Document:

Exhibit 10.3

      

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    EMPLOYEE MATTERS AGREEMENT

    

    

    BY AND BETWEEN

    

    

    KAR AUCTION SERVICES, INC.

    

    

    AND

    

    

    IAA SPINCO INC.

    

    

    DATED AS OF [●]

     

      

     

      

     

      

    

      

    

      

     

      

     

      

     

      

    
      
        

    

    

    

    	
            TABLE OF CONTENTS

          
	 	 	 
	 	 	
             Page

          
	 	 	 
	
            Article I

          
	 	 	 
	
            DEFINITIONS

          
	 	 	 
	
            Section 1.01

          	
            Definitions

          	
            1

          
	
            Section 1.02

          	
            Interpretation

          	
            6

          
	 	 	 
	
            Article II

          
	 	 	 
	
            GENERAL
                  PRINCIPLES FOR ALLOCATION OF LIABILITIES

          
	 	 	 
	
            Section 2.01

          	
            General Principles

          	
            7

          
	
            Section 2.02

          	
            Service Credit

          	
            8

          
	
            Section 2.03

          	
            Benefit Plans

          	
            9

          
	
            Section 2.04

          	
            Individual Agreements

          	
            10

          
	
            Section 2.05

          	
            Non-U.S. Jurisdictions

          	
            11

          
	 	 	 
	
            Article III

          
	 	 	 
	
            ASSIGNMENT OF
                  EMPLOYEES

          
	 	 	 
	
            Section 3.01

          	
            Active Employees

          	
            12

          
	 	 	 
	
            Article IV

          
	 	 	 
	
            EQUITY, INCENTIVE
                  AND EXECUTIVE COMPENSATION

          
	 	 	 
	
            Section 4.01

          	
            Generally

          	
            12

          
	
            Section 4.02

          	
            Equity Incentive Awards

          	
            13

          
	
            Section 4.03

          	
            Non-Equity Incentive Plans

          	
            19

          
	
            Section 4.04

          	
            Director Compensation

          	
            19

          
	 	 	 
	
            Article V

          
	 	 	 
	
            U.S. QUALIFIED
                  RETIREMENT PLANS

          
	 	 	 
	
            Section 5.01

          	
            SpinCo U.S. Savings Plan

          	
            20

          
	 	 	 
	
            Article VI

          
	 	 	 
	
            Director Deferred
                  Compensation Plan

          
	 	 	 
	
            Section 6.01

          	
            KAR

          	
            21

          
	
            Section 6.02

          	
            SpinCo.

          	
            21

          
	 	 	 
	
            Article VII

          
	 	 	 
	
            WELFARE BENEFIT
                  PLANS

          
	 	 	 
	
            Section 7.01

          	
            Welfare Plans

          	
            22

          
	
            Section 7.02

          	
            U.S. COBRA and HIPAA

          	
            23

          
	
            Section 7.03

          	
            Vacation, Holidays and Leaves of
                  Absence

          	
            23

          
	
            Section 7.04

          	
            Severance and Unemployment
                  Compensation

          	
            23

          
	
            Section 7.05

          	
            Workers’ Compensation

          	
            24

          
	
            Section 7.06

          	
            Insurance Contracts

          	
            24

          
	
            Section 7.07

          	
            Third-Party Vendors

          	
            24

          
	
            Section 7.08

          	
            SpinCo Retained Welfare Plans

          	
            24

          

    

    

    i

    

    
      
        

    

    

    

    	 	 	 
	
            Article VIII

          
	 	 	 
	
            NON-U.S.
                  EMPLOYEES

          
	 	 	 
	
            Section 8.01

          	
            General

          	
            25

          
	 	 	 
	
            Article IX

          
	 	 	 
	
            MISCELLANEOUS

          
	 	 	 
	
            Section 9.01

          	
            Employee Records

          	
            25

          
	
            Section 9.02

          	
            Preservation of Rights to Amend

          	
            26

          
	
            Section 9.03

          	
            Fiduciary Matters

          	
            26

          
	
            Section 9.04

          	
            Further Assurances

          	
            26

          
	
            Section 9.05

          	
            Counterparts; Entire Agreement;
                    Corporate Power

          	
            27

          
	
            Section 9.06

          	
            Governing Law

          	
            27

          
	
            Section 9.07

          	
            Assignability

          	
            28

          
	
            Section 9.08

          	
            Third-Party Beneficiaries

          	
            28

          
	
            Section 9.09

          	
            Notices

          	
            28

          
	
            Section 9.10

          	
            Severability

          	
            29

          
	
            Section 9.11

          	
            Force Majeure

          	
            29

          
	
            Section 9.12

          	
            Headings

          	
            29

          
	
            Section 9.13

          	
            Survival of Covenants

          	
            29

          
	
            Section 9.14

          	
            Waivers of Default

          	
            29

          
	
            Section 9.15

          	
            Dispute Resolution

          	
            30

          
	
            Section 9.16

          	
            Specific Performance

          	
            30

          
	
            Section 9.17

          	
            Amendments

          	
            30

          
	
            Section 9.18

          	
            Interpretation

          	
            30

          
	
            Section 9.19

          	
            Limitations of Liability

          	
            30

          
	
            Section 9.20

          	
            Mutual Drafting

          	
            31

          

    

    

    ii

    

    
      
        

    

    

    

    EMPLOYEE MATTERS AGREEMENT

    

    

    This EMPLOYEE MATTERS AGREEMENT, dated as of [●] (this “Agreement”), is by and between KAR Auction Services, Inc., a Delaware corporation (“KAR”), and IAA Spinco
        Inc., a Delaware corporation and wholly owned subsidiary of KAR (“SpinCo”).

    

    

    WHEREAS, as contemplated by the Separation and Distribution Agreement between KAR and SpinCo dated [●],
        KAR and SpinCo desire to enter into this Agreement to provide for the allocation of Assets, Liabilities, and responsibilities with respect to certain matters relating to employees and other individual service providers (including employee
        compensation and benefit plans and programs) between them.

    

    

    NOW, THEREFORE, in consideration of the mutual agreements, provisions and covenants contained in this
        Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows:

    

    

    ARTICLE I

    

    

    DEFINITIONS

    

    

    Section

          1.01            Definitions. 

        For purposes of this Agreement, the following terms shall have the meanings set forth below.  Capitalized terms used in this Agreement but not otherwise defined herein shall have the meanings ascribed to them in the Separation and Distribution
        Agreement.

    

    

    “17/18 KAR PRSU”
        shall have the meaning set forth in Section 4.02(b)(i).

    

    

    “19 KAR PRSU”
        shall have the meaning set forth in Section 4.02(b)(ii).

    

    

    “19 SpinCo PRSU”
        shall have the meaning set forth in Section 4.02(b)(ii).

    

    

    “Action”
        shall have the meaning set forth in the Separation and Distribution Agreement.

    

    

    “Affiliate”
        shall have the meaning set forth in the Separation and Distribution Agreement.

    

    

    “Agreement”
        shall have the meaning set forth in the preamble to this Agreement and shall include all Schedules hereto and all amendments, modifications, and changes hereto entered into pursuant to Section 9.17.

    

    

    “Ancillary Agreement”
        shall have the meaning set forth in the Separation and Distribution Agreement.

    

    

    “Assets”
        shall have the meaning set forth in the Separation and Distribution Agreement.

    

    

    “Benefit Plan”
        shall mean any contract, agreement, policy, practice, program, plan, trust, commitment or arrangement providing for benefits, perquisites or compensation of any nature from an employer to any Employee, or to any family member, dependent, or
        beneficiary of any such Employee, including pension plans, savings plans, thrift plans, supplemental pension plans and Welfare Plans, and contracts, agreements, policies, practices, programs, plans, trusts, commitments and arrangements providing
        for terms of employment, fringe benefits, severance benefits, change in control protections or benefits, travel and accident, life, accidental death and dismemberment, disability and accident insurance, tuition reimbursement, travel reimbursement,
        vacation, sick, personal or bereavement days, leaves of absences and holidays; provided, however, the term “Benefit Plan” does not include any government-sponsored benefits, such as workers’ compensation, unemployment or any similar plans, programs or policies.

    

    

    “Closing KAR Stock Price”
        shall have the meaning set forth in Section 4.02(a)(i)(B).

    

    

    “COBRA” shall
        mean the U.S. Consolidated Omnibus Budget Reconciliation Act of 1985, as codified at Section 601 et seq. of ERISA and at Section 4980B of the
        Code.

    

    

    “Covered Participants”
        shall have the meaning set forth in Section 6.02(a).

    

    

    “Effective Time”
        shall mean the Distribution Effective Time as defined in the Separation and Distribution Agreement.

    

    

    “Employee”
        shall mean any KAR Group Employee or SpinCo Group Employee.

    

    

    “Employment Taxes”
        shall mean any federal, state, local or foreign Taxes, charges, fees, duties, levies, imposts, rates, social security contributions or other assessments or obligations, in each case in the nature of a Tax, imposed on, due or asserted to be due from
        (i) Employees or Former Employees or (ii) the KAR Group or the SpinCo Group as employers or former employers of such Employees or Former Employees including employers’ and employees’ portions of Federal Insurance Contributions Act Taxes, employers’
        Federal Unemployment Tax Act taxes and state and local unemployment insurance taxes, and employers’ withholding, reporting and remitting obligations with respect to any such Taxes or employees’ federal, state and local income taxes that are imposed
        on or due from Employees or Former Employees.

    

    

    “Equity Award Deduction”
        shall mean any Tax deduction that may be taken pursuant to applicable Law with respect to any KAR Award or any SpinCo Award held by any Employee or any Former Employee.

    

    

    “ERISA” shall
        mean the U.S. Employee Retirement Income Security Act of 1974, as amended, and the regulations promulgated thereunder.

    

    

    “Former Employees”
        shall mean Former KAR Group Employees and Former SpinCo Group Employees.

    

    

    “Former KAR Group
            Employee” shall mean any individual who is a former employee of KAR or any of its Subsidiaries as of the Effective Time and who is not a Former SpinCo Group Employee.

    
      
        

    

    
    

    

    “Former SpinCo Group
            Employee” shall mean any individual who is a former employee of KAR or any of its Subsidiaries as of the Effective Time and who, during the final twelve (12) months of his or her employment, was primarily in the service of the SpinCo
        Business.

    

    

    “General Continuation
            Period” shall mean a period of time commencing as of the Distribution Date and ending on December 31, 2019.

    

    

    “HIPAA” shall
        mean the U.S. Health Insurance Portability and Accountability Act of 1996, as amended, and the regulations promulgated thereunder.

    

    

    “Individual Agreement”
        shall mean any individual (i) employment contract, (ii) retention, severance or change of control agreement, (iii) expatriate (including any international assignee) contract or agreement (including agreements and obligations regarding repatriation,
        relocation, equalization of taxes and living standards in the host country), or (iv) other agreement containing restrictive covenants (including confidentiality, non-competition and non-solicitation provisions) between a member of the KAR Group and
        a SpinCo Group Employee, as in effect immediately prior to the Effective Time.

    

    

    “IRS” shall
        mean the United States Department of Treasury Internal Revenue Service.

    

    

    “KAR” shall
        have the meaning set forth in the preamble to this Agreement.

    

    

    “KAR Award”
        means the adjusted KAR Options, the KAR RSUs, KAR Restricted Stock Awards, and the KAR PRSUs, collectively.

    

    

    “KAR Benefit Plan”
        shall mean any Benefit Plan established, sponsored or maintained by KAR or any of its Subsidiaries immediately prior to the Effective Time, excluding any SpinCo Benefit Plan.

    

    

    “KAR Change of Control”
        shall have the meaning set forth in Section 4.02(h).

    

    

    “KAR Compensation
            Committee” shall mean the Compensation Committee of the KAR Board.

    

    

    “KAR Director Plan”
        shall have the meaning set forth in Section 6.01.

    

    

    “KAR Equity-Based Plans”
        means the Stock Incentive Plan and the 2009 Omnibus Stock and Incentive Plan, each as amended from time to time.

    

    

    “KAR ESPP”
        shall have the meaning set forth in Section 4.02(m)(i).

    

    

    “KAR Group Employee”
        shall mean each individual who is employed by the KAR Group as of the Effective Time and who is not a SpinCo Group Employee (including any such individual who is not actively working as of the Effective Time as a result of illness, injury, vacation
        or other leave of absence).

    

    

    “KAR Savings Plan”
        shall mean the KAR Auction Services, Inc. 401(k) Plan.

    

    

    “KAR Service Provider”
        shall mean each KAR Group Employee and each individual who is a member of the KAR Board as of the Effective Time and is not a Transferred Director.

    

    

    “KAR Welfare Plan”
        shall mean any Welfare Plan established, sponsored, maintained or contributed to by KAR or any of its Subsidiaries for the benefit of Employees or Former Employees, including but not limited to each Welfare Plan listed on Schedule 1.01(c) but excluding any SpinCo Welfare Plan.

    

    

    “Opening KAR Stock Price”
        shall have the meaning set forth in Section 4.02(a)(i)(B).

    

    

    “Opening SpinCo Stock
            Price” shall have the meaning set forth in Section 4.02(a)(i)(B).

