Document:

Administration Agreement

 EXHIBIT 10.3 

CARMAX AUTO OWNER TRUST 2014-2, 

as Issuer, 
 CARMAX BUSINESS
SERVICES, LLC, 
 as Administrator, 

and 
 WELLS FARGO BANK, NATIONAL
ASSOCIATION, 
 as Indenture Trustee 
  

 
 ADMINISTRATION
AGREEMENT 
 Dated as of May 1, 2014 
  

 

 ADMINISTRATION AGREEMENT, dated as of May 1, 2014 (as amended, supplemented or otherwise
modified and in effect from time to time, this “Agreement”), by and among CARMAX AUTO OWNER TRUST 2014-2, a Delaware statutory trust (the “Issuer”), CARMAX BUSINESS SERVICES, LLC, a Delaware limited liability
company, as administrator (in such capacity, the “Administrator”), 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”). 
 WHEREAS, the Issuer is issuing 0.19000% Class A-1 Asset-backed Notes, 0.46% Class A-2
Asset-backed Notes, 0.98% Class A-3 Asset-backed Notes, 1.61% Class A-4 Asset-backed Notes, 1.88% Class B Asset-backed Notes, 2.08% Class C Asset-backed Notes and 2.58% Class D Asset-backed Notes (collectively, the
“Notes”) pursuant to the Indenture, dated as of May 1, 2014 (as amended, supplemented or otherwise modified and in effect from time to time, the “Indenture”), between the Issuer and the Indenture Trustee; 

WHEREAS, the Issuer has entered into certain agreements in connection with the issuance of the Notes and the issuance of certain beneficial
interests in the Issuer, including (i) a Sale and Servicing Agreement, dated as of May 1, 2014 (as amended, supplemented or otherwise modified and in effect from time to time, the “Sale and Servicing Agreement”), by and
among the Issuer, CarMax Auto Funding LLC, a Delaware limited liability company, as depositor (in such capacity, the “Depositor”), CarMax Business Services, LLC, as Servicer, and Wells Fargo Bank, National Association, a national
banking association, as Backup Servicer, (ii) a Letter of Representations, dated May 14, 2014 (as amended, supplemented or otherwise modified and in effect from time to time, the “Note Depository Agreement”), by and
between the Issuer and The Depository Trust Company relating to the Notes, and (iii) the Indenture (collectively with the Sale and Servicing Agreement and the Note Depository Agreement, the “Related Agreements”); 

WHEREAS, pursuant to the Related Agreements, the Issuer and U.S. Bank Trust National Association, a national banking association, not in its
individual capacity but solely as owner trustee (in such capacity, the “Owner Trustee”), are required to perform certain duties in connection with (i) the Notes and the collateral pledged to secure the Notes pursuant to the
Indenture (the “Collateral”) and (ii) the beneficial interests in the Issuer; 
 WHEREAS, the Issuer and the Owner
Trustee desire to have the Administrator perform certain of the duties of the Issuer and the Owner Trustee referred to in the preceding clause and to provide such additional services consistent with the terms of this Agreement and the Related
Agreements as the Issuer and the Owner Trustee may from time to time request; and 
 WHEREAS, the Administrator has the capacity to provide
the services required hereby and is willing to perform such services for the Issuer and the Owner Trustee on the terms set forth herein; 

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: 

 SECTION 1. Definitions. All capitalized terms used but not defined in this Agreement shall
have the respective meanings set forth in the Indenture. 
 SECTION 2. Duties of the Administrator. 

(a) Duties with Respect to the Related Agreements. 

(i) The Administrator shall perform all its duties as Administrator under the Note Depository Agreement. In addition, the
Administrator shall consult with the Owner Trustee regarding the duties of the Issuer or the Owner Trustee under the Related Agreements. The Administrator shall monitor the performance of the Issuer and shall advise the Owner Trustee when action is
necessary to comply with the Issuer’s or the Owner Trustee’s duties under the Related Agreements. The Administrator shall prepare for execution by the Issuer or the Owner Trustee, or shall cause the preparation by other appropriate persons
of, all such documents, reports, filings, instruments, certificates and opinions that it shall be the duty of the Issuer or the Owner Trustee to prepare, file or deliver pursuant to the Related Agreements. In furtherance of the foregoing, the
Administrator shall take all appropriate action that the Issuer or the Owner Trustee is obligated to take pursuant to the Indenture, including, without limitation, such of the foregoing as are required with respect to the following matters under the
Indenture (references are to sections of the Indenture): 
 (A) the duty to cause the Note Register to be kept and to give
the Indenture Trustee notice of any appointment of a new Note Registrar and the location, or change in location, of the Note Register (Section 2.5); 

(B) the notification of Noteholders of the final principal payment on their Notes (Section 2.8(g)); 

(C) the preparation of or obtaining of the documents and instruments required for authentication of the Notes and delivery of
the same to the Indenture Trustee (Section 2.2, 2.3, 2.6 and 2.13); 
 (D) the preparation of Definitive Notes in accordance
with the instructions of the Clearing Agency (Section 2.13); 
 (E) the preparation, obtaining or filing of the instruments,
opinions, certificates and other documents required for the release of collateral (Section 2.10); 
 (F) the maintenance of
an office or agency in the Borough of Manhattan, The City of New York, where Notes may be surrendered for registration of transfer or exchange (Section 3.2); 

(G) the duty to cause newly appointed Paying Agents, if any, to deliver to the Indenture Trustee the instrument specified in
the Indenture regarding funds held in trust (Section 3.3); 

  
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 (H) the direction to the Indenture Trustee to deposit monies with Paying Agents,
if any, other than the Indenture Trustee (Section 3.3); 
 (I) the obtaining and preservation of the Issuer’s existence
and qualification to do business in each jurisdiction in which such qualification is or shall be necessary to protect the validity and enforceability of the Indenture, the Notes, the Collateral and each other instrument or agreement included in the
Trust Estate (Section 3.4); 
 (J) the preparation of all supplements and amendments to the Indenture and all financing
statements, continuation statements, instruments of further assurance and other instruments and the taking of such other action as is necessary or advisable to protect the Trust Estate (Section 3.5); 

(K) the duty to use 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 the Indenture and the other Transaction Documents (Section 3.7(a)); 

(L) the delivery of the Opinion of Counsel on the Closing Date and the annual delivery of Opinions of Counsel as to the Trust
Estate, and the annual delivery of the Officer’s Certificate and certain other statements as to compliance with the Indenture (Sections 3.6 and 3.9); 

(M) the identification to the Indenture Trustee in an Officer’s Certificate of a Person with whom the Issuer has
contracted to perform its duties under the Indenture (Section 3.7(b)); 
 (N) the preparation and delivery of written notice
to the Indenture Trustee, the Backup Servicer and the Rating Agencies of an Event of Servicing Termination under the Sale and Servicing Agreement and, if such Event of Servicing Termination arises 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 taking of all reasonable steps available to remedy such failure (Section 3.7(d)); 

