Document:

Guaranty of Lease

 EXHIBIT 10.22 
 GUARANTY OF LEASE 
 GUARANTY OF LEASE (this “Guaranty”) made as of
October 3, 2008, by KAR Holdings, Inc., a Delaware corporation, with an address at 13085 Hamilton Crossing Boulevard, Suite 500, Carmel, Indiana 46032 (“Guarantor”), to First Industrial, L.P., a Delaware limited partnership,
having an office at 311 South Wacker Drive, Suite 4000, Chicago, Illinois 60606 (“Landlord”). 
 W I
T N E S S E T H : 
 WHEREAS: 
 A. Landlord has been requested by ADESA Atlanta, LLC, a New Jersey limited liability company with an office at c/o ADESA, Inc., 13085
Hamilton Crossing Boulevard, Suite 500, Carmel, Indiana 46032 (“Tenant”), to enter into a Ground Sublease dated as of the date hereof (the “Lease”), whereby Landlord would lease to Tenant, and Tenant would rent from
Landlord, certain premises located in Fairburn, Georgia, as more particularly described in the Lease (the “Premises”). 
 B. Guarantor is the indirect owner of Tenant, and will derive substantial economic benefit from the execution and delivery of the Lease. 
 C. Guarantor acknowledges that Landlord would not enter into the Lease unless this Guaranty accompanied the execution and delivery of the
Lease. 
 D. Guarantor hereby acknowledges receipt of a copy of the Lease. 
 NOW, THEREFORE, in consideration of the execution and delivery of the Lease and of other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Guarantor covenants and agrees as follows: 
 1. DEFINITIONS.
Defined terms used in this Guaranty and not otherwise defined herein have the meanings assigned to them in the Lease. 
 2.
COVENANTS OF GUARANTOR. 
 (a) Guarantor absolutely, unconditionally and irrevocably guarantees, as a primary
obligor and not merely as a surety: (i) the full and prompt payment of all Base Rent and Additional Rent and all other rent, sums and charges of every type and nature payable by Tenant under the Lease, and (ii) the full, timely and
complete performance of all covenants, terms, conditions, obligations and agreements to be performed by Tenant under the Lease (all of the obligations described in clauses (i) and (ii), collectively, the “Obligations”). If a
Default occurs under the Lease, Guarantor will, without notice or demand, promptly pay and perform all of the Obligations, and pay to Landlord, when and as due, all Base Rent and Additional Rent payable by Tenant under the Lease, together with all
damages, costs and expenses to which Landlord is entitled pursuant to any or all of the Lease, this Guaranty and applicable Laws. 
 (b) Guarantor agrees with Landlord that (i) any action, suit or proceeding of any kind or nature whatsoever (an “Action”) commenced by Landlord against Guarantor to collect Base Rent and Additional Rent and any other
rent, sums and charges due under the Lease for any month or months shall not prejudice in any way Landlord’s rights to collect any such amounts due for any subsequent month or months throughout the Term in any subsequent Action,
(ii) Landlord may, at its option, without prior notice or demand, join Guarantor in any Action against Tenant in connection with or based upon either or both of the Lease and any of the Obligations, (iii) Landlord may seek and obtain
recovery against Guarantor in an Action against Tenant or in any independent Action against Guarantor 

 
without Landlord first asserting, prosecuting, or exhausting any remedy or claim against Tenant or against any security of Tenant held by Landlord under the
Lease, and (iv) Guarantor will be conclusively bound by a judgment entered in any Action in favor of Landlord against Tenant, as if Guarantor were a party to such Action, irrespective of whether or not Guarantor is entered as a party or
participates in such Action. 
 (c) Any default or failure by the Guarantor to perform any of its Obligations under this
Guaranty shall be deemed an immediate Default under the Lease; provided, however, that if the basis for the occurrence of a default under this Guaranty is the occurrence of a default by Tenant under the Lease, then the default under this Guaranty
shall not constitute a Default under the Lease until any applicable notice and cure period to which the Tenant is entitled under the Lease has expired; provided further, however, that under no circumstances shall this provision be construed to
entitle Tenant to multiple notices or cure periods in connection with a given default under the Lease. 
 3.
GUARANTOR’S OBLIGATIONS UNCONDITIONAL. 
 (a) This Guaranty is an absolute and unconditional guaranty of
payment and of performance, and not of collection, and shall be enforceable against Guarantor without the necessity of the commencement by Landlord of any Action against Tenant, and without the necessity of any notice to Guarantor of nonpayment,
nonperformance or nonobservance by Tenant, or any notice of acceptance of this Guaranty, or of any other notice or demand to which Guarantor might otherwise be entitled, all of which Guarantor hereby expressly waives in advance. The obligations of
Guarantor hereunder are independent of the obligations of Tenant. 
 (b) If the Lease is renewed, or the Term extended, for
any period beyond the Expiration Date, either pursuant to any option granted under the Lease or otherwise, or if Tenant holds over beyond the Expiration Date, the obligations of Guarantor hereunder shall extend and apply to the full and faithful
performance and observance of all of the Obligations under the Lease accruing during any renewal, extension or holdover period, except as otherwise expressly and specifically provided in the Lease. 
 (c) Except as otherwise expressly and specifically provided in the Lease, this Guaranty is a continuing guarantee and will remain in full
force and effect notwithstanding, and the liability of Guarantor hereunder shall be absolute and unconditional irrespective of: (i) any modifications, alterations or amendments of the Lease (regardless of whether Guarantor consented to or had
notice of same), (ii) any releases or discharges of Tenant other than the full release and complete discharge of all of the Obligations, (iii) Landlord’s failure or delay to assert any claim or demand or to enforce any of its rights
against Tenant, (iv) any extension of time that may be granted by Landlord to Tenant, (v) any assignment or transfer of all of any part of Tenant’s interest under the Lease (whether by Tenant, by operation of law, or otherwise),
(vi) any subletting, concession, franchising, licensing or permitting of the Premises, (vii) any changed or different use of the Premises, (viii) any other dealings or matters occurring between Landlord and Tenant, (ix) the
taking by Landlord of any additional guarantees, or the receipt by Landlord of any collateral, from other persons or entities, (x) the release by Landlord of any other guarantor, (xi) Landlord’s release of any security provided under
the Lease, or (xii) Landlord’s failure to perfect any landlord’s lien or other lien or security interest available under applicable Laws. Without limiting the foregoing, this Guaranty shall be applicable to any obligations of Tenant
arising in connection with a termination of the Lease, whether voluntary or otherwise. Guarantor hereby consents, prospectively, to Landlord’s taking, entering into or otherwise causing any or all of the foregoing actions or omissions.

