Document:

Exhibit
10.4

LIMITED GUARANTEE

OF

VALUEACT CAPITAL MASTER FUND, L.P.

LIMITED GUARANTEE,
dated as of December 22, 2006 (this “Limited Guarantee”), by ValueAct
Capital Master Fund, L.P. (“Guarantor”), in favor of ADESA, INC., a Delaware corporation
(the “Company”).  On the date hereof, the Company has entered
into guarantees (the “Other Guarantees”) with (i) GS Capital Partners
VI, L.P. (together with GS Capital Partners VI Parallel, L.P., GS Capital
Partners VI Offshore, L.P. and GS Capital Partners VI GmbH & Co. KG), (ii)
Parthenon Investors II, L.P. and Insurance Auto Auctions, Inc. and (iii) Kelso
Investment Associates, VII, L.P. and Insurance Auto Auctions, Inc. (collectively,
the “Other Guarantors”) on substantially similar terms, except as
otherwise expressly provided therein. 
Any capitalized term not otherwise defined herein shall be as defined in
the Merger Agreement (as defined below).

1.             LIMITED GUARANTEE.  To induce the Company to enter into that
certain Agreement and Plan of Merger, dated as of the date hereof (as amended,
supplemented or otherwise modified from time to time, the “Merger Agreement”), by and among
the Company, KAR Holdings II, LLC, a limited liability company (“Buyer”),
KAR Holdings, Inc, a Delaware corporation and wholly-owned subsidiary of Buyer
(“Holdings”) and KAR Acquisition, Inc, a Delaware corporation and
wholly-owned subsidiary of Holdings (“Merger Sub” and together with
Buyer and Holdings, the “Buyer Parties”),
the Guarantor absolutely, unconditionally and irrevocably guarantees to the
Company, on the terms and conditions set forth herein, the prompt and complete payment,
if and when due of 28.3133% (the “Guaranteed Percentage”) of the
obligations of the Buyer Parties pursuant to and in accordance with: (i)
Section 8.3(d)(i) of the Merger Agreement with respect to the Buyer Termination
Fee; (ii) Section 8.3(d)(ii) of the Merger Agreement with respect to the
reimbursement of the Company Transaction Expenses; and (iii) Section
8.3(d)(iii) of the Merger Agreement with respect to the reimbursement of the
Company Financing Fees and Expenses and the Credit Facility Fees and Expenses (the
Guaranteed Percentage of the payment obligations identified in clauses (i) through
(iii) above, are collectively referred to herein as the “Obligations”); provided,
that, notwithstanding anything herein to the contrary, in the event that
Guarantor has actually paid the Guaranteed Percentage of the Buyer Termination
Fee pursuant to clause (i) above or the Guaranteed Percentage of the Company
Transaction Expenses pursuant to clause (ii) above, Guarantor shall have no
payment obligation with respect to the Company Financing Fees and Expenses or
the Credit Facility Fees and Expenses referenced in clause (iii) above; and provided,
further that the maximum aggregate amount payable by the Guarantor under this
Limited Guarantee (exclusive of any amounts required to be paid by Guarantor
pursuant to and in accordance with Section 16 hereof (the “Prevailing Party
Costs”)) shall not exceed the aggregate of Eleven Million Three Hundred
Twenty Five Thousand and Three Hundred One U.S. Dollars (U.S.$11,325,301) (the “Cap”);
it being understood that this Limited Guarantee may not be enforced without
giving effect to the Cap.  Except for Prevailing
Party Costs, the Company hereby agrees that in no event shall the Guarantor be
required to pay to any Person under, in respect of, or in connection with this
Limited Guarantee or the Merger Agreement, more than the Cap, and that
Guarantor shall not have any obligation or liability to any Person relating to,
arising out of or in connection with, this Limited Guarantee other than as
expressly set forth herein.  Should
either of the Buyer Parties default in the prompt and complete payment or performance
of the Obligations, the Guarantor’s

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obligations hereunder shall become immediately due and payable to the
Company.  The Company shall provide Buyer
and Guarantor with reasonable documentation, as applicable, of the Company Financing
Fees and Expenses and the Company Transaction Expenses and shall use reasonable
best efforts to provide Buyer with reasonable documentation of the Credit
Facility Fees and Expenses.  All sums
payable by the Guarantor hereunder shall be made in immediately available funds.  The Company may, in its sole discretion,
bring and prosecute a separate action or actions against the Guarantor for the
full payment of the Obligations, subject to the Cap (plus any Prevailing Party
Costs), regardless of whether the action is brought against one or both of the
Buyer Parties or any Other Guarantor or whether one or both of the Buyer
Parties or any Other Guarantor is joined in any such action or actions.  Notwithstanding anything to the contrary
contained in this Limited Guarantee or any other document, the obligations of
the Guarantor under this Limited Guarantee and of any Other Guarantor under any
Other Guarantee shall be several and not joint.

 

2.             NATURE OF LIMITED GUARANTEE.

(a)           The Company shall not
be obligated to file any claim relating to the Obligations in the event that
one or both of the Buyer Parties becomes subject to a bankruptcy,
reorganization or similar proceeding, and the failure of the Company to so file
shall not affect the Guarantor’s obligations hereunder.  In the event that any payment to the Company
in respect of the Obligations is rescinded or must otherwise be returned for
any reason whatsoever, the Guarantor shall remain liable hereunder with respect
to the Obligations (plus any Prevailing Party Costs) as if such payment had not
been made (subject to the terms hereof). 
This is an unconditional guarantee of payment and not of
collectibility.  Notwithstanding any
other provision of this Limited Guarantee, the Company hereby agrees that (i)
the Guarantor may assert, as a defense to any payment or performance by the
Guarantor under this Limited Guarantee, any defense to such payment or
performance that the Buyer Parties could assert against the Company under the
terms of the Merger Agreement, other than any such defense arising out of, due
to, or as a result of, the insolvency or bankruptcy of any Buyer Party or any of
the Other Guarantors, or any defense based upon a claim of fraudulent
conveyance and similar laws of general applicability relating to creditors
rights; and (ii) to the extent the Buyer Parties are relieved by the parties to
the Merger Agreement (including the Company) of their obligations under Section
8.3(d) of the Merger Agreement, the Guarantor shall be similarly relieved of
its Obligations under this Limited Guarantee.

(b)           The Company hereby
acknowledges and agrees that, as of the date hereof, each of the Buyer Parties’
sole assets are a de minimis amount
of cash and their respective rights under the Merger Agreement, and that no
additional funds or assets are expected to be contributed to the Buyer Parties,
except as contemplated by the Merger Agreement in connection with the Closing.