(O) the preparation and delivery of written notice to the Depositor, the Indenture Trustee, the Backup Servicer and the Rating
Agencies of any termination of the Servicer’s rights and powers under the Sale and Servicing Agreement and the preparation and delivery of written notice to the Depositor, the Indenture Trustee and the Rating Agencies of the Backup Servicer
becoming the Servicer or any appointment of a Successor Servicer under the Sale and Servicing Agreement (Section 3.7(f)); 

  
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 (P) the duty to cause the Servicer to comply with Sections 3.7, 3.9, 3.10, 3.11,
3.12, 3.13 and 3.14 and Article VII of the Sale and Servicing Agreement (Section 3.14); 
 (Q) the preparation and obtaining
of documents and instruments required for the consolidation or merger of the Issuer (Section 3.10(a)(vi)) or the conveyance or transfer by the Issuer of its properties or assets (Section 3.10(b)); 

(R) the preparation and delivery of written notice to the Indenture Trustee, the Backup Servicer, the Depositor and the Rating
Agencies of each Event of Default under the Indenture, each default by the Depositor, the Servicer or the Backup Servicer under the Sale and Servicing Agreement and each default by the Seller or the Depositor under the Receivables Purchase Agreement
(Section 3.18); 
 (S) upon the request of the Indenture Trustee, the duty to 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 the Indenture (Section 3.20); 

(T) the monitoring of the Issuer’s obligations as to the satisfaction and discharge of the Indenture and the preparation
of an Officer’s Certificate and the obtaining of the Opinion of Counsel and the Independent Certificate (if required) relating thereto (Section 4.1); 

(U) the compliance with any written directive of the Indenture Trustee with respect to the sale of the Trust Estate at one or
more public or private sales called and conducted in any manner permitted by law if an Event of Default shall have occurred and be continuing under the Indenture (Section 5.4); 

(V) the duty to take various lawful actions upon the request of the Indenture Trustee in connection with compelling or securing
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 (Section 5.16); 
 (W) the preparation and delivery of written notice to the Noteholders of
the removal of the Indenture Trustee and the appointment of a successor Indenture Trustee (Section 6.8); 
 (X) the
preparation of any written instruments required to confirm more fully the authority of any co-trustee or separate trustee and any written instruments necessary in connection with the resignation or removal of any co-trustee or separate trustee
(Section 6.10); 

  
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 (Y) the maintenance of the effectiveness of the sales finance company licenses
required under the Maryland Code and the Pennsylvania Motor Vehicle Sales Finance Company Act (Section 3.21); 
 (Z) the
furnishing or causing to be furnished to the Indenture Trustee of the names and addresses of Noteholders during any period when the Indenture Trustee is not the Note Registrar (Section 7.1); 

(AA) the preparation and, after execution by the Issuer, filing with the Commission, any applicable state agencies and the
Indenture Trustee of documents required to be filed on a periodic basis with, and summaries thereof as may be required by the rules and regulations of, the Commission and any applicable state agencies and the transmission of such summaries, as
necessary, to the Noteholders (Section 7.3); 
 (BB) the opening of one or more accounts in the Indenture Trustee’s
name, the preparation and delivery of Issuer Orders, Officer’s Certificates and Opinions of Counsel and all other actions necessary with respect to the investment and reinvestment of funds in the Collection Account and the Reserve Account
(Sections 8.2 and 8.3); 
 (CC) the preparation and delivery of an Issuer Request and Officer’s Certificate and the
obtaining of an Opinion of Counsel and Independent Certificates, if necessary, for the release of the Trust Estate (Sections 8.4 and 8.5); 

(DD) the preparation and delivery of Issuer Orders and the obtaining of an Opinion of Counsel with respect to the execution of
supplemental indentures and the mailing to the Noteholders and the Rating Agencies, as applicable, of notices with respect to such supplemental indentures (Sections 9.1, 9.2 and 9.3); 

(EE) the execution and delivery of new Notes conforming to any supplemental indenture (Section 9.6); 

(FF) the duty to notify Noteholders of redemption of the Notes or to cause the Indenture Trustee to provide such notification
(Section 10.2); 
 (GG) the preparation and delivery of Officer’s Certificates and the obtaining of an Opinion of
Counsel and Independent Certificates, if necessary, with respect to any requests by the Issuer to the Indenture Trustee to take any action under the Indenture (Section 11.1(a), (c), (d) and (e)); 

(HH) the preparation and delivery of Officer’s Certificates and the obtaining of Opinions of Counsel and Independent
Certificates, if necessary, for the release of property from the lien of the Indenture (Section 11.1(e)); 

  
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 (II) the preparation and delivery of written notice to the Rating Agencies, upon
the failure of the Indenture Trustee to give such notification, of the information required pursuant to the Indenture (Section 11.4); 

(JJ) the preparation and delivery to the Indenture Trustee of any agreements with respect to alternate payment and notice
provisions (Section 11.6); and 
 (KK) the recording of the Indenture, if applicable (Section 11.15). 

(ii) The Administrator (but not the Indenture Trustee if it is then acting as successor Administrator) shall: 

(A) pay the Indenture Trustee from time to time such compensation and fees for all services rendered by the Indenture Trustee
under the Indenture as have been agreed to in a separate fee schedule between the Administrator and the Indenture Trustee (which compensation shall not be limited by any provision of law in regard to the compensation of a trustee of an express
trust); 
 (B) except as otherwise expressly provided in the Indenture, reimburse the Indenture Trustee upon its request for
all reasonable expenses, disbursements and advances incurred or made by the Indenture Trustee in accordance with any provision of the Indenture (including the reasonable compensation, expenses and disbursements of its agents and counsel), except any
such expense, disbursement or advance as may be attributable to its negligence or bad faith; 
 (C) indemnify the Indenture
Trustee and its agents for, and hold them harmless against, any loss, liability or expense incurred without negligence or bad faith on their part arising out of or in connection with the acceptance or administration of the transactions contemplated
by the Indenture, including the reasonable costs and expenses of defending themselves against any claim or liability in connection with the exercise or performance of any of their powers or duties under the Indenture; and 

(D) indemnify the Owner Trustee and its agents for, and hold them harmless against, any loss, liability or expense incurred
without negligence or bad faith on their part arising out of or in connection with the acceptance or administration of the transactions contemplated by the Trust Agreement, including the reasonable costs and expenses of defending themselves against
any claim or liability in connection with the exercise or performance of any of their powers or duties under the Trust Agreement. 

  
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 (b) Additional Duties. 