 (d) Guarantor hereby expressly agrees that the validity of this Guaranty and the obligations of Guarantor hereunder shall
in no way be terminated, affected, diminished or impaired by reason of the assertion or the failure to assert by Landlord against Tenant, of any of the rights or remedies reserved to Landlord pursuant to the provisions of the Lease or by relief of
Tenant from any of Tenant’s obligations under the Lease or otherwise by (i) the release or discharge of Tenant in any state or federal creditors’ proceedings, receivership, bankruptcy or other proceeding; (ii) the impairment,
limitation or 

  

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modification of the liability of Tenant or the estate of Tenant in bankruptcy, or of any remedy for the enforcement of Tenant’s liability under the
Lease, resulting from the operation of any present or future provision of the United States Bankruptcy Code (11 U.S.C. § 101 et seq., as amended), or from other statute, or from the order of any court; or (iii) the rejection, disaffirmance
or other termination of the Lease in any such proceeding. This Guaranty shall continue to be effective notwithstanding that at any time the payment of any amount due under the Lease or this Guaranty may be rescinded or must otherwise be returned by
Landlord for any reason, including, without limitation, the insolvency, bankruptcy, liquidation or reorganization of Tenant, Guarantor or otherwise, all as though such payment had not been made, and, in such event, Guarantor shall pay to Landlord an
amount equal to any such payment that has been rescinded or returned. 
 4. WAIVERS OF GUARANTOR. 
 (a) Without limitation of the foregoing, Guarantor waives (i) notice of acceptance of this Guaranty and notice of dishonor,
(ii) notice of any actions taken by Landlord or Tenant under the Lease or any other agreement or instrument relating thereto, (iii) notice of any and all Defaults under the Lease, except to the extent Guarantor is expressly identified as a
party to whom notice is to be provided under the Lease, (iv) all other notices, demands and protests, and all other formalities of every kind in connection with the enforcement of the Obligations, omission of or delay in which, but for the
provisions of this Section 4, might constitute grounds for relieving Guarantor of its obligations hereunder, (v) any requirement that Landlord protect, secure, perfect, insure or proceed against any security interest or lien, or any
property subject thereto, or exhaust any right or take any action against Tenant or any collateral, and (vi) the benefit of any statute of limitations affecting Guarantor’s liability under this Guaranty. 
 (b) GUARANTOR HEREBY WAIVES TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY ANY PERSON OR ENTITY WITH RESPECT TO ANY
MATTER WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED WITH ANY OR ALL OF THIS GUARANTY; THE LEASE; ANY CLAIM OF LIABILITY AGAINST OR OBLIGATION OF TENANT IN ANY MANNER RELATED TO THE PREMISES AND/OR THE PROPERTY; ANY CLAIM OF INJURY OR DAMAGE IN
ANY WAY RELATED TO THE LEASE, THE PREMISES AND/OR THE PROPERTY; ANY ACT OR OMISSION OF TENANT, ITS AGENTS, EMPLOYEES, CONTRACTORS, SUPPLIERS, SERVANTS, CUSTOMERS, CONCESSIONAIRES, FRANCHISEES, PERMITTEES OR LICENSEES; OR ANY ASPECT OF THE USE OR
OCCUPANCY OF, OR THE CONDUCT OF BUSINESS IN, ON OR FROM THE PREMISES AND/OR THE PROPERTY. GUARANTOR SHALL NOT IMPOSE ANY COUNTERCLAIM OR COUNTERCLAIMS OR CLAIMS FOR SET-OFF, RECOUPMENT OR DEDUCTION OF RENT IN ANY ACTION BROUGHT BY LANDLORD AGAINST
GUARANTOR UNDER THIS GUARANTY. GUARANTOR SHALL NOT BE ENTITLED TO MAKE, AND HEREBY WAIVES, ANY AND ALL DEFENSES AGAINST ANY CLAIM ASSERTED BY LANDLORD IN ANY SUIT OR ACTION INSTITUTED BY LANDLORD TO ENFORCE THIS GUARANTY OR THE LEASE. IN ADDITION,
GUARANTOR HEREBY WAIVES, BOTH WITH RESPECT TO THE LEASE AND WITH RESPECT TO THIS GUARANTY, ANY AND ALL RIGHTS WHICH ARE WAIVED BY TENANT UNDER THE LEASE, IN THE SAME MANNER AS IF ALL SUCH WAIVERS WERE FULLY RESTATED HEREIN. THE LIABILITY OF
GUARANTOR UNDER THIS GUARANTY IS PRIMARY AND UNCONDITIONAL. 
 5. SUBROGATION. Guarantor shall not be
subrogated, and hereby waives and disclaims any claim or right against Tenant by way of subrogation or otherwise, to any of the rights of Landlord under the Lease or otherwise, or in either or both of the Premises and the Property, which may arise
by any of the provisions of this Guaranty or by reason of the performance by Guarantor of any of its Obligations hereunder. Guarantor shall look solely to Tenant for any recoupment of any payments made or costs or expenses incurred by Guarantor
pursuant to this Guaranty. If any amount shall be paid to Guarantor on account of such subrogation rights at any time when all of the Obligations shall not have been paid and performed in full, 

  

