be
        payable on the first day of each month during the distribution
        period:  (i) a Qualified Joint and Survivor Annuity; (ii) a Single
        Life Annuity; (iii) a Period Certain and Continuous Option with 60, 120 or
        180
        monthly payments guaranteed; (iv) a Joint and Survivor Annuity Option (with
        a
        100%, 75% or 50% survivor benefit); or (v) a single lump sum.  Absent
        an election, the Participant’s Supplemental Benefit shall be paid in the form of
        a Qualified Joint and Survivor Annuity if the Participant is married on his
        Benefit Commencement Date or, if the Participant is unmarried on his Benefit
        Commencement Date, in the form of a Single Life Annuity.

       

      (d)           A
        Participant may change his or her election made pursuant to Section 4.2(a)
        and
        (b) above, provided, however, that if such change is regarded as a change
        in
        time and form of payment for purposes of Code Section 409A and Treasury
        Regulations Section 1.409A-2(b)(2)(ii) (relating to life annuities), such
        change
        may not take effect until at least 12 months after the date on which the
        election is made and the payment with respect to which such election is made
        must be deferred for a period not less than five years from the date the
        payment
        would otherwise be made.  For purposes of this election, the payments
        under the annuity forms of payment are deemed to be a single
        payment.

       

      4.3           Payments
        to Key Employees.  Payment of the Post-2004 Supplemental Benefit
        of a Participant who is a Key Employee on his termination of employment shall
        commence on the first day of the month following the six-month anniversary
        of
        the Key Employee’s termination of employment.  The initial payment
under
        the
        preceding sentence shall include amounts that would have been paid prior
        to the
        initial payment had the Participant not been a Key Employee.

       

      

      Section V

      Computation
        and Payment of Survivor Benefit

       

      

      5.1           Pre-Retirement
        Survivor Benefit.  A Pre-Retirement Survivor Benefit shall be
        payable to the surviving Spouse of a Participant if (i) the Participant had
        at
        least ten years of Benefit Service at death, and (ii) the Participant’s
        surviving Spouse is entitled to a Qualified Pre-Retirement Survivor Annuity
        under the Pension Plan.

       

      (a)           The
        Spouse will be entitled to receive a Pre-Retirement Survivor Benefit from
        this
        Plan equal to the amount (if any) determined as follows:

       

      
        
          
          

        

        
          6

          
            

          

        

        
           
            
            CarMax,
              Inc.

            Benefit
              Restoration Plan

            As
              Amended and Restated January 1, 2008

          

        

      

       

      (i)           The
        survivor benefit that would have been payable to the Spouse under the Pension
        Plan had the Participant’s Supplemental Benefit (as adjusted under Sections 3.3
        and 3.4) and benefit from the Pension Plan been paid entirely from the Pension
        Plan,

       

      reduced
        by

       

      (ii)           The
        total survivor benefit that is payable to the Spouse under the Pension
        Plan.

       

      (b)           A
        Pre-Retirement Survivor Benefit distribution which begins on or after January
        1,
        2008, shall be payable in the form of the survivor portion of a 50% Joint
        and
        Survivor Annuity Option, calculated immediately prior to Participant’s death,
        and commencing on the later of (i) the first day of the month following what
        would have been the Participant’s Early Retirement Date under the Pension Plan
        or (ii) the first day of the second month following the month of Participant’s
        death; provided that the Pre-Retirement Survivor Benefit calculated under
        this
        sentence shall be the Actuarial Equivalent of the benefit described in Section
        5.1.

       

      5.2           Post-Retirement
        Survivor Benefit.  A Post-Retirement Benefit shall be payable with
        respect to the Post-2004 Supplemental Benefit of a Participant with a Benefit
        Commencement Date on or after January 1, 2008.

