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Exhibit 10.18    
    

 
 

ADESA, INC.
  
    EMPLOYEE STOCK PURCHASE PLAN
  
    ARTICLE I
  
    PURPOSE    
    

        1.01 The
purpose of this ADESA, Inc. Employee Stock Purchase Plan (the "Plan") is to provide employees of ADESA, Inc. (the "Company") and its Subsidiary
Corporations with an opportunity to acquire an equity interest in the Company through the purchase of shares of the Company's common stock. It is the intention of the Company that the Plan qualify as
an "employee stock purchase plan" under Section 423 of the Code. Accordingly, the provisions of the Plan shall be construed in a manner which is consistent with the requirements of that Section
of the Code. 

ARTICLE II  

 DEFINITIONS  

        2.01 "Account"
means the bookkeeping account maintained on behalf of each Participant by the Custodian for the purpose of investing in Company Stock and engaging in other
transactions permitted under the Plan. 

        2.02 "Board"
means the Board of Directors of the Company. 

        2.03 A
"Change in Control" shall be deemed to have occurred if an event set forth in any one of the following paragraphs shall have occurred: 

	(i)
	any
Person is or becomes the Beneficial Owner (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Company
(not including in the securities beneficially owned by such Person any securities acquired directly from the Company or any of its affiliates) representing 25% or more of the combined voting power of
the Company's then outstanding securities, excluding any Person who becomes such a Beneficial Owner in connection with a transaction described in clause (A) of paragraph (iii) below; or

	(ii)
	the
following individuals cease for any reason to constitute a majority of the number of directors then serving on the Board: individuals who, on the date hereof,
constitute the Board and any new director (other than a director whose initial assumption of office is in connection with an actual or threatened election contest, including but not limited to a
consent solicitation, relating to the election of directors of the Company) whose appointment or election by the Board or nomination for election by the Company's stockholders was approved or
recommended by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors on the date hereof or whose appointment, election or
nomination for election was previously so approved or recommended; or

	(iii)
	there
is consummated a merger or consolidation of the Company or any direct or indirect subsidiary of the Company with any other corporation, other than a merger or
consolidation immediately following which the individuals who comprise the Board immediately prior thereto constitute at least a majority of the Board of (A) the entity surviving such merger or
consolidation or (B) the ultimate parent of the Company or the entity surviving such merger if the Company or the entity surviving such merger is then a subsidiary; or

	(iv)
	the
stockholders of the Company approve a plan of complete liquidation or dissolution of the Company or there is consummated an agreement for the sale or disposition by
the 

 

Company
of all or substantially all of the Company's assets, other than (a) a sale or disposition by the Company of all or substantially all of the Company's assets to an entity, at least 60%
of the combined voting power of the voting securities of which are owned by stockholders of the Company following the completion of such transaction in substantially the same proportions as their
ownership of the Company immediately prior to such sale or (b) other than a sale or disposition by the Company of all or substantially all of the Company's assets immediately following which
the individuals who comprise the Board immediately prior thereto constitute at least a majority of the board of directors of the entity to which such assets are sold or disposed or, if such entity is
a subsidiary, or the ultimate parent thereof. 

        Notwithstanding
the foregoing, a "Change in Control" shall not be deemed to have occurred by virtue of the consummation of any transaction or series of integrated transactions
immediately following which the holders of the common stock of the Company immediately prior to such transaction or series of transactions continue to have substantially the same proportionate
ownership in an entity which owns all or substantially all of the assets of the Company immediately following such transaction or series of transactions. 

        2.04 "Code"
means the Internal Revenue Code of 1986, as amended from time to time, including regulations issued thereunder and successor provisions and regulations
thereunder. 

        2.05 "Committee"
means the individuals appointed by the Board to administer the Plan. 

        2.06 "Company
Stock" means Company common stock and such other securities as may be substituted (or resubstituted) for Company Stock, as determined by the Committee, and as
adjusted from time to time in accordance with Section 4.02. 

        2.07 "Compensation"
means base cash remuneration that is paid to an Employee by the Company or a Subsidiary Corporation during the calendar year for the performance of
services and includible in gross income, including, and limited to, regular earnings, regular vacation pay, Code Sections 125 and 401(k) elective payroll deduction contributions, and elective payroll
deduction contributions made under the Plan. 

        2.08 "Custodian"
means the person or entity designated by the Board to act as custodian for the Plan and any successor thereto. 

        2.09 "Effective
Date" means the date upon which the Plan has received Board approval (or reapproval); provided, however, that the Board shall determine the appropriate date
after the Effective Date to implement the first Purchase Period. 

        2.10 "Employee"
means any person who is employed by the Company or a Subsidiary Corporation as a common law employee. Any individual who performs services for the Company or
a Subsidiary Corporation solely through a leasing or employment agency shall not be considered an Employee. 

        2.11 "Exchange
Act" shall mean the Securities Exchange Act of 1934, as amended from time to time. 

        2.12 "Exercise
Date" means the first Trading Day of every month. 

        2.13 "Market
Value" means the market value of a share of Company Stock, which, as of any given date, shall be the average of the highest and lowest sales prices, as
published in the Wall Street Journal, of a share of Company Stock on the New York Stock Exchange for trades on the date as of which such value is being determined; provided, however that (i) if
no trading occurs on such day, the Market Value shall be the average of the highest and lowest bid price or, (ii) if that day is not a Trading Day, then the average of the highest and lowest
sales prices on the most recent previous Trading Day, or (iii) in the event Company Stock is not listed on the New York Stock Exchange, then 

2

 

the
Market Value shall be either (A) the reported mean price on the last preceding date on which a composite sale or sales were effected on any exchange on which the Company Stock is traded, or
(B) as determined by the Committee. 

        2.14 "Participant"
means any Employee who (i) is eligible to participate in the Plan under Section 5.01, and (ii) elects to participate. 

        2.15 "Participation
Form" means the form prescribed by the Committee by which an Employee can elect to participate in the Plan. 

        2.16 "Person"
shall have the meaning set forth in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof, except that such term
shall not include (i) the Company or any Subsidiary Corporation, (ii) a trustee or other fiduciary holding securities under an employee pension benefit plan of the Company or any
Subsidiary Corporation, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities, or (iv) a corporation owned, directly or indirectly, by the
stockholders of the Company in substantially the same proportions as their ownership of Company Stock. 

        2.17 "Plan"
means this ADESA, Inc. Employee Stock Purchase Plan. 

        2.18 "Purchase
Price" means, unless otherwise determined by the Committee at any time to be higher, an amount equal to 95 percent of the Market Value of one
(1) share of Company Stock on the Exercise Date. 

        2.19 "Purchase
Period" means each calendar month commencing on or after the Effective Date as specified by the Board in accordance with Section 2.09. 

        2.20 "Purchase
Right" means the right granted to a Participant to purchase shares of Company Stock under the Plan on an Exercise Date. 

        2.21 "Reserves"
means the number of shares of Company Stock covered by all Purchase Rights which have not yet been exercised and the number of shares of Company Stock which
have been authorized for issuance under the Plan but which have not yet become subject to Purchase Rights. 

        2.22 "Subsidiary
Corporation" means any present or future "parent" or "subsidiary" corporation of the Company, as defined in Section 424(e) or 424(f) of the Code;
provided, however, that any subsidiary of the Company which is domiciled in the country of Mexico shall not be treated as a Subsidiary Corporation under the Plan. 

        2.23 "Trading
Day" means a day on which the New York Stock Exchange is open for trading. 

ARTICLE III  

 ADMINISTRATION  

        3.01    Administration by Committee.    The Plan shall be administered by the Committee. Subject to the provisions of
the Plan, the Committee shall have full and discretionary authority to interpret and construe all provisions of the Plan, to adopt rules and regulations for administering the Plan, and to make all
other determinations deemed necessary or advisable for administering the Plan. The Committee's determinations with respect to the foregoing matters shall be final and conclusive as to all persons;
provided, however, that all Participants shall have the same rights and privileges hereunder within the meaning of Section 423(b)(5) of the Code. Such rules and regulations may include, without
limitation, (a) a minimum payroll deduction amount required to participate in the Plan; (b) a limitation on the number or frequency of changes in payroll deductions; (c) a method
for establishing the exchange rate for amounts withheld in a currency other than U.S. Dollars; (d) a payroll deduction greater or less than the amount elected by a Participant in order to
adjust for the Company's delay or mistake in processing a purchase of Company Stock; and (e) in otherwise effecting a Participant's 

3

 

election
or as advisable to comply with the requirements of Section 423 of the Code. The Committee may, in its discretion, delegate some or all of its authority to one or more Employees or
officers of the Company or a Subsidiary Corporation. 

        3.02    Meetings of Committee.    The Committee shall hold its meetings at such times and places as it deems advisable
and may hold telephonic meetings. A majority of its members shall constitute a quorum. All determinations of the Committee shall be made by a majority of its members. The Committee may correct any
defect or omission or reconcile any inconsistency in the Plan, in the manner and to the extent it shall deem desirable. Any decision or determination reduced to writing and signed by a majority of the
members of the Committee shall be as fully effective as if it had been made by a majority vote at a meeting duly called and held. 

        3.03    No Personal Liability.    No member of the Committee nor any officer or Employee of the Company or a
Subsidiary Corporation acting at the direction, or on behalf, of the Committee shall be personally liable for any action or determination taken or made in good faith with respect to the Plan, and
shall, to the extent permitted by law, be fully indemnified and protected by the Company with respect to any such action or determination. 

        3.04    Custodian.    The Custodian will act as custodian under the Plan, and will perform such duties as are set
forth in the Plan and in any agreement between the Company and the Custodian. The Custodian
will establish and maintain, as agent for each Participant, an Account and any subaccounts as may be necessary or desirable for the administration of the Plan. 

        3.05    Expenses of Administration.    The costs and expenses incurred in the administration of the Plan and
maintenance of Accounts will be paid by the Company, including annual fees of the Custodian and any brokerage fees and commissions for the purchase of Company Stock upon reinvestment of dividends and
distributions. The foregoing notwithstanding, the Committee may impose a fee to sell shares of Company Stock held in a Participant's Account, including a fee per transaction plus an additional amount
for each share of Company Stock sold. In addition, the Custodian may impose or pass through to Participants a reasonable fee for the withdrawal of Company Stock in the form of stock certificates and
reasonable fees for other services associated with the administration of the Plan. All costs that may be passed through to Participants shall be approved in writing by the Committee and communicated
to Participants. Unless otherwise determined by the Board, under no circumstances shall the Company pay any brokerage fees and commissions for the sale of Company Stock acquired under the Plan by a
Participant. 

