Document:

Exhibit 10.1

  

  

  TRANSITION SERVICES AGREEMENT

  

  

  This TRANSITION SERVICES AGREEMENT, dated as of [●], 2019 (this “Agreement”), is made and entered into by and between KAR Auction Services, Inc., a Delaware corporation (“KAR”), and IAA Spinco
      Inc., a Delaware corporation and wholly owned subsidiary of KAR (“SpinCo”, and together with KAR, the “Parties”).  For purposes of this Agreement, capitalized terms used herein and not otherwise defined shall have the respective meanings ascribed to such terms in the Separation and Distribution Agreement.

  

  

  RECITALS:

  

  

  WHEREAS, the board of directors of KAR (the “KAR

          Board”) has determined that it is advisable and in the best interests of KAR to separate KAR’s salvage auction businesses from its whole car auction businesses, creating two independent publicly traded companies;

  

  

  WHEREAS, in furtherance of the foregoing, (a) KAR will cause the applicable members of the KAR Group to assign, transfer,
      convey and deliver to SpinCo or the applicable SpinCo Designee all right, title and interest of the KAR Group in and to the SpinCo Assets, (b) SpinCo and the applicable SpinCo Designees will accept, assume and agree faithfully to perform, discharge
      and fulfill the SpinCo Liabilities (the transactions described in clauses (a) and (b) herein being referred to collectively as the “SpinCo Contribution”), [(c)
      SpinCo will cause the applicable members of the SpinCo Group to assign, transfer, convey and deliver to KAR or the applicable KAR Designee all right, title and interest of the SpinCo Group in and to the KAR Assets, and (d) KAR and the applicable KAR
      Designees will accept, assume and agree faithfully to perform, discharge and fulfill the KAR Liabilities] (the transactions described in this recital, including the assignment, transfer, conveyance and delivery of the SpinCo Assets and KAR Assets,
      and the acceptance, assumption and agreement to perform the SpinCo Liabilities and the KAR Liabilities, being referred to collectively as the “Separation”);

  

  

  WHEREAS, to effectuate the Separation and the Distribution, KAR and SpinCo have entered into a Separation and Distribution
      Agreement, dated as of [●], 2019 (the “Separation and Distribution Agreement”); and

  

  

  WHEREAS, to facilitate and provide for an orderly transition in connection with the Separation, the Parties desire to enter
      into this Agreement to set forth the terms pursuant to which each of the Parties shall provide Services to the other Party for a transitional period.

  

  
    
      

  

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

   

    

  ARTICLE I

  

  

  SERVICES

  

  

  Section 1.01          Services.

  

  

  (a)          With respect to each
      applicable service set forth on Schedule 1 hereto (the “Services”),
      the Party identified on Schedule 1  hereto as the “Provider” of
      such Service agrees to provide, or to cause one or more members of its Group to provide, such Service to the other Party (the “Recipient”), or any members of
      the Recipient’s Group, in each case for the period commencing on the Effective Date and ending on the earlier of (i) the date that a Party terminates the provision of such Service pursuant to Section 4.02 and (ii) the date set forth on Schedule 1 with respect to such Service (the “Service Period”).

  

  

  (b)          At any time during the term of
      this Agreement, either Party may request that the other Party provide or cause its Group to provide additional services hereunder (the “Additional Services”)
      by providing written notice of such request, it being understood that the Party that receives such request may in its sole discretion decline to provide such requested Additional Services. If a Provider agrees to undertake to provide the Additional
      Services, upon the mutual written agreement as to the nature, cost, duration and scope of such Additional Services, KAR and SpinCo shall supplement in writing the Services set forth on Schedule 1 to include such Additional Services. Except where the context otherwise indicates or requires, any such Additional Services specified on Schedule 1 or so agreed upon in writing by the Parties shall be deemed to be “Services” under this Agreement.

  

  

  Section 1.02          Performance of Services.

  

  

  (a)          Except for Services identified
      as “New Service” in Schedule 1 hereto (“New Services”), which New Services the Provider shall use commercially reasonable efforts to provide, the Provider shall perform, or shall cause one or more members of its Group to
      perform, all Services to be provided by the Provider in a manner that is based on its past practice and that is substantially similar in all material respects to such Services (or analogous services) provided by or on behalf of KAR or any of its
      Subsidiaries with respect to the SpinCo Business or KAR Business, as applicable, during the twelve (12) months prior to the Effective Date (collectively referred to as the “Level

          of Service”).

  

  

  (b)          Nothing in this Agreement
      shall require the Provider to perform or cause to be performed any Service to the extent that the manner of such performance would constitute a violation of any applicable Law or any existing contract or agreement with a Third Party. As between the
      Parties, the Provider shall be the party that determines, in its sole discretion,  whether to communicate with and shall be the party that communicates with Third Parties in connection with any necessary Third Party consents required under any
      existing contract or agreement with a Third Party to allow the Provider to perform, or cause to be performed, Services to be provided to the Recipient hereunder, with any such communications to be in the sole discretion of Provider. Unless otherwise
      agreed in writing by the Parties, all reasonable and documented out-of-pocket costs and expenses (if any) incurred by any Party or any member of its Group in connection with obtaining any Third Party consent that is required to allow the Provider to
      perform or cause to be performed any Services hereunder shall be paid for by the Recipient. If, with respect to a Service, a required Third Party consent has not been obtained, or the performance of a Service by or on behalf of the Provider would
      constitute a violation of any applicable Law, the Provider shall have no obligation to perform or cause to be performed such Service.

  
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  (c)          Except for New Services, which
      New Services the Provider shall not be required to perform or cause to be performed other than in a manner that is commercially reasonable to Provider, the Provider shall not be obligated to perform or to cause to be performed any Service in a manner
      that is materially more burdensome (with respect to service quality, service quantity, or allocation of personnel or resources) than such services (or analogous services) provided by or on behalf of KAR or any of its Subsidiaries with respect to the
      SpinCo Business or KAR Business, as applicable, during the 12-month period prior to the Effective Date. Without limiting the generality of the foregoing, the Provider shall not be required to maintain the employment of any specific employee(s), hire
      additional employees or third-party service providers or purchase, or purchase, lease or license any additional equipment, software or other assets or properties in order the provide the Services hereunder. If the Recipient requests that the Provider
      perform or cause to be performed any Service in a manner that exceeds the Level of Service, then the Parties shall reasonably cooperate and act in good faith to determine whether the Provider will be required to provide such requested higher Level of
      Service. If the Parties determine that the Provider shall provide the requested higher Level of Service, then such higher Level of Service shall be documented in a written agreement signed by the Parties, which may be an amendment or addendum to this
      Agreement.

  

  

  (d)          i)   Neither the Provider nor
      any member of its Group shall be required to perform or to cause to be performed any of the Services for the benefit of any Third Party or any other Person other than the Recipient and the members of its Group, and (ii) EXCEPT AS EXPRESSLY PROVIDED
      IN THIS Section 1.02 OR Section 6.04, EACH PARTY ACKNOWLEDGES AND
      AGREES THAT ALL SERVICES ARE PROVIDED ON AN “AS-IS” BASIS, THAT THE RECIPIENT ASSUMES ALL RISK AND LIABILITY ARISING FROM OR RELATING TO ITS USE OF AND RELIANCE UPON THE SERVICES, AND THAT THE PROVIDER MAKES NO OTHER REPRESENTATIONS OR GRANTS ANY
      WARRANTIES, EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, BY STATUTE OR OTHERWISE, WITH RESPECT TO THE SERVICES. EACH PARTY SPECIFICALLY DISCLAIMS ANY OTHER WARRANTIES, WHETHER WRITTEN OR ORAL, OR EXPRESS OR IMPLIED, INCLUDING ANY
      WARRANTY OF QUALITY, MERCHANTABILITY, OR FITNESS FOR A PARTICULAR USE OR PURPOSE OR THE NON-INFRINGEMENT OF ANY INTELLECTUAL PROPERTY RIGHTS OF THIRD PARTIES.

  
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  (e)          Each Party shall be
      responsible for its own compliance with any and all Laws applicable to its performance under this Agreement. No Party shall knowingly take any action in violation of any such applicable Law.

  

  

      Section 1.03          Charges for Services. The Recipient shall pay the Provider of the Services a fee for such Services (or category of Services, as applicable) (each fee constituting a “Charge” and, collectively, “Charges”), which Charges are set forth in Schedule 2 hereto. During the term of this Agreement, the amount of a Charge for any Service may be(a) any decrease as determined by the Provider in its sole
      discretion, and (b) increased to reflect any increase in the rates or charges imposed by any Third Party provider that is providing Services (proportional to the respective use of such Services by each Party) (“Additional Charges”). Together with any invoice for Charges, the Provider shall provide the Recipient with reasonable documentation, including any additional documentation reasonably
      requested by the Recipient to the extent that such documentation is in the Provider’s or its Group’s possession or control, to confirm the calculation of any applicable Additional Charges.

  

  

      Section 1.04          Changes in the Performance of Services.
      Subject to the performance Level of Service, the Provider may make changes from time to time in the manner of performing the Services if the Provider is making similar changes in performing analogous services for itself or its Group and if the
      Provider furnishes to the Recipient reasonable prior written notice of such changes. No such change shall materially adversely affect the timeliness or quality of the applicable Service.

  

  

      Section 1.05          Transitional Nature of Services.
      The Parties acknowledge the transitional nature of the Services and agree to reasonably cooperate and to use commercially reasonable efforts to effectuate a smooth transition of the Services from the Provider to the Recipient (or its designee).

  

  

      Section 1.05          Subcontracting. A Provider may
      hire or engage one or more Third Parties to perform any or all of its obligations under this Agreement; provided, however, that (a) such Provider shall use the same degree of care (but at least reasonable care) in selecting each such Third Party as it would if such Third Party was being retained to provide
      similar services to the Provider or its Group and (b) such Provider shall in all cases remain primarily responsible for all of its obligations under this Agreement with respect to the Services.

  
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  ARTICLE II

  

  

  OTHER ARRANGEMENTS

  

  

  Section 2.01          Access.  The Recipient shall, and shall cause the members of its Group to, allow the Provider and the members of its Group and their respective Representatives
      reasonable access to the facilities of the Recipient and the members of its Group that is necessary for the Provider to fulfill its obligations under this Agreement. In addition to the foregoing right of access, the Recipient shall, and shall cause
      the members of its Group to, afford the Provider and the members of its Group and their respective Representatives, upon reasonable advance written notice, reasonable access during normal business hours to the facilities, Information, systems,
      infrastructure and personnel of the Recipient and the members of its Group as reasonably necessary for the Provider to verify the adequacy of internal controls over information technology, reporting of financial data and related processes employed in
      connection with the Services being provided by the Provider or the members of the Provider Group, including in connection with verifying compliance with Section 404 of the Sarbanes-Oxley Act of 2002; provided that (i) such access shall not unreasonably interfere with any of the business or operations of the Recipient or any member of its Group and (ii) in the event that the Recipient determines that
      providing such access could be commercially detrimental, violate any applicable Law or agreement or waive any attorney-client privilege, then the Parties shall use commercially reasonable efforts to permit such access in a manner that avoids such
      harm and consequence. The Provider agrees that all of its and its Group’s employees shall, and that it shall use commercially reasonable efforts to cause its Representatives’ employees to, when on the property of the Recipient or a member of the
      Recipient’s Group, or when given access to any facilities, Information, systems, infrastructure or personnel of the Recipient or a member of the Recipient’s Group, conform to the policies and procedures of the Recipient and the members of the
      Recipient’s Group, as applicable, concerning health, safety, conduct and security which are made known or provided to the Provider from time to time.

  

  

  Section 2.02          Audit Assistance.  Each of the Parties and the members of their respective Groups are or may be subject to regulation and audit by a Governmental Authority (including a Taxing Authority)  or
      parties to contracts with such Parties or the members of their Groups. If such a Third Party exercises its right to examine or audit such Party’s or a member of its Group’s books, records, documents or accounting practices and procedures pursuant to
      such applicable Law or contract provisions, and such examination or audit relates to the Services, then the other Party shall provide, at the sole cost and expense of the requesting Party (except if related to the Recipient's receipt of Services, in
      which case such cost and expense shall be the Recipient's responsibility), all assistance reasonably requested by the Party that is subject to the examination or audit in responding to such examination or audits or requests for Information, to the
      extent that such assistance or Information is within the reasonable control of the cooperating Party and is related to the Services.  The requesting Party shall consult and cooperate with the cooperating Party to limit the scope of any such
      examination or audit to the extent reasonably possible.

  
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  Section 2.04          Title to
        Intellectual Property.  Except as otherwise expressly provided for under this Agreement, the Separation and Distribution Agreement, the Trademark License
      Agreement or the Transition Trademark License Agreement, the Recipient acknowledges that it shall acquire no right, title or interest (including any license rights or rights of use) in any intellectual property which is owned or licensed by the
      Provider, by reason of the provision of the Services hereunder (other than the receipt and use of the Services by the Recipient during the term of this Agreement as contemplated hereunder). The Recipient shall not remove or alter any copyright,
      trademark, confidentiality or other proprietary notices that appear on any intellectual property owned or licensed by the Provider, and the Recipient shall reproduce any such notices on any and all copies thereof. The Recipient shall not attempt to
      decompile, translate, reverse engineer or make excessive copies of any intellectual property owned or licensed by the Provider, and the Recipient shall promptly notify the Provider of any such attempt, regardless of whether by the Recipient or any
      Third Party, of which the Recipient becomes aware.

  

  

  ARTICLE III

  

  

  BILLING; TAXES

  

  

      Section 3.01          Procedure. Charges for the Services as well as any
      Covered Taxes due and owing in accordance with Section 3.03 hereof, shall be charged to and payable by the Recipient. Amounts payable pursuant to this Agreement shall be paid by wire transfer (or such other method of payment as may be agreed between
      the Parties from time to time) to the Provider (as directed by the Provider), on a monthly basis, which amounts shall be due within thirty (30) days after the Recipient’s receipt of each such invoice, including reasonable documentation pursuant to Section 1.03. All amounts due and payable hereunder shall be invoiced and paid in U.S. dollars.

  

  

      Section 3.02          Late Payments.  Charges not paid when due pursuant to
      this Agreement (and any amounts billed or otherwise invoiced or demanded and properly payable that are not paid within thirty (30) days of the receipt of such bill, invoice or other demand) shall accrue interest at a rate per annum equal to the Prime
      Rate plus one percent (1%) or the maximum rate under applicable Law, whichever is lower (the “Interest Payment”).

  

  

      Section 3.03          Taxes.

  

  

  (a)          Without limiting any
      provisions of this Agreement, the Charges shall be exclusive of all sales, use, value-added, goods and services, services, excise, consumption, transfer or similar taxes, and any related penalties and interest, arising from the payment of such
      Charges to the Provider under this Agreement (other than any taxes measured by or imposed on the Provider’s gross or net income, or franchise or other similar taxes of the Provider) (“Covered Taxes”).

  
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  (b)          The Recipient shall pay, or
      reimburse the Provider for, any and all Covered Taxes.

  

  

  (c)          Where required by applicable
      Law, the Recipient shall pay any Covered Taxes directly to the relevant Governmental Authority in compliance with applicable Law. If any Covered Taxes are assessed on the receipt of Charges by the  Provider under this Agreement, the Provider shall
      notify the Recipient, pay such Covered Taxes directly to the applicable Governmental Authority and promptly provide the Recipient with an official receipt showing such payment, and the Recipient shall (without duplication) reimburse the Provider for
      such Covered Taxes.

  

  

  (d)          In the event that applicable
      Law requires any Covered Taxes to be withheld from a payment of Charges by a Recipient to a Provider under this Agreement, the Recipient shall make such required withholding, pay such withheld amounts over to the applicable Governmental Authority in
      compliance with applicable Law, and increase the amount payable to the Provider as necessary so that, after the Recipient has withheld such amounts, the Provider receives an amount equal to the amount the Provider would have received had no such
      withholding been required.

