Document:

Director Designation Agreement

 Exhibit 10.34 
 DIRECTOR DESIGNATION AGREEMENT 
 DIRECTOR DESIGNATION AGREEMENT,
dated as of December 10, 2009 (this “Agreement”), by and among KAR Auction Services, Inc. (formerly known as KAR Holdings, Inc.), a Delaware corporation (the “Company”) and KAR Holdings II, LLC, a Delaware
limited liability company (“KAR LLC”). 
 WHEREAS, the Company has determined that it is in its best interests
to effect an initial public offering (“IPO”) of shares of common stock, par value $0.01 per share, of the Company (the “Common Stock”); and 
 WHEREAS, in connection with the IPO, the Company and KAR LLC desire to enter into this Agreement setting forth certain rights and obligations with respect to the shares of Common Stock owned by KAR LLC.

 NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties
hereto, intending to be legally bound, hereby agree as follows: 
 Section 1 Definitions. As used in this Agreement,
the following terms shall have the meanings ascribed to them below: 
 “Affiliate” means a Person that
directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the Person specified. 
 “Board of Directors” means the Board of Directors of the Company. 

“Bylaws” means the Amended and Restated Bylaws of the Company, as may be amended from time to time. 

“Certificate of Incorporation” means the Amended and Restated Certificate of Incorporation of the Company, as may be
amended from time to time. 
 “Equity Sponsors” means, collectively, GS Capital Partners VI Parallel, L.P.,
PCAP KAR, LLC, Parthenon Investors II, L.P., Parthenon Investors III, L.P. and Kelso Investment Associates VII, L.P. 

“Person” means an individual, corporation, partnership, limited liability company, joint venture, association, trust or
other entity or organization, including a government or political subdivision or an agency or instrumentality thereof. 

Section 2 Board Representation. 
 (a) For so long as KAR LLC beneficially owns more than 50.0% of the total number of shares of Common Stock outstanding at any time, the Company and the Board of Directors shall, acting through the
Nominating and Corporate Governance Committee of the Board 

  
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of Directors, include in the slate of nominees recommended to stockholders of the Company (the “Stockholders”) for election as directors at any annual or special meeting of the
Stockholders at which directors of the Company are to be elected, not less than seven individuals designated by KAR LLC (the “KAR LLC Nominees”). 
 (b) During such time as KAR LLC beneficially owns 50.0% or less (but at least 30.0%) of the total number of shares of Common Stock outstanding at any time, the Company and the Board of Directors shall
include, acting through the Nominating and Corporate Governance Committee of the Board of Directors, in the slate of nominees recommended to Stockholders for election as directors at any annual or special meeting of the Stockholders at which
directors of the Company are to be elected, not less than six KAR LLC Nominees. 
 (c) During such time as KAR LLC beneficially
owns less than 30.0% (but at least 20.0%) of the total number of shares of Common Stock outstanding at any time, the Company and the Board of Directors shall, acting through the Nominating and Corporate Governance Committee of the Board of
Directors, include in the slate of nominees recommended to Stockholders for election as directors at any annual or special meeting of the Stockholders at which directors of the Company are to be elected, not less than four KAR LLC Nominees.