ARTICLE IV  

 SHARES SUBJECT TO THE PLAN  

        4.01    Maximum Number of Shares Issuable.    Subject to adjustment as provided in Section 4.02, five hundred
thousand (500,000) shares of Company Stock shall be reserved for sale under the Plan. Such shares shall be authorized and unissued shares or shares which have been reacquired by the Company in
individual purchases or on the open market. If the total number of shares which would otherwise be subject to Purchase Rights exceeds the number of shares of Company Stock then available under the
Plan (after deduction of all shares of Company Stock for which Purchase Rights have been exercised) each Participant shall have the right to purchase a number of shares of Company Stock that is equal
to the total number of available shares multiplied by a fraction, the numerator of which is the amount of payroll deductions or other cash credited to a Participant's Account for the Purchase Period
and the denominator of which is the total amount of payroll deductions or other cash credited to the Accounts of all Participants for such Purchase Period. In such event, the Committee shall give
written notice to each Participant of such reduction of the number of Purchase Rights and shall similarly reduce the rate of payroll deductions, if necessary. 

4

 

        4.02    Adjustments for Changes in Company Stock.    The Committee shall proportionately adjust the Reserves and the
price per share and the number of shares of Company Stock covered by each
Purchase Right which has not yet been exercised for any increase or decrease in the number of issued shares of Company Stock resulting from a stock split, reverse stock split, spinoff, stock dividend,
combination or reclassification of the Company Stock, or other extraordinary corporate event which affects the Company Stock in order to prevent dilution or enlargement of the rights of Participants
hereunder. The determination of the Committee with respect to any such adjustment shall be final, binding and conclusive. In the event of a Change in Control, the Purchase Period shall terminate
immediately, unless otherwise provided by the Committee. 

ARTICLE V  

 ELIGIBILITY AND PARTICIPATION  

        5.01    Employees Eligible to Participate.    Each Employee who is customarily employed as a full time employee of the
Company or a Subsidiary Corporation shall be eligible to participate in the Plan beginning on the later of the Effective Date or the date that is the six (6) month anniversary of the date when
he or she first became an Employee. Each Employee who is customarily employed as a part time Employee of the Company or a Subsidiary Corporation shall be eligible to participate in the Plan beginning
on the later of the Effective Date or the date as of which he or she has been credited with at least one thousand (1,000) "hours of service" (as that term is defined in the ADESA, Inc.
Employees' 401(k) Plan). All employment with the Company and/or a Subsidiary Corporation prior to the Effective Date shall be counted for purposes of determining eligibility to participate in the
Plan. For purposes of this Section 5.01, whether an Employee is "customarily employed" shall be determined by the Committee based on the Company's or Subsidiary Corporation's policies and
procedures in effect from time to time. 

        5.02    Initial Participation.    An eligible Employee shall become a Participant by completing and signing a
Participation Form and returning it to the Company's Human Resources Department not later than the fifteenth (15th) day of the calendar month preceding a Purchase Period (unless a later
time for filing such instructions is set by the Committee for all Employees with respect to a given Purchase Period); or, with respect to a new or rehired Employee, no later than fifteen
(15) days after he or she first becomes eligible to participate in the Plan (unless a later time for filing such instructions is set by the Committee for all Employees with respect to a given
Purchase Period). Payroll deductions for an Employee shall commence with the first payroll period that begins after the date such Participation Form is processed by the Company's Human Resources
Department. 

        5.03    Continued Participation.    Once an Employee becomes a Participant, he or she shall automatically continue to
participate in the Plan, provided that such Participant continues to be eligible under Section 5.01 and has not withdrawn from the Plan upon termination of employment pursuant to
Section 9.01. A Participant is not thereafter required to file a new Participation Form, but may file a new Participation Form in accordance with the requirements of
Section 5.02 if he or she wishes to change any elections contained in his then effective Participation Form. 

        5.04    Leave of Absence.    Unless a Participant on an employer approved leave of absence returns to employment with
the Company or a Subsidiary Corporation immediately after the end of such leave of absence, such Participant shall be deemed to have terminated employment as of the last day of such leave of absence
and the provisions of Section 9.01 shall apply. 

        5.05    Participation Following Reemployment.    A former Participant whose participation in the Plan ceased due to a
termination of employment with the Company and all Subsidiary Corporations shall upon his or her reemployment by the Company or a Subsidiary Corporation be reinstated as a Participant as of his or her
reemployment commencement date. 

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        A
former Employee who was not eligible to participate in the Plan during his or her previous period of employment with the Company or a Subsidiary Corporation shall, upon his or her
reemployment by the Company or a Subsidiary Corporation, become a Participant in accordance with the eligibility requirements of Section 5.01. In the case of a former Employee who is rehired
within one year from his or her most recent employment termination date, for purposes of Section 5.01 he or she shall be credited with the number of full and partial months, in the case of a
salaried employee, or the number of hours of service, in the case of an hourly employee, completed by such rehired employee during his or her most recent prior period of employment by the Company or a
Subsidiary Corporation. In the case of a former Employee who is not rehired within one year from his or her most recent employment termination date, he or she shall be treated as a new employee for
purposes of Section 5.01. 

        5.06    Ineligible Employees.    Notwithstanding any provisions of the Plan to the contrary, no Employee shall be
granted a Purchase Right to the extent that: 

	(a)
	immediately
after the grant, such Employee would own stock, and/or hold or own options, possessing five percent (5%) or more of the total combined voting power or value of all classes
of stock of the Company or Subsidiary Corporation (determined under the rules of Sections 423(b)(3) and 424(d) of the Code);

	(b)
	immediately
after the grant, such Employee's right to purchase Company Stock under all employee stock purchase plans (as defined in Section 423 of the Code) of the Company and
any related company would accrue at a rate which exceeds $25,000 in Market Value of such Company Stock (determined at the time such purchase right is granted) for each calendar year in which such
purchase right would be outstanding at any time; or

	(c)
	such
Employee is an officer or director who is subject to the reporting requirements under Section 16(a) of the Exchange Act. 

ARTICLE VI  

 OFFERINGS  

        6.01    In General.    Purchase Periods shall commence on or after the Effective Date as determined by the Board in
its sole discretion and shall terminate effective as of the date specified by the Board in its sole discretion. If the first or last day of a Purchase Period is not a day on which the New York Stock
Exchange is open for trading, the Committee shall specify the Trading Day that will be deemed to be the first or last day, as the case may be, of the Purchase Period. 

        6.02    Purchase Periods.    Each calendar month, commencing with the calendar month specified by the Board in
accordance with Section 2.09, shall constitute a Purchase Period. 

        6.03    Restriction on Issuance of Shares.    Notwithstanding any other provision of the Plan to the contrary, the
issuance of shares of Company Stock hereunder shall be subject to compliance with all applicable requirements of foreign, federal and state securities laws. A Purchase Right cannot be exercised if the
issuance of shares on such exercise would constitute a violation of any applicable foreign, federal or state securities laws or other law or regulation. In addition, no Purchase Right can be exercised
unless (a) a registration statement under the Securities Act of 1933, as amended, shall at the Exercise Date be in effect with respect to the shares issuable on the exercise of the Purchase
Right; or (b) in the opinion of legal counsel to the Company, the shares issuable on the exercise of the Purchase Right can be issued in accordance with the terms of an applicable exemption
from the registration requirements of such Act. The inability of the Company to obtain from any regulatory body having jurisdiction the authority, if any, deemed by the Company's legal counsel to be
necessary for the lawful issuance and sale of any shares under the Plan shall relieve the Company of any liability with respect to its determination not to issue or sell such shares as to which such
requisite authority was not 

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obtained.
As a condition to the exercise of a Purchase Right, the Company may require the Participant to satisfy any qualifications that may be necessary or appropriate to evidence compliance with any
applicable law or regulation, and to make any representation or warranty with respect thereto as may be requested by the Company. 

        6.04    Stockholder Approval.    All Purchase Rights shall be subject to the approval of the Plan by the stockholders
of the Company. 

ARTICLE VII  

 PAYROLL DEDUCTIONS AND OPTIONAL CASH PAYMENTS  

        7.01    Amount of Payroll Deductions and Optional Cash Payments.    A Participant may elect to have deductions from
his or her Compensation made for each payroll period, in a whole dollar amount as selected by the Participant on his or her Participation Form, which is not less than ten dollars ($10 U.S) per payroll
period. A Participant may change the rate of his or her payroll deductions during any Purchase Period by providing written authorization (or if so permitted or prescribed by the Committee, another
form of instruction) which sets forth such change in the payroll deduction rate. Such requested change shall not be effective until the first day of the first full payroll period after such request is
processed by the Company's Human Resources Department. A Participant who elects to participate in the payroll deduction feature of the Plan may also make, as provided below, cash payments to the
Company at any time upon or after becoming a Participant. 

        An
eligible Employee may also elect to participate in the Plan solely through optional cash payments in whole dollars (and no payroll deductions) in accordance with such procedures as
the Committee shall prescribe. Optional cash payments by a Participant cannot be less than twenty-five dollars ($25 U.S.) per payment. A Participant who elects to participate in the
optional cash payment only feature may at any time elect to enroll also in the payroll deduction feature by notifying the Human Resources Department in accordance with Section 5.02. 

        In
the case of Participants whose Compensation is not paid in the currency of the United States, the Committee shall periodically determine, not less frequently than once per calendar
year, a minimum payroll deduction that is comparable to ten dollars ($10 U.S.), and a minimum optional cash payment that is comparable to twenty-five dollars ($25 U.S.), based on
applicable currency exchange rates as determined by the Committee. 