(i) In addition to the duties of the Administrator set forth above, the Administrator (A) shall perform such calculations
and shall prepare or shall cause the preparation by other appropriate persons of, and shall execute on behalf of the Issuer or the Owner Trustee, all such documents, reports, filings, instruments, certificates and opinions that the Issuer or the
Owner Trustee is obligated to prepare pursuant to the Related Agreements or Section 5.5(i), (ii), (iii) or (iv) of the Trust Agreement and (B) at the request of the Owner Trustee, shall take all appropriate action that the Issuer
or the Owner Trustee is obligated to take pursuant to the Related Agreements. In furtherance of the foregoing, the Owner Trustee shall, on behalf of itself and the Issuer, execute and deliver to the Administrator and to each successor Administrator
appointed pursuant to the terms hereof, one or more powers of attorney substantially in the form of Exhibit A hereto, appointing the Administrator the attorney-in-fact of the Owner Trustee and the Issuer for the purpose of executing on behalf of the
Owner Trustee and the Issuer all such documents, reports, filings, instruments, certificates and opinions. Subject to Section 6 of this Agreement, and in accordance with the directions of the Owner Trustee, the Administrator shall administer,
perform or supervise the performance of such other activities in connection with the Collateral (including the Related Agreements) as are not covered by any of the foregoing provisions and as are expressly requested by the Owner Trustee and are
reasonably within the capability of the Administrator. 
 (ii) Notwithstanding anything in this Agreement or the Related
Agreements to the contrary, the Administrator shall be responsible for promptly notifying the Owner Trustee in the event that any withholding tax is imposed on the Issuer’s payments (or allocations of income) to a registered holder of the
beneficial interests in the Issuer as contemplated in Section 5.2(c) of the Trust Agreement. Any such notice shall specify the amount of any withholding tax required to be withheld by the Owner Trustee pursuant to such provision. 

(iii) Notwithstanding anything in this Agreement or the Transaction Documents to the contrary, the Administrator shall be
responsible for performance of the duties of the Issuer or the Owner Trustee set forth in Section 5.5(i), (ii), (iii) and (iv) and Section 5.6(a) of the Trust Agreement with respect to, among other things, accounting and reports
to the beneficial owners of the interests in the Issuer. 
 (iv) To the extent that any tax withholding is required as
contemplated in Section 5.2(c) of the Trust Agreement, the Administrator shall deliver to the Owner Trustee and the Indenture Trustee, on or before February 15, 2015, a certificate of an Authorized Officer in form and substance
satisfactory to the Owner Trustee as to such tax withholding and the procedures to be followed with respect thereto to comply with the requirements of the Code. The Administrator shall update such certificate if any additional tax withholding is
subsequently required or any previously required tax withholding shall no longer be required. 

  
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 (v) The Administrator shall perform the duties of the Administrator specified in
Section 10.2 of the Trust Agreement required to be performed in connection with the resignation or removal of the Owner Trustee, and any other duties expressly required to be performed by the Administrator under the Trust Agreement or any other
Related Agreement. 
 (vi) In carrying out the foregoing duties or any of its other obligations under this Agreement, the
Administrator may enter into transactions or otherwise deal with any of its affiliates; provided, however, that the terms of any such transactions or dealings shall be in accordance with any directions received from the Issuer and
shall be, in the Administrator’s opinion, no less favorable to the Issuer than would be available from unaffiliated parties. 

(vii) The Administrator shall give notice to each Rating Agency of (A) any merger or consolidation of the Owner Trustee
pursuant to Section 10.4 of the Trust Agreement; (B) any merger or consolidation of the Indenture Trustee pursuant to Section 6.9 of the Indenture; (C) any resignation or removal of the Indenture Trustee pursuant to
Section 6.8 of the Indenture; (D) the termination of, and/or appointment of a successor to, the Servicer pursuant to Sections 8.1 or 8.2 of the Sale and Servicing Agreement; (E) any declaration of acceleration of the Notes or
rescission and annulment thereof pursuant to Section 5.2 of the Indenture; (F) any redemption of the Notes pursuant to Section 10.1 of the Indenture; (G) any proposed action pursuant to Section 4.1 of the Trust Agreement;
and (H) any amendment or supplement to the Trust Agreement pursuant to Section 11.1 of the Trust Agreement; in the case of each of (A) through (H), promptly upon the Administrator being notified thereof by the Owner Trustee, the
Indenture Trustee, the Servicer or the Noteholders, as applicable. 
 (c) Non-Ministerial Matters. 

(i) The Administrator shall not take any action with respect to matters that, in the reasonable judgment of the Administrator,
are non-ministerial unless within a reasonable time before the taking of such action the Administrator shall have notified the Issuer of the proposed action and the Issuer shall not have withheld consent, which consent shall not be unreasonably
withheld or delayed, or provided an alternative direction. For the purpose of the preceding sentence, “non-ministerial” matters shall include, without limitation: 

(A) the amendment of or any supplement to the Indenture; 

(B) the initiation of any claim or lawsuit by the Issuer or the compromise of any action, claim or lawsuit brought by or
against the Issuer (other than in connection with the collection of the Receivables or Permitted Investments); 
 (C) the
amendment, change or modification of the Related Agreements; 
 (D) the appointment of successor Note Registrars, successor
Paying Agents or successor Indenture Trustees pursuant to the Indenture, the appointment of successor Administrators or Successor Servicers or the consent to the assignment by the Note Registrar, the Paying Agent or the Indenture Trustee of its
obligations under the Indenture; and 

  
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 (E) the removal of the Indenture Trustee. 

(ii) Notwithstanding anything to the contrary in this Agreement, the Administrator shall not be obligated to, and shall not,
(A) make any payments to the Noteholders under the Related Agreements or (B) take any other action that the Issuer directs the Administrator not to take on its behalf. 

SECTION 3. Records. The Administrator shall maintain appropriate books of account and records relating to services performed hereunder,
which books of account and records shall be accessible for inspection by the Issuer and the Company at any time during normal business hours. 

SECTION 4. Compensation. As compensation for the performance of the Administrator’s obligations under this Agreement, and as
reimbursement for its expenses related thereto, the Administrator shall be entitled to $500 per month, which compensation shall be solely an obligation of the Servicer. 

SECTION 5. Additional Information to be Furnished to the Issuer. The Administrator shall furnish to the Issuer from time to time such
additional information regarding the Collateral as the Issuer may reasonably request. 
 SECTION 6. Independence of the
Administrator. For all purposes of this Agreement, the Administrator shall be an independent contractor and shall not be subject to the supervision of the Issuer or the Owner Trustee with respect to the manner in which it accomplishes the
performance of its obligations hereunder. Unless expressly authorized by the Issuer, the Administrator shall have no authority to act for or represent the Issuer or the Owner Trustee in any way and shall not otherwise be deemed an agent of the
Issuer or the Owner Trustee. 
 SECTION 7. No Joint Venture. Nothing contained in this Agreement (i) shall constitute the
Administrator and either the Issuer or the Owner Trustee as members of any partnership, joint venture, association, syndicate, unincorporated business or other separate entity, (ii) shall be construed to impose any liability as such on any of
them or (iii) shall be deemed to confer on any of them any express, implied or apparent authority to incur any obligation or liability on behalf of the others. 

SECTION 8. Other Activities of Administrator. Nothing contained in this Agreement shall prevent the Administrator or its affiliates
from engaging in other businesses or, in its sole discretion, from acting in a similar capacity as an administrator for any other person or entity even though such person or entity may engage in business activities similar to those of the Issuer,
the Owner Trustee or the Indenture Trustee. 

  
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 SECTION 9. Term of Agreement; Resignation and Removal of Administrator. 

(a) This Agreement shall continue in full force and effect until the dissolution of the Issuer, upon which event this Agreement shall
automatically terminate. 
 (b) Subject to Sections 9(e) and 9(f), the Administrator may resign its duties hereunder by providing the Issuer
with at least sixty (60) days’ prior written notice. 
 (c) Subject to Sections 9(e) and 9(f), the Issuer may remove the
Administrator without cause by providing the Administrator with at least sixty (60) days’ prior written notice; provided, however, that in the event the Servicer is removed as the Servicer pursuant to Section 8.1 of the
Sale and Servicing Agreement following the occurrence of an Event of Servicing Termination, the Servicer shall be simultaneously removed as Administrator hereunder. 

