Document:

Exhibit 10.1

      

      

      

    

     

    

    TRANSITION SERVICES AGREEMENT

    

    

    This TRANSITION SERVICES AGREEMENT, dated as of [●], 2019 (this “Agreement”), is made and entered into 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”, and together with KAR, the “Parties”).  For purposes of this Agreement, capitalized terms used herein and not otherwise defined shall have the respective meanings ascribed to such terms in the Separation and
        Distribution Agreement.

    

    

    RECITALS:

    

    

    WHEREAS, the board of directors of KAR (the “KAR Board”) has determined that it is advisable and in the best interests of KAR to separate KAR’s salvage auction businesses from its whole car auction businesses, creating two independent publicly traded
        companies;

    

    

    WHEREAS, in furtherance of the foregoing, (a) KAR will cause the applicable members of the KAR Group to
        assign, transfer, convey and deliver to SpinCo or the applicable SpinCo Designee all right, title and interest of the KAR Group in and to the SpinCo Assets, (b) SpinCo and the applicable SpinCo Designees will accept, assume and agree faithfully to
        perform, discharge and fulfill the SpinCo Liabilities (the transactions described in clauses (a) and (b) herein being referred to collectively as the “SpinCo
            Contribution”), [(c) SpinCo will cause the applicable members of the SpinCo Group to assign, transfer, convey and deliver to KAR or the applicable KAR Designee all right, title and interest of the SpinCo Group in and to the KAR
        Assets, and (d) KAR and the applicable KAR Designees will accept, assume and agree faithfully to perform, discharge and fulfill the KAR Liabilities] (the transactions described in this recital, including the assignment, transfer, conveyance and
        delivery of the SpinCo Assets and KAR Assets, and the acceptance, assumption and agreement to perform the SpinCo Liabilities and the KAR Liabilities, being referred to collectively as the “Separation”);

    

    

    WHEREAS, to effectuate the Separation and the Distribution, KAR and SpinCo have entered into a
        Separation and Distribution Agreement, dated as of [●], 2019 (the “Separation and Distribution Agreement”); and

    

    

    WHEREAS, to facilitate and provide for an orderly transition in connection with the Separation, the
        Parties desire to enter into this Agreement to set forth the terms pursuant to which each of the Parties shall provide Services to the other Party for a transitional period.

    

    

    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

    

    

    SERVICES

    

    

    Section 1.01                          Services.

    

    

    (a)            With respect each applicable service set forth on Schedule

            1 hereto (the “Services”), the Party identified on Schedule 1 
        hereto as the “Provider” of such Service agrees to provide, or to cause one or more members of its Group to provide, such Service to the other Party (the “Recipient”), or any members of the Recipient’s Group, in each case for the period commencing on the Effective Date and ending on the earlier of (i) the date that
        a Party terminates the provision of such Service pursuant to Section 4.02 and (ii) the date set forth on Schedule 1 with respect to such Service (the “Service Period”).

    

    

    (b)            At any time during the term of this Agreement, either Party may request that the other Party provide or cause
        its Group to provide additional services hereunder (the “Additional Services”) by providing written notice of such request, it being understood that, unless
        such Additional Services are specified on Schedule 1 as pre-approved Additional Services, the Party that receives such request may in its sole discretion
        decline to provide such requested Additional Services. If a Provider agrees to undertake to provide the Additional Services, upon the mutual written agreement as to the nature, cost, duration and scope of such Additional Services, KAR and SpinCo
        shall supplement in writing the Services set forth on Schedule 1 to include such Additional Services. Except where the context otherwise indicates or
        requires, any such Additional Services specified on Schedule 1 or so agreed upon in writing by the Parties shall be deemed to be “Services” under this Agreement.

    

    

    Section 1.02                          Performance of Services.

    

    

    (a)            The Provider shall perform, or shall cause one or more members of its Group to perform, all Services to be
        provided by the Provider in a manner that is based on its past practice and that is substantially similar in all material respects to such Services (or analogous services) provided by or on behalf of KAR or any of its Subsidiaries with respect to
        the SpinCo Business during the twelve (12) months prior to the Effective Date (collectively referred to as the “Level of Service”).

    

    

    (b)            Nothing in this Agreement shall require the Provider to perform or cause to be performed any Service to the
        extent that the manner of such performance would constitute a violation of any applicable Law or any existing contract or agreement with a Third Party. As between the Parties, the Provider shall be the party that communicates with Third Parties in
        connection with any necessary Third Party consents required under any existing contract or agreement with a Third Party to allow the Provider to perform, or cause to be performed, Services to be provided to the Recipient hereunder, with any such
        communications to be in the sole discretion of Provider. Unless otherwise agreed in writing by the Parties, all reasonable and documented out-of-pocket costs and
        expenses (if any) incurred by any Party or any member of its Group in connection with obtaining any Third Party consent that is required to allow the Provider to perform or cause to be performed any Services hereunder shall be paid for by the
        Recipient. If, with respect to a Service, a required Third Party consent has not been obtained, or the performance of a Service by or on behalf of the Provider would constitute a violation of any applicable Law, the Provider shall have no
        obligation to perform or cause to be performed such Service.

    

    

    (c)            The Provider shall not be obligated to perform or to cause to be performed any Service in a manner that is
        materially more burdensome (with respect to service quality, service quantity, or allocation of personnel or resources) than such services (or analogous services) provided by or on behalf of KAR or any of its Subsidiaries with respect to the SpinCo
        Business during the 12-month period prior to the Effective Date. Without limiting the generality of the foregoing, the Provider shall not be required to maintain the employment of any specific employee(s), hire additional employees or third-party
        service providers or purchase, or purchase, lease or license any additional equipment, software or other assets or properties in order the provide the Services hereunder. If the Recipient requests that the Provider perform or cause to be performed
        any Service in a manner that exceeds the Level of Service, then the Parties shall reasonably cooperate and act in good faith to determine whether the Provider will be required to provide such requested higher Level of Service. If the Parties
        determine that the Provider shall provide the requested higher Level of Service, then such higher Level of Service shall be documented in a written agreement signed by the Parties, which may be an amendment or addendum to this Agreement.

    
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    (d)            (i)   Neither the Provider nor any member of its Group shall be required to perform or to cause to be performed any of the Services for the benefit
        of any Third Party or any other Person other than the Recipient and the members of its Group, and (ii) EXCEPT AS EXPRESSLY PROVIDED IN THIS Section 1.02 OR
        Section 6.04, EACH PARTY ACKNOWLEDGES AND AGREES THAT ALL SERVICES ARE PROVIDED ON AN “AS-IS” BASIS, THAT THE RECIPIENT ASSUMES ALL RISK AND LIABILITY
        ARISING FROM OR RELATING TO ITS USE OF AND RELIANCE UPON THE SERVICES, AND THAT THE PROVIDER MAKES NO OTHER REPRESENTATIONS OR GRANTS ANY WARRANTIES, EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, BY STATUTE OR OTHERWISE, WITH RESPECT
        TO THE SERVICES. EACH PARTY SPECIFICALLY DISCLAIMS ANY OTHER WARRANTIES, WHETHER WRITTEN OR ORAL, OR EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF QUALITY, MERCHANTABILITY, OR FITNESS FOR A PARTICULAR USE OR PURPOSE OR THE NON-INFRINGEMENT OF ANY
        INTELLECTUAL PROPERTY RIGHTS OF THIRD PARTIES.

    

    

    (e)            Each Party shall be responsible for its own compliance with any and all Laws applicable to its performance under this Agreement.
        No Party shall knowingly take any action in violation of any such applicable Law.

    

    

    Section 1.03                           Charges for Services. The Recipient shall pay the Provider of the
        Services a fee for such Services (or category of Services, as applicable) (each fee constituting a “Charge” and, collectively, “Charges”), which Charges are set forth in Schedule 2 hereto. During the term of this
        Agreement, the amount of a Charge for any Service may be modified to the extent of (a) any adjustments mutually agreed to in writing by the Parties, (b) any adjustments due to a change in Level of Service requested by the Recipient and agreed upon
        in writing by the Provider, and (c) any adjustment in the rates or charges imposed by any Third Party provider that is providing Services (proportional to the respective use of such Services by each Party) (“Additional Charges”). Together with any invoice for Charges, the Provider shall provide the Recipient with reasonable documentation, including any additional documentation reasonably
        requested by the Recipient to the extent that such documentation is in the Provider’s or its Group’s possession or control, to confirm the calculation of any applicable Additional Charges.

    

    

    Section 1.04                           Changes in the Performance of Services. Subject to the performance Level of Service, the Provider may make changes from time to time in the manner of
        performing the Services if the Provider is making similar changes in performing analogous services for itself or its Group and if the Provider furnishes to the Recipient reasonable prior written notice of such changes. No such change shall
        materially adversely affect the timeliness or quality of the applicable Service.

    

    

    Section 1.05                           Transitional Nature of Services. The Parties acknowledge the transitional nature of the
        Services and agree to reasonably cooperate and to use commercially reasonable efforts to effectuate a smooth transition of the Services from the Provider to the Recipient (or its designee).

    

    

    Section 1.06                           Subcontracting. A Provider may hire or engage one or more Third
        Parties to perform any or all of its obligations under this Agreement; provided, however, that (a) such Provider shall use the same degree of care (but at least reasonable care) in selecting each such Third Party as it would if such Third Party was being retained to provide similar services to the
        Provider or its Group and (b) such Provider shall in all cases remain primarily responsible for all of its obligations under this Agreement with respect to the Services.

    
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    ARTICLE II

    

    

    OTHER ARRANGEMENTS

    

    

    Section 2.01                          Access.  The Recipient shall, and shall cause the members of its Group to, allow the Provider and the members of its Group and their respective
        Representatives reasonable access to the facilities of the Recipient and the members of its Group that is necessary for the Provider to fulfill its obligations under this Agreement. In addition to the foregoing right of access, the Recipient shall,
        and shall cause the members of its Group to, afford the Provider and the members of its Group and their respective Representatives, upon reasonable advance written notice, reasonable access during normal business hours to the facilities,
        Information, systems, infrastructure and personnel of the Recipient and the members of its Group as reasonably necessary for the Provider to verify the adequacy of internal controls over information technology, reporting of financial data and
        related processes employed in connection with the Services being provided by the Provider or the members of the Provider Group, including in connection with verifying compliance with Section 404 of the Sarbanes-Oxley Act of 2002; provided that (i) such access shall not unreasonably interfere with any of the business or operations of the Recipient or any member of its Group and (ii) in the
        event that the Recipient determines that providing such access could be commercially detrimental, violate any applicable Law or agreement or waive any attorney-client privilege, then the Parties shall use commercially reasonable efforts to permit
        such access in a manner that avoids such harm and consequence. The Provider agrees that all of its and its Group’s employees shall, and that it shall use commercially reasonable efforts to cause its Representatives’ employees to, when on the
        property of the Recipient or a member of the Recipient’s Group, or when given access to any facilities, Information, systems, infrastructure or personnel of the Recipient or a member of the Recipient’s Group, conform to the policies and procedures
        of the Recipient and the members of the Recipient’s Group, as applicable, concerning health, safety, conduct and security which are made known or provided to the Provider from time to time.

    

    

    Section 2.02                           Audit

          Assistance.  Each of the Parties and the members of their respective Groups are
        or may be subject to regulation and audit by a Governmental Authority (including a Taxing Authority), or parties to contracts with such Parties or the members of their Groups. If such a Third Party exercises its right to examine or audit such
        Party’s or a member of its Group’s books, records, documents or accounting practices and procedures pursuant to such applicable Law or contract provisions, and such examination or audit relates to the Services, then the other Party shall provide,
        at the sole cost and expense of the requesting Party (except if related to the Recipient's receipt of Services, in which case such cost and expense shall be the Recipient's responsibility), all assistance reasonably requested by the Party that is
        subject to the examination or audit in responding to such examination or audits or requests for Information, to the extent that such assistance or Information is within the reasonable control of the cooperating Party and is related to the Services.
        The requesting Party shall consult and cooperate with the cooperating Party to limit the scope of any such examination or audit to the extent reasonably possible.

      

    

    

    Section 2.03                            Title to Intellectual
          Property.   Except as otherwise expressly provided for under this Agreement,
        the Separation and Distribution Agreement, the Trademark License Agreement or the Transition Trademark License Agreement, the Recipient acknowledges that it shall acquire no right, title or interest (including any license rights or rights of use)
        in any intellectual property which is owned or licensed by the Provider, by reason of the provision of the Services hereunder (other than the receipt and use of the Services by the Recipient during the term of this Agreement as contemplated
        hereunder). The Recipient shall not remove or alter any copyright, trademark, confidentiality or other proprietary notices that appear on any intellectual property owned or licensed by the Provider, and the Recipient shall reproduce any such
        notices on any and all copies thereof. The Recipient shall not attempt to decompile, translate, reverse engineer or make excessive copies of any intellectual property owned or licensed by the Provider, and the Recipient shall promptly notify the
        Provider of any such attempt, regardless of whether by the Recipient or any Third Party, of which the Recipient becomes aware.

    
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    ARTICLE III

    

    

    BILLING; TAXES

    

    

    Section 3.01                            Procedure. Charges
        for the Services as well as any Covered Taxes due and owing in accordance with Section 3.03 hereof, shall be charged to and payable by the Recipient. Amounts payable pursuant to this Agreement shall be paid by wire transfer (or such other method of
        payment as may be agreed between the Parties from time to time) to the Provider (as directed by the Provider), on a monthly basis, which amounts shall be due within thirty (30) days after the Recipient’s receipt of each such invoice, including
        reasonable documentation pursuant to Section 1.03. All amounts due and payable hereunder shall be invoiced and paid in U.S. dollars.

    

    

    Section 3.02                            Late Payments.  Charges not paid when due pursuant to this Agreement (and any amounts
        billed or otherwise invoiced or demanded and properly payable that are not paid within thirty (30) days of the receipt of such bill, invoice or other demand) shall accrue interest at a rate per annum equal to the Prime Rate plus one percent (1%) or
        the maximum rate under applicable Law, whichever is lower (the “Interest Payment”).

    

    

    Section 3.03                            Taxes.

    

    

    (a)            Without limiting any provisions of this Agreement, the Charges shall be exclusive of all sales, use, value-added, goods and services, services, excise, consumption, transfer or
        similar taxes, and any related penalties and interest, arising from the payment of such Charges to the Provider under this Agreement (other than any taxes measured by or imposed on the Provider’s gross or net income, or franchise or other similar
        taxes of the Provider) (“Covered Taxes”).

    

    

    (b)            Where required by applicable Law, the Recipient shall pay any Covered Taxes directly to the relevant Governmental Authority in compliance with applicable Law. If any Covered
        Taxes are assessed on the receipt of Charges by the  Provider under this Agreement, the Provider shall notify the Recipient, pay such Covered Taxes directly to the applicable Governmental Authority and promptly provide the Recipient with an
        official receipt showing such payment, and the Recipient shall (without duplication) reimburse the Provider for such Covered Taxes.

