Document:

First Amend. to Amend & Rest. Ltd. Liability Co. Agm't of Axle Holdings II, LLC

 Exhibit 10.26 
 FIRST AMENDMENT 
 TO THE 
 AMENDED AND RESTATED 
 LIMITED LIABILITY COMPANY AGREEMENT 
 OF 
 AXLE Holdings II, LLC

 This First Amendment to the Amended and Restated Limited Liability Company Agreement of Axle Holdings II, LLC (this
“Amendment”), effective as of April 20, 2007, amends the Amended and Restated Limited Liability Company Agreement of Axle Holdings II, LLC, dated May 25, 2005 (the “Agreement”). Capitalized terms used but not otherwise
defined herein shall have the meanings given such terms in the Agreement. 
 WHEREAS, pursuant to a series of related transactions occurring
today, (i) the Company will contribute all of the shares of capital stock of Axle Holdings, Inc. to KAR Holdings II, LLC in exchange for Class B Common Units in KAR Holdings II, LLC (“KAR LLC”), (ii) certain affiliates of the
Parthenon Members and the Kelso Members are making cash contributions to KAR LLC and are entering into a limited liability company agreement of KAR LLC, (iii) Clingen is making a cash contribution to KAR LLC and will become the serving
President and Chief Executive Officer of KAR LLC and its subsidiaries, and (iv) Clingen and Parthenon and the other members of KAR LLC (including the Kelso Members) have agreed to certain restrictive covenants and the Kelso Members have agreed
to amend the Agreement to eliminate the restrictive covenants applicable to Parthenon and Clingen in Section 4.6 of the Agreement. 
 NOW THEREFORE, in accordance with Section 15.11 of the Agreement and for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 
 1. Amendment. 
 (a) The definition of “Subject Members” contained in Section 1.1 of the Agreement is hereby amended to read in its entirety as follows: 
 ““Subject Members” means the Investor Members (other than the Parthenon Members and Clingen) and the Management Members” 
 (b) Section 4.6(a)(i) of the Agreement is hereby amended to read in its entirety as follows: 
 “(i) [Intentionally Omitted]” 
 (c) Section 4.6(b) of the Agreement is hereby amended to read in its entirety as follows: 
 “(b) Confidentiality. Without the prior written consent of a majority of the Board, except to the extent required by law, rule, regulation or court order, each 

 
Subject Member shall not disclose any trade secrets, customer lists, drawings, designs, information regarding product development, marketing plans, sales
plans, management organization information (including data and other information relating to members of the Board or management), operating policies or manuals, business plans, financial records, proprietary management information systems and/or
software or other financial, commercial, business or technical information relating to the Company or any of its Subsidiaries or information designated as confidential or proprietary that the Company or any of its Subsidiaries may receive belonging
to suppliers, customers or others who do business with the Company or any of its Subsidiaries (collectively, “Confidential Information”) to any third person unless such Confidential Information has been previously disclosed
to the public by the Company, any such Subsidiary of the Company or is or becomes in the public domain (other than by reason of such Subject Member’s breach of this Section 4.6(b)).” 
 (d) Section 4.6(c) of the Agreement is hereby amended to read in its entirety as follows: 
 “(c) Non-Solicitation of Employees. During the applicable restriction period under Section 4.6(a)(ii), no Subject Member
shall directly or indirectly induce any employee of the Company or any of its Subsidiaries to terminate employment with such entity, and no Subject Member shall directly or indirectly, either individually or as owner, agent, employee, consultant or
otherwise, employ, offer employment to or otherwise interfere with the employment relationship of the Company or any of its Subsidiaries with any person who is or was employed by the Company or such Subsidiary unless, at the time of such employment,
offer or other interference, such person shall have ceased to be employed by such entity for a period of at least six months, provided that, nothing in this Section 4.6(c) shall preclude such Subject Member from placing advertisements
during the restriction period in periodicals of general circulation soliciting persons for employment or from employing any person who comes to such Subject Member solely in response to such advertisements.” 
 (e) Section 4.6(h) of the Agreement is hereby amended to read in its entirety as follows: 
 “(h) [Intentionally Omitted]” 
 2. Headings. Headings in this Amendment are for convenience of reference only, and shall neither limit nor amplify the provisions of this Amendment. 
 3. Continuation of Agreement. Except as otherwise expressly provided herein, all of the terms and provisions of the Agreement shall remain
in full force and effect and this Amendment shall not amend or modify any other rights, powers, duties, or obligations of any party to the Agreement. 
 4. Complete Agreement. This Amendment contains the entire agreement between the parties hereto with respect to the matters contained herein and supersedes and replaces any prior agreement between the
parties with respect to the matters set forth in this Amendment. 
  

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 5. Counterparts. This Amendment may be executed in any number of counterparts and any such
counterparts may be transmitted by facsimile transmission, and each of such counterparts, whether an original or a facsimile of an original, shall be deemed to be an original and all of such counterparts together shall constitute a single agreement.

 [Signatures appear on the following page.] 
  

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 IN WITNESS WHEREOF, the parties have hereunto executed this Amendment as of the date first above
written. 
  

			
	KELSO INVESTMENT ASSOCIATES VII, L.P.
		