  

  

  (e)          The Recipient and the Provider
      shall use reasonable efforts, and shall cooperate with each other in good faith, to secure (and to enable the Recipient to claim) any exemption from, or otherwise to minimize, any Covered Taxes or to claim a tax refund therefor or tax credit in
      respect thereof, and the Recipient shall not be responsible for any Covered Taxes to the extent that such Covered Taxes would not have been imposed if (i) the Provider was eligible to claim an exemption from or reduction of such Covered Taxes, (ii)
      the Recipient used commercially reasonable efforts to notify the Provider of such eligibility reasonably in advance and (iii) the Provider failed to claim such exemption or reduction. If the Provider receives a refund with respect to any Covered
      Taxes paid or borne by the Recipient under this Agreement, the Provider shall promptly pay such refund to the Recipient net of costs and expenses (including any additional taxes) incurred by the Provider in connection with the receipt of such refund
      or the payment of such refund to the Recipient net of costs and expenses (including any additional taxes) incurred by the Provider in connection with the receipt of such refund or the payment of such refund to the Recipient.

  

  

      Section 3.04          No Set-Off.  Except as mutually agreed to in writing by
      KAR and SpinCo, no Party or any member of its Group shall have any right of set-off or other similar rights with respect to (a) any amounts received pursuant to this Agreement or (b) any other amounts claimed to be owed to the other Party or any of
      member of its Group arising out of this Agreement.

  
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  ARTICLE IV

  

  

  TERM AND TERMINATION

  

  

      Section 4.01          Term. This Agreement shall commence upon the Effective
      Date and shall terminate upon the earlier to occur of: (a) the last date on which either Party is obligated to provide any Service to the other Party in accordance with the terms of this Agreement; (b) the mutual written agreement of the Parties to
      terminate this Agreement in its entirety; and (c) 11:59 p.m., New York City time on [●]. Unless otherwise terminated pursuant to Section 4.02, this Agreement
      shall terminate with respect to each Service as of the close of business on the last day of the Service Period for such Service.

  

  

  Section 4.02          Early Termination.

  

  

  (a)          Without prejudice to the
      Recipient’s rights with respect to Force Majeure, the Recipient may from time to time terminate this Agreement with respect to the entirety of any individual Service:

  

  

  (i)          for any
      reason or no reason, at least thirty (30) days following written request to the Provider to terminate such Service, if the Provider agrees in writing to such termination; provided,
      however, that any such termination (x) may only be effective as of the date agreed to in writing by the Parties, (y) shall not result in a reduction of Charges
      with respect to calendar year 2019, and (z) shall result in a reduction of Charges following calendar year 2019 only if and to the extent expressly set forth in Schedule
          2; or

  

  

  (ii)          if the
      Provider of such Service has failed to perform any of its material obligations under this Agreement with respect to such Service, and such failure shall continue to be uncured for a period of  thirty (30) days (or ninety (90) days if Provider is
      using good-faith efforts to so cure during such thirty (30) day period and thereafter) after receipt by the Provider of written notice of such failure from the Recipient; provided,
      however, that any such termination may only be effective as of the last day of a month; provided, further, that the Recipient shall not be entitled to terminate this Agreement with respect to the applicable Service if, as
      of the end of such period, there remains a good-faith Dispute between the Parties (undertaken in accordance with the terms of Section 7.12) as to whether the
      Provider has cured the applicable breach.

  

  

  (b)          The Provider may terminate
      this Agreement with respect to any individual Service, but not a portion thereof, at any time upon prior written notice to the Recipient if the Recipient has failed to perform any of its material obligations under this Agreement relating to such
      Service, including making payment of Charges for such Service when due, and such failure shall continue to be uncured for a period of thirty (30) days (or ninety (90) days if Recipient is using good-faith efforts to so cure during such thirty (30)
      day period and thereafter) after receipt by the Recipient of a written notice of such failure from the Provider; provided, however, that any such termination may only be effective as of the last day of a month; provided,
      further, that the Provider shall not be entitled to terminate this Agreement with respect to the applicable Service if, as of the end of such period, there
      remains a good-faith Dispute between the Parties (undertaken in accordance with the terms of Section 7.12) as to whether the Recipient has cured the
      applicable breach.

  
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      Section 4.03          Interdependencies.  The Parties acknowledge and agree
      that: (a) there may be interdependencies among the Services being provided under this Agreement; (b) upon the request of either Party, the Parties shall cooperate and act in good faith to determine whether (i) any such interdependencies exist with
      respect to the particular Service that a Party is seeking to terminate pursuant to Section 4.02 and (ii) in the case of such termination, the Provider’s
      ability to provide a particular Service in accordance with this Agreement would be materially and adversely affected by such termination of another Service; and (c) in the event that the Parties have determined that such interdependencies exist (and,
      in the case of such termination that the Provider’s ability to provide a particular Service in accordance with this Agreement would be materially and adversely affected by such termination), the Parties shall negotiate in good faith to amend Schedule 1 with respect to such termination of such impacted Service, which amendment shall be consistent with the terms of comparable Services.  To the extent
      that the Provider’s ability to provide a Service is dependent on the continuation of a specified Service, the Provider’s obligation to provide such dependent Service shall terminate automatically with the termination of such supporting Service.

  

  

      Section 4.04          Effect of Termination.  Upon the termination of any
      Service pursuant to this Agreement, the Provider of the terminated Service shall have no further obligation to provide the terminated Service.

  

  

      Section 4.05          Information Transmission.  The Provider, on behalf of
      itself and the members of its Group, shall use commercially reasonable efforts to provide or make available, or cause to be provided or made available, to the Recipient, in accordance with Section 6.1 of the Separation and Distribution Agreement, any
      Information received or computed by the Provider for the benefit of the Recipient concerning the relevant Service during the Service Period; provided, however, that, except as otherwise agreed to in writing by the Parties (a) the Provider shall not have any obligation to provide, or cause to be provided,
      Information in any nonstandard format, (b) the Provider and the members of its Group shall be reimbursed for their reasonable costs in accordance with Section 6.3 of the Separation and Distribution Agreement for creating, gathering, copying,
      transporting and otherwise providing such Information, and (c) the Provider shall use commercially reasonable efforts to maintain any such Information in accordance with Section 6.4 of the Separation and Distribution Agreement.

  
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  ARTICLE V

  

  

  CONFIDENTIALITY; PROTECTIVE ARRANGEMENTS

  

  

      Section 5.01          KAR and SpinCo Obligations. Subject to Section 5.04, until the five (5)-year anniversary of the Effective Date, each of KAR and SpinCo, on behalf of itself and each member of its Group, agrees to hold,
      and to cause its respective Representatives to hold, in confidence, with at least the same degree of care that applies to KAR’s Confidential Information pursuant to policies in effect as of the Effective Date, all Confidential Information concerning
      the other Party or the members of its Group or their respective businesses that is either in its possession (including Confidential Information in its possession prior to the Effective Date) or furnished by such other Party or such other Party’s
      Group members or their respective Representatives at any time pursuant to this Agreement, and shall not use any such Confidential Information other than for such purposes as may be expressly permitted hereunder, except, in each case, to the extent
      that such Confidential Information has been (a) in the public domain or generally available to the public, other than as a result of a disclosure by such Party or any member of its Group or any of their respective Representatives in violation of this
      Agreement; (b) later lawfully acquired from other sources by such Party or any of member of its Group, which sources are not themselves bound by a confidentiality obligation or other contractual, legal or fiduciary obligation of confidentiality with
      respect to such Confidential Information; or (c) independently developed or generated without reference to or use of the Confidential Information of the other Party or any member of its Group. If any Confidential Information of a Party or any member
      of its Group is disclosed to the other Party or any member of its Group in connection with providing the Services, then such disclosed Confidential Information shall be used only as required to perform such Services.

  

  

      Section 5.02          No Release; Return or Destruction.  Each Party agrees (a)
      not to release or disclose, or permit to be released or disclosed, any Confidential Information of the other Party addressed in Section 5.01 to any other
      Person, except its Representatives who need to know such Confidential Information in their capacities as such (whom shall be advised of their obligations hereunder with respect to such Confidential Information) and except in compliance with Section 5.04, and (b) to use commercially reasonable efforts to maintain such Confidential Information in accordance with Section 6.4 of the Separation and
      Distribution Agreement. Without limiting the foregoing, when any such Confidential Information is no longer needed for the purposes contemplated by the Separation and Distribution Agreement, this Agreement or any other Ancillary Agreements, each
      Party will promptly after request of the other Party either return to the other Party all such Confidential Information in a tangible form (including all copies thereof and all notes, extracts or summaries based thereon) or notify the other Party in
      writing that it has destroyed such information (and such copies thereof and such notes, extracts or summaries based thereon).

  
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      Section 5.03          Privacy and Data Protection Laws.  Each Party shall
      comply with all applicable state, federal and foreign privacy and data protection Laws that are or that may in the future be applicable to the provision of the Services under this Agreement.

  

  

      Section 5.04          Protective Arrangements. In the event that a Party or any
      member of its Group either determines on the advice of its counsel that it is required to disclose any information pursuant to applicable Law or receives any request or demand under lawful process or from any Governmental Authority to disclose or
      provide information of the other Party (or any member of its Group) that is subject to the confidentiality provisions hereof, such Party shall notify the other Party (to the extent legally permitted) as promptly as practicable under the circumstances
      prior to disclosing or providing such information and shall reasonably cooperate, at the expense of the other Party, in seeking any appropriate protective order requested by the other Party. In the event that such other Party fails to receive such
      appropriate protective order in a timely manner and the Party receiving the request or demand reasonably determines that its failure to disclose or provide such information shall actually prejudice the Party receiving the request or demand, then the
      Party that received such request or demand may thereafter disclose or provide information to the extent required by such Law (as so advised by its counsel) or by lawful process or such Governmental Authority, and the disclosing Party shall promptly
      provide the other Party with a copy of the information so disclosed, in the same form and format so disclosed, together with a list of all Persons to whom such information was disclosed, in each case to the extent legally permitted.

  

  

  ARTICLE VI

  

  

  LIMITED LIABILITY AND INDEMNIFICATION

  

  

  Section 6.01          Limitations on Liability.

  

  

  (a)          THE LIABILITIES OF THE
      PROVIDER AND ITS GROUP MEMBERS AND THEIR RESPECTIVE REPRESENTATIVES, COLLECTIVELY, UNDER THIS AGREEMENT FOR ANY AND ALL ACTS OR FAILURES TO ACT IN CONNECTION HEREWITH (INCLUDING THE PERFORMANCE OR BREACH OF THIS AGREEMENT), OR FROM THE SALE,
      DELIVERY, PROVISION OR USE OF ANY AND ALL SERVICES PROVIDED UNDER OR CONTEMPLATED BY THIS AGREEMENT, WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR OTHERWISE, SHALL NOT IN THE AGGREGATE EXCEED FIFTY (50%) PERCENT OF THE
      CHARGES PAID AND PAYABLE TO PROVIDER BY THE RECIPIENT PURSUANT TO THIS AGREEMENT.

  

  

  (b)          IN NO EVENT SHALL EITHER
      PARTY, THE MEMBERS OF ITS GROUP OR THEIR RESPECTIVE REPRESENTATIVES BE LIABLE TO THE OTHER PARTY FOR ANY INDIRECT, PUNITIVE, EXEMPLARY, REMOTE, SPECULATIVE OR SIMILAR DAMAGES IN EXCESS OF COMPENSATORY DAMAGES OF THE OTHER PARTY IN CONNECTION WITH THE
      PERFORMANCE OF THIS AGREEMENT (OTHER THAN ANY SUCH LIABILITY TO THE EXTENT PAYABLE BY A PARTY OR A MEMBER OF ITS GROUP TO A THIRD PARTY WITH RESPECT TO A THIRD-PARTY CLAIM), AND EACH PARTY HEREBY WAIVES ON BEHALF OF ITSELF, THE MEMBERS OF ITS GROUP
      AND ITS REPRESENTATIVES ANY CLAIM FOR SUCH DAMAGES, WHETHER ARISING IN CONTRACT, TORT OR OTHERWISE.

  
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  (c)          The limitations in Section 6.01(a) and Section 6.01(b) shall not apply in respect of any
      Liability to the extent arising out of or in connection with the gross negligence, willful misconduct or fraud of or by the Party (or a member of its Group) to be charged.

  

  

      Section 6.02          Obligation to Re-Perform.  In the event of any breach of
      this Agreement by the Provider with respect to the provision of any Services which the Provider can reasonably be expected to re-perform in a commercially reasonable manner, the Provider shall promptly correct in all material respects such error,
      defect or breach or re-perform in all material respects such Services at the request of the Recipient and at the sole cost and expense of the Provider. Any request for re-performance in accordance with this Section 6.02 by the Recipient must be in writing and specify in reasonable detail the particular error, defect or breach, and such request must be made no more than one month from the later of (x) the
      date on which such breach occurred and (y) the date on which such breach was reasonably discovered by the Recipient.

  

  

      Section 6.03          Recipient Indemnity. In addition to (but not in
      duplication of) its other indemnification obligations (if any) under the Separation and Distribution Agreement, this Agreement or any other Ancillary Agreement, but subject to the limitations set forth in Section 6.01 of this Agreement, the Recipient shall indemnify, defend and hold harmless the Provider, the members of the Provider’s Group and each of their respective Representatives, and each of the
      successors and assigns of any of the foregoing (collectively, the “Provider Indemnitees”), from and against any and all claims of Third Parties to the extent
      relating to, arising out of or resulting from the Provider’s furnishing or failing to furnish the Services provided for in this Agreement, other than Third Party Claims to the extent arising out of the gross negligence, willful misconduct or fraud of
      Provider or a member of Provider’s Group.

  

  

      Section 6.04          Provider Indemnity.  In addition to (but not in
      duplication of) its other indemnification obligations (if any) under the Separation and Distribution Agreement, this Agreement or any other Ancillary Agreement, but subject to the limitations set forth in Section 6.01 of this Agreement, the Provider shall indemnify, defend and hold harmless the Recipient, the members of the Recipient’s Group and each of their respective Representatives, and each of the
      successors and assigns of any of the foregoing (collectively, the “Recipient Indemnitees”), from and against any and all Liabilities to the extent relating to,
      arising out of or resulting from the sale, delivery, provision or use of any Services provided by such Provider hereunder, but only to the extent that such Liability relates to, arises out of or results from the gross negligence, willful misconduct
      or fraud of Provider or a member of Provider’s Group.

  
    12

    
      

  

      Section 6.05          Indemnification Procedures.  The procedures for
      indemnification set forth in Sections 4.4, 4.5 and 4.6 of the Separation and Distribution Agreement shall govern claims for indemnification under this Agreement, mutatis mutandis.

  

  

  ARTICLE VII

  

  

  MISCELLANEOUS

  

  

      Section 7.01          Independent Contractors.  The Parties each acknowledge
      and agree that they are separate entities, each of which has entered into this Agreement for independent business reasons. The relationships of the Parties hereunder are those of independent contractors and nothing contained herein shall be deemed to
      create a joint venture, partnership or any other relationship between the Parties or the respective members of its Group. Employees performing Services hereunder do so on behalf of, under the direction of, and as employees of, the Provider, and the
      Recipient shall have no right, power or authority to direct such employees.

  

  

  Section 7.02          Counterparts; Entire Agreement; Corporate Power.

  

  

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

  

  

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

  

  

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

  

  

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

  
    13

    
      

  

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

  

  

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

  

  

      Section 7.03          Governing Law.  This Agreement (and any claims or
      disputes arising out of or related hereto or to the transactions contemplated hereby or to the inducement of any Party to enter herein, whether for breach of contract, tortious conduct or otherwise and whether predicated on common law, statute or
      otherwise) shall be governed by and construed and interpreted in accordance with the Laws of the State of Delaware, irrespective of the choice of Laws principles of the State of Delaware, including all matters of validity, construction, effect,
      enforceability, performance and remedies.

