Document:

Exhibit 10.2

  

  

  TAX MATTERS AGREEMENT

  

  

  by and between

  

  

  KAR AUCTION SERVICES, INC.

  

  

  and

  

  

  IAA, INC.

  

  

  Dated as of June 27, 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

          	
            11

          
	
            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

          	
            13

          
	
            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

          	
            24

          
	 	 	 
	
            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

          	
            25

          
	
            Section 6.5

          	
            Obligation of Continued Notice

          	
            25

          
	
            Section 6.6

          	
            Settlement Rights

          	
            25

          
	
            Section 6.7

          	
            Tax Contest Costs and Expenses.

          	
            26

          
	 	 	 
	
            ARTICLE VII

          
	 	 	 
	
            COOPERATION

          
	 	 	 
	
            Section 7.1

          	
            General

          	
            26

          
	
            Section 7.2

          	
            Consistent Treatment

          	
            27

          
	 	 	 
	
            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

          	
            28

          
	
            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

          
	 	 	 
	  EXHIBITS 
	 
	Exhibit A 

          	Separation Plan 

          	 

  

  

  

  

  

            

    

  

  

  

    

    

  

  
    iii

    
      

  

  
  TAX MATTERS AGREEMENT

  

  

  This TAX MATTERS AGREEMENT (this “Agreement”), is entered into as of June 27, 2019, between KAR Auction Services, Inc. (“KAR”), a
      Delaware corporation, and IAA, 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 the 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 Spinco Contribution which, in exchange therefor, Spinco shall: (i) issue to KAR the Spinco Shares and (ii) distribute to KAR the Cash Distribution;

  

  

  WHEREAS, following the completion of the Internal Restructuring and the Separation, 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 and shall transfer the Cash Distribution to certain of its creditors (the “Distribution” and, together
      with the Internal Restructuring and the Separation, 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 Separation 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” shall have the meaning set forth in the Separation and Distribution Agreement.

     

  

  

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

  
    6

    
      

  

  

  

  “Separation Plan” shall mean the step plan attached hereto as Exhibit A.

  

  

  “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, election, 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.

  
    9

    
      

  

  

  

  (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.

  

  

          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.

  
    10

    
      

  

  

  

          Section 2.5  State Tax Relating to Separate 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 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:

  
    11

    
      

  

  (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.

  

  

  (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.

  
    12

    
      

  

  

  

          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.

  

  

  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.

  
    13

    
      

  

  

  

  (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.

  

  

  (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 amended Tax Return or 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.

  
    18

    
      

  

  

  

  (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.

  

  

  (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),
    Section  4.3(b), or  Section 4.3(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).

  
    23

    
      

  

          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.

  

  

  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.

  
    24

    
      

  

          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.

  

  

          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.

  
    25

    
      

  

  

  

  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.

  

  

  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.

  
    26

    
      

  

  

  

  

  

  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.

  

  

  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 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.

  
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  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.

  

  

          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.

  
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          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

          
	 	 	
            Email:

          	
            becca.polak@karauctionservices.com

          
	 	 	
            Attention:

          	
            Chief Legal Officer

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

          
	 	 	 
	 	 	
            Skadden, Arps, Slate, Meagher & Flom LLP

          
	 	 	
            Four Times Square

          
	 	 	
            New York, New York 10036

          
	 	 	
            Email:

          	
            Sean.Doyle@skadden.com

          
	 	 	 	
            Gregory.Fernicola@skadden.com

          
	 	 	 	
            Dwight.Yoo@skadden.com

          
	 	 	
            Attention:

          	
            Sean C. Doyle

          
	 	 	 	
            Gregory A. Fernicola

          
	 	 	 	
            Dwight S. Yoo

          
	 	 
	 	
            If to SpinCo, to:

          
	 	 	 
	 	 	
            Insurance Auto Auctions, Inc.

