# EDGAR Filing Document

**Accession Number:** 0001745041
**File Stem:** 0001104659-23-005628
**Filing Date:** 2023-1
**Character Count:** 180272
**Document Hash:** 6d5669cecc11b1caf0db68ed2500bd3d
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-23-005628.hdr.sgml**: 20230123

**ACCESSION NUMBER**: 0001104659-23-005628

**CONFORMED SUBMISSION TYPE**: 425

**PUBLIC DOCUMENT COUNT**: 5

**FILED AS OF DATE**: 20230123

**DATE AS OF CHANGE**: 20230123

**SUBJECT COMPANY**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** IAA, Inc.
- **CENTRAL INDEX KEY:** 0001745041
- **STANDARD INDUSTRIAL CLASSIFICATION:** RETAIL-AUTO DEALERS & GASOLINE STATIONS [5500]
- **IRS NUMBER:** 831030538
- **FISCAL YEAR END:** 1229

**FILING VALUES:**
- **FORM TYPE:** 425
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-38580
- **FILM NUMBER:** 23542713

**BUSINESS ADDRESS:**
- **STREET 1:** TWO WESTBROOK CORPORATE CENTER
- **STREET 2:** 10TH FLOOR
- **CITY:** WESTCHESTER
- **STATE:** IL
- **ZIP:** 60154
- **BUSINESS PHONE:** (708) 492-7000

**MAIL ADDRESS:**
- **STREET 1:** TWO WESTBROOK CORPORATE CENTER
- **STREET 2:** 10TH FLOOR
- **CITY:** WESTCHESTER
- **STATE:** IL
- **ZIP:** 60154

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** IAA Spinco Inc.
- **DATE OF NAME CHANGE:** 20180628
**FILED BY**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** IAA, Inc.
- **CENTRAL INDEX KEY:** 0001745041
- **STANDARD INDUSTRIAL CLASSIFICATION:** RETAIL-AUTO DEALERS & GASOLINE STATIONS [5500]
- **IRS NUMBER:** 831030538
- **FISCAL YEAR END:** 1229

**FILING VALUES:**
- **FORM TYPE:** 425

**BUSINESS ADDRESS:**
- **STREET 1:** TWO WESTBROOK CORPORATE CENTER
- **STREET 2:** 10TH FLOOR
- **CITY:** WESTCHESTER
- **STATE:** IL
- **ZIP:** 60154
- **BUSINESS PHONE:** (708) 492-7000

**MAIL ADDRESS:**
- **STREET 1:** TWO WESTBROOK CORPORATE CENTER
- **STREET 2:** 10TH FLOOR
- **CITY:** WESTCHESTER
- **STATE:** IL
- **ZIP:** 60154

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** IAA Spinco Inc.
- **DATE OF NAME CHANGE:** 20180628

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

Washington, D.C. 20549

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): January 22, 2023

![](tm2233120d1_8kimg001.jpg)

**IAA, Inc.**

(Exact name of registrant as specified in its charter)

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| | | |
|:---|:---|:---|
| **Delaware** | **001-38580** | **83-1030538** |
| (State or other jurisdiction of <br> incorporation) | (Commission File<br> Number) | (IRS Employer Identification No.) |

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**IAA, Inc.**

**Two Westbrook Corporate Center, Suite 500**

**Westchester, Illinois 60154**

(Address of principal executive offices and zip code)

Registrant's telephone number, including area code: **(708) 492-7000**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

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| | |
|:---|:---|
| x | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Title of each class** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Name of each exchange on which <br> registered** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Stock, par value $0.01 per share IAA | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New York Stock Exchange |

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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act: ¨

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| | |
|:---|:---|
| **Item 1.01** | **Entry into a Material Definitive Agreement.** |

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 ****

***Amendment to the Agreement and Plan of Merger and Reorganization***

As previously disclosed, on November 7, 2022, IAA, Inc., a Delaware corporation ("IAA" or the "Company"), entered into an Agreement and Plan of Merger and Reorganization (as amended or otherwise modified prior to the date hereof, the "Original Merger Agreement") with Ritchie Bros. Auctioneers Incorporated, a company organized under the federal laws of Canada ("RBA"), Ritchie Bros. Holdings Inc., a Washington corporation and a direct and indirect wholly owned subsidiary of RBA ("US Holdings"), Impala Merger Sub I, LLC, a Delaware limited liability company and a direct wholly owned subsidiary of US Holdings ("Merger Sub 1"), and Impala Merger Sub II, LLC, a Delaware limited liability company and a direct wholly owned subsidiary of US Holdings ("Merger Sub 2"), providing for RBA's acquisition of IAA. Upon the terms and subject to the conditions set forth in the Merger Agreement, (i) Merger Sub 1 will be merged with and into IAA (the "First Merger"), with IAA surviving as an indirect wholly owned subsidiary of RBA and a direct wholly owned subsidiary of US Holdings (the "Surviving Corporation"), and (ii) immediately following the consummation of the First Merger, the Surviving Corporation will be merged with and into Merger Sub 2 (together with the First Merger, the "Mergers"), with Merger Sub 2 surviving as a direct wholly owned subsidiary of US Holdings.

On January 22, 2023, RBA, IAA and the other parties to the Merger Agreement entered into the Amendment to the Agreement and Plan of Merger and Reorganization (the "Amendment" and the Original Merger Agreement, as amended by the Amendment, the "Merger Agreement"). Pursuant to the Amendment, each share of IAA common stock, par value $0.01 per share ("IAA Common Stock"), issued and outstanding immediately prior to the effective time of the First Merger (the "Effective Time") (excluding any shares of IAA Common Stock held by IAA as treasury stock, owned by RBA, US Holdings, Merger Sub 1 and Merger Sub 2 immediately prior to the Effective Time, or owned by stockholders of IAA who have validly demanded and not withdrawn appraisal rights in accordance with Section 262 of the Delaware General Corporation Law) will be converted automatically into the right to receive: (i) 0.5252 of a common share, without par value, of RBA ("RBA Common Shares") and (ii) $12.80 in cash, without interest (together, the "Merger Consideration"), instead of (A) 0.5804 of an RBA Common Share and (B) $10.00 in cash, without interest, as provided in the Original Merger Agreement. In addition, the Amendment provides that, in the event that either RBA or IAA elects to terminate the Merger Agreement as a result of RBA's failure to obtain approval by its shareholders of the issuance of RBA Common Shares in connection with the Mergers, RBA would be required to reimburse IAA for out-of-pocket expenses incurred by IAA in connection with the Merger Agreement and the Mergers up to a maximum amount of $5.0 million. The Amendment also permits RBA to pay a one-time, special cash dividend to the shareholders of RBA not to exceed $1.08 per share, with a record date prior to the Effective Time to be determined by RBA's Board of Directors and payment conditioned upon the closing of the First Merger.

All other material terms of the Merger Agreement remain substantially the same.

***Cooperation Agreement***

On January 22, 2023, IAA entered into a Cooperation Agreement (the "Cooperation Agreement") with Ancora Alternatives LLC and certain of its affiliates (collectively the "Ancora Investors") regarding RBA's acquisition of IAA, the membership and composition of the Company's board of directors (the "Board") in certain circumstances and related matters.

Pursuant to the Cooperation Agreement, subject to the completion of director information and interviews, the Company has agreed to take all actions necessary pursuant to the terms of the Merger Agreement to designate Timothy O'Day (the "First Ancora Director Candidate") as a Company Designee (as defined in the Merger Agreement) for all purposes under the Merger Agreement such that the First Ancora Director Candidate will be appointed to the board of directors of RBA immediately following the effective time of the First Merger.

Ancora, which holds approximately 4% of the outstanding IAA Common Stock, irrevocably committed to appear at the special meeting of IAA stockholders to consider the RBA acquisition and to vote in favor of the transactions contemplated by the Merger Agreement and, subject to certain limited exceptions, in favor of all proposals submitted to the IAA stockholders at such meeting.

In the event that either the Company Stockholder Approval or the Parent Shareholder Approval (each as defined in the Merger Agreement) is not obtained or IAA files definitive proxy materials for its 2023 annual meeting of stockholders (the "2023 Annual Meeting") (the first to occur of such events, a "Transaction Vote Down"), (i) within five business days of the Transaction Vote Down, one of the Company's current directors (other than the Company's CEO) will tender his or her resignation from the Board and the Company will, after completion of director information and interviews, appoint the First Ancora Director Candidate as an observer to the Board, (ii) the Company will appoint a second director candidate identified by the Ancora Investors and selected pursuant to the procedures described in the Agreement as an observer to the Board (the "Second Ancora Director Candidate"), and (iii) the Company will appoint a third director candidate to be mutually agreed between the Company and the Ancora Investors pursuant to the procedures described in the Agreement as an observer to the Board (the "Mutual Director Candidate" and, together with the First Ancora Director Candidate and the Second Ancora Director Candidate, the "New Director Candidates"). IAA also agreed not to, prior the 2024 annual meeting of stockholders of IAA, increase the size of the Board to more than 11 directors without the prior written agreement of the Ancora Investors.

In the event of a Transaction Vote Down, the Board will include the New Director Candidates in its proxy statement for the 2023 Annual Meeting, which will provide that the Company will increase the size of the Board to eleven directors and appoint the New Director Candidates to the Board immediately following the 2023 Annual Meeting. Upon their respective appointments to the Board, the Board will appoint the First Ancora Director Candidate and the Second Ancora Director Candidate to the Operations Committee of the Board.

During the Standstill Period, the Ancora Investors will have certain replacement rights with respect to the New Director Candidates so long as the Ancora Investors continue to beneficially own at least 2.0% of IAA's then outstanding common stock. Any replacement candidate in respect of the First Ancora Director Candidate is subject to the prior written consent of RBA.

During the Standstill Period (as defined below), the Cooperation Agreement provides that the Ancora Investors will be subject to (i) certain additional voting commitments in respect of matters subject to the vote of IAA stockholders during the Standstill Period, including a commitment to vote in accordance with the recommendation of the Board with respect to director elections and, subject to certain limited exceptions, all other proposals put forth to the IAA stockholders and (ii) customary standstill obligations . The Cooperation Agreement also includes customary mutual non-disparagement provisions during the Standstill Period. IAA has agreed to customary expense reimbursement provisions in favor of the Ancora Investors.

Under the Cooperation Agreement, the "Standstill Period" begins on the date of the agreement and ends on the later of (x) the Closing (as defined in the Merger Agreement) and (y) the conclusion of the 2023 Annual Meeting. The Cooperation Agreement will terminate upon the expiration of the last day of the Standstill Period, unless earlier terminated by mutual written agreement of the Company and the Ancora Investors.

**Additional Information**

The foregoing description of the Merger Agreement, the Mergers and the Cooperation Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Amendment, which is filed as Exhibit 2.1 to this Current Report on Form 8-K, the full text of the Original Merger Agreement, a copy of which is attached as Exhibit 2.1 to IAA's Current Report on Form 8-K, filed with the U.S. Securities and Exchange Commission (the "SEC") on November 7, 2022, and the full text of the Cooperation Agreement, which is filed as Exhibit 10.1 to this Current Report on Form 8-K, and each of which is incorporated herein by reference. Copies of the Amendment and the Cooperation Agreement have been included to provide investors with information regarding their terms and are not intended to provide any factual information about RBA or IAA.

Each of the Merger Agreement and the Cooperation Agreement contain representations, warranties, covenants and agreements, which were made only for purposes of each agreement and as of specified dates. The representations and warranties in each of the Merger Agreement and the Cooperation Agreement reflect negotiations between the parties to the Merger Agreement and the Cooperation Agreement, as applicable, and are not intended as statements of fact to be relied upon by IAA's stockholders. In particular, the representations, warranties, covenants and agreements in each of the Merger Agreement and Cooperation Agreement may be subject to limitations agreed by the parties, including having been modified or qualified by certain confidential disclosures that were made between the parties in connection with the negotiation of each of the Merger Agreement and Cooperation Agreement, as applicable, and having been made for purposes of allocating risk among the parties rather than establishing matters of fact. In addition, the parties may apply standards of materiality in a way that is different from what may be viewed as material by investors. As such, the representations and warranties in each of the Merger Agreement and Cooperation Agreement may not describe the actual state of affairs at the date they were made or at any other time and you should not rely on them as statements of fact. Moreover, information concerning the subject matter of the representations and warranties may change after the date of each of the Merger Agreement and Cooperation Agreement, and unless required by applicable law, IAA undertakes no obligation to update such information.

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| | |
|:---|:---|
| **Item 2.02** | **Results of Operations and Financial Condition.** |

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On January 23, 2023, RBA and IAA issued a joint news release announcing the Amendment to the Merger Agreement and the Cooperation Agreement. Such press release also provided certain preliminary unaudited financial expectations for IAA's fiscal year ended January 1, 2023.

The press release is attached to this Current Report on Form 8-K as Exhibit 99.1 and is incorporated herein by reference.

Exhibit 99.1 attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section and shall not be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in any such filing.

**Forward-Looking Statements** 

This report contains information relating to a proposed business combination transaction between RBA and IAA. This report includes forward-looking information within the meaning of Canadian securities legislation and forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act (collectively, "forward-looking statements"). Forward-looking statements may include statements relating to future events and anticipated results of operations, business strategies, the anticipated benefits of the proposed transaction, the anticipated impact of the proposed transaction on the combined company's business and future financial and operating results, the expected or estimated amount, achievability, sources, impact and timing of cost synergies and revenue, growth, operational enhancement, expansion and other value creation opportunities from the proposed transaction, the expected debt, de-leveraging and capital allocation of the combined company, the anticipated closing date for the proposed transaction, other aspects of RBA's or IAA's respective businesses, operations, financial condition or operating results and other statements that are not historical facts. There can be no assurance that the proposed transaction will in fact be consummated. These forward-looking statements generally can be identified by phrases such as "will," "should," "expects," "plans," "anticipates," "could," "intends," "target," "goal," "projects," "contemplates," "believes," "predicts," "potential," "continue," "foresees," "forecasts," "estimates," "opportunity" or other words or phrases of similar import.

It is uncertain whether any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what impact they will have on the results of operations and financial condition of the combined companies or the price of RBA Common Shares or IAA Common Stock. Therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. While RBA's and IAA's management believe the assumptions underlying the forward-looking statements are reasonable, these forward-looking statements involve certain risks and uncertainties, many of which are beyond the parties' control, that could cause actual results to differ materially from those indicated in such forward-looking statements, including but not limited to: the possibility that shareholders of RBA may not approve the issuance of new RBA Common Shares in the transaction or that stockholders of IAA may not approve the adoption of the Merger Agreement; the risk that a condition to closing of the proposed transaction may not be satisfied (or waived), that either party may terminate the Merger Agreement or that the closing of the proposed transaction might be delayed or not occur at all; the anticipated tax treatment of the proposed transaction; potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed transaction; the diversion of management time on transaction-related issues; the response of competitors to the proposed transaction; the ultimate difficulty, timing, cost and results of integrating the operations of RBA and IAA; the effects of the business combination of RBA and IAA, including the combined company's future financial condition, results of operations, strategy and plans; the failure (or delay) to receive the required regulatory approval of the transaction; the fact that operating costs and business disruption may be greater than expected following the public announcement or consummation of the proposed transaction; the effect of the announcement, pendency or consummation of the proposed transaction on the trading price of RBA Common Shares or IAA Common Stock; the ability of RBA and/or IAA to retain and hire key personnel and employees; the significant costs associated with the proposed transaction; the outcome of any legal proceedings that could be instituted against RBA, IAA and/or others relating to the proposed transaction; restrictions during the pendency of the proposed transaction that may impact the ability of RBA and/or IAA to pursue non-ordinary course transactions, including certain business opportunities or strategic transactions; the ability of the combined company to realize anticipated synergies in the amount, manner or timeframe expected or at all; the failure of the combined company to realize potential revenue, growth, operational enhancement, expansion or other value creation opportunities from the sources or in the amount, manner or timeframe expected or at all; the failure of the trading multiple of the combined company to normalize or re-rate and other fluctuations in such trading multiple; changes in capital markets and the ability of the combined company to finance operations in the manner expected or to de-lever in the timeframe expected; the failure of RBA or the combined company to meet financial and/or key performance indicator targets; any legal impediment to the payment of the special dividend by RBA, including the consent of the Toronto Stock Exchange to the dividend record date; legislative, regulatory and economic developments affecting the business of RBA and IAA; general economic and market developments and conditions; the evolving legal, regulatory and tax regimes under which RBA and IAA operate; unpredictability and severity of catastrophic events, including, but not limited to, pandemics, acts of terrorism or outbreak of war or hostilities, as well as RBA's or IAA's response to any of the aforementioned factors. These risks, as well as other risks related to the proposed transaction, are included in the registration statement on Form S-4 and joint proxy statement/prospectus filed with the SEC and applicable Canadian securities regulatory authorities in connection with the proposed transaction. While the list of factors presented here is, and the list of factors presented in the registration statement on Form S-4 are, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties.

For additional information about other factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to RBA's and IAA's respective periodic reports and other filings with the SEC and/or applicable Canadian securities regulatory authorities, including the risk factors identified in RBA's most recent Quarterly Reports on Form 10-Q and Annual Report on Form 10-K and IAA's most recent Quarterly Reports on Form 10-Q and Annual Report on Form 10-K. The forward-looking statements included in this report are made only as of the date hereof. Neither RBA nor IAA undertakes any obligation to update any forward-looking statements to reflect actual results, new information, future events, changes in its expectations or other circumstances that exist after the date as of which the forward-looking statements were made, except as required by law.

**No Offer or Solicitation**

This report is not intended to and shall not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities, or a solicitation of any vote or approval, nor shall there be any offer, solicitation or sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended, or pursuant to an exemption from, or in a transaction not subject to, such registration requirements.