(c)           Notwithstanding
anything that may be expressed or implied in this Limited Guarantee or any
document or instrument delivered contemporaneously herewith, and
notwithstanding the fact that the Guarantor may be a partnership or limited
liability company, by its acceptance of the benefits of this Limited Guarantee,
the Company covenants and agrees that (i) neither the Company nor any of its
Subsidiaries or Affiliates, and the Company agrees to the maximum extent
permitted by Law, none of its officers, directors, security holders or

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representatives, has or shall have any right of recovery under the
Merger Agreement or the transactions contemplated thereby, and to the extent
that it has or obtains any such right, it, to the maximum extent permitted by
Law, hereby waives (on its own behalf and on behalf of each of the
aforementioned persons) each and every such right against, and hereby releases,
and no personal liability shall attach to, the Guarantor or any of the Sponsor
Affiliates (as defined below), from and with respect to any claim, known or
unknown, now existing or hereafter arising, relating to the Merger Agreement or
the transactions contemplated thereby, whether by or through attempted piercing
of the corporate (or limited liability company or limited partnership) veil, or
by or through a claim by or on behalf of the Buyer Parties (or any other
Person) against any Sponsor Affiliate (including, without limitation, a claim
to enforce the Equity Commitment Letters) (the “Released Claims”),
except for its rights to recover from the Guarantor (but not any Sponsor
Affiliate, under and to the extent provided in this Limited Guarantee (subject
to the limitations described herein)), and its rights against the Other
Guarantors pursuant to the terms of the Other Guarantees; and (ii) recourse
against the Guarantor under this Limited Guarantee (subject to the limitations
described herein) and against the Other Guarantors pursuant to the Other
Guarantees shall be the sole and exclusive remedy of the Company and all of its
Subsidiaries and Affiliates against the Guarantor and each Sponsor Affiliate in
respect of any liabilities or obligations arising under the Merger Agreement or
the transactions contemplated thereby. For purposes of this Limited Guarantee, “Sponsor
Affiliate” means, collectively, any former, current or future director,
officer, employee, agent, general or limited partner, manager, member,
stockholder, Affiliate or assignee of the undersigned or any Sponsor Affiliate
or any former, current or future director, officer, employee, agent, general or
limited partner, manager, member, stockholder, Affiliate or assignee of any of
the foregoing; provided, that, if the Person is an Other Guarantor, such Person
shall also have such obligations to Company as are set forth in the Other
Guarantee of such Person.

 

(d)           The Company hereby
covenants and agrees that it shall not institute, directly or indirectly, and
shall cause its Subsidiaries and controlled Affiliates not to institute, in the
name of or on behalf of the Company or any other Person, any proceeding or
bring any other claim arising under the Merger Agreement or the transactions
contemplated thereby, against the Guarantor or the Sponsor Affiliates except
for claims against the Guarantor under this Limited Guarantee (subject to the
limitations described herein), any claims against any Sponsor Affiliate that is
an Other Guarantor under an Other Guarantee, any claims for equitable relief
permitted under Section 9.12 of the Merger Agreement, or any claims permitted
under the Confidentiality Agreement.

(e)           The Company
acknowledges that the Guarantor is agreeing to enter into this Limited
Guarantee in reliance on the provisions set forth in Sections 2(b) through (e).
Sections 2(b), 2(c), 2(d) and 2(e) shall survive termination of this Limited
Guarantee.

3.             CHANGES IN OBLIGATIONS; CERTAIN WAIVERS.  The Guarantor agrees that the Company may at
any time and from time to time, without notice to or further consent of the
Guarantor, extend the time of payment of any of the Obligations, and also may
make any agreement with one or both of the Buyer Parties or any Other Guarantor
for the extension, renewal, payment, compromise, discharge or release thereof,
in whole or in part, or for any modification of the terms thereof or of any
agreement between the Company, on the one hand, and one or both of the Buyer
Parties or any Other Guarantor, on the other hand, without in any

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way impairing or affecting the Guarantor’s obligations under this
Limited Guarantee.  The Guarantor agrees
that the obligations of the Guarantor hereunder shall not be released or
discharged, in whole or in part, or otherwise affected by: (a) the failure
of the Company to assert any claim or demand or to enforce any right or remedy
against one or both of the Buyer Parties or any Other Guarantor; (b) any
change in the time, place or manner of payment of any of the Obligations or any
rescission, waiver, compromise, consolidation or other amendment or
modification of any of the terms or provisions of the Merger Agreement, any
Other Guarantee, or any other agreement evidencing, securing or otherwise
executed in connection with any of the Obligations (provided that any such
change, rescission, waiver, compromise, consolidation or other amendment or
modification shall be subject to the prior written consent of the Buyer Parties
to the extent expressly required by the Merger Agreement or to the prior
written consent of any of the applicable Other Guarantors, to the extent
expressly required by any of the Other Guarantees); (c) the addition,
substitution or release of any Person interested in the transactions
contemplated by the Merger Agreement (provided, that any such addition,
substitution or release shall be subject to the prior written consent of the
Buyer Parties to the extent expressly required under the Merger Agreement);
(d) any change in the corporate existence, structure or ownership of one
or both of the Buyer Parties or any other Person liable with respect to any of
the Obligations; (e) any insolvency, bankruptcy, reorganization or other
similar proceeding affecting one or both of the Buyer Parties, or any other
Person liable with respect to any of the Obligations; (f) subject to the
last sentence of Section 2(a) hereof, any lack of validity or enforceability of
the Obligations, the Merger Agreement or any agreement or instrument relating
thereto; (g) the existence of any claim, set-off or other rights which the
Guarantor may have at any time against one or both of the Buyer Parties, any
Other Guarantor or the Company, whether in connection with the Obligations or
otherwise; or (h) the adequacy of any other means the Company may have of
obtaining repayment of any of the Obligations. 
To the fullest extent permitted by Law, the Guarantor hereby expressly
waives any and all rights or defenses arising by reason of any Law which would
otherwise require any election of remedies by the Company.  The Guarantor waives promptness, diligence,
notice of the acceptance of this Limited Guarantee and of the Obligations,
presentment, demand for payment, notice of non-performance, default, dishonor
and protest, notice of any Obligations incurred and all other notices of any
kind (except for notices to be provided to the Buyer Parties and Skadden, Arps,
Slate, Meagher & Flom LLP in accordance with Section 9.2 of the Merger
Agreement), all defenses which may be available by virtue of any valuation,
stay, moratorium or other similar Law now or hereafter in effect, any right to
require the marshalling of assets of one or both of the Buyer Parties, or any
other Person liable with respect to any of the Obligations, and all suretyship
defenses generally (other than breach by the Company of this Limited Guarantee).  The Guarantor hereby unconditionally and
irrevocably agrees that it shall not institute, and shall cause its Affiliates
not to institute, any proceeding asserting that this Limited Guarantee is
illegal, invalid or unenforceable in accordance with its terms, subject to the
effects of bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and similar Laws of general application relating to or affecting
creditors’ rights, and general equitable principles (whether considered in a
proceeding in equity or at law).  The
Guarantor acknowledges that it will receive substantial direct and indirect
benefits from the transactions contemplated by the Merger Agreement and that
the waivers set forth in this Limited Guarantee are knowingly made in
contemplation of such benefits and after the advice of counsel.