    

    

    (c)            In the event that applicable Law requires any Covered Taxes to be withheld from a payment of Charges by a Recipient to a Provider under this Agreement, the Recipient shall make
        such required withholding, pay such withheld amounts over to the applicable Governmental Authority in compliance with applicable Law, and increase the amount payable to the Provider as necessary so that, after the Recipient has withheld such
        amounts, the Provider receives an amount equal to the amount the Provider would have received had no such withholding been required.

    

    

    (d)            The Recipient and the Provider shall use reasonable efforts, and shall cooperate with each other in good faith, to secure (and to enable the Recipient to claim) any exemption
        from, or otherwise to minimize, any Covered Taxes or to claim a tax refund therefor or tax credit in respect thereof, and the Recipient shall not be responsible for any Covered Taxes to the extent that such Covered Taxes would not have been imposed
        if (i) the Provider was eligible to claim an exemption from or reduction of such Covered Taxes, (ii) the Recipient used commercially reasonable efforts to notify the Provider of such eligibility reasonably in advance and (iii) the Provider failed
        to claim such exemption or reduction. If the Provider receives a refund with respect to any Covered Taxes paid or borne by the Recipient under this Agreement, the Provider shall promptly pay such refund to the Recipient net of costs and expenses
        (including any additional taxes) incurred by the Provider in connection with the receipt of such refund or the payment of such refund to the Recipient.

    

    

    Section 3.04                            No Set-Off. 
        Except as mutually agreed to in writing by KAR and SpinCo, no Party or any member of its Group shall have any right of set-off or other similar rights with respect to (a) any amounts received pursuant to this Agreement or (b) any other amounts
        claimed to be owed to the other Party or any of member of its Group arising out of this Agreement.

    
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    ARTICLE IV

    

    

    TERM AND TERMINATION

    

    

    Section 4.01                            Term. This Agreement shall commence upon the Effective Date and shall
        terminate upon the earlier to occur of: (a) the last date on which either Party is obligated to provide any Service to the other Party in accordance with the terms of this Agreement; (b) the mutual written agreement of the Parties to terminate this
        Agreement in its entirety; and (c) 11:59 p.m., New York City time on [●]. Unless otherwise terminated pursuant to Section 4.02, this Agreement shall
        terminate with respect to each Service as of the close of business on the last day of the Service Period for such Service.

    

    

    Section 4.02                          Early Termination.

    

    

    (a)            Without prejudice to the Recipient’s rights with respect to Force Majeure, the Recipient may from time to time terminate this
        Agreement with respect to the entirety of any individual Service:

    

    

    (i)            for any reason or no reason, at least thirty (30) days following written request to
        the Provider to terminate such Service, if the Provider agrees in writing to such termination; provided, however, that any such termination (x) may only be effective as of the date agreed to in writing by the Parties and (y) shall result in a reduction of Charges only if and to the extent expressly set forth
        in Schedule 2; or

    

    

    (ii)            if the Provider of such Service has failed to perform any of its material obligations under this Agreement with respect
        to such Service, and such failure shall continue to be uncured for a period of thirty (30) days (or ninety (90) days if Provider is using good-faith efforts to so cure during such thirty (30) day period and thereafter) after receipt by the Provider
        of written notice of such failure from the Recipient; provided, however,
        that any such termination may only be effective as of the last day of a month; provided, further, that the Recipient shall not be entitled to terminate this Agreement with respect to the applicable Service if, as of the end of such period, there remains a good-faith Dispute between the Parties (undertaken
        in accordance with the terms of Section 7.12) as to whether the Provider has cured the applicable breach.

    

    

    (b)            The Provider may terminate this Agreement with respect to any individual Service, but not a portion thereof, at any time upon
        prior written notice to the Recipient if the Recipient has failed to perform any of its material obligations under this Agreement relating to such Service, including making payment of Charges for such Service when due, and such failure shall
        continue to be uncured for a period of thirty (30) days (or ninety (90) days if Recipient is using good-faith efforts to so cure during such thirty (30) day period and thereafter) after receipt by the Recipient of a written notice of such failure
        from the Provider; provided, however, that any such termination
        may only be effective as of the last day of a month; provided, further,
        that the Provider shall not be entitled to terminate this Agreement with respect to the applicable Service if, as of the end of such period, there remains a good-faith Dispute between the Parties (undertaken in accordance with the terms of Section 7.12) as to whether the Recipient has cured the applicable breach.

    

    

    Section 4.03                            Interdependencies.  The Parties acknowledge and agree that: (a) there may be interdependencies among the Services being provided under this Agreement; (b) upon the request of either Party, the Parties
        shall cooperate and act in good faith to determine whether (i) any such interdependencies exist with respect to the particular Service that a Party is seeking to terminate pursuant to Section 4.02 and (ii) in the case of such termination, the Provider’s ability to provide a particular Service in accordance with this Agreement would be materially and adversely affected by such termination of another
        Service; and (c) in the event that the Parties have determined that such interdependencies exist (and, in the case of such termination that the Provider’s ability to provide a particular Service in accordance with this Agreement would be materially
        and adversely affected by such termination), the Parties shall negotiate in good faith to amend Schedule 1 with respect to such termination of such impacted
        Service, which amendment shall be consistent with the terms of comparable Services.  To the extent that the Provider’s ability to provide a Service is dependent on the continuation of a specified Service, the Provider’s obligation to provide such
        dependent Service shall terminate automatically with the termination of such supporting Service.

    

    

    Section 4.04                            Effect of Termination.  Upon the termination of any Service pursuant to this Agreement, the Provider of the terminated Service shall have no further obligation to provide the terminated Service.

    

    

    Section 4.05                            Information Transmission. 

        The Provider, on behalf of itself and the members of its Group, shall use commercially reasonable efforts to provide or make available, or cause to be provided or made available, to the Recipient, in accordance with Section 6.1 of the Separation
        and Distribution Agreement, any Information received or computed by the Provider for the benefit of the Recipient concerning the relevant Service during the Service Period; provided, however, that, except as otherwise agreed to in writing by the Parties (a) the Provider shall not have any obligation to
        provide, or cause to be provided, Information in any nonstandard format, (b) the Provider and the members of its Group shall be reimbursed for their reasonable costs in accordance with Section 6.3 of the Separation and Distribution Agreement for
        creating, gathering, copying, transporting and otherwise providing such Information, and (c) the Provider shall use commercially reasonable efforts to maintain any such Information in accordance with Section 6.4 of the Separation and Distribution
        Agreement.

    
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    ARTICLE V

    

    

    CONFIDENTIALITY; PROTECTIVE ARRANGEMENTS

    

    

    Section 5.01                            KAR and SpinCo Obligations.
        Subject to Section 5.04, until the five (5)-year anniversary of the Effective Date, each of KAR and SpinCo, on behalf of itself and each member of its
        Group, agrees to hold, and to cause its respective Representatives to hold, in confidence, with at least the same degree of care that applies to KAR’s Confidential Information pursuant to policies in effect as of the Effective Date, all
        Confidential Information concerning the other Party or the members of its Group or their respective businesses that is either in its possession (including Confidential Information in its possession prior to the Effective Date) or furnished by such
        other Party or such other Party’s Group members or their respective Representatives at any time pursuant to this Agreement, and shall not use any such Confidential Information other than for such purposes as may be expressly permitted hereunder,
        except, in each case, to the extent that such Confidential Information has been (a) in the public domain or generally available to the public, other than as a result of a disclosure by such Party or any member of its Group or any of their
        respective Representatives in violation of this Agreement; (b) later lawfully acquired from other sources by such Party or any of member of its Group, which sources are not themselves bound by a confidentiality obligation or other contractual,
        legal or fiduciary obligation of confidentiality with respect to such Confidential Information; or (c) independently developed or generated without reference to or use of the Confidential Information of the other Party or any member of its Group.
        If any Confidential Information of a Party or any member of its Group is disclosed to the other Party or any member of its Group in connection with providing the Services, then such disclosed Confidential Information shall be used only as required
        to perform such Services.

    

    

     Section 5.02
                                                      No Release; Return or Destruction.  Each Party agrees (a) not to release or disclose, or permit to be released or disclosed,
        any Confidential Information of the other Party addressed in Section 5.01 to any other Person, except its Representatives who need to know such Confidential
        Information in their capacities as such (whom shall be advised of their obligations hereunder with respect to such Confidential Information) and except in compliance with Section

            5.04, and (b) to use commercially reasonable efforts to maintain such Confidential Information in accordance with Section 6.4 of the Separation and Distribution Agreement. Without limiting the foregoing, when any such Confidential
        Information is no longer needed for the purposes contemplated by the Separation and Distribution Agreement, this Agreement or any other Ancillary Agreements, each Party will promptly after request of the other Party either return to the other Party
        all such Confidential Information in a tangible form (including all copies thereof and all notes, extracts or summaries based thereon) or notify the other Party in writing that it has destroyed such information (and such copies thereof and such
        notes, extracts or summaries based thereon).

    

    

    Section 5.03                           Privacy

            and Data Protection Laws.  Each Party shall comply with all applicable state, federal and foreign privacy and data protection Laws that are or that may in the future be applicable to the provision of the Services under this
        Agreement.

    

    

    Section 5.04                           Protective

            Arrangements. In the event that a Party or any member of its Group either determines on the advice of its counsel that it is required to disclose any information pursuant to applicable Law or receives any request or demand under
        lawful process or from any Governmental Authority to disclose or provide information of the other Party (or any member of its Group) that is subject to the confidentiality provisions hereof, such Party shall notify the other Party (to the extent
        legally permitted) as promptly as practicable under the circumstances prior to disclosing or providing such information and shall reasonably cooperate, at the expense of the other Party, in seeking any appropriate protective order requested by the
        other Party. In the event that such other Party fails to receive such appropriate protective order in a timely manner and the Party receiving the request or demand reasonably determines that its failure to disclose or provide such information shall
        actually prejudice the Party receiving the request or demand, then the Party that received such request or demand may thereafter disclose or provide information to the extent required by such Law (as so advised by its counsel) or by lawful process
        or such Governmental Authority, and the disclosing Party shall promptly provide the other Party with a copy of the information so disclosed, in the same form and format so disclosed, together with a list of all Persons to whom such information was
        disclosed, in each case to the extent legally permitted.

    
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    ARTICLE VI

    

    

    LIMITED LIABILITY AND INDEMNIFICATION

    

    

    Section 6.01                          Limitations on Liability.

    

    

    (a)            THE LIABILITIES OF THE PROVIDER AND ITS GROUP MEMBERS AND THEIR RESPECTIVE REPRESENTATIVES, COLLECTIVELY,
        UNDER THIS AGREEMENT FOR ANY AND ALL ACTS OR FAILURES TO ACT IN CONNECTION HEREWITH (INCLUDING THE PERFORMANCE OR BREACH OF THIS AGREEMENT), OR FROM THE SALE, DELIVERY, PROVISION OR USE OF ANY AND ALL SERVICES PROVIDED UNDER OR CONTEMPLATED BY THIS
        AGREEMENT, WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR OTHERWISE, SHALL NOT IN THE AGGREGATE EXCEED FIFTY (50%) PERCENT OF THE CHARGES PAID AND PAYABLE TO PROVIDER BY THE RECIPIENT PURSUANT TO THIS AGREEMENT.

    

    

    (b)            IN NO EVENT SHALL EITHER PARTY, THE MEMBERS OF ITS GROUP OR THEIR RESPECTIVE REPRESENTATIVES BE LIABLE TO THE
        OTHER PARTY FOR ANY INDIRECT, PUNITIVE, EXEMPLARY, REMOTE, SPECULATIVE OR SIMILAR DAMAGES IN EXCESS OF COMPENSATORY DAMAGES OF THE OTHER PARTY IN CONNECTION WITH THE PERFORMANCE OF THIS AGREEMENT (OTHER THAN ANY SUCH LIABILITY TO THE EXTENT PAYABLE
        BY A PARTY OR A MEMBER OF ITS GROUP TO A THIRD PARTY WITH RESPECT TO A THIRD-PARTY CLAIM), AND EACH PARTY HEREBY WAIVES ON BEHALF OF ITSELF, THE MEMBERS OF ITS GROUP AND ITS REPRESENTATIVES ANY CLAIM FOR SUCH DAMAGES, WHETHER ARISING IN CONTRACT,
        TORT OR OTHERWISE.

    

    

    (c)            The limitations in Section 6.01(a) and
        Section 6.01(b) shall not apply in respect of any Liability to the extent arising out of or in connection with the gross negligence, willful misconduct or
        fraud of or by the Party (or a member of its Group) to be charged.

    

    

    Section 6.02                           Obligation to Re-Perform.  In the event of any breach of this Agreement by the Provider with respect to the provision of any Services which the Provider can reasonably be
        expected to re-perform in a commercially reasonable manner, the Provider shall promptly correct in all material respects such error, defect or breach or re-perform in all material respects such Services at the request of the Recipient and at the
        sole cost and expense of the Provider. Any request for re-performance in accordance with this Section 6.02 by the Recipient must be in writing and specify
        in reasonable detail the particular error, defect or breach, and such request must be made no more than one month from the later of (x) the date on which such breach occurred and (y) the date on which such breach was reasonably discovered by the
        Recipient.

    

    

    Section 6.03                           Recipient

            Indemnity. In addition to (but not in duplication of) its other indemnification obligations (if any) under the Separation and Distribution Agreement, this Agreement or any other Ancillary Agreement, but subject to the limitations set
        forth in Section 6.01 of this Agreement, the Recipient shall indemnify, defend and hold harmless the Provider, the members of the Provider’s Group and each
        of their respective Representatives, and each of the successors and assigns of any of the foregoing (collectively, the “Provider Indemnitees”), from and
        against any and all claims of Third Parties to the extent relating to, arising out of or resulting from the Provider’s furnishing or failing to furnish the Services provided for in this Agreement, other than Third Party Claims to the extent arising
        out of the gross negligence, willful misconduct or fraud of Provider or a member of Provider’s Group.

    

    

    Section 6.04                           Provider
            Indemnity.  In addition to (but not in duplication of) its other indemnification obligations (if any) under the Separation and Distribution Agreement, this Agreement or any other Ancillary Agreement, but subject to the limitations
        set forth in Section 6.01 of this Agreement, the Provider shall indemnify, defend and hold harmless the Recipient, the members of the Recipient’s Group and
        each of their respective Representatives, and each of the successors and assigns of any of the foregoing (collectively, the “Recipient Indemnitees”), from
        and against any and all Liabilities to the extent relating to, arising out of or resulting from the sale, delivery, provision or use of any Services provided by such Provider hereunder, but only to the extent that such Liability relates to, arises
        out of or results from the gross negligence, willful misconduct or fraud of Provider or a member of Provider’s Group.

    

    

    Section 6.05                           Indemnification

            Procedures.  The procedures for indemnification set forth in Sections 4.4, 4.5 and 4.6 of the Separation and Distribution Agreement shall govern claims for indemnification under this Agreement, mutatis mutandis.

    
      8

      
        

    

    

    

    ARTICLE VII

    

    

    MISCELLANEOUS

    

    

    Section 7.01                           Independent Contractors.  The Parties each acknowledge and agree that they are separate entities, each of which has entered into this Agreement
        for independent business reasons. The relationships of the Parties hereunder are those of independent contractors and nothing contained herein shall be deemed to create a joint venture, partnership or any other relationship between the Parties or
        the respective members of its Group. Employees performing Services hereunder do so on behalf of, under the direction of, and as employees of, the Provider, and the Recipient shall have no right, power or authority to direct such employees.