**Important Additional Information and Where to Find It**

In connection with the proposed transaction, RBA filed with the SEC and applicable Canadian securities regulatory authorities a registration statement on Form S-4 to register the RBA Common Shares to be issued in connection with the proposed transaction on December 14, 2022. The registration statement includes a joint proxy statement/prospectus which will be sent to the shareholders of RBA and the stockholders of IAA seeking their approval of their respective transaction-related proposals. Each of RBA and IAA may also file other relevant documents with the SEC and/or applicable Canadian securities regulatory authorities regarding the proposed transaction. This document is not a substitute for the proxy statement/prospectus or registration statement or any other document that RBA or IAA may file with the SEC and/or applicable Canadian securities regulatory authorities. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT ON FORM S-4 AND THE RELATED JOINT PROXY STATEMENT/PROSPECTUS, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS AND ANY OTHER RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC AND APPLICABLE CANADIAN SECURITIES REGULATORY AUTHORITIES IN CONNECTION WITH THE PROPOSED TRANSACTION OR INCORPORATED BY REFERENCE IN THE PROXY STATEMENT/PROSPECTUS, CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE, BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT RBA, IAA AND THE PROPOSED TRANSACTION.

Investors and security holders may obtain copies of these documents (when they are available) free of charge through the website maintained by the SEC at www.sec.gov, SEDAR at www.sedar.com or from RBA at its website, investor.ritchiebros.com, or from IAA at its website, investors.iaai.com. Documents filed with the SEC and applicable Canadian securities regulatory authorities by RBA (when they are available) will be available free of charge by accessing RBA's website at investor.ritchiebros.com under the heading Financials/SEC Filings, or, alternatively, by directing a request by telephone or mail to RBA at 9500 Glenlyon Parkway, Burnaby, BC, V5J 0C6, Canada, and documents filed with the SEC by IAA (when they are available) will be available free of charge by accessing IAA's website at investors.iaai.com or by contacting IAA's Investor Relations at investors@iaai.com.

**Participants in the Solicitation**

RBA and IAA and certain of their respective directors and executive officers and other members of management and employees, and Jeffrey C. Smith may be deemed to be participants in the solicitation of proxies from the stockholders of RBA and IAA in respect of the proposed transaction under the rules of the SEC. Information about RBA's directors and executive officers is available in RBA's definitive proxy statement on Schedule 14A for its 2022 Annual Meeting of Shareholders, which was filed with the SEC and applicable Canadian securities regulatory authorities on March 15, 2022, and certain of its Current Reports on Form 8-K. Information about IAA's directors and executive officers is available in IAA's definitive proxy statement on Schedule 14A for its 2022 Annual Meeting of Stockholders, which was filed with the SEC on May 2, 2022, and certain of its Current Reports on Form 8-K. Other information regarding persons who may be deemed participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, including information with respect to Mr. Smith, are contained or will be contained in the joint proxy statement/prospectus and other relevant materials filed or to be filed with the SEC and applicable Canadian securities regulatory authorities regarding the proposed transaction when they become available. Investors should read the joint proxy statement/prospectus carefully before making any voting or investment decisions. You may obtain free copies of these documents from RBA or IAA free of charge using the sources indicated above.

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| | |
|:---|:---|
| **Item 9.01** | **Financial Statements and Exhibits.** |

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(d) Exhibits.

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| | |
|:---|:---|
| **Exhibit<br> No.** | **Description** |
| [2.1](tm234164d1_ex2-1.htm) | [Amendment to the Agreement and Plan of Merger and Reorganization, dated January 22, 2023, by and among Ritchie Bros. Auctioneers Incorporated, Ritchie Bros. Holdings Inc., Impala Merger Sub I, LLC, Impala Merger Sub II, LLC, and IAA, Inc.](tm234164d1_ex2-1.htm) |
| [10.1](tm234164d1_ex10-1.htm) | [Cooperation Agreement, dated as of January 22, 2023, by and among IAA, Inc. and the affiliates of Ancora Investors, LLC party thereto](tm234164d1_ex10-1.htm) |
| [99.1+](tm234164d1_ex99-1.htm) | [Joint news release, dated January 23, 2023, issued by Ritchie Bros. Auctioneers Incorporated and IAA, Inc.](tm234164d1_ex99-1.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

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+ Furnished herewith.

**SIGNATURES** 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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| | | |
|:---|:---|:---|
|  | **IAA, INC.** | **IAA, INC.** |
| Dated: January 23, 2023 |  |  |
|  | By: | */s/ Susan Healy* |
|  |  | Susan Healy |
|  |  | Executive Vice President, Chief Financial Officer<br> (Principal Financial Officer) |

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## Exhibit 2.1

**Exhibit 2.1**

**AMENDMENT TO THE AGREEMENT AND PLAN OF MERGER<br> AND REORGANIZATION**

This AMENDMENT TO THE AGREEMENT AND PLAN OF MERGER AND REORGANIZATION (this "<u>Amendment</u>"), dated as of January 22, 2023 (the "<u>Amendment Date</u>"), is entered into by and among Ritchie Bros. Auctioneers Incorporated, a company organized under the federal laws of Canada ("<u>Parent</u>"), Ritchie Bros. Holdings, Inc., a Washington corporation and a direct and indirect wholly owned subsidiary of Parent ("<u>US Holdings</u>"), Impala Merger Sub I, LLC, a Delaware limited liability company and a direct wholly owned subsidiary of US Holdings ("<u>Merger Sub 1</u>"), Impala Merger Sub II, LLC, a Delaware limited liability company and a direct wholly owned subsidiary of US Holdings ("<u>Merger Sub 2</u>"), and IAA, Inc., a Delaware corporation (the "<u>Company</u>"), and amends that certain Agreement and Plan of Merger and Reorganization, dated as of November 7, 2022, by and among Parent, Merger Sub 1, Merger Sub 2 and the Company (as amended or otherwise modified prior to the date hereof, the "<u>Merger Agreement</u>"). Each capitalized term used but not otherwise defined herein shall have the meaning ascribed to such term in the Merger Agreement.

**RECITALS**

WHEREAS, Parent, US Holdings, Merger Sub 1, Merger Sub 2 and the Company entered into the Merger Agreement on November 7, 2022;

WHEREAS, Section 9.11 of the Merger Agreement provides that the Merger Agreement may be amended at any time by an instrument in writing signed by each of the parties thereto;

WHEREAS, each of Parent, US Holdings, Merger Sub 1, Merger Sub 2 and the Company desires to amend certain terms of the Merger Agreement as set forth this Amendment and to make certain representations, warranties, covenants and agreements in connection with this Amendment;

WHEREAS, the Company Board has unanimously: (i) determined that the Merger Agreement (as amended or modified by this Amendment) and the Transactions, including the Mergers are fair to, and in the best interests of, the Company and the holders of Company Common Stock; (ii) approved and declared advisable the Merger Agreement (as amended or modified by this Amendment) and the consummation of the Transactions, including the Mergers; (iii) directed that the Merger Agreement (as amended or modified by this Amendment) be submitted to the holders of Company Common Stock for its adoption; and (iv) resolved to recommend that holders of Company Common Stock adopt the Merger Agreement (as amended or modified by this Amendment) at the Company Stockholders Meeting, subject to the terms of the Merger Agreement (as amended or modified by this Amendment);

WHEREAS, the Parent Board has unanimously: (i) determined that the Merger Agreement (as amended or modified by this Amendment) and the Transactions, including the Parent Share Issuance, are in the best interests of Parent; (ii) approved the Merger Agreement (as amended or modified by this Amendment) and the consummation of the Transactions, including the Parent Share Issuance; and (iii) resolved to recommend that the holders of Parent Common Shares approve the Parent Share Issuance at the Parent Shareholders Meeting, subject to the terms of the Merger Agreement (as amended or modified by this Amendment); and

WHEREAS, the Board of Directors (or managers, as applicable) of US Holdings, Merger Sub 1 and Merger Sub 2 have approved the Merger Agreement (as amended or modified by this Amendment) and the consummation of the Transactions, including the Mergers.

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements herein contained, and intending to be legally bound hereby, Parent, US Holdings, Merger Sub 1 and Merger Sub 2 and the Company hereby agree as follows:

**AGREEMENT**

1. **<u>Amendments</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Merger Consideration</u>. Section 3.1(b)(i) of the Merger Agreement is hereby amended and restated in its entirety to read as follows:

"Subject to the other provisions of this <u>ARTICLE III</u>, each share of Company Common Stock issued and outstanding immediately prior to the First Merger Effective Time (excluding any Excluded Shares and any Appraisal Shares) (the "<u>Eligible Shares</u>") shall be converted automatically into the right to receive: (A) 0.5252 (the "<u>Exchange Ratio</u>") validly issued, fully paid and nonassessable Parent Common Shares (the "<u>Share Consideration</u>") and (B) $12.80 in cash, without interest (the "<u>Cash Consideration</u>," and together with the Share Consideration, the "<u>Merger Consideration</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Special Dividend</u>. Section 6.2(c) of the Merger Agreement is hereby amended by adding the following clause (iv) to the list of exceptions set forth therein:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a one-time, special cash dividend not to exceed $1.08 per share, with a record date prior to the First Merger Effective Time to be determined by the Parent Board and conditioned upon the closing of the First Merger;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Parent Expense Reimbursement</u>. Section 8.3 of the Merger Agreement is hereby amended to add the following provision as a new subsection (i):

"(i) Anything to the contrary in this Agreement notwithstanding, in the event that Parent or the Company terminates this Agreement pursuant to <u>Section 8.1(b)(iv)(B)</u>, then Parent shall pay the Company an amount equal to all of the reasonable, documented, out-of-pocket expenses incurred by the Company and its Subsidiaries in connection with this Agreement and the Transactions (such amount, the "<u>Parent Expense Reimbursement Amount</u>") up to a maximum aggregate amount of $5,000,000. The Company shall send Parent a written notice within three Business Days of such termination specifying the Parent Expense Reimbursement Amount calculated in accordance with the immediately preceding sentence, including reasonable supporting detail therefor. Parent shall pay or cause to be paid to the Company the Parent Expense Reimbursement Amount in cash by wire transfer of immediately available funds to an account designated by the Company within two Business Days of the Company duly delivering such notice in accordance with the immediately preceding sentence. To the extent the Parent Expense Reimbursement Amount is actually paid by Parent to the Company, the Parent Expense Reimbursement Amount shall be deducted in full from the amount of (A) any Termination Amount that subsequently becomes payable by Parent pursuant to this <u>Section 8.3</u> and (B) any damages actually awarded to the Company from Parent by any court of competent jurisdiction; *provided*, that the payment of the Parent Expense Reimbursement Amount may reduce but shall not limit (1) the Company's ability to seek damages from Parent for a Willful and Material Breach of this Agreement pursuant to <u>Section 8.2(b)</u> or (2) any obligation of Parent to pay the Termination Amount pursuant to this <u>Section 8.3</u>. In no event shall the Company be entitled to receive more than one payment of the Parent Expense Reimbursement Amount."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Rules of Construction</u>. Section 9.4 of the Merger Agreement is hereby amended to add the following provision as a new subsection (f):

"(f) Each reference to "herein", "hereof," "hereunder," "hereby," "this Agreement" and similar references shall, from and after the date of the Amendment, refer to the Merger Agreement, as amended or modified by the Amendment. Each reference herein to "the date of the Amendment" or the "Amendment Date" shall refer to January 22, 2023 and each reference to the "date of this Agreement", the "date hereof", "concurrently with the execution and delivery of this Agreement" and similar references shall refer to November 7, 2022."

2. **<u>Representations and Warranties</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Company</u>. The Company hereby represents and warrants to Parent, US Holdings, Merger Sub 1 and Merger Sub 2 as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Authority Relative to this Amendment*. The Company has all requisite corporate power and authority to execute and deliver this Amendment and to perform its obligations under the Merger Agreement (as amended or modified by this Amendment). The execution and delivery of this Amendment by the Company and the consummation by the Company of the Transactions have been duly authorized by all necessary corporate action on the part of the Company, subject, only with respect to the consummation of the Mergers, to the Company Stockholder Approval and the filing of the Certificates of Merger with the Office of the Secretary of State of the State of Delaware. This Amendment has been duly executed and delivered by the Company, and assuming the due and valid execution of this Amendment by Parent, US Holdings, Merger Sub 1 and Merger Sub 2, constitutes a valid and binding obligation of the Company enforceable against the Company in accordance with its terms, subject, as to enforceability, to Creditors' Rights. The Company Board, at a meeting duly called and held, has by unanimous vote (A) determined that the Merger Agreement (as amended or modified by this Amendment) and the Transactions, including the Mergers, are fair to, and in the best interests of, the Company and the holders of Company Common Stock, (B) approved and declared advisable the Merger Agreement (as amended or modified by this Amendment) and the Transactions, including the Mergers, (C) directed that the Merger Agreement (as amended or modified by this Amendment) be submitted to the holders of Company Common Stock for its adoption, and (D) resolved to recommend that the holders of Company Common Stock adopt the Merger Agreement (as amended or modified by this Amendment) at the Company Stockholders Meeting. The Company Stockholder Approval is the only vote of the holders of any class or series of Company Capital Stock necessary to adopt and approve the Merger Agreement (as amended or modified by this Amendment) and the Mergers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *Opinion of Financial Advisor*. The Company Board has received the opinion of J.P. Morgan Securities LLC addressed to the Company Board to the effect that, as of the date of such opinion and based upon and subject to the various assumptions, limitations, qualifications and other factors set forth therein, the Merger Consideration to be paid to the holders of Company Common Stock pursuant to the Merger Agreement (as amended or modified by this Amendment) is fair, from a financial point of view, to such holders. A signed copy of such opinion shall be delivered to Parent promptly after receipt thereof by the Company for information purposes only.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Parent, US Holdings, Merger Sub 1 and Merger Sub 2</u>. Parent, US Holdings, Merger Sub 1 and Merger Sub 2 each hereby represent and warrant to the Company as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Authority Relative to this Amendment.* Each of Parent, US Holdings, Merger Sub 1 and Merger Sub 2 has all requisite corporate or limited liability company power and authority to execute and deliver this Amendment and to perform its obligations hereunder. The execution and delivery of this Amendment by each of Parent, US Holdings, Merger Sub 1 and Merger Sub 2 and the consummation by each of Parent, US Holdings, Merger Sub 1 and Merger Sub 2 of the Transactions have been duly authorized by all necessary action on the part of each of Parent (subject to obtaining Parent Shareholder Approval), Merger Sub 1 (other than the adoption of the Merger Agreement (as amended or modified by this Amendment) by US Holdings as sole member of Merger Sub 1, which shall occur promptly after the execution and delivery of this Amendment), and Merger Sub 2 (other than the adoption of the Merger Agreement (as amended or modified by this Amendment) by US Holdings as sole member of Merger Sub 2, which shall occur promptly after the execution and delivery of this Amendment) and the filing of the Certificates of Merger with the Office of the Secretary of State of the State of Delaware. This Amendment has been duly executed and delivered by each of Parent, US Holdings, Merger Sub 1 and Merger Sub 2, and assuming the due and valid execution of this Amendment by the Company, constitutes a valid and binding obligation of each of Parent, US Holdings, Merger Sub 1 and Merger Sub 2 enforceable against Parent, US Holdings, Merger Sub 1 and Merger Sub 2 in accordance with its terms, subject, as to enforceability to Creditors' Rights. The Parent Board, at a meeting duly called and held, has unanimously (A) determined that the Merger Agreement (as amended or modified by this Amendment) and the Transactions, including the Parent Share Issuance are in the best interests of Parent, (B) approved this Agreement and the Transactions, including the Parent Share Issuance, and (C) resolved to recommend that the holders of Parent Common Shares approve the Parent Share Issuance at the Parent Shareholders Meeting. The Board of Directors of US Holdings has, by unanimous written consent, (1) determined that the Merger Agreement (as amended or modified by this Amendment) and the Transactions are in the best interests of US Holdings and the stockholders of US Holdings and (2) approved and declared advisable this Agreement and the Transactions, including the Mergers. The only component of the Transaction and the consummation thereof that requires the approval of Parent's shareholders is the Parent Share Issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *Opinion of Financial Advisor*. The Parent Board has received the opinion of each of Goldman Sachs & Co. LLC and Guggenheim Securities, LLC addressed to the Parent Board to the effect that, as of the date of each such opinion, and subject to the assumptions made, procedures followed, matters considered, and qualifications and limitations on the scope of the review undertaken as set forth therein, the Merger Consideration is fair, from a financial point of view, to Parent. A signed copy of each such opinion shall be delivered to the Company as soon as practicable after receipt thereof by Parent for information purposes only.

3. **<u>Confirmation of Merger Agreement</u>**. Other than as expressly amended or modified pursuant to this Amendment, all of the provisions of the Merger Agreement are hereby ratified and confirmed and shall remain to be in full force and effect in accordance with their respective terms.

4. **<u>Counterparts</u>**. This Amendment may be executed in any number of counterparts, each such counterpart being deemed to be an original instrument, and all such counterparts shall together constitute one and the same agreement.

5. **<u>General Provisions</u>**. The provisions of Sections 9.3, 9.4, 9.6, 9.7, 9.8, 9.9, 9.10, 9.11 and 9.12 of the Merger Agreement shall apply to this Amendment, *mutatis mutandis*.

[*Signature Pages Follow*]

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed as of the date first written above by their respective officers thereunto duly authorized.