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4.             NO SUBROGATION.  The Guarantor hereby unconditionally and
irrevocably agrees not to exercise any rights that it may now have or hereafter
acquire against one or both of the Buyer Parties or any other Person liable
with respect to any of the Obligations that arise from the existence, payment,
performance, or enforcement of the Guarantor’s obligations under or in respect
of this Limited Guarantee or any other agreement in connection therewith,
including, without limitation, any right of subrogation, reimbursement,
exoneration, contribution or indemnification and any right to participate in
any claim or remedy of the Company against one or both of the Buyer Parties or
any other Person interested in the transactions contemplated by the Merger
Agreement liable with respect to any of the Obligations, whether or not such
claim, remedy or right arises in equity or under contract, statute or common
law, including, without limitation, the right to take or receive from one or
both of the Buyer Parties or any other Person liable with respect to any of the
Obligations, directly or indirectly, in cash or other property or by set-off or
in any other manner, payment or security on account of such claim, remedy or
right, unless and until all of the Obligations and Prevailing Party Costs, if
applicable, shall have been irrevocably paid in full in cash; provided
that, the Guarantor shall have the right to cause any other Person to satisfy
its payment obligations to the Company under Section 1 hereof; provided,
however, that such right in the preceding proviso shall only relieve the
Guarantor of its obligation to make such payment when such payment is
irrevocably paid by such other Person in full in cash.  If any amount shall be paid to the Guarantor
in violation of the immediately preceding sentence at any time prior to the
payment in full in cash of the Obligations and Prevailing Party Costs, if
applicable, such amount shall be received and held in trust for the benefit of
the Company, shall be segregated from other property and funds of the Guarantor
and shall forthwith be paid or delivered to the Company in the same form as so
received (with any necessary endorsement or assignment) to be credited and
applied to the Obligations and Prevailing Party Costs, if applicable, in
accordance with the terms of the Merger Agreement, whether matured or
unmatured, or to be held as collateral for any Obligations or Prevailing Party
Costs, if applicable, thereafter arising.

5.             NO WAIVER; CUMULATIVE RIGHTS.  No failure on the part of the Company to
exercise, and no delay in exercising, any right, remedy or power hereunder,
shall operate as a waiver thereof, nor shall any single or partial exercise by
the Company of any right, remedy or power hereunder preclude any other or
future exercise of any right, remedy or power hereunder.  Each and every right, remedy or power hereby
granted to the Company shall be cumulative and not exclusive of any other, and
may be exercised by the Company at any time or from time to time.

6.             REPRESENTATIONS AND WARRANTIES.  The Guarantor hereby represents and warrants
that:

(a)           the Guarantor has full limited partnership
or limited liability company, as the case may be, power and authority to
execute and deliver this Limited Guarantee and to perform the Obligations, and
the execution, delivery and performance of this Limited Guarantee by Guarantor
has been duly authorized by all necessary limited partnership or limited
liability company, as the case may be, action on the part of Guarantor;

(b)           this Limited Guarantee is the valid and
binding obligation of the Guarantor enforceable in accordance with its terms,
subject to the qualification, however, that

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enforcement of the rights and remedies created thereby is subject to
the effects of bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and similar Laws of general application relating to or affecting
creditors’ rights, and to general equitable principles (whether considered in a
proceeding in equity or at law);

 

(c)           no further approval of the Guarantor’s board
of directors, managers, members, partners, stockholders or other security
holders is required for the execution, delivery and performance of this Limited
Guarantee by the Guarantor and the execution, delivery and performance of this
Limited Guarantee by the Guarantor do not contravene any provision of the
Guarantor’s organizational documents or any Law, regulation, rule, decree,
order, judgment or contractual restriction binding on the Guarantor or any of
its assets;

(d)           all consents, approvals, authorizations,
permits of, filings with and notifications to, any governmental authority
necessary for the due execution, delivery and performance of this Limited
Guarantee by the Guarantor have been obtained or made and all conditions
thereof have been duly complied with, and no other action by, and no notice to
or filing with, any governmental authority or regulatory body is required in
connection with the execution, delivery and performance of this Limited
Guarantee; and

(e)           such Guarantor has the financial capacity to
pay and perform all of its obligations under this Limited Guarantee, and all
funds necessary for such Guarantor to fulfill its Obligations under this
Limited Guarantee shall be available to such Guarantor (or its assignee
pursuant to Section 12 hereof) for as long as this Limited Guarantee shall
remain in effect in accordance with Section 7 hereof.

7.             CONTINUING GUARANTEE; TERMINATION.  This Limited Guarantee shall remain in full
force and effect and shall be binding on the Guarantor, its successors and
assigns until all of the Obligations and Prevailing Party Costs, if applicable,
payable under this Limited Guarantee have been irrevocably paid in full.  Notwithstanding the foregoing and subject to
the proviso below, this Limited Guarantee shall terminate and the Guarantor
shall have no further obligations under this Limited Guarantee upon the
earliest to occur of (i) the Effective Time or (ii) the termination of the Merger
Agreement in circumstances not giving rise to a claim for payment of any
Obligation; provided, that if the Company commences an action with
respect to this Limited Guarantee in a court of competent jurisdiction, this
Limited Guarantee shall remain in full force and effect until the final
resolution of such action.  Notwithstanding
the foregoing, in the event that the Company, any of its Subsidiaries or
Affiliates asserts in any litigation or other proceeding (1) that the
provisions of Section 1 hereof limiting the maximum aggregate liability of the
Guarantor to the Cap plus the Prevailing Party Costs, or the provisions of Sections
2(a), 2(c), 2(d), 7, 9, 10, 11, 16, 17 and the third to last sentence of
Section 3 of this Limited Guarantee, are illegal, invalid or unenforceable in
whole or in part, or that the Guarantor is liable for amounts in excess of its
Obligations hereunder (plus Prevailing Party Costs) as a result of the Merger
Agreement or this Limited Guarantee (which shall include, without limitation,
any losses, damages, obligations or liabilities suffered as a result of the
Merger Agreement and the transactions contemplated

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thereby (including the termination of the Merger Agreement or the
breach of the Merger Agreement by the Buyer Parties)) or (2) that the
Guarantor, any Sponsor Affiliate, or any Buyer Party is liable for any losses,
damages, obligations or liabilities suffered as a result of this Limited
Guarantee or the Merger Agreement and the transactions contemplated thereby
(including as a result of the termination of the Merger Agreement, any breach
of the Merger Agreement by the Buyer Parties or the failure of the transactions
contemplated by the Merger Agreement to be consummated) other than liability of
the Guarantor under this Limited Guarantee and the Other Guarantors under the
Other Guarantees (as limited by the provisions hereof and thereof), then (x)
the Obligations of the Guarantor under this Limited Guarantee shall terminate ab initio and shall thereupon be null and void, (y) if the
Guarantor has previously made any payment under this Limited Guarantee, it
shall be entitled to recover such payments from the Company and (z) neither the
Guarantor nor any Sponsor Affiliate shall have any liability to the Company or
any of its Affiliates with respect to the transactions contemplated by the
Merger Agreement or under this Limited Guarantee.