    

    

    Section 7.02                          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, the Separation and Distribution Agreement and the Ancillary Agreements and the Exhibits, Schedules and appendices
        hereto and thereto 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 the members of the KAR Group, and SpinCo represents on
        behalf of itself and, to the extent applicable, each of the members of the SpinCo Group, 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 and agrees that delivery of an executed counterpart of a signature page to this Agreement (whether
        executed by manual, stamp or mechanical signature) 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 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 7.03                           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 7.04                           Assignability. 

        This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns; provided, however, that SpinCo may not assign its rights or obligations under this Agreement without the express prior written consent of KAR.

    
      9

      
        

    

    

    

    Section 7.05                           Third-Party Beneficiaries.  Except as provided in Article VI with respect to the
        Provider Indemnitees and Recipient Indemnitees in their capacities as such, (a) 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; and (b) there are no other third-party beneficiaries of this Agreement and this Agreement shall not provide any other Third Party with any remedy, claim, Liability, reimbursement, claim of action or other right in excess of
        those existing without reference to this Agreement.

    

    

    Section 7.06                           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):

    

    

    	 	
            If to KAR, to:

          	

          
	 	

          	

          	

          
	 	

          	
            KAR Auction Services, Inc.

          
	 	

          	
            13085 Hamilton Crossing Boulevard

          
	 	

          	
            Carmel, Indiana 46032

          
	 	

          	
            Email:

          	 [                                              ]

          
	 	

          	
            Attention:

          	
            [                                              ]

              

          
	 	

          	

          	

          
	 	
            If to SpinCo, to:

          	

          
	 	

          	

          	

          
	 	

          	 IAA Spinco Inc.

          
	 	

          	 [                                                ]

          
	 	

          	 [                                                ]

          
	 	

          	
            Email:

          	 [                                            ]

          
	 	

          	
            Attention:

          	
            [                                            ]

              

          

    

    

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

    

    

    Section 7.07                           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 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.

    

    

    Section 7.08                           Force

            Majeure.  No Party shall be deemed in default of this Agreement for any delay or failure to fulfill any obligation (other than a payment obligation) hereunder so long as and to the extent to which any delay or failure in the
        fulfillment of such obligations is prevented, frustrated, hindered or delayed as a consequence of circumstances of Force Majeure. In the event of any such excused delay, the time for performance (other than a payment obligation hereunder) shall be
        extended for a period equal to the time lost by reason of the delay unless this Agreement has previously been terminated under Article IV or under this Section 7.08. A Party claiming the benefit of this provision shall, as soon as reasonably practicable after the occurrence of any such event, (a) provide written
        notice to the other Party of the nature and extent of any such Force Majeure condition; and (b) use commercially reasonable efforts to remove any such causes and resume performance under this Agreement as soon as reasonably practicable (and in no
        event later than the date that the affected Party resumes providing analogous services to, or otherwise resumes analogous performance under any other agreement for, itself, its Affiliates or any Third Party) unless this Agreement has previously
        been terminated under Article IV or this Section 7.08.

    
      10

      
        

    

    

    

    Section 7.09                           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 7.10                           Survival

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

    

    

    Section 7.11                           Waivers

            of Default. Waiver by a 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 other
        Party. No failure or delay by a 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 7.12                           Dispute

            Resolution.  In the event of any controversy, dispute or claim (a “Dispute”) arising out of or relating to any Party’s rights or obligations
        under this Agreement (whether arising in contract, tort or otherwise), calculation or allocation of the costs of any Service or otherwise arising out of or relating in any way to this Agreement (including the interpretation or validity of this
        Agreement), such Dispute shall be resolved in accordance with the dispute resolution process referred to in Article VII of the Separation and Distribution Agreement.

    

    Section 7.13                           Amendments.
        No provisions of this Agreement or any Ancillary 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 7.14                           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, Annexes and Exhibits hereto) and not to any particular provision of this Agreement; (c) Article, Section,
        Exhibit, Annex and Schedule references are to the Articles, Sections, Exhibits, Annexes 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 [●], 2019.

    

    

    Section 7.15                           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.

    

    

    [Signature page follows]

    
      11

      
        

    

    

    

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

    

    

    	

          	
            KAR AUCTION SERVICES, INC.

          
	

          	

          	

          
	
            

            

          	
            By:

          	

          
	
            

            

          	

          	
            Name:

          
	

          	

          	
            Title:

          
	

          	

          	

          
	

          	
            IAA SPINCO INC.

          
	

          	

          	

          
	

          	
            By:

          	

          
	

          	
             

              

          	
            Name:

          
	

          	
             

              

          	
            Title:

          

    

    

    
      [Signature Page to Transition Services Agreement]Exhibit 10.2

       
        
           

            

          

              

              

          

          TAX MATTERS AGREEMENT

              

          

          by and between

              

          

          KAR AUCTION SERVICES, INC.

              

          

          and

              

          

          IAA SPINCO INC.

              

          

          Dated as of [●], 2019

           

          

          
            
              

          

           TABLE OF CONTENTS 

           

          

          	
                  ARTICLE I

                
	 	

                	 
	
                  DEFINITIONS

                
	 
	
                  Section 1.1

                	
                  General

                	
                  2

                
	 
	
                  ARTICLE II

                
	 	

                	 
	
                  CERTAIN ALLOCATIONS

                
	 	 	 
	
                  Section 2.1

                	
                  General Rule

                	9

                
	
                  Section 2.2

                	
                  Federal Income Tax Relating to Joint Returns

                	
                  10

                
	
                  Section 2.3

                	
                  Federal Income Tax Relating to Separate Returns

                	
                  10

                
	
                  Section 2.4

                	
                  State Tax Relating to Joint Returns

                	
                  10

                
	
                  Section 2.5

                	
                  State Tax Relating to Separate Returns

                	
                  10

                
	
                  Section 2.6

                	
                  Non-U.S. Tax Relating to Joint Returns

                	
                  11

                
	
                  Section 2.7

                	
                  Non-U.S. Tax Relating to Separate Returns

                	
                  11

                
	
                  Section 2.8

                	
                  Non-Income Taxes

                	
                  11

                
	
                  Section 2.9

                	
                  Internal Restructuring Taxes

                	
                  12

                
	
                  Section 2.10

                	
                  Separation Taxes

                	
                  12

                
	
                  Section 2.11

                	
                  Determination of Tax Attributable to a Particular Entity

                	
                  12

                
	
                  Section 2.12

                	
                  Allocation of Employment Taxes and Equity Award Deductions

                	
                  12

                
	
                  Section 2.13

                	
                  Estimated Taxes

                	
                  13

                
	
                  Section 2.14

                	
                  Transaction-Related Losses

                	
                  13

                
	
                  Section 2.15

                	
                  Straddle Periods

                	
                  13

                
	
                  Section 2.16

                	
                  Tax Refunds

                	
                  13

                
	
                  Section 2.17

                	
                  Prior Agreements

                	
                  14

                
	 
	
                  ARTICLE III

                
	 	 	 
	
                  PREPARATION AND FILING OF TAX RETURNS

                
	 	 	 
	
                  Section 3.1

                	
                  KAR’ Responsibility

                	
                  14

                
	
                  Section 3.2

                	
                  Spinco’s Responsibility

                	
                  14

                
	
                  Section 3.3

                	
                  Right To Review Tax Returns

                	
                  14

                
	
                  Section 3.4

                	
                  Cooperation

                	
                  15

                
	
                  Section 3.5

                	
                  Tax Reporting Practices

                	
                  15

                
	
                  Section 3.6

                	
                  Reporting of Transactions

                	
                  15

                
	
                  Section 3.7

                	
                  Payment of Taxes

                	
                  17

                
	
                  Section 3.8

                	
                  Amended Returns and Carrybacks

                	
                  18

                
	
                  Section 3.9

                	
                  Tax Benefits

                	
                  18

                
	
                  Section 3.10

                	
                  Tax Attributes

                	
                  18

                

          

          

          
            
              

          

          
          	
                  ARTICLE IV

                
	 	 	 
	
                  TAX-FREE STATUS OF THE DISTRIBUTION

                
	 	 	 
	
                  Section 4.1

                	
                  Representations and Warranties

                	19

                
	
                  Section 4.2

                	
                  Restrictions on KAR

                	
                  20

                
	
                  Section 4.3

                	
                  Restrictions on Spinco

                	
                  20

                
	 
	
                  ARTICLE V

                
	 	 	 
	
                  INDEMNITY OBLIGATIONS

                
	 	 	 
	
                  Section 5.1

                	
                  Indemnity Obligations

                	
                  22

                
	
                  Section 5.2

                	
                  Indemnification Payments

                	
                  23

                
	
                  Section 5.3

                	
                  Payment Mechanics

                	
                  23

                
	
                  Section 5.4

                	
                  Treatment of Payments

                	
                  23

                
	 
	
                  ARTICLE VI

                
	 	 	 
	
                  TAX CONTESTS

                
	 	 	 
	
                  Section 6.1

                	
                  Notice

                	
                  24

                
	
                  Section 6.2

                	
                  Separate Returns

                	
                  24

                
	
                  Section 6.3

                	
                  Joint Returns.

                	
                  24

                
	
                  Section 6.4

                	
                  Other Tax Contests

                	
                  24

                
	
                  Section 6.5

                	
                  Obligation of Continued Notice

                	
                  25

                
	
                  Section 6.6

                	
                  Settlement Rights

                	
                  25

                
	
                  Section 6.7

                	
                  Tax Contest Costs and Expenses.

                	
                  25

                
	 
	
                  ARTICLE VII

                
	 	 	 
	
                  COOPERATION

                
	 	 	 
	
                  Section 7.1

                	
                  General

                	
                  26

                
	
                  Section 7.2

                	
                  Consistent Treatment

                	
                  26

                
	 
	
                  ARTICLE VIII

                
	 	 	 
	
                  RETENTION OF RECORDS; ACCESS

                
	 	 	 
	
                  Section 8.1

                	
                  Retention of Records

                	
                  27

                
	
                  Section 8.2

                	
                  Access to Tax Records

                	
                  27

                
	 
	
                  ARTICLE IX

                
	 	 	 
	
                  DISPUTE RESOLUTION

                
	 	 	 
	
                  Section 9.1

                	
                  Dispute Resolution Mechanics

                	
                  28

                

          

          

          
            ii

            
              

          

          	
                  ARTICLE X

                
	 	 	 
	
                  MISCELLANEOUS PROVISIONS

                
	 	 	 
	
                  Section 10.1

                	
                  Conflicting Agreements

                	
                  28

                
	
                  Section 10.2

                	
                  Termination

                	
                  28

                
	
                  Section 10.3

                	
                  Interest on Late Payments

                	
                  28

                
	
                  Section 10.4

                	
                  Specific Performance

                	29

                
	
                  Section 10.5

                	
                  Successors

                	
                  29

                
	
                  Section 10.6

                	
                  Application to Present and Future Subsidiaries

                	
                  29

                
	
                  Section 10.7

                	
                  Assignability

                	
                  29

                
	
                  Section 10.8

                	
                  No Fiduciary Relationship

                	
                  29

                
	
                  Section 10.9

                	
                  No Duplication; No Double Recovery.

                	
                  29

                
	
                  Section 10.10

                	
                  Further Assurances

                	29

                
	
                  Section 10.11

                	
                  Survival

                	30

                
	
                  Section 10.12

                	
                  Notices

                	30

                
	
                  Section 10.13

                	
                  Effective Date

                	
                  31

                

           

          

          
            iii

            
              

          

           

      

      
        TAX MATTERS AGREEMENT

         

        

        This TAX MATTERS AGREEMENT (this “Agreement”), is entered into as of [_____], between KAR Auction Services, Inc. (“KAR”), a Delaware corporation, and IAA Spinco Inc. (“Spinco” and, together with
            KAR, the “Parties”), a
            Delaware corporation and a wholly owned subsidiary of KAR.  Capitalized terms used in this Agreement and not otherwise defined herein shall have the meanings ascribed to such terms in the Separation and Distribution Agreement, dated as of the
            date hereof, between the Parties (the “Separation and Distribution Agreement”).

         

          

        R E C I T A L S

         

          

        WHEREAS, the board of directors of KAR (the “Board”) has determined that it is in the best interests of KAR and its stockholders to separate KAR into two separate, publicly traded companies, one for each of (i) the KAR Business, which shall be owned and conducted, directly or indirectly, by KAR and its
            Subsidiaries and (ii) the Spinco Business, which shall be owned and conducted, directly or indirectly, by Spinco and its Subsidiaries;

         

          

        WHEREAS, in order to effect such separation, the Board has determined that it is appropriate, desirable and in the best interests of
            KAR and its stockholders for KAR to undertake the Internal Restructuring and, in connection therewith, effect the Contribution to Spinco which, in exchange therefor, Spinco shall: (i) issue to KAR the Spinco Shares and (ii) agree to pay KAR the
            Cash Distribution;

         

          

        WHEREAS, following the completion of the Internal Restructuring and the Cash Distribution, KAR shall distribute all of the issued and
            outstanding Spinco Shares to holders of the KAR Shares on the Record Date, on a pro rata basis (the “Distribution” and, together with the Internal Restructuring and the Spinco Contribution, the “Transactions”);

         

          

        WHEREAS, Spinco has been incorporated for these purposes and has not engaged in activities except those incidental to its formation and
            in preparation for the Transactions;

         

          

        WHEREAS, as of the date hereof, KAR is the common parent of an affiliated group of domestic corporations that has elected to file
            consolidated U.S. federal income Tax Returns and, as a result of the Distribution, neither Spinco nor any of its Affiliates will be a member of such group after the close of the Distribution Date;

         

          

        WHEREAS, for U.S. federal income tax purposes, it is the intention of the Parties that the Spinco Contribution and the Distribution,
            taken together, will qualify as a transaction that will qualify under Section 355 and Section 368(a)(1)(D) of the Internal Revenue Code of 1986, as amended (the “Code”);

         

          

        WHEREAS, KAR has received the IRS Ruling and the Canadian Tax Ruling; and

         

          

        WHEREAS, the Parties desire to (a) provide for the payment of Tax liabilities and entitlement to refunds thereof, allocate
            responsibility for, and cooperation in, the filing of Tax Returns, and provide for certain other matters relating to Taxes and (b) set forth certain covenants and indemnities relating to the preservation of the Intended Tax Treatment of the
            Transactions.

         

            

        
          1

          
            

        

        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 1.1          General. As used in this Agreement, the following terms shall have the following meanings:

         

          

        “Adjustment” shall mean an adjustment of any item of income, gain, loss, deduction, credit or any other item affecting Taxes of a taxpayer pursuant to a Final Determination.

         

          

        “Affiliate” shall mean, with respect to a Person, any other Person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control
            with, the specified Person. For this purpose, “control” of a Person means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through ownership of voting
            securities, by contract or otherwise.

         

          

        “Agreement” shall have the meaning set forth in the preamble hereto.