---

| | |
|:---|:---|
| RITCHIE BROS. AUCTIONEERS INCORPORATED | RITCHIE BROS. AUCTIONEERS INCORPORATED |
| By: | /s/ Ann Fandozzi  |
| Name: Ann Fandozzi | Name: Ann Fandozzi |
| Title: Chief Executive Officer | Title: Chief Executive Officer |
| RITCHIE BROS. HOLDINGS INC. | RITCHIE BROS. HOLDINGS INC. |
| By: | /s/ Jake Lawson  |
| Name: Jake Lawson | Name: Jake Lawson |
| Title: President | Title: President |
| IMPALA MERGER SUB I, LLC | IMPALA MERGER SUB I, LLC |
| By: | /s/ Eric Jacobs  |
| Name: Eric Jacobs | Name: Eric Jacobs |
| Title: President | Title: President |
| IMPALA MERGER SUB II, LLC | IMPALA MERGER SUB II, LLC |
| By: | /s/ Eric Jacobs |
| Name: Eric Jacobs | Name: Eric Jacobs |
| Title: President | Title: President |

---

---

| | |
|:---|:---|
| IAA, INC. | IAA, INC. |
| By: | /s/ John Kett |
| Name: John Kett | Name: John Kett |
| Title: Chief Executive Officer and President | Title: Chief Executive Officer and President |

---

## Exhibit 10.1

**Exhibit 10.1**

***Execution Version***

**COOPERATION AGREEMENT**

This Cooperation Agreement ("<u>Agreement</u>"), dated as of January 22, 2023, is made by and among IAA, Inc., a Delaware corporation (the "<u>Company</u>") and the persons and entities listed on <u>Schedule A</u> hereto (collectively, the "<u>Ancora Investors</u>"). The Company and each of the Ancora Investors are collectively herein referred to as the "<u>Parties</u>" and individually as a "<u>Party</u>."

WHEREAS, on November 7, 2022, the Company entered into an Agreement and Plan of Merger and Reorganization (as amended, restated and modified as of the date hereof, the "<u>Merger Agreement</u>") with Ritchie Bros. Auctioneers Incorporated, a company organized under the federal laws of Canada ("<u>RBA</u>"), Ritchie Bros. Holdings Inc., a Washington corporation and a direct and indirect wholly owned subsidiary of RBA ("<u>US Holdings</u>"), Impala Merger Sub I, LLC, a Delaware limited liability company and a direct wholly owned subsidiary of US Holdings ("<u>Merger Sub 1</u>"), and Impala Merger Sub II, LLC, a Delaware limited liability company and a direct wholly owned subsidiary of US Holdings ("<u>Merger Sub 2</u>"), providing for RBA's acquisition of the Company in a stock and cash transaction (the "<u>Transaction</u>");

WHEREAS, upon the terms and subject to the conditions set forth in the Merger Agreement, (i) Merger Sub 1 will be merged with and into the Company (the "<u>First Merger</u>"), with the Company surviving as an indirect wholly owned subsidiary of RBA and a direct wholly owned subsidiary of US Holdings (the "<u>Surviving Corporation</u>"), and (ii) immediately following the consummation of the First Merger, the Surviving Corporation will be merged with and into Merger Sub 2 (together with the First Merger, the "<u>Mergers</u>"), with Merger Sub 2 surviving as a direct wholly owned subsidiary of US Holdings;

WHEREAS, the Company and representatives of the Ancora Investors have engaged in discussions regarding various matters concerning the Company, including the Transaction and matters concerning the Board of Directors of the Company (the "<u>Board</u>");

WHEREAS, as of the date of this Agreement, the Ancora Investors Beneficially Own (as defined below) common stock of the Company, $0.01 par value per share (the "<u>Common Stock</u>"), as set forth on <u>Schedule A</u> hereto; and

WHEREAS, the Parties have determined that it is in their respective best interests to come to an agreement with respect to the composition of the Board and certain other matters, as provided in this Agreement.

NOW, THEREFORE, in consideration of and reliance upon the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereto agree as follows:

1. <u>Board Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Subject to completion of the director information
 and interviews provided for in <u>Section 4(a)</u>, the Company shall take all actions
 necessary pursuant to the terms of the Merger Agreement to designate Timothy O'Day
 (the " <u>First Ancora Director Candidate</u> ") as a Company Designee (as defined
 in the Merger Agreement) for all purposes under the Merger Agreement, including Section 2.7
 thereof, such that the First New Director will be appointed to the board of directors of
 RBA (the " <u>RBA Board</u> ") immediately following the effective time of the
 First Merger.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. In the event that either (a) the Company
 Stockholder Approval or the Parent Shareholder Approval (each as defined in the Merger Agreement)
 is not obtained at (x) a Company stockholder meeting at which the proposal with respect
 to adoption of the Merger Agreement was submitted to a vote (the " <u>Company Stockholders Meeting</u> ") or (y) a RBA shareholder meeting at which the issuance of RBA shares
 in connection with the Mergers was submitted to a vote or (b) the Company files its
 definitive proxy materials for the 2023 Annual Meeting (the first to occur of such events,
 a " <u>Transaction Vote Down</u> "), (i) within five (5) business days
 of the Transaction Vote Down, one of the Company's current directors (other than the
 Company's Chief Executive Officer) shall tender his or her resignation from the Board
 and the Company shall, after completion of the director information and interviews provided
 for in <u>Section 4(b)</u>, appoint the First Ancora Director Candidate as an observer
 to the Board, (ii) as soon as reasonably practicable the Company shall appoint a second
 director candidate to be selected pursuant to the procedures set forth in <u>Section 1(c)</u> as
 an observer to the Board (the " <u>Second Ancora Director Candidate</u> ", and,
 together with the First Ancora Director Candidate, the " <u>Ancora Director Candidates</u> "),
 and (iii) as soon as reasonably practicable the Company shall appoint a third director
 candidate to be mutually agreed between the Company and the Ancora Investors pursuant to
 the procedures set forth in <u>Section 1(d)</u> as an observer to the Board (the
 " <u>Mutual Director Candidate</u> " and, together with the First Ancora Director
 Candidate and the Second Ancora Director Candidate, the " <u>New Director Candidates</u> ").
 Prior the 2024 annual meeting of stockholders, the Board and all applicable committees of
 the Board shall not increase the size of the Board to more than eleven (11) directors without
 the prior written agreement of the Ancora Investors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. In the event of a Transaction Vote Down,
 the Ancora Investors shall identify two (2) potential candidates who shall qualify as
 "independent" pursuant to the rules of the New York Stock Exchange and the
 applicable rules and regulations of the Securities and Exchange Commission (the " <u>SEC</u> ")
 and who shall possess business, asset management, marketing, technology, accounting, finance
 and/or other relevant experiences or expertise to be a director to serve as the Second Ancora
 Director Candidate (the " <u>Proposed Ancora Director Candidates</u> "); provided
 that such Proposed Ancora Director Candidates shall not be any of the Ancora Investors or
 any Affiliate, Associate or employee of any of the Ancora Investors. The Company shall select
 one of the Proposed Ancora Director Candidates to complete the director information and interviews
 provided for in <u>Section 4(b)</u>, and after completion of such director information
 and interviews, such Proposed Ancora Director Candidate shall be promptly appointed as an
 observer to the Board, subject to the good faith review and approval (such approval not to
 be unreasonably conditioned, withheld or delayed) by the Nominating and Corporate Governance
 Committee (the " <u>NCG Committee</u> ") of the Board and the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. In
 the event of a Transaction Vote Down, the Company and the Ancora Investors shall cooperate
 to identify and mutually agree upon a candidate who shall qualify as "independent"
 pursuant to the rules of the New York Stock Exchange and the applicable rules and
 regulations of the SEC and who shall possess business, asset management, marketing, technology,
 accounting, finance and/or other relevant experiences or expertise to be a director to serve
 as the Mutual Director Candidate; provided that such candidate shall not be any of the Ancora
 Investors or any Affiliate, Associate or employee of any of the Ancora Investors. After completion
 of the director information and interviews provided for in <u>Section 4(b)</u>, then
 such individual shall be promptly appointed as an observer to the Board, subject to the good
 faith review and approval (such approval not to be unreasonably conditioned, withheld or
 delayed) by the NCG Committee and the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. In the event of a Transaction Vote Down,
 the Company agrees that during the period commencing on the date each New Director Candidate
 is appointed as an observer to the Board until the appointment of such New Director Candidate
 to the Board, such New Director Candidate will receive, on a confidential and restricted
 basis, copies of all documents distributed to the Board, including, without limitation, notice
 of all meetings of the Board, all written consents executed by the Board, all materials prepared
 for consideration at any meeting of the Board, and all minutes related to each meeting of
 the Board occurring on or after the date of such appointment as an observer contemporaneous
 with their distribution to the Board. The Company will be entitled to withhold any information
 and exclude such New Director Candidate from any Board or Board committee meeting, or any
 portion thereof, as is reasonably determined by the Company to be necessary to protect the
 Company's attorney-client privilege. Such New Director Candidate will have the right
 to attend and participate, but not vote, at all meetings of the Board during this period
 (whether such meetings are held in person, telephonically or otherwise). As a condition to
 each New Director Candidate (or any Replacement New Director (as defined below) thereof,
 as applicable) serving as an observer to the Board, such New Director (or any Replacement
 New Director thereof, as applicable) will have delivered an undertaking to the Company as
 set forth on <u>Exhibit A</u> (the " <u>Observer Undertaking</u> ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. In
 the event of a Transaction Vote Down, the Company will include the New Director Candidates
 (or any Replacement New Director thereof, as applicable) in the Company's proxy statement
 for the 2023 Annual Meeting, which shall provide that the Company shall increase the size
 of the Board to eleven (11) directors and appoint the New Director Candidates (the " <u>New Directors</u> ") to the Board immediately following the 2023 Annual Meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. If,
 during the Standstill Period, (i) the First Ancora Director Candidate is rendered unable
 (due to death or disability or any other reason) to, or refuses to, serve as a Company Designee
 for any reason, or (ii) the First Ancora Director Candidate or the Second Ancora Director
 Candidate appointed pursuant to the terms of this Agreement resigns from the Board or as
 an observer thereto prior to such appointment or is rendered unable (due to death or disability
 or any other reason) to, or refuses to, serve as an observer to the Board or a director on
 the Board for any reason, then, so long as the Ancora Investors Beneficially Own in the aggregate at least 2.0% of the Company's then-outstanding Common Stock, the Ancora Investors
 shall designate two (2) potential replacements who shall qualify as "independent"
 pursuant to the rules of the New York Stock Exchange and the applicable rules and
 regulations of the SEC and who shall possess business, asset management, marketing, technology,
 accounting, finance and/or other relevant experiences or expertise to be a director to fill
 the resulting vacancy (the " <u>Proposed Replacements</u> "); provided that such
 Proposed Replacement shall not be any of the Ancora Investors, any Affiliate, Associate or
 employee of any of the Ancora Investors or any individual previously disqualified in connection
 with the selection of the Second Ancora Director Candidate or any previous Proposed Replacement.
 The Company shall select one (1) of the Proposed Replacements to complete the director
 information and interviews provided for in <u>Section 4(a)</u> or <u>4(b)</u>,
 as applicable, and after completion of such director information and interviews, such Proposed
 Replacement shall be promptly appointed as a Company Designee or as an observer to the Board
 or a director on the Board, as applicable, subject to the good faith review and approval
 (such approval not to be unreasonably conditioned, withheld or delayed) by the NCG Committee
 and the Board (any such replacement director, a " <u>Replacement Ancora Director</u> "); <u>provided</u>, that, to the extent that a Replacement Ancora Director is selected to replace
 the First Ancora Director Candidate prior to the effective time of the First Merger, the
 designation of such Replacement Ancora Director as a Company Designee shall be subject to
 the prior written consent of RBA in accordance with the terms of the Merger Agreement. Upon
 a Replacement Ancora Director's appointment to the Board, such Replacement Ancora Director
 shall be deemed to be a First Ancora Director Candidate or a Second Ancora Director Candidate,
 as applicable, and a New Director Candidate for all purposes under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. If,
 during the Standstill Period, the Mutual Director Candidate appointed pursuant to the terms
 of this Agreement resigns from the Board or as an observer thereto prior to such appointment
 or is rendered unable (due to death or disability) to, or refuses to, serve as an observer
 to the Board or a director on the Board for any reason, then, so long as the Ancora Investors
 Beneficially Own in the aggregate at least at least 2.0% of the Company's then-outstanding
 Common Stock, the Company and the Ancora Investors shall cooperate to identify and mutually
 agree upon a candidate who shall qualify as "independent" pursuant to the rules of
 the New York Stock Exchange and the applicable rules and regulations of the SEC and
 who shall possess business, asset management, marketing, technology, accounting, finance
 and/or other relevant experiences or expertise to be a director (a " <u>Replacement Mutual Director</u> " and, together with any Replacement Ancora Director, a " <u>Replacement New Director</u> "). After completion of the director information and interviews provided
 for in <u>Section 4(b)</u>, then such Replacement Mutual Director shall be promptly
 appointed as an observer to the Board or a director on the Board, as applicable, subject
 to the good faith review and approval (such approval not to be unreasonably conditioned,
 withheld or delayed) by the NCG Committee and the Board. Upon a Replacement Mutual Director's
 appointment to the Board, such Replacement Mutual Director shall be deemed to be a Mutual
 Director Candidate and a New Director Candidate for all purposes under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Notwithstanding anything to the contrary
 in this Agreement, from and after the time that the First Ancora Director Candidate is appointed
 to the RBA Board pursuant to <u>Section 1(a)</u>, the rights granted to the Ancora Investors
 pursuant to this <u>Section 1</u>, including the right to designate any Replacement
 New Director, shall cease, terminate and have no further force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. In
 the event of a Transaction Vote Down, the Company agrees that during the period commencing
 on the date the New Director Candidates are appointed as observers to the Board until the
 appointment of the New Director Candidates to the Board, the Company shall appoint the Ancora
 Director Candidates as observers to the Operations Committee of the Board (the " <u>Operations Committee</u> "). The Ancora Director Candidates will receive, on a confidential and
 restricted basis, copies of all documents distributed to the Operations Committee, including,
 without limitation, notice of all meetings of the Operations Committee, all written consents
 executed by the Operations Committee, all materials prepared for consideration at any meeting
 of the Operations Committee, and all minutes related to each meeting of the Operations Committee
 occurring on or after the date of such appointment as an observer contemporaneous with their
 distribution to the Operations Committee. The Company will be entitled to withhold any information
 and exclude the Ancora Director Candidates from any Operations Committee meeting, or any
 portion thereof, as is reasonably determined by the Company to be necessary to protect the
 Company's attorney-client privilege. The Ancora Director Candidates will have the right
 to attend and participate, but not vote, at all meetings of the Operations Committee during
 this period (whether such meetings are held in person, telephonically or otherwise). The
 Board and all applicable committees thereof shall take such actions as are necessary to,
 effective as of the appointment of the Ancora Director Candidates to the Board, add the Ancora
 Director Candidates to the Operations Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k. While any New Director Candidate (or any
 Replacement New Director, as applicable) serves as a director of the Board, such New Director
 Candidate shall receive compensation (including equity-based compensation, if any) for the
 Board and committee meetings attended, an annual retainer and benefits (including expense
 reimbursements) on the same basis as all other non-employee directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l. The New Director Candidates (and any Replacement
 New Director, as applicable) will be governed by the same protections and obligations regarding
 confidentiality, conflicts of interest, related party transactions, fiduciary duties, codes
 of conduct, trading and disclosure policies, director resignation policy, and other governance
 guidelines and policies of the Company as other directors, as amended from time to time (collectively,
 " <u>Company Policies</u> "), and shall have the same rights and benefits, including
 with respect to insurance, indemnification, compensation and fees, as are applicable to all
 independent directors of the Company. The Company shall make available to the New Director
 Candidates copies of all Company Policies not publicly available on the Company's website.
 At all times while any New Director Candidate (or any Replacement New Director, as applicable)
 is serving as a member of the Board, (i) such New Director Candidate shall not disclose
 to any Ancora Investor or any " <u>Affiliate</u> " or " <u>Associate</u> "
 (for purposes of this Agreement, as each is defined in Rule 12b-2 promulgated by the
 SEC pursuant to the Securities Exchange Act of 1934, as amended (the " <u>Exchange Act</u> "))
 of each such Ancora Investor (collectively and individually, the " <u>Ancora Investor Affiliates</u> ") or any other person or entity not affiliated with the Company any
 confidential information of the Company, and (ii) the Ancora Investors shall not, and
 shall cause their Affiliates not to, seek to obtain confidential information of the Company
 from any New Director Candidate (or any Replacement New Director). Furthermore, the Ancora
 Investors agree that no New Director Candidate (nor any Replacement New Director) may share
 any information with the Ancora Investors in respect of the Company which they learn in their
 capacity as a director of the Company, including discussions or matters considered in meetings
 of the Board or any Board committee, at any time, for any reason, without the Company's
 prior written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;m. Notwithstanding anything to the contrary
 in this Agreement, the rights and privileges set forth in this Agreement shall be personal
 to the Ancora Investors and may not be transferred or assigned to any individual, corporation,
 partnership, limited liability company, joint venture, estate, trust, association, organization
 or other entity of any kind or nature (each, a " <u>Person</u> "), except that
 the Ancora Investors shall be permitted to transfer or assign this Agreement to their respective
 Affiliates, provided that any such transfer or assignment shall not relieve any transferring
 Ancora Investor party of its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;n. For purposes of this Agreement, the term
 " <u>Beneficially Own</u> " or variations thereof shall have the meaning set forth
 in Rule 13d-3 promulgated under the Exchange Act.