 

8.             NOTICES.  All notices and other communications given or
made pursuant hereto shall be in writing and shall be deemed to have been duly
given or made as of the date delivered or mailed if delivered personally or
mailed by registered or certified mail (postage prepaid, return receipt
requested) to the parties at the following addresses (or at such other address
for a party as shall be specified by like changes of address which shall be
effective upon receipt) or sent by electronic transmission, with confirmation
received, to the facsimile number specified below:

(a)           If to Guarantor:

ValueAct
Capital Master Fund, L.P.

c/o
ValueAct Capital

435
Pacific Ave., 4th Floor

San
Francisco, CA 94133

Attention:
Allison Bennington

Tel:
(415) 362-3700

Fax: (415) 362-5727

with
copy (which shall not constitute notice) to:

Dechert LLP

Cira Centre 

2929 Arch Street 

Philadelphia, PA
19104-2808

Attn:  Christopher G. Karras

Tel: (215) 994-2412

Fax: (215) 655-2412

(b)           If to the
Company:

ADESA, Inc.

13085 Hamilton Crossing
Blvd.

Carmel, IN 46032

Attention: 
George J. Lawrence

Facsimile No.: 
(317) 249-4505

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Telephone No.: 
(317) 249-4255

 

With a copy (which shall not constitute notice) to:

Morrison & Foerster
LLP

425 Market Street

San Francisco, CA 94105

Attention:  Robert S. Townsend

Facsimile No.:  (415) 268-7522

Telephone No.: 
(415) 268-7080

9.             AMENDMENT.  This Limited
Guarantee may not be amended except by an instrument in writing signed by the
parties hereto.

10.          SEVERABILITY.  If any term or other provision of this
Limited Guarantee is invalid, illegal or incapable of being enforced by rule of
law, or public policy, all other conditions and provisions of this Limited Guarantee
shall nevertheless remain in full force and effect so long as the economic or
legal substance of the transactions contemplated hereby is not affected in any
manner adverse to any party; provided, however, that this Limited
Guarantee may not be enforced without giving effect to the Cap provided in
Section 1 hereof (plus any Prevailing Party Costs) and the provisions of
Sections 2(b) through 2(e), 7 and 10. 
Upon such determination that any term or other provision is invalid,
illegal or incapable of being enforced, the parties hereto shall negotiate in
good faith to modify this Limited Guarantee so as to effect the original intent
of the parties as closely as possible in a mutually acceptable manner in order
that the transactions contemplated hereby be consummated as originally
contemplated to the fullest extent possible; provided, however, that
this Limited Guarantee may not be enforced without giving effect to the Cap
provided in Section 1 hereof (plus any Prevailing Party Costs) and the
provisions of Sections 2(b) through 2(e), 7 and 10.

11.          ENTIRE AGREEMENT. 
This Limited Guarantee constitutes the entire agreement and supersedes
all prior agreements and undertakings, both written and oral, between the
parties with respect to the subject matter hereof.

12.          ASSIGNMENT.  Neither the Company nor the Guarantor
may assign its rights, interests or obligations under this Limited Guarantee to
any other Person (except by operation of Law or otherwise) without the prior
written consent of the Company (in the case of an assignment by the Guarantor)
or the Guarantor (in the case of an assignment by the Company); provided,
that (i) the Guarantor may assign all or a portion of its rights or obligations
hereunder to an Affiliate or to an entity managed or advised by an Affiliate of
the Guarantor, and (ii) if a portion of the Guarantor’s commitment under its
Equity Commitment Letter is assigned in accordance with the terms thereof, then
a corresponding portion of its Obligations hereunder may be assigned to the
same assignee; provided, however, that no such assignment shall relieve
the Guarantor of its Obligations hereunder, unless otherwise agreed in writing
by the Company.

13.          PARTIES IN INTEREST.  This Limited Guarantee shall be
binding upon and inure solely to the benefit of each party hereto, and nothing
in this Limited Guarantee, express or implied, is intended to or shall confer
upon any other Person any right, benefit or remedy of any

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nature whatsoever under or by reason of this Limited Guarantee, except
with respect to an assignee permitted by Section 12 hereof.

 

14.          GOVERNING LAW; JURISDICTION.  This Limited Guarantee shall be governed by,
and construed in accordance with, the Laws of the State of New York
applicable to contracts to be performed entirely within such state, including
all matters of construction, validity and performance, regardless of the laws
that might otherwise govern under applicable principles of conflicts of laws
thereof, except for mandatorily applicable provisions of the Delaware General
Corporation Law.  Each party to this
Limited Guarantee hereby irrevocably agrees that any legal action, suit or
proceeding arising out of or relating to this Limited Guarantee shall be
brought in the United States District Court for the Southern District of New
York or the Supreme Court of the State of New York and each party hereto agrees
not to assert, by way of motion, as a defense or otherwise, in any such action,
suit or proceeding, any claim that it is not subject personally to the
jurisdiction of such court, that the action, suit or proceeding is brought in
an inconvenient forum, that the venue of the action, suit or proceeding is
improper or that this Limited Guarantee, or the subject matter hereof or
thereof may not be enforced in or by such court.  Each party hereto further and irrevocably
submits to the jurisdiction of such court in any action, suit or
proceeding.  The parties agree that any
or all of them may file a copy of this Section 14 with any court as written
evidence of the knowing, voluntary and bargained agreement between the parties
irrevocably to waive any objections to venue or to convenience of forum.

15.          COUNTERPARTS; FACSIMILE DELIVERY.  This Limited Guarantee may be executed in one
or more counterparts, and by the different parties hereto in separate
counterparts, and delivered by facsimile, each of which when executed shall be
deemed to be an original but all of which taken together shall constitute one
and the same agreement.

16.          COSTS AND EXPENSES. 
In any action at law or suit in equity to enforce this Limited Guarantee
or the rights of any of the parties hereunder, the prevailing party in such
action or suit shall be entitled to receive a reasonable sum for its attorneys’
fees and all other reasonable costs and expenses incurred in such action or
suit. Any payment by the Guarantor under this Section 16 shall not reduce,
limit or otherwise affect the other obligations of the Guarantor hereunder or
be counted towards the Cap.

17.          WAIVER OF JURY TRIAL. 
EACH OF THE PARTIES HERETO HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ALL RIGHTS TO TRIAL
BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED UPON CONTRACT,
TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS LIMITED GUARANTEE OR ANY
OF THE TRANSACTIONS CONTEMPLATED HEREBY.

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IN WITNESS WHEREOF, the
Guarantor and the Company have caused this Limited Guarantee to be executed and
delivered as of the date first written above by its officer thereunto duly
authorized.

	
  

  	
  VALUEACT CAPITAL MASTER FUND, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   VA Partners,
  LLC, its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ George F. Hamel, Jr.

