<PAGE>
 
                                                                  EXHIBIT 10.4.3



                          [TOYOTA LOGO APPEARS HERE]



                               DEALER AGREEMENT
                                -----  --------


<PAGE>
 
                     TOYOTA DEALER AGREEMENT

                        TABLE OF CONTENTS

<TABLE>
<S>                                                                       <C>
    PURPOSES AND OBJECTIVES OF THIS AGREEMENT...........................   1

    I.   RIGHTS GRANTED TO THE DEALER...................................   2

   II.   RESPONSIBILITIES ACCEPTED BY THE DEALER........................   2

  III.   TERM OF AGREEMENT..............................................   2

   IV.   OWNERSHIP OF DEALERSHIP........................................   3

    V.   MANAGEMENT OF DEALERSHIP.......................................   3

   VI.   CHANGE IN MANAGEMENT OR OWNERSHIP..............................   3

  VII.   APPROVED DEALER LOCATIONS......................................   4

 VIII.   PRIMARY MARKET AREA............................................   4

   IX.   STANDARD PROVISIONS............................................   5

    X.   ADDITIONAL PROVISIONS..........................................   5

   XI.   EXECUTION OF AGREEMENT.........................................   6

  XII.   CERTIFICATION..................................................   6

 XIII.   ACQUISITION, DELIVERY AND INVENTORY OF TOYOTA PRODUCTS
         A. Acquisition of Toyota Products..............................   8
         B. Availability and Allocation of Product......................   8
         C. Prices and Terms of Sale....................................   8
         D. Mode, Place and Charges for Delivery of Products............   9
         E. Inventory Damage Claims and Liability.......................   9
         F. Delay or Failure of Delivery................................   9
         G. Diversion Charges...........................................   9
         H. Changes of Design, Options or Specifications................  10
         I. Discontinuance of Manufacture or Importation................  10
         J. Minimum Vehicle Inventories.................................  10
         K. Product Modifications.......................................  10
</TABLE>

                                       i
<PAGE>
 
<TABLE>
<S>                                                                    <C>
  XIV.   DEALER MARKETING OF TOYOTA PRODUCTS
         A. DEALER's Sales Responsibilities.............................  10
         B. Export Prohibition..........................................  11
         C. Used Vehicles...............................................  11
         D. Assistance Provided by DISTRIBUTOR..........................  11
            1. Sales Training Assistance................................  11
            2. Sales Promotion Assistance...............................  12
            3. Field Sales Personnel Assistance.........................  12

   XV.   DEALER SERVICE OBLIGATIONS
         A. Customer Service Standards..................................  12
         B. New Motor Vehicle Pre-Delivery Service......................  13
         C. Warranty and Policy Service.................................  13
         D. Use of Parts and Accessories in Non-Warranty Servicing......  13
         E. Warranty Disclosures as to Non-Genuine Parts and Accessories  14
         F. Service Campaign Inspections and Corrections................  14
         G. Compliance With Safety and Emission Control Requirements....  14
         H. Compliance With Consumer Protection Statutes, Rules and
              Regulations...............................................  15

  XVI.   SERVICE AND PARTS OPERATIONS
         A. Organization and Standards..................................  15
         B. Service Equipment and Special Tools.........................  16
         C. Parts Inventory.............................................  16
         D. Assistance Provided by DISTRIBUTOR..........................  16
            1. Service Training Assistance..............................  16
            2. Manuals and Materials....................................  16
            3. Field Personnel Assistance...............................  16

 XVII.   CUSTOMER SATISFACTION RESPONSIBILITIES.........................  17

XVIII.   DEALERSHIP FACILITIES AND IDENTIFICATION
         A. Facilities..................................................  17
         B. DEALER's Operating Hours....................................  18
         C. Signs.......................................................  18
         D. Use of Toyota Marks.........................................  18
            1. Use by DEALER............................................  18
            2. Discontinuance of Use....................................  19

  XIX.   EVALUATION OF DEALER'S PERFORMANCE
         A. Sales Performance Evaluation................................  20
         B. Service Performance Evaluation..............................  20
         C. Parts Performance Evaluation................................  20
         D. Customer Satisfaction Performance Evaluation................  20
         E. Dealership Facilities Evaluation............................  21
</TABLE>

                                       ii
<PAGE>
 
<TABLE>
<S>                                                                      <C>
   XX.   CAPITAL, CREDIT, RECORDS AND UNIFORM SYSTEMS
         A. Net Working Capital.........................................  21
         B. Flooring Line...............................................  21
         C. Payment Terms and Settlement of Accounts....................  22
         D. Uniform Accounting System...................................  22
         E. Records Maintenance.........................................  23
         F. Examination of Dealership Accounts and Records..............  23
         G. Taxes.......................................................  23
         H. Confidentiality.............................................  23
         I. Information Communication Systems...........................  24
         J. Sales Reporting.............................................  24

  XXI.   RIGHT OF FIRST REFUSAL OR OPTION TO PURCHASE
         A. Rights Granted..............................................  24
         B. Exercise of DISTRIBUTOR's Rights............................  24
         C. Right Of First Refusal......................................  25
         D. Option to Purchase..........................................  25
         E. DEALER's Obligations........................................  25
         F. No Applicability to Nominated Successor.....................  26

 XXII.   SUCCESSION RIGHTS UPON DEATH OR INCAPACITY
         A. Succession to Ownership After Death of Owner................  26
         B. Incapacity of Owner.........................................  27
         C. Nomination of Successor Prior to Death or Incapacity of
              Owner.....................................................  27

XXIII.   TERMINATION
         A. Voluntary Termination by DEALER.............................  28
         B. Termination for Cause.......................................  28
            1. Immediate Termination....................................  28
            2. Termination Upon Sixty Days Notice.......................  29
            3. Termination for Failure of Performance...................  30
            4. Termination Upon Death or Incapacity.....................  30
         C. Notice of Termination.......................................  31
         D. Continuance of Business Relations...........................  31
         E. Repurchase Provisions.......................................  31
            1. DISTRIBUTOR's Obligations................................  31
            2. Responsibilities of DEALER...............................  32
            3. Payment by DISTRIBUTOR...................................  32

 XXIV.   MANAGEMENT OF DISPUTES
         A. Alternative Dispute Resolution Programs.....................  33
         B. Applicable Law..............................................  33
         C. Mutual Release..............................................  33
</TABLE>

                                      iii
<PAGE>
 
<TABLE>
<S>                                                                       <C>
  XXV.   DEFENSE AND INDEMNIFICATION
         A. Defense and Indemnification by DISTRIBUTOR..................  34
         B. Defense and Indemnification by DEALER.......................  34
         C. Conditional Defense and/or Indemnification..................  35

 XXVI.   GENERAL PROVISIONS
         A. Notices.....................................................  36
         B. No Implied Waivers..........................................  37
         C. Sole Agreement of the Parties...............................  37
         D. Dealer Not an Agent or Representative.......................  37
         E. Assignment of Rights or Delegation of Duties................  38
         F. No Franchise Fee............................................  38
         G. Severability................................................  38
         H. New and Superseding Dealer Agreements.......................  38
         I. Benefit.....................................................  38
         J. No Fiduciary Relationship...................................  39
         K. No Joint Employment.........................................  39
         L. Consent of DISTRIBUTOR......................................  39
         M. DISTRIBUTOR's Policies......................................  39

XXVII.   DEFINITIONS
         A. Owner.......................................................  40
         B. General Manager.............................................  40
         C. Dealer Facilities...........................................  40
         D. Approved Location(s)........................................  40
         E. Toyota Marks................................................  40
         F. Toyota Products.............................................  40
         G. Toyota Motor Vehicles.......................................  40
         H. Genuine Toyota Parts and Accessories........................  40
</TABLE>

                                       iv
<PAGE>
 
                            TOYOTA DEALER AGREEMENT
                                        

This is an Agreement between   Toyota Motor Sales, U.S.A., Inc.
                               ------------------------------------------------
(DISTRIBUTOR), and   FAA Concord T Inc.
                     ----------------------------------------------------------
(DEALER), a(n) [ ] individual, [ ] partnership, [X] corporation. If a
corporation, DEALER is duly incorporated in the State of     California
                                                          ---------------------
and doing business as     Concord Toyota                                       .
                       --------------------------------------------------------



                   PURPOSES AND OBJECTIVES OF THIS AGREEMENT
                                        

DISTRIBUTOR sells Toyota Products which are manufactured or approved by Toyota
Motor Corporation (FACTORY) and imported and/or sold to DISTRIBUTOR by Toyota
Motor Sales, U.S.A., Inc. (IMPORTER). It is of vital importance to DISTRIBUTOR
that Toyota Products are sold and serviced in a manner which promotes consumer
confidence and satisfaction and leads to increased product acceptance.
Accordingly, DISTRIBUTOR has established a network of authorized Toyota dealers,
operating at approved locations and pursuant to certain standards, to sell and
service Toyota Products. DEALER desires to become one of DISTRIBUTOR's
authorized dealers. Based upon the representations and promises of DEALER, set
forth herein, DISTRIBUTOR agrees to appoint DEALER as an authorized Toyota
dealer and welcomes DEALER to DISTRIBUTOR's network of authorized dealers of
Toyota Products.