         

          

        “Canadian

                Spinco” shall mean 1206397 B.C. Unlimited Liability Company, an unlimited liability company incorporated under the laws of the Province of British Columbia.

         

          

        “Canadian

                Tax Ruling” shall mean an advance income tax ruling from the Canada Revenue Agency
            addressing the tax Canadian tax consequences of certain aspects of the Transactions.

         

          

        “Canadian

                Tax Ruling Request” shall mean any letter filed by KAR with the Canada Revenue Agency
            requesting an advance income tax ruling regarding certain Canadian tax consequences of the Transactions and any amendment or supplement to such Canadian Tax Ruling Request letter.

         

          

        “Controlling

                Party” shall mean, with respect to a Tax Contest, the Party entitled to control such Tax Contest pursuant to Section 6.2, Section 6.3 or Section 6.4 of this Agreement.

            

          

        “Code” shall mean the Internal Revenue Code of 1986, as amended.

         

          

        “Dispute” shall have the meaning set forth in Section 9.1 of this Agreement.

         

          

        “Dispute

                Date” shall have the meaning set forth in Section 9.1 of this Agreement.

         

          

        “Distribution” shall have the meaning set forth in the recitals.

         

          

        
          2

          
            

        

        “Distribution

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

         

          

        “Employee

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

         

          

        “Employment

                Taxes” shall mean those Liabilities (as defined in the Separation and Distribution Agreement) for Taxes which are allocable pursuant to the provisions of the
            Employee Matters Agreement.

         

          

        “Equity

                Award Deduction” shall have the meaning set forth in the Employee Matters Agreement.

         

          

        “Federal Income Tax” shall mean any Tax imposed by
            Subtitle A of the Code other than an Employment Tax.

         

          

        “Final

                Determination” shall mean the final resolution of liability for any Tax for any taxable period, by or as a result of (a) a final decision, judgment, decree or
            other order by any court of competent jurisdiction that can no longer be appealed, (b) a final settlement with the IRS, a closing agreement or accepted offer in compromise under Sections 7121 or 7122 of the Code, or a comparable agreement under
            the Laws of other jurisdictions, which resolves the entire Tax liability for any taxable period, (c) any allowance of a refund or credit in respect of an overpayment of Tax, but only after the expiration of all periods during which such refund
            or credit may be recovered by the jurisdiction imposing the Tax, or (d) any other final resolution, including by reason of the expiration of the applicable statute of limitations or the execution of a pre-filing agreement with the IRS or other
            Taxing Authority.

         

            

        “Group” shall mean either the Spinco Group or the KAR Group, as the context requires.

         

          

        “Income

                Tax” shall mean any federal, state, local or Non-U.S. Tax determined by reference to income, gains, net worth, gross receipts, or any Taxes imposed in lieu of
            such a Tax.

         

          

        “Incremental

                Section 336(e) Tax” shall mean the amount of Taxes, if any, incurred by KAR as a result of making a Section 336(e) Election in excess of the amount of Taxes
            that would have been incurred by KAR had no such Section 336(e) Election been made and the Distribution had been treated as a taxable stock distribution for U.S. federal income tax purposes.

         

          

        “Indemnifying

                Party” shall have the meaning set forth in Section 5.2 of this Agreement.

         

          

        “Indemnitee” shall have the meaning set forth in Section 5.2 of this Agreement.

         

            

        “Intended Tax Treatment” shall mean the qualification of
            the Transactions for the intended tax treatment, including as set forth in the IRS Ruling, Canadian Tax Ruling, any Tax Opinion or the Separation Plan.

         

        

        
          3

          
            

        

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

         

            

        “Internal

                Restructuring Taxes” shall mean those Taxes triggered by, or arising or otherwise incurred as a result of, the Internal Restructuring, except for (i) any Tax resulting from a breach by any Party of any covenant in this Agreement, and (ii) any Tax attributable to any action set out in Section 4.2 or Section 4.3.

         

            

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

         

          

        “IRS

                Ruling” shall mean a private letter ruling from the IRS addressing the tax consequences of certain aspects of the Transactions.

         

          

        “IRS

                Ruling Request” shall mean any letter filed by KAR with the IRS requesting a ruling regarding certain tax consequences of the Transactions and any amendment or
            supplement to such IRS Ruling Request letter.

         

          

        “Joint Return” shall mean (i) any Tax Return that actually
            includes, by election or otherwise, one or more members of the KAR Group together with one or more members of the Spinco Group or (ii) any Tax Return that includes Tax Items attributable to both the KAR Business and the Spinco Business.

         

          

        “KAR” shall have the meaning set forth in the preamble hereto.

         

          

        “KAR Affiliated Group” shall mean an affiliated group (as that term is defined in Section 1504 of the Code and the Treasury Regulations thereunder) of which KAR is the common parent.

         

          

        “KAR

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

         

          

        “KAR Federal Consolidated Income Tax Return” shall mean
            any United States federal consolidated income Tax Return for a KAR Affiliated Group.

         

          

        “KAR

                Group” shall mean KAR and each Person that is a Subsidiary of KAR (other than Spinco and any other member of the Spinco Group).

         

          

        “KAR Separate Return” shall mean any Tax Return of or
            including any member of the KAR Group (including any consolidated, combined or unitary return) that does not include any member of the Spinco Group.

         

          

        “KAR

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

         

          

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

         

        

        
          4

          
            

        

        “Non-Controlling

                Party” shall mean, with respect to a Tax Contest, the Party that is not entitled to control such Tax Contest pursuant to Section 6.2,  Section 6.3 or Section 6.4
            of this Agreement.

         

          

        “Non-Income Tax” shall mean any Tax that is not an Income
            Tax.

         

          

        “Non-U.S. Tax” shall mean any Tax imposed by any foreign
            country or any possession of the United States, or by any political subdivision of any foreign country or United States possession.

         

          

        “Parties” shall mean the parties to this Agreement.

         

          

        “Past

                Practices” shall have the meaning set forth in Section 3.5 of this Agreement.

         

            

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

         

            

        “Post-Distribution

                Period” shall mean any taxable period (or portion thereof) beginning after the Distribution Date, including for the avoidance of doubt, the portion of any
            Straddle Period beginning after the Distribution Date.

         

          

        “Pre-Distribution

                Period” shall mean any taxable period (or portion thereof) ending on or before the Distribution Date, including for the avoidance of doubt, the portion of any
            Straddle Period ending at the end of the day on the Distribution Date.

         

          

        “Preparing Party” shall mean, with respect to a Tax
            Return, the Party that is required to prepare and file any such Tax Return pursuant to Section 3.1 or Section

                3.2 of this Agreement, as applicable.

         

          

        “Proposed

                Acquisition Transaction” shall mean a transaction or series of transactions (or any agreement, understanding or arrangement, within the meaning of Section
            355(e) of the Code and Treasury Regulation Section 1.355-7, or any other Treasury Regulations promulgated thereunder, to enter into a transaction or series of transactions), whether such transaction is supported by Spinco management or
            shareholders, is a hostile acquisition, or otherwise, as a result of which Spinco (or any successor thereto) would merge or consolidate with any other Person or as a result of which one or more Persons would (directly or indirectly) acquire, or
            have the right to acquire, from Spinco (or any successor thereto) and/or one or more holders of Spinco Shares, respectively, any amount of stock of Spinco, that would, when combined with any other direct or indirect changes in ownership of the
            stock of Spinco pertinent for purposes of Section 355(e) of the Code and the Treasury Regulations promulgated thereunder, comprise forty (40) percent or more of (i) the value of all outstanding shares of Spinco as of the date of such
            transaction, or in the case of a series of transactions, the date of the last transaction of such series, or (ii) the total combined voting power of all outstanding shares of voting stock of Spinco as of the date of the such transaction, or in
            the case of a series of transactions, the date of the last transaction of such series.  Notwithstanding the foregoing, a Proposed Acquisition Transaction shall not include (i) the adoption by Spinco of a shareholder rights plan or (ii)
            issuances by Spinco that satisfy Safe Harbor VIII (relating to acquisitions in connection with a person’s performance of services) or Safe Harbor IX (relating to acquisitions by a retirement plan of an employer) of Treasury Regulation Section
            1.355-7(d).  For purposes of determining whether a transaction constitutes an indirect acquisition, (i) any recapitalization or other transaction resulting in a shift of voting power shall be treated as an indirect acquisition of shares of
            stock by the shareholders experiencing an increase in voting power as a result of such recapitalization or other transaction and (ii) any redemption of shares of stock shall be treated as an indirect acquisition of shares of stock by the
            non-exchanging shareholders. This definition and the application thereof is intended to monitor compliance with Section 355(e) of the Code and the Treasury Regulations promulgated thereunder and shall be interpreted accordingly. Any
            clarification of, or change in, the statute or Treasury Regulations promulgated under Section 355(e) of the Code shall be incorporated in this definition and its interpretation.

         

          

        
          5

          
            

        

        “Protective

                Section 336(e) Election” shall have the meaning set forth in Section 3.6(b) of
            this Agreement.

         

          

        “Reasonable

                Basis” shall mean reasonable basis within the meaning of Section 6662(d)(2)(B)(ii)(II) of the Code and the Treasury Regulations promulgated thereunder (or such
            other level of confidence required by the Code at that time to avoid the imposition of penalties).

         

          

        “Record

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

         

          

        “Refund” shall mean any refund, reimbursement, offset, credit, or other similar benefit in respect of Taxes (including any overpayment of Taxes that can be refunded or, alternatively,
            applied against other Taxes payable), including any interest paid on or with respect to such refund of Taxes; provided, however, that the amount of any refund of Taxes shall be net of any Taxes imposed by any Taxing Authority on, related to, or attributable to, the receipt of or accrual of such refund, including any Taxes
            imposed by way of withholding or offset.

         

          

        “Restricted

                Period” shall mean the period which begins with the Distribution Date and ends two (2) years thereafter.

         

          

        “Reviewing Party” shall mean, with respect to a Tax
            Return, the Party that is not the Preparing Party.

         

          

        “Section

                336(e) Allocation Statement” shall have the meaning set forth in Section 3.6(b)
            of this Agreement.

         

          

        “Section

                336(e) Benefit Amount” shall have the meaning set forth in Section 3.6(b) of this
            Agreement.

         

          

        “Section

                336(e) Tax Basis Increase” shall have the meaning set forth in Section 3.6(b) of
            this Agreement.

         

          

        “Separate Return” shall mean a KAR Separate Return or an
            Spinco Separate Return, as the case may be.

         

          

        “Separation

                and Distribution Agreement” shall have the meaning set forth in the preamble hereto.

         

          

        
          6

          
            

        

        “Separation Plan” shall mean the [step plan, dated [●],
            attached hereto as Exhibit [•]].

         

              

        “Separation

                Taxes” shall mean those Taxes triggered by, or arising or otherwise incurred as a result of, the Transactions, except for (i) any Tax resulting from a
          breach by any Party of any covenant in this Agreement, (ii) any Internal Restructuring Taxes and (iii) any Tax attributable to any action set out in Section 4.2 or Section 4.3.

         

            

        “Spinco Actual Estimated Tax Liability” shall mean the
            actual amount of Taxes shown as due and payable after the Distribution, as determined by Past Practices, with respect to which any Spinco Estimated Tax Amount was paid by Spinco to KAR.

         

          

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

         

          

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

         

          

        “Spinco’s Direct Subsidiary”
            shall mean IAA Holdings, Inc., a Delaware corporation.

         

          

        “Spinco Estimated Tax Amount” shall mean the amount of
            estimated Taxes paid by Spinco to KAR with respect to Taxes not yet due and payable prior to the Distribution that would be included on any (i) U.S. consolidated Federal Income Tax Return of KAR or (ii) unitary, combined or other consolidated
            State Tax Return of KAR, in each case, that are attributable to the Spinco Business or any member of the Spinco Group for a Pre-Distribution Period, as determined by Past Practices.

         

          

        “Spinco

                Group” shall mean Spinco and each Person that will be a Subsidiary of Spinco as of immediately after the Effective Time.

         

          

        “Spinco Separate Return” shall mean any Tax Return of or
            including any member of the Spinco Group (including any consolidated, combined or unitary return) that does not include any member of the KAR Group.

         

          

        “Spinco

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

         

            

        “State Tax” means any Tax imposed by any State of the
            United States or by any political subdivision of any such State, and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing.

         

          

        “Straddle

                Period” shall mean any taxable year or other taxable period that begins on or before the Distribution Date and ends after the Distribution Date.

        
          7

          
            

        

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

         

            

        “Tax” or “Taxes” shall mean (i) all taxes, charges, fees, duties, levies, imposts, rates or other assessments or governmental charges of any kind imposed by any U.S. federal, state, local or
            non-U.S. Taxing Authority, including, without limitation, income, gross receipts, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental, custom duties, property, sales, use, license, capital stock, transfer,
            franchise, registration, payroll, withholding, social security, unemployment, disability, value added, alternative or add-on minimum or other taxes, whether disputed or not, and including any interest, penalties, charges or additions
            attributable thereto, (ii) liability for the payment of any amount of the type described in clause (i) above arising as a result of being (or having been) a member of any group or being (or having been) included or required to be included in
            any Tax Return related thereto, and (iii) liability for the payment of any amount of the type described in clauses (i) or (ii) above as a result of any express or implied obligation to indemnify or otherwise assume or succeed to the liability
            of any other Person.

         

          

        “Tax

                Attribute” shall mean net operating losses; capital losses; research and development deductions, credits and carryovers; general business credits and
            carryovers; investment tax credit carryovers; earnings and profits; foreign tax credit carryovers; overall foreign losses; previously taxed income; separate limitation losses; and any other losses, deductions, credits or other comparable items
            that could affect a Tax liability for a past or future taxable period.

         

          

        “Taxing

                Authority” shall mean any Taxing Authority or any subdivision, agency, commission or entity thereof or any quasi-governmental or private body having
            jurisdiction over the assessment, determination, collection or imposition of any Tax (including the IRS).

         

          

        “Tax Certificates” shall mean any certificates of officers
            of KAR and Spinco, provided to PricewaterhouseCoopers, Skadden, Arps, Slate, Meagher & Flom LLP, or any other law or accounting firm in connection with any Tax Opinion, the IRS Ruling or the Canadian Tax Ruling.

         

          

        “Tax

                Contest” shall have the meaning set forth in Section 6.1 of this Agreement.

         

          

        “Tax Expert” shall mean independent Tax counsel of
            recognized national standing or a nationally recognized independent public accounting firm, in either case, with experience in the tax area(s) involved or at issue.

         

          

        “Tax Item” shall mean any item of income, gain, loss,
            deduction, or credit.

         

          

        “Tax

                Law” shall mean the law of any Taxing Authority or political subdivision thereof relating to any Tax.

         

          

        “Tax

                Materials” shall have the meaning set forth in Section 4.1(a) of this Agreement.

         

            

        
          8

          
            

        

        “Tax

                Opinion” shall mean any written opinion of PricewaterhouseCoopers, Skadden, Arps, Slate, Meagher & Flom LLP or any other law or accounting firm, regarding
            certain tax consequences of certain transactions executed as part of the Transactions.

         

            

        “Tax

                Records” shall have the meaning set forth in Section 8.1 of this Agreement.