  	
   

  
	
   

  	
  Name:

  	
  George F. Hamel, Jr.

  
	
   

  	
  Title:

  	
  Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Accepted and
  Agreed to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ADESA, INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ David G.
  Gartzke

  	
   

  	
   

  
	
   

  	
  Name:

  	
  David G. Gartzke

  	
   

  
	
   

  	
  Title:

  	
  Chairman and
  Chief Executive Officer

  	
   

  
												

 

 10Exhibit 10.5

Indemnification
Agreement

This Indemnification Agreement (this “Agreement”)
is made and entered into as of  [                
     ], 2006, between ADESA, Inc., a Delaware
corporation (the “Company”), and  [                   ]
(“Indemnitee”).

Whereas,
it is essential to the Company to retain and attract talented and experienced
persons as directors and officers;

Whereas,
Indemnitee is an officer and/or director of the Company;

Whereas,
both the Company and Indemnitee recognize the increased risk of litigation and
other claims being asserted against directors and officers of public companies;

Whereas,
the Bylaws of the Company (the “Bylaws”) require the Company to
indemnify and advance expenses to its directors and officers to the full extent
permitted by law;

Whereas,
Indemnitee has been serving and intends to continue serving as a director
and/or officer of the Company in part in reliance on the Bylaws and this
Agreement;

Whereas,
in recognition of the increased difficulty in attracting and retaining the most
capable persons as directors and officers and Indemnitee’s need for (i) substantial
protection against personal liability based on Indemnitee’s reliance on the
Bylaws, (ii) specific contractual assurance that the protection promised by the
Bylaws will be available to Indemnitee, regardless of, among other things, any
amendment to or revocation of the Bylaws or any change in the composition of
the Board of Directors of the Company (the “Board”) or acquisition
transaction relating to the Company, and (iii) an inducement to continue to
provide effective services to the Company as a director and/or officer thereof,
the Company believes it is in the best interests of the Company and its
stockholders to provide for the indemnification of and the advancing of
expenses to Indemnitee to the fullest extent (whether partial or complete)
permitted by law and as set forth in this Agreement, and, to the extent
insurance is maintained, for the continued coverage of Indemnitee under the
Company’s directors’ and officers’ liability insurance policies;

Now,
Therefore, in consideration of the promises and as an inducement to
Indemnitee to serve as a director or officer of the Company directly or, at its
request, another enterprise, the parties hereto, intending to be legally bound
hereby, agree as follows:

1.             Certain
Definitions.  In addition to terms
defined elsewhere herein, the following terms have the following meanings when
used in this Agreement:

 1
 

 

(a)           Affiliate:  has the meaning set forth in Rule 12b-2 of the
regulations promulgated under the Securities Exchange Act of 1934, as amended
(the “Exchange Act”).

(b)           Change in Control:  shall be deemed to have occurred if an event
set forth in any one of the following paragraphs shall have occurred:

(1)           Any
individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2)
of the Exchange Act (a “Person”) becomes the beneficial owner (within
the meaning of Rule 13d-3 promulgated under the Exchange Act) of 35 percent or
more of either (i) the then-outstanding shares of common stock of the Company
(the “Outstanding Company Common Stock”) or (ii) the combined voting
power of the then-outstanding Voting Securities of the Company (the “Outstanding
Company Voting Securities”); provided, however, that the following
acquisitions shall not constitute a Change of Control:  (A) any acquisition directly from the
Company, (B) any acquisition by the Company, (C) any acquisition by any employee
benefit plan (or related trust) sponsored or maintained by the Company or any
Affiliate or (D) any acquisition by any corporation pursuant to a transaction
that complies with Sections 1(b)(3)(i), 1(b)(3)(ii) and 

1(b)(3)(iii);

(2)           Any
time at which individuals who, as of the date hereof, constitute the Board (the
“Incumbent Board”) cease for any reason to constitute at least a
majority of the Board; provided, however, that any individual becoming a
director subsequent to the date hereof whose election, or nomination for
election by the Company’s stockholders, was approved by a vote of at least a
majority of the directors then comprising the Incumbent Board shall be
considered as though such individual were a member of the Incumbent Board, but
excluding, for this purpose, any such individual whose initial assumption of
office occurs as a result of an actual or threatened election contest with
respect to the election or removal of directors or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person other than the
Board;

(3)           Consummation
of a reorganization, merger, statutory share exchange or consolidation or
similar transaction involving the Company or any of its Subsidiaries, a sale or
other disposition of all or substantially all of the assets of the Company, or
the acquisition of assets or stock of another entity by the Company or any of
its Subsidiaries (each, a “Business Combination”), in each case unless,
following such Business Combination, (i) all or substantially all of the
individuals and entities that were the beneficial owners of the Outstanding
Company Common Stock and the

 2
 

 

Outstanding Company Voting Securities immediately
prior to such Business Combination beneficially own, directly or indirectly,
more than 50 percent of the then-outstanding shares of common stock (or, for a
non-corporate entity, equivalent securities) and the combined voting power of
the then-outstanding voting securities entitled to vote generally in the
election of directors (or, for a non-corporate entity, equivalent governing
body), as the case may be, of the entity resulting from such Business
Combination (including, without limitation, an entity that, as a result of such
transaction, owns the Company or all or substantially all of the Company’s
assets either directly or through one or more Subsidiaries) in substantially
the same proportions as their ownership immediately prior to such Business
Combination of the Outstanding Company Common Stock and the Outstanding Company
Voting Securities, as the case may be, (ii) no Person (excluding any
corporation resulting from such Business Combination or any employee benefit
plan (or related trust) of the Company or such corporation resulting from such
Business Combination) beneficially owns, directly or indirectly, 35 percent or
more of, respectively, the then-outstanding shares of common stock of the
corporation resulting from such Business Combination or the combined voting
power of the then-outstanding voting securities of such corporation, except to
the extent that such ownership existed prior to the Business Combination, and
(iii) at least a majority of the members of the board of directors (or, for a
non-corporate entity, equivalent governing body) of the entity resulting from
such Business Combination were members of the Incumbent Board at the time of
the execution of the initial agreement or of the action of the Board providing
for such Business Combination; or 

(4)           Approval
by the stockholders of the Company of a complete liquidation or dissolution of
the Company.

Notwithstanding the
foregoing, in the event of any disposition of all or substantially all of the
assets of the Company pursuant to a spin-off, split-up or similar transaction
(a “Spin-off”), such Spin-off shall not be deemed a Change of Control
if, immediately following the Spin-off, the individuals and entities who were
the beneficial owners, respectively, of the Outstanding Company Common Stock
and Outstanding Company Voting Securities immediately prior to such Business
Combination beneficially own, directly or indirectly, 100 percent of the
outstanding shares of common stock and the combined voting power of the then
outstanding voting securities entitled to vote generally in the election of
directors of the entities resulting from such transaction, in substantially the
same proportions as their ownership, immediately prior to such transaction, of
the Outstanding Company Common Stock and Outstanding Company Voting Securities;
provided, that if another Business Combination involving any resulting entity
occurs in connection with or following a Spin-off, such Business Combination
shall be analyzed separately for purposes of determining whether a Change of
Control has occurred.