(d) Subject to Sections 9(e) and 9(f), at the sole option of the Issuer, the Issuer may remove the Administrator immediately upon written
notice of termination from the Issuer to the Administrator if any of the following events shall occur and be continuing: 

(i) the Administrator shall default in the performance of any of its duties under this Agreement and, after notice of such
default, shall not cure such default within ten (10) days (or, if such default cannot be cured in such time, shall not give within ten (10) days such assurance of cure as shall be reasonably satisfactory to the Issuer); 

(ii) a court having jurisdiction in the premises shall enter a decree or order for relief, and such decree or order shall not
have been vacated within sixty (60) days, in respect of the Administrator in any involuntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect or appoint a receiver, liquidator, assignee, trustee,
custodian, sequestrator or other similar official for the Administrator or any substantial part of its property or order the winding-up or liquidation of its affairs; or 

(iii) the Administrator shall commence a voluntary case under any applicable bankruptcy, insolvency or other similar law now or
hereafter in effect, shall consent to the entry of an order for relief in an involuntary case under any such law, shall consent to the appointment of a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official for
the Administrator or any substantial part of its property, shall consent to the taking of possession by any such official of any substantial part of its property, shall make any general assignment for the benefit of creditors or shall fail generally
to pay its debts as they become due. 
 If any of the events specified in clauses (ii) or (iii) of this Section 9(d) shall
occur, the Administrator shall give written notice thereof to the Issuer and the Indenture Trustee within seven (7) days after the occurrence of such event. 

(e) No resignation or removal of the Administrator pursuant to Section 9(d) shall be effective until (i) a successor Administrator
shall have been appointed by the Issuer and (ii) such successor Administrator shall have agreed in writing to be bound by the terms of this 

  
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Agreement in the same manner as the Administrator is bound hereunder. In the event that the Indenture Trustee is the successor Administrator, CarMax’s payment obligations pursuant to
Sections 5.16(a) and 6.7(a) of the Indenture shall survive any termination, resignation or removal of CarMax as Administrator. 
 (f) The
appointment of any successor Administrator shall be effective only after satisfaction of the Rating Agency Condition with respect to such appointment. 

(g) Subject to Sections 9(e), 9(f) and 20, the Administrator acknowledges that upon the appointment of a Successor Servicer pursuant to the
Sale and Servicing Agreement the Administrator shall immediately resign and such Successor Servicer shall automatically become the Administrator under this Agreement. 

SECTION 10. Action upon Termination, Resignation or Removal. Promptly upon the effective date of termination of this Agreement pursuant
to Section 9(a), the resignation of the Administrator pursuant to Section 9(b) or the removal of the Administrator pursuant to Section 9(c) or (d), the Administrator shall be entitled to be paid all fees and reimbursable expenses
accruing to it to the date of such termination, resignation or removal. The Administrator shall forthwith upon such termination pursuant to Section 9(a) deliver to the Issuer all property and documents of or relating to the Collateral then in
the custody of the Administrator. In the event of the resignation of the Administrator pursuant to Section 9(b) or the removal of the Administrator pursuant to Section 9(c) or (d), the Administrator shall cooperate with the Issuer and take
all reasonable steps requested by the Issuer to assist the Issuer in making an orderly transfer of the duties of the Administrator. 

SECTION 11. 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 Issuer, to CarMax Auto Owner Trust 2014-2 c/o the Owner Trustee at the
following address: 190 South LaSalle Street, Chicago, Illinois 60603, (ii) in the case of the Administrator, at the following address: 12800 Tuckahoe Creek Parkway, Richmond, Virginia 23238, Attention: Treasury Department, and (iii) in the
case of the Indenture Trustee, at the following address: Sixth and Marquette Avenue, MAC N9311-161, Minneapolis, Minnesota 55479, or, in each case, to such other address as any party shall have provided to the other parties in writing. If CarMax is
no longer the Administrator, the successor Administrator shall provide any notices required to be given to the Rating Agencies to the Depositor, who shall promptly provide such notices to the Rating Agencies. 

SECTION 12. Amendments. This Agreement may be amended from time to time by the Issuer, the Administrator and the Indenture Trustee,
without the consent of any of the Noteholders or the Certificateholders, to cure any ambiguity, to correct or supplement any provision herein that may be inconsistent with any other provision herein or for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this Agreement which will not be inconsistent with other provisions of this Agreement; provided, however, that no such amendment may materially adversely affect the
interests of any Noteholder or any Certificateholder. This Agreement may also be amended from time to time by the Issuer, the Administrator and the Indenture Trustee, with the consent of the Holders of Notes 

  
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evidencing not less than 51% of the Note Balance of the Controlling Class or, if the Notes have been paid in full, the Holders of Certificates evidencing not less than 51% of the aggregate
Certificate Percentage Interest, for the purpose of adding any provisions to, or changing in any manner or eliminating any of the provisions of, this Agreement or modifying in any manner the rights of the Noteholders or the Certificateholders;
provided, however, that no such amendment may: 
 (i) increase or reduce in any manner the amount of, or
accelerate or delay the timing 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 the Certificateholders without the consent of all Noteholders and
Certificateholders adversely affected by such amendment; or 
 (ii) reduce the percentage of the Note Balance or the
percentage of the aggregate Certificate Percentage Interest the consent of the Holders of which is required for any amendment to this Agreement without the consent of all the Noteholders and Certificateholders adversely affected by such amendment.

 An amendment to this Agreement shall be deemed not to materially adversely affect the interests of any Noteholder or Certificateholder if
the Person requesting such amendment obtains and delivers to the Owner Trustee and the Indenture Trustee an Opinion of Counsel to that effect or the Rating Agency Condition is satisfied. Notwithstanding the foregoing, the Administrator may not amend
this Agreement without the consent of the Depositor, which consent shall not be unreasonably withheld. Any amendment to this Agreement that affects the Owner Trustee’s rights, duties, liabilities or immunities under this Agreement, if any,
shall require the prior written consent of the Owner Trustee, which consent shall not be unreasonably withheld. Promptly after the execution of any such amendment, the Administrator shall furnish a copy of such amendment to the Owner Trustee, the
Indenture Trustee and the Rating Agencies. 
 SECTION 13. Successors and Assigns. This Agreement may not be assigned by the
Administrator unless such assignment is previously consented to in writing by the Issuer and the Owner Trustee and the Rating Agency Condition has been satisfied with respect to such assignment. An assignment with such consent and satisfaction, if
accepted by the assignee, shall bind the assignee hereunder in the same manner as the Administrator is bound hereunder. Notwithstanding the foregoing, this Agreement may be assigned by the Administrator without the consent of the Issuer or the Owner
Trustee to a corporation or other organization that is a successor (by merger, consolidation or purchase of assets) to the Administrator; provided, however, that such successor organization executes and delivers to the Issuer, the
Owner Trustee and the Indenture Trustee an agreement in which such corporation or other organization agrees to be bound hereunder by the terms of such assignment in the same manner as the Administrator is bound hereunder. Subject to the foregoing,
this Agreement shall bind any successors or assigns of the parties hereto. 

