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Document

Exhibit 10.8

KAR Auction Services, Inc.
Annual Incentive Program
Summary of Terms
2021

        

KAR Auction Services, Inc. Annual Incentive Program
Summary of Terms
The following is a summary of the 2021 KAR Auction Services, Inc. Annual Incentive Program (the “Program”) which is part of the KAR Auction Services, Inc. 2009 Omnibus Stock and Incentive Plan, as amended and restated on June 10, 2014 (the “Omnibus Plan”).  Any awards under the Program are subject to the approval of the Compensation Committee (the “Committee”) of the Board of Directors (the “Board”) of KAR Auction Services, Inc. (the “Company”).  The Committee has all final authority with respect to administration and interpretation of the Program.  All capitalized terms herein that are not otherwise defined shall have the meanings given to such terms in the Omnibus Plan.
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. 
Effective Date
The Program is effective January 1, 2021.  The Company reserves the right to revise or terminate the Program at any time, with or without advance notice, in accordance with applicable law.
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
The award is tied to the performance of the Company and/or particular business unit, division, region or individual site during the performance period.  The award opportunity is expressed as a percentage of base salary, which typically will be determined at the end of the performance period.  The award is conditioned on satisfactory performance of 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 business unit, division, region and site reflect the Company’s strategy, competitive situation and market potential.  The award may be weighted on a combination of the performance of the Company, business unit, division, region or site.  Actual performance goals and goal definitions are determined by the Committee and communicated to each participant.
The 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.  The “target” opportunity represents the award amount received if the Company meets its targeted financial and, if applicable, non-financial goals.  The “superior” opportunity represents the maximum performance goal that must be met for a maximum payout.  The actual performance goals, goal definitions and
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award opportunities at threshold, target and superior levels of performance are determined by the Committee and communicated to each participant. 
Calculation of Awards
In calculating your award, base salary as of the first full pay cycle in July during the Program year will be utilized.  Please note that if your bonus opportunity changes during the Program year, your award will be prorated as explained in the examples below. 
Example One:  Employee is bonus eligible with a base salary of $40,000 with a target opportunity of 20% and receives a promotion on 8/1/2021 with a base salary of $45,000 and a target opportunity of 25%. 
Bonus calculation would be as follows:
$40,000 x 20% = $8,000 (target award) x (performance factor x goal weighting) x proration 7/12ths
plus
$40,000 x 25% = $10,000 (target award) x (performance factor x goal weighting) x proration 5/12ths
Base salary as of the first full pay cycle in July will be utilized and applied to bonus opportunity changes
Example Two:  Employee is bonus eligible with a base salary of $40,000 with a target opportunity of 20% and receives a promotion on 3/1/2021 with a base salary of $45,000 and a target opportunity of 25%.  
Bonus calculation would be as follows:
$45,000 x 20% = $9,000 (target award) x (performance factor x goal weighting) x proration 2/12ths
plus
$45,000 x 25% = $11,250 (target award) x (performance factor x goal weighting) x proration 10/12ths
Base salary as of the first full pay cycle in July will be utilized and applied to bonus opportunity changes
The performance factor is directly related to performance relative to the established threshold, target and superior performance goals.  If actual results fall between the threshold, target or superior performance levels, straight-line interpolation will be used to determine the performance factor unless otherwise determined by the Committee.  Multiple goal weightings must add to 100%.
Payment of Awards
Generally, all awards are paid out annually; however, certain non-executive officer positions, if approved by the Committee and the applicable business unit president, may be paid out quarterly or semiannually. 
Generally, all awards will be paid out in cash, net of applicable withholding taxes.  While awards are generally paid as soon as practicable after the audited financial results are available for the performance period, in the Committee’s sole discretion, payments to participants other than executive officers of the Company may be based on an estimation of the audited financial results.  Additionally, awards may be paid in one or more installments, in the Committee’s sole discretion. 
In no event will any portion of any awards payable under the Program (including any pro rata awards paid upon certain terminations of employment described below and any installments) be paid later than March 15, 2022.
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 or eliminated entirely due to personal performance of job responsibilities and/or noncompliance with corporate policy or controls.
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In addition, consistent with the terms of the Omnibus Plan, as applicable, the Committee may adjust any or all performance 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 an individual transfers between business units or is promoted during the course of a performance period, a prorated award may be earned based on the time spent in each position. 
All eligible employees hired or promoted on or before the 15th of the month will be prorated based on the number of months of Program eligibility, including the month of hire.
All eligible employees hired or promoted on or after the 16th of the month will be eligible to participate in the Program at the beginning of the following month. 
All eligible employees hired on or after November 1st of the current year will not be eligible to participate in the Program until the beginning of the next Program year.
Termination of Employment
Forfeiture
Generally, unless an individual’s Committee-approved employment agreement provides otherwise, upon termination of employment for any reason, the individual will forfeit any award that has not been paid.
Retirement, Disability or Death
In the event that employment is terminated as a result of retirement (defined below), disability (defined below) or death, the award will be prorated based on the number of months employed during the performance period prior to the termination of employment and based on and subject to actual performance during the performance period, in accordance with the Program.  Payment will be paid as soon as practicable in the following year after the audited financial results are available for the performance period, but in no event later than March 15, 2022.  In the event of death, the award will be paid to the individual’s beneficiary or, if no beneficiary is named, to their estate.
For purposes of the Program: (i) retirement shall mean a termination of a participant’s employment, other than for Cause, on or after the attainment of age 65, and (ii) disability shall mean the 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 
Other than in the event of a termination of employment as a result of retirement, in the event that a participant voluntarily terminates from employment or is involuntarily terminated by the Company, the participant will forfeit any award that has not been paid, in accordance with the Program.  In 