          
	 	 	
            Two Westbrook Corporate Center, Suite 500

          
	 	 	
            Westchester, Illinois 60154

          
	 	 	
            Email:

          	
            jkett@iaai.com

          
	 	 	 	
            skerley@iaai.com

          
	 	 	
            Attention:

          	
            John Kett

          
	 	 	 	
            Sidney Peryar

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

          
	 	 	 
	 	 	
            Skadden, Arps, Slate, Meagher & Flom LLP

          
	 	 	
            Four Times Square

          
	 	 	
            New York, New York 10036

          
	 	 	
            Email:

          	
            Sean.Doyle@skadden.com

          
	 	 	 	
            Gregory.Fernicola@skadden.com

          
	 	 	 	
            Dwight.Yoo@skadden.com

          
	 	 	
            Attention:

          	
            Sean C. Doyle

          
	 	 	 	
            Gregory A. Fernicola

          
	 	 	 	
            Dwight S. Yoo

          

    

    

     

  
    30

    
      

  

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

  

  

  *          *          *

  

  

  [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

  
    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:

        	/s/ Eric M. Loughmiller

        
	 	 	
          Name: Eric M. Loughmiller

        
	 	 	
          Title: Executive Vice President and Chief Financial Officer

          

        
	 	 	 
	 	
          IAA, Inc.

        
	 	 	 
	 	
          By:

        	/s/ John W. Kett

        
	 	 	
          Name: John W. Kett

          

        
	 	 	
          Title: Chief Executive Officer and President

          

        

  

  

  
    32

    
      

  

  EXHIBIT A

  

  

  [Separation Plan]

   

    

  33Exhibit 10.3

        

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      EMPLOYEE MATTERS AGREEMENT

      

      

      BY AND BETWEEN

      

      

      KAR AUCTION SERVICES, INC.

      

      

      AND

      

      

      IAA, INC.

      

      

      DATED AS OF JUNE 27, 2019

        

       

        

       

        

       

        

      

        

      

        

       

        

       

        

       

        

      
        
          

      

      

      

      	
              TABLE OF CONTENTS

            
	 	 	 
	 	 	
               Page

            
	 	 	 
	
              Article I

            
	 	 	 
	
              DEFINITIONS

            
	 	 	 
	
              Section 1.01

            	
              Definitions

            	
              1

            
	
              Section 1.02

            	
              Interpretation

            	 3

            
	 	 	 
	
              Article II

            
	 	 	 
	
              GENERAL PRINCIPLES FOR ALLOCATION OF LIABILITIES

            
	 	 	 
	
              Section 2.01

            	
              General Principles

            	 4

            
	
              Section 2.02

            	
              Service Credit

            	 5

            
	
              Section 2.03

            	
              Benefit Plans

            	 5

            
	
              Section 2.04

            	
              Individual Agreements

            	 6

            
	
              Section 2.05

            	
              Non-U.S. Jurisdictions

            	 6

            
	Section 2.06 

            	Assignment and Assumption of Assets and Liabilities 

            	6 

            
	 	 	 
	
              Article III

            
	 	 	 
	
              ASSIGNMENT OF EMPLOYEES

            
	 	 	 
	
              Section 3.01

            	
              Active Employees

            	 7

            
	 	 	 
	
              Article IV

            
	 	 	 
	
              EQUITY, INCENTIVE AND EXECUTIVE COMPENSATION

            
	 	 	 
	
              Section 4.01

            	
              Generally

            	 8

            
	
              Section 4.02

            	
              Equity Incentive Awards

            	 8

            
	
              Section 4.03

            	
              Non-Equity Incentive Plans

            	
              11

            
	
              Section 4.04

            	
              Director Compensation

            	
              11

            
	 	 	 
	
              Article V

            
	 	 	 
	
              U.S. QUALIFIED RETIREMENT PLANS

            
	 	 	 
	
              Section 5.01

            	
              SpinCo U.S. Savings Plan

            	
              12

            
	 	 	 
	
              Article VI

            
	 	 	 
	
              Director Deferred Compensation Plan

            
	 	 	 
	
              Section 6.01

            	
              KAR

            	 13

            
	
              Section 6.02

            	
              SpinCo.