  

  

      Section 7.04          Assignability.  This Agreement shall be binding upon and
      inure to the benefit of the Parties and their respective successors and permitted assigns; provided, however, that SpinCo may not assign its rights or obligations under this Agreement without the express prior written consent of KAR, which consent shall not be unreasonably withheld, conditioned or delayed.

  

  

      Section 7.05          Third-Party Beneficiaries.  Except as provided in Article VI with respect to the Provider Indemnitees and Recipient Indemnitees in their capacities as such, (a) the provisions of this Agreement are solely for the
      benefit of the Parties and are not intended to confer upon any other Person except the Parties any rights or remedies hereunder; and (b) there are no other third-party beneficiaries of this Agreement and this Agreement shall not provide any other
      Third Party with any remedy, claim, Liability, reimbursement, claim of action or other right in excess of those existing without reference to this Agreement.

  

  

      Section 7.06          Notices.  All notices, requests, claims, demands or other
      communications under this Agreement shall be in writing and shall be given or made (and shall be deemed to have been duly given or made upon receipt) by delivery in person, , by electronic mail (for which a confirmation email is obtained), or sent by
      overnight courier (providing proof of delivery) to the respective Parties at the following addresses (or at such other address for a Party as shall be specified in a notice given in accordance with this Section):

  
    14

    
      

  

  
    	 	
            If to KAR, to:

          
	 	 	 
	 	 	
            KAR Auction Services, Inc.

          
	 	 	
            13085 Hamilton Crossing Boulevard

          
	 	 	
            Carmel, Indiana 46032

          
	 	 	
            Email:

          	
            
              
                 becca.polak@karauctionservices.com

                  

              

            

          
	 	 	
            Attention:

          	  Chief Legal Officer 

          
	 	 	 	 
	 	
            If to SpinCo, to:

          
	 	 	 
	 	 	
            Insurance Auto Auctions, Inc.

          
	 	 	
            Two Westbrook Corporate Center, Suite 500

          
	 	 	
            Westchester, Illinois 60154

          
	 	 	
            Email:

          	 jkett@iaai.com 

          
	 	 	 	 skerley@iaai.com 

          
	 	 	
            Attention:

          	 John Kett 

          
	 	 	 	 Sidney Peryar

             

  

  

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

  

  

      Section 7.07          Severability.  If any provision of this Agreement or the
      application thereof to any Person or circumstance is determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof, or the application of such provision to Persons or circumstances or in
      jurisdictions other than those as to which it has been held invalid or unenforceable, shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby. Upon such determination, the Parties shall negotiate in good
      faith in an effort to agree upon such a suitable and equitable provision to effect the original intent of the Parties.

  

  

      Section 7.08          Force Majeure.  No Party shall be deemed in default of
      this Agreement for any delay or failure to fulfill any obligation (other than a payment obligation) hereunder so long as and to the extent to which any delay or failure in the fulfillment of such obligations is prevented, frustrated, hindered or
      delayed as a consequence of circumstances of Force Majeure. In the event of any such excused delay, the time for performance (other than a payment obligation hereunder) shall be extended for a period equal to the time lost by reason of the delay
      unless this Agreement has previously been terminated under Article IV or under this Section 7.08. A Party claiming the benefit of this provision shall, as soon as reasonably practicable after the occurrence of any such event, (a) provide written notice to the other Party of the nature and extent of any such
      Force Majeure condition; and (b) use commercially reasonable efforts to remove any such causes and resume performance under this Agreement as soon as reasonably practicable (and in no event later than the date that the affected Party resumes
      providing analogous services to, or otherwise resumes analogous performance under any other agreement for, itself, its Affiliates or any Third Party) unless this Agreement has previously been terminated under Article IV or this Section 7.08.

  
    15

    
      

  

      Section 7.09          Headings.  The Article, Section and Paragraph headings
      contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

  

  

      Section 7.10          Survival of Covenants.  Except as expressly set forth in
      this Agreement, the covenants, representations and warranties contained in this Agreement, and Liability for the breach of any obligations contained herein, shall survive the Effective Date and shall remain in full force and effect thereafter.

  

  

      Section 7.11          Waivers of Default. Waiver by a Party of any default by
      the other Party of any provision of this Agreement shall not be deemed a waiver by the waiving Party of any subsequent or other default, nor shall it prejudice the rights of the other Party. No failure or delay by a Party in exercising any right,
      power or privilege under this Agreement shall operate as a waiver thereof, nor shall a single or partial exercise thereof prejudice any other or further exercise thereof or the exercise of any other right, power or privilege.

  

  

      Section 7.12          Dispute Resolution.  In the event of any controversy,
      dispute or claim (a “Dispute”) arising out of or relating to any Party’s rights or obligations under this Agreement (whether arising in contract, tort or
      otherwise), calculation or allocation of the costs of any Service or otherwise arising out of or relating in any way to this Agreement (including the interpretation or validity of this Agreement), such Dispute shall be resolved in accordance with the
      dispute resolution process referred to in Article VII of the Separation and Distribution Agreement.

  

  

      Section 7.13          Amendments. No provisions of this Agreement or any
      Ancillary Agreement shall be deemed waived, amended, supplemented or modified by a Party, unless such waiver, amendment, supplement or modification is in writing and signed by the authorized representative of the Party against whom it is sought to
      enforce such waiver, amendment, supplement or modification.

  

  

      Section 7.14          Interpretation.  In this Agreement, (a) words in the
      singular shall be deemed to include the plural and vice versa and words of one gender shall be deemed to include the other genders as the context requires; (b) the terms “hereof,” “herein,” and “herewith” and words of similar import shall, unless
      otherwise stated, be construed to refer to this Agreement as a whole (including all of the Schedules, Annexes and Exhibits hereto) and not to any particular provision of this Agreement; (c) Article, Section, Exhibit, Annex and Schedule references are
      to the Articles, Sections, Exhibits, Annexes and Schedules to this Agreement unless otherwise specified; (d) unless otherwise stated, all references to any agreement shall be deemed to include the exhibits, schedules and annexes to such agreement;
      (e) the word “including” and words of similar import when used in this Agreement shall mean “including, without limitation,” unless otherwise specified; (f) the word “or” shall not be exclusive; (g) unless otherwise specified in a particular case,
      the word “days” refers to calendar days; (h) references to “business day” shall mean any day other than a Saturday, a Sunday or a day on which banking institutions are generally authorized or required by law to close in the United States or New York,
      New York; (i) references herein to this Agreement or any other agreement contemplated herein shall be deemed to refer to this Agreement or such other agreement as of the date on which it is executed and as it may be amended, modified or supplemented
      thereafter, unless otherwise specified; and (j) unless expressly stated to the contrary in this Agreement, all references to “the date hereof,” “the date of this Agreement,” “hereby” and “hereupon” and words of similar import shall all be references
      to [●], 2019.

  
    16

    
      

  

      Section 7.15          Mutual Drafting.  This Agreement shall be deemed to be
      the joint work product of the Parties and any rule of construction that a document shall be interpreted or construed against a drafter of such document shall not be applicable to this Agreement.

  

  

  [Signature page follows]

  
    17

    
      

  

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

  

  

  	
                 

          

        	
          KAR AUCTION SERVICES, INC.

        
	
                

          

        	
          

                       

        	
                    

          

        
	
               

          

        	
          By:

        	
                 

          

        
	
                 

          

        	
                  

          

        	
          Name:

        
	
                 

          

        	
                  

          

        	
          Title:

        
	
                   

          

        	
                   

          

        	
                   

          

        
	
                  

          

        	
          IAA SPINCO INC.

        
	
                   

          

        	
                  

          

        	
                  

          

        
	
                  

          

        	
          By:

        	
                   

          

        
	
                   

          

        	
                  

          

        	
          Name:

        
	
                 

          

        	
                   

          

        	
          Title:

        
	
                 

          

        	
                   

          

        	
                    

          

        

  

  

  
    [Signature Page to Transition Services Agreement]

  

  
    
      

  

  Schedule 1

  

  

  Transition Services

  See attached

  
    
      

  

  Schedule 2

  

  

  Charges

  

  

  [TO COME]Exhibit 10.2

  

  

  TAX MATTERS AGREEMENT

  

  

  by and between

  

  

  KAR AUCTION SERVICES, INC.

  

  

  and

  

  

  IAA SPINCO INC.

  

  

  Dated as of [●], 2019

      

  

  
    
      

  

  

  

  

  

  TABLE OF CONTENTS

  

  

  ARTICLE I

  

  

  DEFINITIONS

   

        

  
    	
            Section 1.1

          	
            General

          	
            2

          
	 	 	 
	
            ARTICLE II

          
	 	 	 
	
            CERTAIN ALLOCATIONS

          
	 	 	 
	
            Section 2.1

          	
            General Rule

          	
            9

          
	
            Section 2.2

          	
            Federal Income Tax Relating to Joint Returns

          	
            10

          
	
            Section 2.3

          	
            Federal Income Tax Relating to Separate Returns

          	
            10

          
	
            Section 2.4

          	
            State Tax Relating to Joint Returns

          	
            10

          
	
            Section 2.5

          	
            State Tax Relating to Separate Returns

          	
            11

          
	
            Section 2.6

          	
            Non-U.S. Tax Relating to Joint Returns

          	
            11

          
	
            Section 2.7

          	
            Non-U.S. Tax Relating to Separate Returns

          	
            11

          
	
            Section 2.8

          	
            Non-Income Taxes

          	
            11

          
	
            Section 2.9

          	
            Internal Restructuring Taxes.

          	
            12

          
	
            Section 2.10

          	
            Separation Taxes

          	
            12

          
	
            Section 2.11

          	
            Determination of Tax Attributable to a Particular Entity

          	
            12

          
	
            Section 2.12

          	
            Allocation of Employment Taxes and Equity Award Deductions

          	
            13

          
	
            Section 2.13

          	
            Estimated Taxes.

          	
            13

          
	
            Section 2.14

          	
            Transaction-Related Losses

          	
            13

          
	
            Section 2.15

          	
            Straddle Periods

          	
            13

          
	
            Section 2.16

          	
            Tax Refunds

          	
            13

          
	
            Section 2.17

          	
            Prior Agreements

          	
            14

          
	 	 	 
	
            ARTICLE III

          
	 	 	 
	
            PREPARATION AND FILING OF TAX RETURNS

          
	 	 	 
	
            Section 3.1

          	
            KAR’ Responsibility

          	
            14

          
	
            Section 3.2

          	
            Spinco’s Responsibility

          	
            14

          
	
            Section 3.3

          	
            Right To Review Tax Returns

          	
            14

          
	
            Section 3.4

          	
            Cooperation

          	
            15

          
	
            Section 3.5

          	
            Tax Reporting Practices

          	
            15

          
	
            Section 3.6

          	
            Reporting of Transactions

          	
            15

          
	
            Section 3.7

          	
            Payment of Taxes

          	
            17

          
	
            Section 3.8

          	
            Amended Returns and Carrybacks

          	
            18

          
	
            Section 3.9

          	
            Tax Benefits

          	
            18

          
	
            Section 3.10

          	
            Tax Attributes

          	
            18

          

    

    

    
      
        

    

    
    

    

    	 	 	 
	
            ARTICLE IV

          
	 	 	 
	
            TAX-FREE STATUS OF THE DISTRIBUTION

          
	 	 	 
	
            Section 4.1

          	
            Representations and Warranties

          	
            19

          
	
            Section 4.2

          	
            Restrictions on KAR

          	
            20

          
	
            Section 4.3

          	
            Restrictions on Spinco

          	
            20

          
	 	 	 
	
            ARTICLE V

          
	 	 	 
	
            INDEMNITY OBLIGATIONS

          
	 	 	 
	
            Section 5.1

          	
            Indemnity Obligations

          	
            22

          
	
            Section 5.2

          	
            Indemnification Payments

          	
            23

          
	
            Section 5.3

          	
            Payment Mechanics

          	
            23

          
	
            Section 5.4

          	
            Treatment of Payments

          	
            24

          
	 	 	 
	
            ARTICLE VI

          
	 	 	 
	
            TAX CONTESTS

          
	 	 	 
	
            Section 6.1

          	
            Notice

          	
            24

          
	
            Section 6.2

          	
            Separate Returns

          	
            24

          
	
            Section 6.3

          	
            Joint Returns

          	
            24

          
	
            Section 6.4

          	
            Other Tax Contests

          	
            25

          
	
            Section 6.5

          	
            Obligation of Continued Notice

          	
            25

          
	
            Section 6.6

          	
            Settlement Rights

          	
            25

          
	
            Section 6.7

          	
            Tax Contest Costs and Expenses.

          	
            26

          
	 	 	 
	
            ARTICLE VII

          
	 	 	 
	
            COOPERATION

          
	 	 	 
	
            Section 7.1

          	
            General

          	
            26

          
	
            Section 7.2

          	
            Consistent Treatment

          	
            27

          
	 	 	 
	
            ARTICLE VIII

          
	 	 	 
	
            RETENTION OF RECORDS; ACCESS

          
	 	 	 
	
            Section 8.1

          	
            Retention of Records

          	
            27

          
	
            Section 8.2

          	
            Access to Tax Records

          	
            27

          
	 	 	 
	
            ARTICLE IX

          
	 	 	 
	
            DISPUTE RESOLUTION

          
	 	 	 
	
            Section 9.1

          	
            Dispute Resolution Mechanics

          	
            28

          
	 	 	 

    

    

    
      ii

      
        

    

    

    

    	
            ARTICLE X

          
	 	 	 
	
            MISCELLANEOUS PROVISIONS

          
	 	 	 
	
            Section 10.1

          	
            Conflicting Agreements

          	
            28

          
	
            Section 10.2

          	
            Termination

          	
            28

          
	
            Section 10.3

          	
            Interest on Late Payments

          	
            28

          
	
            Section 10.4

          	
            Specific Performance

          	
            28

          
	
            Section 10.5

          	
            Successors

          	
            29

          
	
            Section 10.6

          	
            Application to Present and Future Subsidiaries

          	
            29

          
	
            Section 10.7

          	
            Assignability

          	
            29

          
	
            Section 10.8

          	
            No Fiduciary Relationship

          	
            29

          
	
            Section 10.9

          	
            No Duplication; No Double Recovery.

          	
            29

          
	
            Section 10.10

          	
            Further Assurances

          	
            29

          
	
            Section 10.11

          	
            Survival

          	
            30

          
	
            Section 10.12

          	
            Notices

          	
            30

          
	
            Section 10.13

          	
            Effective Date

          	
            31

          
	 	 	 
	  EXHIBITS 
	 
	Exhibit A 

          	Separation Plan 

          	 

  

  

  

  

  

            

    

  

  

  

    

    

  

  
    iii

    
      

  

  
  TAX MATTERS AGREEMENT

  

  

  This TAX MATTERS AGREEMENT (this “Agreement”), is entered into as of
      [_____], between KAR Auction Services, Inc. (“KAR”), a Delaware corporation, and IAA Spinco Inc. (“Spinco” and, together with KAR, the “Parties”), a Delaware corporation and a wholly owned subsidiary of KAR.  Capitalized terms used in this
      Agreement and not otherwise defined herein shall have the meanings ascribed to such terms in the Separation and Distribution Agreement, dated as of the date hereof, between the Parties (the “Separation and Distribution Agreement”).

