Document:

Indenture

  
 EXHIBIT 4.2
- INDENTURE 
  
 [EXECUTION COPY] 
  
 CARMAX AUTO OWNER TRUST 2005-1, 
 as Issuer, 
  
 and 
  
 WELLS
FARGO BANK, NATIONAL ASSOCIATION, 
 as Indenture Trustee 
  

  
 INDENTURE 
 Dated as of April 1, 2005 
  

  
 $103,000,000 3.1396% Class
A-1 Asset-Backed Notes 
 $204,000,000 3.78% Class A-2 Asset-Backed Notes 
 $167,000,000 4.13% Class A-3 Asset-Backed Notes 
 $101,352,000 4.35% Class A-4
Asset-Backed Notes 
 $20,053,000 4.57% Class B Asset-Backed Notes 
 $21,595,000 4.82% Class C Asset-Backed Notes 
  

 CROSS REFERENCE TABLE (1) 
  

					
	TIA
Section

	  	 	  	Indenture
Section

	310	  	 (a)(1)
	  	6.11
	 	  	 (a)(2)
	  	6.11
	 	  	 (a)(3)
	  	6.10
	 	  	 (a)(4)
	  	N.A.
	 	  	 (a)(5)
	  	6.11
	 	  	 (b)
	  	6.8;6.11
	 	  	 (c)
	  	N.A.
	311	  	 (a)
	  	6.12
	 	  	 (b)
	  	6.12
	 	  	 (c)
	  	N.A.
	312	  	 (a)
	  	7.1
	 	  	 (b)
	  	7.2
	 	  	 (c)
	  	7.2
	313	  	 (a)
	  	7.4
	 	  	 (b)(1)
	  	7.4
	 	  	 (b)(2)
	  	7.4;11.5
	 	  	 (c)
	  	7.4
	 	  	 (d)
	  	7.3
	314	  	 (a)
	  	7.3
	 	  	 (b)
	  	11.15
	 	  	 (c)(1)
	  	11.1
	 	  	 (c)(2)
	  	11.1
	 	  	 (c)(3)
	  	11.1
	 	  	 (d)
	  	11.1
	 	  	 (e)
	  	11.1
	 	  	 (f)
	  	11.1
	315	  	 (a)
	  	6.1
	 	  	 (b)
	  	6.5;11.5
	 	  	 (c)
	  	6.1
	 	  	 (d)
	  	6.1
	 	  	 (e)
	  	5.13
	316	  	 (a)(last sentence)
	  	1.1
	 	  	 (a)(1)(A)
	  	5.11
	 	  	 (a)(1)(B)
	  	5.12
	 	  	 (a)(2)
	  	N.A.
	 	  	 (b)
	  	5.7
	 	  	 (c)
	  	N.A.
	317	  	 (a)(1)
	  	5.3
	 	  	 (a)(2)
	  	5.3
	 	  	 (b)
	  	3.3
	318	  	 (a)
	  	11.7

	(1)	Note: This Cross Reference Table shall not, for any purpose, be deemed to be part of this Indenture. 

  

	(2)	N.A. means Not Applicable. 

  

 i 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 ARTICLE I
 DEFINITIONS AND INCORPORATION BY REFERENCE

			
	 SECTION 1.1
	  	 Definitions
	  	2
	 SECTION 1.2
	  	 Incorporation by Reference of Trust Indenture Act
	  	11
	 SECTION 1.3
	  	 Rules of Construction
	  	11
	
	 ARTICLE II
 THE NOTES

			
	 SECTION 2.1
	  	 Form
	  	12
	 SECTION 2.2
	  	 Execution, Authentication and Delivery
	  	12
	 SECTION 2.3
	  	 Temporary Notes
	  	13
	 SECTION 2.4
	  	 Tax Treatment
	  	13
	 SECTION 2.5
	  	 Registration; Registration of Transfer and Exchange
	  	13
	 SECTION 2.6
	  	 Mutilated, Destroyed, Lost or Stolen Notes
	  	15
	 SECTION 2.7
	  	 Persons Deemed Owners
	  	16
	 SECTION 2.8
	  	 Payments
	  	16
	 SECTION 2.9
	  	 Cancellation
	  	20
	 SECTION 2.10
	  	 Release of Collateral
	  	21
	 SECTION 2.11
	  	 Book-Entry Notes
	  	21
	 SECTION 2.12
	  	 Notices to Clearing Agency
	  	22
	 SECTION 2.13
	  	 Definitive Notes
	  	22
	 SECTION 2.14
	  	 Authenticating Agents
	  	22
	
	 ARTICLE III
 COVENANTS

			
	 SECTION 3.1
	  	 Payment of Principal and Interest
	  	23
	 SECTION 3.2
	  	 Maintenance of Office or Agency
	  	23
	 SECTION 3.3
	  	 Money for Payments To Be Held in Trust
	  	23
	 SECTION 3.4
	  	 Existence
	  	25
	 SECTION 3.5
	  	 Protection of Trust Estate
	  	25
	 SECTION 3.6
	  	 Opinions as to Trust Estate
	  	25
	 SECTION 3.7
	  	 Performance of Obligations; Servicing of Receivables
	  	26
	 SECTION 3.8
	  	 Negative Covenants
	  	28
	 SECTION 3.9
	  	 Annual Statement as to Compliance
	  	28
	 SECTION 3.10
	  	 Issuer May Consolidate, etc., Only on Certain Terms
	  	29
	 SECTION 3.11
	  	 Successor or Transferee
	  	30
	 SECTION 3.12
	  	 No Other Business
	  	31
	 SECTION 3.13
	  	 No Borrowing
	  	31
	 SECTION 3.14
	  	 Servicer’s Obligations
	  	31
	 SECTION 3.15
	  	 Guarantees, Loans, Advances and Other Liabilities
	  	31

  

 i 

					
	 SECTION 3.16
	  	 Capital Expenditures
	  	31
	 SECTION 3.17
	  	 Restricted Payments
	  	31
	 SECTION 3.18
	  	 Notice of Events of Default
	  	31
	 SECTION 3.19
	  	 Removal of Administrator
	  	32
	 SECTION 3.20
	  	 Further Instruments and Acts
	  	32
	
	 ARTICLE IV
 SATISFACTION AND DISCHARGE

			
	 SECTION 4.1
	  	 Satisfaction and Discharge of Indenture
	  	32
	 SECTION 4.2
	  	 Satisfaction, Discharge and Defeasance of the Notes
	  	33
	 SECTION 4.3
	  	 Application of Trust Money
	  	34
	 SECTION 4.4
	  	 Repayment of Monies Held by Paying Agent
	  	34
	
	 ARTICLE V
 REMEDIES

			
	 SECTION 5.1
	  	 Events of Default
	  	34
	 SECTION 5.2
	  	 Acceleration of Maturity; Rescission and Annulment
	  	36
	 SECTION 5.3
	  	 Collection of Indebtedness and Suits for Enforcement by Indenture Trustee
	  	36
	 SECTION 5.4
	  	 Remedies; Priorities
	  	38
	 SECTION 5.5
	  	 Optional Preservation of the Receivables
	  	41
	 SECTION 5.6
	  	 Limitation of Suits
	  	41
	 SECTION 5.7
	  	 Unconditional Rights of Noteholders to Receive Principal and Interest
	  	42
	 SECTION 5.8
	  	 Restoration of Rights and Remedies
	  	42
	 SECTION 5.9
	  	 Rights and Remedies Cumulative
	  	42
	 SECTION 5.10
	  	 Delay or Omission Not a Waiver
	  	42
	 SECTION 5.11
	  	 Control by Noteholders of the Controlling Class
	  	42
	 SECTION 5.12
	  	 Waiver of Past Defaults
	  	43
	 SECTION 5.13
	  	 Undertaking for Costs
	  	43
	 SECTION 5.14
	  	 Waiver of Stay or Extension Laws
	  	44
	 SECTION 5.15
	  	 Action on Notes
	  	44
	 SECTION 5.16
	  	 Performance and Enforcement of Certain Obligations
	  	44
	
	 ARTICLE VI
 THE INDENTURE TRUSTEE

			
	 SECTION 6.1
	  	 Duties of Indenture Trustee
	  	45
	 SECTION 6.2
	  	 Rights of Indenture Trustee
	  	46
	 SECTION 6.3
	  	 Individual Rights of Indenture Trustee
	  	47
	 SECTION 6.4
	  	 Indenture Trustee’s Disclaimer
	  	47
	 SECTION 6.5
	  	 Notice of Defaults
	  	47
	 SECTION 6.6
	  	 Reports by Indenture Trustee to Holders
	  	48
	 SECTION 6.7
	  	 Compensation and Indemnity
	  	48
	 SECTION 6.8
	  	 Replacement of Indenture Trustee
	  	49
	 SECTION 6.9
	  	 Successor Indenture Trustee by Merger
	  	49

  

 ii 

					
	 SECTION 6.10
	  	 Appointment of Co-Indenture Trustee or Separate Indenture Trustee
	  	50
	 SECTION 6.11
	  	 Eligibility; Disqualification
	  	51
	 SECTION 6.12
	  	 Preferential Collection of Claims Against Issuer
	  	52
	 SECTION 6.13
	  	 Sales Finance Company Licenses
	  	52
	
	 ARTICLE VII
 NOTEHOLDERS’ LISTS AND REPORTS

			
	 SECTION 7.1
	  	 Issuer To Furnish Indenture Trustee Names and Addresses of Noteholders
	  	52
	 SECTION 7.2
	  	 Preservation of Information; Communications to Noteholders
	  	52
	 SECTION 7.3
	  	 Reports by Issuer
	  	53
	 SECTION 7.4
	  	 Reports by Indenture Trustee
	  	53
	
	 ARTICLE VIII
 ACCOUNTS, DISBURSEMENTS AND RELEASES

			
	 SECTION 8.1
	  	 Collection of Money
	  	54
	 SECTION 8.2
	  	 Trust Accounts
	  	54
	 SECTION 8.3
	  	 General Provisions Regarding Accounts
	  	55
	 SECTION 8.4
	  	 Release of Trust Estate
	  	55
	 SECTION 8.5
	  	 Opinion of Counsel
	  	56
	
	 ARTICLE IX
 SUPPLEMENTAL INDENTURES

			
	 SECTION 9.1
	  	 Supplemental Indentures Without Consent of Noteholders
	  	56
	 SECTION 9.2
	  	 Supplemental Indentures with Consent of Noteholders
	  	57
	 SECTION 9.3
	  	 Execution of Supplemental Indentures
	  	59
	 SECTION 9.4
	  	 Effect of Supplemental Indenture
	  	59
	 SECTION 9.5
	  	 Conformity with Trust Indenture Act
	  	59
	 SECTION 9.6
	  	 Reference in Notes to Supplemental Indentures
	  	59
	
	 ARTICLE X
 REDEMPTION OF NOTES

			
	 SECTION 10.1
	  	 Redemption
	  	60
	 SECTION 10.2
	  	 Form of Redemption Notice
	  	60
	 SECTION 10.3
	  	 Notes Payable on Redemption Date
	  	61
	
	 ARTICLE XI
 MISCELLANEOUS

			
	 SECTION 11.1
	  	 Compliance Certificates and Opinions, etc.
	  	61
	 SECTION 11.2
	  	 Form of Documents Delivered to Indenture Trustee
	  	62
	 SECTION 11.3
	  	 Acts of Noteholders
	  	63
	 SECTION 11.4
	  	 Notices, etc., to Indenture Trustee, Issuer and Rating Agencies
	  	64
	 SECTION 11.5
	  	 Notices to Noteholders; Waiver
	  	64

  

 iii 

					
	 SECTION 11.6
	  	 Alternate Payment and Notice Provisions
	  	65
	 SECTION 11.7
	  	 Conflict with Trust Indenture Act
	  	65
	 SECTION 11.8
	  	 Effect of Headings and Table of Contents
	  	65
	 SECTION 11.9
	  	 Successors and Assigns
	  	65
	 SECTION 11.10
	  	 Severability
	  	66
	 SECTION 11.11
	  	 Benefits of Indenture
	  	66
	 SECTION 11.12
	  	 Legal Holiday
	  	66
	 SECTION 11.13
	  	 GOVERNING LAW
	  	66
	 SECTION 11.14
	  	 Counterparts
	  	66
	 SECTION 11.15
	  	 Recording of Indenture
	  	66
	 SECTION 11.16
	  	 Trust Obligation
	  	66
	 SECTION 11.17
	  	 No Petition
	  	67
	 SECTION 11.18
	  	 Inspection
	  	67
	 SECTION 11.19
	  	 [RESERVED]
	  	67
	 SECTION 11.20
	  	 Third-Party Beneficiaries
	  	67
	
	EXHIBITS
			
	 EXHIBIT A-1
	  	 Form of Class A-1 Note
	  	 
	 EXHIBIT A-2
	  	 Form of Class A-2 Note
	  	 
	 EXHIBIT A-3
	  	 Form of Class A-3 Note
	  	 
	 EXHIBIT A-4
	  	 Form of Class A-4 Note
	  	 
	 EXHIBIT B
	  	 Form of Class B Note
	  	 
	 EXHIBIT C
	  	 Form of Class C Note
	  	 
	 EXHIBIT D
	  	 Form of Opinion of Counsel
	  	 

  

 iv 

  
 INDENTURE, dated as of April
1, 2005 (as amended, supplemented or otherwise modified and in effect from time to time, this “Indenture”), between CARMAX AUTO OWNER TRUST 2005-1, a Delaware statutory trust (the “Issuer”), and WELLS FARGO BANK,
NATIONAL ASSOCIATION, a national banking association, not in its individual capacity but solely as indenture trustee (in such capacity, the “Indenture Trustee”). 
  
 Each party agrees as follows for the benefit of the other party and for the equal and ratable benefit of the holders of the
Issuer’s 3.1396% Class A-1 Asset-Backed Notes (the “Class A-1 Notes”), 3.78% Class A-2 Asset-Backed Notes (the “Class A-2 Notes”), 4.13% Class A-3 Asset-Backed Notes (the “Class A-3 Notes”),
4.35% Class A-4 Asset-Backed Notes (the “Class A-4 Notes” and, collectively with the Class A-1 Notes, the Class A-2 Notes and the Class A-3 Notes, the “Class A Notes”), 4.57% Class B Asset-Backed Notes (the
“Class B Notes”) and 4.82% Class C Asset-Backed Notes (the “Class C Notes” and, collectively with the Class A Notes and the Class B Notes, the “Notes”): 
  
 GRANTING CLAUSE 
  
 The Issuer hereby Grants to the Indenture Trustee on the Closing Date, as Indenture Trustee for the benefit of the Holders
of the Notes, all of the Issuer’s right, title and interest in, to and under, whether now owned or existing or hereafter acquired or arising (i) the Receivables; (ii) all amounts received on or in respect of the Receivables after the Cutoff
Date; (iii) the security interests in the Financed Vehicles granted by the Obligors pursuant to the Receivables and any other interest of the Issuer in such Financed Vehicles; (iv) all proceeds from claims on or refunds of premiums with respect to
any physical damage, theft, credit life or credit disability insurance policies relating to the Financed Vehicles or the Obligors; (v) the Receivable Files; (vi) the Collection Account, the Note Payment Account, the Reserve Account and the Secondary
Reserve Account and all amounts, securities, financial assets, investments and other property deposited in or credited to any of the foregoing and all proceeds thereof; (vii) all rights of the Depositor under the Receivables Purchase Agreement,
including the right to require the Seller to repurchase Receivables from the Depositor; (viii) all rights of the Issuer under the Sale and Servicing Agreement, including the right to require the Servicer to purchase Receivables from the Issuer; (ix)
the right to realize upon any property (including the right to receive future Liquidation Proceeds) that shall have secured a Receivable and have been repossessed by or on behalf of the Issuer; and (x) all present and future claims, demands, causes
of action and choses in action in respect of any or all of the foregoing and all payments on or under and all proceeds of every kind and nature whatsoever in respect of any or all of the foregoing, including all proceeds of the conversion thereof,
voluntary or involuntary, into cash or other liquid property; all accounts, general intangibles, chattel paper, instruments, documents, money, investment property, deposit accounts, letters of credit, letter-of-credit rights, insurance proceeds,
condemnation awards, rights to payment of any and every kind and other forms of obligations; and all other property which at any time constitutes all or part of or is included in the proceeds of any of the foregoing (collectively, the
“Collateral”). 
  
 The foregoing Grant is made in
trust to secure the payment of principal of and interest on, and any other amounts owing in respect of, the Notes, equally and ratably without prejudice, priority or distinction, and to secure compliance with the provisions of this Indenture, all as
provided in this Indenture. 
  

 The Indenture Trustee, as Indenture Trustee on behalf of the Holders of the Notes, acknowledges such
Grant, accepts the trusts under this Indenture in accordance with the provisions of this Indenture and agrees to perform its duties required in this Indenture to the best of its ability to the end that the interests of the Holders of the Notes may
be adequately and effectively protected. 
  
 ARTICLE I 

DEFINITIONS AND INCORPORATION BY REFERENCE 
  
 SECTION 1.1 Definitions. 
  
 (a) Except as otherwise specified herein or as the context may otherwise require, the following terms shall have the respective meanings set forth below
for all purposes of this Indenture. 
  
 “Accrual
Period” shall mean (i) in the case of the Class A-1 Notes, each period from and including a Distribution Date to but excluding the following Distribution Date (or, in the case of the initial Accrual Period, the period from and including the
Closing Date to but excluding the initial Distribution Date) and (ii) in the case of the Class A-2 Notes, the Class A-3 Notes, the Class A-4 Notes, the Class B Notes and the Class C Notes, each period from and including the 15th day of a month to
but excluding the 15th day of the following month (or, in the case of the initial Accrual Period, the period from and including the Closing Date to but excluding May 16, 2005). 
  
 “Act” shall have the meaning specified in Section 11.3(a). 
  
 “Administration Agreement” shall mean the Administration
Agreement, dated as of April 1, 2005, among the Administrator, the Issuer and the Indenture Trustee, as amended, supplemented or otherwise modified and in effect from time to time. 
  
 “Administrator” shall mean CarMax, or any successor Administrator under the Administration Agreement.

  
 “Authenticating Agent” shall have the meaning
specified in Section 2.14. 
  
 “Authorized
Officer” shall mean, with respect to the Issuer, any officer of the Owner Trustee who is authorized to act for or on behalf of the Owner Trustee in matters relating to the Issuer and who is identified on the list of Authorized Officers
delivered by the Owner Trustee to the Indenture Trustee on the Closing Date (as such list may be modified or supplemented from time to time thereafter) and, for so long as the Administration Agreement is in full force and effect, any officer of the
Administrator who is authorized to act for the Administrator in matters relating to the Issuer and to be acted upon by the Administrator pursuant to the Administration Agreement. 
  
 “Book-Entry Notes” shall mean a beneficial interest in the Notes, ownership and transfers of which shall be
made through book entries by a Clearing Agency as described in Section 2.11. 
  

 2 

 “Business Day” shall mean any day other than a Saturday, a Sunday or a day on which
banking institutions or trust companies in New York, New York, Wilmington, Delaware, Minneapolis, Minnesota or Richmond, Virginia are authorized or obligated by law, executive order or governmental decree to remain closed. 
  
 “CarMax” shall mean CarMax Business Services, LLC, a
Delaware limited liability company, and its successors and assigns. 
  
 “Certificate of Trust” shall have the meaning specified in the Trust Agreement. 
  
 “Class” shall mean a class of Notes, which may be the Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes, the Class A-4 Notes, the
Class B Notes or the Class C Notes. 
  
 “Class A
Noteholders” shall mean the Class A-1 Noteholders, the Class A-2 Noteholders, the Class A-3 Noteholders and the Class A-4 Noteholders. 
  
 “Class A-1 Final Distribution Date” shall mean the April 2006 Distribution Date. 
  
 “Class A-1 Noteholder” shall mean the Person in whose name a
Class A-1 Note is registered on the Note Register. 
  
 “Class A-1 Notes” shall mean the 3.1396% Class A-1 Asset-Backed Notes issued by the Issuer pursuant to this Indenture in the initial aggregate principal amount of $103,000,000. 
  
 “Class A-1 Rate” shall mean 3.1396% per annum. 

 
 “Class A-2 Final Distribution Date” shall mean the
February 2008 Distribution Date. 
  
 “Class A-2
Noteholder” shall mean the Person in whose name a Class A-2 Note is registered on the Note Register. 
  
 “Class A-2 Notes” shall mean the 3.78% Class A-2 Asset-Backed Notes issued by the Issuer pursuant to this Indenture in the initial
aggregate principal amount of $204,000,000. 
  
 “Class A-2
Rate” shall mean 3.78% per annum. 
  
 “Class A-3
Final Distribution Date” shall mean the May 2009 Distribution Date. 
  
 “Class A-3 Noteholder” shall mean the Person in whose name a Class A-3 Note is registered on the Note Register. 
  

“Class A-3 Notes” shall mean the 4.13% Class A-3 Asset-Backed Notes issued by the Issuer pursuant to this Indenture in the initial
aggregate principal amount of $167,000,000. 
  
 “Class A-3
Rate” shall mean 4.13% per annum. 
  
 “Class A-4
Final Distribution Date” shall mean the March 2010 Distribution Date. 
  

 3 

 “Class A-4 Noteholder” shall mean the Person in whose name a Class A-4 Note is
registered on the Note Register. 
  
 “Class A-4
Notes” shall mean the 4.35% Class A-4 Asset-Backed Notes issued by the Issuer pursuant to this Indenture in the initial aggregate principal amount of $101,352,000. 
  
 “Class A-4 Rate” shall mean 4.35% per annum. 
  
 “Class B Final Distribution Date” shall mean the May 2010 Distribution Date. 
  
 “Class B Noteholder” shall mean the Person in whose name a
Class B Note is registered on the Note Register. 
  
 “Class B Notes” shall mean the 4.57% Class B Asset-Backed Notes issued by the Issuer pursuant to this Indenture in the initial aggregate principal amount of $20,053,000. 
  
 “Class B Rate” shall mean 4.57% per annum. 
  
 “Class C Final Distribution Date” shall mean the October
2011 Distribution Date. 
  
 “Class C Noteholder”
shall mean the Person in whose name a Class C Note is registered on the Note Register. 
  
 “Class C Notes” shall mean the 4.82% Class C Asset-Backed Notes issued by the Issuer pursuant to this Indenture in the initial aggregate principal amount of $21,595,000. 
  
 “Class C Rate” shall mean 4.82% per annum. 
  
 “Class Final Distribution Date” shall mean all or any of the
Class A-1 Final Distribution Date, the Class A-2 Final Distribution Date, the Class A-3 Final Distribution Date, the Class A-4 Final Distribution Date, the Class B Final Distribution Date and the Class C Final Distribution Date, as the context
requires. 
  
 “Clearing Agency” shall mean an
organization registered as a “clearing agency” pursuant to Section 17A of the Exchange Act. 
  
 “Clearing Agency Participant” shall mean a broker, dealer, bank, other financial institution or other Person for whom from time to time a
Clearing Agency effects book-entry transfers and pledges of securities deposited with the Clearing Agency. 
  
 “Closing Date” shall mean April 13, 2005. 
  
 “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, and the Treasury Regulations promulgated thereunder.

  
 “Collateral” shall have the meaning specified
in the Granting Clause of this Indenture. 
  

 4 

 “Collection Period” shall mean each calendar month during the term of this Agreement or,
in the case of the initial Collection Period, the period from but excluding the Cutoff Date to and including April 30, 2005. 
  
 “Commission” shall mean the Securities and Exchange Commission, and its successors. 
  
 “Controlling Class” shall mean (i) the Class A Notes so long
as any Class A Notes are outstanding, (ii) thereafter the Class B Notes so long as any Class B Notes are outstanding and (iii) thereafter the Class C Notes as long as any Class C Notes are outstanding. 
  
 “Corporate Trust Office” shall mean the principal office of
the Indenture Trustee at which at any particular time its corporate trust business shall be administered, which office at date of execution of this Indenture is located at Wells Fargo Center, MAC N9311-161, Sixth and Marquette, Minneapolis,
Minnesota 55479, Attention: Asset Backed Securities Department, or at such other address as the Indenture Trustee may designate from time to time by written notice to the Noteholders and the Issuer, or the principal corporate trust office of any
successor Indenture Trustee at the address designated by such successor Indenture Trustee by written notice to the Noteholders and the Issuer. 
  
 “Default” shall mean any event that, with notice or the lapse of time or both, would become an Event of Default. 
  
 “Definitive Notes” shall have the meaning specified in
Section 2.11. 
  
 “Delaware Trustee” shall mean
The Bank of New York (Delaware), a Delaware banking corporation, not in its individual capacity but solely as Delaware Trustee under the Trust Agreement, and any successor Delaware Trustee under the Trust Agreement. 
  
 “Depositor” shall mean CarMax Auto Funding LLC, a Delaware
limited liability company, and its successors. 
  
 “Distribution Date” shall mean the 15th day of each month or, if such 15th day is not a Business Day, the following Business Day, commencing on May 16, 2005. 
  
 “Event of Default” shall have the meaning specified in Section 5.1. 
  
 “Excess Collections” shall have the meaning specified in
Section 2.8(a)(xi). 
  
 “Exchange Act” shall mean
the Securities Exchange Act of 1934, as amended. 
  
 “Executive Officer” shall mean, with respect to any corporation or limited liability company, as applicable, the Chief Executive Officer, the Chief Operating Officer, the Chief Financial Officer, the President, any
Executive Vice President, any Senior Vice President, any Vice President, the Secretary or the Treasurer of such corporation or limited liability company, and, with respect to any partnership, any general partner of such partnership. 
  

 5 

 “Grant” shall mean to mortgage, pledge, bargain, sell, warrant, alienate, remise,
release, convey, assign, transfer, create, and to grant a lien upon and a security interest in and right of set-off against, and to deposit, set over and confirm pursuant to this Indenture. A Grant of the Collateral or of any other agreement or
instrument shall include all rights, powers and options (but none of the obligations) of the granting party thereunder, including the immediate and continuing right to claim for, collect, receive and give receipt for principal and interest payments
in respect of the Collateral and all other monies payable thereunder, to give and receive notices and other communications, to make waivers or other agreements, to exercise all rights and options, to bring Proceedings in the name of the granting
party or otherwise, and generally to do and receive anything that the granting party is or may be entitled to do or receive thereunder or with respect thereto. 
  

“Holder” or “Noteholder” shall mean the Person in whose name a Note is registered in the Note Register. 

 
 “Indenture Trustee” shall mean Wells Fargo Bank, National
Association, a national banking association, not in its individual capacity but solely as Indenture Trustee under this Indenture, and any successor Indenture Trustee under this Indenture. 
  
 “Independent” shall mean, when used with respect to any specified Person, that such Person (i) is in fact
independent of the Issuer, any other obligor on the Notes, the Depositor, the Seller, the Servicer and any Affiliate of any of the foregoing Persons, (ii) does not have any direct financial interest or any material indirect financial interest in the
Issuer, any such other obligor, the Depositor, the Seller, the Servicer or any Affiliate of any of the foregoing Persons and (iii) is not connected with the Issuer, any such other obligor, the Depositor, the Seller, the Servicer or any Affiliate of
any of the foregoing Persons as an officer, employee, promoter, underwriter, trustee, partner, director or person performing similar functions. 
  
 “Independent Certificate” shall mean a certificate or opinion to be delivered to the Indenture Trustee under the circumstances described
in, and otherwise complying with, the applicable requirements of Section 11.1, made by an Independent appraiser or other expert appointed by an Issuer Order and approved by the Indenture Trustee in the exercise of reasonable care, and such opinion
or certificate shall state that the signer has read the definition of “Independent” in this Indenture and that the signer is Independent within the meaning thereof. 
  
 “Insolvency Event” shall mean, with respect to any Person, (i) the making by such Person of a general
assignment for the benefit of creditors, (ii) the filing by such Person of a voluntary petition in bankruptcy, (iii) such Person being adjudged bankrupt or insolvent, or having had entered against such Person an order for relief in any bankruptcy or
insolvency proceeding, (iv) the filing by such Person of a petition or answer seeking reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any statute, law or regulation, (v) the filing by such
Person of an answer or other pleading admitting or failing to contest the material allegations of a petition filed against such Person in any proceeding specified in clause (vii) below, (vi) seeking, consenting to or acquiescing in the appointment
of a trustee, receiver or liquidator of such Person or of all or any substantial part of the assets of such Person or (vii) the failure to obtain dismissal within sixty (60) days of the commencement of any proceeding against such Person seeking
reorganization, arrangement, 

  

 6 

 
composition, readjustment, liquidation, dissolution or similar relief under any statute, law or regulation, or the entry of any order appointing a trustee,
liquidator or receiver of such Person of all or any substantial portion of the assets of such Person. 
  
 “Issuer” shall mean CarMax Auto Owner Trust 2005-1 or any successor to CarMax Auto Owner Trust 2005-1 and, for purposes of any provision
contained herein and required by the TIA, each other obligor on the Notes. 
  
 “Issuer Order” shall mean a written order signed in the name of the Issuer by an Authorized Officer of the Issuer and delivered to the Indenture Trustee by the Administrator, if signed by an officer
of the Administrator, or at the written direction of the Depositor, if signed by an officer of the Owner Trustee. 
  
 “Issuer Request” shall mean a written request signed in the name of the Issuer by an Authorized Officer of the Issuer and delivered to
the Indenture Trustee by the Administrator, if signed by an officer of the Administrator, or at the written direction of the Depositor, if signed by an officer of the Owner Trustee. 
  
 “Maryland Code” shall mean Maryland Code Annotated, Financial Institutions §11-401 et seq. 

 
 “Moody’s” shall mean Moody’s Investors Service,
Inc., and its successors. 
  
 “Note Balance”
shall mean, at any time, the aggregate principal amount of all Notes Outstanding at such time or the aggregate principal amount of all Notes of the Controlling Class Outstanding at such time, as the context requires. 
  
 “Note Depository Agreement” shall mean the Letter of
Representations dated April 13, 2005, among the Issuer, the Indenture Trustee and The Depository Trust Company, as the initial Clearing Agency, relating to the Notes. 
  
 “Note Owner” shall mean, with respect to any Book-Entry Note, the Person who is the beneficial owner of
such Book-Entry Note as reflected on the books of the Clearing Agency or on the books of a Person maintaining an account with such Clearing Agency (directly as a Clearing Agency Participant or as an indirect participant, in each case in accordance
with the rules of such Clearing Agency). 
  
 “Note
Rate” shall mean, in the case of the Class A-1 Notes, the Class A-1 Rate, in the case of the Class A-2 Notes, the Class A-2 Rate, in the case of the Class A-3 Notes, the Class A-3 Rate, in the case of the Class A-4 Notes, the Class A-4
Rate, in the case of the Class B Notes, the Class B Rate and in the case of the Class C Notes, the Class C Rate. 
  
 “Note Register” shall have the meaning specified in Section 2.5. 
  
 “Note Registrar” shall have the meaning specified in Section 2.5. 
  

 7 

 “Noteholders” shall mean the Class A-1 Noteholders, the Class A-2 Noteholders, the Class
A-3 Noteholders, the Class A-4 Noteholders, the Class B Noteholders and the Class C Noteholders. 
  
 “Notes” shall mean the Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes, the Class A-4 Notes, the Class B Notes and the Class C
Notes. 
  
 “Officer’s Certificate” shall
mean a certificate signed by an Authorized Officer of the Issuer and delivered to the Indenture Trustee, which certificate shall comply with the applicable requirements of Section 11.1. 
  
 “Opinion of Counsel” shall mean one or more written opinions of counsel who may, except as otherwise
expressly provided in this Indenture, be an employee of, or outside counsel to, the Issuer, the Depositor, the Seller or the Servicer and who shall be acceptable to the Indenture Trustee, which opinion or opinions shall be addressed to the Indenture
Trustee as Indenture Trustee, shall comply with any applicable requirements of Section 11.1 and shall be in form and substance satisfactory to the Indenture Trustee. 
  
 “Outstanding” shall mean, as of the date of determination, all Notes theretofore authenticated and
delivered under this Indenture except: 
  
 (i)
Notes theretofore canceled by the Note Registrar or delivered to the Note Registrar for cancellation; 
  
 (ii) Notes or portions thereof the payment for which money in the necessary amount has been theretofore deposited with the Indenture
Trustee or any Paying Agent in trust for the Holders of such Notes; provided, however, that if such Notes are to be redeemed, notice of such redemption must have been duly given pursuant to this Indenture or provision for such notice
must have been made in a manner satisfactory to the Indenture Trustee; and 
  
 (iii) Notes in exchange for or in lieu of which other Notes have been authenticated and delivered pursuant to this Indenture unless proof satisfactory to the Indenture Trustee is presented that any such Notes are held
by a “protected purchaser” (as defined in the Relevant UCC); 
  
 provided, however, that in determining whether the Holders of the requisite principal amount of the Notes Outstanding have given any request, demand, authorization, direction, notice, consent or waiver hereunder or under any
Transaction Document, Notes owned by the Issuer, any other obligor upon the Notes, the Depositor, the Seller, the Servicer or any Affiliate of any of the foregoing Persons shall be disregarded and deemed not to be Outstanding, except that, in
determining whether the Indenture Trustee shall be protected in relying on any such request, demand, authorization, direction, notice, consent or waiver, only Notes that a Responsible Officer knows to be so owned shall be so disregarded. Notes so
owned that have been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction of the Indenture Trustee the pledgee’s right so to act with respect to such Notes and that the pledgee is not the Issuer,
any other obligor upon the Notes, the Depositor, the Seller, the Servicer or any Affiliate of any of the foregoing Persons. 
  

 8 

 “Owner Trustee” shall mean The Bank of New York, a New York banking corporation, not in
its individual capacity but solely as Owner Trustee under the Trust Agreement, and any successor Owner Trustee under the Trust Agreement. 
  
 “Paying Agent” shall mean the Indenture Trustee or any other Person that meets the eligibility standards for the Indenture Trustee
specified in Section 6.11 and is authorized by the Issuer to make payments to and distributions from the Collection Account and the Note Payment Account, including payment of principal of or interest on the Notes, on behalf of the Issuer.

  
 “Pennsylvania Motor Vehicle Sales Finance Company
Act” shall mean 69 P.S. §601 et seq. 
  
 “Predecessor Note” shall mean, with respect to any particular Note, every previous Note evidencing all or a portion of the same debt as that evidenced by such particular Note. Any Note authenticated and delivered under
Section 2.6 in lieu of a mutilated, lost, destroyed or stolen Note shall be deemed, for purposes of this definition, to evidence the same debt as the mutilated, lost, destroyed or stolen Note. 
  
 “Proceeding” shall mean any suit in equity, action at law or
other judicial or administrative proceeding. 
  
 “Rating
Agency” shall mean Moody’s or Standard & Poor’s; provided, however, that if Moody’s and Standard & Poor’s cease to exist, Rating Agency shall mean any nationally recognized statistical rating
organization or other comparable Person designated by the Issuer, written notice of which designation shall have been given to the Depositor, the Servicer, the Indenture Trustee and the Owner Trustee. 
  
 “Rating Agency Condition” shall mean, with respect to any
action, that each Rating Agency shall have been given prior notice of such action and shall have notified the Owner Trustee and the Indenture Trustee in writing that such action shall not result in a reduction or withdrawal of the then-current
rating assigned by such Rating Agency to any Class of Notes. 
  
 “Record Date” shall mean, with respect to any Distribution Date or Redemption Date, the close of business on the Business Day preceding such Distribution Date or Redemption Date; provided, however, that if
Definitive Notes have been issued pursuant to Section 2.13, Record Date shall mean, with respect to any Distribution Date or Redemption Date, the last day of the preceding Collection Period. 
  
 “Redemption Date” shall mean the Distribution Date specified
by the Servicer pursuant to Section 10.1 on which date the Indenture Trustee shall withdraw any amounts remaining in the Reserve Account and the Secondary Reserve Account and deposit the portion of such amounts payable to the Noteholders in the Note
Payment Account. 
  
 “Redemption Price” shall
mean, in the case of a redemption of Notes pursuant to Section 10.1, an amount equal to the unpaid principal amount of the Notes redeemed plus accrued and unpaid interest thereon. 
  

 9 

 “Responsible Officer” shall mean any managing director, principal, vice president,
assistant vice president, assistant secretary, assistant treasurer or trust officer of the Indenture Trustee or any other officer of the Indenture Trustee customarily performing functions similar to those performed by any of the above designated
officers and, with respect to a particular corporate trust matter, any other officer of the Indenture Trustee to whom such matter is referred because of such officer’s knowledge of and familiarity with the particular subject. 
  
 “Sale and Servicing Agreement” shall mean the Sale and
Servicing Agreement, dated as of April 1, 2005, among the Issuer, the Depositor and the Servicer, as amended, supplemented or otherwise modified and in effect from time to time. 
  
 “Seller” shall mean CarMax, in its capacity as seller of the Receivables under the Receivables Purchase
Agreement, and its successors in such capacity. 
  
 “Servicer” shall mean CarMax, in its capacity as servicer of the Receivables under the Sale and Servicing Agreement, and its successors in such capacity. 
  
 “Standard & Poor’s” shall mean Standard & Poor’s Ratings Services, a division of The
McGraw-Hill Companies, Inc., and its successors. 
  
 “State” shall mean any of the 50 states of the United States or the District of Columbia. 
  
 “Successor Servicer” shall have the meaning specified in Section 3.7(e). 
  
 “Transaction Documents” shall mean the Receivables Purchase Agreement, the Trust Agreement, the Sale and
Servicing Agreement, the Certificate of Trust, this Indenture, the Administration Agreement, the Note Depository Agreement and the other documents and certificates delivered in connection therewith, in each case as amended, supplemented or otherwise
modified and in effect from time to time. 
  
 “Trust
Accounts” shall mean the Collection Account, the Note Payment Account, the Certificate Payment Account, the Reserve Account and the Secondary Reserve Account. 
  
 “Trust Agreement” shall mean the Amended and Restated Trust Agreement, dated as of April 1, 2005, among the
Depositor, the Delaware Trustee and the Owner Trustee, as amended, supplemented or otherwise modified and in effect from time to time. 
  
 “Trust Estate” shall mean all money, instruments, rights and other property that are subject or intended to be subject to the lien and
security interest of this Indenture for the benefit of the Noteholders (including all property and interests Granted to the Indenture Trustee), including all proceeds thereof. 
  
 “Trust Fiscal Year” shall mean the period commencing on March 1 of any year and ending on February 28 (or
February 29, if applicable) of the following year. 
  
 “Trust Indenture Act” or “TIA” shall mean the Trust Indenture Act of 1939, as amended. 
  

 10 

 (b) Except as otherwise specified herein or as the context may otherwise require, capitalized terms used
but not otherwise defined herein have the respective meanings set forth in, or incorporated by reference into, the Sale and Servicing Agreement or the Trust Agreement for all purposes of this Indenture. 
  
 SECTION 1.2 Incorporation by Reference of Trust Indenture Act.
Whenever this Indenture refers to a provision of the TIA, that provision is incorporated by reference in and made a part of this Indenture. The following TIA terms used in this Indenture have the following meanings: 
  
 “Indenture securities” shall mean the Notes. 
  
 “Indenture security holder” shall mean a Noteholder.

  
 “Indenture to be qualified” shall mean this
Indenture. 
  
 “Indenture trustee” or
“Institutional trustee” shall mean the Indenture Trustee. 
  
 “Obligor on the indenture securities” shall mean the Issuer and any other obligor on the Notes. 
  
 All other TIA terms used in this Indenture that are defined in the TIA, defined by TIA reference to another statute or defined by Commission rule have the
respective meanings assigned to them by such definitions. 
  
 SECTION 1.3 Rules of Construction. Unless the context otherwise requires: 
  
 (i) a term has the meaning assigned to it; 
  
 (ii) an accounting term not otherwise defined has the meaning assigned to it in accordance with generally accepted accounting principles
as in effect from time to time; 
  
 (iii)
“or” is not exclusive; 
  
 (iv)
“including” means including without limitation; 
  
 (v) words in the singular include the plural and words in the plural include the singular; 
  
 (vi) any agreement, instrument or statute defined or referred to herein or in any instrument or certificate delivered in connection
herewith means such agreement, instrument or statute as from time to time amended, modified or supplemented and includes (in the case of agreements or instruments) references to all attachments thereto and instruments incorporated therein;

  
 (vii) references to a Person are also to its
permitted successors and assigns; and 
  

 11 

 (viii) Article, Section and Exhibit references contained in this Indenture are references
to Articles, Sections and Exhibits in or to this Indenture unless otherwise specified. 
  
 ARTICLE II 
 THE NOTES 
  
 SECTION 2.1 Form. 
  
 (a) The Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes, the Class A-4 Notes, the Class B Notes and the Class C Notes, together with the
Indenture Trustee’s certificates of authentication, shall be substantially in the form set forth in Exhibit A-1, Exhibit A-2, Exhibit A-3, Exhibit A-4, Exhibit B and Exhibit C, respectively, with such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by this Indenture, and may have such letters, numbers or other marks of identification and such legends or endorsements placed thereon as may, consistently herewith, be determined by
the officers executing such Notes, as evidenced by their execution thereof. Any portion of the text of any Note may be set forth on the reverse thereof, with an appropriate reference thereto on the face of the Note. 
  
 (b) The Definitive Notes shall be typewritten, printed, lithographed or
engraved, or produced by any combination of these methods (with or without steel engraved borders), all as determined by the Authorized Officers executing such Notes, as evidenced by their execution of such Notes. 
  
 (c) Each Note shall be dated the date of its authentication. The terms of the
Notes set forth in Exhibits A-1 through A-4, Exhibit B and Exhibit C are part of the terms of this Indenture and are incorporated herein by reference. 
  
 SECTION 2.2 Execution, Authentication and Delivery. 
  
 (a) The Notes shall be executed on behalf of the Issuer by any of its Authorized Officers. The signatures of any such Authorized Officer on the Notes may
be manual or facsimile. 
  
 (b) Notes bearing the manual or
facsimile signature of individuals who were at any time Authorized Officers of the Issuer shall bind the Issuer, notwithstanding that such individuals or any of them have ceased to hold such offices prior to the authentication and delivery of such
Notes or did not hold such offices on the date of such Notes. 
  
 (c) The Indenture Trustee shall, upon Issuer Order, authenticate and deliver the Class A-1 Notes for original issue in an aggregate principal amount of $103,000,000, the Class A-2 Notes for original issue in an aggregate principal amount of
$204,000,000, the Class A-3 Notes for original issue in an aggregate principal amount of $167,000,000, the Class A-4 Notes for original issue in an aggregate principal amount of $101,352,000, the Class B Notes for original issue in an aggregate
principal amount of $20,053,000 and the Class C Notes for original issue in an aggregate principal amount of $21,595,000. The aggregate principal amounts of Class A-1 Notes, Class A-2 Notes, Class A-3 Notes, Class A-4 Notes, Class B Notes and Class
C 

  

 12 

 
Notes outstanding at any time may not exceed those respective amounts except as provided in Section 2.6. 
  
 (d) Each Note shall be dated the date of its authentication. The Notes shall
be issuable as registered Notes in minimum denominations of $1,000 and integral multiples thereof. 
  
 (e) No Note shall be entitled to any benefit under this Indenture or be valid or obligatory for any purpose unless there appears on such Note a
certificate of authentication substantially in the form provided for herein executed by the Indenture Trustee by the manual signature of one of its authorized signatories, and such certificate upon any Note shall be conclusive evidence, and the only
evidence, that such Note has been duly authenticated and delivered hereunder. 
  
 SECTION 2.3 Temporary Notes. 
  
 (a) Pending the preparation of Definitive Notes pursuant to Section 2.13, the Issuer may execute, and upon receipt of an Issuer Order the Indenture Trustee shall authenticate and deliver, temporary Notes that are printed, lithographed,
typewritten, mimeographed or otherwise produced of the tenor of the Definitive Notes in lieu of which they are issued and with such variations not inconsistent with the terms of this Indenture as the officers executing such Notes may determine, as
evidenced by their execution of such Notes. 
  
 (b) If temporary
Notes are issued pursuant to Section 2.3(a), the Issuer shall cause Definitive Notes to be prepared without unreasonable delay. After the preparation of Definitive Notes, the temporary Notes shall be exchangeable for Definitive Notes upon surrender
of the temporary Notes at the office or agency of the Note Registrar to be maintained as provided in Section 3.2, without charge to the Holder. Upon surrender for cancellation of any one or more temporary Notes, the Issuer shall execute, and the
Indenture Trustee shall authenticate and deliver in exchange therefor, a like principal amount of Definitive Notes of authorized denominations. Until so exchanged, the temporary Notes shall in all respects be entitled to the same benefits under this
Indenture as Definitive Notes. 
  
 SECTION 2.4 Tax
Treatment. The Issuer has entered into this Indenture, and the Notes shall be issued, with the intention that, for federal, state and local income and franchise tax purposes, the Notes shall qualify as indebtedness of the Issuer secured by the
Trust Estate. The Issuer, by entering into this Indenture, and each Noteholder, by its acceptance of a Note (and each Note Owner by its acceptance of an interest in the applicable Book-Entry Note), agree to treat the Notes as indebtedness of the
Issuer for federal, state and local income and franchise tax purposes. 
  
 SECTION 2.5 Registration; Registration of Transfer and Exchange. 
  
 (a) The Indenture Trustee initially shall be the registrar (the “Note Registrar”) for the purpose of registering Notes and transfers of Notes as herein provided. The Note Registrar shall cause to be
kept a register (the “Note Register”) in which, subject to such reasonable regulations as it may prescribe, the Note Registrar shall provide for the registration of Notes and the registration of transfers of Notes. Upon any
resignation of any Note Registrar, the 

  

 13 

 
Issuer shall promptly appoint a successor or, if it elects not to make such an appointment, assume the duties of Note Registrar. 
  
 (b) If a Person other than the Indenture Trustee is appointed by the Issuer
as Note Registrar, (i) the Issuer shall give the Indenture Trustee prompt written notice of the appointment of such Note Registrar and of the location, or any change in the location, of the Note Register, (ii) the Indenture Trustee shall have the
right to inspect the Note Register at all reasonable times and to obtain copies thereof and (iii) the Indenture Trustee shall have the right to rely upon a certificate executed on behalf of the Note Registrar by an Executive Officer thereof as to
the names and addresses of the Holders of the Notes and the principal amounts and number of such Notes. 
  
 (c) Upon surrender for registration of transfer of any Note at the office or agency of the Issuer to be maintained as provided in Section 3.2, if the
requirements of Section 8-401 or 8A-401, as applicable, of the Relevant UCC are met, the Issuer shall execute, and the Indenture Trustee shall authenticate and deliver to the Noteholder making such surrender, in the name of the designated transferee
or transferees, one or more new Notes of the same Class in any authorized denomination, of a like aggregate principal amount. The Indenture Trustee may rely upon the Administrator with respect to the determination of whether the requirements of
Section 8-401 or 8A-401, as applicable, of the Relevant UCC are met. 
  
 (d) At the option of the Noteholder, Notes may be exchanged for other Notes of the same Class in any authorized denominations, of a like aggregate principal amount, upon surrender of the Notes to be exchanged at such office or agency.
Whenever any Notes are so surrendered for exchange, if the requirements of Section 8-401 or 8A-401, as applicable, of the Relevant UCC are met, the Issuer shall execute, and the Indenture Trustee shall authenticate and deliver to the Noteholder
making such exchange, the Notes which such Noteholder is entitled to receive. The Indenture Trustee may rely upon the Administrator with respect to the determination of whether the requirements of Section 8-401 or 8A-401, as applicable, of the
Relevant UCC are met. 
  
 (e) All Notes issued upon any
registration of transfer or exchange of Notes shall be the valid obligations of the Issuer, evidencing the same debt, and entitled to the same benefits under this Indenture, as the Notes surrendered upon such registration of transfer or exchange.

  
 (f) All Notes presented or surrendered for registration of
transfer or exchange shall be duly endorsed by, or be accompanied by a written instrument of transfer in form satisfactory to the Indenture Trustee duly executed by, the Holder thereof or such Holder’s attorney duly authorized in writing, with
such signature guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar. 
  
 (g) No service charge shall be made to a Holder for any registration of transfer or exchange of Notes, but the Issuer may require payment by such Holder
of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any registration of transfer or exchange of Notes, other than exchanges pursuant to Section 2.3 or 9.6 not involving any transfer. 

 

 14 

 (h) The Issuer shall not be required to make, and the Note Registrar need not register, transfers or
exchanges of Notes selected for redemption or Notes with respect to which the due date for any payment will occur within fifteen (15) days. 
  
 (i) Each Person to whom a Note is transferred will be required to represent, in the case of a Definitive Note, or deemed to represent in the case of a
Book-Entry Note, that (A) such Person is not an employee benefit plan, as described in Section 3(3) of ERISA, or a plan, as defined in Section 4975(e)(1) if the Code, that is subject to Title I of ERISA or to Section 4975 of the Code, a government
plan subject to any state or local law similar to Title I of ERISA or Section 4975 of the Code, or a Person investing on behalf of or with “plan assets” of such a plan, or (B) the Person’s acquisition, holding and disposition of such
Note are and will be eligible for relief under a prohibited transaction exemption. 
  
 SECTION 2.6 Mutilated, Destroyed, Lost or Stolen Notes. 
  
 (a) If (i) any mutilated Note is surrendered to the Indenture Trustee, or the Indenture Trustee receives evidence to its satisfaction of the destruction, loss or theft of any Note, and (ii) there is delivered to the
Indenture Trustee such security or indemnity as may be required by it to hold the Issuer and the Indenture Trustee harmless, then, in the absence of notice to the Issuer, the Note Registrar or the Indenture Trustee that such Note has been acquired
by a “protected purchaser” (as defined in the Relevant UCC), and provided that the requirements of Section 8-405 or 8A-405, as applicable, of the Relevant UCC are met, the Issuer shall execute and the Indenture Trustee shall authenticate
and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Note, a replacement Note of the same Class; provided, however, that if any such destroyed, lost or stolen Note, but not a mutilated Note, shall
have become or within seven (7) days of the Indenture Trustee’s receipt of evidence to its satisfaction of such destruction, loss or theft shall be due and payable, or shall have been called for redemption in whole pursuant to Section 10.1,
instead of issuing a replacement Note of the same Class, the Issuer may pay such destroyed, lost or stolen Note when so due or payable or upon the Redemption Date without surrender thereof. The Indenture Trustee may conclusively rely upon the
Administrator with respect to the determination of whether the requirements of Section 8-405 or 8A-405, as applicable, of the Relevant UCC are met. If, after the delivery of such replacement Note or payment of a destroyed, lost or stolen Note
pursuant to the proviso to the preceding sentence, a “protected purchaser” (as defined in the Relevant UCC) of the original Note in lieu of which such replacement Note was issued presents for payment such original Note, the Issuer and the
Indenture Trustee shall be entitled to recover such replacement Note (or such payment) from the Person to whom such replacement Note was delivered or any Person taking such replacement Note from such Person to whom such replacement Note was
delivered or any assignee of such Person, except a “protected purchaser” (as defined in the Relevant UCC), and shall be entitled to recover upon the security or indemnity provided therefor to the extent of any loss, damage, cost or expense
incurred by the Issuer or the Indenture Trustee in connection therewith. 
  
 (b) Upon the issuance of any replacement Note under this Section 2.6, the Issuer may require the payment by the Holder of such Note of a sum sufficient to cover any tax or other governmental charge that may be imposed
in connection with such issuance and any 

  

 15 

 
other reasonable expenses (including the fees and expenses of the Indenture Trustee) related thereto. 
  
 (c) Every replacement Note issued pursuant to this Section 2.6 in replacement
of any mutilated, destroyed, lost or stolen Note shall constitute an original additional contractual obligation of the Issuer, whether or not the mutilated, destroyed, lost or stolen Note shall be at any time enforceable by anyone, and shall be
entitled to all the benefits of this Indenture equally and proportionately with any and all other Notes duly issued hereunder. 
  
 (d) The provisions of this Section 2.6 are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the
replacement or payment of mutilated, destroyed, lost or stolen Notes. 
  
 SECTION 2.7 Persons Deemed Owners. Prior to due presentation of a Note for registration of transfer, the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture Trustee may, subject to Section 2.6, treat the Person
in whose name such Note is registered in the Note Register (as of the day of determination) as the owner of such Note for the purpose of receiving payments of principal of and interest on such Note and for all other purposes whatsoever, whether or
not such Note shall be overdue, and none of the Issuer, the Indenture Trustee or any agent of the Issuer or the Indenture Trustee shall be affected by any notice to the contrary. 
  
 SECTION 2.8 Payments. 
  
 (a) Prior to any acceleration of the Notes pursuant to Section 5.2, on each Distribution Date, upon receipt of written instructions from the Servicer
pursuant to Section 4.6(d) of the Sale and Servicing Agreement, the Indenture Trustee shall apply the Available Funds for such Distribution Date to make the following payments and deposits in the following order of priority: 
  
 (i) to the Servicer, the Total Servicing Fee for the
preceding Collection Period and any Unreimbursed Servicer Advances for the preceding Collection Period; 
  
 (ii) to the Note Payment Account, for payment of interest on each Class of the Class A Notes, the Total Note Interest for each Class of
the Class A Notes for such Distribution Date; 
  
 (iii) to the Note Payment Account, for payment of principal of the Notes in the priority set forth in Section 2.8(b), the Priority Principal Distributable Amount, if any, for such Distribution Date; 
  
 (iv) to the Note Payment Account, for payment of interest on
the Class B Notes, the Total Note Interest for the Class B Notes for such Distribution Date; 
  
 (v) to the Note Payment Account, for payment of principal of the Notes in the priority set forth in Section 2.8(b), the Secondary
Principal Distributable Amount, if any, for such Distribution Date; 
  

 16 

 (vi) to the Note Payment Account, for payment of interest on the Class C Notes, the Total
Note Interest for the Class C Notes for such Distribution Date; 
  
 (vii) to the Secondary Reserve Account, the Secondary Reserve Account Deficiency, if any, for such Distribution Date; 
  
 (viii) to the Reserve Account, the Reserve Account Deficiency, if any, for such Distribution Date; 
  
 (ix) to the Note Payment Account, for payment of principal
of the Notes in the priority set forth in Section 2.8(b), the Regular Principal Distributable Amount, if any, for such Distribution Date; 
  
 (x) if a Successor Servicer has been appointed pursuant to Section 8.2 of the Sale and Servicing Agreement, to such Successor Servicer,
any Transition Costs due in connection with such transfer of servicing and not paid pursuant to Section 8.1(a) of the Sale and Servicing Agreement plus the Additional Servicing Fee, if any, for the preceding Collection Period; and 

 
 (xi) unless the Notes have been declared immediately due
and payable following an Event of Default, to the Certificate Payment Account, for payment to the Certificateholders, or, if the Notes have been declared immediately due and payable following an Event of Default, to the Note Payment Account, for
payment to the Noteholders, any remaining Available Funds (the “Excess Collections”). 
  
 Notwithstanding any other provision of this Section 2.8 and except as provided in Section 5.5, following the occurrence and during the continuation of an Event of Default which has resulted in an acceleration of the
Notes, the Indenture Trustee shall apply all Available Funds pursuant to Section 5.4(b). 
  
 If the amount on deposit in the Note Payment Account (including any portion of the Reserve Account Draw Amount and any portion of the Secondary Reserve Account Draw Amount) on any Distribution Date is less than the
amount described in clause (ii) above for such Distribution Date, the Indenture Trustee shall pay the available amount to the Holders of each Class of Class A Notes pro rata based on the Total Note Interest payable to such Class on
such Distribution Date. 
  
 (b) The principal of each Note shall
be payable in installments on each Distribution Date in an aggregate amount (unless the Notes have been declared immediately due and payable following an Event of Default) for all Classes of Notes equal to the sum of the Priority Principal
Distributable Amount, the Secondary Principal Distributable Amount and the Regular Principal Distributable Amount, in each case for such Distribution Date. On each Distribution Date (unless the Notes have been declared immediately due and payable
following an Event of Default), upon receipt of instructions from the Servicer pursuant to Section 4.6(d) of the Sale and Servicing Agreement, the Indenture Trustee shall apply or cause to be applied the amount on deposit in the Note Payment Account
on such Distribution Date in respect of the Priority Principal Distributable Amount, the Secondary Principal Distributable Amount and the 

  

 17 

 
Regular Principal Distributable Amount, in each case for such Distribution Date, to make the following payments in the following order of priority:

  
 (i) to the Class A-1 Noteholders until the
principal amount of the Class A-1 Notes has been paid in full; 
  
 (ii) following payment in full of the Class A-1 Notes, to the Class A-2 Noteholders until the principal amount of the Class A-2 Notes has been paid in full; 
  
 (iii) following payment in full of the Class A-2 Notes, to
the Class A-3 Noteholders until the principal amount of the Class A-3 Notes has been paid in full; 
  
 (iv) following payment in full of the Class A-3 Notes, to the Class A-4 Noteholders until the principal amount of the Class A-4 Notes has
been paid in full; 
  
 (v) following payment in
full of the Class A-4 Notes, to the Class B Noteholders until the principal amount of the Class B Notes has been paid in full; and 
  
 (vi) following payment in full of the Class B Notes, to the Class C Noteholders until the principal amount of the Class C Notes has been
paid in full. 
  