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other words, a participant must be employed by the Company on the date the award is actually paid by the Company.
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.  The Committee or Board may, prior to the end of the Program year, adopt a resolution fixing a minimum aggregate amount, which amount is in the Committee or Board’s discretion (a “Pool”), to be paid to participants under the Program for 2021.  After such a Pool is established, (i) the Program may not be modified or terminated and the amount of the Pool may not be reduced after December 31, 2021, and (ii) any amounts forfeited by individual participants hereunder because they are not employed as of the payment date will not reduce the Pool but will be reallocated among other participants in the Program, and shall not revert to the Company.

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Exhibit 10.30

KAR AUCTION SERVICES, INC.
2009 OMNIBUS STOCK AND INCENTIVE PLAN
NON-QUALIFIED STOCK OPTION AWARD AGREEMENT
This Non-Qualified Stock Option Award Agreement (this “Award Agreement”), dated as of [●] (the “Grant Date”), is made by and between KAR Auction Services, Inc., a Delaware corporation (the “Company”), and [●] (the “Recipient”).
1.Definitions. Any capitalized term that is used but not defined in this Award Agreement shall have the meaning ascribed to such term in the KAR Auction Services, Inc. 2009 Omnibus Stock and Incentive Plan (as may be amended from time to time, the “Plan”), and (ii) the terms set forth below shall have the following meanings:
(a)“Exchange” means, for any date, New York Stock Exchange or, if different from the New York Stock Exchange, the principal U.S. securities exchange on which the Common Stock is listed on such date.
(b)“Good Reason” shall have the meaning set forth in the Recipient’s employment agreement, to the extent applicable.
(c)“Retirement” means the Recipient’s voluntary termination of employment (i) on or after attaining 65 years of age and at least 5 years of service with the Company and its Affiliates or (ii) on or after December 31, 2022, having attained 60 years of age as of the Grant Date, and having at least 10 years of service with the Company and its Affiliates through the date of termination.
(d)“Option Expiration Date” means the tenth (10th) anniversary of the Grant Date.
(e)“Sustained Stock Price” means following the Grant Date, the closing price of the Common Stock at or above the applicable Stock Price Hurdle (as defined below) is maintained for twenty (20) consecutive Trading Days.
(f)“Trading Day” means any day (i) other than a Saturday or Sunday and (ii) on which the Exchange is open for trading during its regular trading session, notwithstanding the Exchange closing prior to its scheduled closing time.
2.Grant of Stock Option.  The Company hereby grants to the Recipient an option to purchase [●] shares of Common Stock at an Exercise Price of $[●] per share, (the “Option”) as of the Grant Date. 
3.Vesting. 
(a)Time-Based Option.  A total of [●] shares of Common Stock subject to the Option (the “Time-Vesting Option”) shall vest and become exercisable in equal installments on each of the first four (4) anniversaries of the Grant Date (each such date, a “Scheduled Vesting Date”); 