  

  

  R E C I T A L S

  

  

  WHEREAS, the board of directors of KAR (the “Board”) has determined that
      it is in the best interests of KAR and its stockholders to separate KAR into two separate, publicly traded companies, one for each of (i) the KAR Business, which shall be owned and conducted, directly or indirectly, by KAR and its Subsidiaries and
      (ii) the Spinco Business, which shall be owned and conducted, directly or indirectly, by Spinco and its Subsidiaries;

  

  

  WHEREAS, in order to effect the Separation , the Board has determined that it is appropriate, desirable and in
      the best interests of KAR and its stockholders for KAR to undertake the Internal Restructuring and, in connection therewith, effect the Spinco Contribution which, in exchange therefor, Spinco shall: (i) issue to KAR the Spinco Shares and (ii)
      distribute to KAR the Cash Distribution;

  

  

  WHEREAS, following the completion of the Internal Restructuring and the Separation , KAR shall distribute all of
      the issued and outstanding Spinco Shares to holders of the KAR Shares on the Record Date, on a pro rata basis (the “Distribution” and, together with
      the Internal Restructuring and the Separation , the “Transactions”);

  

  

  WHEREAS, Spinco has been incorporated for these purposes and has not engaged in activities except those incidental to
      its formation and in preparation for the Transactions;

  

  

  WHEREAS, as of the date hereof, KAR is the common parent of an affiliated group of domestic corporations that has
      elected to file consolidated U.S. federal income Tax Returns and, as a result of the Distribution, neither Spinco nor any of its Affiliates will be a member of such group after the close of the Distribution Date;

  

  

  WHEREAS, for U.S. federal income tax purposes, it is the intention of the Parties that the Separation and the
      Distribution, taken together, will qualify as a transaction that will qualify under Section 355 and Section 368(a)(1)(D) of the Internal Revenue Code of 1986, as amended (the “Code”);

  

  

   WHEREAS, KAR has received the IRS Ruling and the Canadian Tax Ruling; and

  

  

  WHEREAS, the Parties desire to (a) provide for the payment of Tax liabilities and entitlement to refunds thereof,
      allocate responsibility for, and cooperation in, the filing of Tax Returns, and provide for certain other matters relating to Taxes and (b) set forth certain covenants and indemnities relating to the preservation of the Intended Tax Treatment of the
      Transactions.

  
    1

    
      

  

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

  

  

  ARTICLE I

  

  

  DEFINITIONS

  

  

          Section 1.1  General. As used in this Agreement, the
      following terms shall have the following meanings:

  

  

  “Adjustment” shall
      mean an adjustment of any item of income, gain, loss, deduction, credit or any other item affecting Taxes of a taxpayer pursuant to a Final Determination.

  

  

  “Affiliate” shall
      mean, with respect to a Person, any other Person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, the specified Person. For this purpose, “control” of a Person means the
      possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through ownership of voting securities, by contract or otherwise.

  

  

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

  

  

  “Canadian Spinco”
      shall mean 1206397 B.C. Unlimited Liability Company, an unlimited liability company incorporated under the laws of the Province of British Columbia.

  

  

  “Canadian Tax Ruling”
      shall mean an advance income tax ruling from the Canada Revenue Agency addressing the tax Canadian tax consequences of certain aspects of the Transactions.

  

  

  “Canadian Tax Ruling Request”
      shall mean any letter filed by KAR with the Canada Revenue Agency requesting an advance income tax ruling regarding certain Canadian tax consequences of the Transactions and any amendment or supplement to such Canadian Tax Ruling Request letter.

  

  

  “Controlling Party”
      shall mean, with respect to a Tax Contest, the Party entitled to control such Tax Contest pursuant to Section 6.2, Section 6.3 or Section 6.4 of this Agreement.

  

  

  “Code” shall mean
      the Internal Revenue Code of 1986, as amended.

  

  

  “Dispute” shall have
      the meaning set forth in Section 9.1 of this Agreement.

  

  

  “Dispute Date” shall
      have the meaning set forth in Section 9.1 of this Agreement.

  

  

  “Distribution” shall
      have the meaning set forth in the recitals.

  
    2

    
      

  

  

  

  

  

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

  

  

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

  

  

  “Employment Taxes”
      shall mean those Liabilities (as defined in the Separation and Distribution Agreement) for Taxes which are allocable pursuant to the provisions of the Employee Matters Agreement.

  

  

  “Equity Award Deduction”
      shall have the meaning set forth in the Employee Matters Agreement.

  

  

  “Federal Income Tax”
      shall mean any Tax imposed by Subtitle A of the Code other than an Employment Tax.

  

  

  “Final Determination”
      shall mean the final resolution of liability for any Tax for any taxable period, by or as a result of (a) a final decision, judgment, decree or other order by any court of competent jurisdiction that can no longer be appealed, (b) a final settlement
      with the IRS, a closing agreement or accepted offer in compromise under Sections 7121 or 7122 of the Code, or a comparable agreement under the Laws of other jurisdictions, which resolves the entire Tax liability for any taxable period, (c) any
      allowance of a refund or credit in respect of an overpayment of Tax, but only after the expiration of all periods during which such refund or credit may be recovered by the jurisdiction imposing the Tax, or (d) any other final resolution, including
      by reason of the expiration of the applicable statute of limitations or the execution of a pre-filing agreement with the IRS or other Taxing Authority.

  

  

  “Group” shall mean
      either the Spinco Group or the KAR Group, as the context requires.

  

  

  “Income Tax” shall
      mean any federal, state, local or Non-U.S. Tax determined by reference to income, gains, net worth, gross receipts, or any Taxes imposed in lieu of such a Tax.

  

  

  “Incremental Section 336(e) Tax”
      shall mean the amount of Taxes, if any, incurred by KAR as a result of making a Section 336(e) Election in excess of the amount of Taxes that would have been incurred by KAR had no such Section 336(e) Election been made and the Distribution had been
      treated as a taxable stock distribution for U.S. federal income tax purposes.

  

  

  “Indemnifying Party”
      shall have the meaning set forth in Section 5.2 of this Agreement.

  

  

  “Indemnitee” shall
      have the meaning set forth in Section 5.2 of this Agreement.

  

  

  “Intended Tax Treatment”
      shall mean the qualification of the Transactions for the intended tax treatment, including as set forth in the IRS Ruling, Canadian Tax Ruling, any Tax Opinion or the Separation Plan.

  
    3

    
      

  

  

  

  

  

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

  

  

  “Internal Restructuring Taxes”
      shall mean those Taxes triggered by, or arising or otherwise incurred as a result of, the Internal Restructuring, except for (i) any Tax resulting from a breach by any Party of any covenant in this Agreement, and (ii) any Tax attributable to any
      action set out in Section 4.2 or Section 4.3.

  

  

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

  

  

  “IRS Ruling” shall
      mean a private letter ruling from the IRS addressing the tax consequences of certain aspects of the Transactions.

  

  

  “IRS Ruling Request”
      shall mean any letter filed by KAR with the IRS requesting a ruling regarding certain tax consequences of the Transactions and any amendment or supplement to such IRS Ruling Request letter.

  

  

  “Joint Return” shall
      mean (i) any Tax Return that actually includes, by election or otherwise, one or more members of the KAR Group together with one or more members of the Spinco Group or (ii) any Tax Return that includes Tax Items attributable to both the KAR Business
      and the Spinco Business.

  

  

  “KAR” shall have the
      meaning set forth in the preamble hereto.

  

  

  “KAR Affiliated Group”
      shall mean an affiliated group (as that term is defined in Section 1504 of the Code and the Treasury Regulations thereunder) of which KAR is the common parent.

  

  

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

  

  

  “KAR Federal Consolidated
          Income Tax Return” shall mean any United States federal consolidated income Tax Return for a KAR Affiliated Group.

  

  

  “KAR Group” shall
      mean KAR and each Person that is a Subsidiary of KAR (other than Spinco and any other member of the Spinco Group).

  

  

  “KAR Separate Return”
      shall mean any Tax Return of or including any member of the KAR Group (including any consolidated, combined or unitary return) that does not include any member of the Spinco Group.

  

  

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

  

  

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

  
    4

    
      

  

  

  

  “Non-Controlling Party”
      shall mean, with respect to a Tax Contest, the Party that is not entitled to control such Tax Contest pursuant to Section 6.2,  Section 6.3 or Section 6.4 of this Agreement.

  

  

  “Non-Income Tax”
      shall mean any Tax that is not an Income Tax.

  

  

  “Non-U.S. Tax” shall
      mean any Tax imposed by any foreign country or any possession of the United States, or by any political subdivision of any foreign country or United States possession.

  

  

  “Parties” shall mean
      the parties to this Agreement.

  

  

  “Past Practices”
      shall have the meaning set forth in Section 3.5 of this Agreement.

  

  

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

  

  

  “Post-Distribution Period”
      shall mean any taxable period (or portion thereof) beginning after the Distribution Date, including for the avoidance of doubt, the portion of any Straddle Period beginning after the Distribution Date.

  

  

  “Pre-Distribution Period”
      shall mean any taxable period (or portion thereof) ending on or before the Distribution Date, including for the avoidance of doubt, the portion of any Straddle Period ending at the end of the day on the Distribution Date.

  

  

  “Preparing Party”
      shall mean, with respect to a Tax Return, the Party that is required to prepare and file any such Tax Return pursuant to Section 3.1 or Section 3.2 of this Agreement, as applicable.

  

  

  “Proposed Acquisition
          Transaction” shall mean a transaction or series of transactions (or any agreement, understanding or arrangement, within the meaning of Section 355(e) of the Code and Treasury Regulation Section 1.355-7, or any other Treasury
      Regulations promulgated thereunder, to enter into a transaction or series of transactions), whether such transaction is supported by Spinco management or shareholders, is a hostile acquisition, or otherwise, as a result of which Spinco (or any
      successor thereto) would merge or consolidate with any other Person or as a result of which one or more Persons would (directly or indirectly) acquire, or have the right to acquire, from Spinco (or any successor thereto) and/or one or more holders of
      Spinco Shares, respectively, any amount of stock of Spinco, that would, when combined with any other direct or indirect changes in ownership of the stock of Spinco pertinent for purposes of Section 355(e) of the Code and the Treasury Regulations
      promulgated thereunder, comprise forty (40) percent or more of (i) the value of all outstanding shares of Spinco as of the date of such transaction, or in the case of a series of transactions, the date of the last transaction of such series, or (ii)
      the total combined voting power of all outstanding shares of voting stock of Spinco as of the date of the such transaction, or in the case of a series of transactions, the date of the last transaction of such series.  Notwithstanding the foregoing, a
      Proposed Acquisition Transaction shall not include (i) the adoption by Spinco of a shareholder rights plan or (ii) issuances by Spinco that satisfy Safe Harbor VIII (relating to acquisitions in connection with a person’s performance of services) or
      Safe Harbor IX (relating to acquisitions by a retirement plan of an employer) of Treasury Regulation Section 1.355-7(d).  For purposes of determining whether a transaction constitutes an indirect acquisition, (i) any recapitalization or other
      transaction resulting in a shift of voting power shall be treated as an indirect acquisition of shares of stock by the shareholders experiencing an increase in voting power as a result of such recapitalization or other transaction and (ii) any
      redemption of shares of stock shall be treated as an indirect acquisition of shares of stock by the non-exchanging shareholders. This definition and the application thereof is intended to monitor compliance with Section 355(e) of the Code and the
      Treasury Regulations promulgated thereunder and shall be interpreted accordingly. Any clarification of, or change in, the statute or Treasury Regulations promulgated under Section 355(e) of the Code shall be incorporated in this definition and its
      interpretation.

  
    5

    
      

  

  

  

  “Protective Section 336(e)
          Election” shall have the meaning set forth in Section 3.6(b) of this Agreement.

  

  

  “Reasonable Basis”
      shall mean reasonable basis within the meaning of Section 6662(d)(2)(B)(ii)(II) of the Code and the Treasury Regulations promulgated thereunder (or such other level of confidence required by the Code at that time to avoid the imposition of
      penalties).

  

  

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

  

  

  “Refund” shall mean
      any refund, reimbursement, offset, credit, or other similar benefit in respect of Taxes (including any overpayment of Taxes that can be refunded or, alternatively, applied against other Taxes payable), including any interest paid on or with respect
      to such refund of Taxes; provided, however, that
      the amount of any refund of Taxes shall be net of any Taxes imposed by any Taxing Authority on, related to, or attributable to, the receipt of or accrual of such refund, including any Taxes imposed by way of withholding or offset.

  

  

  “Restricted Period”
      shall mean the period which begins with the Distribution Date and ends two (2) years thereafter.

  

  

  “Reviewing Party”
      shall mean, with respect to a Tax Return, the Party that is not the Preparing Party.

  

  

  “Section 336(e) Allocation
          Statement” shall have the meaning set forth in Section 3.6(b) of this Agreement.

  

  

  “Section 336(e) Benefit Amount”
      shall have the meaning set forth in Section 3.6(b) of this Agreement.

  

  

  “Section 336(e) Tax Basis
          Increase” shall have the meaning set forth in Section 3.6(b) of this Agreement.

  

  

  “Separate Return”
      shall mean a KAR Separate Return or an Spinco Separate Return, as the case may be.

   

    

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

     

  

  

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

  
    6

    
      

  

  

  

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

  

  

  “Separation Taxes”
      shall mean those Taxes triggered by, or arising or otherwise incurred as a result of, the Transactions, except for (i) any Tax resulting from a breach by any Party of any covenant in this Agreement, (ii) any Internal Restructuring Taxes and (iii) any
      Tax attributable to any action set out in Section 4.2 or Section

          4.3.

  

  

  “Spinco Actual Estimated Tax
          Liability” shall mean the actual amount of Taxes shown as due and payable after the Distribution, as determined by Past Practices, with respect to which any Spinco Estimated Tax Amount was paid by Spinco to KAR.

  

  

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

  

  

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

  

  

  “Spinco’s Direct Subsidiary”
      shall mean IAA Holdings, Inc., a Delaware corporation.

  

  

  “Spinco Estimated Tax Amount”
      shall mean the amount of estimated Taxes paid by Spinco to KAR with respect to Taxes not yet due and payable prior to the Distribution that would be included on any (i) U.S. consolidated Federal Income Tax Return of KAR or (ii) unitary, combined or
      other consolidated State Tax Return of KAR, in each case, that are attributable to the Spinco Business or any member of the Spinco Group for a Pre-Distribution Period, as determined by Past Practices.

  

  

  “Spinco Group” shall
      mean Spinco and each Person that will be a Subsidiary of Spinco as of immediately after the Effective Time.

  

  

  “Spinco Separate Return”
      shall mean any Tax Return of or including any member of the Spinco Group (including any consolidated, combined or unitary return) that does not include any member of the KAR Group.

  

  

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

  

  

  “State Tax” means
      any Tax imposed by any State of the United States or by any political subdivision of any such State, and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing.

  

  

  “Straddle Period”
      shall mean any taxable year or other taxable period that begins on or before the Distribution Date and ends after the Distribution Date.

  

  
     

  

  
    7

    
      

  

  

  

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

  

  

  “Tax” or “Taxes” shall mean (i) all taxes, charges, fees, duties, levies, imposts, rates or other assessments or governmental charges of any kind imposed by any U.S.
      federal, state, local or non-U.S. Taxing Authority, including, without limitation, income, gross receipts, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental, custom duties, property, sales, use, license,
      capital stock, transfer, franchise, registration, payroll, withholding, social security, unemployment, disability, value added, alternative or add-on minimum or other taxes, whether disputed or not, and including any interest, penalties, charges or
      additions attributable thereto, (ii) liability for the payment of any amount of the type described in clause (i) above arising as a result of being (or having been) a member of any group or being (or having been) included or required to be included
      in any Tax Return related thereto, and (iii) liability for the payment of any amount of the type described in clauses (i) or (ii) above as a result of any express or implied obligation to indemnify or otherwise assume or succeed to the liability of
      any other Person.

  

  

  “Tax Attribute”
      shall mean net operating losses; capital losses; research and development deductions, credits and carryovers; general business credits and carryovers; investment tax credit carryovers; earnings and profits; foreign tax credit carryovers; overall
      foreign losses; previously taxed income; separate limitation losses; and any other losses, deductions, credits or other comparable items that could affect a Tax liability for a past or future taxable period.