This Agreement sets forth the rights and responsibilities of DISTRIBUTOR as
seller and DEALER as buyer of Toyota Products. DISTRIBUTOR enters into this
Agreement in reliance upon DEALER's integrity, ability, assurance of personal
services, expressed intention to deal fairly with the consuming public and with
DISTRIBUTOR, and promise to adhere to the terms and conditions herein. Likewise,
DEALER enters into this Agreement in reliance upon DISTRIBUTOR's promise to
adhere to the terms and conditions herein. DISTRIBUTOR and DEALER shall refrain
from conduct which may be detrimental to or adversely reflect upon the
reputation of the FACTORY, IMPORTER, DISTRIBUTOR, DEALER or Toyota Products in
general. The parties acknowledge that the success of the relationship between
DISTRIBUTOR and DEALER depends upon the mutual understanding and cooperation of
both DISTRIBUTOR and DEALER.

Dealer Code  04176
            -------

                                       1
<PAGE>
 
I.     RIGHTS GRANTED TO THE DEALER

       Subject to the terms of this Agreement, DISTRIBUTOR hereby grants DEALER
       the non-exclusive right:

       A. To buy and resell the Toyota Products identified in the Toyota Product
          Addendum hereto which may be periodically revised by IMPORTER;

       B. To identify itself as an authorized Toyota dealer utilizing approved
          signage at the location(s) approved herein;

       C. To use the name Toyota and the Toyota Marks in the advertising,
          promotion, sale and servicing of Toyota Products in the manner herein
          provided.

       DISTRIBUTOR reserves the unrestricted right to sell Toyota Products and
       to grant the privilege of using the name Toyota or the Toyota Marks to
       other dealers or entities, wherever they may be located.

II.    RESPONSIBILITIES ACCEPTED BY THE DEALER

       DEALER accepts its appointment as an authorized Toyota dealer and agrees
       to:

       A. Sell and promote Toyota Products subject to the terms and conditions
          of this Agreement;

       B. Service Toyota Products subject to the terms and conditions of this
          Agreement;

       C. Establish and maintain satisfactory dealership facilities at the
          location(s) set forth herein; and

       D. Make all payments to DISTRIBUTOR when due.

III.   TERM OF AGREEMENT

       This Agreement is effective this 1st  day of October,  1998, and
                                        ---         -------   ----         
       shall continue for a period of 24 Months, and shall expire on
                                      ---------
       September 30, 2000, unless ended earlier by mutual agreement or 
       ------------------
       terminated as provided herein. This Agreement may not be continued beyond
       its expiration date except by written consent of DISTRIBUTOR and
       IMPORTER.

                                       2
<PAGE>
 
IV.    OWNERSHIP OF DEALERSHIP

       This Agreement is a personal service Agreement and has been entered into
       by DISTRIBUTOR in reliance upon and in consideration of DEALER's
       representation that only the following named persons are the Owners of
       DEALER, that such persons will serve in the capacities indicated, and
       that such persons are committed to achieving the purposes, goals and
       commitments of this Agreement:

<TABLE>
<CAPTION>
          OWNERS'                                                                     PERCENT OF
           NAMES                                   TITLE                              OWNERSHIP
<S>                                   <C>                                   <C>
FirstAmerica Automotive, Inc.                Holding Company                              100%
---------------------------------     ---------------------------------     ---------------------------------      
Thomas A. Price                              President                                      0%
---------------------------------     ---------------------------------     ---------------------------------      

---------------------------------     ---------------------------------     ---------------------------------      

---------------------------------     ---------------------------------     ---------------------------------      

---------------------------------     ---------------------------------     ---------------------------------      

---------------------------------     ---------------------------------     ---------------------------------      
</TABLE>

V.     MANAGEMENT OF DEALERSHIP

       DISTRIBUTOR and DEALER agree that the retention of qualified management
       is of critical importance to satisfy the commitments made by DEALER in
       this Agreement. DISTRIBUTOR, therefore, enters into this Agreement in
       reliance upon DEALER's representation that Steven S. Hallock, and no 
                                                  -----------------
       other person, will exercise the function of General Manager, be in
       complete charge of DEALER's operations, and will have authority to make
       all decisions on behalf of DEALER with respect to DEALER's operations.
       DEALER further agrees that the General Manager shall devote his or her
       full efforts to DEALER's operations.

VI.    CHANGE IN MANAGEMENT OR OWNERSHIP

       This is a personal service contract. DISTRIBUTOR has entered into this
       Agreement because DEALER has represented to DISTRIBUTOR that the Owners
       and General Manager of DEALER identified herein possess the personal
       qualifications, skill and commitment necessary to ensure that DEALER will
       promote, sell and service Toyota Products in the most effective manner,
       enhance the Toyota image and increase market acceptance of Toyota
       Products. Because DISTRIBUTOR has entered into this Agreement in reliance
       upon these representations and DEALER's assurances of the active
       involvement of such persons in DEALER operations, any change in
       ownership, no matter what the share or relationship between parties, or
       any changes in General Manager from the person specified herein, requires
       the prior written consent of DISTRIBUTOR, which DISTRIBUTOR shall not
       unreasonably withhold. 

                                       3
<PAGE>
 
       DEALER agrees that factors which would make DISTRIBUTOR's withholding of
       consent reasonable would include, without limitation, the failure of a
       new Owner or General Manager to meet DISTRIBUTOR's standards with regard
       to financial capability, experience and success in the automobile
       dealership business.

VII.   APPROVED DEALER LOCATIONS

       In order that DISTRIBUTOR may establish and maintain an effective network
       of authorized Toyota dealers, DEALER agrees that it shall conduct its
       Toyota operation only and exclusively in facilities and at locations
       herein designated and approved by DISTRIBUTOR. DISTRIBUTOR hereby
       designates and approves the following facilities as the exclusive
       location(s) for the sale and servicing of Toyota Products and the display
       of Toyota Marks:

       New Vehicle Sales and Showroom   Used Vehicle Display and Sales
       -------------------------------  ------------------------------

       1090 Concord Avenue              1090 Concord Avenue
       Concord, California              Concord, California

       Sales and General Office         Body and Paint
       ------------------------         --------------

       SAME AS ABOVE                    NONE

       Parts                            Service
       -----                            -------
 
       SAME AS ABOVE                    1090 Concord Avenue
                                        Concord, California

       Other Facilities
       ----------------

       NONE

       DEALER may not, either directly or indirectly, display Toyota Marks or
       establish or conduct any dealership operations contemplated by this
       Agreement, including the display, sale and servicing of Toyota Products,
       at any location or facility other than those approved herein without the
       prior written consent of DISTRIBUTOR. DEALER may not modify or change the
       usage or function of any location or facility approved herein or
       otherwise utilize such locations or facilities for any functions other
       than the approved function(s) without the prior written consent of
       DISTRIBUTOR.

VIII.  PRIMARY MARKET AREA

       DISTRIBUTOR will assign DEALER a geographic area called a Primary Market
       Area ("PMA"). The PMA is used by DISTRIBUTOR to evaluate DEALER's
       performance of its obligations,

                                       4
<PAGE>
 
       among other things. DEALER agrees that it has no exclusive right to any
       such PMA. DISTRIBUTOR may add new dealers, relocate dealers, or adjust
       DEALER's PMA as it reasonably determines is necessary. DEALER's PMA is
       set forth on the PMA Addendum hereto.