    

    

    “Option,”
        when immediately preceded by “KAR,” means an option (either nonqualified or an incentive stock option) to purchase KAR Shares granted by KAR prior to the Effective Time pursuant to a KAR Equity-Based Plan and, when immediately preceded by “SpinCo,”
        means an option to purchase SpinCo Shares, which option is granted pursuant to the SpinCo Long Term Incentive Plan as part of the adjustment to KAR Options as set forth in Section 4.02.

    

    

    “Party” shall
        mean a party to this Agreement.

    

    

    “Providing Party”
        shall have the meaning set forth in Section 2.02(b).

    

    

    “PRSU,” when
        immediately preceded by “KAR,” means a performance-based RSU granted by KAR prior to the Effective Time pursuant to a KAR Equity-Based Plan and when immediately preceded by “SpinCo,” means a performance-based RSU granted by SpinCo granted pursuant
        to the SpinCo Long Term Incentive Plan as part of the adjustment to KAR PRSUs as set forth in Section 4.02.

    
      2

      
        

    

    

    

    “Requesting Party”
        shall have the meaning set forth in Section 2.02(b).

    

    

    “Restricted Stock Award,”

        when immediately preceded by “KAR,” means a KAR Share granted by KAR prior to the Effective Time pursuant to a KAR Equity-Based Plan which is subject to vesting and forfeiture restrictions and when immediately preceded by “SpinCo,” means a SpinCo
        Share, which is granted pursuant to the SpinCo Long Term Incentive Plan as part of the adjustment to KAR Restricted Stock Awards as set forth in Section 4.02
        which is subject to vesting and forfeiture restrictions.

    

    

    “RSU,” when
        immediately preceded by “KAR,” means a restricted stock unit granted by KAR prior to the Effective Time pursuant to a KAR Equity-Based Plan representing a general unsecured promise by KAR to deliver a KAR Share or an amount in cash equal to the
        value of a KAR Share and when immediately preceded by “SpinCo,” means a restricted stock unit granted by SpinCo representing a general unsecured promise by SpinCo to deliver a SpinCo Share or an amount in cash equal to the value of a SpinCo Share,
        which unit is granted pursuant to the SpinCo Long Term Incentive Plan as part of the adjustment to KAR RSUs as set forth in Section 4.02.

    

    

    “Securities Act”
        shall mean the U.S. Securities Act of 1933, as amended, together with the rules and regulations promulgated thereunder.

    

    

    “Separation and
            Distribution Agreement” shall have the meaning set forth in the recitals to this Agreement.

    

    

    “SpinCo”
        shall have the meaning set forth in the preamble to this Agreement.

    

    

    “SpinCo Award”
        means the SpinCo Options, the SpinCo RSUs, the SpinCo Restricted Stock Awards, and the SpinCo PRSUs, collectively.

    

    

    “SpinCo Benefit Plan”
        shall mean any Benefit Plan established, sponsored, maintained or contributed to by a member of the SpinCo Group as of or after the Effective Time.

    

    

    “SpinCo Board”
        shall mean the Board of Directors of SpinCo.

    

    

    “SpinCo Change of
            Control” shall have the meaning set forth in Section 4.02(h).

    

    

    “SpinCo Director Plan”
        shall have the meaning set forth in Section 6.02(a).

    

    

    “SpinCo Group Employee”
        shall mean those individuals employed by the SpinCo Group as of the Effective Time and those individuals set forth in Schedule 1.01(b) (including any such
        individual who is not actively working as of the Effective Time as a result of illness, injury, vacation or other leave of absence).

    

    

    “SpinCo Long Term
            Incentive Plan” means the SpinCo Omnibus Stock and Incentive Plan adopted by SpinCo prior to the Effective Time.

    

    

    “SpinCo Retained Welfare
            Plans” shall have the meaning set forth in Section 7.08.

    

    

    “SpinCo Savings Plan”
        shall mean the [●].

    

    

    “SpinCo Service Provider”
        shall mean each SpinCo Group Employee and each individual who is a member of the SpinCo Board as of the Effective Time, including the Transferred Directors.

    

    

    “SpinCo Welfare Plans”
        shall mean the Welfare Plans established, sponsored, maintained or contributed to by any member of the SpinCo Group for the benefit of SpinCo Group Employees and Former SpinCo Group Employees.

    

    

    “Transferred Director”
        shall have the meaning set forth in Section 4.04(a).

    

    

    “U.S.” shall
        mean the United States of America.

    

    

    “Welfare Plan”
        shall mean any “welfare plan” (as defined in Section 3(1) of ERISA) or a “cafeteria plan” under Section 125 of the Code, and any benefits offered thereunder, and any other plan offering health benefits (including medical, prescription drug, dental,
        vision, mental health, substance abuse and retiree health), disability benefits, or life, accidental death and dismemberment, and business travel insurance, pre-tax premium conversion benefits, dependent care assistance programs, employee
        assistance programs, paid time-off programs, contribution funding toward a health savings account, flexible spending accounts or cashable credits.

    

    

    Section 1.02            Interpretation.
        Section 10.16 of the Separation and Distribution Agreement is hereby incorporated by reference.

    
      3

      
        

    

    

    

    ARTICLE II

    

    

    GENERAL PRINCIPLES FOR
            ALLOCATION OF LIABILITIES

    

    

    Section 2.01            General Principles.

    

    

    (a)            Acceptance

          and Assumption of SpinCo Liabilities.  On or prior to the Effective Time, but in any case prior to the Distribution, SpinCo and the applicable SpinCo Designees shall accept, assume and agree to faithfully perform, discharge and fulfill all
        of the following Liabilities in accordance with their respective terms (each of which shall be treated as a SpinCo Liability), regardless of when or where such Liabilities arose or arise, or whether the facts on which they are based occurred prior
        to or subsequent to the Effective Time, regardless of where or against whom such Liabilities are asserted or determined (including any Liabilities arising out of claims made by KAR’s or SpinCo’s respective directors, officers, Employees, Former
        Employees, agents, Subsidiaries or Affiliates against any member of the KAR Group or the SpinCo Group) or whether asserted or determined prior to the date hereof, and regardless of whether arising from or alleged to arise from negligence,
        recklessness, violation of Law, fraud or misrepresentation by any member of the KAR Group or the SpinCo Group, or any of their respective directors, officers, Employees, Former Employees, agents, Subsidiaries or Affiliates:

    

    

    (i)            any and all wages, salaries, incentive compensation (as the same may be modified by this Agreement), equity compensation (as the same may be modified by this Agreement),
        commissions, bonuses and any other employee compensation or benefits payable to or on behalf of any SpinCo Group Employees and Former SpinCo Group Employees after the Effective Time, without regard to when such wages, salaries, incentive
        compensation, equity compensation, commissions, bonuses or other employee compensation or benefits are or may have been awarded or earned;

    

    

    (ii)            any and all Liabilities whatsoever with respect to claims made by or with respect to any SpinCo Group Employees or Former SpinCo Group Employees in connection with any Benefit
        Plan not retained or assumed by any member of the KAR Group pursuant to this Agreement, the Separation and Distribution Agreement or any Ancillary Agreement;

    

    

    (iii)            any and all Employment Taxes with respect to SpinCo Group Employees and Former SpinCo Group Employees;

    

    

    (iv)            any and all other employment or service-related Liabilities with respect to SpinCo Group Employees and Former SpinCo Group Employees; and

    

    

    (v)            any and all Liabilities expressly assumed or retained by any member of the SpinCo Group pursuant to this Agreement or Schedule 2.4(a) of the Separation and Distribution
        Agreement.

    

    

    (b)            Acceptance

          and Assumption of KAR Liabilities.  On or prior to the Effective Time, but in any case prior to the Distribution, KAR and certain members of the KAR Group designated by KAR shall accept, assume and agree to faithfully perform, discharge
        and fulfill all of the following Liabilities held by SpinCo or any SpinCo Designee and KAR and the applicable members of the KAR Group shall be responsible for such Liabilities in accordance with their respective terms (each of which shall be
        treated as a KAR Liability), regardless of when or where such Liabilities arose or arise, or whether the facts on which they are based occurred prior to or subsequent to the Effective Time, regardless of where or against whom such Liabilities are
        asserted or determined (including any Liabilities arising out of claims made by KAR’s or SpinCo’s respective directors, officers, Employees, Former Employees, agents, Subsidiaries or Affiliates against any member of the KAR Group or the SpinCo
        Group) or whether asserted or determined prior to the date hereof, and regardless of whether arising from or alleged to arise from negligence, recklessness, violation of Law, fraud or misrepresentation by any member of the KAR Group or the SpinCo
        Group, or any of their respective directors, officers, Employees, Former Employees, agents, Subsidiaries or Affiliates:

    

    

    (i)            any and all wages, salaries, incentive compensation (as the same may be modified by this Agreement), equity compensation (as the same may be modified by this Agreement),
        commissions, bonuses and any other employee compensation or benefits payable to or on behalf of any KAR Group Employees and Former KAR Group Employees after the Effective Time, without regard to when such wages, salaries, incentive compensation,
        equity compensation, commissions, bonuses or other employee compensation or benefits are or may have been awarded or earned;

    

    

    (ii)            any and all Liabilities whatsoever with respect to claims made by or with respect to any KAR Group Employees or Former KAR Group Employees in connection with any Benefit Plan
        not retained or assumed by any member of the SpinCo Group pursuant to this Agreement, the Separation and Distribution Agreement or any Ancillary Agreement;

    

    

    (iii)            any and all Employment Taxes with respect to KAR Group Employees and Former KAR Group Employees;

    

    

    (iv)            any and all other employment or service-related Liabilities with respect to KAR Group Employees and Former KAR Group Employees; and

    

    

    (v)            any and all Liabilities expressly assumed or retained by any member of the KAR Group pursuant to this Agreement or Schedule 2.4(b) of the Separation and Distribution Agreement.

    

    

    (c)
          Unaddressed Liabilities.  To the extent that this Agreement does not address particular Liabilities under any Benefit Plan and the
        Parties later determine that they should be allocated in connection with the Distribution, the Parties shall agree in good faith on the allocation, taking into account the handling of comparable Liabilities under this Agreement.

    
      4

      
        

    

    

    

    Section 2.02            Service Credit.

    

    

    (a)            Service
          for Eligibility, Vesting and Benefit Purposes.  The SpinCo Benefit Plans shall, and SpinCo shall cause each member of the SpinCo Group to, recognize each SpinCo Group Employee’s and each Former SpinCo Group Employee’s full service with KAR
        or any of its Subsidiaries or predecessor entities at or before the Effective Time, to the same extent that such service was credited by KAR for similar purposes prior to the Effective Time as if such full service had been performed for a member of
        the SpinCo Group, for purposes of eligibility, vesting and determination of level of benefits under any such SpinCo Benefit Plan.

    

    

    (b)            Evidence
          of Prior Service.  Notwithstanding anything in this Agreement to the contrary, but subject to Section 3.02 and applicable Law, upon reasonable
        request by either Party (the “Requesting Party”), the other Party (the “Providing

            Party”) will provide to the Requesting Party copies of any records available to the Providing Party to document the service, plan participation and membership of Former Employees of the Providing Party who are then Employees of the
        Requesting Party, and will cooperate with the Requesting Party to resolve any discrepancies or obtain any missing data for purposes of determining benefit eligibility, participation, vesting and calculation of benefits with respect to any such
        Employee.

     

          

    Section 2.03            Benefit Plans.

    

    

    (a)            Establishment of Plans. 
        Before the Effective Time, SpinCo shall, or shall cause an applicable member of the SpinCo Group to, adopt Benefit Plans (and related trusts, if applicable), with terms comparable (or such other standard as is specified in this Agreement with
        respect to any particular Benefit Plan) to those of the corresponding KAR Benefit Plans.  The U.S. KAR Benefit Plans are listed on Schedule 2.03(a)(i) and the Canadian KAR Benefit Plans are listed on Schedule 2.03(a)(ii). SpinCo may limit
        participation in any such SpinCo Benefit Plan to SpinCo Group Employees and Former SpinCo Group Employees who participated in the corresponding KAR Benefit Plan immediately prior to the Effective Time. SpinCo shall, or shall cause an applicable
        member of the SpinCo Group to, adopt such other Benefit Plans as specified in this Agreement.

    

    

    (b)            Information and Operation.  KAR shall provide SpinCo with information
        describing each KAR Benefit Plan election made by a SpinCo Group Employee or Former SpinCo Group Employee that may have application to SpinCo Benefit Plans from and after the Effective Time, and SpinCo shall use its commercially reasonable efforts
        to administer the SpinCo Benefit Plans using those elections. Each Party shall, upon reasonable request, and subject to any applicable privacy laws, provide the other Party and the other Party’s respective Affiliates, agents, and vendors all
        information reasonably necessary to the other Party’s operation or administration of its Benefit Plans.

    

    

    (c)            No Diminution of Benefits.  Except as provided herein, during the General
        Continuation Period, SpinCo shall provide to each SpinCo Group Employee and Former SpinCo Group Employee employee benefits under SpinCo Benefit Plans that, in the aggregate, are substantially similar to the employee benefits provided to such
        employees immediately prior to the Effective Time. Notwithstanding the foregoing, during such period, SpinCo may make such changes, modifications or amendments to the applicable SpinCo Benefit Plan as may be required by applicable Law or as are
        necessary and appropriate to reflect the Separation.