            	 13

            
	 	 	 
	
              Article VII

            
	 	 	 
	
              WELFARE BENEFIT PLANS

            
	 	 	 
	
              Section 7.01

            	
              Welfare Plans

            	 14

            
	
              Section 7.02

            	
              U.S. COBRA and HIPAA

            	 14

            
	
              Section 7.03

            	
              Vacation, Holidays and Leaves of Absence

            	 15

            
	
              Section 7.04

            	
              Severance and Unemployment Compensation

            	 15

            
	
              Section 7.05

            	
              Workers’ Compensation

            	 15

            
	
              Section 7.06

            	
              Insurance Contracts

            	 15

            
	
              Section 7.07

            	
              Third-Party Vendors

            	 15

            
	
              Section 7.08

            	
              SpinCo Retained Welfare Plans

            	 15

            

      

      

      i

      

      
        
          

      

      

      

      	 	 	 
	
              Article VIII

            
	 	 	 
	
              NON-U.S. EMPLOYEES

            
	 	 	 
	
              Section 8.01

            	
              General

            	 16

            
	 	 	 
	
              Article IX

            
	 	 	 
	
              MISCELLANEOUS

            
	 	 	 
	
              Section 9.01

            	
              Employee Records

            	 16

            
	
              Section 9.02

            	
              Preservation of Rights to Amend

            	 16

            
	
              Section 9.03

            	
              Fiduciary Matters

            	 17

            
	
              Section 9.04

            	
              Further Assurances

            	 17

            
	
              Section 9.05

            	
              Counterparts; Entire Agreement; Corporate Power

            	 17

            
	
              Section 9.06

            	
              Governing Law

            	 17

            
	
              Section 9.07

            	
              Assignability

            	 17

            
	
              Section 9.08

            	
              Third-Party Beneficiaries

            	 18

            
	
              Section 9.09

            	
              Notices

            	 18

            
	
              Section 9.10

            	
              Severability

            	 18

            
	
              Section 9.11

            	
              Force Majeure

            	 19

            
	
              Section 9.12

            	
              Headings

            	 19

            
	
              Section 9.13

            	
              Survival of Covenants

            	 19

            
	
              Section 9.14

            	
              Waivers of Default

            	 19

            
	
              Section 9.15

            	
              Dispute Resolution

            	 19

            
	
              Section 9.16

            	
              Specific Performance

            	 19

            
	
              Section 9.17

            	
              Amendments

            	 19

            
	
              Section 9.18

            	
              Interpretation

            	 19

            
	
              Section 9.19

            	
              Limitations of Liability

            	 19

            
	
              Section 9.20

            	
              Mutual Drafting

            	 19

            

      

      

      ii

      

      
        
          

      

      

      

      EMPLOYEE MATTERS AGREEMENT

      

      

      This EMPLOYEE MATTERS AGREEMENT, dated as of June 27, 2019 (this “Agreement”), is by and between KAR Auction Services, Inc., a Delaware corporation (“KAR”), and IAA, Inc., a Delaware
        corporation and wholly owned subsidiary of KAR (“SpinCo”).

      

      

      WHEREAS, as contemplated by the Separation and Distribution Agreement between KAR and SpinCo dated June 27, 2019, KAR and SpinCo desire to enter into this Agreement to provide for the allocation of
        Assets, Liabilities, and responsibilities with respect to certain matters relating to employees and other individual service providers (including employee compensation and benefit plans and programs) between them.

      

      

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

      

      

      ARTICLE I

      

      

      DEFINITIONS

      

      

      Section 1.01            Definitions.  For purposes of this Agreement, the following terms shall have the
        meanings set forth below.  Capitalized terms used in this Agreement but not otherwise defined herein shall have the meanings ascribed to them in the Separation and Distribution Agreement.

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

      “Agreement” shall have the meaning set forth in the preamble to this Agreement and shall include all Schedules hereto (which may be delivered as soon as practicable following the Effective
        Time) and all amendments, modifications, and changes hereto entered into pursuant to Section 9.17.

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      
        
          

      

      
      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

          4.02.