       Nothing contained in this Agreement, with the exception of Section
       XIV(B), shall limit or be construed to limit the geographical area in
       which, or the persons to whom, DEALER may sell or promote the sale of
       Toyota products.

IX.    STANDARD PROVISIONS

       The "Toyota Dealer Agreement Standard Provisions" are incorporated herein
       and made part of this Agreement as if fully set forth herein.

X.     ADDITIONAL PROVISIONS

       In consideration of DISTRIBUTOR's agreement to appoint DEALER as an
       authorized Toyota dealer, DEALER further agrees:

       1.   DEALER agrees that this agreement incorporates, here by this
            reference, the terms of the Addendum to Section X-Additional
            Provisions dated                           .
                             --------------------------


                                                         Dealer Initials TAP
                                                                        -----
                                       5
<PAGE>
 
XI.    EXECUTION OF AGREEMENT

       Notwithstanding any other provision herein, the parties to this
       Agreement, DISTRIBUTOR and DEALER, agree that this Agreement shall be
       valid and binding only if it is signed:

       A. On behalf of DEALER by a duly authorized person;

       B. On behalf of DISTRIBUTOR by the President and/or an authorized General
          Manager, if any, of DISTRIBUTOR; and

       C. On behalf of IMPORTER, solely in connection with its limited
          undertaking herein, by President of IMPORTER.

XII.   CERTIFICATION

       By their signatures hereto, the parties agree that they have read and
       understand this Agreement, including the Standard Provisions incorporated
       herein, are committed to its purposes and objectives and agree to abide
       by all of its terms and conditions.


<TABLE> 
<CAPTION> 
<S>                             <C>                                            <C> 
                                              FAA Concord T Inc. dba Concord Toyota         DEALER
       -----------------------------------------------------------------------------------
                                                       (Dealer Entity Name)


       Date:                     By:         /s/ Thomas A. Price                     President
            --------------------    ----------------------------------------   ---------------------
                                           Signature Thomas A. Price                   Title


       Date:                     By:                                                             
            --------------------    ----------------------------------------   ---------------------
                                                   Signature                           Title


       Date:                     By:         
            --------------------    ----------------------------------------   ---------------------
                                                    Signature                          Title


                                               Toyota Motor Sales, U.S.A., Inc.            DISTRIBUTOR
       -----------------------------------------------------------------------------------
                                                       (Distributor Name)  


       Date:                     By:         /s/ J. Lentz                        General Manager 
            --------------------    ----------------------------------------   ---------------------
                                                   Signature J. Lentz                  Title


       Date:                     By:                                                             
            --------------------    ----------------------------------------   ---------------------
                                                   Signature                           Title
</TABLE> 

                                       6
<PAGE>
 
       Undertaking by IMPORTER: In the event of termination of this Agreement by
       virtue of termination or expiration of DISTRIBUTOR's contract with
       IMPORTER, IMPORTER, through its designee, will offer DEALER a new
       agreement of no less than one year's duration and containing the terms of
       the Toyota Dealer Agreement then prescribed by IMPORTER.



                       TOYOTA MOTOR SALES, U.S.A., INC.
                                        
       Date: OCT 01, 1998 By:   /s/ Y. Ishizaka                     President
             ------------     ---------------------------------   ------------
                                        Signature Y. Ishizaka        Title

                                       7
<PAGE>
 
                 ADDENDUM TO SECTION X - ADDITIONAL PROVISIONS

       These Additional Provisions to Toyota Dealer Agreement ("Additional
Provisions") are entered into as of   OCT 01 1998, among DISTRIBUTOR and
                                      -----------                           
DEALER, and form a part of and are incorporated into the Dealer Agreement.


                                   RECITALS
                                   --------
       1.  DISTRIBUTOR and DEALER have entered into a Toyota Dealer Agreement
(the "Dealer Agreement") dated as of   OCT 01 1998:
                                       -----------

       2.  FirstAmerica Automotive, Inc. is the 100% shareholder of DEALER.
           -----------------------------                                    

           NOW THEREFORE, in consideration for the mutual agreements contained
herein and in the Dealer Agreement, the Parties agree as follows:

A.     Management
       ----------

       1.  Role of the Responsible Executive. Thomas A. Price is hereby 
           --------------------------------------------------     
designated as the FirstAmerica executive who will have responsibility and
authority with respect to all matters concerning DEALER and the relationship
between DEALER and DISTRIBUTOR (the "FirstAmerica Executive"). The FirstAmerica
Executive will be actively involved in the management of all aspects of the
operations of DEALER.

           (a) The FirstAmerica Executive will be an officer of DEALER. The
FirstAmerica Executive, in consultation with management of FirstAmerica
Automotive, Inc., will have complete control over all day-to-day management
decisions of DEALER or relating to DEALER.

           (b) The General Manager will report directly to and be responsible
to the FirstAmerica Executive.

                                       8
<PAGE>
 
           (c) DISTRIBUTOR may rely on oral or written communications and
agreements from the FirstAmerica Executive as being the binding agreements of
DEALER, without any duty of DISTRIBUTOR to confirm that any such communication
or agreement has been duly authorized by the Board of Directors of DEALER,
FirstAmerica Automotive, Inc., or any other individual or entity.

       2.  Successors to the FirstAmerica Executive. In the event that the
           ----------------------------------------                       
FirstAmerica Executive wishes to discontinue his role in the management of
DEALER as set forth in Section A.1, such action may be taken only with the
prior written consent of DISTRIBUTOR. Such consent of DISTRIBUTOR may be
conditioned on transfer of the FirstAmerica Executive's management
responsibilities to an individual or individuals approved by DISTRIBUTOR, taking
into account such factors as DISTRIBUTOR reasonably deems to be relevant and are
consistent with applicable laws.

       3.  Role of the General Manager.
           --------------------------- 

           (a) Steven S. Hallock or any subsequent General Manager of DEALER
               -----------------
approved by DISTRIBUTOR, will serve exclusively as General Manager of DEALER on
a full time basis and will not have any management responsibilities with respect
to any other dealership or other business or appear as the General Manager on
any automobile dealership franchise agreement other than that of DEALER.

          (b) The General Manager will have responsibility for and authority
with respect to the day-to-day operations of DEALER in the ordinary course of
business, under the supervision of the FirstAmerica Executive, and the General
Manager will have the following authority, without the need for obtaining the
prior approval of any other individual or entity:

                                       9
<PAGE>
 
     (i)    the authority to hire or terminate any employee of DEALER.

     (ii)   the authority to order vehicles and other products.

     (iii)  the authority to place advertising.

     (iv)   the authority to communicate with DISTRIBUTOR with respect to all
            aspects of the business of DEALER.

     (v)    the authority to approve expenditures by DEALER in the ordinary
            course of business in amounts of less than $50,000 per item.

     (vi)   the authority to approve capital improvements or modifications to
            the DEALER's facilities in amounts not to exceed $15,000 with
            respect to any expenditure.

     4.     Membership of Executive Committee. There shall be no change in the
            ---------------------------------                                 
membership of the Executive Committee, Board of Directors or other governing
body of DEALER without the prior written approval of DISTRIBUTOR.

B.   Succession and Assignment
     -------------------------

     In the event that any interest in DEALER is transferred in accordance with
the provisions of the Dealer Agreement, the Agreement and these Additional
Provisions, as a condition to such transfer the transferee must agree in writing
to be bound by all of the terms and provisions of the Dealer Agreement, the
Agreement and these Additional Provisions, such agreement to be in form and
substance reasonably acceptable to DISTRIBUTOR.

                                      10
<PAGE>
 
C. Deficiencies

     l. Dealer acknowledges that its current facility is substantially deficient
        in the following respects:

        Office Sq. Ft.                                <2,151>
        Used Vehicle Display Sq. Ft./Spaces           <12,548>/<44>
        Customer/Employee Parking Sq. Ft./Spaces      <2,196>/<7>
        Parts Dept. Sq. Ft.                           <1,388>
        Total Building Sq. Ft.                        <918>

        Distributor is not requiring Dealer to remedy these deficiencies at this
        time. Dealer understands and agrees that, to the extent Distributor has
        permitted or will permit Dealer to continue Toyota operations without
        full compliance with Toyota facility national minimum standards or
        Distributor directives or both, such conduct by the Distributor shall
        not constitute a waiver of any such standards or directives. Further,
        Distributor may, at any time, amend this Agreement to establish a
        timetable for Dealer to fully comply with Distributor's minimum facility
        requirements.