       

      (a)           A
        Post-Retirement Survivor Benefit shall be payable under this Section to the
        surviving Beneficiary of a Participant who elects a form of benefit under
        the
        Plan that provides for a survivor benefit.  The amount of the benefit
        shall be the Actuarial Equivalent of (i) minus the sum of (ii) plus (iii)
        below
        where:

       

      (i)           equals
        the survivor benefit that would have been payable to the Beneficiary under
        the
        Pension Plan had the Participant’s Supplemental Benefit (as adjusted under
        Sections 3.3 and 3.4) and the benefit from the Pension Plan been paid entirely
        from the Pension Plan, less the sum of

       

      (ii)           the
        total survivor benefit that is payable to the Beneficiary under the Pension
        Plan, plus

       

      (iii)           the
        total survivor benefit that is payable to a Beneficiary under Section 5.1
        above.

       

      (b)           A
        Post-Retirement Survivor Benefit is payable under this Section to a Beneficiary
        designated by the Participant under an election made in accordance with Section
        4.2.

       

      5.3           Actuarial
        Assumptions.  The actuarial assumptions used for purposes of the
        Pension Plan will be used to determine the benefits payable under this
        Plan.

       

       

      
        
          
          

        

        
          7

          
            

          

        

        
           
            
            CarMax,
              Inc.

            Benefit
              Restoration Plan

            As
              Amended and Restated January 1, 2008

          

        

      

       

      5.4           Medium
        of Payment.  The Pre-Retirement Survivor Benefit and
        Post-Retirement Survivor Benefit will be paid in cash or a cash
        equivalent.

       

       

      Section VI

      Administration

       

      

      6.1           Amendment
        and Termination. The Board of the Company may amend or terminate the Plan at
        any time; provided, however, that no amendment or termination of the Plan
        shall
        reduce a Participant’s accrued benefit under the Plan as of the date of the
        amendment or termination.  For this purpose, a Participant’s accrued
        benefit under the Plan shall be computed based on the formulas in this Plan
        and
        his accrued benefits under the Pension Plan as of the date of the
        computation.  Any termination of the Plan will be carried out in
        accordance with Section 409A of the Code and Treasury Regulations and other
        guidance thereunder.

       

      6.2           Plan
        Administrator.  The Plan shall be administered by the Compensation
        and Personnel Committee of the Board (the “Plan Administrator”).  The
        decisions of the Plan Administrator shall be final and binding on all
        persons.  The Plan Administrator will have the express discretionary
        authority to interpret and administer the Plan, and to make all decisions
        with
        respect to the interpretation and administration of the Plan.  No
        benefit shall be paid under this Plan unless the Plan Administrator determines
        in its discretion that a Participant or Beneficiary is entitled to the
        benefit.

       

      6.3           Claims
        Procedure.  Each Participant or Beneficiary of a deceased Participant
        shall be entitled to file with the Plan Administrator a written claim for
        benefits under the Plan.  The Plan Administrator shall review and act
        on the claim in accordance with the requirements of the Employee Retirement
        Income Security Act of 1974, as amended, and Department of Labor Regulations
        thereunder.

       

      6.4           Qualified
        Domestic Relations Orders.  If the Plan Administrator receives a
        Qualified Domestic Relations Order requiring the payment of a Participant’s
        Supplemental Benefit under this Plan to a person other than the Participant,
        the
        Plan Administrator shall take the following steps:

       

      (a)           If
        benefits are in pay status, the Plan Administrator shall account separately
        for
        the amounts that will be payable to the Alternate Payee.

       

      (b)           The
        Plan Administrator shall promptly notify the named Participant and the Alternate
        Payee of the receipt of the Qualified Domestic Relations Order.

       

      (c)           The
        Plan Administrator shall pay the specified amounts to the Alternate Payee
        pursuant to the Order; provided, however, that the Plan Administrator may
        distribute or cause to be distributed in a single lump sum to the Alternate
        Payee the Actuarial Equivalent of the Alternate Payee’s Pre-2005 Supplemental
        Benefit under this Plan.

       

      

      
        
          
          

        

        
          8

          
            

          

        

        
           
            
            CarMax,
              Inc.