2. <u>Standstill and Voting</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Each of the Ancora Investors agrees that
 during the Standstill Period, the Ancora Investors and the Ancora Investor Affiliates will
 not (and they will not assist or encourage others to), directly or indirectly, in any manner,
 without prior written approval of the Board:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. take any actions, including acquiring, seeking
 to acquire or agreeing to acquire (directly or indirectly, whether by market purchases, private
 purchases, tender or exchange offer, through the acquisition of control of another person,
 by joining a "group" (within the meaning of Section 13(d)(3) of the
 Exchange Act), through swap or hedging transactions or otherwise) any shares of Common Stock
 (or Beneficial Ownership thereof) or any securities convertible or exchangeable into or exercisable
 for any shares of Common Stock (or Beneficial Ownership thereof) (including any derivative
 securities or any other rights decoupled from the underlying securities of the Company) such
 that the Ancora Investors would Beneficially Own in the aggregate in excess of 4.99% of the
 then-outstanding shares of Common Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. other than in open market sale transactions
 where the identity of the purchaser is not known, sell, offer, or agree to sell, directly
 or indirectly, through swap or hedging transactions or otherwise, the securities of the Company
 or any rights decoupled from the underlying securities held by the Ancora Investors to any
 person or entity not (A) a party to this Agreement, (B) a member of the Board,
 (C) an officer of the Company or (D) an Affiliate of the Ancora Investors (any
 person or entity not set forth in clauses (A)-(D) shall be referred to as a " <u>Third Party</u> ") that would result in such Third Party, together with its Affiliates, owning,
 controlling or otherwise having any, beneficial or other ownership interest representing
 in the aggregate in excess of 4.99% of the shares of Common Stock outstanding at such time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. (A) advise or knowingly encourage
 or influence any other Person or knowingly assist any third party in so encouraging, assisting
 or influencing any other Person with respect to the giving or withholding of any proxy, consent
 or other authority to vote or in conducting any type of referendum (other than such encouragement,
 advice or influence that is consistent with the Board's recommendation in connection
 with such matter) or (B) advise, influence or encourage any Person with respect to,
 or effect or seek to effect, whether alone or in concert with others, the election, nomination
 or removal of a director other than as permitted by <u>Section 1</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. solicit proxies or written consents of stockholders
 or conduct any other type of referendum (binding or non-binding) (including any "withhold,"
 "vote no" or similar campaign) with respect to the shares of Common Stock, or
 from the holders of the shares of Common Stock, or become a "participant" (as
 such term is defined in Instruction 3 to Item 4 of Schedule 14A promulgated under the
 Exchange Act) in or knowingly encourage or assist any third party in any "solicitation"
 of any proxy, consent or other authority (as such terms are defined under the Exchange Act)
 to vote any shares of Common Stock (other than any encouragement, advice or influence that
 is consistent with the Board's recommendation in connection with such matter);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. (A) form, join or in any other way participate
 in a "group" with respect to any shares of Common Stock (other than a "group"
 solely consisting of the Ancora Investors or Ancora Investor Affiliates), (B) grant
 any proxy, consent or other authority to vote with respect to any matters to be voted on
 by the Company's stockholders (other than to the named proxies included in the Company's
 proxy card for any Stockholder Meeting (as defined below) or in accordance with <u>Section 2(b)</u>)
 or (C) agree to deposit or deposit any shares of Common Stock or any securities convertible
 or exchangeable into or exercisable for any such shares of Common Stock in any voting trust,
 agreement or similar arrangement (other than (I) to the named proxies included in the
 Company's proxy card for any Stockholder Meeting, (II) customary brokerage accounts,
 margin accounts, prime brokerage accounts and the like or (III) any agreement solely
 among the Ancora Investors or Ancora Investor Affiliates);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. separately or in conjunction with any third
 party in which it is or proposes to be either a principal, partner or financing source or
 is acting or proposes to act as broker or agent for compensation, propose (publicly or privately,
 with or without conditions), indicate an interest in or effect any tender offer or exchange
 offer, merger, acquisition, reorganization, restructuring, recapitalization or other business
 combination involving the Company or any of its subsidiaries or the assets or businesses
 of the Company or any of its subsidiaries or actively encourage or initiate or support any
 other third party in any such activity; <u>provided</u>, <u>however</u>, that the Ancora
 Investors and Ancora Investor Affiliates shall be permitted to (A) sell or tender their
 shares of Common Stock, and otherwise receive consideration, pursuant to any such transaction,
 including the Mergers, and (B) vote on any such transaction, including the Mergers,
 in accordance with <u>Section 2(b)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. (A) nominate, recommend for nomination
 or give notice of an intent to nominate or recommend for nomination a person for election
 at any Stockholder Meeting at which the Company's directors are to be elected or (B)(I) present
 at any Stockholder Meeting any proposal (pursuant to Rule 14a-8 or otherwise) for consideration
 for action by the stockholders or (II) call or seek to call, or request the call of,
 alone or in concert with others, or support another stockholder's call for, any meeting
 of stockholders, whether or not such a meeting is permitted by the Company's organizational
 documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;viii. take any action in support of or make
 any proposal or request that constitutes: (A) controlling, changing or influencing the
 Board, management or policies of the Company, including any plans or proposals to change
 the number or term of directors or the removal of any directors, or to fill any vacancies
 on the Board; (B) any material change in the capitalization, stock repurchase programs
 and practices or dividend policy of the Company; (C) any other material change in the
 Company's management, business or corporate structure; (D) seeking to have the
 Company waive or make amendments or modifications to the Company's charter, the Company's
 Amended and Restated Bylaws (the " <u>Bylaws</u> ") or any of the Company Policies
 (each as may be amended from time to time), or other actions that may impede or facilitate
 the acquisition of control of the Company by any person; (E) causing a class of securities
 of the Company to be delisted from, or to cease to be authorized to be quoted on, any securities
 exchange; or (F) causing a class of securities of the Company to become eligible for
 termination of registration pursuant to Section 12(g)(4) of the Exchange Act, in
 each case with respect to the foregoing clauses (A) through (F), except as set forth
 in <u>Section 1</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ix. make any request for stockholder list materials
 or other books and records of the Company under Section 220 of the Delaware General
 Corporation Law or otherwise; <u>provided</u> that if any New Director (or any Replacement
 New Director, as applicable) makes such a request solely in such New Director's capacity
 as a director of the Company in a manner consistent with his or her fiduciary duties to the
 Company, such material and other books and records may not be shared with any member of the
 Ancora Investors or any Ancora Investor Affiliate, notwithstanding any other provision of
 this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;x. institute, solicit, join (as a party) or
 knowingly assist any litigation, arbitration or other proceeding against the Company or any
 of its current or former directors or officers (including derivative actions), other than
 (A) litigation by the Ancora Investors to enforce the provisions of this Agreement,
 (B) counterclaims with respect to any proceeding initiated by, or on behalf of, the
 Company or its Affiliates against the Ancora Investors or any New Director (or any Replacement
 New Director, as applicable) and (C) the exercise of statutory appraisal rights; <u>provided</u> that the foregoing shall not prevent the Ancora Investors from responding to or complying
 with a validly issued legal process (and the Company agrees that this <u>Section 2(a)(x)</u> shall
 apply *mutatis mutandis* to the Company and its directors, officers, employees and agents
 (in each case, acting in such capacity) and Affiliates with respect to the Ancora Investors);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xi. encourage, facilitate, support, participate
 in or enter into any negotiations, agreements, arrangements or understandings with respect
 to, the taking of any actions by any other Person in connection with the foregoing that is
 prohibited to be taken by the Ancora Investors (except as set forth in <u>Section 1</u>);
 or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xii. request that the Company, directly or indirectly,
 amend or waive any provision of this <u>Section 2</u> (including this clause (a)(xii)),
 other than through non-public communications with the Company that would not reasonably be
 expected to trigger public disclosure obligations for any of the Parties.

The foregoing provisions of this <u>Section 2(a)</u> shall not be deemed to prevent any member of the Ancora Investors from (i) communicating privately with the Board or any of the Company's executive officers regarding any matter, so long as such communications are not intended to, and would not reasonably be expected to, require the Company or any Ancora Investor to make public disclosure with respect thereto, (ii) communicating privately with stockholders of the Company and which communications are not made with an intent to otherwise violate this <u>Section 2(a)</u>, <u>Section 3</u> or any other provision of this Agreement, (iii) identifying potential director candidates to serve on the Board so long as such actions do not create a public disclosure obligation for the Ancora Investors or the Company, are not publicly disclosed by the Ancora Investors or its Affiliates and are undertaken on a basis reasonably designed to be confidential; (iv) making or sending private communications to investors in any member of the Ancora Investors or any of their Affiliates or prospective investors in any member of the Ancora Investors or any of their Affiliates, provided that such statements or communications (1) are based on publicly available information; and (2) are not reasonably expected to be publicly disclosed and are understood by all parties to be confidential communications; or (v) taking any action to the extent necessary to comply with any law, rule or regulation or any action required by any governmental or regulatory authority or stock exchange that has, or may have, jurisdiction over any of the Ancora Investors. Furthermore, for the avoidance of doubt, nothing in this Agreement shall be deemed to restrict in any way the New Director Candidates (or any Replacement New Director, as applicable) in the exercise of their fiduciary duties under applicable law as a director of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. In respect of any vote or consent of the
 Company's stockholders during the Standstill Period (whether at an annual or special
 stockholder meeting (including the Company Stockholders Meeting)) or pursuant to an action
 by written consent of the stockholders) (each a " <u>Stockholder Meeting</u> "),
 each of the Ancora Investors shall appear or act in person or by proxy and vote all shares
 of Common Stock Beneficially Owned by them in accordance with the recommendation of the Board
 with respect to (i) the election, removal and/or replacement of directors (a " <u>Director Proposal</u> "), (ii) the ratification of the appointment of the Company's
 independent registered public accounting firm and (iii) any other proposal submitted
 to the Company's stockholders at a Stockholder Meeting, in each case as such recommendation
 of the Board is set forth in the applicable definitive proxy statement filed in respect thereof; <u>provided</u>, <u>however</u>, that, in the event that each of Institutional Shareholder
 Services Inc. (" <u>ISS</u> ") and Glass Lewis & Co., LLC (" <u>Glass Lewis</u> ") make a recommendation that differs from the recommendation of the Board
 with respect to any proposal submitted to the stockholders at any Stockholder Meeting (other
 than Director Proposals or any proposal submitted to the stockholders at the Company Stockholders
 Meeting (which shall be subject to the immediately following sentence)), the Ancora Investors
 are permitted to vote the shares of Common Stock Beneficially Owned by them at such Stockholder
 Meeting in accordance with the ISS and Glass Lewis recommendation; <u>provided</u>, <u>further</u>,
 that, except as provided in the immediately following sentence, the Ancora Investors shall
 be entitled to vote the shares of Common Stock Beneficially Owned by them in their sole discretion
 with respect to (A) any publicly announced proposal relating to any transaction pursuant
 to which any person is or becomes a Beneficial Owner, directly or indirectly, of securities
 of the Company representing more than 50% of the Company's then-outstanding equity
 interests and voting power, a merger, stock-for-stock transaction, spin-off, acquisition,
 disposition of all or substantially all of the assets of the Company and its subsidiaries
 or other business combination involving the Company, (B) any financing, recapitalization,
 restructuring, share issuance or similar extraordinary transaction or (C) the implementation
 of takeover defenses not in existence as of the date of this Agreement, in each case, that
 requires a vote of the Company's stockholders. In furtherance of the foregoing and
 notwithstanding anything to the contrary therein, the Ancora Investors hereby irrevocably
 commit to appear or act in person or by proxy and vote all shares of Common Stock Beneficially
 Owned by them in accordance with the recommendation of the Board with respect to all proposals
 submitted to the Company Stockholders at the Company Stockholders Meeting, including (a) any
 proposal to adopt the Merger Agreement and thereby approve the transactions contemplated
 by the Merger Agreement, including the Mergers (the " <u>Merger Proposal</u> "),
 (b) any proposal to approve, on a nonbinding advisory basis, the compensation that may
 be paid or become payable to named executive officers of the Company that is based on or
 otherwise relates to the transactions contemplated by the Merger Agreement (the " <u>Compensation Proposal</u> "), and (c) any proposal to approve the adjournment of the Company
 Stockholders Meeting, if necessary or appropriate, to solicit additional proxies if there
 are insufficient votes at the time of the Company Stockholders Meeting to approve the Merger
 Proposal; <u>provided</u> that, solely with respect to the Compensation Proposal, in the
 event that each of ISS and Glass Lewis makes a recommendation that differs from the recommendation
 of the Board with respect to the Compensation Proposal, the Ancora Investors shall be permitted
 to vote the shares of Common Stock Beneficially Owned by them at the Company Stockholders
 Meeting in accordance with the ISS and Glass Lewis recommendation with respect to the Compensation
 Proposal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. The
 " <u>Standstill Period</u> " shall begin as of the date of this Agreement and shall
 remain in full force and effect until the later of (x) the Closing (as defined in the
 Merger Agreement) and (y) the conclusion of the 2023 Annual Meeting; <u>provided</u>, <u>however</u>, that upon the public announcement by the Company of a definitive agreement
 for any transaction that would constitute or result in a Change of Control (as defined below)
 which has not been approved by each of the New Director Candidates in their capacity as
 members of the Board, this Agreement shall immediately and automatically terminate in its
 entirety, and no Party hereunder shall have any further rights or obligations under this
 Agreement. For purposes of this Agreement, a " <u>Change of Control</u> " shall
 be deemed to have taken place if (1) any person is or becomes a beneficial owner, directly
 or indirectly, of securities of the Company representing more than 50% of the equity interests
 and voting power of the Company's then outstanding equity securities, (2) the
 Company effects a merger or a stock-for-stock transaction with a third party whereby immediately
 after the consummation of the transaction the Company's stockholders retain less than
 50% of the equity interests and voting power of the surviving entity's then outstanding
 equity securities or (3) the Company sells all or substantially all of the Company's
 assets to a third party; <u>provided</u> that neither the Transaction nor any transaction
 that the Board determines constitutes a Company Superior Proposal (as defined in the Merger
 Agreement) shall be deemed a Change of Control for any purpose hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Each
 member of the Ancora Investors shall comply, and shall cause each of its respective Ancora
 Investor Affiliates to comply, with the terms of this Agreement and shall be responsible
 for any breach of this Agreement by any such Ancora Investor Affiliate.

3. <u>Mutual Non-Disparagement</u>. During the
 Standstill Period, (a) the Ancora Investors shall not, and shall cause their respective
 directors, officers, partners, members, employees, agents (in each case, acting in such capacity)
 and Affiliates not to make, or cause to be made, by press release or other public statement
 to the press or media, any statement or announcement that constitutes an ad hominem attack
 on, or otherwise disparages, the Company, RBA or their respective subsidiaries or their respective
 officers and directors or any person who has served as an officer or director of the Company,
 RBA or any of their respective subsidiaries in the past and (b) the Company shall not,
 and shall cause its directors, officers, partners, members, employees, agents (in each case,
 acting in such capacity) and Affiliates not to, make, or cause to be made, by press release
 or other public statement to the press or media, any statement or announcement that constitutes
 an ad hominem attack on, or otherwise disparages, the Ancora Investors or their respective
 officers or directors or any person who has served as an officer or director of any Ancora
 Investor in the past. The foregoing shall not prevent the making of any factual statement
 including in any compelled testimony or production of information, either by legal process,
 subpoena, or as part of a response to a request for information from any governmental authority
 with purported jurisdiction over the party from whom information is sought.

4. <u>Director Information</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. As a condition to the First Ancora Director
 Candidate's (or any Replacement New Director's) designation as a Company Designee,
 the First Ancora Director Candidate (or any Replacement New Director, as applicable) will
 provide any information the Company reasonably requires, including information required to
 be disclosed in a proxy statement or other filing under applicable law, stock exchange rules or
 listing standards, information in connection with assessing eligibility, independence and
 other criteria applicable to directors or satisfying compliance and legal obligations, and
 will consent to appropriate background checks and customary interviews with the NCG Committee,
 to the extent, in each case, consistent with the information, background checks and interviews
 required by the Company in accordance with past practice with respect to other members of
 the Board. If, following the completion of the Company's initial background review
 process, the Board learns that the First Ancora Director Candidate or any Replacement New
 Director, as the case may be, has committed, been indicted or charged with, or made a plea
 of *nolo contendre* to a felony or a misdemeanor involving moral turpitude, deceit,
 dishonesty or fraud, then the Board may revoke its designation of such First Ancora Director
 Candidate or Replacement New Director as a Company Designee and, in such case, such First
 Ancora Director Candidate or Replacement New Director shall be replaced in the manner set
 forth in <u>Section 1(g)</u> of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. In the event of a Transaction Vote Down,
 as a condition to the New Director Candidates' (or any Replacement New Director's)
 appointment as observers to or members of the Board and any subsequent nomination for election
 as a director of the Company at an annual meeting of the Company's stockholders, such
 New Director Candidate (or any Replacement New Director, as applicable) will provide any
 information the Company reasonably requires, including information required to be disclosed
 in a proxy statement or other filing under applicable law, stock exchange rules or listing
 standards, information in connection with assessing eligibility, independence and other criteria
 applicable to directors or satisfying compliance and legal obligations, and will consent
 to appropriate background checks and customary interviews with the NCG Committee, to the
 extent, in each case, consistent with the information, background checks and interviews required
 by the Company in accordance with past practice with respect to other members of the Board.
 If, following the completion of the Company's initial background review process, the
 Board learns that any New Director Candidate or any Replacement New Director, as the case
 may be, has committed, been indicted or charged with, or made a plea of *nolo contendre* to a felony or a misdemeanor involving moral turpitude, deceit, dishonesty or fraud,
 then the Board may request that such New Director Candidate (or any Replacement New Director,
 as applicable) resign from serving as an observer to the Board and, in such case, the resulting
 vacancy on the Board shall be filled in the manner set forth in <u>Section 1(g)</u> or <u>Section 1(h)</u>, as applicable, of this Agreement.

5. <u>Disclosure of this Agreement</u>. Promptly
 following the execution of this Agreement, the Company and the Ancora Investors shall jointly
 issue a press release (the " <u>Press Release</u> ") announcing this Agreement,
 substantially in the form attached hereto as <u>Exhibit B</u>. Prior to the issuance
 of the Press Release, neither the Company nor the Ancora Investors shall issue any press
 release or public announcement regarding this Agreement or take any action that would require
 public disclosure thereof without the prior written consent of the other Party. Except as
 required by applicable law, none of the Parties or any of their Affiliates shall make any
 public statement concerning the subject matter of this Agreement inconsistent with the Press
 Release. During the period commencing on the date hereof and ending on the date this Agreement
 terminates in accordance with <u>Section 16</u>, no Party shall make any public announcement
 or statement that is inconsistent with or contrary to the statements made in the Press Release,
 except to the extent required by law or the rules and regulations under any stock exchange
 or governmental entity with the prior written consent of the Ancora Investors and the Company,
 as applicable, and otherwise in accordance with this Agreement. Notwithstanding the foregoing,
 the Ancora Investors acknowledge and agree that the Company may file this Agreement as an
 exhibit to a Current Report on Form 8-K within four (4) business days of the
 execution of this Agreement, provided that the Company shall first preview such Current Report
 with the Ancora Investors in advance of making such filing and consider comments by the Ancora
 Investors.