         

          

        “Tax-Related

                Losses” shall mean (i) all Taxes (including interest and penalties thereon) imposed pursuant to any settlement, Final Determination, judgment or otherwise,
            (ii) all accounting, legal and other professional fees, and court costs incurred in connection with Taxes or Tax Contests, as well as any other out-of-pocket costs incurred in connection with Taxes or Tax Contests; and (iii) all costs, expenses
            and damages associated with stockholder litigation or controversies and any amount paid by KAR (or any of its Affiliates) or Spinco (or any of its Affiliates) in respect of the liability of shareholders, whether paid to shareholders or to the
            IRS or any other Taxing Authority, in each case, resulting from the failure of any transaction to have the Intended Tax Treatment.

         

          

        “Tax

                Return” shall mean any return, report, certificate, form or similar statement or document (including any related supporting information or schedule attached
            thereto and any information return, amended tax return, claim for refund or declaration of estimated tax) supplied to or filed with, or required to be supplied to or filed with, a Taxing Authority, or any bill for or notice related to ad
            valorem or other similar Taxes received from a Taxing Authority, in each case, in connection with the determination, assessment or collection of any Tax or the administration of any laws, regulations or administrative requirements relating to
            any Tax.

         

          

        “Transactions” shall have the meaning set forth in the
            recitals.

         

          

        “Treasury

                Regulations” shall mean the regulations promulgated from time to time under the Code as in effect for the relevant tax period.

         

          

        “Unqualified

                Tax Opinion” shall mean a “will” opinion, without substantive qualifications, of a nationally recognized law or accounting firm, to the effect that a
            transaction will not affect the Intended Tax Treatment of the Transactions.  Any such opinion must assume that the Transactions would have qualified for the Intended Tax Treatment if the transaction in question did not occur.

         

          

         ARTICLE II
            

          CERTAIN ALLOCATIONS

        

         

              

        Section 2.1          General Rule.

         

            

        (a)          Spinco

                Liability. Spinco shall be liable for, and shall indemnify and hold harmless the KAR Group from and against any liability for, Taxes which are allocated to Spinco under this Agreement.

         

          

        (b)          KAR
                Liability.  KAR shall be liable for, and shall indemnify and hold harmless the Spinco Group from and against any liability for, Taxes which are allocated to KAR under this Agreement.

         

          

        
          9

          
            

        

        Section 2.2          Federal Income Tax Relating to Joint Returns.

         

            

        (a)          Spinco shall pay and be responsible for any and all Federal Income
            Taxes due with respect to or required to be reported on any Joint Return (including any increase in such Tax as a result of a Final Determination) which Taxes are attributable to the Spinco Business for all Pre-Distribution Periods.

         

          

        (b)          KAR shall pay and be responsible for any and all Federal Income Taxes
            due with respect to or required to be reported on any Joint Return (including any increase in such Tax as a result of a Final Determination) other than those Federal Income Taxes described in Section 2.2(a) for all Pre-Distribution Periods.

         

          

        Section 2.3          Federal Income Tax Relating to Separate Returns.

         

          

        (a)          Spinco shall pay and be responsible for any and all Federal Income
            Taxes due with respect to or required to be reported on any Spinco Separate Return (including any increase in such Tax as a result of a Final Determination) for all Tax Periods.

         

          

        (b)          KAR shall pay and be responsible for any and all Federal Income Taxes
            due with respect to or required to be reported on any KAR Separate Return (including any increase in such Tax as a result of a Final Determination) for all Tax Periods.

         

          

        Section 2.4          State Tax Relating to Joint Returns.

         

          

        (a)          Spinco shall pay and be responsible for any and all State Taxes due
            with respect to or required to be reported on any Joint Return (including any increase in such Tax as a result of a Final Determination) which Taxes are attributable to the Spinco Business for all Pre-Distribution Periods.

         

          

        (b)          KAR shall pay and be responsible for any and all State Taxes due with
            respect to or required to be reported on any Joint Return (including any increase in such Tax as a result of a Final Determination) other than those State Taxes described in Section

                2.4(a) for all Pre-Distribution Periods.

         

          

        (c)          Spinco shall pay and be responsible for any and all State Taxes due
            with respect to or required to be reported on any Joint Return (including any increase in such Tax as a result of a Final Determination) which Taxes are attributable to the Spinco Business for all Post-Distribution Periods.

         

          

        (d)          KAR shall pay and be responsible for any and all State Taxes due with
            respect to or required to be reported on any Joint Return (including any increase in such Tax as a result of a Final Determination) other than those State Taxes described in Section

                2.4(c) for all Post-Distribution Periods.

         

        

        Section 2.5          State Tax Relating to Separate Returns.

         

          

        
          10

          
            

        

        (a)          Spinco shall pay and be responsible for any and all State Taxes due
            with respect to or required to be reported on any Spinco Separate Return (including any increase in such Tax as a result of a Final Determination) for all Tax Periods.

         

          

        (b)          KAR shall pay and be responsible for any and all State Taxes due with
            respect to or required to be reported on any KAR Separate Return (including any increase in such Tax as a result of a Final Determination) for all Tax Periods.

         

          

        Section 2.6          Non-U.S. Tax Relating to Joint Returns.

         

          

        (a)          Spinco shall pay and be responsible for any and all Non-U.S. Taxes due
            with respect to or required to be reported on any Joint Return (including any increase in such Tax as a result of a Final Determination) which Taxes are attributable to the Spinco Business for all Pre-Distribution Periods.

         

          

        (b)          KAR shall pay and be responsible for any and all Non-U.S. Taxes due
            with respect to or required to be reported on any Joint Return (including any increase in such Tax as a result of a Final Determination) other than those Non-U.S. Taxes described in Section 2.6(a) for all Pre-Distribution Periods.

         

          

        (c)          Spinco shall pay and be responsible for any and all Non-U.S. Taxes due
            with respect to or required to be reported on any Joint Return (including any increase in such Tax as a result of a Final Determination) which Taxes are attributable to Spinco Business for all Post-Distribution Periods.

         

          

        (d)          KAR shall pay and be responsible for any and all Non-U.S. Taxes due
            with respect to or required to be reported on any Joint Return (including any increase in such Tax as a result of a Final Determination) other than those Non-U.S. Taxes described in Section 2.6(c) for all Post-Distribution Periods.

         

          

        Section 2.7          Non-U.S. Tax Relating to Separate Returns.

         

            

        (a)          Spinco shall pay and be responsible for any and all Non-U.S. Taxes due
            with respect to or required to be reported on any Spinco Separate Return (including any increase in such Tax as a result of a Final Determination) for all Tax Periods.

         

          

        (b)          KAR shall pay and be responsible for any and all Non-U.S. Taxes due
            with respect to or required to be reported on any KAR Separate Return (including any increase in such Tax as a result of a Final Determination) for all Tax Periods.

         

          

        Section 2.8          Non-Income Taxes.

         

            

        To the extent not otherwise allocated under this Article II,
            Non-Income Taxes shall be allocated as follows:

         

          

        (a)          Spinco shall pay and be responsible for any and all Non-Income Taxes that are attributable to the Spinco Business for all Pre-Distribution Periods.

         

        

        
          11

          
            

        

        (b)          KAR shall pay and be responsible for any and all Non-Income Taxes
            other than those Non-Income Taxes described in Section 2.8(a) for all Pre-Distribution Periods.

         

          

        (c)          Spinco shall pay and be responsible for any and all Non-Income Taxes
            that are imposed on or attributable to the Spinco Business or Spinco Group for all Post-Distribution Periods.

         

          

        (d)          KAR shall pay and be responsible for any and all Non-Income Taxes that
            are imposed on or attributable to the KAR Business or KAR Group for all Post-Distribution Periods.

         

          

        Section 2.9          Internal Restructuring Taxes. Notwithstanding anything in this Agreement to the contrary, Spinco shall pay and be responsible for any and all Internal Restructuring Taxes.

         

            

        Section 2.10        Separation Taxes. Notwithstanding anything in this Agreement to the contrary, each of KAR and Spinco shall pay and
            be responsible for fifty (50) percent of any and all Separation Taxes.

         

          

        Section 2.11        Determination of Tax Attributable to a Particular Entity.

         

            

        (a)          For purposes of this Agreement, the amount of Taxes attributable to a
            particular entity shall be determined by KAR in a manner consistent with the Past Practices of the KAR Group with respect to the relevant Tax Return (including any past accounting methods, elections and conventions).  Without limiting the
            generality of the foregoing, the following principles shall apply for purposes of determining the amount of Tax attributable to a particular entity:

        
          

          

          (i)          including only Tax Items of
              the relevant entity that were included in the relevant Tax Return (i.e., as though the relevant entity prepared such Tax Return on a stand-alone basis);

           

            

          (ii)          except as provided in Section 2.11(a)(iv) hereof, using all elections, accounting methods and conventions used on the relevant Tax Return for such period;

           

            

          (iii)        applying the highest
              statutory marginal corporate income Tax rate in effect for such taxable period;

           

            

          (iv)        assuming that the relevant
              entity elects not to carry back any net operating losses.

          

          

        

        (b)          In the event a Non-Income Tax is attributable or traceable to a
            specific asset, then such Tax shall be attributable to the entity that owns the relevant asset.

         

          

        Section 2.12        Allocation of Employment Taxes and Equity Award Deductions. Liability for Employment Taxes and the allocation or
            apportionment of Equity Award Deductions shall be governed by the Employee Matters Agreement.

         

          

        
          12

          
            

        

        Section 2.13        Estimated

                Taxes.

         

            

        (a)          With respect to any Spinco Estimated Tax Amount that Spinco has paid
            to KAR:

         

          

        
          
            (i)          If the Spinco Estimated Tax Amount is less than the Spinco Actual Estimated Tax Liability, Spinco shall pay KAR the amount of such excess pursuant to the terms of Section 3.7(b); and

             

              

          

        

        
          
            (ii)         If the Spinco Estimated Tax Amount is greater than the Spinco Actual Estimated Tax Liability, KAR shall pay to Spinco the amount
                of such excess no later than fifteen (15) Business Days after the due date (taking into account any applicable extensions) for the Tax Return with respect to which
                  the Spinco Actual Estimated Tax Liability pertains.

             

                

          

        

        Section 2.14        Transaction-Related Losses.

         

            

        Notwithstanding anything in this Agreement to the contrary:

         

          

        (a)          Spinco shall be responsible for (i) any and all Tax-Related Losses for
            which Spinco is responsible pursuant to Section 5.1(b) of this Agreement and (ii) any and all Tax-Related Losses arising out of, based upon, or relating or
            attributable to any breach of or inaccuracy in, or failure to perform, as applicable, any representation, covenant, or obligation of any member of the Spinco Group pursuant to this Agreement.

         

          

        (b)          KAR shall be responsible for (i) any and all Tax-Related Losses for
            which KAR is responsible pursuant to Section 5.1(a) of this Agreement and (ii) any and all Tax-Related Losses arising out of, based upon, or relating or attributable
            to any breach of or inaccuracy in, or failure to perform, as applicable, any representation, covenant, or obligation of any member of the KAR Group pursuant to this Agreement.

         

          

        Section 2.15         Straddle Periods. If the taxable year or other taxable period of KAR or any member of the KAR Group or Spinco or any member of the Spinco Group does not close on the Distribution Date,
            then the allocation or apportionment of any Tax Items attributable to the portion of the Straddle Period ending on, or beginning after, the Distribution Date shall be deemed equal to the amount that would have been so attributable if such
            taxable year had closed on the Distribution Date; provided that (i) exemptions, allowances, or deductions that are calculated on an annual or periodic
            basis, and (ii) property Taxes or other Non-Income Taxes that are calculated on an annual or periodic basis and not assessed with respect to a transaction or series of transactions, shall be allocated between such portions in proportion to the
            number of days in each such portion. Notwithstanding the foregoing, the allocation or apportionment of Equity Award Deductions shall be governed by the Employee Matters Agreement.

         

          

        Section 2.16        Tax Refunds.

         

            

        (a)          KAR shall be entitled to all Refunds for Taxes for which KAR is
            responsible pursuant to this Agreement, and Spinco shall be entitled to all Refunds for Taxes for which Spinco is responsible pursuant to this Agreement.

         

          

        
          13

          
            

        

        (b)          A Party receiving a Refund to which the other Party is entitled
            pursuant to this Agreement shall pay the amount to which such other Party is entitled within fifteen (15) Business Days after the receipt of the Refund.  For purposes of this Section

                2.16(b), any Refund that arises as a result of an offset, credit, or other similar benefit in respect of Taxes other than a receipt of cash shall be deemed to be received on the earlier of (i) the date on which a Tax Return is
            filed claiming such offset, credit, or other similar benefit and (ii) the date on which payment of the Tax which would have otherwise been paid absent such offset, credit, or other similar benefit is due (determined without taking into account
            any applicable extensions).

         

          

        (c)          In the event that one Party receives a Refund to which the other Party
            is entitled, the amount of Refund the Party receiving such Refund shall be required to pay to the Party entitled to such Refund shall be net of any and all Tax-Related Losses or other costs and expenses incurred by the Party receiving the
            Refund (or any of such Party’s Affiliates) in connection with the receipt of such Refund or the payment of such Refund to the other Party.

         

          

        Section 2.17        Prior Agreements. Except as set forth in this Agreement and in consideration of the mutual indemnities and other obligations of this Agreement, any and all prior Tax sharing or allocation agreements
            or practices between any member of the KAR Group and any member of the Spinco Group shall be terminated with respect to the Spinco Group and the KAR Group as of the Distribution Date.  No member of either the Spinco Group or the KAR Group shall
            have any continuing rights or obligations under any such agreement.

         

          

        ARTICLE III

         

          

        PREPARATION AND FILING OF TAX RETURNS

         

              

        Section 3.1          KAR’ Responsibility.  KAR shall prepare and file when due (taking into account any applicable extensions), or shall cause to be prepared and filed, all Joint Returns and all KAR Separate Returns.

         

          

        Section 3.2          Spinco’s Responsibility.  Spinco shall prepare and file when due (taking into account any applicable extensions), or shall cause to be prepared and filed, all Tax Returns required to be filed by or
            with respect to members of the Spinco Group other than those Tax Returns which KAR is required to prepare and file under Section 3.1. The Tax Returns
            required to be prepared and filed by Spinco under this Section 3.2 shall include any Spinco Separate Returns.

         

          

        Section 3.3          Right To Review Tax Returns. To the extent that the positions taken on any Tax Return (i) directly relate to matters for which the Reviewing Party may have an indemnification obligation to the
            Preparing Party, or that may give rise to a refund to which the Reviewing Party would be entitled under this Agreement or (ii) would reasonably be expected to materially adversely affect the Tax position of the Reviewing Party, the Preparing
            Party shall prepare the portions of such Tax Return that relates to the business of the Reviewing Party (the KAR Business or the Spinco Business, as the case may be), shall provide a draft of such portion of such Tax Return to the Reviewing
            Party for its review and comment at least ten (10) Business Days prior to the due date for such Tax Return (taking into account any applicable extensions). The Reviewing Party shall thereafter have five (5) Business Days to review such portion
            of such Tax Return and provide reasonable comments, if any, on such portion of such Tax Return to the Preparing Party, provided, however, that the Reviewing Party shall provide any reasonable comments it may have to the Preparing Party no later than two (2) Business Days prior to the due date for such Tax
            Return (taking into account any applicable extensions). The Preparing Party shall use commercially reasonable efforts to modify such portion of such Tax Return before filing such Tax Return to include the Reviewing Party’s reasonable comments,
            provided, however, that nothing herein shall prevent the Preparing
            Party from timely filing any such Tax Return and, provided, further,
            that KAR shall be entitled to resolve any issues arising out of the review of any such portion of a Tax Return in its sole discretion.