            Benefit
              Restoration Plan

            As
              Amended and Restated January 1, 2008

          

        

      

       

      Section VII

      Change
        of Control

       

      

      7.1           Effect
        of Change of Control.  Immediately prior to a Change of Control as
        defined in Section 7.2, the Company shall immediately fund the CarMax, Inc.
        Benefit Restoration Plan Trust (the “Trust”) with an amount equal to the then
        Actuarial Equivalent of the present value of the Supplemental Benefits of
        all
        Participants and the survivor benefits of all Beneficiaries payable as a
        single
        lump sum payment.  The Trust shall be funded with cash or cash
        equivalents other than stock of the Company.

       

      7.2           Definition
        of Change of Control.  “Change of Control” means the occurrence of
        either of the following events: (i) a third person, including a “group” as
        defined in Section 13(d)(3) of the Securities Exchange Act of 1934, as amended,
        becomes, or obtains the right to become, the beneficial owner 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.

      

       

      Section VIII

      Miscellaneous

       

      

      8.1           Tax
        Matters.  The Company does not represent or guarantee that any
        particular federal state or local income or payroll tax consequence will
        result
        to any Participant, Beneficiary or Alternate Payee under this
        Plan.  The Company has the right to withhold from any benefit payments
        to any person under this Plan or take other actions necessary to satisfy
        the
        Company’s obligation to withhold federal, state and local income and payroll
        taxes.

       

      8.2           Rights
        Under the Plan.  This Plan is an unfunded deferred compensation
        plan.  Title to and beneficial ownership of all benefits described in
        the Plan shall at all times remain with the Company.  Participation in
        the Plan and the right to receive payments under the Plan shall not give
        a
        Participant or Beneficiary any proprietary interest in the Company or any
        of its
        assets.  Benefits under the Plan shall be payable from the general
        assets of the Company. Subject to Section 7.1, no trust fund may be created
        in
        connection with the Plan (other than a trust that, under applicable law,
        does
        not affect the characterization of this Plan as an unfunded plan), and there
        shall be no required funding of amounts that may become payable under the
        Plan.  A Participant and his Beneficiary shall, for all purposes, be
        general creditors of the Company.  The interest of a Participant and
        his Beneficiary in the Plan cannot be assigned, anticipated, sold, encumbered
        or
        pledged and shall not be subject to the claims of their creditors.

       

      
        
          
          

        

        
          9

          
            

          

        

        
           
            
            CarMax,
              Inc.

            Benefit
              Restoration Plan

            As
              Amended and Restated January 1, 2008

          

        

      

       

      8.3           Effect
        on Employment.  The Plan will not affect the right of the Company
        or an Affiliated Company to terminate an employee’s employment at any
        time.  Benefits payable under the Plan will not be considered
        compensation for purposes of other retirement or benefit plans maintained
        by the
        Company or an Affiliated Company.

       

      8.4           Successors;
        Governing Law.  The Plan is binding on the Company and its
        successors and assigns and on Participants and their Beneficiaries, successors,
        estates, and distributees.  The Plan will be administered according to
        the laws of the Commonwealth of Virginia.

       

      8.5           Assumption
        of Liabilities From Predecessor Plan.  As of the Effective Date,
        the Plan shall assume all of the liabilities of the Circuit City Stores,
        Inc.
        Benefit Restoration Plan with respect to any Participant in the
        Plan.  In addition, if any individual became an employee of the
        Company or an Affiliated Company before March 1, 2003 who has or had an accrued
        benefit under the Circuit Stores, Inc. Benefit Restoration Plan, the Plan
        shall
        assume all of the liabilities of the Circuit City Stores, Inc. Benefit
        Restoration Plan with respect to the individual as of the date of hire by
        the
        Company or an Affiliated Company.

       

      WITNESS
        the following signature as of the Effective Date.

       

      
        
          	 	 
                  
                  CARMAX,
                    INC.

                
	 	 
	 	 
	 	
                  By:
                    /s/ Keith D. Browning

                
	 	 
	 	
                  Keith
                    D. Browning

                
	 	
                  Executive
                    Vice President

                
	 	
                  &
                    Chief Financial
                    Officer

                

        

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

        CarMax,
          Inc.