  
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 SECTION 14. 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 JURISDICTION (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW). 
 SECTION 15.
Counterparts. This Agreement may be executed in two or more counterparts and by different parties on separate counterparts, each of which shall be an original, but all of which together shall constitute but one and the same instrument. 

SECTION 16. Severability. If any provision of this Agreement shall be invalid, illegal or unenforceable, the validity, legality, and
enforceability of the remaining provisions of this Agreement shall not in any way be affected or impaired thereby. 
 SECTION 17. Not
Applicable to CarMax Business Services, LLC in Other Capacities. Nothing in this Agreement shall affect any obligation CarMax Business Services, LLC may have in any other capacity. 

SECTION 18. Limitation of Liability of Owner Trustee and Indenture Trustee. 

(a) Notwithstanding anything contained herein to the contrary, this Agreement has been countersigned by the Owner Trustee not in its individual
capacity but solely in its capacity as Owner Trustee of the Issuer, 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 Issuer
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 Issuer. For all purposes of this Agreement, 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 Articles VI, VII and VIII of the Trust Agreement. 

(b) Notwithstanding anything contained herein to the contrary, this Agreement has been countersigned 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 Issuer 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 Issuer. 

SECTION 19. Third-Party Beneficiary. The Owner Trustee is a third-party beneficiary of this Agreement and is entitled to the rights and
benefits hereunder and may enforce the provisions hereof as if it were a party hereto. 
 SECTION 20. Successor Servicer and
Administrator. The Administrator shall undertake, 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, to
enforce the provisions of such Section 8.1 or Section 8.2 of the Sale and Servicing Agreement, as applicable, with respect to the appointment of a successor Servicer. Such successor Servicer shall, upon compliance with the last sentence of
Section 8.2(a) of the Sale and Servicing Agreement, become the successor Administrator hereunder; provided, however, that if the 

  
 13 

 
Indenture Trustee shall become such successor Administrator, the Indenture Trustee shall not be required to perform any obligations or duties or conduct any activities as successor Administrator
that would be prohibited by law and not within the banking and trust powers of the Indenture Trustee; and, provided further, that the Indenture Trustee as successor Administrator shall not assume any of the obligations specified in
Section 2(a)(ii). In such event, the Indenture Trustee may appoint a sub-administrator to perform such obligations and duties. Any transfer of servicing pursuant to Section 8.2 of the Sale and Servicing Agreement and related succession as
Administrator hereunder shall not constitute an assumption by the related successor Administrator of any liability of the related outgoing Administrator arising out of any breach by such outgoing Administrator of such outgoing Administrator’s
duties hereunder prior to such transfer. 
 SECTION 21. Nonpetition Covenants. 

(a) Notwithstanding any prior termination of this Agreement, the Depositor, the Administrator, the Owner Trustee and the Indenture Trustee
shall not at any time acquiesce, petition or otherwise invoke, or cooperate with or encourage others to acquiesce, petition or otherwise invoke, or cause the Issuer to invoke the process of any court or government authority for the purpose of
commencing or sustaining a case against the Issuer under any federal or state bankruptcy, insolvency or similar law or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of the Issuer or any
substantial part of its property, or ordering the winding up or liquidation of the affairs of the Issuer. 
 (b) Notwithstanding any prior
termination of this Agreement, the Issuer, the Administrator, the Owner Trustee and the Indenture Trustee shall not at any time acquiesce, petition or otherwise invoke, or cooperate with or encourage others to acquiesce, petition or otherwise
invoke, or cause the Depositor to invoke the process of any court or government authority for the purpose of commencing or sustaining a case against the Depositor under any federal or state bankruptcy, insolvency or similar law or appointing a
receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of the Depositor or any substantial part of its property, or ordering the winding up or liquidation of the affairs of the Depositor. 

SECTION 22. Regulation AB. The Administrator shall cooperate in good faith with the Issuer, the Indenture Trustee and the Depositor to
ensure compliance by the Depositor with the provisions of Subpart 229.1100 – Asset-Backed Securities (Regulation AB), 17 C.F.R. §§229.1100-229.1123, as such regulation may be amended, clarified or interpreted from time to time by the
Commission or its staff, and related rules and regulations of the Commission (“Regulation AB”). The Administrator acknowledges that interpretations of the requirements of Regulation AB may change over time, whether due to
interpretive guidance provided by the Commission or its staff, consensus among participants in the asset-backed securities markets, advice of counsel or otherwise. The Administrator shall deliver to the Depositor (including any of its assignees or
designees) upon request any and all reports, statements, certifications, records and other information necessary in the good faith determination of the Depositor to permit the Depositor to comply with the provisions of Regulation AB, together with
such disclosures relating to the Administrator and the Receivables, or the performance of the Administrator’s duties pursuant to this Agreement, reasonably believed by the Depositor to be necessary in order

  
 14 

 
to effect such compliance. Neither the Issuer, the Indenture Trustee nor the Depositor shall request information or disclosures pursuant to this Section 22 other than in good faith, or for
purposes other than compliance with the Securities Act of 1933, as amended (the “Securities Act”), the Exchange Act or the rules and regulations of the Commission under the Securities Act or the Exchange Act. 

[SIGNATURE PAGE FOLLOWS] 

  
 15 

 IN WITNESS WHEREOF, the parties hereto 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 2014-2
	
	By: U.S. BANK TRUST NATIONAL ASSOCIATION,
	not in its individual capacity but solely as Owner Trustee
		
	By:	 	 /s/ Edwin J. Janis

	Name:	 	Edwin J. Janis
	Title:	 	Vice President
	
	WELLS FARGO BANK,
	 NATIONAL ASSOCIATION,
 not in its
individual capacity but solely as Indenture Trustee

		
	By:	 	 /s/ Chad D. Schafer

	Name:	 	Chad D. Schafer
	Title:	 	Vice President
	
	 CARMAX BUSINESS SERVICES, LLC,
 as
Administrator

		
	By:	 	 /s/ Andrew J. McMonigle

	Name:	 	Andrew J. McMonigle
	Title:	 	 Treasurer

  
 Administration Agreement (CAOT 2014-2)

 EXHIBIT A 

POWER OF ATTORNEY 
  

					
	STATE OF                         	 	)	  	
		 	)	  	
	COUNTY OF                    	 	)	  	

