Document:

Financial Advisory Agreement (PCap, L.P.)

 Exhibit 10.20 
 KAR Holdings, Inc. 
 c/o Kelso & Company, L.P. 
 320 Park Avenue, 24th Floor 
 New York, NY 10022 
 April 20, 2007 
 PCap, L.P. 
 75 State Street 
 Boston, Massachusetts 02109 
 Ladies and Gentlemen: 
 KAR Holdings, Inc. (the “Company”) hereby agrees to retain you,
PCap, LP (“PCap”), and any of your affiliates or designees (collectively, with PCap, the “Parthenon Capital Group”), to provide consulting and advisory services to the Company commencing on the Closing Date (as
defined in the Agreement and Plan of Merger by and among ADESA, Inc. (“ADESA”), the Company, KAR Holdings II, LLC and KAR Acquisition, Inc., dated as of December 22, 2006 (the “Merger Agreement”)) for a term
ending on the date on which PCap and its affiliates (including Axle Holdings II, LLC and PCap KAR LLC) cease to own, directly or indirectly, any equity interests of the Company. Such services may include (i) assisting in the raising of
additional debt and equity capital from time to time for the Company or any of its Subsidiaries, if deemed advisable by the Board of Directors of the Company, (ii) assisting the Company and its Subsidiaries in their long-term strategic
planning generally, (iii) providing the Company with financial, investment banking, management advisory and other services with respect to proposed transactions directly or indirectly involving the Company or any of its subsidiaries
(collectively, the “Transaction Services”) and (iv) providing such other consulting and advisory services as the Company may reasonably request. 
 In consideration of the Parthenon Capital Group’s providing the foregoing services (other than the Transaction Services), the Company will, or will
cause one of its Subsidiaries, to pay PCap (i) a fee of $2,678,843.71 in cash, which amount shall be paid substantially concurrently with the consummation of the merger of KAR Acquisition, Inc. with and into ADESA pursuant to the terms
of the Merger Agreement (the “Merger”), and (ii) an annual advisory fee of $287,368.91, payable quarterly in advance on January 1, April 1, July 1 and October 1 (or the first business day
following each such date), provided that the first payment shall be due on the Closing Date and shall be in an amount pro-rated for the period from the Closing Date to the end of the then current fiscal quarter. If the Parthenon Capital Group
invests, directly or indirectly, additional equity in the Company or any of its affiliates on one or more occasions after the Closing Date, then, in each such case, the Company and PCap will negotiate in good faith to effect a mutually acceptable
increase to such advisory fee. In consideration of the Parthenon 

 
Capital Group’s providing Transaction Services, the Company will pay PCap a fee to be agreed between the Company and PCap. The Company shall reimburse
PCap promptly for the Parthenon Capital Group’s out-of-pocket costs and expenses incurred in connection with any investment by the Parthenon Capital Group, directly or indirectly, in the Company or any of its affiliates, whether made on or
after the Closing Date, including any investment in connection with the transactions contemplated by the Merger Agreement (the “Acquisition”) and including in connection with any sale or transfer, directly or indirectly, of its
equity interests in the Company or any affiliates. Such costs and expenses shall include, but not be limited to, those incurred by the Parthenon Capital Group in the course of monitoring its investment in the Company and performing PCap’s
duties (including, without limitation, Transaction Services) hereunder. 
 The Company will indemnify each member of the Parthenon Capital
Group, and their respective officers, directors, partners, employees, agents and control persons (as such term is used in the Securities Act of 1933, as amended, and the rules and regulations thereunder) to the full extent lawful against any and all
claims, losses and expenses as incurred (including all reasonable fees and disbursements of any such indemnitee’s counsel and other out-of-pocket expenses incurred in connection with the investigation of and preparation for any such pending or
threatened claims and any litigation or other proceedings arising therefrom) arising in connection with the Merger, the Acquisition, any of the transactions contemplated by the Merger Agreement (including the financing of the Merger), which includes
any investment made by the Parthenon Capital Group in Axle Holdings II, LLC (and, indirectly, Insurance Auto Auctions, Inc.) prior to the Closing Date (the “IAAI Acquisition”), or such indemnitee’s investment in the Acquisition
or the IAAI Acquisition or out of any services rendered by the Parthenon Capital Group hereunder and / or any such indemnitee being a controlling person of the Company or any of its subsidiaries; provided, however, there shall be
excluded from such indemnification any such claim, loss or expense to the extent that it is based upon any action or failure to act by such indemnitee that is found in a final judicial determination to constitute gross negligence or intentional
misconduct on such indemnitee’s part; provided, further, however, there shall also be excluded from such indemnification any such claim, loss or expense to the extent that it is based solely upon a breach of the
Contribution Agreement, dated as of the date hereof, by and among Axle Holdings II, LLC, the Company and the other parties named therein. The Company will advance costs and expenses, including attorney’s fees, incurred by any such indemnitee in
defending any such claim in advance of the final disposition of such claim upon receipt of an undertaking by or on behalf of such indemnitee to repay amounts so advanced if it shall ultimately be determined that such indemnitee is not entitled to be
indemnified by the Company pursuant to this Agreement. 
 The Company’s obligations set forth in this Agreement shall survive the
termination of PCap’s services pursuant to the first paragraph of this Agreement. 
  