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Guarantor shall hold such amount in trust for Landlord and shall pay such amount to Landlord immediately following receipt by Guarantor, to be applied
against the Obligations, whether matured or unmatured, in such order as Landlord may determine. Guarantor hereby subordinates any liability or indebtedness of Tenant now or hereafter held by Guarantor to the obligations of Tenant to Landlord under
the Lease. 
 6. REPRESENTATIONS AND WARRANTIES OF GUARANTOR. Guarantor represents and warrants that:

 (a) Guarantor is a Delaware corporation; has all requisite power and authority to enter into and perform its obligations
under this Guaranty; and this Guaranty is valid and binding upon and enforceable against Guarantor without the requirement of further action or fulfillment of any condition. 
 (b) To the knowledge of Guarantor, the execution, delivery and performance by Guarantor of this Guaranty does not and will not
(i) contravene any applicable Laws or any contractual restriction binding on or affecting Guarantor or any of its properties, or (ii) result in or require the creation of any lien, security interest or other charge or encumbrance upon or
with respect to any of its properties. 
 (c) There is no action, suit or proceeding pending or, to the knowledge of
Guarantor, threatened against or otherwise affecting Guarantor before any court or other governmental authority or any arbitrator that may materially adversely affect Guarantor’s ability to perform its obligations under this Guaranty.

 (d) Guarantor’s principal place of business is 13085 Hamilton Crossing Boulevard, Suite 500, Carmel, Indiana 46032.

 (e) Guarantor hereby represents and warrants that Guarantor is the indirect owner of Tenant and, as such, will derive
substantial economic benefit from the execution and delivery of the Lease. 
 As used in this Guaranty, references to the
“knowledge” of Guarantor means the actual knowledge of each and all of Eric Loughmiller, Warren Byrd and Kevin Neal. 
 7. NOTICES. Any consents, notices, demands, requests, approvals or other communications given under this Guaranty shall be given as provided in the Lease, as follows: 
 (a) if to Guarantor at Guarantor’s address set forth on the first page of this Guaranty, Attention: Michelle Mallon, with a copy to
Winston & Strawn LLP, 35 West Wacker Drive, Chicago, Illinois 60601, Attention: Ankur Gupta; and 
 (b) if to
Landlord, at Landlord’s address set forth on the signature page of the Lease (with a copy to Landlord’s attorney as also set forth on the signature page to the Lease); or to such other addresses as either Landlord or Guarantor may
designate by notice given to the other in accordance with the provisions of this Section 7. 
 8. CONSENT TO
JURISDICTION; WAIVER OF IMMUNITIES. The undersigned hereby (a) consents and submits to the jurisdiction of the courts of the State of Illinois and the federal courts sitting in the State of Illinois and shall be subject to service of
process in the State of Illinois with respect to any dispute there arising, directly or indirectly, out of this Guaranty, (b) waives any objections which the undersigned may have to the laying of venue in any such suit, action or proceeding in
either such court, (c) agrees to join Landlord in any petition for removal or change of venue to either such court, and (d) irrevocably designates and appoints Tenant as its authorized agent to accept and acknowledge on its behalf service
of process with respect to any disputes arising, directly or indirectly, out of this Guaranty. The undersigned hereby acknowledges and agrees that Landlord may obtain personal jurisdiction and perfect service of process through Tenant as the
undersigned agent, or by any other means now or hereafter permitted by applicable law. Nothing above shall limit Landlord’s choice of forum for purposes of enforcing this Guaranty. 
 9. FINANCIAL INFORMATION. 
 (a) Deliveries. Throughout the period of time during which Guarantor submits ‘34 Act filings on the Electronic Data Gathering, Analysis and Retrieval (EDGAR) system of the Securities and 

  

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Exchange Commission in accordance with the Securities and Exchange Act of 1934, as amended from time to time (“Public Filer”), Guarantor
shall have no obligation to furnish Landlord with any financial information and Landlord shall procure and such financial information concerning Guarantor from publicly available information filed with, at the direction of, or pursuant to the
requirements of, the Securities and Exchange Commission. In the event that, and at all times while, Guarantor is no longer a Public Filer, then the following requirements shall apply: (i) from time to time during the term of this Guaranty, but
not more frequently than once in any consecutive twelve month period (except in the event that Tenant is in Default under the Lease or in the event that Landlord is pursuing a potential sale or refinancing of the Premises), Guarantor shall deliver
to Landlord, within ten (10) business days following receipt of Landlord’s written request therefor, the most currently available audited financial statements of Guarantor; and if no such audited financial statements have been theretofore
prepared and, therefore, are not available, then Guarantor shall instead deliver to Landlord its most currently available unaudited balance sheet, operating statement, income statement and statements of cash flow and equity; (ii) without the
need for Landlord to make any written request therefor, Guarantor shall deliver to Landlord its annual federal tax returns within thirty (30) days after the filing thereof with the Internal Revenue Service; and (iii) upon the delivery of
any such financial information described in clause (i) above, Guarantor shall, as of the date of each such delivery, be deemed (unless Guarantor specifically states otherwise in writing) to automatically represent and warrant to Landlord that
such financial information is true, accurate and complete in all material respects, and that, except as specifically stated in writing, there has been no material adverse change in the financial condition of Guarantor from the date that such
financial information was prepared through the date such financial information is delivered to Landlord. 
 (b)
Financial Covenant Compliance. To the knowledge of Guarantor, as of the date hereof, Guarantor is not in default (nor has Guarantor received any written notice alleging the occurrence of a default) under any of its financial covenants
set forth in any document evidencing or pertaining to its current senior credit facility. For purposes of this Guaranty, any reference to “Senior Debt” shall mean Guarantor’s current senior credit facility, as that facility may
be renewed, amended, modified, restated, rearranged or refinanced, and any credit facility into which Guarantor enters during the term of this Guaranty that replaces or provides credit in lieu of that current senior credit facility or any
replacement or substitute facility, as the case may be. Guarantor shall provide to Landlord written notice of any default by Guarantor under any of its financial covenants set forth in any document evidencing or pertaining to its Senior Debt (the
“Debt Covenants”), such notice to be delivered by Guarantor to Landlord within twenty (20) days after Guarantor first obtains knowledge of such default (a “Debt Covenant Default”) or, if Guarantor is entitled
to notice of such Debt Covenant Default under the applicable loan documents, within twenty (20) days after receipt by Guarantor of such notice of such Debt Covenant Default. Notwithstanding the foregoing, throughout the period of time during
which the Guarantor is a Public Filer, notice of any Debt Covenant Default by Guarantor shall be deemed given to Landlord in satisfaction of Guarantor’s obligations hereunder if such Debt Covenant Default is disclosed in a form 8-K filed by
Guarantor or in any other publicly available information filed with, at the direction of, or pursuant to the requirements of, the Securities and Exchange Commission. 
 10. ASSIGNMENT; SALE OF ASSETS; CHANGE IN CONTROL. Guarantor shall have the right to freely, and without the obligation to
obtain Landlord’s consent thereto, (a) assign (whether directly or indirectly), in whole or in part, this Guaranty, or (b) allow this Guaranty to be transferred, in whole or in part and whether directly or indirectly, by operation of
law or by merger or dissolution, or (c) sell, transfer or convey (whether directly or indirectly) some or all of its tangible and intangible assets to any entity that is not controlled by, or under common control with, Guarantor, or
(d) transfer a controlling interest (i.e. greater than a forty-nine percent (49.0%) voting or non-voting ownership interest) of stock, membership interests or partnership interests in Guarantor (each of (a) through (d) being
referred to herein as a “Transfer”), provided that immediately following the applicable Transfer the successor Guarantor resulting from such Transfer (the “Successor Guarantor”) has a net worth, as determined in
accordance with generally accepted accounting principles (“GAAP”), that equals or exceeds Four Hundred Fifty Million 

