Document:

Exhibit 10.16

    

  

   

  

  

  IAA, INC.

   

  

  DIRECTORS DEFERRED COMPENSATION PLAN

  

  

  (Effective [               ])

  
    
      

  

  
  IAA, INC.

  DIRECTORS DEFERRED COMPENSATION PLAN

  

  

  Page

  

  

  ARTICLE I

  

  

  INTRODUCTION

  

  

  	
          1.1

        	
          Purpose

        	1
	
          1.2

        	
          Effective Date

        	1
	
          1.3

        	
          Type of Plan

        	1

  

  

  ARTICLE II

  

  

  DEFINITIONS

  

  

  	
          2.1

        	
          “Account”

        	1
	
          2.2

        	
          “Administrator”

        	1
	
          2.3

        	
          “Affiliate”

        	1
	
          2.4

        	
          “Beneficiary”

        	1
	
          2.5

        	
          “Board”

        	1
	
          2.6

        	
          “Change in Control”

        	2
	
          2.7

        	
          “Code”

        	2
	
          2.8

        	
          “Committee”

        	2
	
          2.9

        	
          “Company”

        	
          2

        
	
          2.10

        	
          “Company Stock”

        	2
	
          2.11

        	
          “Deferrable Compensation”

        	
          2

        
	
          2.12

        	
          “Director”

        	
          3

        
	
          2.13

        	
          “Election Form”

        	
          3

        
	
          2.14

        	
          “Employee”

        	
          3

        
	
          2.15

        	
          “ERISA”

        	
          3

        
	
          2.16

        	
          “Fair Market Value”

        	
          3

        
	
          2.17

        	
          “Fees”

        	
          3

        
	
          2.18

        	
          “Installment Payment”

        	
          3

        
	
          2.19

        	
          “Lump Sum Payment”

        	
          3

        
	
          2.20

        	
          “Participant”

        	
          3

        
	
          2.21

        	
          “Plan”

        	
          3

        
	
          2.22

        	
          “Plan Year”

        	3
	
          2.23

        	
          “Specified Employee”

        	3
	
          2.24

        	
          “Termination from Service”

        	
          4

        
	
          2.25

        	
          “Unforeseeable Emergency”

        	
          4

        

  
    i

    
      

  

  ARTICLE III

  

  

  PARTICIPATION BY DIRECTORS

  

  

  	
          3.1

        	
          Participation

        	
          4

        
	
          3.2

        	
          Cessation of Participation

        	
          4

        
	
          3.3

        	
          Ineligible Status

        	
          4

        

  

  

  ARTICLE IV

  

  

  PARTICIPANT DEFERRALS

  

  

  	
          4.1

        	
          Deferral Elections – General

        	4
	
          4.2

        	
          First Year of Eligibility

        	
          5

        
	
          4.3

        	
          Cessation of Deferral of Cash Fees and Stock Payment Fees

        	
          5

        
	
          4.4

        	
          Unforeseeable Emergency – Cessation of Deferral Elections

        	
          5

        
	
          4.5

        	
          Changes to Form of Payment

        	
          5

        

  

  

  ARTICLE V

  

  

  DISTRIBUTIONS

  

  

  	
          5.1

        	
          Time of Payment

        	
          6

        
	
          5.2

        	
          Form of Payment

        	
          6

        
	
          5.3

        	
          Permissible Distributions

        	
          6

        
	
          5.4

        	
          Permissible Acceleration of Payments

        	
          7

        
	
          5.5

        	
          Permissible Delay of Payment

        	
          7

        
	
          5.6

        	
          Payment Deemed Timely

        	
          8

        
	
          5.7

        	
          Valuation of Distributions

        	
          8

        

  

  

  ARTICLE VI

  

  

  ACCOUNTS

  

  

  	
          6.1

        	
          Account

        	
          8

        
	
          6.2

        	
          Crediting of Earnings on Non-Stock Compensation

        	
          9

        
	
          6.3

        	
          Crediting of Earnings on Deferred Stock Payments

        	
          9

        
	
          6.4

        	
          Statement of Account

        	
          9

        
	
          6.5

        	
          Vesting

        	
          9

        

  

  

  ARTICLE VII

  

  

  FUNDING AND PARTICIPANTS’ INTEREST

  

  

  	
          7.1

        	
          Plan Unfunded

        	9
	
          7.2

        	
          Establishment of Grantor Trust

        	
          10

        
	
          7.3

        	
          Participants’ Interest in Plan

        	
          10

        

  
    ii

    
      

  

  ARTICLE VIII

  

  

  ADMINISTRATION AND INTERPRETATION

  

  

  	
          8.1

        	
          Administration

        	
          10

        
	
          8.2

        	
          Interpretation

        	
          10

        
	
          8.3

        	
          Records and Reports

        	10
	
          8.4

        	
          Payment of Expenses

        	
          11

        
	
          8.5

        	
          Indemnification for Liability

        	
          11

        
	
          8.6

        	
          Claims Procedure

        	
          11

        
	
          8.7

        	
          Review Procedure

        	
          11

        
	
          8.8

        	
          Legal Claims

        	
          11

        
	
          8.9

        	
          Participant and Beneficiary Information

        	
          11

        

  

  

  ARTICLE IX

  

  

  AMENDMENT AND TERMINATION

  

  

  	
          9.1

        	
          Amendment

        	
          12

        
	
          9.2

        	
          Termination of Plan

        	
          12

        

  

  

  ARTICLE X

  

  

  MISCELLANEOUS PROVISIONS

  

  

  	
          10.1

        	
          Right of Company to Take Actions

        	
          13

        
	
          10.2

        	
          Alienation or Assignment of Benefits

        	
          14

        
	
          10.3

        	
          Company’s Protection

        	
          14

        
	
          10.4

        	
          Construction

        	
          14

        
	
          10.5

        	
          Headings

        	
          14

        
	
          10.6

        	
          Number and Gender

        	
          14

        
	
          10.7

        	
          Right to Withhold

        	
          14

        

  
    iii

    
      

  

  IAA, INC.

  DIRECTORS DEFERRED COMPENSATION PLAN

  (Effective [                   ])

   

    

  ARTICLE I
    

    

    INTRODUCTION

   

        

  1.1          Purpose. The purpose of the Plan is to
      promote the interests of the Company and the stockholders of the Company by providing non-employee Directors the opportunity to defer retainer fees and stock payments.

  

  

  1.2          Effective
      Date. The effective date of the Plan is [               ].

   
  

  

  1.3          Type of Plan. The Plan is intended to be an unfunded plan of non-qualified deferred compensation that meets the requirements of Code Section 409A. In the event that any
      provision of the Plan is inconsistent with Code Section 409A, the applicable provisions of Code Section 409A shall be deemed to automatically supersede such inconsistent provision and the Plan shall be administered to comply with Code Section 409A.