 (d) During such time as KAR LLC beneficially owns less than 20.0% (but at least 10.0%) of the total number of shares of
Common Stock outstanding at any time, the Company and the Board of Directors shall, acting through the Nominating and Corporate Governance Committee of the Board of Directors, include in the slate of nominees recommended to Stockholders for election
as directors at any annual or special meeting of the Stockholders at which directors of the Company are to be elected, not less than three KAR LLC Nominees. 
 (e) During such time as KAR LLC beneficially owns less than 10.0% (but at least 5.0%) of the total number of shares of Common Stock outstanding at any time, the Company and the Board of Directors shall,
acting through the Nominating and Corporate Governance Committee of the Board of Directors, include in the slate of nominees recommended to Stockholders for election as directors at any annual or special meeting of the Stockholders at which
directors of the Company are to be elected, not less than one KAR LLC Nominee. 
 (f) Subject to Section 2(h), in the
event that the size of the Board of Directors is increased or decreased following the date hereof, then the number of individuals that KAR LLC shall have the right to designate under this Section 2 shall be proportionally adjusted such that,
following such change in the size of the Board of Directors, the KAR LLC Nominees as a percentage of the number of directors on the entire Board of Directors is equal to the number of individuals (rounded up to the nearest whole number) that
comprised the KAR LLC Nominees relative to the thirteen member Board of Directors as of the date hereof. For example, if KAR LLC held beneficial ownership of shares of Common Stock outstanding of 25.0% and the number of directors on the full Board
of Directors was decreased to nine, the KAR LLC Nominees would equal three individuals instead of four individuals determined pursuant to Section 2(c). 
 (g) Vacancies arising through the death, resignation or removal of a KAR LLC Nominee nominated by KAR LLC to the Board of Directors pursuant to this Section 2 may be filled by the Board of Directors
only with a KAR LLC Nominee and the director so chosen shall 

  
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hold office until the next election and until his or her successor is duly elected and qualified, or until his or her earlier death, resignation or removal. 

(h) At any time that KAR LLC beneficially owns at least 10% of the total number of shares of Common Stock outstanding, the Company shall
not take any action in accordance with the Certificate of Incorporation to change the size of the Board without the prior written consent of KAR LLC. 
 (i) Notwithstanding the provisions of this Section 2, KAR LLC shall not be entitled to designate a Person as a nominee to the Board of Directors upon a written determination by the Nominating and
Corporate Governance Committee of the Company (which determination shall set forth in writing reasonable grounds for such determination) that such Person would not be qualified under any applicable law, rule or regulation to serve as a director of
the Company. Other than with respect to the issue set forth in the preceding sentence, neither the Company nor any other Stockholder shall have the right to object to any KAR LLC Nominee. 

(j) The Company shall notify KAR LLC in writing of the date on which proxy materials are expected to be mailed by the Company in
connection with an election of directors at an annual or special meeting of the Stockholders (and such notice shall be delivered to KAR LLC at least 120 days prior to such expected mailing date). The Company shall provide KAR LLC with a reasonable
opportunity to review and provide comments on any portion of the proxy materials relating to the KAR LLC Nominees or the rights and obligations provided under this Agreement and to discuss any such comments with the Company. The Company shall notify
KAR LLC of any opposition to a KAR LLC Nominee sufficiently in advance of the date on which such proxy materials are to be mailed by the Company in connection with such election of directors so as to enable KAR LLC to propose a replacement KAR LLC
Nominee, if necessary, in accordance with the terms of this Agreement, and KAR LLC shall have 10 business days to designate another nominee. 
 (k) From and after such time as KAR LLC ceases to beneficially own at least 50.0% of the total number of shares of Common Stock outstanding and until this Agreement is terminated in accordance with
Section 3(e), each Equity Sponsor shall have the right, exercisable by delivering written notice to the Company, to designate a non-voting observer to attend any meetings of the Board of Directors. Notice of meetings of the Board of Directors
shall be furnished to each non-voting observer no later than, and using the same form of communication as, notice of meetings of the Board of Directors are furnished to directors in accordance with the Bylaws. 

(l) So long as this Agreement shall remain in effect, subject to applicable legal requirements, the Bylaws and the Certificate of
Incorporation shall accommodate the rights and obligations set forth herein. 
 Section 3. Miscellaneous.

 (a) Governing Law. This Agreement and the rights and obligations of the parties hereunder and the Persons subject
hereto shall be governed by, and construed and interpreted in accordance with, the laws of the State of Delaware, without giving effect to the choice of law principles thereof. 

  
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 (b) Certain Adjustments. The provisions of this Agreement shall apply to the full
extent set forth herein with respect to any and all shares of capital stock of the Company or any successor or assign of the Company (whether by merger, consolidation, sale of assets or otherwise) which may be issued in respect of, in exchange for,
or in substitution for the shares of Common Stock, by combination, recapitalization, reclassification, merger, consolidation or otherwise and the term “Common Stock” shall include all such other securities. 