  

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Dollars ($450,000,000) (the “Threshold Net Worth”). Guarantor shall provide written notice to Landlord of any Transfer no later than ten
(10) days prior to the consummation of the Transfer and, at that time, Guarantor shall also advise Landlord, in writing, whether or not the Successor Guarantor shall satisfy the Threshold Net Worth requirement immediately upon the consummation
of the Transfer. Prior to the consummation of the Transfer, Guarantor shall also deliver to Landlord whatever information and documentation Landlord reasonably requests in order to evidence the Successor Guarantor’s net worth, as determined in
accordance with GAAP (“GAAP Net Worth”), as such GAAP Net Worth shall exist immediately upon the consummation of the then-pending Transfer. In the event that immediately after any such Transfer, the Successor Guarantor would not
have a GAAP Net Worth that equals or exceeds the Threshold Net Worth (a “Net Worth Deficiency”), Guarantor shall have the right to proceed with the then-pending Transfer if and only if Guarantor or the Successor Guarantor deposits,
or causes to be deposited, with Landlord a Net Worth Security LC (as defined hereinbelow) prior to the consummation of the then-pending Transfer. Further, following any such Transfer in which a Net Worth Security LC is required to be deposited with
Landlord, the Successor Guarantor shall continue to maintain with Landlord a Net Worth Security LC at all such times during the Term in which a Net Worth Deficiency continues to exist on the part of the Successor Guarantor. As used herein, a
“Net Worth Security LC” shall mean an irrevocable and unconditional (except as provided in (e) below) standby letter of credit (a) in an amount equal to the amount set forth in the table below opposite the corresponding
GAAP Net Worth of the Successor Guarantor, as also set forth in the table below (the “Stated Amount”); (b) issued by a federal or state chartered bank or other financial institution reasonably acceptable to Landlord (the
“Issuer”); (c) naming Landlord as beneficiary; (d) having a stated expiration date not earlier than one (1) year after its date of issuance and automatically renewing for one (1) year periods unless the Issuer
provides Landlord with at least 60 days’ advance written notice that the Net Worth Security LC will not be renewed; (e) being payable upon presentation of sight drafts accompanied only by Landlord’s statement that it is entitled to
the amount drawn in accordance with this Guaranty; and (f) allowing partial and multiple drawings. 
  

			
	 GAAP Net Worth of Successor Guarantor
	  	 Stated Amount of Net Worth Security LC

	 $400,000,000.00—$449,999,999.99
	  	1 year of then-current Base Rent
	 $350,000,000.00—$399,999,999.99
	  	1 1/2 years of then-current Base Rent
	 $349,999,999.99 or less
	  	2 years of then-current Base Rent

 Notwithstanding the foregoing, in the event that: (x) the expiration date of any Net Worth
Security LC occurs before the earlier of (i) the date on which Landlord is required to release and return the Net Worth Security LC to Guarantor or the Successor Guarantor, as the case may be, pursuant to the requirements of this
Section 10 or (ii) the expiration date of the Lease term, (y) the Issuer has advised Landlord that the Issuer will not automatically renew the Net Worth Security LC; and (z) Guarantor or the Successor Guarantor, as the
case may be, fails to deliver to Landlord, at least forty-five (45) days prior to the expiration of such Net Worth Security LC either (A) an amendment thereto extending the expiration date of such Net Worth Security LC for not less than
twelve (12) months, or (B) a new Net Worth Security LC, in form and substance in accordance with (a) through (f) above, then Landlord may draw on such Net Worth Security LC and apply the proceeds in whatever manner or for
whatever purpose Landlord reasonably deems appropriate in the event that either or both (i) Tenant Defaults under the Lease or (ii) Guarantor defaults under this Guaranty (in addition to any other remedies available to Landlord under this
Guaranty). If Tenant Defaults under the Lease or Guarantor defaults hereunder, Landlord may, without notice to Guarantor or the Successor Guarantor, as the case may be, draw on the Net Worth Security LC and apply the proceeds in whatever manner
Landlord deems appropriate, in addition to any and all other remedies available to Landlord under the Lease and this Guaranty. In the event Landlord draws against the Net Worth Security LC, Guarantor shall, upon demand, at Guarantor’s option,
immediately either (aa) deposit with Landlord a sum of cash equal to amount drawn under the Net Worth Security LC or (bb) deliver to Landlord an additional Net Worth Security LC in an amount equal to the amount drawn. Landlord may deliver the Net
Worth Security LC to any purchaser or other assignee of Landlord’s interest in the Premises, whereupon Landlord shall be discharged from any further liability with respect to the Net Worth Security LC. In the event that Landlord exercises its
rights under the preceding sentence, Guarantor shall fully cooperate with 