         

        

        
          14

          
            

        

        Section 3.4          Cooperation.  The Parties shall provide, and shall cause their Affiliates to provide, assistance and cooperation to one another in accordance with Article VII with respect to the preparation and filing of Tax Returns, including providing information required to be provided in Article VIII.

         

            

        Section 3.5          Tax Reporting Practices.  Except as provided in Section 3.6, with respect to any Tax Return for any taxable period that begins on or before the second anniversary of the Distribution Date with respect to which Spinco is the Preparing Party, such Tax Return shall
            be prepared in a manner (i) consistent with past practices, accounting methods, elections and conventions (“Past Practices”) used by KAR in preparing similar Tax Returns (unless there is no Reasonable Basis for the use of such Past
            Practices), and to the extent any items are not covered by Past Practices (or in the event that there is no Reasonable Basis for the use of such Past Practices), in accordance with reasonable Tax accounting practices selected by Spinco; and
            (ii) that, to the extent consistent with clause (i), minimizes the overall amount of Taxes due and payable on such Tax Return for all of the Parties by cooperating in making such elections or applications for group or other relief or allowances
            available in the taxing jurisdiction in which such Tax Return is filed. Spinco shall not take any action inconsistent with the assumptions (including items of income, gain, deduction, loss and credit) made in determining all estimated or
            advance payments of Taxes on or prior to the Distribution Date. In addition, Spinco shall not be permitted, and shall not permit any member of the Spinco Group, to make a change in any of its methods of accounting for Tax purposes until all
            applicable statutes of limitations for all Pre-Distribution Periods and Straddle Periods have expired, unless otherwise required by applicable Tax Law.

         

            

        Section 3.6          Reporting of Transactions.

         

          

        (a)          KAR and Spinco shall timely file any appropriate information and
            statements (including as required by Section 6045B of the Code and Section 1.355-5 of the Treasury Regulations and, to the extent applicable, Section 1.368-3 of the Treasury Regulations) to report each step of the Transactions in accordance
            with the Intended Tax Treatment.  The Tax treatment of any step in or portion of the Transactions shall be reported on each applicable Tax Return consistently with the treatment thereof in any Tax Opinion, taking into account the jurisdiction
            in which such Tax Returns are filed, unless there is no Reasonable Basis for such Tax treatment.  In the event that a Party shall determine that there is no Reasonable Basis for such Tax treatment, such Party shall notify the other Party no
            later than twenty (20) Business Days prior to filing the relevant Tax Return and the Parties shall attempt in good faith to agree on the manner in which the relevant portion of the Transactions shall be reported.

         

          

        
          15

          
            

        

        (b)          After the date hereof, the Parties shall cooperate in good faith to
            analyze the impact of a protective election under Section 336(e) of the Code and the Treasury Regulations issued thereunder for Spinco and each member of the Spinco Group with respect to the Distribution (a “Protective Section 336(e) Election”).  Solely in the event that KAR determines, in its sole discretion, to make a Protective Section 336(e) Election:

         

          

        
          
            (i)          KAR and Spinco shall cooperate in making a timely protective election under Section 336(e) of the Code and Section 1.336-2(j) of the Treasury Regulations (and any similar provision of applicable state or local
                Tax Law) for each member of the Spinco Group that KAR determines for U.S. federal income tax purposes with respect to the Distribution in accordance with Section 1.336-2(h) of the Treasury Regulations and filing any statements, amending any
                Tax Returns or taking such other action reasonably necessary to carry out the Protective Section 336(e) Election. For the avoidance of doubt, it is intended that the Protective Section 336(e) Election, if made, will have no effect unless,
                pursuant to a Final Determination, the Distribution is treated as a “qualified stock disposition” within the meaning of Section 1.336-1(b)(6) of the Treasury Regulations.

                

              

          

        

        
          
            (ii)         In the event that a Protective Section 336(e) Election is made and becomes effective, KAR shall determine, in its sole discretion, the “Aggregate Deemed Asset Disposition Price” and the “Adjusted Grossed-Up
                Basis” (each as defined under applicable Treasury Regulations) and the allocation of such Aggregate Deemed Asset Disposition Price and Adjusted Grossed-Up Basis among the disposition date assets of Spinco and its Subsidiaries, each in
                accordance with the applicable provisions of Section 336(e) of the Code and applicable Treasury Regulations (the “Section 336(e) Allocation Statement”),
                and shall provide a copy of such Section 336(e) Allocation Statement to Spinco.  To the extent the Protective Section 336(e) Election is made and becomes effective, each Party agrees not to take any position (and to cause each of its
                Affiliates not to take any position) that is inconsistent with the Protective Section 336(e) Election, including the Section 336(e) Allocation Statement, on any Tax Return, in connection with any Tax Contest or for any other Tax purposes
                (in each case, excluding any position taken for financial accounting purposes), except as may be required by a Final Determination.

             

              

          

        

        
          
            (iii)        In the event that a Protective Section 336(e) Election is made and becomes effective and Spinco or any member of the Spinco Group realizes an increase in Tax basis as a result of such Protective Section 336(e)
                Election (the “Section 336(e) Tax Basis Increase”), then the cash Tax savings actually realized by Spinco or any member of the Spinco Group as a result
                of the Section 336(e) Tax Basis Increase if, as and when realized by Spinco or such member of the Spinco Group arising from the Section 336(e) Tax Basis Increase (including, for the avoidance of doubt, any such additional Section 336(e) Tax
                Basis Increase attributable to payments made pursuant to this Section 3.6(b)) resulting from the Protective Section 336(e) Election, determined on a
                “with and without” basis (treating any deductions or amortization attributable to the step up in Tax basis resulting from the Protective 336(e) Election, or any other recovery of such step up, as the last items claimed for any taxable year,
                including after the utilization of any available net operating loss carryforwards) (the “Section 336(e) Benefit Amount”) shall be allocated as follows:
                (x) first, to KAR in the amount of the Incremental Section 336(e) Tax and (y) thereafter, shared between KAR and Spinco in the same proportion as the Taxes imposed on the Transactions giving rise to the Section 336(e) Tax Basis Increase
                were borne by KAR and Spinco (after giving effect to the indemnification obligations in this Agreement).

             

              

          

        

        
          
            
              16

              
                

            

            (iv)        Within fifteen (15) Business Days of actually realizing any Section 336(e) Benefit Amount, the Party realizing the Section 336(e) Benefit Amount (including through the realization of such Section 336(e) Benefit
                Amount by such Party’s Affiliates) shall (i) notify the other Party of any such Section 336(e) Benefit Amount, including by providing such other Party with reasonable documentation of such Section 336(e) Benefit Amount and (ii) pay the
                other Party the amount of any such Section 336(e) Benefit Amount to which such other Party is entitled pursuant to Section 3.6(b)(iii); provided, however, that the amount of any such payment shall be net
                of any and all Tax-Related Losses or other costs and expenses incurred by the Party realizing the Section 336(e) Benefit Amount in connection with the realization of such Section 336(e) Benefit Amount or the payment of such Section 336(e)
                Benefit Amount to other Party.

              

              

          

        

        
          
            (v)         For purposes of this Section 3.6(b), a Party shall be deemed to have realized a Section 336(e) Benefit Amount on the
                earlier of: (i) the date on which a Tax Return is filed (taking into account any applicable extensions) that reflects actual cash tax savings as a result of any Section 336(e) Benefit Amount and (ii) the date on which payment of the
                relevant Tax which would have been due and payable absent any such Section 336(e) Tax Benefit Amount (determined without taking into account any applicable extensions).

            

            

          

        

        Section 3.7          Payment of Taxes.

         

            

        (a)          With respect to any Tax Return required to be filed pursuant to this
            Agreement, the Preparing Party shall remit or cause to be remitted to the applicable Taxing Authority in a timely manner any Taxes due in respect of any such Tax Return. The obligation to make payments pursuant to this Section 3.7(a) shall not affect a Party’s right, if any, to receive payments under Article V or otherwise be
            indemnified with respect to that Tax liability.

         

          

        (b)          The Preparing Party shall, no later than five (5) Business Days before
            the due date (taking into account any applicable extensions) of any Tax Return described in Section 3.1 or Section 3.2, notify the other Party of any amount (or any portion of any such amount) shown as due on that Tax Return for which the other Party must indemnify the Preparing Party under this Agreement. The other Party
            shall pay such amount to the Preparing Party no later than the due date (taking into account any applicable extensions) of the relevant Tax Return. A failure by an Indemnitee to give notice as provided in this Section 3.7(b) shall not relieve the Indemnifying Party’s indemnification obligations under this Agreement, except to the extent that the Indemnifying Party has been actually prejudiced by such
            failure.

         

          

        
          17

          
            

        

        Section 3.8          Amended Returns and Carrybacks.

         

            

        (a)          Spinco shall not, and shall not permit any member of the Spinco Group
            to, file or allow to be filed any request for an Adjustment for any Pre-Distribution Period or Straddle Period without the prior written consent of KAR, such consent to be exercised in KAR’s sole and absolute discretion.

         

          

        (b)          Spinco shall, and shall cause each member of the Spinco Group to, make
            any available elections to waive the right to carry back any Tax Attribute from a taxable period or portion thereof ending after the Distribution Date to a taxable period or portion thereof ending on or before the Distribution Date.

         

          

        (c)          Spinco shall not, and shall cause each member of the Spinco Group not
            to, make any affirmative election to carry back any Tax Attribute from a taxable period or portion thereof ending after the Distribution Date to a taxable period or portion thereof ending on or before the Distribution Date, without the prior
            written consent of KAR, such consent to be exercised in KAR’s sole and absolute discretion.

         

          

        (d)          Receipt of consent by Spinco or a member of the Spinco Group from KAR
            pursuant to the provisions of this Section 3.8 shall not limit or modify Spinco’s continuing indemnification obligation pursuant to Article V.

         

            

        Section 3.9          Tax Benefits.  Except as otherwise provided in Section 3.6(b), if (a) one Party is responsible for a Tax
            pursuant to this Agreement or under applicable Tax Law and (b) the other Party is entitled to a deduction, credit or other Tax benefit relating to such Tax, then the Party entitled to such deduction, credit or other Tax benefit shall pay to the
            Party responsible for such Tax the amount of any cash Tax savings realized by the entitled Party as a result of such deduction, credit or other Tax benefit, net of any Taxes imposed by any Taxing Authority on, related to, or attributable to,
            the receipt of or accrual of such Tax benefit, including any Taxes imposed by way of withholding or offset or any Tax-Related Losses or other costs and expenses incurred by the Party receiving the Tax benefit (or any of such Party’s Affiliates)
            in connection with the receipt of such Tax benefit or the payment of such Tax benefit to the other Party. To the extent that the amount of any Tax benefit in respect of which a payment was made under this Section 3.9 is later reduced by a Taxing Authority or in a Tax Contest, the Party that received such payment shall refund such payment to the Party that made such payment to the extent
            of such reduction.  The Parties shall cooperate in good faith to determine the existence of and size of any such Tax benefit; provided, however, that if the Parties cannot agree on such determination, KAR shall be entitled to make a final determination of the existence and size of any such Tax
            benefit in its sole discretion exercised in good faith.

         

          

        Section 3.10        Tax Attributes.

         

          

        (a)          KAR shall reasonably and in good faith advise Spinco in writing of the
            amount, if any, of any Tax Attributes arising in a Pre-Distribution Period that shall be allocated or apportioned to the Spinco Group under applicable Law; provided, however, that with respect to the determination of Tax basis of assets transferred to Spinco, KAR
            shall make such determination reasonably and in good faith and consistent with the books and records of KAR and its Subsidiaries.  KAR, all members of the KAR Group, Spinco and all members of the Spinco Group shall prepare all Tax Returns in
            accordance with such written notice unless there is not a Reasonable Basis for such determination or otherwise required by a Final Determination.  For the avoidance of doubt, KAR shall not be required to create or cause to be created any books
            and records or reports or other documents based thereon that are of the type customarily prepared by outside legal, financial or accounting advisors (including, without limitation, “earnings & profits studies,” “basis studies” or similar
            determinations) in order to comply with this Section 3.10.

         

        

        
          18

          
            

        

        (b)          To the extent that the amount of any Tax Attribute is later reduced or
            increased by a Taxing Authority or Tax Contest, such reduction or increase shall be allocated to the Party to which such Tax Attribute was allocated pursuant to Section 3.10(a).

         

            

        (c)          Notwithstanding the foregoing in this Section 3.10, the allocation or apportionment of Equity Award Deductions shall be governed by the Employee Matters Agreement.

         

          

        ARTICLE IV

         

          

        TAX-FREE STATUS OF THE DISTRIBUTION

         

              

        Section 4.1          Representations and Warranties.

         

          

        (a)          KAR, on behalf of itself and all other members of the KAR Group,
            hereby represents and warrants that (i) it has examined the IRS Ruling, each submission to the IRS in connection with the IRS Ruling, including the IRS Ruling Request, the Canadian Tax Ruling, each submission to the Canada Revenue Agency in
            connection with the Canadian Tax Ruling, including the Canadian Tax Ruling Request, the Tax Opinions, the Separation Plan, the Tax Certificates and any other materials delivered or deliverable in connection with the rendering of the Tax
            Opinions and the creation of the Separation Plan (collectively, the “Tax Materials”) and (ii) the facts presented and representations made therein, to the extent descriptive of or otherwise relating to KAR or any member of the KAR Group or the KAR Business,
            were, at the time presented or represented and from such time until and including the Distribution Date, true, correct, and complete in all material respects. KAR, on behalf of itself and all other members of the KAR Group, hereby confirms and
            agrees to comply with any and all covenants and agreements in the Tax Materials applicable to KAR or any member of the KAR Group or the KAR Business.

         

            

        (b)          Spinco, on behalf of itself and all other members of the Spinco Group,
            hereby represents and warrants that (i) it has examined the Tax Materials and (ii) the facts presented and representations made therein, to the extent descriptive of or otherwise relating to Spinco or any member of the Spinco Group or the
            Spinco Business, were, at the time presented or represented and from such time until and including the Distribution Date, true, correct, and complete in all material respects. Spinco, on behalf of itself and all other members of the Spinco
            Group, hereby confirms and agrees to comply with any and all covenants and agreements in the Tax Materials applicable to Spinco or any member of the Spinco Group or the Spinco Business.

         

        

        
          19

          
            

        

        (c)          Each of KAR, on behalf of it itself and all other members of the KAR
            Group, and Spinco, on behalf of itself and all other members of the Spinco Group represents and warrants that it knows of no fact (after due inquiry) that may cause the Transactions not to qualify for the Intended Tax Treatment.