      

      

      “Party” shall mean a party to this Agreement.

      

      

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

      

      

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

      
        2

        
          

      

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

      “SpinCo Savings Plan” shall mean the IAA 401(k) Plan.

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      
        3

        
          

      

      

      

      ARTICLE II

      

      

      GENERAL PRINCIPLES FOR ALLOCATION OF LIABILITIES

      

      

      Section 2.01            General Principles.

      

      

      (a)            Acceptance and Assumption of SpinCo Liabilities. 

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

      (b)            Acceptance and Assumption of KAR Liabilities. 

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      
        4

        
          

      

      

      

      Section 2.02            Service Credit.

      

      

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

      

      

      (b)            Evidence of Prior Service. 
        Notwithstanding anything in this Agreement to the contrary, but subject to Section 3.02 and applicable Law, upon reasonable request by either Party (the “Requesting Party”), the other Party (the “Providing Party”) will provide
        to the Requesting Party copies of any records available to the Providing Party to document the service, plan participation and membership of Former Employees of the Providing Party who are then Employees of the Requesting Party, and will cooperate
        with the Requesting Party to resolve any discrepancies or obtain any missing data for purposes of determining benefit eligibility, participation, vesting and calculation of benefits with respect to any such Employee.

       

        

      Section 2.03            Benefit Plans.

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      
        5

        
          

      

      

      

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

      

      

      Section 2.04            Individual Agreements.

      

      

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

      

      

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

      

      

      (c)            Enforcement Rights.

      

      

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

      

      

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

      

      

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

      

      

      

      Section 2.05            Non-U.S. Jurisdictions.  Except as expressly set forth herein, the provisions of this Agreement shall apply
        in respect of all jurisdictions wherever situated; provided, however, that to the extent an Ancillary Agreement or an appendix attached hereto or a separation agreement between the Parties addresses employment, compensation and
        employee benefit matters, the terms of such Ancillary Agreement, appendix or separation agreement shall govern in respect of matters relating to employees employed in the applicable jurisdiction. KAR shall have the authority to adjust the treatment
        described in this Agreement (including any appendix attached hereto) or an Ancillary Agreement with respect to SpinCo Group Employees who are located outside of the United States in order to address different plans or benefits not addressed herein
        or to address applicable plans and benefits in a manner appropriate to the jurisdiction; ensure compliance with the applicable laws or regulations of countries outside of the United States; or to preserve the tax benefits provided under local tax
        law or regulation before the Distribution.

      

        Section 2.06            Assignment and Assumption of
            Assets and Liabilities.

        

        

        (a)            Effective as of the Distribution Date, KAR
            assigns all of KAR’s or any member of the KAR Group’s rights and obligations under any arrangements (and all Assets and Liabilities related thereto) that transfer to SpinCo in accordance with the terms of this Agreement, subject to the terms
            and conditions thereof, to SpinCo or, if applicable, the appropriate member of the SpinCo Group, and SpinCo or any such member of the SpinCo Group accepts such assignment and assumes such arrangements, and agrees to be bound by the terms and
            provisions contained therein.

        

        

        (b)            Effective as of the Distribution Date,
            SpinCo assigns all of SpinCo’s or any member of the SpinCo Group’s rights and obligations under any arrangements (and all Assets and Liabilities related thereto) that transfer to KAR in accordance with the terms of this Agreement, subject to
            the terms and conditions thereof, to KAR or, if applicable, the appropriate member of the KAR Group, and KAR or any such member of the KAR Group accepts such assignment and assumes such arrangements, and agrees to be bound by the terms and
            provisions contained therein.

        

        

        (c)            Each of the Parties shall execute and
            deliver such additional documents, instruments, conveyances and assurances, and take such further actions as may be reasonably required to carry out the provisions of this Section 2.06.

        

        

      

      
        6

        
          

      

      

      

      ARTICLE III

      

      

      ASSIGNMENT OF EMPLOYEES

      

      

      Section 3.01            Active Employees.