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 This Agreement may not be amended or revised except by a writing signed by the parties. 
 This agreement shall be governed by the laws of the State of New York. 
 [remainder of the page intentionally left blank] 
  

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 If you are in agreement with the foregoing, kindly so indicate by signing a counterpart of this letter,
whereupon it will become a binding agreement between us. 
  

			
	Very truly yours,
	
	KAR HOLDINGS, INC.
		
	By:	 	 /s/ Church M. Moore

	Name:	 	Church M. Moore
	Title:	 	Vice President

  

			
	Agreed and accepted:
	
	PCAP, LP
		
	By:	 	PCap Managers, LLC
		
	Its:	 	General Partner
		
	By:	 	 /s/ David Ament

	Name:	 	David Ament
	Title:2007 Incentive Plan Executive Management of Insurance Auto Auctions, Inc.

 Exhibit 10.21 
 Insurance Auto Auctions, Inc. 
 2007 Incentive Plan 
 Executive Management 

 Insurance Auto Auctions, Inc. 
 2007 Incentive Plan – Executive Management 
 SECTION 1 OBJECTIVE 

The purpose of this 2007 Incentive Plan – Executive Management (the “Plan”) is to motivate and reward key executives and management personnel
responsible for the successful achievement of Insurance Auto Auctions, Inc. (the “Company”) financial goals along with specific personal goals during the Plan year. Performance will be evaluated against pre-determined financial objectives
so that each Participant will know what specific performance will be required to achieve an incentive award. 
 SECTION 2 EFFECTIVE DATE

 This Plan is effective January 1, 2007. The Plan year shall coincide with the Company’s fiscal year. The Company reserves the right to revise
or terminate the Plan at any time, with or without advance notice. 
 SECTION 3 PARTICIPATION 
 Only personnel whose responsibilities and accomplishments can be directly identified with the achievement of major business goals are eligible to participate. The
participants in the Plan (the “Participants”) and their incentive opportunity at target shall be determined by the Company’s compensation committee of the Board of Directors (the “Compensation Committee”). 
 No employee shall have a right to be selected as a Participant in any year, or having been selected as a Participant for one year, to be a Participant in any other year.
Participation does not constitute a guarantee of employment for the entire Plan year, or any specific time period. 
 SECTION 4 ELIGIBILITY 

 Key executives are eligible to participate in the Program provided the Chief Executive Officer approves them. The Company’s Chief Executive Officer
shall approve individual Participants and their target incentive opportunity for the Plan year as well as any changes in Target Incentive Opportunities during the Plan year, as changes in assignments warrant. 
 The Company’s Chief Executive Officer must approve additions to the Executive Incentive Plan after the start of the Plan year and prior to October 1, 2007.
After October 1, 2007 additional Participants will not be added to the Plan until the beginning of the next Plan year. The amount of incentive award paid will be prorated based on the employee’s date of Plan entrance or employment. These
same guidelines apply to employees who are promoted into an incentive plan position during the year. 