 (c) The unpaid principal amount of the Class A-1
Notes, to the extent not previously paid, shall be due and payable on the Class A-1 Final Distribution Date, the principal amount of the Class A-2 Notes, to the extent not previously paid, shall be due and payable on the Class A-2 Final Distribution
Date, the principal amount of the Class A-3 Notes, to the extent not previously paid, shall be due and payable on the Class A-3 Final Distribution Date, the principal amount of the Class A-4 Notes, to the extent not previously paid, shall be due and
payable on the Class A-4 Final Distribution Date, the principal amount of the Class B Notes, to the extent not previously paid, shall be due and payable on the Class B Final Distribution Date and the principal amount of the Class C Notes, to the
extent not previously paid, shall be due and payable on the Class C Final Distribution Date. 
  
 (d) The Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes, the Class A-4 Notes, the Class B Notes and the Class C Notes shall accrue interest during each Accrual Period at the Class A-1 Rate, the Class A-2
Rate, the Class A-3 Rate, the Class A-4 Rate, the Class B Rate and the Class C Rate, respectively, and such interest shall be due and payable on each Distribution Date. Interest on the Class A-1 Notes shall be calculated on the basis of the actual
number of days elapsed and a 360-day year. Interest on the Class A-2 Notes, the Class A-3 Notes, the Class A-4 Notes, the Class B Notes and the Class C Notes shall be calculated on the basis of a 360-day year of twelve 30-day months. Subject to
Section 3.1, any installment of interest or principal, if any, payable on any Note that is punctually paid or duly provided for on the applicable Distribution Date shall be paid to the Person in whose name such Note (or one or more Predecessor
Notes) is registered on the related Record Date by check mailed first-class postage prepaid to such Person’s address as it appears on the Note Register on such Record Date; provided, however, that, unless Definitive Notes have
been issued pursuant to Section 2.13, with respect to Notes registered on the Record Date in the name of the nominee of the Clearing Agency (initially, such nominee to be Cede & Co.), payment shall be made by wire transfer in immediately
available funds to the account designated by such nominee, and except for the final 

  

 18 

 
installment of principal payable with respect to such Note on a Distribution Date or on the related Class Final Distribution Date (and except for the
Redemption Price for any Note called for redemption in whole pursuant to Section 10.1(a) or (b)), which shall be payable as provided below. The funds represented by any such checks returned undelivered shall be held in accordance with Section 3.3.
The Indenture Trustee shall pay all Total Note Interest for any Distribution Date to the Holders of the Notes on the related Record Date even if a portion of such Total Note Interest relates to an earlier Distribution Date. 
  
 (e) All principal and interest payments on each Class of Notes shall be made
pro rata to the Holders of such Class. The Indenture Trustee shall, before the Distribution Date on which the Issuer expects to pay the final installment of principal of and interest on any Note, notify the Holder of such Note as of
the related Record Date of such final installment. Such notice shall be mailed or transmitted by facsimile and shall specify that such final installment shall be payable only upon presentation and surrender of such Note and shall specify the place
where such Note may be presented and surrendered for payment of such installment. Notices in connection with redemption of Notes shall be mailed to Noteholders as provided in Section 10.2. 
  
 (f) Notwithstanding the foregoing, the unpaid principal amount of the Notes
shall be due and payable, to the extent not previously paid, on the date on which the Notes have been declared immediately due and payable following an Event of Default. On each Distribution Date following acceleration of the Notes, upon receipt of
instructions from the Servicer pursuant to Section 4.6(d) of the Sale and Servicing Agreement, the Indenture Trustee shall apply or cause to be applied the amount on deposit in the Note Payment Account on such Distribution Date in respect of
principal together with all Excess Collections, if any, to make the following payments in the following order of priority: 
  
 (i) to the Class A-1 Noteholders until the principal amount of the Class A-1 Notes has been paid in full; 
  
 (ii) to the Holders of each Class of the remaining Class A
Notes, pro rata based on the outstanding principal amount of such Class as of such Distribution Date, until the principal amount of each such Class of the remaining Class A Notes has been paid in full; 
  
 (iii) to the Class B Noteholders until the principal amount
of the Class B Notes has been paid in full; and 
  
 (iv) to the Class C Noteholders until the principal amount of the Class C Notes has been paid in full. 
  
 (g) The Indenture Trustee shall transfer amounts from the Reserve Account and deposit amounts transferred from the Reserve Account, in each case at the
written direction of the Servicer and on behalf of the Noteholders, in accordance with the Sale and Servicing Agreement. 
  
 (h) The Indenture Trustee shall transfer amounts from the Secondary Reserve Account and deposit amounts transferred from the Secondary Reserve Account, in
each case at 

  

 19 

 
the written direction of the Servicer and on behalf of the Noteholders, in accordance with the Sale and Servicing Agreement. 
  
 (i) Prior to any acceleration of the Notes pursuant to Section 5.2, on each
Distribution Date, upon receipt of written instructions from the Servicer pursuant to Section 4.6(d) of the Sale and Servicing Agreement and after application of Available Funds for such Distribution Date pursuant to Section 2.8(a), the Indenture
Trustee shall apply the Secondary Reserve Account Draw Amount for such Distribution Date to make the following payments and deposits in the following order of priority: 
  
 (i) to the Note Payment Account, for payment of interest on each Class of the Class A Notes, the portion, if
any, of the Total Note Interest for any Class of the Class A Notes for such Distribution Date not paid in full through the application of Available Funds on such Distribution Date; 
  
 (ii) if such Distribution Date is on or after the Class Final Distribution Date for any Class of the Class A
Notes, to the Note Payment Account for payment of principal of the Notes in the priority set forth in Section 2.8(b), the amount necessary to reduce the outstanding principal amount of that Class of the Class A Notes to zero; 
  
 (iii) to the Note Payment Account, for payment of interest
on the Class B Notes, the portion, if any, of the Total Note Interest for the Class B Notes for such Distribution Date not paid in full through the application of Available Funds on such Distribution Date; 
  
 (iv) if such Distribution Date is on or after the Class B
Final Distribution Date, to the Note Payment Account for payment of principal of the Notes in the priority set forth in Section 2.8(b), the amount necessary to reduce the outstanding principal amount of the Class B Notes to zero; 
  
 (v) to the Note Payment Account, for payment of interest on
the Class C Notes, the portion, if any, of the Total Note Interest for the Class C Notes for such Distribution Date not paid in full through the application of Available Funds on such Distribution Date; and 
  
 (vi) if such Distribution Date is on or after the Class C
Final Distribution Date, to the Note Payment Account for payment of principal of the Notes in the priority set forth in Section 2.8(b), the amount necessary to reduce the outstanding principal amount of the Class C Notes to zero. 
  
 SECTION 2.9 Cancellation. All Notes surrendered for payment,
registration of transfer, exchange or redemption in whole pursuant to Section 10.1(a) or (b) shall, if surrendered to any Person other than the Indenture Trustee, be delivered to the Indenture Trustee and shall be promptly canceled by the Indenture
Trustee. The Issuer may at any time deliver to the Indenture Trustee for cancellation any Notes previously authenticated and delivered hereunder which the Issuer may have acquired in any manner whatsoever, and all Notes so delivered shall be
promptly canceled by the Indenture Trustee. No Notes shall be authenticated in lieu of or in exchange for any Notes canceled as provided in this Section 2.9, except as 

  

 20 

 
expressly permitted by this Indenture. All canceled Notes may be held or disposed of by the Indenture Trustee in accordance with its standard retention or
disposal policy as in effect at the time unless the Issuer shall direct by an Issuer Order that they be destroyed or returned to it, provided that such Issuer Order is timely and the Notes have not been previously disposed of by the Indenture
Trustee. 
  
 SECTION 2.10 Release of Collateral. Subject to
Section 11.1 and the terms of the Transaction Documents, the Indenture Trustee shall release property from the lien of this Indenture only upon receipt of an Issuer Request (which shall include delivery instructions and other relevant information)
accompanied by an Officer’s Certificate, an Opinion of Counsel and Independent Certificates in accordance with TIA Sections 314(c) and 314(d)(1) or an Opinion of Counsel in lieu of such Independent Certificates to the effect that the TIA does
not require any such Independent Certificates. If the Commission shall issue an exemptive order under TIA Section 304(d) modifying the Indenture Trustee’s obligations under TIA Sections 314(c) and 314(d)(1), the Indenture Trustee shall release
property from the lien of this Indenture in accordance with the conditions and procedures set forth in such exemptive order. 
  
 SECTION 2.11 Book-Entry Notes. The Notes, upon original issuance, shall be issued in the form of typewritten Notes representing the Book-Entry
Notes, to be delivered to The Depository Trust Company, the initial Clearing Agency, by, or on behalf of, the Issuer. The Book-Entry Notes shall be registered initially on the Note Register in the name of Cede & Co., the nominee of the initial
Clearing Agency, and no Note Owner thereof shall receive a definitive Note representing such Note Owner’s interest in such Note, except as provided in Section 2.13. Unless and until definitive, fully registered Notes (the “Definitive
Notes”) have been issued to such Note Owners pursuant to Section 2.13: 
  
 (i) the provisions of this Section 2.11 shall be in full force and effect; 
  
 (ii) the Note Registrar and the Indenture Trustee shall be entitled to deal with the Clearing Agency for all purposes of this Indenture
(including the payment of principal of and interest on the Notes and the giving of instructions or directions hereunder) as the sole Holder of the Notes, and shall have no obligation to the Note Owners; 
  
 (iii) to the extent that the provisions of this Section 2.11
conflict with any other provisions of this Indenture, the provisions of this Section shall control; 
  
 (iv) the rights of Note Owners shall be exercised only through the Clearing Agency and shall be limited to those established by law and
agreements between such Note Owners and the Clearing Agency and/or the Clearing Agency Participants pursuant to the Note Depository Agreement; unless and until Definitive Notes are issued pursuant to Section 2.13, the initial Clearing Agency shall
make book-entry transfers among the Clearing Agency Participants and receive and transmit payments of principal of and interest on the Notes to such Clearing Agency Participants; and 
  

 21 

 (v) whenever this Indenture requires or permits actions to be taken based upon written
instructions or directions of Holders of Notes (or Holders of Notes of any Class thereof, including the Controlling Class) evidencing a specified percentage of the principal amount of the Notes or any Class of Notes Outstanding, the Clearing Agency
shall be deemed to represent such percentage only to the extent that it has received instructions to such effect from Note Owners and/or Clearing Agency Participants owning or representing, respectively, such required percentage of the beneficial
interest in the Notes or such Class of Notes and has delivered such instructions to the Indenture Trustee. 
  
 SECTION 2.12 Notices to Clearing Agency. Whenever a notice or other communication to the Noteholders is required under this Indenture, unless and
until Definitive Notes shall have been issued to such Note Owners pursuant to Section 2.13, the Indenture Trustee shall give all such notices and communications specified herein to be given to Holders of the Notes to the Clearing Agency, and shall
have no obligation to such Note Owners. 
  
 SECTION 2.13
Definitive Notes. If (i) the Administrator or the Servicer advises the Indenture Trustee in writing that the Clearing Agency is no longer willing or able to properly discharge its responsibilities with respect to the Book-Entry Notes and the
Indenture Trustee or the Administrator is unable to locate a qualified successor or (ii) after the occurrence of an Event of Default or an Event of Servicing Termination, Note Owners of the Book-Entry Notes representing beneficial interests
aggregating not less than 51% of the principal amount of such Notes advise the Indenture Trustee and the Clearing Agency in writing that the continuation of a book-entry system through the Clearing Agency is no longer in the best interests of such
Note Owners, then the Clearing Agency shall notify all Note Owners and the Indenture Trustee in writing of the occurrence of such event and of the availability of Definitive Notes to Note Owners requesting the same. Upon surrender to the Indenture
Trustee of the typewritten Notes representing the Book-Entry Notes by the Clearing Agency, accompanied by registration instructions, the Issuer, at its own expense, shall execute and deliver the Definitive Notes to the Indenture Trustee and the
Indenture Trustee shall authenticate the Definitive Notes in accordance with the instructions of the Clearing Agency. None of the Issuer, the Note Registrar or the Indenture Trustee shall be liable for any delay in delivery of such instructions and
may conclusively rely on, and shall be protected in relying on, such instructions. Upon the issuance of Definitive Notes, the Indenture Trustee shall recognize the Holders of the Definitive Notes as Noteholders. 
  
 SECTION 2.14 Authenticating Agents. The Indenture Trustee may appoint
one or more Persons (each, an “Authenticating Agent”) with power to act on its behalf and subject to its direction in the authentication of Notes in connection with issuance, transfers and exchanges under Sections 2.2, 2.3, 2.5 and
2.6, as fully to all intents and purposes as though each such Authenticating Agent had been expressly authorized by those Sections to authenticate such Notes. For all purposes of this Indenture, the authentication of Notes by an Authenticating Agent
pursuant to this Section 2.14 shall be deemed to be the authentication of Notes “by the Indenture Trustee”. 
  
 Any corporation into which any Authenticating Agent may be merged or converted or with which it may be consolidated, or any corporation resulting from any
merger, 

  

 22 

 
consolidation or conversion to which any Authenticating Agent shall be a party, or any corporation succeeding to all or substantially all of the corporate
trust business of any Authenticating Agent, shall be the successor of such Authenticating Agent hereunder, without the execution or filing of any document or any further act on the part of the parties hereto or such Authenticating Agent or such
successor corporation. 
  
 Any Authenticating Agent may at any
time resign by giving written notice of resignation to the Indenture Trustee and the Owner Trustee. The Indenture Trustee may at any time terminate the agency of any Authenticating Agent by giving written notice of termination to such Authenticating
Agent and the Owner Trustee. Upon receiving such notice of resignation or upon such a termination, the Indenture Trustee may appoint a successor Authenticating Agent and shall give written notice of any such appointment to the Owner Trustee.

  
 The Administrator agrees to pay to each Authenticating Agent
from time to time reasonable compensation for its services. The provisions of Sections 2.9 and 6.4 shall be applicable to any Authenticating Agent. 
  
 ARTICLE III 
 COVENANTS 
  
 SECTION 3.1 Payment of Principal and Interest. The Issuer shall duly
and punctually pay the principal of and interest, if any, on the Notes in accordance with the terms of the Notes and this Indenture. Amounts properly withheld under the Code by any Person from a payment to any Noteholder of interest and/or principal
shall be considered as having been paid by the Issuer to such Noteholder for all purposes of this Indenture. 
  
 SECTION 3.2 Maintenance of Office or Agency. The Note Registrar shall maintain in the Borough of Manhattan, The City of New York, an office or
agency where Notes may be surrendered for registration of transfer or exchange, and where notices and demands to or upon the Note Registrar in respect of the Notes and this Indenture may be served. The Note Registrar shall give prompt written notice
to the Issuer, the Depositor and the Indenture Trustee of the location, and of any change in the location, of any such office or agency. If, at any time, the Issuer and the Note Registrar shall fail to maintain any such office or agency or shall
fail to furnish the Indenture Trustee with the address thereof, such surrenders, notices and demands may be made or served at the Corporate Trust Office, and the Issuer hereby appoints the Indenture Trustee as its agent to receive all such
surrenders, notices and demands. 
  
 SECTION 3.3 Money for
Payments To Be Held in Trust. 
  
 (a) As provided in Section
8.2, all payments of amounts due and payable with respect to the Notes that are to be made from amounts withdrawn from the Trust Accounts shall be made on behalf of the Issuer by the Indenture Trustee or by another Paying Agent, and no amounts so
withdrawn from the Trust Accounts shall be paid over to the Issuer, except as provided in this Section 3.3. 
  
 (b) On or before each Distribution Date and Redemption Date, the Issuer shall deposit or cause to be deposited in the Note Payment Account an aggregate
sum sufficient to pay the amounts then becoming due under the Notes, such sum to be held in trust for the benefit of 

  

 23 

 
the Persons entitled thereto, and (unless the Paying Agent is the Indenture Trustee) shall promptly notify the Indenture Trustee of its action or failure so
to act. 
  
 (c) The Issuer shall cause each Paying Agent other
than the Indenture Trustee to execute and deliver to the Indenture Trustee an instrument in which such Paying Agent shall agree with the Indenture Trustee (and if the Indenture Trustee acts as Paying Agent, it hereby so agrees), subject to the
provisions of this Section 3.3, that such Paying Agent shall: 
  
 (i) hold all sums held by it for the payment of amounts due with respect to the Notes in trust for the benefit of the Persons entitled thereto until such sums shall be paid to such Persons or otherwise disposed of as
herein provided and pay such sums to such Persons as herein provided; 
  
 (ii) give the Indenture Trustee notice of any default by the Issuer (or any other obligor upon the Notes) of which it has actual knowledge in the making of any payment required to be made with respect to the Notes;

  
 (iii) at any time during the continuance of
any such default, upon the written request of the Indenture Trustee, forthwith pay to the Indenture Trustee all sums so held in trust by such Paying Agent; 
  
 (iv) immediately resign as a Paying Agent and forthwith pay to the Indenture Trustee all sums held by it in trust for payment of the Notes
if at any time it ceases to meet the standards required to be met by a Paying Agent at the time of its appointment; and 
  
 (v) comply with all requirements of the Code and any state or local tax law with respect to the withholding from any payments made by it
on the Notes of any applicable withholding taxes imposed thereon and with respect to any applicable reporting requirements in connection therewith. 
  
 (d) The Issuer may at any time, for the purpose of obtaining the satisfaction and discharge of this Indenture or for any other purpose, by Issuer Order
direct any Paying Agent to pay to the Indenture Trustee all sums held in trust by such Paying Agent, such sums to be held by the Indenture Trustee upon the same trusts as those upon which such sums were held by such Paying Agent, and upon such
payment by any Paying Agent to the Indenture Trustee, such Paying Agent shall be released from all further liability with respect to such sums. 
  
 (e) Subject to applicable laws with respect to escheat of funds, any money held by the Indenture Trustee or any Paying Agent in trust for the payment of
any amount due with respect to any Note and remaining unclaimed for two (2) years after such amount has become due and payable shall be discharged from such trust and be paid to the Issuer on Issuer Request, and the Holder of such Note shall
thereafter, as an unsecured general creditor, look only to the Issuer for payment thereof (but only to the extent of the amounts so paid to the Issuer), and all liability of the Indenture Trustee or such Paying Agent with respect to such trust money
shall thereupon cease; provided, however, that the Indenture Trustee or such Paying Agent, before being required to make any such repayment, shall at the expense and direction of the Issuer cause to be published once, in a newspaper
published in the English language, customarily published 

  

 24 

 
on each Business Day and of general circulation in The City of New York, notice that such money remains unclaimed and that, after a date specified therein,
which shall not be less than thirty (30) days from the date of such publication, any unclaimed balance of such money then remaining shall be repaid to the Issuer. The Indenture Trustee shall also adopt and employ, at the expense and direction of the
Issuer, any other reasonable means of notification of such repayment (including mailing notice of such repayment to Holders whose Notes have been called but have not been surrendered for redemption in whole pursuant to Section 10.1 or whose right to
or interest in monies due and payable but not claimed is determinable from the records of the Indenture Trustee or of any Paying Agent at the last address of record for each such Holder). 
  
 SECTION 3.4 Existence. The Issuer shall keep in full effect its existence, rights and franchises as a statutory trust
under the laws of the State of Delaware (unless it becomes, or any successor Issuer hereunder is or becomes, organized under the laws of any other State or of the United States, in which case the Issuer shall keep in full effect its existence,
rights and franchises under the laws of such other jurisdiction) and shall obtain and preserve its qualification to do business in each jurisdiction in which such qualification is or shall be necessary to protect the validity and enforceability of
this Indenture, the Notes, the Collateral and each other instrument or agreement included in the Trust Estate. 
  
 SECTION 3.5 Protection of Trust Estate. The Issuer shall from time to time authorize, execute and deliver all such supplements and amendments
hereto and all such financing statements, continuation statements, instruments of further assurance and other instruments, and shall take such other action, necessary or advisable to: 
  
 (i) maintain or preserve the lien and security interest (and the priority thereof) of this Indenture or
carry out more effectively the purposes hereof; 
  
 (ii) perfect, publish notice of or protect the validity of any Grant made or to be made by this Indenture; 
  
 (iii) enforce any of the Collateral; or 
  
 (iv) preserve and defend title to the Trust Estate and the rights of the Indenture Trustee and the Noteholders in the Trust Estate against
the claims of all Persons. 
  
 The Issuer hereby authorizes the Indenture Trustee
to file any financing statement or continuation statement required pursuant to this Section 3.5 and designates the Indenture Trustee as its agent and attorney-in-fact to execute any other instrument required to be executed pursuant to this Section
3.5. 
  
 SECTION 3.6 Opinions as to Trust Estate.

  
 (a) On the Closing Date, the Issuer shall deliver to the
Indenture Trustee an Opinion of Counsel substantially in the form attached as Exhibit D. 
  
 (b) On or before March 31 of each year (commencing with the year 2006), the Issuer shall deliver to the Depositor and the Indenture Trustee an Opinion of Counsel either 

  

 25 

 
stating that, in the opinion of such counsel, such action has been taken with respect to the recording, filing, re-recording and refiling of this Indenture,
any indentures supplemental hereto and any other requisite documents and with respect to the authorization and filing of any financing statements and continuation statements as is necessary to maintain the lien and security interest created by this
Indenture and reciting the details of such action or stating that, in the opinion of such counsel, no such action is necessary to maintain such lien and security interest. Such Opinion of Counsel shall also describe the recording, filing,
re-recording and refiling of this Indenture, any indentures supplemental hereto and any other requisite documents and the authorization and filing of any financing statements and continuation statements that shall, in the opinion of such counsel, be
required to maintain the lien and security interest of this Indenture until March 31 in the following year. 
  
 SECTION 3.7 Performance of Obligations; Servicing of Receivables. 
  
 (a) The Issuer shall not take any action and shall use its best efforts not to permit any action to be taken by others that
would release any Person from any of such Person’s material covenants or obligations under any instrument or agreement included in the Trust Estate or that would result in the amendment, hypothecation, subordination, termination or discharge
of, or impair the validity or effectiveness of, any such instrument or agreement, except as expressly provided in this Indenture and the other Transaction Documents. 
  
 (b) The Issuer may contract with other Persons to assist it in performing its duties under this Indenture, and any
performance of such duties by a Person identified to the Indenture Trustee in an Officer’s Certificate shall be deemed to be action taken by the Issuer. Initially, the Issuer has contracted with the Servicer and the Administrator to assist the
Issuer in performing its duties under this Indenture. 
  
 (c) The
Issuer shall punctually perform and observe all of its obligations and agreements contained in this Indenture, the other Transaction Documents and the instruments and agreements included in the Trust Estate, including filing or causing to be filed
all financing statements and continuation statements required to be filed under the Relevant UCC by the terms of this Indenture and the Sale and Servicing Agreement in accordance with and within the time periods provided for herein and therein.

  
 (d) If the Issuer shall have knowledge of the occurrence of an
Event of Servicing Termination, the Issuer shall promptly notify the Depositor, the Indenture Trustee and the Rating Agencies in writing of such event and shall specify in such notice the action, if any, the Issuer is taking in respect of such
default. If an Event of Servicing Termination shall arise from the failure of the Servicer to perform any of its duties or obligations under the Sale and Servicing Agreement with respect to the Receivables, the Issuer shall take all reasonable steps
available to it to remedy such failure. 
  
 (e) As promptly as
possible after the giving of notice of termination to the Servicer of the Servicer’s rights and powers pursuant to Section 8.1 of the Sale and Servicing Agreement, the Issuer may (subject to the rights of the Indenture Trustee to direct such
appointment pursuant to Section 8.2 of the Sale and Servicing Agreement) appoint a successor servicer (the “Successor Servicer”), and such Successor Servicer shall accept its appointment by 

  

 26 

 
a written assumption in a form acceptable to the Indenture Trustee. In the event that a Successor Servicer has not been appointed or has not accepted its
appointment at the time when the Servicer ceases to act as Servicer, the Indenture Trustee, without further action, shall be the successor to the Servicer in all respects in accordance with Section 8.2 of the Sale and Servicing Agreement. The
Indenture Trustee may resign as the Servicer by giving written notice of such resignation to the Issuer and in such event shall be released from such duties and obligations, such release not to be effective until the date a new servicer enters into
a servicing agreement with the Issuer as provided below. Upon delivery of any such notice to the Issuer, the Issuer shall obtain a new servicer as the Successor Servicer under the Sale and Servicing Agreement. Any Successor Servicer (other than the
Indenture Trustee) shall (i) be an established financial institution having a net worth of not less than $50,000,000 and whose regular business includes the servicing of motor vehicle installment sale contracts and (ii) enter into a servicing
agreement with the Issuer having substantially the same provisions as the provisions of the Sale and Servicing Agreement applicable to the Servicer. If, within thirty (30) days after the delivery of the notice referred to above, the Issuer shall not
have obtained such a new servicer, the Indenture Trustee may appoint, or may petition a court of competent jurisdiction to appoint, a Successor Servicer. In connection with any such appointment, the Indenture Trustee may make such arrangements for
the compensation of such successor as it and such successor shall agree, subject to the limitations set forth below and in the Sale and Servicing Agreement, and, in accordance with Section 8.2 of the Sale and Servicing Agreement, the Issuer shall
enter into an agreement with such successor for the servicing of the Receivables (such agreement to be in form and substance satisfactory to the Indenture Trustee). If the Indenture Trustee shall succeed to the Servicer’s duties as servicer of
the Receivables as provided herein, it shall do so in its individual capacity and not in its capacity as Indenture Trustee and, accordingly, the provisions of Article VI shall be inapplicable to the Indenture Trustee in its duties as the successor
to the Servicer and the servicing of the Receivables. In case the Indenture Trustee shall become successor to the Servicer under the Sale and Servicing Agreement, the Indenture Trustee shall be entitled to appoint as Servicer any one of its
Affiliates; provided, however, that the Indenture Trustee, in its capacity as the Servicer, shall be fully liable for the actions and omissions of such Affiliate in such capacity as Successor Servicer. Notwithstanding any other
provisions of this Indenture to the contrary, in no event shall the Indenture Trustee be liable for any servicing fee or for any differential in the amount of the servicing fee paid under the Sale and Servicing Agreement and the amount necessary to
induce any Successor Servicer to act as Successor Servicer under the Sale and Servicing Agreement. 
  
 (f) Upon any termination of the Servicer’s rights and powers pursuant to Section 8.1 of the Sale and Servicing Agreement, the Issuer shall promptly
notify the Depositor, the Indenture Trustee and the Rating Agencies in writing of such termination. Upon any appointment of a Successor Servicer by the Issuer, the Issuer shall promptly notify the Depositor, the Indenture Trustee and the Rating
Agencies in writing of such appointment, specifying in such notice the name and address of such Successor Servicer. 
  
 (g) The Issuer shall not waive timely performance by the Depositor, the Seller or the Servicer of their respective obligations under the Transaction
Documents if such waiver would reasonably be expected to materially adversely affect the interests of the Noteholders. 
  

 27 

 SECTION 3.8 Negative Covenants. If any Notes are Outstanding, the Issuer shall not: 
  
 (i) except as expressly permitted by this Indenture, the
Trust Agreement, the Receivables Purchase Agreement or the Sale and Servicing Agreement, sell, transfer, exchange or otherwise dispose of any of the properties or assets of the Issuer, including those included in the Trust Estate, unless directed to
do so in writing by the Indenture Trustee; 
  
 (ii) claim any credit on, or make any deduction from the principal or interest payable in respect of, the Notes (other than amounts properly withheld from such payments under the Code or applicable state law) or assert any claim against any
present or former Noteholder by reason of the payment of taxes levied or assessed upon the Issuer; 
  
 (iii) dissolve or liquidate in whole or in part; 
  

(iv) (A) permit the validity or effectiveness of this Indenture to be impaired, or permit the lien of this Indenture to be amended,
hypothecated, subordinated, terminated or discharged, or permit any Person to be released from any covenants or obligations with respect to the Notes under this Indenture except as may be expressly permitted hereby, (B) permit any lien, charge,
excise, claim, security interest, mortgage or other encumbrance (other than the lien of this Indenture) to be created on or extend to or otherwise arise upon or burden the Trust Estate or any part thereof or any interest therein or the proceeds
thereof (other than tax liens, mechanics’ liens and other liens that arise by operation of law, in each case on any of the Financed Vehicles and arising solely as a result of an action or omission of the related Obligor) or (C) permit the lien
of this Indenture not to constitute a valid and perfected first priority (other than with respect to any such tax, mechanics’ or other lien) security interest in the Trust Estate; 
  
 (v) engage in any activities other than financing, acquiring, owning, pledging and managing the Receivables
as contemplated by the Receivables Purchase Agreement, the Trust Agreement, the Sale and Servicing Agreement and this Indenture and activities incidental to such activities; or 
  
 (vi) incur, assume or guarantee any indebtedness other than the indebtedness evidenced by the Notes or
indebtedness otherwise permitted by the Receivables Purchase Agreement, the Trust Agreement, the Sale and Servicing Agreement or this Indenture. 
  
 SECTION 3.9 Annual Statement as to Compliance. On or before May 31 of each year (commencing with the year 2006), the Issuer shall deliver to the
Depositor and the Indenture Trustee an Officer’s Certificate stating, as to the Authorized Officer signing such Officer’s Certificate, that: 
  
 (i) a review of the activities of the Issuer during the preceding Trust Fiscal Year (or, in the case of the Officer’s Certificate to
be delivered in the year 2006, during the period beginning on the Closing Date and ending on February 28, 2006) and of 

  

 28 

 
its performance under this Indenture has been made under such Authorized Officer’s supervision; and 
  
 (ii) to the best of such Authorized Officer’s
knowledge, based on such review, the Issuer has complied with all conditions and covenants under this Indenture throughout such preceding Trust Fiscal Year (or, in the case of the Officer’s Certificate to be delivered in the year 2006, during
the period beginning on the Closing Date and ending on February 28, 2006) or, if there has been a default in its compliance with any such condition or covenant, specifying each such default known to such Authorized Officer and the nature and status
thereof. 
  
 SECTION 3.10 Issuer May Consolidate, etc., Only on
Certain Terms. 
  
 (a) The Issuer shall not consolidate or
merge with or into any other Person, unless: 
  
 (i) the Person formed by or surviving such consolidation or merger (if other than the Issuer) shall be a Person organized and existing under the laws of the United States or any State and shall expressly assume, by an indenture supplemental
hereto, executed and delivered to the Indenture Trustee, in form satisfactory to the Depositor and the Indenture Trustee, the due and punctual payment of the principal of and interest on all Notes and the performance or observance of every agreement
and covenant of this Indenture on the part of the Issuer to be performed or observed, all as provided herein; 
  
 (ii) immediately after giving effect to such transaction, no Default or Event of Default shall have occurred and be continuing;

  
 (iii) the Rating Agency Condition shall have
been satisfied with respect to such transaction; 
  
 (iv) the Issuer shall have received an Opinion of Counsel (and shall have delivered copies thereof to the Indenture Trustee) to the effect that such transaction will not have any material adverse tax consequence to the Issuer, any
Noteholder or any Certificateholder; 
  
 (v) any
action that is necessary to maintain the lien and security interest created by this Indenture shall have been taken; and 
  
 (vi) the Issuer shall have delivered to the Indenture Trustee an Officer’s Certificate and an Opinion of Counsel each stating that
such consolidation or merger and such supplemental indenture comply with this Article III and that all conditions precedent provided for in this Indenture relating to such transaction have been complied with (including any filing required by the
Exchange Act). 
  

 29 

 (b) Other than as specifically contemplated by the Transaction Documents, the Issuer shall not convey or
transfer any of its properties or assets, including those included in the Trust Estate, to any other Person, unless: 
  
 (i) the Person that acquires by conveyance or transfer the properties or assets of the Issuer the conveyance or transfer of which is
hereby restricted (A) shall be a United States citizen or a Person organized and existing under the laws of the United States or any State, (B) shall expressly assume, by an indenture supplemental hereto, executed and delivered to the Indenture
Trustee, in form satisfactory to the Indenture Trustee, the due and punctual payment of the principal of and interest on all Notes and the performance or observance of every agreement and covenant of this Indenture on the part of the Issuer to be
performed or observed, all as provided herein, (C) shall expressly agree by means of such supplemental indenture that all right, title and interest so conveyed or transferred shall be subject and subordinate to the rights of the Holders of the
Notes, (D) unless otherwise provided in such supplemental indenture, shall expressly agree to indemnify, defend and hold harmless the Issuer against and from any loss, liability or expense arising under or related to this Indenture and the Notes and
(E) shall expressly agree by means of such supplemental indenture that such Person (or if a group of Persons, then one specified Person) shall make all filings with the Commission (and any other appropriate Person) required by the Exchange Act in
connection with the Notes; 
  
 (ii) immediately
after giving effect to such transaction, no Default or Event of Default shall have occurred and be continuing; 
  
 (iii) the Rating Agency Condition shall have been satisfied with respect to such transaction; 
  
 (iv) the Issuer shall have received an Opinion of Counsel
(and shall have delivered copies thereof to the Indenture Trustee and the Depositor) to the effect that such transaction will not have any material adverse tax consequence to the Issuer, any Noteholder or any Certificateholder; 
  
 (v) any action that is necessary to maintain the lien and
security interest created by this Indenture shall have been taken; 
  
 (vi) the Issuer shall have delivered to the Indenture Trustee and the Depositor an Officer’s Certificate and an Opinion of Counsel each stating that such conveyance or transfer and such supplemental indenture
comply with this Article III and that all conditions precedent provided for in this Indenture relating to such transaction have been complied with (including any filing required by the Exchange Act). 
  
 SECTION 3.11 Successor or Transferee. 
  
 (a) Upon any consolidation or merger of the Issuer in accordance with Section
3.10(a), the Person formed by or surviving such consolidation or merger (if other than the Issuer) shall succeed to, and be substituted for, and may exercise every right and power of, the Issuer under this Indenture with the same effect as if such
Person had been named as the Issuer herein. 
  
 (b) Upon any
conveyance or transfer of all the properties and assets of the Issuer in accordance with Section 3.10(b), CarMax Auto Owner Trust 2005-1 shall be released from every covenant and agreement of this Indenture to be observed or performed on the part of

  

 30 

 
the Issuer with respect to the Notes immediately upon the delivery of written notice to the Indenture Trustee and the Depositor stating that CarMax Auto
Owner Trust 2005-1 is to be so released. 
  
 SECTION 3.12 No
Other Business. The Issuer shall not engage in any business other than financing, acquiring, owning and pledging the Receivables in the manner contemplated by this Indenture and the other Transaction Documents and activities incidental thereto.

  
 SECTION 3.13 No Borrowing. The Issuer shall not issue,
incur, assume, guarantee or otherwise become liable, directly or indirectly, for any indebtedness except for the Notes. 
  
 SECTION 3.14 Servicer’s Obligations. The Issuer shall cause the Servicer to comply with the Sale and Servicing Agreement. 
  
 SECTION 3.15 Guarantees, Loans, Advances and Other Liabilities. Except
as contemplated by this Indenture and the other Transaction Documents, the Issuer shall not make any loan or advance or credit to, or guarantee (directly or indirectly or by an instrument having the effect of assuring another’s payment or
performance on any obligation or capability of so doing or otherwise), endorse or otherwise become contingently liable, directly or indirectly, in connection with the obligations, stocks or dividends of, or own, purchase, repurchase or acquire (or
agree contingently to do so) any stock, obligations, assets or securities of, or any other interest in, or make any capital contribution to, any other Person. 
  

SECTION 3.16 Capital Expenditures. The Issuer shall not make any expenditure (by long-term or operating lease or otherwise) for capital assets
(either realty or personalty). 
  
 SECTION 3.17 Restricted
Payments. The Issuer shall not, directly or indirectly, (i) make any distribution (by reduction of capital or otherwise), whether in cash, property, securities or a combination thereof, to the Owner Trustee or any owner of a beneficial interest
in the Issuer or otherwise with respect to any ownership or equity interest or security in or of the Issuer or to the Servicer, (ii) redeem, purchase, retire or otherwise acquire for value any such ownership or equity interest or security or (iii)
set aside or otherwise segregate any amounts for any such purpose; provided, however, that the Issuer may make, or cause to be made, distributions as contemplated by, and to the extent funds are available for such purpose under, the
Sale and Servicing Agreement, the Trust Agreement or this Indenture. The Issuer shall not, directly or indirectly, make payments to or distributions from the Collection Account, the Note Payment Account, the Certificate Payment Account, the Reserve
Account or the Secondary Reserve Account except in accordance with this Indenture and the other Transaction Documents. 
  
 SECTION 3.18 Notice of Events of Default. The Issuer shall give the Indenture Trustee, the Depositor and the Rating Agencies prompt written notice
of each Event of Default hereunder, each default on the part of the Depositor or the Servicer of its obligations under the Sale and Servicing Agreement and each default on the part of the Seller or the Depositor of its obligations under the
Receivables Purchase Agreement. 
  

 31 

 SECTION 3.19 Removal of Administrator. For so long as any Notes are Outstanding, the Issuer shall not
remove the Administrator without cause unless the Rating Agency Condition shall have been satisfied with respect to such removal. 
  
 SECTION 3.20 Further Instruments and Acts. Upon request of the Indenture Trustee, the Issuer shall execute and deliver such further instruments and do
such further acts as may be reasonably necessary or proper to carry out more effectively the purpose of this Indenture. 
  
 ARTICLE IV 
 SATISFACTION AND DISCHARGE

  
 SECTION 4.1 Satisfaction and Discharge of Indenture.
This Indenture shall cease to be of further effect with respect to the Notes, except as to (i) rights of registration of transfer and exchange, (ii) substitution of mutilated, destroyed, lost or stolen Notes, (iii) rights of Noteholders to receive
payments of principal thereof and interest thereon, (iv) Sections 3.3, 3.4, 3.5, 3.8, 3.10, 3.12, 3.13, 3.16 and 3.17, (v) the rights, obligations and immunities of the Indenture Trustee hereunder (including the rights of the Indenture Trustee under
Section 6.7 and the obligations of the Indenture Trustee under Section 4.3) and (vi) the rights of Noteholders as beneficiaries hereof with respect to the property so deposited with the Indenture Trustee payable to all or any of them, and the
Indenture Trustee, on demand of and at the expense of the Issuer, shall execute proper instruments acknowledging satisfaction and discharge of this Indenture with respect to the Notes, when: 
  
 (A) either 
  
 (1) all Notes of all Classes theretofore authenticated and delivered (other than (i) Notes that have been
destroyed, lost or stolen and that have been replaced or paid as provided in Section 2.6 and (ii) Notes for whose payment money has theretofore been irrevocably deposited in trust or segregated and held in trust by the Issuer and thereafter repaid
to the Issuer or discharged from such trust, as provided in Section 3.3) have been delivered to the Indenture Trustee for cancellation; or 
  
 (2) all Notes not theretofore delivered to the Indenture Trustee for cancellation have become due and payable and the Issuer has
irrevocably deposited or caused to be irrevocably deposited with the Indenture Trustee, in trust, cash or direct obligations of or obligations guaranteed by the United States (which will mature prior to the date needed), in an amount sufficient to
pay and discharge the entire indebtedness on such Notes when due on the applicable Class Final Distribution Date or Redemption Date (if Notes shall have been called for redemption pursuant to Section 10.1(a)), as the case may be; 
  
 (B) the Issuer has paid or caused to be paid all other sums payable by the
Issuer hereunder and under the other Transaction Documents; 
  
 (C) the Issuer has delivered to the Depositor and the Indenture Trustee an Officer’s Certificate, an Opinion of Counsel and (if required by the TIA or the Indenture Trustee) an Independent Certificate from a firm of certified public
accountants, each meeting the 

  

 32 

 
applicable requirements of Section 11.1(a) and, subject to Section 11.2, each stating that all conditions precedent provided for in this Indenture relating
to the satisfaction and discharge of this Indenture have been complied with; and 
  
 (D) the Issuer has delivered to the Depositor and the Indenture Trustee an Opinion of Counsel to the effect that the satisfaction and discharge of this Indenture pursuant to this Section 4.1 will not cause any
Noteholder to be treated as having sold or exchanged any of its Notes for purposes of Section 1001 of the Code. 
  
 SECTION 4.2 Satisfaction, Discharge and Defeasance of the Notes. 
  
 (a) Upon satisfaction of the conditions set forth in subsection (b) below, the Issuer shall be deemed to have paid and
discharged the entire indebtedness on all the Notes Outstanding, and the provisions of this Indenture, as it relates to such Notes, shall no longer be in effect (and the Indenture Trustee, at the expense of the Issuer, shall execute proper
instruments acknowledging the same), except as to: 
  
 (i) the rights of the Noteholders to receive, from the trust funds described in subsection (b)(i), payment of the principal of and interest on the Notes Outstanding at maturity of such principal or interest; 
  
 (ii) the obligations of the Issuer with respect to the Notes
under Sections 2.5, 2.6, 3.2 and 3.3; 
  
 (iii)
the obligations of the Issuer to the Indenture Trustee under Section 6.7; and 
  
 (iv) the rights, powers, trusts and immunities of the Indenture Trustee hereunder and the duties of the Indenture Trustee hereunder. 
  
 (b) The satisfaction, discharge and defeasance of the Notes pursuant to subsection (a) of this Section 4.2 is subject to the
satisfaction of all of the following conditions: 
  
 (i) the Issuer has deposited or caused to be deposited irrevocably (except as provided in Section 4.4) with the Indenture Trustee as trust funds in trust, specifically pledged as security for, and dedicated solely to, the benefit of the
Holders of the Notes, which, through the payment of interest and principal in respect thereof in accordance with their terms will provide, not later than one day prior to the due date of any payment referred to below, money in an amount sufficient,
in the opinion of a nationally recognized firm of independent certified public accountants expressed in a written certification thereof delivered to the Indenture Trustee, to pay and discharge the entire indebtedness on the Notes Outstanding, for
principal thereof and interest thereon to the date of such deposit (in the case of Notes that have become due and payable) or to the maturity of such principal and interest, as the case may be; 
  
 (ii) such deposit will not result in a breach or violation
of, or constitute an event of default under, any Transaction Document or other agreement or instrument to which the Issuer is bound; 
  

 33 

 (iii) no Event of Default has occurred and is continuing on the date of such deposit or
on the ninety-first (91st) day after such date; 
  
 (iv) the Issuer has delivered to the Depositor and the Indenture Trustee an Opinion of Counsel to the effect that the satisfaction, discharge and defeasance of the Notes pursuant to this Section 4.2 will not cause any Noteholder to be
treated as having sold or exchanged any of its Notes for purposes of Section 1001 of the Code; and 
  
 (v) the Issuer has delivered to the Depositor and the Indenture Trustee an Officer’s Certificate and an Opinion of Counsel, each
stating that all conditions precedent provided for in this Indenture relating to the defeasance contemplated by this Section 4.2 have been complied with. 
  
 SECTION 4.3 Application of Trust Money. All monies deposited with the Indenture Trustee pursuant to Section 4.1 shall be held in trust and applied
by the Indenture Trustee, in accordance with the provisions of the Notes and this Indenture, to the payment, either directly or through any Paying Agent, to the Holders of the Notes for the payment or redemption of which such monies have been
deposited with the Indenture Trustee, of all sums due and to become due thereon for principal and interest, but such monies need not be segregated from other funds except to the extent required herein or in the Sale and Servicing Agreement or
required by law. 
  
 SECTION 4.4 Repayment of Monies Held by
Paying Agent. In connection with the satisfaction and discharge of this Indenture with respect to the Notes, all monies then held by any Paying Agent other than the Indenture Trustee under the provisions of this Indenture with respect to such
Notes shall, upon demand of the Issuer, be paid to the Indenture Trustee to be held and applied according to Section 3.3, and thereupon such Paying Agent shall be released from all further liability with respect to such monies. 
  
 ARTICLE V 
 REMEDIES 
  
 SECTION 5.1 Events of Default. “Event of Default” means the occurrence of any one of the following events (whatever the reason for such event and whether such event shall be voluntary or involuntary or be effected by
operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body): 
  
 (i) default in the payment of any interest on any Note of the Controlling Class when the same becomes due and payable and such default
shall continue for a period of five (5) Business Days; 
  
 (ii) default in the payment of any principal due and payable on any Class of Notes on the related Class Final Distribution Date; 
  
 (iii) default in the observance or performance of any material covenant or agreement of the Issuer made in this Indenture (other than a
covenant or 

  

 34 

 
agreement a default in the observance or performance of which is specifically dealt with elsewhere in this Section 5.1), and such default shall continue or
not be cured for a period of sixty (60) days after there shall have been given, by registered or certified mail, to the Issuer by the Depositor or the Indenture Trustee or to the Issuer, the Depositor and the Indenture Trustee by the Holders of
Notes evidencing not less than 25% of the Note Balance of the Controlling Class, a written notice specifying such default and requiring it to be remedied and stating that such notice is a notice of Default hereunder; 
  
 (iv) any representation or warranty of the Issuer made in
this Indenture or in any certificate delivered pursuant hereto or in connection herewith proving to have been incorrect in any material respect as of the time when the same shall have been made, and the circumstance or condition in respect of which
such representation or warranty was incorrect shall not have been eliminated or otherwise cured for a period of thirty (30) days after there shall have been given, by registered or certified mail, to the Issuer by the Depositor or the Indenture
Trustee or to the Issuer, the Depositor and to the Indenture Trustee by the Holders of Notes evidencing not less than 25% of the Note Balance of the Controlling Class, a written notice specifying such incorrect representation or warranty and
requiring it to be remedied and stating that such notice is a notice of Default hereunder; 
  
 (v) the filing of a decree or order for relief by a court having jurisdiction in the premises in respect of the Issuer or any substantial
part of the Trust Estate in an involuntary case under any applicable federal or state bankruptcy, insolvency or other similar law now or hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar
official of the Issuer or for any substantial part of the Trust Estate, or ordering the winding-up or liquidation of the Issuer’s affairs, and such decree or order shall remain unstayed and in effect for a period of sixty (60) consecutive days;
and 
  
 (vi) the commencement by the Issuer of a
voluntary case under any applicable federal or state bankruptcy, insolvency or other similar law now or hereafter in effect, or the consent by the Issuer to the entry of an order for relief in an involuntary case under any such law, or the consent
by the Issuer to the appointment or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of the Issuer or for any substantial part of the Trust Estate, or the making by the Issuer of any general
assignment for the benefit of creditors, or the failure by the Issuer generally to pay its debts as such debts become due, or the taking of any action by the Issuer in furtherance of any of the foregoing. 
  
 The Issuer shall deliver to the Indenture Trustee and the Depositor, within
five (5) days after the occurrence of any event that, with notice or the lapse of time or both, would become an Event of Default under clause (iii) or (iv), written notice of such Default in the form of an Officer’s Certificate, the status of
such Default and what action the Issuer is taking or proposes to take with respect to such Default. 
  

 35 

 SECTION 5.2 Acceleration of Maturity; Rescission and Annulment. 
  
 (a) If an Event of Default shall have occurred and be continuing, the
Indenture Trustee or the Holders of Notes evidencing not less than 51% of the Note Balance of the Controlling Class may, upon prior written notice to each Rating Agency, declare the Notes to be immediately due and payable by written notice to the
Issuer (and to the Indenture Trustee if given by Noteholders), the Depositor and the Servicer, and upon any such declaration the unpaid principal amount of the Notes, together with accrued and unpaid interest thereon through the date of
acceleration, shall become immediately due and payable. 
  
 (b) If
the Notes have been declared immediately due and payable following an Event of Default, before a judgment or decree for payment of the amount due has been obtained by the Indenture Trustee as hereinafter provided in this Article V, the Holders of
Notes evidencing not less than 51% of the Note Balance of the Controlling Class, by written notice to the Issuer, the Depositor and the Indenture Trustee, may rescind and annul such declaration of acceleration and its consequences if: 
  
 (i) the Issuer has paid or deposited with the Indenture
Trustee a sum sufficient to pay all principal of and interest on the Notes and all other amounts that would then be due hereunder or upon the Notes if the Event of Default giving rise to such acceleration had not occurred; and 
  
 (ii) all Events of Default, other than the nonpayment of the
principal of the Notes that has become due solely by such acceleration, have been cured or waived as provided in Section 5.12. 
  
 No such rescission shall affect any subsequent default or impair any right consequent thereto. 
  
 SECTION 5.3 Collection of Indebtedness and Suits for Enforcement by Indenture Trustee. 
  
 (a) If (i) default is made in the payment of any interest on any Note when
the same becomes due and payable, and such default continues for a period of five (5) Business Days, or (ii) default is made in the payment of the principal of any Note when the same becomes due and payable, the Issuer shall, upon demand of the
Indenture Trustee, pay to the Indenture Trustee, for the benefit of the Holders of the Notes, the amount then due and payable on the Notes for principal and interest, with interest upon the overdue principal at the applicable Note Rate and, to the
extent payment at such rate of interest shall be legally enforceable, upon overdue installments of interest at the applicable Note Rate and in addition thereto such further amount as shall be sufficient to cover the costs and expenses of collection,
including the reasonable compensation, expenses, disbursements and advances of the Indenture Trustee and its agents and counsel and other amounts due and owing to the Indenture Trustee pursuant to Section 6.7. 
  
 (b) If the Issuer shall fail forthwith to pay such amounts upon such demand,
the Indenture Trustee, in its own name and as trustee of an express trust, may institute a Proceeding for the collection of the sums so due and unpaid, and may prosecute such Proceeding to judgment or final decree, and may enforce the same against
the Issuer or any other obligor upon the Notes and collect in the manner provided by law out of the property of the Issuer or such other obligor, wherever situated, the monies adjudged or decreed to be payable. 
  

 36 

 (c) If an Event of Default shall have occurred and be continuing, the Indenture Trustee may, as more
particularly provided in Section 5.4, in its discretion, proceed to protect and enforce its rights and the rights of the Noteholders by such appropriate Proceedings as the Indenture Trustee shall deem most effective to protect and enforce such
rights, whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein or to enforce any other proper remedy or legal or equitable right vested in the Indenture Trustee by
this Indenture or by law. 
  
 (d) If there shall be pending,
relative to the Issuer or any other obligor upon the Notes or any Person having or claiming an ownership interest in the Trust Estate, Proceedings under Title 11 of the United States Code or any other applicable federal or state bankruptcy,
insolvency or other similar law, or if a receiver, assignee or trustee in bankruptcy or reorganization, liquidator, sequestrator or similar official shall have been appointed for or taken possession of the Issuer or its property or such other
obligor or Person, or if there shall be pending any other comparable judicial Proceedings relative to the Issuer or any other obligor upon the Notes, or to the creditors or property of the Issuer or such other obligor, the Indenture Trustee,
irrespective of whether the principal of any Notes shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Indenture Trustee shall have made any demand pursuant to the provisions of this
Section 5.3, shall be entitled and empowered, by intervention in such Proceedings or otherwise: 
  
 (i) to file and prove a claim or claims for the whole amount of principal and interest owing and unpaid in respect of the Notes and to
file such other papers or documents as may be necessary or advisable in order to have the claims of the Indenture Trustee (including any claim for reasonable compensation to the Indenture Trustee and each predecessor Indenture Trustee, and their
respective agents and attorneys, and all other amounts due and owing to the Indenture Trustee pursuant to Section 6.7) and of the Noteholders allowed in such Proceedings; 
  
 (ii) unless prohibited by applicable law and regulations, to vote on behalf of the Noteholders in any
election of a trustee, a standby trustee or Person performing similar functions in any such Proceedings; 
  
 (iii) to collect and receive any monies or other property payable or deliverable on any such claims and to pay all amounts received with
respect to the claims of the Noteholders and of the Indenture Trustee on their behalf; and 
  
 (iv) to file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of the
Indenture Trustee or the Noteholders allowed in any judicial proceedings relative to the Issuer, its creditors and its property; 
  
 and any trustee, receiver, liquidator, custodian or other similar official in any such Proceeding is hereby authorized by each of the Noteholders to make payments to the
Indenture Trustee and, in the event that the Indenture Trustee shall consent to the making of payments directly to the Noteholders, to pay to the Indenture Trustee such amounts as shall be sufficient to cover reasonable compensation to the Indenture
Trustee and each predecessor Indenture Trustee, and 

  

 37 

 
their respective agents and attorneys, and all other amounts due and owing to the Indenture Trustee pursuant to Section 6.7. 
  
 (e) Nothing herein contained shall be deemed to authorize the Indenture
Trustee to authorize or consent to or vote for or accept or adopt on behalf of any Noteholder any plan of reorganization, arrangement, adjustment or composition affecting the Notes or the rights of any Holder thereof or to authorize the Indenture
Trustee to vote in respect of the claim of any Noteholder in any such proceeding except, as aforesaid, to vote for the election of a trustee in bankruptcy or similar Person. 
  
 (f) All rights of action and of asserting claims under this Indenture, or under any of the Notes, may be enforced by the
Indenture Trustee without the possession of any of the Notes or the production thereof in any trial or other Proceedings relative thereto, and any such action or Proceedings instituted by the Indenture Trustee shall be brought in its own name as
trustee of an express trust, and any recovery of judgment, subject to the payment of the expenses, disbursements and compensation of the Indenture Trustee, each predecessor Indenture Trustee and their respective agents and attorneys, shall be for
the ratable benefit of the Holders of the Notes. 
  
 (g) In any
Proceedings brought by the Indenture Trustee (and also any Proceedings involving the interpretation of any provision of this Indenture to which the Indenture Trustee shall be a party), the Indenture Trustee shall be held to represent all the
Noteholders, and it shall not be necessary to make any Noteholder a party to any such Proceedings. 
  
 SECTION 5.4 Remedies; Priorities. 
  
 (a) If the Notes have been declared immediately due and payable following an Event of Default, the Indenture Trustee may, or at the written direction of
the Holders of Notes evidencing not less than 51% of the Note Balance of the Controlling Class shall, take one or more of the following actions as so directed (subject to Section 5.5): 
  
 (i) institute Proceedings in its own name and as trustee of an express trust for the collection of all
amounts then payable on the Notes or under this Indenture with respect thereto, whether by declaration or otherwise, enforce any judgment obtained, and collect from the Issuer and any other obligor upon the Notes monies adjudged due; 
  
 (ii) institute Proceedings from time to time for the
complete or partial foreclosure of this Indenture with respect to the Trust Estate; 
  
 (iii) exercise any remedies of a secured party under the Relevant UCC and take any other appropriate action to protect and enforce the
rights and remedies of the Indenture Trustee and the Noteholders; and 
  
 (iv) sell the Trust Estate or any portion thereof or rights or interest therein at one or more public or private sales called and conducted in any manner permitted by law; 
  

 38 

 provided, however, that the Indenture Trustee may not sell or otherwise liquidate the Trust Estate at the
direction of the Holders following an Event of Default, other than an Event of Default described in Section 5.1(i) or (ii), unless (A) the Holders of 100% of the Note Balance consent thereto, (B) the proceeds of such sale or liquidation will be
sufficient to pay in full the Note Balance and all accrued but unpaid interest on the Outstanding Notes or (C) the Indenture Trustee determines that the Trust Estate will not continue to provide sufficient funds for the payment of principal of and
interest on the Notes as they would have become due if the Notes had not been declared immediately due and payable, and the Indenture Trustee obtains the consent of the Holders of Notes evidencing not less than 66 2/3% of the Note Balance of the
Controlling Class. In determining such sufficiency or insufficiency with respect to clauses (B) and (C) above, the Indenture Trustee may, but need not, obtain and rely upon an opinion of an Independent investment banking or accounting firm of
national reputation as to the feasibility of such proposed action and as to the sufficiency of the Trust Estate for such purpose. 
  