      

      

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

      

      

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

      

      

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

      

      

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

      
        7

        
          

      

      

      

      ARTICLE IV

      

      

      EQUITY, INCENTIVE AND EXECUTIVE COMPENSATION

      

      

      Section 4.01            Generally.  Each KAR Award granted that is outstanding as of immediately prior to the Effective Time shall
        be adjusted as described below; provided, however, that, effective immediately prior to the Effective Time, the KAR Compensation Committee may provide for different adjustments with respect to some or all KAR Awards to the extent
        that the KAR Compensation Committee deems such adjustments necessary and appropriate.  Any adjustments made by the KAR Compensation Committee pursuant to the foregoing sentence shall be deemed incorporated by reference herein as if fully set forth
        below and shall be binding on the Parties and their respective Affiliates.  Before the Effective Time, the SpinCo Long Term Incentive Plan shall be established, with such terms as are necessary to permit the implementation of the provisions of Section

          4.02. The adjustment or conversion of any KAR Award shall be effectuated in a manner that is intended to avoid the imposition of any penalty or other taxes on the holders thereof pursuant to Code Section 409A and, with respect to holders of
        KAR Awards who are Canadian taxpayers, in a manner consistent with the applicable conversion provisions of the Income Tax Act (Canada).

      

      

      Section 4.02            Equity Incentive Awards.

      

      

      (a)            Stock Options.

      

      

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

      

      

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

      

      

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

      

      

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

      

      

      (ii)            Option Terms.

      

      

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

      

      

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

      
        8

        
          

      

      

      

      (b)            PRSUs.

      

      

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

       

      

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

      

      

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

      

      

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

      

      

      (c)            RSUs.

      

      

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

      

      

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

      

      

      (d)            Director Restricted Stock.

      

      

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

      

      

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

      
        9

        
          

      

      

      

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

      

      

      (f)            PRSU/RSU Dividend Equivalents.  Holders of SpinCo RSUs and SpinCo PRSUs who have a
        right to receive dividend equivalents with respect to SpinCo Shares underlying such award, will accrue such dividend equivalents and be paid by SpinCo to holders who are SpinCo Group Employees or KAR Group Employees, in each case on the payment
        date of the related SpinCo RSUs or SpinCo PRSUs (subject to the award vesting on such date); provided, however, that any interest payments that are payable with respect to such dividend equivalents will be sole responsibility of
        SpinCo for holders who are SpinCo Group Employees and KAR for holders who are KAR Group Employees.  Holders of KAR RSUs and KAR PRSUs who have a right to receive dividend equivalents with respect to KAR Shares underlying such award, will accrue
        such dividend equivalents and be paid by KAR to holders who are SpinCo Group Employees or KAR Group Employees, in each case on the payment date of the related KAR RSUs or KAR PRSUs (subject to the award vesting on such date); provided, however,
        that any interest payments that are payable with respect to such dividend equivalents will be sole responsibility of SpinCo for holders who are SpinCo Group Employees and KAR for holders who are KAR Group Employees. Notwithstanding

        the foregoing, if the terms of the applicable awards provide that dividend equivalent rights shall increase the amount of shares subject to the award by the fair market value of any dividend, then KAR shall issue such additional shares with respect
        to KAR RSUs and KAR PRSUs and SpinCo shall issue such additional shares with respect to SpinCo RSUs and SpinCo PRSUs, in each case without regard to whether such awards are held by KAR Group Employees or SpinCo Group Employees.

      

      

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

      

      

      (h)            Change in Control.  Following the Distribution Date, for any award under this Section

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

      

      

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

      

      

      (j)            Partial Interests in Shares.  Except

          with respect to any fractional interest in a Restricted Stock Award, which shall be treated in accordance with Section 3.4 of the
        Separation and Distribution Agreement, each interest in a fractional KAR Share with respect to any KAR Award that is held by a KAR Service Provider or a SpinCo Service Provider and that is
        outstanding immediately prior to the Effective Time shall remain outstanding and, to the extent administratively practicable, shall be subject to the adjustment set forth in this Section 4.02 in the same manner as a whole KAR Share.