 Any actions taken by the Company’s Chief Executive Officer pursuant to this Section 4 shall be subject to the
approval of the Compensation Committee. 
 SECTION 5 INCENTIVE OPPORTUNITY 
 Incentive opportunities are expressed as a percentage of total base salary for the plan year and vary by organization level. 
 SECTION 6 INCENTIVE AWARDS 
 Incentive awards are earned based on achievement of specific objectives. For the 2007 fiscal year, each
Participant’s incentive award will be based upon obtaining the EBITDA target, as determined by the Compensation Committee. 
 Each year budgets are
prepared and submitted to the Company’s Chief Executive Officer and Board of Directors for review and approval. In order for the incentive plan to be truly motivational and assist in achieving corporate growth objectives, two principles will be
adhered to closely: 
  

	 	•	 	 Budgets must be realistic, yet rigorous. Budgets should set attainable goals; yet, to attain these goals above average performance will be required. Presumably,
base salary is being paid for average performance and is thus sufficient. 

  

	 	•	 	 Equity requires that each budget have relatively equal “stretch”. The Chief Executive Officer will review each budget to evaluate the
“stretch”. 

 Incentive Awards will be based on achievement of specific objectives as determined by the Compensation Committee.
The Company must achieve at least 90% of the EBITDA target before any incentive awards are earned. Overall percentage achievement above plan will be factored up 100% to arrive at the payout percentage. Overall percentage achievement below plan will
be factored down by 50% to arrive at the payout percentage. For example, the incentive factor would require payout at 120% of target for 10% above plan performance. 
 Maximum achievement will be 130%. Using the incentive factors, this results in an initial payout of 85% of target once the threshold is achieved to a maximum payout of 160% of target. 
 The Chief Executive Officer has the right to designate individual goals and objectives for specific Participants as a part of their incentive calculation, subject to the
approval of the Compensation Committee. 

 SECTION 7 DEFINITION OF FINANCIAL PERFORMANCE 
 The financial performance measurement for awards under this Plan shall be calculated based on attaining the EBITDA target determined by the Compensation Committee. 
 EBITDA is defined as earnings before interest, tax, depreciation, amortization and other non-cash items. The Compensation Committee shall adjust EBITDA and the EBITDA
target for acquisitions and dispositions, including transaction expenses related thereto. The Committee’s determination on the EBITDA calculation shall be final and conclusive. 
 SECTION 8 PLAN ADMINISTRATION 
 The Chief Executive Officer of Insurance Auto Auctions, Inc. will approve final
bonus recommendations and authorize the distribution of incentive bonus checks to Participants after approval. The Chief Executive Officer, acting under the direction of the Compensation Committee, is the final authority to resolve any issues or
disputes that arise in the administration of the plan. 
 Adjustments to the Incentive Plan Awards may be made to reflect changes in responsibility, account
reassignment, etc., at the discretion of the Company. Any amendments to the Plan or adjustments to an award must be approved by the Company’s Chief Executive Officer. 
 The cost of the incentive pool will be recognized through the monthly accrual of funds equivalent to the total target award payment for all Participants divided by 12 months. Accruals will be adjusted based on actual
financial performance against financial plan goals. 
 SECTION 9 INCENTIVE AWARD PAYMENT 
 Incentive payments to eligible Participants will be made within 90 days after year-end (but not before completion of the annual audit of the Company’s financial
statements). Participants must be on the payroll and in good standing on the date awards are paid to be eligible for an award payment. 
 SECTION
10 TERMINATIONS 
 The following provisions will cover Participants whose employment with the Company terminates during the Plan year: 
  

	 	•	 	 Participants voluntarily terminating their employment or Participants discharged for cause forfeit all rights to any incentive award payment under this Plan. The
Company shall have the sole right to determine what constitutes “cause” for purposes of this paragraph. 

  

	 	•	 	 Prorated incentive awards will be paid to Participants whose employment with the company terminates during the Plan year due to retirement, permanent and total
disability, or death. Pro-rated incentive awards will be also be paid to Participants who are granted a leave of absence during the Plan year. 

 SECTION 11 ASSIGNMENTS AND TRANSFERS 
 The rights and interests of a Participant under the Plan may not be assigned, encumbered or transferred except, in the event of the death of a Participant, to his/her designated beneficiary, or in the absence of such
designation by will or the laws of descent and distribution. 
 SECTION 12 PLAN ADJUSTMENTS 
 The Compensation Committee may make adjustments as it deems advisable in order to give consideration to distinguished performance, changes in accounting rules,
principles, or methods, disputes that may arise, or other extraordinary and to adjust Financial Performance measures in recognition of such occurrence.

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