    

    

    (d)            No Duplication or Acceleration of Benefits.  Notwithstanding anything to
        the contrary in this Agreement, the Separation and Distribution Agreement or any Ancillary Agreement, no participant in any SpinCo Benefit Plan shall receive service credit or benefits to the extent that receipt of such service credit or benefits
        would result in duplication of benefits provided to such participant by the corresponding KAR Benefit Plan or any other plan, program or arrangement sponsored or maintained by a member of the KAR Group. Furthermore, unless expressly provided for in
        this Agreement, the Separation and Distribution Agreement or in any Ancillary Agreement or required by applicable Law, no provision in this Agreement shall be construed to create any right to accelerate vesting or entitlements under any
        compensation or Benefit Plan, program or arrangement sponsored or maintained by a member of the KAR Group or member of the SpinCo Group on the part of any Employee or Former Employee.

    

    

    (e)            No Expansion of Participation.  Unless otherwise expressly provided in
        this Agreement, as otherwise determined or agreed to by KAR and SpinCo, as required by applicable Law, or as explicitly set forth in a SpinCo Benefit Plan, a SpinCo Group Employee or Former SpinCo Group Employee shall be entitled to participate in
        the SpinCo Benefit Plans at the Effective Time only to the extent that such SpinCo Group Employee or Former SpinCo Group Employee was entitled to participate in the corresponding KAR Benefit Plan as in effect immediately prior to the Effective Time
        (to the extent that such SpinCo Group Employee or Former SpinCo Group Employee does not participate in the respective SpinCo Benefit Plan immediately prior to the Effective Time), it being understood that this Agreement does not expand (i) the
        number of SpinCo Group Employees or Former SpinCo Group Employees entitled to participate in any SpinCo Benefit Plan or (ii) the participation rights of SpinCo Group Employees or Former SpinCo Group Employees in any SpinCo Benefit Plans beyond the
        rights of such SpinCo Group Employees or Former SpinCo Group Employees under the corresponding KAR Benefit Plans, in each case, after the Effective Time.

    

    

    (f)            Transition Services.  The Parties acknowledge that the KAR Group or the
        SpinCo Group may provide administrative services for certain of the other Party’s compensation and benefit programs for a transitional period under the terms of the Transition Services Agreement. The Parties agree to enter into a business associate
        agreement (if required by HIPAA or other applicable health information privacy Laws) in connection with such Transition Services Agreement. To the extent that any services that are required to be provided by a Party under this Agreement are instead
        provided by the other Party under the Transition Services Agreement, the obligation of the relevant Party to provide such services under this Agreement shall commence at the expiration of the transitional period for such services under the
        Transition Services Agreement.

    
      5

      
        

    

    

    

    (g)            Beneficiaries.  References to KAR Group Employees, Former KAR Group
        Employees, SpinCo Group Employees, Former SpinCo Group Employees, and non-employee directors of either KAR or SpinCo (including Transferred Directors), shall be deemed to refer to their beneficiaries, dependents, survivors and alternate payees, as
        applicable.

    

    

    Section 2.04            Individual Agreements.

    

    

    (a)            Assignment by KAR.  To the
        extent permissible by the terms of any Individual Agreement and by applicable Law, KAR shall assign, or cause an applicable member of the KAR Group to assign, to SpinCo or another member of the SpinCo Group, as designated by SpinCo, all Individual
        Agreements, with such assignment to be effective as of the Effective Time.

    

    

    (b)            Assumption by SpinCo.  To the extent permissible by the terms of any
        Individual Agreement and by applicable Law, SpinCo shall assume and honor, or cause a member of the SpinCo Group to assume and honor,  any Individual Agreement effective as of the Effective Time.

    

    

    (c)            Enforcement Rights.

    

    

    (i)            To the extent that assignment of any such Individual Agreement is not permitted by the terms of such agreement or by applicable Law, effective as of the Effective Time, each
        member of the SpinCo Group shall be considered, to the extent permitted by the terms of such Individual Agreement and applicable Law, to be a successor to each member of the KAR Group for purposes of, and a third−party beneficiary with respect to,
        such Individual Agreement, such that each member of the SpinCo Group shall enjoy all of the rights and benefits under such agreement (including rights and benefits as a third-party beneficiary), with respect to the business operations of the SpinCo
        Group; provided, however, that in no event shall KAR be
        permitted to enforce any Individual Agreement (including any restrictive covenants contained therein) against a SpinCo Group Employee or Former SpinCo Group Employee for action taken in such individual’s capacity as a SpinCo Group Employee or
        Former SpinCo Group Employee; and provided, further, that KAR
        shall only be permitted to enforce any Individual Agreement (including any restrictive covenants contained therein) on KAR’s own behalf for twenty-four (24) months following the Effective Time.

    

    

    (ii)            To the extent that any such Individual Agreement is assigned to SpinCo or another member of the SpinCo Group, then each member of the KAR Group shall be considered, to the
        extent permitted by the terms of such Individual Agreement and applicable Law, to be a third-party beneficiary with respect to such Individual Agreement, such that each member of the KAR Group shall enjoy all of the rights and benefits under such
        agreement (including rights and benefits as a third-party beneficiary), with respect to the business operations of the KAR Group; provided, however, that in no event shall KAR be permitted to enforce any Individual Agreement (including any restrictive covenants contained therein) against a SpinCo
        Group Employee or Former SpinCo Group Employee for action taken in such individual’s capacity as a SpinCo Group Employee or Former SpinCo Group Employee; and provided,
        further, that KAR shall only be considered a third-party beneficiary with respect to any such Individual Agreement (including with respect to any restrictive
        covenants contained therein) for twenty-four (24) months following the Effective Time.

    

    

    
      (d)            Notice.  SpinCo shall, or shall cause another member of the SpinCo Group to, provide notice to all SpinCo Employees whose Individual Agreement is assigned pursuant to this
        Section 2.04 to SpinCo or another member of the SpinCo Group of such assignment and of the KAR Group’s continued enforcement rights.

    

    

    

    Section 2.05            Non-U.S.

            Jurisdictions.  Except as expressly set forth herein, the provisions of this Agreement shall apply in respect of all jurisdictions wherever situated; provided,
        however, that to the extent an Ancillary Agreement or an appendix attached hereto or a separation agreement between the Parties addresses employment,
        compensation and employee benefit matters, the terms of such Ancillary Agreement, appendix or separation agreement shall govern in respect of matters relating to employees employed in the applicable jurisdiction. KAR shall have the authority to
        adjust the treatment described in this Agreement (including any appendix attached hereto) or an Ancillary Agreement with respect to SpinCo Group Employees who are located outside of the United States in order to address different plans or benefits
        not addressed herein or to address applicable plans and benefits in a manner appropriate to the jurisdiction; ensure compliance with the applicable laws or regulations of countries outside of the United States; or to preserve the tax benefits
        provided under local tax law or regulation before the Distribution.

    
      6

      
        

    

    

    

    ARTICLE III

    

    

    ASSIGNMENT OF
            EMPLOYEES

    

    

    Section 3.01            Active Employees.

    

    

    (a)            Assignment and Transfer of
          Employees.  Immediately prior to the Effective Time, (i) the SpinCo Group and the applicable member of the KAR Group shall take such actions as are necessary to ensure that each SpinCo Group Employee employed by a member of the KAR Group
        is employed by a member of the SpinCo Group as of the Effective Time, and (ii) the KAR Group and the applicable member of the SpinCo Group shall take such actions as are necessary to ensure that each KAR Group Employee employed by a member of the
        SpinCo Group is employed by a member of the KAR Group as of the Effective Time.

    

    

    (b)            At-Will Status.  Nothing in this Agreement shall create any obligation on
        the part of any member of the KAR Group or any member of the SpinCo Group to (i) continue the employment of any Employee or permit the return from a leave of absence for any period after the date of this Agreement (except as required by applicable
        Law) or (ii) change the employment status of any Employee from “at-will,” to the extent that such Employee is an “at-will” employee under applicable Law.

    

    

    (c)            Severance.  The Parties acknowledge and agree that the Distribution and
        the assignment, transfer or continuation of the employment of Employees as contemplated by this Section 3.01 shall not be deemed an involuntary termination
        of employment entitling any SpinCo Group Employee or KAR Group Employee to severance payments or benefits, subject to the requirement of applicable Laws.

    

    

    (d)            Not a Change of Control/Change in Control.  The Parties acknowledge and
        agree that neither the consummation of the Distribution nor any transaction contemplated by this Agreement, the Separation and Distribution Agreement or any other Ancillary Agreement shall be deemed a “change of control,” “change in control,” or
        term of similar import for purposes of any Benefit Plan sponsored or maintained by any member of the KAR Group or member of the SpinCo Group.

    
      7

      
        

    

    

    

    ARTICLE IV

    

    

    EQUITY, INCENTIVE AND
            EXECUTIVE COMPENSATION

    

    

    Section 4.01            Generally. 

        Each KAR Award granted that is outstanding as of immediately prior to the Effective Time shall be adjusted as described below; provided, however, that, effective immediately prior to the Effective Time, the KAR Compensation Committee may provide for different adjustments with respect to some or
        all KAR Awards to the extent that the KAR Compensation Committee deems such adjustments necessary and appropriate.  Any adjustments made by the KAR Compensation Committee pursuant to the foregoing sentence shall be deemed incorporated by reference
        herein as if fully set forth below and shall be binding on the Parties and their respective Affiliates.  Before the Effective Time, the SpinCo Long Term Incentive Plan shall be established, with such terms as are necessary to permit the
        implementation of the provisions of Section 4.02. The adjustment or conversion of any KAR Award shall be effectuated in a manner that is intended to avoid
        the imposition of any penalty or other taxes on the holders thereof pursuant to Code Section 409A and, with respect to holders of KAR Awards who are Canadian taxpayers, in a manner consistent with the applicable conversion provisions of the Income
        Tax Act (Canada).

    

    

    Section 4.02            Equity

            Incentive Awards.

    

    

    (a)            Stock Options.

    

    

    (i)            Conversion.  Each KAR Option which is outstanding immediately
        prior to the Effective Time will be converted or disposed of (collectively referred to as a conversion herein) immediately prior to the Effective Time into (or in exchange for) two separate options, an adjusted KAR Option and a SpinCo Option, as
        set forth below.  Conversion of any KAR Option which constitutes an incentive stock option shall be effected in a manner which complies with the requirements of Section 424 of the Code. The only consideration a holder of a KAR Option will receive
        for the conversion of any KAR Option is the adjusted KAR Option and the SpinCo Option, with the conversion subject to this Section 4.02.

    

    

    (A)            Number of Shares Subject to Options. The number of KAR Shares subject to each of the adjusted KAR Options will be equal to the number of KAR Shares subject to the KAR Option immediately
        prior to the Effective Time.  The number of SpinCo Shares subject to the SpinCo Option will be equal to the number of KAR Shares subject to the KAR Option immediately prior to the Effective Time.

    

    

    (B)            Exercise Price. 

      Unless otherwise determined by the KAR Compensation Committee prior to the Effective Time, the per share exercise price of the adjusted KAR Option shall be equal to the product of (1) the per share exercise price of the KAR Option immediately prior to the Effective Time multiplied by (2) a fraction, the numerator of which
        shall be the Opening KAR Stock Price (as defined below) and the denominator of which shall be the Closing KAR Stock Price (as defined below), which product shall be rounded up to the nearest whole cent.  The per share exercise price of the SpinCo
        Option shall be equal to the product of (1) the per share exercise price of the KAR Option immediately prior to the Effective Time multiplied by (2) a fraction, the numerator of which shall be the Opening SpinCo Stock Price (as defined below) and
        the denominator of which shall be the Closing KAR Stock Price, which product shall be rounded up to the nearest whole cent.  The “Opening KAR Stock Price”
        shall mean the per share closing trading price of KAR Shares, as traded on an ex-distribution basis on the last trading day immediately preceding the Distribution Date.  The “Opening SpinCo Stock Price” shall mean the per share closing “when-issued” trading price of SpinCo Shares on the last trading day immediately preceding the Distribution Date.  The “Closing KAR Stock Price” shall be the per share closing trading price of KAR Shares trading on the “regular way” basis on the last trading day immediately prior to the Distribution Date.

    

    

    (C)            The Parties agree that the conversion of each KAR Option held by a Canadian taxpayer as described in this Section 4.02(a) is intended to occur on a tax-deferred basis under subsection 7(1.4) of the Income Tax Act (Canada) and the Parties shall make such adjustment to the foregoing as is required to qualify for such treatment,
        including, if it is determined in good faith that the aggregate “in the money amount” of any adjusted KAR Option and SpinCo Option immediately after the conversion would otherwise exceed the “in the money amount” of the KAR Option immediately prior
        to the conversion, but only to the extent necessary and in a manner that does not otherwise adversely affect the holder of the KAR Option.

    

    

    (ii)            Option Terms.

    

    

    (A)            Terms and Conditions.  Each adjusted KAR Option shall be subject to the same terms and conditions regarding term, vesting, and other provisions regarding exercise as set forth in the original KAR Option,
        except as set forth below.  Each SpinCo Option issued pursuant to this Section 4.02(a) shall be subject to the same terms and conditions regarding term,
        vesting, and other provisions regarding exercise as set forth in the related KAR Option before the Effective Time, except as set forth below.