  

  

  “Taxing Authority”
      shall mean any Taxing Authority or any subdivision, agency, commission or entity thereof or any quasi-governmental or private body having jurisdiction over the assessment, determination, collection or imposition of any Tax (including the IRS).

  

  

  “Tax Certificates”
      shall mean any certificates of officers of KAR and Spinco, provided to PricewaterhouseCoopers, Skadden, Arps, Slate, Meagher & Flom LLP, or any other law or accounting firm in connection with any Tax Opinion, the IRS Ruling or the Canadian Tax
      Ruling.

  

  

  “Tax Contest” shall
      have the meaning set forth in Section 6.1 of this Agreement.

  

  

  “Tax Expert” shall
      mean independent Tax counsel of recognized national standing or a nationally recognized independent public accounting firm, in either case, with experience in the tax area(s) involved or at issue.

  

  

  “Tax Item” shall
      mean any item of income, gain, loss, deduction, or credit.

  

  

  “Tax Law” shall mean
      the law of any Taxing Authority or political subdivision thereof relating to any Tax.

  

  

  “Tax Materials”
      shall have the meaning set forth in Section 4.1(a) of this Agreement.

  
    8

    
      

  

  

  

  

  

  “Tax Opinion” shall
      mean any written opinion of PricewaterhouseCoopers, Skadden, Arps, Slate, Meagher & Flom LLP or any other law or accounting firm, regarding certain tax consequences of certain transactions executed as part of the Transactions.

  

  

  “Tax Records” shall
      have the meaning set forth in Section 8.1 of this Agreement.

  

  

  “Tax-Related Losses”
      shall mean (i) all Taxes (including interest and penalties thereon) imposed pursuant to any settlement, Final Determination, judgment or otherwise, (ii) all accounting, legal and other professional fees, and court costs incurred in connection with
      Taxes or Tax Contests, as well as any other out-of-pocket costs incurred in connection with Taxes or Tax Contests; and (iii) all costs, expenses and damages associated with stockholder litigation or controversies and any amount paid by KAR (or any of
      its Affiliates) or Spinco (or any of its Affiliates) in respect of the liability of shareholders, whether paid to shareholders or to the IRS or any other Taxing Authority, in each case, resulting from the failure of any transaction to have the
      Intended Tax Treatment.

  

  

  “Tax Return” shall
      mean any return, report, certificate, election, form or similar statement or document (including any related supporting information or schedule attached thereto and any information return, amended tax return, claim for refund or declaration of
      estimated tax) supplied to or filed with, or required to be supplied to or filed with, a Taxing Authority, or any bill for or notice related to ad valorem or other similar Taxes received from a Taxing Authority, in each case, in connection with the
      determination, assessment or collection of any Tax or the administration of any laws, regulations or administrative requirements relating to any Tax.

  

  

  “Transactions” shall
      have the meaning set forth in the recitals.

  

  

  “Treasury Regulations”
      shall mean the regulations promulgated from time to time under the Code as in effect for the relevant tax period.

  

  

  “Unqualified Tax Opinion”
      shall mean a “will” opinion, without substantive qualifications, of a nationally recognized law or accounting firm, to the effect that a transaction will not affect the Intended Tax Treatment of the Transactions.  Any such opinion must assume that
      the Transactions would have qualified for the Intended Tax Treatment if the transaction in question did not occur.

  

  

  ARTICLE II

  

  

  CERTAIN ALLOCATIONS

  

  

          Section 2.1 General Rule.

  

  

  (a)          Spinco Liability. Spinco shall be liable for, and shall indemnify and hold harmless the KAR Group from and against any liability for, Taxes which are
      allocated to Spinco under this Agreement.

  
    9

    
      

  

  

  

  (b)          KAR Liability.  KAR shall be liable for, and shall indemnify and hold harmless the Spinco Group from and against any liability for, Taxes which are
      allocated to KAR under this Agreement.

  

  

          Section 2.3  Federal Income Tax Relating to Joint Returns.

  

  

  (a)          Spinco shall
      pay and be responsible for any and all Federal Income Taxes due with respect to or required to be reported on any Joint Return (including any increase in such Tax as a result of a Final Determination) which Taxes are attributable to the Spinco
      Business for all Pre-Distribution Periods.

  

  

  (b)          KAR shall pay
      and be responsible for any and all Federal Income Taxes due with respect to or required to be reported on any Joint Return (including any increase in such Tax as a result of a Final Determination) other than those Federal Income Taxes described in Section 2.2(a) for all Pre-Distribution Periods.

  

  

          Section 2.3  Federal Income Tax Relating to Separate Returns.

  

  

  (a)          Spinco shall
      pay and be responsible for any and all Federal Income Taxes due with respect to or required to be reported on any Spinco Separate Return (including any increase in such Tax as a result of a Final Determination) for all Tax Periods.

  

  

  (b)          KAR shall pay
      and be responsible for any and all Federal Income Taxes due with respect to or required to be reported on any KAR Separate Return (including any increase in such Tax as a result of a Final Determination) for all Tax Periods.

   

        

          Section 2.4  State Tax Relating to Joint Returns.

  

  

  (a)          Spinco shall
      pay and be responsible for any and all State Taxes due with respect to or required to be reported on any Joint Return (including any increase in such Tax as a result of a Final Determination) which Taxes are attributable to the Spinco Business for
      all Pre-Distribution Periods.

  

  

  (b)          KAR shall pay
      and be responsible for any and all State Taxes due with respect to or required to be reported on any Joint Return (including any increase in such Tax as a result of a Final Determination) other than those State Taxes described in Section 2.4(a) for all Pre-Distribution Periods.

  

  

  (c)          Spinco shall
      pay and be responsible for any and all State Taxes due with respect to or required to be reported on any Joint Return (including any increase in such Tax as a result of a Final Determination) which Taxes are attributable to the Spinco Business for
      all Post-Distribution Periods.

  

  

  (d)          KAR shall pay
      and be responsible for any and all State Taxes due with respect to or required to be reported on any Joint Return (including any increase in such Tax as a result of a Final Determination) other than those State Taxes described in Section 2.4(c) for all Post-Distribution Periods.

  
    10

    
      

  

  

  

          Section 2.5  State Tax Relating to Separate Returns.

   

    

  (a)          Spinco shall
      pay and be responsible for any and all State Taxes due with respect to or required to be reported on any Spinco Separate Return (including any increase in such Tax as a result of a Final Determination) for all Tax Periods.

  

  

  (b)          KAR shall pay
      and be responsible for any and all State Taxes due with respect to or required to be reported on any KAR Separate Return (including any increase in such Tax as a result of a Final Determination) for all Tax Periods.

  

  

          Section 2.6  Non-U.S. Tax Relating to Joint Returns.

   

    

  (a)          Spinco shall
      pay and be responsible for any and all Non-U.S. Taxes due with respect to or required to be reported on any Joint Return (including any increase in such Tax as a result of a Final Determination) which Taxes are attributable to the Spinco Business for
      all Pre-Distribution Periods.

  

  

  (b)          KAR shall pay
      and be responsible for any and all Non-U.S. Taxes due with respect to or required to be reported on any Joint Return (including any increase in such Tax as a result of a Final Determination) other than those Non-U.S. Taxes described in Section 2.6(a) for all Pre-Distribution Periods.

  

  

  (c)          Spinco shall
      pay and be responsible for any and all Non-U.S. Taxes due with respect to or required to be reported on any Joint Return (including any increase in such Tax as a result of a Final Determination) which Taxes are attributable to Spinco Business for all
      Post-Distribution Periods.

  

  

  (d)          KAR shall pay
      and be responsible for any and all Non-U.S. Taxes due with respect to or required to be reported on any Joint Return (including any increase in such Tax as a result of a Final Determination) other than those Non-U.S. Taxes described in Section 2.6(c) for all Post-Distribution Periods.

  

  

          Section 2.7  Non-U.S. Tax Relating to Separate Returns.

   

    

  (a)          Spinco shall
      pay and be responsible for any and all Non-U.S. Taxes due with respect to or required to be reported on any Spinco Separate Return (including any increase in such Tax as a result of a Final Determination) for all Tax Periods.

  

  

  (b)          KAR shall pay
      and be responsible for any and all Non-U.S. Taxes due with respect to or required to be reported on any KAR Separate Return (including any increase in such Tax as a result of a Final Determination) for all Tax Periods.

  

  

          Section 2.8  Non-Income Taxes.

   

    

  To the extent not otherwise allocated under this Article II, Non-Income Taxes shall be allocated as follows:

  
    11

    
      

  

  (a)          Spinco shall
      pay and be responsible for any and all Non-Income Taxes that are attributable to the Spinco Business for all Pre-Distribution Periods.

  

  

  (b)          KAR shall pay
      and be responsible for any and all Non-Income Taxes other than those Non-Income Taxes described in Section 2.8(a) for all Pre-Distribution Periods.

  

  

  (c)          Spinco shall
      pay and be responsible for any and all Non-Income Taxes that are imposed on or attributable to the Spinco Business or Spinco Group for all Post-Distribution Periods.

  

  

  (d)          KAR shall pay
      and be responsible for any and all Non-Income Taxes that are imposed on or attributable to the KAR Business or KAR Group for all Post-Distribution Periods.

  

  

          Section 2.9  Internal Restructuring Taxes. Notwithstanding
      anything in this Agreement to the contrary, Spinco shall pay and be responsible for any and all Internal Restructuring Taxes.

  

  

          Section
        2.10     Separation Taxes. Notwithstanding anything in this Agreement to the contrary, each of KAR and Spinco shall pay and be responsible for fifty (50) percent of any and all Separation Taxes.

  

  

          Section 2.11
            Determination of Tax Attributable to a Particular Entity.

  

  

  (a)          For purposes
      of this Agreement, the amount of Taxes attributable to a particular entity shall be determined by KAR in a manner consistent with the Past Practices of the KAR Group with respect to the relevant Tax Return (including any past accounting methods,
      elections and conventions).  Without limiting the generality of the foregoing, the following principles shall apply for purposes of determining the amount of Tax attributable to a particular entity:

  

  

  
    (i)          including only Tax Items of the relevant entity that were included in the relevant Tax Return (i.e., as though the relevant entity prepared such Tax Return on a stand-alone basis);

    

    

    (ii)          except as provided in Section 2.11(a)(iv) hereof, using all elections, accounting methods and conventions used on the
        relevant Tax Return for such period;

    

    

    (iii)          applying the highest statutory marginal corporate income Tax rate in effect for such taxable period;

    

    

    (iv)          assuming that the relevant entity elects not to carry back any net operating losses.

    

    

  

  (b)          In the event a
      Non-Income Tax is attributable or traceable to a specific asset, then such Tax shall be attributable to the entity that owns the relevant asset.

  
    12

    
      

  

  

  

          Section
        2.12     Allocation of Employment Taxes and Equity Award Deductions. Liability for Employment Taxes and the allocation or apportionment of Equity Award Deductions shall be governed by the Employee Matters Agreement.

  

  

  Section 2.13     Estimated Taxes.

  

  

  (a)          With respect
      to any Spinco Estimated Tax Amount that Spinco has paid to KAR:

  

  

  (i)          If the Spinco Estimated Tax Amount is less than the Spinco Actual Estimated Tax Liability, Spinco shall pay KAR the amount of such excess pursuant to the terms of Section 3.7(b); and

  

  

  (ii)          If the Spinco Estimated Tax Amount is greater than the Spinco Actual Estimated Tax Liability, KAR shall pay to Spinco the amount of
      such excess no later than fifteen (15) Business Days after the due date (taking into account any applicable extensions) for the Tax Return with respect to which the
        Spinco Actual Estimated Tax Liability pertains.

  

  

          Section
        2.14     Transaction-Related Losses.

  

  

  Notwithstanding anything in this Agreement to the contrary:

  

  

  (a)          Spinco shall
      be responsible for (i) any and all Tax-Related Losses for which Spinco is responsible pursuant to Section 5.1(b) of this Agreement and (ii) any and
      all Tax-Related Losses arising out of, based upon, or relating or attributable to any breach of or inaccuracy in, or failure to perform, as applicable, any representation, covenant, or obligation of any member of the Spinco Group pursuant to this
      Agreement.

  

  

  (b)          KAR shall be
      responsible for (i) any and all Tax-Related Losses for which KAR is responsible pursuant to Section 5.1(a) of this Agreement and (ii) any and all
      Tax-Related Losses arising out of, based upon, or relating or attributable to any breach of or inaccuracy in, or failure to perform, as applicable, any representation, covenant, or obligation of any member of the KAR Group pursuant to this Agreement.

   

        

          Section 2.15     Straddle

          Periods. If the taxable year or other taxable period of KAR or any member of the KAR Group or Spinco or any member of the Spinco Group does not close on the Distribution Date, then the allocation or apportionment of any Tax Items
      attributable to the portion of the Straddle Period ending on, or beginning after, the Distribution Date shall be deemed equal to the amount that would have been so attributable if such taxable year had closed on the Distribution Date; provided that (i) exemptions, allowances, or deductions that are calculated on an annual or periodic basis, and (ii) property Taxes or other Non-Income
      Taxes that are calculated on an annual or periodic basis and not assessed with respect to a transaction or series of transactions, shall be allocated between such portions in proportion to the number of days in each such portion. Notwithstanding the
      foregoing, the allocation or apportionment of Equity Award Deductions shall be governed by the Employee Matters Agreement.

  

  

  Section 2.16     Tax Refunds.

  
    13

    
      

  

  

  

  (a)          KAR shall be
      entitled to all Refunds for Taxes for which KAR is responsible pursuant to this Agreement, and Spinco shall be entitled to all Refunds for Taxes for which Spinco is responsible pursuant to this Agreement.

  

  

  (b)          A Party
      receiving a Refund to which the other Party is entitled pursuant to this Agreement shall pay the amount to which such other Party is entitled within fifteen (15) Business Days after the receipt of the Refund.  For purposes of this Section 2.16(b), any Refund that arises as a result of an offset, credit, or other similar benefit in respect of Taxes other than a receipt of cash shall
      be deemed to be received on the earlier of (i) the date on which a Tax Return is filed claiming such offset, credit, or other similar benefit and (ii) the date on which payment of the Tax which would have otherwise been paid absent such offset,
      credit, or other similar benefit is due (determined without taking into account any applicable extensions).

  

  

  (c)          In the event
      that one Party receives a Refund to which the other Party is entitled, the amount of Refund the Party receiving such Refund shall be required to pay to the Party entitled to such Refund shall be net of any and all Tax-Related Losses or other costs
      and expenses incurred by the Party receiving the Refund (or any of such Party’s Affiliates) in connection with the receipt of such Refund or the payment of such Refund to the other Party.

  

  

          Section 2.17     Prior

          Agreements. Except as set forth in this Agreement and in consideration of the mutual indemnities and other obligations of this Agreement, any and all prior Tax sharing or allocation agreements or practices between any member of the KAR
      Group and any member of the Spinco Group shall be terminated with respect to the Spinco Group and the KAR Group as of the Distribution Date.  No member of either the Spinco Group or the KAR Group shall have any continuing rights or obligations under
      any such agreement.

  

  

  ARTICLE III

  

  

  PREPARATION AND FILING OF TAX
          RETURNS

  

  

          Section 3.1  KAR’ Responsibility.  KAR shall prepare and file
      when due (taking into account any applicable extensions), or shall cause to be prepared and filed, all Joint Returns and all KAR Separate Returns.

  

  

          Section 3.2  Spinco’s Responsibility.  Spinco shall prepare
      and file when due (taking into account any applicable extensions), or shall cause to be prepared and filed, all Tax Returns required to be filed by or with respect to members of the Spinco Group other than those Tax Returns which KAR is required to
      prepare and file under Section 3.1. The Tax Returns required to be prepared and filed by Spinco under this Section 3.2 shall include any Spinco Separate Returns.