(c)           Claim:  means any threatened, asserted, pending or
completed claim, action, suit or proceeding, or any hearing, inquiry or
investigation, whether instituted by the Company or any governmental agency or
any other party, that Indemnitee in good faith believes might lead to the
institution of any such claim, action, suit or proceeding, whether civil,
criminal, administrative, investigative or other, including any arbitration or
other alternative dispute resolution mechanism.

(d)           Company:  includes, in addition to ADESA, Inc., any
Subsidiary of ADESA, Inc. and any constituent corporation (including any
constituent of a constituent) absorbed in a consolidation or merger to which
ADESA, Inc. (or any of its wholly owned subsidiaries) is a party which, if its
separate existence had continued, would have had power and authority to
indemnify its directors or officers, so that if Indemnitee is or was a director
or officer of such constituent corporation, or is or was a director or officer
of such constituent corporation serving at the request of such constituent
corporation as a director, officer, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise, Indemnitee shall stand
in

 3
 

 

the same position under the
provisions of this Agreement with respect to the resulting or surviving
corporation as Indemnitee would have with respect to such constituent
corporation if its separate existence had continued.

(e)           Expenses:  include attorneys’ fees and all other costs,
expenses and obligations (including experts’ fees, court costs, retainers,
transcript fees, duplicating costs, printing and binding costs, as well as
telecommunications, postage and courier charges) paid or incurred in connection
with investigating, defending, settling, being a witness in or participating in
(including on appeal), or preparing to investigate, defend, be a witness in or
participate in, any Claim relating to any Indemnifiable Event.

(f)            Indemnifiable Amounts:  means any and all Expenses, liability, loss
and damages (including judgments, fines, penalties, ERISA excise taxes and
amounts paid in settlement and all interest, assessments or other charges paid
or payable in connection with or in respect of such Expenses, judgments, fines,
penalties, excise taxes or amounts paid in settlement) arising out of or
resulting from any Claim relating to an Indemnifiable Event.

(g)           Indemnifiable Event:  means any event or occurrence, whether
occurring before or after the date of this Agreement, related to the fact that
Indemnitee is or was or is claimed to be an officer and/or director or
fiduciary of the Company, or is or was serving at the request of the Company as
a director, officer, employee, trustee, agent or fiduciary of another
corporation, limited liability company, partnership, joint venture, employee
benefit plan, trust or other entity or other enterprise, or by reason of
anything done or not done by Indemnitee in any such capacity, or by reason of
the fact that Indemnitee personally guaranteed any obligation of the Company.

(h)           Independent Legal Counsel:  means an attorney or firm of attorneys,
selected in accordance with the provisions of Section 3, who is
experienced in matters of corporate law and who shall not have otherwise
performed services for the Company or Indemnitee within the last five years
(other than with respect to matters concerning the rights of Indemnitee under
this Agreement, or of other indemnitees under similar indemnity agreements).  Such Independent Legal Counsel shall not
include any person who, under the applicable standards of professional conduct
then prevailing, would have a conflict of interest in representing either the
Company or Indemnitee in any action to determine Indemnitee’s rights under this
Agreement.

(i)            Other enterprise or another
enterprise:  means any other
corporation or any partnership, joint venture, trust, employee benefit plan or
enterprise of which such person is or was serving at the request of the Company
as a director, officer, employee or agent.

(j)            Reviewing Party:  means any appropriate person or body
consisting of a member or members of the Board, any other person or body
appointed by the Board who is not a party to the particular Claim for which
Indemnitee is seeking indemnification, or Independent Legal Counsel.

(k)           Subsidiary:  means any corporation, partnership or other
entity or organization of which more than 50% of the outstanding voting securities
or other ownership

 4
 

 

interests having by their terms
ordinary voting power to elect a majority of the board of directors is directly
or indirectly owned or controlled by the Company, by one or more of its
Subsidiaries (as defined in the preceding clause) or by the Company and any one
or more of its Subsidiaries.

(l)            Voting Securities:  means any securities of the Company which vote
generally in the election of directors.

2.             Basic
Indemnification Arrangement; Advancement of Expenses.

(a)           In the event Indemnitee was, is or
becomes a party to or witness or other participant in, or is threatened to be
made a party to or witness or other participant in, a Claim by reason of (or
arising in part out of) an Indemnifiable Event, the Company shall indemnify Indemnitee
to the fullest extent permitted by law as soon as practicable but in any event
no later than thirty (30) days after written demand is presented to the
Company, against any and all Indemnifiable Amounts.

(b)           If so requested by Indemnitee, the
Company shall advance (within two business days of such request) any and all
Expenses incurred by Indemnitee (an “Expense Advance”).  The Company shall, in accordance with such
request (but without duplication), either (i) pay such Expenses on behalf
of Indemnitee, or (ii) reimburse Indemnitee for such Expenses.  Indemnitee’s right to an Expense Advance is
absolute and shall not be subject to any prior determination by the Reviewing
Party that Indemnitee has satisfied any applicable standard of conduct for
indemnification.

(c)           Notwithstanding anything in this
Agreement to the contrary, Indemnitee shall not be entitled to indemnification
or any Expense Advances pursuant to this Agreement (i) in connection with any
Claim initiated by Indemnitee against the Company or any director or officer of
the Company unless (x) the Company has joined in or the Board has
authorized or consented to the initiation of such Claim or (y) the Claim
is one to enforce Indemnitee’s rights under this Agreement or (ii) on account
of any suit in which judgment is rendered against Indemnitee pursuant to
Section 16(b) of the Exchange Act for an accounting of profits made from the
purchase or sale by the Indemnitee of securities of the Company.