(c) Enforcement. Each of the parties agrees that in the event of a breach of any provision of this Agreement, the aggrieved party
may elect to institute and prosecute proceedings in any court of competent jurisdiction to enforce specific performance or to enjoin the continuing breach of this Agreement. Such remedies shall, however, be cumulative and not exclusive, and shall be
in addition to any other remedy which any party hereto may have. Each party hereto hereby irrevocably submits to the non-exclusive jurisdiction of the state and federal courts in New York for the purposes of any suit, action or other proceeding
arising out of or based upon this Agreement or the subject matter hereof. Each party hereto hereby consents to service of process made in accordance with Section 3(f). 
 (d) Successors and Assigns. Except as otherwise provided herein, the provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs,
legal representatives, successors and assigns. 
 (e) Entire Agreement; Termination. This Agreement constitutes the full
and entire understanding and agreement between the parties with regard to the subject matter hereof and supersedes all prior oral or written (and all contemporaneous oral) agreements or understandings with respect to the subject matter hereof. This
Agreement shall terminate and be of no further force and effect at such time as KAR LLC ceases to beneficially own at least 5.0% of the total number of shares of Common Stock outstanding. 

(f) Notices. All notices, requests, demands, waivers and other communications required or permitted to be given under this
Agreement shall be in writing and shall be deemed to have been duly given if (a) delivered personally, (b) mailed, certified or registered mail with postage prepaid, (c) sent by next-day or overnight mail or delivery or (d) sent
by fax, as follows (or to such other address as the party entitled to notice shall hereafter designate in accordance with the terms hereof) 
 If to the Company: 
 KAR Auction Services, Inc. 

13085 Hamilton Crossing Blvd. 
 Carmel, IN 46032 
 Attention: Rebecca C. Polak 

Facsimile No.: (317) 249-4505 

Telephone No.: (317) 249-4255 

If to KAR LLC: 
 c/o Kelso & Company 
 320 Park Avenue, 24th Floor

  
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 New York, New York 10022 

Attention: James J. Connors, II 
 Facsimile No.: (212) 223-2379 
 Telephone No.:
(212) 751-3939 
 With a copy (which shall not constitute notice) to: 

Skadden, Arps, Slate, Meagher & Flom LLP 

Four Times Square 
 New York, New York 10036 
 Attention: Lou R. Kling, Esq.

 Facsimile No.: (212) 735-2000 

Telephone No.: (212) 735-3000 
 All such notices, requests, demands, waivers and other communications shall be deemed to have been received by (w) if by personal delivery, on the day delivered, (x) if by certified or
registered mail, on the fifth business day after the mailing thereof, (y) if by next-day or overnight mail or delivery, on the day delivered, or (z) if by fax, on the day delivered, provided that such delivery is confirmed.

 (g) Waiver. Waiver by any party hereto of any breach or default by the other party of any of the terms of this
Agreement shall not operate as a waiver of any other breach or default, whether similar to or different from the breach or default waived. No waiver of any provision of this Agreement shall be implied from any course of dealing between the parties
hereto or from any failure by either party to assert its or his or her rights hereunder on any occasion or series of occasions. 
 (h) Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.

 (i) Headings. The headings to sections in this Agreement are for the convenience of the parties only and shall not
control or affect the meaning or construction of any provision hereof. 
 (j) Invalidity of Provision. The invalidity or
unenforceability of any provision of this Agreement in any jurisdiction shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of this Agreement, including that
provision, in any other jurisdiction. 
 (k) Amendments and Waivers. The provisions of this Agreement may be amended at
any time and from time to time, and particular provisions of this Agreement may be waived or modified, with and only with an agreement or consent in writing signed by each of the parties hereto. 

(l) Further Assurances. Each party hereto shall do and perform or cause to be done and performed all such further acts and things
and shall execute and deliver all such other agreements, certificates, instruments and documents as any other party hereto or Person subject 

  
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hereto may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement. 
 (m) Third Party Beneficiaries. Except for the provisions of Section 2(k), which shall be enforceable by each of the Equity Sponsors, this Agreement is not intended to, and does not, confer
upon any Person other than the parties hereto any rights or remedies. 