    

    

    (B)            Exercise; Withholding.  Upon the exercise of a SpinCo Option,
        whether by a KAR Group Employee or a SpinCo Group Employee, the exercise price shall be paid to (or otherwise satisfied to the satisfaction of) SpinCo in accordance with the terms of the option, and SpinCo shall be solely responsible for the
        issuance of SpinCo Shares in respect of such exercise, for ensuring the withholding of all applicable Employment Tax on behalf of the employing entity of such holder, and for ensuring the remittance of such Employment Taxes to the employing entity
        of such holder.  Upon the exercise of a KAR Option, whether by a KAR Group Employee or a SpinCo Group Employee, the exercise price shall be paid to (or otherwise satisfied to the satisfaction of) KAR in accordance with the terms of the KAR Option,
        and KAR shall be solely responsible for the issuance of KAR Shares, for ensuring the withholding of all applicable Employment Tax on behalf of the employing entity of such holder and for ensuring the remittance of such Employment Taxes to the
        employing entity of such holder.

    
      8

      
        

    

    

    

    (b)            PRSUs.

    

    

    (i)            17/18 KAR PRSU
            Conversion.  Each KAR PRSU granted in 2017 and 2018 (the “17/18 KAR PRSU”) which is outstanding immediately prior to the Effective Time will be converted immediately prior to the Effective Time to a
        time-vested KAR RSU and as of the Effective Time shall be treated in accordance with Section 4.02(c) below.  The number of KAR Shares subject to such KAR
        RSU immediately prior to the Effective Time shall be equal to the target number of KAR Shares underlying the applicable KAR PRSU. Following the Effective Time, the
        KAR RSUs resulting from the conversion of the 17/18 KAR PRSUs shall remain subject to substantially the same terms and conditions as applicable to the 17/18 KAR PRSU prior to the Effective Time; provided, however that from and
        after the Effective Time no further performance-based vesting shall apply and the vesting of such KAR RSU shall be determined based solely upon the holder’s
        continued services with KAR or SpinCo, as applicable, through the end of the applicable performance period.

    

    

    (ii)            19 KAR PRSU
            Conversion.  Each KAR PRSU granted in 2019 which is outstanding immediately prior to the Effective Time will be converted upon the Effective Time into
        two separate performance restricted stock units, an adjusted KAR PRSU (the “19 KAR PRSU”) relating to KAR Shares and an adjusted SpinCo PRSU (the “19 SpinCo PRSU”) relating to SpinCo Shares, as set forth below.

    

    

    (A)            19 KAR PRSU Terms and Conditions.  The number of KAR Shares
        subject to each 19 KAR PRSU will be equal to the number of KAR Shares subject to the KAR PRSU.  The 19 KAR PRSU shall be subject to the same terms and conditions as were applicable to the KAR PRSU immediately prior to the Effective Time, except
        that the performance-based vesting criteria shall be adjusted as determined by the KAR Compensation Committee and shall apply to the 2019 performance year only, with only service-based vesting to be applicable for the remainder of the award term.

    

    

    (B)            19 SpinCo PRSU Terms and Conditions.  The number of SpinCo Shares
        subject to each 19 SpinCo PRSU will be equal to the number of KAR Shares subject to the corresponding 19 KAR PRSU.  Each SpinCo PRSU shall be subject to the same terms and conditions as were applicable to the KAR PRSU immediately prior to the
        Effective Time, except that the performance-based vesting criteria shall be adjusted as determined by the KAR Compensation Committee and shall apply to the 2019 performance year only, with only service-based vesting to be applicable for the
        remainder of the award term.

    

    

    (c)            RSUs.

    

    

    (i)            Conversion. Upon the Effective Time, each holder of a KAR RSU
        which is outstanding immediately prior to the Effective Time (including (1) KAR RSUs resulting from the conversion of 17/18 KAR PRSUs described in Section 4.02(b)(i) hereof and (2) KAR RSUs held pursuant to the KAR Director Plan) will continue to hold such KAR RSU and will, in addition thereto, receive a
        SpinCo RSU with respect to a number of SpinCo Shares equal to the number of KAR Shares subject to the corresponding KAR RSU immediately prior to the Effective Time.

    

    

    (ii)            RSU Terms and Conditions.  Each KAR RSU shall be subject to the
        same terms and conditions as set forth in the original KAR RSU, except as set forth below.  Each SpinCo RSU issued pursuant to this Section 4.02(c) shall be
        subject to the same terms and conditions as set forth in the related KAR RSU before the Effective Time, except as set forth below.

    

    

    (d)            Director Restricted Stock.

    

    

    (i)            Conversion.  Upon the Effective Time, each holder of a KAR
        Restricted Stock Award which is outstanding immediately prior to the Effective Time will continue to hold such KAR Restricted Stock Award and will, in addition
        thereto, receive a SpinCo Restricted Stock Award with respect to a number of SpinCo Shares equal to the number of KAR Shares subject to the corresponding KAR Restricted Stock Award immediately prior to the Effective Time.

    

    

    (ii)            Restricted Stock Terms and Conditions.  Each KAR Restricted Stock
        Award shall be subject to the same terms and conditions as set forth in the original KAR Restricted Stock Award, except as set forth below.  Each SpinCo Restricted Stock Award issued pursuant to this Section 4.02(d) shall be subject to the same terms and conditions as set forth in the related KAR Restricted Stock Award before the Effective Time, except as set forth below.

    
      9

      
        

    

    

    

    (e)            PRSU/RSU/Restricted Stock Delivery; Withholding.  SpinCo shall be solely
        responsible for the issuance of SpinCo Shares in respect of SpinCo RSUs and SpinCo Restricted Stock Awards and SpinCo PRSUs (in each case, regardless of the holder thereof), for ensuring the withholding of all applicable Employment Tax on behalf of
        the employing or service entity of such holder, and for ensuring the remittance of such Employment Taxes (if applicable) to the employing or service entity of such holder.  KAR shall be solely responsible for the issuance of KAR Shares in respect
        of KAR RSUs and KAR Restricted Stock Awards and KAR PRSUs (in each case, regardless of the holder thereof), for ensuring the withholding of all applicable Employment Tax on behalf of the employing or service entity of such holder, and for ensuring
        the remittance of such Employment Taxes (if applicable) to the employing or service entity of such holder.  SpinCo shall be solely responsible for the payment of cash in respect of KAR RSUs, KAR Restricted Stock Awards, KAR PRSUs, SpinCo RSUs,
        SpinCo Restricted Stock Awards, and SpinCo PRSUs held by SpinCo Service Providers, for ensuring the withholding of all applicable Employment Tax, and for ensuring the remittance of such Employment Taxes to the applicable governmental authority. 
        KAR shall be solely responsible for the payment of cash in respect of KAR RSUs, KAR Restricted Stock Awards, KAR PRSUs, SpinCo RSUs, SpinCo Restricted Stock Awards, and SpinCo PRSUs held by KAR Service Providers, for ensuring the withholding of all
        applicable Employment Tax, and for ensuring the remittance of such Employment Taxes to the applicable governmental authority.  Any forfeited SpinCo RSUs, SpinCo Restricted Stock Awards or SpinCo PRSUs will be forfeited to SpinCo and any forfeited
        KAR RSUs, KAR Restricted Stock Awards or KAR PRSUs will be forfeited to KAR (regardless of the employer of the holder thereof).

    

    

    (f)            PRSU/RSU Dividend Equivalents.  Holders of SpinCo RSUs and SpinCo PRSUs
        who have a right to receive dividend equivalents with respect to SpinCo Shares underlying such award, will accrue such dividend equivalents and be paid by SpinCo to holders who are SpinCo Group Employees or KAR Group Employees, in each case on the
        payment date of the related SpinCo RSUs or SpinCo PRSUs (subject to the award vesting on such date); provided, however, that any interest payments that are payable with respect to such dividend equivalents will be sole responsibility of SpinCo for holders who are SpinCo Group Employees and KAR for holders
        who are KAR Group Employees.  Holders of KAR RSUs and KAR PRSUs who have a right to receive dividend equivalents with respect to KAR Shares underlying such award, will accrue such dividend equivalents and be paid by KAR to holders who are SpinCo
        Group Employees or KAR Group Employees, in each case on the payment date of the related KAR RSUs or KAR PRSUs (subject to the award vesting on such date); provided,
        however, that any interest payments that are payable with respect to such dividend equivalents will be sole responsibility of SpinCo for holders who are
        SpinCo Group Employees and KAR for holders who are KAR Group Employees. Notwithstanding the foregoing, if the terms of the applicable awards
        provide that dividend equivalent rights shall increase the amount of shares subject to the award by the fair market value of any dividend, then KAR shall issue such additional shares with respect to KAR RSUs and KAR PRSUs and SpinCo shall issue
        such additional shares with respect to SpinCo RSUs and SpinCo PRSUs, in each case without regard to whether such awards are held by KAR Group Employees or SpinCo Group Employees.

    

    

    (g)            Service.  Notwithstanding the foregoing, KAR will take such action as is
        necessary to ensure that with respect to KAR Awards that are held by SpinCo Service Providers as of and following the Effective Time, such individuals will not incur a termination of employment or service as a result of the Distribution for
        purposes of the KAR Awards.  SpinCo will take such action as is necessary to ensure that with respect to the SpinCo Awards that are held by KAR Service Providers as of and following the Effective Time, such individuals will not incur a termination
        of employment or service as a result of the Distribution for purposes of the SpinCo Awards.  For purposes of the vesting and termination provisions of the KAR Awards and the SpinCo Awards, continued service with a KAR Group member or a SpinCo Group
        member, as the case may be, shall be considered to be continued service for purposes of such award.

    

    

    (h)            Change in Control. 
        Following the Distribution Date, for any award under this Section 4.02, any reference to a “change in control,” “change of control” or similar definition in
        an award agreement, employment agreement or KAR Equity-Based Plans applicable to such award (i) with respect to KAR Awards, shall be deemed to refer to a “change in control,” “change of control” or similar definition as set forth in the applicable
        award agreement, employment agreement or KAR Equity-Based Plans (a “KAR Change of Control”), and (ii) with respect to SpinCo Awards, shall be deemed to refer
        to a “Change in Control” as defined in the SpinCo Long Term Incentive Plan (a “SpinCo Change of Control”).  Without limiting the foregoing, with respect to
        provisions related to vesting of awards, a KAR Change of Control shall be treated as a SpinCo Change of Control for purposes of SpinCo Awards held by KAR Service Providers, and a SpinCo Change of Control shall be treated as a KAR Change of Control
        for purposes of KAR Awards held by SpinCo Service Providers.

    

    

    (i)            Allocation of Tax Deduction.  The Equity Award Deduction in respect of
        equity based awards held by KAR Service Providers (whether with respect to KAR Shares or SpinCo Shares) will be allocated to KAR.  The Equity Award Deduction in respect of equity based awards held by SpinCo Service Providers as a result of the
        operation of this Section 4.02 (whether with respect to KAR Shares or SpinCo Shares) will be allocated to SpinCo.

    

    

    (j)            Partial Interests in Shares.  To the extent that any adjustment described
        in this Section 4.02 results in any fractional interest in shares, such fractional interest shall be rounded down to the nearest whole share.  No fractional
        interests shall be payable in cash or otherwise.

    

    

    (k)            Administration.  Each of KAR and SpinCo shall establish an appropriate
        administration system in order to handle exercises and delivery of shares in an orderly manner and provide reasonable levels of service for equity award holders.

    

    

    (l)            No Effect on Subsequent Awards.  The provisions of this Section 4.02
        shall have no effect on the terms and conditions of equity and equity-based awards granted following the Effective Time by KAR or SpinCo.

    
      10

      
        

    

    

    

    (m)            Employee Stock Purchase Plan.

    

    

    (i)            The administrator of the KAR Group Employee Stock Purchase Plan (the “KAR ESPP”) shall take all actions necessary and appropriate to provide that: (1) the Option Period (as defined in the KAR ESPP) during which the Record Date is to occur shall end at a reasonable time
        before the Record Date to allow participants to purchase KAR Shares under the KAR ESPP prior to the Record Date; (2) all participant payroll deductions and other contributions under the KAR ESPP shall cease on or before the Record Date described in
        clause (1) of this paragraph; (3) SpinCo Group Employees in the KAR ESPP shall not be eligible to participate in any future Option Periods that begin following the Record Date; (4) any cash remaining in the KAR ESPP account of any SpinCo Group
        Employee described in clause (3) shall be refunded to such SpinCo Group Employee without interest as soon as administratively practicable; and (5) the next following Option Period shall be established by the administrator of the KAR ESPP in its
        sole discretion.

    

    

    (ii)            Unless otherwise determined by the SpinCo Board, effective as of or before the Distribution Date, SpinCo shall establish
        the SpinCo Group Employee Stock Purchase Plan, with terms substantially similar to those of the KAR ESPP as of the Distribution Date.