        7.02    Calendar Year Purchase Limitation.    In no event may the sum of all payroll deductions and optional cash
payments, and all cash dividends on Company Stock available for investment by any Participant, exceed twenty-five thousand dollars ($25,000 U.S.) per calendar year. To the extent necessary
to comply with Section 423(b)(8) of the Code and the limitations on purchase contained herein, a Participant's payroll deductions may be decreased to 0%, and any optional cash payments and
dividend reinvestments may be rejected, at any time that the aggregate of all payroll deductions,
optional cash payments and cash dividends accumulated with respect to such calendar year would otherwise exceed twenty-five thousand dollars ($25,000 U.S.). The Committee, in its
discretion, may increase or decrease the minimum dollar amount (but not the maximum dollar amount) of payroll deductions without formally amending the Plan. 

        7.03    Individual Accounts.    An individual bookkeeping Account shall be maintained by the Custodian for each
Participant. All payroll deductions made for a Participant shall be credited to such account. A Participant may make separate cash payment into such account as set forth in Section 7.01. No
interest shall accrue or be paid on any payroll deductions or any other amounts credited to an Account. 

        7.04    Cessation and Resumption of Payroll Deductions.    A Participant whose employment with the Company has not
terminated may, without triggering a withdrawal from the Plan, elect at any time 

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to
decrease his or her payroll deduction rate to zero (0). Such election shall be made by filing a new Participation Form with the Company's Human Resources Department and shall be effective with the
first payroll period that begins after the date such Participation Form is processed by the Company's Human Resources Department. 

        An
election under this Section 7.04 to discontinue payroll deductions under the Plan shall be effective on a prospective basis only. Thus, all payroll deductions or other cash
payments credited to the Participant's Account shall automatically be used to exercise the Participant's accrued Purchase Rights on the next following Exercise Date, and no accumulated payroll
deductions or other cash payments may be withdrawn from the Plan by a Participant who elects to discontinue his or her payroll deductions under the Plan. A Participant who elects to discontinue his or
her payroll deductions may withdraw the Company Stock credited to his or her Account only as provided in Section 8.08. 

        A
Participant who previously elected to discontinue his or her payroll deductions under the Plan may elect to resume such payroll deductions at any time thereafter by filing a new
Participation Form with the Company's Human Resources Department, the effective date of which may not be prior to any payroll period that commenced within sixty (60) days from the date as of
which payroll deductions previously ceased. 

ARTICLE VIII  

 GRANT AND EXERCISE OF PURCHASE RIGHTS  

        8.01    Grant of Purchase Rights.    On the first day of each Purchase Period, each Employee who is participating in
such Purchase Period and has a balance in his or her Account shall be deemed to have been granted a Purchase Right on the Exercise Date of such Purchase Period, at the applicable Purchase Price, up to
the number of whole and fractional (rounded to the nearest one hundredth of one percent or two decimal places) shares of Company Stock determined by dividing such Employee's payroll deductions and
optional cash payments credited to his or her Account as of the Exercise Date by the applicable Purchase Price; provided that such purchase shall be subject to the limitations set forth in Sections
4.01 and 7.02. Exercise of the Purchase Right shall occur as provided in Section 8.02, unless the amount credited to his or her Account has been distributed to the Participant upon termination
of employment pursuant to Section 9.01. 

        8.02    Exercise of Purchase Right.    A Participant's Purchase Right shall be exercised automatically on the Exercise
Date, and the maximum number of whole and fractional shares of Company Stock subject to the Purchase Right shall be purchased for such Participant at the applicable Purchase Price with the accumulated
cash credited to his or her Account. 

        8.03    Delivery of Shares and Rights as a Shareholder.    At or as soon as administratively practicable after any
Exercise Date, the Company shall deliver the purchased shares of Company Stock to the Custodian for deposit into Participants' Accounts. A Participant shall have no rights as a stockholder of the
Company by virtue of his or her participation in the Plan until the date of the issuance of a stock certificate for the shares of Company Stock being purchased pursuant to the exercise by the
Participant of a Purchase Right. 

        8.04    Cash Dividends.    Cash dividends on shares of Company Stock which have been credited to a Participant's
Account on the record date for such dividends will automatically be reinvested, at their Market Value (rather than at the Purchase Price) in additional whole and fractional shares of Company Stock on
the next following Purchase Date and such amounts will not be paid in cash to Participants unless otherwise instructed by the Participant on such Participant's Participation Form. In no event will
partial dividend reinvestment be permitted. Unless otherwise instructed by the Participant, all cash dividends paid on Company Stock credited to the Participant's Account on the record date for the
dividend will be paid by the Company to the Custodian on the dividend payment date. 

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        8.05    Stock Distributions.    Any shares of Company Stock distributed as a stock dividend or distribution with
respect to shares of Company Stock or in connection with a split of the Company Stock credited to a Participant's Account on the record date for such dividend or distributions shall automatically be
credited to such Account. In the event any other form of non-cash dividend or distribution is paid or distributed with respect to Company Stock, the Custodian will, if reasonably
practicable and at the direction of the Committee, sell any property received in such dividend or distribution as soon as administratively practicable and use the proceeds to purchase additional
shares of Company Stock in the same manner as cash paid over to the Custodian for purposes of dividend reinvestment. 

        8.06    Voting Rights.    Each Participant will be entitled to vote the number of shares of Company Stock credited to
his or her Account as of the applicable record date on all matters as to which the approval of the Company's stockholders is sought. In those cases where (a) a Participant does not vote or
grant a valid proxy with respect to shares credited to his or her Account, or (b) shares are credited to an Account after the applicable record date, such shares will be voted by the Custodian
in accordance with any stock exchange or other rules governing the Custodian in the voting of shares held for customer accounts. Similar procedures will apply in the case of any consent solicitation
of the Company's stockholders. 

        8.07    Sale of Shares.    At any time a Participant, or the legal representative of the estate of a deceased
Participant, may instruct the Custodian to sell any shares of Company Stock held in the Participant's (or deceased Participant's) Account. The Custodian will generally sell the shares within five
(5) business days after receipt of the notification and the selling price will be the average of all shares sold on behalf of Participants on the sale date. The cash proceeds from any such
sale, less commissions, taxes, any fees imposed in accordance with Section 3.05 and any other applicable expenses, will be distributed to the Participant or his or her beneficiary or estate, as
applicable. 

        8.08    Withdrawal of Shares.    At any time a Participant may elect, without affecting his or her continued
participation, to withdraw shares of Company Stock from his or her Account or may elect to transfer such shares to an account maintained for the benefit of the Participant by a broker-dealer or
financial institution. If a Participant elects to withdraw shares from his or her Account, one (1) or more certificates for whole shares shall be issued in the name of, and delivered or
transferred to, the Participant, broker-dealer, or financial institution, as the case may be. Any fractional shares shall be distributed in cash. A Participant who seeks to withdraw or transfer shares
of Company Stock must give written to the Custodian in such form and manner as may be prescribed by the Custodian, which instructions will be acted upon as soon as administratively practicable.
Withdrawals and transfers of Company Stock will be subject to any fees imposed in accordance with Section 3.05. 

        8.09    Restrictive Legends.    The Company may at any time place legends or other identifying symbols referencing any
applicable foreign, federal or state securities law restrictions, or any provision convenient in the administration of the Plan, on some or all of the certificates representing shares of Company Stock
issued under the Plan. A Participant shall, at the request of the Company, promptly present to the Company any and all certificates representing shares acquired pursuant to a Purchase Right in his or
her possession in order to enable the Company to carry out the provisions of this
Section 8.09. Unless otherwise specified by the Committee, legends placed on such certificates may include but shall not be limited to the following: 

        "The
shares evidenced by this Certificate were issued by the Corporation to the registered holder upon the purchase of shares under an employee stock purchase plan described in
Section 423 of the Internal Revenue Code of 1986, as amended. The Transfer Agent for the shares evidenced hereby shall notify the Corporation immediately of any transfer of the shares by the
registered holder hereof made or on before the second anniversary of the date of purchase of the shares. The registered holder shall 

9

 

hold
all shares purchased under the Plan in the registered holder's name (and not in the name of any nominee) prior to such date." 

        8.10    Notification of Sale of Shares.    The Committee may require a Participant and/or the Custodian to give the
Company prompt notice of any disposition of shares acquired by exercise of a Purchase Right within two (2) years from the date of granting such Purchase Right or within one (1) year from
the date of exercise of such Purchase Right. The Company may require that until such time as a Participant disposes of shares acquired upon exercise of a Purchase Right, the Participant shall hold all
such shares in the Participant's name (and not in the name of any nominee) until the lapse of the time periods with respect to such Purchase Rights referenced in the preceding sentence. The Company
may direct that the certificates evidencing shares acquired by the exercise of a Purchase Right refer to such requirement to give prompt notice of disposition. 

ARTICLE IX  

 WITHDRAWAL FROM PLAN UPON TERMINATION OF EMPLOYMENT  

        9.01    Termination of Employment.    Upon a Participant's termination of employment with the Company and all
Subsidiary Corporations for any reason (including termination because of the Participant's death), or a failure of the Participant to remain an eligible employee as described in Section 5.01,
any cash credited to such Participant's Account shall automatically be used to exercise the Participant's accrued Purchase Rights on the next following Exercise Date, and such Participant's Purchase
Rights shall thereafter automatically terminate. The Custodian shall continue to maintain the Participant's Account until the earlier of the time the Participant withdraws or transfers all Company
Stock in the Account, which withdrawal or transfer shall be permitted only as provided in Section 8.08, or two (2) years after the Participant ceases to be employed by the Company and
its Subsidiary Corporations. At the expiration of such two (2) year period, the Custodian shall distribute to the Participant (or, if the termination of employment is because of death, to the
person or persons entitled to the distribution
under Section 10.01) the whole shares of Company Stock in the Participant's Account in certificated form or transfer such shares from the Participant's Account to an account for the benefit of
the Participant (or the Participant's beneficiary) maintained with a broker-dealer or financial institution, with fractional shares distributed in cash. Except with respect to any Participant who had
been employed in Canada immediately prior to his or her termination of employment, the provisions of Section 8.04 shall apply to a distribution of shares of Company Stock on termination of
employment under this Section 9.01. Notwithstanding any provision of the Plan to the contrary, in no event shall any shares of Company Stock be purchased by or on behalf of any Participant who
is employed by the Company or any Subsidiary Corporation in Canada at any time following the date of termination of such Participant's employment with the Company or any Subsidiary Corporation. 