        Benefit
          Restoration Plan

        As
          Amended and Restated January 1, 2008

      

      

      Appendix
        A

      Provisions
        Applicable to a Pre-2005 Supplemental Benefit

       

      

      The
        provisions of this Appendix A contain special rules that apply to amounts
        accrued prior to January 1, 2005, that are earned and vested as of December
        31,
        2004, and which shall remain subject to the terms of the Plan as in effect
        on
        December 31, 2004, particularly with respect to the time and form of benefit
        payments.  All other provisions of the Plan continue to apply to such
        benefits.

      

      1.           Definitions.                                For
        purposes of this Appendix, the following terms apply:

      

      Pre-2005
        Supplemental Benefit means the portion of a Participant’s
        Supplemental Benefit accrued prior to January 1, 2005, that is earned and
        vested
        as of December 31, 2004.

       

      2.           Minimum
        Service Requirements.  To be eligible to receive a Supplemental
        Benefit, a Participant must (i) meet one or more of the criteria described
        in
        Plan Section 3.1(a), (b) and (c), and (ii) for distributions commencing under
        the Plan on or before December 31, 2007, commence benefits under the Pension
        Plan.

      

      3.           Payment.  This
        Section governs the payment of (i) a Participant’s entire Supplemental Benefit,
        distribution of which began on or before December 31, 2007 and (ii) a
        Participant’s Pre-2005 Supplemental Benefit, distribution of which begins on or
        after January 1, 2008.

      

      (a)           The
        amount of the Supplemental Benefit described in this Appendix A will initially
        be determined by assuming that the benefits payable under this Plan and the
        Pension Plan are paid in the form of a Single Life Annuity payable for the
        Participant’s lifetime, beginning on the date on which payments actually begin
        to be made to the Participant from the Pension Plan and ending at the
        Participant’s death.

      

      (b)           A
        Participant’s Supplemental Benefit governed by this Appendix A Section 3 will be
        paid at the same time and in the same form of payment as benefits for the
        Participant under the Pension Plan, except as provided in Appendix A Section
        4.  If the benefit governed by this Section is to be paid in a form
        other than the single life annuity form described above, the Supplemental
        Benefit described in Plan Section 3.2 will be actuarially adjusted, using
        the
        actuarial assumptions then in effect under the Pension Plan.

      

      (c)           Except
        as provided in Appendix A Section 4, a Participant’s Supplemental Benefit
        governed by this Section will begin to be paid on the date on which the
        Participant begins receiving benefits under the Pension Plan and will be
        paid in
        cash or a cash equivalent.

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

        CarMax,
          Inc.

        Benefit
          Restoration Plan

        As
          Amended and Restated January 1, 2008

      

      

      

      4.           Distribution
        of Accrued Benefit

       

      (a)           Notwithstanding
        anything in the Plan to the contrary, the Company may distribute, or cause
        to be
        distributed in a single lump sum, to a Participant (or, after his death,
        to his
        Beneficiary) the Actuarial Equivalent of the Pre-2005 Supplemental Benefit
        of
        the Participant (or Beneficiary) under the Plan as of a specified
        date.  The distribution may be made at any time deemed appropriate by
        the Company.  The lump sum shall be distributed in cash or a cash
        equivalent.  The Company shall indicate in writing that the
        distribution is intended to be a distribution of the Participant’s (or
        Beneficiary’s) accrued benefit under the Plan.  The Company may take
        into account the tax consequences of the distribution when computing the
        amount
        to be distributed under this Section.

       

      (b)           After
        a distribution under this Section, the Company shall have no further liability
        with respect to the Pre-2005 Supplemental Benefit.  The Company has
        the sole discretion to determine when and if a distribution is to be made
        under
        this Section, and to determine the amount of any distribution, and no
        Participant or Beneficiary shall have any right to receive a distribution
        under
        this Section.

       

      5.           Pre-Retirement
        Survivor Benefit.  A Pre-Retirement Survivor Benefit distribution
        of which begins on or before December 31, 2007, is payable in the same form
        and
        at the same time as the survivor benefit is payable under the Pension Plan,
        including benefit forms that may provide payments after the death of the
        surviving Spouse.