  

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Landlord, in all reasonable respects, to cause the Net Worth Security LC to be assigned and conveyed to, or reissued to, such purchaser. The Successor
Guarantor will be solely responsible for any fees or charges imposed in connection with the issuance or replacement of the Net Worth Security LC, and Landlord will be solely responsible for any bank fees or charges imposed in connection with any
transfer or reissuance of the Net Worth Security LC that occurs in connection with an assignment of the Lease and this Guaranty. 
 Provided
that no Default under the Lease then exists and no default under this Guaranty then exists, Landlord will deliver the Net Worth Security LC to the Issuer for cancellation within thirty (30) days after the first to occur of (1) the
expiration of the Lease term or (2) such sooner date on which the Successor Guarantor demonstrates, to the reasonable satisfaction of Landlord, that the Successor Guarantor has a GAAP Net Worth that equals or exceeds the Threshold Net Worth and
has maintained a GAAP Net Worth that equals or exceeds the Threshold Net Worth for six (6) consecutive calendar months. 
 If, at any
time or from time to time during any period that Landlord is holding a Net Worth Security LC, the Base Rent (as defined in the Lease) increases pursuant to the requirements of the Lease, then within fifteen (15) business days of the date on
which the Base Rent adjustment occurs under the Lease, Guarantor shall deliver to Landlord either (AA) an amendment to the Net Worth Security LC, increasing the amount thereto to an amount that satisfies the requirements of the table set forth
above, based on the then-current annual Base Rent due under the Lease (and assuming that Guarantor’s GAAP Net Worth is the same amount as it was when the Net Worth Security LC was originally issued) or (BB) a new Net Worth Security LC, in
form and substance in accordance with the requirements of (a) through (f) above, but in an amount that satisfies the requirements of the table set forth above, based on the then-current Base Rent due under the Lease (and assuming that
Guarantor’s GAAP Net Worth is the same amount as it was when the Net Worth Security LC was originally issued). 
 11.
MISCELLANEOUS. 
 (a) Guarantor further agrees that Landlord may, without notice, assign this Guaranty in whole
or in part to any successor to Landlord’s interest under the Lease. If Landlord disposes of its interest in the Lease, “Landlord,” as used in this Guaranty, shall mean Landlord’s successors and assigns; provided, however,
in the event of any such assignment of this Guaranty by Landlord, Guarantor shall have no obligation hereunder to Landlord’s successors or assigns until such time as Guarantor shall have received written notice from Landlord of any such
assignment. 
 (b) Guarantor promises to pay all of Landlord’s expenses, including, without limitation, reasonable
attorneys’ fees and costs, incurred by Landlord in enforcing the terms and conditions of this Guaranty. 
 (c) Guarantor
shall, from time to time within ten (10) business days after receipt of Landlord’s written request therefor, but not more than once per calendar year during the Term (except that such obligation shall not be subject to a once per year
annual limitation in the event of (i) a Default by Tenant under the Lease, (ii) a default by Guarantor hereunder, (iii) a potential sale or financing of the Premises by Landlord), execute, acknowledge and deliver to Landlord a
statement certifying that this Guaranty is unmodified and in full force and effect (or if there have been modifications, that the same is in full force and effect as modified and stating such modifications). Such certificate may be relied upon by
any prospective purchaser, lessor or lender of all or a portion of the Premises and/or Property. 
 (d) If any portion of this
Guaranty shall be deemed invalid, unenforceable or illegal for any reason, such invalidity, unenforceability or illegality shall not affect the balance of this Guaranty, which shall remain in full force and effect to the maximum permitted extent.

 (e) The provisions, covenants and guaranties of this Guaranty shall be binding upon Guarantor and its successors and
assigns, and shall inure to the benefit of Landlord and its successors and assigns, and shall not be deemed waived or modified unless such waiver or modification is specifically set forth in writing, executed by Landlord or its successors and
assigns, and delivered to Guarantor. 
  

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 (f) Whenever the words “include”, “includes”, or
“including” are used in this Guaranty, they shall be deemed to be followed by the words “without limitation”, and, whenever the circumstances or the context requires, the singular shall be construed as the plural, the masculine
shall be construed as the feminine and/or the neuter and vice versa. This Guaranty shall be interpreted and enforced without the aid of any canon, custom or rule of law requiring or suggesting construction against the party drafting or
causing the drafting of the provision in question. 
 (g) Each of the rights and remedies herein provided are cumulative and
not exclusive of any rights or remedies provided by law or in the Lease or this Guaranty. 
 (h) The provisions of this
Guaranty shall be governed by and interpreted solely in accordance with the internal laws of the State of Illinois, without giving effect to the principles of conflicts of law. 
 (i) The execution of this Guaranty prior to execution of the Lease shall not invalidate this Guaranty or lessen the Obligations of
Guarantor hereunder. 
 [Signature Page to Follow] 
  

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 IN WITNESS WHEREOF, Guarantor has executed this Guaranty as of the day and year first above
written. 
  