        9.02    Date of Termination of Employment.    For the purposes of the Plan, a Participant's employment with the
Company and all Subsidiary Corporations shall be considered to have terminated effective on the last day of the Participant's actual and active employment with the Company and all Subsidiary
Corporations, whether such day is selected by agreement with the Participant or unilaterally by the Company or Subsidiary Corporation and whether with or without advance notice to the Participant. For
the avoidance of doubt, no period of notice that is given or ought to have been given under applicable law in respect of such termination of employment will be taken into account in determining a
Participant's entitlements under the Plan. Transfers of employment between or among the Company and all Subsidiary Corporations shall not constitute a termination of employment for purposes of the
Plan. 

10

 

ARTICLE X  

 MISCELLANEOUS  

        10.01    Beneficiary Designations.    A Participant may designate, on a form prescribed by the Committee for this
purpose, one or more beneficiaries to receive any shares of Company Stock and/or cash from the Participant's Account in the event of (a) such Participant's death after an Exercise Date on which
a Purchase Right is exercised but prior to a distribution to such Participant of shares and/or cash then held in the Participant's Account, or (b) such Participant's death prior to exercise of
a Purchase Right. To be effective, such written designation must be filed with the Company's Human Resources Department. Designations can be changed by a Participant at any time by written notice
filed with the Company's Human Resources Department. If a Participant dies without a properly filed beneficiary designation, any shares or cash to be distributed due to the Participant's death shall
be distributed to the Participant's surviving spouse; or, if there is no surviving spouse, to the Participant's descendants, per stirpes; or, if there are no descendants, to the Participant's estate. 

        10.02    Nontransferability.    Neither payroll deductions credited to a Participant's Account nor any rights with
regard to the exercise of a Purchase Right can be assigned, transferred, pledged, or otherwise disposed of in any way by the Participant other than by will or the laws of descent and distribution as
provided in Section 10.01. Any such attempted assignment, transfer, pledge or other disposition shall be void and without effect. 

        10.03    Tax Withholding.    The Company or any designated Subsidiary Corporation is authorized to withhold from any
payment to be made to a Participant, including any payroll and other payments not related to the Plan, amounts of withholding and other taxes due in connection with any transaction under the Plan,
including any disposition of shares acquired under the Plan; and, a Participant's enrollment in the Plan will be deemed to constitute his or her consent to such withholding. At the time of a
Participant's exercise of a Purchase Right or disposition of shares acquired under the Plan, the Company may require the Participant to make other arrangements to meet tax withholding obligations as a
condition to the exercise of such rights or distribution of shares and/or cash from the Participant's Account. In addition, a Participant may be required to advise the Company of sales and other
dispositions of Company Stock acquired under the Plan in order to permit the Company to comply with applicable tax laws and to claim any tax deductions to which the Company may be entitled with
respect to the Plan. 

        10.04    Use of Payroll Deductions.    All payroll deductions received or held by the Company under the Plan may be
used by the Company for any corporate purpose. The Company shall not be obligated to segregate such payroll deductions. 

        10.05    Participant Statements.    Statements of Account shall be provided to each Participant not less frequently
than annually, which statements shall set forth the amounts of payroll deductions, the Purchase Price, the number of shares of Company Stock purchased, any remaining cash balance, and other
information deemed relevant by the Committee. 

        10.06    Amendment and Termination of the Plan.    The Board shall have the complete power and authority to terminate
or amend the Plan; provided, however, that the Board shall not, without the approval of the stockholders of the Company, increase the maximum number of shares which may be issued hereunder (except
pursuant to Section 4.02) or amend the requirements as to the class of Employees eligible to participate in the Plan. No termination, modification, or amendment of the Plan may, without the
consent of a Participant then having a Purchase Right to purchase Company Stock, adversely affect the rights of such Participant with respect to such Purchase Right; provided, however, that the
Committee may at any time within fifteen (15) days prior to the commencement of a new Purchase Period increase the Purchase Price (so long as the Purchase Price will not exceed the Market
Value). In the event the Plan is terminated, the balance, if any, in each Participant's Account shall be 

11

 

promptly
distributed to him or her, or otherwise disposed of in accordance with policies and procedures prescribed by the Committee in cases where such a refund may not be possible. 

        10.07    Rights as Employee.    The Plan does not, directly or indirectly, create any right for the benefit of any
Employee or class of Employees to purchase any shares of Company Stock, or create in any Employee or class of Employees any right with respect to continuation of employment by the Company; and, it
shall not be deemed to interfere in any way with the Company's right to terminate, or otherwise modify, an Employee's employment at any time. Any benefits granted hereunder are not part of a
Participant's ordinary salary, and shall not be considered as part of such salary for purposes of any other employee plan, program, policy or arrangement maintained by the Company or in the event of
severance, redundancy or resignation. If the Participant's employment is terminated for whatever reason, whether lawfully or unlawfully, the Participant shall not be entitled by way of damages for
breach of contract, dismissal or compensation for loss of office or otherwise to any sum, shares of Company Stock or other benefits to compensate him or her for the loss or diminution in value of any
actual or prospective right, benefits or expectation under or in relation to the Plan. Benefits granted under the Plan are entirely at the grace and discretion of the Company. 

        10.08    Notices.    All notices or other communications by a Participant to the Company shall be deemed to have been
duly given when received in the form specified by the Company at the location, or by the person, designated by the Company for the receipt thereof. 

        10.09    Restriction on Issuance of Shares.    The Company shall not be obligated to issue shares of Company Stock
with respect to a Purchase Right unless the exercise of such Purchase Right and the issuance and delivery of such shares pursuant thereto shall comply with all applicable provisions of law, domestic
or foreign, including, without limitation, the Securities Act of 1933, as amended, the Exchange Act, the rules and regulations promulgated thereunder, and the requirements of any stock exchange or
automated quotation system upon which the shares may then be listed or quoted. 

        10.10    Binding Effect.    The provisions of the Plan shall, in accordance with its terms, be binding upon, and inure
to the benefit of, all successors of each Participant, including, without limitation, such
Participant's estate and the executors, administrators or trustees thereof, heirs and legatees, and any receiver, trustee in bankruptcy or representative of creditors of such Participant. 

        10.11    Duration of Plan.    The Plan, as amended from time to time, shall continue in effect until terminated
pursuant to Section 10.06. 

        10.12    Foreign Participants.    To the extent permitted under Section 423 of the Code, the Committee may
provide for such special terms for Participants who are foreign nationals, or who are employed by the Company or Subsidiary Corporation outside of the United States, as the Committee may consider
necessary or appropriate to accommodate differences in local law, tax policy or custom. Moreover, the Committee may approve such supplements to or amendments, restatements, or alternative versions of,
the Plan as it may consider necessary or appropriate for such purposes without thereby affecting the terms of this Plan as in effect for any other purpose; provided, however, that no such supplements,
amendments, restatements or alternative versions will include any provisions that are inconsistent with the terms of the Plan, as then in effect, unless the Plan could have been amended to eliminate
such inconsistency without further approval by the shareholders of the Company, or which would cause the Plan to fail to meet the requirements of Section 423 of the Code. 

        10.13    Personal Data.    For the reasons described below, the Company and its Subsidiary Corporations may process
sensitive personal data about each Participant. Such data may include but is not limited to: (a) personal data (e.g., name, address, telephone number, fax number, email address, family size,
marital status, sex, beneficiary information, emergency contacts, passport/visa information, age, language skills, drivers license information, birth certificate and employee number);
(b) employment information (e.g., C.V. (or resume), wage history, employment references, job title, 

12

 

employment
or severance contract, plan or benefit enrollment forms and elections, purchase right or benefit statements), disciplinary action and commendations; and (c) financial information
(e.g., wage and benefit information, personal bank account number, tax related information and tax identification number). The Company may from time to time process and transfer this or other
information for internal compensation and benefit planning (specifically, participation in the Plan), to determine training needs, to develop a global human resource database and to evaluate skill
utilization. The legal persons for whom the Participant's personal data is intended are the Company, any outside Plan administrator or Custodian selected by the Company from time to time and any other
person the Company may find appropriate in its administration of the Plan. The Company shall ensure that all personal and/or sensitive data transmitted shall be kept confidential and used only for
legitimate Company purposes as described above. 

        10.14    Governing Law.    The law of the State of Indiana, without regard to the choice of law principles thereof,
will govern all matters relating to this Plan except to the extent it is superseded by the laws of the United States. 

13

QuickLinks

Exhibit 10.18

ADESA, INC. EMPLOYEE STOCK PURCHASE PLAN ARTICLE I PURPOSEQuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.19    
    

ADESA, INC.

2005 SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN  

 
ADESA, INC.