    

    

    (n)            Registration and Other Regulatory
          Requirements.  SpinCo agrees to file applicable registration statements with respect to, and to cause to be registered pursuant to the Securities Act, the SpinCo Shares authorized for issuance under the SpinCo Long Term Incentive Plan, as
        required pursuant to the Securities Act, before the date of issuance of any SpinCo Shares pursuant to the SpinCo Long Term Incentive Plan.  The Parties shall take such additional actions as are deemed necessary or advisable to effectuate the
        foregoing provisions of this Section 4.02(n), including compliance with securities Laws and other legal requirements associated with equity compensation
        awards in affected non-U.S. jurisdictions.

    

    

    Section 4.03            Non-Equity Incentive Plans.

    

    

    (a)            Allocation of Liabilities.  The KAR Group shall be solely responsible
        for funding, paying and discharging all obligations relating to the 2019 annual incentive bonus awards under the applicable KAR Benefit Plans in which short−term incentive compensation is provided with respect to payments earned before, as of or
        after the Effective Time by KAR Group Employees or Former KAR Group Employees, and no member of the SpinCo Group shall have any obligations with respect thereto.  The SpinCo Group shall be solely responsible for funding, paying and discharging all
        obligations relating to the 2019 annual incentive bonus awards under the applicable KAR Benefit Plans in which short−term incentive compensation is provided with respect to payments earned before, as of or after the Effective Time by SpinCo Group
        Employees or Former SpinCo Group Employees, and no member of the KAR Group shall have any obligations with respect thereto.

    

    

    (b)            Transfer of Accruals.  As soon as practicable following the Distribution,
        KAR shall transfer to SpinCo the applicable KAR Benefit Plan accruals in respect of SpinCo Group Employees and Former SpinCo Group Employees for the portion of the 2019 performance period that occurs prior to the Distribution, based on the level of
        accrual as of the Effective Time.

    

    

    Section 4.04            Director

            Compensation.

    

    

    (a)            Establishment of SpinCo Outside
          Directors’ Compensation Plan.  Before the Effective Time, SpinCo shall, as it deems appropriate, establish an outside directors’ compensation program for each SpinCo non−employee director as of the Effective Time who served on the KAR
        Board immediately prior to the Effective Time but who will no longer serve on the KAR Board following the Effective Time (a “Transferred Director”).  As of
        the Effective Time, KAR shall cease to have any Liability to any such Transferred Director under the KAR outside directors’ compensation program.

    

    

    (b)            Other Liabilities.  Except as provided in Section 4.04(a), KAR shall retain all other Liabilities and Assets relating to KAR non-employee director compensation.

    

    

    (c)            Director Compensation.  KAR shall be responsible for the payment of any
        fees for service on the KAR Board that are earned at, before, or after the Effective Time, and SpinCo shall not have any responsibility for any such payments.  With respect to any SpinCo non-employee director, SpinCo shall be responsible for the
        payment of any fees for service on the SpinCo Board that are earned at any time after the Effective Time and KAR shall not have any responsibility for any such payments.  Notwithstanding the foregoing, SpinCo shall commence paying quarterly cash
        retainers to SpinCo non-employee directors in respect of the quarter in which the Effective Time occurs; provided that (i) if KAR has already paid such
        quarter’s cash retainers to KAR non-employee directors prior to the Effective Time, then within 30 days after the Distribution Date, SpinCo will pay KAR an amount equal to the portion of such payment that is attributable to Transferred Directors’
        service to SpinCo after the Distribution Date, and (ii) if KAR has not yet paid such quarter’s cash retainers to KAR non-employee directors prior to the Effective Time, then within 30 days after the Distribution Date, KAR will pay SpinCo an amount
        equal to the portion of such payment that is attributable to Transferred Directors’ service to KAR on and prior to the Distribution Date.  KAR Awards held by non-employee directors as of immediately prior to the Effective Time shall be treated as
        described in Section 4.02.

    
      11

      
        

    

    

    

    ARTICLE V

    

    

    U.S. QUALIFIED
            RETIREMENT PLANS

    

    

    Section 5.01            SpinCo U.S. Savings Plan.

    

    

    (a)            Establishment of Plan.  Before the Effective Time, SpinCo shall provide
        KAR with (i) a copy of the SpinCo Savings Plan and (ii) a copy of certified resolutions of the SpinCo Board (or its authorized committee or other delegate) evidencing adoption of the SpinCo Savings Plan and the related trust(s) and the assumption
        by the SpinCo Savings Plan of the liabilities described in Section 5.01(b).

    

    

    (b)            Transfer of Account Balances. 

        Not later than 30 days following the Distribution Date (or such later time as mutually agreed by the Parties), KAR shall cause the trustee of the KAR Savings Plan to transfer from the trust(s) which forms a part of the KAR Savings Plan to the
        trust(s) which forms a part of the SpinCo Savings Plan the account balances of the SpinCo Group Employees and Former SpinCo Group Employees under the KAR Savings Plan, determined as of the date of the transfer. Such transfers shall be made in kind,
        including promissory notes evidencing the transfer of outstanding loans.  Any asset and liability transfers pursuant to this Section 5.01(b) shall comply in
        all respects with Sections 414(l) and 411(d)(6) of the Code.

    

    

    (c)            SpinCo Savings Plan Provisions.  The SpinCo Savings Plan shall provide
        that:

    

    

    (i)            SpinCo Group Employees and Former SpinCo Group Employees shall (A) be eligible to participate in the SpinCo Savings Plan as of the Effective Time to the extent that they were
        eligible to participate in the KAR Savings Plan as of immediately prior to the Effective Time, and (B) receive credit for purposes of eligibility and vesting for all service credited for those purposes under the KAR Savings Plan as of immediately
        prior to the Distribution Date as if that service had been rendered to SpinCo; and

    

    

    (ii)            the account balance of each SpinCo Group Employee and Former SpinCo Group Employee under the KAR Savings Plan as of the date of the transfer of assets from the KAR Savings Plan
        (including any outstanding promissory notes) shall be credited to such individual’s account balance under the SpinCo Savings Plan.

    

    

    (d)            KAR Savings Plan after Effective Time.  From and after the Effective
        Time, (i) the KAR Savings Plan shall continue to be responsible for liabilities in respect of KAR Group Employees and Former KAR Group Employees, and (ii) no SpinCo Group Employees or Former SpinCo Group Employees shall accrue any benefits under
        the KAR Savings Plan.  Without limiting the generality of the foregoing, SpinCo Group Employees and Former SpinCo Group Employees shall cease to be participants in the KAR Savings Plan effective as of the Effective Time.

    

    

    (e)            Plan Fiduciaries.  For all periods after the Effective Time, the Parties
        agree that the applicable fiduciaries of each of the KAR Savings Plan and the SpinCo Savings Plan, respectively, shall have the authority with respect to the KAR Savings Plan and the SpinCo Savings Plan, respectively, to determine the investment
        alternatives, the terms and conditions with respect to those investment alternatives and such other matters as are within the scope of their duties under ERISA and the terms of the applicable plan documents.

    

    

    (f)            No Loss of Unvested Benefits; No Distributions.  The transfer of any
        SpinCo Group Employee’s employment to the SpinCo Group will not result in loss of that SpinCo Group Employee’s unvested benefits (if any) under the KAR Savings Plan, which benefit liability will be assumed under the SpinCo Savings Plan as provided
        herein.  No SpinCo Group Employee shall be entitled to a distribution of his or her benefit under the KAR Savings Plan or SpinCo Savings Plan as a result of such transfer of employment.

    
      12

      
        

    

    

    

    ARTICLE VI

    

    

    DIRECTOR

            DEFERRED COMPENSATION PLAN

    

    

    Section 6.01            KAR. As of the Effective Time, KAR shall retain, and remain the
        sponsor of, the KAR Directors Deferred Compensation Plan (the “KAR Director Plan”).

    

    

    Section 6.02
                               SpinCo.

    

    

    (a)            As of the Effective Time, SpinCo shall adopt a new nonqualified deferred compensation plan (the “SpinCo Director Plan”). All Transferred Directors who participated in the KAR Director Plan immediately prior to the Effective Time shall be eligible to participate in the SpinCo
        Director Plan to the same extent that such Transferred Director participated in the KAR Director Plan prior to the Effective Time (the “Covered Participants”).

        The SpinCo Director Plan shall assume the obligations of the KAR Director Plan with respect to the Covered Participants whether such benefits accrued before, on or after the Effective Time.

    

    

    (b)            Transfer of  Liabilities. KAR shall cause the actuary of the KAR Director
        Plan to determine the proportional share of Liabilities relating to the Covered Participants to be transferred to the SpinCo Director Plan, respectively.

    

    

    (c)            Identified Errors. If any error with respect to a transfer of Liabilities
        required under this Section 6.02 is identified after the date on which the transfer was to occur, the Parties shall cooperate to effect the transfer as of
        the date when the transfer was to occur.

    

    

    (d)            Obligations and Liabilities.

    

    

    (i)            At and after the Effective Time, SpinCo shall be solely and exclusively responsible for all obligations and Liabilities with respect to, or in any way related to, the SpinCo
        Director Plan, whether accrued before, at or after the Effective Time.

    

    

    (ii)            At and after the Effective Time, KAR shall be solely and exclusively responsible for all obligations and Liabilities in respect of participants who are not Covered Participants
        with respect to, or in any way related to, the KAR Director Plan, whether accrued before, at or after the Effective Time.

    
      13

      
        

    

    

    

    ARTICLE VII

    

    

    WELFARE BENEFIT PLANS

    

    

    Section 7.01            Welfare

            Plans.

    

    

    (a)            Waiver of Conditions; Benefit Maximums.  SpinCo shall use commercially
        reasonable efforts to cause the SpinCo Welfare Plans to:

    

    

    (i)            with respect to initial enrollment as of the Effective Time, waive (A) all limitations as to preexisting conditions, exclusions, and service conditions with respect to
        participation and coverage requirements applicable to any SpinCo Group Employee or Former SpinCo Group Employee, other than limitations that were in effect with respect to the SpinCo Group Employee or Former SpinCo Group Employee under the
        applicable KAR Welfare Plan as of immediately prior to the Effective Time, and (B) any waiting period limitation or evidence of insurability requirement applicable to a SpinCo Group Employee or Former SpinCo Group Employee other than limitations or
        requirements that were in effect with respect to such SpinCo Group Employee or Former SpinCo Group Employee under the applicable KAR Welfare Plans as of immediately prior to the Effective Time; and

    

    

    (ii)            take into account (A) with respect to aggregate annual, lifetime, or similar maximum benefits available under the SpinCo Welfare Plans, a SpinCo Group Employee’s or Former
        SpinCo Group Employee’s prior claim experience under the KAR Welfare Plans and any Benefit Plan that provides leave benefits; and (B) any eligible expenses incurred by a SpinCo Group Employee or Former SpinCo Group Employee and his or her covered
        dependents during the portion of the plan year of the applicable KAR Welfare Plan ending as of the Effective Time to be taken into account under such SpinCo Welfare Plan for purposes of satisfying all deductible, coinsurance, and maximum
        out-of-pocket requirements applicable to such SpinCo Group Employee or Former SpinCo Group Employee and his or her covered dependents for the applicable plan year to the same extent as such expenses were taken into account by KAR for similar
        purposes prior to the Effective Time as if such amounts had been paid in accordance with such SpinCo Welfare Plan.

    

    

    (b)            U.S. Health Savings Accounts. 

        Prior to January 1, 2020, SpinCo shall, or shall cause a member of the SpinCo Group to, establish a SpinCo Welfare Plan that will provide health savings account benefits to SpinCo Group Employees on and after January 1, 2020.

    

    

    (c)            U.S. Flexible Spending Accounts.
        Prior to January 1, 2020, SpinCo shall, or shall cause a member of the SpinCo Group to, establish a SpinCo Welfare Plan that will provide health or dependent care flexible spending account benefits to SpinCo Group Employees on and after January 1,
        2020.

    

    

    (d)            Allocation of Welfare Assets and Liabilities.  Effective as of the
        Effective Time, the SpinCo Group shall assume all Liabilities relating to, arising out of or resulting from health and welfare coverage or claims incurred by or on behalf of SpinCo Group Employees or Former SpinCo Group Employees or their covered
        dependents under the KAR Welfare Plans or SpinCo Welfare Plans before, at, or after the Effective Time. No KAR Welfare Plan shall provide coverage to any SpinCo Group Employee or Former SpinCo Group Employee after the Effective Time, except as may
        be agreed between the Parties to address Employees who are on approved leaves of absence immediately prior to the Effective Time.

    

    

    Section 7.02            U.S.

            COBRA and HIPAA.  The KAR Group shall continue to be responsible for complying with, and providing coverage pursuant to, the health care continuation requirements of COBRA, the certificate of creditable coverage requirements of
        HIPAA, and the corresponding provisions of the KAR Welfare Plans with respect to any KAR Group Employees and any Former KAR Group Employees (and their covered dependents) who incur a qualifying event under COBRA before, as of, or after the
        Effective Time.  Effective as of the Effective Time, the SpinCo Group shall assume responsibility for complying with, and providing coverage pursuant to, the health care continuation requirements of COBRA, the certificate of creditable coverage
        requirements of HIPAA, and the corresponding provisions of the SpinCo Welfare Plans with respect to any SpinCo Group Employees or Former SpinCo Group Employees (and their covered dependents) who incur a qualifying event or loss of coverage under
        the KAR Welfare Plans and/or the SpinCo Welfare Plans before, as of, or after the Effective Time.  The Parties agree that the consummation of the transactions contemplated by the Separation and Distribution Agreement shall not constitute a COBRA
        qualifying event for any purpose of COBRA.