6. <u>Representations and Warranties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The Company represents and warrants to
 the Ancora Investors that: (a) the Company has the requisite corporate power and authority
 to execute this Agreement and any other documents or agreements to be entered into in connection
 with this Agreement and to bind it hereto and thereto; (b) RBA has consented in writing
 to the designation of the First Ancora Director Candidate as a Company Designee (as defined
 in the Merger Agreement), subject to the completion of the director information and interviews
 provided for in <u>Section 4(a)</u>, such that the First Ancora Director Candidate shall
 be appointed to the RBA Board immediately following the effective time of the First Merger
 (for the avoidance of doubt, the designation of any Replacement New Director as a Company
 Designee would be subject to the prior written consent of RBA in accordance with the terms
 of the Merger Agreement); (c) this Agreement has been duly and validly authorized,
 executed and delivered by the Company, constitutes a valid and binding obligation and agreement
 of the Company and is enforceable against the Company in accordance with its terms, except
 as enforcement thereof may be limited by applicable bankruptcy, insolvency, reorganization,
 moratorium, fraudulent conveyance or similar laws generally affecting the rights of creditors
 and subject to general equity principles; and (d) the execution, delivery and performance
 of this Agreement by the Company does not and will not (i) violate or conflict with
 any law, rule, regulation, order, judgment or decree applicable to the Company or (ii) result
 in any breach or violation of or constitute a default (or an event which with notice or lapse
 of time or both could constitute such a breach, violation or default) under or pursuant to,
 or result in the loss of a material benefit under, or give any right of termination, amendment,
 acceleration or cancellation of, any organizational document, agreement, contract, commitment,
 understanding or arrangement to which the Company is a party or by which it is bound.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The Ancora Investors represent and warrant
 to the Company that: (a)(i) as of the date of this Agreement, the Ancora Investors collectively
 Beneficially Own, directly or indirectly, 4,893,629 shares of Common Stock; and (a)(ii) as
 of the date of this Agreement, other than as disclosed herein, the Ancora Investors do not
 currently have, and does not currently have any right to acquire, any interest in any other
 securities of the Company (or any rights, options or other securities convertible into or
 exercisable or exchangeable (whether or not convertible, exercisable or exchangeable immediately
 or only after the passage of time or the occurrence of a specified event) for such securities
 or any obligations measured by the price or value of any securities of the Company or any
 of its controlled Affiliates, including any swaps or other derivative arrangements designed
 to produce economic benefits and risks that correspond to the ownership of Common Stock,
 whether or not any of the foregoing would give rise to Beneficial Ownership (as determined
 under Rule 13d-3 promulgated under the Exchange Act), and whether or not to be settled
 by delivery of Common Stock, payment of cash or by other consideration, and without regard
 to any short position under any such contract or arrangement); (b) this Agreement has
 been duly and validly authorized, executed and delivered by each Ancora Investor, and constitutes
 a valid and binding obligation and agreement of each Ancora Investor, enforceable against
 each Ancora Investor in accordance with its terms, except as enforcement thereof may be limited
 by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or
 similar laws generally affecting the rights of creditors and subject to general equity principles;
 (c) each member of the Ancora Investors has the authority to execute this Agreement
 on behalf of itself and the applicable member of the Ancora Investors associated with that
 signatory's name, and to bind such member of the Ancora Investors to the terms of this
 Agreement, including by virtue of having sole voting and dispositive power over such member
 of the Ancora Investors' Common Stock; (d) each member of the Ancora Investors
 shall cause each of its respective Affiliates to comply with the terms of this Agreement,
 and (e) the execution, delivery and performance of this Agreement by such member of
 the Ancora Investors does not and will not violate or conflict with (i) any law, rule,
 regulation, order, judgment or decree applicable to it or the New Directors, or (ii) result
 in any breach or violation of or constitute a default (or an event which with notice or lapse
 of time or both could become a default) under or pursuant to, or result in the loss of a
 material benefit under, or give any right of termination, amendment, acceleration or cancellation
 of, any organizational document, agreement, contract, commitment, understanding or arrangement
 to which such member of the Ancora Investors is a party or by which it is bound. Each member
 of the Ancora Investors represents and warrants that it has no voting commitments (written
 or oral) with any New Director as of the date of this Agreement and agrees that it shall
 not compensate or otherwise incentivize any New Director for such New Director's service
 or action on the Board or enter into voting commitments, (written or oral) relating to the
 Company with any director or officer of the Company. Except as otherwise disclosed in the
 Nomination Notice, each member of the Ancora Investors further represents and warrants that
 it does not have, directly or indirectly, any agreements, arrangements or understandings
 with any person (other than their own representatives) with respect to its investment in
 the Company, any strategic, capital, management or other operational matter with respect
 to the Company, any potential transaction involving the Company, or the acquisition, voting
 or disposition of any securities of the Company. Each member of the Ancora Investors further
 represents and warrants that no member of the Ancora Investors has any control or influence
 over any compensation or other monetary payments to be received by any New Director in connection
 with such New Director's service as a director of the Company and that none of the
 members of the Ancora Investors are aware of any facts or circumstances that will prevent
 any New Director from exercising independent judgment with respect to any matter involving
 the Company or items that may come before the Board or any of its committees. Each member
 of the Ancora Investors further represents and warrants that the information previously provided
 to the Company is true, accurate and complete in all material respects.

7. <u>Authority</u>. Each member of the Ancora
 Investors hereby appoints James Chadwick as the sole member of the Ancora Investors entitled
 to exercise the collective rights and remedies of the Ancora Investors hereunder, which appointee
 may be changed from time to time upon written notice to and approval from the Company (such
 approval not to be unreasonably withheld or delayed).

8. <u>Expenses</u>. The Company shall reimburse
 the Ancora Investors for their reasonable, documented out-of-pocket fees and expenses (including
 legal expenses) incurred in connection with the negotiation and execution of this Agreement,
 provided that such reimbursement shall not exceed $300,000 in the aggregate.

9. <u>Amendment in Writing</u>. This Agreement
 and each of its terms may only be amended, waived, supplemented or modified in a writing
 signed by the Parties hereto.

10. <u>Governing Law/Venue/Waiver of Jury Trial/Jurisdiction</u>.
 Each Party (a) irrevocably and unconditionally consents to submit itself to the exclusive
 personal jurisdiction of the courts of the State of Delaware or, if unavailable, the federal
 court in the State of Delaware, in each case sitting in the County of New Castle in the State
 of Delaware in the event any dispute arises out of or relates to this Agreement or the transactions
 contemplated by this Agreement, (b) agrees that it shall not attempt to deny or defeat
 such personal jurisdiction by motion or other request for leave from any such court, (c) agrees
 that it shall not bring any action relating to this Agreement or the transactions contemplated
 by this Agreement in any court other than state and federal courts of the State of Delaware
 sitting in the County of New Castle, and each of the Parties irrevocably waives the right
 to trial by jury, (d) agrees to waive any bonding requirement under any applicable law,
 in the case any other Party seeks to enforce the terms by way of equitable relief, and (e) irrevocably
 consents to service of process by a reputable overnight delivery service, signature requested,
 to the address of such Party's principal place of business or as otherwise provided
 by applicable law. THIS AGREEMENT SHALL BE GOVERNED IN ALL RESPECTS, INCLUDING WITHOUT
 LIMITATION VALIDITY, INTERPRETATION AND EFFECT, BY THE LAWS OF THE STATE OF DELAWARE
 APPLICABLE TO CONTRACTS EXECUTED AND TO BE PERFORMED WHOLLY WITHIN SUCH STATE WITHOUT GIVING
 EFFECT TO THE CHOICE OF LAW PRINCIPLES OF SUCH STATE.

11. <u>Specific Performance</u>. The Parties expressly
 agree that an actual or threatened breach of this Agreement by any Party will give rise to
 irreparable injury that cannot adequately be compensated by damages. Accordingly, in addition
 to any other remedy to which it may be entitled, each Party shall be entitled to a temporary
 restraining order or injunctive relief to prevent a breach of the provisions of this Agreement
 or to secure specific enforcement of its terms and provisions, and each Party agrees it will
 not take any action, directly or indirectly, in opposition to another Party seeking relief.
 Each of the Parties agrees to waive any requirement for the security or posting of any bond
 in connection with any such relief.

12. <u>Severability</u>. If at any time subsequent
 to the date hereof, any provision of this Agreement shall be held by any court of competent
 jurisdiction to be illegal, void or unenforceable, such provision shall be of no force and
 effect, but the illegality or unenforceability of such provision shall have no effect upon
 the legality or enforceability of any other provision of this Agreement.

13. <u>Non-Waiver</u>. No failure or delay by
 a Party in exercising any right, power or privilege hereunder shall operate as a waiver thereof,
 nor shall any single or partial exercise thereof preclude any other or further exercise thereof
 or the exercise of any right, power or privilege hereunder.

14. <u>Entire Agreement</u>. This Agreement constitutes
 the full, complete and entire understanding, agreement, and arrangement of and between the
 Parties with respect to the subject matter hereof and supersedes any and all prior oral and
 written understandings, agreements and arrangements between them. There are no other agreements,
 covenants, promises or arrangements between the Parties other than those set forth in this
 Agreement (including the attachments hereto).

15. <u>Notice</u>. All notices and other communications
 which are required or permitted hereunder shall be in writing and shall be deemed validly
 given, made or served, when delivered in person or sent by overnight courier, when actually
 received during normal business hours, or on the date of dispatch by the sender thereof when
 sent by e-mail (to the extent that no "bounce back", "out of office"
 or similar message indicating non-delivery is received with respect thereto), if such dispatch
 is made by 5:00 p.m. New York City time on a business day or, if made after 5:00 p.m. New
 York City time on a business day, such notice or other communication shall be deemed to have
 been received on the next succeeding business day, at the address specified in this <u>Section 15</u>:

If to the Company:

IAA, Inc.

Two Westbrook Corporate Center, Suite 500

Westchester, IL 60154

Attention: Sidney Peryar<br> Email: skerley@IAAI.com

with a copy, which will not constitute notice, to:

Latham & Watkins LLP<br> 330 North Wabash Avenue, Suite 2800<br> Chicago, Illinois 60611<br> Attention: Christopher R. Drewry, Bradley C. Faris<br> Email: christopher.drewry@lw.com, bradley.faris@lw.com

with a copy, which will not constitute notice, to:

Cooley LLP

3 Embarcadero Center

20th Floor

San Francisco, CA 94111-4004

Attention: Jamie Leigh, John-Paul Motley, Ian Nussbaum, Bill Roegge

Email: jleigh@cooley.com, jmotley@cooley.com, inussbaum@cooley.com, broegge@cooley.com

If to the Ancora Investors:

Ancora Alternatives LLC<br> 6060 Parkland Boulevard, Suite 200

Cleveland, Ohio 44124<br> Attention: Jim Chadwick<br> Email: jchadwick@ancora.net

with a copy, which will not constitute notice, to:

Olshan Frome Wolosky LLP<br> 1325 Avenue of the Americas<br> New York, New York 10019<br> Attention: Sebastian Alsheimer, Steve Wolosky<br> Email: salsheimer@olshanlaw.com, swolosky@olshanlaw.com

16. <u>Termination</u>.
 Except as expressly provided elsewhere herein, this Agreement shall cease, terminate and
 have no further force and effect upon the expiration of the last day of the Standstill Period
 as set forth in <u>Section 2(c)</u>, unless earlier terminated by mutual written agreement
 of the Parties or as otherwise set forth herein; <u>provided</u> that (i) <u>Sections 8</u> through <u>21</u> shall survive the termination of this Agreement and (ii) any
 liability for breach of this Agreement prior to such termination shall survive such termination.

17. <u>Further Assurances</u>. The members of
 the Ancora Investors and the Company agree to take, or cause to be taken, all such further
 or other actions as shall reasonably be necessary to make effective and consummate the transactions
 contemplated by this Agreement.

18. <u>Successors and Assigns</u>. This Agreement
 shall be binding upon and inure to the benefit of the Parties named herein and their respective
 successors and permitted assigns. No Party may assign or otherwise transfer either this Agreement
 or any of its rights, interests, or obligations hereunder without the prior written approval
 of the other Parties; <u>provided</u>, <u>however</u>, that the members of the Ancora Investors
 may assign this Agreement to the extent set forth in <u>Section 1(m)</u>. Any purported
 transfer requiring consent without such consent shall be void.

19. <u>No Third Party Beneficiaries</u>. This
 Agreement is solely for the benefit of the Parties and is not enforceable by any other Person.

20. <u>Interpretation; Construction</u>. Each
 of the Parties acknowledges that it has been represented by counsel of its choice throughout
 all negotiations that have preceded the execution of this Agreement, and that it has executed
 this Agreement with the advice of such counsel. Each Party and its counsel cooperated and
 participated in the drafting and preparation of this Agreement, and any and all drafts relating
 thereto exchanged among the Parties shall be deemed the work product of all of the Parties
 and may not be construed against any Party by reason of its drafting or preparation. Accordingly,
 any rule of law or any legal decision that would require interpretation of any ambiguities
 in this Agreement against any Party that drafted or prepared it is of no application and
 is hereby expressly waived by each of the Parties, and any controversy over interpretations
 of this Agreement shall be decided without regard to events of drafting or preparation. When
 a reference is made in this Agreement to a Section, such reference shall be to a Section of
 this Agreement, unless otherwise indicated. The headings contained in this Agreement are
 for reference purposes only and shall not affect in any way the meaning or interpretation
 of this Agreement. Whenever the words "include," "includes" and "including"
 are used in this Agreement, they shall be deemed to be followed by the words "without
 limitation." 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. The word "will"
 shall be construed to have the same meaning as the word "shall." The words "dates
 hereof" will refer to the date of this Agreement. The word "or" is not
 exclusive. The definitions contained in this Agreement are applicable to the singular as
 well as the plural forms of such terms. Any agreement, instrument, law, rule or statute
 defined or referred to herein means, unless otherwise indicated, such agreement, instrument,
 law, rule or statute as from time to time amended, modified or supplemented.

21. <u>Counterparts</u>.
 This Agreement may be executed in two (2) or more counterparts, each of which shall
 be deemed an original, but all of which together shall constitute one and the same instrument.
 Counterparts may be delivered via electronic mail (including pdf or any electronic signature
 complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or
 other transmission method and any counterpart so delivered shall be deemed to have been duly
 and validly delivered and be valid and effective for all purposes.

[*The remainder of this page is left blank intentionally*.]

IN WITNESS WHEREOF, the Parties hereto have each executed this Agreement on the date first set forth above.

---

| | |
|:---|:---|
| **THE COMPANY**: | **THE COMPANY**: |
| IAA, INC. | IAA, INC. |
| By: | /s/ John Kett |
|  | Name: John Kett |
|  | Title: President and Chief Executive Officer |

---

[*Signature Page to Cooperation Agreement*]

---

| |
|:---|
| **THE ANCORA INVESTORS**: |
| Ancora Catalyst Institutional, LP |
| Ancora Catalyst, LP |
| Ancora Merlin Institutional, LP |
| Ancora Merlin, LP |
| Ancora Impact Fund LP Series W |
| Ancora Impact Fund LP Series X |
| Ancora Impact Fund SPC Ltd Segregated Portfolio J |
| Ancora Alternatives LLC, |
| its Investment Advisor and General Partner |
| Ancora Holdings, LLC, |
| its Sole Member |
| /s/ Fredrick D. DiSanto |
| Name: Fredrick D. DiSanto |
| Title: Chairman and Chief Executive Officer |
| Ancora Alternatives LLC SMA #1 |
| Ancora Alternatives LLC SMA #2 |
| Ancora Alternatives LLC |
| Ancora Holdings, LLC, its Sole Member |
| /s/ Fredrick D. DiSanto |
| Name: Fredrick D. DiSanto |
| Title: Chairman and Chief Executive Officer |
| Ancora Advisors SMA # 1 |
| Ancora Advisors SMA # 2 |
| Ancora Advisors SMA # 3 |
| Ancora Advisors, LLC |
| The Ancora Group, LLC, its Sole Member |
| Ancora Holdings, LLC, its Sole Member |
| /s/ Fredrick D. DiSanto |
| Name: Fredrick D. DiSanto |
| Title: Chairman and Chief Executive Officer |

---

[*Signature Page to Cooperation Agreement*]