        IN WITNESS WHEREOF, the Parties have executed these Additional
Provisions as of the date first above written. 



TOYOTA MOTOR SALES, U.S.A., INC.

By: /s/ Jim Lentz
   -------------------------------
     Jim Lentz

Title:   General Manager
      ----------------------------


FAA Concord T, Inc.

By: /s/ Thomas A. Price
   -------------------------------
     Thomas A. Price

Title:  President
      ----------------------------

                                      11
<PAGE>
 
                            TOYOTA DEALER AGREEMENT
                              STANDARD PROVISIONS
                                        
  The following Standard Provisions are expressly incorporated in and made a
  part of the Toyota Dealer Agreement.

XIII.  ACQUISITION, DELIVERY AND INVENTORY OF TOYOTA PRODUCTS

       A. ACQUISITION OF TOYOTA PRODUCTS

          DEALER shall have the right to purchase Toyota Products from
          DISTRIBUTOR in accordance with the provisions set forth herein and
          such other requirements as may be established from time to time by
          DISTRIBUTOR.

       B. AVAILABILITY AND ALLOCATION OF PRODUCT

          DISTRIBUTOR agrees to use its best efforts to provide Toyota Products
          to DEALER in such quantities and types as may be required by DEALER to
          fulfill its obligations with respect to the sale and servicing of
          Toyota Products under this Agreement, subject to available supply from
          IMPORTER, DISTRIBUTOR's requirements, and any change or discontinuance
          with respect to any Toyota Product. DISTRIBUTOR will endeavor to
          allocate Toyota Products among its dealers in a fair and equitable
          manner, which it shall determine in its sole discretion. DISTRIBUTOR
          agrees to provide DEALER with an explanation of the method used to
          distribute such products and, upon written request, will advise DEALER
          of DISTRIBUTOR's total wholesale sales of new motor vehicles, by
          series, in DISTRIBUTOR's area and to DEALER individually, for a
          reasonable time frame.

       C. PRICES AND TERMS OF SALE

          DISTRIBUTOR shall have the right to establish and revise prices and
          other terms for the sale of Toyota Products to DEALER. Ownership and
          title of Toyota Products sold by DISTRIBUTOR to DEALER shall pass upon
          payment therefor by DEALER to DISTRIBUTOR and DEALER shall have no
          ownership interest in such Products until such payment is received.
          Risk of loss for Toyota Products sold by DISTRIBUTOR to DEALER shall
          pass upon delivery of such Products to DEALER. Revised prices and
          terms shall apply to any Toyota Products not invoiced to DEALER by
          DISTRIBUTOR at the time the notice of such change is given to DEALER
          (in the case of Toyota Motor Vehicles), or upon issuance of a new or
          modified Parts Price List or through change notices, letters,
          bulletins, or revision sheets (in the case of parts, options and
          accessories), or at such other times as may be designated in writing
          by DISTRIBUTOR. 

                                      12
<PAGE>
 
          Payment for all Toyota Products shall be made when billed, unless
          other terms are established by DISTRIBUTOR in writing.

       D. MODE, PLACE AND CHARGES FOR DELIVERY OF PRODUCTS

          DISTRIBUTOR shall designate the distribution points and the mode of
          transportation and shall select carrier(s) for the transportation of
          Toyota Products to DEALER. DEALER shall pay DISTRIBUTOR such charges
          as DISTRIBUTOR in its sole discretion establishes for such
          transportation services.

       E. INVENTORY DAMAGE CLAIMS AND LIABILITY

          DEALER shall promptly notify DISTRIBUTOR of any damage occurring
          during transit and shall, if so directed by DISTRIBUTOR, file claims
          on DISTRIBUTOR's behalf against transportation carrier for damage.
          DEALER agrees to assist DISTRIBUTOR in obtaining recovery against any
          transportation carrier or insurer for loss or damage to Toyota
          Products shipped hereunder.

          To the extent required by law, DEALER shall notify the purchaser of a
          vehicle of any damage sustained by such vehicle prior to sale. DEALER
          shall indemnify and hold DISTRIBUTOR harmless from any liability
          resulting from DEALER's failure to so notify such purchasers.

       F. DELAY OR FAILURE OF DELIVERY

          DISTRIBUTOR shall not be liable for delay or failure to deliver Toyota
          Products which it has previously agreed to deliver, where such delay
          or failure to deliver is the result of any event beyond the control of
          DISTRIBUTOR, IMPORTER or FACTORY, including but not limited to fire,
          floods, storms or other acts of God, any law or regulation of any
          governmental entity, foreign or civil wars, riots, interruptions of
          navigation, shipwrecks, strikes, lockouts or other labor troubles,
          embargoes, blockades, or delay or failure of FACTORY to deliver Toyota
          Products.

       G. DIVERSION CHARGES

          If after delivery DEALER fails or refuses to accept Toyota Products
          that it has agreed to purchase, DEALER shall pay all charges incurred
          by DISTRIBUTOR as a result of such refusal. Such charges shall not
          exceed the charge of returning any such product to the point of
          original shipment by DISTRIBUTOR plus all charges for demurrage,
          storage or other charges related to such refusal. 

                                      13
<PAGE>
 
          DEALER also agrees to assume responsibility for, and shall pay any and
          all reasonable charges for, demurrage, storage or other charges
          accruing after arrival of shipment at the point of original shipment.

       H. CHANGES OF DESIGN, OPTIONS OR SPECIFICATIONS

          DISTRIBUTOR, IMPORTER or FACTORY may change the design or
          specifications of any Toyota Product or the options in any Toyota
          Product and shall be under no obligation to provide notice of same or
          to make any similar change upon any product previously purchased by or
          shipped to DEALER. No change shall be considered a model year change
          unless so specified by DISTRIBUTOR.

       I. DISCONTINUANCE OF MANUFACTURE OR IMPORTATION

          FACTORY, IMPORTER and/or DISTRIBUTOR may discontinue the manufacture,
          importation or distribution of all or part of any Toyota Product,
          whether motor vehicle, parts, options, or accessories, including any
          model, series, or body style of any Toyota Motor Vehicle at any time
          without any obligation or liability to DEALER by reason thereof.

       J. MINIMUM VEHICLE INVENTORIES

          Subject to the ability of DISTRIBUTOR to supply Toyota Motor Vehicles
          to DEALER, DEALER agrees that it shall, at all times, maintain at
          least the minimum inventory of Toyota Motor Vehicles as may be
          established by DISTRIBUTOR from time to time. DEALER also agrees that
          it shall have available at all times, for purposes of display and
          demonstration, the number of Toyota Motor Vehicles of the most current
          models as may be established by DISTRIBUTOR from time to time, and
          shall, at all times, maintain such Motor Vehicles in showroom ready
          condition.

       K. PRODUCT MODIFICATIONS

          DEALER agrees that it will not make any modifications to Toyota
          Products that may impair or adversely affect a vehicle's safety,
          emissions or structural integrity.

XIV.   DEALER MARKETING OF TOYOTA PRODUCTS

       A. DEALER'S SALES RESPONSIBILITIES

          DEALER recognizes that customer satisfaction and the successful
          promotion and sale of Toyota Products are significantly dependent on
          DEALER's advertising and sales promotion activities. DEALER shall
          actively and effectively promote, through DEALER's own

                                      14
<PAGE>
 
          advertising and sales promotion activities, the purchase of Toyota
          Products by customers. Therefore, DEALER at all times shall:

          1. Actively and effectively advertise, merchandise, promote and sell
             Toyota Products;

          2. Maintain an adequate, stable and trained sales organization, and,
             to that end, make all reasonable efforts to ensure that its sales
             personnel attend all sales training courses prescribed by
             DISTRIBUTOR at DEALER's expense;

          3. Maintain high standards of ethics in advertising, promoting and
             selling Toyota Products and avoid engaging in any misrepresentation
             or unfair or deceptive practices; and

          4. Accurately represent to customers the total selling price of Toyota
             Products. DEALER agrees to explain to customers of Toyota Products
             the items that make up the total selling price and to give the
             customers itemized statements and all other information required by
             law. DEALER understands and hereby acknowledges that it may sell
             Toyota Products at whatever price DEALER desires.