    
      14

      
        

    

    

    

    Section 7.03            Vacation,

            Holidays and Leaves of Absence.  Effective as of the Effective Time, the SpinCo Group shall assume all Liabilities of the KAR Group with respect to vacation, holiday, annual leave or other leave of absence, and required payments
        related thereto, for each SpinCo Group Employee. The KAR Group shall retain all Liabilities with respect to vacation, holiday, annual leave or other leave of absence, and required payments related thereto, for each KAR Group Employee.

    

    

    Section 7.04            Severance and Unemployment Compensation.  Effective as of the
        Effective Time, the SpinCo Group shall assume any and all Liabilities to, or relating to, SpinCo Group Employees and Former SpinCo Group Employees in respect of severance and unemployment compensation, regardless of whether the event giving rise to
        the Liability occurred before, at or after the Effective Time.  The KAR Group shall be responsible for any and all Liabilities to, or relating to, KAR Group Employees and Former KAR Group Employees in respect of severance and unemployment
        compensation, regardless of whether the event giving rise to the Liability occurred before, at or after the Effective Time.

    

    

    Section 7.05            Workers’ Compensation.  With respect to claims for workers’
        compensation, (a) the SpinCo Group shall be responsible for all claims and Liabilities in respect of SpinCo Group Employees and Former SpinCo Group Employees, whether occurring before, at or after the Effective Time and the SpinCo Group shall be
        fully responsible for the administration, management and payment of all such claims and for the satisfaction of all such Liabilities, and (b) the KAR Group shall be responsible for all claims and Liabilities in respect of KAR Group Employees and
        Former KAR Group Employees, whether occurring before, at or after the Effective Time and the KAR Group shall be fully responsible for the administration, management and payment of all such claims and for the satisfaction of all such Liabilities. 
        Notwithstanding the foregoing, if the SpinCo Group is unable to assume any such Liability or the administration, management or payment of any such claim solely because of the operation of applicable Law, the KAR Group shall retain such Liabilities
        and the SpinCo Group shall reimburse and otherwise fully indemnify the KAR Group for all such Liabilities, including the costs of administering the plans, programs or arrangements under which any such Liabilities have accrued or otherwise arisen.

    

    

    Section 7.06            Insurance

            Contracts.  To the extent that any KAR Welfare Plan is funded through the purchase of an insurance contract or is subject to any stop loss contract, the Parties will cooperate and use their commercially reasonable efforts to
        replicate such insurance contracts for SpinCo (except to the extent that changes are required under applicable state insurance Laws or filings by the respective insurers) and to maintain any pricing discounts or other preferential terms for both
        KAR and SpinCo for a reasonable term.  Neither Party shall be liable for failure to obtain such insurance contracts, pricing discounts, or other preferential terms for the other Party.  Each Party shall be responsible for any additional premiums,
        charges, or administrative fees that such Party may incur pursuant to this Section 7.06.

    

    

    Section 7.07            Third-Party

            Vendors.  To the extent that any KAR Welfare Plan is administered by a third-party vendor, the Parties will cooperate and use their commercially reasonable efforts to replicate any contract with such third-party vendor for SpinCo and
        to maintain any pricing discounts or other preferential terms for both KAR and SpinCo for a reasonable term. Neither Party shall be liable for failure to obtain such pricing discounts or other preferential terms for the other Party. Each Party
        shall be responsible for any additional premiums, charges, or administrative fees that such Party may incur pursuant to this Section 7.07.

    

    

    Section 7.08            SpinCo

            Retained Welfare Plans.  As of the Effective Time, the SpinCo Group shall retain sponsorship of the Welfare Plans listed on Schedule 7.08
        (the “SpinCo Retained Welfare Plans”), and, from and after the Effective Time, all Liabilities under the SpinCo Retained Welfare Plans shall be Liabilities
        of the SpinCo Group.

    
      15

      
        

    

    

    

    ARTICLE VIII

    

    

    NON-U.S. EMPLOYEES

    

    

    Section 8.01            General.
        Notwithstanding anything in this Agreement to the contrary, all actions taken with respect to non-U.S. Employees or U.S. Employees working in non-U.S. jurisdictions shall be subject to and accomplished in accordance with applicable Law in the
        custom of the applicable jurisdictions.

    

    

    ARTICLE IX

    

    

    MISCELLANEOUS

    

    

    Section 9.01            Employee Records.

    

    

    (a)            Sharing of Information.  Subject to any limitations imposed by applicable
        Law, KAR and SpinCo (acting directly or through members of the KAR Group or the SpinCo Group, respectively) shall provide to the other and their respective authorized agents and vendors all information necessary for the Parties to perform their
        respective duties under this Agreement.

    

    

    (b)            Transfer of Personnel Records and Authorization.  Subject to any
        limitation imposed by applicable Law and to the extent that it has not done so before the Effective Time, KAR shall transfer to SpinCo any and all employment records (including any Form I-9, Form W-2 or other IRS forms) with respect to SpinCo Group
        Employees and Former SpinCo Group Employees and other records reasonably required by SpinCo to enable SpinCo properly to carry out its obligations under this Agreement.  Such transfer of records generally shall occur as soon as administratively
        practicable at or after the Effective Time.  Each Party will permit the other Party reasonable access to Employee records, to the extent reasonably necessary for such accessing Party to carry out its obligations hereunder.

    

    

    (c)            Access to Records.  To the
        extent not inconsistent with this Agreement, the Separation and Distribution Agreement or any applicable privacy protection Laws or regulations, reasonable access to Employee-related records after the Effective Time will be provided to members of
        the KAR Group and members of the SpinCo Group pursuant to the terms and conditions of Article VI of the Separation and Distribution Agreement.

    

    

    (d)            Maintenance of Records.  With respect to retaining, destroying,
        transferring, sharing, copying and permitting access to all Employee-related information, KAR and SpinCo shall comply with all applicable Laws, regulations and internal policies, and shall indemnify and hold harmless each other from and against any
        and all Liability, claims, actions, and damages that arise from a failure (by the indemnifying Party or its Subsidiaries or their respective agents) to so comply with all applicable Laws, regulations and internal policies applicable to such
        information.

    

    

    (e)            Cooperation.  Each Party shall use commercially reasonable efforts to
        cooperate and work together to unify, consolidate and share (to the extent permissible under applicable privacy/data protection laws) all relevant documents, resolutions, government filings, data, payroll, employment and benefit plan information on
        regular timetables and cooperate as needed with respect to (i) any litigation with respect to any employee benefit plan, policy or arrangement contemplated by this Agreement (except to the extent such other Party is an opposing party in such
        litigation), (ii) efforts to seek a determination letter, private letter ruling or advisory opinion from the IRS or U.S. Department of Labor or any other Governmental Authority on behalf of any employee benefit plan, policy or arrangement
        contemplated by this Agreement, and (iii) any filings that are required to be made or supplemented to the IRS, U.S. Pension Benefit Guaranty Corporation, U.S. Department of Labor or any other Governmental Authority; provided, however, that requests for cooperation must be reasonable and not interfere with
        daily business operations.

    

    

    (f)            Confidentiality.  Notwithstanding anything in this Agreement to the
        contrary, all confidential records and data relating to Employees to be shared or transferred pursuant to this Agreement shall be subject to Section 6.9 of the Separation and Distribution Agreement and the requirements of applicable Law.

    

    

    Section 9.02            Preservation

            of Rights to Amend.  The rights of each member of the KAR Group and each member of the SpinCo Group to amend, waive, or terminate any plan, arrangement, agreement, program, or policy referred to herein shall not be limited in any way
        by this Agreement.

    
      16

      
        

    

    

    

    Section 9.03            Fiduciary Matters.  KAR and SpinCo each acknowledges that actions
        required to be taken pursuant to this Agreement may be subject to fiduciary duties or standards of conduct under ERISA or other applicable Law, and no Party shall be deemed to be in violation of this Agreement if it fails to comply with any
        provisions hereof based upon its good-faith determination (as supported by advice from counsel experienced in such matters) that to do so would violate such a fiduciary duty or standard.  Each Party shall be responsible for taking such actions as
        are deemed necessary and appropriate to comply with its own fiduciary responsibilities and shall fully release and indemnify the other Party for any Liabilities caused by the failure to satisfy any such responsibility.

    

    

    Section 9.04            Further

            Assurances.  Each Party hereto shall take, or cause to be taken, any and all reasonable actions, including the execution, acknowledgment, filing and delivery of any and all documents and instruments that any other Party hereto may
        reasonably request in order to effect the intent and purpose of this Agreement and the transactions contemplated hereby.

    

    

    Section 9.05            Counterparts; Entire Agreement; Corporate Power.

    

    

    (a)            This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement, and shall become effective when one or more counterparts
        have been signed by each of the Parties and delivered to the other Party.

    

    

    (b)            This Agreement and the Schedules and appendices hereto contain the entire agreement between the Parties with respect to the subject matter hereof, supersede all previous
        agreements, negotiations, discussions, writings, understandings, commitments and conversations with respect to such subject matter, and there are no agreements or understandings between the Parties other than those set forth or referred to herein
        or therein.

    

    

    (c)            KAR represents on behalf of itself and, to the extent applicable, each of its Subsidiaries, and SpinCo represents on behalf of itself and, to the extent applicable, each of its
        Subsidiaries, as follows:

    

    

    (i)            each such Person has the requisite corporate or other power and authority and has taken all corporate or other action necessary in order to execute, deliver and perform this
        Agreement and to consummate the transactions contemplated hereby; and

    

    

    (ii)            this Agreement has been duly executed and delivered by it and constitutes a valid and binding agreement of it enforceable in accordance with the terms hereof.

    

    

    (d)            Each Party acknowledges that it and each other Party is executing this Agreement by facsimile, stamp or mechanical signature, and that delivery of an executed counterpart of a
        signature page to this Agreement (whether executed by manual, stamp or mechanical signature) by facsimile or by email in portable document format (PDF) shall be effective as delivery of such executed counterpart of this Agreement.  Each Party
        expressly adopts and confirms each such facsimile, stamp or mechanical signature (regardless of whether delivered in person, by mail, by courier, by facsimile or by email in portable document format (PDF)) made in its respective name as if it were
        a manual signature delivered in person, agrees that it will not assert that any such signature or delivery is not adequate to bind such Party to the same extent as if it were signed manually and delivered in person and agrees that, at the
        reasonable request of the other Party at any time, it will as promptly as reasonably practicable cause this Agreement to be manually executed (any such execution to be as of the date of the initial date thereof) and delivered in person, by mail or
        by courier.

    

    

    Section 9.06            Governing

            Law.  This Agreement (and any claims or disputes arising out of or related hereto or to the transactions contemplated hereby or to the inducement of any Party to enter herein, whether for breach of contract, tortious conduct or
        otherwise and whether predicated on common law, statute or otherwise) shall be governed by and construed and interpreted in accordance with the Laws of the State of Delaware, irrespective of the choice of Laws principles of the State of Delaware,
        including all matters of validity, construction, effect, enforceability, performance and remedies.

    

    

    Section 9.07            Assignability. 

        The assignability provisions set forth in Section 10.3 of the Separation and Distribution Agreement shall apply to this Agreement.

    
      17

      
        

    

    

    

    Section 9.08            Third-Party

            Beneficiaries.  The provisions of this Agreement are solely for the benefit of the Parties and are not intended to confer upon any other Person except the Parties any rights or remedies hereunder.  There are no other third-party
        beneficiaries of this Agreement and this Agreement shall not provide any third party with any remedy, claim, Liability, reimbursement, claim of action or other right in excess of those existing without reference to this Agreement.  Nothing in this
        Agreement is intended to amend any employee benefit plan or affect KAR’s, SpinCo’s or the applicable plan sponsor’s right to amend or terminate any employee benefit plan pursuant to the terms of such plan.  The provisions of this Agreement are
        solely for the benefit of the Parties, and no Employee or Former Employee, officer, director, or independent contractor or any other individual associated therewith shall be regarded for any purpose as a third-party beneficiary of this Agreement.

    

    

    Section 9.09            Notices.  All notices, requests, claims, demands or other
        communications under this Agreement shall be in writing and shall be given or made (and shall be deemed to have been duly given or made upon receipt) by delivery in person, by electronic mail (for which a confirmation email is obtained), or sent by
        overnight courier (providing proof of delivery) to the respective Parties at the following addresses (or at such other address for a Party as shall be specified in a notice given in accordance with this Section 9.09):

    

    

    
      	 	
              If to KAR, to:

            	 
	 	 	 	 
	 	 	
              KAR Auction Services, Inc.