 KNOW ALL MEN BY THESE PRESENTS, that U.S. BANK TRUST NATIONAL ASSOCIATION, a national banking association, not
in its individual capacity but solely as owner trustee (the “Owner Trustee”) for CARMAX AUTO OWNER TRUST 2014-2, a Delaware statutory trust (the “Issuer”), does hereby make, constitute and appoint CARMAX BUSINESS
SERVICES, LLC, a Delaware limited liability company (the “Administrator”), as administrator under the Administration Agreement dated as of May 1, 2014 (the “Administration Agreement”), among the Issuer, the
Administrator and Wells Fargo Bank, National Association, a national banking association, as Indenture Trustee, as the same may be amended from time to time, and its agents and attorneys, as attorneys-in-fact to execute on behalf of the Owner
Trustee or the Issuer all such documents, reports, filings, instruments, certificates and opinions as the Owner Trustee or the Issuer is obligated to prepare, file or deliver pursuant to the Related Agreements or pursuant to Section 5.5(i),
(ii), (iii) or (iv) of the Trust Agreement, including, without limitation, to appear for and represent the Owner Trustee and the Issuer in connection with the preparation, filing and audit of federal, state and local tax returns pertaining
to the Issuer, and with full power to perform any and all acts associated with such returns and audits that the Owner Trustee could perform, including without limitation, the right to distribute and receive confidential information, defend and
assert positions in response to audits, initiate and defend litigation, and to execute waivers of restrictions on assessments of deficiencies, consents to the extension of any statutory or regulatory time limit and settlements. All powers of
attorney for this purpose heretofore filed or executed by the Owner Trustee are hereby revoked. All capitalized terms used but not defined in this power of attorney shall have the respective meanings set forth in the Administration Agreement. 

  
 Ex. A-1 

 EXECUTED this 14th day of May, 2014. 

 

			
	 U.S. BANK TRUST NATIONAL ASSOCIATION,

not in its individual capacity but solely as Owner Trustee

		
	By:	 	  

	Name:	 	
	Title:	 	

  

					
	
STATE OF                       
  
	 	)	  	
		 	 ) ss. :
	  	
	
COUNTY OF                    
	 	)	  	

 BEFORE ME, the undersigned authority, a Notary Public in and for said county and state, on this day personally
appeared             , known to me to be the person and officer whose name is subscribed to the foregoing instrument, and acknowledged to me that the same was the act of U.S. BANK TRUST
NATIONAL ASSOCIATION, a national banking association, and that said person executed the same for the purpose and consideration therein expressed, and in the capacities therein stated. 

GIVEN UNDER MY HAND AND SEAL OF OFFICE, this 14th day of May, 2014. 

 

			
	  
	 	
	Notary Public in and for	 	
	the State of                     	 	

 [SEAL] 
 My commission
expires:                      

  
 Ex. A-2EX-10.1

 Exhibit 10.1 

UNITED SECURITY BANCSHARES, INC. 

2013 INCENTIVE PLAN 

NONQUALIFIED STOCK OPTION AGREEMENT 

This Nonqualified Stock Option Agreement (this “Agreement”) is made and entered into as of [DATE] by and between
UNITED SECURITY BANCSHARES, INC., a Delaware corporation (the “Company”) and [PARTICIPANT NAME] (the “Participant”). 

Grant Date:
                                         
                                         
         
 Exercise Price per Share:
                                         
                            

Number of Option Shares:
                                         
                          

Expiration Date:
                                         
                                         

 1. Grant of Option. 
 1.1 Grant;
Type of Option. The Company hereby grants to the Participant an option (the “Option”) to purchase the total number of shares of Common Stock of the Company equal to the number of Option Shares set forth above, at the Exercise
Price set forth above. The Option is granted pursuant to the terms of the United Security Bancshares, Inc. 2013 Incentive Plan (the “Plan”). The Option is intended to be a Nonqualified Stock Option and not an Incentive Stock
Option within the meaning of Section 422 of the Internal Revenue Code. 
 1.2 Subject to Plan. The grant of the Option is
subject to the terms and conditions of the Plan. Capitalized terms used but not defined herein shall have the meaning ascribed to them in the Plan. 
 2.
Exercise Period; Vesting. 
 2.1 Vesting Schedule. The Option shall become vested and exercisable with respect to [NUMBER]
shares on [VESTING SCHEDULE] until the Option is 100% vested. The unvested portion of the Option shall not be exercisable on or after the Participant’s termination of Continuous Service. Notwithstanding anything in this Agreement to the
contrary, the Committee may, in its sole discretion, accelerate the time at which the Option may first be exercised or the time during which an Award or any part thereof shall vest. 

2.2 Expiration. The Option shall expire on the Expiration Date set forth above, or earlier as provided in this Agreement or the Plan.

 3. Termination of Continuous Service. 

3.1 Termination for Reasons Other Than Cause, Disability, Death or Retirement. If the Participant’s Continuous Service is
terminated for any reason other than Cause, Disability, death or retirement, the Participant may exercise the vested portion of the Option, but only within such period of time ending on the earlier of (a) the date three months following the
termination of the Participant’s Continuous Service or (b) the Expiration Date. 
 3.2 Termination for Cause. If the
Participant’s Continuous Service is terminated for Cause, the Option (whether vested or unvested) shall immediately terminate and cease to be exercisable. 

3.3 Termination Due to Disability. If the Participant’s Continuous Service terminates as a result of the Participant’s
Disability, the Participant (or, in the event that the Disability is caused by the Participant’s incapacity, the Participant’s personal representative) may exercise the vested portion of the Option, but only within such period of time
ending on the earlier of (a) the date 12 months following the Participant’s termination of Continuous Service or (b) the Expiration Date. 

3.4 Termination Due to Death. If the Participant’s Continuous Service terminates as a result of the Participant’s death, the
vested portion of the Option may be exercised by the Participant’s estate, by a person who acquired the right to exercise the Option by bequest or inheritance or by the person designated pursuant to Section 6 hereof to exercise the Option
upon the Participant’s death, but only within the time period ending on the earlier of (a) the date 12 months following the Participant’s termination of Continuous Service or (b) the Expiration Date. 

3.5 Termination Due to Retirement. If the Participant’s Continuous Service terminates as a result of the Participant’s
retirement, the Participant may exercise the vested portion of the Option at any time until the Expiration Date. For purposes of this Agreement, “retirement” shall mean the termination of Participant’s Continuous Service upon
retirement at age 65 or later in accordance with the policies of the Company. 
 3.6 Extension of Termination Date. If following the
Participant’s termination of Continuous Service for any reason the exercise of the Option is prohibited because the exercise of the Option would violate the registration requirements under the Securities Act or any other state or federal
securities law or the rules of any securities exchange or interdealer quotation system, then the Option shall terminate on the earlier of (a) the Expiration Date or (b) the expiration of a period after termination of the Participant’s
Continuous Service that is three (3) months after the end of the period during which the exercise of the Option would be in violation of such registration or other securities law requirements. 

4. Manner of Exercise. 
 4.1 Election
to Exercise. To exercise the Option, the Participant (or in the case of exercise after the Participant’s death or incapacity, the Participant’s executor, administrator, heir, legatee or personal representative, as the case may be) must
deliver to the Company an executed stock option exercise agreement in such form as is approved by the Committee from time to time (the “Exercise Agreement”), which shall set forth, inter alia: 

(a) the Participant’s election to exercise the Option; 

  
 2 

 (b) the number of shares of Common Stock being purchased; 

(c) any restrictions imposed on the shares; and 

(d) any representations, warranties and agreements regarding the Participant’s investment intent and access to information as may be
required by the Company to comply with applicable securities laws. 
 If someone other than the Participant exercises the Option, then such
person must submit documentation reasonably acceptable to the Company verifying that such person has the legal right to exercise the Option. 