(d)           Notwithstanding the foregoing,
(i) the indemnification obligations of the Company under Section 2(a)
shall be subject to the condition that the Reviewing Party shall not have
determined (in a written opinion, in any case in which the Independent Legal
Counsel referred to in Section 3 hereof is involved) that Indemnitee would
not be permitted to be indemnified under applicable law, and (ii) the
obligation of the Company to make an Expense Advance pursuant to Section 2(b)
shall be subject to the condition that, if, when and to the extent that the
Reviewing Party determines that Indemnitee would not be permitted to be so
indemnified under applicable law, the Company shall be entitled to be
reimbursed by Indemnitee (who hereby agrees to reimburse the Company) for all
such amounts theretofore paid (it being understood and agreed that the
foregoing agreement by Indemnitee shall be deemed to satisfy any requirement
that Indemnitee provide the Company with an undertaking to repay any Expense
Advance if it is ultimately determined that Indemnitee is not entitled to indemnification
under applicable law); provided, however, that if Indemnitee has commenced or
thereafter commences legal proceedings in a court of competent jurisdiction to
secure a determination that

 5
 

 

Indemnitee should be
indemnified under applicable law, any determination made by the Reviewing Party
that Indemnitee would not be permitted to be indemnified under applicable law
shall not be binding and Indemnitee shall not be required to reimburse the
Company for any Expense Advance until a final judicial determination is made
with respect thereto (as to which all rights of appeal therefrom have been
exhausted or lapsed).  Indemnitee’s
undertaking to repay such Expense Advances shall be unsecured and
interest-free.  If there has not been a
Change in Control, the Reviewing Party shall be selected by the Board, and if
there has been a Change in Control, the Reviewing Party shall be the
Independent Legal Counsel referred to in Section 3 hereof.  If there has been no determination by the
Reviewing Party or if the Reviewing Party determines that Indemnitee
substantively would not be permitted to be indemnified in whole or in part
under applicable law, Indemnitee shall have the right to commence litigation in
any court in the States of Indiana or Delaware having subject matter
jurisdiction thereof and in which venue is proper seeking an initial
determination by the court or challenging any such determination by the
Reviewing Party or any aspect thereof, including the legal or factual bases
therefor, and the Company hereby consents to service of process and to appear
in any such proceeding.  The basis of
such indemnification by virtue of a court determination shall be a
determination by such court that indemnification of Indemnitee is proper in the
circumstances because Indemnitee has met the applicable standard of conduct.  Neither a contrary determination in the
specific case under this Section 2(d) nor the absence of any determination
hereunder shall be a defense to such application or create a presumption that
Indemnitee has not met any applicable standard of conduct.  Notice of any application for indemnification
pursuant to this Section 2(d) shall be given to the Company promptly upon
the filing of such application.  If
successful, in whole or in part, Indemnitee shall also be entitled to be paid
the Expenses of prosecuting such application.  Any determination by the Reviewing Party
otherwise shall be conclusive and binding on the Company and Indemnitee.

3.             Change
in Control.  The Company agrees that
if there is a Change in Control of the Company then with respect to all matters
thereafter arising concerning the rights of Indemnitee to indemnity payments
and Expense Advances under this Agreement or any other agreement, applicable
law, the Certificate of Incorporation of the Company (the “Charter”) or
the Bylaws now or hereafter in effect relating to indemnification for
Indemnifiable Events, the Company shall seek legal advice only from Independent
Legal Counsel selected by Indemnitee and approved by the Company (which
approval shall not be unreasonably delayed, conditioned or withheld).  Such counsel, among other things, shall
render its written opinion to the Company and Indemnitee as to whether and to
what extent Indemnitee would be permitted to be indemnified under applicable
law.  The Company agrees to pay the
reasonable fees of the Independent Legal Counsel referred to above and to
indemnify fully such counsel against any and all expenses (including attorneys’
fees), claims, liabilities and damages arising out of or relating to this
Agreement or its engagement pursuant hereto.

4.             Indemnification
for Additional Expenses.  The Company
shall indemnify Indemnitee against any and all Expenses and, if requested by
Indemnitee, shall provide such Expense Advances to Indemnitee subject to and in
accordance with Section 2(b), which are incurred by Indemnitee in
connection with any action brought by Indemnitee for (i) indemnification
or payment of Expense Advances by the Company under this Agreement, the Bylaws
or the Charter now or hereafter in effect and/or (ii) recovery under any
directors’ and officers’ liability insurance policies maintained by the Company,
regardless of whether

 6
 

 

Indemnitee ultimately is determined to be entitled to such
indemnification, Expense Advance or insurance recovery, as the case may be.

5.             Partial
Indemnity, Etc.  If Indemnitee is
entitled under any provision of this Agreement to indemnification by the
Company for some or a portion of the Expenses or other Indemnifiable Amounts in
respect of a Claim but not, however, for the total amount thereof, the Company
shall nevertheless indemnify Indemnitee for the portion thereof to which
Indemnitee is entitled.  Moreover,
notwithstanding any other provision of this Agreement, to the extent that
Indemnitee has been successful on the merits or otherwise in defense of any or
all Claims relating in whole or in part to an Indemnifiable Event or in defense
of any issue or matter therein, including dismissal without prejudice,
Indemnitee shall be indemnified against all Expenses incurred in connection
therewith.

6.             Witness
Expenses.  The Company agrees to
compensate Indemnitee for the reasonable value of Indemnitee’s time spent, and
to reimburse Indemnitee for all Expenses incurred by Indemnitee, in connection
with being a witness, or if Indemnitee is threatened to be made a witness, with
respect to any Claim involving the Company to which Indemnitee is not a party.

7.             Burden
of Proof.  In connection with any
determination by the Reviewing Party or otherwise as to whether Indemnitee is
entitled to be indemnified hereunder the Reviewing Party or court shall presume
that Indemnitee has satisfied the applicable standard of conduct and is
entitled to indemnification, and the burden of proof shall be on the Company to
establish, by clear and convincing evidence, that Indemnitee is not so
entitled.

8.             Reliance
as Safe Harbor.  For purposes of this
Agreement, Indemnitee shall be deemed to have acted in good faith and in a
manner Indemnitee reasonably believed to be in or not opposed to the best
interests of the Company, if Indemnitee’s actions or omissions are based on the
records or books of account of the Company or another enterprise, or on
information supplied to such person by the officers of the Company or another
enterprise in the course of their duties, or on the advice of legal counsel for
the Company or another enterprise or on information or records given or reports
made to the Company or another enterprise by an independent certified public
accountant or by an appraiser or other expert selected with reasonable care by
the Company or another enterprise.  In
addition, the knowledge and/or actions, or failures to act, of any director,
officer, agent or employee of the Company shall not be imputed to Indemnitee
for purposes of determining the right of indemnity hereunder.  The provisions of this Section 8 shall not be
deemed to be exclusive or to limit in any way the other circumstances in which
Indemnitee may be deemed to have met the applicable standard of conduct.

9.             No
Other Presumptions.  For purposes of
this Agreement, the termination of any Claim by judgment, order, settlement
(whether with or without court approval) or conviction, or upon a plea of nolo
contendere, or its equivalent, shall not create a presumption that Indemnitee
did not meet any particular standard of conduct or have any particular belief
or that a court has determined that indemnification is not permitted by
applicable law.  In addition, neither the
failure of the Reviewing Party to have made a determination as to whether
Indemnitee has met any particular standard of conduct or had any particular
belief, nor an actual determination by the

 7
 

 

Reviewing Party that Indemnitee has not met such standard of conduct or
did not have such belief, prior to the commencement of legal proceedings by
Indemnitee to secure a judicial determination that Indemnitee should be
indemnified under applicable law shall be a defense to Indemnitee’s claim or
create a presumption that Indemnitee has not met any particular standard of
conduct or did not have any particular belief.