 (b) Notwithstanding the provisions of Section 2.8 or Section 8.2, if the Indenture Trustee collects any money or property pursuant to this Section 5.4 and
the Notes have been accelerated, it shall pay out such money or property (and other amounts, including all amounts held on deposit in the Reserve Account and all amounts held on deposit in the Secondary Reserve Account; provided,
however, that no amounts held on deposit in the Secondary Reserve Account shall be paid out pursuant to clause (i) below) in the following order of priority: 
  
 (i) first, to the Servicer, the Total Servicing Fee for the preceding Collection Period and any Unreimbursed
Servicer Advances for the preceding Collection Period; 
  
 (ii) second, on a pro rata basis, to the Class A Noteholders, the Total Note Interest for each Class of the Class A Notes; 
  
 (iii) third, if an Event of Default described in Section 5.1(i), (ii), (v) or (vi) has occurred, in the following order of priority:

  
 (A) to the Class A-1 Noteholders until the
principal amount of the Class A-1 Notes has been paid in full; 
  
 (B) to the Holders of each Class of the remaining Class A Notes, pro rata based on the outstanding principal amount of such Class of Class A Notes as of such Distribution Date, until the principal amount
of each such Class of the remaining Class A Notes has been paid in full; 
  
 (C) to the Class B Noteholders, the Total Note Interest for the Class B Notes; 
  
 (D) to the Class B Noteholders, until the principal amount of the Class B Notes has been paid in full; 
  
 (E) to the Class C Noteholders, the Total Note Interest for
the Class C Notes; 
  

 39 

 (F) to the Class C Noteholders, until the principal amount of the Class C Notes has been
paid in full; 
  
 (iv) fourth, if an Event of
Default described in Section 5.1(iii) or (iv) has occurred, in the following order of priority: 
  
 (A) to the Class B Noteholders, the Total Note Interest for the Class B Notes; 
  
 (B) to the Class C Noteholders, the Total Note Interest for
the Class C Notes; 
  
 (C) to the Class A-1
Noteholders until the principal amount of the Class A-1 Notes has been paid in full; 
  
 (D) to the Holders of each Class of the remaining Class A Notes, pro rata based on the outstanding principal amount of such
Class of Class A Notes as of such Distribution Date, until the principal amount of each such Class of the remaining Class A Notes has been paid in full; 
  
 (E) to the Class B Noteholders, until the principal amount of the Class B Notes has been paid in full; 
  
 (F) to the Class C Noteholders, until the principal amount
of the Class C Notes has been paid in full; 
  
 (v) fifth, if a Successor Servicer has been appointed pursuant to Section 8.2 of the Sale and Servicing Agreement, to such Successor Servicer, any Transition Costs due in connection with such transfer of servicing and not paid pursuant to
Section 8.1(a) of the Sale and Servicing Agreement plus the Additional Servicing Fee, if any, for the preceding Collection Period; 
  
 (vi) sixth, to the Indenture Trustee, all amounts due to the Indenture Trustee as compensation pursuant to Section 6.7 not previously paid
by the Administrator; and 
  
 (vii) seventh, to
the Certificateholders, any remaining amounts. 
  
 Prior to an
acceleration of the Notes following an Event of Default, if the Indenture Trustee collects any money or property pursuant to this Article V, such amounts shall be deposited in the Collection Account and distributed in accordance with Section 2.8 and
Section 8.2. 
  
 (c) The Indenture Trustee may fix a record date
and payment date for any payment to Noteholders pursuant to this Section 5.4. At least five (5) days before such record date, the Indenture Trustee on behalf of the Issuer shall mail to each Noteholder a notice that states the record date, the
payment date and the amount to be paid. 
  

 40 

 SECTION 5.5 Optional Preservation of the Receivables. If the Notes have been declared immediately
due and payable following an Event of Default, and such declaration and its consequences have not been rescinded and annulled, the Indenture Trustee may, but need not, elect to maintain possession of the Trust Estate and apply proceeds as if there
had been no declaration of acceleration; provided, however, that the Available Funds shall be applied in accordance with such declaration of acceleration in the manner specified in Section 4.6(d) of the Sale and Servicing Agreement. It
is the desire of the parties hereto and the Noteholders that there be at all times sufficient funds for the payment of principal of and interest on the Notes, and the Indenture Trustee shall take such desire into account when determining whether or
not to maintain possession of the Trust Estate. In determining whether to maintain possession of the Trust Estate, the Indenture Trustee may, but need not, obtain and rely upon an opinion of an Independent investment banking or accounting firm of
national reputation as to the feasibility of such proposed action and as to the sufficiency of the Trust Estate for such purpose. 
  
 SECTION 5.6 Limitation of Suits. No Holder of any Note shall have any right to institute any Proceeding with respect to this Indenture or for the
appointment of a receiver or trustee, or for any other remedy hereunder, unless: 
  
 (i) such Holder has previously given written notice to the Indenture Trustee of a continuing Event of Default; 
  
 (ii) the Holders of Notes evidencing not less than 25% of
the Note Balance of the Controlling Class have made written request to the Indenture Trustee to institute such Proceeding in respect of such Event of Default in its own name as Indenture Trustee hereunder; 
  
 (iii) such Holder or Holders have offered to the Indenture
Trustee reasonable indemnity against the costs, expenses and liabilities to be incurred in complying with such request; 
  
 (iv) the Indenture Trustee for sixty (60) days after its receipt of such notice, request and offer of indemnity has failed to institute
such Proceedings; and 
  
 (v) no direction
inconsistent with such written request has been given to the Indenture Trustee during such 60-day period by the Holders of Notes evidencing not less than 51% of the Note Balance of the Controlling Class. 
  
 It is understood and intended that no one or more Holders of Notes shall have
any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb or prejudice the rights of any other Holders of Notes or to obtain or to seek to obtain priority or preference over any other
Holders of Notes or to enforce any right under this Indenture, except in the manner herein provided. 
  
 In the event the Indenture Trustee shall receive conflicting or inconsistent requests and indemnity from two or more groups of Holders of Notes, each
evidencing less than 51% of the Note Balance of the Controlling Class, the Indenture Trustee in its sole discretion may determine what action, if any, shall be taken, notwithstanding any other provisions of this Indenture. 
  

 41 

 SECTION 5.7 Unconditional Rights of Noteholders to Receive Principal and Interest. Notwithstanding
any other provisions of this Indenture, the Holder of any Note shall have the right, which is absolute and unconditional, to receive payment of the principal of and interest, if any, on such Note on the respective due dates thereof expressed in such
Note or in this Indenture (or, in the case of redemption, on the Redemption Date) and to institute suit for the enforcement of any such payment, and such right shall not be impaired without the consent of such Holder. 
  
 SECTION 5.8 Restoration of Rights and Remedies. If the Indenture
Trustee or any Noteholder has instituted any Proceeding to enforce any right or remedy under this Indenture and such Proceeding has been discontinued or abandoned for any reason or has been determined adversely to the Indenture Trustee or such
Noteholder, then and in every such case the Issuer, the Indenture Trustee and the Noteholders shall, subject to any determination in such Proceeding, be restored severally and respectively to their former positions hereunder, and thereafter all
rights and remedies of the Indenture Trustee and the Noteholders shall continue as though no such Proceeding had been instituted. 
  
 SECTION 5.9 Rights and Remedies Cumulative. No right or remedy herein conferred upon or reserved to the Indenture Trustee or the Noteholders is
intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity
or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy. 
  
 SECTION 5.10 Delay or Omission Not a Waiver. No delay or omission of
the Indenture Trustee or any Noteholder to exercise any right or remedy accruing upon any Default or Event of Default shall impair any such right or remedy or constitute a waiver of any such Default or Event of Default or any acquiescence therein.
Every right and remedy given by this Article V or by law to the Indenture Trustee or the Noteholders may be exercised from time to time, and as often as may be deemed expedient, by the Indenture Trustee or the Noteholders, as the case may be.

  
 SECTION 5.11 Control by Noteholders of the Controlling
Class. The Holders of Notes evidencing not less than 51% of the Note Balance of the Controlling Class shall have the right to direct the time, method and place of conducting any Proceeding for any remedy available to the Indenture Trustee with
respect to the Notes or exercising any trust or power conferred on the Indenture Trustee; provided, however, that: 
  
 (i) such direction shall not be in conflict with any rule of law or with this Indenture; 
  
 (ii) subject to the express terms of Section 5.4, any
written direction to the Indenture Trustee to sell or liquidate the Trust Estate shall be by the Holders of Notes evidencing not less than 100% of the Note Balance; 
  

 42 

 (iii) if the conditions set forth in Section 5.5 have been satisfied and the Indenture
Trustee elects to retain the Trust Estate pursuant to such section, then any written direction to the Indenture Trustee by the Holders of Notes evidencing less than 100% of the Note Balance to sell or liquidate the Trust Estate shall be of no force
and effect; and 
  
 (iv) the Indenture Trustee
may take any other action deemed proper by the Indenture Trustee that is not inconsistent with such direction. 
  
 Notwithstanding the rights of Noteholders set forth in this Section 5.11, subject to Section 6.1, the Indenture Trustee need not take any action that it
reasonably believes might involve it in costs, expenses and liabilities for which it will not be adequately indemnified or might materially adversely affect the rights of any Noteholders not consenting to such action. 
  
 SECTION 5.12 Waiver of Past Defaults. Prior to the declaration of the
acceleration of the maturity of the Notes as provided in Section 5.2, the Holders of Notes evidencing not less than 51% of the Note Balance of the Controlling Class, may, on behalf of all Noteholders, waive any past Default or Event of Default and
its consequences except a Default or Event of Default (i) in the payment of principal of or interest on any of the Notes or (ii) in respect of a covenant or provision hereof that cannot be amended, supplemented or modified without the consent of all
the Noteholders. Upon any such waiver, the Issuer, the Indenture Trustee and the Noteholders shall be restored to their former positions and rights hereunder, respectively, but no such waiver shall extend to any subsequent or other Default or Event
of Default or impair any right consequent thereto. Upon any such waiver, such Default or Event of Default shall cease to exist and be deemed to have been cured and not to have occurred, and any Event of Default arising therefrom shall be deemed to
have been cured and not to have occurred, for every purpose of this Indenture, but no such waiver shall extend to any subsequent or other Default or Event of Default or impair any right consequent thereto. 
  
 SECTION 5.13 Undertaking for Costs. All parties to this Indenture
agree, and each Holder of any Note by such Holder’s acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit
against the Indenture Trustee for any action taken, suffered or omitted by it as Indenture Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess
reasonable costs, including reasonable attorney’s fees, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; provided, however, that the
provisions of this Section 5.13 shall not apply to (i) any suit instituted by the Indenture Trustee, (ii) any suit instituted by any Noteholder or group of Noteholders, in each case holding Notes evidencing in the aggregate more than 10% of the Note
Balance (or, in the case of any suit which is instituted by the Controlling Class, more than 10% of the Note Balance of the Controlling Class) or (iii) any suit instituted by any Noteholder for the enforcement of the payment of principal of or
interest on any Note on or after the respective due dates expressed in such Note and in this Indenture (or, in the case of redemption, on or after the Redemption Date). 
  

 43 

 SECTION 5.14 Waiver of Stay or Extension Laws. The Issuer covenants (to the extent that it may
lawfully do so) that it shall not at any time insist upon, or plead or in any manner whatsoever, claim or take the benefit or advantage of, any stay or extension law wherever enacted, now or at any time hereafter in force, that may affect the
covenants or the performance of this Indenture, and the Issuer (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants that it shall not hinder, delay or impede the execution of any
power herein granted to the Indenture Trustee, but will suffer and permit the execution of every such power as though no such law had been enacted. 
  
 SECTION 5.15 Action on Notes. The Indenture Trustee’s right to seek and recover judgment on the Notes or under this Indenture shall not be
affected by the seeking, obtaining or application of any other relief under or with respect to this Indenture. Neither the lien of this Indenture nor any rights or remedies of the Indenture Trustee or the Noteholders shall be impaired by the
recovery of any judgment by the Indenture Trustee against the Issuer or by the levy of any execution under such judgment upon any portion of the Trust Estate or upon any of the assets of the Issuer. Any money or property collected by the Indenture
Trustee shall be applied in accordance with Section 5.4(b). 
  
 SECTION 5.16 Performance and Enforcement of Certain Obligations. 
  
 (a) Promptly following a request from the Indenture Trustee to do so, and at the Administrator’s expense (or, if the Indenture Trustee is then acting as the Administrator, at the expense of CarMax), the Issuer
shall take all such lawful action as the Indenture Trustee may request to compel or secure the performance and observance by the Depositor and the Servicer of their respective obligations to the Issuer under or in connection with the Sale and
Servicing Agreement or by the Seller of its obligations under or in connection with the Receivables Purchase Agreement, and to exercise any and all rights, remedies, powers and privileges lawfully available to the Issuer under or in connection with
the Sale and Servicing Agreement to the extent and in the manner directed by the Indenture Trustee, including the transmission of notices of default on the part of the Depositor or the Servicer thereunder and the institution of legal or
administrative actions or proceedings to compel or secure performance by the Depositor and the Servicer of their respective obligations thereunder. 
  
 (b) If an Event of Default shall have occurred and be continuing, the Indenture Trustee may, and at the direction (which direction shall be in writing or
by telephone (confirmed in writing promptly thereafter)) of the Holders of Notes evidencing not less than 66 2/3% of the Note Balance of the Controlling Class shall (subject to Section 6.2(f)), exercise all rights, remedies, powers, privileges and
claims of the Issuer against the Depositor or the Servicer under or in connection with the Sale and Servicing Agreement or against the Seller under or in connection with the Receivables Purchase Agreement, including the right or power to take any
action to compel or secure performance or observance by the Depositor or the Servicer, as the case may be, of its obligations to the Issuer thereunder and to give any consent, request, notice, direction, approval, extension or waiver under the Sale
and Servicing Agreement or the Receivables Purchase Agreement, as the case may be, and any right of the Issuer to take such action shall be suspended. 
  

 44 

 (c) Promptly following a request from the Indenture Trustee to do so and at the Administrator’s
expense, the Issuer agrees to take all such lawful action as the Indenture Trustee may request to compel or secure the performance and observance by the Seller of its obligations to the Depositor under or in connection with the Receivables Purchase
Agreement in accordance with the terms thereof, and to exercise any and all rights, remedies, powers and privileges lawfully available to the Issuer under or in connection with the Receivables Purchase Agreement to the extent and in the manner
directed by the Indenture Trustee, including the transmission of notices of default on the part of the Depositor thereunder and the institution of legal or administrative actions or proceedings to compel or secure performance by the Seller of its
obligations under the Receivables Purchase Agreement. 
  
 (d) If
an Event of Default shall have occurred and be continuing, the Indenture Trustee may, and at the direction (which direction shall be in writing or by telephone (confirmed in writing promptly thereafter)) of the Holders of Notes evidencing not less
than 66 2/3% of the Note Balance of the Controlling Class shall (subject to Section 6.2(f)), exercise all rights, remedies, powers, privileges and claims of the Depositor against the Seller under or in connection with the Receivables Purchase
Agreement, including the right or power to take any action to compel or secure performance or observance by the Seller of its obligations to the Depositor thereunder and to give any consent, request, notice, direction, approval, extension or waiver
under the Receivables Purchase Agreement, and any right of the Depositor to take such action shall be suspended. 
  
 ARTICLE VI 
 THE INDENTURE TRUSTEE 
  
 SECTION 6.1 Duties of Indenture Trustee. 
  
 (a) If an Event of Default shall have occurred and be continuing, the
Indenture Trustee shall exercise the rights and powers vested in it by this Indenture and use the same degree of care and skill in their exercise as a prudent person would exercise or use under the circumstances in the conduct of such Person’s
own affairs. 
  
 (b) Except during the continuance of an Event of
Default: 
  
 (i) the Indenture Trustee undertakes
to perform such duties and only such duties as are specifically set forth in this Indenture and no implied covenants or obligations shall be read into this Indenture against the Indenture Trustee; and 
  
 (ii) in the absence of bad faith on its part, the Indenture
Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Indenture Trustee and, if required by the terms of this Indenture, conforming to
the requirements of this Indenture; provided, however, that the Indenture Trustee shall examine the certificates and opinions to determine whether or not they conform to the requirements of this Indenture. 
  
 (c) The Indenture Trustee may not be relieved from liability for its own
negligent action, its own negligent failure to act or its own willful misconduct, except that: 
  
 (i) this paragraph does not limit the effect of paragraph (b) of this Section 6.1; 
  

 45 

 (ii) the Indenture Trustee shall not be liable for any error of judgment made in good
faith by a Responsible Officer unless it is proved that the Indenture Trustee was negligent in ascertaining the pertinent facts; and 
  
 (iii) the Indenture Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a
direction received by it pursuant to Section 5.11. 
  
 (d) The
Indenture Trustee shall not be liable for interest on any money received by it except as the Indenture Trustee may agree in writing with the Issuer. 
  
 (e) Money held in trust by the Indenture Trustee need not be segregated from other funds except to the extent required by law or the terms of this
Indenture or the Sale and Servicing Agreement. 
  
 (f) No
provision of this Indenture shall require the Indenture Trustee to expend or risk its own funds or otherwise incur financial liability in the performance of any of its duties hereunder or in the exercise of any of its rights or powers hereunder if
the Indenture Trustee shall have reasonable grounds to believe that repayment of such funds or indemnity satisfactory to it against such risk or liability is not assured or provided to it. 
  
 (g) Every provision of this Indenture relating to the conduct or affecting
the liability of or affording protection to the Indenture Trustee shall be subject to the provisions of this Section 6.1 and the TIA. 
  
 (h) The Indenture Trustee shall not be charged with knowledge of any Event of Default unless either (1) a Responsible Officer shall have actual knowledge
of such Event of Default or (2) written notice of such Event of Default shall have been given to the Indenture Trustee in accordance with the provisions of this Indenture. 
  
 SECTION 6.2 Rights of Indenture Trustee. 
  
 (a) The Indenture Trustee may conclusively rely on any document believed by it to be genuine and to have been signed or
presented by the proper Person. 
  
 (b) Before the Indenture
Trustee acts or refrains from acting, it may request and shall be entitled to receive an Officer’s Certificate or an Opinion of Counsel. The Indenture Trustee shall not be liable for any action it takes or omits to take in good faith in
reliance on an Officer’s Certificate or Opinion of Counsel unless it is proved that the Indenture Trustee was negligent in such reliance. 
  
 (c) The Indenture Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or
attorneys or a custodian or nominee, and the Indenture Trustee shall not be responsible for any misconduct or 

  

 46 

 
negligence on the part of, or for the supervision of, any such agent, attorney, custodian or nominee appointed with due care by it hereunder. 
  
 (d) The Indenture Trustee shall not be liable for any action it takes or
omits to take in good faith which it believes to be authorized or within its rights or powers; provided, however, that such action or omission by the Indenture Trustee does not constitute willful misconduct, negligence or bad faith.

  
 (e) The Indenture Trustee may consult with counsel, and the
advice or opinion of counsel with respect to legal matters relating to this Indenture and the Notes shall be full and complete authorization and protection from liability in respect to any action taken, omitted or suffered by it hereunder in good
faith and in accordance with the advice or opinion of such counsel. 
  
 (f) The Indenture Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction of the Noteholders pursuant to this Indenture, unless such Noteholders shall have
offered to the Indenture Trustee security or indemnity satisfactory to it against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction. 
  
 (g) The Indenture Trustee shall not be bound to make any investigation into
the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture or other paper or document, but the Indenture Trustee, in its discretion, may make such
further inquiry or investigation into such facts or matters as it may see fit, and, if the Indenture Trustee shall determine to make such further inquiry or investigation, it shall be entitled to examine the books, records and premises of the
Issuer, personally or by agent or attorney. 
  
 SECTION 6.3
Individual Rights of Indenture Trustee. The Indenture Trustee, in its individual or any other capacity, may become the owner or pledgee of Notes and may otherwise deal with the Issuer or its Affiliates with the same rights it would have if it
were not Indenture Trustee. Any Paying Agent, Note Registrar, co-registrar or co-paying agent hereunder may do the same with like rights. 
  
 SECTION 6.4 Indenture Trustee’s Disclaimer. The Indenture Trustee (i) shall not be responsible for, and makes no representation as to, the
validity or adequacy of this Indenture or the Notes and (ii) shall not be accountable for the Issuer’s use of the proceeds from the Notes or responsible for any statement of the Issuer in this Indenture or in any document issued in connection
with the sale of the Notes or in the Notes other than the Indenture Trustee’s certificate of authentication. 
  
 SECTION 6.5 Notice of Defaults. If a Default occurs and is continuing and if it is known to a Responsible Officer of the Indenture Trustee, the
Indenture Trustee shall mail to each Noteholder notice of such Default within ninety (90) days after it occurs. Except in the case of a Default in payment of principal of or interest on any Note (including payments pursuant to the mandatory
redemption provisions of such Note), the Indenture Trustee may withhold the 

  

 47 

 
notice if and so long as a committee of its Responsible Officers in good faith determines that withholding the notice is in the interests of Noteholders.

  
 SECTION 6.6 Reports by Indenture Trustee to Holders.
The Indenture Trustee shall deliver, within a reasonable period of time after the end of each calendar year, to each Person who at any time during such calendar year was a Noteholder, such information furnished to the Indenture Trustee as may be
required to enable such Person to prepare its federal and state income tax returns. 
  
 SECTION 6.7 Compensation and Indemnity. 
  
 (a) The Administrator, on behalf of the Issuer, shall pay to the Indenture Trustee from time to time reasonable compensation for its services. The Indenture Trustee’s compensation shall not be limited by any law
on compensation of a trustee of an express trust. The Administrator, on behalf of the Issuer, shall reimburse the Indenture Trustee for all expenses, advances and disbursements reasonably incurred or made by it, including costs of collection, in
addition to the compensation for its services; provided, however, that the Administrator need not reimburse the Indenture Trustee for any expense incurred through the Indenture Trustee’s willful misconduct, negligence, or bad
faith. Such expenses shall include the reasonable compensation and expenses, disbursements and advances of the Indenture Trustee’s agents, counsel, accountants and experts. The Administrator, on behalf of the Issuer, shall indemnify the
Indenture Trustee for, and hold it and its officers, directors, employees, representatives and agents, harmless against, any and all loss, liability or expense (including reasonable attorneys’ fees and expenses) incurred by it in connection
with the administration of this trust and the performance of its duties hereunder; provided, however, that the Administrator need not indemnify the Indenture Trustee for, or hold it harmless against, any such loss, liability or expense
incurred through the Indenture Trustee’s willful misconduct, negligence, or bad faith. The Indenture Trustee shall notify the Issuer and the Administrator promptly of any claim for which it may seek indemnity. Any failure by the Indenture
Trustee to so notify the Issuer and the Administrator shall not, however, relieve the Administrator of its obligations hereunder. The Administrator, on behalf of the Issuer, shall defend any such claim. The Indenture Trustee may have separate
counsel in connection with the defense of any such claim, and the Administrator, on behalf of the Issuer, shall pay the fees and expenses of such counsel. If the Indenture Trustee is then acting as Administrator, all payment obligations to the
Indenture Trustee pursuant to this Section 6.7 shall be paid by CarMax. 
  
 (b) The payment obligations to the Indenture Trustee pursuant to this Section 6.7 shall survive the resignation or removal of the Indenture Trustee and the discharge of this Indenture. 
  
 (c) When the Indenture Trustee incurs fees or expenses after the occurrence
of a Default specified in Section 5.1(v) or (vi) with respect to the Issuer, such fees and expenses are intended to constitute expenses of administration under Title 11 of the United States Code or any other applicable federal or state bankruptcy,
insolvency or similar law. 
  

 48 

 SECTION 6.8 Replacement of Indenture Trustee. 
  
 (a) No resignation or removal of the Indenture Trustee, and no appointment of
a successor Indenture Trustee, shall become effective until the acceptance of appointment by the successor Indenture Trustee pursuant to this Section 6.8. The Indenture Trustee may resign at any time by so notifying the Issuer, the Depositor and the
Noteholders. The Holders of Notes evidencing not less than 51% of the Note Balance of the Controlling Class, may remove the Indenture Trustee without cause by notifying the Indenture Trustee (with a copy to the Issuer, the Depositor and the Rating
Agencies) of such removal and, following such removal, may appoint a successor Indenture Trustee. The Issuer shall remove the Indenture Trustee if: 
  
 (i) the Indenture Trustee fails to comply with Section 6.11; 
  
 (ii) the Indenture Trustee is adjudged to be bankrupt or insolvent; 
  
 (iii) a receiver or other public officer takes charge of the
Indenture Trustee or its property; or 
  
 (iv)
the Indenture Trustee otherwise becomes incapable of acting. 
  
 If the Indenture Trustee resigns or is removed or if a vacancy exists in the office of Indenture Trustee for any reason (the Indenture Trustee in such event being referred to herein as the retiring Indenture Trustee), the Administrator
shall promptly appoint a successor Indenture Trustee. 
  
 (b) Any
successor Indenture Trustee shall deliver a written acceptance of its appointment to the retiring Indenture Trustee, the Issuer and the Depositor. Upon delivery of such written acceptance, the resignation or removal of the retiring Indenture Trustee
shall become effective and the successor Indenture Trustee shall have all the rights, powers and duties of the Indenture Trustee under this Indenture. The successor Indenture Trustee shall mail a notice of its succession to the Noteholders. The
retiring Indenture Trustee shall promptly transfer all property held by it as Indenture Trustee to the successor Indenture Trustee. 
  
 (c) If a successor Indenture Trustee does not take office within sixty (60) days after the retiring Indenture Trustee resigns or is removed, the retiring
Indenture Trustee, the Issuer or the Holders of Notes evidencing not less than 51% of the Note Balance of the Controlling Class may petition any court of competent jurisdiction for the appointment of a successor Indenture Trustee. If the Indenture
Trustee fails to comply with Section 6.11, any Noteholder may petition any court of competent jurisdiction for the removal of the Indenture Trustee and the appointment of a successor Indenture Trustee. 
  
 (d) Notwithstanding the replacement of the Indenture Trustee pursuant to this
Section 6.8, the Administrator’s obligations under Section 6.7 shall continue for the benefit of the retiring Indenture Trustee. 
  
 SECTION 6.9 Successor Indenture Trustee by Merger. 
  
 (a) If the Indenture Trustee consolidates with, merges or converts into, or transfers all or substantially all its corporate trust business or assets to,
another corporation or banking association, the resulting, surviving or transferee corporation or banking association 

  

 49 

 
without any further act shall be the successor Indenture Trustee; provided, however, that such corporation or banking association must be
otherwise qualified and eligible under Section 6.11. The Indenture Trustee shall provide the Rating Agencies with prior written notice of any such transaction. 
  

(b) If at the time such successor or successors by consolidation, merger or conversion to the Indenture Trustee shall succeed to the trusts created by
this Indenture any of the Notes shall have been authenticated but not delivered, any such successor to the Indenture Trustee may adopt the certificate of authentication of any predecessor trustee and deliver such Notes so authenticated, and in case
at that time any of the Notes shall not have been authenticated, any such successor to the Indenture Trustee may authenticate such Notes either in the name of any predecessor trustee or in the name of the successor to the Indenture Trustee. In all
such cases such certificates shall have the full force which the Notes or this Indenture provide that the certificate of the Indenture Trustee shall have. 
  
 SECTION 6.10 Appointment of Co-Indenture Trustee or Separate Indenture Trustee. 
  
 (a) Notwithstanding any other provisions of this Indenture, at any time, for the purpose of meeting any legal requirement of
any jurisdiction in which any part of the Trust Estate may at the time be located, the Indenture Trustee shall have the power and may execute and deliver an instrument to appoint one or more Persons to act as a co-trustee or co-trustees, jointly
with the Indenture Trustee, or separate trustee or separate trustees, of all or any part of the Trust Estate, and to vest in such Person or Persons, in such capacity and for the benefit of the Noteholders, such title to the Trust Estate, or any part
hereof, and, subject to the other provisions of this Section 6.10, such powers, duties, obligations, rights and trusts as the Indenture Trustee may consider necessary or desirable. No co-trustee or separate trustee under this Indenture shall be
required to meet the terms of eligibility as a successor trustee under Section 6.11 and no notice of the appointment of any co-trustee or separate trustee shall be required under Section 6.8. 
  
 (b) Each separate trustee and co-trustee shall, to the extent permitted by
law, be appointed and act subject to the following provisions and conditions: 
  
 (i) all rights, powers, duties and obligations conferred or imposed upon the Indenture Trustee shall be conferred or imposed upon and exercised or performed by the Indenture Trustee and such separate trustee or
co-trustee jointly (it being understood that such separate trustee or co-trustee shall not be authorized to act separately without the Indenture Trustee joining in such act), except to the extent that under any law of any jurisdiction in which any
particular act or acts are to be performed the Indenture Trustee shall be incompetent or unqualified to perform such act or acts, in which event such rights, powers, duties and obligations (including the holding of title to the Trust Estate or any
portion thereof in any such jurisdiction) shall be exercised and performed singly by such separate trustee or co-trustee, but solely at the direction of the Indenture Trustee; 
  

 50 

 (ii) no trustee under this Indenture shall be personally liable by reason of any act or
omission of any other trustee under this Indenture; and 
  
 (iii) the Indenture Trustee may at any time accept the resignation of or remove any separate trustee or co-trustee. 
  
 (c) Any notice, request or other writing given to the Indenture Trustee shall be deemed to have been given to each of the then separate trustees and
co-trustees as effectively as if given to each of them. Every instrument appointing any separate trustee or co-trustee shall refer to this Indenture and the conditions of this Article VI. Each separate trustee and co-trustee, upon its acceptance of
the trusts conferred, shall be vested with the estates or property specified in its instrument of appointment, either jointly with the Indenture Trustee or separately, as may be provided therein, subject to all the provisions of this Indenture,
specifically including every provision of this Indenture relating to the conduct of, affecting the liability of, or affording protection to, the Indenture Trustee. Each such instrument shall be filed with the Indenture Trustee. 
  
 (d) Any separate trustee or co-trustee may at any time constitute the
Indenture Trustee its agent or attorney-in-fact with full power and authority, to the extent permitted by law, to do any lawful act under or in respect of this Indenture on its behalf and in its name. If any separate trustee or co-trustee shall die,
become incapable of acting, resign or be removed, all of its estates, properties, rights, remedies and trusts shall vest in and be exercised by the Indenture Trustee, to the extent permitted by law, without the appointment of a new or successor
trustee. 
  
 SECTION 6.11 Eligibility; Disqualification.
The Indenture Trustee shall at all times satisfy the requirements of TIA Section 310(a). The Indenture Trustee or its parent shall have a combined capital and surplus of at least $50,000,000 as set forth in its most recent published annual report of
condition and shall have a long-term debt rating of investment grade by each of the Rating Agencies or shall otherwise be acceptable to each of the Rating Agencies. The Indenture Trustee shall comply with TIA Section 310(b). 
  
 Within 90 days after ascertaining the occurrence of an Event of Default which
shall not have been cured or waived, unless authorized by the Commission, the Indenture Trustee shall resign with respect to the Class A Notes, the Class B Notes or the Class C Notes in accordance with Section 6.8, and the Issuer shall appoint a
successor Indenture Trustee for one or more of such Classes, as applicable, so that there will be separate Indenture Trustees for the Class A Notes, the Class B Notes or the Class C Notes. In the event the Indenture Trustee fails to comply with the
terms of the preceding sentence, the Indenture Trustee shall comply with clauses (ii) and (iii) of TIA Section 310(b). 
  
 In the case of the appointment pursuant to this Section of a successor Indenture Trustee with respect to any Class of Notes, the Issuer, the retiring
Indenture Trustee and the successor Indenture Trustee with respect to such Class of Notes shall execute and deliver an indenture supplemental hereto wherein each successor Indenture Trustee shall accept such appointment and which (i) shall contain
such provisions as shall be necessary or desirable to transfer and confirm to, and to vest in, the successor Indenture Trustee all the rights, powers, trusts and duties of the retiring Indenture Trustee with respect to the Notes of the Class to
which 

  

 51 

 
the appointment of such successor Indenture Trustee relates, (ii) if the retiring Indenture Trustee is not retiring with respect to all Classes of Notes,
shall contain such provisions as shall be deemed necessary or desirable to confirm that all rights, powers, trusts and duties of the retiring Indenture Trustee with respect to the Notes of each Class as to which the retiring Indenture Trustee is not
retiring shall continue to be vested in the Indenture Trustee and (iii) shall add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one
Indenture Trustee, it being understood that nothing herein or in such supplemental indenture shall constitute such Indenture Trustees co-trustees of the same trust and that each such Indenture Trustee shall be a trustee of a trust or trusts
hereunder separate and apart from any trust or trusts hereunder administered by any other such Indenture Trustee; and upon the removal of the retiring Indenture Trustee shall become effective to the extent provided herein. 
  
 SECTION 6.12 Preferential Collection of Claims Against Issuer. The
Indenture Trustee shall comply with TIA Section 311(a), excluding any creditor relationship listed in TIA Section 311(b). An Indenture Trustee who has resigned or been removed shall be subject to TIA Section 311(a) to the extent indicated.

  
 SECTION 6.13 Sales Finance Company Licenses. The Issuer
shall take such action as, in its reasonable judgment, shall be necessary to maintain the effectiveness of all sales finance company licenses required under the Maryland Code and all licenses required under the Pennsylvania Motor Vehicle Sales
Finance Company Act in connection with this Indenture and the transactions contemplated hereby until the lien and security interest of this Indenture shall no longer be in effect in accordance with the terms hereof. 
  
 ARTICLE VII 
 NOTEHOLDERS’ LISTS AND REPORTS 
  
 SECTION 7.1 Issuer To Furnish Indenture Trustee Names and Addresses of Noteholders. The Issuer shall furnish or cause to be furnished to the Indenture Trustee (i) not more than five (5) days after each Record
Date, a list, in such form as the Indenture Trustee may reasonably require, of the names and addresses of the Holders of Notes as of such Record Date and (ii) at such other times as the Indenture Trustee may request in writing, within thirty (30)
days after receipt by the Issuer of any such request, a list of similar form and content as of a date not more than ten (10) days prior to the time such list is furnished; provided, however, that so long as the Indenture Trustee is the Note
Registrar or the Notes are issued as Book-Entry Notes, no such list shall be required to be furnished. 
  
 SECTION 7.2 Preservation of Information; Communications to Noteholders. 
  
 (a) The Indenture Trustee shall preserve, in as current a form as is reasonably practicable, the names and addresses of the
Holders of Notes contained in the most recent list furnished to the Indenture Trustee as provided in Section 7.1 and the names and addresses of the Holders of Notes received by the Indenture Trustee in its capacity as Note Registrar. The Indenture
Trustee may destroy any list furnished to it as provided in Section 7.1 upon receipt of a new list so furnished. 
  

 52 

 (b) Noteholders may communicate pursuant to TIA Section 312(b) with other Noteholders with respect to
their rights under this Indenture or under the Notes. 
  
 (c) The
Issuer, the Indenture Trustee and the Note Registrar shall have the protection of TIA Section 312(c). 
  
 SECTION 7.3 Reports by Issuer. 
  
 (a) The Issuer shall: 
  
 (i) file with the Indenture Trustee, within fifteen (15) days after the Issuer is required to file the same with the Commission, copies of
the annual reports and of the information, documents and other reports (or copies of such portions of any of the foregoing as the Commission may from time to time by rules and regulations prescribe) that the Issuer may be required to file with the
Commission pursuant to Section 13 or 15(d) of the Exchange Act; 
  
 (ii) file with the Indenture Trustee and the Commission in accordance with the rules and regulations prescribed from time to time by the Commission such additional information, documents and reports with respect to
compliance by the Issuer with the conditions and covenants of this Indenture as may be required from time to time by such rules and regulations; and 
  
 (iii) supply to the Indenture Trustee (and the Indenture Trustee shall transmit by mail to all Noteholders described in TIA Section
313(c)) such summaries of any information, documents and reports required to be filed by the Issuer pursuant to clauses (i) and (ii) of this Section 7.3(a) and by the rules and regulations prescribed from time to time by the Commission. 

 
 (b) Unless the Issuer otherwise determines, the fiscal year of the Issuer
shall correspond to the Trust Fiscal Year. 
  
 SECTION 7.4
Reports by Indenture Trustee. 
  
 (a) If required by TIA
Section 313(a), within sixty (60) days after each March 31, beginning with March 31, 2006, the Indenture Trustee shall mail to each Noteholder as required by TIA Section 313(c) a brief report dated as of such date that complies with TIA Section
313(a). The Indenture Trustee shall also comply with TIA Section 313(b). 
  
 (b) The Indenture Trustee shall file with the Commission and each stock exchange, if any, on which the Notes are listed a copy of each report mailed to Noteholders pursuant to this Indenture. The Issuer shall notify
the Indenture Trustee if and when the Notes are listed on any stock exchange. 
  

 53 

 ARTICLE VIII 
 ACCOUNTS, DISBURSEMENTS AND RELEASES 
  
 SECTION 8.1 Collection of Money. Except as otherwise expressly provided herein, the Indenture Trustee may demand payment or delivery of, and shall receive and collect, directly and without intervention or assistance of any fiscal
agent or other intermediary, all money and other property payable to or receivable by the Indenture Trustee pursuant to this Indenture and the Sale and Servicing Agreement. The Indenture Trustee shall apply all such money received by it as provided
in this Indenture and the Sale and Servicing Agreement. Except as otherwise expressly provided in this Indenture, if any default occurs in the making of any payment or performance under any agreement or instrument that is part of the Trust Estate,
the Indenture Trustee may take such action as may be appropriate to enforce such payment or performance, including the institution and prosecution of appropriate Proceedings. Any such action shall be without prejudice to any right to claim a Default
or Event of Default under this Indenture and any right to proceed thereafter as provided in Article V. 
  
 SECTION 8.2 Trust Accounts. 
  
 (a) On or before the Closing Date, the Issuer shall cause the Servicer to establish and maintain, in the name of the Indenture Trustee, for the benefit of
the Noteholders and the Certificateholders, the Collection Account as provided in Section 4.1(a) of the Sale and Servicing Agreement. On or before each Distribution Date, the Servicer shall deposit in the Collection Account all amounts required to
be deposited therein with respect to the preceding Collection Period as provided in Section 4.2 of the Sale and Servicing Agreement. 
  
 (b) On or before the Closing Date, the Issuer shall cause the Servicer to establish and maintain, in the name of the Indenture Trustee, for the benefit of
the Noteholders, the Reserve Account as provided in Section 4.7 of the Sale and Servicing Agreement. On each Distribution Date, upon receipt of instructions from the Servicer pursuant to Section 4.6(b) of the Sale and Servicing Agreement, the
Indenture Trustee shall withdraw from the Reserve Account (up to the amount on deposit in the Reserve Account) and deposit in the Collection Account the amount, if any, by which the Required Payment Amount for such Distribution Date exceeds the
Available Collections for such Distribution Date. 
  
 (c) On or
before the Closing Date, the Issuer shall cause the Servicer to establish and maintain, in the name of the Indenture Trustee, for the benefit of the Noteholders, the Secondary Reserve Account as provided in Section 4.11 of the Sale and Servicing
Agreement. On each Distribution Date, upon receipt of instructions from the Servicer pursuant to Section 4.6(c) of the Sale and Servicing Agreement, the Indenture Trustee shall withdraw from the Secondary Reserve Account and deposit in the
Collection Account the Secondary Reserve Account Draw Amount for such Distribution Date. 
  
 (d) On each Distribution Date, the Indenture Trustee shall apply or cause to be applied the amount on deposit in the Collection Account on such Distribution Date in accordance with Section 2.8(a). 
  

 54 

 (e) On or before the Closing Date, the Issuer shall cause the Servicer to establish and maintain, in the
name of the Indenture Trustee, for the exclusive benefit of the Noteholders, the Note Payment Account as provided in Section 4.1(b) of the Sale and Servicing Agreement. On each Distribution Date, the Indenture Trustee shall apply or cause to be
applied the amount on deposit in the Note Payment Account on such Distribution Date in accordance with Section 2.8(b) or (f), as applicable. 
  
 SECTION 8.3 General Provisions Regarding Accounts. 
  
 (a) So long as no Default or Event of Default shall have occurred and be continuing, all or a portion of the funds in the Trust Accounts shall be invested
by the Indenture Trustee at the written direction of the Servicer in Permitted Investments as provided in Sections 4.1 and 4.7 of the Sale and Servicing Agreement. All income or other gain (net of losses and investment expenses) from investments of
monies deposited in the Trust Accounts shall be withdrawn by the Indenture Trustee from such accounts and distributed (but only under the circumstances set forth in the Sale and Servicing Agreement) as provided in Sections 4.1 and 4.7 of the Sale
and Servicing Agreement. The Servicer shall not direct the Indenture Trustee to make any investment of any funds or to sell any investment held in any of the Trust Accounts unless the security interest granted and perfected in such account will
continue to be perfected in such investment or the proceeds of such sale, in either case without any further action by any Person, and, in connection with any direction to the Indenture Trustee to make any such investment or sale, if requested by
the Indenture Trustee, the Issuer shall deliver to the Indenture Trustee an Opinion of Counsel, acceptable to the Indenture Trustee, to such effect. 
  
 (b) Subject to Section 6.1(c), the Indenture Trustee shall not in any way be held liable by reason of any insufficiency in any of the Trust Accounts
resulting from any loss on any Permitted Investment included therein, except for losses attributable to the Indenture Trustee’s failure to make payments on such Permitted Investments issued by the Indenture Trustee, in its commercial capacity
as principal obligor and not as trustee, in accordance with their terms. 
  
 (c) If (i) the Servicer shall have failed to give written investment directions for any funds on deposit in the Trust Accounts to the Indenture Trustee by 11:00 A.M. (New York City time) (or such other time as may be
agreed upon by the Issuer and Indenture Trustee), on the Business Day preceding each Distribution Date, (ii) a Default or Event of Default shall have occurred and be continuing with respect to the Notes but the Notes shall not have been declared
immediately due and payable pursuant to Section 5.2 or (iii) the Notes shall have been declared immediately due and payable following an Event of Default, amounts collected or receivable from the Trust Estate are being applied in accordance with
Section 5.4 as if there had not been such a declaration, then the Indenture Trustee shall, to the fullest extent practicable, invest and reinvest funds in the Trust Accounts in one or more Permitted Investments. 
  
 SECTION 8.4 Release of Trust Estate. 
  
 (a) Subject to the payment of its fees and expenses pursuant to Section 6.7,
the Indenture Trustee may, and when required by the provisions of this Indenture shall, execute instruments to release property from the lien of this Indenture, or convey the Indenture Trustee’s 

  

 55 

 
interest in the same, in a manner and under circumstances that are not inconsistent with the provisions of this Indenture. No party relying upon an
instrument executed by the Indenture Trustee as provided in this Article VIII shall be bound to ascertain the Indenture Trustee’s authority, inquire into the satisfaction of any conditions precedent or see to the application of any monies.

  
 (b) The Indenture Trustee shall, at such time as there are no
Notes Outstanding and all sums due the Indenture Trustee pursuant to Section 6.7 have been paid in full, release any remaining portion of the Trust Estate that secured the Notes from the lien of this Indenture and release to the Issuer or any other
Person entitled thereto any funds then on deposit in the Trust Accounts. The Indenture Trustee shall release property from the lien of this Indenture pursuant to this Section 8.4(b) only upon receipt of an Issuer Request accompanied by an
Officer’s Certificate, an Opinion of Counsel and (if required by the TIA) Independent Certificates in accordance with TIA Sections 314(c) and 314(d)(1) meeting the applicable requirements of Section 11.1. 
  
 SECTION 8.5 Opinion of Counsel. The Indenture Trustee shall receive at
least seven (7) days notice when requested by the Issuer to take any action pursuant to Section 8.4(a), accompanied by copies of any instruments involved, and the Indenture Trustee shall also require, except in connection with any action
contemplated by Section 8.4(b), as a condition to such action, an Opinion of Counsel, in form and substance satisfactory to the Indenture Trustee, stating the legal effect of any such action, outlining the steps required to complete such action, and
concluding that all conditions precedent to the taking of such action have been complied with and such action will not materially and adversely impair the security for the Notes or the rights of the Noteholders in contravention of the provisions of
this Indenture; provided, however, that such Opinion of Counsel shall not be required to express an opinion as to the fair value of the Trust Estate. Counsel rendering any such opinion may rely, without independent investigation, on the accuracy and
validity of any certificate or other instrument delivered to the Indenture Trustee in connection with any such action. 
  
 ARTICLE IX 
 SUPPLEMENTAL INDENTURES 

 
 SECTION 9.1 Supplemental Indentures Without Consent of Noteholders.
The Issuer and the Indenture Trustee, when authorized by an Issuer Order, may, without the consent of the Holders of any Notes, with prior written notice to the Rating Agencies, at any time and from time to time, enter into one or more indentures
supplemental hereto, in form satisfactory to the Indenture Trustee, for any of the following purposes: 
  
 (i) to correct or amplify the description of any property at any time subject to the lien of this Indenture, or better to assure, convey
and confirm unto the Indenture Trustee any property subject or required to be subjected to the lien of this Indenture, or to subject to the lien of this Indenture additional property; 
  
 (ii) to evidence the succession, in compliance with the applicable provisions hereof, of another Person to
the Issuer, and the assumption by any such successor of the covenants of the Issuer herein and in the Notes contained; 
  

 56 

 (iii) to add to the covenants of the Issuer, for the benefit of the Holders of the Notes,
or to surrender any right or power herein conferred upon the Issuer; 
  
 (iv) to convey, transfer, assign, mortgage or pledge any property to or with the Indenture Trustee; 
  
 (v) to cure any ambiguity, to correct or supplement any provision herein or in any supplemental indenture that may be inconsistent with
any other provision herein or in any supplemental indenture or in any offering document used in connection with the initial offer and sale of the Notes or to add any provisions to or change in any manner or eliminate any of the provisions of this
Indenture which will not be inconsistent with other provisions of this Indenture; 
  
 (vi) to evidence and provide for the acceptance of the appointment hereunder by a successor trustee with respect to the Notes and to add
to or change any of the provisions of this Indenture as shall be necessary to facilitate the administration of the trusts hereunder by more than one trustee, pursuant to the requirements of Article VI; or 
  
 (vii) to modify, eliminate or add to the provisions of this
Indenture to such extent as shall be necessary to effect the qualification of this Indenture under the TIA or under any similar federal statute hereafter enacted and to add to this Indenture such other provisions as may be expressly required by the
TIA; 
  
 provided, however, that (i) no such supplemental indenture
may materially adversely affect the interests of any Noteholder, and (ii) no such supplemental indenture will be permitted unless an Opinion of Counsel is delivered to the Indenture Trustee to the effect that such supplemental indenture will not
cause the Issuer to be characterized for federal income tax purposes as an association taxable as a corporation or otherwise have any material adverse impact on the federal income taxation of any Notes Outstanding or any Noteholder. A supplemental
indenture shall be deemed not to materially adversely affect the interests of any Noteholder if (i) the Person requesting such supplemental indenture obtains and delivers to the Indenture Trustee an Opinion of Counsel to that effect or (ii) the
Rating Agency Condition is satisfied. The Indenture Trustee is hereby authorized to join in the execution of any such supplemental indenture and to make any further appropriate agreements and stipulations that may be therein contained. 

 
 SECTION 9.2 Supplemental Indentures with Consent of Noteholders.
The Issuer and the Indenture Trustee, when authorized by an Issuer Order, may, with the consent of the Holders of Notes evidencing not less than 51% of the Note Balance of the Controlling Class and with prior notice to the Rating Agencies, by Act of
such Holders delivered to the Issuer and the Indenture Trustee, at any time and from time to time, enter into one or more indentures supplemental hereto for the purpose of adding any provisions to, or changing in any manner or eliminating any of the
provisions of, this Indenture or modifying in any manner the rights of the Holders of the Notes under this Indenture; provided, however, that (i) no such supplemental indenture may materially adversely affect the interests of any
Noteholder and (ii) no such supplemental indenture will be permitted unless an Opinion of Counsel is delivered to the Indenture Trustee to the effect that such supplemental indenture will not cause the Issuer to be characterized for federal income
tax purposes as an association taxable as a corporation or 

  

 57 

 
otherwise have any material adverse impact on the federal income taxation of any Notes Outstanding or any Noteholder; and, provided further,
that no such supplemental indenture may, without the consent of the Holder of each Outstanding Note affected by such supplemental indenture: 
  
 (i) change any Class Final Distribution Date or the date of payment of any installment of principal of or interest on any Note, or reduce
the principal amount thereof, the Note Rate applicable thereto or the Redemption Price with respect thereto, change the provisions of this Indenture relating to the application of collections on, or the proceeds of the sale of, the Trust Estate to
payment of principal of or interest on the Notes, or change any place of payment where, or the coin or currency in which, any Note or the interest thereon is payable; 
  
 (ii) impair the right to institute suit for the enforcement of the provisions of this Indenture requiring
the application of available funds, as provided in Article V, to the payment of any amount due on the Notes on or after the respective due dates thereof (or, in the case of redemption, on or after the Redemption Date); 
  
 (iii) reduce the percentage of the Note Balance or the Note
Balance of the Controlling Class the consent of the Holders of which is required for any such supplemental indenture or for any waiver of compliance with the provisions of this Indenture or of defaults hereunder and their consequences as provided in
this Indenture; 
  
 (iv) modify or alter (A) the
provisions of the second proviso to the definition of the term “Outstanding” or (B) the definition of the term “Note Balance” or the definition of the term “Controlling Class”; 
  
 (v) reduce the percentage of the Note Balance the consent of
the Holders of which is required to direct the Indenture Trustee to sell or liquidate the Trust Estate pursuant to Section 5.4 if the proceeds of such sale would be insufficient to pay in full the principal amount of and accrued but unpaid interest
on the Notes; 
  
 (vi) reduce the percentage of
the Note Balance of the Controlling Class the consent of the Holders of which is required for any such supplemental indenture amending the provisions of this Indenture which specify the applicable percentage of the Note Balance of the Controlling
Class the consent of which is required for such supplemental indenture or the amendment of any other Transaction Document; 
  
 (vii) affect the calculation of the amount of interest on or principal of the Notes payable on any Distribution Date, including the
calculation of any of the individual components of such calculation; 
  
 (viii) modify any of the provisions of this Indenture in such a manner as to affect the rights of the Holders of the Notes to the benefit of any provisions for the mandatory redemption of the Notes; or 
  
 (ix) permit the creation of any lien ranking prior to or on
a parity with the lien of this Indenture with respect to any part of the Trust Estate or, except as 

  

 58 

 
otherwise permitted or contemplated herein, terminate the lien of this Indenture on any such collateral at any time subject hereto or deprive the Holder of
any Note of the security provided by the lien of this Indenture. 
  
 It shall not be necessary for any Act of Noteholders under this Section 9.2 to approve the particular form of any proposed supplemental indenture, but it shall be sufficient if such Act shall approve the substance thereof. Promptly after
the execution by the Issuer and the Indenture Trustee of any supplemental indenture pursuant to this Section 9.2, the Indenture Trustee shall mail to the Holders of the Notes to which such amendment or supplemental indenture relates a notice setting
forth in general terms the substance of such supplemental indenture. Any failure of the Indenture Trustee to mail such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture.

  
 SECTION 9.3 Execution of Supplemental Indentures. In
executing, or permitting the additional trusts created by, any supplemental indenture permitted by this Article IX or the modification thereby of the trusts created by this Indenture, the Indenture Trustee shall be entitled to receive and, subject
to Sections 6.1 and 6.2, shall be fully protected in relying upon an Opinion of Counsel stating that the execution of such supplemental indenture is authorized or permitted by this Indenture and that all conditions precedent in this Indenture to the
execution and delivery of such supplemental indenture have been satisfied. The Indenture Trustee may, but shall not be obligated to, enter into any such supplemental indenture that affects the Indenture Trustee’s own rights, duties, liabilities
or immunities under this Indenture or otherwise. 
  
 SECTION 9.4
Effect of Supplemental Indenture. Upon the execution of any supplemental indenture pursuant to the provisions hereof, this Indenture shall be and shall be deemed to be modified and amended in accordance therewith with respect to the Notes
affected thereby, and the respective rights, limitations of rights, obligations, duties, liabilities and immunities under this Indenture of the Indenture Trustee, the Issuer and the Holders of the Notes shall thereafter be determined, exercised and
enforced hereunder subject in all respects to such modifications and amendments, and all the terms and conditions of any such supplemental indenture shall be and be deemed to be part of the terms and conditions of this Indenture for any and all
purposes. 
  
 SECTION 9.5 Conformity with Trust Indenture
Act. Every amendment of this Indenture and every supplemental indenture executed pursuant to this Article IX shall conform to the requirements of the Trust Indenture Act as then in effect so long as this Indenture shall then be qualified under
the Trust Indenture Act. 
  
 SECTION 9.6 Reference in Notes to
Supplemental Indentures. Any Notes authenticated and delivered after the execution of any supplemental indenture pursuant to this Article IX may, and if required by the Indenture Trustee shall, bear a notation in form approved by the Indenture
Trustee as to any matter provided for in such supplemental indenture. If the Issuer or the Indenture Trustee shall so determine, new Notes so modified as to conform, in the opinion of the Indenture Trustee and the Issuer, to any such supplemental
indenture may be prepared and executed by the Issuer and authenticated and delivered by the Indenture Trustee in exchange for Outstanding Notes. 
  

 59 

 ARTICLE X 
 REDEMPTION OF NOTES 
  
 SECTION
10.1 Redemption. 
  
 (a) The Notes are subject to
redemption in whole, but not in part, at the direction of the Servicer, pursuant to Section 9.1(a) of the Sale and Servicing Agreement, on any Distribution Date on which the Servicer exercises its option to purchase the assets of the Issuer pursuant
to such Section 9.1(a), and the amount paid by the Servicer shall be treated as collections in respect of the Receivables and applied to pay all amounts due to the Servicer under the Sale and Servicing Agreement and the unpaid principal amount of
the Notes plus all accrued and unpaid interest (including any overdue interest) thereon. If the Notes are to be redeemed pursuant to this Section 10.1(a), the Issuer shall furnish or cause the Servicer to furnish notice of such redemption to the
Depositor, the Indenture Trustee and the Rating Agencies not later than ten (10) days prior to the Redemption Date and the Issuer shall deposit the Redemption Price of the Notes to be redeemed in the Note Payment Account by 10:00 A.M. (New York City
time) on the Redemption Date, whereupon all such Notes shall be due and payable on the Redemption Date. 
  
 (b) In the event that the assets of the Issuer are purchased by the Servicer pursuant to Section 9.1(a) of the Sale and Servicing Agreement, all amounts
on deposit in the Note Payment Account shall be paid to the Noteholders up to the unpaid principal amount of the Notes and all accrued and unpaid interest thereon. If such amounts are to be paid to Noteholders pursuant to this Section 10.1(b), the
Issuer shall, to the extent practicable, furnish or cause the Servicer to furnish notice of such event to the Depositor, the Indenture Trustee and the Rating Agencies not later than ten (10) days prior to the Redemption Date, whereupon all such
amounts shall be payable on the Redemption Date. 
  
 SECTION 10.2
Form of Redemption Notice. Notice of redemption of the Notes under Section 10.1(a) shall be given by the Indenture Trustee by first-class mail, postage prepaid, or by facsimile mailed or transmitted promptly following receipt of notice from
the Issuer or the Servicer pursuant to Section 10.1(a), but not later than ten (10) days prior to the applicable Redemption Date, to each Holder of the Notes as of the close of business on the second Record Date preceding the applicable Redemption
Date, at such Holder’s address or facsimile number appearing in the Note Register. 
  
 All notices of redemption shall state: 
  
 (i) the Redemption Date; 
  
 (ii) the Redemption Price; and 
  
 (iii) the place where the Notes are to be surrendered for payment of the Redemption Price (which shall be the office or agency of the Issuer to be maintained as provided in Section 3.2). 
  
 Notice of redemption of the Notes shall be given by the Indenture Trustee in
the name and at the expense of the Issuer. Any failure to give notice of redemption, or any defect 

  

 60 

 
therein, to any Holder of any Note shall not, however, impair or affect the validity of the redemption of any other Note. 
  
 SECTION 10.3 Notes Payable on Redemption Date. The Notes to be
redeemed shall, following notice of redemption as required by Section 10.2 (in the case of redemption pursuant to Section 10.1(a)), become due and payable on the Redemption Date at the Redemption Price and (unless the Issuer shall default in the
payment of the Redemption Price) no interest shall accrue on the Redemption Price for any period after the date to which accrued interest is calculated for purposes of calculating the Redemption Price. 
  
 ARTICLE XI 
 MISCELLANEOUS 
  
 SECTION 11.1 Compliance Certificates and Opinions, etc. 
  
 (a) Upon any application or request by the Issuer to the Indenture Trustee to take any action under any provision of this Indenture, the Issuer shall furnish to the Indenture Trustee (i) an Officer’s Certificate
stating that all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with, (ii) an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent, if any,
have been complied with and (iii) (if required by the TIA) an Independent Certificate from a firm of certified public accountants meeting the applicable requirements of this Section 11.1, except that, in the case of any such application or request
as to which the furnishing of such documents is specifically required by any provision of this Indenture, no additional certificate or opinion need be furnished. 
  
 Every certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture shall
include: 
  
 (i) a statement that each signatory
of such certificate or opinion has read or has caused to be read such covenant or condition and the definitions herein relating thereto; 
  
 (ii) a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in
such certificate or opinion are based; 
  
 (iii)
a statement that, in the opinion of each such signatory, such signatory has made such examination or investigation as is necessary to enable such signatory to express an informed opinion as to whether or not such covenant or condition has been
complied with; and 
  
 (iv) a statement as to
whether, in the opinion of each such signatory, such condition or covenant has been complied with. 
  
 (b) Prior to the deposit of any Collateral or other property or securities with the Indenture Trustee that is to be made the basis for the release of any
property or securities subject to the lien of this Indenture, the Issuer shall, in addition to any obligation imposed in 

  

 61 

 
Section 11.1(a) or elsewhere in this Indenture, deliver to the Indenture Trustee an Officer’s Certificate certifying or stating the opinion of each
person signing such certificate as to the fair value (within ninety (90) days of such deposit) to the Issuer of the Collateral or other property or securities to be so deposited. 
  