  

    ARTICLE II
    

    

    DEFINITIONS

   

        

  Where used in the Plan, the following initially capitalized words and terms shall have the meanings specified below, unless the
      context clearly indicates to the contrary:

  

  

  2.1          “Account” means the
      recordkeeping account established by the Administrator for each Participant to which Deferrable Compensation, and earnings thereon, are credited in accordance with Article VI of the Plan. An Account may consist of one or more sub-accounts established
      by the Administrator, as deemed necessary for efficient operation of the Plan.

  

  

  2.2          “Administrator” means the
      Committee or such individuals or entity designated by the Committee to administer the Plan.

  

  

  2.3          “Affiliate” means an entity,
      more than fifty percent (50%) of the total voting power of which is owned, directly or indirectly, by the Company.

  

  

  2.4          “Beneficiary” means such
      person(s) or legal entity that is designated by a Participant under Section 8.9 to receive benefits hereunder after such Participant’s death.

  

  

  2.5          “Board” means the board of
      directors of the Company.

  
    
      

  

  
  2.6          “Change in Control” means and
      shall be deemed to occur upon a Change in Ownership, a Change in Effective Control, or a Change in Ownership of Substantial Assets. For this purpose:

  

  

  (i)          A “Change in
      Ownership” means that a person or group (other than IAA, Inc. or its affiliates) acquires more than fifty percent (50%) of the aggregate fair market value or voting power of the capital stock of the Company, including for this purpose capital stock
      previously acquired by such person or group; provided, however,
      that a Change in Ownership shall not be deemed to occur hereunder if, at the time of any such acquisition, such person or group owns more than fifty percent (50%) of the aggregate fair market value or voting power of the Company’s capital stock.
  

  
     

     

      

    (ii)          A “Change in Effective Control” means that (a)
        a person or group (other than IAA, Inc. or its affiliates) acquires (or has acquired during the immediately preceding twelve (12) month period ending on the date of the most recent acquisition by such person or group) ownership of the capital stock
        of the Company possessing thirty percent (30%) or more of the total voting power of the Company, or (b) a majority of the members of the Board of the Company is replaced during any twelve (12) month period, whether by appointment or election,
        without endorsement by a majority of the members of the Board prior to the date of such appointment or election. 

  

  
     

      

     (iii)          A “Change in Ownership of Substantial
        Assets” means that any person or group (other than IAA, Inc. or its affiliates) acquires (or has acquired during the immediately preceding twelve (12) month period ending on the date of the most recent acquisition) assets of the Company with an
        aggregate gross fair market value of not less than forty percent (40%) of the aggregate gross fair market value of the assets of the Company immediately prior to such acquisition. For this purpose, gross fair market value shall mean the fair value
        of the affected assets determined without regard to any liabilities associated with such assets. 

  

  
    
      

      

    

  

  The Board shall determine whether a Change in Control has occurred hereunder in a manner consistent with the provisions of Code
      Section 409A and the regulations and applicable guidance promulgated thereunder.

  

  

  2.7          “Code” means the Internal
      Revenue Code of 1986, as amended from time to time, and any regulations and applicable guidance promulgated thereunder. References in the Plan to specific sections of the Code shall be deemed to include any successor provisions thereto.

  

  

  2.8          “Committee” means any committee
      or subcommittee the Board may appoint to administer the Plan, which, in the discretion of the Board, may consist of two or more persons, each of whom is a “non-employee director” within the meaning of Rule 16b-3.

  

  

  2.9          “Company” means IAA, Inc. (f/k/a
      IAA Spinco Inc.), a Delaware corporation.

  

  

  2.10          “Company Stock” means the common
      stock of the Company, par value $.01 per share.

  

  

  2.11          “Deferrable Compensation” means
      one hundred percent (100%) of Fees that would be payable to a Director during a Plan Year but for the Director’s election to defer such Deferrable Compensation on his or her Election Form in accordance with Article IV of this Plan.

  
    2

    
      

  

  2.12          “Director” means a director on
      the Board who is not an Employee.

  

  

  2.13          “Election Form” means such
      document(s) or form(s), which may be electronic, as prescribed and made available from time to time by the Administrator, whereby a Director enrolls in the Plan as a Participant, elects to defer Deferrable Compensation pursuant to Article IV of this
      Plan, and/or makes investment elections pursuant to Section 6.2 of the Plan.

  

  

  2.14          “Employee” means a common law
      employee of the Company or an Affiliate.

  

  

  2.15          “ERISA” means the Employee
      Retirement Income Security Act of 1974, as amended.

  

  

  2.16          “Fair Market Value” as of a
      particular date shall mean the fair market value of a share of Company Stock as determined by the Administrator in its sole discretion; provided, however, that (i) if the Company Stock is admitted to trading on a national securities exchange, the fair market value of a share of Company Stock on any date
      shall be the closing sale price reported for such share on such exchange on such date or, if no sale was reported on such date, on the last day preceding such date on which a sale was reported, or (ii) if the shares of Company Stock are not then
      listed on the New York Stock Exchange, the average of the highest reported bid and lowest reported asked prices for the shares of Company Stock as reported by the National Association of Securities Dealers, Inc. Automated Quotations System for the
      last preceding date on which there was a sale of such stock in such market, or (iii) if the shares of Company Stock are not then listed on a national securities exchange or traded in an over-the-counter market or the value of such shares is not
      otherwise determinable, such value as determined by the Committee in good faith and in accordance with Code Section 409A.

  

  

  2.17          “Fees” means the retainer fees
      payable by the Company to the Director with respect to his or her service on the Board, including both fees payable in cash and fees payable in shares of Company Stock (“Stock
          Payments”).

  

  

  2.18          “Installment Payment” means a
      series of substantially equal annual payments of the Participant’s Account paid over a period ranging from two (2) whole years to ten (10) whole years, as elected by the Participant, commencing as of the applicable payment date under the plan. For
      purposes of Section 4.5, an Installment Payment is treated as a single payment.

  

  

  2.19          “Lump Sum Payment” means a
      single sum distribution of the entire value of a Participant’s Account.

  

  

  2.20          “Participant” means any eligible
      Director who defers Deferrable Compensation to this Plan by filing an Election Form and for whom an Account is maintained under the Plan.

  

  

  2.21          “Plan” means the IAA, Inc.
      Directors Deferred Compensation Plan.

  

  

  2.22          “Plan Year” means the calendar
      year.

  

  

  2.23          “Specified Employee” means a
      Participant who is determined to be a “specified employee” within the meaning of Code Section 409A with respect to a Termination from Service occurring in any twelve (12) month period commencing on April 1 based on the Participant’s compensation with
      the Employer, as defined in Code Section 416(i)(1)(D), and his or her status at the end of the immediately preceding Plan Year. For purposes of determining whether a Participant is classified as a Specified Employee, compensation from a nonresident
      alien’s gross income under Section 1.415(c)-2(g)(5)(ii) on account of the location of the services or the identity of an Employer that is not effectively connected with the conduct of a trade or business within the United States shall be excluded.

  
    3

    
      

  

  2.24          “Termination from Service” means
      the date the Participant ceases to be a Director on account of a voluntary or involuntary separation from service, within the meaning of Code Section 409A, with the Board for any reason.

