SEC Contract Filing

Filing Date: 2024-04-15

Document Content:
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<TYPE>EX-10.22
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<FILENAME>exhibit1022-noticeofmark.htm
<DESCRIPTION>EX-10.22
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<DIV><FONT size="1" style="font-size:1pt;color:white">EXHIBIT 10.22 CARMAX, INC. NOTICE OF MARKET STOCK UNIT GRANT [Date] Dear : The Board of Directors of CarMax, Inc. (the &#8220;Company&#8221;) wants to provide you with an opportunity to share in the success of our Company. Accordingly, I am pleased to inform you that, as of _________________ (the &#8220;Grant Date&#8221;), the Compensation and Personnel Committee of the Board of Directors of the Company (the &#8220;Committee&#8221;) exercised its authority pursuant to the CarMax, Inc. 2002 Stock Incentive Plan, as amended and restated (the &#8220;Plan&#8221;) and granted you Market Stock Units of the Company (the &#8220;Market Stock Units&#8221;) as set forth herein. The Market Stock Units are a form of Restricted Stock Units under the Plan and are subject to the provisions of the Plan. The Committee administers the Plan. The terms of the Plan are incorporated into this Notice of Market Stock Unit Grant (the &#8220;Notice of Grant&#8221;) and in the case of any conflict between the Plan and this Notice of Grant, the terms of the Plan shall control. All capitalized terms not defined herein shall have the meaning given to them in the Plan. Please refer to the Plan for certain conditions not set forth in this Notice of Grant. Additionally, a copy of a Prospectus for the Plan, which describes material terms of the Plan, can be found on The CarMax Way. Copies of the Prospectus, the Plan and the Company&#8217;s most recently filed annual report to shareholders on Form 10-K are available from the Company&#8217;s corporate secretary at (804) 747-0422. Number of Market Stock Units: Grant Date Fair Market Value: A. Vesting of Market Stock Units Except as otherwise provided in this Notice of Grant, all the Market Stock Units will vest and become nonforfeitable on ____________________________ (the &quot;Specified Date&quot;) or such earlier date as may be provided in this Notice of Grant or the Plan (collectively, the &#8220;Vesting Date&#8221;) provided you continue to be employed by the Company or one of its Subsidiaries from the Grant Date until the Vesting Date. No Market Stock Units may vest after the Specified Date and all unvested Market Stock Units remaining after the Specified Date will terminate and be completely forfeited. If prior to any Vesting Date, your employment with the Company and its Subsidiaries terminates for any reason other than those described in Sections B.1, B.2 or B.3, then any unvested Market Stock Units (and any related dividend equivalent rights) subject to this Notice of Grant shall terminate and be completely forfeited on the date of such termination of your employment. To the extent that you do not vest in any Market Stock Units, all interest in such units, the related shares of Company Stock, and any related dividend equivalent rights shall be forfeited. You shall have no right or interest in any Market Stock Unit or related share of Company Stock that is forfeited. Prior to payment, the Market Stock Units are not transferable by you by means of sale, assignment, exchange, pledge or otherwise. B. Additional Vesting and Forfeiture Provisions 1. Termination Without Cause or for Good Reason. If (a) the Company terminates your employment with the Company and its Subsidiaries for any reason other than Cause (as defined in Section B.4), or (b) you have an effective severance or employment agreement with the Company or one of its </FONT></DIV>
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<DIV><FONT size="1" style="font-size:1pt;color:white"> 2 Subsidiaries and you terminate your employment for &#8220;Good Reason&#8221;(as defined in such agreement), if applicable, then: (x) if your employment terminates on or after the Grant Date but prior to the first anniversary of the Grant Date, all of your Market Stock Units will be immediately forfeited, effective as of the date of your termination; (y) if your employment terminates on or after the first anniversary of the Grant Date but prior to the second anniversary of the Grant Date, one-third of your Market Stock Units will become immediately vested and nonforfeitable and your remaining Market Stock Units will be immediately forfeited, effective as of the date of your termination; and (z) if your employment terminates on or after the second anniversary of the Grant Date but prior to the Vesting Date, then two-thirds of your Market Stock Units will become immediately vested and nonforfeitable and your remaining Market Stock Units will be immediately forfeited, effective as of the date of your termination. 2. Death or Disability. If your employment by the Company and its Subsidiaries terminates because you die or become Disabled, all Market Stock Units will become immediately vested and nonforfeitable, effective as of the date of the termination of your employment. 3. Retirement. If (a) your employment with the Company and its Subsidiaries terminates, (b) such termination is not for Cause, not due to your death or Disability and not otherwise covered by Section B.1, and (c) as of the date of the termination you have: (i) attained 55 years of age and completed ten years or more of continuous employment with the Company or its Subsidiaries; (ii) attained 62 years of age and completed seven years or more of continuous employment with the Company or