  
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 IN WITNESS WHEREOF this Agreement has been signed by each of the parties hereto, and shall
be effective as of the date first above written. 
  

					
	KAR AUCTION SERVICES, INC.
			
	By:	 	 	 	/s/ Rebecca Polak
	Name:	 	Rebecca Polak
	Title:	 	EVP and General Counsel

  

					
	KAR HOLDINGS II, LLC
			
	By:	 	 	 	/s/ Church M. Moore
	Name:	 	Church M. Moore
	Title:	 	Vice President

  
 7Form of Deferred Stock Award

 Exhibit 10.19 
 HEALTH MANAGEMENT ASSOCIATES, INC. 
 1996 AMENDED AND RESTATED

 EXECUTIVE INCENTIVE COMPENSATION PLAN 
 AWARD NOTICE 
  

					
	 Grantee:
	 	 	  	
			
	 Types of Award:
	 	Deferred Stock Award	  	
			
	 Number of Stock Units:
	 	 	  	
			
	 Date of Grant:
	 	 	  	

 1.    Grant of Award.  This Award Notice serves to notify you
that the Compensation Committee (the “Committee”) of the Board of Directors of Health Management Associates, Inc. (“Health Management”) hereby grants to you, under Health Management’s Amended and Restated 1996 Executive
Incentive Compensation Plan (the “Plan”), an award of deferred stock for the Number of Stock Units set forth above (the “Deferred Stock Award”), on the terms and conditions set forth in this Award Notice and the Plan. The term
“Stock Unit” shall mean a non-voting unit of measurement which is deemed for bookkeeping purposes to be equivalent to one outstanding share of Health Management’s Class A Common Stock, par value $0.01 per share (the “Common
Stock”) solely for purposes of the Plan and this Award Notice. The Plan is incorporated herein by reference and made a part of this Award Notice. A copy of the Plan is available from Health Management’s Human Resources Department upon
request. You should review the terms of this Award Notice and the Plan carefully. The capitalized terms used and not defined in this Award Notice are defined in the Plan. 
 2.    Deferred Stock Award.  Subject to the terms set forth in this Award Notice and the Plan, the Number of Stock Units subject to this Deferred Stock Award will vest
as follows: 
 (a) one-fourth of the Stock Units will vest on the first anniversary of the Date of Grant; 

(b) an additional one-fourth of the Stock Units will vest on the second anniversary of the Date of Grant; 

(c) an additional one-fourth of the Stock Units will vest on the third anniversary of the Date of Grant; and 

(d) the remaining one-fourth of the Stock Units will vest on the fourth anniversary of the Date of Grant. 

Except as otherwise expressly provided in Section 3, the vesting schedule set forth above requires continued service as a member of
the Board of Directors of Health Management through the applicable vesting date as a condition to the vesting of the rights and benefits under this Award Notice. 

 3.    Effect of Certain Events. 

(a)    Voluntary Termination of Association on or after Age 65.  In the event of (i) your
voluntary termination of your association with Health Management on or after attaining the age of 65; or (ii) your voluntary decision not to stand for reelection to the Board on or after attaining the age of 65, in either case, prior to the
complete vesting of this Deferred Stock Award, your Deferred Stock Award shall continue to vest as set forth in Section 2 and shall be paid as set forth in Section 4. 

(b)    Death.  In the event of your death prior to the complete vesting of this Deferred Stock
Award, your Deferred Stock Award shall immediately become 100 percent vested and shall be paid as set forth in Section 4. 