4.2 Payment of Exercise Price. The entire Exercise Price of the Option shall be payable in full at the time of exercise to the extent
permitted by applicable statutes and regulations, either: 
 (a) in cash or by certified or bank check at the time the Option is exercised;
or 
 (b) upon the following terms, if approved by the Committee in its discretion: 

 

	 	(i)	by delivery to the Company of other shares of Common Stock, held by the Participant for at least six (6) months (or such longer or shorter period of time required to avoid a charge to earnings for financial
accounting purposes) and duly endorsed for transfer to the Company, with a Fair Market Value on the date of delivery equal to the Exercise Price (or portion thereof) due for the number of shares being acquired, or by means of attestation whereby the
Participant identifies for delivery specific shares of Common Stock that the Participant has held for more than six (6) months (or such longer or shorter period of time required to avoid a charge to earnings for financial accounting purposes)
and that have an aggregate Fair Market Value on the date of attestation equal to the Exercise Price (or portion thereof) and receives a number of shares of Common Stock equal to the difference between the number of shares thereby purchased and the
number of identified attestation shares of Common Stock (a “Stock for Stock Exchange”);  

  

	 	(ii)	through a “cashless exercise program” established with a broker; 

  

	 	(iii)	by reduction in the number of shares of Common Stock otherwise deliverable upon exercise of such Option with a Fair Market Value equal to the aggregate Exercise Price at the time of exercise; 

 

	 	(iv)	by any combination of the foregoing methods; or 

  

	 	(v)	in any other form of legal consideration that may be acceptable to the Committee. 

 4.3
Withholding. Prior to the issuance of shares upon the exercise of the Option, the Participant must make arrangements satisfactory to the Company to pay or provide for any applicable federal, state and local withholding obligations of the
Company. The Participant may satisfy any federal, state or local tax withholding obligation relating to the exercise of the Option by any of the following means: 

(a) tendering a cash payment; 

  
 3 

 (b) authorizing the Company to withhold shares of Common Stock from the shares of Common
Stock otherwise issuable to the Participant as a result of the exercise of the Option; provided, however, that no shares of Common Stock are withheld with a value exceeding the minimum amount of tax required to be withheld by law; or

 (c) delivering to the Company previously owned and unencumbered shares of Common Stock. 

In addition, the Company has the right to withhold any amounts described in this Section from any compensation paid to the Participant, subject to
Section 409A of the Code. 
 4.4 Issuance of Shares. Provided that the Exercise Agreement and payment are in form and substance
satisfactory to the Company, the Company shall within a reasonable time thereafter issue the shares of Common Stock registered in the name of the Participant, the Participant’s authorized assignee, or the Participant’s legal
representative, and shall deliver certificates representing the shares with the appropriate legends affixed thereto, or otherwise cause the shares of Common Stock registered in the name of the Participant to be recorded in the Company’s
book-entry system maintained by the Company’s transfer agent. No fractional shares of Common Stock shall be issued or delivered pursuant to the exercise of the Option. The Committee shall determine whether cash, additional Awards or other
securities or property shall be issued or paid in lieu of fractional shares of Common Stock or whether any fractional shares should be rounded, forfeited or otherwise eliminated. 

5. No Right to Continued Employment; No Rights as Shareholder. Neither the Plan nor this Agreement shall confer upon the Participant any right to be
retained in any position, including as an Employee, Consultant or Director of the Company or any Affiliate of the Company. Further, nothing in the Plan or this Agreement shall be construed to limit the discretion of the Company to terminate the
Participant’s Continuous Service at any time, with or without Cause. The Participant shall not have any rights as a shareholder with respect to any shares of Common Stock subject to the Option prior to the date of exercise of the Option,
including, but not limited to, with respect to any dividends or other distributions for which the record date is prior to the date on which the Option is exercised. 

6. Transferability. Except as otherwise provided in this Agreement or the Plan, the Option is not transferable by the Participant other than by will or
by applicable laws of descent and distribution and, during the lifetime of the Participant, shall be exercisable only by the Participant. No assignment or transfer of the Option, or the rights represented thereby, whether voluntary or involuntary,
by operation of law or otherwise (except as otherwise provided in this Agreement or the Plan) shall vest in the assignee or transferee any interest or right herein whatsoever, but immediately upon such assignment or transfer the Option shall
terminate and become of no further effect. Notwithstanding the foregoing, an Option may, in the sole discretion of the Committee, be transferrable to a Permitted Transferee upon written approval by the Committee. In addition, the Participant may, by
delivering written notice to the Company in a form satisfactory to the Company, designate a third party who, in the event of the death of the Participant, shall thereafter be entitled to exercise the Option. 

  
 4 

 7. Change in Control. 

7.1 Acceleration of Vesting. In the event of a Change in Control, notwithstanding any provision of the Plan or this Agreement to the
contrary, the Option shall become immediately vested and exercisable with respect to 100% of the shares subject to the Option. To the extent practicable, such acceleration of vesting and exercisability shall occur in a manner and at a time which
allows the Participant the ability to participate in the Change in Control with respect to the shares of Common Stock received. 
 7.2
Cash-out. In the event of a Change in Control, the Committee may, in its discretion and upon at least ten (10) days’ advance notice to the Participant, cancel the Option and pay to the Participant (in cash, stock or any combination
thereof) the value of the Option based upon the price per share of Common Stock received or to be received by other shareholders of the Company in the event, subject to Section 409A of the Code. Notwithstanding the foregoing, if at the time of
a Change in Control the Exercise Price of the Option equals or exceeds the price paid for a share of Common Stock in connection with the Change in Control, the Committee may cancel the Option without the payment of consideration therefor. 

8. Adjustments. The shares of Common Stock subject to the Option may be adjusted or terminated in any manner as contemplated by Section 11 of the
Plan. The Company shall give each Participant notice of any such adjustment, and, upon notice, such adjustment shall be conclusive and binding for all purposes. 

9. Tax Liability. Notwithstanding any action the Company takes with respect to any or all income tax, social insurance, payroll tax, or other
tax-related withholding (“Tax-Related Items”), the ultimate liability for all Tax-Related Items is and remains the Participant’s responsibility and the Company (a) makes no representation or undertakings regarding the
treatment of any Tax-Related Items in connection with the grant, vesting, or exercise of the Option or the subsequent sale of any shares acquired on exercise; and (b) does not commit to structure the Option to reduce or eliminate the
Participant’s liability for Tax-Related Items. 
 10. Non-competition and Non-solicitation. 

10.1 In consideration of the Option, the Participant agrees and covenants not to: 

(a) contribute his or her knowledge, directly or indirectly, in whole or in part, as an employee, officer, owner, manager, advisor,
consultant, agent, partner, director, shareholder, volunteer, intern or in any other similar capacity to an entity engaged in the same or similar business as the Company and its Affiliates, including those engaged in the business of banking for a
period of [TERM OF MONTHS OR YEARS] following the Participant’s termination of Continuous Service; 
 (b) directly or indirectly,
solicit, hire, recruit, attempt to hire or recruit, or induce the termination of employment of any employee of the Company or its Affiliates for [TERM OF MONTHS OR YEARS] following the Participant’s termination of Continuous Service; or 

  
 5 

 (c) directly or indirectly, solicit, contact (including, but not limited to, e-mail, regular
mail, express mail, telephone, fax, and instant message), attempt to contact or meet with the current, former or prospective customers of the Company or any of its Affiliates for purposes of offering or accepting banking products or services similar
to or competitive with those offered by the Company or any of its Affiliates for a period of [TERM OF MONTHS OR YEARS] following the Participant’s termination of Continuous Service. 

