Document:

Letter Agreement from Axle merger to PCAP, LP

 EXHIBIT 10.20 
  
 Axle Merger Sub, Inc. 
 Kelso & Company, L.P. 
 320 Park Avenue, 24th Floor 
 New York, NY 10022 
  
 May 25, 2005 
  
 PCAP, L.P. 
 75 State Street 
 Boston, Massachusetts 02109 
  
 Ladies and Gentlemen: 
  
 Reference is made to that certain financial advisory agreement, dated as of February 22, 2005 (the “Advisory Agreement”) entered into by and between Axle Merger Sub, Inc. (the “Company”) and Kelso &
Company, L.P. (“Kelso”), pursuant to which the Company (or its successor by operation of law) agreed, amongst other things, to pay Kelso, substantially concurrently with the consummation (the “Closing”) of the
merger of the Company with and into Insurance Auto Auctions, Inc. pursuant to the terms of the Merger Agreement, a fee of $5,000,000 (the “Closing Fee”). Capitalized terms used herein and not otherwise defined shall have the meaning
ascribed to such terms in the Advisory Agreement. 
  
 Kelso and
the Company agree that substantially concurrently with the Closing, the Company shall pay (i) a fee to you equal to $525,000 and (ii) in lieu of the full Closing Fee pursuant to the terms of the Advisory Agreement, a fee to Kelso equal to
$4,475,000. 
  
 This Agreement may not be amended or revised
except by a writing signed by the parties. 
  
 This agreement
shall be governed by the laws of the State of New York. 
  
 If you
are in agreement with the foregoing, kindly so indicate by signing a counterpart of this letter, whereupon it will become a binding agreement between us. 
  
 [remainder of the page intentionally left blank] 

			
	Very truly yours,
	
	AXLE MERGER SUB, INC.
		
	By:	 	 /s/ James J. Connors II

	Name:	 	James J. Connors II, Esq.
	Title:	 	Vice President, Assistant Secretary
	
	KELSO & COMPANY, L.P.
		
	By:	 	 Kelso & Companies, Inc.,
 its general
partner

		
	By:	 	 /s/ Howard A. Matlin

	Name:	 	Howard A. Matlin
	Title:	 	Vice President, CFO

 Agreed and accepted: 
  
 PCAP, L.P., a Delaware limited partnership 
  

			
	By:	 	PCap, LLC, its General Partner
		
	By:	 	 /s/ John C. Rutherford

	Name:	 	John C. Rutherford
	Title:	 	Managing MemberInsurance Auto Auctions 2005 Incentive Plan

 EXHIBIT 10.21 
  
 Insurance Auto Auctions, Inc. 
  

2005 Incentive Plan 
 Corporate
Management 

 Insurance Auto Auctions, Inc. 
 2005 Incentive Plan 
  
 SECTION 1 OBJECTIVE 
  
 The purpose of this Plan is to
motivate and reward key executives and management personnel responsible for the successful achievement of Company financial goals along with specific personal goals during the Plan year. Performance will be evaluated against pre-determined financial
objectives so that each Participant will know what specific performance will be required to achieve an incentive award. 
  
 SECTION 2 EFFECTIVE DATE 
  
 This Plan is effective January 1, 2005 and thereafter. The Plan Year shall coincide with the Company’s fiscal year. The Company reserves the right to revise or
terminate the Plan at any time, with or without advance notice. 
  
 SECTION
3 PARTICIPATION 
  
 The Company’s Chief Executive Officer (CEO) will
approve all Plan Participants in accordance with the authorities granted by the Board of Directors. Only personnel whose responsibilities and accomplishments can be directly identified with the achievement of major business goals are eligible to
participate. 
  
 No employee shall have a right to be selected as a
Participant in any year, or having been selected as a Participant for one year, to be a Participant in any other year. Participation does not constitute a guarantee of employment for the entire Plan year, or any specific time period. 
  
 SECTION 4 ELIGIBILITY 
  
 Key managers are eligible to participate in the Program provided the Chief Executive Officer
approves them. The Company’s Chief Executive Officer shall approve individual participants and their Target Incentive Opportunity for the Plan year as well as any changes in Target Incentive Opportunities during the Plan year, as changes in
assignments warrant. 
  
 The Company’s Chief Executive Officer must approve
additions to the Executive Incentive Plan after the start of the Plan year and prior to October 1, 2005. After October 1, 2005 additional Participants will not be added to the Plan until the beginning of the next Plan year. The amount of incentive
award paid will be pro-rated based on the employee’s date of Plan entrance or employment. These same guidelines apply to employees who are promoted into an incentive plan position during the year. 

