TO:________________________________FROM:Compensation CommitteeDATE:March ___, 2016RE:Management Incentive Plan

M E M O R A N D U M                                        

              

You have been selected to participate in the LKQ Corporation Management Incentive Plan (“MIP”) for purposes of your potential 2016 bonus. The potential bonus described in this letter is subject to all of the terms and conditions set forth in this memorandum and in the MIP (a copy of which is attached to this memorandum). In the event of any inconsistency between the terms and conditions of the MIP and this memorandum, the terms and conditions of the MIP shall control.                              

                                  

1.    A change in accounting policy or GAAP;    

2.    Dispositions of assets or businesses;    

3.    Asset impairments;    

4.    Amounts incurred in connection with any financing;    

5.    Losses on interest rate swaps resulting from mark to    

market adjustments or discontinuing hedges;    

6.    Board approved restructuring, acquisition or similar charges    

including but not limited to charges in conjunction with    

or in anticipation of an acquisition;    

7.    Losses related to environmental, legal, product liability    

or other contingencies;    

8.    Changes in tax laws;    

9.    A Board approved divestiture of a material business (i.e.    

the performance goals will be adjusted to account for the    

divestiture, including, if appropriate, the pro-rata effect    

of targeted improvements);                             

10.    Changes in contingent consideration liabilities;

11.    Losses from discontinued operations;

12.    Amortization expense related to acquired intangible assets; and

13.    Other extraordinary, unusual or infrequently occurring

items as specifically disclosed in the Company's

financial statements or filings under the Securities

Exchange Act of 1934.