provided that the Recipient remains in continuous employment with the Company or an Affiliate through, and has not given or received a notice of termination of such employment as of, the applicable Scheduled Vesting Date, unless otherwise provided in Sections 6 and 7, below. 
(b)Performance-Based Option.  A total of [●] shares of Common Stock subject to the Option (the “Performance-Vesting Option”) shall become eligible to vest and become exercisable in equal 25% increments, each upon the later of the occurrence of the Scheduled Vesting Date and the attainment of the Sustained Stock Price in respect of the applicable “Stock Price Hurdle,” as set forth below (the later of such dates, the “Performance Vesting Date”); provided that the Recipient remains in continuous employment with the Company or an Affiliate through, and has not given or received a notice of termination of such employment as of, the applicable Performance Vesting Date, unless otherwise provided in Sections 6 and 7, below.
						
	Stock Price Hurdle	Percentage of Performance-Vesting Option Vesting (following applicable Scheduled Vesting Date)
	$xx [$5.00 above the Exercise Price]	25%
	$xx [$10.00 above the Exercise Price]	25%
	$xx [$15.00 above the Exercise Price]	25%
	$xx [$20.00 above the Exercise Price]	25%

4.Timing of Exercise.  Following the vesting of the Option as set forth in Section 3 hereof, the Recipient may exercise all or any portion of such Option at any time prior to the earliest to occur of:
(a)The Option Expiration Date;
(b)The first (1st) anniversary of the Recipient’s termination of employment by reason of the Recipient’s death or Disability; and
(c)The three (3) month period anniversary of the Recipient’s termination of employment by reason of termination of employment by the Company without Cause or a termination of employment by the Recipient for any reason, except in either case for a termination which constitutes Retirement (in which case the vested portion of the Option will remain exercisable until the Option Expiration Date, or a termination addressed in Section 7 below which shall be governed by such section); provided that in the event that the Employee dies after terminating his employment, but within the period during which the Option would otherwise be exercisable hereunder, such three (3) month period shall be extended to the date that is the first (1st) anniversary of such termination.
The Administrator may at any time extend the post-termination exercise period of all or any portion of the Option up to and including, but not beyond, the Option Expiration Date.
5.Method of Exercise.  The Recipient may exercise all or any portion of the Option by giving written notice of exercise to the Company specifying the number of shares of Common 
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Stock to be purchased, accompanied by payment in full of the aggregate exercise price of the shares of Common Stock so purchased in cash or its equivalent.  As determined by the Administrator in its sole discretion, payment of the aggregate exercise price of such shares of Common Stock may also be made (i) by means of any cashless exercise procedure approved by the Administrator (including the withholding of shares of Common Stock otherwise issuable upon exercise), (ii) in the form of shares of Common Stock already owned by the Recipient which have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the shares of Common Stock with respect to which the Option is being exercised, (iii) any other form of consideration approved by the Administrator and (iv) any combination of the foregoing.  
6.Termination of Employment.
(a)If the Recipient experiences a termination of employment with the Company and its Affiliates by reason of the Recipient’s Retirement, then the unvested portions of the Time-Vesting Option and the Performance-Vesting Option as of the date of such termination shall continue to vest in accordance with the applicable vesting schedule set forth in Section 3 hereof, except that the requirement to continue providing services until the applicable vesting dates shall no longer apply. 