  

  

          Section 3.3  Right To Review Tax Returns.  To the extent that the positions taken on any Tax Return (i) directly
        relate to matters for which the Reviewing Party may have an indemnification obligation to the Preparing Party, or that may give rise to a refund to which the Reviewing Party would be entitled under this Agreement or (ii) would reasonably be
        expected to materially adversely affect the Tax position of the Reviewing Party, the Preparing Party shall prepare the portions of such Tax Return that relates to the business of the Reviewing Party (the KAR Business or the Spinco Business, as the
        case may be), shall provide a draft of such portion of such Tax Return to the Reviewing Party for its review and comment at least ten (10) Business Days prior to the due date for such Tax Return (taking into account any applicable extensions). The
        Reviewing Party shall thereafter have five (5) Business Days to review such portion of such Tax Return and provide reasonable comments, if any, on such portion of such Tax Return to the Preparing Party, provided, however, that the Reviewing Party shall provide any reasonable comments it may have to the Preparing Party no later
      than two (2) Business Days prior to the due date for such Tax Return (taking into account any applicable extensions). The Preparing Party shall use commercially reasonable efforts to modify such portion of such Tax Return before filing such Tax
      Return to include the Reviewing Party’s reasonable comments, provided, however, that nothing herein shall prevent the Preparing Party from timely filing any such Tax Return and, provided,
      further, that KAR shall be entitled to resolve any issues arising out of the review of any such portion of a Tax Return in its sole discretion.

  
    14

    
      

  

  

  

          Section 3.4  Cooperation.  The Parties shall provide, and
      shall cause their Affiliates to provide, assistance and cooperation to one another in accordance with Article VII with respect to the preparation and
      filing of Tax Returns, including providing information required to be provided in Article VIII.

  

  

          Section 3.5  Tax Reporting Practices.  Except as provided in Section 3.6, with respect to any Tax Return
      for any taxable period that begins on or before the second anniversary of the Distribution Date with respect to which Spinco is the Preparing Party, such Tax Return shall be prepared in a manner (i) consistent with past practices, accounting methods,
      elections and conventions (“Past Practices”) used by KAR in preparing similar Tax Returns (unless there is no Reasonable Basis for the use of such Past
      Practices), and to the extent any items are not covered by Past Practices (or in the event that there is no Reasonable Basis for the use of such Past Practices), in accordance with reasonable Tax accounting practices selected by Spinco; and (ii)
      that, to the extent consistent with clause (i), minimizes the overall amount of Taxes due and payable on such Tax Return for all of the Parties by cooperating in making such elections or applications for group or other relief or allowances available
      in the taxing jurisdiction in which such Tax Return is filed. Spinco shall not take any action inconsistent with the assumptions (including items of income, gain, deduction, loss and credit) made in determining all estimated or advance payments of
      Taxes on or prior to the Distribution Date. In addition, Spinco shall not be permitted, and shall not permit any member of the Spinco Group, to make a change in any of its methods of accounting for Tax purposes until all applicable statutes of
      limitations for all Pre-Distribution Periods and Straddle Periods have expired, unless otherwise required by applicable Tax Law.

  

  

          Section 3.6  Reporting of Transactions.

   

    

  (a)          KAR and Spinco
      shall timely file any appropriate information and statements (including as required by Section 6045B of the Code and Section 1.355-5 of the Treasury Regulations and, to the extent applicable, Section 1.368-3 of the Treasury Regulations) to report
      each step of the Transactions in accordance with the Intended Tax Treatment.  The Tax treatment of any step in or portion of the Transactions shall be reported on each applicable Tax Return consistently with the treatment thereof in any Tax Opinion,
      taking into account the jurisdiction in which such Tax Returns are filed, unless there is no Reasonable Basis for such Tax treatment.  In the event that a Party shall determine that there is no Reasonable Basis for such Tax treatment, such Party
      shall notify the other Party no later than twenty (20) Business Days prior to filing the relevant Tax Return and the Parties shall attempt in good faith to agree on the manner in which the relevant portion of the Transactions shall be reported.

  
    15

    
      

  

  

  

  (b)          After the date
      hereof, the Parties shall cooperate in good faith to analyze the impact of a protective election under Section 336(e) of the Code and the Treasury Regulations issued thereunder for Spinco and each member of the Spinco Group with respect to the
      Distribution (a “Protective Section 336(e) Election”).  Solely in the event that KAR determines, in its sole discretion, to make a Protective Section
      336(e) Election:

  

  

  (i)          KAR and Spinco shall cooperate in making a timely protective election under Section 336(e) of the Code and Section 1.336-2(j) of the Treasury Regulations (and any similar provision of applicable state or local Tax Law) for
      each member of the Spinco Group that KAR determines for U.S. federal income tax purposes with respect to the Distribution in accordance with Section 1.336-2(h) of the Treasury Regulations and filing any statements, amending any Tax Returns or taking
      such other action reasonably necessary to carry out the Protective Section 336(e) Election. For the avoidance of doubt, it is intended that the Protective Section 336(e) Election, if made, will have no effect unless, pursuant to a Final
      Determination, the Distribution is treated as a “qualified stock disposition” within the meaning of Section 1.336-1(b)(6) of the Treasury Regulations.

  

  

  (ii)          In the event that a Protective Section 336(e) Election is made and becomes effective, KAR shall determine, in its sole discretion, the “Aggregate Deemed Asset Disposition Price” and the “Adjusted Grossed-Up Basis” (each as
      defined under applicable Treasury Regulations) and the allocation of such Aggregate Deemed Asset Disposition Price and Adjusted Grossed-Up Basis among the disposition date assets of Spinco and its Subsidiaries, each in accordance with the applicable
      provisions of Section 336(e) of the Code and applicable Treasury Regulations (the “Section 336(e) Allocation Statement”), and shall provide a copy of
      such Section 336(e) Allocation Statement to Spinco.  To the extent the Protective Section 336(e) Election is made and becomes effective, each Party agrees not to take any position (and to cause each of its Affiliates not to take any position) that is
      inconsistent with the Protective Section 336(e) Election, including the Section 336(e) Allocation Statement, on any Tax Return, in connection with any Tax Contest or for any other Tax purposes (in each case, excluding any position taken for financial
      accounting purposes), except as may be required by a Final Determination.

  

  

  (iii)          In the event that a Protective Section 336(e) Election is made and becomes effective and Spinco or any member of the Spinco Group realizes an increase in Tax basis as a result of such Protective Section 336(e) Election (the
      “Section 336(e) Tax Basis Increase”), then the cash Tax savings actually realized by Spinco or any member of the Spinco Group as a result of the
      Section 336(e) Tax Basis Increase if, as and when realized by Spinco or such member of the Spinco Group arising from the Section 336(e) Tax Basis Increase (including, for the avoidance of doubt, any such additional Section 336(e) Tax Basis Increase
      attributable to payments made pursuant to this Section 3.6(b)) resulting from the Protective Section 336(e) Election, determined on a “with and
      without” basis (treating any deductions or amortization attributable to the step up in Tax basis resulting from the Protective 336(e) Election, or any other recovery of such step up, as the last items claimed for any taxable year, including after the
      utilization of any available net operating loss carryforwards) (the “Section 336(e) Benefit Amount”) shall be allocated as follows: (x) first, to KAR
      in the amount of the Incremental Section 336(e) Tax and (y) thereafter, shared between KAR and Spinco in the same proportion as the Taxes imposed on the Transactions giving rise to the Section 336(e) Tax Basis Increase were borne by KAR and Spinco
      (after giving effect to the indemnification obligations in this Agreement).

  
    16

    
      

  

  

  

  

  

  (iv)          Within fifteen (15) Business Days of actually realizing any Section 336(e) Benefit Amount, the Party realizing the Section 336(e) Benefit Amount (including through the realization of such Section 336(e) Benefit Amount by
      such Party’s Affiliates) shall (i) notify the other Party of any such Section 336(e) Benefit Amount, including by providing such other Party with reasonable documentation of such Section 336(e) Benefit Amount and (ii) pay the other Party the amount
      of any such Section 336(e) Benefit Amount to which such other Party is entitled pursuant to Section 3.6(b)(iii); provided, however, that the amount of any such payment shall be net of any and
      all Tax-Related Losses or other costs and expenses incurred by the Party realizing the Section 336(e) Benefit Amount in connection with the realization of such Section 336(e) Benefit Amount or the payment of such Section 336(e) Benefit Amount to
      other Party.

  

  

  (v)          For purposes of this Section 3.6(b), a Party shall be deemed to have realized a Section 336(e) Benefit Amount on the earlier
      of: (i) the date on which a Tax Return is filed (taking into account any applicable extensions) that reflects actual cash tax savings as a result of any Section 336(e) Benefit Amount and (ii) the date on which payment of the relevant Tax which would
      have been due and payable absent any such Section 336(e) Tax Benefit Amount (determined without taking into account any applicable extensions).

  

  

          Section 3.7  Payment of Taxes.

  (a)          With respect
      to any Tax Return required to be filed pursuant to this Agreement, the Preparing Party shall remit or cause to be remitted to the applicable Taxing Authority in a timely manner any Taxes due in respect of any such Tax Return. The obligation to make
      payments pursuant to this Section 3.7(a) shall not affect a Party’s right, if any, to receive payments under Article V or otherwise be indemnified with respect to that Tax liability.

  

  

  (b)          The Preparing
      Party shall, no later than five (5) Business Days before the due date (taking into account any applicable extensions) of any Tax Return described in Section 3.1
      or Section 3.2, notify the other Party of any amount (or any portion of any such amount) shown as due on that Tax Return for which the other Party
      must indemnify the Preparing Party under this Agreement. The other Party shall pay such amount to the Preparing Party no later than the due date (taking into account any applicable extensions) of the relevant Tax Return. A failure by an Indemnitee to
      give notice as provided in this Section 3.7(b) shall not relieve the Indemnifying Party’s indemnification obligations under this Agreement, except to
      the extent that the Indemnifying Party has been actually prejudiced by such failure.

  
    17

    
      

  

          Section 3.8  Amended Returns and Carrybacks.

   

        

  (a)          Spinco shall
      not, and shall not permit any member of the Spinco Group to, file or allow to be filed any amended Tax Return or request for an Adjustment for any Pre-Distribution Period or Straddle Period without the prior written consent of KAR, such consent to be
      exercised in KAR’s sole and absolute discretion.

  

  

  (b)          Spinco shall,
      and shall cause each member of the Spinco Group to, make any available elections to waive the right to carry back any Tax Attribute from a taxable period or portion thereof ending after the Distribution Date to a taxable period or portion thereof
      ending on or before the Distribution Date.

  

  

  (c)          Spinco shall
      not, and shall cause each member of the Spinco Group not to, make any affirmative election to carry back any Tax Attribute from a taxable period or portion thereof ending after the Distribution Date to a taxable period or portion thereof ending on or
      before the Distribution Date, without the prior written consent of KAR, such consent to be exercised in KAR’s sole and absolute discretion.

  

  

  (d)          Receipt of
      consent by Spinco or a member of the Spinco Group from KAR pursuant to the provisions of this Section 3.8 shall not limit or modify Spinco’s
      continuing indemnification obligation pursuant to Article V.

  

  

          Section 3.9  Tax Benefits.  Except as otherwise provided in Section 3.6(b), if (a) one Party is responsible for a Tax pursuant to this Agreement or under applicable Tax Law and (b) the other Party is entitled to a
      deduction, credit or other Tax benefit relating to such Tax, then the Party entitled to such deduction, credit or other Tax benefit shall pay to the Party responsible for such Tax the amount of any cash Tax savings realized by the entitled Party as a
      result of such deduction, credit or other Tax benefit, net of any Taxes imposed by any Taxing Authority on, related to, or attributable to, the receipt of or accrual of such Tax benefit, including any Taxes imposed by way of withholding or offset or
      any Tax-Related Losses or other costs and expenses incurred by the Party receiving the Tax benefit (or any of such Party’s Affiliates) in connection with the receipt of such Tax benefit or the payment of such Tax benefit to the other Party. To the
      extent that the amount of any Tax benefit in respect of which a payment was made under this Section 3.9 is later reduced by a Taxing Authority or in a
      Tax Contest, the Party that received such payment shall refund such payment to the Party that made such payment to the extent of such reduction.  The Parties shall cooperate in good faith to determine the existence of and size of any such Tax
      benefit; provided, however, that if the Parties
      cannot agree on such determination, KAR shall be entitled to make a final determination of the existence and size of any such Tax benefit in its sole discretion exercised in good faith.

  

  

          Section 3.10     Tax
          Attributes.

  
    18

    
      

  

  

  

  (a)          KAR shall
      reasonably and in good faith advise Spinco in writing of the amount, if any, of any Tax Attributes arising in a Pre-Distribution Period that shall be allocated or apportioned to the Spinco Group under applicable Law; provided, however, that with respect to the determination of Tax basis of
      assets transferred to Spinco, KAR shall make such determination reasonably and in good faith and consistent with the books and records of KAR and its Subsidiaries.  KAR, all members of the KAR Group, Spinco and all members of the Spinco Group shall
      prepare all Tax Returns in accordance with such written notice unless there is not a Reasonable Basis for such determination or otherwise required by a Final Determination.  For the avoidance of doubt, KAR shall not be required to create or cause to
      be created any books and records or reports or other documents based thereon that are of the type customarily prepared by outside legal, financial or accounting advisors (including, without limitation, “earnings & profits studies,” “basis
      studies” or similar determinations) in order to comply with this Section 3.10.

  

  

  (b)          To the extent
      that the amount of any Tax Attribute is later reduced or increased by a Taxing Authority or Tax Contest, such reduction or increase shall be allocated to the Party to which such Tax Attribute was allocated pursuant to Section 3.10(a).

  

  

  (c)          Notwithstanding

      the foregoing in this Section 3.10, the allocation or apportionment of Equity Award Deductions shall be governed by the Employee Matters Agreement.

  

  

  ARTICLE IV

  

  

  TAX-FREE STATUS OF THE
          DISTRIBUTION

  

  

          Section 4.1  Representations and Warranties.

  

  

  (a)          KAR, on behalf
      of itself and all other members of the KAR Group, hereby represents and warrants that (i) it has examined the IRS Ruling, each submission to the IRS in connection with the IRS Ruling, including the IRS Ruling Request, the Canadian Tax Ruling, each
      submission to the Canada Revenue Agency in connection with the Canadian Tax Ruling, including the Canadian Tax Ruling Request, the Tax Opinions, the Separation Plan, the Tax Certificates and any other materials delivered or deliverable in connection
      with the rendering of the Tax Opinions and the creation of the Separation Plan (collectively, the “Tax Materials”) and (ii) the facts presented and
      representations made therein, to the extent descriptive of or otherwise relating to KAR or any member of the KAR Group or the KAR Business, were, at the time presented or represented and from such time until and including the Distribution Date, true,
      correct, and complete in all material respects. KAR, on behalf of itself and all other members of the KAR Group, hereby confirms and agrees to comply with any and all covenants and agreements in the Tax Materials applicable to KAR or any member of
      the KAR Group or the KAR Business.

  

  

  (b)          Spinco, on
      behalf of itself and all other members of the Spinco Group, hereby represents and warrants that (i) it has examined the Tax Materials and (ii) the facts presented and representations made therein, to the extent descriptive of or otherwise relating to
      Spinco or any member of the Spinco Group or the Spinco Business, were, at the time presented or represented and from such time until and including the Distribution Date, true, correct, and complete in all material respects. Spinco, on behalf of
      itself and all other members of the Spinco Group, hereby confirms and agrees to comply with any and all covenants and agreements in the Tax Materials applicable to Spinco or any member of the Spinco Group or the Spinco Business.