       B. EXPORT PROHIBITION

          DEALER is authorized to sell Toyota Motor Vehicles only to customers
          located in the continental United States. DEALER agrees that it will
          not sell Toyota Motor Vehicles for resale or use outside the
          continental United States. DEALER agrees to abide by any export policy
          established by DISTRIBUTOR.

       C. USED VEHICLES

          DEALER agrees to display, promote and sell used vehicles at the
          Approved Location. DEALER shall maintain for resale an inventory of
          used vehicles.

       D. ASSISTANCE PROVIDED BY DISTRIBUTOR

          1. Sales Training Assistance

             To assist DEALER in the fulfillment of its sales responsibilities
             under this Agreement, DISTRIBUTOR agrees to offer general and
             specialized sales management and sales training programs for the
             benefit and use of DEALER's sales organization. When requested by
             DISTRIBUTOR, DEALER's personnel shall participate in such programs
             at DEALER's expense.

                                      15
<PAGE>
 
          2. Sales Promotion Assistance

             In order that authorized Toyota dealers may be assured of the
             benefits of comprehensive advertising and promotion of Toyota
             Products, DISTRIBUTOR agrees to establish and maintain general
             advertising and promotion programs and will from time to time make
             sales promotion and campaign materials available to DEALER to
             promote the sales of such Toyota Products at a reasonable charge
             where applicable.

          3. Field Sales Personnel Assistance

             To assist DEALER in handling its sales responsibilities under this
             Agreement, DISTRIBUTOR agrees to provide trained field sales
             personnel to advise and counsel DEALER on sales-related subjects,
             including merchandising, training and sales management.

XV.    DEALER SERVICE OBLIGATIONS

       A. CUSTOMER SERVICE STANDARDS

          DEALER and DISTRIBUTOR agree that the success and future growth of
          DISTRIBUTOR and DEALER are substantially dependent upon the
          customer's ability to obtain high-quality vehicle servicing.
          Therefore, DEALER agrees to:

          1. Take all reasonable steps to provide service of the highest
             quality for all Toyota Motor Vehicles, regardless of where
             purchased and whether or not under warranty;

          2. Ensure that the customer is advised of the necessary repairs and
             that his or her consent is obtained prior to the initiation of
             any repairs;

          3. Ensure that problems on Toyota Motor Vehicles are accurately
             diagnosed and repairs are promptly and professionally performed;
             and

          4. Ensure that the customer is treated courteously and fairly at
             all times.

                                      16
<PAGE>
 
       B. NEW MOTOR VEHICLE PRE-DELIVERY SERVICE

          DEALER agrees that prior to delivery of a new Toyota Motor Vehicle to
          a customer it shall perform, as directed by DISTRIBUTOR, pre-delivery
          service on each Toyota Motor Vehicle in accordance with Toyota
          standards. DISTRIBUTOR shall pay DEALER for such pre-delivery service
          according to such directives and the applicable provisions of the
          Toyota Warranty Policy and Procedures Manual.

       C. WARRANTY AND POLICY SERVICE

          DEALER acknowledges that the only warranties of DISTRIBUTOR or FACTORY
          applicable to Toyota Products shall be the New Vehicle Limited
          Warranty or such other written warranties that may be expressly
          furnished or sold by DISTRIBUTOR or FACTORY. Except for its limited
          liability under such written warranty or warranties, DISTRIBUTOR and
          FACTORY do not assume any other warranty obligation or liability.
          DEALER is not authorized to assume any additional warranty obligations
          or liabilities on behalf of DISTRIBUTOR, IMPORTER or FACTORY. Any such
          additional obligations assumed by DEALER shall be the sole
          responsibility of DEALER. Any extended service contract sold by
          IMPORTER, DISTRIBUTOR or Toyota-affiliated entity shall be governed by
          its own terms.

          DEALER shall perform warranty service specified by DISTRIBUTOR in
          accordance with the Toyota Warranty Policy and Procedures Manual.
          DISTRIBUTOR agrees to compensate DEALER for all warranty work,
          including labor, diagnosis and Genuine Toyota Parts and Accessories,
          in accordance with procedures and at rates to be announced from time
          to time by DISTRIBUTOR. Unless otherwise approved in writing in
          advance by DISTRIBUTOR, DEALER shall use only Genuine Toyota Parts and
          Accessories when performing Toyota warranty repairs. Warranty service
          is provided for the benefit of customers and DEALER agrees that the
          customer shall not be obligated to pay any charges for warranty work
          or any other services for which DEALER is reimbursed or paid by
          DISTRIBUTOR.

       D. USE OF PARTS AND ACCESSORIES IN NON-WARRANTY SERVICING

          Subject to the provisions set forth below, DEALER has the right to
          sell, install or use, for making non-warranty repairs, products that
          are not Genuine Toyota Parts or Accessories.

          DEALER acknowledges, however, that its customers expect that any parts
          or accessories that DEALER sells, installs or uses in the sale, repair
          or servicing of Toyota Motor Vehicles are, or meet the high quality
          standards of, Genuine Toyota Parts or

                                      17
<PAGE>
 
          Accessories. DEALER agrees that in sales, repairs or servicing where
          DEALER does not use Genuine Toyota Parts or Accessories, DEALER will
          only utilize such other parts or accessories that will not adversely
          affect the mechanical operation of the Toyota Motor Vehicle being
          sold, repaired or serviced, and that are equivalent in quality and
          design to Genuine Toyota Parts or Accessories.

       E. WARRANTY DISCLOSURES AS TO
          NON-GENUINE PARTS AND ACCESSORIES

          In order to avoid confusion and to minimize potential customer
          dissatisfaction, in any instance where DEALER sells, installs or uses
          other than Genuine Toyota Parts or Accessories, DEALER shall disclose
          such fact to the customer and shall advise the customer that these
          items are not included in warranties furnished by DISTRIBUTOR. Such
          disclosure shall be written, conspicuous and stated on the customer's
          copy of the service or repair order or sale document. In addition,
          DEALER will clearly explain to the customer the extent of any warranty
          covering the parts or accessories involved and will deliver a copy of
          the warranty to the customer.

       F. SERVICE CAMPAIGN INSPECTIONS AND CORRECTIONS

          DEALER agrees to perform service campaign inspections and/or
          corrections for owners or users of all Toyota Products that qualify
          for such inspections and/or corrections. DEALER further agrees to
          comply with all DISTRIBUTOR's directives and with the applicable
          procedures in the Toyota Warranty Policy and Procedures Manual
          relating to those inspections and/or corrections. DISTRIBUTOR agrees
          to reimburse DEALER for all replacement parts and/or other materials
          required and used in connection with such work and for labor according
          to such directives and the applicable provisions of the Toyota
          Warranty Policy and Procedures Manual.

       G. COMPLIANCE WITH SAFETY AND EMISSION CONTROL REQUIREMENTS

          DEALER agrees to comply and operate consistently with all applicable
          provision of the National Traffic and Motor Vehicle Safety Act of 1966
          and the Federal Clean Air Act, as amended, including applicable rules
          and regulations issued from time to time thereunder, and all other
          applicable federal, state and local motor vehicle safety and emission
          control statutes, rules and regulations.

          In the event that the laws of the state in which DEALER is located
          require motor vehicle dealers or distributors to install in new or
          used motor vehicles, prior to their retail sale, any safety devices or
          other equipment not installed or supplied as standard equipment by
          FACTORY, then DEALER, prior to the sale of any Toyota Motor Vehicle on
          which such

                                      18
<PAGE>
 
          installations are required, shall properly install such devices or
          equipment on such Toyota Motor Vehicles. DISTRIBUTOR agrees to
          reimburse DEALER for all parts and/or other materials required and
          used in connection with such work and for labor according to the
          applicable provisions of the Toyota Warranty Policy and Procedures
          Manual. DEALER shall comply with state and local laws pertaining to
          the installation and reporting of such equipment.

          In the interest of motor vehicle safety and emission control,
          DISTRIBUTOR and DEALER agree to provide to each other such information
          and assistance as may reasonably be requested by the other in
          connection with the performance of obligations imposed on either party
          by the National Traffic and Motor Vehicle Safety Act of 1966 and the
          Federal Clean Air Act, as amended, and their rules and regulations,
          and all other applicable federal, state and local motor vehicle safety
          and emissions control statutes, rules and regulations.