 (c) Whenever the Issuer is required to furnish to the Indenture Trustee an Officer’s Certificate certifying or stating
the opinion of any signer thereof as to the matters described in Section 11.1(b), the Issuer shall also furnish to the Indenture Trustee an Independent Certificate as to the same matters if the fair value to the Issuer of the property or securities
to be so deposited and of all other such property or securities made the basis of any such withdrawal or release since the commencement of the then-current fiscal year of the Issuer, as set forth in the certificates furnished pursuant to Section
11.1(b) and this Section 11.1(c), is 10% or more of the Note Balance, but such a certificate need not be furnished with respect to any property or securities so deposited if the fair value thereof to the Issuer as set forth in the related
Officer’s Certificate is less than $25,000 or less than 1% of the Note Balance. 
  
 (d) Whenever any property or securities are to be released from the lien of this Indenture, the Issuer shall also furnish to the Indenture Trustee an Officer’s Certificate certifying or stating the opinion of
each person signing such certificate as to the fair value (within ninety (90) days of such release) of the property or securities proposed to be released and stating that in the opinion of such person the proposed release will not impair the
security under this Indenture in contravention of the provisions hereof. 
  
 (e) Whenever the Issuer is required to furnish to the Indenture Trustee an Officer’s Certificate certifying or stating the opinion of any signer thereof as to the matters described in Section 11.1(d), the Issuer
shall also furnish to the Indenture Trustee an Independent Certificate as to the same matters if the fair value of the property or securities and of all other property, other than property as contemplated by Section 11.1(f) or securities released
from the lien of this Indenture since the commencement of the then-current calendar year, as set forth in the certificates required by Section 11.1(d) and this Section 11.1(e), is 10% or more of the Note Balance, but such a certificate need not be
furnished in the case of any release of property or securities if the fair value thereof as set forth in the related Officer’s Certificate is less than $25,000 or less than 1% of the Note Balance. 
  
 (f) Notwithstanding Section 2.10 or any other provisions of this Section
11.1, the Issuer may, without compliance with the requirements of the other provisions of this Section 11.1, (i) collect, liquidate, sell or otherwise dispose of Receivables and Financed Vehicles as and to the extent permitted or required by the
Transaction Documents and (ii) make cash payments out of the Trust Accounts as and to the extent permitted or required by the Transaction Documents. 
  
 SECTION 11.2 Form of Documents Delivered to Indenture Trustee. 
  
 (a) In any case where several matters are required to be certified by, or covered by an opinion of, any specified Person, it
is not necessary that all such matters be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an opinion with respect 

  

 62 

 
to some matters and one or more other such Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one or
several documents. 
  
 (b) Any certificate or opinion of an
Authorized Officer of the Issuer may be based, insofar as it relates to legal matters, upon a certificate or opinion of, or representations by, counsel, unless such officer knows, or in the exercise of reasonable care should know, that the
certificate or opinion or representations with respect to the matters upon which such officer’s certificate or opinion is based are erroneous. Any such certificate of an Authorized Officer or Opinion of Counsel may be based, insofar as it
relates to factual matters, upon a certificate or opinion of, or representations by, one or more officers of the Depositor, the Seller, the Servicer, the Administrator or the Issuer, stating that the information with respect to such factual matters
is in the possession of the Depositor, the Seller, the Servicer, the Administrator or the Issuer, unless such Authorized Officer or counsel knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations
with respect to such matters are erroneous. 
  
 (c) Where any
Person is required to make, give or execute two or more applications, requests, consents, certificates, statements, opinions or other instruments under this Indenture, they may, but need not, be consolidated and form one instrument. 
  
 (d) Whenever in this Indenture, in connection with any application or
certificate or report to the Indenture Trustee, it is provided that the Issuer shall deliver any document as a condition of the granting of such application, or as evidence of the Issuer’s compliance with any term hereof, it is intended that
the truth and accuracy, at the time of the granting of such application or at the effective date of such certificate or report (as the case may be), of the facts and opinions stated in such document shall in such case be conditions precedent to the
right of the Issuer to have such application granted or to the sufficiency of such certificate or report. The foregoing shall not, however, be construed to affect the Indenture Trustee’s right to rely upon the truth and accuracy of any
statement or opinion contained in any such document as provided in Article VI. 
  
 SECTION 11.3 Acts of Noteholders. 
  
 (a) Any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be given or taken by the Noteholders may be embodied in and evidenced by one or more instruments
of substantially similar tenor signed by the Noteholders in person or by agents duly appointed in writing, and except as herein otherwise expressly provided such action shall become effective when such instrument or instruments are delivered to the
Indenture Trustee and, where it is hereby expressly required, to the Issuer. Such instrument or instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of the Noteholders
signing such instrument or instruments. Proof of execution of any such instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and (subject to Section 6.1) conclusive in favor of the Indenture
Trustee and the Issuer, if made in the manner provided in this Section 11.3. 
  
 (b) The fact and date of the execution by any Person of any such instrument or writing may be proved in any manner that the Indenture Trustee deems sufficient. 
  

 63 

 (c) The ownership of Notes shall be proved by the Note Register. 
  
 (d) Any request, demand, authorization, direction, notice, consent, waiver or
other action by the Holder of any Notes shall bind the Holder of every Note issued upon the registration thereof or in exchange therefor or in lieu thereof, in respect of anything done, omitted or suffered to be done by the Indenture Trustee or the
Issuer in reliance thereon, whether or not notation of such action is made upon such Note. 
  
 SECTION 11.4 Notices, etc., to Indenture Trustee, Issuer and Rating Agencies. Any request, demand, authorization, direction, notice, instruction, consent, waiver, Act of Noteholders or other document provided
or permitted by this Indenture shall be in writing and if such request, demand, authorization, direction, notice, instruction, consent, waiver, Act of Noteholders or other document is to be made upon, given or furnished to or filed with: 

 
 (i) the Indenture Trustee by any Noteholder or by the
Issuer, shall be sufficient for every purpose hereunder if made, given, furnished or filed in writing to or with the Indenture Trustee at its Corporate Trust Office; 
  
 (ii) the Issuer by the Indenture Trustee or by any Noteholder, shall be sufficient for every purpose
hereunder if in writing and mailed first-class, postage prepaid to the Issuer addressed to: CarMax Auto Owner Trust 2005-1, in care of The Bank of New York, 101 Barclay Street, 8W, New York, New York 10286, Attention: Corporate Trust Division, Asset
Backed Securities Group, with a copy to the Administrator at 4900 Cox Road, Glen Allen, Virginia 23060, Attention: Treasury Department, or at any other address previously furnished in writing to the Indenture Trustee by the Issuer or the
Administrator; or 
  
 (iii) the Depositor by the
Indenture Trustee, the Servicer or any Noteholder, shall be sufficient for every purpose hereunder if in writing and mailed first-class, postage prepaid to the Depositor addressed to CarMax Auto Funding LLC, 4900 Cox Road, Suite 200, Glen Allen,
Virginia 23060, Attention: Treasurer. 
  
 Notices required to be
given to the Rating Agencies by the Issuer, the Indenture Trustee or the Owner Trustee shall be in writing, personally delivered, telecopied or mailed by certified mail, return receipt requested, to (i) in the case of Moody’s, at the following
address: Moody’s Investors Service, Inc., ABS Monitoring Department, 99 Church Street, New York, New York 10007 and (ii) in case of Standard & Poor’s, at the following address: Standard & Poor’s Ratings Services, a division of
The McGraw-Hill Companies, Inc., 55 Water Street (43rd Floor), New York, New York 10041, Attention: Asset Backed
Surveillance Department. The Issuer shall promptly transmit any notice received by it from the Noteholders to the Indenture Trustee. 
  
 SECTION 11.5 Notices to Noteholders; Waiver. 
  
 (a) Where this Indenture provides for notice to Noteholders of any event, such notice shall be sufficiently given (unless otherwise herein expressly
provided) if in writing and mailed, first-class, postage prepaid to each Noteholder affected by such event, at its address as it appears on the Note Register, not later than the latest date, and not earlier than the earliest date, 

  

 64 

 
prescribed for the giving of such notice. In any case where notice to Noteholders is given by mail, neither the failure to mail such notice nor any defect in
any notice so mailed to any particular Noteholder shall affect the sufficiency of such notice with respect to other Noteholders, and any notice that is mailed in the manner herein provided shall conclusively be presumed to have been duly given.

  
 (b) Where this Indenture provides for notice in any manner,
such notice may be waived in writing by any Person entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by Noteholders shall be filed with the Indenture Trustee,
but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such a waiver. 
  
 (c) If, by reason of the suspension of regular mail service as a result of a strike, work stoppage or similar activity, it shall be impractical to mail
notice of any event to Noteholders when such notice is required to be given pursuant to any provision of this Indenture, then any manner of giving such notice as shall be satisfactory to the Indenture Trustee shall be deemed to be a sufficient
giving of such notice. 
  
 (d) Where this Indenture provides for
notice to the Rating Agencies, failure to give such notice shall not affect any other rights or obligations created hereunder, and shall not under any circumstance constitute a Default or Event of Default. 
  
 SECTION 11.6 Alternate Payment and Notice Provisions. Notwithstanding
any other provisions of this Indenture or any of the Notes to the contrary, the Issuer may enter into any agreement with any Holder of a Note providing for a method of payment, or notice by the Indenture Trustee or any Paying Agent to such Holder,
that is different from the methods provided for in this Indenture for such payments or notices. The Issuer shall furnish to the Indenture Trustee a copy of each such agreement and the Indenture Trustee shall cause payments to be made and notices to
be given in accordance with such agreements. 
  
 SECTION 11.7
Conflict with Trust Indenture Act. If any provision hereof limits, qualifies or conflicts with another provision hereof that is required to be included in this Indenture by any of the provisions of the Trust Indenture Act, such required
provision shall control. The provisions of TIA Sections 310 through 317 that impose duties on any Person (including the provisions automatically deemed included herein unless expressly excluded by this Indenture) are a part of and govern this
Indenture, whether or not physically contained herein. 
  
 SECTION
11.8 Effect of Headings and Table of Contents. The Article and Section headings herein and the Table of Contents are for convenience of reference only and shall not define or limit any of the terms or provisions hereof. 
  
 SECTION 11.9 Successors and Assigns. All covenants and agreements in
this Indenture and the Notes by the Issuer shall bind its successors and assigns, whether so expressed or not. All agreements of the Indenture Trustee in this Indenture shall bind its successors, co-trustees and agents. 
  

 65 

 SECTION 11.10 Severability. If any provision of this Indenture or the Notes shall be invalid,
illegal or unenforceable, the validity, legality, and enforceability of the remaining provisions of this Indenture and the Notes shall not in any way be affected or impaired thereby. 
  
 SECTION 11.11 Benefits of Indenture. Nothing in this Indenture or in the Notes, express or implied, shall give to any
Person, other than the parties hereto and their successors hereunder, the Noteholders, any other party secured hereunder and any other Person with an ownership interest in any part of the Trust Estate, any benefit or any legal or equitable right,
remedy or claim under this Indenture. 
  
 SECTION 11.12 Legal
Holiday. If the date on which any payment is due shall not be a Business Day, then (notwithstanding any other provision of the Notes or this Indenture) payment need not be made on such date but may be made on the next succeeding Business Day
with the same force and effect as if made on the date on which nominally due, and no interest shall accrue for the period from and after any such nominal date. 
  

SECTION 11.13 GOVERNING LAW. THIS INDENTURE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS
AND REMEDIES OF THE PARTIES UNDER THIS INDENTURE SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS WITHOUT GIVING EFFECT TO THE CONFLICTS OF LAWS PROVISIONS THEREOF WHICH MAY REQUIRE THE APPLICATION OF THE LAWS OF ANY OTHER JURISDICTION (OTHER THAN
SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW). 
  
 SECTION 11.14 Counterparts. This Indenture may be executed in any number of counterparts, each of which counterparts when so executed shall be deemed to be an original, and all of which counterparts shall together constitute but one
and the same instrument. 
  
 SECTION 11.15 Recording of
Indenture. If this Indenture is subject to recording in any appropriate public recording office, such recording shall be effected by the Issuer at its expense and shall be accompanied by an Opinion of Counsel (which may be counsel to the
Indenture Trustee or any other counsel reasonably acceptable to the Indenture Trustee) to the effect that such recording is necessary either for the protection of the Noteholders or any other Person secured hereunder or for the enforcement of any
right or remedy granted to the Indenture Trustee under this Indenture. 
  
 SECTION 11.16 Trust Obligation. No recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under this Indenture or any certificate or
other writing delivered in connection herewith or therewith against (i) the Indenture Trustee or the Owner Trustee in its individual capacity, (ii) any holder of a beneficial interest in the Issuer or (iii) any partner, owner, beneficiary, agent,
officer, director, employee or agent of the Indenture Trustee or the Owner Trustee in its individual capacity, of any holder of a beneficial interest in the Issuer, the Owner Trustee or the Indenture Trustee or of any successor or assign of the
Indenture Trustee or the Owner Trustee in its individual capacity, except as any such Person may have expressly 

  

 66 

 
agreed (it being understood that the Indenture Trustee and the Owner Trustee have no such obligations in their individual capacities), and except that any
such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law, for any unpaid consideration for stock, unpaid capital contribution or failure to pay any installment or call owing to such entity. For all purposes
of this Indenture, in the performance of any duties or obligations of the Issuer hereunder, the Owner Trustee shall be subject to, and entitled to the benefits of, the terms and provisions of Article VI, VII and VIII of the Trust Agreement.

  
 SECTION 11.17 No Petition. The Indenture Trustee, by
entering into this Indenture, and each Noteholder or Note Owner, by accepting a Note or beneficial interest in a Note, as the case may be, hereby covenant and agree that they will not at any time institute against the Depositor or the Issuer, or
join in any institution against the Depositor or the Issuer of, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings or other proceedings under any United States federal or state bankruptcy or similar law in connection
with any obligations relating to the Notes, this Indenture or any of the other Transaction Documents. 
  
 SECTION 11.18 Inspection. The Issuer shall, with reasonable prior notice, permit any representative of the Indenture Trustee, during the
Issuer’s normal business hours, to examine the books of account, records, reports and other papers of the Issuer, to make copies and extracts therefrom, to cause such books to be audited by Independent certified public accountants, and to
discuss the Issuer’s affairs, finances and accounts with the Issuer’s officers, employees, and Independent certified public accountants, all at such reasonable times and as often as may be reasonably requested. The Indenture Trustee shall
and shall cause its representatives to hold in confidence all such information except to the extent disclosure may be required by law (and all reasonable applications for confidential treatment are unavailing) and except to the extent that the
Indenture Trustee may reasonably determine that such disclosure is consistent with its obligations hereunder. 
  
 SECTION 11.19 [RESERVED]. 
  
 SECTION 11.20 Third-Party Beneficiaries. This Indenture shall inure to the benefit of and be binding upon the parties hereto, the Owner Trustee,
the Noteholders, the Certificateholders and their respective successors and permitted assigns. Except as otherwise provided in this Article XI, no other Person shall have any right or obligation hereunder. 
  
 [SIGNATURE PAGE FOLLOWS] 
  

 67 

 IN WITNESS WHEREOF, the Issuer and the Indenture Trustee have caused this Indenture to be duly executed
by their respective officers, thereunto duly authorized and duly attested, all as of the day and year first above written. 
  

			
	CARMAX AUTO OWNER TRUST 2005-1
		
	By:	 	 THE BANK OF NEW YORK,
 not in its individual capacity but
solely
 as Owner Trustee

		
	By:	 	 /s/ Anna Bourtman

	 	 	 Name: Anna Bourtman

	 	 	Title: Assistant Treasurer

  

			
	 WELLS FARGO BANK,
 NATIONAL
ASSOCIATION,
 not in its individual capacity but solely
 as
Indenture Trustee

		
	By:	 	 /s/ Marianna C. Stershic

	 	 	 Name: Marianna C. Stershic

	 	 	Title: Vice President

  

 S-1 
  
 Indenture 

 Exhibit A-1 
 Form of Class A-1 Note 
  
 UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
  
 THE PRINCIPAL OF THIS NOTE IS PAYABLE AS SET FORTH IN THE INDENTURE (AS DEFINED BELOW). THE OUTSTANDING PRINCIPAL BALANCE OF
THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF. 
  

			
	REGISTERED	  	$103,000,000
		
	NO. A-1	  	CUSIP NO. 143128 CE 4

  
 CARMAX AUTO OWNER TRUST
2005-1 
  
 3.1396% CLASS A-1 ASSET-BACKED NOTE 
  
 CarMax Auto Owner Trust 2005-1, a statutory trust organized and existing
under the laws of the State of Delaware (herein referred to as the “Issuer”), for value received, hereby promises to pay to Cede & Co., or its registered assigns, the principal sum of ONE HUNDRED THREE MILLION DOLLARS payable on
each Distribution Date in an amount equal to the aggregate amount, if any, payable from the Note Payment Account in respect of principal on the Class A-1 Notes pursuant to Section 2.8 of the Indenture dated as of April 1, 2005 (as amended,
supplemented or otherwise modified and in effect from time to time, the “Indenture”) between the Issuer and Wells Fargo Bank, National Association, a national banking association, as Indenture Trustee (in such capacity, the
“Indenture Trustee”); provided, however, that, if not paid prior to such date, the unpaid principal amount of this Class A-1 Note shall be due and payable on the earlier of the April 2006 Distribution Date (the
“Class A-1 Final Distribution Date”) and the Redemption Date, if any, pursuant to Section 10.1 of the Indenture. Capitalized terms used but not defined herein are defined in Article I of the Indenture, which also contains rules as
to construction that shall be applicable hereto. 
  
 The Issuer
shall pay interest on this Class A-1 Note at the rate per annum shown above on each Distribution Date, until the principal of this Class A-1 Note is paid or made available for payment, on the principal amount of this Class A-1 Note outstanding on
the 

  

 A1-1 

 
preceding Distribution Date (after giving effect to all payments of principal made on such preceding Distribution Date), subject to certain limitations
contained in Section 3.1 of the Indenture. Interest on this Class A-1 Note shall accrue for each Distribution Date from and including the preceding Distribution Date (or, in the case of the initial Distribution Date or if no interest has been paid,
from and including the Closing Date) to but excluding such Distribution Date. Interest shall be computed on the basis of actual days elapsed and a 360-day year. The principal of and interest on this Class A-1 Note shall be paid in the manner
specified on the reverse hereof. 
  
 “Distribution
Date” means the 15th day of each month or, if such 15th day is not a Business Day, the following Business Day, commencing on May 16, 2005. 
  
 The principal of and interest on this Class A-1 Note are payable in such coin or currency of the United States as at the time of payment is legal tender
for payment of public and private debts. All payments made by the Issuer with respect to this Class A-1 Note shall be applied first to interest due and payable on this Class A-1 Note as provided above and then to the unpaid principal of this Class
A-1 Note. 
  
 Reference is hereby made to the further provisions
of this Class A-1 Note set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if fully set forth on the face of this Class A-1 Note. 
  
 Unless the certificate of authentication hereon has been executed by an authorized officer of the Indenture Trustee, by
manual or facsimile signature, this Class A-1 Note shall not entitle the Holder hereof to any benefit under the Indenture or be valid for any purpose. 
  
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 
  

 A1-2 

 IN WITNESS WHEREOF, the Issuer has caused this Class A-1 Note to be duly executed as of the date set
forth below. 
  
 Dated: April 13, 2005 
  

			
	CARMAX AUTO OWNER TRUST 2005-1
		
	By:	 	 THE BANK OF NEW YORK,
 not in its individual capacity but
solely as
 Owner Trustee

		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

  
 TRUSTEE’S
CERTIFICATE OF AUTHENTICATION 
  
 This is one of the Class A-1
Notes designated above and referred to in the within-mentioned Indenture. 
  
 Dated: April 13, 2005 
  

			
	 WELLS FARGO BANK, NATIONAL ASSOCIATION,
 not
in its individual capacity but solely as Indenture
 Trustee

		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

  

 A1-3 

 [REVERSE OF CLASS A-1 NOTE] 
  
 This Class A-1 Note is one of a duly authorized issue of Notes of the Issuer, designated as its 3.1396% Class A-1
Asset-Backed Notes, which, together with the 3.78% Class A-2 Asset-Backed Notes, the 4.13% Class A-3 Asset-Backed Notes, the 4.35% Class A-4 Asset-Backed Notes, the 4.57% Class B Asset-Backed Notes and the 4.82% Class C Asset-Backed Notes
(collectively, the “Notes”), are issued under the Indenture, to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights and obligations thereunder of the Issuer, the
Indenture Trustee and the Holders of the Notes. The Notes are subject to all terms of the Indenture. 
  
 The Class A-1 Notes are and shall be equally and ratably secured by the collateral pledged as security therefor as provided in the Indenture. The Class
A-2 Notes, the Class A-3 Notes, the Class A-4 Notes, the Class B Notes and the Class C Notes are subordinated to the Class A-1 Notes to the extent set forth in the Indenture and the Sale and Servicing Agreement. 
  
 As described above, the entire unpaid principal amount of this Class A-1 Note
shall be due and payable on the earlier of the Class A-1 Final Distribution Date and the Redemption Date, if any, pursuant to Section 10.1 of the Indenture. Notwithstanding the foregoing, the entire unpaid principal amount of the Notes shall be due
and payable on the date on which an Event of Default shall have occurred and be continuing if the Indenture Trustee or the Holders of Notes evidencing not less than 51% of the Note Balance of the Controlling Class have declared the Notes to be
immediately due and payable in the manner provided in Section 5.2 of the Indenture. All principal payments on the Class A-1 Notes shall be made pro rata to the Holders entitled thereto if the Notes have been declared immediately due and payable.

  
 Payments of interest on this Class A-1 Note due and payable on
any Distribution Date, together with the installment of principal, if any, due and payable on such Distribution Date, to the extent not in full payment of this Class A-1 Note, shall be made by check mailed to the Person whose name appears as the
Holder of this Class A-1 Note (or one or more Predecessor Notes) on the Note Register as of the close of business on the Record Date preceding such Distribution Date, except that with respect to Class A-1 Notes registered on the Record Date in the
name of the nominee of the Clearing Agency (initially, such nominee to be Cede & Co.), payments will be made by wire transfer in immediately available funds to the account designated by such nominee. Such checks shall be mailed to the Person
entitled thereto at the address of such Person as it appears on the Note Register as of such Record Date without requiring that this Class A-1 Note be submitted for notation of payment. Any reduction in the principal amount of this Class A-1 Note
(or any one or more Predecessor Notes) effected by any payments made on any Distribution Date shall be binding upon all future Holders of this Class A-1 Note and of any Class A-1 Note issued upon the registration of transfer hereof or in exchange
hereof or in lieu hereof, whether or not noted hereon. If funds are expected to be available, as provided in the Indenture, for payment in full of the then remaining unpaid principal amount of this Class A-1 Note on a Distribution Date, then the
Indenture Trustee, in the name of and on behalf of the Issuer, shall notify the Person who was the Holder hereof as of the Record Date preceding such Distribution Date by notice mailed or transmitted by facsimile prior to such Distribution Date, and
the amount then due and payable shall be payable only upon presentation and surrender of this Class A-1 Note at the Indenture Trustee’s Corporate Trust Office or at the 

  

 A1-4 

 
office of the Indenture Trustee’s agent appointed for such purposes located in New York, New York. 
  
 The Issuer shall pay interest on overdue installments of interest at the
Class A-1 Rate to the extent lawful. 
  
 As provided in the
Indenture, the Notes may be redeemed, in whole but not in part, in the manner and to the extent described in the Indenture and the Sale and Servicing Agreement. 
  

As provided in the Indenture, and subject to certain limitations set forth therein, the transfer of this Class A-1 Note may be registered on the Note
Register upon surrender of this Class A-1 Note for registration of transfer at the office or agency designated by the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the
Indenture Trustee duly executed by, the Holder hereof or such Holder’s attorney duly authorized in writing, with such signature guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar, and
thereupon one or more new Class A-1 Notes in any authorized denomination and in the same aggregate principal amount will be issued to the designated transferee or transferees. No service charge will be charged for any registration of transfer or
exchange of this Class A-1 Note, but the transferor may be required to pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any such registration of transfer or exchange. 
  
 Each Noteholder or Note Owner, by its acceptance of a Note or, in the case of
a Note Owner, a beneficial interest in a Note, covenants and agrees that no recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer or the Indenture Trustee on the Notes or under the Indenture or any certificate
or other writing delivered in connection therewith against (i) the Indenture Trustee or the Owner Trustee, each in its individual capacity, (ii) any holder of a beneficial interest in the Issuer or (iii) any partner, owner, beneficiary, agent,
officer, director or employee of the Indenture Trustee or the Owner Trustee, each in its individual capacity, or any holder of a beneficial interest in the Issuer, the Owner Trustee or the Indenture Trustee or any successor or assign of the
Indenture Trustee or the Owner Trustee, each in its individual capacity, except as any such Person may have expressly agreed and except that any such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law, for
any unpaid consideration for stock, unpaid capital contribution for stock, unpaid capital contribution or failure to pay any installment or call owing to such entity. 
  
 Each Noteholder or Note Owner, by its acceptance of a Note or, in the case of a Note Owner, a beneficial interest in a Note,
covenants and agrees that such Noteholder or Note Owner shall not at any time institute against the Depositor or the Issuer, or join in any institution against the Depositor or the Issuer of, any bankruptcy, reorganization, arrangement, insolvency
or liquidation proceedings under any United States federal or state bankruptcy or similar law in connection with any obligations relating to the Notes, the Certificates, the Indenture or any of the other Transaction Documents. 
  

 A1-5 

 The Issuer has entered into the Indenture and this Class A-1 Note is issued with the intention that, for
federal, state and local income, and franchise tax purposes, the Notes will qualify as indebtedness of the Issuer secured by the Trust Estate. Each Noteholder or Note Owner, by its acceptance of a Note or, in the case of a Note Owner, a beneficial
interest in a Note, agrees to treat the Notes for federal, state and local income, single business and franchise tax purposes as indebtedness of the Issuer. 
  
 Prior to the due presentment for registration of transfer of this Class A-1 Note, the Issuer, the Indenture Trustee and any agent of the Issuer or the
Indenture Trustee may treat the Person in whose name this Class A-1 Note (as of the day of determination or as of such other date as may be specified in the Indenture) is registered as the owner hereof for all purposes, whether or not this Class A-1
Note shall be overdue, and none of the Issuer, the Indenture Trustee or any such agent shall be affected by notice to the contrary. 
  
 The Indenture permits the Owner Trustee, on behalf of the Issuer, and the Indenture Trustee, with certain exceptions therein provided, to amend or waive
from time to time certain terms and conditions set forth in the Indenture without the consent of the Holders of the Notes. The Indenture also permits the Owner Trustee, on behalf of the Issuer, and the Indenture Trustee, with certain exceptions as
therein provided, to amend or waive from time to time certain terms and conditions set forth in the Indenture with the consent of the Holders of Notes evidencing not less than 51% of the Note Balance of the Controlling Class. The Indenture also
permits the Holders of Notes evidencing not less than 51% of the Note Balance of the Controlling Class, on behalf of the Holders of all the Notes, to waive compliance by the Issuer with certain provisions of the Indenture and certain past defaults
under the Indenture and their consequences. Any such consent or waiver by the Holders of 51% of the Note Balance of the Controlling Class or the Holder of this Class A-1 Note (or any one or more Predecessor Notes) shall be conclusive and binding on
such Holder and on all future Holders of this Class A-1 Note and of any Class A-1 Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is made upon this Class
A-1 Note. 
  
 The term “Issuer”, as used in this Note,
includes any successor to the Issuer under the Indenture. 
  
 The
Indenture permits the Issuer, under certain circumstances, to consolidate or merge with or into another Person, subject to the rights of the Indenture Trustee and the Holders of Notes under the Indenture. 
  
 The Notes are issuable only in registered form in denominations as provided
in the Indenture, subject to certain limitations therein set forth. 
  
 This Class A-1 Note and the Indenture shall be governed by, and construed in accordance with, the laws of the State of New York, and the obligations, rights and remedies of the parties hereunder and thereunder shall be determined in
accordance with such laws. 
  

 A1-6 

 No reference herein to the Indenture, and no provision of this Note or of the Indenture, shall alter or
impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of and interest on this Class A-1 Note at the times, place and rate, and in the coin or currency, herein prescribed. 
  
 Anything herein to the contrary notwithstanding, except as expressly provided
in the Transaction Documents, none of Wells Fargo Bank, National Association, in its individual capacity, The Bank of New York, in its individual capacity, any holder of a beneficial interest in the Issuer, or any of their respective partners,
beneficiaries, agents, officers, directors, employees or successors or assigns shall be personally liable for, nor shall recourse be had to any of them for, the payment of principal of or interest on this Class A-1 Note or the performance of, or
omission to perform, any of the covenants, obligations or indemnifications contained in the Indenture. The Holder of this Note, by its acceptance hereof, agrees that, except as expressly provided in the Transaction Documents, in the case of an Event
of Default under the Indenture, the Holder shall have no claim against any of the foregoing for any deficiency, loss or claim resulting therefrom; provided, however, that nothing contained herein shall be taken to prevent recourse to, or enforcement
against, the assets of the Issuer for any and all liabilities, obligations and undertakings contained in the Indenture or in this Class A-1 Note. 
  

 A1-7 

 ASSIGNMENT 
  
 SOCIAL SECURITY NUMBER 
 OR OTHER IDENTIFICATION 
 NUMBER OF ASSIGNEE:
                                 
  
 FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto                 
                                        
                
  
                                       
                                        
                                        
                                        
                                        
                                        
                    
  
                                       
                                        
                                        
                                        
                                        
                                        
                    
  
 (name and address of assignee) 
  
 the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints
                                        
                , attorney, to transfer said Note on the Note Register, with full power of substitution in the premises. 
  
 Dated: 
  

			
		
	 	 	*/
		
	 Signature Guaranteed:
	 	 
		
	 	 	*/

  

	*/	NOTICE: The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within Note in every particular, without alteration,
enlargement or any change whatsoever. Such signature must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar. 

  

 A1-8 

 Exhibit A-2 
 Form of Class A-2 Note 
  
 UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
  
 THE PRINCIPAL OF THIS NOTE IS PAYABLE AS SET FORTH IN THE INDENTURE (AS DEFINED BELOW). THE OUTSTANDING PRINCIPAL BALANCE OF
THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF. 
  

			
	 REGISTERED
	 	$204,000,000
		
	 NO. A-2
	 	CUSIP NO. 143128 CF 1

  
 CARMAX AUTO OWNER TRUST
2005-1 
  
 3.78% CLASS A-2 ASSET-BACKED NOTE 
  
 CarMax Auto Owner Trust 2005-1, a statutory trust organized and existing
under the laws of the State of Delaware (herein referred to as the “Issuer”), for value received, hereby promises to pay to Cede & Co., or its registered assigns, the principal sum of TWO HUNDRED FOUR MILLION DOLLARS payable on
each Distribution Date in an amount equal to the aggregate amount, if any, payable from the Note Payment Account in respect of principal on the Class A-2 Notes pursuant to Section 2.8 of the Indenture dated as of April 1, 2005 (as amended,
supplemented or otherwise modified and in effect from time to time, the “Indenture”) between the Issuer and Wells Fargo Bank, National Association, a national banking association, as Indenture Trustee (in such capacity, the
“Indenture Trustee”); provided, however, that principal of this Class A-2 Note will not be due and payable until the Class A-1 Notes have been paid in full; and, provided further, that, if not paid prior
to such date, the unpaid principal amount of this Class A-2 Note shall be due and payable on the earlier of the February 2008 Distribution Date (the “Class A-2 Final Distribution Date”) and the Redemption Date, if any, pursuant to
Section 10.1 of the Indenture. Capitalized terms used but not defined herein are defined in Article I of the Indenture, which also contains rules as to construction that shall be applicable hereto. 
  
 The Issuer shall pay interest on this Class A-2 Note at the rate per annum
shown above on each Distribution Date, until the principal of this Class A-2 Note is paid or made 

  

 A2-1 

 
available for payment, on the principal amount of this Class A-2 Note outstanding on the preceding Distribution Date (after giving effect to all payments of
principal made on such preceding Distribution Date), subject to certain limitations contained in Section 3.1 of the Indenture. Interest on this Class A-2 Note shall accrue for each Distribution Date from and including the 15th day of the preceding
month (or, in the case of the initial Distribution Date or if no interest has been paid, from and including the Closing Date) to but excluding the 15th day of the month in which such Distribution Date occurs. Interest shall be computed on the basis
of a 360-day year consisting of twelve 30-day months. Interest on this Class A-2 Note on each Distribution Date shall equal one-twelfth of the product of (i) the rate per annum shown above and (ii) the principal amount of this Class A-2 Note
outstanding on the preceding Distribution Date (after giving effect to all payments of principal made on such preceding Distribution Date); provided, however, that the interest payable on this Class A-2 Note on May 16, 2005 shall equal
$685,440.00. The principal of and interest on this Class A-2 Note shall be paid in the manner specified on the reverse hereof. 
  
 “Distribution Date” means the 15th day of each month or, if such 15th day is not a Business Day, the following Business Day, commencing
on May 16, 2005. 
  
 The principal of and interest on this Class
A-2 Note are payable in such coin or currency of the United States as at the time of payment is legal tender for payment of public and private debts. All payments made by the Issuer with respect to this Class A-2 Note shall be applied first to
interest due and payable on this Class A-2 Note as provided above and then to the unpaid principal of this Class A-2 Note. 
  
 Reference is hereby made to the further provisions of this Class A-2 Note set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if fully set forth on the face of this Class A-2 Note. 
  
 Unless the certificate of authentication hereon has been executed by an authorized officer of the Indenture Trustee, by manual or facsimile signature, this Class A-2 Note shall not entitle the Holder hereof to any
benefit under the Indenture or be valid for any purpose. 
  
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 
  

 A2-2 

 IN WITNESS WHEREOF, the Issuer has caused this Class A-2 Note to be duly executed as of the date set
forth below. 
  
 Dated: April 13, 2005 
  

					
	CARMAX AUTO OWNER TRUST 2005-1
		
	By:	 	 THE BANK OF NEW YORK,
 not in its individual
capacity but solely as Owner Trustee

		
	By: 	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  
 TRUSTEE’S
CERTIFICATE OF AUTHENTICATION 
  
 This is one of the Class A-2
Notes designated above and referred to in the within-mentioned Indenture. 
  
 Dated: April 13, 2005 
  

					
	 WELLS FARGO BANK, NATIONAL ASSOCIATION,
 not
in its individual capacity but solely as Indenture Trustee

		
	By: 	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

 A2-3 

  
 [REVERSE OF CLASS A-2 NOTE]

  
 This Class A-2 Note is one of a duly authorized issue of Notes
of the Issuer, designated as its 3.78% Class A-2 Asset-Backed Notes, which, together with the 3.1396% Class A-1 Asset-Backed Notes, the 4.13% Class A-3 Asset-Backed Notes, the 4.35% Class A-4 Asset-Backed Notes, the 4.57% Class B Asset-Backed Notes
and the 4.82% Class C Asset-Backed Notes (collectively, the “Notes”), are issued under the Indenture, to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights and
obligations thereunder of the Issuer, the Indenture Trustee and the Holders of the Notes. The Notes are subject to all terms of the Indenture. 
  
 The Class A-2 Notes are and shall be equally and ratably secured by the collateral pledged as security therefor as provided in the Indenture. The Class
A-2 Notes are subordinated to the Class A-1 Notes to the extent set forth in the Indenture and the Sale and Servicing Agreement. The Class A-3 Notes, the Class A-4 Notes, the Class B Notes and the Class C Notes are subordinated to the Class A-2
Notes to the extent set forth in the Indenture and the Sale and Servicing Agreement. 
  
 As described above, the entire unpaid principal amount of this Class A-2 Note shall be due and payable on the earlier of the Class A-2 Final Distribution Date and the Redemption Date, if any, pursuant to Section 10.1
of the Indenture. Notwithstanding the foregoing, the entire unpaid principal amount of the Notes shall be due and payable on the date on which an Event of Default shall have occurred and be continuing if the Indenture Trustee or the Holders of Notes
evidencing not less than 51% of the Note Balance of the Controlling Class have declared the Notes to be immediately due and payable in the manner provided in Section 5.2 of the Indenture. All principal payments on the Class A-2 Notes shall be made
pro rata to the Holders entitled thereto if the Notes have been declared immediately due and payable. 
  
 Payments of interest on this Class A-2 Note due and payable on any Distribution Date, together with the installment of principal, if any, due and payable
on such Distribution Date, to the extent not in full payment of this Class A-2 Note, shall be made by check mailed to the Person whose name appears as the Holder of this Class A-2 Note (or one or more Predecessor Notes) on the Note Register as of
the close of business on the Record Date preceding such Distribution Date, except that with respect to Class A-2 Notes registered on the Record Date in the name of the nominee of the Clearing Agency (initially, such nominee to be Cede & Co.),
payments will be made by wire transfer in immediately available funds to the account designated by such nominee. Such checks shall be mailed to the Person entitled thereto at the address of such Person as it appears on the Note Register as of such
Record Date without requiring that this Class A-2 Note be submitted for notation of payment. Any reduction in the principal amount of this Class A-2 Note (or any one or more Predecessor Notes) effected by any payments made on any Distribution Date
shall be binding upon all future Holders of this Class A-2 Note and of any Class A-2 Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not noted hereon. If funds are expected to be available, as
provided in the Indenture, for payment in full of the then remaining unpaid principal amount of this Class A-2 Note on a Distribution Date, then the Indenture Trustee, in the name of and on behalf of the Issuer, shall notify the Person who was the
Holder hereof as of the Record Date preceding such Distribution Date by notice mailed or transmitted by facsimile prior to such 

  

 A2-4 

 
Distribution Date, and the amount then due and payable shall be payable only upon presentation and surrender of this Class A-2 Note at the Indenture
Trustee’s Corporate Trust Office or at the office of the Indenture Trustee’s agent appointed for such purposes located in New York, New York. 
  
 The Issuer shall pay interest on overdue installments of interest at the Class A-2 Rate to the extent lawful. 
  
 As provided in the Indenture, the Notes may be redeemed, in whole but not in
part, in the manner and to the extent described in the Indenture and the Sale and Servicing Agreement. 
  
 As provided in the Indenture, and subject to certain limitations set forth therein, the transfer of this Class A-2 Note may be registered on the Note
Register upon surrender of this Class A-2 Note for registration of transfer at the office or agency designated by the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the
Indenture Trustee duly executed by, the Holder hereof or such Holder’s attorney duly authorized in writing, with such signature guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar, and
thereupon one or more new Class A-2 Notes in any authorized denomination and in the same aggregate principal amount will be issued to the designated transferee or transferees. No service charge will be charged for any registration of transfer or
exchange of this Class A-2 Note, but the transferor may be required to pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any such registration of transfer or exchange. 
  
 Each Noteholder or Note Owner, by its acceptance of a Note or, in the case of
a Note Owner, a beneficial interest in a Note, covenants and agrees that no recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer or the Indenture Trustee on the Notes or under the Indenture or any certificate
or other writing delivered in connection therewith against (i) the Indenture Trustee or the Owner Trustee, each in its individual capacity, (ii) any holder of a beneficial interest in the Issuer or (iii) any partner, owner, beneficiary, agent,
officer, director or employee of the Indenture Trustee or the Owner Trustee, each in its individual capacity, or any holder of a beneficial interest in the Issuer, the Owner Trustee or the Indenture Trustee or any successor or assign of the
Indenture Trustee or the Owner Trustee, each in its individual capacity, except as any such Person may have expressly agreed and except that any such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law, for
any unpaid consideration for stock, unpaid capital contribution for stock, unpaid capital contribution or failure to pay any installment or call owing to such entity. 
  
 Each Noteholder or Note Owner, by its acceptance of a Note or, in the case of a Note Owner, a beneficial interest in a Note,
covenants and agrees that such Noteholder or Note Owner shall not at any time institute against the Depositor or the Issuer, or join in any institution against the Depositor or the Issuer of, any bankruptcy, reorganization, arrangement, insolvency
or liquidation proceedings under any United States federal or state bankruptcy or similar law in connection with any obligations relating to the Notes, the Certificates, the Indenture or any of the other Transaction Documents. 
  

 A2-5 

 The Issuer has entered into the Indenture and this Class A-2 Note is issued with the intention that, for
federal, state and local income, and franchise tax purposes, the Notes will qualify as indebtedness of the Issuer secured by the Trust Estate. Each Noteholder or Note Owner, by its acceptance of a Note or, in the case of a Note Owner, a beneficial
interest in a Note, agrees to treat the Notes for federal, state and local income, single business and franchise tax purposes as indebtedness of the Issuer. 
  
 Prior to the due presentment for registration of transfer of this Class A-2 Note, the Issuer, the Indenture Trustee and any agent of the Issuer or the
Indenture Trustee may treat the Person in whose name this Class A-2 Note (as of the day of determination or as of such other date as may be specified in the Indenture) is registered as the owner hereof for all purposes, whether or not this Class A-2
Note shall be overdue, and none of the Issuer, the Indenture Trustee or any such agent shall be affected by notice to the contrary. 
  
 The Indenture permits the Owner Trustee, on behalf of the Issuer, and the Indenture Trustee, with certain exceptions therein provided, to amend or waive
from time to time certain terms and conditions set forth in the Indenture without the consent of the Holders of the Notes. The Indenture also permits the Owner Trustee, on behalf of the Issuer, and the Indenture Trustee, with certain exceptions as
therein provided, to amend or waive from time to time certain terms and conditions set forth in the Indenture with the consent of the Holders of Notes evidencing not less than 51% of the Note Balance of the Controlling Class. The Indenture also
permits the Holders of Notes evidencing not less than 51% of the Note Balance of the Controlling Class, on behalf of the Holders of all the Notes, to waive compliance by the Issuer with certain provisions of the Indenture and certain past defaults
under the Indenture and their consequences. Any such consent or waiver by the Holders of 51% of the Note Balance of the Controlling Class or the Holder of this Class A-2 Note (or any one or more Predecessor Notes) shall be conclusive and binding on
such Holder and on all future Holders of this Class A-2 Note and of any Class A-2 Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is made upon this Class
A-2 Note. 
  
 The term “Issuer”, as used in this Note,
includes any successor to the Issuer under the Indenture. 
  
 The
Indenture permits the Issuer, under certain circumstances, to consolidate or merge with or into another Person, subject to the rights of the Indenture Trustee and the Holders of Notes under the Indenture. 
  
 The Notes are issuable only in registered form in denominations as provided
in the Indenture, subject to certain limitations therein set forth. 
  
 This Class A-2 Note and the Indenture shall be governed by, and construed in accordance with, the laws of the State of New York, and the obligations, rights and remedies of the parties hereunder and thereunder shall be determined in
accordance with such laws. 
  

 A2-6 

 No reference herein to the Indenture, and no provision of this Note or of the Indenture, shall alter or
impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of and interest on this Class A-2 Note at the times, place and rate, and in the coin or currency, herein prescribed. 
  
 Anything herein to the contrary notwithstanding, except as expressly provided
in the Transaction Documents, none of Wells Fargo Bank, National Association, in its individual capacity, The Bank of New York, in its individual capacity, any holder of a beneficial interest in the Issuer, or any of their respective partners,
beneficiaries, agents, officers, directors, employees or successors or assigns shall be personally liable for, nor shall recourse be had to any of them for, the payment of principal of or interest on this Class A-2 Note or the performance of, or
omission to perform, any of the covenants, obligations or indemnifications contained in the Indenture. The Holder of this Note, by its acceptance hereof, agrees that, except as expressly provided in the Transaction Documents, in the case of an Event
of Default under the Indenture, the Holder shall have no claim against any of the foregoing for any deficiency, loss or claim resulting therefrom; provided, however, that nothing contained herein shall be taken to prevent recourse to, or enforcement
against, the assets of the Issuer for any and all liabilities, obligations and undertakings contained in the Indenture or in this Class A-2 Note. 
  

 A2-7 

  
 ASSIGNMENT 
  
 SOCIAL SECURITY NUMBER 
 OR OTHER IDENTIFICATION 
 NUMBER OF ASSIGNEE:
                         
  
 FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto                                     
                                    
  
                                       
                                        
                                        
                                        
                                        
                                        
                    
  
                                       
                                        
                                        
                                        
                                        
                                        
                    
  
 (name and address of assignee) 
  
 the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints
                                        
                , attorney, to transfer said Note on the Note Register, with full power of substitution in the premises. 
  
 Dated: 
  

			
		
	 	 	 */

		
	 Signature Guaranteed:
	 	 
		
	 	 	 */

  

	*/	NOTICE: The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within Note in every particular, without alteration,
enlargement or any change whatsoever. Such signature must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar. 

  

 A2-8 

 Exhibit A-3 
 Form of Class A-3 Note 
  
 UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
  
 THE PRINCIPAL OF THIS NOTE IS PAYABLE AS SET FORTH IN THE INDENTURE (AS DEFINED BELOW). THE OUTSTANDING PRINCIPAL BALANCE OF
THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF. 
  

			
	 REGISTERED
	  	$167,000,000
		
	 NO. A-3
	  	CUSIP NO. 143128 CG 9

  
 CARMAX AUTO OWNER TRUST
2005-1 
  
 4.13% CLASS A-3 ASSET-BACKED NOTE 
  
 CarMax Auto Owner Trust 2005-1, a statutory trust organized and existing
under the laws of the State of Delaware (herein referred to as the “Issuer”), for value received, hereby promises to pay to Cede & Co., or its registered assigns, the principal sum of ONE HUNDRED SIXTY-SEVEN MILLION DOLLARS
payable on each Distribution Date in an amount equal to the aggregate amount, if any, payable from the Note Payment Account in respect of principal on the Class A-3 Notes pursuant to Section 2.8 of the Indenture dated as of April 1, 2005 (as
amended, supplemented or otherwise modified and in effect from time to time, the “Indenture”) between the Issuer and Wells Fargo Bank, National Association, a national banking association, as Indenture Trustee (in such capacity, the
“Indenture Trustee”); provided, however, that, except under certain limited circumstances described in the Indenture, principal of this Class A-3 Note will not be due and payable until the Class A-1 Notes and the Class
A-2 Notes have been paid in full; and, provided further, that, if not paid prior to such date, the unpaid principal amount of this Class A-3 Note shall be due and payable on the earlier of the May 2009 Distribution Date (the
“Class A-3 Final Distribution Date”) and the Redemption Date, if any, pursuant to Section 10.1 of the Indenture. Capitalized terms used but not defined herein are defined in Article I of the Indenture, which also contains rules as
to construction that shall be applicable hereto. 
  

 A3-1 

 The Issuer shall pay interest on this Class A-3 Note at the rate per annum shown above on each
Distribution Date, until the principal of this Class A-3 Note is paid or made available for payment, on the principal amount of this Class A-3 Note outstanding on the preceding Distribution Date (after giving effect to all payments of principal made
on such preceding Distribution Date), subject to certain limitations contained in Section 3.1 of the Indenture. Interest on this Class A-3 Note shall accrue for each Distribution Date from and including the 15th day of the preceding month (or, in
the case of the initial Distribution Date or if no interest has been paid, from and including the Closing Date) to but excluding the 15th day of the month in which such Distribution Date occurs. Interest shall be computed on the basis of a 360-day
year consisting of twelve 30-day months. Interest on this Class A-3 Note on each Distribution Date shall equal one-twelfth of the product of (i) the rate per annum shown above and (ii) the principal amount of this Class A-3 Note outstanding on the
preceding Distribution Date (after giving effect to all payments of principal made on such preceding Distribution Date); provided, however, that the interest payable on this Class A-3 Note on May 16, 2005 shall equal $613,075.56. The
principal of and interest on this Class A-3 Note shall be paid in the manner specified on the reverse hereof. 
  
 “Distribution Date” means the 15th day of each month or, if such 15th day is not a Business Day, the following Business Day, commencing
on May 16, 2005. 
  
 The principal of and interest on this Class
A-3 Note are payable in such coin or currency of the United States as at the time of payment is legal tender for payment of public and private debts. All payments made by the Issuer with respect to this Class A-3 Note shall be applied first to
interest due and payable on this Class A-3 Note as provided above and then to the unpaid principal of this Class A-3 Note. 
  
 Reference is hereby made to the further provisions of this Class A-3 Note set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if fully set forth on the face of this Class A-3 Note. 
  
 Unless the certificate of authentication hereon has been executed by an authorized officer of the Indenture Trustee, by manual or facsimile signature, this Class A-3 Note shall not entitle the Holder hereof to any
benefit under the Indenture or be valid for any purpose. 
  
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 
  

 A3-2 

 IN WITNESS WHEREOF, the Issuer has caused this Class A-3 Note to be duly executed as of the date set
forth below. 
  
 Dated: April 13, 2005 
  

					
	 CARMAX AUTO OWNER TRUST 2005-1

	
	 By:   THE BANK OF NEW YORK,
          not in its individual capacity but solely as
          Owner Trustee

		
	By:	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  
 TRUSTEE’S
CERTIFICATE OF AUTHENTICATION 
  
 This is one of the Class A-3
Notes designated above and referred to in the within-mentioned Indenture. 
  
 Dated: April 13, 2005 
  

					
	 WELLS FARGO BANK, NATIONAL
 ASSOCIATION,
 not in its individual capacity but solely as Indenture
 Trustee

		
	By:	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

 A3-3 

 [REVERSE OF CLASS A-3 NOTE] 
  
 This Class A-3 Note is one of a duly authorized issue of Notes of the Issuer, designated as its 4.13% Class A-3 Asset-Backed
Notes, which, together with the 3.1396% Class A-1 Asset-Backed Notes, the 3.78% Class A-2 Asset-Backed Notes, the 4.35% Class A-4 Asset-Backed Notes, the 4.57% Class B Asset-Backed Notes and the 4.82% Class C Asset-Backed Notes (collectively, the
“Notes”), are issued under the Indenture, to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights and obligations thereunder of the Issuer, the Indenture Trustee
and the Holders of the Notes. The Notes are subject to all terms of the Indenture. 
  
 The Class A-3 Notes are and shall be equally and ratably secured by the collateral pledged as security therefor as provided in the Indenture. The Class A-3 Notes are subordinated to the Class A-1 Notes and the Class
A-2 Notes to the extent set forth in the Indenture and the Sale and Servicing Agreement. The Class A-4 Notes, the Class B Notes and the Class C Notes are subordinated to the Class A-3 Notes to the extent set forth in the Indenture and the Sale and
Servicing Agreement. 
  
 As described above, the entire unpaid
principal amount of this Class A-3 Note shall be due and payable on the earlier of the Class A-3 Final Distribution Date and the Redemption Date, if any, pursuant to Section 10.1 of the Indenture. Notwithstanding the foregoing, the entire unpaid
principal amount of the Notes shall be due and payable on the date on which an Event of Default shall have occurred and be continuing if the Indenture Trustee or the Holders of Notes evidencing not less than 51% of the Note Balance of the
Controlling Class have declared the Notes to be immediately due and payable in the manner provided in Section 5.2 of the Indenture. All principal payments on the Class A-3 Notes shall be made pro rata to the Holders entitled thereto if the Notes
have been declared immediately due and payable. 
  
 Payments of
interest on this Class A-3 Note due and payable on any Distribution Date, together with the installment of principal, if any, due and payable on such Distribution Date, to the extent not in full payment of this Class A-3 Note, shall be made by check
mailed to the Person whose name appears as the Holder of this Class A-3 Note (or one or more Predecessor Notes) on the Note Register as of the close of business on the Record Date preceding such Distribution Date, except that with respect to Class
A-3 Notes registered on the Record Date in the name of the nominee of the Clearing Agency (initially, such nominee to be Cede & Co.), payments will be made by wire transfer in immediately available funds to the account designated by such
nominee. Such checks shall be mailed to the Person entitled thereto at the address of such Person as it appears on the Note Register as of such Record Date without requiring that this Class A-3 Note be submitted for notation of payment. Any
reduction in the principal amount of this Class A-3 Note (or any one or more Predecessor Notes) effected by any payments made on any Distribution Date shall be binding upon all future Holders of this Class A-3 Note and of any Class A-3 Note issued
upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not noted hereon. If funds are expected to be available, as provided in the Indenture, for payment in full of the then remaining unpaid principal amount of
this Class A-3 Note on a Distribution Date, then the Indenture Trustee, in the name of and on behalf of the Issuer, shall notify the Person who was the Holder hereof as of the Record Date preceding such Distribution Date by notice mailed or
transmitted by facsimile prior to such 

  

 A3-4 

 
Distribution Date, and the amount then due and payable shall be payable only upon presentation and surrender of this Class A-3 Note at the Indenture
Trustee’s Corporate Trust Office or at the office of the Indenture Trustee’s agent appointed for such purposes located in New York, New York. 
  
 The Issuer shall pay interest on overdue installments of interest at the Class A-3 Rate to the extent lawful. 
  
 As provided in the Indenture, the Notes may be redeemed, in whole but not in
part, in the manner and to the extent described in the Indenture and the Sale and Servicing Agreement. 
  
 As provided in the Indenture, and subject to certain limitations set forth therein, the transfer of this Class A-3 Note may be registered on the Note
Register upon surrender of this Class A-3 Note for registration of transfer at the office or agency designated by the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the
Indenture Trustee duly executed by, the Holder hereof or such Holder’s attorney duly authorized in writing, with such signature guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar, and
thereupon one or more new Class A-3 Notes in any authorized denomination and in the same aggregate principal amount will be issued to the designated transferee or transferees. No service charge will be charged for any registration of transfer or
exchange of this Class A-3 Note, but the transferor may be required to pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any such registration of transfer or exchange. 
  
 Each Noteholder or Note Owner, by its acceptance of a Note or, in the case of
a Note Owner, a beneficial interest in a Note, covenants and agrees that no recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer or the Indenture Trustee on the Notes or under the Indenture or any certificate
or other writing delivered in connection therewith against (i) the Indenture Trustee or the Owner Trustee, each in its individual capacity, (ii) any holder of a beneficial interest in the Issuer or (iii) any partner, owner, beneficiary, agent,
officer, director or employee of the Indenture Trustee or the Owner Trustee, each in its individual capacity, or any holder of a beneficial interest in the Issuer, the Owner Trustee or the Indenture Trustee or any successor or assign of the
Indenture Trustee or the Owner Trustee, each in its individual capacity, except as any such Person may have expressly agreed and except that any such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law, for
any unpaid consideration for stock, unpaid capital contribution for stock, unpaid capital contribution or failure to pay any installment or call owing to such entity. 
  
 Each Noteholder or Note Owner, by its acceptance of a Note or, in the case of a Note Owner, a beneficial interest in a Note,
covenants and agrees that such Noteholder or Note Owner shall not at any time institute against the Depositor or the Issuer, or join in any institution against the Depositor or the Issuer of, any bankruptcy, reorganization, arrangement, insolvency
or liquidation proceedings under any United States federal or state bankruptcy or similar law in connection with any obligations relating to the Notes, the Certificates, the Indenture or any of the other Transaction Documents. 
  

 A3-5 

 The Issuer has entered into the Indenture and this Class A-3 Note is issued with the intention that, for
federal, state and local income, and franchise tax purposes, the Notes will qualify as indebtedness of the Issuer secured by the Trust Estate. Each Noteholder or Note Owner, by its acceptance of a Note or, in the case of a Note Owner, a beneficial
interest in a Note, agrees to treat the Notes for federal, state and local income, single business and franchise tax purposes as indebtedness of the Issuer. 
  
 Prior to the due presentment for registration of transfer of this Class A-3 Note, the Issuer, the Indenture Trustee and any agent of the Issuer or the
Indenture Trustee may treat the Person in whose name this Class A-3 Note (as of the day of determination or as of such other date as may be specified in the Indenture) is registered as the owner hereof for all purposes, whether or not this Class A-3
Note shall be overdue, and none of the Issuer, the Indenture Trustee or any such agent shall be affected by notice to the contrary. 
  
 The Indenture permits the Owner Trustee, on behalf of the Issuer, and the Indenture Trustee, with certain exceptions therein provided, to amend or waive
from time to time certain terms and conditions set forth in the Indenture without the consent of the Holders of the Notes. The Indenture also permits the Owner Trustee, on behalf of the Issuer, and the Indenture Trustee, with certain exceptions as
therein provided, to amend or waive from time to time certain terms and conditions set forth in the Indenture with the consent of the Holders of Notes evidencing not less than 51% of the Note Balance of the Controlling Class. The Indenture also
permits the Holders of Notes evidencing not less than 51% of the Note Balance of the Controlling Class, on behalf of the Holders of all the Notes, to waive compliance by the Issuer with certain provisions of the Indenture and certain past defaults
under the Indenture and their consequences. Any such consent or waiver by the Holders of 51% of the Note Balance of the Controlling Class or the Holder of this Class A-3 Note (or any one or more Predecessor Notes) shall be conclusive and binding on
such Holder and on all future Holders of this Class A-3 Note and of any Class A-3 Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is made upon this Class
A-3 Note. 
  
 The term “Issuer”, as used in this Note,
includes any successor to the Issuer under the Indenture. 
  
 The
Indenture permits the Issuer, under certain circumstances, to consolidate or merge with or into another Person, subject to the rights of the Indenture Trustee and the Holders of Notes under the Indenture. 
  