         

          

        (d)          Each of KAR, on behalf of it itself and all other members of the KAR
            Group, and Spinco, on behalf of itself and all other members of the Spinco Group represents and warrants that it has no plan or intent to take any action which is inconsistent with any statements or representations made in the Tax Materials.

         

          

        Section 4.2          Restrictions on KAR.

         

          

        (a)          KAR, on behalf of itself and all other members of the KAR Group,
            hereby covenants and agrees that no member of the KAR Group will take, fail to take, or to permit to be taken: (i) any action where such action or failure to act would be inconsistent with or cause to be untrue any statement, information,
            covenant or representation in the Tax Materials, or (ii) any action which adversely affects or could reasonably be expected to adversely affect the Intended Tax Treatment of the Transactions.

         

          

        Section 4.3          Restrictions on Spinco.

         

            

        (a)          Spinco, on behalf of itself and all other members of the Spinco Group,
            hereby covenants and agrees that no member of the Spinco Group will take, fail to take, or to permit to be taken: (i) any action where such action or failure to act would be inconsistent with or cause to be untrue any statement, information,
            covenant or representation in the Tax Materials, or (ii) any action which adversely affects or could reasonably be expected to adversely affect the Intended Tax Treatment of the Transactions.

         

          

        (b)          During the Restricted Period, Spinco:

         

          

        
          
            (i)          shall continue and cause to be continued the active conduct of the Spinco Business for purposes of Section 355(b)(2) of the Code, taking into account Section 355(b)(3) of the Code, as conducted immediately
                prior to the Distribution,

             

              

          

        

        
          
            (ii)         shall not voluntarily dissolve or liquidate itself or any of its Affiliates (including any action that is a liquidation for U.S. federal income tax purposes),

             

              

          

        

        
          
            (iii)        shall not (and shall not cause or permit any of its Affiliates to) (1) enter into any Proposed Acquisition Transaction or, to the extent Spinco has the right to prohibit any Proposed Acquisition Transaction,
                permit any Proposed Acquisition Transaction to occur, (2) redeem or otherwise repurchase (directly or through an Affiliate) any Spinco stock, or rights to acquire Spinco stock, other than through stock purchases meeting the requirements of
                section 4.05(1)(b) of Revenue Procedure 96-30, 1996-1 C.B. 696, (3) amend its certificate of incorporation (or other organizational documents), or take any other action, whether through a stockholder vote or otherwise, affecting the
                relative voting rights of its capital stock (including through the conversion of any capital stock into another class of capital stock), (4) merge or consolidate with any other Person or (5) take any other action or actions (including any
                action or transaction that would be reasonably likely to be inconsistent with any representation made in the Tax Certificates) which in the aggregate would, when combined with any other direct or indirect changes in ownership of Spinco
                capital stock pertinent for purposes of Section 355(e) of the Code, have the effect of causing or permitting one or more Persons (whether or not acting in concert) to acquire directly or indirectly stock representing a fifty-percent or
                greater interest in Spinco or would reasonably be expected to result in a failure to preserve the Intended Tax Treatment of the Transactions; and

             

              

          

        

        
          
            
              20

              
                

            

            
            (iv)        shall not and shall not permit any member of the Spinco Group, to sell, transfer, or otherwise dispose of or agree to, sell, transfer or otherwise dispose (including in any transaction treated for federal
                income tax purposes as a sale, transfer or disposition) of assets (including, any shares of capital stock of a Subsidiary) that, in the aggregate, constitute more than 20 percent of the consolidated gross assets of Spinco or the Spinco
                Group.  The foregoing sentence shall not apply to (1) sales, transfers, or dispositions of assets in the ordinary course of business, (2) any cash paid to acquire assets from an unrelated Person in an arm’s-length transaction, (3) any
                assets transferred to a Person that is disregarded as an entity separate from the transferor for federal income tax purposes or (4) any mandatory or optional repayment (or pre-payment) of any indebtedness of Spinco or any member of the
                Spinco Group.  The percentages of gross assets or consolidated gross assets of Spinco or the Spinco Group, as the case may be, sold, transferred, or otherwise disposed of, shall be based on the fair market value of the gross assets of
                Spinco and the members of the Spinco Group as of the Distribution Date.  For purposes of this Section 4.3(b)(iv), a merger of Spinco or one of its
                Subsidiaries with and into any Person that is not a wholly owned Subsidiary of Spinco shall constitute a disposition of all of the assets of Spinco or such Subsidiary.

             

              

          

        

        (c)          During the period which begins with the Distribution Date and ends
            three (3) years thereafter, Spinco:

         

          

        
          
            (i)          shall not (and shall not cause or permit any of its Affiliates to) (1) cease to control Canadian Spinco or Spinco’s Direct Subsidiary or (2) dispose of any shares of Canadian Spinco or Spinco’s Direct
                Subsidiary that were held at the time of the Distribution by Spinco or any of its Affiliates; and

             

              

          

        

        
          
            (ii)         shall not (and shall not cause or permit any of its Affiliates to) sell, transfer, or otherwise dispose of any assets, or otherwise take any action that would result in the shares of Canadian Spinco having a
                value greater than ten (10) percent of the total value of the shares of either (1) Spinco or (2) Spinco’s Direct Subsidiary.

             

              

            
              21

              
                

            

          

        

        (d)          Notwithstanding the restrictions imposed by Section 4.3(a), (b), or  (c), Spinco or a member of the Spinco Group may take any of the actions or transactions described therein if Spinco either (i) obtains an Unqualified Tax Opinion in form and
            substance reasonably satisfactory to KAR or (ii) obtains the prior written consent of KAR waiving the requirement that Spinco obtain an Unqualified Tax Opinion, such waiver to be provided in KAR’s sole and absolute discretion.  KAR’s evaluation
            of an Unqualified Tax Opinion may consider, among other factors, the appropriateness of any underlying assumptions, representations, and covenants made in connection with such opinion.  Spinco shall bear all costs and expenses of securing any
            such Unqualified Tax Opinion and shall reimburse KAR for all reasonable out-of-pocket expenses that KAR or any of its Affiliates may incur in good faith in seeking to obtain or evaluate any such Unqualified Tax Opinion.  Neither the delivery of
            an Unqualified Tax Opinion nor KAR’s waiver of Spinco’s obligation to deliver an Unqualified Tax Opinion shall limit or modify Spinco’s continuing indemnification obligation pursuant to Article V.

         

            

        ARTICLE V

         

          

        INDEMNITY OBLIGATIONS

         

              

        Section 5.1          Indemnity Obligations.

         

            

        (a)          KAR shall indemnify and hold harmless Spinco from and against, and
            will reimburse Spinco for, (i) all liability for Taxes allocated to KAR pursuant to this Agreement, (ii) all Tax-Related Losses arising out of, based upon, or relating or attributable to any breach of or inaccuracy in, or failure to perform, as
            applicable, any representation, covenant, or obligation of any member of the KAR Group pursuant to this Agreement (including but not limited to any of the foregoing contained in Section

                4.1 or Section 4.2) or any Tax Materials, (iii) any other Tax-Related Loss
            resulting (for the avoidance of doubt, in whole or in part) from an acquisition after the Distribution of any stock or assets of KAR (or any KAR Affiliate) by any means whatsoever by any Person, and (iv) any other amounts KAR is required to pay
            to Spinco pursuant to the terms of this Agreement.

         

            

        (b)          Without regard to whether an Unqualified Tax Opinion may have been
            provided or whether any action is permitted or consented to hereunder and notwithstanding anything else to the contrary contained herein, Spinco shall indemnify and hold harmless KAR from and against, and will reimburse KAR for, (i) all
            liability for Taxes allocated to Spinco pursuant to this Agreement, (ii) all Tax-Related Losses arising out of, based upon, or relating or attributable to any breach of or inaccuracy in, or failure to perform, as applicable, any representation,
            covenant, or obligation of any member of the Spinco Group pursuant to this Agreement (including but not limited to any of the foregoing contained Section 4.1 or Section 4.2) or any Tax Materials, (iii) any other Tax-Related Loss resulting (for the avoidance of doubt, in whole or in part) from an acquisition after the Distribution
            of any stock or assets of Spinco (or any Spinco Affiliate) by any means whatsoever by any Person, (iv) the amount of any Refund received by any member of the Spinco Group
            that is allocated to KAR pursuant to Section 2.16(a), and (v) any other amounts Spinco is required to pay to KAR pursuant to the terms of this Agreement (including, but not limited to, any amounts Spinco is required to pay KAR pursuant to Section 3.6(b)).

         

          

        
          22

          
            

        

        (c)          To the extent that any Tax-Related Loss is subject to indemnity
            pursuant to both Section 5.1(a) and Section 5.1(b), each of KAR and Spinco shall pay and
            be responsible for fifty (50) percent of such Tax-Related Loss.

         

          

        Section 5.2          Indemnification Payments.

         

            

        (a)          Except as otherwise provided in this Agreement, if either Party (the “Indemnitee”) is required to
            pay to a Taxing Authority a Tax or to another Person a payment in respect of a Tax that the other Party (the “Indemnifying

                Party”) is liable for under this Agreement, including as the result of a Final Determination, the Indemnitee shall notify the Indemnifying Party, in writing,
            of its obligation to pay such Tax and, in reasonably sufficient detail, its calculation of the amount due by such Indemnifying Party to the Indemnitee, including any other Tax-Related Losses attributable thereto.  The Indemnifying Party shall
            pay such amount, including any other Tax-Related Losses attributable thereto, to the Indemnitee no later than the later of (i) five (5) Business Days prior to the date on which such payment is due to the applicable Taxing Authority or (ii)
            fifteen (15) Business Days after the receipt of notice from the other Party.

         

          

        (b)          If, as a result of any change or redetermination made with respect to
            Article II, any amount previously allocated to and borne by one Party pursuant to the provisions of Article

                II  is thereafter allocated to the other Party, then, no later than fifteen (15) Business Days after such change or redetermination, such other Party shall pay to such Party the amount previously borne by such Party which is
            allocated to such other Party as a result of such change or redetermination.

         

          

        Section 5.3          Payment Mechanics.

         

          

        (a)          Subject to Section 10.7, all payments under this Agreement shall be made by KAR directly to Spinco and by Spinco directly to KAR; provided, however, that if the Parties mutually agree with respect to any such indemnification payment, any member of the KAR Group, on the one hand, may make such indemnification
            payment to any member of the Spinco Group, on the other hand, and vice versa.  All indemnification payments shall be treated in the manner described in Section 5.4.

         

            

        (b)          In the case of any payment of Taxes made by a Preparing Party or
            Indemnitee pursuant to this Agreement for which such Preparing Party or Indemnitee, as the case may be, has received a payment from the other Party, such Preparing Party or Indemnitee shall provide to the other Party a copy of any official
            government receipt received with respect to the payment of such Taxes to the applicable Taxing Authority (or, if no such official governmental receipts are available, executed bank payment forms or other reasonable evidence of payment).

         

          

        Section 5.4          Treatment of Payments.  The Parties agree that any payment made among the Parties pursuant to this Agreement shall be treated, to the extent permitted by law, for all U.S. federal income tax
            purposes as either (i) a non-taxable contribution by KAR to Spinco, or (ii) a distribution by Spinco to KAR, in each case, made immediately prior to the Distribution.  Any Tax indemnity payment made by a Party under this Agreement shall be
            increased as necessary so that after making all payments in respect to Taxes imposed on or attributable to such indemnity payment, the recipient Party receives an amount equal to the sum it would have received had no such Taxes been imposed.

         

        

        
          23

          
            

        

        ARTICLE VI

         

          

        TAX CONTESTS

         

              

        Section 6.1          Notice.  Each Party shall notify the other Party in writing within ten (10) Business Days after receipt by such Party or any member of its Group of a written communication from any Taxing Authority
            with respect to any pending or threatened audit, claim, dispute, suit, action, proposed assessment or other proceeding (a “Tax Contest”) concerning any Taxes for which the other Party may be liable pursuant to this Agreement,
            and thereafter shall promptly forward or make available to such Party copies of notices and communications relating to such Tax Contest.  A failure by an Indemnitee to give notice as provided in this Section 6.1 (or to promptly forward any such notices or communications) shall not relieve the Indemnifying Party’s indemnification obligations under this Agreement, except to the extent that the
            Indemnifying Party shall have been actually prejudiced by such failure.

         

          

        Section 6.2          Separate Returns. In the case of any Tax Contest with respect to any Separate Return, the Party having the liability for the Tax pursuant to this Agreement shall have the sole responsibility and
            right to control the prosecution of such Tax Contest, including the exclusive right to communicate with agents of the applicable Taxing Authority and to control, resolve, settle, or agree to any deficiency, claim, or adjustment proposed,
            asserted, or assessed in connection with or as a result of such Tax Contest; provided, however, that the Controlling Party of such Tax Contest shall not take any action that could reasonably result in the increased liability for Taxes of the Non-Controlling Party or a member of the Non-Controlling
            Party’s Group without the prior written consent of the Non-Controlling Party, such consent not to be unreasonably withheld, conditioned or delayed.

         

          

        Section 6.3          Joint Returns. In the case of any Tax
            Contest with respect to any Joint Return, KAR shall have the sole responsibility and right to control the prosecution of such Tax Contest, including the exclusive right to communicate with agents of the applicable Taxing Authority and to
            control, resolve, settle, or agree to any deficiency, claim, or adjustment proposed, asserted, or assessed in connection with or as a result of such Tax Contest; provided,
            however, that to the extent that such Tax Contest relates to Taxes for which Spinco has an indemnification obligation pursuant to this Agreement, KAR shall
            (a) defend such Tax Contest diligently and in good faith, (b) keep Spinco informed in a timely manner of all actions proposed to be taken by KAR with respect to such Tax Contest (or, to the extent practicable, the portion of such Tax Contest that relates to Taxes for which Spinco is responsible pursuant to this
            Agreement) and (c) not settle any such Tax Contest without the prior written consent of Spinco, which shall not be unreasonably withheld, conditioned or delayed, to the extent such settlement relates to a material indemnification obligation of
            Spinco pursuant to this Agreement.

         

          

        Section 6.4          Other Tax Contests. KAR shall have the sole responsibility and right to control the prosecution of any Tax Contest not
            covered under Section 6.2 or Section 6.3, including the exclusive
            right to communicate with agents of the applicable Taxing Authority and to control, resolve, settle, or agree to any deficiency, claim, or adjustment proposed, asserted, or assessed in connection with or as a result of such Tax Contest; provided, however, that to the extent that such Tax Contest relates to
            Taxes for which Spinco has an indemnification obligation pursuant to this Agreement, KAR shall (a) defend such Tax Contest diligently and in good faith, (b) keep Spinco informed in a timely manner of all actions proposed to be taken by KAR with
            respect to such Tax Contest (or, to the extent practicable, the portion of such Tax Contest that relates to Taxes for which Spinco is responsible pursuant to this Agreement) and (c) not settle any such Tax Contest without the prior written
            consent of Spinco, which shall not be unreasonably withheld, conditioned or delayed, to the extent such settlement relates to a material indemnification obligation of Spinco pursuant to this Agreement.