 SECTION 5 INCENTIVE OPPORTUNITY 
  
 Incentive opportunities are expressed as a percentage of total base salary for the plan year and vary by organization level. 
  
 SECTION 6 INCENTIVE AWARDS 
  
 Incentive awards are earned based on achievement of specific objectives. For the 2005 fiscal
year, each participant’s incentive award will be based on an earnings target of $1.33 per share. 
  
 Each year budgets are prepared and submitted to the Company’s Chief Executive Officer and the Board of Directors for review and approval. In order for the incentive plan to be truly motivational and assist in
achieving corporate growth objectives, two principles will be adhered to closely: 
  

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

  

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

  
 Incentive Awards will be based on achievement of specific
objectives using the formula in Exhibit A. The Company must achieve at least 71.4% (or $.96 per share) of the earnings per share before any incentive awards are earned. Overall percentage achievement above or below plan will be factored up or down
by 50% to arrive at the payout percentage. For example, the incentive factor would require payout at 115% of target for 10% above plan performance. 
  
 Maximum achievement will be 130%. Using the 50% incentive factor, this results in an initial payout of 57.1% of target once the threshold is achieved to a maximum payout
of 145% of target. 
  
 The CEO has the right to designate individual goals and
objectives for specific participants as a part of their incentive calculation. 
  
 SECTION 7 DEFINITION OF FINANCIAL PERFORMANCE 
  
 The
financial performance measurement for awards under this Plan shall be calculated based on attaining $1.33 earnings per share. 

 SECTION 8 PLAN ADMINISTRATION 
  
 The Chief Executive Officer of Insurance Auto Auctions, Inc. will approve final bonus recommendations and authorize the distribution of
incentive bonus checks to participants after approval. The CEO is the final authority to resolve any issues or disputes that arise in the administration of the plan. 
  
 Adjustments to the Incentive Plan Awards may be made to reflect changes in responsibility, account reassignment, etc., at the discretion of
the Company. Any amendments to the Plan or adjustments to an award must be approved by IAA’s Chief Executive Officer. In the event of a Change in Control, participants will be paid the greater of either the pro-rated award at target or the
pro-rated award based on the payout percentage computed using the actual year-to-date performance. 
  
 The cost of the incentive pool will be recognized through the monthly accrual of funds equivalent to the total target award payment for all participants divided by 12 months. Accruals will be adjusted based on actual
financial performance against financial plan goals. 
  
 SECTION 9
INCENTIVE AWARD PAYMENT 
  
 Incentive payments to eligible participants will
be made within 90 days after year-end (but not before completion of the annual audit of the Company’s financial statements). Participants must be on the payroll and in good standing on the date awards are paid to be eligible for an award
payment. 
  
 SECTION 10 TERMINATIONS 
  
 The following provisions will cover participants whose employment with the Company
terminates during the Plan Year: 
  

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

  

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

  
 SECTION 11 ASSIGNMENTS AND TRANSFERS 
  
 The rights and interests of a Participant under the Plan may not be assigned, encumbered or transferred except, in the event of the death of a Participant, to his/her
designated beneficiary, or in the absence of such designation by will or the laws of descent and distribution. 

 SECTION 12 PLAN DEVIATION 
  
 The Chief Executive Officer and Board of Directors, at their discretion, may make adjustments as they deem advisable in order to give
consideration to distinguished performance, changes in accounting rules, principles, or methods, changes in portfolio, disputes that may arise, or other extraordinary events (including weather-related natural disasters) and to adjust Financial
Performance measures in recognition of such occurrence.EXHIBIT 10.1
                            STOCK PURCHASE AGREEMENT

Dated:            May 9, 2005.

Between:          Nova Communications Ltd.
                  1005 Terminal Way, Suite 110
                  Reno, NV 89502-2179                         "Nova"

And:              Arthur N. Robins
                  362 Gulf Breeze, Way, # 130
                  Gulf Breeze, FL 32561                       "Robins"

                                    RECITALS

         Whereas, Nova is the holder of 51% of the issued and outstanding common
stock of AquaXtremes, Inc., a Nevada corporation ( "AquaXtremes") , and desires
to acquire the remaining 49% of the issued and outstanding common stock;

         Whereas, Robins the CEO of Nova and is the holder of 49% of the issued
and outstanding common stock of AquaXtremes and is willing to sell, transfer and
assign said common stock to Nova and Nova is willing to acquire said common
stock, subject to the terms and conditions of this Agreement.

         NOW, THEREFORE, in consideration of the foregoing and the conditions
and covenants contained hereinafter, the parties agree as follows:

                                   AGREEMENTS

         1. SALE OF SHARES. Robins hereby sells, assigns and transfers to Nova
all of his right, title and interest in and to Four Hundred Ninety (490) shares
of the common stock of AquaXtremes ("Aqua Shares"), which represents 49% of the
currently issued and outstanding common stock of AquaXtremes.