2005 SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN  

 TABLE OF CONTENTS  

	 
	 	 
	 	PAGE

	INTRODUCTION	 	1
	

ARTICLE I	
 	

DEFINITIONS AND INTERPRETATION	
 	

1
	 	
 Section 1.1	
 	

Definitions	
 	

1
	 	Section 1.2	 	Rules of Construction	 	4
	

ARTICLE II	
 	

ELIGIBILITY AND PARTICIPATION	
 	

4
	 	
 Section 2.1	
 	

Initial Participation	
 	

4
	 	Section 2.2	 	Change in Eligibility	 	4
	 	Section 2.3	 	Transfers from Predecessor Plans	 	4
	

ARTICLE III	
 	

CONTRIBUTIONS AND CREDITS	
 	

5
	 	
 Section 3.1	
 	

Establishment of Accounts	
 	

5
	 	Section 3.2	 	Initial Credit to the Accounts of Transferred Participants	 	5
	 	Section 3.3	 	Elective Deferrals.	 	5
	 	Section 3.4	 	Employer Contribution Credits.	 	6
	 	Section 3.5	 	Pension Make-Up Credits	 	6
	 	Section 3.6	 	Additional Credits and Charges to Accounts.	 	7
	 	Section 3.7	 	Tax Supplement Benefit	 	8
	

ARTICLE IV	
 	

DISTRIBUTIONS	
 	

8
	 	
 Section 4.1	
 	

Application of Article	
 	

8
	 	Section 4.2	 	Participant Distribution Elections.	 	8
	 	Section 4.3	 	Timing of Distributions	 	9
	 	Section 4.4	 	Death of the Participant and Beneficiary Designations.	 	9
	 	Section 4.5	 	Hardship Distributions	 	9
	 	Section 4.6	 	Distribution on Change of Control Event	 	10
	 	Section 4.7	 	Minimum Installment Payment	 	10
	

ARTICLE V	
 	

PLAN ADMINISTRATION	
 	

10
	 	
 Section 5.1	
 	

Powers and Responsibilities of the Administrator	
 	

10
	 	Section 5.2	 	Indemnification of Administrator	 	10
	 	Section 5.3	 	Claims and Claims Review Procedure.	 	10
	 	Section 5.4	 	Income and Employment Tax Withholding	 	11
	 	Section 5.5	 	Notices	 	11
	

ARTICLE VI	
 	

AMENDMENT AND TERMINATION OF THE PLAN	
 	

11
	

ARTICLE VII	
 	

MISCELLANEOUS	
 	

12
	 	
 Section 7.1	
 	

Nature of Participants' Rights	
 	

12
	 	Section 7.2	 	Spendthrift Clause	 	12
	 	Section 7.3	 	Counterparts	 	12
	 	Section 7.4	 	No Enlargement of Employment Rights	 	12
	 	Section 7.5	 	Limitations on Liability	 	12
	 	Section 7.6	 	Incapacity of Participant or Beneficiary	 	12
	 	Section 7.7	 	Corporate Successors	 	12
	 	Section 7.8	 	Evidence	 	12
	 	Section 7.9	 	Action by Employer	 	13
	 	Section 7.10	 	Severability	 	13

i

        The ADESA, Inc. 2005 Supplemental Executive Retirement Plan ("Plan") has been adopted by ADESA, Inc. ("Company"), effective March 1, 2005. 

 
 

INTRODUCTION    
    

        The purpose of this Plan is to provide supplemental retirement benefits for a select group of management or highly compensated Employees and to permit covered
Employees to increase their retirement benefits further by making salary reduction deferrals pursuant to the Plan. The Employers intend for the Plan to qualify as an unfunded arrangement maintained
for the purpose of providing deferred compensation for a select group of management or highly compensated employees within the meaning of Sections 201, 301, and 401 of Employee Retirement Income
Security Act of 1974, as amended. 

ARTICLE I

DEFINITIONS AND INTERPRETATION  

        Section 1.1    Definitions.    Whenever the initial letter of a word or phrase is capitalized herein, the
following words and phrases shall have the meanings stated below, unless a different meaning is plainly required by the context: 

        (a)   "Account"
means, with respect to a Participant, the bookkeeping account established by the Administrator to record the Participant's interest under the Plan. "Account"
also means, when the context so permits, the amount credited to such bookkeeping account. Each Participant's Account shall consist of the following sub-Accounts, to the extent applicable: 

	(1)
	"Deferral
Account" means the Participant's interest under the Plan attributable to (i) Elective Deferrals and (ii) non-Grandfathered elective deferrals under
a Predecessor Plan transferred to this Plan pursuant to Section 2.3.

	(2)
	"Employer
Contribution Account" means the Participant's interest under the Plan attributable to (i) Employer Contribution Credits; (ii) non-Grandfathered
employer contribution credits under a Predecessor Plan transferred to this Plan pursuant to Section 2.3; and (iii) Pension Make-Up Credits.

	(3)
	"Grandfathered
Deferral Account" means the Participant's interest under the Plan attributable to Grandfathered elective deferrals under a Predecessor Plan transferred to this Plan
pursuant to Section 2.3.

	(4)
	"Grandfathered
Employer Contribution Account" means the Participant's interest under the Plan attributable to Grandfathered employer contribution credits under a Predecessor Plan
transferred to this Plan pursuant to Section 2.3. 

         (b)  "Administrator"
means the Board; provided, however, the Board may delegate one or more administrative responsibilities under the Plan to any person (including a
committee), in which case such person shall be considered the Administrator with respect to the delegated responsibility. 

         (c)  "Applicable
Form" means the appropriate form, as designated and furnished by the Administrator, to make an election or provide a notice under the Plan. 

         (d)  "Base
Salary" means, for purposes of determining the Employer Contribution Credits with respect to a Covered Participant for a Plan Year, the Covered Participant's gross
base salary for the Plan Year, as estimated by the Administrator based on actual salary through December 1 of the Plan Year and projected salary for the remainder of the Plan Year, unreduced by
Elective Deferrals or salary reduction contributions pursuant to Code Section 401(k) or 125. Base Salary for 2005 shall be determined as if the Plan Year had begun on January 1, 2005. 

         (e)  "Beneficiary"
means, with respect to a Participant, the Participant's beneficiary or beneficiaries, as determined pursuant to Section 4.4. 

 

          (f)  "Benefit
Commencement Date" means the date as of which a distribution under the Plan is to be made (or begin, if payable in installments). 

         (g)  "Board"
means the Company's Board of Directors. 

         (h)  "Bonus"
means, with respect to a Participant for a Plan Year, the gross annual cash bonus payable to the Participant under the ADESA Annual Incentive Plan with respect
to services performed during such year, even if such bonus is payable in a later Plan Year, unreduced by Elective Deferrals or salary reduction contributions made pursuant to Code
Section 401(k) or 125. 

          (i)  "Change
in Control Event" means, with respect to a Participant, a change in the ownership or effective control of a relevant Employer or in the ownership of a
substantial portion of a relevant Employer's assets, to the extent that such change is deemed to be an event described in Code Section 409A(a)(2)(A)(v). 

          (j)  "Code"
means the Internal Revenue Code of 1986, as amended from time to time. 

         (k)  "Company"
means ADESA, Inc. 

          (l)  "Compensation"
means, with respect to a Participant for a payroll period, the Participant's Gross Compensation for such period, reduced by applicable withholdings and
deductions. 

        (m)  "Covered
Participant" means, with respect to a Plan Year, a Participant who, on December 1 of such year, is (i) actively employed as an Eligible Employee;
(ii) is no longer actively employed as an Eligible Employee, but who terminated employment during such year on account of death, Disability, or Retirement; or (iii) is on an
Employer-approved Disability leave that began during such year. 

         (n)  "Deferral
Election" means a deferral election filed by a Participant pursuant to Section 3.3 on an Applicable Form. 

         (o)  "Disability"
means a medical or mental impairment that, in the judgment of the Administrator, based on medical evidence submitted by the Participant, renders the
Participant unable to perform the material duties of his employment and is expected to last for a period of at least six months or until the Participant's earlier death. 

         (p)  "Effective
Date" means March 1, 2005, the effective date of the Plan. 

         (q)  "Elective
Deferrals" means amounts deferred by a Participant under the Plan pursuant to the Participant's Deferral Election. 

         (r)  "Eligible
Employee" means any Employee (i) who holds a position listed in Appendix A, as amended from time to time, or (ii) who does not hold a
position listed in Appendix A but who is designated by the Administrator or the Chairman of the Company's Board as an Eligible Employee and who has been notified in writing of such designation
and its effective date. 

         (s)  "Employee"
means any individual who is employed by an Employer. 

          (t)  "Employer"
or "Employers" means the Company and any Subsidiary that has adopted the Plan with the consent of the Board. 

         (u)  "Employer
Contribution Credit" means, with respect to a Participant, an amount credited to the Participant's Employer Contribution Account pursuant to
Section 3.4. 

         (v)  "ERISA"
means the Employee Retirement Income Security Act of 1974, as amended from time to time. 

        (w)  "Fixed
Investment Fund" means an Investment Fund providing for a fixed stated rate of return, as established by the Administrator from time to time. 

         (x)  "Fund"
means an Investment Fund. 

2

 

         (y)  "Grandfathered"
means, with respect to an amount transferred from a Predecessor Plan, that the amount was deferred and vested on or before December 31, 2004, that
the arrangement pursuant to which the amount was deferred has not been materially modified within the meaning of Code Section 409A and the guidance thereunder, and that the amount is not
subject to the provisions of Code Section 409A. 

         (z)  "Gross
Compensation" means, with respect to a Participant for a payroll period, the Participant's regular base salary for such period, unreduced by Elective Deferrals
and salary reduction contributions pursuant to Code Section 401(k) or 125. "Gross Compensation" shall include holiday pay, vacation pay, floating holiday pay, and sick pay, but shall exclude
fringe benefits (whether or not taxable), disability pay, severance pay, and other special pay. 

       (aa)  "Ineligible
401(k) Plan Participant" means, with respect to a Plan Year, a Covered Participant who did not satisfy the eligibility requirements of the Company's
qualified Code Section 401(k) Plan for all or part of the Plan Year. 

       (bb)  "Investment
Credit" means, with respect to an Account, an amount credited to the Account pursuant to Section 3.6. 

       (cc)  "Investment
Fund" means a fund established by the Administrator pursuant to Section 3.6 for the purpose of determining Investment Credits. 

       (dd)  "Participant"
means an Eligible Employee who has become a Participant pursuant to the provisions of Article II and whose entire Account has not been distributed. 

       (ee)  "Participation
Service" means the combined period of participation in this Plan, a Predecessor Plan, and the Insured Option Plan maintained by ADESA Corporation between
March 6, 1998, and March 5, 2001. "Participation Service" also includes, in the case of certain Employees, prior service with ALLETE Corporation or Automotive Finance Corporation, to the
extent determined by the Administrator and communicated to the Employee in writing at the time he becomes a Participant. 

        (ff)  "Pension
Make-Up Credits" means credits to a Participant's Account pursuant to Section 3.5. 

       (gg)  "Plan"
means the deferred compensation plan embodied herein, as amended from time to time, known as the ADESA, Inc. 2005 Supplemental Executive Retirement Plan. 

       (hh)  "Plan
Year" means the 12-month period beginning each January 1 and ending on the following December 31, except that the first Plan Year shall
begin on the Effective Date and end on December 31, 2005. 

	(ii)
	"Predecessor
Plan" means the ADESA Corporation Supplemental Executive Retirement Plan and/or the Automotive Finance Corporation Supplemental Executive Retirement Plan. 