10.           Nonexclusivity,
Etc.  The rights of Indemnitee
hereunder shall be in addition to any other rights Indemnitee may have under
the Bylaws or the Charter or applicable law or otherwise.  To the extent that a change in applicable law
(whether by statute or judicial decision) permits greater indemnification by
agreement than would be afforded currently under the Bylaws or the Charter or
this Agreement, it is the intent of the parties hereto that Indemnitee shall
enjoy by this Agreement the greater benefits so afforded by such change.

11.           Liability
Insurance.  To the extent the Company
maintains an insurance policy or policies providing directors’ and officers’
liability insurance, Indemnitee shall be covered by such policy or policies, in
accordance with its or their terms, to the maximum extent of the coverage
available for any director or officer of the Company.

12.           Period
of Limitations.  No legal action
shall be brought and no cause of action shall be asserted by or on behalf of
the Company (or any Affiliate of the Company) against Indemnitee, Indemnitee’s
spouse, heirs, executors or personal or legal representatives after the
expiration of two years from the date of accrual of such cause of action, and
any claim or cause of action of the Company shall be extinguished and deemed
released unless asserted by the timely filing of a legal action within such
period; provided, however, that if any shorter period of limitations is
otherwise applicable to any such cause of action such shorter period shall
govern.

13.           Amendments,
Etc.  No supplement, modification or
amendment of this Agreement shall be binding unless executed in writing by both
of the parties hereto.  No waiver of any
of the provisions of this Agreement shall be deemed or shall constitute a
waiver of any other provisions hereof (whether or not similar) nor shall such
waiver constitute a continuing waiver. 
Except as specifically provided herein, no failure to exercise or any
delay in exercising any right or remedy hereunder shall constitute a waiver
thereof.

14.           Subrogation.  In the event of payment under this Agreement,
the Company shall be subrogated to the extent of such payment to all of the
rights of recovery of Indemnitee, who shall execute all papers reasonably
required and shall do everything that may be reasonably necessary to secure
such rights, including the execution of such documents necessary to enable the
Company effectively to bring suit to enforce such rights.

15.           No
Duplication of Payments.  The Company
shall not be liable under this Agreement to make any payment in connection with
any Claim made against Indemnitee to the extent Indemnitee has otherwise
actually received payment (under any insurance policy, the Bylaws, the Charter
or otherwise) of the amounts otherwise indemnifiable hereunder.

16.           Defense
of Claims.  The Company shall be
entitled to participate in the defense of any Claim relating to an
Indemnifiable Event or to assume the defense thereof, with counsel reasonably
satisfactory to Indemnitee; provided that if Indemnitee believes, after
consultation

 8
 

 

with counsel selected by Indemnitee, that (i) the use of counsel
chosen by the Company to represent Indemnitee would present such counsel with
an actual or potential conflict of interest, (ii) the named parties in any
such Claim (including any impleaded parties) include both the Company and
Indemnitee and Indemnitee concludes that there may be one or more legal
defenses available to him or her that are different from or in addition to
those available to the Company, or (iii) any such representation by such
counsel would be precluded under the applicable standards of professional
conduct then prevailing, then Indemnitee shall be entitled to retain separate
counsel (but not more than one law firm plus, if applicable, local counsel in
respect of any particular Claim) at the Company’s expense.  The Company shall not waive any privilege or
right available to Indemnitee in any such Claim without Indemnitee’s prior
written consent.  The Company shall not
be liable to Indemnitee under this Agreement for any amounts paid in settlement
of any Claim relating to an Indemnifiable Event effected without the Company’s
prior written consent.  The Company shall
not, without the prior written consent of Indemnitee, effect any settlement of
any Claim relating to an Indemnifiable Event which Indemnitee is or could have
been a party unless such settlement solely involves the payment of money and
includes a complete and unconditional release of Indemnitee from all liability
on all claims that are the subject matter of such Claim.  Neither the Company nor Indemnitee shall
unreasonably withhold its or his or her consent to any proposed settlement;
provided that Indemnitee may withhold consent to any settlement that does not
provide a complete and unconditional release of Indemnitee.  If Indemnitee is the subject of or is
implicated in any way during any proceeding, the Company will share with
Indemnitee any information it has turned over to any third parties concerning
the investigation.

17.           Binding
Effect, Etc.  This Agreement shall be
binding upon and inure to the benefit of and be enforceable by the parties
hereto and their respective successors, (including any direct or indirect
successor by purchase, merger, consolidation or otherwise to all, substantially
all, or a substantial part, of the business and/or assets of the Company),
assigns, spouses, heirs, executors and personal and legal representatives.  The Company shall require and cause any
successor (whether direct or indirect by purchase, merger, consolidation, or
otherwise) to all or substantially all of the business and/or assets of the
Company, by written agreement in form and substance satisfactory to Indemnitee
and his or her counsel, expressly to assume and agree to perform this Agreement
in the same manner and to the same extent that the Company would be required to
perform if no such succession had taken place. 
This Agreement shall continue in effect regardless of whether Indemnitee
continues to serve as an officer and/or director of the Company or of any other
entity or other enterprise at the Company’s request.

18.           Security.  To the extent requested by Indemnitee and
approved by the Company’s Board of Directors, the Company may at any time and
from time to time provide security to Indemnitee for the obligations of the
Company hereunder through an irrevocable bank line of credit, funded trust or
other collateral or by other means.  Any
such security, once provided to Indemnitee, may not be revoked or released
without the prior written consent of such Indemnitee.

19.           Severability.  The provisions of this Agreement shall be
severable in the event that any of the provisions hereof (including any
provision within a single section, paragraph or sentence) are held by a court
of competent jurisdiction to be invalid, void or otherwise unenforceable in any
respect, and the validity and enforceability of any such provision in every

 9
 

 

other respect and of the remaining provisions hereof shall not be in
any way impaired and shall remain enforceable to the fullest extent permitted
by law.  Furthermore, to the fullest
extent possible, the provisions of this Agreement (including, without
limitation, each portion of this Agreement containing any provision held to be
invalid, void or otherwise unenforceable, that is not itself invalid, void or
unenforceable) shall be construed so as to give effect to the intent manifested
by the provision held invalid, illegal or unenforceable.

20.           Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall for all purposes be deemed to be an original
but all of which together shall constitute one and the same agreement.  Only one such counterpart signed by the party
against whom enforceability is sought needs to be produced to evidence the
existence of this Agreement.

21.           Headings.  The headings of the sections and paragraphs
of this Agreement are inserted for convenience only and shall not be deemed to
constitute part of this Agreement or to affect the construction or
interpretation thereof.

22.           Governing
Law.  This Agreement shall be
governed by and construed and enforced in accordance with the laws of the State
of Delaware applicable to contracts made and to be performed in such state
without giving effect to the principles of conflicts of laws.

[Signatures on Next Page]

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In
Witness Whereof, the parties hereto have executed this Agreement as of
the date first above written.

	
  

  	
  ADESA, Inc.,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  Indemnitee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  

 

 11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00115-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00115-of-00352.parquet"}]]