10.2 In the event of a breach or threatened breach of any of the covenants contained in Section 10.1: 

(a) any unvested portion of the Option shall be forfeited effective as of the date of such breach, unless sooner terminated by operation of
another term or condition of this Agreement or the Plan; and 
 (b) the Participant hereby consents and agrees that the Company shall be
entitled to seek, in addition to other available remedies, a temporary or permanent injunction or other equitable relief against such breach or threatened breach from any court of competent jurisdiction, without the necessity of showing any actual
damages or that money damages would not afford an adequate remedy, and without the necessity of posting any bond or other security. The aforementioned equitable relief shall be in addition to, not in lieu of, legal remedies, monetary damages or
other available forms of relief. 
 11. Compliance with Law. The exercise of the Option and the issuance and transfer of shares of Common Stock shall
be subject to compliance by the Company and the Participant with all applicable requirements of federal and state banking and securities laws and with all applicable requirements of any stock exchange on which the Company’s shares of Common
Stock may be listed. No shares of Common Stock shall be issued pursuant to this Option unless and until any then-applicable requirements of state or federal laws and regulatory agencies have been fully complied with to the satisfaction of the
Company and its counsel. Further, the Company may require the Participant to execute and deliver to the Company a letter of investment intent in such form and containing such provisions as the Committee may require prior to Participant’s
purchase of any Common Stock pursuant to an Option. The Participant understands that the Company is under no obligation to register the shares of Common Stock with the Securities and Exchange Commission, any state securities commission or any stock
exchange to effect such compliance. If, after reasonable efforts, the Company is unable to obtain from any regulatory commission or agency the authority which counsel for the Company deems necessary for the lawful issuance and sale of Common Stock
under the Plan, the Company shall be relieved from any liability for failure to issue and sell such Common Stock upon exercise of any Option unless and until such authority is obtained. 

  
 6 

 12. Notices. Any notice required to be delivered to the Company under this Agreement shall be in writing
and addressed to the Secretary of the Company at the following address: 
 United Security Bancshares, Inc. 

c/o Secretary 
 131 West Front
Street 
 P.O. Box 249 

Thomasville, AL 36784 
 Any
notice required to be delivered to the Participant under this Agreement shall be in writing and addressed to the Participant at the Participant’s address as shown in the records of the Company. Either party may designate another address in
writing (or by such other method approved by the Company) from time to time. 
 13. Governing Law. This Agreement shall be construed and interpreted
in accordance with the internal laws of the State of Delaware without regard to that state’s conflict of law principles. 
 14. Interpretation.
Any dispute regarding the interpretation of this Agreement shall be submitted by the Participant or the Company to the Committee for review. The resolution of such dispute by the Committee shall be final and binding on the Participant and the
Company. 
 15. Options Subject to Plan. This Agreement is subject to the Plan as approved by the Company’s shareholders. The terms and
provisions of the Plan as it may be amended from time to time are hereby incorporated herein by reference. In the event of a conflict between any term or provision contained herein and a term or provision of the Plan, the applicable terms and
provisions of the Plan shall govern and prevail. 
 16. Successors and Assigns. The Company may assign any of its rights under this Agreement. This
Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth herein, this Agreement shall be binding upon the Participant and the Participant’s
beneficiaries, executors, administrators, representatives and the person(s) to whom the Option may be transferred pursuant to Section 6 of this Agreement or by will or the laws of descent or distribution. 

17. Severability. The invalidity or unenforceability of any provision of the Plan or this Agreement shall not affect the validity or enforceability of
any other provision of the Plan or this Agreement, and each provision of the Plan and this Agreement shall be severable and enforceable to the extent permitted by law. 

18. Discretionary Nature of Plan. The Plan is discretionary and may be amended, cancelled or terminated by the Company at any time, in its discretion;
provided, however, that the rights of the Participant under this Agreement shall not be impaired by any such amendment, cancellation or termination of the Plan unless (a) the Company requests the consent of the Participant and
(b) the Participant consents in writing. The grant of the Option in this Agreement does not create any contractual right or other right to receive any Options or other Awards in the future. Future Awards, if any, shall be at the sole discretion
of the Company. Any amendment, modification, or termination of the Plan shall not constitute a change or impairment of the terms and conditions of the Participant’s employment with the Company. 

19. Amendment. The Committee has the right at any time, and from time to time, to amend, alter, suspend, discontinue or cancel the Option,
prospectively or retroactively; provided,  

  
 7 

 
however, that no such amendment shall adversely affect the Participant’s material rights under this Agreement without the Participant’s written consent, and any such amendment shall
be in accordance with Section 409A of the Code.  
 20. No Impact on Other Benefits. The value of the Participant’s Option is not
part of his or her normal or expected compensation for purposes of calculating any severance, retirement, welfare, insurance or similar employee benefit. 

21. Time Periods; Counting. For purposes of this Agreement, any time period specified in terms of days shall be counted from the day following that of
the event marking the start of the time period and shall end on the day following the last day of the period specified. When the time period is expressed in months, it shall be counted from date to like date except where a terminal date so fixed
exceeds the number of days in a calendar month, in which case, the time period shall end on the last day of the month. When the last day of a time period is a Saturday, Sunday or legal holiday recognized by the Board of Governors of the Federal
Reserve System, the time period shall be extended to the first working day of the Company following such day. 
 22. Headings. The headings in this
Agreement are for purposes of convenience only and are not intended to define or limit the construction of the provisions hereof. 
 23.
Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. Counterpart signature pages to this Agreement transmitted by
facsimile transmission, by electronic mail in portable document format (.pdf), or by any other electronic means intended to preserve the original graphic and pictorial appearance of a document, shall have the same effect as physical delivery of the
paper document bearing an original signature. 
 24. Acceptance. The Participant hereby acknowledges receipt of a copy of the Plan and this
Agreement. The Participant has read and understands the terms and provisions thereof, and accepts the Option subject to all of the terms and conditions of the Plan and this Agreement. The Participant acknowledges that there may be adverse tax
consequences upon exercise of the Option or disposition of the underlying shares of Common Stock and that the Participant should consult a tax advisor prior to such exercise or disposition. 

25. Section 409A. The Option is intended to be exempt from or comply with Section 409A of the Code to the extent subject thereto, and,
accordingly, to the maximum extent permitted, the Option shall be interpreted and administered to be in compliance therewith. Any action taken under this Agreement shall be in accordance with Section 409A. 

[SIGNATURE PAGE FOLLOWS] 

  
 8 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. 

 

			
	UNITED SECURITY BANCSHARES, INC.,
	a Delaware corporation
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	[PARTICIPANT NAME]
		
	By:	 	  

	Name:	 	

  
 9

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