  

  

  2.25          “Unforeseeable Emergency” means
      with respect to a Participant, his or her spouse, dependents (as defined in Code Section 152, without regard to Sections 152(b)(1), (b)(2), and (d)(1)(B)) or Beneficiary, a non-reimbursable severe financial hardship attributable to (i) a sudden and
      unexpected illness or accident or (ii) funeral expenses, and also means with respect to the Participant (A) a property loss due to casualty that is not otherwise covered by insurance, (B) imminent foreclosure or eviction from the Participant’s
      primary residence, or (C) a similar extraordinary and unforeseeable circumstance beyond the control of the Participant, as determined by the Administrator. For purposes of this Plan, the purchase of a home and the payment of college tuition are not
      Unforeseeable Emergencies.

   

    

  ARTICLE III
    

    

    PARTICIPATION BY DIRECTORS

           

  3.1          Participation. Participation in this Plan is voluntary and is limited to eligible Directors who file Election Forms in accordance with Article IV.

  

  

  3.2          Cessation of Participation. A Director shall remain eligible to file deferral elections under the Plan until the earlier of (i) the date the Administrator informs the Director that he or she is no
      longer eligible to participate in the Plan, i.e., “Ineligible Status,” or (ii) the date such Director incurs a Termination from Service.

  

  

  3.3          Ineligible Status. If the Administrator determines that a Director has “Ineligible Status,” effective as of the date of such determination, said ineligible Director shall no longer be eligible to file
      deferral elections under the Plan. The Account of an ineligible Director shall be paid in accordance with Sections 5.1 and 5.2 of the Plan, except to the extent all or part of such Account is eligible for distribution of accelerated payment as
      permitted in Sections 5.3 and 5.4.

  

    ARTICLE IV

        

  

  PARTICIPANT DEFERRALS

      

  

  4.1          Deferral Elections – General. A Participant’s deferral election for a Plan Year is irrevocable for such Plan Year except to the extent a cessation of deferrals hereunder is required under Section 4.4.
      Amounts deferred under the Plan shall not be distributed to a Participant except as expressly provided in Article V or as otherwise permitted under Code Section 409A. A deferral election hereunder shall be made on an Election Form and comply with the
      applicable requirements of this Article IV. A Participant’s initial deferral election under the Plan shall designate the amount of Deferrable Compensation that is being deferred and the form of distribution (as permitted in Section 5.2(a)). A
      Participant’s deferral election shall remain in effect under the Plan until it is terminated by operation of the Plan or changed by the Participant in accordance with Section 4.3 herein. The Administrator may establish procedures for deferral
      elections as it deems necessary to comply with the requirements of this Article IV and Code Section 409A.

  
    4

    
      

  

  4.2          First Year of Eligibility. Notwithstanding the timing requirements of Sections 4.3 and 4.4, a Director may elect to defer Deferrable Compensation by completing and executing an Election Form that
      specifies the amount or percentage of compensation to be deferred within the thirty (30) day period immediately following the date he or she first becomes a Director; provided
      that the compensation being deferred relates to services performed after the date of such election.

  

  

  4.3          Cessation of Deferral of Cash Fees and Stock Payment Fees. A Director may elect to suspend or revoke a prior deferral of Fees payable for services performed during a subsequent Plan Year by completing
      and executing an Election Form that specifies the amount or percentage of Fees to be deferred and filing it with the Administrator before expiration of the election period established by the Administrator, which period shall end no later than
      December 31 of the calendar year immediately preceding such Plan Year.

  

  

  4.4          Unforeseeable Emergency – Cessation of Deferral Elections. To the extent provided for under Code Section 409A, a Participant’s deferral election(s) in effect under the Plan for a Plan Year in which a
      Participant is granted an Unforeseeable Emergency distribution in accordance with Section 5.3(b) hereof may be terminated by the Administrator, effective as soon as practicable following the grant of such emergency distribution. If a Participant’s
      deferral elections under the Plan are terminated in accordance with the foregoing sentence, such Participant shall be ineligible to make deferrals of compensation to the Plan for the six (6) month period following his or her receipt of the emergency
      distribution. Subject to the foregoing six (6) month limitation, the Participant may make new deferral elections for Deferrable Compensation payable in subsequent Plan Years in accordance with this Article IV.

  

  

  4.5          Changes to Form of Payment. A Participant shall be permitted a one-time election to change the form of payment relating to the distribution of his or her
      Account to the extent permitted by the Administrator and in accordance with the requirements of Code Section 409A(a)(4) (C), including the requirements that such redeferral election (a) may not take effect until at least twelve (12) months after such
      redeferral election is filed with the Administrator; (b) must result in the first distribution subject to the redeferral election being made at least five (5) years after the Termination from Service; and (c) must be filed with the Administrator at
      least twelve (12) months before such Termination from Service.        

  

  
    5

    
      

  

  ARTICLE V

   

        

  DISTRIBUTIONS

  

  5.1          Time of Payment.

  

  

  
    
      (a)          A Participant’s Account shall be distributed as soon as administratively possible following the Participant’s Termination
          from Service, but no later than thirty (30) days after the last day of the calendar month in which the Participant’s Termination from Service occurs.

    

  

   

    

  
    
      (b)         
        Notwithstanding the foregoing, with respect to a Specified Employee, a payment upon Termination from Service shall not be made earlier than the date that is at
          least six (6) months after the date of such Specified Employee’s Termination from Service.

    

  

   

    

  5.2          Form of Payment.

  

  

  
    
      
        
          (a)         
            Except as otherwise provided under the Plan, a Participant’s Account shall be paid as a Lump Sum Payment or an Installment Payment, as elected by the
              Participant on his or her Election Form.

        

      

    

  

    

  

  
    
      (b)         
        In the absence of Participant’s election as to the form of payment, as permitted under subsection (a) above, a Participant’s Account shall be distributed in the
          form of a Lump Sum Payment.

    

  

         

  

  
    
      (c)         
        Deferral of Stock Payments shall be paid only in shares of Company Stock.

    

  

        

  

  5.3          Permissible Distributions. No distribution under the Plan shall be permitted except as set forth in this Section 5.3 or as otherwise permitted under the Plan and Code Section 409A(a)(2).

  

  

  
    
      (a)         
        Change in Control. Notwithstanding any provision of the Plan or
          Participant Election Form to the contrary, a Participant who incurs a Termination from Service within the two (2) year period immediately following a Change in Control shall receive a Lump Sum Payment of his or her Account within thirty (30) days
          following the date of such Termination from Service.

    

  

  
     

    

    
      (b)         
        Unforeseeable Emergency. If a Participant experiences an Unforeseeable
          Emergency, such Participant shall be permitted to withdraw all or a portion of his or her Account in the form of an immediate single-sum payment, subject to the limitations set forth below:

    

  

         

  

  
    
      (i)          A request for withdrawal shall be made to the Administrator in writing and shall set forth the circumstances surrounding
          the Unforeseeable Emergency. As a condition of and part of such request, the Participant shall provide to the Administrator his or her written representation that (A) the emergency cannot be relieved by insurance or other reimbursement reasonably
          available to the Participant, (B) the emergency can only be relieved by liquidation of the Participant’s assets and any such liquidation would itself result in severe damage or injury to the Participant, (C) the Participant has no reasonable
          borrowing capacity to relieve the emergency, and (D) the emergency cannot be relieved by cessation of the Participant’s deferrals under the Plan. The Administrator shall be entitled to request such additional information as may be reasonably
          required to determine whether an Unforeseeable Emergency exists or the amount of the emergency, and may establish additional conditions precedent to the review or granting of a request for a withdrawal on account of an Unforeseeable Emergency.