       H. COMPLIANCE WITH CONSUMER PROTECTION STATUTES, RULES AND REGULATIONS

          Because certain customer complaints may impose liability upon
          DISTRIBUTOR under various repair or replace laws or other consumer
          protection laws and regulations, DEALER agrees to provide prompt
          notice to DISTRIBUTOR of such complaints and take such other steps as
          DISTRIBUTOR may reasonably, require. DEALER will do nothing to affect
          adversely DISTRIBUTOR's rights under such laws and regulations.
          Subject to any law or any regulation to the contrary, DEALER shall be
          liable to DISTRIBUTOR for any refunds or vehicle replacements provided
          to customer where DISTRIBUTOR reasonably establishes that DEALER
          failed to carry out vehicle repairs in accordance with DISTRIBUTOR's
          written published policies and procedures or its express oral
          instructions subsequently confirmed in writing. DEALER also agrees to
          provide applicable required customer notifications and disclosures as
          prescribed by repair or replacement laws or other consumer laws or
          regulations.

XVI.   SERVICE AND PARTS OPERATIONS

       A. ORGANIZATION AND STANDARDS

          DEALER agrees to organize and maintain an adequate, stable and trained
          service and parts organization of the highest quality, including a
          qualified Service Manager and a qualified Parts Manager, and a number
          of competent customer relations, service and parts personnel
          sufficient to meet the needs of the marketplace in the reasonable
          opinion of DISTRIBUTOR. DEALER's personnel will meet the educational,
          management and technical training standards established by
          DISTRIBUTOR.
                                      19
<PAGE>
 
       B. SERVICE EQUIPMENT AND SPECIAL TOOLS

          DEALER agrees to acquire and properly maintain adequate service
          equipment and such special service tools and instruments as are
          specified by DISTRIBUTOR.

       C. PARTS INVENTORY

          DEALER and DISTRIBUTOR recognize that the owners and users of Toyota
          Motor Vehicles may reasonably expect that DEALER will have Genuine
          Toyota Parts or Accessories immediately available for purchase or
          installation. DEALER, therefore, agrees to carry in stock at all times
          during the term of this Agreement an adequate inventory of Genuine
          Toyota Parts or Accessories, as listed in DISTRIBUTOR's current
          inventory guide, to enable DEALER to meet its customers' needs and to
          fulfill its service responsibilities under this Agreement.

       D. ASSISTANCE PROVIDED BY DISTRIBUTOR

          1. Service Training Assistance

             To assist DEALER in fulfilling its service and parts
             responsibilities under this Agreement, DISTRIBUTOR agrees to offer
             general and specialized service and parts training programs for the
             benefit and use of DEALER's service and parts organizations. When
             requested by DISTRIBUTOR, DEALER's personnel shall participate in
             such programs at DEALER's expense.

          2. Manuals and Materials

             DISTRIBUTOR agrees to make available to DEALER, at DEALER's
             expense, copies of such dealer manuals, catalogs, bulletins,
             publications and technical data as DISTRIBUTOR shall deem to be
             necessary for the needs of DEALER's service and parts organization.
             DEALER shall be responsible for keeping such manuals, publications
             and data current and available for consultation by its employees.

          3. Field Personnel Assistance

             To assist DEALER in handling its parts and service responsibilities
             under this Agreement, DISTRIBUTOR agrees to make available
             qualified field parts and service personnel who will, from time to
             time, advise and counsel DEALER on parts and service-related
             subjects, including parts and service policies, product quality,
             technical adjustments, repair and replacement of product
             components, customer relations,

                                      20
<PAGE>
 
             warranty administration, service and parts merchandising, and
             personnel/management training.

XVII.  CUSTOMER SATISFACTION RESPONSIBILITIES

       A goal of DISTRIBUTOR and DEALER is to be recognized as marketing the
       finest products and providing the best service in the automobile
       industry. The Toyota name should be synonymous with the highest level of
       customer satisfaction. DEALER will take all reasonable steps to ensure
       that each customer is completely satisfied with his or her Toyota
       Products and the services and practices of DEALER.

       Whenever requested by DISTRIBUTOR, DEALER shall:

       A. Designate an employee responsible for customer satisfaction
          commensurate with the needs of the marketplace; and

       B. Provide a detailed written plan of DEALER's customer satisfaction
          program to DISTRIBUTOR and implement such program on a continuous
          basis. This plan shall include an ongoing system for:

          1. Emphasizing customer satisfaction to all DEALER's employees;

          2. Training DEALER's employees, including participation in
             DISTRIBUTOR's customer satisfaction training at DEALER's
             expense; and

          3. Responding immediately to, and resolving promptly, requests for
             customer assistance, and conveying to customers that DEALER is
             committed to the highest possible level of customer satisfaction.

XVIII. DEALERSHIP FACILITIES AND IDENTIFICATION

       A. FACILITIES

          1. In order for DISTRIBUTOR to establish an effective network of
             authorized Toyota dealers, DEALER shall provide, and at all times
             maintain, attractive dealership facilities at the Approved
             Location(s) that satisfy the image, size, layout, interior design,
             color, equipment, identification and other factors established by
             DISTRIBUTOR. DEALER shall meet the minimum facility standards and
             policies established by DISTRIBUTOR which can be amended from time
             to time.

                                      21
<PAGE>
 
          2. To assist DEALER in planning, building, or remodeling dealership
             facilities, DISTRIBUTOR will provide DEALER, upon request, a Toyota
             Dealer Facility Planner and will assist in identifying sources from
             which DEALER may purchase architectural materials and furnishings
             that meet Toyota standards and guidelines. In addition,
             representatives of DISTRIBUTOR will be available to DEALER from
             time to time to counsel and advise DEALER in connection with
             DEALER's planning and equipping the dealership premises.

       B. DEALER'S OPERATING HOURS

          DEALER agrees to keep all of its dealership operations open for
          business during all days and hours that are customary and lawful for
          such operations in the community or locality in which DEALER is
          located and in accordance with industry standards. The dealership
          shall not be considered open unless all sales, service and parts
          operations are open to the public and dealership personnel are present
          to assist customers.

       C. SIGNS

          Subject to applicable governmental ordinances, regulations, and
          statutes, DEALER agrees to comply with IMPORTER's signage program and
          to display only standard authorized signage which conforms to the
          approved corporate identification program.

       D. USE OF TOYOTA MARKS

          1. Use by DEALER

             DISTRIBUTOR grants to DEALER the non-exclusive privilege of
             displaying or otherwise using authorized Toyota Marks as specified
             in the Toyota Brand Graphic Standards Manual at the Approved
             Location(s) in connection with the selling or servicing of Toyota
             Products.

             DEALER further agrees that it promptly shall discontinue the
             display and use of any Toyota Marks, or shall change the manner in
             which any Toyota Marks are displayed and used, when for any reason
             it is requested to do so by DISTRIBUTOR. DEALER may use the Toyota
             Marks as specified in the Toyota Brand Graphic Standards Manual
             only at Approved Location(s) and for such purposes as are specified
             in this Agreement. DEALER agrees that such Toyota Marks may be used
             as part of the name under which DEALER's business is conducted only
             with the prior written approval of DISTRIBUTOR.

                                      22
<PAGE>
 
             DEALER shall discontinue any advertising that DISTRIBUTOR may find
             to be injurious to DISTRIBUTOR's business or reputation or the
             Toyota Marks.

          2. Discontinuance of Use

             Upon termination, non-renewal, or expiration of this Agreement,
             DEALER agrees that it shall immediately:

             a. Discontinue the use of Toyota Marks, or any semblance of same,
                including without limitation, the use of all stationery,
                telephone directory listing, and other printed material
                referring in any way to Toyota or bearing any Toyota Mark;

             b. Discontinue the use of the Toyota Marks, or any semblance of
                same, as part of its business or corporate name, and file a
                change or discontinuance of such name with appropriate
                authorities;

             c. Remove all product signs bearing Toyota Marks. Product signs
                owned by DEALER shall be removed and disposed of at DEALER's
                sole cost and expense. Product signs leased to DEALER by or
                through IMPORTER or its representative shall be removed from
                DEALER's premises at IMPORTER's sole cost and expense. DEALER
                hereby grants permission for DISTRIBUTOR to enter upon DEALER's
                premises to remove signs leased to DEALER by IMPORTER;

             d. Cease representing itself as an authorized Toyota Dealer; and

             e. Refrain from any action, including without limitation, any
                advertisement, statement or implication that it is authorized to
                sell or distribute Toyota Products.