---

| | |
|:---|:---|
| The Ancora Group, LLC | The Ancora Group, LLC |
| By: | Ancora Holdings, LLC, its Sole Member |
| By: | /s/ Fredrick D. DiSanto |
|  | Name: Fredrick D. DiSanto |
|  | Title: Chairman and Chief Executive Officer |
| Ancora Family Wealth SMA # 1 | Ancora Family Wealth SMA # 1 |
| Ancora Family Wealth SMA # 2 | Ancora Family Wealth SMA # 2 |
| Ancora Family Wealth SMA # 3 | Ancora Family Wealth SMA # 3 |
| Ancora Family Wealth SMA # 4 | Ancora Family Wealth SMA # 4 |
| Ancora Family Wealth SMA # 5 | Ancora Family Wealth SMA # 5 |
| Ancora Family Wealth SMA # 6 | Ancora Family Wealth SMA # 6 |
| Ancora Family Wealth SMA # 7 | Ancora Family Wealth SMA # 7 |
| Ancora Family Wealth SMA # 8 | Ancora Family Wealth SMA # 8 |
| Ancora Family Wealth SMA # 9 | Ancora Family Wealth SMA # 9 |
| Ancora Family Wealth SMA # 10 | Ancora Family Wealth SMA # 10 |
| Ancora Family Wealth SMA # 11 | Ancora Family Wealth SMA # 11 |
| Ancora Family Wealth SMA # 12 | Ancora Family Wealth SMA # 12 |
| Ancora Family Wealth SMA # 13 | Ancora Family Wealth SMA # 13 |
| Ancora Family Wealth SMA # 14 | Ancora Family Wealth SMA # 14 |
| Ancora Family Wealth SMA # 15 | Ancora Family Wealth SMA # 15 |
| Ancora Family Wealth SMA # 16 | Ancora Family Wealth SMA # 16 |
| Ancora Family Wealth SMA # 17 | Ancora Family Wealth SMA # 17 |
| Ancora Family Wealth SMA # 18 | Ancora Family Wealth SMA # 18 |
| Ancora Family Wealth SMA # 19 | Ancora Family Wealth SMA # 19 |
| Ancora Family Wealth SMA # 20 | Ancora Family Wealth SMA # 20 |
| Ancora Family Wealth SMA # 21 | Ancora Family Wealth SMA # 21 |
| Ancora Family Wealth SMA # 22 | Ancora Family Wealth SMA # 22 |
| Ancora Family Wealth SMA # 23 | Ancora Family Wealth SMA # 23 |
| Ancora Family Wealth SMA # 24 | Ancora Family Wealth SMA # 24 |
| Ancora Family Wealth SMA # 25 | Ancora Family Wealth SMA # 25 |
| Ancora Family Wealth SMA # 26 | Ancora Family Wealth SMA # 26 |
| Ancora Family Wealth SMA # 27 | Ancora Family Wealth SMA # 27 |
| Ancora Family Wealth SMA # 28 | Ancora Family Wealth SMA # 28 |
| Ancora Family Wealth SMA # 29 | Ancora Family Wealth SMA # 29 |
| Ancora Family Wealth Advisors, LLC | Ancora Family Wealth Advisors, LLC |
| By: | Inverness Holdings LLC, its Sole Member |
| By: | Ancora Holdings, LLC, its Sole Member |
| By: | /s/ Fredrick D. DiSanto |
|  | Name: Fredrick D. DiSanto |
|  | Title: Chairman and Chief Executive Officer |

---

[*Signature Page to Cooperation Agreement*]

---

| | |
|:---|:---|
| Inverness Holdings LLC | Inverness Holdings LLC |
| By: | Ancora Holdings, LLC, its Sole Member |
| By: | /s/ Fredrick D. DiSanto |
|  | Name: Fredrick D. DiSanto |
|  | Title: Chairman and Chief Executive Officer |
| Ancora Holdings Group, LLC | Ancora Holdings Group, LLC |
| By: | /s/ Fredrick D. DiSanto |
|  | Name: Fredrick D. DiSanto |
|  | Title: Chairman and Chief Executive Officer |
| /s/ Fredrick D. DiSanto | /s/ Fredrick D. DiSanto |
| Fredrick D. DiSanto | Fredrick D. DiSanto |

---

[*Signature Page to Cooperation Agreement*]

**SCHEDULE A**

**THE ANCORA INVESTORS**

Ancora Alternatives LLC

Ancora Catalyst, LP

Ancora Catalyst Institutional, LP

Ancora Impact Fund LP Series W

Ancora Impact Fund LP Series X

Ancora Impact Fund SPC Ltd Segregated Portfolio J

Ancora Alternatives LLC SMA #1

Ancora Alternatives LLC SMA #2

Ancora Merlin, LP

Ancora Merlin Institutional, LP

Ancora Advisors SMA # 1

Ancora Advisors SMA # 2

Ancora Advisors SMA # 3

Ancora Family Wealth SMA # 1

Ancora Family Wealth SMA # 2

Ancora Family Wealth SMA # 3

Ancora Family Wealth SMA # 4

Ancora Family Wealth SMA # 5

Ancora Family Wealth SMA # 6

Ancora Family Wealth SMA # 7

Ancora Family Wealth SMA # 8

Ancora Family Wealth SMA # 9

Ancora Family Wealth SMA # 10

Ancora Family Wealth SMA # 11

Ancora Family Wealth SMA # 12

Ancora Family Wealth SMA # 13

Ancora Family Wealth SMA # 14

Ancora Family Wealth SMA # 15

Ancora Family Wealth SMA # 16

Ancora Family Wealth SMA # 17

Ancora Family Wealth SMA # 18

Ancora Family Wealth SMA # 19

Ancora Family Wealth SMA # 20

Ancora Family Wealth SMA # 21

Ancora Family Wealth SMA # 22

Ancora Family Wealth SMA # 23

Ancora Family Wealth SMA # 24

Ancora Family Wealth SMA # 25

Ancora Family Wealth SMA # 26

Ancora Family Wealth SMA # 27

Ancora Family Wealth SMA # 28

Ancora Family Wealth SMA # 29

**<u>EXHIBIT A</u>**

**FORM OF OBSERVER UNDERTAKING**

[ ● ], 202[ ● ]

Board of Directors<br> IAA, Inc.

Two Westbrook Corporate Center, Suite 500

Westchester, IL 60154

RE: <u>Observer Undertaking</u>

Ladies and Gentlemen:

Reference is made to that certain Cooperation Agreement (the "<u>Agreemen</u>t"), dated as of January [ ● ], 2023, by and among IAA, Inc., a Delaware corporation (the "<u>Company</u>"), and the natural persons and entities listed on Schedule A thereto (collectively, the "<u>Ancora Investors</u>"). Capitalized terms used herein but not defined shall have the meaning set forth in the Agreement.

I hereby irrevocably undertake that, while I serve as an observer to the Board, I will be governed by, and will comply with, the same protections and obligations regarding confidentiality, conflicts of interests, related party transactions, codes of conduct, trading and disclosure policies, director resignation policy, and other governance guidelines and policies of the Company as current directors, as amended from time to time (collectively, for purposes of this Observer Undertaking, the "<u>Company Policies</u>"). Furthermore, I irrevocably undertake that I will not share any information with the Ancora Investors or any other person in respect of the Company which I learn in my capacity as an observer to the Board, including discussions or matters considered in meetings of the Board or any Board committee, at any time, for any reason, without the Company's prior consent.

If appointed as an Observer, I hereby irrevocably offer to resign from my position as the Observer, effective immediately upon notice from the Company that I have materially breached this Observer Undertaking (including a material breach of any of the Company Policies) or the Agreement; <u>provided</u> that I need not offer to resign if any such breach is capable of being cured and I have cured such breach within ten (10) calendar days following written notice of such breach from the Company. It shall be in the Board's sole discretion whether to accept or reject such resignation. Further, I hereby acknowledge that I will no longer be an Observer upon my appointment to serve as a director of the Company.

Very Truly Yours,

**<u>EXHIBIT B</u>**

**FORM OF PRESS RELEASE**

**Ritchie Bros. and IAA Announce Amended Merger Agreement That Enhances Value for Ritchie Bros. Shareholders While Increasing Cash Consideration for IAA Shareholders**

 

*Amended Agreement Unanimously Approved by the Ritchie Bros. and IAA Boards Following Engagement with a Cross-Section of Shareholders*

 

*New Investor Presentation Released Highlighting the Pending Merger's Significant Potential Value Creation Opportunities, Which Includes an Estimated Total of $350 Million to $900 Million in EBITDA Growth Opportunities* 

 

*Proposed Transaction Now Supported by Ancora, a Top Shareholder of IAA, and Starboard Value, Which Has Agreed to Make a Sizable Investment in Ritchie Bros.*

 

*Investor Conference Call Scheduled for 8:00 A.M. Eastern Time Today*

VANCOUVER, BC and WESTCHESTER, Ill., Jan. 23, 2023 – Ritchie Bros. Auctioneers Incorporated (NYSE: RBA) (TSX: RBA) ("Ritchie Bros.") and IAA, Inc. (NYSE: IAA) ("IAA") today announced that they have amended the terms of their previously announced merger agreement, pursuant to which Ritchie Bros. will acquire IAA in a stock and cash transaction. The amended agreement, which delivers enhanced value to Ritchie Bros. shareholders and increased cash consideration to IAA shareholders, has been unanimously approved by each company's Board of Directors.

Under the terms of the amended agreement, IAA shareholders will receive $12.80<sup>1</sup> per share in cash and 0.5252 common shares of Ritchie Bros. for each share of IAA common stock they own. The change in consideration mix represents a shift in the cash/stock mix to approximately 29% cash/71% stock from the previous mix of 22% cash/78% stock.

Additionally, the Ritchie Bros. Board of Directors announced that it expects to approve the issuance of a one-time special dividend to Ritchie Bros. shareholders in the amount of $1.08 per common share, which will be payable to holders of record as of a pre-closing record date to be determined with the consent of the Toronto Stock Exchange ("TSX") and contingent on the closing of the IAA transaction.

Ann Fandozzi, CEO of Ritchie Bros., commented:

"We are pleased to have reached an amended agreement with IAA, which reflects feedback we've received from shareholders regarding the best structure for the transaction. We believe that the transaction with IAA will allow us to unlock significantly more value for shareholders than either company could deliver standalone through the realization of cost synergies and additional revenue opportunities. Together we expect to accelerate our marketplace vision by increasing our transaction volume, driving growth of attached services and advancing our yard strategy. We look forward to continuing to discuss the anticipated benefits of the transaction with our shareholders."

John Kett, CEO and President of IAA, added:

"We believe that the revised transaction is in the best interests of IAA and our shareholders. The amended agreement will provide our shareholders with increased cash consideration upon close of the transaction, while retaining a significant interest in the upside potential of the combined company. Our view is unaltered that combining Ritchie Bros. and IAA's marketplace capabilities will create a unique value proposition with significantly increased earnings power and shareholder value creation. In addition, we appreciate the collaborative and constructive dialogue with Ancora and their public support for the transaction."

<sup>1</sup> All figures are presented in U.S. dollars

Fred DiSanto, Chairman and Chief Executive Officer of Ancora, and James Chadwick, President of Ancora Alternatives, concluded:

"Ancora is pleased to support this revised transaction, which positions IAA shareholders to benefit from a material improvement in cash consideration while retaining strong participation in the combined company's increased earnings power. After expressing concerns regarding the initial transaction terms, we had a series of productive, private discussions with each company's leadership team to provide feedback. We appreciate that both companies were open and responsive to our input, and we look forward to supporting Ann and her team as they integrate these two exceptional businesses."

Pursuant to a mutual cooperation agreement reached between IAA and Ancora, Tim O'Day, a seasoned industry executive and operator and the current President and Chief Executive Officer of Boyd Group Services Inc., is expected to be appointed to the Ritchie Bros. Board of Directors upon the closing of the transaction. He will be one of the four IAA board designees, subject to satisfactory completion of customary vetting and onboarding matters. Under the terms, Ancora has agreed to vote its shares, representing approximately 4% of IAA's voting power, in favor of the transaction.

**Significant Value Creation Opportunities**

In conjunction with the amended agreement, Ritchie Bros. has released an investor presentation highlighting the compelling benefits, synergies and long-term value creation opportunities expected from the pending transaction. The presentation has been filed by Ritchie Bros. with the Securities and Exchange Commission (the "SEC") and on SEDAR. The presentation can be found on the investor relations section of Ritchie Bros.' website.

The presentation lays out key areas the combined company expects to focus on to unlock value, including:

&nbsp;&nbsp;&nbsp;&nbsp;· **Capitalizing on significant earnings potential:** Ritchie Bros. expects
approximately $350 million to $900 million in total adjusted EBITDA growth opportunities<sup>2</sup> following the close of the transaction.
In addition to the previously announced $100 million to $120+ million in annual run rate cost synergies, key revenue growth opportunities
expected from the transaction include driving IAA domestic and international revenue, growing incremental Ritchie Bros. satellite yard-driven
GTV<sup>3</sup>, increased attachment of services, including from financing solutions and selling parts, and expanding in whole car
sales and incremental salvage market verticals.

&nbsp;&nbsp;&nbsp;&nbsp;· **Leveraging the combined yard footprint to accelerate growth:** The combined
company's expertise in yard management, zoning and regulatory requirements will allow it to leverage IAA's locations with
approximately 10,000 acres of capacity to advance Ritchie Bros.' satellite yard strategy. With Ritchie Bros.' substantial
existing footprint in Florida and Texas, the combined company will be positioned to enhance service to insurance carriers during catastrophic
events. In addition, Ritchie Bros. expects to leverage its international footprint to expand IAA's business into new markets.

&nbsp;&nbsp;&nbsp;&nbsp;· **Continuing to strengthen the Ritchie Bros. core business as it integrates IAA:** The Ritchie Bros. management team has developed plans to build on the significant growth and marketplace development they have
achieved over the last three years. This includes initiatives intended to further expand and support the Ritchie Bros. sales team and
leverage IAA's yard footprint to progress toward future high single-digit / low teens GTV growth targets; advancing its omnichannel
platform to increase buyer and seller activity; and accelerating growth of attached services to drive service revenue growth outpacing
GTV growth.

<sup>2</sup> Potential opportunities and related information in this release and the presentation included for illustrative purposes only and do not imply future targets, expectations or guidance and does not incorporate potential costs to achieve or specific timelines.

<sup>3</sup> GTV represents gross transaction value, which is the total proceeds from all items sold at the company's auctions and online marketplaces. GTV is not a measure of financial performance, liquidity, or revenue, and is not presented in the company's consolidated financial statements.

**Ritchie Bros. Strategic Investment**

In a separate release issued this morning, Ritchie Bros. announced that it has entered into a securities purchase agreement with Starboard Value LP (together with its affiliates, "Starboard") pursuant to which Starboard will make a concurrent $485 million convertible preferred equity and $15 million common share investment in Ritchie Bros., subject to customary closing conditions including the acceptance of the TSX. As stated in that release, Starboard is fully supportive of the acquisition of IAA by Ritchie Bros., however, Starboard's investment will not vote at the Special Meeting of Shareholders to be held by Ritchie Bros. with respect to the IAA transaction.

The transaction terms are attractive to both Ritchie Bros. and IAA shareholders, with Starboard bringing additional expertise and value add to the combined company while facilitating further capital allocation flexibility.

**Ritchie Bros. and IAA Financial Update**

Ritchie Bros. and IAA will each announce fourth quarter financial results in mid to late February. In connection with the upcoming transaction financing, Ritchie Bros. and IAA expect to release preliminary unaudited full year results for GTV, revenue, net income and adjusted EBITDA in advance of their respective full year earnings releases that are in-line or above current FactSet mean consensus analyst estimates.

**Path to Close** 

The companies continue to expect to close the transaction in the first half of 2023 subject to approval by Ritchie Bros. shareholders of the issuance of Ritchie Bros. common shares in connection with the transaction and approval of IAA shareholders of the transaction, as well as other customary closing conditions.

Following the close of the IAA transaction, on an as converted basis Ritchie Bros. shareholders will own approximately 59.1% of the combined company, IAA shareholders will own approximately 37.2% and Starboard will own approximately 3.7%.

Starboard's investment and Ritchie Bros.' contemplated special dividend are expected to be approximately neutral to the Company's net leverage ratio. Ritchie Bros. continues to expect to have a leverage ratio of approximately 3x net debt to adjusted EBITDA<sup>4</sup> upon the close of the IAA transaction and approximately 2x within 24 months thereafter.

The Board of Directors of Ritchie Bros. and IAA both unanimously recommend that their respective shareholder vote in favor of the transaction at the respective special meetings to be held on March 14, 2023. Shareholders of record as of the close of business on January 25, 2023 will be entitled to vote at the applicable special meetings.

**Advisors**

Goldman Sachs & Co. LLC is serving as lead financial advisor and Guggenheim Securities, LLC is serving as co-lead financial advisor to Ritchie Bros. Evercore and RBC Capital Markets are also serving as financial advisors to Ritchie Bros. J.P. Morgan Securities LLC is serving as the exclusive financial advisor to IAA.

<sup>4</sup> Assumes $110mm run-rate cost synergies. Adjusted EBITDA per company's reported definition, which includes add-backs for share-based payments expense, acquisition-related costs, loss / (gains) on disposition of property plant and equipment, change in fair value of derivatives, and non-recurring advisory, legal and restructuring costs.

Goodwin Procter LLP, McCarthy Tétrault LLP and Skadden, Arps, Slate, Meagher & Flom LLP are serving as legal advisors to Ritchie Bros. and Cooley LLP, Blake, Cassels & Graydon LLP and Latham & Watkins LLP are serving as legal advisors to IAA. Olshan Frome Wolosky LLP is serving as Ancora's legal counsel.

Laurel Hill Advisory Group and MacKenzie Partners Inc. are serving as proxy solicitation agents for Ritchie Bros. and Innisfree M&A Incorporated and Kingsdale Advisors are serving as proxy solicitation agent for IAA.

**Conference Call and Webcast**

Ritchie Bros. and IAA will host a conference call and webcast today at 8:00 a.m. ET.

Analysts and institutional investors may participate via conference call, using the following dial-in information:

Participant Toll-Free Dial-In Number: 877-524-8416 / +1 412-902-1028

North America: 1-877-524-8416

UK: 800 756 3429

Canada: 1-412-902-1028

Media and other interested parties may listen to live webcast of the call at https://investor.ritchiebros.com.

**About Ritchie Bros.**

Established in 1958, Ritchie Bros. (NYSE and TSX: RBA) is a global asset management and disposition company, offering customers end-to-end solutions for buying and selling used heavy equipment, trucks and other assets. Operating in a number of sectors, including construction, transportation, agriculture, energy, mining, and forestry, the company's selling channels include: Ritchie Bros. Auctioneers, the world's largest industrial auctioneer offering live auction events with online bidding; IronPlanet, an online marketplace with weekly featured auctions and providing the exclusive IronClad Assurance<sup>(R)</sup> equipment condition certification; Marketplace-E, a controlled marketplace offering multiple price and timing options; Ritchie List, a self-serve listing service for North America; Mascus, a leading European online equipment listing service; Ritchie Bros. Private Treaty, offering privately negotiated sales; and sector-specific solutions GovPlanet, TruckPlanet, and Ritchie Bros. Energy. The company's suite of solutions also includes Ritchie Bros. Asset Solutions and Rouse Services LLC, which together provides a complete end-to-end asset management, data-driven intelligence and performance benchmarking system; SmartEquip, an innovative technology platform that supports customers' management of the equipment lifecycle and integrates parts procurement with both OEMs and dealers; plus equipment financing and leasing through Ritchie Bros. Financial Services. For more information about Ritchie Bros., visit RitchieBros.com.