    

  

  
     

    

    
      (ii)         If the Administrator determines that an Unforeseeable Emergency exists, the Administrator shall authorize the
          immediate distribution of the amount required to meet the financial need created by such Unforeseeable Emergency, including any taxes payable on such amount, and, if required, the cessation of the Participant’s deferrals to the Plan as permitted
          in Section 4.5.

    

  

  
    6

    
      

  

  
    
      (c)         
        Death Distribution. Notwithstanding any provision of the Plan or
          Participant Election Form to the contrary, in the event of a Participant’s death before the complete distribution of his or her Account, the distribution of such Participant’s Account shall be made in a Lump Sum Payment to the Participant’s
          Beneficiary within sixty (60) days after the date of death.

    

  

   

  

  5.4          Permissible Acceleration of Payments. No acceleration of time or schedule of payments under the Plan shall be permitted except as set forth in this Section 5.4 or as otherwise permitted under the Plan
      and Code Section 409A(a)(3).

  

  

  
    
      (a)         
        Distribution for Taxes. The Plan may accelerate payment of all or part of
          a Participant’s Account to pay or withhold state, local, or foreign tax obligations; taxes imposed under the Federal Insurance Contributions Act or the Railroad Retirement Act; and any related federal income tax thereon, arising from a
          Participant’s participation in the Plan. Such payment of withholding must be limited to the amount necessary to fulfill such tax obligation.

    

  

  
    
       

      

      
        (b)          Small Payment. Notwithstanding
            any provision of the Plan to the contrary, if the total value of a Participant’s Account or death benefit payable hereunder is not greater than the applicable dollar amount under Code Section 402(g)(1)(B), and the Participant is not entitled to
            a benefit from any other plan that is required to be aggregated with this Plan pursuant to Treasury Regulation Section 1.409A-1(c)(2), the Administrator may distribute such amount to the Participant or Beneficiary in the form of a Lump Sum
            Payment.

      

    

     

      

    
      
        (c)         
          Income Inclusion under 409A. Notwithstanding any provision of the Plan
            to the contrary, in the event that the plan fails to meet the requirements of Code Section 409A, the Administrator may distribute to Participants the portion of their Accounts that is required to be included in income as a result of such
            failure.

      

    

  

            

  

  5.5          Permissible Delay of Payment. The Administrator may delay payment to a date after the designated payment date pursuant to any of the following circumstances; provided that payments to similarly situated Participants are made on a reasonably consistent basis.

   

    

  
    
      
        (a)         
          Payments That Would Violate Federal Securities Laws or Other Applicable Law.
            A payment may be delayed where the Administrator reasonably anticipates that the making of the payment will violate federal securities laws or other applicable law; provided
            that the payment is made at the earliest date at which the Administrator reasonably anticipates that the making of the payment will not cause such violation. For purposes of this Section 5.5(a), the making of a payment that would cause
            inclusion in gross income or the application of any penalty provision or other provision of the Code is not treated as a violation of applicable law.

      

    

  

  
    7

    
      

  

  5.6          Payment Deemed Timely. A payment shall be treated as made upon the date specified under the Plan under the following circumstances:

  

  

  
    
      (a)         
        If the payment is made at such date or a later date within the same calendar year or, if later, by the fifteenth (15th) day of the third calendar month following
          the date specified under the Plan.

    

  

            

  

  
    
      (b)         
        If calculation of the amount of the payment is not administratively practicable due to events “beyond the control” of the Participant, or the Participant’s
          Beneficiary (as such phrase is defined under Code Section 409A), the payment will be treated as made upon the date specified under the Plan if the payment is made during the first calendar year in which the calculation of the amount of the
          payment is administratively practicable.

    

  

            

  

  
    
      (c)         
        If the Company fails to make a payment, in whole or in part, as of the date specified under the Plan, either intentionally or unintentionally, the payment will be
          treated as made upon the date specified under the Plan if (i) the Participant accepts the portion (if any) of the payment that the Company is willing to make (unless such acceptance will result in a relinquishment of the claim to all or part of
          the remaining amount), (ii) the Participant files claims pursuant to Sections 8.6 and 8.7 herein to collect the unpaid portion of the payment, and (iii) any further payment (including payment of a lesser amount that satisfies the Company’s
          obligation to make the entire payment) is made no later than the end of the first calendar year in which the Company and the Participant enter into a legally binding settlement of such dispute, the Company concedes that the amount is payable, or
          the Company is required to make such payment pursuant to a final and nonappealable judgment or other binding decision.

    

  

            

  

  5.7          Valuation of Distributions. All distributions under this Plan shall be based upon a daily valuation of the Participant’s Account or, where applicable, the
      Fair Market Value of the shares of Company Stock that relate to the Stock Payments deferred under the Participant’s Account, as determined by the Administrator.

   

    

  ARTICLE VI

   

        

  ACCOUNTS

   

        

  6.1          Account. The Administrator shall establish and maintain, or cause to be established and maintained, a separate Account for each Participant hereunder who executes an election pursuant to Article IV.
      Each such Participant’s Deferrable Compensation deferred pursuant to an Election Form under Article IV shall be separately accounted for and credited with earnings or dividends, as applicable, for recordkeeping purposes only, to his or her Account. A
      Participant’s Account shall be solely for the purposes of measuring the amounts to be paid under the Plan. Except as provided in Article VII, the Company shall not be required to fund or secure a Participant’s Account in any way, the Company’s
      obligation to Participants hereunder being purely contractual.

  
    8

    
      

  

  6.2          Crediting of Earnings on Non-Stock Compensation. Except as provided in Section 6.3, a Participant may hypothetically invest his Account in one or more investment alternatives made available by the
      Administrator, and earnings or losses thereon shall be credited to the Participant’s Account in accordance with the valuation procedures under such investment alternatives. The Participant shall make his or her investment elections, and changes
      thereto, on an Election Form in accordance with procedures established by the Administrator. Unless the Administrator determines otherwise, the investment alternatives available under the Plan shall mirror the alternatives that are made available
      under the Code Section 401(k) plan sponsored by the Company.