      

      

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

      

      

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

      
        10

        
          

      

      

      

      (m)            Employee Stock Purchase Plan.

      

      

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

      

      

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

      

      

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

      

      

      Section 4.03            Non-Equity Incentive Plans.

      

      

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

      

      

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

      

      

      Section 4.04            Director Compensation.

      

      

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

      

      

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

      

      

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

      
        11

        
          

      

      

      

      ARTICLE V

      

      

      U.S. QUALIFIED RETIREMENT PLANS

      

      

      Section 5.01            SpinCo U.S. Savings Plan.

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      
        12

        
          

      

      

      

      ARTICLE VI

      

      

      DIRECTOR DEFERRED COMPENSATION PLAN

      

      

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

      

      

      Section 6.02            SpinCo.

      

      

      (a)            As of the Effective Time, SpinCo shall adopt a new nonqualified deferred compensation plan (the “SpinCo Director Plan”).

        All Transferred Directors who participated in the KAR Director Plan immediately prior to the Effective Time shall be eligible to participate in the SpinCo Director Plan to the same extent that such Transferred Director participated in the KAR
        Director Plan prior to the Effective Time (the “Covered Participants”). The SpinCo Director Plan shall assume the obligations of the KAR Director Plan with respect to the Covered Participants whether such benefits accrued before, on or after
        the Effective Time.

      

      

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

      

      

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

      

      

      (d)            Obligations and Liabilities.

      

      

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

      

      

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

      
        13

        
          

      

      

      

      ARTICLE VII

      

      

      WELFARE BENEFIT PLANS

      

      

      Section 7.01            Welfare Plans.

      

      

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

      

      

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

      

      

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

      

      

      (b)            U.S. Health Savings Accounts.  Prior to January 1, 2020, SpinCo shall, or shall
        cause a member of the SpinCo Group to, establish a SpinCo Welfare Plan that will provide health savings account benefits to SpinCo Group Employees on and after January 1, 2020.

      

      

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

      

      

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

      

      

      Section 7.02            U.S. COBRA and HIPAA.  The KAR Group shall continue to be responsible for complying with, and providing
        coverage pursuant to, the health care continuation requirements of COBRA, the certificate of creditable coverage requirements of HIPAA, and the corresponding provisions of the KAR Welfare Plans with respect to any KAR Group Employees and any Former
        KAR Group Employees (and their covered dependents) who incur a qualifying event under COBRA before, as of, or after the Effective Time.  Effective as of the Effective Time, the SpinCo Group shall assume responsibility for complying with, and
        providing coverage pursuant to, the health care continuation requirements of COBRA, the certificate of creditable coverage requirements of HIPAA, and the corresponding provisions of the SpinCo Welfare Plans with respect to any SpinCo Group
        Employees or Former SpinCo Group Employees (and their covered dependents) who incur a qualifying event or loss of coverage under the KAR Welfare Plans and/or the SpinCo Welfare Plans before, as of, or after the Effective Time.  The Parties agree
        that the consummation of the transactions contemplated by the Separation and Distribution Agreement shall not constitute a COBRA qualifying event for any purpose of COBRA.

      
        14

        
          

      

      

      

      Section 7.03            Vacation, Holidays and Leaves of Absence.  Effective as of the Effective Time, the SpinCo Group shall
        assume all Liabilities of the KAR Group with respect to vacation, holiday, annual leave or other leave of absence, and required payments related thereto, for each SpinCo Group Employee. The KAR Group shall retain all Liabilities with respect to
        vacation, holiday, annual leave or other leave of absence, and required payments related thereto, for each KAR Group Employee.

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      
        15

        
          

      

      

      

      ARTICLE VIII

      

      

      NON-U.S. EMPLOYEES

      

      

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

      

      

      ARTICLE IX

      

      

      MISCELLANEOUS

      

      

      Section 9.01            Employee Records.

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

      Section 9.02            Preservation of Rights to Amend.  The rights of each member of the KAR Group and each member of the SpinCo
        Group to amend, waive, or terminate any plan, arrangement, agreement, program, or policy referred to herein shall not be limited in any way by this Agreement.