         (jj)  "Retirement"
means Termination of Employment on or after (1) reaching age 65 or (2) reaching age 55 and completing at least ten years of Participation
Service. In the case of certain Participants previously employed by ALLETE Corporation, the reference to age 55 in clause (2) of the preceding sentence shall be deemed a reference to age 50, to
the extent determined by the Administrator and communicated to the Participant in writing at the time he becomes a Participant. 

       (kk)  "Statutory
Compensation Limit" means, (i) for the Plan Year ending December 31, 2005, $205,000, and (ii) for any later Plan Year, the Code
Section 401(a)(17) compensation limit in effect for that Plan Year. 

         (ll)  "Subsidiary"
or "Subsidiaries" means a corporation, partnership, or limited liability company, a majority of the outstanding voting stock, general partnership
interests, or membership interests, as the case may be, of which is owned or controlled directly or indirectly by the Company or by one or more other Subsidiaries. For the purposes of this definition,
"voting stock" means stock having voting power 

3

 

for
the election of directors, or trustees, as the case may be, whether at all times or only so long as no senior class of stock has such voting power by reason of any contingency. 

    (mm)  "Terminates
Employment" or "Termination of Employment" means a complete termination of the employment relationship between the Participant and all Employers. 

       (nn)  "Transferred
Participant" means an individual who became a Participant on the Effective Date and who had an accrued benefit under a Predecessor Plan on the day
preceding the Effective Date. 

       (oo)  "Trust"
means the ADESA, Inc. 2005 Supplemental Executive Retirement Plan Trust, as amended from time to time, formerly known as the ADESA Corporation
Supplemental Executive Retirement Plan Trust. 

       (pp)  "Trustee"
means the trustee of the Trust from time to time. 

        Section 1.2    Rules of Construction.    The following rules shall govern the interpretation of the Plan: 

        (a)   The
Plan is intended to comply with (i) Code Section 409A and (ii) the applicable provisions of ERISA, and it shall be interpreted and administered
in accordance with such intent. 

        (b)   Subject
to the provisions of Subsection (a), the Plan shall be construed, regulated, and administered in accordance with the internal laws of the State of Indiana,
without regard to conflict of law principles. 

        (c)   Words
used in the masculine gender shall be deemed to include the feminine, where appropriate, and vice versa, and words
used in the singular shall be deemed to include the plural, where appropriate, and vice versa. 

        (d)   Headings
and subheadings have been inserted for convenience of reference only and shall not affect the construction of the terms hereof. 

ARTICLE II

ELIGIBILITY AND PARTICIPATION  

        Section 2.1    Initial Participation.    An Eligible Employee shall become an active Participant as of the
later of (i) the Effective Date or (ii) the date as of which such person becomes an Eligible Employee. An active Participant shall receive Employer Contribution Credits to the extent
provided in Section 3.3 and may (but shall not be required to) make Elective Deferrals. 

        Section 2.2    Change in Eligibility.    A Participant may be removed as an active Participant by
(i) the Administrator or the Chairman of the Company's Board, effective as of the date written notice of such decision is provided to the Participant, or (ii) by Plan amendment,
effective as of the latest of adoption of the amendment, the effective date of the amendment, or date on which notice of the amendment is
provided to the affected Participant. Upon removal pursuant to the preceding sentence or upon ceasing to be an Eligible Employee, a Participant shall become an inactive Participant. As an inactive
Participant, the Participant's Elective Deferrals and Employer Contribution Credits shall cease, but Investment Credits shall continue to be credited to the Participant's Accounts in the same manner
as if the Participant were an active Participant until such time as the Participant's Accounts are distributed in accordance with the provisions of the Plan. 

        Section 2.3    Transfers from Predecessor Plans.    As of the Effective Date, the vested account balance of
each Transferred Participant under the Predecessor Plans shall be transferred to this Plan, and the Transferred Participant shall not be entitled to any further benefit under any Predecessor Plan. At
the time of such transfer, the Administrator shall separately account for each of the following amounts transferred to the Plan for each Transferred Participant: (i) Grandfathered amounts
attributable to the Participant's elective deferrals (including earnings credits with respect to such 

4

 

elective
deferrals), which shall be credited to the Participant's Grandfathered Deferral Account, (ii) Grandfathered amounts attributable to employer contribution credits for the Participant
(including earnings credits with respect to such contribution credits), which shall be credited to the Participant's Grandfathered Employer Contribution Account, (iii) 
non-Grandfathered amounts attributable to the Participant's elective deferrals (including earnings credits with respect to such elective deferrals), which shall be credited to the
Participant's Deferral Account, and (iv) non-Grandfathered amounts attributable to employer contribution credits for the Participant (including earnings credits with respect to such
contribution credits), which shall be credited to the Participant's Employer Contribution Account. 

ARTICLE III

CONTRIBUTIONS AND CREDITS  

        Section 3.1    Establishment of Accounts.    The Administrator shall establish on behalf of each Participant as
of the date he becomes a Participant an Account consisting of each of the following applicable sub-Accounts: Deferral Account, Employer Contribution Account, Grandfathered Deferral
Account, and Grandfathered Employer Contribution Account. The Administrator shall credit and charge such Accounts as provided in this Article. A Participant's interest in his Accounts shall be 100%
vested at all times. 

        Section 3.2    Initial Credit to the Accounts of Transferred Participants.    As of the Effective Date, the
Administrator shall credit the transferred amounts to the Accounts of each Transferred Participant as provided in Section 2.3. 

        Section 3.3    Elective Deferrals.    

        (a)    General Provisions.    Subject to the provisions of this Article, a Participant may elect to defer (i) a
whole percentage (up to 25%) of his Gross Compensation for services performed during a Plan Year and/or (ii) a whole percentage (up to 85%) of his Bonus for services performed during a Plan
Year. If a Participant makes a valid Deferral Election pursuant to this Article, the Bonus or Compensation that would be payable to the Participant in the absence of his election shall be reduced by
the elected amount, and the reduction amount shall be credited to the Participant's Deferral Account as of the payment date for the Compensation or Bonus. To make a valid election, a Participant must
file a completed Deferral Election with the Administrator within the period required by this Section. 

        (b)    Initial Deferral Elections Regarding Gross Compensation.    In general, a Participant must file his Deferral
Election with respect to Gross Compensation for a Plan Year before the beginning of the Plan Year in which the Participant performs the services for which the Gross Compensation is paid. In the first
Plan Year of a Participant's participation, however, the Participant may file a Deferral Election with respect to Gross Compensation paid for services performed after the filing date at any
time during the first 30 days of participation and, for 2005, a Participant may file a Deferral Election with respect to Gross Compensation paid for services performed after the filing
date at any time before March 15, 2005. 

        (c)    Initial Deferral Elections Regarding Bonuses.    Unless a Bonus represents performance-based compensation based
on services performed over a period of at least 12 months (within the meaning of Code Section 409A(a)(4)(B)(iii)), the provisions of Subsection (b) shall apply to Deferral
Elections with respect to Bonuses. To the extent that a Bonus represents performance-based compensation based on services performed over a period of at least 12 months (within the meaning of
Code Section 409A(a)(4)(B)(iii)), the Participant may file the Deferral Election with respect to such Bonus within the period prescribed by Subsection (b) or, if later, at least six
months before the end of the applicable performance period. 

5

 

        (d)    Revocation or Change of Deferral Elections.    Once made, a deferral election with respect to Bonuses or
Compensation shall remain in effect for future Bonuses and Compensation, unless the election is revoked or a new election filed pursuant to this Subsection. Any revocation of an existing Deferral
Election or new Deferral Election must be filed on an Applicable Form with the Administrator within the period required by Subsection (b) or (c), as applicable. 

        Section 3.4    Employer Contribution Credits.    

        (a)    Base Employer Contribution Credits.    Except as otherwise provided in this Section, for each Plan Year, each
Covered Participant's Employer Contribution Account shall be credited with Employer Contribution Credits in an amount equal to the sum of 7% of the Participant's Base Salary up to the Statutory
Compensation Limit, plus 11% of the Participant's Base Salary in excess of the Statutory Compensation Limit. Beginning with the first calendar month following the calendar month in which a Participant
completes 120 months of Participation Service, the 7% Employer Contribution Credit required by the preceding sentence shall be increased to 10%, and the 11% Employer Contribution Credit
required by the preceding sentence shall be increased to 14%. For example, if a Participant completes 120 months of Participation Service on March 5, 2008, the Employer Contribution
Credit under this Subsection for the 2008 Plan Year shall be equal to the sum of (i) 7% of his Base Salary for the first three months of 2008, up to one-fourth of the Statutory
Compensation Limit, plus 11% of such Base Salary in excess of such prorated compensation limit, and (ii) 10% of his Base Salary for the last nine months of 2008, up to three-fourths of such
compensation limit, plus 14% of such Base Salary in excess of such prorated compensation limit. 

        (b)    Supplemental Employer Contribution Credits.    In addition to the Employer Contribution Credit otherwise
provided for by this Section, a supplemental Employer Contribution Credit shall be credited to the Employer Contribution Account of each Ineligible 401(k) Plan Participant. The amount of the Eligible
Contribution Credit shall be equal to 4% of the Participant's Base Salary for the period during which the Participant is both a Covered Participant and an Ineligible 401(k) Plan Participant. 

        (c)    Credits for Individuals Who Become Participants after Beginning of Plan Year.    If an individual becomes a
Participant on any day other than the first day of the Plan Year, such individual's contribution under Subsection (a) for that Plan Year, if any, shall be based on that portion of the
individual's Base Salary that is attributable to the period beginning on the date on which the individual becomes a Participant and ending on the last day of that Plan Year. 

        (d)    Credits for Covered Participants Not Actively Employed on December 1 of Plan Year.    The Employer
Contribution Credit for a Covered Participant who is not an active Eligible Employee on December 1 of a Plan Year shall be the credit under Subsection (a) or (c), as applicable,
multiplied by a fraction, the numerator of which is the number of full and partial months during the Plan Year in which the Participant was an active Eligible Employee and the denominator of which is
the number of months in the Plan Year. 

        (e)    Special Provisions Relating to Employer Contribution Credits for 2005.    Employer Contribution Credits
pursuant to this Section for 2005 shall be calculated as if the 2005 Plan Year had begun on January 1, 2005, and any individual who became a Participant on the Effective Date had become a
Participant on January 1, 2005. 