 The Notes are issuable only in registered form in denominations as provided
in the Indenture, subject to certain limitations therein set forth. 
  
 This Class A-3 Note and the Indenture shall be governed by, and construed in accordance with, the laws of the State of New York, and the obligations, rights and remedies of the parties hereunder and thereunder shall be determined in
accordance with such laws. 
  

 A3-6 

 No reference herein to the Indenture, and no provision of this Note or of the Indenture, shall alter or
impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of and interest on this Class A-3 Note at the times, place and rate, and in the coin or currency, herein prescribed. 
  
 Anything herein to the contrary notwithstanding, except as expressly provided
in the Transaction Documents, none of Wells Fargo Bank, National Association, in its individual capacity, The Bank of New York, in its individual capacity, any holder of a beneficial interest in the Issuer, or any of their respective partners,
beneficiaries, agents, officers, directors, employees or successors or assigns shall be personally liable for, nor shall recourse be had to any of them for, the payment of principal of or interest on this Class A-3 Note or the performance of, or
omission to perform, any of the covenants, obligations or indemnifications contained in the Indenture. The Holder of this Note, by its acceptance hereof, agrees that, except as expressly provided in the Transaction Documents, in the case of an Event
of Default under the Indenture, the Holder shall have no claim against any of the foregoing for any deficiency, loss or claim resulting therefrom; provided, however, that nothing contained herein shall be taken to prevent recourse to, or enforcement
against, the assets of the Issuer for any and all liabilities, obligations and undertakings contained in the Indenture or in this Class A-3 Note. 
  

 A3-7 

 ASSIGNMENT 
  
 SOCIAL SECURITY NUMBER 
 OR OTHER IDENTIFICATION 
 NUMBER OF ASSIGNEE:                      
  
 FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto                                       
                                  
  
                                       
                                        
                                        
                                        
                                        
                                        
                    
  
                                       
                                        
                                        
                                        
                                        
                                        
                    
  
 (name and address of assignee) 
  
 the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints
                                        
            , attorney, to transfer said Note on the Note Register, with full power of substitution in the premises. 
  
 Dated: 
  

			
		
	 	 	*/
		
	 Signature Guaranteed:
	 	 
		
	 	 	*/

  

	*/	NOTICE: The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within Note in every particular, without alteration,
enlargement or any change whatsoever. Such signature must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar. 

  

 A3-8 

 Exhibit A-4 
 Form of Class A-4 Note 
  
 UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
  
 THE PRINCIPAL OF THIS NOTE IS PAYABLE AS SET FORTH IN THE INDENTURE (AS DEFINED BELOW). THE OUTSTANDING PRINCIPAL BALANCE OF
THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF. 
  

			
	 REGISTERED
	 	$101,352,000
		
	 NO. A-4
	 	CUSIP NO. 143128 CH 7

  
 CARMAX AUTO OWNER TRUST
2005-1 
  
 4.35% CLASS A-4 ASSET-BACKED NOTE 
  
 CarMax Auto Owner Trust 2005-1, a statutory trust organized and existing
under the laws of the State of Delaware (herein referred to as the “Issuer”), for value received, hereby promises to pay to Cede & Co., or its registered assigns, the principal sum of ONE HUNDRED ONE MILLION THREE HUNDRED
FIFTY-TWO THOUSAND DOLLARS payable on each Distribution Date in an amount equal to the aggregate amount, if any, payable from the Note Payment Account in respect of principal on the Class A-4 Notes pursuant to Section 2.8 of the Indenture dated as
of April 1, 2005 (as amended, supplemented or otherwise modified and in effect from time to time, the “Indenture”) between the Issuer and Wells Fargo Bank, National Association, a national banking association, as Indenture Trustee
(in such capacity, the “Indenture Trustee”); provided, however, that, except under certain limited circumstances described in the Indenture, principal of this Class A-4 Note will not be due and payable until the Class
A-1 Notes, the Class A-2 Notes and the Class A-3 Notes have been paid in full; and, provided further, that, if not paid prior to such date, the unpaid principal amount of this Class A-4 Note shall be due and payable on the earlier of
the March 2010 Distribution Date (the “Class A-4 Final Distribution Date”) and the Redemption Date, if any, pursuant to Section 10.1 of the Indenture. Capitalized terms used but not defined herein are defined in Article I of the
Indenture, which also contains rules as to construction that shall be applicable hereto. 
  

 A4-1 

 The Issuer shall pay interest on this Class A-4 Note at the rate per annum shown above on each
Distribution Date, until the principal of this Class A-4 Note is paid or made available for payment, on the principal amount of this Class A-4 Note outstanding on the preceding Distribution Date (after giving effect to all payments of principal made
on such preceding Distribution Date), subject to certain limitations contained in Section 3.1 of the Indenture. Interest on this Class A-4 Note shall accrue for each Distribution Date from and including the 15th day of the preceding month (or, in
the case of the initial Distribution Date or if no interest has been paid, from and including the Closing Date) to but excluding the 15th day of the month in which such Distribution Date occurs. Interest shall be computed on the basis of a 360-day
year consisting of twelve 30-day months. Interest on this Class A-4 Note on each Distribution Date shall equal one-twelfth of the product of (i) the rate per annum shown above and (ii) the principal amount of this Class A-4 Note outstanding on the
preceding Distribution Date (after giving effect to all payments of principal made on such preceding Distribution Date); provided, however, that the interest payable on this Class A-4 Note on May 16, 2005 shall equal $391,894.40. The
principal of and interest on this Class A-4 Note shall be paid in the manner specified on the reverse hereof. 
  
 “Distribution Date” means the 15th day of each month or, if such 15th day is not a Business Day, the following Business Day, commencing
on May 16, 2005. 
  
 The principal of and interest on this Class
A-4 Note are payable in such coin or currency of the United States as at the time of payment is legal tender for payment of public and private debts. All payments made by the Issuer with respect to this Class A-4 Note shall be applied first to
interest due and payable on this Class A-4 Note as provided above and then to the unpaid principal of this Class A-4 Note. 
  
 Reference is hereby made to the further provisions of this Class A-4 Note set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if fully set forth on the face of this Class A-4 Note. 
  
 Unless the certificate of authentication hereon has been executed by an authorized officer of the Indenture Trustee, by manual or facsimile signature, this Class A-4 Note shall not entitle the Holder hereof to any
benefit under the Indenture or be valid for any purpose. 
  
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 
  

 A4-2 

 IN WITNESS WHEREOF, the Issuer has caused this Class A-4 Note to be duly executed as of the date set
forth below. 
  
 Dated: April 13, 2005 
  

					
	 CARMAX AUTO OWNER TRUST 2005-1

		
	 By:
	 	 THE BANK OF NEW YORK,
 not in its individual capacity but solely as
 Owner Trustee

		
	 By:
	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  
 TRUSTEE’S
CERTIFICATE OF AUTHENTICATION 
  
 This is one of the Class A-4
Notes designated above and referred to in the within-mentioned Indenture. 
  
 Dated: April 13, 2005 
  

					
	 WELLS FARGO BANK, NATIONAL ASSOCIATION,
 not
in its individual capacity but solely as Indenture Trustee

		
	 By:
	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

 A4-3 

 [REVERSE OF CLASS A-4 NOTE] 
  
 This Class A-4 Note is one of a duly authorized issue of Notes of the Issuer, designated as its 4.35% Class A-4 Asset-Backed
Notes, which, together with the 3.1396% Class A-1 Asset-Backed Notes, the 3.78% Class A-2 Asset-Backed Notes, the 4.13% Class A-3 Asset-Backed Notes, the 4.57% Class B Asset-Backed Notes and the 4.82% Class C Asset-Backed Notes (collectively, the
“Notes”), are issued under the Indenture, to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights and obligations thereunder of the Issuer, the Indenture Trustee
and the Holders of the Notes. The Notes are subject to all terms of the Indenture. 
  
 The Class A-4 Notes are and shall be equally and ratably secured by the collateral pledged as security therefor as provided in the Indenture. The Class A-4 Notes are subordinated to the Class A-1 Notes, the Class A-2
Notes and the Class A-3 Notes to the extent set forth in the Indenture and the Sale and Servicing Agreement. The Class B Notes and the Class C Notes are subordinated to the Class A-4 Notes to the extent set forth in the Indenture and the Sale and
Servicing Agreement. 
  
 As described above, the entire unpaid
principal amount of this Class A-4 Note shall be due and payable on the earlier of the Class A-4 Final Distribution Date and the Redemption Date, if any, pursuant to Section 10.1 of the Indenture. Notwithstanding the foregoing, the entire unpaid
principal amount of the Notes shall be due and payable on the date on which an Event of Default shall have occurred and be continuing if the Indenture Trustee or the Holders of Notes evidencing not less than 51% of the Note Balance of the
Controlling Class have declared the Notes to be immediately due and payable in the manner provided in Section 5.2 of the Indenture. All principal payments on the Class A-4 Notes shall be made pro rata to the Holders entitled thereto if the Notes
have been declared immediately due and payable. 
  
 Payments of
interest on this Class A-4 Note due and payable on any Distribution Date, together with the installment of principal, if any, due and payable on such Distribution Date, to the extent not in full payment of this Class A-4 Note, shall be made by check
mailed to the Person whose name appears as the Holder of this Class A-4 Note (or one or more Predecessor Notes) on the Note Register as of the close of business on the Record Date preceding such Distribution Date, except that with respect to Class
A-4 Notes registered on the Record Date in the name of the nominee of the Clearing Agency (initially, such nominee to be Cede & Co.), payments will be made by wire transfer in immediately available funds to the account designated by such
nominee. Such checks shall be mailed to the Person entitled thereto at the address of such Person as it appears on the Note Register as of such Record Date without requiring that this Class A-4 Note be submitted for notation of payment. Any
reduction in the principal amount of this Class A-4 Note (or any one or more Predecessor Notes) effected by any payments made on any Distribution Date shall be binding upon all future Holders of this Class A-4 Note and of any Class A-4 Note issued
upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not noted hereon. If funds are expected to be available, as provided in the Indenture, for payment in full of the then remaining unpaid principal amount of
this Class A-4 Note on a Distribution Date, then the Indenture Trustee, in the name of and on behalf of the Issuer, shall notify the Person who was the Holder hereof as of the Record Date preceding such Distribution Date by notice mailed or
transmitted by facsimile prior to such 

  

 A4-4 

 
Distribution Date, and the amount then due and payable shall be payable only upon presentation and surrender of this Class A-4 Note at the Indenture
Trustee’s Corporate Trust Office or at the office of the Indenture Trustee’s agent appointed for such purposes located in New York, New York. 
  
 The Issuer shall pay interest on overdue installments of interest at the Class A-4 Rate to the extent lawful. 
  
 As provided in the Indenture, the Notes may be redeemed, in whole but not in
part, in the manner and to the extent described in the Indenture and the Sale and Servicing Agreement. 
  
 As provided in the Indenture, and subject to certain limitations set forth therein, the transfer of this Class A-4 Note may be registered on the Note
Register upon surrender of this Class A-4 Note for registration of transfer at the office or agency designated by the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the
Indenture Trustee duly executed by, the Holder hereof or such Holder’s attorney duly authorized in writing, with such signature guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar, and
thereupon one or more new Class A-4 Notes in any authorized denomination and in the same aggregate principal amount will be issued to the designated transferee or transferees. No service charge will be charged for any registration of transfer or
exchange of this Class A-4 Note, but the transferor may be required to pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any such registration of transfer or exchange. 
  
 Each Noteholder or Note Owner, by its acceptance of a Note or, in the case of
a Note Owner, a beneficial interest in a Note, covenants and agrees that no recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer or the Indenture Trustee on the Notes or under the Indenture or any certificate
or other writing delivered in connection therewith against (i) the Indenture Trustee or the Owner Trustee, each in its individual capacity, (ii) any holder of a beneficial interest in the Issuer or (iii) any partner, owner, beneficiary, agent,
officer, director or employee of the Indenture Trustee or the Owner Trustee, each in its individual capacity, or any holder of a beneficial interest in the Issuer, the Owner Trustee or the Indenture Trustee or any successor or assign of the
Indenture Trustee or the Owner Trustee, each in its individual capacity, except as any such Person may have expressly agreed and except that any such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law, for
any unpaid consideration for stock, unpaid capital contribution for stock, unpaid capital contribution or failure to pay any installment or call owing to such entity. 
  
 Each Noteholder or Note Owner, by its acceptance of a Note or, in the case of a Note Owner, a beneficial interest in a Note,
covenants and agrees that such Noteholder or Note Owner shall not at any time institute against the Depositor or the Issuer, or join in any institution against the Depositor or the Issuer of, any bankruptcy, reorganization, arrangement, insolvency
or liquidation proceedings under any United States federal or state bankruptcy or similar law in connection with any obligations relating to the Notes, the Certificates, the Indenture or any of the other Transaction Documents. 
  

 A4-5 

 The Issuer has entered into the Indenture and this Class A-4 Note is issued with the intention that, for
federal, state and local income, and franchise tax purposes, the Notes will qualify as indebtedness of the Issuer secured by the Trust Estate. Each Noteholder or Note Owner, by its acceptance of a Note or, in the case of a Note Owner, a beneficial
interest in a Note, agrees to treat the Notes for federal, state and local income, single business and franchise tax purposes as indebtedness of the Issuer. 
  
 Prior to the due presentment for registration of transfer of this Class A-4 Note, the Issuer, the Indenture Trustee and any agent of the Issuer or the
Indenture Trustee may treat the Person in whose name this Class A-4 Note (as of the day of determination or as of such other date as may be specified in the Indenture) is registered as the owner hereof for all purposes, whether or not this Class A-4
Note shall be overdue, and none of the Issuer, the Indenture Trustee or any such agent shall be affected by notice to the contrary. 
  
 The Indenture permits the Owner Trustee, on behalf of the Issuer, and the Indenture Trustee, with certain exceptions therein provided, to amend or waive
from time to time certain terms and conditions set forth in the Indenture without the consent of the Holders of the Notes. The Indenture also permits the Owner Trustee, on behalf of the Issuer, and the Indenture Trustee, with certain exceptions as
therein provided, to amend or waive from time to time certain terms and conditions set forth in the Indenture with the consent of the Holders of Notes evidencing not less than 51% of the Note Balance of the Controlling Class. The Indenture also
permits the Holders of Notes evidencing not less than 51% of the Note Balance of the Controlling Class, on behalf of the Holders of all the Notes, to waive compliance by the Issuer with certain provisions of the Indenture and certain past defaults
under the Indenture and their consequences. Any such consent or waiver by the Holders of 51% of the Note Balance of the Controlling Class or the Holder of this Class A-4 Note (or any one or more Predecessor Notes) shall be conclusive and binding on
such Holder and on all future Holders of this Class A-4 Note and of any Class A-4 Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is made upon this Class
A-4 Note. 
  
 The term “Issuer”, as used in this Note,
includes any successor to the Issuer under the Indenture. 
  
 The
Indenture permits the Issuer, under certain circumstances, to consolidate or merge with or into another Person, subject to the rights of the Indenture Trustee and the Holders of Notes under the Indenture. 
  
 The Notes are issuable only in registered form in denominations as provided
in the Indenture, subject to certain limitations therein set forth. 
  
 This Class A-4 Note and the Indenture shall be governed by, and construed in accordance with, the laws of the State of New York, and the obligations, rights and remedies of the parties hereunder and thereunder shall be determined in
accordance with such laws. 
  

 A4-6 

 No reference herein to the Indenture, and no provision of this Note or of the Indenture, shall alter or
impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of and interest on this Class A-4 Note at the times, place and rate, and in the coin or currency, herein prescribed. 
  
 Anything herein to the contrary notwithstanding, except as expressly provided
in the Transaction Documents, none of Wells Fargo Bank, National Association, in its individual capacity, The Bank of New York, in its individual capacity, any holder of a beneficial interest in the Issuer, or any of their respective partners,
beneficiaries, agents, officers, directors, employees or successors or assigns shall be personally liable for, nor shall recourse be had to any of them for, the payment of principal of or interest on this Class A-4 Note or the performance of, or
omission to perform, any of the covenants, obligations or indemnifications contained in the Indenture. The Holder of this Note, by its acceptance hereof, agrees that, except as expressly provided in the Transaction Documents, in the case of an Event
of Default under the Indenture, the Holder shall have no claim against any of the foregoing for any deficiency, loss or claim resulting therefrom; provided, however, that nothing contained herein shall be taken to prevent recourse to, or enforcement
against, the assets of the Issuer for any and all liabilities, obligations and undertakings contained in the Indenture or in this Class A-4 Note. 
  

 A4-7 

 ASSIGNMENT 
  
 SOCIAL SECURITY NUMBER 
 OR OTHER IDENTIFICATION 
 NUMBER OF ASSIGNEE:                      
  
 FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto                                       
                                  
  
                                       
                                        
                                        
                                        
                                        
                                        
                    
  
                                       
                                        
                                        
                                        
                                        
                                        
                    
  
 (name and address of assignee) 
  
 the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints
                            , attorney, to transfer said Note on the Note Register, with full power of
substitution in the premises. 
  
 Dated: 
  

			
		
	 	 	*/
	 Signature Guaranteed:
	 	 
		
	 	 	*/

  

	*/	NOTICE: The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within Note in every particular, without alteration,
enlargement or any change whatsoever. Such signature must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar. 

  

 A4-8 

 Exhibit B 
 Form of Class B Note 
  
 UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
  
 THE PRINCIPAL OF THIS NOTE IS PAYABLE AS SET FORTH IN THE INDENTURE (AS DEFINED BELOW). THE OUTSTANDING PRINCIPAL BALANCE OF
THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF. 
  

			
	 REGISTERED
	  	$20,053,000
		
	 NO. B-1
	  	CUSIP NO. 143128 CJ 3

  
 CARMAX AUTO OWNER TRUST
2005-1 
  
 4.57% CLASS B ASSET-BACKED NOTE 
  
 CarMax Auto Owner Trust 2005-1, a statutory trust organized and existing
under the laws of the State of Delaware (herein referred to as the “Issuer”), for value received, hereby promises to pay to Cede & Co., or its registered assigns, the principal sum of TWENTY MILLION FIFTY-THREE THOUSAND DOLLARS
payable on each Distribution Date in an amount equal to the aggregate amount, if any, payable from the Note Payment Account in respect of principal on the Class B Notes pursuant to Section 2.8 of the Indenture dated as of April 1, 2005 (as amended,
supplemented or otherwise modified and in effect from time to time, the “Indenture”) between the Issuer and Wells Fargo Bank, National Association, a national banking association, as Indenture Trustee (in such capacity, the
“Indenture Trustee”); provided, however, that principal of this Class B Note will not be due and payable until the Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes and the Class A-4 Notes have been paid in
full; and, provided further, that, if not paid prior to such date, the unpaid principal amount of this Class B Note shall be due and payable on the earlier of the May 2010 Distribution Date (the “Class B Final Distribution
Date”) and the Redemption Date, if any, pursuant to Section 10.1 of the Indenture. Capitalized terms used but not defined herein are defined in Article I of the Indenture, which also contains rules as to construction that shall be
applicable hereto. 
  

 B-1 

 The Issuer shall pay interest on this Class B Note at the rate per annum shown above on each Distribution
Date, until the principal of this Class B Note is paid or made available for payment, on the principal amount of this Class B Note outstanding on the preceding Distribution Date (after giving effect to all payments of principal made on such
preceding Distribution Date), subject to certain limitations contained in Section 3.1 of the Indenture. Interest on this Class B Note shall accrue for each Distribution Date from and including the 15th day of the preceding month (or, in the case of
the initial Distribution Date or if no interest has been paid, from and including the Closing Date) to but excluding the 15th day of the month in which such Distribution Date occurs. Interest shall be computed on the basis of a 360-day year
consisting of twelve 30-day months. Interest on this Class B Note on each Distribution Date shall equal one-twelfth of the product of (i) the rate per annum shown above and (ii) the principal amount of this Class B Note outstanding on the preceding
Distribution Date (after giving effect to all payments of principal made on such preceding Distribution Date); provided, however, that the interest payable on this Class B Note on May 16, 2005 shall equal $81,459.74. The principal of
and interest on this Class B Note shall be paid in the manner specified on the reverse hereof. 
  
 “Distribution Date” means the 15th day of each month or, if such 15th day is not a Business Day, the following Business Day, commencing on May 16, 2005. 
  
 The principal of and interest on this Class B Note are payable in such coin
or currency of the United States as at the time of payment is legal tender for payment of public and private debts. All payments made by the Issuer with respect to this Class B Note shall be applied first to interest due and payable on this Class B
Note as provided above and then to the unpaid principal of this Class B Note. 
  
 Reference is hereby made to the further provisions of this Class B Note set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if fully set forth on the face of this
Class B Note. 
  
 Unless the certificate of authentication hereon
has been executed by an authorized officer of the Indenture Trustee, by manual or facsimile signature, this Class B Note shall not entitle the Holder hereof to any benefit under the Indenture or be valid for any purpose. 
  
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 
  

 B-2 

 IN WITNESS WHEREOF, the Issuer has caused this Class B Note to be duly executed as of the date set forth
below. 
  
 Dated: April 13, 2005 
  

			
	 CARMAX AUTO OWNER TRUST 2005-1

		
	 By:
	 	 THE BANK OF NEW YORK,
 not in its individual capacity but
solely as
 Owner Trustee

		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

  
 TRUSTEE’S
CERTIFICATE OF AUTHENTICATION 
  
 This is one of the Class B Notes
designated above and referred to in the within-mentioned Indenture. 
  
 Dated:
April 13, 2005 
  

			
	WELLS FARGO BANK, NATIONAL ASSOCIATION,
	not in its individual capacity but solely as Indenture Trustee
		
	 By:
	 	 
	 	 	 Name:

	 	 	 Title:

  

 B-3 

 [REVERSE OF CLASS B NOTE] 
  
 This Class B Note is one of a duly authorized issue of Notes of the Issuer, designated as its 4.57% Class B Asset-Backed
Notes, which, together with the 3.1396% Class A-1 Asset-Backed Notes, the 3.78% Class A-2 Asset-Backed Notes, the 4.13% Class A-3 Asset-Backed Notes, the 4.35% Class A-4 Asset-Backed Notes and the 4.82% Class C Asset-Backed Notes (collectively, the
“Notes”), are issued under the Indenture, to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights and obligations thereunder of the Issuer, the Indenture Trustee
and the Holders of the Notes. The Notes are subject to all terms of the Indenture. 
  
 The Class B Notes are and shall be equally and ratably secured by the collateral pledged as security therefor as provided in the Indenture. The Class B Notes are subordinated to the Class A-1 Notes, the Class A-2
Notes, the Class A-3 Notes and the Class A-4 Notes to the extent set forth in the Indenture and the Sale and Servicing Agreement. The Class C Notes are subordinated to the Class B Notes to the extent set forth in the Indenture and the Sale and
Servicing Agreement. 
  
 As described above, the entire unpaid
principal amount of this Class B Note shall be due and payable on the earlier of the Class B Final Distribution Date and the Redemption Date, if any, pursuant to Section 10.1 of the Indenture. Notwithstanding the foregoing, the entire unpaid
principal amount of the Notes shall be due and payable on the date on which an Event of Default shall have occurred and be continuing if the Indenture Trustee or the Holders of Notes evidencing not less than 51% of the Note Balance of the
Controlling Class have declared the Notes to be immediately due and payable in the manner provided in Section 5.2 of the Indenture. All principal payments on the Class B Notes shall be made pro rata to the Holders entitled thereto if the Notes have
been declared immediately due and payable. 
  
 Payments of
interest on this Class B Note due and payable on any Distribution Date, together with the installment of principal, if any, due and payable on such Distribution Date, to the extent not in full payment of this Class B Note, shall be made by check
mailed to the Person whose name appears as the Holder of this Class B Note (or one or more Predecessor Notes) on the Note Register as of the close of business on the Record Date preceding such Distribution Date, except that with respect to Class B
Notes registered on the Record Date in the name of the nominee of the Clearing Agency (initially, such nominee to be Cede & Co.), payments will be made by wire transfer in immediately available funds to the account designated by such nominee.
Such checks shall be mailed to the Person entitled thereto at the address of such Person as it appears on the Note Register as of such Record Date without requiring that this Class B Note be submitted for notation of payment. Any reduction in the
principal amount of this Class B Note (or any one or more Predecessor Notes) effected by any payments made on any Distribution Date shall be binding upon all future Holders of this Class B Note and of any Class B Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof, whether or not noted hereon. If funds are expected to be available, as provided in the Indenture, for payment in full of the then remaining unpaid principal amount of this Class B Note on a
Distribution Date, then the Indenture Trustee, in the name of and on behalf of the Issuer, shall notify the Person who was the Holder hereof as of the Record Date preceding such Distribution Date by notice mailed or transmitted by facsimile prior to
such Distribution Date, and the amount 

  

 B-4 

 
then due and payable shall be payable only upon presentation and surrender of this Class B Note at the Indenture Trustee’s Corporate Trust Office or at
the office of the Indenture Trustee’s agent appointed for such purposes located in New York, New York. 
  
 The Issuer shall pay interest on overdue installments of interest at the Class B Rate to the extent lawful. 
  
 As provided in the Indenture, the Notes may be redeemed, in whole but not in
part, in the manner and to the extent described in the Indenture and the Sale and Servicing Agreement. 
  
 As provided in the Indenture, and subject to certain limitations set forth therein, the transfer of this Class B Note may be registered on the Note
Register upon surrender of this Class B Note for registration of transfer at the office or agency designated by the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the
Indenture Trustee duly executed by, the Holder hereof or such Holder’s attorney duly authorized in writing, with such signature guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar, and
thereupon one or more new Class B Notes in any authorized denomination and in the same aggregate principal amount will be issued to the designated transferee or transferees. No service charge will be charged for any registration of transfer or
exchange of this Class B Note, but the transferor may be required to pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any such registration of transfer or exchange. 
  
 Each Noteholder or Note Owner, by its acceptance of a Note or, in the case of
a Note Owner, a beneficial interest in a Note, covenants and agrees that no recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer or the Indenture Trustee on the Notes or under the Indenture or any certificate
or other writing delivered in connection therewith against (i) the Indenture Trustee or the Owner Trustee, each in its individual capacity, (ii) any holder of a beneficial interest in the Issuer or (iii) any partner, owner, beneficiary, agent,
officer, director or employee of the Indenture Trustee or the Owner Trustee, each in its individual capacity, or any holder of a beneficial interest in the Issuer, the Owner Trustee or the Indenture Trustee or any successor or assign of the
Indenture Trustee or the Owner Trustee, each in its individual capacity, except as any such Person may have expressly agreed and except that any such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law, for
any unpaid consideration for stock, unpaid capital contribution for stock, unpaid capital contribution or failure to pay any installment or call owing to such entity. 
  
 Each Noteholder or Note Owner, by its acceptance of a Note or, in the case of a Note Owner, a beneficial interest in a Note,
covenants and agrees that such Noteholder or Note Owner shall not at any time institute against the Depositor or the Issuer, or join in any institution against the Depositor or the Issuer of, any bankruptcy, reorganization, arrangement, insolvency
or liquidation proceedings under any United States federal or state bankruptcy or similar law in connection with any obligations relating to the Notes, the Certificates, the Indenture or any of the other Transaction Documents. 
  

 B-5 

 The Issuer has entered into the Indenture and this Class B Note is issued with the intention that, for
federal, state and local income, and franchise tax purposes, the Notes will qualify as indebtedness of the Issuer secured by the Trust Estate. Each Noteholder or Note Owner, by its acceptance of a Note or, in the case of a Note Owner, a beneficial
interest in a Note, agrees to treat the Notes for federal, state and local income, single business and franchise tax purposes as indebtedness of the Issuer. 
  
 Prior to the due presentment for registration of transfer of this Class B Note, the Issuer, the Indenture Trustee and any agent of the Issuer or the
Indenture Trustee may treat the Person in whose name this Class B Note (as of the day of determination or as of such other date as may be specified in the Indenture) is registered as the owner hereof for all purposes, whether or not this Class B
Note shall be overdue, and none of the Issuer, the Indenture Trustee or any such agent shall be affected by notice to the contrary. 
  
 The Indenture permits the Owner Trustee, on behalf of the Issuer, and the Indenture Trustee, with certain exceptions therein provided, to amend or waive
from time to time certain terms and conditions set forth in the Indenture without the consent of the Holders of the Notes. The Indenture also permits the Owner Trustee, on behalf of the Issuer, and the Indenture Trustee, with certain exceptions as
therein provided, to amend or waive from time to time certain terms and conditions set forth in the Indenture with the consent of the Holders of Notes evidencing not less than 51% of the Note Balance of the Controlling Class. The Indenture also
permits the Holders of Notes evidencing not less than 51% of the Note Balance of the Controlling Class, on behalf of the Holders of all the Notes, to waive compliance by the Issuer with certain provisions of the Indenture and certain past defaults
under the Indenture and their consequences. Any such consent or waiver by the Holders of 51% of the Note Balance of the Controlling Class or the Holder of this Class B Note (or any one or more Predecessor Notes) shall be conclusive and binding on
such Holder and on all future Holders of this Class B Note and of any Class B Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is made upon this Class B
Note. 
  
 The term “Issuer”, as used in this Note,
includes any successor to the Issuer under the Indenture. 
  
 The
Indenture permits the Issuer, under certain circumstances, to consolidate or merge with or into another Person, subject to the rights of the Indenture Trustee and the Holders of Notes under the Indenture. 
  
 The Notes are issuable only in registered form in denominations as provided
in the Indenture, subject to certain limitations therein set forth. 
  
 This Class B Note and the Indenture shall be governed by, and construed in accordance with, the laws of the State of New York, and the obligations, rights and remedies of the parties hereunder and thereunder shall be determined in
accordance with such laws. 
  

 B-6 

 No reference herein to the Indenture, and no provision of this Note or of the Indenture, shall alter or
impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of and interest on this Class B Note at the times, place and rate, and in the coin or currency, herein prescribed. 
  
 Anything herein to the contrary notwithstanding, except as expressly provided
in the Transaction Documents, none of Wells Fargo Bank, National Association, in its individual capacity, The Bank of New York, in its individual capacity, any holder of a beneficial interest in the Issuer, or any of their respective partners,
beneficiaries, agents, officers, directors, employees or successors or assigns shall be personally liable for, nor shall recourse be had to any of them for, the payment of principal of or interest on this Class B Note or the performance of, or
omission to perform, any of the covenants, obligations or indemnifications contained in the Indenture. The Holder of this Note, by its acceptance hereof, agrees that, except as expressly provided in the Transaction Documents, in the case of an Event
of Default under the Indenture, the Holder shall have no claim against any of the foregoing for any deficiency, loss or claim resulting therefrom; provided, however, that nothing contained herein shall be taken to prevent recourse to, or enforcement
against, the assets of the Issuer for any and all liabilities, obligations and undertakings contained in the Indenture or in this Class B Note. 
  

 B-7 

 ASSIGNMENT 
  
 SOCIAL SECURITY NUMBER 
 OR OTHER IDENTIFICATION 
 NUMBER OF ASSIGNEE:                      
  
 FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto                                       
                                  
  
                                       
                                        
                                        
                                        
                                        
                                        
                    
  
                                       
                                        
                                        
                                        
                                        
                                        
                    
  
 (name and address of assignee) 
  
 the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints
                                    , attorney, to transfer
said Note on the Note Register, with full power of substitution in the premises. 
  
 Dated: 
  

			
		
	 	 	*/
	 Signature Guaranteed:
	 	 
		
	 	 	*/

  

	*/	NOTICE: The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within Note in every particular, without alteration,
enlargement or any change whatsoever. Such signature must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar. 

  

 B-8 

 Exhibit C 
 Form of Class C Note 
  
 UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
  
 THE PRINCIPAL OF THIS NOTE IS PAYABLE AS SET FORTH IN THE INDENTURE (AS DEFINED BELOW). THE OUTSTANDING PRINCIPAL BALANCE OF
THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF. 
  

			
	REGISTERED	  	$21,595,000
		
	NO. C-1	  	CUSIP NO. 143128 CK 0

  
 CARMAX AUTO OWNER TRUST
2005-1 
  
 4.82% CLASS C ASSET-BACKED NOTE 
  
 CarMax Auto Owner Trust 2005-1, a statutory trust organized and existing
under the laws of the State of Delaware (herein referred to as the “Issuer”), for value received, hereby promises to pay to Cede & Co., or its registered assigns, the principal sum of TWENTY-ONE MILLION FIVE HUNDRED NINETY-FIVE
THOUSAND DOLLARS payable on each Distribution Date in an amount equal to the aggregate amount, if any, payable from the Note Payment Account in respect of principal on the Class C Notes pursuant to Section 2.8 of the Indenture dated as of April 1,
2005 (as amended, supplemented or otherwise modified and in effect from time to time, the “Indenture”) between the Issuer and Wells Fargo Bank, National Association, a national banking association, as Indenture Trustee (in such
capacity, the “Indenture Trustee”); provided, however, that principal of this Class C Note will not be due and payable until the Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes, the Class A-4 Notes and the
Class B Notes have been paid in full; and, provided further, that, if not paid prior to such date, the unpaid principal amount of this Class C Note shall be due and payable on the earlier of the October 2011 Distribution Date (the
“Class C Final Distribution Date”) and the Redemption Date, if any, pursuant to Section 10.1 of the Indenture. Capitalized terms used but not defined herein are defined in Article I of the Indenture, which also contains rules as to
construction that shall be applicable hereto. 
  

 C-1 

 The Issuer shall pay interest on this Class C Note at the rate per annum shown above on each Distribution
Date, until the principal of this Class C Note is paid or made available for payment, on the principal amount of this Class C Note outstanding on the preceding Distribution Date (after giving effect to all payments of principal made on such
preceding Distribution Date), subject to certain limitations contained in Section 3.1 of the Indenture. Interest on this Class C Note shall accrue for each Distribution Date from and including the 15th day of the preceding month (or, in the case of
the initial Distribution Date or if no interest has been paid, from and including the Closing Date) to but excluding the 15th day of the month in which such Distribution Date occurs. Interest shall be computed on the basis of a 360-day year
consisting of twelve 30-day months. Interest on this Class C Note on each Distribution Date shall equal one-twelfth of the product of (i) the rate per annum shown above and (ii) the principal amount of this Class C Note outstanding on the preceding
Distribution Date (after giving effect to all payments of principal made on such preceding Distribution Date); provided, however, that the interest payable on this Class C Note on May 16, 2005 shall equal $92,522.58. The principal of
and interest on this Class C Note shall be paid in the manner specified on the reverse hereof. 
  
 “Distribution Date” means the 15th day of each month or, if such 15th day is not a Business Day, the following Business Day, commencing on May 16, 2005. 
  
 The principal of and interest on this Class C Note are payable in such coin
or currency of the United States as at the time of payment is legal tender for payment of public and private debts. All payments made by the Issuer with respect to this Class C Note shall be applied first to interest due and payable on this Class C
Note as provided above and then to the unpaid principal of this Class C Note. 
  
 Reference is hereby made to the further provisions of this Class C Note set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if fully set forth on the face of this
Class C Note. 
  
 Unless the certificate of authentication hereon
has been executed by an authorized officer of the Indenture Trustee, by manual or facsimile signature, this Class C Note shall not entitle the Holder hereof to any benefit under the Indenture or be valid for any purpose. 
  
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 
  

 C-2 

 IN WITNESS WHEREOF, the Issuer has caused this Class C Note to be duly executed as of the date set forth
below. 
  
 Dated: April 13, 2005 
  

					
	 CARMAX AUTO OWNER TRUST 2005-1

		
	 By:
	 	 THE BANK OF NEW YORK,
 not in its individual
capacity but solely as Owner Trustee

		
	 By:
	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  
 TRUSTEE’S
CERTIFICATE OF AUTHENTICATION 
  
 This is one of the Class C Notes
designated above and referred to in the within-mentioned Indenture. 
  
 Dated:
April 13, 2005 
  

					
	 WELLS FARGO BANK, NATIONAL ASSOCIATION,
 not
in its individual capacity but solely as Indenture Trustee

		
	 By:
	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

 C-3 

 [REVERSE OF CLASS C NOTE] 
  
 This Class C Note is one of a duly authorized issue of Notes of the Issuer, designated as its 4.82% Class C Asset-Backed
Notes, which, together with the 3.1396% Class A-1 Asset-Backed Notes, the 3.78% Class A-2 Asset-Backed Notes, the 4.13% Class A-3 Asset-Backed Notes, the 4.35% Class A-4 Asset-Backed Notes and the 4.57% Class B Asset-Backed Notes (collectively, the
“Notes”), are issued under the Indenture, to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights and obligations thereunder of the Issuer, the Indenture Trustee
and the Holders of the Notes. The Notes are subject to all terms of the Indenture. 
  
 The Class C Notes are and shall be equally and ratably secured by the collateral pledged as security therefor as provided in the Indenture. The Class C Notes are subordinated to the Class A-1 Notes, the Class A-2
Notes, the Class A-3 Notes, the Class A-4 Notes and the Class B Notes to the extent set forth in the Indenture and the Sale and Servicing Agreement. 
  
 As described above, the entire unpaid principal amount of this Class C Note shall be due and payable on the earlier of the Class C Final Distribution Date
and the Redemption Date, if any, pursuant to Section 10.1 of the Indenture. Notwithstanding the foregoing, the entire unpaid principal amount of the Notes shall be due and payable on the date on which an Event of Default shall have occurred and be
continuing if the Indenture Trustee or the Holders of Notes evidencing not less than 51% of the Note Balance of the Controlling Class have declared the Notes to be immediately due and payable in the manner provided in Section 5.2 of the Indenture.
All principal payments on the Class C Notes shall be made pro rata to the Holders entitled thereto if the Notes have been declared immediately due and payable. 
  

Payments of interest on this Class C Note due and payable on any Distribution Date, together with the installment of principal, if any, due and payable
on such Distribution Date, to the extent not in full payment of this Class C Note, shall be made by check mailed to the Person whose name appears as the Holder of this Class C Note (or one or more Predecessor Notes) on the Note Register as of the
close of business on the Record Date preceding such Distribution Date, except that with respect to Class C Notes registered on the Record Date in the name of the nominee of the Clearing Agency (initially, such nominee to be Cede & Co.), payments
will be made by wire transfer in immediately available funds to the account designated by such nominee. Such checks shall be mailed to the Person entitled thereto at the address of such Person as it appears on the Note Register as of such Record
Date without requiring that this Class C Note be submitted for notation of payment. Any reduction in the principal amount of this Class C Note (or any one or more Predecessor Notes) effected by any payments made on any Distribution Date shall be
binding upon all future Holders of this Class C Note and of any Class C Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not noted hereon. If funds are expected to be available, as provided in
the Indenture, for payment in full of the then remaining unpaid principal amount of this Class C Note on a Distribution Date, then the Indenture Trustee, in the name of and on behalf of the Issuer, shall notify the Person who was the Holder hereof
as of the Record Date preceding such Distribution Date by notice mailed or transmitted by facsimile prior to such Distribution Date, and the amount then due and payable shall be payable only upon presentation and surrender of this Class C Note

  

 C-4 

 
at the Indenture Trustee’s Corporate Trust Office or at the office of the Indenture Trustee’s agent appointed for such purposes located in New
York, New York. 
  
 The Issuer shall pay interest on overdue
installments of interest at the Class C Rate to the extent lawful. 
  
 As provided in the Indenture, the Notes may be redeemed, in whole but not in part, in the manner and to the extent described in the Indenture and the Sale and Servicing Agreement. 
  
 As provided in the Indenture, and subject to certain limitations set forth
therein, the transfer of this Class C Note may be registered on the Note Register upon surrender of this Class C Note for registration of transfer at the office or agency designated by the Issuer pursuant to the Indenture, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Indenture Trustee duly executed by, the Holder hereof or such Holder’s attorney duly authorized in writing, with such signature guaranteed by an “eligible
guarantor institution” meeting the requirements of the Note Registrar, and thereupon one or more new Class C Notes in any authorized denomination and in the same aggregate principal amount will be issued to the designated transferee or
transferees. No service charge will be charged for any registration of transfer or exchange of this Class C Note, but the transferor may be required to pay a sum sufficient to cover any tax or other governmental charge that may be imposed in
connection with any such registration of transfer or exchange. 
  
 Each Noteholder or Note Owner, by its acceptance of a Note or, in the case of a Note Owner, a beneficial interest in a Note, covenants and agrees that no recourse may be taken, directly or indirectly, with respect to the obligations of the
Issuer or the Indenture Trustee on the Notes or under the Indenture or any certificate or other writing delivered in connection therewith against (i) the Indenture Trustee or the Owner Trustee, each in its individual capacity, (ii) any holder of a
beneficial interest in the Issuer or (iii) any partner, owner, beneficiary, agent, officer, director or employee of the Indenture Trustee or the Owner Trustee, each in its individual capacity, or any holder of a beneficial interest in the Issuer,
the Owner Trustee or the Indenture Trustee or any successor or assign of the Indenture Trustee or the Owner Trustee, each in its individual capacity, except as any such Person may have expressly agreed and except that any such partner, owner or
beneficiary shall be fully liable, to the extent provided by applicable law, for any unpaid consideration for stock, unpaid capital contribution for stock, unpaid capital contribution or failure to pay any installment or call owing to such entity.

  
 Each Noteholder or Note Owner, by its acceptance of a Note or,
in the case of a Note Owner, a beneficial interest in a Note, covenants and agrees that such Noteholder or Note Owner shall not at any time institute against the Depositor or the Issuer, or join in any institution against the Depositor or the Issuer
of, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings under any United States federal or state bankruptcy or similar law in connection with any obligations relating to the Notes, the Certificates, the Indenture or
any of the other Transaction Documents. 
  

 C-5 

 The Issuer has entered into the Indenture and this Class C Note is issued with the intention that, for
federal, state and local income, and franchise tax purposes, the Notes will qualify as indebtedness of the Issuer secured by the Trust Estate. Each Noteholder or Note Owner, by its acceptance of a Note or, in the case of a Note Owner, a beneficial
interest in a Note, agrees to treat the Notes for federal, state and local income, single business and franchise tax purposes as indebtedness of the Issuer. 
  
 Prior to the due presentment for registration of transfer of this Class C Note, the Issuer, the Indenture Trustee and any agent of the Issuer or the
Indenture Trustee may treat the Person in whose name this Class C Note (as of the day of determination or as of such other date as may be specified in the Indenture) is registered as the owner hereof for all purposes, whether or not this Class C
Note shall be overdue, and none of the Issuer, the Indenture Trustee or any such agent shall be affected by notice to the contrary. 
  
 The Indenture permits the Owner Trustee, on behalf of the Issuer, and the Indenture Trustee, with certain exceptions therein provided, to amend or waive
from time to time certain terms and conditions set forth in the Indenture without the consent of the Holders of the Notes. The Indenture also permits the Owner Trustee, on behalf of the Issuer, and the Indenture Trustee, with certain exceptions as
therein provided, to amend or waive from time to time certain terms and conditions set forth in the Indenture with the consent of the Holders of Notes evidencing not less than 51% of the Note Balance of the Controlling Class. The Indenture also
permits the Holders of Notes evidencing not less than 51% of the Note Balance of the Controlling Class, on behalf of the Holders of all the Notes, to waive compliance by the Issuer with certain provisions of the Indenture and certain past defaults
under the Indenture and their consequences. Any such consent or waiver by the Holders of 51% of the Note Balance of the Controlling Class or the Holder of this Class C Note (or any one or more Predecessor Notes) shall be conclusive and binding on
such Holder and on all future Holders of this Class C Note and of any Class C Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is made upon this Class C
Note. 
  
 The term “Issuer”, as used in this Note,
includes any successor to the Issuer under the Indenture. 
  
 The
Indenture permits the Issuer, under certain circumstances, to consolidate or merge with or into another Person, subject to the rights of the Indenture Trustee and the Holders of Notes under the Indenture. 
  
 The Notes are issuable only in registered form in denominations as provided
in the Indenture, subject to certain limitations therein set forth. 
  
 This Class C Note and the Indenture shall be governed by, and construed in accordance with, the laws of the State of New York, and the obligations, rights and remedies of the parties hereunder and thereunder shall be determined in
accordance with such laws. 
  

 C-6 

 No reference herein to the Indenture, and no provision of this Note or of the Indenture, shall alter or
impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of and interest on this Class C Note at the times, place and rate, and in the coin or currency, herein prescribed. 
  
 Anything herein to the contrary notwithstanding, except as expressly provided
in the Transaction Documents, none of Wells Fargo Bank, National Association, in its individual capacity, The Bank of New York, in its individual capacity, any holder of a beneficial interest in the Issuer, or any of their respective partners,
beneficiaries, agents, officers, directors, employees or successors or assigns shall be personally liable for, nor shall recourse be had to any of them for, the payment of principal of or interest on this Class C Note or the performance of, or
omission to perform, any of the covenants, obligations or indemnifications contained in the Indenture. The Holder of this Note, by its acceptance hereof, agrees that, except as expressly provided in the Transaction Documents, in the case of an Event
of Default under the Indenture, the Holder shall have no claim against any of the foregoing for any deficiency, loss or claim resulting therefrom; provided, however, that nothing contained herein shall be taken to prevent recourse to, or enforcement
against, the assets of the Issuer for any and all liabilities, obligations and undertakings contained in the Indenture or in this Class C Note. 
  

 C-7 

 ASSIGNMENT 
  
 SOCIAL SECURITY NUMBER 
 OR OTHER IDENTIFICATION 
 NUMBER OF ASSIGNEE:
                         
  
 FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto                                       
                                  
  
                                       
                                        
                                        
                                        
                                        
                                        
                    
  
                                       
                                        
                                        
                                        
                                        
                                        
                    
  
 (name and address of assignee) 
  
 the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints
                                        ,
attorney, to transfer said Note on the Note Register, with full power of substitution in the premises. 
  
 Dated: 
  

			
		
	 	 	*/
	 Signature Guaranteed:
	 	 
		
	 	 	*/

  

	*/	NOTICE: The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within Note in every particular, without alteration,
enlargement or any change whatsoever. Such signature must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar. 

  

 C-8Sale and Servicing Agreement

  
 EXHIBIT
10.1 – SALE AND SERVICING AGREEMENT 
  
 [EXECUTION COPY]

  
 CARMAX AUTO OWNER TRUST 2005-1, 
 as Issuer, 
  
 CARMAX AUTO FUNDING LLC, 
 as Depositor, 
  
 and 
  
 CARMAX BUSINESS SERVICES, LLC, 
 as Servicer 
  

  
 SALE AND SERVICING AGREEMENT 
 Dated as of April 1, 2005 
  

  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 ARTICLE I
 DEFINITIONS

			
	 SECTION 1.1
	  	 Definitions
	  	1
	 SECTION 1.2
	  	 Other Definitional Provisions
	  	17
	
	 ARTICLE II
 TRUST PROPERTY

			
	 SECTION 2.1
	  	 Conveyance of Trust Property
	  	18
	 SECTION 2.2
	  	 Representations and Warranties of the Seller as to the Receivables
	  	19
	 SECTION 2.3
	  	 Representations and Warranties of the Depositor as to the Receivables
	  	20
	 SECTION 2.4
	  	 Repurchase by Depositor upon Breach
	  	24
	 SECTION 2.5
	  	 Custody of Receivable Files
	  	24
	 SECTION 2.6
	  	 Duties of Servicer as Custodian
	  	25
	 SECTION 2.7
	  	 Instructions; Authority to Act
	  	26
	 SECTION 2.8
	  	 Indemnification of the Custodian
	  	26
	 SECTION 2.9
	  	 Effective Period and Termination
	  	26
	
	 ARTICLE III
 ADMINISTRATION AND SERVICING OF RECEIVABLES AND OTHER
 TRUST PROPERTY

			
	 SECTION 3.1
	  	 Duties of Servicer
	  	28
	 SECTION 3.2
	  	 Collection and Allocation of Receivable Payments
	  	28
	 SECTION 3.3
	  	 Realization upon Receivables
	  	29
	 SECTION 3.4
	  	 Physical Damage Insurance
	  	29
	 SECTION 3.5
	  	 Maintenance of Security Interests in Financed Vehicles
	  	29
	 SECTION 3.6
	  	 Amendment of Receivable Terms
	  	30
	 SECTION 3.7
	  	 Purchase by Servicer upon Breach
	  	30
	 SECTION 3.8
	  	 Servicing Compensation
	  	30
	 SECTION 3.9
	  	 Servicer’s Certificate
	  	30
	 SECTION 3.10
	  	 Annual Statement as to Compliance; Notice of Event of Servicing Termination
	  	31
	 SECTION 3.11
	  	 Annual Independent Certified Public Accountants’ Reports
	  	32
	 SECTION 3.12
	  	 Access to Certain Documentation and Information Regarding Receivables
	  	32
	 SECTION 3.13
	  	 Reports to the Commission
	  	33
	 SECTION 3.14
	  	 Reports to Rating Agencies
	  	33

  

 i 

					
	
	 ARTICLE IV
 DISTRIBUTIONS; RESERVE ACCOUNT; STATEMENTS TO NOTEHOLDERS
 AND CERTIFICATEHOLDERS

			
	 SECTION 4.1
	  	 Accounts
	  	33
	 SECTION 4.2
	  	 Collections
	  	34
	 SECTION 4.3
	  	 Application of Collections
	  	35
	 SECTION 4.4
	  	 Simple Interest Advances and Unreimbursed Servicer Advances
	  	35
	 SECTION 4.5
	  	 Additional Deposits
	  	36
	 SECTION 4.6
	  	 Determination Date Calculations; Application of Available Funds; Application of Secondary Reserve Account Draw Amount
	  	36
	 SECTION 4.7
	  	 Reserve Account
	  	39
	 SECTION 4.8
	  	 Net Deposits
	  	40
	 SECTION 4.9
	  	 Statements to Noteholders and Certificateholders
	  	40
	 SECTION 4.10
	  	 Control of Securities Accounts
	  	42
	 SECTION 4.11
	  	 Secondary Reserve Account
	  	42
	
	 ARTICLE V
 [RESERVED]

	
	 ARTICLE VI
 THE DEPOSITOR

			
	 SECTION 6.1
	  	 Representations and Warranties of Depositor
	  	44
	 SECTION 6.2
	  	 Liability of Depositor; Indemnities
	  	45
	 SECTION 6.3
	  	 Merger or Consolidation of, or Assumption of the Obligations of, Depositor
	  	47
	 SECTION 6.4
	  	 Limitation on Liability of Depositor and Others
	  	47
	 SECTION 6.5
	  	 Depositor May Own Notes or Certificates
	  	47
	 SECTION 6.6
	  	 [RESERVED]
	  	48
	 SECTION 6.7
	  	 Certain Limitations
	  	48
	
	 ARTICLE VII
 THE SERVICER

			
	 SECTION 7.1
	  	 Representations and Warranties of Servicer
	  	50
	 SECTION 7.2
	  	 Liability of Servicer; Indemnities
	  	51
	 SECTION 7.3
	  	 Merger or Consolidation of, or Assumption of the Obligations of, Servicer
	  	52
	 SECTION 7.4
	  	 Limitation on Liability of Servicer and Others
	  	53
	 SECTION 7.5
	  	 Delegation of Duties
	  	53
	 SECTION 7.6
	  	 Servicer Not to Resign
	  	53
	 SECTION 7.7
	  	 Servicer May Own Notes or Certificates
	  	54

  

 ii 

					
	
	 ARTICLE VIII
 SERVICING TERMINATION

			
	 SECTION 8.1
	  	 Events of Servicing Termination
	  	54
	 SECTION 8.2
	  	 Indenture Trustee to Act; Appointment of Successor Servicer
	  	56
	 SECTION 8.3
	  	 Effect of Servicing Transfer
	  	57
	 SECTION 8.4
	  	 Notification to Noteholders, Certificateholders and Rating Agencies
	  	57
	 SECTION 8.5
	  	 Waiver of Past Events of Servicing Termination
	  	57
	 SECTION 8.6
	  	 Repayment of Advances
	  	58
	
	 ARTICLE IX
 TERMINATION

			
	 SECTION 9.1
	  	 Optional Purchase of All Receivables
	  	58
	
	 ARTICLE X
 MISCELLANEOUS PROVISIONS

			
	 SECTION 10.1
	  	 Amendment
	  	59
	 SECTION 10.2
	  	 Protection of Title to Trust
	  	60
	 SECTION 10.3
	  	 GOVERNING LAW
	  	62
	 SECTION 10.4
	  	 Notices
	  	63
	 SECTION 10.5
	  	 Severability of Provisions
	  	63
	 SECTION 10.6
	  	 Assignment
	  	63
	 SECTION 10.7
	  	 Further Assurances
	  	63
	 SECTION 10.8
	  	 No Waiver; Cumulative Remedies
	  	63
	 SECTION 10.9
	  	 Third-Party Beneficiaries
	  	64
	 SECTION 10.10
	  	 Actions by Noteholder or Certificateholders
	  	64
	 SECTION 10.11
	  	 Counterparts
	  	64
	 SECTION 10.12
	  	 No Bankruptcy Petition
	  	64
	 SECTION 10.13
	  	 Limitation of Liability of Owner Trustee and Indenture Trustee
	  	64
	
	SCHEDULES
			
	 SCHEDULE 1
	  	 Receivable Schedule
	  	 
	 SCHEDULE 2
	  	 Location of Receivable Files
	  	 
	
	EXHIBITS
			
	 EXHIBIT A
	  	 Form of Servicer’s Certificate
	  	 
	 EXHIBIT B
	  	 Form of Statement to Noteholders
	  	 
	 EXHIBIT C
	  	 Form of Statement to Certificateholders
	  	 

  

 iii 

 SALE AND SERVICING AGREEMENT, dated as of April 1, 2005 (as amended, supplemented or otherwise modified
and in effect from time to time, this “Agreement”), among CARMAX AUTO OWNER TRUST 2005-1, a Delaware statutory trust (the “Trust”), CARMAX AUTO FUNDING LLC, a Delaware limited liability company (the
“Depositor”), and CARMAX BUSINESS SERVICES, LLC, a Delaware limited liability company (“CarMax”), as servicer (in such capacity, the “Servicer”). 
  
 WHEREAS, the Trust desires to purchase certain motor vehicle retail
installment sale contracts originated or acquired by CarMax in the ordinary course of business and sold to the Depositor as of the date hereof; 
  
 WHEREAS, the Depositor is willing to sell such contracts to the Trust as of the date hereof; and 
  
 WHEREAS, the Servicer is willing to service such contracts on behalf of the
Trust; 
  
 NOW, THEREFORE, in consideration of the mutual
covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
  
 ARTICLE I 
 DEFINITIONS 
  
 SECTION 1.1 Definitions. Whenever
used in this Agreement, the following words and phrases, unless the context otherwise requires, whenever capitalized shall have the following meanings: 
  
 “Additional Note Interest” shall mean, for any Distribution Date and any Class of Notes, the sum of (i) all accrued but unpaid Monthly
Note Interest for previous Distribution Dates for such Class plus (ii) to the extent permitted by law, interest on such accrued but unpaid Monthly Note Interest at the Note Rate applicable to such Class. 
  
 “Additional Servicing Fee” shall mean, for any Collection
Period, if a successor Servicer has been appointed pursuant to Section 8.2, the amount, if any, by which (i) the compensation payable to such successor Servicer for such Collection Period exceeds (ii) the Monthly Servicing Fee for such Collection
Period. 
  
 “Affiliate” shall mean, with respect
to any Person, any other Person directly or indirectly controlling, controlled by or under direct or indirect common control with such Person. For purposes of this definition, “control” when used with respect to any Person shall
mean the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise. 
  
 “Amount Financed” shall mean, with respect to any Receivable, the aggregate amount advanced under such
Receivable toward the purchase price of the related Financed 

  

 
Vehicle and any related costs, including accessories, extended warranty contracts, insurance premiums and other items customarily financed as part of a motor
vehicle retail installment sale contract. 
  
 “Applicable
Tax State” shall mean, as of any date, (i) any State in which the Owner Trustee maintains the Corporate Trust Office, (ii) any State in which the Owner Trustee maintains its principal executive offices and (iii) any State in which the
Servicer regularly conducts servicing and collection activities (other than purely ministerial activities) with respect to a material portion of the Receivables. 
  
 “APR” shall mean, with respect to any Receivable, the annual percentage rate of interest stated in such
Receivable. 
  
 “Authorized Officer” shall mean,
as applicable, (i) any officer within the Corporate Trust Office of the Indenture Trustee, including any vice president, assistant vice president, secretary or assistant secretary, or any financial services officer of the Indenture Trustee
customarily performing functions similar to those performed by any of the above designated officers and also, with respect to a particular matter, any other officer of the Indenture Trustee to whom such matter is referred because of such
officer’s knowledge of and familiarity with the particular subject or (ii) any officer within the Corporate Trust Office of the Owner Trustee, including any senior vice president, vice president, assistant vice president, assistant secretary,
assistant treasurer or trust officer of the Owner Trustee customarily performing functions similar to those performed by any of the above designated officers and also, with respect to a particular matter, any other officer of the Owner Trustee to
whom such matter is referred because of such officer’s knowledge of and familiarity with the particular subject. 
  