  

  

  6.3          Crediting of Earnings on Deferred Stock Payments. The portion of a Participant’s Account attributable to deferral of Stock Payments shall be deemed invested solely in stock equivalent units of Company
      Stock, shall be denominated in numbers of stock units, and shall be valued at any time as the stock equivalent units are credited to such Account multiplied by the then-Fair Market Value of the Company Stock. Whenever a dividend is declared and
      payable on Company Stock, the number of such stock equivalent units in the Participant’s Account shall be increased by the following calculations:

  

  

  
    
      (i)          the number of units in the Participant’s Account multiplied by any cash dividend declared by the Company on a share of
          Company Stock, divided by the Fair Market Value determined as of the related dividend payment date; and/or

    

  

  
    
      

      

    

  

  
    
      (ii)         the number of units in the Participant’s Account on the related dividend payment date multiplied by any stock
          dividend declared by the Company on a share of Company Stock.

    

  

  
    
      

      

    

  

  In the event of any change in the number or kind of outstanding shares of Company Stock, including a stock split or splits
      (other than a stock dividend as provided above), an appropriate adjustment shall be made in the number of units credited to the Participant’s Account.

  

  

  6.4          Statement of Account. As soon as practicable after the end of each Plan Year (and at such additional times as the Administrator may determine), the Administrator shall furnish each Participant with a
      statement of the balance credited to the Participant’s Account.

  

  

  6.5          Vesting. A Participant is always one hundred percent (100%) vested in his or her Account.

   

    

  ARTICLE XVII

   

        

  FUNDING AND PARTICIPANTS’ INTEREST

  

  7.1          Plan Unfunded. This Plan shall at all times be considered entirely unfunded for both federal and state income tax purposes and for purposes of Title I of ERISA, and no trust shall be created by or for
      the Plan. The crediting to each Participant’s Account shall be made through recordkeeping entries. No actual funds shall be set aside; provided, however, that nothing herein shall prevent the Company from establishing one or more grantor trusts that meet the requirements of IRS Revenue Procedure 92-64 from
      which benefits due under this Plan may be paid in certain instances.

  
    9

    
      

  

  7.2          Establishment of Grantor Trust. Within fifteen (15) days following a Change in Control, the Company shall establish, if not already established, under the Plan a grantor trust that meets the
      requirements of IRS Revenue Procedure 92-64, and shall transfer assets to such trust in amounts sufficient to fully fund the Plan’s aggregate liability with respect to the Accounts under the Plan on and after the date of the Change in Control.

  

  

  7.3          Participants’ Interest in Plan. Notwithstanding Section 7.2 or any other provision of the Plan, a Participant has an interest only in the value of the amount credited to his or her Account and has no
      rights or interests in the specific investment funds, stock, or securities in which his or her Account is hypothetically invested under the Plan. All distributions shall be paid by the Company from its general assets and a Participant (or his or her
      Beneficiary) shall have the rights of a general, unsecured creditor against the Company for any distributions due hereunder. The Plan constitutes a mere promise by the Company to make benefit payments in the future.

   

    

  ARTICLE VIII

  

   

        

  ADMINISTRATION AND INTERPRETATION

  

  8.1          Administration. The Administrator shall be in charge of the overall operation and administration of this Plan. The Administrator has, to the extent appropriate and in addition to the powers described
      elsewhere in this Plan, full discretionary authority to construe and interpret the terms and provisions of the Plan; to adopt, alter and repeal administrative rules, guidelines and practices governing the Plan; to perform all acts, including the
      delegation of its administrative responsibilities to advisors or other persons who may or may not be Employees; and to rely upon the information or opinions of legal counselor experts selected to render advice with respect to the Plan, as it shall
      deem advisable, with respect to the administration of the Plan.

  

  

  8.2          Interpretation. The Administrator may take any action, correct any defect, supply any omission or reconcile any inconsistency in the Plan, or in any election hereunder, in the manner and to the extent
      it shall deem necessary to carry the Plan into effect or to carry out the Company’s purposes in adopting the Plan. Any decision, interpretation or other action made or taken in good faith by or at the direction of the Company or the Administrator
      arising out of or in connection with the Plan, shall be within the absolute discretion of each of them, and shall be final, binding and conclusive on the Company, and all Participants and Beneficiaries and their respective heirs, executors,
      administrators, successors and assigns. The Administrator’s determinations hereunder need not be uniform, and may be made selectively among Directors, whether or not they are similarly situated.

  

  

  8.3          Records and Reports. The Administrator shall keep a record of proceedings and actions and shall maintain or cause to be maintained all such books of account, records, and other data as shall be
      necessary for the proper administration of the Plan. Such records shall contain all relevant data pertaining to individual Participants and their rights under this Plan. The Administrator shall have the duty to carry into effect all rights or
      benefits provided hereunder to the extent assets of the Company are properly available.

  
    10

    
      

  

  8.4          Payment of Expenses. The Company shall bear all expenses incurred by the Administrator in administering this Plan.

  

  

  8.5          Indemnification for Liability. The Company shall indemnify the Committee, the Administrator and the Employees to whom administrative duties have been delegated under this Plan, against any and all
      claims, losses, damages, expenses and liabilities arising from their responsibilities in connection with this Plan, unless the same is determined to be due to gross negligence or willful misconduct.

  

  

  8.6          Claims Procedure. Within ninety (90) days following the date payment was due in accordance with the terms of the Plan, the Participant or the Participant’s duly authorized representative (hereinafter,
      the “claimant”) may file a written request for payment with the Administrator. If a claim for benefits under the Plan is denied in whole or in part, the
      claimant will receive written notification within forty-five (45) days following the date of such written request. The notification will include specific reasons for the denial, specific reference to pertinent provisions of this Plan, a description
      of any additional material or information necessary to process the claim and why such material or information is necessary, and an explanation of the claims review procedure. To the extent a Participant hereunder is a claimant and serves as an
      Administrator, he or she shall not participate in any determination relating to his or her claim, and the Administrator or the Company may appoint an independent individual to take the place of such Participant for purposes of making such
      determination.

  

  

  8.7          Review Procedure. No later than one hundred and eighty (180) days following the date payment was due under the Plan, the claimant may file a written request with the Administrator for a review of his
      denied claim. The claimant may review pertinent documents that were used in processing his claim, submit pertinent documents, and address issues and comments in writing to the Administrator. The Administrator will notify the claimant of his or her
      final decision in writing. In his or her response, the Administrator will explain the reason for the decision, with specific references to pertinent Plan provisions on which the decision was based. To the extent a Participant hereunder is a claimant
      requesting a review and serves as an Administrator, he or she shall not participate in any determination relating to the review, and the Administrator or the Company may appoint an independent individual to take the place of such Participant for
      purposes of making such determination.

  

  

  8.8          Legal Claims. In no event may a claimant commence legal action for benefits the claimant believes are due the claimant until the claimant has exhausted all of the remedies and procedures afforded the
      claimant by this Article VIII. No such legal action may be commenced more than two (2) years after the date of the Administrator’s final review decision, described in Section 8.7 above.

   

    

  8.9          Participant and Beneficiary Information. Each Participant shall keep the Administrator informed of his or her current address and the current address of his or her designated
      beneficiary or beneficiaries. A Participant may from time to time change his designated Beneficiary without the consent of such Beneficiary by filing a new designation in writing with the Administrator. If no Beneficiary designation is in effect at
      the time of the Participant’s death, or if the designated Beneficiary is missing or has predeceased the Participant, distribution shall be made to the Participant’s surviving spouse, or if none, to his surviving children per stirpes, and if none, to
      his estate. The Administrator shall not be obligated to search for any person. If such person is not located within one (1) year after the date on which payment of the Participant’s death benefit is payable under the Plan, payment shall be made to
      the Participant’s estate.     