        (f)    Timing of Employer Contribution Credits.    All Employer Contribution Credits with respect to a Participant for
a Plan Year shall be credited to the Participant's Employer Contribution Account as of December 1 of the Plan Year. 

        Section 3.5    Pension Make-Up Credits.    Section 3.2(b) and Schedule 3.2(b) of the
Employee and Director Matters Agreement, dated June 15, 2004, between ADESA, Inc. and ALLETE, Inc. require the Company to make five annual pension make-up
contributions to the Plan on behalf of the 

6

 

Employees
listed in the Schedule. At the time such payments are required, they shall be credited to the Participant's Employer Contribution Account. 

        Section 3.6    Additional Credits and Charges to Accounts.    

        (a)    Reduction of Accounts to Reflect Distributions.    On the date of any distribution with respect to a
Participant under the Plan, his Accounts shall be reduced by the amount of the distribution. 

        (b)    Investment Credits.    Investment Credits shall be made to a Participant's Accounts as provided in following
paragraphs of this Subsection: 

	(1)
	The
Administrator shall, from time to time, select Investment Funds to be used to determine Investment Credits under the Plan. The Administrator shall provide Participants with
information regarding the Funds and may, in its sole discretion, discontinue, substitute, or add a Fund as of the first day of any month by providing at least 30 days' prior written notice to
Participants.

	(2)
	Each
Participant may elect for his Accounts to be invested in one or more of the Investment Funds by filing an Applicable Form with the Administrator. A Participant may change his
investment election as of the beginning of any calendar month by filing a new Applicable Form with the Administrator before the first day of such month. If a Participant does not designate any
Investment Fund, he shall be deemed to have elected the Fixed Interest Fund, to the extent that such Fund exists, or if such Fund is no longer available, the most comparable available Investment Fund.

	(3)
	It
is anticipated that the Company will contribute to the Trust, not later than 30 days following the date as of which an amount transferred from a Predecessor Plan, Elective
Deferral, Employer Contribution Credit, or Make-Up Pension Credit is credited to a Participant's Account ("Contribution Period"), an amount equal to such credit and that such amount will
be invested by the Trustee pursuant to the Participant's election. If an anticipated contribution and investment are made within the Contribution Period, the Investment Credits with respect to the
affected Participant's Accounts shall be the amounts earned by the Trust with respect to such Accounts, as determined by the Administrator. If an anticipated contribution and investment are not made
within the Contribution Period, the affected Participant's Accounts shall be credited with Investment Credits as if such contributions had been made.

	(4)
	It
is anticipated that the Trustee will reinvest Trust assets to reflect a Participant's election to change Investment Funds within 30 days after the effective date of the
Participant's election ("Reinvestment Period"). If the Trustee changes the investment of Trust assets to reflect to Participant's election within the Reinvestment Period, the Investment Credits with
respect to the affected Participant's Accounts shall be the amounts earned by the Trust with respect to such Accounts, as determined by the Administrator. If the Trustee does not change the investment
of Trust assets to reflect to Participant's election within the Reinvestment Period the affected Participant's Accounts shall be credited with Investment Credits as if such reinvestment had been made.

	(5)
	For
purposes of determining the Investment Credits with respect to the Fixed Income Fund, the earnings of such Fund shall be deemed to be the stated rate for the Fund, as in effect
from time to time, rather than the actual return on Trust assets.

	(6)
	In
determining Investment Credits to be credited to an Account, the Administrator may make reasonable estimates and approximations, as it deems appropriate. 

        (c)    No Required Investment.    Notwithstanding the preceding provisions, neither the Employers nor the Trustee
shall be obligated to invest any funds pursuant to a Participant's investment election. The sole purpose of such election is to provide a method for determining the Investment Credits with 

7

 

respect
to a Participant's Accounts. Even if anticipated contributions and investments are made, the Participant shall have no right to such investments, and his sole right to benefits under the Plan
shall be as a general unsecured creditor of the Company (and his Employer, if his Employer is a Subsidiary). 

        Section 3.7    Tax Supplement Benefit.    To help pay for any income taxes imposed on a Participant upon a
distribution resulting from a Change in Control Event, the gross distribution payable to any Participant as a result of a Change in Control Event shall be increased by 40%. 

ARTICLE IV

DISTRIBUTIONS  

        Section 4.1    Application of Article.    A Participant's Grandfathered Deferral Account and Grandfathered
Employer Contribution Account shall be subject to the distribution provisions set out in Appendix B, to the extent that such Accounts derive from Grandfathered amounts transferred from the
ADESA Corporation Supplemental Executive Retirement Plan, and the distribution provisions set out in Appendix C, to the extent that such Accounts derive from Grandfathered amounts transferred
from the Automotive Finance Corporation Supplemental Executive Retirement Plan. The remaining provisions of this Article shall apply only to the Participant's Deferral Account and Employer
Contribution Account. 

        Section 4.2    Participant Distribution Elections.    

        (a)   Subject
to the following provisions of this Article, distribution of a Participant's Deferral Account and Employer Contribution Account shall be made as elected by the
Participant under this Section. To be effective, a Participant distribution election must be filed with the Administrator on an Applicable Form within the required filing period. 

        (b)   At
the time he makes a Deferral Election under the Plan, a Participant shall elect how the amounts subject to the Deferral Election (including all Investment Credits
with respect thereto) shall be distributed from the Plan. The Participant may elect as the Distribution Commencement Date for such amounts either (i) the first day of the month occurring at
least 30 days after his Termination of Employment or (ii) the earlier of such date and a specified date that is at least five years after the date of his election. The Participant may
elect for distribution of such amounts to be made (i) a lump sum payment, (ii) in substantially equal annual installments (not to exceed ten), or (iii) in a combination of such
methods; provided, however, a distribution as of a designated date must be made in a lump sum. If the Participant elects for an amount to be distributed in installments, the first installment shall be
paid as of the Distribution Commencement Date, and remaining installments shall be paid as of the next following anniversaries of that date. The amount of each such installment shall determined by
dividing the amounts subject to the installment election by the number of remaining installments (including the installment being calculated). For example, if a Participant elects three annual
installments, the first installment shall be one-third of the amount subject to the election, the second installment shall be one-half of the remaining amount subject to the
election, and the third installment shall be the entire remaining amount subject to the election. 

        (c)   An
individual shall make an election within 30 days after becoming a Participant regarding the form in which amounts derived from Employer Contribution Credits
shall be distributed. In the case of an individual who first becomes a Participant as of the Effective Date, such election shall include the form in which any amounts derived from
non-Grandfathered amounts transferred to his Accounts pursuant to Section 2.3 and Pension Make-Up Contribution Credits shall be distributed. The Distribution
Commencement Date for such amounts shall be the first day of the month occurring at least 30 days after the Participant's Termination of Employment. The Participant may elect for distribution
of such amounts to be made (i) as a lump sum payment, (ii) in substantially equal annual installments (not to exceed ten), or (iii) in a combination of such methods. If the
Participant elects for an amount to be distributed in installments, the first installment shall be paid as of the Distribution 

8

 

Commencement
Date, and remaining installments shall be paid as of the next following anniversaries of that date. The amount of each such installment shall determined by dividing the amounts subject to
the installment election by the number of remaining installments (including the installment being calculated). A Participant may make a new distribution election for future Employer Contribution
credits, effective as of the first day of the next following Plan Year, by filing a new election form with the Administrator before the beginning of that Plan Year. 

        Section 4.3    Timing of Distributions.    In general, distributions pursuant to the Plan shall be made (or
begin, if payable in installments) on or as soon as administratively feasible after the Benefit Commencement Date. Notwithstanding any other provision of the Plan, if a Participant who is a key
employee (within the meaning of Code Section 416(i)), becomes entitled to a distribution on account of Termination of Employment for a reason other than death or disability (within the meaning
of Code Section 409A(a)(2)(C)), to the extent required by Section 409A, distributions pursuant to the Plan shall be made (or begin, if payable in installments), six months after the
Participant's Termination of Employment (or, if earlier, as soon as feasible following the Participant's death). 

        Section 4.4    Death of the Participant and Beneficiary Designations.    

        (a)    Form and Time of Payment.    If a Participant dies before his Benefit Commencement Date, his Accounts shall be
distributed to his Beneficiary in the same form and manner as they would have been distributed to the Participant, if he had lived. If a Participant dies after his Benefit Commencement Date, his
remaining Accounts shall be distributed to his Beneficiary in the form and manner of distribution in effect on the date of his death. 

        (b)    Designation of Beneficiaries.    A Participant may designate a primary and contingent beneficiary or
beneficiaries on an Applicable Form. The Participant may change such designation at any time and for any reason. If the Participant does not designate a beneficiary, or if the Participant's
designation is for any reason illegal or ineffective, or if the designated beneficiary(ies) do not survive the Participant, the Participant's beneficiary shall be (i) his surviving spouse, if
he is survived by his spouse; (ii) if there is no surviving spouse, his duly appointed and qualified executor or other personal representative to be
distributed in accordance with the Participant's will or applicable intestacy law; or (iii) if there is no such representative duly appointed and qualified within 60 days after the
Participant's death, then such persons who would be entitled to share in the distribution of his estate under the applicable intestacy law in the proportions required by such law. The Administrator
may determine the identity of the beneficiaries, and in so doing may act and rely upon any information that it may deem reliable upon reasonable inquiry, and upon any affidavit, certificate, or other
document believed by it to be genuine, and upon any evidence believed by it to be sufficient. 

        Section 4.5    Hardship Distributions.    Notwithstanding the preceding provisions of this Article, a
Participant shall be entitled to early distribution of his Accounts upon the occurrence of an unforeseeable emergency (within the meaning of Code Section 409A(a)(2)(B)(ii)) to the extent that
such distribution is permitted by this Section and Code Section 409A. In general, an "unforeseeable emergency" is a severe financial hardship to the Participant resulting from an illness or
accident of the Participant, his spouse, or his dependent (within the meaning of Code Section 152(a)). A distribution may be made on account of unforeseeable emergency only if the amounts
distributed do not exceed the amounts necessary to satisfy the emergency, plus amounts necessary to pay taxes reasonably anticipated as a result of the distribution, after taking into account the
extent to which the severe financial hardship is or may be relieved through reimbursement or compensation by insurance or otherwise or by liquidation of the Participant's assets (to the extent that
the liquidation of such assets would not itself cause severe financial hardship). A Participant must request a distribution pursuant to this Section by filing an Applicable Form with the Administrator
and providing such information as the Administrator reasonably requests. If the Administrator determines, in its sole discretion, that the requirements of this Section and Code Section 409A
permit a requested distribution, such distribution shall be made to the Participant in a lump sum as soon as administratively feasible after the distribution is approved. 