 “Available Collections” shall mean, for any Distribution Date, (i) all Obligor payments received with respect to the Receivables during
the preceding Collection Period, (ii) all Liquidation Proceeds received with respect to the Receivables during the preceding Collection Period, (iii) all interest earned on funds on deposit in the Collection Account during the preceding Collection
Period, (iv) the aggregate Purchase Amount deposited in the Collection Account on the Business Day preceding such Distribution Date, (v) all prepayments received with respect to the Receivables during the preceding Collection Period attributable to
any refunded item included in the Amount Financed (including amounts received as a result of rebates of extended warranty contract costs and insurance premiums and proceeds received under physical damage, theft, credit life and credit disability
insurance policies) and (vi) all Simple Interest Advances deposited into the Collection Account by the Servicer on the Business Day preceding such Distribution Date; provided, however, that Available Collections for any Distribution
Date shall not include any payments or other amounts (including Liquidation Proceeds) received with respect to any Purchased Receivable the Purchase Amount for which was included in Available Collections for a previous Distribution Date;
provided further, that Available Collections for any Distribution Date shall not include any payments or other amounts (including Liquidation Proceeds) received with respect to any Receivable to the extent that the Servicer has made an
unreimbursed Simple Interest Advance with respect to such Receivable and is entitled to reimbursement from such payments or other amounts pursuant to Section 4.4; and, provided further, that Available Collections for any Distribution
Date shall not include any payments or other amounts (including Liquidation Proceeds) received with respect to the 

  

 2 

 
Receivables that are retained by the Servicer as reimbursement for Unreimbursed Servicer Advances pursuant to Section 4.4. 
  
 “Available Funds” shall mean, for any Distribution Date, the
sum of (i) the Available Collections for such Distribution Date plus (ii) the Reserve Account Draw Amount, if any, for such Distribution Date (to the extent deposited in the Collection Account). 
  
 “Business Day” shall mean any day other than a Saturday, a
Sunday or a day on which banking institutions or trust companies in New York, New York, Wilmington, Delaware, Minneapolis, Minnesota or Richmond, Virginia are authorized or obligated by law, executive order or governmental decree to remain closed.

  
 “CarMax” shall mean CarMax Business Services,
LLC, a Delaware limited liability company, and its successors and assigns. 
  
 “CarMax Auto” shall mean CarMax Auto Superstores, Inc., a Virginia corporation, and its successors and assigns. 
  

“CarMax, Inc.” shall mean CarMax, Inc., a Virginia corporation, and its successors and assigns. 
  
 “CarMax Fiscal Year” shall mean the period commencing on
March 1 of any year and ending on February 28 (or February 29, if applicable) of the following year. 
  
 “CarMax Funding” shall mean CarMax Auto Funding LLC, a Delaware limited liability company, and its successors and assigns. 
  
 “Certificate” shall have the meaning specified in the Trust
Agreement. 
  
 “Certificate Payment Account”
shall mean the account established and maintained as such pursuant to Section 4.1(c). 
  
 “Certificate Percentage Interest” shall mean, with respect to a Certificate, the percentage specified on such Certificate as the Certificate Percentage Interest, which percentage represents the
beneficial interest of such Certificate in the Trust. The initial Certificate Percentage Interest held by the Depositor shall be 100%. 
  
 “Certificateholder” shall have the meaning specified in the Trust Agreement. 
  
 “Class” shall mean a class of Notes, which may be the Class
A-1 Notes, the Class A-2 Notes, the Class A-3 Notes, the Class A-4 Notes, the Class B Notes or the Class C Notes. 
  
 “Class A Notes” shall mean the Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes and the Class A-4 Notes. 
  
 “Class A-1 Final Distribution Date” shall mean the April
2006 Distribution Date. 
  

 3 

 “Class A-1 Monthly Interest” shall mean (i) for the initial Distribution Date,
$296,430.57, and (ii) for any Distribution Date thereafter, the product of (A) the actual number of days elapsed during the period from and including the preceding Distribution Date to but excluding such Distribution Date divided by 360, (B) the
Class A-1 Rate and (C) the outstanding principal balance of the Class A-1 Notes as of the preceding Distribution Date (after giving effect to all payments of principal made to the Holders of the Class A-1 Notes on or before such preceding
Distribution Date). 
  
 “Class A-1 Notes” shall
mean the 3.1396% Class A-1 Asset-Backed Notes issued by the Trust pursuant to the Indenture in the initial aggregate principal amount of $103,000,000. 
  
 “Class A-1 Rate” shall mean 3.1396% per annum. 
  

“Class A-2 Final Distribution Date” shall mean the February 2008 Distribution Date. 
  
 “Class A-2 Monthly Interest” shall mean (i) for the initial
Distribution Date, $685,440.00, and (ii) for any Distribution Date thereafter, one-twelfth of the product of (A) the Class A-2 Rate and (B) the outstanding principal balance of the Class A-2 Notes as of the preceding Distribution Date (after giving
effect to all payments of principal made to the Holders of the Class A-2 Notes on or before such preceding Distribution Date). 
  
 “Class A-2 Notes” shall mean the 3.78% Class A-2 Asset-Backed Notes issued by the Trust pursuant to the Indenture in the initial
aggregate principal amount of $204,000,000. 
  
 “Class A-2
Rate” shall mean 3.78% per annum. 
  
 “Class A-3
Final Distribution Date” shall mean the May 2009 Distribution Date. 
  
 “Class A-3 Monthly Interest” shall mean (i) for the initial Distribution Date, $613,075.56, and (ii) for any Distribution Date thereafter, one-twelfth of the product of (A) the Class A-3 Rate and (B)
the outstanding principal balance of the Class A-3 Notes as of the preceding Distribution Date (after giving effect to all payments of principal made to the Holders of the Class A-3 Notes on or before such preceding Distribution Date). 

 
 “Class A-3 Notes” shall mean the 4.13% Class A-3
Asset-Backed Notes issued by the Trust pursuant to the Indenture in the initial aggregate principal amount of $167,000,000. 
  
 “Class A-3 Rate” shall mean 4.13% per annum. 
  
 “Class A-4 Final Distribution Date” shall mean the March 2010 Distribution Date. 
  
 “Class A-4 Monthly Interest” shall mean (i) for the initial
Distribution Date, $391,894.40, and (ii) for any Distribution Date thereafter, one-twelfth of the product of (A) the Class A-4 Rate and (B) the outstanding principal balance of the Class A-4 Notes as of the preceding Distribution Date (after giving
effect to all payments of principal made to the Holders of the Class A-4 Notes on or before such preceding Distribution Date). 
  

 4 

 “Class A-4 Notes” shall mean the 4.35% Class A-4 Asset-Backed Notes issued by the Trust
pursuant to the Indenture in the initial aggregate principal amount of $101,352,000. 
  
 “Class A-4 Rate” shall mean 4.35% per annum. 
  
 “Class B Final Distribution Date” shall mean the May 2010 Distribution Date. 
  
 “Class B Monthly Interest” shall mean (i) for the initial Distribution Date, $81,459.74, and (ii) for any Distribution Date thereafter,
one-twelfth of the product of (A) the Class B Rate and (B) the outstanding principal balance of the Class B Notes as of the preceding Distribution Date (after giving effect to all payments of principal made to the Holders of the Class B Notes on or
before such preceding Distribution Date). 
  
 “Class B
Notes” shall mean the 4.57% Class B Asset-Backed Notes issued by the Trust pursuant to the Indenture in the initial aggregate principal amount of $20,053,000. 
  
 “Class B Rate” shall mean 4.57% per annum. 
  
 “Class C Final Distribution Date” shall mean the October 2011 Distribution Date. 
  
 “Class C Monthly Interest” shall mean (i) for the initial
Distribution Date, $92,522.58, and (ii) for any Distribution Date thereafter, one-twelfth of the product of (A) the Class C Rate and (B) the outstanding principal balance of the Class C Notes as of the preceding Distribution Date (after giving
effect to all payments of principal made to the Holders of the Class C Notes on or before such preceding Distribution Date). 
  
 “Class C Notes” shall mean the 4.82% Class C Asset-Backed Notes issued by the Trust pursuant to the Indenture in the initial aggregate
principal amount of $21,595,000. 
  
 “Class C
Rate” shall mean 4.82% per annum. 
  
 “Class
Final Distribution Date” shall mean, as applicable, the Class A-1 Final Distribution Date, the Class A-2 Final Distribution Date, the Class A-3 Final Distribution Date, the Class A-4 Final Distribution Date, the Class B Final Distribution
Date or the Class C Final Distribution Date. 
  
 “Closing
Date” shall mean April 13, 2005. 
  
 “Collection
Account” shall mean the account established and maintained as such pursuant to Section 4.1(a). 
  
 “Collection Period” shall mean each calendar month during the term of this Agreement or, in the case of the initial Collection Period,
the period from but excluding the Cutoff Date to and including April 30, 2005. 
  
 “Commission” shall mean the Securities and Exchange Commission, and its successors. 
  

 5 

 “Computer Tape” shall mean any computer tape or compact disk generated by the Seller
which provides information relating to the Receivables and which was used by the Seller in selecting the Receivables sold to the Depositor under the Receivables Purchase Agreement on the Closing Date. 
  
 “Consolidated Tangible Net Worth” shall mean, as of any
date, all amounts which, in conformity with generally accepted accounting principles, would be included under stockholder’s equity on the consolidated balance sheet of CarMax, Inc. as of such date; provided, however, that, in any
event, such amounts shall be net of (i) amounts carried on the consolidated financial statements of CarMax, Inc. for any write-up in the book value of any assets of CarMax, Inc. resulting from the revaluation thereof subsequent to February 29, 2004,
(ii) treasury stock, (iii) intangible assets and (iv) indebtedness owing from officers, employees, shareholders or affiliates of CarMax, Inc. (but only if the aggregate amount of such indebtedness exceeds $1,000,000). 
  
 “Controlling Class” shall mean (i) the Class A Notes so long
as any Class A Notes are Outstanding, (ii) thereafter the Class B Notes so long as any Class B Notes are Outstanding and (iii) thereafter the Class C Notes as long as any Class C Notes are Outstanding. 
  
 “Corporate Trust Office” shall mean, as applicable, (i) the
principal office of the Indenture Trustee at which at any particular time its corporate trust business shall be administered, which office at the date of the execution of this Agreement is located at Wells Fargo Center, MAC N9311-161, Sixth and
Marquette, Minneapolis, Minnesota, 55479 Attention: Asset Backed Securities Department, or at such other address as the Indenture Trustee may designate from time to time by notice to the Noteholders, the Owner Trustee, the Depositor, the Seller and
the Servicer, or the principal corporate trust office of any successor Indenture Trustee at the address designated by such successor Indenture Trustee by notice to the Noteholders, the Owner Trustee, the Depositor, the Seller and the Servicer or
(ii) the principal office of the Owner Trustee at which at any particular time its corporate trust business shall be administered, which office at the date of the execution of this Agreement is located at 101 Barclay Street, 8W, New York, New York,
10286, Attention: Corporate Trust Division, Asset Backed Securities Group, or at such other address as the Owner Trustee may designate from time to time by notice to the Certificateholders, the Indenture Trustee, the Depositor, the Seller and the
Servicer, or the principal corporate trust office of any successor Owner Trustee at the address designated by such successor Owner Trustee by notice to the Certificateholders, the Indenture Trustee, the Depositor, the Seller and the Servicer.

  
 “Cutoff Date” shall mean March 31, 2005.

  
 “Defaulted Receivable” shall mean a
Receivable as to which (i) any payment, or any part of any payment, due under such Receivable has become 120 days or more delinquent (whether or not the Servicer has repossessed the related Financed Vehicle), (ii) the Servicer has repossessed and
sold the related Financed Vehicle or (iii) the Servicer has determined in accordance with its customary practices that such Receivable is uncollectible; provided, however, that a Receivable shall not be classified as a Defaulted
Receivable until the last day of the Collection Period during which one of the foregoing events first occurs; and, provided further, that a Purchased Receivable shall not be deemed to be a Defaulted Receivable. 
  

 6 

 “Delaware Trustee” shall mean The Bank of New York (Delaware), a Delaware banking
corporation, not in its individual capacity but solely as Delaware Trustee under the Trust Agreement, and any successor Delaware Trustee under the Trust Agreement. 
  
 “Depositor” shall mean CarMax Funding. 
  
 “Determination Date” shall mean the sixth day preceding each Distribution Date or, if such sixth day is not
a Business Day, the following Business Day, commencing on May 10, 2005. 
  
 “Distribution Date” shall mean the 15th day of each month or, if such 15th day is not a Business Day, the following Business Day, commencing on May 16, 2005. 
  
 “Eligible Institution” shall mean (i) the corporate trust department of the Indenture Trustee or the Owner
Trustee or (ii) any other depository institution organized under the laws of the United States or any State or incorporated under the laws of a foreign jurisdiction with a branch or agency located in the United States or any State qualified to take
deposits and subject to supervision and examination by federal or state banking authorities which at all times has either a long-term unsecured debt rating of at least Baa3 from Moody’s or a long-term unsecured debt rating, a short-term
unsecured debt rating or a certificate of deposit rating acceptable to Moody’s and whose deposits are insured by the Federal Deposit Insurance Corporation; provided, however, that (A) the commercial paper, short-term debt
obligations or other short-term deposits of the depository institution described in clause (ii) above must be rated at least Prime-1 by Moody’s and at least A-1+ by Standard & Poor’s if deposits are to be held in an account maintained
with such depository institution pursuant to this Agreement for fewer than 30 days and (B) the long-term unsecured debt obligations of the depository institution described in clause (ii) above must be rated at least AA- by Standard & Poor’s
if deposits are to be held in an account maintained with such depository institution pursuant to this Agreement for more than 30 days. 
  
 “Eligible Servicer” shall mean a Person which, at the time of its appointment as Servicer, (i) has a net worth of not less than
$50,000,000, (ii) is servicing a portfolio of motor vehicle retail installment sale contracts and/or motor vehicle loans, (iii) is legally qualified, and has the capacity, to service the Receivables, (iv) has demonstrated the ability to service a
portfolio of motor vehicle retail installment sale contracts and/or motor vehicle loans similar to the Receivables professionally and competently in accordance with standards of skill and care that are consistent with prudent industry standards and
(v) is qualified and entitled to use pursuant to a license or other written agreement, and agrees to maintain the confidentiality of, the software which the Servicer uses in connection with performing its duties and responsibilities under this
Agreement or obtains rights to use, or develops at its own expense, software which is adequate to perform its duties and responsibilities under this Agreement. 
  

“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended. 
  
 “Event of Servicing Termination” shall mean an event
specified in Section 8.1. 
  

 7 

 “Excess Collections” shall have the meaning specified in Section 2.8(a)(xiii) of the
Indenture. 
  
 “Final Scheduled Maturity
Date” shall mean the October 2011 Distribution Date. 
  
 “Financed Vehicle” shall mean a new or used motor vehicle, together with all accessions thereto, securing an Obligor’s indebtedness under a Receivable. 
  
 “Fiscal Quarter” shall mean a fiscal quarter of a CarMax Fiscal Year. 
  
 “Holder” shall mean a Noteholder or a Certificateholder, as
the case may be. 
  
 “Indenture” shall mean the
Indenture, dated as of April 1, 2005, between the Trust and the Indenture Trustee, as amended, supplemented or otherwise modified and in effect from time to time. 
  
 “Indenture Trustee” shall mean Wells Fargo Bank, National Association, a national banking association, not
in its individual capacity but solely as Indenture Trustee under the Indenture, and any successor Indenture Trustee under the Indenture. 
  
 “Initial Note Balance” shall mean, as the context may require, (i) with respect to all of the Notes, $617,000,000, or (ii) with respect
to any Note, an amount equal to the initial denomination of such Note. 
  
 “Initial Reserve Account Deposit” shall mean $3,085,000. 
  
 “Insolvency Event” shall mean, with respect to any Person, (i) the making by such Person of a general assignment for the benefit of creditors, (ii) the filing by such Person of a voluntary petition in
bankruptcy, (iii) such Person being adjudged bankrupt or insolvent, or having had entered against such Person an order for relief in any bankruptcy or insolvency proceeding, (iv) the filing by such Person of a petition or answer seeking
reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any statute, law or regulation, (v) the filing by such Person of an answer or other pleading admitting or failing to contest the material
allegations of a petition filed against such Person in any proceeding specified in clause (vii) below, (vi) seeking, consenting to or acquiescing in the appointment of a trustee, receiver or liquidator of such Person or of all or any substantial
part of the assets of such Person or (vii) the failure to obtain dismissal within 60 days of the commencement of any proceeding against such Person seeking reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar
relief under any statute, law or regulation, or the entry of any order appointing a trustee, liquidator or receiver of such Person of all or any substantial portion of the assets of such Person. 
  
 “Lien” shall mean a security interest, lien, charge, pledge,
equity or encumbrance of any kind, other than tax liens, mechanics’ or materialmen’s liens, judicial liens and any liens that may attach to a Financed Vehicle by operation of law. 
  
 “Liquidation Proceeds” shall mean all amounts received by
the Servicer with respect to any Defaulted Receivable, net of the sum of (i) any expenses incurred by the Servicer 

  

 8 

 
in connection with collection of such Receivable and the disposition of the related Financed Vehicle (to the extent determinable by the Servicer and not
previously reimbursed) plus (ii) any amounts required by law to be remitted to the related Obligor. 
  
 “Monthly Note Interest” shall mean, for any Distribution Date, the sum of the Class A-1 Monthly Interest, the Class A-2 Monthly Interest,
the Class A-3 Monthly Interest, the Class A-4 Monthly Interest, the Class B Monthly Interest and the Class C Monthly Interest, in each case for such Distribution Date. 
  
 “Monthly P&I” shall mean, with respect to any Receivable, the amount of each monthly installment of
principal and interest payable with respect to such Receivable in accordance with the terms thereof, exclusive of any charges allocable to the financing of any insurance premium and charges which represent late payment charges or extension fees.

  
 “Monthly Remittance Condition” shall have the
meaning specified in Section 4.2. 
  
 “Monthly Servicing
Fee” shall mean, for any Collection Period, the fee payable to the Servicer on the following Distribution Date for services rendered during such Collection Period as determined pursuant to Section 3.8. 
  
 “Moody’s” shall mean Moody’s Investors Service,
Inc., and its successors. 
  
 “Net Losses” shall
mean, with respect to any Collection Period, the excess, if any, of (i) the aggregate Principal Balance of all Receivables that became Defaulted Receivables during such Collection Period over (ii) the aggregate Liquidation Proceeds received by the
Servicer during such Collection Period. 
  
 “Note
Balance” shall mean, at any time, as the context may require, (i) with respect to all of the Notes, an amount equal to, initially, the Initial Note Balance and, thereafter, an amount equal to the Initial Note Balance as reduced from time to
time by all amounts allocable to principal previously distributed to the Noteholders or (ii) with respect to any Note, an amount equal to, initially, the initial denomination of such Note and, thereafter, an amount equal to such initial denomination
as reduced from time to time by all amounts allocable to principal previously distributed in respect of such Note; provided, however, that in determining whether the Holders of Notes evidencing the requisite percentage of the Note
Balance have given any request, demand, authorization, direction, notice, consent or waiver hereunder or under any other Transaction Document, Notes owned by the Trust, any other obligor upon the Notes, the Depositor, the Seller, the Servicer or any
Affiliate of any of the foregoing Persons shall be disregarded and deemed to be excluded from the Note Balance (unless such Persons own 100% of the Note Balance), except that, in determining whether the Indenture Trustee or the Owner Trustee shall
be protected in relying on any such request, demand, authorization, direction, notice, consent or waiver, only Notes that a Responsible Officer of the Indenture Trustee or the Owner Trustee, as applicable, knows to be so owned shall be so
disregarded; and, provided further, that Notes that have been pledged in good faith may be regarded as included in the Note Balance if the pledgee establishes to the satisfaction of the Indenture Trustee or the Owner Trustee, as
applicable, the pledgee’s right so to act with respect to such Notes and that the 

  

 9 

 
pledgee is not the Trust, any other obligor upon the Notes, the Depositor, the Seller, the Servicer or any Affiliate of any of the foregoing Persons.

  
 “Note Payment Account” shall mean the account
established and maintained as such pursuant to Section 4.1(b). 
  
 “Note Pool Factor” shall mean, with respect to any Class of Notes as of any Distribution Date, a seven-digit decimal figure equal to the outstanding principal balance of such Class as of such Distribution Date (after giving
effect to any reductions of such outstanding principal balance to be made on such Distribution Date) divided by the original outstanding principal balance of such Class. 
  
 “Note Rate” shall mean, in the case of the Class A-1 Notes, the Class A-1 Rate, in the case of the Class
A-2 Notes, the Class A-2 Rate, in the case of the Class A-3 Notes, the Class A-3 Rate, in the case of the Class A-4 Notes, the Class A-4 Rate, in the case of the Class B Notes, the Class B Rate and in the case of the Class C Notes, the Class C Rate.

  
 “Noteholder” shall mean a Person in whose
name a Note is registered on the Note Register. 
  
 “Obligor” shall mean the purchaser or co-purchasers of a Financed Vehicle purchased in whole or in part by the execution and delivery of a Receivable or any other Person who owes or may be liable for payments under a
Receivable. 
  
 “Officer’s Certificate”
shall mean a certificate signed by the chairman, the president, any executive vice president, any senior vice president, any vice president or the treasurer of the Depositor or the Servicer, as the case may be, and delivered to the Owner Trustee and
the Indenture Trustee. 
  
 “Opinion of Counsel”
shall mean one or more written opinions of counsel who may, except as otherwise expressly provided in this Agreement, be an employee of, or outside counsel to, the Depositor or the Servicer and who shall be acceptable to the Indenture Trustee, the
Owner Trustee or the Rating Agencies, as applicable. 
  
 “Overcollateralization Target Amount” shall mean, for any Distribution Date, 1.50% of the Pool Balance as of the last day of the preceding Collection Period; provided, however, that such amount shall not be
less than $3,085,000. 
  
 “Owner Trust Estate”
shall have the meaning specified in the Trust Agreement. 
  
 “Owner Trustee” shall mean The Bank of New York, a New York banking corporation, not in its individual capacity but solely as Owner Trustee under the Trust Agreement, and any successor Owner Trustee under the Trust
Agreement. 
  

 10 

 “Permitted Investments” shall mean, on any date of determination, book-entry securities,
negotiable instruments or securities represented by instruments in bearer or registered form which evidence: 
  
 (i) direct obligations of, and obligations fully guaranteed by, the United States or any agency or instrumentality thereof the obligations
of which are backed by the full faith and credit of the United States; 
  
 (ii) demand deposits, time deposits, bankers’ acceptances or certificates of deposit of any depository institution or trust company incorporated under the laws of the United States or any State (or any domestic
branch of a foreign bank) and subject to supervision and examination by federal or state banking or depository institution authorities; provided, however, that such investment shall not have an “r” highlighter affixed to its
rating and its terms shall have a predetermined fixed dollar amount of principal due at maturity that cannot vary or change; and, provided further, that, at the time of the investment, the commercial paper or other short-term unsecured
debt obligations (other than such obligations the rating of which is based on the credit of a Person other than such depository institution or trust company) of such depository institution or trust company shall have a rating from Standard &
Poor’s of at least “A-1+” and from Moody’s of at least “Prime-1”; 
  
 (iii) repurchase obligations with respect to any security that is a direct obligation of, or fully guaranteed by, the United States or any
agency or instrumentality thereof the obligations of which are backed by the full faith and credit of the United States, in either case entered into with a depository institution or trust company (acting as principal) described in clause (ii) above;

  
 (iv) short-term corporate securities bearing
interest or sold at a discount issued by any corporation incorporated under the laws of the United States or any state thereof; provided, however, that such investment shall not have an “r” highlighter affixed to its rating
and its terms shall have a predetermined fixed dollar amount of principal due at maturity that cannot vary or change; and, provided further, that, at the time of the investment, the short-term unsecured debt obligations (other than
such obligations the rating of which is based on the credit of a Person other than such corporation) of such corporation shall have a rating from Standard & Poor’s of at least “AAA” and from Moody’s of at least
“Aaa”; 
  
 (v) commercial paper having,
at the time of the investment, a rating from Standard & Poor’s of at least “A-1+” and from Moody’s of at least “Prime-1”; provided, however, that such investment shall not have an “r”
highlighter affixed to its rating and its terms shall have a predetermined fixed dollar amount of principal due at maturity that cannot vary or change; 
  
 (vi) guaranteed investment contracts issued by an insurance company or other corporation as to which the Rating Agency Condition shall
have been satisfied; 
  
 (vii) investments in
money market funds having a rating from Standard & Poor’s of at least “AAA-m” or “AAAm-G” and from Moody’s of at least “Aaa” (including funds for which the Indenture Trustee or the Owner Trustee or any of
their respective Affiliates is investment manager or advisor); and 
  

 11 

 (viii) any other investment as to which the Rating Agency Condition shall have been
satisfied. 
  
 “Person” shall mean a legal
person, including any individual, corporation, estate, partnership, joint venture, association, joint stock company, limited liability company, limited liability partnership, trust, unincorporated organization, or government or any agency or
political subdivision thereof, or any other entity of whatever nature. 
  
 “Pool Balance” shall mean, as of the last day of any Collection Period, the aggregate Principal Balance of the Receivables as of such last day; provided, however, that if the Receivables are purchased by the
Servicer pursuant to Section 9.1(a) or are sold or otherwise liquidated by the Indenture Trustee following an Event of Default pursuant to Section 5.4(a) of the Indenture, the Pool Balance shall be deemed to be zero as of the last day of the
Collection Period during which such purchase, sale or other liquidation occurs. 
  
 “Principal Balance” shall mean, with respect to any Receivable as of any date, the Amount Financed under such Receivable minus the sum of (i) that portion of all Scheduled Payments actually
received on or prior to such date allocable to principal using the Simple Interest Method (to the extent collected) plus (ii) any rebates of extended warranty contract costs or physical damage, theft, credit life or credit disability
insurance premiums included in the Amount Financed plus (iii) any full or partial prepayment applied to reduce the unpaid principal balance of such Receivable; provided, however, that (i) the Principal Balance of a Defaulted
Receivable shall be zero as of the last day of the Collection Period during which it became a Defaulted Receivable and (ii) the Principal Balance of a Purchased Receivable shall be zero as of the last day of the Collection Period during which it
became a Purchased Receivable. 
  
 “Priority Principal
Distributable Amount” shall mean, with respect to any Distribution Date, the excess, if any, of the Note Balance of the Class A Notes as of the day preceding such Distribution Date over the Pool Balance as of the last day of the preceding
Collection Period; provided, however, that the Priority Principal Distributable Amount for each Distribution Date on or after the Class Final Distribution Date for any Class of Class A Notes shall equal the greater of (i) the amount
otherwise calculated pursuant to this definition and (ii) the outstanding principal balance of the Class A Notes of such Class as of the day preceding such Distribution Date. 
  
 “Purchase Amount” shall mean, with respect to any Distribution Date and any Receivable to be repurchased by
the Depositor or purchased by the Servicer on such Distribution Date, an amount equal to the sum of (i) the Principal Balance of such Receivable plus (ii) the amount of accrued but unpaid interest on such Principal Balance at the related APR
to but excluding such Distribution Date. 
  
 “Purchased
Receivable” shall mean a Receivable as to which payment of the Purchase Amount has been made by the Depositor pursuant to Section 2.4 or by the Servicer pursuant to Section 3.7 or 9.1. 
  
 “Rating Agencies” shall mean Moody’s and Standard &
Poor’s and their respective successors; provided, however, that if no such organization or successor is any longer 

  

 12 

 
in existence, Rating Agency shall mean a nationally recognized statistical rating organization or other comparable Person designated by the Trust, notice of
which designation shall have been given to the Indenture Trustee, the Owner Trustee and the Servicer. 
  
 “Rating Agency Condition” shall mean, with respect to any action, that each Rating Agency shall have been given prior notice of such
action and shall have notified the Depositor, the Seller, the Servicer, the Indenture Trustee and the Owner Trustee in writing that such action will not result in a reduction or withdrawal of the then current rating assigned by such Rating Agency to
any Class of Notes. 
  
 “Receivable” shall mean a
motor vehicle retail installment sale contract identified on the Receivable Schedule (as such contract may be amended, supplemented or otherwise modified and in effect from time to time). 
  
 “Receivable File” shall mean, with respect to any Receivable, the electronic entries, documents,
instruments and writings with respect to such Receivable specified in Section 2.5. 
  
 “Receivable Schedule” shall mean the list identifying the Receivables attached as Schedule 1 to this Agreement (which list may be in the form of microfiche or compact disk). 
  
 “Receivables Purchase Agreement” shall mean the Receivables
Purchase Agreement, dated as of April 1, 2005, between the Seller and the Depositor, as amended, supplemented or otherwise modified and in effect from time to time. 
  
 “Record Date” shall mean, with respect to any Distribution Date, the close of business on the Business Day
preceding such Distribution Date; provided, however, that (i) if Definitive Notes have been issued with respect to any Class of Notes, Record Date shall mean, with respect to any Distribution Date for such Class, the last Business Day
of the calendar month preceding such Distribution Date and (ii) if Definitive Certificates have been issued, Record Date shall mean, with respect to any Distribution Date for the Certificates, the last Business Day of the calendar month preceding
such Distribution Date. 
  
 “Regular Principal
Distributable Amount” shall mean, with respect to any Distribution Date, the lesser of (i) the Note Balance as of the day preceding such Distribution Date and (ii) (A) the excess, if any, of (x) the sum of the Note Balance as of the day
preceding such Distribution Date and the Overcollateralization Target Amount for such Distribution Date over (y) the Pool Balance as of the last day of the preceding Collection Period minus (B) the sum of the Priority Principal Distributable
Amount, if any, and the Secondary Principal Distributable Amount, if any, in each case for such Distribution Date. 
  
 “Related Fiscal Quarter” shall mean (i) for any Distribution Date occurring in August, September or October, the Fiscal Quarter ending on
the last day of the preceding October, (ii) for any Distribution Date occurring in November, December or January, the Fiscal Quarter ending on the last day of the preceding August, (iii) for any Distribution Date occurring in February, March, April
or May, the Fiscal Quarter ending on the last day of the preceding November and (iv) for any Distribution Date occurring in June or July, the Fiscal Quarter ending on the last day of the preceding February. 
  

 13 

 “Relevant UCC” shall mean the Uniform Commercial Code as in effect from time to time in
any relevant jurisdiction. 
  
 “Required Payment
Amount” shall have, for any Distribution Date, the meaning specified for such Distribution Date in Section 4.6(a). 
  
 “Required Rating” shall mean a short-term unsecured debt rating of Prime-1 by Moody’s and A-1+ by Standard & Poor’s.

  
 “Required Reserve Account Amount” shall mean,
for any Distribution Date, $3,085,000; provided, however, that the Required Reserve Account Amount for any Distribution Date shall not exceed the Note Balance as of such Distribution Date (after giving effect to all payments of
principal made to the Noteholders on such Distribution Date); and, provided further, that, if the Pool Balance as of the last day of the preceding Collection Period is zero, the Required Reserve Account Amount for the related
Distribution Date shall be $0. 
  
 “Required Secondary
Reserve Account Amount” shall mean, for any Distribution Date, $0; provided, however, that, for any Distribution Date on which a Secondary Reserve Account Funding Event has occurred and is continuing, Required Secondary
Reserve Account Amount shall mean $1,542,500; provided further, that the Required Secondary Reserve Account Amount for any Distribution Date shall not exceed the Note Balance as of such Distribution Date (after giving effect to all
payments of principal made to the Noteholders on such Distribution Date) minus the Reserve Account Amount as of such Distribution Date (after giving effect to all deposits to and withdrawals from the Reserve Account on such Distribution Date); and,
provided further, that, if the Pool Balance as of the last day of the preceding Collection Period is zero, the Required Secondary Reserve Account Amount for the related Distribution Date shall be $0. 
  
 “Reserve Account” shall mean the account established and
maintained as such pursuant to Section 4.7(a). 
  
 “Reserve Account Amount” shall mean, for any Distribution Date, the amount on deposit in and available for withdrawal from the Reserve Account on such Distribution Date (after giving effect to all deposits to and
withdrawals from the Reserve Account on the preceding Distribution Date, or, in the case of the initial Distribution Date, the Closing Date), including all interest and other income (net of losses and investment expenses) earned on such amount
during the preceding Collection Period. 
  
 “Reserve
Account Deficiency” shall have, for any Distribution Date, the meaning specified for such Distribution Date in Section 4.6(b). 
  
 “Reserve Account Draw Amount” shall have the meaning specified in Section 4.6(b). 
  
 “Reserve Account Property” shall have the meaning specified
in Section 4.7(a). 
  
 “Responsible Officer”
shall mean (i) in the case of the Indenture Trustee, any managing director, principal, vice president, assistant vice president, assistant secretary, assistant treasurer or trust officer of the Indenture Trustee or any other officer of the Indenture
Trustee 

  

 14 

 
customarily performing functions similar to those performed by any of the above designated officers and, with respect to a particular corporate trust matter,
any other officer of the Indenture Trustee to whom such matter is referred because of such officer’s knowledge of and familiarity with the particular subject and (ii) in the case of the Owner Trustee, any vice president, assistant vice
president, assistant secretary, assistant treasurer, trust officer or financial services officer of the Owner Trustee or any other officer of the Owner Trustee customarily performing functions similar to those performed by any of the above
designated officers and with direct responsibility for the administration of the Trust and, with respect to a particular corporate trust matter, any other officer of the Owner Trustee to whom such matter is referred because of such officer’s
knowledge of and familiarity with the particular subject. 
  
 “Scheduled Payment” shall mean, for any Receivable, each payment required to be made by the related Obligor in accordance with the terms of such Receivable (after giving effect to any deferral of payments pursuant to
Section 3.2 or any rescheduling of payments as a result of any Insolvency Event with respect to such Obligor). 
  
 “Secondary Payment Amount” shall have, for any Distribution Date, the meaning specified for such Distribution Date in Section 4.6(e).

  
 “Secondary Principal Distributable Amount”
shall mean, with respect to any Distribution Date, (i) the excess, if any, of the sum of the Note Balance of the Class A Notes and the Note Balance of the Class B Notes, in each case as of the day preceding such Distribution Date, over the Pool
Balance as of the last day of the preceding Collection Period minus (ii) the Priority Principal Distributable Amount, if any, for such Distribution Date; provided, however, that the Secondary Principal Distributable Amount for
each Distribution Date on or after the Class B Final Distribution Date shall equal the greater of (i) the amount otherwise calculated pursuant to this definition and (ii) the outstanding principal balance of the Class B Notes as of the day preceding
such Distribution Date; and, provided further, that the Secondary Principal Distributable Amount for each Distribution Date on or after the Class C Final Distribution Date shall equal the greater of (i) the amount otherwise calculated
pursuant to this definition and (ii) the sum of the outstanding principal balance of the Class B Notes and the outstanding principal balance of the Class C Notes, in each case as of the day preceding such Distribution Date. 
  
 “Secondary Reserve Account” shall mean the account
established and maintained as such pursuant to Section 4.11(a). 
  
 “Secondary Reserve Account Amount” shall mean, for any Distribution Date, the amount on deposit in and available for withdrawal from the Secondary Reserve Account on such Distribution Date (after giving effect to all
deposits to and withdrawals from the Secondary Reserve Account on the preceding Distribution Date, or, in the case of the initial Distribution Date, the Closing Date), including all interest and other income (net of losses and investment expenses)
earned on such amount during the preceding Collection Period. 
  
 “Secondary Reserve Account Deficiency” shall have, for any Distribution Date, the meaning specified for such Distribution Date in Section 4.6(c). 
  

 15 

 “Secondary Reserve Account Draw Amount” shall have the meaning specified in Section
4.6(c). 
  
 “Secondary Reserve Account Funding
Event” shall mean, for any Distribution Date on which CarMax, Inc. shall not have a long-term senior unsecured debt rating of at least Ba1 from Moody’s, the failure of CarMax, Inc. to have, as of the last day of the Related Fiscal
Quarter, a Consolidated Tangible Net Worth of at least $600,000,000 plus an amount equal to 50% of CarMax, Inc.’s positive net income for each Fiscal Quarter ending on or after February 29, 2004 plus an amount equal to 100% of the
net proceeds of any public offering completed after February 29, 2004 by CarMax, Inc. of (i) its common stock, (ii) any securities convertible into or exercisable for, or any rights, warrants or options to acquire, any such common stock or any such
convertible or exchangeable securities or (iii) any derivative or synthetic securities the value of which is determined with respect to such common stock, in each case it being understood that the effect of any such offering must be to increase the
Consolidated Tangible Net Worth in order for any such net proceeds to be included in the preceding calculation. 
  
 “Secondary Reserve Account Property” shall have the meaning specified in Section 4.11(a). 
  
 “Securities” shall have the meaning specified in Section
6.7(a). 
  
 “Securitization Trust” shall
have the meaning specified in Section 6.7(a). 
  
 “Seller” shall mean CarMax, in its capacity as seller of the Receivables under the Receivables Purchase Agreement, and its successors in such capacity. 
  
 “Servicer” shall mean CarMax, in its capacity as servicer of the Receivables under this Agreement, and its
successors in such capacity. 
  
 “Servicer’s
Certificate” shall have the meaning specified in Section 3.9. 
  
 “Servicing Officer” shall mean any officer of the Servicer involved in, or responsible for, the administration and servicing of the Receivables whose name appears on a list of servicing officers attached to an
Officer’s Certificate furnished on the Closing Date to the Owner Trustee and the Indenture Trustee by the Servicer, as such list may be amended from time to time by the Servicer in writing. 
  
 “Servicing Rate” shall mean 1.00% per annum. 
  
 “Simple Interest Advance” shall mean, with respect to a
Simple Interest Receivable, the amount, as of the last day of a Collection Period, which is advanced with respect to such Simple Interest Receivable by the Servicer pursuant to Section 4.4(a). 
  
 “Simple Interest Method” shall mean the method of allocating
a fixed level payment between principal and interest, pursuant to which a portion of such payment is allocated to interest in an amount equal to the product of the APR of the related Receivable multiplied by the unpaid Principal Balance of such
Receivable multiplied by the period of time (expressed as a fraction of a year, based on the actual number of days in the applicable calendar month and a 

  

 16 

 
365-day year) elapsed since the preceding payment was made and the remainder of such payment is allocated to principal. 
  
 “Simple Interest Receivable” shall mean any Receivable under
which each payment is allocated between principal and interest in accordance with the Simple Interest Method. 
  
 “Standard & Poor’s” shall mean Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., and
its successors. 
  
 “State” shall mean any of the
50 states of the United States or the District of Columbia. 
  
 “Total Note Interest” shall mean, for any Distribution Date and any Class of Notes, the sum of (i) the Monthly Note Interest for such Distribution Date for such Class plus (ii) the Additional Note Interest for such
Distribution Date for such Class. 
  
 “Total Servicing
Fee” shall mean, for any Collection Period, the sum of (i) the Monthly Servicing Fee for such Collection Period plus (ii) all accrued but unpaid Monthly Servicing Fees for previous Collection Periods. 
  
 “Transition Costs” shall have the meaning specified in
Section 8.1(a). 
  
 “Trust” shall mean the CarMax
Auto Owner Trust 2005-1, a Delaware statutory trust. 
  
 “Trust Agreement” shall mean the Amended and Restated Trust Agreement, dated as of April 1, 2005, among the Depositor, the Delaware Trustee and the Owner Trustee, as amended, supplemented or otherwise modified and in effect
from time to time. 
  
 “Trust Fiscal Year” shall
mean the period commencing on March 1 of any year and ending on February 28 (or February 29, if applicable) of the following year. 
  
 “Trust Property” shall mean the Receivables and the other related property sold, transferred, assigned and otherwise conveyed by the
Depositor to the Trust pursuant to Section 2.1(a). 
  
 “United States” shall mean the United States of America. 
  
 “Unreimbursed Servicer Advance” shall mean a Simple Interest Advance which the Servicer determines in its sole discretion is unrecoverable. 
  
 SECTION 1.2 Other Definitional Provisions. 
  
 (a) Capitalized terms used herein and not otherwise defined herein have the
meanings assigned to them in the Indenture. 
  

 17 

 (b) All terms defined in this Agreement shall have the defined meanings when used in any certificate or
other document made or delivered pursuant hereto unless otherwise defined therein. 
  
 (c) As used in this Agreement and in any certificate or other document made or delivered pursuant hereto or thereto, accounting terms not defined in this Agreement or in any such certificate or other document, and
accounting terms partly defined in this Agreement or in any such certificate or other document to the extent not defined, shall have the respective meanings assigned to them under generally accepted accounting principles. To the extent that the
definitions of accounting terms in this Agreement or in any such certificate or other document are inconsistent with the meanings of such terms under generally accepted accounting principles, the definitions contained in this Agreement or in any
such certificate or other document shall control. 
  
 (d) The
words “hereof,” “herein,” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. Article, Section,
Schedule and Exhibit references contained in this Agreement are references to Articles, Sections, Schedules and Exhibits in or to this Agreement unless otherwise specified. The term “including” shall mean “including without
limitation.” 
  
 (e) The definitions contained in this
Agreement are applicable to the singular as well as the plural forms of such terms and to the masculine as well as to the feminine and neuter genders of such terms. 
  
 (f) Any agreement, instrument or statute defined or referred to herein or in any instrument or certificate delivered in
connection herewith means such agreement, instrument or statute as from time to time amended, modified or supplemented and includes (in the case of agreements or instruments) references to all attachments thereto and instruments incorporated
therein. References to a Person are also to its permitted successors and assigns. 
  
 ARTICLE II 
 TRUST PROPERTY 
  
 SECTION 2.1 Conveyance of Trust Property. 
  
 (a) In consideration of the Trust’s delivery to, or upon the written order of, the Depositor of authenticated Notes, in
authorized denominations in aggregate principal amounts equal to the Initial Note Balance, and authenticated Certificates, the Depositor hereby irrevocably sells, transfers, assigns and otherwise conveys to the Trust, without recourse (subject to
the obligations herein), all right, title and interest of the Depositor, whether now owned or hereafter acquired, in, to and under the following: 
  
 (i) the Receivables; 
  
 (ii) all amounts received on or in respect of the Receivables after the Cutoff Date; 
  

 18 

 (iii) the security interests in the Financed Vehicles granted by the Obligors pursuant to
the Receivables and any other interest of the Depositor in such Financed Vehicles; 
  
 (iv) all proceeds from claims on or refunds of premiums with respect to physical damage, theft, credit life or credit disability insurance
policies relating to the Financed Vehicles or the Obligors; 
  
 (v) the Receivable Files; 
  
 (vi) the Collection Account, the Note Payment Account, the Certificate Payment Account, the Reserve Account and the Secondary Reserve Account and all amounts, securities, financial assets, investments and other
property deposited in or credited to any of the foregoing and all proceeds thereof; 
  
 (vii) all rights of the Depositor under the Receivables Purchase Agreement, including the right to require the Seller to repurchase
Receivables from the Depositor; 
  
 (viii) the
right to realize upon any property (including the right to receive future Liquidation Proceeds) that shall have secured a Receivable and have been repossessed by or on behalf of the Trust; and 
  
 (ix) all present and future claims, demands, causes of
action and choses in action in respect of any or all of the foregoing and all payments on or under and all proceeds of every kind and nature whatsoever in respect of any or all of the foregoing, including all proceeds of the conversion thereof,
voluntary or involuntary, into cash or other liquid property; all accounts, general intangibles, chattel paper, instruments, documents, money, investment property, deposit accounts, letters of credit, letter-of-credit rights, insurance proceeds,
condemnation awards, rights to payment of any and every kind and other forms of obligations; and all other property which at any time constitutes all or part of or is included in the proceeds of any of the foregoing. 
  
 (b) The Depositor and the Trust intend that the transfer of the Trust
Property contemplated by Section 2.1(a) constitute a sale of the Trust Property, conveying good title to the Trust Property, from the Depositor to the Trust. If such transfer is deemed to be a pledge to secure the payment of the Notes, however, the
Depositor hereby grants to the Trust a first priority security interest in all of the Depositor’s right, title and interest in, to and under the Trust Property, and all proceeds thereof, to secure the payment of the Notes, and in such event,
this Agreement shall constitute a security agreement under applicable law. 
  
 (c) The sale, transfer, assignment and conveyance of the Trust Property made under Section 2.1(a) shall not constitute and is not intended to result in an assumption by the Trust of any obligation of the Depositor or
the Seller to the Obligors or any other Person in connection with the Receivables and the other Trust Property or any obligation of the Depositor or the Seller under any agreement, document or instrument related thereto. 
  
 SECTION 2.2 Representations and Warranties of the Seller as to the
Receivables. The Seller has made to the Depositor the representations and warranties as to the 

  

 19 

 
Receivables set forth in Section 3.2(b) of the Receivables Purchase Agreement. The Trust shall be deemed to have relied on such representations and
warranties in accepting the Receivables. The representations and warranties set forth in Section 3.2(b) of the Receivables Purchase Agreement speak as of the execution and delivery of this Agreement, except to the extent otherwise provided, but
shall survive the sale, transfer, assignment and conveyance of the Receivables to the Trust pursuant to this Agreement and the pledge of the Receivables to the Indenture Trustee pursuant to the Indenture. Pursuant to Section 2.1, the Depositor has
sold, transferred, assigned and otherwise conveyed to the Trust, as part of the Trust Property, its rights under the Receivables Purchase Agreement, including its right to require the Seller to repurchase Receivables in accordance with the
Receivables Purchase Agreement upon a breach of the representations and warranties set forth in Section 3.2(b) of the Receivables Purchase Agreement. 
  
 SECTION 2.3 Representations and Warranties of the Depositor as to the Receivables. The Depositor makes the following representations and warranties
as to the Receivables on which the Trust shall be deemed to have relied in accepting the Receivables. The representations and warranties speak as of the execution and delivery of this Agreement, except to the extent otherwise provided, but shall
survive the sale, transfer, assignment and conveyance of the Receivables to the Trust pursuant to this Agreement and the pledge of the Receivables to the Indenture Trustee pursuant to the Indenture. 
  
 (a) Characteristics of Receivables. Each Receivable (i) has been
originated by CarMax Auto or an Affiliate of CarMax Auto in the ordinary course of business in connection with the sale of a new or used motor vehicle and has been fully and properly executed by the parties thereto, (ii) contains customary and
enforceable provisions such that the rights and remedies of the holder thereof are adequate for realization against the collateral of the benefits of the security, (iii) provides for level monthly payments that fully amortize the Amount Financed by
maturity (except that the period between the date of such Receivable and the date of the first Scheduled Payment may be less than or greater than one month and the amount of the first and last Scheduled Payments may be less than or greater than the
level payments) and yield interest at the related APR, (iv) provides for, in the event that such Receivable is prepaid, a prepayment that fully pays the Principal Balance of such Receivable with interest at the related APR through the date of
payment, (v) is a retail installment sale contract substantially in the form of Exhibit B to the Receivables Purchase Agreement, (vi) is secured by a new or used motor vehicle that had not been repossessed as of the Cutoff Date, (vii) is a Simple
Interest Receivable, (viii) relates to an Obligor who has made at least one payment under such Receivable as of the Cutoff Date and (ix) relates to an Obligor whose mailing address is located in any State. 
  
 (b) Receivable Schedule. The information set forth in the Receivable
Schedule was true and correct in all material respects as of the opening of business on the Cutoff Date, and no selection procedures believed to be adverse to the Depositor and/or the Noteholders were utilized in selecting the Receivables from those
retail installment sale contracts which met the criteria contained in this Agreement. The information set forth in the compact disk or other listing regarding the Receivables made available to the Depositor and its assigns (which compact disk or
other listing is required to be delivered as specified herein) is true and correct in all material respects. 
  

 20 

 (c) Compliance with Law. Each Receivable and the sale of the related Financed Vehicle complied, at
the time such Receivable was originated and complies, as of the Closing Date, in all material respects with all requirements of applicable federal, state and local laws, and regulations thereunder, including usury laws, the Federal Truth-in-Lending
Act, the Equal Credit Opportunity Act, the Fair Credit Reporting Act, the Fair Debt Collection Practices Act, the Federal Trade Commission Act, the Magnuson-Moss Warranty Act, the Federal Reserve Board’s Regulations B and Z, the Servicemembers
Civil Relief Act, state adaptations of the National Consumer Act and the Uniform Consumer Credit Code and any other consumer credit, equal opportunity and disclosure laws applicable to such Receivable and sale. 
  
 (d) Binding Obligation. Each Receivable represents the genuine, legal,
valid and binding payment obligation in writing of the related Obligor, enforceable by the holder thereof in all material respects in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization,
liquidation or other similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity. 
  
 (e) No Government Obligor. No Receivable is due from the United States or any State or from any agency, department or instrumentality of the United
States or any State. 
  
 (f) Security Interest in Financed
Vehicles. Immediately prior to the transfer of the Receivables by the Seller to the Depositor, each Receivable was secured by a valid, binding and enforceable first priority perfected security interest in favor of the Seller in the related
Financed Vehicle, which security interest has been validly assigned by the Seller to the Depositor. The Servicer has received, or will receive within 180 days after the Closing Date, the original certificate of title for each Financed Vehicle (other
than any Financed Vehicle that is subject to a certificate of title statute or motor vehicle registration law that does not require that the original certificate of title for such Financed Vehicle be delivered to the Seller). 
  
 (g) Receivables in Force. No Receivable has been satisfied,
subordinated or rescinded, nor has any Financed Vehicle been released in whole or in part from the Lien granted by the related Receivable. 
  
 (h) No Waiver. No provision of any Receivable has been waived in such a manner that such Receivable fails to meet all of the representations and
warranties made by the Depositor in this Section 2.3 with respect thereto. 
  
 (i) No Defenses. No Receivable is subject to any right of rescission, setoff, counterclaim or defense, including the defense of usury, and the operation of any of the terms of any Receivable, or the exercise of
any right thereunder, will not render such Receivable unenforceable in whole or in part or subject to any right of rescission, setoff, counterclaim or defense, including the defense of usury, and the Depositor has no knowledge of any such right of
rescission, setoff, counterclaim or defense being asserted or threatened with respect to any Receivable. 
  
 (j) No Liens. The Depositor has no knowledge of any liens or claims that have been filed, including liens for work, labor or materials or for
unpaid state or federal taxes, 

  

 21 

 
relating to any Financed Vehicle that are prior to, or equal or coordinate with, the security interest in such Financed Vehicle created by the related
Receivable. 
  
 (k) No Default. Except for payment defaults
continuing for a period of not more than 30 days, the Depositor has no knowledge that any default, breach, violation or event permitting acceleration under the terms of any Receivable has occurred or that any continuing condition that with notice or
the lapse of time or both would constitute a default, breach, violation or event permitting acceleration under the terms of any Receivable has arisen, and the Depositor has not waived any such event or condition. 
  
 (l) Title. The Depositor has purchased the Receivables from the
Seller. The Depositor intends that the transfer of the Receivables contemplated by Section 2.1 constitute a sale of the Receivables from the Depositor to the Trust and that the beneficial interest in, and title to, the Receivables not be part of the
Depositor’s estate in the event of the filing of a bankruptcy petition by or against the Depositor under any bankruptcy law. The Depositor has not sold, transferred, assigned or pledged any Receivable to any Person other than the Trust. The
Depositor has not created, incurred or suffered to exist any Lien, encumbrance or security interest on any Receivable except for the Lien of the Indenture. 
  
 (m) Security Interest Matters. This Agreement creates a valid and continuing “security interest” (as defined in the Relevant UCC) in the
Receivables in favor of the Trust, which security interest is prior to all other Liens and is enforceable as such as against creditors of and purchasers from the Depositor. With respect to each Receivable, the Seller has taken all steps necessary to
perfect its security interest against the related Obligor in the related Financed Vehicle. The Receivables constitute “tangible chattel paper” (as defined in the Relevant UCC). The Depositor owns and has good and marketable title to the
Receivables free and clear of any Lien, claim or encumbrance of any Person. The Depositor has caused or will cause prior to the Closing Date the filing of all appropriate financing statements in the proper filing offices in the appropriate
jurisdictions under applicable law necessary to perfect the security interest in the Receivables granted to the Trust under this Agreement. Other than the security interest granted to the Trust under this Agreement, the Depositor has not pledged,
assigned, sold, granted a security interest in or otherwise conveyed any of the Receivables. The Depositor has not authorized the filing of and is not aware of any financing statements against the Depositor that include a description of collateral
covering the Receivables other than any financing statement relating to the security interest granted to the Trust under this Agreement or that has been terminated. The Depositor is not aware of any judgment or tax lien filings against the
Depositor. The security interest of the Seller in each Financed Vehicle has been validly assigned by the Depositor to the Trust. 
  
 (n) Financing Statements. All financing statements filed or to be filed against the Depositor in favor of the Indenture Trustee (as assignee of the
Trust) contain a statement substantially to the following effect: “A purchase of or security interest in any collateral described in this financing statement will violate the rights of the Indenture Trustee.” 
  
 (o) Valid Assignment. No Receivable has been originated in, or is
subject to the laws of, any jurisdiction under which the sale, transfer, assignment and conveyance of such Receivable under the Receivables Purchase Agreement or this Agreement or the pledge of such 

  

 22 

 
Receivable under the Indenture is unlawful, void or voidable or under which such Receivable would be rendered void or voidable as a result of any such sale,
transfer, assignment, conveyance or pledge. The Depositor has not entered into any agreement with any account debtor that prohibits, restricts or conditions the assignment of the Receivables. 
  
 (p) One Original. There is only one original executed copy of each
Receivable. 
  
 (q) Principal Balance. Each Receivable had
an original Principal Balance of not more than $60,000 and a remaining Principal Balance as of the Cutoff Date of not less than $500. 
  
 (r) No Bankrupt Obligors. As of the Cutoff Date, no Receivable was due from an Obligor that was the subject of a proceeding under the Bankruptcy
Code of the United States or was bankrupt. 
  
 (s) New and Used
Vehicles. As of the Cutoff Date, approximately 3.21% of the Pool Balance related to Receivables secured by new Financed Vehicles and approximately 96.79% of the Pool Balance related to Receivables secured by used Financed Vehicles. 

 
 (t) Origination. Each Receivable was originated after July 1, 1999.

  
 (u) Term to Maturity. Each Receivable had an original
term to maturity of not more than 72 months and not less than 12 months and a remaining term to maturity as of the Cutoff Date of not more than 71 months and not less than three months. 
  
 (v) Weighted Average Remaining Term to Maturity. As of the Cutoff Date, the weighted average remaining term to
maturity of the Receivables was approximately 56.96 months. 
  
 (w) Annual Percentage Rate. Each Receivable has an APR of at least 4.45% and not more than 25.00%. 
  
 (x) Location of Receivable Files. The Receivable Files are maintained at the location listed in Schedule 2 to this Agreement. 
  
 (y) Simple Interest Method. All payments with respect to the
Receivables have been allocated consistently in accordance with the Simple Interest Method. 
  
 (z) No Delinquent Receivables. As of the Cutoff Date, no payment due under any Receivable was more than 30 days past due. 
  

(aa) Insurance. Each Obligor has obtained or agreed to obtain physical damage insurance (which insurance shall not be force placed insurance)
covering the related Financed Vehicle in accordance with the Seller’s normal requirements. 
  
 (bb) Fair Market Value. The Receivables Purchase Price represents the fair market value of the Receivables. 
  

 23 

 (cc) Custodial Agreements. Immediately prior to the transfer of the Receivables by the Seller to
the Depositor, the Seller or an Affiliate of the Seller had possession of the Receivable Files and there were no, and there will not be any, custodial agreements in effect materially adversely affecting the right or ability of the Seller to make, or
cause to be made, any delivery required under this Agreement. 
  
 (dd) Bulk Transfer Laws. The transfer of the Receivables and the Receivable Files by the Depositor to the Trust pursuant to this Agreement is not subject to the bulk transfer laws or any similar statutory provisions in effect in any
applicable jurisdiction. 
  
 (ee) No Transfer Restrictions.
The Depositor has not created, incurred or suffered to exist any restriction on transferability of the Receivables except for the restrictions on transferability imposed by this Agreement. 
  
 SECTION 2.4 Repurchase by Depositor upon Breach. The Depositor, the
Servicer or the Owner Trustee, as the case may be, shall inform the other parties to this Agreement, the Seller and the Indenture Trustee promptly, in writing, upon the discovery of any breach or failure to be true of the representations and
warranties set forth in Section 2.3. If such breach or failure shall not have been cured by the close of business on the last day of the Collection Period which includes the thirtieth (30th) day after the date on which the Depositor becomes aware
of, or receives written notice from the Seller, the Servicer or the Owner Trustee of, such breach or failure, and such breach or failure materially and adversely affects the interest of the Trust in a Receivable, the Depositor shall repurchase such
Receivable from the Trust on the Distribution Date immediately following such Collection Period. In consideration of the repurchase of a Receivable hereunder, the Depositor shall remit the Purchase Amount of such Receivable in the manner specified
in Section 4.5. The sole remedy of the Trust, the Owner Trustee, the Indenture Trustee, the Noteholders and the Certificateholders with respect to a breach or failure to be true of the representations and warranties set forth in Section 2.3 shall be
to require the Depositor to repurchase Receivables pursuant to this Section 2.4. Neither the Owner Trustee nor the Indenture Trustee shall have any duty to conduct an affirmative investigation as to the occurrence of any condition requiring the
repurchase of any Receivable pursuant to this Section 2.4 or the eligibility of any Receivable for purposes of this Agreement. 
  