			
	GUARANTOR:
	
	KAR Holdings, Inc.
	a Delaware corporation
		
	By: 	 	/s/    REBECCA POLAK        
	Name: 	 	Rebecca Polak
	Its:	 	EVP & Secretary

  

 S-1Offer Letter to John  D. Goodman

 Exhibit 10.1 
 

 
 November 7, 2008 
 John
Goodman 
 2347 Leavenworth St. 
 San Francisco, Ca 94133

 Dear John: 
 In recognition of the important
contributions we expect you will make to the success of Charlotte Russe Holding, Inc. and its subsidiaries (the “Company”), I am pleased to formalize in this agreement (the “Agreement”) our commitment to you concerning the
terms of your employment as the Company’s Chief Executive Officer (“CEO”). Your employment with the Company would be expected to commence on or before November 17, 2008. 
 Duties. You will perform and discharge your duties and responsibilities faithfully, diligently and to the best of your ability. You will
devote substantially all of your business time and efforts to the business and affairs of the Company. You shall be responsible for managing the Company’s day-to-day operations and supervising the Company’s other officers and employees. In
addition, you will be responsible to perform such other duties as may be assigned to you by the Chairman or the Board of Directors, consistent with the position of CEO. You will report to the Company’s Board of Directors. Notwithstanding
anything herein to the contrary, this Agreement shall not be interpreted to prohibit you from engaging in personal investment activities, attending educational classes, and performing charitable acts or services to family members, if those
activities do not materially interfere with the services required under this Agreement, provided that you will not directly or indirectly acquire, hold or retain any material interest in any business competing, directly or indirectly, with the
business of the Company, except for investments in mutual and other similar funds or investments of 1% or less of the equity of a publicly traded company. 
 Board Membership. No later than the commencement of the first regularly-scheduled meeting of the Company’s Board of Directors (the “Board”) following the commencement of your employment
with the Company, you shall be elected as a member of the Board. Upon the termination of your service as CEO for any reason, to the extent requested by the Board, you shall immediately resign from the Board effective as of the date of such
termination or such earlier date as may be agreed between you and the Board. In the event you fail to properly submit any such requested resignation pursuant to this paragraph, at the discretion of the Board, you may be removed from the Board and
your Board membership may be terminated effective on the date of the termination of your service as CEO. 
 Base Salary.
Your base salary will be paid at the rate of $75,000 per month ($900,000 gross annualized); paid bi-weekly with payroll. Annually throughout your employment, your performance and salary will be reviewed by the Compensation Committee of the Board
and your base salary may not be decreased, except for decreases in base salary consistent with decreases applicable to the Company’s other executive officers, provided that your base salary will not be decreased during fiscal year 2009. All
payments under this paragraph or any other paragraph of this Agreement will be made in accordance with the regular payroll practices of the Company, reduced by applicable federal and state withholdings. 
 Signing Bonus. On the first regular payroll date following your start date, you will receive $285,000 as a signing bonus. In the event that
the Company terminates your employment for Cause (as defined below), or you terminate your employment without Good Reason (as defined below), in each case within 12 months of your start date, a portion of your signing bonus must be paid back to the
Company. The amount which you must pay back to the Company shall be equal to the number of full months remaining until your 12-month anniversary with the Company, multiplied by $23,750. 
  

 1 

 Cash Incentive Bonus.
Commencing with the Company’s 2009 fiscal year, you will be eligible to receive an annual cash incentive bonus in accordance with the Company’s Executive Officer Compensation Program as in effect from time to time (the “Program”)
and as determined by the Board or its Compensation Committee, in its sole discretion, based upon your achievement and the Company’s achievement of annual performance goals established by the Board or its Compensation Committee at the beginning
of each fiscal year. For an executive at your level of seniority, the Program currently provides for annual cash incentive bonus guidelines (as a minimum, midpoint and maximum percentage of annual base salary) of 50%, 100% and 150% base salary,
respectively. In order to receive any annual cash incentive bonus, you must be actively employed at the completion of the Company’s applicable fiscal year and at the time the annual incentive bonus is paid out. All decisions by
the Board or its Compensation Committee pertaining to bonus eligibility and/or achievement are final. Notwithstanding the foregoing: 1) if your employment is terminated without Cause or for Good Reason, you shall be entitled to receive a pro-rated
bonus for the fiscal year in which the termination occurs equal to the bonus that would have been paid to you had you remained with the Company through the time such bonus is paid out multiplied by a fraction equal to the number of days elapsed
since the commencement of the applicable fiscal year of the Company (as of the date of your termination) divided by 360 (such bonus to be paid no later than 2  1/2 months following the end of the applicable fiscal year); and 2) you shall be entitled to receive all the earned, but unpaid bonuses with respect to the fiscal years of the Company preceding the
fiscal years of your termination, with such amount being paid as soon as practical, but in no event later than seventy-five days following termination. 
 Equity Compensation. On the date of commencement of your employment, you will
receive a nonstatutory stock option (“Option”) covering Two Hundred Thousand (200,000) shares with an exercise price equal to the NASDAQ closing price of the Company’s stock on the date of grant. In addition, on the date of
commencement of your employment, you will receive Restricted Stock Units (“RSUs”) covering Ninety-One Thousand (91,000) shares of the Company’s stock. The Option and the RSUs will be subject to the terms and conditions of the
Company’s 1999 Equity Incentive Plan (the “Plan”) and will be subject to the following vesting schedule: 33 1/3% of the shares subject to each of the Option and RSUs shall vest (and, for the Option, be exercisable) on the first
anniversary of the date of grant; the next 33 1/3% of the shares subject to each of the Option and RSUs shall vest (and, for the Option, be exercisable) on the second anniversary of the date of grant; and the remaining 33 1/3% of the shares subject
to each of the Option and RSUs shall vest (and, for the Option, be exercisable) on the third anniversary of the date of grant, provided that you are employed by the Company on the applicable vesting date(s). In addition, within sixty (60) days
of the date of commencement of your employment, you will receive Performance Share Units (“PSUs”) covering Fifty-Three Thousand Five Hundred (53,500) shares of the Company’s stock. The PSUs will be subject to the terms and
conditions of the Company’s Plan and, contingent on the satisfaction of performance goals established by the Compensation Committee of the Board developed with your input and with a performance period of the Company’s 2009 fiscal year,
will be subject to the following vesting schedule: 25% of the shares subject to the PSUs shall vest on the first anniversary of your date of hire, the next 25% of the shares shall vest on the second anniversary of your date of hire; the next 25% of
the shares subject to the PSUs shall vest on the third anniversary of your date of hire; and the remaining 25% of the shares subject to the PSUs shall vest on the fourth anniversary of your date of hire, provided that you are employed by the Company
on the applicable vesting date(s). The Plan or the agreements to be entered into between you and the Company with respect to the Option, RSUs and PSUs shall provide that all of your equity awards thereunder shall become immediately vested and fully
exercisable upon a Change of Control (as defined in the Plan); provided that, with respect to PSUs for which the performance period has expired and the performance goals were not achieved, no such acceleration shall occur. In addition, the shares
underlying the RSUs and PSUs shall be issued to you upon vesting; provided that, if you are prevented from selling shares of the company’s stock (either due to applicable securities laws or company policy regarding window period trading), then
the shares shall be issued to you as soon as you are no longer so prevented from selling the shares, but not beyond the 15th day of the third month
of the calendar year following the calendar year in which such shares vest. 
 Commencing with the Company’s 2010 fiscal year,
you will be eligible to receive additional annual equity compensation in accordance with the Program and as determined by the Board or its Compensation Committee, in its sole discretion. 
 Benefits. You will accrue four weeks of paid vacation per year, to be taken at such times as you and the Company mutually agree upon. Any
additional weeks of vacation earned per year will accrue according to Company policy. In addition, you will also accrue five health leave days per year. You will be eligible to participate in all benefit and welfare plans made generally available to
senior management executives of the Company, as in effect from time to time, subject to Company’s right to modify or terminate such plans or benefits at any time with respect to employees of similar rank and title. 
  