  
    19

    
      

  

  

  

  

  

  (c)          Each of KAR,
      on behalf of it itself and all other members of the KAR Group, and Spinco, on behalf of itself and all other members of the Spinco Group represents and warrants that it knows of no fact (after due inquiry) that may cause the Transactions not to
      qualify for the Intended Tax Treatment.

  

  

  (d)          Each of KAR,
      on behalf of it itself and all other members of the KAR Group, and Spinco, on behalf of itself and all other members of the Spinco Group represents and warrants that it has no plan or intent to take any action which is inconsistent with any
      statements or representations made in the Tax Materials.

  

  

          Section 4.2  Restrictions on KAR.

  

  

  (a)          KAR, on behalf
      of itself and all other members of the KAR Group, hereby covenants and agrees that no member of the KAR Group will take, fail to take, or to permit to be taken: (i) any action where such action or failure to act would be inconsistent with or cause to
      be untrue any statement, information, covenant or representation in the Tax Materials, or (ii) any action which adversely affects or could reasonably be expected to adversely affect the Intended Tax Treatment of the Transactions.

  

  

          Section 4.3  Restrictions on Spinco.

  

  

  (a)          Spinco, on
      behalf of itself and all other members of the Spinco Group, hereby covenants and agrees that no member of the Spinco Group will take, fail to take, or to permit to be taken: (i) any action where such action or failure to act would be inconsistent
      with or cause to be untrue any statement, information, covenant or representation in the Tax Materials, or (ii) any action which adversely affects or could reasonably be expected to adversely affect the Intended Tax Treatment of the Transactions.

  

  

  (b)          During the
      Restricted Period, Spinco:

  

  

  (i)          shall continue and cause to be continued the active conduct of the Spinco Business for purposes of Section 355(b)(2) of the Code, taking into account Section 355(b)(3) of the Code, as conducted immediately prior to the
      Distribution,

  

  

  (ii)          shall not voluntarily dissolve or liquidate itself or any of its Affiliates (including any action that is a liquidation for U.S. federal income tax purposes),

  

  

  (iii)          shall not (and shall not cause or permit any of its Affiliates to) (1) enter into any Proposed Acquisition Transaction or, to the extent Spinco has the right to prohibit any Proposed Acquisition Transaction, permit any
      Proposed Acquisition Transaction to occur, (2) redeem or otherwise repurchase (directly or through an Affiliate) any Spinco stock, or rights to acquire Spinco stock, other than through stock purchases meeting the requirements of section 4.05(1)(b) of
      Revenue Procedure 96-30, 1996-1 C.B. 696, (3) amend its certificate of incorporation (or other organizational documents), or take any other action, whether through a stockholder vote or otherwise, affecting the relative voting rights of its capital
      stock (including through the conversion of any capital stock into another class of capital stock), (4) merge or consolidate with any other Person or (5) take any other action or actions (including any action or transaction that would be reasonably
      likely to be inconsistent with any representation made in the Tax Certificates) which in the aggregate would, when combined with any other direct or indirect changes in ownership of Spinco capital stock pertinent for purposes of Section 355(e) of the
      Code, have the effect of causing or permitting one or more Persons (whether or not acting in concert) to acquire directly or indirectly stock representing a fifty-percent or greater interest in Spinco or would reasonably be expected to result in a
      failure to preserve the Intended Tax Treatment of the Transactions; and

  
    20

    
      

  

  (iv)          shall not and shall not permit any member of the Spinco Group, to sell, transfer, or otherwise dispose of or agree to, sell, transfer or otherwise dispose (including in any transaction treated for federal income tax purposes
      as a sale, transfer or disposition) of assets (including, any shares of capital stock of a Subsidiary) that, in the aggregate, constitute more than 20 percent of the consolidated gross assets of Spinco or the Spinco Group.  The foregoing sentence
      shall not apply to (1) sales, transfers, or dispositions of assets in the ordinary course of business, (2) any cash paid to acquire assets from an unrelated Person in an arm’s-length transaction, (3) any assets transferred to a Person that is
      disregarded as an entity separate from the transferor for federal income tax purposes or (4) any mandatory or optional repayment (or pre-payment) of any indebtedness of Spinco or any member of the Spinco Group.  The percentages of gross assets or
      consolidated gross assets of Spinco or the Spinco Group, as the case may be, sold, transferred, or otherwise disposed of, shall be based on the fair market value of the gross assets of Spinco and the members of the Spinco Group as of the Distribution
      Date.  For purposes of this Section 4.3(b)(iv), a merger of Spinco or one of its Subsidiaries with and into any Person that is not a wholly owned
      Subsidiary of Spinco shall constitute a disposition of all of the assets of Spinco or such Subsidiary.

  

  

  (c)          During the
      period which begins with the Distribution Date and ends three (3) years thereafter, Spinco:

  

  

  (i)          shall not (and shall not cause or permit any of its Affiliates to) (1) cease to control Canadian Spinco or Spinco’s Direct Subsidiary or (2) dispose of any shares of Canadian Spinco or Spinco’s Direct Subsidiary that were
      held at the time of the Distribution by Spinco or any of its Affiliates; and

  

  

  (ii)          shall not (and shall not cause or permit any of its Affiliates to) sell, transfer, or otherwise dispose of any assets, or otherwise take any action that would result in the shares of Canadian Spinco having a value greater
      than ten (10) percent of the total value of the shares of either (1) Spinco or (2) Spinco’s Direct Subsidiary.

  
    21

    
      

  

  (d)          Notwithstanding

      the restrictions imposed by Section 4.3(a), Error!

          Reference source not found., or  (b), Spinco or a member of the Spinco Group may take any of the actions or transactions described
      therein if Spinco either (i) obtains an Unqualified Tax Opinion in form and substance reasonably satisfactory to KAR or (ii) obtains the prior written consent of KAR waiving the requirement that Spinco obtain an Unqualified Tax Opinion, such waiver
      to be provided in KAR’s sole and absolute discretion.  KAR’s evaluation of an Unqualified Tax Opinion may consider, among other factors, the appropriateness of any underlying assumptions, representations, and covenants made in connection with such
      opinion.  Spinco shall bear all costs and expenses of securing any such Unqualified Tax Opinion and shall reimburse KAR for all reasonable out-of-pocket expenses that KAR or any of its Affiliates may incur in good faith in seeking to obtain or
      evaluate any such Unqualified Tax Opinion.  Neither the delivery of an Unqualified Tax Opinion nor KAR’s waiver of Spinco’s obligation to deliver an Unqualified Tax Opinion shall limit or modify Spinco’s continuing indemnification obligation pursuant
      to Article V.

  

  

  ARTICLE V

  

  

  INDEMNITY OBLIGATIONS

  

  

          Section 5.1  Indemnity Obligations.

  

  

  (a)          KAR shall
      indemnify and hold harmless Spinco from and against, and will reimburse Spinco for, (i) all liability for Taxes allocated to KAR pursuant to this Agreement, (ii) all Tax-Related Losses arising out of, based upon, or relating or attributable to any
      breach of or inaccuracy in, or failure to perform, as applicable, any representation, covenant, or obligation of any member of the KAR Group pursuant to this Agreement (including but not limited to any of the foregoing contained in Section 4.1 or Section 4.2) or any Tax Materials, (iii)
      any other Tax-Related Loss resulting (for the avoidance of doubt, in whole or in part) from an acquisition after the Distribution of any stock or assets of KAR (or any KAR Affiliate) by any means whatsoever by any Person, and (iv) any other amounts
      KAR is required to pay to Spinco pursuant to the terms of this Agreement.

  

  

  (b)          Without regard
      to whether an Unqualified Tax Opinion may have been provided or whether any action is permitted or consented to hereunder and notwithstanding anything else to the contrary contained herein, Spinco shall indemnify and hold harmless KAR from and
      against, and will reimburse KAR for, (i) all liability for Taxes allocated to Spinco pursuant to this Agreement, (ii) all Tax-Related Losses arising out of, based upon, or relating or attributable to any breach of or inaccuracy in, or failure to
      perform, as applicable, any representation, covenant, or obligation of any member of the Spinco Group pursuant to this Agreement (including but not limited to any of the foregoing contained Section 4.1 or Section 4.2) or any Tax Materials, (iii) any other Tax-Related Loss resulting (for the
      avoidance of doubt, in whole or in part) from an acquisition after the Distribution of any stock or assets of Spinco (or any Spinco Affiliate) by any means whatsoever by any Person, (iv) the amount of any Refund received by any member of the Spinco
      Group that is allocated to KAR pursuant to Section 2.16(a), and (v) any other amounts Spinco is required to pay to KAR pursuant to the terms of this
      Agreement (including, but not limited to, any amounts Spinco is required to pay KAR pursuant to Section 3.6(b)).

  
    22

    
      

  

  (c)          To the extent
      that any Tax-Related Loss is subject to indemnity pursuant to both Section 5.1(a) and Section 5.1(b), each of KAR and Spinco shall pay and be responsible for fifty (50) percent of such Tax-Related Loss.

  

  

          Section 5.2  Indemnification Payments.

   

        

  (a)          Except as
      otherwise provided in this Agreement, if either Party (the “Indemnitee”) is required to pay to a Taxing Authority a Tax or to another Person a payment
      in respect of a Tax that the other Party (the “Indemnifying Party”) is liable for under this Agreement, including as the result of a Final
      Determination, the Indemnitee shall notify the Indemnifying Party, in writing, of its obligation to pay such Tax and, in reasonably sufficient detail, its calculation of the amount due by such Indemnifying Party to the Indemnitee, including any other
      Tax-Related Losses attributable thereto.  The Indemnifying Party shall pay such amount, including any other Tax-Related Losses attributable thereto, to the Indemnitee no later than the later of (i) five (5) Business Days prior to the date on which
      such payment is due to the applicable Taxing Authority or (ii) fifteen (15) Business Days after the receipt of notice from the other Party.

  

  

  (b)          If, as a
      result of any change or redetermination made with respect to Article II, any amount previously allocated to and borne by one Party pursuant to the
      provisions of Article II  is thereafter allocated to the other Party, then, no later than fifteen (15) Business Days after such change or
      redetermination, such other Party shall pay to such Party the amount previously borne by such Party which is allocated to such other Party as a result of such change or redetermination.

  

  

          Section 5.3  Payment Mechanics.

   

        

  (a)          Subject to Section 10.7, all payments under this Agreement shall be made by KAR directly to Spinco and by Spinco directly to KAR; provided, however, that if the Parties mutually agree with respect to any such
      indemnification payment, any member of the KAR Group, on the one hand, may make such indemnification payment to any member of the Spinco Group, on the other hand, and vice versa.  All indemnification payments shall be treated in the manner described
      in Section 5.4.

  

  

  (b)          In the case of
      any payment of Taxes made by a Preparing Party or Indemnitee pursuant to this Agreement for which such Preparing Party or Indemnitee, as the case may be, has received a payment from the other Party, such Preparing Party or Indemnitee shall provide to
      the other Party a copy of any official government receipt received with respect to the payment of such Taxes to the applicable Taxing Authority (or, if no such official governmental receipts are available, executed bank payment forms or other
      reasonable evidence of payment).

  
    23

    
      

  

          Section 5.4  Treatment of Payments.  The Parties agree that
      any payment made among the Parties pursuant to this Agreement shall be treated, to the extent permitted by law, for all U.S. federal income tax purposes as either (i) a non-taxable contribution by KAR to Spinco, or (ii) a distribution by Spinco to
      KAR, in each case, made immediately prior to the Distribution.  Any Tax indemnity payment made by a Party under this Agreement shall be increased as necessary so that after making all payments in respect to Taxes imposed on or attributable to such
      indemnity payment, the recipient Party receives an amount equal to the sum it would have received had no such Taxes been imposed.

  

  

  ARTICLE VI

  

  

  TAX CONTESTS

  

  

          Section 6.1  Notice. 

      Each Party shall notify the other Party in writing within ten (10) Business Days after receipt by such Party or any member of its Group of a written communication from any Taxing Authority with respect to any pending or threatened audit, claim,
      dispute, suit, action, proposed assessment or other proceeding (a “Tax Contest”) concerning any Taxes for which the other Party may be liable pursuant
      to this Agreement, and thereafter shall promptly forward or make available to such Party copies of notices and communications relating to such Tax Contest.  A failure by an Indemnitee to give notice as provided in this Section 6.1 (or to promptly forward any such notices or communications) shall not relieve the Indemnifying Party’s indemnification obligations under this Agreement, except to the
      extent that the Indemnifying Party shall have been actually prejudiced by such failure.

  

  

          Section 6.2  Separate Returns. In the case of any Tax Contest
      with respect to any Separate Return, the Party having the liability for the Tax pursuant to this Agreement shall have the sole responsibility and right to control the prosecution of such Tax Contest, including the exclusive right to communicate with
      agents of the applicable Taxing Authority and to control, resolve, settle, or agree to any deficiency, claim, or adjustment proposed, asserted, or assessed in connection with or as a result of such Tax Contest; provided, however, that the Controlling Party of such Tax Contest shall not
      take any action that could reasonably result in the increased liability for Taxes of the Non-Controlling Party or a member of the Non-Controlling Party’s Group without the prior written consent of the Non-Controlling Party, such consent not to be
      unreasonably withheld, conditioned or delayed.

  

  

          Section 6.3  Joint Returns. In the case of any Tax Contest
      with respect to any Joint Return, KAR shall have the sole responsibility and right to control the prosecution of such Tax Contest, including the exclusive right to communicate with agents of the applicable Taxing Authority and to control, resolve,
      settle, or agree to any deficiency, claim, or adjustment proposed, asserted, or assessed in connection with or as a result of such Tax Contest; provided,
      however, that to the extent that such Tax Contest relates to Taxes for which Spinco has an indemnification obligation pursuant to this Agreement, KAR
      shall (a) defend such Tax Contest diligently and in good faith, (b) keep Spinco informed in a timely manner of all actions proposed to be taken by KAR with respect to such Tax Contest (or, to the extent practicable, the portion of such Tax Contest
      that relates to Taxes for which Spinco is responsible pursuant to this Agreement) and (c) not settle any such Tax Contest without the prior written consent of Spinco, which shall not be unreasonably withheld, conditioned or delayed, to the extent
      such settlement relates to a material indemnification obligation of Spinco pursuant to this Agreement.

  
    24

    
      

  

          Section 6.4  Other Tax Contests. KAR shall have the sole
      responsibility and right to control the prosecution of any Tax Contest not covered under Section 6.2 or Section 6.3, including the exclusive right to communicate with agents of the applicable Taxing Authority and to control, resolve, settle, or agree to any deficiency, claim, or adjustment
      proposed, asserted, or assessed in connection with or as a result of such Tax Contest; provided, however, that to the extent that such Tax Contest relates to Taxes for which Spinco has an indemnification obligation pursuant to this Agreement, KAR shall (a) defend such Tax Contest
      diligently and in good faith, (b) keep Spinco informed in a timely manner of all actions proposed to be taken by KAR with respect to such Tax Contest (or, to the extent practicable, the portion of such Tax Contest that relates to Taxes for which
      Spinco is responsible pursuant to this Agreement) and (c) not settle any such Tax Contest without the prior written consent of Spinco, which shall not be unreasonably withheld, conditioned or delayed, to the extent such settlement relates to a
      material indemnification obligation of Spinco pursuant to this Agreement.

  

  

          Section 6.5  Obligation of Continued Notice.  During the pendency of any Tax
      Contest or threatened Tax Contest, each of the Parties shall provide prompt notice to the other Party of any written communication received by it or a member of its respective Group from a Taxing Authority regarding any Tax Contest for which it is
      indemnified by the other Party hereunder or for which it may be required to indemnify the other Party hereunder.  Such notice shall include copies of the pertinent portion of any written communication from a Taxing Authority and contain factual
      information (to the extent known) describing any asserted Tax liability in reasonable detail and shall be accompanied by copies of any notice and other documents received from any Taxing Authority in respect of any such matters.  Such notice shall be
      provided in a timely fashion; provided, however,
      that in the event that timely notice is not provided, a Party shall be relieved of its obligation to indemnify the other Party only to the extent that such delay results in actual increased costs or actual prejudice to such other Party.