(c)    Disability.  In the event of your Disability prior to the complete vesting of this Deferred
Stock Award, your Deferred Stock Award shall immediately become 100 percent vested and shall be paid as set forth in Section 4. For purposes of this Award Notice, “Disability” shall mean that you are unable to engage in any
substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months. In making its determination,
the Committee shall be guided by the prevailing authorities applicable under Section 409A of the Internal Revenue Code of 1986, as amended. 
 (d)    Change in Control.  Upon the occurrence of a Change in Control of Health Management that also qualifies as a change in the ownership or effective control of
Health Management or a change in the ownership of a substantial portion of the assets of Health Management within the meaning of Treasury Regulation 1.409A-3(i)(5), your unvested Deferred Stock Award shall immediately become 100 percent vested
and shall be paid as set forth in Section 4. 
 (e)    Other Termination of
Association.  In the event of your termination of association with Health Management for any reason other than those set forth above in Sections 3(a), (b) or (c), any and all unvested and unpaid Stock Units underlying this
Deferred Stock Award, including unvested dividends equivalents, will be forfeited and will not vest or be paid. 

4.    Timing and Manner of Payment with Respect to Stock Units.  So long as the applicable portion
of the total Deferred Stock Award has vested pursuant to Section 2, or vests in connection with the applicable event pursuant to Section 3, the vested Stock Units subject to this Award shall be paid on or as soon as administratively
practical following the vesting date (and in all events not more than 90 days after such date). A vested Stock Unit shall be paid by Health Management by delivering to you a share of Common Stock (either by delivering one or more certificates for
the shares deliverable with respect to vested Stock Units or by entering such shares in book entry form, as determined by Health Management in its discretion). Health Management’s obligation to deliver shares of Common Stock or otherwise make
payment with respect to vested Stock Units is subject to the condition that you or any other person entitled under the Plan to receive any shares with respect to the vested Stock Units deliver to Health Management any representations or other
documents or assurances required pursuant to Section 10(a) of the Plan. 

  
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 5.    Dividend and Voting Rights. 

(a)    Limitations on Rights Associated with Units.  You have no rights as a stockholder of Health
Management, no dividend rights (except as expressly provided in Section 5(b) with respect to dividend equivalents) and no voting rights with respect to the Stock Units or any shares of Common Stock underlying or issuable in respect of such
Stock Units, until such shares of Common Stock are actually delivered to and held of record by you. No adjustments will be made for dividends or other rights of a holder for which the record date is prior to the date of delivery of such shares,
except as expressly provided in Section 5(b) of this Award Notice. 
 (b)    Dividend Equivalent
Distributions.  As of any date that Health Management pays a dividend on its Common Stock, Health Management shall credit you with an amount equal to (i) the per-share value of the dividend paid by Health Management on its Common
Stock on such date, multiplied by (ii) the total number of unvested Stock Units (with such total number adjusted pursuant to Section 10(c) of the Plan) subject to this Deferred Stock Award as of the related dividend payment record date.
Any amount credited pursuant to the foregoing provisions of this Section 5(b) shall be payable to the Participant (without interest), subject to the same vesting, timing of payment and other terms, conditions and restrictions as the original
Stock Units to which such amount relates. No crediting of dividend equivalents shall be made pursuant to this Section 5(b) with respect to any Stock Units which, as of such record date, have either been paid pursuant to Section 3 or
Section 4 or terminated pursuant to Section 3(e). 
 6.    Miscellaneous. 

(a)    Plan Controls.  This Deferred Stock Award is subject to all of the provisions of the Plan,
which is hereby incorporated by reference, and is further subject to all the interpretations, amendments, rules and regulations that may from time to time be promulgated and adopted by the Committee pursuant to the Plan. In the event of any conflict
among the provisions of the Plan and this Award Notice, the provisions of the Plan will be controlling and determinative. 

(b)    Amendment.  Except as otherwise provided by the Plan, Health Management may only alter, amend
or terminate this Deferred Stock Award with your consent. 
 (c)    Limits on
Transferability.  This Deferred Stock Award shall not be pledged, hypothecated or otherwise encumbered or subject to any lien, obligation or liability to any party, or assigned or transferred other than by will or the laws of descent
and distribution or to a Beneficiary upon your death. Upon any attempt to transfer, assign, pledge, hypothecate or otherwise dispose of this Deferred Stock Award or any right or privilege conferred thereby contrary to the provisions of this Award
Notice and the Plan, or upon the sale or levy or attachment or similar process upon the rights and privileges conferred thereby, this Deferred Stock Award shall immediately become null and void. 