             In the event DEALER fails to comply promptly with the terms and
             conditions of this Section, DISTRIBUTOR shrill have the right to
             enter upon DEALER's premises and remove, without notice or
             liability, all such product signs and identification bearing the
             Toyota Marks. DEALER agrees that it shall reimburse DISTRIBUTOR for
             any costs and expenses incurred in the removal of signs owned by
             DEALER bearing the Toyota Marks, including reasonable attorney
             fees.

XIX.   EVALUATION OF DEALER'S PERFORMANCE

       DEALER acknowledges the importance of its overall performance in relation
       to the purposes and objectives of this Agreement. DISTRIBUTOR will
       periodically evaluate DEALER's performance of its responsibilities in the
       areas of sales, service and parts, facili-

                                      23
<PAGE>
 
       ties and customer satisfaction, based upon such reasonable criteria as
       DISTRIBUTOR may establish from time to time. DISTRIBUTOR agrees to review
       all such evaluations with DEALER and will provide DEALER a copy thereof.
       Where performance is below acceptable standards of DISTRIBUTOR, DEALER
       agrees to take prompt action to improve its performance and, if requested
       by DISTRIBUTOR, to notify DISTRIBUTOR in writing of its detailed plans
       and timetables for accomplishing those improvements.

       A. SALES PERFORMANCE EVALUATION

          Pursuant to Section XIV herein, DISTRIBUTOR will evaluate DEALER's
          sales performance under criteria established by DISTRIBUTOR, which may
          include, but is not limited to, the achievement of reasonable sales
          objectives as DISTRIBUTOR may establish; comparisons of DEALER's sales
          and/or registrations to those of comparable Toyota dealers and other
          line makes within DEALER's Primary Market Area or such area(s) which
          DISTRIBUTOR believes is a reasonable basis for comparison; sales
          performance trends over a reasonable period of time; and the manner in
          which DEALER has conducted its sales and marketing operations.

       B. SERVICE PERFORMANCE EVALUATION

          Pursuant to Sections XV and XVI herein, DISTRIBUTOR will evaluate
          DEALER's service performance in such areas as, without limitation,
          warranty management, compliance with the Toyota Warranty Policy and
          Procedures Manual, service management, service operating procedures,
          service staffing and training, administration, service facilities and
          equipment, new vehicle pre-delivery service, customer handling and
          customer retention.

       C. PARTS PERFORMANCE EVALUATION

          Pursuant to Section XVI herein, DISTRIBUTOR will evaluate DEALER's
          parts performance in such areas as, without limitation, general parts
          management, parts operating procedures, parts staffing and training,
          parts facilities, parts inventory management, parts sales, accessory
          sales, parts merchandising and parts availability to customers.

       D. CUSTOMER SATISFACTION PERFORMANCE EVALUATION

          Pursuant to Section XVII, herein, DISTRIBUTOR will evaluate DEALER's
          performance of its responsibilities in the area of customer
          satisfaction based on the following considerations:

                                       24
<PAGE>
 
          1. DISTRIBUTOR will provide DEALER with customer satisfaction reports
             or such other equivalent data as will permit DEALER to assess its
             performance and maintain the highest level of customer
             satisfaction. DEALER agrees to review with its employees on a
             regular basis the results of the customer satisfaction reports or
             other data it receives.

          2. DEALER agrees to develop, implement and review with DISTRIBUTOR
             specific action plans for improving results in the event that
             DEALER is below the average customer satisfaction levels for other
             Toyota dealers in such areas that DISTRIBUTOR believes are a
             reasonable basis for comparison. DEALER shall respond on a timely
             basis to requests from DISTRIBUTOR to take action on unsatisfactory
             customer satisfaction matters and to commit necessary resources to
             remedy deficiencies reasonably specified by DISTRIBUTOR, and DEALER
             shall remedy those deficiencies. DISTRIBUTOR reserves the right to
             establish reasonable, uniform criteria to be used to evaluate
             DEALER.

       E. DEALERSHIP FACILITIES EVALUATION

          Pursuant to Section XVIII, herein, DISTRIBUTOR will evaluate DEALER's
          performance of its responsibilities in the area of dealership
          facilities.

XX.    CAPITAL, CREDIT, RECORDS AND UNIFORM SYSTEMS

       A. NET WORKING CAPITAL

          The amount and structure of the net working capital required to
          properly conduct the business of DEALER depends upon many factors,
          including the nature, size and volume of DEALER's vehicle sales,
          service and parts operations. Therefore, DEALER agrees to establish
          and maintain actual net working capital in an mount not less than the
          minimum net working capital specified in a separate Minimum Net
          Working Capital Agreement executed by DEALER and DISTRIBUTOR
          concurrently with this Agreement. If, either because of changed
          conditions or because DISTRIBUTOR adopts a new net working capital
          formula, DISTRIBUTOR shall have the right to revise DEALER's minimum
          net working capital requirement to be used in DEALER's operation. If
          so revised, DEALER agrees to enter into the revised Minimum Net
          Working Capital Agreement and to meet the new standard within a
          reasonable period of time as established by DISTRIBUTOR.

       B. FLOORING LINE

          DEALER recognizes that its ability to fulfill its obligations under
          this Agreement is dependent upon its maintenance of flooring which is
          sufficient to sustain its ongoing

                                      25
<PAGE>
 
          operations. DEALER agrees to obtain and maintain at all times a
          confirmed and adequate flooring line with a bank or financial
          institution or other method of financing acceptable to DISTRIBUTOR to
          enable DEALER to perform its obligations pursuant to this Agreement.
          Subject to the foregoing obligations, DEALER is free to do its
          financing business, wholesale, retail or both, with whomever it
          chooses and to the extent it desires.

       C. PAYMENT TERMS AND SETTLEMENT OF ACCOUNTS

          All monies or accounts due DEALER from DISTRIBUTOR will be considered
          net of DEALER's obligations to DISTRIBUTOR on DEALER's parts/open
          account. DISTRIBUTOR may deduct or offset any amounts due or to become
          due from DEALER to DISTRIBUTOR, or any amounts held by DISTRIBUTOR,
          from or against any sums or accounts due or to become due from
          DISTRIBUTOR to DEALER. Payments by DEALER to DISTRIBUTOR shall be made
          by electronic bank draft or in any other manner prescribed by
          DISTRIBUTOR and shall be applied against DEALER's indebtedness in
          accordance with DISTRIBUTOR's policies and practices. DISTRIBUTOR
          shall have the right to apply payments received from DEALER to any
          amount owed to DISTRIBUTOR, in DISTRIBUTOR's sole discretion. All
          obligations owed by DEALER to DISTRIBUTOR shall be due and payable
          when billed, unless other terms are established by DISTRIBUTOR in
          writing.

          Under no circumstances will DISTRIBUTOR enter into a new Agreement
          with a proposed transferee unless DEALER first makes arrangements
          acceptable to DISTRIBUTOR to satisfy any outstanding obligations to
          DISTRIBUTOR on DEALER's parts/open account.

       D. UNIFORM ACCOUNTING SYSTEM

          DEALER agrees to maintain its financial books and records in
          accordance with the Toyota Dealer Accounting Manual, as amended from
          time to time by DISTRIBUTOR. In addition, DEALER shall furnish to
          DISTRIBUTOR, who may also furnish it to IMPORTER and FACTORY, complete
          and accurate financial and operating information by the tenth (10th)
          of each month in a format prescribed by DISTRIBUTOR. This information
          shall include, without limitation, a complete and accurate financial
          and operating statement covering the preceding month and calendar 
          year-to-date operations, including any adjusted year-end statements,
          showing the true condition of DEALER's business. All such information
          shall be furnished by DEALER to DISTRIBUTOR via DISTRIBUTOR's
          electronic communications network and/or in hard copy and/or in any
          other manner designated by DISTRIBUTOR.

                                      26
<PAGE>
 
       E. RECORDS MAINTENANCE

          DEALER agrees to keep complete, accurate and current records regarding
          its sale, lease and servicing of Toyota Products for a minimum of five
          (5) years, regardless of any retention period required by any
          governmental entity. DEALER shall prepare, keep current and retain
          records in support of requests for reimbursement for warranty and
          policy work performed by DEALER in accordance with the IMPORTER's
          Toyota Warranty Policy and Procedures Manual.