 SECTION 2.5 Custody of Receivable Files. To assure uniform quality in servicing the Receivables and to reduce administrative costs, the Trust, upon
the execution and delivery of this Agreement, hereby revocably appoints the Servicer as its agent, and the Servicer hereby accepts such appointment, to act as custodian on behalf of the Trust and the Indenture Trustee of the following documents or
instruments, which are hereby constructively delivered to the Indenture Trustee, as pledgee of the Trust pursuant to the Indenture with respect to each Receivable (collectively, a “Receivable File”): 
  
 (i) the original, executed copy of such Receivable;

  
 (ii) the original credit application with
respect to such Receivable fully executed by the related Obligor or a photocopy thereof or a record thereof on a computer file or disc or on microfiche; 
  

 24 

 (iii) the original certificate of title for the related Financed Vehicle or such other
documents that the Seller or the Servicer shall keep on file, in accordance with its customary practices and procedures, evidencing the security interest of the Seller in such Financed Vehicle; 
  
 (iv) documents evidencing the commitment of the related
Obligor to maintain physical damage insurance covering the related Financed Vehicle; and 
  
 (v) any and all other documents (including any computer file or disc or microfiche) that the Seller or the Servicer shall keep on file, in
accordance with its customary practices and procedures, relating to such Receivable, the related Obligor or the related Financed Vehicle. 
  
 On the Closing Date, the Servicer shall deliver to the Trust and the Indenture Trustee an Officer’s Certificate confirming that the Servicer has
received, on behalf of the Trust and the Indenture Trustee, all the documents and instruments necessary for the Servicer to act as the agent of the Trust and the Indenture Trustee for the purposes set forth in this Section 2.5, including the
documents referred to herein, and the Trust, the Owner Trustee and the Indenture Trustee are hereby authorized to rely on such Officer’s Certificate. In addition, within 180 days after the Closing Date, the Servicer shall deliver to the Trust
and the Indenture Trustee an Officer’s Certificate certifying that the Servicer has received the original certificate of title for each Financed Vehicle except each Financed Vehicle securing an outstanding Receivable for which the Servicer has
not received the original certificate of title as shall be identified in such Officer’s Certificate (and indicating whether such Financed Vehicle is subject to a certificate of title statute or motor vehicle registration law that requires that
the original certificate of title for such Financed Vehicle be delivered to the Seller). 
  
 SECTION 2.6 Duties of Servicer as Custodian. 
  
 (a) Safekeeping. The Servicer, in its capacity as custodian, shall hold the Receivable Files for the benefit of the Trust and the Indenture Trustee and maintain such accurate and complete accounts, records and
computer systems pertaining to each Receivable File as shall enable the Servicer and the Trust to comply with the terms and provisions of this Agreement and the Indenture Trustee to comply with the terms and conditions of the Indenture. In
performing its duties as custodian, the Servicer shall act with reasonable care, using that degree of skill and attention that the Servicer exercises with respect to the files relating to comparable motor vehicle retail installment sale contracts
that the Servicer services for itself or others. The Servicer shall conduct, or cause to be conducted, in accordance with its customary practices and procedures, periodic audits of the Receivable Files held by it under this Agreement, and of the
related accounts, records and computer systems, in such a manner as shall enable the Trust or the Indenture Trustee to verify the accuracy of the Servicer’s record keeping. The Servicer shall promptly report to the Owner Trustee and the
Indenture Trustee any failure on its part to hold the Receivable Files and maintain its accounts, records and computer systems as herein provided and promptly take appropriate action to remedy any such failure. Nothing herein shall be deemed to
require an initial review or any periodic review by the Trust, the Owner Trustee or the Indenture Trustee of the Receivable Files, and none of the Trust, the 

  

 25 

 
Owner Trustee or the Indenture Trustee shall be liable or responsible for any action or failure to act by the Servicer in its capacity as custodian
hereunder. 
  
 (b) Maintenance of and Access to Records.
The Servicer shall maintain each Receivable File at the location listed in Schedule 2 or at such other location as shall be specified to the Trust and the Indenture Trustee by written notice not later than ninety (90) days after any change in
location. The Servicer shall make available to the Trust and the Indenture Trustee, or its duly authorized representatives, attorneys or auditors, a list of locations of the Receivable Files, the Receivable Files, and the related accounts, records,
and computer systems maintained by the Servicer, at such times as the Trust or the Indenture Trustee shall instruct. 
  
 (c) Release of Documents. As soon as practicable after receiving written instructions from the Indenture Trustee, the Servicer shall release any
document in the Receivable Files to the Indenture Trustee, the Indenture Trustee’s agent or the Indenture Trustee’s designee, as the case may be, at such place as the Indenture Trustee may reasonably designate. 
  
 (d) Title to Receivables. The Servicer shall not at any time have or
in any way attempt to assert any interest in any Receivable held by it as custodian hereunder or in the related Receivable File other than for collecting or enforcing such Receivable for the benefit of the Trust. The entire equitable interest in
such Receivable and the related Receivable File shall at all times be vested in the Trust. 
  
 SECTION 2.7 Instructions; Authority to Act. The Servicer shall be deemed to have received proper instructions with respect to the Receivable Files upon its receipt of written instructions signed by an
Authorized Officer. A certified copy of excerpts of authorizing resolutions of the Board of Directors of the Indenture Trustee shall constitute conclusive evidence of the authority of any such Authorized Officer to act and shall be considered in
full force and effect until receipt by the Servicer of written notice to the contrary given by the Indenture Trustee. 
  
 SECTION 2.8 Indemnification of the Custodian. The Servicer, in its capacity as custodian, shall indemnify and hold harmless the Trust, the Owner
Trustee and the Indenture Trustee and each of their respective officers, directors, employees and agents from and against any and all liabilities, obligations, losses, compensatory damages, payments, costs or expenses (including legal fees if any)
of any kind whatsoever that may be imposed on, incurred or asserted against the Trust, the Owner Trustee or the Indenture Trustee or any of their respective officers, directors, employees and agents as the result of any act or omission by the
Servicer relating to the maintenance and custody of the Receivable Files; provided, however, that the Servicer shall not be liable hereunder to the Owner Trustee to the extent that such liabilities, obligations, losses, compensatory
damages, payments, costs or expenses result from the willful misfeasance, bad faith or negligence of the Owner Trustee and shall not be liable hereunder to the Indenture Trustee to the extent that such liabilities, obligations, losses, compensatory
damages, payments, costs or expenses result from the willful misfeasance, bad faith or negligence of the Indenture Trustee. 
  
 SECTION 2.9 Effective Period and Termination. The Servicer’s appointment as custodian shall become effective as of the Cutoff Date and shall
continue in full force and 

  

 26 

 
effect until terminated pursuant to this Section 2.9. If the Servicer shall resign as Servicer under Section 7.6, or if all of the rights and obligations of
the Servicer shall have been terminated under Section 8.1, the appointment of the Servicer as custodian hereunder may be terminated (i) by the Trust, with the consent of the Indenture Trustee, (ii) by the Holders of Notes evidencing not less than
25% of the Note Balance of the Controlling Class or, if the Notes have been paid in full, by the Holders of Certificates evidencing not less than 25% of the aggregate Certificate Percentage Interest or (iii) by the Owner Trustee, with the consent of
the Holders of Notes evidencing not less than 25% of the Note Balance of the Controlling Class, in each case by notice then given in writing to the Depositor and the Servicer (with a copy to the Indenture Trustee and the Owner Trustee if given by
the Noteholders or the Certificateholders). As soon as practicable after any termination of such appointment, the Servicer shall deliver, or cause to be delivered, the Receivable Files and the related accounts and records maintained by the Servicer
to the Indenture Trustee, the Indenture Trustee’s agent or the Indenture Trustee’s designee, as the case may be, at such place as the Indenture Trustee may reasonably designate or, if the Notes have been paid in full, at such place as the
Owner Trustee may reasonably designate. 
  

 27 

 ARTICLE III 
 ADMINISTRATION AND SERVICING OF RECEIVABLES AND 
 OTHER TRUST PROPERTY 
  
 SECTION 3.1 Duties of Servicer. The Servicer shall administer the
Receivables with reasonable care. The Servicer’s duties shall include, but not be limited to, the collection and posting of all payments, responding to inquiries by Obligors on the Receivables, or by federal, state or local governmental
authorities, investigating delinquencies, reporting tax information to Obligors, furnishing monthly and annual statements to the Owner Trustee and the Indenture Trustee with respect to distributions and providing collection and repossession services
in the event of Obligor default. In performing its duties as Servicer hereunder, the Servicer shall use reasonable care and exercise that degree of skill and attention that the Servicer exercises with respect to all comparable motor vehicle retail
installment sale contracts that it services for itself or others. Subject to the foregoing and to Section 3.2, the Servicer shall follow its customary standards, policies, practices and procedures in performing its duties hereunder as Servicer.
Without limiting the generality of the foregoing, the Servicer is hereby authorized and empowered to execute and deliver, on behalf of itself, the Depositor, the Trust, the Owner Trustee, the Indenture Trustee, the Certificateholders, the
Noteholders or any one or more of them, any and all instruments of satisfaction or cancellation, or of partial or full release or discharge, and all other comparable instruments, with respect to the Receivables or the Financed Vehicles, all in
accordance with this Agreement; provided, however, that, notwithstanding the foregoing, the Servicer shall not, except pursuant to an order from a court of competent jurisdiction, release an Obligor from payment of any unpaid amount
under any Receivable or waive the right to collect the unpaid balance (including accrued interest) of any Receivable from the related Obligor, except in connection with a de minimis deficiency which the Servicer would not attempt to collect in
accordance with its customary procedures, in which event the Servicer shall indemnify the Trust for such deficiency. If the Servicer shall commence a legal proceeding to enforce a Receivable, the Owner Trustee shall thereupon be deemed to have
automatically assigned such Receivable to the Servicer, which assignment shall be solely for purposes of collection. If in any enforcement suit or legal proceeding it shall be held that the Servicer may not enforce a Receivable on the ground that it
shall not be a real party in interest or a holder entitled to enforce such Receivable, the Owner Trustee shall, at the Servicer’s expense and written direction, take steps to enforce such Receivable, including bringing suit in its name or the
names of the Indenture Trustee, the Certificateholders, the Noteholders or any of them. The Owner Trustee shall execute and deliver to the Servicer any powers of attorney and other documents as shall be prepared by the Servicer and reasonably
necessary or appropriate to enable the Servicer to carry out its servicing and administrative duties hereunder. The Servicer, at its expense, shall obtain on behalf of the Trust or the Owner Trustee all licenses, if any, required by the laws of any
jurisdiction to be held by the Trust or the Owner Trustee in connection with ownership of the Receivables and shall make all filings and pay all fees as may be required in connection therewith during the term hereof. 
  
 SECTION 3.2 Collection and Allocation of Receivable Payments. The
Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of the Receivables as and when the same shall become due and otherwise act with respect to the Receivables and the other Trust Property in such
manner as will, in the reasonable judgment of the Servicer, maximize the amount to be received by the Trust with respect thereto 

  

 28 

 
and in accordance with the standard of care required by Section 3.1. The Servicer shall allocate collections on or in respect of the Receivables between
principal and interest in accordance with the customary servicing practices and procedures it follows with respect to all comparable motor vehicle retail installment sale contracts that it services for itself or others. The Servicer shall not
increase or decrease the number or amount of any Scheduled Payment, the Amount Financed under any Receivable or the APR of any Receivable, or extend, rewrite or otherwise modify the payment terms of any Receivable; provided, however,
that the Servicer may extend the due date for one or more payments due on any Receivable for credit-related reasons that would be acceptable to the Servicer with respect to comparable motor vehicle retail installment sale contracts that it services
for itself or others and in accordance with its customary standards, policies, practices and procedures if the cumulative extensions with respect to any Receivable shall not cause the term of such Receivable to extend beyond the Final Scheduled
Maturity Date. If the Servicer fails to comply with the provisions of the preceding sentence, the Servicer shall be required to purchase each Receivable affected thereby for the related Purchase Amount, in the manner specified in Section 3.7, as of
the close of the Collection Period during which such failure occurs. The Servicer may, in its discretion (but only in accordance with its customary standards, policies, practices and procedures), waive any late payment charge or any other fee that
may be collected in the ordinary course of servicing a Receivable. 
  
 SECTION 3.3 Realization upon Receivables. The Servicer shall use reasonable efforts on behalf of the Trust, in accordance with the standard of care required under Section 3.1, to repossess or otherwise convert the ownership of each
Financed Vehicle securing a Defaulted Receivable. In taking such action, the Servicer shall follow such customary practices and procedures as it shall deem necessary or advisable in its servicing of comparable motor vehicle retail installment sale
contracts and as are otherwise consistent with the standard of care required under Section 3.1. The Servicer shall be entitled to recover all reasonable expenses incurred by it in the course of repossessing and liquidating a Financed Vehicle into
cash proceeds, but only out of the cash proceeds of such Financed Vehicle and any deficiency obtained from the related Obligor. If a Financed Vehicle shall have suffered damage, the Servicer shall not expend funds in connection with the repair or
the repossession of such Financed Vehicle unless it shall determine in its discretion that such repair and/or repossession will increase the Liquidation Proceeds received with respect to the related Receivable. 
  
 SECTION 3.4 Physical Damage Insurance. The Servicer shall follow its
customary practices and procedures to determine whether or not each Obligor shall have maintained physical damage insurance covering the related Financed Vehicle. 
  
 SECTION 3.5 Maintenance of Security Interests in Financed Vehicles. The Servicer shall take such steps, in accordance
with the standard of care required under Section 3.1, as are necessary to maintain perfection of the security interest created by each Receivable in the related Financed Vehicle. The Trust hereby authorizes the Servicer, and the Servicer hereby
agrees, to take such steps as are necessary to re-perfect such security interest on behalf of the Trust and the Indenture Trustee in the event the Servicer receives notice of, or otherwise has actual knowledge of, the fact that such security
interest is not perfected as a result of the relocation of a Financed Vehicle or for any other reason. The Servicer shall not release, in whole or in part, any security interest in a Financed Vehicle created by the related Receivable except as

  

 29 

 
permitted herein or in accordance with its customary standards, policies, practices and procedures. 
  
 SECTION 3.6 Amendment of Receivable Terms. The Servicer shall not
impair in any material respect the rights of the Depositor, the Trust, the Owner Trustee, the Indenture Trustee, the Certificateholders or the Noteholders in the Receivables or, except as permitted under Section 3.2, otherwise amend or alter the
terms of the Receivables if, as a result of such amendment or alteration, the interests of the Depositor, the Trust, the Owner Trustee, the Indenture Trustee, the Certificateholders or the Noteholders hereunder would be materially adversely
affected. 
  
 SECTION 3.7 Purchase by Servicer upon Breach.
The Depositor, the Servicer or the Owner Trustee, as the case may be, shall inform the other parties to this Agreement, the Seller and the Indenture Trustee promptly, in writing, upon the discovery of any breach of Section 3.2, 3.5 or 3.6. If such
breach shall not have been cured by the close of business on the last day of the Collection Period which includes the thirtieth (30th) day after the date on which the Servicer becomes aware of, or receives written notice from the Depositor, the
Seller, or the Owner Trustee of, such breach, and such breach materially and adversely affects the interest of the Trust in a Receivable, the Servicer shall purchase such Receivable from the Trust on the Distribution Date following such Collection
Period; provided, however, that, with respect to a breach of Section 3.2, the Servicer shall purchase the affected Receivable from the Trust at the end of the Collection Period in which such breach occurs. In consideration of the
purchase of a Receivable hereunder, the Servicer shall remit the Purchase Amount of such Receivable in the manner specified in Section 4.5. The sole remedy of the Trust, the Owner Trustee, the Indenture Trustee, the Noteholders and the
Certificateholders with respect to a breach of Section 3.2, 3.5 or 3.6 shall be to require the Servicer to purchase Receivables pursuant to this Section 3.7. Neither the Owner Trustee nor the Indenture Trustee shall have any duty to conduct an
affirmative investigation as to the occurrence of any condition requiring the purchase of any Receivable pursuant to this Section 3.7. 
  
 SECTION 3.8 Servicing Compensation. The Servicer shall receive the Monthly Servicing Fee for servicing the Receivables. The Monthly Servicing Fee
for any Collection Period shall equal the product of one-twelfth (1/12) of the Servicing Rate and the Pool Balance as of the first day of such Collection Period (or, in the case of the initial Collection Period, as of the Cutoff Date). The Servicer
shall pay all expenses incurred by it in connection with its activities hereunder (including the fees and expenses of the Owner Trustee and the Indenture Trustee, including the reasonable fees and expenses of their attorneys, and any custodian
appointed by the Owner Trustee and the Indenture Trustee, the fees and expenses of independent accountants, taxes imposed on the Servicer and expenses incurred in connection with distributions and reports to the Certificateholders and the
Noteholders), except expenses incurred in connection with realizing upon Receivables under Section 3.3. 
  
 SECTION 3.9 Servicer’s Certificate. On or before the Determination Date immediately preceding each Distribution Date, the Servicer shall
deliver to the Depositor, the Seller, the Owner Trustee, the Indenture Trustee and each Paying Agent, with a copy to the Rating Agencies, a certificate of a Servicing Officer substantially in the form of Exhibit A (a “Servicer’s
Certificate”) and attached to a Servicer’s report containing all information necessary 

  

 30 

 
to make the transfers and distributions pursuant to Sections 4.5, 4.6 and 4.7, together with the written statements to be furnished by the Owner Trustee to
the Certificateholders pursuant to Section 4.9 and by the Indenture Trustee to the Noteholders pursuant to Section 4.9 and pursuant to Section 6.6 of the Indenture. The Servicer shall separately identify (by account number) in a written notice to
the Depositor, the Owner Trustee and the Indenture Trustee the Receivables to be repurchased by the Depositor or to be purchased by the Servicer, as the case may be, on the Business Day preceding such Distribution Date, and, upon request of one of
the foregoing parties, each Receivable which became a Defaulted Receivable during the related Collection Period. The Servicer shall deliver to the Rating Agencies any information, to the extent it is available to the Servicer, that the Rating
Agencies reasonably request in order to monitor the Trust. 
  
 SECTION 3.10 Annual Statement as to Compliance; Notice of Event of Servicing Termination. 
  
 (a) On or before May 31 of each year (commencing with the year 2006), the Servicer shall deliver to the Depositor, the Owner Trustee and the Indenture
Trustee an Officer’s Certificate stating, as to the officer signing such Officer’s Certificate, that: 
  
 (i) a review of the activities of the Servicer during the preceding Trust Fiscal Year (or, in the case of the Officer’s Certificate
to be delivered in the year 2006, during the period beginning on the Closing Date and ending on February 28, 2006) and of its performance under this Agreement has been made under such officer’s supervision; and 
  
 (ii) to the best of such officer’s knowledge, based on
such review, the Servicer has fulfilled all its obligations under this Agreement throughout such Trust Fiscal Year (or, in the case of the Officer’s Certificate to be delivered in the year 2006, such period) or, if there has been a default in
the fulfillment of any such obligation, specifying each such default known to such officer and the nature and status thereof. 
  
 Notwithstanding the foregoing, to the extent that the Commission adopts a rule requiring the delivery by the Servicer of an annual report on an assessment
of servicing compliance on the basis of detailed servicing criteria, the delivery of a copy of such report to the Depositor, the Owner Trustee and the Indenture Trustee shall be deemed to satisfy the provisions of this subsection. A copy of such
certificate may be obtained by any Certificateholder by a request in writing to the Owner Trustee, or by any Noteholder or Person certifying that it is a Note Owner by a request in writing to the Indenture Trustee, in either case addressed to the
applicable Corporate Trust Office. Upon the written request of the Owner Trustee, the Indenture Trustee shall promptly furnish the Owner Trustee a list of Noteholders as of the date specified by the Owner Trustee. 
  
 (b) The Servicer shall deliver to the Depositor, the Owner Trustee, the
Indenture Trustee and the Rating Agencies, promptly after having obtained knowledge thereof, but in no event later than five (5) Business Days thereafter, an Officer’s Certificate specifying any event which constitutes or, with the giving of
notice or lapse of time or both, would become an Event of Servicing Termination. 
  

 31 

 SECTION 3.11 Annual Independent Certified Public Accountants’ Reports. On or before May 31 of
each year (commencing with the year 2006), the Servicer shall cause a firm of independent certified public accountants (who may also render other services to the Servicer or its Affiliates) to deliver to the Depositor, the Owner Trustee and the
Indenture Trustee a report addressed to the Board of Directors of the Servicer with respect to the preceding CarMax Fiscal Year (or, in the case of the report to be delivered in the year 2006, with respect to the period beginning on the Closing Date
and ending on February 28, 2006) to the effect that (i) such firm has audited the financial statements of the Servicer and issued its report thereon, (ii) such firm has audited the reports delivered by the Servicer pursuant to Section 3.9 and the
records relating to the servicing of the Receivables and the distributions on the Notes and the Certificates under this Agreement, (iii) such audit was made in accordance with generally accepted auditing standards and (iv) except as described in the
report, such audit disclosed no exceptions or errors in the records relating to motor vehicle loans serviced for others. Such report shall also indicate that the firm is independent with respect to the Depositor, the Seller and the Servicer within
the meaning of the Code of Professional Ethics of the American Institute of Certified Public Accountants. A copy of such report may be obtained by any Certificateholder by a request in writing to the Owner Trustee, or by any Noteholder or Person
certifying that it is a Note Owner by a request in writing to the Indenture Trustee, in either case addressed to the applicable Corporate Trust Office. In the event such firm requires the Indenture Trustee to agree to the procedures performed by
such firm, the Servicer shall direct the Indenture Trustee in writing to so agree, it being understood and agreed that the Indenture Trustee will deliver such letter of agreement in conclusive reliance upon the direction of the Servicer, and the
Indenture Trustee makes no independent inquiry or investigation as to, and shall have no obligation or liability in respect of, the sufficiency, validity or correctness of such procedures. Notwithstanding the foregoing, to the extent that the
Commission adopts a rule requiring the delivery of an annual attestation of a firm of independent public accountants with respect to the assessment of servicing compliance by the Servicer stating, among other things, that the Servicer’s
assessment of compliance with the servicing criteria is fairly stated in all material respects, or the reason why such an opinion cannot be expressed, the delivery of a copy of such attestation to the Depositor, the Owner Trustee and the Indenture
Trustee shall be deemed to satisfy the provisions of this Section. 
  
 SECTION 3.12 Access to Certain Documentation and Information Regarding Receivables. The Servicer shall provide the Depositor, the Owner Trustee, the Indenture Trustee, the Certificateholders and the Noteholders with access to the
Receivable Files in the cases where the Depositor, the Owner Trustee, the Indenture Trustee, the Certificateholders or the Noteholders shall be required by applicable statutes or regulations to have access to such documentation. Such access shall be
afforded without charge, but only upon reasonable request and during normal business hours at the offices of the Servicer. Nothing in this Section 3.12 shall affect the obligation of the Servicer to observe any applicable law prohibiting disclosure
of information regarding the Obligors, and the failure of the Servicer to provide access to information as a result of such obligation shall not constitute a breach of this Section 3.12. Each Certificateholder or Noteholder, by its acceptance of a
Certificate or Note, as the case may be, shall be deemed to have agreed to keep any information obtained by it pursuant to this Section 3.12 confidential, except as may be required by applicable law. 
  

 32 

 SECTION 3.13 Reports to the Commission. The Servicer shall, on behalf of the Trust, cause to be
filed with the Commission any periodic reports required to be filed under the provisions of the Exchange Act, and the rules and regulations of the Commission thereunder. The Servicer shall, or shall cause the Administrator to, prepare, execute and
deliver all certificates and other documents required to be delivered by the Trust pursuant to the Sarbanes-Oxley Act of 2002 or the rules and regulations promulgated thereunder. The Depositor shall, at its expense, cooperate in any reasonable
request made by the Servicer in connection with such filings. The Servicer shall provide or cause to be provided to the Depositor copies of all documents filed by the Servicer after the Closing Date with the Commission pursuant to the Securities Act
of 1933, as amended, or the Securities Act of 1934, as amended, that relate specifically to the Trust, the Notes or the Certificates. 
  
 SECTION 3.14 Reports to Rating Agencies. The Servicer shall deliver to each Rating Agency, at such address as such Rating Agency may request, a
copy of all reports or notices furnished or delivered pursuant to this Article III and a copy of any amendments, supplements or modifications to this Agreement and any other information reasonably requested by such Rating Agency to monitor this
transaction. 
  
 ARTICLE IV 
 DISTRIBUTIONS; RESERVE ACCOUNT; STATEMENTS TO 
 NOTEHOLDERS AND CERTIFICATEHOLDERS 
  
 SECTION 4.1
Accounts. 
  
 (a) The Servicer shall establish, on or
before the Closing Date, and maintain in the name of the Indenture Trustee at an Eligible Institution (which shall initially be the Indenture Trustee) a segregated trust account designated as the Collection Account (the “Collection
Account”). The Collection Account shall be held in trust for the benefit of the Noteholders and the Certificateholders. The Collection Account shall be under the sole dominion and control of the Indenture Trustee; provided,
however, that the Servicer may make deposits to and direct the Indenture Trustee in writing to make withdrawals from the Collection Account in accordance with this Agreement, the Indenture and the Trust Agreement. All monies deposited from
time to time in the Collection Account pursuant to this Agreement shall be held by the Indenture Trustee as part of the Trust Property and shall be applied as provided in this Agreement. All deposits to and withdrawals from the Collection Account
shall be made only upon the terms and conditions of the Transaction Documents. 
  
 If the Servicer is required to remit collections on a daily basis pursuant to the first sentence of Section 4.2, all amounts held in the Collection Account shall, to the extent permitted by applicable law, rules and
regulations, be invested, as directed in writing by the Servicer, by the bank or trust company then maintaining the Collection Account in Permitted Investments that mature not later than the Business Day preceding the Distribution Date following the
Collection Period during which such investment is made. All such Permitted Investments shall be held to maturity. If the Collection Account is no longer to be maintained at the Indenture Trustee, the Servicer shall, with the Indenture Trustee’s
assistance as necessary, promptly (and in any case within ten (10) calendar days or such longer period not to exceed thirty (30) calendar days as to which each Rating Agency shall consent) cause the Collection Account to be moved to an 

  

 33 

 
Eligible Institution. The Servicer shall promptly notify the Indenture Trustee and the Owner Trustee of any change in the account number or location of the
Collection Account. 
  
 (b) The Servicer shall establish, on or
before the Closing Date, and maintain in the name of the Indenture Trustee at an Eligible Institution (which shall initially be the Indenture Trustee) a segregated trust account designated as the Note Payment Account (the “Note Payment
Account”). The Note Payment Account shall be held in trust for the benefit of the Noteholders. The Note Payment Account shall be under the sole dominion and control of the Indenture Trustee; provided, however, that the
Servicer may make deposits to and direct the Indenture Trustee in writing to make withdrawals from the Note Payment Account in accordance with this Agreement and the Indenture. All monies deposited from time to time in the Note Payment Account
pursuant to this Agreement and the Indenture shall be held by the Indenture Trustee as part of the Trust Property and shall be applied as provided in this Agreement and the Indenture. The amounts on deposit in the Note Payment Account shall not be
invested. If the Note Payment Account is no longer to be maintained at the Indenture Trustee, the Servicer shall, with the Indenture Trustee’s assistance as necessary, promptly (and in any case within ten (10) calendar days or such longer
period not to exceed thirty (30) calendar days as to which each Rating Agency may consent) cause the Note Payment Account to be moved to an Eligible Institution. The Servicer shall promptly notify the Indenture Trustee and the Owner Trustee of any
change in the account number or location of the Note Payment Account. 
  
 (c) The Servicer shall establish, on or before the Closing Date, and maintain in the name of the Owner Trustee at an Eligible Institution (which shall initially be the Owner Trustee) a segregated trust account designated as the “CarMax
Auto Owner Trust 2005-1 Trust Account” (the “Certificate Payment Account”). The Certificate Payment Account shall be held in trust for the benefit of the Certificateholders. The Certificate Payment Account shall be under the
sole dominion and control of the Owner Trustee; provided, however, that the Servicer may direct the Indenture Trustee in writing to make deposits to the Certificate Payment Account in accordance with this Agreement and the Indenture
and may direct the Owner Trustee to make withdrawals from the Certificate Payment Account in accordance with this Agreement and the Trust Agreement. All monies deposited from time to time in the Certificate Payment Account pursuant to this Agreement
and the Indenture shall be held by the Owner Trustee as part of the Trust Property and shall be applied as provided in this Agreement and the Trust Agreement. The amounts on deposit in the Certificate Payment Account shall not be invested. If the
Certificate Payment Account is no longer to be maintained at the Owner Trustee, the Servicer shall, with the Owner Trustee’s assistance as necessary, promptly (and in any case within ten (10) calendar days or such longer period not to exceed
thirty (30) calendar days as to which each Rating Agency may consent) cause the Certificate Payment Account to be moved to an Eligible Institution. The Servicer shall promptly notify the Indenture Trustee and the Owner Trustee in writing of any
change in the account number or location of the Certificate Payment Account. 
  
 SECTION 4.2 Collections. The Servicer shall remit to the Collection Account all amounts received by the Servicer on or in respect of the Receivables (including Liquidation Proceeds and all amounts received by
the Servicer in connection with the repossession and sale of a Financed Vehicle (whether or not the related Receivable has been classified as a Defaulted Receivable) but excluding payments with respect to Purchased Receivables) as soon as
practicable and in no event after the close of business on the second Business day after such 

  

 34 

 
receipt; provided, however, that for so long as (i) CarMax is the Servicer, (ii) no Event of Servicing Termination shall have occurred and be
continuing and (iii) the Rating Agency Condition shall have been satisfied (each, a “Monthly Remittance Condition”), the Servicer may remit any such amounts received during any Collection Period to the Collection Account in
immediately available funds on the Business Day preceding the Distribution Date following such Collection Period (it being understood that the Monthly Remittance Condition has not been satisfied as of the Closing Date); provided
further, that if any such amounts (including Liquidation Proceeds and all amounts received by the Servicer in connection with the repossession and sale of a Financed Vehicle (whether or not the related Receivable has been classified as a
Defaulted Receivable)) are received in respect of a Receivable as to which there is an unreimbursed Simple Interest Advance, the Servicer shall retain such amounts to the extent of such unreimbursed Simple Interest Advance (and shall apply the
amount retained to reimburse itself for such unreimbursed Simple Interest Advance) and shall remit the balance of such amounts to the Collection Account; and, provided further, that the Servicer shall, if it determines that it has made
an Unreimbursed Servicer Advance, retain amounts received on or in respect of the Receivables to the extent set forth in Section 4.4(b). The Owner Trustee and the Indenture Trustee shall not be deemed to have knowledge of any event or circumstance
under clause (ii) or (iii) of the definition of Monthly Remittance Condition that would require daily remittance by the Servicer to the Collection Account unless the Owner Trustee or the Indenture Trustee, as applicable, has received notice of such
event or circumstance from the Depositor or the Servicer in an Officer’s Certificate or written notice of such event or circumstance from the Holders of Notes evidencing not less than 25% of the Note Balance of the Controlling Class or unless a
Responsible Officer of the Owner Trustee or the Indenture Trustee, as applicable, has actual knowledge of such event or circumstance. The Servicer shall remit to the Collection Account on the Closing Date all amounts received by the Servicer on or
in respect of the Receivables (including Liquidation Proceeds and all amounts received by the Servicer in connection with the repossession and sale of a Financed Vehicle (whether or not the related Receivable has been classified as a Defaulted
Receivable)) during the period from but excluding the Cutoff Date to and including the second Business Day preceding the Closing Date. 
  
 SECTION 4.3 Application of Collections. For purposes of this Agreement, all amounts received on or in respect of a Receivable during any Collection
Period (including Liquidation Proceeds and all amounts received by the Servicer in connection with the repossession and sale of a Financed Vehicle (whether or not the related Receivable has been classified as a Defaulted Receivable) but excluding
payments with respect to Purchased Receivables) shall be applied by the Servicer, as of the last day of such Collection Period, to interest and principal on such Receivable in accordance with the Simple Interest Method. 
  
 SECTION 4.4 Simple Interest Advances and Unreimbursed Servicer
Advances. 
  
 (a) If, as of the end of any Collection Period,
one or more payments of Monthly P&I due under any Receivable (other than a Defaulted Receivable) outstanding at the end of such Collection Period shall not have been received by the Servicer and remitted to the Collection Account pursuant to
Section 4.2, the Servicer may, at its option, make, on the Business Day preceding the Distribution Date immediately following such Collection Period, a Simple Interest Advance with respect to such Receivable by depositing in or crediting to the

  

 35 

 
Collection Account the amount of Monthly P&I allocable to interest scheduled to have been paid during such Collection Period, assuming that such
Receivable was paid on its due date, minus the amount of Monthly P&I actually received and allocated to interest, if any, with respect to such Receivable during such Collection Period. 
  
 (b) If the Servicer determines that it has made an Unreimbursed Servicer
Advance, the Servicer shall reimburse itself for such Unreimbursed Servicer Advance from unrelated amounts received by the Servicer on or in respect of the Receivables (including Liquidation Proceeds and all amounts received by the Servicer in
connection with the repossession and sale of a Financed Vehicle (whether or not the related Receivable has been classified as a Defaulted Receivable)); provided, however, that the Servicer shall furnish to the Indenture Trustee and the
Owner Trustee, on or before the Distribution Date following the Collection Period during which such reimbursement is taken, a certificate of a Servicing Officer setting forth the basis for such determination, the amount of such Unreimbursed Servicer
Advance, the Receivable with respect to which such Unreimbursed Servicer Advance was made and the installments or other proceeds with respect to which such reimbursement was taken. 
  
 SECTION 4.5 Additional Deposits. The Depositor and the Servicer shall deposit or cause to be deposited in the
Collection Account the aggregate Purchase Amount with respect to Purchased Receivables pursuant to Section 2.4, 3.7 or 9.1. All such deposits with respect to a Collection Period shall be made in immediately available funds no later than 5:00 p.m.,
New York City time, on the Business Day preceding the Distribution Date following such Collection Period. 
  
 SECTION 4.6 Determination Date Calculations; Application of Available Funds; Application of Secondary Reserve Account Draw Amount. 
  
 (a) On each Determination Date, the Servicer shall calculate the following
amounts: 
  
 (i) the Available Collections for
the following Distribution Date; 
  
 (ii) the
Total Servicing Fee for the preceding Collection Period; 
  
 (iii) the Total Note Interest for each Class of Class A Notes for the following Distribution Date; 
  
 (iv) the Priority Principal Distributable Amount for the following Distribution Date; 
  
 (v) the Total Note Interest for the Class B Notes for the
following Distribution Date; 
  
 (vi) the
Secondary Principal Distributable Amount for the following Distribution Date; 
  
 (vii) the Total Note Interest for the Class C Notes for the following Distribution Date; 
  

 36 

 (viii) [RESERVED]; 
  
 (ix) [RESERVED]; 
  

(x) the sum of the amounts described in clauses (ii) through (ix) above (the “Required Payment Amount”); and

  
 (xi) the Regular Principal Distributable
Amount for the following Distribution Date. 
  
 (b) On each
Determination Date, the Servicer shall calculate the following amounts: 
  
 (i) the lesser of (A) the amount, if any, by which the Required Payment Amount for the following Distribution Date exceeds the Available Collections for such Distribution Date and (B) the Reserve Account Amount for
such Distribution Date (before giving effect to any deposits to or withdrawals from the Reserve Account on such Distribution Date) (such lesser amount, the “Reserve Account Draw Amount”); provided, however, that if on
the last day of the preceding Collection Period the Pool Balance is zero, the Reserve Account Draw Amount for such Distribution Date shall equal the Reserve Account Amount for such Distribution Date; 
  
 (ii) the Reserve Account Amount for the following
Distribution Date (after giving effect to the withdrawal of the Reserve Account Draw Amount for such Distribution Date); and 
  
 (iii) the amount, if any, by which the Required Reserve Account Amount for the following Distribution Date exceeds the Reserve Account
Amount for such Distribution Date (after giving effect to the withdrawal of the Reserve Account Draw Amount for such Distribution Date) (such excess, the “Reserve Account Deficiency”). 
  
 On each Distribution Date, the Servicer shall instruct the Indenture Trustee
to transfer the Reserve Account Draw Amount, if any, for such Distribution Date from the Reserve Account to the Collection Account. 
  
 (c) On each Determination Date, the Servicer shall calculate the following amounts: 
  
 (i) the lesser of (A) the Secondary Payment Amount for the following Distribution Date and (B) the Secondary
Reserve Account Amount for such Distribution Date (before giving effect to any deposits to or withdrawals from the Secondary Reserve Account on such Distribution Date) (such lesser amount, the “Secondary Reserve Account Draw
Amount”); provided, however, that if on the last day of the preceding Collection Period the Pool Balance is zero, the Secondary Reserve Account Draw Amount for such Distribution Date shall equal the Secondary Reserve Account
Amount for such Distribution Date; 
  

 37 

 (ii) the Secondary Reserve Account Amount for the following Distribution Date (after
giving effect to the withdrawal of the Secondary Reserve Account Draw Amount for such Distribution Date); and 
  
 (iii) the amount, if any, by which the Required Secondary Reserve Account Amount for the following Distribution Date exceeds the Secondary
Reserve Account Amount for such Distribution Date (after giving effect to the withdrawal of the Secondary Reserve Account Draw Amount for such Distribution Date) (such excess, the “Secondary Reserve Account Deficiency”). 

 
 On each Distribution Date, the Servicer shall instruct the Indenture
Trustee to transfer the Secondary Reserve Account Draw Amount, if any, for such Distribution Date from the Secondary Reserve Account to the Collection Account. 
  

(d) On each Distribution Date, the Servicer shall instruct the Indenture Trustee in writing to apply the Available Funds for such Distribution Date to
make the payments and deposits set forth in Section 2.8(a) of the Indenture. 
  
 (e) On each Determination Date, after calculating the amounts described in Section 4.6(a) and 4.6(b), the Servicer shall calculate the following amounts: 
  
 (i) the portion, if any, of the Total Note Interest for any Class of Class A Notes for the following
Distribution Date which shall not be paid in full through the application of Available Funds on such Distribution Date; 
  
 (ii) if the following Distribution Date is on or after the Class Final Distribution Date for any Class of the Class A Notes, the amount
necessary to reduce the outstanding principal amount of that Class of the Class A Notes to zero after the application of Available Funds on such Distribution Date; 
  
 (iii) the portion, if any, of the Total Note Interest for the Class B Notes for the following Distribution
Date which shall not be paid in full through the application of Available Funds on such Distribution Date; 
  
 (iv) if the following Distribution Date is on or after the Class B Final Distribution Date, the amount necessary to reduce the outstanding
principal amount of the Class B Notes to zero after the application of Available Funds on such Distribution Date; 
  
 (v) the portion, if any, of the Total Note Interest for the Class C Notes for the following Distribution Date which shall not be paid in
full through the application of Available Funds on such Distribution Date; 
  
 (vi) if the following Distribution Date is on or after the Class C Final Distribution Date, the amount necessary to reduce the outstanding principal amount of the Class C Notes to zero after the application of
Available Funds on such Distribution Date; and 
  

 38 

 (vii) the sum of the amounts described in clauses (i) through (vi) above (the
“Secondary Payment Amount”). 
  
 (f) On each
Distribution Date, the Servicer shall instruct the Indenture Trustee in writing to apply the Secondary Reserve Account Draw Amount for such Distribution Date to make the payments and deposits set forth in Section 2.8(i) of the Indenture. 

 
 SECTION 4.7 Reserve Account. 
  
 (a) The Servicer shall establish, on or before the Closing Date, and maintain
in the name of the Indenture Trustee at an Eligible Institution (which shall initially be the Indenture Trustee) a segregated trust account designated as the Reserve Account (the “Reserve Account”). The Reserve Account shall be held
in trust for the benefit of the Noteholders and the Certificateholders. The Reserve Account shall be under the sole dominion and control of the Indenture Trustee; provided, however, that the Servicer may make deposits to and direct the
Indenture Trustee in writing to make withdrawals from the Reserve Account in accordance with this Agreement and the Indenture. On the Closing Date, the Depositor shall deposit the Initial Reserve Account Deposit into the Reserve Account from the net
proceeds of the sale of the Notes. The Reserve Account and all amounts, securities, investments, financial assets and other property deposited in or credited to the Reserve Account (the “Reserve Account Property”) has been conveyed
by the Depositor to the Trust pursuant to Section 2.1. Pursuant to the Indenture, the Trust will pledge all of its right, title and interest in, to and under the Reserve Account and the Reserve Account Property to the Indenture Trustee on behalf of
the Noteholders and the Certificateholders to secure its obligations under the Notes and the Indenture. 
  
 (b) The Reserve Account Property shall, to the extent permitted by applicable law, rules and regulations, be invested, as directed in writing by the
Servicer, by the bank or trust company then maintaining the Reserve Account in Permitted Investments that mature not later than the Business Day preceding the next Distribution Date. All such Permitted Investments shall be held to maturity. All
interest and other income (net of losses and investment expenses) on funds on deposit in the Reserve Account shall, at the written direction of the Servicer, be paid to the Certificateholders, on any Distribution Date to the extent that funds on
deposit therein, as certified by the Servicer, exceed the Required Reserve Account Amount. If the Reserve Account is no longer to be maintained at the Indenture Trustee, the Servicer shall, with the Indenture Trustee’s assistance as necessary,
promptly (and in any case within ten (10) calendar days or such longer period not to exceed thirty (30) calendar days as to which each Rating Agency may consent) cause the Reserve Account to be moved to an Eligible Institution. The Servicer shall
promptly notify the Indenture Trustee and the Owner Trustee in writing of any change in the account number or location of the Reserve Account. 
  
 (c) With respect to any Reserve Account Property: 
  
 (i) any Reserve Account Property that is a “financial asset” (as defined in Section 8-102(a)(9) of the Relevant UCC) shall be
physically delivered to, or credited to an account in the name of, the Eligible Institution maintaining the Reserve Account, in accordance with such institution’s customary procedures such that such institution 

  

 39 

 
establishes a “securities entitlement” in favor of the Indenture Trustee with respect thereto; 
  
 (ii) any Reserve Account Property that is held in deposit
accounts shall be held solely in the name of the Indenture Trustee at one or more depository institutions having the Required Rating and each such deposit account shall be subject to the exclusive custody and control of the Indenture Trustee and the
Indenture Trustee shall have sole signature authority with respect thereto; and 
  
 (iii) except for any deposit accounts specified in clause (ii) above, the Reserve Account shall only be invested in securities or in other
assets which the Eligible Institution maintaining the Reserve Account agrees to treat as “financial assets” (as defined in Section 8-102(a)(9) of the Relevant UCC). 
  
 (d) If any Class of Notes has not been paid in full on any Distribution Date on or after its Final Scheduled Distribution
Date (after giving effect to the distribution of Available Funds and the Secondary Reserve Account Draw Amount on such Distribution Date), the Servicer shall instruct the Indenture Trustee to distribute to the Holders of that Class of Notes, from
amounts on deposit in the Reserve Account, an amount equal to the lesser of (i) the amount on deposit in the Reserve Account and (ii) the outstanding principal amount of that Class of Notes. If the Reserve Account Amount for any Distribution Date
(after giving effect to the withdrawal of the Reserve Account Draw Amount for such Distribution Date and the distribution described in the preceding sentence) exceeds the Required Reserve Account Amount for such Distribution Date, the Servicer shall
instruct the Indenture Trustee in writing to distribute the amount of such excess to the Certificate Payment Account for payment to the Certificateholders. The Indenture Trustee and the Owner Trustee hereby release, on each Distribution Date, their
security interest in, to and under Reserve Account Property distributed to the Certificateholders. 
  
 (e) If the Note Balance, and all other amounts owing or to be distributed hereunder or under the Indenture or the Trust Agreement to the Noteholders, or
the Certificateholders, have been paid in full and the Trust has been terminated, any remaining Reserve Account Property shall be distributed to the Certificateholders. 
  
 SECTION 4.8 Net Deposits. As an administrative convenience, unless the Servicer is required to remit collections on a
daily basis pursuant to the first sentence of Section 4.2, the Depositor and the Servicer may make any remittance pursuant to this Article IV with respect to a Collection Period net of distributions or reimbursements to be made to the Depositor or
the Servicer with respect to such Collection Period; provided, however, that such obligations shall remain separate obligations, no party shall have a right of offset and each such party shall account for all of the above described
remittances and distributions as if the amounts were deposited and/or transferred separately. 
  
 SECTION 4.9 Statements to Noteholders and Certificateholders. On or prior to each Distribution Date, the Servicer shall provide to the Indenture Trustee (with copies to the Depositor, the Rating Agencies and
each Paying Agent), for the Indenture Trustee to forward to each Noteholder of record as of the most recent Record Date and to the Owner Trustee (with copies to the Depositor, the Rating Agencies and each Paying Agent) for the Owner Trustee to

  

 40 

 
forward to each Certificateholder of record as of the most recent Record Date, a statement in substantially the form of Exhibit B or Exhibit C, as
applicable. Each such statement shall set forth at least the following information as to the Notes and the Certificates (to the extent applicable) with respect to the distribution to be made on such Distribution Date: 
  
 (i) the amount of such distribution allocable to principal
for each Class of Notes; 
  
 (ii) the Priority
Principal Distributable Amount for such Distribution Date; 
  
 (iii) the Secondary Principal Distributable Amount for such Distribution Date; 
  
 (iv) [RESERVED]; 
  
 (v) the Regular Principal Distributable Amount for such Distribution Date; 
  
 (vi) the amount of such distribution allocable to current and overdue interest (including any interest on
overdue interest) for each Class of Notes; 
  
 (vii) the Total Servicing Fee for the preceding Collection Period; 
  
 (viii) the aggregate outstanding principal balance of each Class of Notes and the Note Pool Factor with respect to each Class of Notes (in each case after giving effect to payments allocated to principal reported
under clause (i) above); 
  
 (ix) the Pool
Balance as of the close of business on the last day of the preceding Collection Period; 
  
 (x) the Reserve Account Amount on such Distribution Date (after giving effect to all deposits to or withdrawals from the Reserve Account
on such Distribution Date) and the Secondary Reserve Account Amount on such Distribution Date (after giving effect to all deposits to or withdrawals from the Secondary Reserve Account on such Distribution Date); 
  
 (xi) The Reserve Account Draw Amount for such Distribution
Date and the Secondary Reserve Account Draw Amount for such Distribution Date; 
  
 (xii) the aggregate Purchase Amount of Receivables repurchased by the Depositor or purchased by the Servicer, if any, with respect to the
preceding Collection Period; 
  
 (xiii) the
number and aggregate Principal Balance of Receivables that were 31-60 days, 61-90 days or 91 days or more delinquent as of the last day of the preceding Collection Period; 
  
 (xiv) the Net Losses with respect to the preceding Collection Period; 
  

 41 

 (xv) the Overcollateralization Target Amount for such Distribution Date and the amount by
which the Pool Balance exceeds the Note Balance as of such Distribution Date (after giving effect to any payments made to the Holders of the Notes on such Distribution Date); 
  
 (xvi) the amount of Available Collections for the preceding Collection Period; and 
  
 (xvii) the amount of Excess Collections with respect to such
Distribution Date. 
  
 SECTION 4.10 Control of Securities
Accounts. Notwithstanding anything to the contrary contained herein, the Trust agrees that each of the Collection Account, the Note Payment Account, the Certificate Payment Account, the Reserve Account and the Secondary Reserve Account will only
be established at an Eligible Institution that agrees substantially as follows: (i) it will comply with “entitlement orders” (as defined in Section 8-102(a)(8) of the Relevant UCC) relating to such accounts issued by the Indenture Trustee
without further consent by the Trust; (ii) until the termination of the Indenture, it will not enter into any other agreement relating to any such account pursuant to which it agrees to comply with entitlement orders of any Person other than the
Indenture Trustee; and (iii) all assets delivered or credited to it in connection with such accounts and all investments thereof will be promptly credited to such accounts. 
  
 SECTION 4.11 Secondary Reserve Account. 
  
 (a) The Servicer shall establish, on or before the Closing Date, and maintain in the name of the Indenture Trustee at an
Eligible Institution (which shall initially be the Indenture Trustee) a segregated trust account designated as the Secondary Reserve Account (the “Secondary Reserve Account”). The Secondary Reserve Account shall be held in trust for
the benefit of the Noteholders and the Certificateholders. The Secondary Reserve Account shall be under the sole dominion and control of the Indenture Trustee; provided, however, that the Servicer may make deposits to and direct the
Indenture Trustee in writing to make withdrawals from the Secondary Reserve Account in accordance with this Agreement and the Indenture. The Secondary Reserve Account and all amounts, securities, investments, financial assets and other property
deposited in or credited to the Secondary Reserve Account (the “Secondary Reserve Account Property”) has been conveyed by the Depositor to the Trust pursuant to Section 2.1. Pursuant to the Indenture, the Trust will pledge all of
its right, title and interest in, to and under the Secondary Reserve Account and the Secondary Reserve Account Property to the Indenture Trustee on behalf of the Noteholders and the Certificateholders to secure its obligations under the Notes and
the Indenture. 
  
 (b) The Secondary Reserve Account Property
shall, to the extent permitted by applicable law, rules and regulations, be invested, as directed in writing by the Servicer, by the bank or trust company then maintaining the Secondary Reserve Account in Permitted Investments that mature not later
than the Business Day preceding the next Distribution Date. All such Permitted Investments shall be held to maturity. On any Distribution Date, all interest and other income (net of losses and investment expenses) on funds on deposit in the
Secondary 

  

 42 

 
Reserve Account, to the extent that funds on deposit therein, as certified by the Servicer, exceed the Required Secondary Reserve Account Amount, shall, at
the written direction of the Servicer, (i) first, be deposited into the Reserve Account to the extent of any unfunded Reserve Account Deficiency on such Distribution Date (after giving effect to all deposits to and withdrawals from the Reserve
Account on such Distribution Date) and (ii) second, be paid to the Certificateholders. If the Secondary Reserve Account is no longer to be maintained at the Indenture Trustee, the Servicer shall, with the Indenture Trustee’s assistance as
necessary, promptly (and in any case within ten (10) calendar days or such longer period not to exceed thirty (30) calendar days as to which each Rating Agency may consent) cause the Secondary Reserve Account to be moved to an Eligible Institution.
The Servicer shall promptly notify the Indenture Trustee and the Owner Trustee in writing of any change in the account number or location of the Secondary Reserve Account. 
  
 (c) With respect to any Secondary Reserve Account Property: 
  
 (i) any Secondary Reserve Account Property that is a “financial asset” (as defined in Section
8-102(a)(9) of the Relevant UCC) shall be physically delivered to, or credited to an account in the name of, the Eligible Institution maintaining the Secondary Reserve Account, in accordance with such institution’s customary procedures such
that such institution establishes a “securities entitlement” in favor of the Indenture Trustee with respect thereto; 
  
 (ii) any Secondary Reserve Account Property that is held in deposit accounts shall be held solely in the name of the Indenture Trustee at
one or more depository institutions having the Required Rating and each such deposit account shall be subject to the exclusive custody and control of the Indenture Trustee and the Indenture Trustee shall have sole signature authority with respect
thereto; and 
  
 (iii) except for any deposit
accounts specified in clause (ii) above, the Secondary Reserve Account shall only be invested in securities or in other assets which the Eligible Institution maintaining the Secondary Reserve Account agrees to treat as “financial assets”
(as defined in Section 8-102(a)(9) of the Relevant UCC). 
  
 (d)
If any Class of Notes has not been paid in full on any Distribution Date on or after its Class Final Distribution Date (after giving effect to the distribution of Available Funds, the Secondary Reserve Account Draw Amount and any remaining amounts
on deposit in the Reserve Account on such Distribution Date), the Servicer shall instruct the Indenture Trustee to distribute to the Holders of that Class of Notes, from amounts on deposit in the Secondary Reserve Account, an amount equal to the
lesser of (i) the amount on deposit in the Secondary Reserve Account and (ii) the outstanding principal amount of that Class of Notes. If the Secondary Reserve Account Amount for any Distribution Date (after giving effect to the withdrawal of the
Secondary Reserve Account Draw Amount for such Distribution Date and the distribution described in the preceding sentence) exceeds the Required Secondary Reserve Account Amount for such Distribution Date, the Servicer shall instruct the Indenture
Trustee in writing to distribute the amount of such excess (i) first, to the Reserve Account to the extent of any unfunded Reserve Account Deficiency on such Distribution Date (after giving effect to all deposits to and withdrawals from the Reserve
Account on such Distribution Date) and (ii) 

  

 43 

 
second, to the Certificate Payment Account for payment to the Certificateholders. The Indenture Trustee and the Owner Trustee hereby release, on each
Distribution Date, their security interest in, to and under Secondary Reserve Account Property distributed to the Certificateholders. 
  
 (e) If the Note Balance, and all other amounts owing or to be distributed hereunder or under the Indenture or the Trust Agreement to the Noteholders, or
the Certificateholders, have been paid in full and the Trust has been terminated, any remaining Secondary Reserve Account Property shall be distributed to the Certificateholders. 
  
 ARTICLE V 
 [RESERVED] 
  
 ARTICLE VI 
 THE DEPOSITOR 
  
 SECTION 6.1 Representations and Warranties of Depositor. The Depositor makes the following representations and warranties on which the Trust shall
be deemed to have relied in accepting the Trust Property. The representations and warranties speak as of the execution and delivery of this Agreement and shall survive the sale, transfer, assignment and conveyance of the Trust Property to the Trust
pursuant to this Agreement and the pledge of the Trust Property to the Indenture Trustee pursuant to the Indenture: 
  
 (a) Organization and Good Standing. The Depositor has been duly organized and is validly existing as a limited liability company in good standing
under the laws of the State of Delaware, has the power, authority and legal right to own its properties and to conduct its business as such properties are currently owned and such business is currently conducted, and has the power, authority and
legal right to acquire, own and sell the Receivables. 
  
 (b)
Due Qualification. The Depositor is duly qualified to do business as a foreign limited liability company in good standing and has obtained all necessary licenses and approvals in each jurisdiction in which the failure to so qualify or to
obtain such licenses and approvals would, in the reasonable judgment of the Depositor, materially and adversely affect the performance by the Depositor of its obligations under, or the validity or enforceability of, this Agreement, any of the other
Transaction Documents to which the Depositor is a party, the Receivables, the Notes or the Certificates. 
  
 (c) Power and Authority. The Depositor has the power and authority to execute, deliver and perform its obligations under this Agreement and the
other Transaction Documents to which it is a party. The Depositor has the power and authority to sell, assign, transfer and convey the property to be transferred to and deposited with the Trust and has duly authorized such transfer and deposit by
all necessary limited liability company action, and the execution, delivery and performance of this Agreement and the other Transaction Documents to which the Depositor is a party have been duly authorized by the Depositor by all necessary limited
liability company action. 
  
 (d) Valid Transfer; Binding
Obligation. This Agreement effects a valid sale, transfer, assignment and conveyance to the Trust of the Receivables and the other Trust Property enforceable against all creditors of and purchasers from the Depositor. This Agreement and the

  

 44 

 
other Transaction Documents to which the Depositor is a party constitute legal, valid and binding obligations of the Depositor, enforceable against the
Depositor in accordance with their terms, subject, as to enforceability, to applicable bankruptcy, insolvency, reorganization, conservatorship, receivership, liquidation and other similar laws and to general equitable principles. 
  
 (e) No Violation. The execution, delivery and performance by the
Depositor of this Agreement and the other Transaction Documents to which the Depositor is a party, the consummation of the transactions contemplated hereby and thereby and the fulfillment of the terms hereof and thereof will not conflict with,
result in a breach of any of the terms and provisions of or constitute (with or without notice or lapse of time or both) a default under the certificate of formation or limited liability company agreement of the Depositor or any material indenture,
agreement, mortgage, deed of trust or other instrument to which the Depositor is a party or by which the Depositor is bound or to which any of its properties are subject, or result in the creation or imposition of any lien upon any of its properties
pursuant to the terms of any such indenture, agreement, mortgage, deed of trust or other instrument (other than pursuant to this Agreement), or violate any law, order, rule or regulation applicable to the Depositor or its properties of any federal
or state regulatory body, court, administrative agency or other governmental instrumentality having jurisdiction over the Depositor or any of its properties. 
  