	By:	 	Kelso GP VII, L.P., its general partner
		
	By:	 	Kelso GP VII, LLC, its general partner
		
	By:	 	/s/ James J. Connors, II
	Name:	 	James J. Connors, II
	Title:	 	Managing Member
	
	KEP VI, LLC
		
	By:	 	/s/ James J. Connors, II
	Name:	 	James J. Connors, II
	Title:	 	Managing Member2007 Annual Incentive Program for KAR Holdings

 Exhibit 10.27 
 KAR Holdings, Inc. 
 Annual Incentive Program 
 Summary of Terms 
 Program Year 2007

 KAR Holdings, Inc. Annual Incentive Program 
 Summary of Terms 
 The following is a summary of the
KAR Holdings, Inc. Annual Incentive Program. Any awards under the Program are subject to the approval of the Compensation Committee (the “Committee”) of the Board of Directors of KAR Holdings, Inc. (the “Company”). The Committee
has all final authority with respect to administration and interpretation of the Program. 
 Purpose of the Program 
 The purpose of the Program is to reward eligible employees of the Company with incentive compensation based on their contributions toward meeting and exceeding overall
Company goals. 
 Eligibility 
 Key employees of the
Company may participate in the Program as determined by the Committee. 
 Performance Period 
 Each performance period under the Program will be one year in duration and will coincide with the Company’s fiscal year (January 1 – December 31).

 Awards 
 Your award is tied to your personal
performance as well as the financial performance of the Company or your particular business unit, division, region or individual site during the performance period. Your award opportunity is expressed as a percentage of your base salary, which
typically will be determined at the end of the performance period. 
 Your award is tied to specific “threshold,” “target” and
“superior” performance goals. The “threshold” is the minimum performance goal that must be met before any award is earned. Your “target” opportunity represents the award amount you will receive if the Company meets its
targeted financial and, if applicable, non-financial goals. Your actual award opportunities at threshold, target and superior levels of performance are set forth in your personalized compensation statement. Your award is conditioned on satisfactory
performance of your job responsibilities. 
 Performance Goals and Targets 
 Through the annual planning process performance goals and targets are established. The performance goals and targets chosen for the Company, each 

  

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business unit, division, region and site reflect the Company’s strategy, competitive situation, and market potential. Your award may be weighted on a
combination of the overall performance of the Company, your business unit, division, region or site. Your actual performance goals and goal definitions are included with your personalized compensation statement materials. 
 Funding of the Program 
 It is important to note that the Program is
designed to be self-funding. That is, when the target financial performance goals for the Company, each business unit, division, region and site are established for the Program year, they include an estimated award payout based on meeting your
target performance level. The actual award payout is included in the final determination of financial performance. This method of simultaneously calculating financial performance inclusive of the award payout results in the Program’s
self-funding. 
 Calculation of Awards 
 In the award
calculation your target award opportunity is multiplied by a performance factor. The performance factor is directly related to financial performance relative to the established threshold, target, and superior performance goals. If actual financial
results fall between the threshold, target, or superior performance levels, straight-line interpolation will be used to determine the performance factor. 
 Thus, your award is the product of your target opportunity multiplied by the performance factor and goal weighting. 
  

																	
		 	 Your Target
 Award
 Opportunity
	  	X	  	 Performance
 Factor
	  	x	  	 Goal
 Weighting(s)*
	  	=	  	Award	  	
									
		 	 (Percent of
 Salary)
	  		  		  		  	(25% – 100%)	  		  		  	

	*	Multiple goal weightings will add to 100%. 

 Payment of Awards 

 All awards will be paid out in cash, net of applicable withholding taxes. Awards will be paid as soon as practicable after the audited financial results
are available for the performance period. It is generally anticipated that payment will be made within ninety days after the performance period ends. 
  

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 Discretionary Adjustment of Awards 
 The Committee retains discretion to adjust payouts up or down on a case-by-case basis. Individual award payouts may be adjusted downward due to your personal performance of your job responsibilities. Individual
award payouts may be eliminated entirely for noncompliance with corporate policy or controls. In some cases, the award payout may be increased based on your personal performance of your job responsibilities. Upward award adjustments
must be initiated by senior operational management and approved by the business unit president and CEO.  
 In addition, the Committee may adjust any
or all financial goals during a performance period to reflect unforeseen, unusual or extraordinary events or circumstances including but not limited to (i) changes in accounting principles or practices, (ii) extraordinary gains or losses
on the sale of assets, (iii) new or amended laws or regulations and (iv) acquisitions or divestitures. 
 The Committee also has the authority to
impose such other limitations on awards as it may deem necessary or appropriate. 
 Prorated Awards 
 In the event that you are hired by the Company during the performance period, the Committee may offer you a prorated award based on the number of months that you are
eligible to participate in the Program. 
 In the event that you transfer between business units or are promoted during the course of a performance period, a
prorated award may be earned based on the time you spend in each position. 
 Termination of Employment 
 Generally 
 Generally, upon termination of your employment for any
reason, you will forfeit any award that has not been paid. 
 Retirement, Disability or Death 
 In the event that your employment is terminated as a result of your retirement (defined below), disability (defined below) or your death, then your award will be prorated
based on the number of months you were employed during the performance period prior to the termination of your employment, in accordance with the Program. Payment will be paid as soon as practicable after the audited financial results are available
for the performance period. It is generally anticipated that payment will be made within ninety days after the performance period ends. In the event of your death, your award will be paid to your beneficiary or, if no beneficiary is named, to your
estate. 
  

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 For purposes of the Annual Incentive Program, “retirement” shall have the same meaning as set forth
under any tax qualified retirement Program maintained by the Company for the benefit of the participant and “disability” shall mean your inability to engage in any substantial gainful activity by reason of any medically determinable
physical or mental impairment for the period of time as set forth under the long term disability Program maintained by the Company for the benefit of the participant. 
 Voluntary Termination or Termination by the Company 
 In the event that your employment with the Company is terminated
voluntarily by you or by the Company, you will forfeit any award that has not been paid, in accordance with the Program. 
 Termination or Modification of
the Program 
 The Committee may modify or terminate the Program at any time, effective at such date as the Committee may determine. 
  

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