(b)If the Recipient experiences a termination of employment with the Company and its Affiliates on account of the Recipient’s death or Disability, then (i) the unvested portion of the Time-Vesting Option as of the date of such termination of employment shall vest in full immediately upon such termination of employment and shall be exercisable until the earlier of the first (1st) anniversary of such termination of employment or the Option Expiration Date and (ii) with respect to the Performance-Vesting Option, the service vesting criteria shall be deemed achieved as of such termination of employment and the Performance-Vesting Option shall continue to be eligible to vest in accordance with the applicable vesting schedule set forth in Section 3 hereof until the earlier of the first (1st) anniversary of such termination of employment or the Option Expiration Date.  Any portion of the Performance-Vesting Option that vest during such period shall be exercisable until the earlier of the first (1st) anniversary of the termination of employment or the Option Expiration Date.  Any portion of the Performance-Vesting Option that is unvested at the end of such period, shall be forfeited on such date.
(c)If the Recipient experiences a termination of employment with the Company and its Affiliates for Cause, then the Time-Vesting Option and the Performance-Vesting Option, whether vested or unvested, as of the date of such termination of employment shall be forfeited on such date.
(d)If the Recipient experiences a termination of employment with the Company and its Affiliates for any reason other those set forth in Sections 6(a), 6(b) and 6(c) above, or as provided in Section 7 below, then any unvested portions of the Time-Vesting Option and the Performance-Vesting Option as of the date of such termination of employment shall be forfeited on such date.
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7.Change in Control. 
(a)Upon a Change in Control: (i) the unvested portion of the Time-Vesting Option assumed by the Company or its successor shall continue to vest in accordance with the applicable vesting schedule set forth in Section 3 hereof, (ii) with respect to the unvested portion of the Performance-Vesting Option, the Committee shall determine (in its discretion and prior to the Change in Control) whether the price (whether paid in cash or property) in the transaction constituting a Change in Control equals or exceeds the applicable Stock Price Hurdle and the unvested portion of the Performance-Vesting Option shall continue to vest based on continued service as though Sustained Stock Price in respect of such Stock Price Hurdle were achieved at the time of the Change in Control, and the unvested portion of the Performance-Vesting Option that is not eligible to vest based on such Sustained Stock Price shall be forfeited as of the Change in Control. 
(b)If following a Change in Control the Recipient’s employment with the Company or its successor is terminated by the Company without Cause or by the Recipient for Good Reason (each, a “CIC Termination”), then (i) the vested portions of the Time-Vesting Option and the Performance-Vesting Option shall remain exercisable until the earlier of the Option Expiration Date or the second (2nd) anniversary of such CIC Termination, and (ii) the unvested portions of the Time-Vesting Option and the Performance-Vesting Option shall become fully vested on the date of such CIC Termination and shall be exercisable until the earlier of the Option Expiration Date or the second (2nd) anniversary of such CIC Termination.  Notwithstanding the above, if the Recipient is eligible for Retirement on the date of such CIC Termination, then the Option shall remain exercisable until the Option Expiration Date.
(c)To the extent the unvested portions of the Time-Vesting Option and the Performance-Vesting Option are not assumed by the Company or its successor upon such a Change in Control, then (i) the unvested portion of the Time-Vesting Option shall immediately become fully vested on the date of such Change in Control and (ii) the unvested portion of the Performance-Vesting Option that would remain eligible to vest pursuant to a determination described in Section 7(a)(ii) above shall immediately become fully vested on the date of such Change in Control, and (iii) the remaining unvested portion of the Performance-Vesting Option shall be forfeited as of the Change in Control.  Payment in respect of the portions of Time-Vesting Option and the Performance-Vesting Option that vest under this section shall be made in accordance with Section 11 of the Plan as soon as administratively feasible thereafter, but in no event later than sixty (60) days following the date of the Change in Control.
8.Rights as Stockholder.  The Recipient shall have no rights of a stockholder with respect to the shares of Common Stock subject to the Option (including the right to vote and the right to receive distributions or dividends) unless and until shares of Common Stock are issued in respect thereof.