       

      6.           Post-Retirement
        Survivor Benefit.  This Section applies to payments with respect
        to a Participant’s entire Supplemental Benefit, distribution of which began on
        or before December 31, 2007, and with respect to a Participant’s Pre-2005
        Supplemental Benefit, distribution of which begins on or after January 1,
        2008.  A Post-Retirement Survivor Benefit shall be payable to the
        surviving Beneficiary of a Participant if (i) the Participant is receiving
        a
        form of benefit under the Pension Plan that provides for a survivor benefit,
        and
        (ii) a survivor benefit is payable to the Beneficiary under the Pension
        Plan.

       

      (a)           The
        Beneficiary will be entitled to receive a Post-Retirement Survivor Benefit
        from
        this Plan equal to the amount (if any) determined as follows:

       

      (i)           The
        survivor benefit that would have been payable to the Beneficiary under the
        Pension Plan had the Participant’s Supplemental Benefit (as adjusted under
        Sections 3.3 and 3.4) and benefit from the Pension Plan been paid entirely
        from
        the Pension Plan,

       

      reduced
        by

       

       

      
        
          
          

        

        
          12

          
            

          

        

        
           
            
            CarMax,
              Inc.

            Benefit
              Restoration Plan

            As
              Amended and Restated January 1, 2008

          

        

      

       

      (ii)           The
        total survivor benefit that is payable to the Beneficiary under the Pension
        Plan.

       

       

      (b)           A
        Post-Retirement Survivor Benefit under this Section is payable to a surviving
        Spouse, any other Beneficiary of a Participant who is receiving a survivor
        benefit under the Pension Plan.

       

      (c)           A
        Post-Retirement Survivor Benefit under this Section is payable in the same
        form
        and at the same time as the survivor benefit is payable under the Pension
        Plan.

      

      

      

13Exhibit 10.1

Exhibit 10.1

AMENDMENT NO. 1 to

AGREEMENT AND PLAN OF MERGER

THIS AMENDMENT NO. 1 to AGREEMENT AND PLAN OF MERGER made as of the 16th day of April, 2007 (the “Merger Agreement”)

AMONG:

SK3 GROUP, INC. (formerly CTT INTERNATIONAL DISTRIBUTORS INC.), a corporation formed pursuant to the laws of the State of Delaware and having an office for business located at 500 Mamaroneck Ave., Harrison, New York 10528

(“SK3”)

AND:

RELIABLECOM ACQUISITION CORP., a body corporate formed pursuant to the laws of the State of Delaware and a wholly owned subsidiary of SK3 and having an office for business located at 500 Mamaroneck Ave., Harrison, New York 10528

AND:

RELIABLECOM, INC., a body corporate formed pursuant to the laws of the State of Delaware and having an office for business located at 500 Mamaroneck Ave., Harrison, New York 10528

AND:

KAPADIA HOLDINGS, INC., a body corporate formed pursuant to the laws of the State of Delaware and having an office for business located at 500 Mamaroneck Ave., Harrison, New York 10528

Section 7.6 of the Merger Agreement is hereby amended to read in its entirety as follows: 

7.6

Notwithstanding any provision herein to the contrary, if the Closing does not occur on or before July 31, 2007, this Agreement will be at an end and will have no further force or effect, unless otherwise agreed upon by the parties in writing.

All other terms and conditions of the Merger Agreement remain in full force and effect and this agreement shall be governed by all other terms contained therein.

 [Remainder of page intentionally left blank.]

- 2 -

IN WITNESS WHEREOF the parties have executed this Agreement effective as of June 26, 2007.

                        SK3 GROUP, INC.

By: /s/ SAJID KAPADIA

 

Sajid Kapaida, President

RELIABLECOM ACQUISITION CORP.

By: /s/ SAJID KAPADIA

 

Sajid Kapaida, President

RELIABLECOM, INC.

By: /s/ SAJID KAPADIA

 

Sajid Kapaida, President

KAPADIA HOLDINGS, INC.

By: /s/ SAJID KAPADIA

 

Sajid Kapaida, President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]