  

  

          Section 6.5  Settlement Rights.  Unless waived by the Parties in writing, in
      connection with any potential adjustment  or settlement in a Tax Contest as a result of which adjustment or settlement the Non-Controlling Party may reasonably be expected to become liable to make any indemnification payment to the Controlling Party
      under this Agreement: (i) the Controlling Party shall keep the Non-Controlling Party informed in a timely manner of all actions taken or proposed to be taken by the Controlling Party with respect to such potential adjustment or settlement in such Tax
      Contest; (ii) the Controlling Party shall timely provide the Non-Controlling Party with copies of any correspondence or filings submitted to any Tax Authority or judicial authority in connection with such potential adjustment or settlement in such
      Tax Contest; and (iii) the Controlling Party shall defend such Tax Contest diligently and in good faith. The failure of the Controlling Party to take any action specified in the preceding sentence with respect to the Non-Controlling Party shall not
      relieve the Non-Controlling Party of any liability and/or obligation which it may have to the Controlling Party under this Agreement, and in no event shall such failure relieve the Non-Controlling Party from any other liability or obligation which it
      may have to the Controlling Party.

  
    25

    
      

  

  

  

  Section 6.7        Tax Contest Costs and Expenses. In the event that a Tax Contest could reasonably impact the amount of Taxes, Tax Attributes, Refunds or other Tax benefits
      of both the Controlling Party and the Non-Controlling Party (taking into account the terms of this Agreement), the Non-Controlling Party shall reimburse the Controlling Party for its allocable share of costs and expenses (including employee
      compensation, court costs, filing fees and accounting, legal and other professional fees) based on the proportion that the amount of Taxes, Tax Attributes, Refunds, or other Tax benefits of the Non-Controlling Party that could reasonably be impacted
      by such Tax Contest bear to the whole amount that could be impacted by such Tax Contest.

  

  

  ARTICLE VII

  

  

  COOPERATION

  

  

          Section 7.1  General.

   

        

  (a)          Each Party
      shall fully cooperate, and shall cause all members of such Party’s Group to fully cooperate, with all reasonable requests in writing from the other Party, or from an agent, representative or advisor to such Party, in connection with the preparation
      and filing of any Tax Return, claims for Refunds, the conduct of any Tax Contest, and calculations of amounts required to be paid pursuant to this Agreement, in each case, related or attributable to or arising in connection with Taxes of either Party
      or any member of either Party’s Group covered by this Agreement and the establishment of any reserve required in connection with any financial reporting (a “Tax
          Matter”). Such cooperation shall include the provision of any information reasonably necessary or helpful in connection with a Tax Matter and shall include, without limitation, at each Party’s own cost:

  

  

  (i)          the provision of any Tax Returns of either Party or any member of either Party’s Group, books, records (including information regarding ownership and Tax basis of property), documentation and other information relating to
      such Tax Returns, including accompanying schedules, related work papers, and documents relating to rulings or other determinations by Taxing Authorities;

  

  

  (ii)          the execution of any document (including any power of attorney) in connection with any Tax Contest of either Party or any member of either Party’s Group, or the filing of a Tax Return or a Refund claim of either Party or any
      member of either Party’s Group;

  

  

  (iii)          the use of the Party’s reasonable best efforts to obtain any documentation in connection with a Tax Matter; and

  

  

  (iv)          the use of the Party’s reasonable best efforts to obtain any Tax Returns (including accompanying schedules, related work papers, and documents), documents, books, records or other information in connection with the filing of
      any Tax Returns of either Party or any member of either Party’s Group.

  
    26

    
      

  

  

  

  

  

  Each Party shall make its employees and facilities available, without charge, on a mutually convenient basis to
      facilitate such cooperation.

  

  

          Section 7.2  Consistent Treatment.  Unless and until there
      has been a Final Determination to the contrary, each Party agrees not to take any position on any Tax Return, in connection with any Tax Contest or otherwise, that is inconsistent with (a) the treatment of payments between the KAR Group and the
      Spinco Group as set forth in Section 5.4, or (b) the Intended Tax Treatment.

  

  

  ARTICLE VIII

  

  

  RETENTION OF RECORDS; ACCESS

  

  

          Section 8.1  Retention of Records.  For so long as the
      contents thereof may become material in the administration of any matter under applicable Tax Law, but in any event until the later of (i) sixty (60) days after the expiration of any applicable statutes of limitation (including any waivers or
      extensions thereof) and (ii) seven years after the Distribution Date, the Parties shall retain records, documents, accounting data and other information (including computer data) necessary for the preparation and filing of all Tax Returns
      (collectively, “Tax Records”) in respect of Taxes of any member of either the KAR Group or the Spinco Group for any Pre-Distribution Period, Straddle
      Period, or Post-Distribution Period or for any Tax Contests relating to such Tax Returns.  At any time after the Distribution Date that the KAR Group proposes to destroy such records or documents, it shall first notify the Spinco Group in writing and
      the Spinco Group shall be entitled to receive such records or documents proposed to be destroyed. At any time after the Distribution Date that the Spinco Group proposes to destroy such records or documents, it shall first notify the KAR Group in
      writing and the KAR Group shall be entitled to receive such records or documents proposed to be destroyed. The Parties shall notify each other in writing of any waivers or extensions of the applicable statute of limitations that may affect the period
      for which the foregoing records or other documents must be retained.

  

  

          Section 8.2  Access to Tax Records.  The Parties and their
      respective Affiliates shall make available to each other for inspection and copying during normal business hours upon reasonable notice all Tax Records (and, for the avoidance of doubt, any pertinent underlying data accessed or stored on any computer
      program or information technology system) in their possession and shall permit the other Party and its Affiliates, authorized agents and representatives and any representative of a Taxing Authority or other Tax auditor direct access, during normal
      business hours upon reasonable notice, to any computer program or information technology system used to access or store any Tax Records, in each case to the extent reasonably required by the other Party in connection with the preparation of Tax
      Returns or financial accounting statements, audits, litigation, or the resolution of items pursuant to this Agreement.  The Party seeking access to the records of the other Party shall bear all costs and expenses associated with such access,
      including any professional fees; provided, however,
      that if the access to Tax Records pursuant to this Section 8.2 results in a Refund, Tax benefit or other reduction in Taxes to the Party providing
      such access, the Party providing access shall reimburse the Party seeking access for the providing Party’s allocable portion of the costs and expenses of the Party seeking access, based on the amount of Refund, Tax benefit or other reduction in Taxes
      realized by the Party providing access.

  
    27

    
      

  

  ARTICLE IX

  

  

  DISPUTE RESOLUTION

  

  

          Section 9.1  Dispute Resolution Mechanics. The Parties shall
      attempt in good faith to resolve any disagreement arising with respect to this Agreement, including any dispute in connection with a claim by a third party (a “Dispute”).

      Either Party may give the other Party written notice of any Dispute not resolved in the normal course of business. If the Parties cannot agree within thirty (30) Business Days following the date on which one Party gives such notice (the “Dispute Date”), then the Dispute shall be referred to a Tax Expert acceptable to each of the Parties to act as an arbitrator in order to resolve the
      Dispute. If the Parties are unable to agree upon a Tax Expert within ten (10) Business Days, the Tax Expert selected by KAR and the Tax Expert selected by Spinco shall jointly select a Tax Expert that will resolve the Dispute. Such Tax Expert shall
      be empowered to resolve the Dispute, including by engaging nationally recognized lar firms, accountants and other experts. The Tax Expert chosen to resolve the Dispute shall furnish written notice to the Parties of its resolution of such Dispute as
      soon as practicable, but in no event later than forty-five (45) Business Days after its acceptance of the matter for resolution. Any such resolution by the Tax Expert shall be conclusive and binding on the Parties. The fees and expenses of the Tax
      Expert shall be allocated between the Parties in the same proportion that the aggregate amount of disputed items that were determined in favor of the other Party (as finally determined by the Tax Expert) bears to the total amount of disputed items
      submitted by the Parties.

  

  

  ARTICLE X

  

  

  MISCELLANEOUS PROVISIONS

  

  

          Section 10.1     Conflicting

          Agreements.  In the event and to the extent that there shall be a conflict between the provisions of this Agreement and the provisions of the Separation and Distribution Agreement, this Agreement shall control with respect to the
      subject matter thereof.

  

  

          Section 10.2     Termination.
      This Agreement will terminate without further action at any time before the Distribution upon termination of the Separation and Distribution Agreement. If terminated, no Party will have any liability of any kind to the other Party or any other Person
      on account of this Agreement, except as provided in the Separation and Distribution Agreement.

  

  

          Section 10.3     Interest

          on Late Payments.  With respect to any payment between the Parties pursuant to this Agreement not made by the due date set forth in this Agreement for such payment, the outstanding amount will accrue interest at a rate per annum equal
      to the rate in effect for underpayments under Section 6621 of the Code from such due date to and including the payment date.

  

  

          Section 10.4     Specific

          Performance. In the event of any actual or threatened default in, or breach of, any of the terms, conditions and provisions of this Agreement, KAR shall have the right to specific performance and injunctive or other equitable relief of
      its rights under this Agreement, in addition to any and all other rights and remedies at law or in equity, and all such rights and remedies shall be cumulative. Spinco shall not oppose the granting of such relief on the basis that money damages are
      an adequate remedy. The Parties agree that the remedies at law for any breach or threatened breach hereof, including monetary damages, are inadequate compensation for any loss and that any defense in any action for specific performance that a remedy
      at law would be adequate is waived. Any requirements for the securing or posting of any bond with such remedy are waived. The Parties acknowledge and agree that the right of specific enforcement is an integral part of this Agreement and without that
      right, neither KAR nor Spinco would have entered into this Agreement.

  
    28

    
      

  

          Section 10.5     Successors. 

      This Agreement shall be binding on and inure to the benefit of any successor by merger, acquisition of assets, or otherwise, to any of the parties hereto, to the same extent as if such successor had been an original party to this Agreement.

  

  

          Section 10.6     Application

          to Present and Future Subsidiaries.  This Agreement is being entered into by KAR and Spinco on behalf of themselves and the members of their respective Group. This Agreement shall constitute a direct obligation of each such Party and
      shall be deemed to have been readopted and affirmed on behalf of any entity that becomes a Subsidiary of KAR or Spinco in the future.

  

  

          Section 10.7     Assignability.  This Agreement shall not be assignable, in whole or in part, directly or indirectly, by any party hereto without the prior written consent of
      the other Party (not to be unreasonably withheld or delayed), and any attempt to assign any rights or obligations arising under this Agreement without such consent shall be void. Notwithstanding the foregoing, this Agreement shall be assignable to
      (i) with respect to KAR, an Affiliate of KAR, or (ii) a bona fide third party in connection with a merger, reorganization, consolidation or the sale of all or substantially all the assets of a Party hereto so long as the resulting, surviving or
      transferee entity assumes all the obligations of the relevant Party hereto by operation of law or pursuant to an agreement in form and substance reasonably satisfactory to the other Party to this Agreement. No assignment permitted by this Section 10.7 shall release the assigning Party from liability for the full performance of its obligations under this Agreement.

  

  

          Section 10.8     No
          Fiduciary Relationship.  The duties and obligations of the Parties, and their respective successors and permitted assigns, contained herein are the extent of the duties and obligations contemplated by this Agreement; nothing in this
      Agreement is intended to create a fiduciary relationship between the Parties hereto, or any of their successors and permitted assigns, or create any relationship or obligations other than those explicitly described.

  

  

  Section 10.9     No Duplication; No Double Recovery. Nothing in this Agreement, the Separation and Distribution Agreement or any Ancillary Agreement is intended to confer
      to or impose upon any Party a duplicative right, entitlement, benefit, reduction, obligation or recovery with respect to any matter arising out of the same facts and circumstances.

  

  

          Section 10.10   Further

          Assurances.  Subject to the provisions hereof, the Parties hereto shall make, execute, acknowledge and deliver such other instruments and documents, and take all such other actions, as may be reasonably required in order to effectuate
      the purposes of this Agreement and to consummate the transactions contemplated hereby.

  
    29

    
      

  

          Section
        10.11   Survival.  Notwithstanding any other provision of this Agreement to the contrary, all representations, covenants and obligations contained in this Agreement shall survive until the expiration of the applicable statute of
      limitations with respect to any such matter (including extensions thereof).

  

  

          Section 10.12   Notices. 

      All notices, requests, claims, demands or other communications under this Agreement shall be in writing and shall be given or made (and shall be deemed to have been duly given or made upon receipt) by delivery in person, by overnight courier service,
      by facsimile or electronic transmission with receipt confirmed (followed by delivery of an original via overnight courier service) or by registered or certified mail (postage prepaid, return receipt requested) to the respective Parties at the
      following addresses (or at such other address for a Party as shall be specified in a notice given in accordance with this Section 10.12):

   

    

  
    	 	
             If to KAR, to: 

          
	 	   	   
	 	   	
             KAR Auction Services, Inc. 

          
	 	   	
             13085 Hamilton Crossing Boulevard 

          
	 	   	
             Carmel, Indiana 46032 

          
	 	   	
             Email: 

          	
             becca.polak@karauctionservices.com 

          
	 	   	
             Attention: 

          	
             Chief Legal Officer 

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

          
	 	   	   
	 	   	
             Skadden, Arps, Slate, Meagher & Flom LLP 

          
	 	   	
             Four Times Square 

          
	 	   	
             New York, New York 10036 

          
	 	   	
             Email: 

          	
             Sean.Doyle@skadden.com 

          
	 	   	   	
             Gregory.Fernicola@skadden.com 

          
	 	   	   	
             Dwight.Yoo@skadden.com 

          
	 	   	
             Attention: 

          	
             Sean C. Doyle 

          
	 	   	   	
             Gregory A. Fernicola 

          
	 	   	   	
             Dwight S. Yoo 

          
	 	   
	 	
             If to SpinCo, to: 

          
	 	   	   
	 	   	
             Insurance Auto Auctions, Inc. 

          
	 	   	
             Two Westbrook Corporate Center, Suite 500 

          
	 	   	
             Westchester, Illinois 60154 

          
	 	   	
             Email: 

          	
             jkett@iaai.com 

          
	 	   	   	
             skerley@iaai.com 

          
	 	   	
             Attention: 

          	
             John Kett 

          
	 	   	   	
             Sidney Peryar 

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

          
	 	   	   
	 	   	
             Skadden, Arps, Slate, Meagher & Flom LLP 

          
	 	   	
             Four Times Square 

          
	 	   	
             New York, New York 10036 

          
	 	   	
             Email: 

          	
             Sean.Doyle@skadden.com 

          
	 	   	   	
             Gregory.Fernicola@skadden.com 

          
	 	   	   	
             Dwight.Yoo@skadden.com 

          
	 	   	
             Attention: 

          	
             Sean C. Doyle 

          
	 	   	   	
             Gregory A. Fernicola 

          
	 	   	   	
             Dwight S. Yoo 

          

    

    

     

  
    30

    
      

  

          Section 10.13   Effective

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

  

  

  *          *          *

  

  

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    31

    
      

  

  

  

  

  

  IN WITNESS WHEREOF, the Parties hereto have duly executed this Agreement as of the day and year first above written.

  

  

  	 	
          KAR Auction Services, Inc..

        
	 	 	 
	 	
          By:

        	 
	 	 	
          Name:

        
	 	 	
          Title:

        
	 	 	 
	 	
          IAA Spinco Inc.

        
	 	 	 
	 	
          By:

        	 
	 	 	
          Name:

        
	 	 	
          Title:

        

  

  

  
    32

    
      

  

  EXHIBIT A

  

  

  [Separation Plan]

   

    

  33

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