  

  
    11

    
      

  

  ARTICLE IX

   

        

  AMENDMENT AND TERMINATION

  

  9.1          Amendment. The Board shall have the right, at any time, to amend the Plan or discontinue deferrals under the Plan in whole or in part; provided that such amendment or termination complies with Code Section 409A and does not adversely affect the right of any Participant or Beneficiary to a benefit or payment due under the Plan. The Administrator has the
      authority, without Board approval, to amend the Plan to comply with the requirements of Code Section 409A, modify the amount or type of compensation that qualifies as Deferrable Compensation, modify the classes of individuals eligible to participate
      in the Plan, and to change the investment alternatives offered under the Plan. In addition, the Administrator may make such changes to the Plan’s operation and administration as it deems to be in the best interest of the Plan.

  

  

  9.2          Termination of Plan. The Board may take action to provide for the acceleration of the time and form of a payment, or a payment hereunder, where the acceleration of the payment is made pursuant to a
      termination and liquidation of the Plan in accordance with one of the following:

  

  

  
    
      (a)         
        The termination and liquidation of the Plan pursuant to an irrevocable action taken within the thirty (30) days preceding or the twelve (12) months following a
          Change in Control; provided that all agreements, methods, programs, and other arrangements sponsored by the Company or a participating Affiliate
          immediately after the Change in Control event with respect to which deferrals of compensation that, together with the Plan, are treated as a single plan for purposes of Treasury Regulation Section 1.409A-1(c)(2) (the “Aggregated Plans”) are terminated and liquidated with respect to each Participant that experienced the Change in Control event, so that under the terms of the termination and
          liquidation, all such Participants are required to receive all amounts of compensation deferred under the terminated Aggregated Plans within twelve (12) months of the date of the irrevocable action taken to terminate and liquidate such Aggregated
          Plans.

    

  

  
    12

    
      

  

  
    
      (b)         
        The termination and liquidation of the Plan within twelve (12) months of a corporate dissolution of the Company that is taxed under Code Section 331, or approved by
          a bankruptcy court pursuant to 11 U.S.C. Section 503(b)(1)(A); provided that the amounts deferred under the Plan are included in the Participants’ gross
          incomes in the latest of the following years (or, if earlier, the taxable year in which the amount is actually or constructively received):

    

  

       

  

  
    
      (i)          The calendar year in which Plan termination and liquidation occurs;

    

  

  
    
       

      

    

  

  
    
      (ii)         The first calendar year in which the amount is no longer subject to a substantial risk of forfeiture; or

    

  

  
    
      

      

    

  

  
    
      (iii)        The first calendar year in which the payment is administratively practicable.

    

  

  
    
      

      

    

  

  
    
      (c)         
        The termination and liquidation of the Plan, where:

    

  

            

  

  
    
      (i)          Such termination and liquidation does not occur proximate to a downturn in the financial health of the Company or the
          Affiliate, as applicable;

    

  

  
    
       

      

    

  

  
    
      (ii)         To the extent the same Participant had deferrals of compensation thereunder, all Aggregated Plans are likewise
          terminated and liquidated;

    

  

  
    
      

      

    

  

  
    
      (iii)        No payments in liquidation of the Plan are made within twelve (12) months of the date the irrevocable action is
          taken to terminate and liquidate the Plan, other than payments that would be payable under the terms of the Plan if the action to terminate and liquidate the Plan had not occurred;

    

  

  
    
       

      

    

  

  
    
      (iv)         All payments are made within twenty-four (24) months of the date the irrevocable action is taken to terminate
          and liquidate the Plan; and

    

  

  
    
       

      

    

  

  
    
      (v)          The Company and Affiliate, as applicable, does not adopt a new plan that would be aggregated with the Plan if the
          Participant participated in both plans, at any time within three (3) years following the date the irrevocable action is taken to terminate and liquidate the Plan.

    

  

  
    
       

      

    

  

  
    
      (d)         
        Any other termination and liquidation event that is permissible under Code Section 409A.

    

  

         

  

  ARTICLE X

   

   

        

  MISCELLANEOUS PROVISIONS

      
  10.1          Right of Company to Take Actions. The adoption and maintenance of this Plan shall not be deemed to constitute a contract between the Company and a Director, or to be a consideration for, nor an
      inducement or condition of, the employment of any person. Nothing herein contained, or any action taken hereunder, shall be deemed to give a Director the right to be retained in the service of the Board or to interfere with the right of the Board to
      discharge the Director at any time, nor shall it be deemed to give to the Board the right to require the Director to remain in its employ, nor shall it interfere with the Director’s right to terminate his or her service at any time. Nothing in this
      Plan shall prevent the Company from amending, modifying, or terminating any other benefit plan.

  
    13

    
      

  

  10.2          Alienation or Assignment of Benefits. Except as otherwise provided under the Plan, a Participant’s rights and interest under the Plan shall not be assigned or transferred except as otherwise provided
      herein, and the Participant’s rights to benefit payments under the Plan shall not be subject to alienation, pledge or garnishment by or on behalf of creditors (including heirs, beneficiaries, or dependents) of the Participant or of a Beneficiary.

  

  

  10.3          Company’s Protection. By execution of an Election Form, each Participant shall be deemed to have agreed to cooperate with the Company by furnishing any and all information reasonably requested by the
      Administrator in order to facilitate the payment of benefits hereunder.

  

  

  10.4          Construction. All legal questions pertaining to the Plan shall be determined in accordance with the laws of the State of Delaware, to the extent such laws are not superseded by ERISA or any other
      federal law.

  

  

  10.5          Headings. The headings of the Articles and Sections of this Plan are for reference only. In the event of a conflict between a heading and the contents of an Article or Section, the contents of the
      Article or Section shall control.

  

  

  10.6          Number and Gender. Whenever any words used herein are in the singular form, they shall be construed as though they were also used in the plural form in all cases where they would so apply, and
      references to the male gender shall be construed as applicable to the female gender where applicable, and vice versa.

  

  

  10.7          Right to Withhold. To the extent required by law in effect at the time a distribution is made from the Plan, the Company or its agents shall have the right to withhold or deduct from any distributions
      or payments any taxes required to be withheld by federal, state or local governments.

  

  

  14Exhibit 10.17

    

     

      

    

      IAA, INC.

      

      

      DIRECTOR RESTRICTED SHARE AGREEMENT

      

      

      This Agreement (this “Agreement”)

          is entered into as of ___________, by and between IAA, Inc. (f/k/a IAA Spinco Inc.), a Delaware corporation (the “Company”), and
          ____________________ (the “Participant”),

          pursuant to the IAA, Inc. 2019 Omnibus Stock and Incentive Plan, as in effect and as amended from time to time (the “Plan”).  Capitalized terms
          that are not defined herein shall have the meanings given to such terms in the Plan.