      
        16

        
          

      

      

      

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

      

      

      Section 9.04            Further Assurances.  Each Party hereto shall take, or cause to be taken, any and all reasonable actions,
        including the execution, acknowledgment, filing and delivery of any and all documents and instruments that any other Party hereto may reasonably request in order to effect the intent and purpose of this Agreement and the transactions contemplated
        hereby.

      

      

      Section 9.05            Counterparts; Entire Agreement; Corporate Power.

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

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

      

      

      Section 9.06            Governing Law.  This Agreement (and any claims or disputes arising out of or related hereto or to the
        transactions contemplated hereby or to the inducement of any Party to enter herein, whether for breach of contract, tortious conduct or otherwise and whether predicated on common law, statute or otherwise) shall be governed by and construed and
        interpreted in accordance with the Laws of the State of Delaware, irrespective of the choice of Laws principles of the State of Delaware, including all matters of validity, construction, effect, enforceability, performance and remedies.

      

      

      Section 9.07            Assignability.  The assignability provisions set forth in Section 10.3 of the Separation and Distribution
        Agreement shall apply to this Agreement.

      
        17

        
          

      

      

      

      Section 9.08            Third-Party Beneficiaries.  The provisions of this Agreement are solely for the benefit of the Parties and
        are not intended to confer upon any other Person except the Parties any rights or remedies hereunder.  There are no other third-party beneficiaries of this Agreement and this Agreement shall not provide any third party with any remedy, claim,
        Liability, reimbursement, claim of action or other right in excess of those existing without reference to this Agreement.  Nothing in this Agreement is intended to amend any employee benefit plan or affect KAR’s, SpinCo’s or the applicable plan
        sponsor’s right to amend or terminate any employee benefit plan pursuant to the terms of such plan.  The provisions of this Agreement are solely for the benefit of the Parties, and no Employee or Former Employee, officer, director, or independent
        contractor or any other individual associated therewith shall be regarded for any purpose as a third-party beneficiary of this Agreement.

      

      

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

      

        	 	
                If to KAR, to:

              
	 	 	 
	 	 	
                KAR Auction Services, Inc.

              
	 	 	
                13085 Hamilton Crossing Boulevard

              
	 	 	
                Carmel, Indiana 46032

              
	 	 	
                Email:

              	
                becca.polak@karauctionservices.com

              
	 	 	
                Attention:

              	
                Chief Legal Officer

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

              
	 	 	 
	 	 	
                Skadden, Arps, Slate, Meagher & Flom LLP

              
	 	 	
                Four Times Square

              
	 	 	
                New York, New York 10036

              
	 	 	
                Email:

              	
                Sean.Doyle@skadden.com

              
	 	 	 	
                Gregory.Fernicola@skadden.com

              
	 	 	 	
                Dwight.Yoo@skadden.com

              
	 	 	
                Attention:

              	
                Sean C. Doyle

              
	 	 	 	
                Gregory A. Fernicola

              
	 	 	 	
                Dwight S. Yoo

              
	 	 
	 	
                If to SpinCo, to:

              
	 	 	 
	 	 	
                Insurance Auto Auctions, Inc.

              
	 	 	
                Two Westbrook Corporate Center, Suite 500

              
	 	 	
                Westchester, Illinois 60154

              
	 	 	
                Email:

              	
                jkett@iaai.com

              
	 	 	 	
                skerley@iaai.com

              
	 	 	
                Attention:

              	
                John Kett

              
	 	 	 	
                Sidney Peryar

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

              
	 	 	 
	 	 	
                Skadden, Arps, Slate, Meagher & Flom LLP

              
	 	 	
                Four Times Square

              
	 	 	
                New York, New York 10036

              
	 	 	
                Email:

              	
                Sean.Doyle@skadden.com

              
	 	 	 	
                Gregory.Fernicola@skadden.com

              
	 	 	 	
                Dwight.Yoo@skadden.com

              
	 	 	
                Attention:

              	
                Sean C. Doyle

              
	 	 	 	
                Gregory A. Fernicola

              
	 	 	 	
                Dwight S. Yoo

              

      

      

      

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

      

      

      Section 9.10            Severability.  If any provision of this Agreement or the application thereof to any Person or circumstance
        is determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof, or the application of any such provision to Persons or circumstances or in jurisdictions other than those as to which it has
        been held invalid or unenforceable, shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby.  Upon such determination, the Parties shall negotiate in good faith in an effort to agree upon such a
        suitable and equitable provision to effect the original intent of the Parties.