            
	 	 	
              13085 Hamilton Crossing Boulevard

            
	 	 	
              Carmel, Indiana 46032

            
	 	 	
              Email:

            	 [                                              ]

            
	 	 	
              Attention:

            	 [                                              ] 
	 	 	 
	 	
              with a copy (prior to the Effective Time) to:

            
	 	 	 
	 	 	 [                                              ] 
	 	 	 [                                              ] 
	 	 	[                                              ]
	 	 	
              Email:

            	 [                                              ] 
	 	 	 	 [                                              ] 
	 	 	 	 [                                              ] 
	 	 	
              Attention:

            	 [                                              ] 
	 	 	 	 [                                              ] 
	 	 	 	 [                                              ] 
	 	 	 
	 	
              If to SpinCo, to:

            
	 	 	 
	 	 	 IAA Spinco Inc.

            
	 	 	 [                                              ] 
	 	 	
              [                                              ]

                

            
	 	 	
              Email:

            	 [                                              ] 
	 	 	 	 [                                              ] 
	 	 	
              Attention:

            	
              [                                              ]

                

            
	 	 	 	
              [                                              ]

            
	 	 	 
	 	
              with a copy (prior to the Effective Time) to:

            
	 	 	 
	 	 	 [                                              ] 
	 	 	 [                                              ] 
	 	 	 [                                              ] 
	 	 	
              Email:

            	 [                                              ] 
	 	 	 	
              [                                              ]

            
	 	 	 	
              [                                              ]

            
	 	 	
              Attention:

            	
              [                                              ]

            
	 	 	 	
              [                                              ]

            
	 	 	 	
              [                                              ]

            

    

    

    Any Party may, by notice to the other Party, change the address to which such notices are to be given.

    

    

    Section 9.10            Severability. 

        If any provision of this Agreement or the application thereof to any Person or circumstance is determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof, or the application of any such
        provision to Persons or circumstances or in jurisdictions other than those as to which it has been held invalid or unenforceable, shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby.  Upon such
        determination, the Parties shall negotiate in good faith in an effort to agree upon such a suitable and equitable provision to effect the original intent of the Parties.

    
      18

      
        

    

    

    

    Section 9.11            Force Majeure.  The Force Majeure provision set forth in Section
        10.7 of the Separation and Distribution Agreement shall apply to this Agreement.

    

    

    Section 9.12            Headings.  The article, section and paragraph headings contained
        in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

    

    

    Section 9.13            Survival

            of Covenants.  Except as expressly set forth in this Agreement, the covenants, representations and warranties and other agreements contained in this Agreement, and Liability for the breach of any obligations contained herein, shall
        survive the Separation and the Distribution and shall remain in full force and effect thereafter.

    

    

    Section 9.14            Waivers of Default.  Waiver by any Party of any default by the
        other Party of any provision of this Agreement shall not be deemed a waiver by the waiving Party of any subsequent or other default, nor shall it prejudice the rights of the waiving Party. No failure or delay by any Party in exercising any right,
        power or privilege under this Agreement shall operate as a waiver thereof, nor shall a single or partial exercise thereof prejudice any other or further exercise thereof or the exercise of any other right, power or privilege.

    

    

    Section 9.15            Dispute

            Resolution.  The dispute resolution procedures set forth in Article VII of the Separation and Distribution Agreement shall apply to any dispute, controversy or claim arising out of or relating to this Agreement.

    

    

    Section 9.16            Specific Performance.  Subject to Article VII of the Separation
        and Distribution Agreement, in the event of any actual or threatened default in, or breach of, any of the terms, conditions and provisions of this Agreement, the Party or Parties who are, or are to be, thereby aggrieved shall have the right to
        specific performance and injunctive or other equitable relief (on an interim or permanent basis) in respect of its rights or their rights under this Agreement, in addition to any and all other rights and remedies at Law or in equity, and all such
        rights and remedies shall be cumulative.  The Parties agree that the remedies at law for any breach or threatened breach, including monetary damages, may be inadequate compensation for any loss and that any defense in any Action for specific
        performance that a remedy at law would be adequate is waived.  Any requirements for the securing or posting of any bond with such remedy are hereby waived by each of the Parties.

    

    

    Section 9.17            Amendments. 

        No provisions of this Agreement shall be deemed waived, amended, supplemented or modified by a Party, unless such waiver, amendment, supplement or modification is in writing and signed by the authorized representative of the Party against whom it
        is sought to enforce such waiver, amendment, supplement or modification.

    

    

    Section 9.18            Interpretation.  In this Agreement, (a) words in the singular
        shall be deemed to include the plural and vice versa and words of one gender shall be deemed to include the other genders as the context requires; (b) the terms “hereof,” “herein,” and “herewith” and words of similar import shall, unless otherwise
        stated, be construed to refer to this Agreement as a whole (including all of the Schedules hereto and thereto) and not to any particular provision of this Agreement; (c) Article, Section and Schedule references are to the Articles, Sections and
        Schedules to this Agreement unless otherwise specified; (d) unless otherwise stated, all references to any agreement shall be deemed to include the exhibits, schedules and annexes to such agreement; (e) the word “including” and words of similar
        import when used in this Agreement shall mean “including, without limitation,” unless otherwise specified; (f) the word “or” shall not be exclusive; (g) unless otherwise specified in a particular case, the word “days” refers to calendar days; (h)
        references to “business day” shall mean any day other than a Saturday, a Sunday or a day on which banking institutions are generally authorized or required by law to close in the United States or New York, New York; (i) references herein to this
        Agreement or any other agreement contemplated herein shall be deemed to refer to this Agreement or such other agreement as of the date on which it is executed and as it may be amended, modified or supplemented thereafter, unless otherwise
        specified; and (j) unless expressly stated to the contrary in this Agreement, all references to “the date hereof,” “the date of this Agreement,” “hereby” and “hereupon” and words of similar import shall all be references to [●].

    

    

    Section 9.19            Limitations

            of Liability.  Notwithstanding anything in this Agreement to the contrary, neither SpinCo or any member of the SpinCo Group, on the one hand, nor KAR or any member of the KAR Group, on the other hand, shall be liable under this
        Agreement to the other for any indirect, punitive, exemplary, remote, speculative or similar damages in excess of compensatory damages of the other arising in connection with the transactions contemplated hereby (other than any such Liability with
        respect to a Third-Party Claim).

    

    

    Section 9.20            Mutual Drafting.  This Agreement shall be deemed to be the joint
        work product of the Parties and any rule of construction that a document shall be interpreted or construed against a drafter of such document shall not be applicable to this Agreement.

    

    

    [Remainder of page
          intentionally left blank]

    
      19

      
        

    

    

    

    IN WITNESS WHEREOF, the Parties have caused this Employee Matters Agreement to be executed by their duly
        authorized representatives.

    

    

    	 	
            KAR AUCTION SERVICES, INC.

          
	 	 	 	 
	 	
            By:

          	

          
	 	 	
            Name:

          	 
	 	 	
            Title:

          	

          
	 	 	 	 
	 	
            IAA SPINCO INC. 

            

            
	 	
            By:

          	  
	 	 	
            Name:

          	 
	 	 	
            Title:exhibit102

                                                                                        EXHIBIT 10.2                                             SUPPLEMENTAL                                     PENSION AND RETIREMENT PLAN                                                     OF                                   BENEFICIAL MUTUAL SAVINGS BANK                                       AS AMENDED AND RESTATED                                       EFFECTIVE JANUARY 1, 2009                                                 ARTICLE I                                             PURPOSE CLAUSE                 This Plan was established solely for the purpose of providing benefits to certain employees of Beneficial  Mutual Savings Bank which would have been payable to such employees under the Employees’ Pension and Retirement Plan  of Beneficial Mutual Savings Bank but for the limitations placed on the amount of such benefits by Sections 401(a)(17) and  415 of the Code. The Plan is intended to constitute an unfunded plan primarily for the purpose of providing deferred  compensation for a select group of management or highly compensated employees. This Plan is amended and restated,  effective as of January 1, 2009, to conform to the requirements of Section 409A of the Code and the regulations issued  thereunder.                                                 ARTICLE II                                                DEFINITIONS                 2.1. “Actuarially Equivalent” shall mean equality in value of the aggregate amounts expected to be received  under different benefit forms, or the same form commencing at different points of time, as determined using the actuarial  equivalent assumptions set forth in the Pension Plan.                 2.2. “Administrator” shall mean the Bank.                 2.3. “Bank” shall mean Beneficial Mutual Savings Bank, and any successor or successors thereof.                 2.4. “Code” shall mean the Internal Revenue Code of 1986, as from time to time amended.                 2.5. “Effective Date” shall mean July 1, 1991. The Effective Date of this amended and restated Plan is  January 1, 2009.                 2.6. “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as from time to time  amended.                 2.7. ‘‘Limitations” means the limitations set forth in Sections 401(a)(17) and 415 of the Code, as  implemented by the terms of the Pension Plan.                 2.8. “Participant” shall mean any President or Vice President of the Bank who is employed by the Bank on  or after the Effective Date.                 2.9. “Pension Plan” shall mean the Employees’ Pension and Retirement Plan of Beneficial Mutual Savings  Bank, as from time to time amended.                 2.10. “Plan” shall mean this Supplemental Pension and Retirement Plan of Beneficial Mutual Savings  Bank, as from time to time amended.                 2.11. “Post-409A Benefits” shall mean the amount deferred by a Participant under the Plan after December  31, 2004, as determined in accordance with Section 409A of the Code and the regulations and other guidance issued  thereunder.                 2.12. “Pre-409A Benefits” shall mean the amount deferred by a Participant under the Plan before January 1,  2005, including earnings thereon, to the extent that the Participant’s right to such amount was earned and vested as of  December 31, 2004. The amount deferred by a Participant prior to January 1, 2005, equals the present value as of December  31, 2004 of the amount to which the Participant would be entitled under the Plan if the Participant voluntarily terminated  service without cause on December 31, 2004, and received a full payment of benefits from the Plan on the earliest possible  date allowed under the Plan following termination of service and received benefits in the form with the maximum value. A  Participant’s Pre-409A Benefits will be determined in accordance with the regulations and other guidance issued under  Section 409A of the Code by the Internal Revenue Service.                 2.13. “Separation from Service” or “Separates from Service” shall mean the severance of a Participant’s  employment with the Bank as determined in accordance with Section 409A of the Code.                 2.14. “Specified Employee” shall mean a Participant who as of the date of his Separation from Service is a  key employee (as defined in Section 416(i) of the Code without regard to paragraph (5) thereof) of the Bank or of any entity  that is treated as a single employer with the Bank under Sections 414(b),(c), (m) or (o) of the Code, but only if the Bank or  any such entity is a corporation whose stock is publicly-traded on an established securities market or otherwise.                                                 ARTICLE III                                                 BENEFITS                 3.1. (a) A Participant who terminates employment with the Bank and is eligible to receive benefits under  the Pension Plan immediately upon such termination shall receive benefits under this Plan equal to the excess, if any, of (i)  the benefits which would have been payable to the Participant commencing on the first day of the month coincident with or  

 

next following the attainment of at age 65 under the Pension Plan in the form of a single life annuity but for the Limitations  based on the Participant’s compensation and service with the Bank through June 30, 2008, over (ii) the accrued benefits  actually payable under the Pension Plan commencing on the first day of the month coincident with or next following the  attainment of age 65 in the form of a single life annuity. Benefits shall commence to be paid to the Participant in accordance  with Section 3.4, below.                        (b) The Participant may elect to receive pursuant to Section 3.2, below, the benefits payable under  this Section 3.1 in any one of the Actuarially Equivalent forms of benefits available under the Pension Plan.                 3.2. (a) If the Participant so elects, the benefits payable under this Plan may be paid in one of the optional  forms of payment available under the Pension Plan other than the normal form of payment applicable to the Participant’s  benefits under the Pension Plan. If the Participant elects to receive benefits in one of the optional forms such benefits will be  adjusted using the same actuarial assumptions that are used to calculate optional forms of benefits (other than lump sums)  under the Pension Plan.                        (b) Any election under this Section 3.2 shall be in writing, in such form as the Administrator may  require, and shall be effective only if submitted to the Administrator before the date on which the payment of benefits under  the Pension Plan is scheduled to commence. If the form of benefit elected under this Section 3.2 is a joint and survivor  annuity, the Participant’s election shall not be effective unless it identifies the beneficiary who shall receive the survivor’s  annuity.                 3.3. (a) In the event of the death of a Participant prior to the commencement of benefits under the Pension  Plan, and if the Participant’s surviving spouse or other beneficiary is entitled to receive a survivor’s benefit under the Pension  Plan as a consequence thereof, the surviving spouse, or such other beneficiary, shall receive benefits equal to the excess, if  any, of (i) the survivor’s benefits which would have been payable to the surviving spouse, or such other beneficiary, under  the Pension Plan based upon the Participant’s compensation and service with the Bank through June 30, 2008 and the  benefits that would have been payable to the Participant commencing on the first day of the month coincident with or next  following the attainment of age 65 in the form of a single life annuity but for the Limitations, over (ii) the survivor’s benefits  actually payable to the surviving spouse or such other beneficiary under the Pension Plan based upon the Participant’s  accrued benefits as of June 30, 2008, payable on the first day of the month coincident with or next following the attainment  of age 65 in the form of a single life annuity.                        (b) The benefit payable under this Section 3.3 shall be payable in the same form as the survivor  benefit that is payable under the Pension Plan.                 3.4. Commencement of Benefits. Except otherwise elected by the Participant in accordance with Section  3.5, below, benefits payable under this Article 3 shall commence as soon as practicable following the date of the Participant’s  Separation from Service but not later than the last day of the taxable year of the Participant in which such Separation from  Service occurs, or if later, by the 15th day of the third calendar month following the date of the Participant’s Separation from  Service. In no event shall the Participant be permitted, directly or indirectly, to designate the taxable year of the  commencement of benefits. If the Participant is a Specified Employee as of the date of the Participant’s Separation from  Service, payments of the Participant’s Post-409A Benefits shall be delayed until the date that is six months following the date  of the Participant’s Separation from Service. If benefits commence prior to the Participant’s attainment of age 65, benefit  payments to the Participant (or to the surviving spouse or beneficiary as the case may be) shall be reduced by 1/180 for each  of the first 60 months between the date of the first payment and the first day of the month coincident with or next following  the date the Participant would attain age 65 and by 1/360 for each additional month.                 3.5. Payment Elections. All payment elections shall be on a prescribed form designated and approved by  the Administrator.                        (a) Transitional Elections. On or before December 31, 2008, if a Participant wishes to change or  make a new payment election, the Participant may do so by completing a payment election form designated and approved by  the Administrator, provided that any such election (i) must be made no later by December 31, 2008, and must be made prior  to the year in which benefits payments are scheduled to commence; (ii) shall not take effect before the date that the election is  made and accepted by the Administrator, (iii) does not cause a payment that would otherwise be made in the year in which  the election is made to be delayed to a later year and (iv) does not accelerate into the year in which the election is made a  payment that is otherwise scheduled to be made in a later year.                        (b) Changes in Payments Elections After 2008. On or after January 1, 2009, if a Participant wishes  to change his payment election, the Participant may do so by completing a payment election form designated and approved  by the Administrator, provided that any such election (i) must be made at least 12 months before the date on which any  benefit payments are scheduled to commence; (ii) shall not take effect until 12 months after the date the election is made and  accepted by the Administrator and (iii) for payments to be made other than upon death, must provide an additional deferral  payment at least five years from the date that such payment would otherwise have been made or, in the case of any annuity  and installment payments treated as single payment, five years from the date the first amount was scheduled to be paid. For  purpose of this Plan and clause (iii) above, all annuities or installment payments under this Plan shall be treated as a single  payment. An election by a Participant to only change the form of payment to one of the Actuarially Equivalent forms of  benefits available under the Plan shall not be treated as a change in payment election for purposes of this Section 3.5;  