      

      

      1.          Grant of Restricted Shares.  The Company hereby grants to the Participant [_______] Shares (such shares, the “Restricted Shares”), subject to all of the
          terms and conditions of this Agreement and the Plan, and, with respect to any Restricted Shares as to which the Participant timely makes a deferral election under the Company’s Directors Deferred Compensation Plan (the “Deferred Plan”), pursuant to a form previously provided to the Participant, subject to all of the terms and conditions of such election form and the Deferred
          Plan.

      

      

      2.            Lapse of Restrictions.

      

      

      (a)          General.  Subject to the provisions set forth below, the restrictions on Transfer set forth in Section 8 hereof shall lapse with respect to the number of Restricted Shares
          specified for each date set forth below under the column captioned “Vesting Date” (each such date, a “Vesting Date”) as follows:

       

        

      	
              Vesting Date

            	 	
              
                Portion of 

                

                Restricted Shares Vesting

              

            
	 	 	 

      subject in each case to the continued service of the Participant with the Company or a Subsidiary (either as a member of its board of
          directors or as an employee) from the date hereof through the relevant Vesting Date.

      

      

      (b)          Following Certain Terminations of Service.  Upon termination of the Participant’s service with the Company or a Subsidiary for any reason (including the death or Disability of
          the Participant), any Restricted Shares in respect of which the restrictions described in this Section 2 shall not already have lapsed shall be immediately forfeited by the Participant and transferred to, and reacquired by, the Company without
          consideration of any kind and neither the Participant nor any of the Participant’s successors, heirs, assigns, or personal representatives shall thereafter have any further rights or interests in such Restricted Shares

      

      

      3.           Adjustments.  Pursuant to Section 5 of the Plan, in the event of a Change in Capitalization, the Administrator shall make such equitable changes or adjustments
          as it deems necessary or appropriate to the number and kind of securities or other property (including cash) issued or issuable in respect of outstanding Restricted Shares.

      
        
          

      

      4.           Legend on Certificates.  The Participant agrees that any certificate issued for Restricted Shares (or, if applicable, any book entry statement issued for
          Restricted Shares) prior to the lapse of any outstanding restrictions relating thereto shall bear the following legend (in addition to any other legend or legends required under applicable federal and state securities laws):

      

      

      THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS UPON TRANSFER AND RIGHTS OF REPURCHASE
          (THE “RESTRICTIONS”) AS SET FORTH IN THE IAA, INC. 2019 OMNIBUS STOCK AND INCENTIVE PLAN AND THE RESTRICTED SHARE AGREEMENT ENTERED
          INTO BETWEEN THE REGISTERED OWNER AND IAA, INC., COPIES OF WHICH ARE ON FILE WITH THE SECRETARY OF IAA, INC. ANY ATTEMPT TO DISPOSE OF THESE SHARES IN CONTRAVENTION OF SUCH RESTRICTIONS, INCLUDING BY WAY OF SALE, ASSIGNMENT, TRANSFER, PLEDGE,
          HYPOTHECATION OR OTHERWISE, SHALL BE NULL AND VOID AND WITHOUT EFFECT AND SHALL RESULT IN THE FORFEITURE OF SUCH SHARES AS PROVIDED BY SUCH PLAN AND AGREEMENT.

      

      

      5.           Certain Changes. The Administrator may accelerate the date on which the restrictions on Transfer set forth in Section 8 hereof shall lapse or otherwise adjust
          any of the terms of the Restricted Shares; provided that, subject to Sections 5 and 12 of the Plan, no action under this Section 5 shall adversely affect the Participant’s rights under this Agreement.

      

      

      6.           Notices. All notices or other communications required or permitted under this Agreement shall be made in writing and shall be deemed given if delivered
          personally or sent by nationally recognized overnight courier service.  Any notice or other communication shall be deemed given on the date of delivery, or on the date one (1) business day after it shall have been given to a nationally-recognized
          overnight courier service.  All such notices or communications shall be delivered to the recipient at the addresses indicated below:

      

      

      To the Company:

      

      

      IAA, Inc.

      [●]

      Attention:  General Counsel

      Fax:  [●]

      
        
          

      

      To the Participant:

      

      

      at the address as it appears in the Company’s books and records or at such other place as the Participant shall have
          designated by notice as herein provided to the Company.

      

      

      7.           Securities Laws Requirements.  The Company shall not be obligated to issue Shares to the Participant free of the restrictive legend described in Section 4
          hereof or of any other restrictive legend, if such transfer, in the opinion of counsel for the Company, would violate the Securities Act of 1933, as amended, or any other federal or state statutes having similar requirements that may be in effect
          at the relevant time.

      

      

      8.           Protections Against Violations of Agreement.  Until such time as the Restricted Shares are fully vested in accordance with Section 2 hereof, no purported sale,
          assignment, mortgage, hypothecation, transfer, charge, pledge, encumbrance, gift, transfer in trust (voting or other) or other disposition of, or creation of a security interest in or lien on, any of the Restricted Shares or any agreement or
          commitment to do any of the foregoing (each, a “Transfer”) by any holder thereof in violation of the provisions of this Agreement will be
          valid, except with the prior written consent of the Board, which consent may be granted or withheld in the sole discretion of such Board.  Any purported Transfer of Restricted Shares or any economic benefit or interest therein in violation of
          this Agreement shall be null and void ab initio, and shall not create any obligation or liability of the Company, and any person purportedly
          acquiring any Restricted Shares or any economic benefit or interest therein transferred in violation of this Agreement shall not be entitled to be recognized as a holder of such Shares.  In addition, unless the Administrator determines otherwise,
          upon any attempted Transfer of Restricted Shares or any rights in respect of Restricted Shares, before the vesting thereof, such Restricted Shares, and all of the rights related thereto, shall be immediately forfeited by the Participant and
          transferred to, and reacquired by, the Company without consideration of any kind.

      

      

      9.           Taxes.  The Participant understands that he (and not the Company) shall be responsible for any tax liability that may arise as a result of the transactions
          contemplated by this Agreement.  The Participant shall promptly notify the Company of any election made pursuant to Section 83(b) of the Code.

      

      

      THE PARTICIPANT ACKNOWLEDGES THAT IT IS THE PARTICIPANT’S SOLE RESPONSIBILITY, AND NOT THE COMPANY’S, TO FILE TIMELY THE
          ELECTION UNDER SECTION 83(b) OF THE CODE, EVEN IF THE PARTICIPANT REQUESTS THE COMPANY OR ITS REPRESENTATIVE TO ASSIST THE PARTICIPANT IN MAKING THIS FILING.

      

      

      The Participant acknowledges that the tax laws and regulations applicable to the Restricted Shares and the disposition
          of the Restricted Shares following vesting are complex and subject to change, and it is the sole responsibility of the Participant to obtain the Participant’s own advice as to the tax treatment of the terms of this Agreement.