 2 

 Relocation Expenses. The Company shall reimburse reasonable and verifiable, out-of-pocket
expenses incurred by you in connection with the possible relocation of your principal residence to the San Diego, California area, including legal expenses, expenses incurred in connection with the sale or rental of your home (such as brokerage fees
and closing costs and the costs of preparing the home for the market), plus moving expenses, but excluding expenses incurred by you in connection with purchasing or renting a home (including loan fees and “points”), all provided that you
complete such relocation of your principal residence not later than the second anniversary of the commencement of your employment with the Company and submit such expenses not later than sixty (60) days after such relocation expenses are
incurred. The Company shall pay additional compensation to you in an amount necessary to reimburse you, on an after-tax basis, for the additional income and employment taxes incurred by you as a result of the reimbursement of such expenses. Such
additional compensation shall be paid to you not later than the end of the calendar year following the calendar year in which you incur the expense being reimbursed. 
 401(k). Eligibility for enrollment occurs quarterly after one year of continuous employment. As an additional benefit, the Company will match your contribution at the rate of 25% for up to 4% of
your eligible pay. The Company match portion of this savings plan has a vesting schedule of 25% per employment year. 
 Termination of Employment and Severance. You understand and agree that this Agreement is not meant to constitute a contract of employment for a specific term, and consequently your employment will be “at-will”. What
this means is that either you or the Company may terminate your employment at any time, without notice and with or without Cause. If the Company terminates your employment for Cause, or you terminate your employment without Good Reason, the
Company’s only obligation to you under this Agreement will be to continue to pay your base salary and earned but unpaid compensation (including bonus) through the date of termination and pay to you any unused earned vacation as of the last date
of your employment (collectively referred to as the Accrued Compensation”). If, however, the Company terminates your employment for any reason other than for Cause, excluding your death or disability (defined as your inability to perform your
duties hereunder by reason of any physical or mental incapacity that results in your satisfaction of all requirements necessary to receive benefits under the Company’s long-term disability plan due to a total disability), or you terminate your
employment with Good Reason, the Company shall (i) make a lump sum payment to you of any Accrued Compensation within ten days of the termination of your employment; (ii) continue to pay your base salary at regular pay-date installments for
a period of 24 months following the effectiveness of the General Release (as defined below) (the “Severance Period”); (iii) pay you any pro-rated bonus to which you may become entitled as described in the Cash Incentive Bonus Section
above,: (iv) permit you to exercise all vested options you hold in the Company’s stock for a period of 6 months following such termination (but not to exceed the original term of such options); and (v) provided you timely elect to
continue health insurance benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985, provide you and your eligible dependents with such continued health insurance benefits during the Severance Period without cost to you; provided
that if you are a “specified employee” within the meaning of U.S. Internal Revenue Code Section 409A (“Section 409A”) at the time your employment terminates, any payment that is not exempt from Section 409A but that
would otherwise be payable within the six-month period beginning with your termination date shall be paid on the first day of the month that follows the end of such six-month period. For these purposes, each such installment shall be treated as a
“separate payment” under Section 409A. 
 There are certain conditions that must be met in order for you to receive any
severance payment under this Agreement. First, you must sign a general release agreement in favor of the Company and in a form reasonably acceptable to the Company (the “General Release”), within the applicable time period set forth
therein, but in no event more than 45 days following termination, and permit the release of claims contained therein to become effective in accordance with its terms. Second, you must abide by all terms of this Agreement. The Company shall have the
right to cease making any severance payment under this Agreement in the event you breach any provision of it. Third, any severance payment(s) made to you under this Agreement shall be offset by the amount of any income earned by you from employment
or providing services following your termination and will cease altogether when you obtain a new position which pays you compensation equal to or higher than your rate of compensation as of the last date of your employment with the Company. You will
not be entitled to any fringe benefits following termination of employment, except as specifically provided in writing in the applicable benefit plan or policy. 
  