         2. PURCHASE PRICE FOR SHARES. In consideration of the sale, transfer
and assignment of the Aqua Shares to Nova, Nova shall:

                  (a) issue to Robins 100,000 shares of Series "B" Preferred
Stock of Nova ("Nova Shares"), which Nova Shares shall have the rights,
preferences and limitations set forth in the Certificate of Designation attached
hereto as Exhibit "A" and incorporated by this reference;

                  (b) deliver to Robins a Subordinated Convertible
Non-Negotiable Promissory Note ("Note") in the principal amount of $100,000,
which Note shall be in the form attached hereto as Exhibit "B" and incorporated
by this reference.
<PAGE>

         3. INVESTMENT. Robins (i) understands that the Nova Shares have not
been, and will not be, registered under the Securities Act of 1933, or any
applicable state securities laws, and are being issued in reliance upon federal
and state securities law exemptions for transactions not involving a public
offering, and (ii) is acquiring the Nova Shares solely for his own account for
investment purposes and not with a view to distribution thereof. Robins
acknowledges and agrees that the certificates evidencing the Nova Shares will
include a legend reading substantially as follows:

         "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
         UNDER THE SECURITIES ACT OF 1933. THE SHARES HAVE BEEN ACQUIRED WITHOUT
         A VIEW TO DISTRIBUTION AND MAY NOT BE OFFERED, SOLD, TRANSFERRED,
         PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
         STATEMENT FOR THE SHARES UNDER THE ACT AND UNDER ANY APPLICABLE
         SECURITIES LAWS, OR AN OPINION OF COUNSEL ACCEPTABLE TO THE CORPORATION
         THAT SUCH REGISTRATION IS NOT REQUIRED AS TO SUCH SALE OR OFFER."

         4. FILING OF REPORTS. Robins agrees to timely file all reports with the
United States Securities and Exchange Commission ("SEC") concerning his
ownership of the Nova Shares, as may be required under the Securities Exchange
Act of 1934. In addition, Robins agrees to cooperate with Nova in the
preparation and filing of all other reports required by the rules and
regulations of the SEC, as a result of the transactions contemplated by this
Agreement.

         5. TITLE TO AQUA SHARES. Robins represents and warrants that he has
good and marketable title to the Aqua Shares; that he has full dispositive
powers which respect the Aqua Shares; and that the Aqua Shares are free and
clear of any liens and encumbrances. Robins agrees to execute and deliver to
Nova any and all agreements, documents and instruments necessary to sell,
transfer and assign the Aqua Shares to Nova.

         6. PAYMENTS ON TERMINATION OF ROBINS. In the event Robins is terminated
by Nova at any time after the date of this Agreement, Nova shall pay to Robins
an amount equal to ten (10) times Robin's base salary, bonuses and benefits as
of the date of termination. Such sum shall be paid by Nova, at its option, in
full on the date of termination or in two (2) equal annual installments, the
first installment due on the date of termination and the second installment
twelve (12) months thereafter.

         7. MISCELLANEOUS

                  7.1 SUCCESSORS AND ASSIGNS. The terms and conditions of this
Agreement shall inure to the benefit of and be binding upon the respective
successors and assigns of the parties. Nothing in this Agreement, express or
implied, is intended to confer upon any party other than the parties hereto or
their respective successors and assigns any rights, remedies, obligations or
liabilities under or by reason of this Agreement, except as may be expressly
provided in this Agreement.

Stock Purchase Agreement - Page 2
<PAGE>

                  7.2 GOVERNING LAW. This Agreement shall be governed by and
construed in accordance with the laws of the State of Nevada.

                  7.3 COUNTERPARTS. This Agreement may be executed in two or
more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

                  7.4 AMENDMENTS AND WAIVERS. This Agreement may be amended and
the observance of any provision may be waived only with the written consent of
the parties.

                  7.5 ENTIRE AGREEMENT. This Agreement and the other documents
or instruments to be delivered by the parties constitute the full and entire
understanding and agreement between the parties with respect to the subject
matter hereof and supersede all prior agreements with respect to the subject
matter hereof.

                  7.6 LEGAL COUNSEL. This Agreement was prepared by legal
counsel to the Nova. Robins has been advised to seek the advice and
representation of his own legal counsel in connection with this Agreement and
Robins has elected not to seek such advice and representation.

         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.

NOVA COMMUNICATIONS LTD.                                  ROBINS

By:/s/LESLIE I. HANDLER                                   /s/ARTHUR N. ROBINS
   --------------------                                   --------------------
   Leslie I. Handler, President                           Arthur N. Robins

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