Photos and video for embedding in media stories are available at rbauction.com/media.

**About IAA**

IAA, Inc. (NYSE: <u>IAA</u>) is a leading global digital marketplace connecting vehicle buyers and sellers. Leveraging leading-edge technology and focusing on innovation, IAA's unique platform facilitates the marketing and sale of total-loss, damaged and low-value vehicles. Headquartered near Chicago in Westchester, Illinois, IAA has nearly 4,500 employees and more than 210 facilities throughout the U.S., Canada and the United Kingdom. IAA serves a global buyer base – located throughout over 170 countries – and a full spectrum of sellers, including insurers, dealerships, fleet lease and rental car companies, and charitable organizations. Buyers have access to multiple digital bidding and buying channels, innovative vehicle merchandising, and efficient evaluation services, enhancing the overall purchasing experience. IAA offers sellers a comprehensive suite of services aimed at maximizing vehicle value, reducing administrative costs, shortening selling cycle time and delivering the highest economic returns. For more information visit <u>IAAI.com</u>, and follow IAA on <u>Facebook</u>, <u>Twitter</u>, <u>Instagram</u>, <u>YouTube</u> and <u>LinkedIn</u>.

**Forward-Looking Statements**

This communication contains information relating to a proposed business combination transaction between Ritchie Bros. Auctioneers Incorporated ("RBA") and IAA, Inc. (the "Company"). This communication includes forward-looking information within the meaning of Canadian securities legislation and forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (collectively, "forward-looking statements"). Forward-looking statements may include statements relating to future events and anticipated results of operations, business strategies, the anticipated benefits of the proposed transaction, the anticipated impact of the proposed transaction on the combined company's business and future financial and operating results, the expected or estimated amount, achievability, sources, impact and timing of cost synergies and revenue, growth, operational enhancement, expansion and other value creation opportunities from the proposed transaction, the expected debt, de-leveraging and capital allocation of the combined company, the anticipated closing date for the proposed transaction, statements regarding RBA's and IAA's preliminary unaudited financial expectations for fiscal year 2022 (which remain subject to revision), other aspects of RBA's or the Company's respective businesses, operations, financial condition or operating results and other statements that are not historical facts. There can be no assurance that the proposed transaction will in fact be consummated. These forward-looking statements generally can be identified by phrases such as "will," "should," "expects," "plans," "anticipates," "could," "intends," "target," "goal," "projects," "contemplates," "believes," "predicts," "potential," "continue," "foresees," "forecasts," "estimates," "opportunity" or other words or phrases of similar import.

It is uncertain whether any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what impact they will have on the results of operations and financial condition of the combined companies or the price of RBA's common shares or the Company's common stock. Therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. While RBA's and the Company's management believe the assumptions underlying the forward-looking statements are reasonable, these forward-looking statements involve certain risks and uncertainties, many of which are beyond the parties' control, that could cause actual results to differ materially from those indicated in such forward-looking statements, including but not limited to: the possibility that shareholders of RBA may not approve the issuance of new common shares of RBA in the transaction or that shareholders of the Company may not approve the adoption of the merger agreement; the risk that a condition to closing of the proposed transaction may not be satisfied (or waived), that either party may terminate the merger agreement or that the closing of the proposed transaction might be delayed or not occur at all; the anticipated tax treatment of the proposed transaction; potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed transaction; the diversion of management time on transaction-related issues; the response of competitors to the proposed transaction; the ultimate difficulty, timing, cost and results of integrating the operations of RBA and the Company; the effects of the business combination of RBA and the Company, including the combined company's future financial condition, results of operations, strategy and plans; the failure (or delay) to receive the required regulatory approval of the transaction; the fact that operating costs and business disruption may be greater than expected following the public announcement or consummation of the proposed transaction; the effect of the announcement, pendency or consummation of the proposed transaction on the trading price of RBA's common shares or the Company's common stock; the ability of RBA and/or the Company to retain and hire key personnel and employees; the significant costs associated with the proposed transaction; the outcome of any legal proceedings that could be instituted against RBA, the Company and/or others relating to the proposed transaction; restrictions during the pendency of the proposed transaction that may impact the ability of RBA and/or the Company to pursue non-ordinary course transactions, including certain business opportunities or strategic transactions; the ability of the combined company to realize anticipated synergies in the amount, manner or timeframe expected or at all; the failure of the combined company to realize potential revenue, growth, operational enhancement, expansion or other value creation opportunities from the sources or in the amount, manner or timeframe expected or at all; the failure of the trading multiple of the combined company to normalize or re-rate and other fluctuations in such trading multiple; changes in capital markets and the ability of the combined company to finance operations in the manner expected or to de-lever in the timeframe expected; the failure of RBA or the combined company to meet financial and/or KPI targets; the failure to satisfy any of the conditions to closing of the Starboard investment in RBA, including acceptance by the TSX; any legal impediment to the payment of the special dividend by RBA, including TSX consent to the dividend record date; legislative, regulatory and economic developments affecting the business of RBA and the Company; general economic and market developments and conditions; the evolving legal, regulatory and tax regimes under which RBA and the Company operates; unpredictability and severity of catastrophic events, including, but not limited to, pandemics, acts of terrorism or outbreak of war or hostilities, as well as RBA's or the Company's response to any of the aforementioned factors. These risks, as well as other risks related to the proposed transaction, are included in the registration statement on Form S-4 and joint proxy statement/prospectus filed with the Securities and Exchange Commission (the "SEC") and applicable Canadian securities regulatory authorities in connection with the proposed transaction. While the list of factors presented here is, and the list of factors presented in the registration statement on Form S-4 are, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties.

For additional information about other factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to RBA's and the Company's respective periodic reports and other filings with the SEC and/or applicable Canadian securities regulatory authorities, including the risk factors identified in RBA's most recent Quarterly Reports on Form 10-Q and Annual Report on Form 10-K and the Company's most recent Quarterly Reports on Form 10-Q and Annual Report on Form 10-K. The forward-looking statements included in this communication are made only as of the date hereof. Neither RBA nor the Company undertakes any obligation to update any forward-looking statements to reflect actual results, new information, future events, changes in its expectations or other circumstances that exist after the date as of which the forward-looking statements were made, except as required by law.

**No Offer or Solicitation**

This communication is not intended to and shall not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities, or a solicitation of any vote or approval, nor shall there be any offer, solicitation or sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended, or pursuant to an exemption from, or in a transaction not subject to, such registration requirements.

**Important Additional Information and Where to Find It**

In connection with the proposed transaction, RBA filed with the SEC and applicable Canadian securities regulatory authorities a registration statement on Form S-4 to register the common shares of RBA to be issued in connection with the proposed transaction on December 14, 2022. The registration statement includes a joint proxy statement/prospectus which will be sent to the shareholders of RBA and shareholders of the Company seeking their approval of their respective transaction-related proposals. Each of RBA and the Company may also file other relevant documents with the SEC and/or applicable Canadian securities regulatory authorities regarding the proposed transaction. This document is not a substitute for the proxy statement/prospectus or registration statement or any other document that RBA or the Company may file with the SEC and/or applicable Canadian securities regulatory authorities. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT ON FORM S-4 AND THE RELATED JOINT PROXY STATEMENT/PROSPECTUS, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS AND ANY OTHER RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC and applicable Canadian securities regulatory authorities IN CONNECTION WITH THE PROPOSED TRANSACTION OR INCORPORATED BY REFERENCE IN THE PROXY STATEMENT/PROSPECTUS, CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE, BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT RBA, THE COMPANY AND THE PROPOSED TRANSACTION.

Investors and security holders may obtain copies of these documents (when they are available) free of charge through the website maintained by the SEC at www.sec.gov, SEDAR at www.sedar.com or from RBA at its website, investor.ritchiebros.com, or from the Company at its website, investors.iaai.com. Documents filed with the SEC and applicable Canadian securities regulatory authorities by RBA (when they are available) will be available free of charge by accessing RBA's website at investor.ritchiebros.com under the heading Financials/SEC Filings, or, alternatively, by directing a request by telephone or mail to RBA at 9500 Glenlyon Parkway, Burnaby, BC, V5J 0C6, Canada, and documents filed with the SEC by the Company (when they are available) will be available free of charge by accessing the Company's website at investors.iaai.com or by contacting the Company's Investor Relations at investors@iaai.com.

**Participants in the Solicitation**

RBA and IAA, certain of their respective directors and executive officers and other members of management and employees, and Jeffrey C. Smith, may be deemed to be participants in the solicitation of proxies from the stockholders of RBA and IAA in respect of the proposed transaction under the rules of the SEC. Information about RBA's directors and executive officers is available in RBA's definitive proxy statement on Schedule 14A for its 2022 Annual Meeting of Shareholders, which was filed with the SEC and applicable Canadian securities regulatory authorities on March 15, 2022, and certain of its Current Reports on Form 8-K. Information about IAA's directors and executive officers is available in IAA's definitive proxy statement on Schedule 14A for its 2022 Annual Meeting of Stockholders, which was filed with the SEC on May 2, 2022, and certain of its Current Reports on Form 8-K. Other information regarding persons who may be deemed participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, including information with respect to Mr. Smith, are contained or will be contained in the joint proxy statement/prospectus and other relevant materials filed or to be filed with the SEC and applicable Canadian securities regulatory authorities regarding the proposed transaction when they become available. Investors should read the joint proxy statement/prospectus carefully before making any voting or investment decisions. You may obtain free copies of these documents from RBA or IAA free of charge using the sources indicated above.

**Non-GAAP Financial Measures**

This presentation contains certain non-GAAP financial measures, including adjusted EBITDA. These non-GAAP financial measures are not calculated in accordance with GAAP and may exclude items that are significant in understanding and assessing a company's financial condition or operating results. Therefore, these measures should not be considered in isolation or as alternatives to financial measures under GAAP. In addition, these measures may not be comparable to similarly-titled measures used by other companies.

With respect to IAA, adjusted EBITDA is a non-GAAP financial measure calculated as net income before income taxes, interest expense, and depreciation and amortization ("EBITDA") and further adjusted for items that IAA's management believes are not representative of ongoing operations including, but not limited to, (a) non-income, tax-related accruals, (b) fair value adjustments related to contingent consideration (c) severance, restructuring and other retention expenses, (d) the net loss or gain on the sale of assets or expenses associated with certain M&A, financing and other transactions, (e) acquisition costs, and (f) certain professional fees, as well as (g) gains and losses related to foreign currency exchange rates. IAA believes that adjusted EBITDA provides useful information regarding IAA's operational performance because it enhances an investor's overall understanding of IAA's core financial performance and helps investors compare IAA's performance to prior and future periods.

With respect to RBA, RBA believes adjusted EBITDA provides useful information about the growth or decline of its net income when compared between different financial periods. RBA uses adjusted EBITDA as a key performance measure because RBA believes it facilitates operating performance comparisons from period to period and provides management with the ability to monitor its controllable incremental revenues and costs. Adjusted EBITDA is calculated by adding back depreciation and amortization, interest expense, income tax expense, and subtracting interest income from net income, as well as adding back share-based payments expense, acquisition-related costs, loss (gain) on disposition of property, plant and equipment, terminated and ongoing transaction costs, and excluding the effects of any non-recurring or unusual adjusting items.

Further information regarding non-GAAP financial measures is included in the respective filings with the SEC and/or applicable Canadian securities regulatory authorities of RBA and IAA.

**Ritchie Bros. Contacts**

**Investors**

Sameer Rathod Vice President, Investor Relations & Market Intelligence

(510) 381-7584

srathod@ritchiebros.com

**Media**

Dan Katcher / Lucas Pers / Haley Salas

Joele Frank, Wilkinson Brimmer Katcher

(212) 355-4449

**IAA Contacts**

**Investors**

Farah Soi / Caitlin Churchill \| ICR

(203)682-8200

investors@iaai.com

**Media**

Jeanene O'Brien \| IAA, Inc.

SVP, Global Marketing and Communications

(708) 492-7328

jobrien@iaai.com

**Ancora Contacts**

Longacre Square Partners

Greg Marose / Miller Winston, 646-386-0091

gmarose@longacresquare.com / mwinston@longacresquare.com

## Exhibit 99.1

**Exhibit 99.1**

**Ritchie Bros. and IAA Announce Amended Merger Agreement That Enhances Value for Ritchie Bros. Shareholders While Increasing Cash Consideration for IAA Shareholders**

 

*Amended Agreement Unanimously Approved by the Ritchie Bros. and IAA Boards Following Engagement with a Cross-Section of Shareholders*

 

*New Investor Presentation Released Highlighting the Pending Merger's Significant Potential Value Creation Opportunities, Which Includes an Estimated Total of $350 Million to $900 Million in EBITDA Growth Opportunities* 

 

*Proposed Transaction Now Supported by Ancora, a Top Shareholder of IAA, and Starboard Value, Which Has Agreed to Make a Sizable Investment in Ritchie Bros.*

 

*Investor Conference Call Scheduled for 8:00 A.M. Eastern Time Today*

VANCOUVER, BC and WESTCHESTER, Ill., Jan. 23, 2023 – Ritchie Bros. Auctioneers Incorporated (NYSE: RBA) (TSX: RBA) ("Ritchie Bros.") and IAA, Inc. (NYSE: IAA) ("IAA") today announced that they have amended the terms of their previously announced merger agreement, pursuant to which Ritchie Bros. will acquire IAA in a stock and cash transaction. The amended agreement, which delivers enhanced value to Ritchie Bros. shareholders and increased cash consideration to IAA shareholders, has been unanimously approved by each company's Board of Directors.

Under the terms of the amended agreement, IAA shareholders will receive $12.80<sup>1</sup> per share in cash and 0.5252 common shares of Ritchie Bros. for each share of IAA common stock they own. The change in consideration mix represents a shift in the cash/stock mix to approximately 29% cash/71% stock from the previous mix of 22% cash/78% stock.

Additionally, the Ritchie Bros. Board of Directors announced that it expects to approve the issuance of a one-time special dividend to Ritchie Bros. shareholders in the amount of $1.08 per common share, which will be payable to holders of record as of a pre-closing record date to be determined with the consent of the Toronto Stock Exchange ("TSX") and contingent on the closing of the IAA transaction.

Ann Fandozzi, CEO of Ritchie Bros., commented:

"We are pleased to have reached an amended agreement with IAA, which reflects feedback we've received from shareholders regarding the best structure for the transaction. We believe that the transaction with IAA will allow us to unlock significantly more value for shareholders than either company could deliver standalone through the realization of cost synergies and additional revenue opportunities. Together we expect to accelerate our marketplace vision by increasing our transaction volume, driving growth of attached services and advancing our yard strategy. We look forward to continuing to discuss the anticipated benefits of the transaction with our shareholders."

John Kett, CEO and President of IAA, added:

"We believe that the revised transaction is in the best interests of IAA and our shareholders. The amended agreement will provide our shareholders with increased cash consideration upon close of the transaction, while retaining a significant interest in the upside potential of the combined company. Our view is unaltered that combining Ritchie Bros. and IAA's marketplace capabilities will create a unique value proposition with significantly increased earnings power and shareholder value creation. In addition, we appreciate the collaborative and constructive dialogue with Ancora and their public support for the transaction."

<sup>1</sup> All figures are presented in U.S. dollars

Fred DiSanto, Chairman and Chief Executive Officer of Ancora, and James Chadwick, President of Ancora Alternatives, concluded:

"Ancora is pleased to support this revised transaction, which positions IAA shareholders to benefit from a material improvement in cash consideration while retaining strong participation in the combined company's increased earnings power. After expressing concerns regarding the initial transaction terms, we had a series of productive, private discussions with each company's leadership team to provide feedback. We appreciate that both companies were open and responsive to our input, and we look forward to supporting Ann and her team as they integrate these two exceptional businesses."

Pursuant to a mutual cooperation agreement reached between IAA and Ancora, Tim O'Day, a seasoned industry executive and operator and the current President and Chief Executive Officer of Boyd Group Services Inc., is expected to be appointed to the Ritchie Bros. Board of Directors upon the closing of the transaction. He will be one of the four IAA board designees, subject to satisfactory completion of customary vetting and onboarding matters. Under the terms, Ancora has agreed to vote its shares, representing approximately 4% of IAA's voting power, in favor of the transaction.

**Significant Value Creation Opportunities**

In conjunction with the amended agreement, Ritchie Bros. has released an investor presentation highlighting the compelling benefits, synergies and long-term value creation opportunities expected from the pending transaction. The presentation has been filed by Ritchie Bros. with the Securities and Exchange Commission (the "SEC") and on SEDAR. The presentation can be found on the investor relations section of Ritchie Bros.' website.

The presentation lays out key areas the combined company expects to focus on to unlock value, including:

&nbsp;&nbsp;&nbsp;&nbsp;· **Capitalizing on significant earnings potential:** Ritchie Bros. expects
approximately $350 million to $900 million in total adjusted EBITDA growth opportunities<sup>2</sup> following the close of the transaction.
In addition to the previously announced $100 million to $120+ million in annual run rate cost synergies, key revenue growth opportunities
expected from the transaction include driving IAA domestic and international revenue, growing incremental Ritchie Bros. satellite yard-driven
GTV<sup>3</sup>, increased attachment of services, including from financing solutions and selling parts, and expanding in whole car
sales and incremental salvage market verticals.

&nbsp;&nbsp;&nbsp;&nbsp;· **Leveraging the combined yard footprint to accelerate growth:** The combined
company's expertise in yard management, zoning and regulatory requirements will allow it to leverage IAA's locations with
approximately 10,000 acres of capacity to advance Ritchie Bros.' satellite yard strategy. With Ritchie Bros.' substantial
existing footprint in Florida and Texas, the combined company will be positioned to enhance service to insurance carriers during catastrophic
events. In addition, Ritchie Bros. expects to leverage its international footprint to expand IAA's business into new markets.