 3 

 For purposes of this Agreement, “Cause” means (i) willful breach of duty, gross neglect of
duty, gross carelessness or gross misconduct in the performance of your duties; (ii) commission of a felony or other crime involving moral turpitude; (iii) commission of any act of material dishonesty involving injury to the Company;
(iv) the willful unauthorized disclosure of material privileged or confidential information related to the Company or its employees, except as may be compelled by legal process or court order; (v) the commission of a willful act or
omission which violates material written Company policy or procedures; (vi) alcohol or controlled substance abuse that materially impacts the performance of your duties; or (vii) any other willful act of misconduct which, in the opinion of
the Board has, or is reasonably likely to have, a material adverse impact upon the Company; provided, however, that with respect to the first occurrence of any of the acts specified in clauses (i), (v), (vi) and (vii) above, you will have
a reasonable opportunity to cure such act, violation or condition after receiving written notice from the Company, which shall not be greater than thirty (30) days. 
 For purposes of this Agreement, “Good Reason” for you to terminate your employment hereunder shall mean your termination within 90 days of the occurrence, without your consent, of any of the following
events: (1) a material reduction in your duties, position, authority, reporting or responsibilities relative to your duties, position, authority, reporting or responsibilities in effect immediately prior to such reduction; (2) the
relocation of the Company’s executive offices or principal business location to a location more than 60 miles outside the greater metropolitan areas of San Diego, California and Los Angeles, California (including Orange and the adjacent
counties); (3) a material reduction by the Company of your base salary as initially set forth herein or as the same may be increased from time to time other than decreases in base salary consistent with decreases applicable to the
Company’s other executive officers; or (4) any material breach of this Agreement; provided, however, that such termination by you shall only be deemed for Good Reason pursuant to the foregoing definition if: (i) you give the Company
written notice of your intent to terminate for Good Reason within 30 days following the first occurrence of the condition(s) that you believe constitute Good Reason, which notice shall describe such condition(s); (ii) the Company fails to
remedy such condition(s) within 30 days following receipt of the written notice (the “Cure Period”); and (iii) you terminate your employment within 30 days following the end of the Cure Period. 
 Restricted Activities. During the term of your employment with the Company, you will not, directly or indirectly, be connected as an
officer, employee, board member, consultant, advisor, owner or otherwise (whether or not for compensation) with any business which competes with any business of the Company or its subsidiaries in any area where such business is then being conducted
or actively planned by the Company or a subsidiary. During the term of your employment with the Company, and for a period of two years thereafter, you will not, and you will not assist any other person or entity to, hire or solicit the employment of
any employees of the Company or any of its subsidiaries (or any person who in the prior six months was such an employee) or otherwise seek to induce any such employee to terminate his or her employment with the Company or any of its subsidiaries.
Other than in connection with the performance of your duties for the Company or in case of a court order or subpoena, you will not disclose to any person or entity any information obtained by you while in the employ of the Company, the disclosure of
which may be adverse to the interests of the Company, or use any such information to the detriment of the Company. You understand that your commitments in this paragraph are in exchange for the Company’s commitments to you in this Agreement,
and that the restrictions contained in the preceding two sentences apply after your employment terminates, regardless of the reason for such termination. 
 Successors. The Company shall obtain from any successor, prior to or concurrently with the succession, an agreement to assume the obligations and perform all of the terms and conditions of this
Agreement. 
 Director and Officer Insurance and Indemnification. The Company shall obtain and pay the premiums for a director
and officer insurance policy with scope and amounts of coverage consistent with coverage provided to other members of the Board and shall name you as an insured under the policy with the same coverage at such time as other current and former
directors and officers of the Company. The Company shall further indemnify you and hold you harmless and advance expenses as provided under the Company’s certificate of incorporation and by-laws in effect from time to time to the fullest extent
permitted under applicable law. 
  

 4 

 Miscellaneous. The headings in this Agreement are for convenience only and do not affect
the meaning hereof. This Agreement (together with the Program) constitutes the entire agreement between the Company and you, and supersedes any prior communications, agreements and understandings, whether written or oral, with respect to your
employment and compensation and all matters pertaining thereto. This Agreement shall be governed by and construed in accordance with the law of the State of California. Please also understand that by no means does the Company wish you to undertake
any activities on behalf of Charlotte Russe that would cause you to violate the terms of any noncompete agreement or any other obligation you may be under by virtue of your employment prior to the Company or otherwise, and you expressly agree that
you shall not do so in connection with your employment with the Company. 
 Legal Fees. The Company will reimburse the
Employee for reasonable and verifiable legal fees incurred in connection with the preparation of this Agreement in an amount not to exceed $15,000, subject to the Employee’s provision of invoices or other documentation evidencing such expenses
no later than 90 days after Employee incurred such expenses. Such reimbursement payment shall be made by the Company as soon as practicable following its receipt of such documentation, but in no event later than the end of the Employee’s
taxable year following the year in which the Employee incurred such expenses. 
 Disputes. Any dispute between the Company and
you concerning the meaning or interpretation of this Agreement, or any alleged breach thereof, shall be resolved in a binding arbitration to be conducted in San Diego, California before a single neutral arbitrator to be selected by the parties
from a list of arbitrators on the Employment Dispute Panel of the Judicial Arbitration and Mediation Service. Arbitration shall be initiated by the party desiring arbitration by serving written notice to the other party. Said arbitration shall be
conducted no later than 120 days following the date of said written notice, absent the written agreement of the parties otherwise. 
 Partial Invalidity. If the application of any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall not be affected, but will continue to be given full force and in effect as if the part
held invalid or unenforceable had not been included. 
 Acceptance. In accepting the terms and conditions reflected in this
Agreement, you represent that you have not relied on any agreement or representation, oral or written, express or implied, that is not set forth expressly in this Agreement. If this Agreement reflects your understanding, please sign and return a
copy to me, whereupon it shall become a binding agreement between the Company and you. 
  

									
	Very truly yours,	 		 		 	
				
	Charlotte Russe Holding, Inc.	 		 		 	
					
	By:	 	/s/ Jennifer Salopek	 		 		 	
		 	Jennifer Salopek	 		 		 	
		 	Chairman of the Board	 		 		 	
	
	Accepted and Agreed To:
				
	/s/ John Goodman	 		 		 	11/7/08            
	John Goodman	 		 		 	Date

  

 5

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