      
        
          

      

      BY SIGNING THIS AGREEMENT, THE PARTICIPANT REPRESENTS THAT THE PARTICIPANT HAS REVIEWED WITH THE PARTICIPANT’S OWN TAX
          ADVISORS THE FEDERAL, STATE, LOCAL AND FOREIGN TAX CONSEQUENCES OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT AND THAT THE PARTICIPANT IS RELYING SOLELY ON SUCH ADVISORS, AND NOT ON ANY STATEMENTS OR REPRESENTATIONS OF THE COMPANY, OR ANY
          AFFILIATE THEREOF, OR ANY AGENT OF THE COMPANY OR ANY AFFILIATE THEREOF.  THE PARTICIPANT UNDERSTANDS AND AGREES THAT THE PARTICIPANT (AND NOT THE COMPANY) SHALL BE RESPONSIBLE FOR ANY TAX LIABILITY THAT MAY ARISE AS A RESULT OF THE TRANSACTIONS
          CONTEMPLATED BY THIS AGREEMENT.

      

      

      10.          Failure to Enforce Not a Waiver.  The failure of the Company to enforce at any time any provision of this Agreement shall in no way be construed to be a waiver
          of such provision or of any other provision hereof.

      

      

      11.          Incorporation of Plan.  The Plan is hereby incorporated by reference into, and made a part of, this Agreement, and the Restricted Shares and this Agreement
          shall be subject to all terms and conditions of the Plan.

      

      

      12.         Amendments; Construction.  The Administrator may amend the terms of this Agreement prospectively or retroactively at any time, but no such amendment shall
          impair the rights of the Participant hereunder without the Participant’s consent, except as provided in Sections 5 and 12 of the Plan.

      

      

      13.         Survival of Terms. Except as otherwise expressly provided herein, this Agreement shall be binding upon and inure to the benefit of the Company and its Affiliates, and their
          respective successors and assigns and the Participant and the Participant’s heirs, personal representatives, successors and assigns; provided, however, that nothing contained herein shall be construed as granting the Participant the right to
          Transfer any of the Restricted Shares, except in accordance with this Agreement and any transferee shall hold the Restricted Shares having only those rights, and being subject to the restrictions, provided for in this Agreement.

      

      

      14.          Rights as a Shareholder.  Except as otherwise expressly provided in this Agreement, the Participant will have all of the rights of a shareholder with respect
          to all of the Restricted Shares (until and unless the Restricted Shares are forfeited), including, without limitation, the right to vote such shares and the right to receive all dividends or other distributions with respect to such Shares, both
          prior to and after the lapse and removal of the vesting restrictions set forth herein, and, if Shares are ultimately forfeited, prior to such forfeiture.  In connection with the payment of any dividends, distributions or other type of payment to
          the Participant in respect of the Restricted Shares, the Company shall be entitled to deduct any taxes or other amounts required by any governmental authority to be withheld and paid over to such authority for the Participant’s account.

      
        
          

      

      15.         Agreement Not a Contract for Services.  Neither the Plan, the granting of the Restricted Shares, this Agreement nor any other action taken pursuant to
          the Plan shall constitute or be evidence of any agreement or understanding, express or implied, that the Participant has a right to continue to provide services as an officer, director, employee, consultant or advisor of the Company or any
          Affiliate thereof for any period of time or at any specific rate of compensation. 

      

      

      16.          Authority of the Administrator; Disputes.  The Administrator shall have full authority to interpret and construe the terms of the Plan and this Agreement.  The
          determination of the Administrator as to any such matter of interpretation or construction shall be final, binding and conclusive.

      

      

      17.         Acceptance.  The Participant hereby acknowledges receipt of a copy of the Plan and this Agreement.  The Participant has read and understands the terms and provisions of the Plan
          and this Agreement, and accepts the Restricted Shares subject to all the terms and conditions of the Plan and this Agreement.  The Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the
          Administrator upon any questions arising under this Agreement.

      

      

      18.          Miscellaneous.

      

      

      (a)          This Agreement
          constitutes the entire agreement of the parties with respect to the subject matter hereof and may not be modified or amended except by a written agreement signed by the Company and the Participant.  As of the date hereof, this Agreement shall
          supersede any other agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof, which have been made by either party or any Affiliate thereof.

      

      

      (b)          In the event any
          capital stock of the Company or any other corporation shall be distributed on, with respect to, or in exchange for shares of Stock of the Company as a stock (or share) dividend, stock (or share) split, spin-off, reclassification or
          recapitalization in connection with any merger, amalgamation, continuation into another jurisdiction or reorganization, the restrictions, rights and options set forth in this Agreement shall apply with respect to such other capital stock to the
          same extent as they are, or would have been applicable, to the Stock acquired hereunder on, or with respect to, which such other capital stock was distributed.

      

      

      (c)          No waiver of any breach
          or default hereunder shall be considered valid unless in writing, and no such waiver shall be deemed a waiver of any subsequent breach or default of the same or similar nature.  Anything in this Agreement to the contrary notwithstanding, any
          waiver, consent or other instrument under or pursuant to this Agreement signed by, or binding upon, the Participant shall be valid and binding upon any and all persons or entities (other than the Company and its Affiliates) who may, at any time,
          have or claim any rights under or pursuant to this Agreement in respect of the Restricted Shares.

      
        
          

      

      (d)          Any provision hereof
          which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or
          unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.  To the fullest extent permitted by applicable law, the parties hereby waive any provision of law which may render any
          provision hereof prohibited or unenforceable in any respect.

      

      

      (e)          The obligations of the
          Company and the Participant under this Agreement which by their nature may require either partial or total performance after the Participant’s service with the Company and its Subsidiaries is terminated shall survive such termination of service.

      

      

      (f)          Should any party to
          this Agreement be required to commence any litigation concerning any provision of this Agreement or the rights and duties of the parties hereunder, the prevailing party in such proceeding shall be entitled, in addition to such other relief as may
          be granted, to the reasonable attorneys’ fees and court costs incurred by reason of such litigation.

      

      

      (g)          The Section headings
          contained herein are for the purposes of convenience only and are not intended to define or limit the contents of said Sections.

      

      

      (h)          Words in the singular
          shall be read and construed as though in the plural and words in the plural shall be read and construed as though in the singular in all cases where they would so apply.  Words herein of any gender are deemed to include each other gender.

      

      

      (i)          This Agreement may be
          executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute one and the same agreement, and all signatures need not appear on any
          one counterpart.

      

      

      (j)          This Agreement shall be
          governed by and construed in accordance with the law of the State of Delaware, regardless of the law that might be applied under principles of conflict of laws.

      

      

      [signature page follows]

      
        
          

      

      IN WITNESS WHEREOF, the Company and the Participant have duly executed this Agreement as of the date first above
          written.

       

        

      
         

       

        

       
      	 	IAA, INC.
	 	 	 
	
              

              

            	
              By: 

            	

            
	 	 	Name:
	 	 	Title:
	 	 	 
	 	PARTICIPANT
	 	 	 
	 	 

            
	 	Name	 
	 	

            	 
	 	  
	 	Date	 

      

      

       [Signature Page to Restricted
          Share Agreement]

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