&nbsp;&nbsp;&nbsp;&nbsp;· **Continuing to strengthen the Ritchie Bros. core business as it integrates IAA:** The Ritchie Bros. management team has developed plans to build on the significant growth and marketplace development they have
achieved over the last three years. This includes initiatives intended to further expand and support the Ritchie Bros. sales team and
leverage IAA's yard footprint to progress toward future high single-digit / low teens GTV growth targets; advancing its omnichannel
platform to increase buyer and seller activity; and accelerating growth of attached services to drive service revenue growth outpacing
GTV growth.

<sup>2</sup> Potential opportunities and related information in this release and the presentation included for illustrative purposes only and do not imply future targets, expectations or guidance and does not incorporate potential costs to achieve or specific timelines.

<sup>3</sup> GTV represents gross transaction value, which is the total proceeds from all items sold at the company's auctions and online marketplaces. GTV is not a measure of financial performance, liquidity, or revenue, and is not presented in the company's consolidated financial statements.

**Ritchie Bros. Strategic Investment**

In a separate release issued this morning, Ritchie Bros. announced that it has entered into a securities purchase agreement with Starboard Value LP (together with its affiliates, "Starboard") pursuant to which Starboard will make a concurrent $485 million convertible preferred equity and $15 million common share investment in Ritchie Bros., subject to customary closing conditions including the acceptance of the TSX. As stated in that release, Starboard is fully supportive of the acquisition of IAA by Ritchie Bros., however, Starboard's investment will not vote at the Special Meeting of Shareholders to be held by Ritchie Bros. with respect to the IAA transaction.

The transaction terms are attractive to both Ritchie Bros. and IAA shareholders, with Starboard bringing additional expertise and value add to the combined company while facilitating further capital allocation flexibility.

**Ritchie Bros. and IAA Financial Update**

Ritchie Bros. and IAA will each announce fourth quarter financial results in mid to late February. In connection with the upcoming transaction financing, Ritchie Bros. and IAA expect to release preliminary unaudited full year results for GTV, revenue, net income and adjusted EBITDA in advance of their respective full year earnings releases that are in-line or above current FactSet mean consensus analyst estimates.

**Path to Close** 

The companies continue to expect to close the transaction in the first half of 2023 subject to approval by Ritchie Bros. shareholders of the issuance of Ritchie Bros. common shares in connection with the transaction and approval of IAA shareholders of the transaction, as well as other customary closing conditions.

Following the close of the IAA transaction, on an as converted basis Ritchie Bros. shareholders will own approximately 59.1% of the combined company, IAA shareholders will own approximately 37.2% and Starboard will own approximately 3.7%.

Starboard's investment and Ritchie Bros.' contemplated special dividend are expected to be approximately neutral to the Company's net leverage ratio. Ritchie Bros. continues to expect to have a leverage ratio of approximately 3x net debt to adjusted EBITDA<sup>4</sup> upon the close of the IAA transaction and approximately 2x within 24 months thereafter.

The Board of Directors of Ritchie Bros. and IAA both unanimously recommend that their respective shareholder vote in favor of the transaction at the respective special meetings to be held on March 14, 2023. Shareholders of record as of the close of business on January 25, 2023 will be entitled to vote at the applicable special meetings.

**Advisors**

Goldman Sachs & Co. LLC is serving as lead financial advisor and Guggenheim Securities, LLC is serving as co-lead financial advisor to Ritchie Bros. Evercore and RBC Capital Markets are also serving as financial advisors to Ritchie Bros. J.P. Morgan Securities LLC is serving as the exclusive financial advisor to IAA.

<sup>4</sup> Assumes $110mm run-rate cost synergies. Adjusted EBITDA per company's reported definition, which includes add-backs for share-based payments expense, acquisition-related costs, loss / (gains) on disposition of property plant and equipment, change in fair value of derivatives, and non-recurring advisory, legal and restructuring costs.

Goodwin Procter LLP, McCarthy Tétrault LLP and Skadden, Arps, Slate, Meagher & Flom LLP are serving as legal advisors to Ritchie Bros. and Cooley LLP, Blake, Cassels & Graydon LLP and Latham & Watkins LLP are serving as legal advisors to IAA. Olshan Frome Wolosky LLP is serving as Ancora's legal counsel.

Laurel Hill Advisory Group and MacKenzie Partners Inc. are serving as proxy solicitation agents for Ritchie Bros. and Innisfree M&A Incorporated and Kingsdale Advisors are serving as proxy solicitation agent for IAA.

**Conference Call and Webcast**

Ritchie Bros. and IAA will host a conference call and webcast today at 8:00 a.m. ET.

Analysts and institutional investors may participate via conference call, using the following dial-in information:

Participant Toll-Free Dial-In Number: 877-524-8416 / +1 412-902-1028

North America: 1-877-524-8416

UK: 800 756 3429

Canada: 1-412-902-1028

Media and other interested parties may listen to live webcast of the call at https://investor.ritchiebros.com.

**About Ritchie Bros.**

Established in 1958, Ritchie Bros. (NYSE and TSX: RBA) is a global asset management and disposition company, offering customers end-to-end solutions for buying and selling used heavy equipment, trucks and other assets. Operating in a number of sectors, including construction, transportation, agriculture, energy, mining, and forestry, the company's selling channels include: Ritchie Bros. Auctioneers, the world's largest industrial auctioneer offering live auction events with online bidding; IronPlanet, an online marketplace with weekly featured auctions and providing the exclusive IronClad Assurance<sup>(R)</sup> equipment condition certification; Marketplace-E, a controlled marketplace offering multiple price and timing options; Ritchie List, a self-serve listing service for North America; Mascus, a leading European online equipment listing service; Ritchie Bros. Private Treaty, offering privately negotiated sales; and sector-specific solutions GovPlanet, TruckPlanet, and Ritchie Bros. Energy. The company's suite of solutions also includes Ritchie Bros. Asset Solutions and Rouse Services LLC, which together provides a complete end-to-end asset management, data-driven intelligence and performance benchmarking system; SmartEquip, an innovative technology platform that supports customers' management of the equipment lifecycle and integrates parts procurement with both OEMs and dealers; plus equipment financing and leasing through Ritchie Bros. Financial Services. For more information about Ritchie Bros., visit RitchieBros.com.

Photos and video for embedding in media stories are available at rbauction.com/media.

**About IAA**

IAA, Inc. (NYSE: <u>IAA</u>) is a leading global digital marketplace connecting vehicle buyers and sellers. Leveraging leading-edge technology and focusing on innovation, IAA's unique platform facilitates the marketing and sale of total-loss, damaged and low-value vehicles. Headquartered near Chicago in Westchester, Illinois, IAA has nearly 4,500 employees and more than 210 facilities throughout the U.S., Canada and the United Kingdom. IAA serves a global buyer base – located throughout over 170 countries – and a full spectrum of sellers, including insurers, dealerships, fleet lease and rental car companies, and charitable organizations. Buyers have access to multiple digital bidding and buying channels, innovative vehicle merchandising, and efficient evaluation services, enhancing the overall purchasing experience. IAA offers sellers a comprehensive suite of services aimed at maximizing vehicle value, reducing administrative costs, shortening selling cycle time and delivering the highest economic returns. For more information visit <u>IAAI.com</u>, and follow IAA on <u>Facebook</u>, <u>Twitter</u>, <u>Instagram</u>, <u>YouTube</u> and <u>LinkedIn</u>.

**Forward-Looking Statements**

This communication contains information relating to a proposed business combination transaction between Ritchie Bros. Auctioneers Incorporated ("RBA") and IAA, Inc. (the "Company"). This communication includes forward-looking information within the meaning of Canadian securities legislation and forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (collectively, "forward-looking statements"). Forward-looking statements may include statements relating to future events and anticipated results of operations, business strategies, the anticipated benefits of the proposed transaction, the anticipated impact of the proposed transaction on the combined company's business and future financial and operating results, the expected or estimated amount, achievability, sources, impact and timing of cost synergies and revenue, growth, operational enhancement, expansion and other value creation opportunities from the proposed transaction, the expected debt, de-leveraging and capital allocation of the combined company, the anticipated closing date for the proposed transaction, statements regarding RBA's and IAA's preliminary unaudited financial expectations for fiscal year 2022 (which remain subject to revision), other aspects of RBA's or the Company's respective businesses, operations, financial condition or operating results and other statements that are not historical facts. There can be no assurance that the proposed transaction will in fact be consummated. These forward-looking statements generally can be identified by phrases such as "will," "should," "expects," "plans," "anticipates," "could," "intends," "target," "goal," "projects," "contemplates," "believes," "predicts," "potential," "continue," "foresees," "forecasts," "estimates," "opportunity" or other words or phrases of similar import.

It is uncertain whether any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what impact they will have on the results of operations and financial condition of the combined companies or the price of RBA's common shares or the Company's common stock. Therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. While RBA's and the Company's management believe the assumptions underlying the forward-looking statements are reasonable, these forward-looking statements involve certain risks and uncertainties, many of which are beyond the parties' control, that could cause actual results to differ materially from those indicated in such forward-looking statements, including but not limited to: the possibility that shareholders of RBA may not approve the issuance of new common shares of RBA in the transaction or that shareholders of the Company may not approve the adoption of the merger agreement; the risk that a condition to closing of the proposed transaction may not be satisfied (or waived), that either party may terminate the merger agreement or that the closing of the proposed transaction might be delayed or not occur at all; the anticipated tax treatment of the proposed transaction; potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed transaction; the diversion of management time on transaction-related issues; the response of competitors to the proposed transaction; the ultimate difficulty, timing, cost and results of integrating the operations of RBA and the Company; the effects of the business combination of RBA and the Company, including the combined company's future financial condition, results of operations, strategy and plans; the failure (or delay) to receive the required regulatory approval of the transaction; the fact that operating costs and business disruption may be greater than expected following the public announcement or consummation of the proposed transaction; the effect of the announcement, pendency or consummation of the proposed transaction on the trading price of RBA's common shares or the Company's common stock; the ability of RBA and/or the Company to retain and hire key personnel and employees; the significant costs associated with the proposed transaction; the outcome of any legal proceedings that could be instituted against RBA, the Company and/or others relating to the proposed transaction; restrictions during the pendency of the proposed transaction that may impact the ability of RBA and/or the Company to pursue non-ordinary course transactions, including certain business opportunities or strategic transactions; the ability of the combined company to realize anticipated synergies in the amount, manner or timeframe expected or at all; the failure of the combined company to realize potential revenue, growth, operational enhancement, expansion or other value creation opportunities from the sources or in the amount, manner or timeframe expected or at all; the failure of the trading multiple of the combined company to normalize or re-rate and other fluctuations in such trading multiple; changes in capital markets and the ability of the combined company to finance operations in the manner expected or to de-lever in the timeframe expected; the failure of RBA or the combined company to meet financial and/or KPI targets; the failure to satisfy any of the conditions to closing of the Starboard investment in RBA, including acceptance by the TSX; any legal impediment to the payment of the special dividend by RBA, including TSX consent to the dividend record date; legislative, regulatory and economic developments affecting the business of RBA and the Company; general economic and market developments and conditions; the evolving legal, regulatory and tax regimes under which RBA and the Company operates; unpredictability and severity of catastrophic events, including, but not limited to, pandemics, acts of terrorism or outbreak of war or hostilities, as well as RBA's or the Company's response to any of the aforementioned factors. These risks, as well as other risks related to the proposed transaction, are included in the registration statement on Form S-4 and joint proxy statement/prospectus filed with the Securities and Exchange Commission (the "SEC") and applicable Canadian securities regulatory authorities in connection with the proposed transaction. While the list of factors presented here is, and the list of factors presented in the registration statement on Form S-4 are, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties.

For additional information about other factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to RBA's and the Company's respective periodic reports and other filings with the SEC and/or applicable Canadian securities regulatory authorities, including the risk factors identified in RBA's most recent Quarterly Reports on Form 10-Q and Annual Report on Form 10-K and the Company's most recent Quarterly Reports on Form 10-Q and Annual Report on Form 10-K. The forward-looking statements included in this communication are made only as of the date hereof. Neither RBA nor the Company undertakes any obligation to update any forward-looking statements to reflect actual results, new information, future events, changes in its expectations or other circumstances that exist after the date as of which the forward-looking statements were made, except as required by law.

**No Offer or Solicitation**

This communication is not intended to and shall not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities, or a solicitation of any vote or approval, nor shall there be any offer, solicitation or sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended, or pursuant to an exemption from, or in a transaction not subject to, such registration requirements.

**Important Additional Information and Where to Find It**

In connection with the proposed transaction, RBA filed with the SEC and applicable Canadian securities regulatory authorities a registration statement on Form S-4 to register the common shares of RBA to be issued in connection with the proposed transaction on December 14, 2022. The registration statement includes a joint proxy statement/prospectus which will be sent to the shareholders of RBA and shareholders of the Company seeking their approval of their respective transaction-related proposals. Each of RBA and the Company may also file other relevant documents with the SEC and/or applicable Canadian securities regulatory authorities regarding the proposed transaction. This document is not a substitute for the proxy statement/prospectus or registration statement or any other document that RBA or the Company may file with the SEC and/or applicable Canadian securities regulatory authorities. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT ON FORM S-4 AND THE RELATED JOINT PROXY STATEMENT/PROSPECTUS, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS AND ANY OTHER RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC and applicable Canadian securities regulatory authorities IN CONNECTION WITH THE PROPOSED TRANSACTION OR INCORPORATED BY REFERENCE IN THE PROXY STATEMENT/PROSPECTUS, CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE, BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT RBA, THE COMPANY AND THE PROPOSED TRANSACTION.

Investors and security holders may obtain copies of these documents (when they are available) free of charge through the website maintained by the SEC at www.sec.gov, SEDAR at www.sedar.com or from RBA at its website, investor.ritchiebros.com, or from the Company at its website, investors.iaai.com. Documents filed with the SEC and applicable Canadian securities regulatory authorities by RBA (when they are available) will be available free of charge by accessing RBA's website at investor.ritchiebros.com under the heading Financials/SEC Filings, or, alternatively, by directing a request by telephone or mail to RBA at 9500 Glenlyon Parkway, Burnaby, BC, V5J 0C6, Canada, and documents filed with the SEC by the Company (when they are available) will be available free of charge by accessing the Company's website at investors.iaai.com or by contacting the Company's Investor Relations at investors@iaai.com.

**Participants in the Solicitation**

RBA and IAA, certain of their respective directors and executive officers and other members of management and employees, and Jeffrey C. Smith, may be deemed to be participants in the solicitation of proxies from the stockholders of RBA and IAA in respect of the proposed transaction under the rules of the SEC. Information about RBA's directors and executive officers is available in RBA's definitive proxy statement on Schedule 14A for its 2022 Annual Meeting of Shareholders, which was filed with the SEC and applicable Canadian securities regulatory authorities on March 15, 2022, and certain of its Current Reports on Form 8-K. Information about IAA's directors and executive officers is available in IAA's definitive proxy statement on Schedule 14A for its 2022 Annual Meeting of Stockholders, which was filed with the SEC on May 2, 2022, and certain of its Current Reports on Form 8-K. Other information regarding persons who may be deemed participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, including information with respect to Mr. Smith, are contained or will be contained in the joint proxy statement/prospectus and other relevant materials filed or to be filed with the SEC and applicable Canadian securities regulatory authorities regarding the proposed transaction when they become available. Investors should read the joint proxy statement/prospectus carefully before making any voting or investment decisions. You may obtain free copies of these documents from RBA or IAA free of charge using the sources indicated above.

**Non-GAAP Financial Measures**

This presentation contains certain non-GAAP financial measures, including adjusted EBITDA. These non-GAAP financial measures are not calculated in accordance with GAAP and may exclude items that are significant in understanding and assessing a company's financial condition or operating results. Therefore, these measures should not be considered in isolation or as alternatives to financial measures under GAAP. In addition, these measures may not be comparable to similarly-titled measures used by other companies.

With respect to IAA, adjusted EBITDA is a non-GAAP financial measure calculated as net income before income taxes, interest expense, and depreciation and amortization ("EBITDA") and further adjusted for items that IAA's management believes are not representative of ongoing operations including, but not limited to, (a) non-income, tax-related accruals, (b) fair value adjustments related to contingent consideration (c) severance, restructuring and other retention expenses, (d) the net loss or gain on the sale of assets or expenses associated with certain M&A, financing and other transactions, (e) acquisition costs, and (f) certain professional fees, as well as (g) gains and losses related to foreign currency exchange rates. IAA believes that adjusted EBITDA provides useful information regarding IAA's operational performance because it enhances an investor's overall understanding of IAA's core financial performance and helps investors compare IAA's performance to prior and future periods.

With respect to RBA, RBA believes adjusted EBITDA provides useful information about the growth or decline of its net income when compared between different financial periods. RBA uses adjusted EBITDA as a key performance measure because RBA believes it facilitates operating performance comparisons from period to period and provides management with the ability to monitor its controllable incremental revenues and costs. Adjusted EBITDA is calculated by adding back depreciation and amortization, interest expense, income tax expense, and subtracting interest income from net income, as well as adding back share-based payments expense, acquisition-related costs, loss (gain) on disposition of property, plant and equipment, terminated and ongoing transaction costs, and excluding the effects of any non-recurring or unusual adjusting items.

Further information regarding non-GAAP financial measures is included in the respective filings with the SEC and/or applicable Canadian securities regulatory authorities of RBA and IAA.

**Ritchie Bros. Contacts**

**Investors**

Sameer Rathod Vice President, Investor Relations & Market Intelligence

(510) 381-7584

srathod@ritchiebros.com

**Media**

Dan Katcher / Lucas Pers / Haley Salas

Joele Frank, Wilkinson Brimmer Katcher

(212) 355-4449

**IAA Contacts**

**Investors**

Farah Soi / Caitlin Churchill \| ICR

(203)682-8200

investors@iaai.com

**Media**

Jeanene O'Brien \| IAA, Inc.

SVP, Global Marketing and Communications

(708) 492-7328

jobrien@iaai.com

**Ancora Contacts**

Longacre Square Partners

Greg Marose / Miller Winston, 646-386-0091

gmarose@longacresquare.com / mwinston@longacresquare.com