         

          

        
          24

          
            

        

        Section 6.5          Obligation of Continued Notice.  During the pendency of any Tax Contest or threatened Tax Contest, each of the Parties shall provide prompt notice to the other Party of any written communication
            received by it or a member of its respective Group from a Taxing Authority regarding any Tax Contest for which it is indemnified by the other Party hereunder or for which it may be required to indemnify the other Party hereunder.  Such notice
            shall include copies of the pertinent portion of any written communication from a Taxing Authority and contain factual information (to the extent known) describing any asserted Tax liability in reasonable detail and shall be accompanied by
            copies of any notice and other documents received from any Taxing Authority in respect of any such matters.  Such notice shall be provided in a timely fashion; provided,
            however, that in the event that timely notice is not provided, a Party shall be relieved of its obligation to indemnify the other Party only to the extent
            that such delay results in actual increased costs or actual prejudice to such other Party.

         

          

        Section 6.6          Settlement Rights.  Unless waived by the Parties in writing, in connection with any potential adjustment  or settlement in a Tax Contest as a result of which adjustment or settlement the
            Non-Controlling Party may reasonably be expected to become liable to make any indemnification payment to the Controlling Party under this Agreement: (i) the Controlling Party shall keep the Non-Controlling Party informed in a timely manner of
            all actions taken or proposed to be taken by the Controlling Party with respect to such potential adjustment or settlement in such Tax Contest; (ii) the Controlling Party shall timely provide the Non-Controlling Party with copies of any
            correspondence or filings submitted to any Tax Authority or judicial authority in connection with such potential adjustment or settlement in such Tax Contest; and (iii) the Controlling Party shall defend such Tax Contest diligently and in good
            faith. The failure of the Controlling Party to take any action specified in the preceding sentence with respect to the Non-Controlling Party shall not relieve the Non-Controlling Party of any liability and/or obligation which it may have to the
            Controlling Party under this Agreement, and in no event shall such failure relieve the Non-Controlling Party from any other liability or obligation which it may have to the Controlling Party.

         

          

        Section 6.7          Tax

                Contest Costs and Expenses. In the event that a Tax Contest could reasonably impact the amount of Taxes, Tax Attributes, Refunds or other Tax benefits of both
            the Controlling Party and the Non-Controlling Party (taking into account the terms of this Agreement), the Non-Controlling Party shall reimburse the Controlling Party for its allocable share of costs and expenses (including employee
            compensation, court costs, filing fees and accounting, legal and other professional fees) based on the proportion that the amount of Taxes, Tax Attributes, Refunds, or other Tax benefits of the Non-Controlling Party that could reasonably be
            impacted by such Tax Contest bear to the whole amount that could be impacted by such Tax Contest.

         

          

        
          25

          
            

        

        ARTICLE VII

         

          

        COOPERATION

        Section 7.1          General.

         

          

        (a)          Each Party shall fully cooperate, and shall cause all members of such
            Party’s Group to fully cooperate, with all reasonable requests in writing from the other Party, or from an agent, representative or advisor to such Party, in connection with the preparation and filing of any Tax Return, claims for Refunds, the
            conduct of any Tax Contest, and calculations of amounts required to be paid pursuant to this Agreement, in each case, related or attributable to or arising in connection with Taxes of either Party or any member of either Party’s Group covered
            by this Agreement and the establishment of any reserve required in connection with any financial reporting (a “Tax Matter”). Such cooperation shall include the
            provision of any information reasonably necessary or helpful in connection with a Tax Matter and shall include, without limitation, at each Party’s own cost:

         

          

        
          
            (i)          the provision of any Tax Returns of either Party or any member of either Party’s Group, books, records (including information regarding ownership and Tax basis of property), documentation and other information
                relating to such Tax Returns, including accompanying schedules, related work papers, and documents relating to rulings or other determinations by Taxing Authorities;

                

              

          

        

        
          
            (ii)         the execution of any document (including any power of attorney) in connection with any Tax Contest of either Party or any member of either Party’s Group, or the filing of a Tax Return or a Refund claim of
                either Party or any member of either Party’s Group;

             

              

          

        

        
          
            (iii)        the use of the Party’s reasonable best efforts to obtain any documentation in connection with a Tax Matter; and

             

              

          

        

        
          
            (iv)        the use of the Party’s reasonable best efforts to obtain any Tax Returns (including accompanying schedules, related work papers, and documents), documents, books, records or other information in connection with
                the filing of any Tax Returns of either Party or any member of either Party’s Group.

             

              

          

        

        Each Party shall make its employees and facilities available, without charge, on a mutually convenient basis to
            facilitate such cooperation.

         

          

        Section 7.2          Consistent Treatment.  Unless and until there has been a Final Determination to the contrary, each Party agrees not to take any position on any Tax Return, in connection with any Tax Contest or
            otherwise, that is inconsistent with (a) the treatment of payments between the KAR Group and the Spinco Group as set forth in Section 5.4, or (b) the Intended Tax Treatment.

         

            

        
          26

          
            

        

        ARTICLE VIII

         

          

        RETENTION OF RECORDS; ACCESS

         

              

        Section 8.1          Retention of Records.  For so long as the contents thereof may become material in the administration of any matter under applicable Tax Law, but in any event until the later of (i) sixty (60) days
            after the expiration of any applicable statutes of limitation (including any waivers or extensions thereof) and (ii) seven (7) years after the Distribution Date, the Parties shall retain records, documents, accounting data and other information
            (including computer data) necessary for the preparation and filing of all Tax Returns (collectively, “Tax Records”) in respect of Taxes of any member of either the KAR Group or the Spinco Group for any Pre-Distribution Period, Straddle
            Period, or Post-Distribution Period or for any Tax Contests relating to such Tax Returns.  At any time after the Distribution Date that the KAR Group proposes to destroy such records or documents, it shall first notify the Spinco Group in
            writing and the Spinco Group shall be entitled to receive such records or documents proposed to be destroyed. At any time after the Distribution Date that the Spinco Group proposes to destroy such records or documents, it shall first notify the
            KAR Group in writing and the KAR Group shall be entitled to receive such records or documents proposed to be destroyed. The Parties shall notify each other in writing of any waivers or extensions of the applicable statute of limitations that
            may affect the period for which the foregoing records or other documents must be retained.

         

          

        Section 8.2          Access to Tax Records.  The Parties and their respective Affiliates shall make available to each other for inspection and copying during normal business hours upon reasonable notice all Tax Records
            (and, for the avoidance of doubt, any pertinent underlying data accessed or stored on any computer program or information technology system) in their possession and shall permit the other Party and its Affiliates, authorized agents and
            representatives and any representative of a Taxing Authority or other Tax auditor direct access, during normal business hours upon reasonable notice, to any computer program or information technology system used to access or store any Tax
            Records, in each case to the extent reasonably required by the other Party in connection with the preparation of Tax Returns or financial accounting statements, audits, litigation, or the resolution of items pursuant to this Agreement.  The
            Party seeking access to the records of the other Party shall bear all costs and expenses associated with such access, including any professional fees; provided,
            however, that if the access to Tax Records pursuant to this Section 8.2
            results in a Refund, Tax benefit or other reduction in Taxes to the Party providing such access, the Party providing access shall reimburse the Party seeking access for the providing Party’s allocable portion of the costs and expenses of the
            Party seeking access, based on the amount of Refund, Tax benefit or other reduction in Taxes realized by the Party providing access.

         

        

        
          27

          
            

        

        ARTICLE IX

         

          

        DISPUTE RESOLUTION

         

              

        Section 9.1          Dispute Resolution Mechanics. The Parties shall attempt in good faith to resolve any disagreement arising with respect to this Agreement, including any dispute in connection with a claim by a third
            party (a “Dispute”). Either Party may give the other Party written notice of any Dispute not resolved in the normal course of business. If the Parties cannot
            agree within thirty (30) Business Days following the date on which one Party gives such notice (the “Dispute Date”), then the Dispute shall be referred to a
            Tax Expert acceptable to each of the Parties to act as an arbitrator in order to resolve the Dispute. If the Parties are unable to agree upon a Tax Expert within ten (10) Business Days, the Tax Expert selected by KAR and the Tax Expert selected
            by Spinco shall jointly select a Tax Expert that will resolve the Dispute. Such Tax Expert shall be empowered to resolve the Dispute, including by engaging nationally recognized lar firms, accountants and other experts. The Tax Expert chosen to
            resolve the Dispute shall furnish written notice to the Parties of its resolution of such Dispute as soon as practicable, but in no event later than forty-five (45) Business Days after its acceptance of the matter for resolution. Any such
            resolution by the Tax Expert shall be conclusive and binding on the Parties. The fees and expenses of the Tax Expert shall be allocated between the Parties in the same proportion that the aggregate amount of disputed items that were determined
            in favor of the other Party (as finally determined by the Tax Expert) bears to the total amount of disputed items submitted by the Parties.

         

          

        ARTICLE X

         

          

        MISCELLANEOUS PROVISIONS

         

              

        Section 10.1        Conflicting Agreements.  In the event and to the extent that there shall be a conflict between the provisions of this Agreement and the provisions of the Separation and Distribution Agreement, this
            Agreement shall control with respect to the subject matter thereof.

         

          

        Section 10.2        Termination. This Agreement will terminate without further action at any time before the Distribution upon termination of the Separation and Distribution Agreement. If terminated, no Party will have
            any liability of any kind to the other Party or any other Person on account of this Agreement, except as provided in the Separation and Distribution Agreement.

         

          

        Section 10.3        Interest on Late Payments.  With respect to any payment between the Parties pursuant to this Agreement not made by the due date set forth in this Agreement for such payment, the outstanding amount
            will accrue interest at a rate per annum equal to the rate in effect for underpayments under Section 6621 of the Code from such due date to and including the payment date.

         

        

        
          28

          
            

        

        
          Section 10.4        Specific Performance. In the event of any actual or threatened default in, or breach of, any of the terms, conditions and provisions of this Agreement, KAR shall have the right to
              specific performance and injunctive or other equitable relief of its 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. Spinco shall not
              oppose the granting of such relief on the basis that money damages are an adequate remedy. The Parties agree that the remedies at law for any breach or threatened breach hereof, including monetary damages, are 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 waived. The Parties acknowledge and agree that
              the right of specific enforcement is an integral part of this Agreement and without that right, neither KAR nor Spinco would have entered into this Agreement.

        

         

        
        Section 10.5        Successors.  This Agreement shall be binding on and inure to the benefit of any successor by merger, acquisition of assets, or otherwise, to any of the parties hereto, to the same extent as if such
            successor had been an original party to this Agreement.

         

          

        Section 10.6        Application to Present and Future Subsidiaries.  This Agreement is being entered into by KAR and Spinco on behalf of themselves and the members of their respective Group. This Agreement shall
            constitute a direct obligation of each such Party and shall be deemed to have been readopted and affirmed on behalf of any entity that becomes a Subsidiary of KAR or Spinco in the future.

         

          

        Section 10.7        Assignability.  This Agreement shall not be assignable, in whole or in part, directly or indirectly, by any
            party hereto without the prior written consent of the other Party (not to be unreasonably withheld or delayed), and any attempt to assign any rights or obligations arising under this Agreement without such consent shall be void. Notwithstanding
            the foregoing, this Agreement shall be assignable to (i) with respect to KAR, an Affiliate of KAR, or (ii) a bona fide third party in connection with a merger, reorganization, consolidation or the sale of all or substantially all the assets of
            a Party hereto so long as the resulting, surviving or transferee entity assumes all the obligations of the relevant Party hereto by operation of law or pursuant to an agreement in form and substance reasonably satisfactory to the other Party to
            this Agreement. No assignment permitted by this Section 10.7 shall release the assigning Party from liability for the full performance of its obligations
            under this Agreement.

         

          

        Section 10.8        No Fiduciary Relationship.  The duties and obligations of the Parties, and their respective successors and permitted assigns, contained herein are the extent of the duties and obligations
            contemplated by this Agreement; nothing in this Agreement is intended to create a fiduciary relationship between the Parties hereto, or any of their successors and permitted assigns, or create any relationship or obligations other than those
            explicitly described.

         

          

        Section 10.9        No

                Duplication; No Double Recovery. Nothing in this Agreement, the Separation and Distribution Agreement or any Ancillary Agreement is intended to confer to or
            impose upon any Party a duplicative right, entitlement, benefit, reduction, obligation or recovery with respect to any matter arising out of the same facts and circumstances.

         

          

        Section 10.10      Further Assurances.  Subject to the provisions hereof, the Parties hereto shall make, execute, acknowledge and deliver such other instruments and documents, and take all such other actions, as may
            be reasonably required in order to effectuate the purposes of this Agreement and to consummate the transactions contemplated hereby.

         

        

        
          29

          
            

        

        Section 10.11      Survival.  Notwithstanding any other provision of this Agreement to the contrary, all representations, covenants and obligations contained in this Agreement shall survive until the expiration of the
            applicable statute of limitations with respect to any such matter (including extensions thereof).

         

          

        Section 10.12      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 overnight courier service, by facsimile or electronic transmission with receipt confirmed (followed by delivery of an original via overnight courier service) or by registered or certified mail (postage
            prepaid, return receipt requested) 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 10.12):

         

          

        	 	
                If to KAR, to:

              	 
	 	 	 
	 	 	
                KAR Auction Services, Inc.

              	 
	 	 	
                13085 Hamilton Crossing Boulevard

              	 
	 	 	
                Carmel, Indiana 46032

              	 
	 	 	
                Attn: Craig Morris

              	 
	 	 	
                Facsimile: (317) 249-4662

              	 
	 	 	 	 
	 	 	
                with a copy to:

              	 
	 	 	 	 
	 	 	
                [                                              ]

              	 
	 	 	
                [                                              ]

              	 
	 	 	
                [                                              ]

              	 
	 	 	
                Attn: [                                              ]

              	 
	 	 	
                Facsimile: [                                              ]

              	 
	 	 	 	 
	 	
                If to Spinco, to:

              	 
	 	 	 
	 	 	
                [IAA Spinco Inc.]

              	 
	 	 	
                [                           ]

              	 
	 	 	
                [                           ]

              	 
	 	 	
                Attn: [                  ]

              	 
	 	 	
                Facsimile: [                             ]

              	 

        

        
          30

          
            

        

        	 	 	
                with a copy to:

              	 
	 	 	 	 
	 	 	
                [                           ]

              	 
	 	 	
                [                           ]

              	 
	 	 	
                [                           ]

              	 
	 	 	
                Attn: [                  ]

              	 
	 	 	
                Facsimile: [          ]

              	 

         

          

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

         

        

        Section 10.13      Effective Date.  This Agreement shall become effective only upon the occurrence of the Distribution.

         

          

        *          *          *

         

          

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          31

          
            

        

        IN WITNESS WHEREOF, the Parties hereto have duly executed this Agreement as of the day and year first above written.

         

          

        	 	
                KAR Auction Services, Inc..

              
	 	 
	 	
                By:

              	 
	 	 	
                Name:

              
	 	 	
                Title:

              
	 	 
	 	
                IAA Spinco Inc.

              
	 	 
	 	
                By:

              	 
	 	 	
                Name:

              
	 	 	
                Title:

              

        

        

        

        

        32

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