9

 

        Section 4.6    Distribution on Change of Control Event.    As soon as administratively feasible following any
Change of Control Event with respect to a Participant, the Participant's entire Accounts shall be distributed to him in a lump sum payment. 

        Section 4.7    Minimum Installment Payment.    Notwithstanding a Participant's election, the minimum amount of
any elected installment payment shall be equal to the lesser of (i) the Participant's remaining Accounts or (ii) $100,000. 

ARTICLE V

PLAN ADMINISTRATION  

        Section 5.1    Powers and Responsibilities of the Administrator.    The Administrator shall have full
responsibility and discretionary authority to administer the Plan, including (but not limited to) the following: 

        (a)   to
interpret Plan documents, decide all questions relating to an individual's eligibility to participate in the Plan, require information from a Participant or
Beneficiary, determine whether a Participant has Terminated Employment, determine the amount, manner, and timing of distributions under the Plan, resolve any claim for benefits in accordance with
Section 5.3, and appoint or employ advisors, including legal counsel, to render advice with respect to any of the it responsibilities under the Plan. 

        (b)   to
maintain sufficient records to determine each Participant's eligibility to participate and the adjustments to his Accounts; and 

        (c)   to
create forms and adopt rules as it deems necessary, desirable, or appropriate in the administration of the Plan. 

        When
making a determination or calculation, the Administrator shall be entitled to rely upon information furnished by a Participant or Beneficiary, the Employers, or the legal counsel of
an Employer. Subject to a claimant's appeal right under Section 5.3, all acts and decisions of the Administrator shall be final, binding, and conclusive. 

        Section 5.2    Indemnification of Administrator.    The Administrator shall be indemnified and held harmless by
the Employers with respect to any actual or alleged breach of responsibilities performed or to be performed hereunder. 

        Section 5.3    Claims and Claims Review Procedure.    

        (a)    Defined Terms.    For purposes of this Section, the following terms shall have the meanings set out below: 

	(1)
	"Benefit
Claim" means a request or claim for a benefit under the Plan, including a claim for a greater benefits than have been paid.

	(2)
	"Denial"
or "Denied" refers to any of the following: a denial, reduction, termination, or failure to provide or make payment (in whole or in part) of a benefit, including
determinations based on eligibility. 

        (b)    Initial Claim Filing.    All Benefit Claims must be in accordance with procedures established by the
Administrator from time to time. A Benefit Claim and any appeal thereof may be filed by the claimant or his authorized representative. 

        (c)    Initial Review of Benefit Claim.    The Administrator shall provide the claimant with written or electronic
notice of its approval or Denial of a properly filed Benefit Claim within 90 days after receiving the claim, unless special circumstances require an extension of the decision period. If special
circumstances require an extension of the time for processing the claim, the initial 90-day period may 

10

 

be
extended for up to an additional 90 days. If an extension of the initial 90-day period is required, the Administrator shall provide written notice of the required extension
before the end of the initial 90-day period, which shall (i) specify the circumstances requiring an extension and (ii) the date by which the Administrator expects to make a
decision. 

        (d)    Initial Denial of Benefit Claim.    If a Benefit Claim is Denied, the Administrator shall provide the claimant
with written or electronic notice containing (i) the specific reasons for the Denial, (ii) references to the applicable Plan provisions on which the Denial is based, (iii) a
description of any additional material or information needed and why such material or information is necessary, and (iv) a description of the applicable review process and time limits. 

        (e)    Appeal of a Claim Denial.    A claimant may appeal the Denial of a claim for benefits by filing a written
appeal with the Administrator within 60 days after the claimant receives written or electronic notice of the Denial. The claimant's appeal shall be deemed filed on receipt by the Administrator.
If a claimant does not file a timely appeal, the Administrator's decision shall be deemed final, conclusive, and binding on all persons. 

        (f)    Decision of Appeal.    The Administrator shall provide the claimant with written or electronic notice of its
decision on appeal within 60 days after receipt of the claimant's appeal request, unless special circumstances require an extension of this time period. If special circumstances require an
extension of the time to process the appeal, the processing period may be extended for up to an additional 60 days. If an extension is required, the Administrator shall provide written notice
of the required extension to the claimant before the end of the original 60-day period, which shall specify the circumstances requiring an extension and the date by which the Administrator
expects to make a decision. If the Benefits Claim is Denied on appeal, the Administrator shall provide the claimant with
written or electronic notice containing a statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to and copies of all documents, records, and other
information relevant to the Benefits Claim, as well as the specific reasons for the Denial on appeal and references to the applicable Plan provisions on which the Denial is based. The Administrator's
decision on appeal shall be final, conclusive, and binding on all persons, subject to the claimant's right to file a civil actions pursuant to ERISA Section 502(a). 

        Section 5.4    Income and Employment Tax Withholding.    The Employers or the Trustee shall withhold from any
benefits payable under the Plan such amounts as they deem necessary to satisfy applicable income and employment tax withholding. 

        Section 5.5    Notices.    Any notice or document required to be provided to the Administrator shall be
properly provided, only if personally delivered to or mailed, by registered mail, postage pre-paid, to the following: 

Corporate
Benefits Manager

ADESA, Inc.

13085 Hamilton Crossing Boulevard

Carmel, Indiana 46032 

or
as otherwise provided in written notice to the Participant. 

Any
notice or document required to be provided to the Participant or Beneficiary shall be properly given or filed, only if delivered to the Participant or if mailed by first class mail to the
Participant or Beneficiary at his most recent home address, as listed on the records of the Employer. 

ARTICLE VI

AMENDMENT AND TERMINATION OF THE PLAN  

        The Company shall have the right to amend or terminate the Plan at any time: provided, however, no such amendment of termination shall (i) result in an
acceleration of benefit payments in violation of 

11

 

Code
Section 409A and the guidance thereunder, (ii) result in any other violation of Section 409A or the guidance thereunder, or (iii) reduce the amount allocated to a
Participant's Accounts as of the date of the amendment or termination or adversely affect the Participant's rights with respect to such Accounts. 

ARTICLE VII

MISCELLANEOUS  

        Section 7.1    Nature of Participants' Rights.    The Company and a Participant's Employer (if the Participant
is employed by a Subsidiary) shall be responsible for the payment of all benefits under the Plan with respect to that Participant, to the extent that such benefits are not payable from the Trust. The
Employers shall not have any obligation to set aside assets for the provision of benefits under the Plan and, if any such funds are contributed to the Trust, they shall remain subject to the claims of
the Employers' creditors. No Participant or Beneficiary shall have any rights to any assets of an Employer or the Trust other than as a general creditor of the Company and his Employer. 

        Section 7.2    Spendthrift Clause.    No benefit or interest available hereunder shall be subject in any manner
to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or garnishment by creditors of a Participant or Beneficiary, either voluntarily or involuntarily. 

        Section 7.3    Counterparts.    This Plan may be executed in any number of counterparts, each of which shall
constitute but one and the same instrument and may be sufficiently evidenced by any one counterpart. 

        Section 7.4    No Enlargement of Employment Rights.    Nothing contained in the Plan shall be construed as a
contract of employment between an Employer and any person, nor shall the Plan be deemed to give any person the right to be retained in the employ of an Employer or limit the right of an Employer to
employ or discharge any person with or without cause, or to discipline any Employee. 

        Section 7.5    Limitations on Liability.    Notwithstanding any of the preceding provisions of the Plan, none
of the Employers, the Administrator, and each individual acting as an employee or agent of any of them shall be liable to any Participant or Beneficiary for any claim, loss, liability, or expense
incurred in connection with the Plan, except when the same shall have been judicially determined to be due to the gross negligence or willful misconduct of such person. 

        Section 7.6    Incapacity of Participant or Beneficiary.    If any person entitled to receive a distribution
under the Plan is physically or mentally incapable of personally receiving and giving a valid receipt for any payment due (unless prior claim therefor shall have been made by a duly qualified guardian
or other legal representative), then, unless and until claim therefor shall have been made by a duly appointed guardian or other legal representative of such person, the Administrator may provide for
such payment or any part thereof to be made to any other person or institution then contributing toward or providing for the care and maintenance of such person. Any such payment shall be a payment
for the account of such person and a complete discharge of any liability of the Employers and the Plan. 

        Section 7.7    Corporate Successors.    The Plan shall not be automatically terminated by a transfer or sale of
assets of the Company or by the merger or consolidation of the Company into or with any other corporation or other entity ("Transaction"), but the Plan shall be continued after the Transaction only if
and to the extent that the transferee, purchaser, or successor entity agrees to continue the Plan. 

        Section 7.8    Evidence.    Evidence required of anyone under the Plan may be by certificate, affidavit,
document, or other information that is signed, made, or presented by the proper party or parties and that the person relying thereon considers pertinent and reliable. 

12

 

        Section 7.9    Action by Employer.    Any action required of or permitted by an Employer under the Plan shall
be by resolution of its board of directors or by a person or persons authorized by resolution of such board to act on its behalf with respect to the Plan. 

        Section 7.10    Severability.    If any provision of the Plan is held to be illegal or invalid for any reason,
such illegality or invalidity shall not affect the remaining provisions of the Plan, and the Plan shall be construed and endorsed as if such illegal or invalid provisions had never been contained in
the Plan. 

        To
signify the adoption of the ADESA, Inc. 2005 Supplemental Executive Retirement Plan, the duly authorized Chief Executive Officer of ADESA, Inc. has signed this document
on the date specified below. 

	 	 	 	 	ADESA, Inc.
	

Date:	
 	

March 28, 2005
	
 	

By:	

/s/  DAVID G. GARTZKE      

13

QuickLinks

Exhibit 10.19

INTRODUCTION

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