9.Award Agreement Subject to Plan.  This Award Agreement is made pursuant to all of the provisions of the Plan, which is incorporated herein by this reference, and is intended, and shall be interpreted in a manner, to comply therewith.
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10.No Rights to Continuation of Employment.  Nothing in the Plan or this Award Agreement shall confer upon the Recipient any right to continue in the employ of the Company or any Affiliate thereof or shall interfere with or restrict the right of the Company or its Affiliates to terminate the Recipient’s employment any time for any reason whatsoever, with or without cause.
11.Tax Withholding.  The Company shall be entitled to require a cash payment by or on behalf of the Recipient and/or to deduct from the shares of Common Stock otherwise issuable hereunder or other compensation payable to the Recipient the amount of any federal, state or local withholding taxes in respect of the Option, its exercise or any payment or transfer under or with respect to the Option, in each case in accordance with the terms of the Plan.
12.Governing Law.  This Award Agreement shall be governed by, interpreted under, and construed and enforced in accordance with the internal laws, and not the laws pertaining to conflicts or choices of laws, of the State of Delaware applicable to agreements made and to be performed wholly within the State of Delaware.
13.Award Agreement Binding on Successors.  The terms of this Award Agreement shall be binding upon the Recipient and upon the Recipient’s heirs, executors, administrators, personal representatives, transferees, assignees and successors in interest, and upon the Company and its successors and assignees, subject to the terms of the Plan.
14.No Assignment.  Notwithstanding anything to the contrary in this Award Agreement, neither this Award Agreement nor any rights granted herein shall be assignable by the Recipient.
15.Necessary Acts.  The Recipient hereby agrees to perform all acts, and to execute and deliver any documents that may be reasonably necessary to carry out the provisions of this Award Agreement, including but not limited to all acts and documents related to compliance with federal and/or state securities and/or tax laws.
16.Severability.  Should any provision of this Award Agreement be held by a court of competent jurisdiction to be unenforceable, or enforceable only if modified, such holding shall not affect the validity of the remainder of this Award Agreement, the balance of which shall continue to be binding upon the parties hereto with any such modification (if any) to become a part hereof and treated as though contained in this original Award Agreement.  Moreover, if one or more of the provisions contained in this Award Agreement shall for any reason be held to be excessively broad as to scope, activity, subject or otherwise so as to be unenforceable, in lieu of severing such unenforceable provision, such provision or provisions shall be construed by the appropriate judicial body by limiting or reducing it or them, so as to be enforceable to the maximum extent compatible with the applicable law as it shall then appear, and such determination by such judicial body shall not affect the enforceability of such provisions or provisions in any other jurisdiction.
17.Entire Agreement.  This Award Agreement and the Plan contain the entire agreement and understanding among the parties as to the subject matter hereof, and supersede 
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any other agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof.
18.Headings.  Headings are used solely for the convenience of the parties and shall not be deemed to be a limitation upon or descriptive of the contents of any such Section.
19.Counterparts; Electronic Signature.  This Award Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which together shall be deemed to be one and the same instrument.  The Recipient’s electronic signature of this Award Agreement shall have the same validity and effect as a signature affixed by the Recipient’s hand.
20.Amendment.  No amendment or modification hereof shall be valid unless it shall be in writing and signed by all parties hereto.
[Signature Page Follows]

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IN WITNESS WHEREOF, the Company and the Recipient have duly executed this Agreement as of the date first above written.

KAR AUCTION SERVICES, INC.
By:                                                                       
Name:
Title:
RECIPIENT

                                                              
Name

[Signature Page to Non-Qualified Stock Option Award Agreement]
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