      
        18

        
          

      

      

      

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

      

      

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

      

      

      Section 9.13            Survival of Covenants.  Except as expressly set forth in this Agreement, the covenants, representations and
        warranties and other agreements contained in this Agreement, and Liability for the breach of any obligations contained herein, shall survive the Separation and the Distribution and shall remain in full force and effect thereafter.

      

      

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

      

      

      Section 9.15            Dispute Resolution.  The dispute resolution procedures set forth in Article VII of the Separation and
        Distribution Agreement shall apply to any dispute, controversy or claim arising out of or relating to this Agreement.

      

      

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

      

      

      Section 9.17            Amendments.  No provisions of this Agreement shall be deemed waived, amended, supplemented or modified by a
        Party, unless such waiver, amendment, supplement or modification is in writing and signed by the authorized representative of the Party against whom it is sought to enforce such waiver, amendment, supplement or modification.

      

      

      Section 9.18            Interpretation.  In this Agreement, (a) words in
        the singular shall be deemed to include the plural and vice versa and words of one gender shall be deemed to include the other genders as the context requires; (b) the terms “hereof,” “herein,” and “herewith” and words of similar import shall,
        unless otherwise stated, be construed to refer to this Agreement as a whole (including all of the Schedules hereto and thereto) and not to any particular provision of this Agreement; (c) Article, Section and Schedule references are to the Articles,
        Sections and Schedules to this Agreement unless otherwise specified; (d) unless otherwise stated, all references to any agreement shall be deemed to include the exhibits, schedules and annexes to such agreement; (e) the word “including” and words
        of similar import when used in this Agreement shall mean “including, without limitation,” unless otherwise specified; (f) the word “or” shall not be exclusive; (g) unless otherwise specified in a particular case, the word “days” refers to calendar
        days; (h) references to “business day” shall mean any day other than a Saturday, a Sunday or a day on which banking institutions are generally authorized or required by law to close in the United States or New York, New York; (i) references herein
        to this Agreement or any other agreement contemplated herein shall be deemed to refer to this Agreement or such other agreement as of the date on which it is executed and as it may be amended, modified or supplemented thereafter, unless otherwise
        specified; and (j) unless expressly stated to the contrary in this Agreement, all references to “the date hereof,” “the date of this Agreement,” “hereby” and “hereupon” and words of similar import shall all be references to June 27, 2019.

      

      

      Section 9.19            Limitations of Liability.  Notwithstanding anything in this Agreement to the contrary, neither SpinCo or
        any member of the SpinCo Group, on the one hand, nor KAR or any member of the KAR Group, on the other hand, shall be liable under this Agreement to the other for any indirect, punitive, exemplary, remote, speculative or similar damages in excess of
        compensatory damages of the other arising in connection with the transactions contemplated hereby (other than any such Liability with respect to a Third-Party Claim).

      

      

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

      

      

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        19

        
          

      

      

      

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

      

      

      	 	
              KAR AUCTION SERVICES, INC.

            
	 	 	 	 
	 	
              By:

            	/s/ Eric M. Loughmiller

            
	 	 	
              Name:

            	Eric M. Loughmiller
	 	 	
              Title:

            	Executive Vice President and Chief Financial Officer

            
	 	 	 	 
	 	
              IAA, INC. 

              

              
	 	
              By:

            	   /s/ John W. Kett

            
	 	 	
              Name:

            	John W. Kett
	 	 	
              Title:

            	Chief Executive Officer and President

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