(d)    Restrictions on Issuance of Shares.  If at any time Health Management determines that the
listing, registration or qualification of the shares of Common Stock underlying this Deferred Stock Award on any securities exchange or under any state or federal 

  
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law, or the approval of any governmental agency, is necessary or advisable as a condition to the issuance of a certificate representing any vested shares of Common Stock subject to this Deferred
Stock Award, such issuance may not be made in whole or in part unless and until such listing, registration, qualification or approval shall have been effected or obtained free of any conditions not acceptable to Health Management. 

(e)    No Service Commitment by Health Management.  Nothing contained in this Award Notice or the
Plan constitutes an employment or service commitment by Health Management, confers upon you any right to remain employed by or in service to Health Management, interferes in any way with the right of Health Management at any time to terminate such
employment or service, or affects the right of Health Management to increase or decrease your other compensation. 

(f)    Severability.  If any provision of this Award Notice shall be held unlawful or otherwise
invalid or unenforceable in whole or in part by a court of competent jurisdiction, such provision shall (i) be deemed limited to the extent that such court of competent jurisdiction deems it lawful, valid and/or enforceable and as so limited
shall remain in full force and effect, and (ii) not affect any other provision of this Award Notice or part thereof, each of which shall remain in full force and effect. If the making of any payment or the provision of any other benefit
required under this Award Notice shall be held unlawful or otherwise invalid or unenforceable by a court of competent jurisdiction, such unlawfulness, invalidity or unenforceability shall not prevent any other payment or benefit from being made or
provided under this Award Notice, and if the making of any payment in full or the provision of any other benefit required under this Award Notice in full would be unlawful or otherwise invalid or unenforceable, then such unlawfulness, invalidity or
unenforceability shall not prevent such payment or benefit from being made or provided in part, to the extent that it would not be unlawful, invalid or unenforceable, and the maximum payment or benefit that would not be unlawful, invalid or
unenforceable shall be made or provided under this Award Notice. 
 (g)    Waiver.  Any
party’s failure to insist on compliance or enforcement of any provision of this Award Notice shall not affect its validity or enforceability or constitute a waiver of future enforcement of that provision or of any other provision of this Award
Notice. 
 (h)    Rights of Health Management and Subsidiaries.  This Award Notice does not
affect the right of Health Management or any of its subsidiaries to take any corporate action whatsoever, including without limitation its right to recapitalize, reorganize or make other changes in its capital structure or business, merge or
consolidate, issue bonds, notes, shares of Common Stock or other securities, including preferred stock, or options therefor, dissolve or liquidate, or sell or transfer any part of its assets or business. 

(i)    Rules of Construction.  The headings given to the Sections of this Award Notice are solely as
a convenience to facilitate reference, and are not intended to narrow, limit or affect the substance or interpretation of the provisions contained herein. The reference to any statute, regulation or other provision of law shall be construed to refer
to any amendment to or successor of such provision of law. 

  
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 (j)    Governing Law.  This Award Notice will be
governed by and construed in accordance with the laws of the State of Delaware, except as superseded by applicable federal law, without giving effect to its conflicts of law provisions. 

(k)    Section 409A.  This Deferred Stock Award is intended to comply with the requirements of
Section 409A of the Internal Revenue Code of 1986, as amended, and the treasury regulations promulgated and other official guidance issued thereunder (collectively, “Section 409A”), and shall be administered and interpreted consistent
with such intention. 

*        *        *      
  *        * 

  
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 ACKNOWLEDGEMENT 
 The undersigned acknowledges receipt of, and understands and agrees to be bound by, this Award Notice and the Plan. The undersigned further acknowledges that: (a) this Award Notice and the Plan set
forth the entire understanding between him or her and Health Management regarding this Deferred Stock Award granted by this Award Notice; and, (b) this Award Notice and the Plan supersede all prior oral and written agreements on that subject.

  

			
	 Dated:
	 	 
	
	 
	 Signature

	
	 
	 Name (printed)

  
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