 

however, any such election must be made by the Participant on an election form designated by and approved by the  Administrator.                 3.6. Prohibition on Acceleration of Payments. Except as provided in this Section 3.6, in no event shall the  time or schedule of any payment or any amount scheduled to be paid pursuant to the terms of the Plan be accelerated, and no  such accelerated payment may be made whether or not provided for under the terms of the Plan. Notwithstanding the  previous sentence, payment of benefits due to the Participant’s death will not be treated as resulting in an acceleration of  payment.                        (a) Payment Upon Income Inclusion. The Administrator may provide for the acceleration of the  time or schedule of a payment at any time the Plan fails to meet the requirements of Section 409A and the regulations  thereunder. Such payment may not exceed the amount required to be included in the Participant’s income as a result of a  failure to comply with the requirements of Section 409A and the regulations thereunder.                        (b) Plan Termination. The Administrator may accelerate the time and form of payment where the  acceleration of payment is made pursuant to the termination of the Plan in accordance with one of the following provisions:                                (i) The Bank may terminate the Plan at any time and for any reason, provided that the  termination and liquidation of the Plan does not occur proximate to a downturn in the financial health of the Bank. The Bank  must terminate and liquidate all agreements, methods, programs and other arrangements sponsored by the Bank that would be  aggregated with any terminated and liquidated agreements, methods, programs and other arrangements under Treasury  Regulation Section 1.409A-1(c) if the same Participant had deferrals of compensation under all of the agreements, methods,  programs and other arrangements that are terminated and liquidated. Further, no payments in liquidation of the Plan shall be  made within 12 months of the date the Bank takes all necessary action to irrevocably terminate and liquidate the Plan other  than payments that would be payable under the terms of the Plan if the actions to terminate and liquidate the Plan had not  occurred. In addition, all payments shall be made within 24 months of the date the Bank takes all necessary action to  irrevocably terminate and liquidate the Plan. Further, the Bank shall not adopt a new plan that would be aggregated with any  terminated and liquidated plan under Treasury Regulation Section 1.409A-1(c) if the same Participant participated in both  plans, at any time within three years following the date that the Bank takes all necessary action to irrevocably terminate and  liquidate the Plan.                                (ii) Such other events and conditions as prescribed by Treasury Regulation Section  1.409A-3(j)(4)(ix) or any generally applicable guidance published in the Internal Revenue Bulletin.                        (c) Payment of State, Local, FICA or Foreign Taxes. The Administrator may provide for the  acceleration of the time and form of a payment to reflect the payment of state, local or foreign tax obligations arising from  participation in the Plan that apply to an amount deferred under the Plan before the amount is paid or made available to the  Participant. Such payment may not exceed the amount of such taxes due as a result of participation in the Plan. A  Participant’s benefits under the Plan shall be reduced to reflect the payment of the Participant’s tax obligations under this  Section.                 3.7. Six-Month Delay for Specified Employees. Notwithstanding anything in this Article III to the contrary,  if a Participant is a Specified Employee on the date of his “separation from service,” within the meaning of section 409A of  the Code, in no event shall the Participant’s Post-409A Benefits commence to be paid to the Participant until the date that is  six months after the date of the Participant’s Separation from Service (or, if earlier than the end of the six month period, the  date of death of the Specified Employee). If a benefit payment to a Participant is delayed pursuant to the preceding sentence,  the Participant shall be entitled to a retroactive payment in a lump sum of any delayed payments plus interest on the delayed  payments equal to the FAS 87 discount rate in effect at the start of the six-month period. The Participant’s benefits that  accrued prior to 2005 shall be paid to the Participant in accordance with the provisions of this Article III.                 3.8. Separation from Service Prior to 2005. If a Participant separated from service prior to 2005, his or her  rights and benefits under the Plan shall be determined by the terms and provisions of the Plan as in effect on December 31,  2004.                 3.9. Separation from Service After 2004 and Prior to 2009. If a Participant who is entitled to benefits under  the Plan separated from service after 2004 but prior to 2009 and who has not commenced benefits by January 1, 2009, his or  her benefits shall commence benefits as soon as practicable following the date the Participant attains age 60, but not later than  the end of the calendar year in which the Participant attains age 60, unless the Participant makes an election in accordance  with Section 3.5, above.                                                ARTICLE IV                                             ADMINISTRATION                 4.1. The Plan shall be administered by the Administrator, which shall have the authority to interpret the  Plan, to determine eligibility hereunder, and to determine the nature and amount of benefits. Any construction or  interpretation of the Plan and any determination of fact in administering the Plan made in good faith by the Administrator  shall be final and conclusive for all Plan purposes.                                                                       4.2. (a) The Administrator shall prescribe a form for the presentation of claims under the terms of this Plan.                        (b) Upon presentation to the Administrator of a claim on the prescribed form, the Administrator  

 

shall make a determination of the validity thereof. If the determination is adverse to the claimant, the Administrator shall  furnish to the claimant within 90 days after the receipt of the claim a written notice setting forth the following:                                (i) the specific reason or reasons for the denial;                                (ii) specific references to pertinent provisions of the Plan on which the denial is based;                                (iii) a description of any additional material or information necessary for the claimant to  perfect the claim and an explanation of why such material or information is necessary; and                                (iv) appropriate information as to the steps to be taken if the claimant wishes to submit  his or her claim for review.                        (c) In the event of a denial of a claim, the claimant or his or her duly authorized representative  may appeal such denial to the Administrator for a full and fair review of the adverse determination. Claimant’s request for  review must be in writing and made to the Administrator within 60 days after receipt by claimant of the written notification  required under Section 4.2(b); provided, however, such 60-day period shall be extended if circumstances so warrant.  Claimant or his or her duly authorized representative may submit issues and comments in writing which shall be given full  consideration by the Administrator in its review.                        (d) The Administrator may, in its sole discretion, conduct a hearing. A request for a hearing made  by claimant will be given full consideration. At such hearing, the claimant shall be entitled to appear and present evidence  and be represented by counsel.                        (e) A decision on a request for review shall be made by the Administrator not later than 60 days  after receipt of the request; provided, however, in the event of a hearing or other special circumstances, such decision shall be  made not later than 120 days after receipt of such request. If it is necessary to extend the period of time for making a decision  beyond 60 days after the receipt of the request, the claimant shall be notified in writing of the extension of time prior to the  beginning of such extension.                        (f) The Administrator’s decision on review shall state in writing the specific reasons and  references to the Plan provisions on which it is based. Such decision shall be promptly provided to the claimant. If the  decision on review is not furnished in accordance with the foregoing, the claim shall be deemed denied on review.                                                 ARTICLE V                                     AMENDMENT AND TERMINATION                 5.1. The Bank may amend the Plan in any manner and at any time by action of its Board of Trustees;  provided, however, that no amendment shall deprive any Participant of any benefit accrued hereunder as of the date of  adoption of such amendment as determined under Section 5.3, below.                 5.2. The Bank reserves the right to terminate this Plan at any time in accordance with Section 3.6, in which  case the benefits payable to any Participant shall be limited to those accrued hereunder as of the effective date of termination,  as determined under Section 5.3, below.                                                                       5.3. For purposes of Sections 5.1 and 5.2, above, the benefit accrued by a Participant as of the date of  adoption of an amendment to the Plan or the effective date of termination of the Plan shall be computed under Section 3.1 as  if the Participant has terminated employment with the Bank on such date, and under Section 3.3 as if the Participant had died  on such date, and shall be payable in such manner and at such times specified in Article III, above; provided, however, that in  no event shall the amount so computed exceed the excess, if any, of (a) the benefit which is payable to the Participant, or his  surviving spouse or other beneficiary, as the case may be, under the Pension Plan but for the Limitations, over (b) the benefit  which is payable to the Participant, or his surviving spouse or other beneficiary, as the case may be, under the Pension Plan.                                                   ARTICLE VI                                              MISCELLANEOUS                 6.1. Nothing contained herein shall be construed as providing for assets to be held in trust or escrow or any  other form of asset segregation for the Participant, the Participant’s surviving spouse or other beneficiary, the Participant’s  only interest being the right to receive benefits set forth herein. To the extent that the Participant or any other person acquires  a right to receive benefits under this Plan, such right shall be no greater than the right of any unsecured general creditor of the  Bank.                 6.2. Nothing contained in this Plan shall be construed as a contract of employment between the Bank and  any Participant, or as a right of any Participant to be continued in employment of the Bank, or as a limitation on the right of  the Bank to discharge any of its employees, with or without cause.                                                                       6.3. The benefits payable hereunder or the right to receive future benefits under the Plan may not be  anticipated, alienated, pledged, encumbered, or subject to any charge or legal process.                 6.4. This Plan shall be interpreted in accordance with the laws of the Commonwealth of Pennsylvania,  except to the extent superseded by ERISA.                 IN WITNESS WHEREOF, the Bank has caused this instrument to be executed by its authorized officers  and its corporate seal to be impressed hereon this 18th day of December, 2008.  

 

Attest:                                                        BENEFICIAL MUTUAL SAVINGS BANK                                                                                                                                    /s/ Marcella Hatcher                                           By: /s/ Thomas M Topley                                        [Seal]                                                                                                   

 

                                AMENDMENT TO THE                    SUPPLEMENTAL PENSION AND RETIREMENT PLAN OF                            BENEFICIAL MUTUAL SAVINGS BANK                              AS AMENDED AND RESTATED    This amendment is adopted by the Board of Directors (the “Board”) of Wilmington Savings Fund Society,  FSB (the “Bank”).          WHEREAS, the Bank maintains the Supplemental Pension and Retirement Plan of Beneficial  Mutual Savings Bank (the “Plan”), as amended and restated; and                WHEREAS, the Board wishes to amend the Plan in connection with the merger by and between  WSFS Financial Corporation and Beneficial Bancorp, Inc. (the “Merger”), so that as of the effective time  of the Merger, the Human Capital Management Department of Wilmington Savings Fund Society, FSB  shall serve as plan administrator; and                WHEREAS, pursuant to Section 5.1 of the Plan, the Plan may be amended or modified from time  to time by the Board, as the successor to the Board of Trustees of Beneficial Bank, provided that no  amendment shall deprive a participant in the Plan of any benefit accrued under the Plan as of the date  of adoption of such amendment.          NOW, THEREFORE, the Board hereby amends the Plan as follows, effective as of the effective  time of the Merger:    Section 2.2 is amended to read as follows:                2.2.  “Administrator”  shall  mean the  Human  Capital  Management  Department  of        Wilmington Savings Fund Society, FSB.                                                                              *     *     *     *                            

 

                                                          IN  WITNESS  WHEREOF,  the  Bank has  caused  this  amendment  to  be  executed  by  its  duly  authorized officer.                                              WILMINGTON SAVINGS FUND SOCIETY, FSB                                                                                                                  /s/ Rodger Levenson                                                                                             Duly Authorized Officer

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