 (f) No Proceedings. There are no proceedings or investigations pending or, to the knowledge of the Depositor, threatened against the Depositor
before any court, regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Depositor or its properties (i) asserting the invalidity of this Agreement, the Indenture, the Trust Agreement, any of the
other Transaction Documents, the Notes or the Certificates, (ii) seeking to prevent the issuance of the Notes or the Certificates or the consummation of any of the transactions contemplated by this Agreement, the Indenture, the Trust Agreement or
any of the other Transaction Documents, (iii) seeking any determination or ruling that, in the reasonable judgment of the Depositor, would materially and adversely affect the performance by the Depositor of its obligations under, or the validity or
enforceability of, this Agreement, the Indenture, the Trust Agreement, any of the other Transaction Documents, the Receivables, the Notes or the Certificates, or (iv) that, in the reasonable judgment of the Depositor, would adversely affect the
federal or Applicable Tax State income, excise, franchise or similar tax attributes of the Trust or of the Notes or the Certificates. 
  
 SECTION 6.2 Liability of Depositor; Indemnities. 
  
 (a) The Depositor shall be liable in accordance herewith only to the extent of the obligations specifically undertaken by the Depositor under this
Agreement. 
  
 (b) The Depositor shall indemnify, defend and hold
harmless the Trust, the Owner Trustee and the Indenture Trustee from and against any taxes that may at any time be asserted against any such Person with respect to, and as of the date of, the transfer of the Receivables to the Trust or the issuance
and original sale of the Notes or the Certificates, including any sales, gross receipts, general corporation, tangible personal property, privilege or license taxes (but, in the case of the Trust, not including any taxes asserted with respect to
ownership of the Receivables or federal or other Applicable Tax State income taxes arising out 

  

 45 

 
of the transactions contemplated by this Agreement and the other Transaction Documents), and all costs and expenses in defending against such taxes.

  
 (c) The Depositor shall indemnify, defend and hold harmless
the Trust, the Owner Trustee, the Indenture Trustee, the Noteholders and the Certificateholders from and against any loss, liability or expense incurred by reason of (i) the Depositor’s willful misfeasance, bad faith or gross negligence in the
performance of its duties under this Agreement or any other Transaction Document to which it is a party or by reason of a reckless disregard of its obligations and duties under this Agreement or any other Transaction Document to which it is a party
and (ii) the Depositor’s violation of federal or state securities laws in connection with the registration or the sale of the Notes. 
  
 (d) The Depositor shall indemnify, defend and hold harmless the Owner Trustee and the Indenture Trustee and their respective officers, directors,
employees and agents from and against all costs, expenses, losses, claims, damages and liabilities arising out of or incurred in connection with the acceptance or performance of the trusts and duties contained herein and in the Trust Agreement, in
the case of the Owner Trustee, and in the Indenture, in the case of the Indenture Trustee, except to the extent that such cost, expense, loss, claim, damage or liability (i) shall be due to the willful misfeasance, bad faith or gross negligence
(except for errors in judgment) of the Owner Trustee or the Indenture Trustee, as applicable, (ii) in the case of the Owner Trustee, shall arise from the breach by the Owner Trustee of any of its representations or warranties set forth in the Trust
Agreement, (iii) in the case of the Indenture Trustee, shall arise from the breach by the Indenture Trustee of any of its representations and warranties set forth in the Indenture or (iv) relates to any tax other than the taxes with respect to which
either the Depositor or the Servicer shall be required to indemnify the Owner Trustee or the Indenture Trustee, as applicable. 
  
 (e) The Depositor shall pay any and all taxes levied or assessed upon all or any part of the Owner Trust Estate. 
  
 Indemnification under this Section 6.2 shall survive the resignation or
removal of the Owner Trustee or the Indenture Trustee and the termination of this Agreement and shall include reasonable fees and expenses of counsel and expenses of litigation. If the Depositor shall have made any indemnity payments pursuant to
this Section 6.2 and the Person to or on behalf of whom such payments are made thereafter shall collect any of such amounts from others, such Person shall promptly repay such amounts to the Depositor, without interest. Notwithstanding anything to
the contrary contained herein, the Depositor shall only be required to pay (i) any fees, expenses, indemnities or other liabilities that it may incur under the Transaction Documents from funds available pursuant to, and in accordance with, the
payment priorities set forth in this Agreement and (ii) to the extent the Depositor has additional funds available (other than funds described in the preceding clause (i)) that would be in excess of amounts that would be necessary to pay the debt
and other obligations of the Depositor in accordance with the Depositor’s certificate of formation, operating agreement and all financing documents to which the Depositor is a party. The agreement set forth in the preceding sentence shall
constitute a subordination agreement for purposes of Section 510(a) of the Bankruptcy Code. In addition, no amount owing by the Depositor hereunder in excess of liabilities that it is required to pay in accordance 

  

 46 

 
with the preceding sentence shall constitute a “claim” (as defined in Section 101(5) of the Bankruptcy Code) against it. 
  
 SECTION 6.3 Merger or Consolidation of, or Assumption of the Obligations
of, Depositor. Any Person (i) into which the Depositor shall be merged or consolidated, (ii) resulting from any merger, conversion or consolidation to which the Depositor shall be a party or (iii) that shall succeed by purchase and assumption to
all or substantially all of the business of the Depositor, which Person in any of the foregoing cases executes an agreement of assumption to perform every obligation of the Depositor under this Agreement, shall be the successor to the Depositor
under this Agreement without the execution or filing of any other document or any further act on the part of any of the parties to this Agreement; provided, however, that (x) the Depositor shall have delivered to the Owner Trustee and
the Indenture Trustee an Officer’s Certificate and an Opinion of Counsel each stating that such merger, conversion, consolidation or succession and such agreement of assumption comply with this Section 6.3, (y) the Depositor shall have
delivered to the Owner Trustee and the Indenture Trustee an Opinion of Counsel either (A) stating that, in the opinion of such counsel, all financing statements and continuation statements and amendments thereto have been authorized and filed that
are necessary to fully preserve and protect the interest of the Trust and the Indenture Trustee, respectively, in the Receivables, and reciting the details of such filings or referring to prior Opinions of Counsel in which such details are given, or
(B) stating that, in the opinion of such counsel, no such action shall be necessary to fully preserve and protect such interest and (z) the Rating Agency Condition shall have been satisfied. Notwithstanding anything to the contrary contained herein,
the execution of the foregoing agreement of assumption and compliance with clauses (x), (y) and (z) above shall be conditions to the consummation of the transactions referred to in clauses (i), (ii) and (iii) above. 
  
 SECTION 6.4 Limitation on Liability of Depositor and Others.

  
 (a) Neither the Depositor nor any of the directors, officers,
employees or agents of the Depositor shall be under any liability to the Trust, the Noteholders or the Certificateholders for any action taken or for refraining from the taking of any action pursuant to this Agreement or for errors in judgment;
provided, however, that this provision shall not protect the Depositor or any such Person against any liability that would otherwise be imposed by reason of willful misfeasance or bad faith in the performance of duties or by reason of
reckless disregard of obligations and duties under this Agreement, or by reason of gross negligence in the performance of duties under this Agreement (except for errors in judgment). The Depositor, and its directors, officers, employees and agents,
may rely in good faith on the advice of counsel or on any document of any kind prima facie properly executed and submitted by any Person in respect of any matters arising under this Agreement. 
  
 (b) The Depositor shall not be under any obligation to appear in, prosecute
or defend any legal action that shall not be incidental to its obligations under this Agreement and that in its opinion may involve it in any expense or liability. 
  
 SECTION 6.5 Depositor May Own Notes or Certificates. The Depositor, and any Affiliate of the Depositor, may, in its
individual or any other capacity, become the owner or pledgee of Notes or Certificates with the same rights as it would have if it were not the Depositor 

  

 47 

 
or an Affiliate of the Depositor, except as otherwise expressly provided herein (including in the definitions of “Note Balance”) or in the other
Transaction Documents. Except as otherwise expressly provided herein (including the definition of “Note Balance”) or in the other Transaction Documents, Notes and Certificates so owned by or pledged to the Depositor or such Affiliate shall
have an equal and proportionate benefit under the provisions of this Agreement and the other Transaction Documents, without preference, priority or distinction as among the Notes and the Certificates. 
  
 SECTION 6.6 [RESERVED]. 
  
 SECTION 6.7 Certain Limitations. 
  
 (a) The purpose of the Depositor shall be limited to the conduct or promotion
of the following activities: (i) to acquire, lease, own, hold, sell, transfer, convey, dispose of, pledge, assign, borrow money against, grant a security interest in, finance, refinance or otherwise deal with, publicly or privately and whether with
unrelated third parties or with affiliated entities, automotive installment sale contracts and service contracts originated or acquired by CarMax or its Affiliates or interests therein, the related motor vehicles or interests therein and the related
documentation and monies due or to become due thereunder, proceeds from claims on insurance policies related thereto and all related rights and the proceeds of any of the foregoing (collectively, the “Assets”), (ii) to perform its
obligations under the Basic Documents (as defined in the limited liability company agreement of the Depositor (the “LLC Agreement”)), (iii) to act as settlor or grantor of one or more trusts or special purpose entities (each, a
“Securitization Trust”) formed pursuant to a trust agreement or other agreement, which Securitization Trust may issue one or more series or classes of certificates, bonds, notes or other evidences of interest or indebtedness
(collectively, “Securities”) secured by or representing beneficial interests in the Assets, (iv) to acquire Securities or other property of a Securitization Trust (including remainder interests in collateral or reserve accounts) or
any interest in any of the foregoing, (v) to cause the issuance of, authorize, sell and deliver Securities or other instruments secured or collateralized by Securities, (vi) to own equity interests in other limited liability companies or
partnerships whose purposes are substantially restricted to those described in clauses (i) through (v) above, (vii) to borrow money other than pursuant to clause (i) above, but only to the extent that such borrowing is permitted by the terms of the
transactions contemplated by clauses (i) through (vi) above, (viii) to loan or otherwise invest funds received as a result of the Depositor’s interest in any Securitization Trust or Securities and any other income, as determined by the Member
(as defined in the LLC Agreement) of the Depositor from time to time, and (ix) to (A) negotiate, authorize, execute, deliver or assume or perform the obligations under any agreement, instrument or document relating to the activities set forth in
clauses (i) through (viii) above, including the Basic Documents (as defined in the LLC Agreement) and (B) engage in any lawful act or activity and to exercise any powers permitted to limited liability companies organized under the laws of the State
of Delaware that are incidental to and necessary, convenient or advisable for the accomplishment of the above-mentioned purposes, including the entering into of (x) interest rate or basis swap, cap, floor or collar agreements, currency exchange
agreements or similar hedging transactions, (y) any agreement providing for the funding of any amount due under any of the Securities through direct borrowings, letters of credit, insurance or otherwise and (z) referral, management, servicing and
administration agreements. Capitalized terms used in the following sentence, other than the terms “Depositor” and “LLC Agreement”, have the respective meanings 

  

 48 

 
assigned to them in the LLC Agreement. So long as any Obligation is outstanding, the Depositor shall not (i) except as contemplated in the Basic Documents,
guarantee any obligation of any Person, including any Affiliate, (ii) engage, directly or indirectly, in any business other than the activities required or permitted to be performed under Article Three of the LLC Agreement, the Basic Documents or
Section 4.10 of the LLC Agreement, (iii) incur, create or assume any indebtedness other than as expressly permitted under Article Three of the LLC Agreement, the Basic Documents or Section 4.10 of the LLC Agreement, (iv) make or permit to remain
outstanding any loan or advance to, or own or acquire any stock or securities of, any Person, except that the Depositor may invest in those investments permitted under Article Three of the LLC Agreement, the Basic Documents or Section 4.10 of the
LLC Agreement and may make any advance required or expressly permitted to be made pursuant to any provision of Article Three of the LLC Agreement, the Basic Documents or Section 4.10 of the LLC Agreement and permit the same to remain outstanding in
accordance with such provisions, (v) to the fullest extent permitted by law, engage in any dissolution, liquidation, consolidation, merger, asset sale or transfer of ownership interests other than such activities as are expressly permitted pursuant
to any provision of Article Three of the LLC Agreement, the Basic Documents or Section 4.10 of the LLC Agreement or (vi) except as contemplated by Article Three of the LLC Agreement or the Basic Documents, form, acquire or hold any subsidiary
(whether a corporation, partnership, limited liability company or other entity). 
  
 (b) Notwithstanding any other provision of this Section and any provision of law, the Depositor shall not do any of the following: 
  
 (i) engage in any business or activity other than as set forth in clause (a) above; or 
  
 (ii) without the unanimous written consent of the members of
the Depositor and the members of the Board of Directors of the Depositor (including all independent directors of the Depositor), (A) consolidate or merge the Depositor with or into any Person or sell all or substantially all of the assets of the
Depositor, (B) institute proceedings to have the Depositor be adjudicated bankrupt or insolvent, or consent to the institution of bankruptcy or insolvency proceedings against Depositor, (C) file a petition seeking, or consent to, reorganization or
relief with respect to the Depositor under any applicable federal or state law relating to bankruptcy, (D) consent to the appointment of a receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Depositor or a
substantial part of its property, (E) make any assignment for the benefit of creditors of the Depositor, (F) admit in writing the Depositor’s inability to pay its debts generally as they become due, (G) take any action in furtherance of any
action set forth in clauses (A) through (F) above or (H) to the fullest extent permitted by law, dissolve or liquidate the Depositor. 
  
 (c) The Depositor shall not amend its organizational documents except in accordance with the provisions thereof. 
  

 49 

 ARTICLE VII 
 THE SERVICER 
  
 SECTION 7.1
Representations and Warranties of Servicer. The Servicer makes the following representations and warranties on which the Trust shall be deemed to have relied in accepting the Trust Property. The representations and warranties speak as of the
execution and delivery of this Agreement and shall survive the sale, transfer, assignment and conveyance of the Trust Property to the Trust pursuant to this Agreement and the pledge of the Trust Property to the Indenture Trustee pursuant to the
Indenture: 
  
 (a) Organization and Good Standing. The
Servicer has been duly organized and is validly existing as a limited liability company in good standing under the laws of the state of Delaware, has the power, authority and legal right to own its properties and to conduct its business as such
properties are currently owned and such business is currently conducted and has the power, authority and legal right to acquire, own, sell and service the Receivables and to hold the Receivable Files as custodian on behalf of the Trust. 

 
 (b) Due Qualification. The Servicer is duly qualified to do
business as a foreign limited liability company in good standing and has obtained all necessary licenses and approvals in each jurisdiction in which the failure to so qualify or to obtain such licenses and approvals would, in the reasonable judgment
of the Servicer, materially and adversely affect the performance by the Servicer of its obligations under, or the validity or enforceability of, this Agreement, the Indenture, the Trust Agreement, any of the other Transaction Documents, the
Receivables, the Notes or the Certificates. 
  
 (c) Power and
Authority. The Servicer has the power and authority to execute, deliver and perform its obligations under this Agreement and the other Transaction Documents to which it is a party, and the execution, delivery and performance of this Agreement
and the other Transaction Documents to which the Servicer is a party have been duly authorized by the Servicer by all necessary action. 
  
 (d) Binding Obligation. This Agreement and the other Transaction Documents to which the Servicer is a party constitute legal, valid and binding
obligations of the Servicer, enforceable against the Servicer in accordance with their terms, subject, as to enforceability, to applicable bankruptcy, insolvency, reorganization, conservatorship, receivership, liquidation and other similar laws and
to general equitable principles. 
  
 (e) No Violation. The
execution, delivery and performance by the Servicer of this Agreement and the other Transaction Documents to which the Servicer is a party, the consummation of the transactions contemplated hereby and thereby and the fulfillment of the terms hereof
and thereof will not conflict with, result in a breach of any of the terms and provisions of or constitute (with or without notice or lapse of time or both) a default under the certificate of formation or limited liability company agreement of the
Servicer or any material indenture, agreement, mortgage, deed of trust or other instrument to which the Servicer is a party or by which the Servicer is bound or to which any of its properties are subject, or result in the creation or imposition of
any lien upon any of its properties pursuant to the terms of any such indenture, agreement, mortgage, deed of trust or other instrument, or violate any law, order, rule 

  

 50 

 
or regulation applicable to the Servicer or its properties of any federal or state regulatory body, court, administrative agency or other governmental
instrumentality having jurisdiction over the Servicer or any of its properties. 
  
 (f) No Proceedings. There are no proceedings or investigations pending, or, to the knowledge of the Servicer, threatened, against the Servicer before any court, regulatory body, administrative agency or other
tribunal or governmental instrumentality having jurisdiction over the Servicer or its properties (i) asserting the invalidity of this Agreement, (ii) seeking to prevent the consummation of any of the transactions contemplated by this Agreement or
(iii) seeking any determination or ruling that, in the reasonable judgment of the Servicer would materially and adversely affect the performance by the Servicer of its obligations under, or the validity or enforceability of, this Agreement or the
Receivables. 
  
 (g) Security Interest Matters. The
Servicer has in its possession all original copies of the motor vehicle retail installment sale contracts that constitute or evidence the Receivables. The motor vehicle retail installment sale contracts that constitute or evidence the Receivables do
not have any marks or notations indicating that they have been pledged, assigned or otherwise conveyed to any Person other than the Depositor, the Trust or the Indenture Trustee. 
  
 SECTION 7.2 Liability of Servicer; Indemnities. 
  
 (a) The Servicer shall be liable in accordance herewith only to the extent of the obligations specifically undertaken by the
Servicer under this Agreement. 
  
 (b) The Servicer shall
indemnify, defend and hold harmless the Trust, the Owner Trustee, the Indenture Trustee, the Noteholders, the Certificateholders and the Depositor from and against all costs, expenses, losses, claims, damages and liabilities arising out of or
incurred in connection with the use, ownership or operation by the Servicer or any Affiliate of the Servicer of a Financed Vehicle. 
  
 (c) The Servicer shall indemnify, defend and hold harmless the Trust, the Owner Trustee and the Indenture Trustee from and against any taxes that may at
any time be asserted against any such Person with respect to the transactions contemplated in this Agreement or the other Transaction Documents, including any sales, gross receipts, general corporation, tangible personal property, privilege or
license taxes (but, in the case of the Trust, not including any taxes asserted with respect to, and as of the date of, the transfer of the Receivables to the Trust or the issuance and original sale of the Notes or the Certificates or asserted with
respect to ownership of the Receivables or federal or other Applicable Tax State income taxes arising out of the transactions contemplated by this Agreement and the other Transaction Documents), and all costs and expenses in defending against such
taxes. 
  
 (d) The Servicer shall indemnify, defend and hold
harmless the Trust, the Owner Trustee, the Indenture Trustee, the Noteholders, the Certificateholders and the Depositor from and against any loss, liability or expense incurred by reason of the Servicer’s willful misfeasance, bad faith or gross
negligence in the performance of its duties under this Agreement or any other Transaction Document to which it is a party or by reason of a reckless disregard of 

  

 51 

 
its obligations and duties under this Agreement or any other Transaction Document to which it is a party. 
  
 (e) The Servicer shall indemnify, defend and hold harmless the Owner Trustee
and the Indenture Trustee and their respective officers, directors, employees and agents from and against all costs, expenses, losses, claims, damages and liabilities arising out of or incurred in connection with the acceptance or performance of the
trusts and duties contained herein and in the Trust Agreement, in the case of the Owner Trustee, and in the Indenture, in the case of the Indenture Trustee, except to the extent that such cost, expense, loss, claim, damage or liability (i) shall be
due to the willful misfeasance, bad faith or gross negligence (except for errors in judgment) of the Owner Trustee or the Indenture Trustee, as applicable, (ii) in the case of the Owner Trustee, shall arise from the breach by the Owner Trustee of
any of its representations or warranties set forth in the Trust Agreement, (iii) in the case of the Indenture Trustee, shall arise from the breach by the Indenture Trustee of any of its representations and warranties set forth in the Indenture or
(iv) relates to any tax other than the taxes with respect to which either the Depositor or the Servicer shall be required to indemnify the Owner Trustee or the Indenture Trustee, as applicable. 
  
 (f) For purposes of this Section 7.2, in the event of a termination of the
rights and obligations of CarMax (or any successor Servicer) as Servicer pursuant to Section 8.1 or a resignation by CarMax (or any successor Servicer) as Servicer pursuant to Section 7.6, CarMax (or any successor Servicer) shall be deemed to be the
Servicer pending appointment of a successor Servicer (other than the Indenture Trustee) pursuant to Section 8.2. Indemnification under this Section 7.2 by CarMax (or any successor Servicer) as Servicer, with respect to the period such Person was (or
was deemed to be) the Servicer, shall survive the termination of such Person as Servicer or a resignation by such Person as Servicer as well as the resignation or removal of the Owner Trustee or the Indenture Trustee and the termination of this
Agreement and shall include reasonable fees and expenses of counsel and expenses of litigation and the fees and expenses of the Owner Trustee and the Indenture Trustee. If the Servicer shall have made any indemnity payments pursuant to this Section
7.2 and the Person to or on behalf of whom such payments are made thereafter shall collect any of such amounts from others, such Person shall promptly repay such amounts to the Servicer, without interest. 
  
 SECTION 7.3 Merger or Consolidation of, or Assumption of the Obligations
of, Servicer. Any Person (i) into which the Servicer shall be merged or consolidated, (ii) resulting from any merger, conversion or consolidation to which the Servicer shall be a party or (iii) that shall succeed by purchase and assumption to
all or substantially all of the business of the Servicer, which Person in any of the foregoing cases is an Eligible Servicer and executes an agreement of assumption to perform every obligation of the Servicer under this Agreement, shall be the
successor to the Servicer under this Agreement without the execution or filing of any other document or any further act on the part of any of the parties to this Agreement; provided, however, that (x) the Servicer shall have delivered
to the Depositor, the Owner Trustee and the Indenture Trustee an Officer’s Certificate and an Opinion of Counsel each stating that such merger, conversion, consolidation or succession and such agreement of assumption comply with this Section
7.3 and (y) the Servicer shall have delivered to the Depositor, the Owner Trustee and the Indenture Trustee an Opinion of Counsel either (A) stating that, in the opinion of such counsel, all financing statements and continuation statements and
amendments thereto have been 

  

 52 

 
authorized and filed that are necessary to fully preserve and protect the interest of the Trust and the Indenture Trustee, respectively, in the Receivables,
and reciting the details of such filings or referring to prior Opinions of Counsel in which such details are given, or (B) stating that, in the opinion of such counsel, no such action shall be necessary to fully preserve and protect such interest.
The Servicer shall provide prior written notice of any merger, conversion, consolidation or succession pursuant to this Section 7.3 to the Rating Agencies. Notwithstanding anything to the contrary contained herein, the execution of the foregoing
agreement of assumption and compliance with clauses (x) and (y) above shall be conditions to the consummation of the transactions referred to in clauses (i), (ii) and (iii) above. 
  
 SECTION 7.4 Limitation on Liability of Servicer and Others. 
  
 (a) Neither the Servicer nor any of the directors, officers, employees or
agents of the Servicer shall be under any liability to the Trust, the Noteholders or the Certificateholders for any action taken or for refraining from the taking of any action pursuant to this Agreement or for errors in judgment; provided,
however, that this provision shall not protect the Servicer or any such Person against any liability that would otherwise be imposed by reason of willful misfeasance or bad faith in the performance of duties or by reason of reckless disregard
of obligations and duties under this Agreement, or by reason of negligence in the performance of duties under this Agreement (except for errors in judgment). The Servicer, and its directors, officers, employees and agents, may rely in good faith on
the advice of counsel or on any document of any kind prima facie properly executed and submitted by any Person in respect of any matters arising under this Agreement. 
  
 (b) The Servicer shall not be under any obligation to appear in, prosecute or defend any legal action that shall not be
incidental to its duties to service the Receivables in accordance with this Agreement and that in its opinion may involve it in any expense or liability; provided, however, that the Servicer may undertake any reasonable action that it
may deem necessary or desirable in respect of this Agreement and the rights and duties of the parties to this Agreement and the interests of the Noteholders and the Certificateholders under this Agreement. In such event, the legal expenses and costs
of such action and any liability resulting therefrom shall be expenses, costs and liabilities of the Servicer. 
  
 SECTION 7.5 Delegation of Duties. The Servicer may at any time delegate its duties as servicer under this Agreement to third parties;
provided, however, that no such delegation shall relieve the Servicer of its responsibilities with respect to such duties and the Servicer shall be solely responsible for the fees of any such third party. 
  
 SECTION 7.6 Servicer Not to Resign. Subject to the provisions of
Section 7.3, the Servicer shall not resign from its obligations and duties under this Agreement except (i) upon a determination that the performance of its duties is no longer permissible under applicable law or (ii) upon the appointment of a
successor Servicer and satisfaction of the Rating Agency Condition with respect to such resignation and appointment. Any such determination permitting the resignation of the Servicer shall be evidenced by an Opinion of Counsel to such effect
delivered to the Depositor, the Owner Trustee and the Indenture Trustee. No such resignation shall become effective until the Indenture Trustee or a successor Servicer shall have (i) assumed 

  

 53 

 
the obligations and duties of the Servicer in accordance with Section 8.2 and (ii) become the Administrator under the Administration Agreement pursuant to
Section 20 thereof. 
  
 SECTION 7.7 Servicer May Own Notes or
Certificates. The Servicer, and any Affiliate of the Servicer, may, in its individual or any other capacity, become the owner or pledgee of Notes or Certificates with the same rights as it would have if it were not the Servicer or an Affiliate
of the Servicer, except as otherwise expressly provided herein (including in the definitions of “Note Balance”) or in the other Transaction Documents. Except as otherwise expressly provided herein (including in the definitions of
“Note Balance”) or in the other Transaction Documents, Notes and Certificates so owned by or pledged to the Servicer or such Affiliate shall have an equal and proportionate benefit under the provisions of this Agreement and the other
Transaction Documents, without preference, priority or distinction as among the Notes and the Certificates. 
  
 ARTICLE VIII 
 SERVICING TERMINATION 
  
 SECTION 8.1 Events of Servicing Termination. 
  
 (a) The occurrence of any one of the following events shall constitute an
event of servicing termination hereunder (each, an “Event of Servicing Termination”): 
  
 (i) any failure by the Servicer to deliver to the Owner Trustee or the Indenture Trustee the Servicer’s Certificate for any
Collection Period, which failure shall continue unremedied beyond the earlier of three (3) Business Days following the date such Servicer’s Certificate was required to be delivered and the Business Day preceding the related Distribution Date,
or any failure by the Servicer to make any required payment or deposit under this Agreement, which failure shall continue unremedied beyond the earlier of five (5) Business Days following the date such payment or deposit was due and, in the case of
a payment or deposit to be made no later than a Distribution Date or the Business Day preceding a Distribution Date, such Distribution Date or preceding Business Day, as applicable; or 
  
 (ii) any failure by the Servicer duly to observe or perform in any material respect any other covenant or
agreement in this Agreement, which failure shall materially and adversely affect the rights of the Depositor or the Noteholders and shall continue unremedied for a period of sixty (60) days after the date on which written notice of such failure,
requiring the same to be remedied, shall have been given to the Servicer by the Depositor, the Owner Trustee or the Indenture Trustee or to the Depositor, the Seller, the Servicer, the Owner Trustee and the Indenture Trustee by the Holders of Notes
evidencing not less than 25% of the Note Balance of the Controlling Class; or 
  
 (iii) any representation or warranty of the Servicer made in this Agreement or in any certificate delivered pursuant hereto or in connection herewith, other than any representation and warranty relating to a
Receivable that has been purchased by the Servicer, proving to have been incorrect in any material respect as of the time when the same shall have been made, and the circumstance or condition in respect of which such 

  

 54 

 
representation or warranty was incorrect shall not have been eliminated or otherwise cured for a period of thirty (30) days after the date on which written
notice of such circumstance or condition, requiring the same to be eliminated or cured, shall have been given to the Servicer by the Depositor, the Owner Trustee or the Indenture Trustee or to the Depositor, the Seller, the Servicer, the Owner
Trustee and the Indenture Trustee by the Holders of Notes evidencing not less than 25% of the Note Balance of the Controlling Class; or 
  
 (iv) the entry of a decree or order by a court or agency or supervisory authority of competent jurisdiction for the appointment of a
conservator, receiver, liquidator or trustee for the Servicer in any bankruptcy, insolvency, readjustment of debt, marshalling of assets and liabilities or similar proceeding, or for the winding up or liquidation of its affairs, which decree or
order continues unstayed and in effect for a period of sixty (60) consecutive days; or 
  
 (v) the consent by the Servicer to the appointment of a conservator, receiver, liquidator or trustee in any bankruptcy, insolvency,
readjustment of debt, marshalling of assets and liabilities or similar proceeding of or relating to the Servicer or relating to substantially all of its property, the admission in writing by the Servicer of its inability to pay its debts generally
as they become due, the filing by the Servicer of a petition to take advantage of any applicable bankruptcy, insolvency or reorganization statute, the making by the Servicer of an assignment for the benefit of its creditors or the voluntary
suspension by the Servicer of payment of its obligations. 
  
 If
an Event of Servicing Termination shall have occurred and be continuing, the Indenture Trustee or the Holders of Notes evidencing not less than 51% of the Note Balance of the Controlling Class, in each case by notice then given in writing to the
Depositor and the Servicer (with a copy to the Indenture Trustee and the Owner Trustee if given by the Noteholders), may terminate all of the rights and obligations of the Servicer under this Agreement; provided, however, that the
indemnification obligations of the Servicer under Section 7.2 shall survive such termination. On or after the receipt by the Servicer of such written notice, all authority and power of the Servicer under this Agreement, whether with respect to the
Notes, the Certificates, the Trust Property or otherwise, shall pass to and be vested in the Indenture Trustee or a successor Servicer appointed under Section 8.2 and, without limitation, the Indenture Trustee and the Owner Trustee shall be
authorized and empowered to execute and deliver, on behalf of the Servicer, as attorney-in-fact or otherwise, any and all documents and other instruments, and to do or accomplish all other acts or things necessary or appropriate to effect the
purposes of such notice of termination, whether to complete the transfer and endorsement of the Receivable Files or the certificates of title to the Financed Vehicles or otherwise. The Servicer shall cooperate with the Indenture Trustee, the Owner
Trustee and such successor Servicer in effecting the termination of its responsibilities and rights as Servicer under this Agreement, including the transfer to the Indenture Trustee or such successor Servicer for administration of all cash amounts
that are at the time held by the Servicer for deposit or thereafter shall be received with respect to a Receivable, all Receivable Files and all information or documents that the Indenture Trustee or such successor Servicer may require. In addition,
the Servicer shall transfer its electronic records relating to the Receivables to the successor Servicer in such electronic form as the successor Servicer may reasonably request. All reasonable costs 

  

 55 

 
and expenses (including reasonable attorneys’ fees) incurred or payable by the successor Servicer in connection with the transfer of servicing (whether
due to termination, resignation or otherwise), including allowable compensation of employees and overhead costs incurred or payable in connection with the transfer of the Receivable Files or any amendment to this Agreement required in connection
with the transfer of servicing, (the “Transition Costs”) shall be paid by the outgoing Servicer (or by the initial Servicer if the outgoing Servicer is the Indenture Trustee acting on an interim basis) upon presentation of
reasonable documentation of such costs and expenses. 
  
 (b) The
Indenture Trustee and the Owner Trustee shall have no obligation to notify the Noteholders, the Certificateholders or any other Person of the occurrence of any event specified in Section 8.1(a) prior to the continuance of such event through the end
of any cure period specified in Section 8.1(a). 
  
 SECTION 8.2
Indenture Trustee to Act; Appointment of Successor Servicer. Upon the resignation of the Servicer pursuant to Section 7.6 or the termination of the Servicer pursuant to Section 8.1, the Indenture Trustee shall be the successor in all respects
to the Servicer in its capacity as Servicer under this Agreement and shall be subject to all the obligations and duties placed on the Servicer by the terms and provisions of this Agreement; provided, however, that the Indenture
Trustee, as successor Servicer or as successor Administrator, shall not, in any event, make any Simple Interest Advances pursuant to Section 4.4 and shall have no obligations pursuant to Section 3.8 with respect to the fees and expenses of the Owner
Trustee or the Indenture Trustee, the fees and expenses of the Owner Trustee’s attorneys or the Indenture Trustee’s attorneys, the fees and expenses of any custodian appointed by the Owner Trustee or the Indenture Trustee, the fees and
expenses of independent accountants or expenses incurred in connection with distributions and reports to the Certificateholders or the Noteholders. As compensation therefor, the Indenture Trustee shall be entitled to such compensation (whether
payable out of the Collection Account or otherwise) as the Servicer would have been entitled to under this Agreement if no such resignation or termination had occurred, except that all collections on or in respect of the Receivables shall be
deposited in the Collection Account within two (2) Business Days of receipt and shall not be retained by the Servicer. Notwithstanding the foregoing, the Indenture Trustee may, if it shall be unwilling so to act, or shall, if it is legally unable so
to act, appoint, or petition a court of competent jurisdiction to appoint, an Eligible Servicer as the successor to the terminated Servicer under this Agreement. In connection with such appointment, the Indenture Trustee may make such arrangements
for the compensation of such successor Servicer out of collections on or in respect of the Receivables as it and such successor shall agree; provided, however, that such compensation shall not be greater than that payable to CarMax as
Servicer hereunder without the prior consent of the Holders of Notes evidencing at least 51% of the Note Balance of the Controlling Class. The Indenture Trustee and such successor shall take such action, consistent with this Agreement, as shall be
necessary to effectuate any such succession. The Indenture Trustee shall not be relieved of its duties as successor Servicer under this Section 8.2 until a newly appointed Servicer shall have assumed the obligations and duties of the terminated
Servicer under this Agreement. Notwithstanding anything to the contrary contained herein, in no event shall the Indenture Trustee be liable for any servicing fee or for any differential in the amount of the servicing fee paid hereunder and the
amount necessary to induce any successor Servicer to act as successor Servicer hereunder. 
  

 56 

 SECTION 8.3 Effect of Servicing Transfer. 
  
 (a) After a transfer of servicing hereunder, the Indenture Trustee or
successor Servicer shall notify the Obligors to make directly to the successor Servicer payments that are due under the Receivables after the effective date of such transfer. 
  
 (b) Except as provided in Section 8.2, after a transfer of servicing hereunder, the outgoing Servicer shall have no further
obligations with respect to the administration, servicing, custody or collection of the Receivables and the successor Servicer shall have all of such obligations, except that the outgoing Servicer will transmit or cause to be transmitted directly to
the successor Servicer for its own account, promptly on receipt and in the same form in which received, any amounts or items held by the outgoing Servicer (properly endorsed where required for the successor Servicer to collect any such items)
received as payments upon or otherwise in connection with the Receivables. 
  
 (c) Any successor Servicer shall provide the Depositor with access to the Receivable Files and to the successor Servicer’s records (whether written or automated) with respect to the Receivable Files. Such access
shall be afforded without charge, but only upon reasonable request and during normal business hours at the offices of the successor Servicer. Nothing in this Section 8.3 shall affect the obligation of the successor Servicer to observe any applicable
law prohibiting disclosure of information regarding the Obligors, and the failure of the Servicer to provide access to information as a result of such obligation shall not constitute a breach of this Section 8.3. 
  
 (d) Any transfer of servicing hereunder shall not constitute an assumption by
the related successor Servicer of any liability of the related outgoing Servicer arising out of any breach by such outgoing Servicer of such outgoing Servicer’s duties hereunder prior to such transfer of servicing. 
  
 SECTION 8.4 Notification to Noteholders, Certificateholders and Rating
Agencies. Upon any notice of an Event of Servicing Termination or upon any termination of, or any appointment of a successor to, the Servicer pursuant to this Article VIII, the Indenture Trustee shall give prompt written notice thereof to the
Noteholders and the Owner Trustee shall give prompt written notice thereof to the Certificateholders and to the Rating Agencies. 
  
 SECTION 8.5 Waiver of Past Events of Servicing Termination. The Holders of Notes evidencing not less than 51% of the Note Balance of the
Controlling Class may, on behalf of all Noteholders, waive any Event of Servicing Termination and its consequences, except an event resulting from the failure to make any required deposits to or payments from the Collection Account, the Note Payment
Account, the Certificate Payment Account, the Reserve Account or the Secondary Reserve Account in accordance with this Agreement. Upon any such waiver of an Event of Servicing Termination, such event shall cease to exist, and shall be deemed to have
been remedied for every purpose of this Agreement. No such waiver shall extend to any subsequent or other event or impair any right arising therefrom, except to the extent expressly so waived. 
  

 57 

 SECTION 8.6 Repayment of Advances. If the identity of the Servicer shall change, the predecessor
Servicer shall be entitled to receive reimbursement for outstanding and unreimbursed Simple Interest Advances made pursuant to Section 4.4 by the predecessor Servicer. 
  
 ARTICLE IX 
 TERMINATION 
  
 SECTION 9.1 Optional Purchase of All
Receivables. 
  
 (a) If, as of the last day of any Collection
Period, the Pool Balance shall be less than or equal to 10% of the initial Pool Balance, the Servicer shall have the option to purchase on the following Distribution Date the Owner Trust Estate, other than the Collection Account, the Note Payment
Account, the Certificate Payment Account, the Reserve Account or the Secondary Reserve Account. To exercise such option, the Servicer shall notify the Depositor, the Owner Trustee, the Indenture Trustee and the Rating Agencies no later than ten (10)
days prior to the Distribution Date on which such repurchase is to be effected and shall deposit into the Collection Account on the Business Day preceding such Distribution Date an amount equal to the aggregate Purchase Amount for the Receivables,
plus the appraised value of any other Trust Property, other than the Collection Account, the Note Payment Account, the Certificate Payment Account, the Reserve Account or the Secondary Reserve Account, such value to be determined by an
appraiser mutually agreed upon by the Servicer, the Owner Trustee and the Indenture Trustee; provided, however, that the Servicer shall not be permitted to exercise such option unless the amount to be deposited in the Collection
Account pursuant to this Section 9.1(a) is at least equal to the sum of all amounts due to the Servicer under this Agreement plus the Note Balance plus all accrued but unpaid interest (including any overdue interest) on the Notes
plus all amounts due to the Servicer in any outstanding and unreimbursed Simple Interest Advances and any outstanding and unreimbursed Unreimbursed Servicer Advances. Upon such payment, the Servicer shall succeed to and own all interests in
and to the Trust. The aggregate Purchase Amount for such Distribution Date, plus, to the extent necessary, all amounts in the Reserve Account and Secondary Reserve Account, shall be used to make payments in full to the Noteholders in the
manner set forth in Article IV. 
  
 (b) If, at the time the
Servicer exercises its purchase option hereunder, the Servicer’s long-term unsecured debt has a rating lower than investment grade by the Rating Agencies, the Servicer shall deliver to the Depositor, the Owner Trustee and the Indenture Trustee
on such Distribution Date (i) a letter from an Independent investment bank or an Independent public accountant to the effect that the price paid by the Servicer for the Receivables at the time of transfer pursuant to such purchase option represented
a fair market price for such Receivables or (ii) a letter from the Rating Agencies to the effect that no such letter is required. 
  
 (c) Following the satisfaction and discharge of the Indenture and the payment in full of the principal of and interest on the Notes, the
Certificateholders shall succeed to the rights of the Noteholders hereunder and the Indenture Trustee shall continue to carry out its obligations hereunder with respect to the Certificateholders, including making distributions from the Collection
Account in accordance with Section 4.6(d), making withdrawals from the Reserve 

  

 58 

 
Account in accordance with Sections 4.6(b) and 4.7 and making withdrawals from the Secondary Reserve Account in accordance with Sections 4.6(c) and 4.11.

  
 ARTICLE X 
 MISCELLANEOUS PROVISIONS 
  
 SECTION 10.1 Amendment. 
  
 (a) This Agreement may be amended from time to time by the Depositor, the Servicer and the Owner Trustee, on behalf of the Trust, with the consent of the
Indenture Trustee, but without the consent of any of the Noteholders, to cure any ambiguity, to correct or supplement any provision in this Agreement that may be inconsistent with any other provisions in this Agreement or any offering document used
in connection with the initial offer and sale of the Notes or to add, change or eliminate any other provisions with respect to matters or questions arising under this Agreement that are not inconsistent with the provisions of this Agreement;
provided, however, that (i) no such amendment may materially adversely affect the interests of any Noteholder and (ii) no such amendment will be permitted unless an Opinion of Counsel is delivered to the Depositor, the Owner Trustee
and the Indenture Trustee to the effect that such amendment will not cause the Trust to be characterized for federal income tax purposes as an association taxable as a corporation or otherwise have any material adverse impact on the federal income
taxation of any Notes Outstanding or any Noteholder. 
  
 (b) This
Agreement may also be amended from time to time by the Depositor, the Servicer and the Owner Trustee, on behalf of the Trust, with the consent of the Indenture Trustee and the consent of the Holders of Notes evidencing at least 66 2/3% of the Note
Balance of the Controlling Class, for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Agreement, or of modifying in any manner the rights of the Noteholders; provided,
however, that (x) no such amendment will be permitted unless an Opinion of Counsel is delivered to the Depositor, the Owner Trustee and the Indenture Trustee to the effect that such amendment will not cause the Trust to be characterized for
federal income tax purposes as an association taxable as a corporation or otherwise have any material adverse impact on the federal income taxation of any Notes Outstanding or any Noteholder and (y) that no such amendment may: 
  
 (i) increase or reduce in any manner the amount of, or
accelerate or delay the timing of, or change the allocation or priority of, collections of payments on or in respect of the Receivables or distributions that are required to be made for the benefit of the Noteholders, or change any Note Rate,
without the consent of all Noteholders adversely affected by such amendment; 
  
 (ii) reduce the percentage of the Note Balance of the Controlling Class the consent of the Holders of which is required for any amendment to this Agreement without the consent of all the Noteholders adversely affected
by such amendment; or 
  
 (iii) modify or alter
the definition of the term “Required Reserve Account Amount” or “Required Secondary Reserve Account Amount” without the consent of all the Noteholders adversely affected by such amendment. 
  

 59 

 (c) An amendment to this Agreement shall be deemed not to materially adversely affect the interests of
any Noteholder if (i) the Person requesting such amendment obtains and delivers to the Indenture Trustee and the Owner Trustee an Opinion of Counsel to that effect or (ii) the Rating Agency Condition is satisfied. 
  
 (d) Prior to the execution of any amendment or consent pursuant to Section
10.1, the Servicer shall provide written notification of the substance of such amendment or consent to each Rating Agency. 
  
 (e) Promptly after the execution of any amendment or consent pursuant to Section 10.1(b), the Owner Trustee shall furnish written notification of the
substance of such amendment or consent to each Certificateholder. It shall not be necessary for the consent of the Noteholders pursuant to Section 10.1(b) to approve the particular form of any proposed amendment or consent, but it shall be
sufficient if such consent shall approve the substance thereof. The manner of obtaining such consents (and any other consents of the Noteholders provided for in this Agreement) and of evidencing the authorization of the execution thereof by the
Noteholders shall be subject to such reasonable requirements as the Owner Trustee and the Indenture Trustee may prescribe. 
  
 (f) Prior to the execution of any amendment pursuant to Section 10.1, the Depositor, the Owner Trustee and the Indenture Trustee shall be entitled to
receive and rely upon (i) an Opinion of Counsel stating that the execution of such amendment is authorized or permitted by this Agreement and (ii) an Officer’s Certificate of the Servicer that all conditions precedent provided for in this
Agreement to the execution of such amendment have been complied with. The Owner Trustee or the Indenture Trustee may, but shall not be obligated to, enter into any such amendment which affects such Owner Trustee’s or Indenture Trustee’s
own rights, duties or immunities under this Agreement or otherwise. 
  
 (g) The representations and warranties set forth in Sections 2.3(m), 2.3(n) and Section 7.1(g) may not be amended or waived. 
  
 SECTION 10.2 Protection of Title to Trust. 
  
 (a) The Depositor or the Servicer, or both, shall authorize and file such financing statements and cause to be authorized and filed such continuation
statements, all in such manner and in such places as may be required by law fully to preserve, maintain and protect the interest of the Trust and the Indenture Trustee for the benefit of the Noteholders in the Receivables and the proceeds thereof.
The Depositor or the Servicer, or both, shall deliver (or cause to be delivered) to the Owner Trustee and the Indenture Trustee file-stamped copies of, or filing receipts for, any document filed as provided above as soon as available following such
filing. 
  
 (b) Neither the Depositor nor the Servicer shall
change its name, identity or organizational structure in any manner that would make any financing statement or continuation statement filed by the Depositor or the Servicer in accordance with Section 10.2(a) seriously misleading within the meaning
of Section 9-506 of the Relevant UCC, unless it shall have given the Owner Trustee and the Indenture Trustee at least sixty (60) days’ prior written notice thereof 

  

 60 

 
and shall have promptly filed such amendments to previously filed financing statements or continuation statements or such new financing statements as may be
necessary to continue the perfection of the interest of the Trust and the Indenture Trustee for the benefit of the Noteholders in the Receivables and the proceeds thereof. 
  
 (c) Each of the Depositor and the Servicer shall give the Owner Trustee and the Indenture Trustee at least sixty (60)
days’ prior written notice of any change in its name, identity, organizational structure or jurisdiction of organization or any relocation of its principal place of business or chief executive office if, as a result of such change or
relocation, the applicable provisions of the Relevant UCC would require the filing of any amendment to any previously filed financing statement or continuation statement or of any new financing statement and shall promptly file any such amendment,
continuation statement or new financing statement. The Depositor shall at all times maintain its jurisdiction of organization, its principal place of business and its chief executive office within the United States. The Servicer shall at all times
maintain each office from which it shall service Receivables and each office at which the Receivable Files are located within the United States. 
  
 (d) The Servicer shall maintain accounts and records as to each Receivable accurately and in sufficient detail to permit (i) the reader thereof to know at
any time the status of such Receivable, including payments and recoveries made and payments owing (and the nature of each) and (ii) reconciliation between payments or recoveries on (or with respect to) each Receivable and the amounts from time to
time deposited in the Collection Account, the Reserve Account and the Secondary Reserve Account in respect of such Receivable. 
  
 (e) The Servicer shall maintain its computer systems so that, from and after the time of the transfer of the Receivables to the Trust pursuant to this
Agreement, the Servicer’s master computer records (including any back-up archives) that refer to a Receivable shall indicate clearly and unambiguously the interest of the Trust and the Indenture Trustee in such Receivable and that such
Receivable is owned by the Trust and has been pledged to the Indenture Trustee pursuant to the Indenture. Indication of the Trust’s and the Indenture Trustee’s interest in a Receivable shall be deleted from or modified on the
Servicer’s computer systems when, and only when, such Receivable shall have been paid in full or repurchased by the Depositor or purchased by the Servicer. 
  

(f) If at any time the Depositor or the Servicer shall propose to sell, grant a security interest in or otherwise transfer any interest in any motor
vehicle retail installment sale contract to any prospective purchaser, lender or other transferee, the Servicer shall give to such prospective purchaser, lender or other transferee computer tapes, compact disks, records or print-outs (including any
restored from back-up archives) that, if they shall refer in any manner whatsoever to any Receivable, shall indicate clearly and unambiguously that such Receivable has been sold and is owned by the Trust and has been pledged to the Indenture Trustee
(unless such Receivable has been paid in full or repurchased by the Depositor or purchased by the Servicer). 
  
 (g) The Servicer shall permit the Owner Trustee, the Indenture Trustee and their respective agents at any time during normal business hours to inspect,
audit and make copies of and abstracts from the Servicer’s records regarding any Receivable. 
  

 61 

 (h) If the Depositor has repurchased one or more Receivables from the Trust pursuant to Section 2.4 or
the Servicer has purchased one or more Receivables from the Trust pursuant to Section 3.7, the Servicer shall, upon request, furnish to the Owner Trustee and the Indenture Trustee, within ten (10) Business Days, a list of all Receivables (by
contract number and name of Obligor) then held as part of the Trust, together with a reconciliation of such list to the Receivable Schedule and to each of the Servicer’s Certificates furnished before such request indicating removal of
Receivables from the Trust. 
  
 (i) The Servicer shall deliver to
the Depositor and the Depositor shall deliver to the Owner Trustee and the Indenture Trustee: 
  
 (1) promptly after the authorization and delivery of each amendment to any financing statement, an Opinion of Counsel either (A) stating
that, in the opinion of such counsel, all financing statements and continuation statements have been authorized and filed that are necessary fully to preserve and protect the interest of the Depositor (in the case of an opinion delivered by the
Servicer) or the Trust and the Indenture Trustee (in the case of an opinion delivered by the Depositor) in the Receivables, and reciting the details of such filings or referring to prior Opinions of Counsel in which such details are given, or (B)
stating that, in the opinion of such counsel, no such action shall be necessary to preserve and protect such interest; and 
  
 (2) within ninety (90) days after the beginning of each calendar year (beginning with the year 2006), an Opinion of Counsel, dated as of a
date during such 90-day period, either (A) stating that, in the opinion of such counsel, all financing statements and continuation statements have been authorized and filed that are necessary fully to preserve and protect the interest of the
Depositor (in the case of an opinion delivered by the Servicer) or the Trust and the Indenture Trustee (in the case of an opinion delivered by the Depositor) in the Receivables, and reciting the details of such filings or referring to prior Opinions
of Counsel in which such details are given, or (B) stating that, in the opinion of such counsel, no such action shall be necessary to preserve and protect such interest. 
  
 Each Opinion of Counsel referred to in clause (i)(1) or (i)(2) above shall specify any action necessary (as of the date of
such opinion) to be taken on or before March 31 of the following year to preserve and protect such interest. 
  
 (j) The Depositor shall, to the extent required by applicable law, cause the Notes to be registered with the Commission pursuant to Section 12(b) or
Section 12(g) of the Exchange Act within the time periods specified in such sections. 
  
 SECTION 10.3 GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES UNDER THIS AGREEMENT SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS WITHOUT GIVING EFFECT TO THE CONFLICTS OF LAWS PROVISIONS THEREOF WHICH MAY REQUIRE THE APPLICATION OF THE LAWS OF ANY OTHER 

  

 62 

 
JURISDICTION (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW). 
  
 SECTION 10.4 Notices. All demands, notices and other communications under this Agreement shall be in writing,
personally delivered, sent by telecopier, overnight courier or mailed by certified mail, return receipt requested, and shall be deemed to have been duly given upon receipt (i) in the case of the Depositor, at the following address: 4900 Cox Road,
Suite 200, Glen Allen, Virginia 23060, Attention: Treasurer, (ii) in the case of the Seller or the Servicer, at the following address: 4900 Cox Road, Glen Allen, Virginia 23060, Attention: Treasury Department, (iii) in the case of the Owner Trustee,
at the related Corporate Trust Office, (iv) in the case of the Indenture Trustee, at the related Corporate Trust Office, (v) in the case of Moody’s, at the following address: Moody’s Investors Service, Inc., ABS Monitoring Department, 99
Church Street, New York, New York 10007, and (vi) in the case of Standard & Poor’s, at the following address: Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., 55 Water Street, 43rd Floor, New York,
New York 10041, Attention: Asset Backed Surveillance Department. 
  
 SECTION 10.5 Severability of Provisions. If any one or more of the covenants, agreements, provisions or terms of this Agreement shall be for any reason whatsoever held invalid, then such covenants, agreements, provisions or terms
shall be deemed severable from the remaining covenants, agreements, provisions or terms of this Agreement and shall in no way affect the validity or enforceability of the other provisions of this Agreement, or of the Notes or the Certificates, or
the rights of the Holders thereof. 
  
 SECTION 10.6
Assignment. Notwithstanding anything to the contrary contained herein, except as provided in Sections 7.3 and 8.2 and as provided in the provisions of this Agreement concerning the resignation of the Servicer, this Agreement may not be
assigned by the Depositor or the Servicer without the prior written consent of the Owner Trustee, the Indenture Trustee and the Holders of Notes evidencing not less than 66 2/3% of the Note Balance of the Controlling Class. 
  
 SECTION 10.7 Further Assurances. The Depositor, the Servicer and the
Trust agree to do and perform, from time to time, any and all acts and to authorize and/or execute any and all further instruments required or reasonably requested by the Owner Trustee or the Indenture Trustee more fully to effect the purposes of
this Agreement, including the authorization of any financing statements or continuation statements relating to the Receivables for filing under the provisions of the Relevant UCC of any applicable jurisdiction. 
  
 SECTION 10.8 No Waiver; Cumulative Remedies. No failure to exercise
and no delay in exercising, on the part of the Depositor, the Owner Trustee, the Indenture Trustee, the Noteholders or the Certificateholders, any right, remedy, power or privilege hereunder, shall operate as a waiver thereof, nor shall any single
or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges provided in this
Agreement are cumulative and not exhaustive of any rights, remedies, powers and privileges provided by law. 
  

 63 

 SECTION 10.9 Third-Party Beneficiaries. This Agreement shall inure to the benefit of and be
binding upon the parties hereto, the Owner Trustee, the Noteholders, the Certificateholders and their respective successors and permitted assigns. Except as otherwise provided in this Article X, no other Person shall have any right or obligation
hereunder. The parties hereto hereby acknowledge and consent to the pledge of this Agreement by the Trust to the Indenture Trustee for the benefit of the Noteholders pursuant to the Indenture. 
  
 SECTION 10.10 Actions by Noteholder or Certificateholders. 

 
 (a) Wherever in this Agreement a provision is made that an action may be
taken or a notice, demand or instruction given by the Noteholders or the Certificateholders, such action, notice or instruction may be taken or given by any Noteholder or any Certificateholder, as applicable, unless such provision requires a
specific percentage of the Noteholders or the Certificateholders. 
  
 (b) Any request, demand, authorization, direction, notice, consent, waiver or other act by a Noteholder or a Certificateholder shall bind such Noteholder or Certificateholder and every subsequent Holder of such Note or Certificate issued
upon the registration of transfer thereof or in exchange therefor or in lieu thereof in respect of anything done or omitted to be done by the Owner Trustee, the Indenture Trustee or the Servicer in reliance thereon, whether or not notation of such
action is made upon such Note or Certificate. 
  
 SECTION 10.11
Counterparts. For the purpose of facilitating the execution of this Agreement and for other purposes, this Agreement may be executed simultaneously in any number of counterparts, each of which counterparts shall be deemed to be an original,
and all of which counterparts shall constitute but one and the same instrument. 
  
 SECTION 10.12 No Bankruptcy Petition. The Owner Trustee, the Indenture Trustee, the Trust and the Servicer each covenants and agrees that it will not at any time institute against, or join any other Person in
instituting against, the Depositor or the Trust any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings or other proceedings under any federal or state bankruptcy or similar law. This Section 10.12 shall survive the
resignation or removal of the Owner Trustee under the Trust Agreement and the Indenture Trustee under the Indenture and shall survive the termination of the Trust Agreement and the Indenture. 
  
 SECTION 10.13 Limitation of Liability of Owner Trustee and Indenture
Trustee. 
  
 (a) Notwithstanding anything to the contrary
contained herein, this Agreement has been countersigned by the Owner Trustee not in its individual capacity but solely in its capacity as Owner Trustee of the Trust, and in no event shall the Owner Trustee in its individual capacity have any
liability for the representations, warranties, covenants, agreements or other obligations of the Trust hereunder or in any of the certificates, notices or agreements delivered pursuant hereto, as to all of which recourse shall be had solely to the
assets of the Trust. For all purposes of this Agreement, in the performance of its duties or obligations hereunder or in the performance of any duties or obligations of the Trust hereunder, the Owner Trustee shall be subject to, and entitled to the
benefits of, the terms and provisions of Articles VI, VII and VIII of the Trust Agreement. 
  

 64 

 (b) Notwithstanding anything to the contrary contained herein, this Agreement has been accepted by the
Indenture Trustee not in its individual capacity but solely as Indenture Trustee, and in no event shall the Indenture Trustee in its individual capacity have any liability for the representations, warranties, covenants, agreements or other
obligations of the Trust hereunder or in any of the certificates, notices or agreements delivered pursuant hereto, as to all of which recourse shall be had solely to the assets of the Trust. 
  
 [SIGNATURE PAGES FOLLOW] 
  

 65 

 IN WITNESS WHEREOF, the Trust, the Depositor and the Servicer have caused this Agreement to be duly
executed by their respective officers, thereunto duly authorized, all as of the day and year first above written. 
  

			
	 CARMAX AUTO OWNER TRUST 2005-1

		
	 By:
	 	 THE BANK OF NEW YORK,

	 	 	 not in its individual capacity but solely
 as Owner Trustee

  

			
		
	 By:
	 	 /s/ Anna Bourtman

	 	 	 Name: Anna Bourtman

	 	 	 Title: Assistant Treasurer

  

			
	 CARMAX AUTO FUNDING LLC,
 as Depositor

		
	 By:
	 	 /s/ Thomas W. Reedy

	 	 	 Name: Thomas W. Reedy

	 	 	 Title: Treasurer

  

			
	 CARMAX BUSINESS SERVICES, LLC,
 as Servicer

		
	 By:
	 	 /s/ Keith D. Browning

	 	 	 Name: Keith D. Browning

	 	 	 Title: Chief Financial Officer

  
 Accepted and agreed: 

 
 WELLS FARGO BANK, 
 NATIONAL ASSOCIATION, 
 not in its individual capacity 
 but solely as Indenture Trustee 
  

			
		
	 By:
	 	 /s/ Marianna C. Stershic

	 	 	 Name: Marianna C. Stershic

	 	 	 Title: Vice President

  

 S-1 
 Sale and Servicing Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}]]