       F. EXAMINATION OF DEALERSHIP ACCOUNTS AND RECORDS

          DISTRIBUTOR, in its sole discretion, without notice and for any reason
          whatsoever, shall have the right during regular business hours to
          inspect DEALER's facilities and to examine, audit and to reproduce all
          records, accounts and supporting data relating to the operations of
          DEALER, including without limitation, sales, sales reporting, service
          and repair of Toyota Products by DEALER. If requested by DEALER,
          DISTRIBUTOR agrees to review any report with DEALER and to provide a
          copy of any report of the examination or audit of DEALER.

       G. TAXES

          DEALER shall be responsible for and duly pay all taxes of any kind,
          including, but not limited to, sales taxes, use taxes, excise taxes
          and other governmental municipal charges imposed, levied or based upon
          the sale of Toyota Products by DEALER, and shall maintain accurate
          records of the same.

       H. CONFIDENTIALITY

          Except as provided in Sections XX(D) above and XXI(A), below,
          DISTRIBUTOR agrees that it shall not provide any financial
          information, documents or other information submitted to it by DEALER
          to any third party, other than subsidiary and parent, corporations of
          DISTRIBUTOR, unless authorized by DEALER, required by law, required to
          effectuate the terms and conditions of this Agreement, or required to
          generate composite or comparative data for analytical purposes.

          DEALER agrees to keep confidential and not to disclose, directly or
          indirectly, any information that DISTRIBUTOR designates as
          confidential.

                                      27
<PAGE>
 
       I. INFORMATION COMMUNICATION SYSTEMS

          To facilitate the accurate and prompt reporting of such relevant
          dealership operational and financial information as DISTRIBUTOR may
          require, DEALER agrees to install and maintain electronic
          communication processing facilities which are compatible with and
          which will facilitate the transmission and reception of such
          information on the electronic communications network utilized by
          DISTRIBUTOR.

       J. SALES REPORTING

          DEALER agrees to report accurately to DISTRIBUTOR together with such
          information as DISTRIBUTOR may reasonably require, the delivery of
          each new motor vehicle to a purchaser by the end of the day in which
          the vehicle is delivered to the purchaser thereof, and to furnish
          DISTRIBUTOR with such other reports in such form as DISTRIBUTOR may
          reasonably require from time to time.

XXI.   RIGHT OF FIRST REFUSAL OR OPTION TO PURCHASE

       A. RIGHTS GRANTED

          If a proposal to sell the dealership's assets or transfer its
          ownership is submitted by DEALER to DISTRIBUTOR, or in the event of
          the death of the majority Owner of DEALER, DISTRIBUTOR has a right
          of first refusal or option to purchase the dealership assets or stock,
          including any leasehold interests or realty. DISTRIBUTOR's exercise of
          its right or option under this Section supersedes any right or attempt
          by DEALER to transfer its interest in, or ownership of, the
          dealership. DISTRIBUTOR's right or option may be assigned by it to
          any third party and DISTRIBUTOR hereby guarantees the full payment to
          DEALER of the purchase price by such assignee. DISTRIBUTOR may
          disclose the terms of any pending buy/sell agreement and any other
          relevant dealership performance information to any potential assignee.
          DISTRIBUTOR's rights under this Section will be binding on and
          enforceable against any successor in interest of DEALER or purchaser
          of DEALER's assets or stock.

       B. EXERCISE OF DISTRIBUTOR'S RIGHTS

          DISTRIBUTOR shall have thirty (30) days from the following events
          within which to exercise its right of first refusal or option to
          purchase: (i) DISTRIBUTOR's receipt of all data and documentation
          customarily required by it to evaluate a proposed transfer of
          ownership; (ii) DISTRIBUTOR's receipt of written notice from DEALER of
          the death of the majority Owner of DEALER; or (iii) DISTRIBUTOR's
          disapproval of any application submitted by 

                                      28

<PAGE>
 
          an Owner's heirs pursuant to Section XXII. DISTRIBUTOR's exercise of
          its right of first refusal under this Section shall neither be
          dependent upon nor require its prior consideration of or refusal to
          approve the proposed buyer or transferee.

       C. RIGHT OF FIRST REFUSAL

          If DEALER has entered into a bona fide written agreement to sell its
          dealership stock or assets, DISTRIBUTOR's right under this Section is
          a right of first refusal, enabling DISTRIBUTOR to assume the buyer's
          fights and obligations under such agreement, and to terminate this
          Agreement and all rights granted DEALER. Upon DISTRIBUTOR's request,
          DEALER agrees to provide other documents relating to the proposed
          transfer and any other information which DISTRIBUTOR deems
          appropriate, including, but not limited to, those reflecting other
          agreements or understandings between the parties to the buy/sell
          agreement. Refusal to provide such documentation or to state in
          writing that no such documents exist shall create the presumption that
          the buy/sell agreement is not a bona fide agreement.

       D. OPTION TO PURCHASE

          In the event of the death of the majority Owner of DEALER or if DEALER
          submits a proposal which DISTRIBUTOR reasonably believes is not bona
          fide, DISTRIBUTOR has the option to purchase the principal assets of
          DEALER utilized in the dealership business, including real estate and
          leasehold interests, and to cancel this Agreement and the fights
          granted DEALER. The terms and conditions of the purchase of the
          dealership assets will be determined by good faith negotiations
          between the parties. If an agreement cannot be reached, those terms
          will be exclusively determined by arbitration in accordance with the
          commercial arbitration rules of the American Arbitration Association.
          The site of the arbitration shall be the office of the American
          Arbitration Association in the locality of DISTRIBUTOR's principal
          place of business.

       E. DEALER'S OBLIGATIONS

          Upon DISTRIBUTOR's exercise of its right or option and tender of
          performance hereunder, DEALER shall forthwith transfer the affected
          real property by warranty deed or its equivalent, conveying marketable
          title free and clear of all liens, claims, mortgages, encumbrances,
          interests and occupancies. The warranty deed or its equivalent shall
          be in proper form for recording, and DEALER shall deliver complete
          possession of the property and deed at the time of closing. DEALER
          shall also furnish to DISTRIBUTOR all copies of any easements,
          licenses or other documents affecting the property or dealership
          operations and shall assign any permits or licenses that are necessary
          or desirable for the

                                      29
<PAGE>
 
          use of or appurtenant to the property or the conduct of such
          dealership operations. DEALER shall also forthwith execute and deliver
          to DISTRIBUTOR instruments satisfactory to DISTRIBUTOR conveying title
          to all affected personal property and leasehold interests involved in
          the transfer or sale to DISTRIBUTOR. If any personal property is
          subject to any lien or charge of any kind, DEALER agrees to procure
          the discharge and satisfaction thereof prior to the closing of sale of
          such property to DISTRIBUTOR.

       F. NO APPLICABILITY TO NOMINATED SUCCESSOR

          Section XXI shall not apply to any DEALER whose proposed transfer of
          assets or ownership is to a candidate who is currently approved by
          DISTRIBUTOR to be DEALER's nominated successor pursuant to Section
          XXII(C).

XXII.  SUCCESSION RIGHTS UPON DEATH OR INCAPACITY

       A. SUCCESSION TO OWNERSHIP AFTER DEATH OF OWNER

          In the event that Owner dies and his or her interest in Dealership
          passes directly to any person or persons ("Heirs") who wish to succeed
          to Owner's interest, then Owner's legal representative must notify
          DISTRIBUTOR within sixty (60) days of the death of the Owner of such
          Heir's or Heirs' intent to succeed Owner. The legal representative
          also must then designate a proposed General Manager for DISTRIBUTOR
          approval. The effect of such notice from Owner's legal representative
          will be to suspend any notice of termination provided for in Section
          XXIII(B)(4) issued hereunder.

          Upon delivery of such notice, Owner's legal representative shall
          immediately request any person(s) identified by it as intending to
          succeed Owner and the designated candidate for General Manager to
          submit an application and to provide all personal and financial
          information that DISTRIBUTOR may reasonably and customarily require in
          connection with its review of such applications. All requested
          information must be provided promptly to DISTRIBUTOR and in no case
          later than thirty (30) days after receipt of such request from Owner's
          legal representative. Upon the submission of all requested
          information, DISTRIBUTOR agrees to review such application(s) pursuant
          to the then current criteria generally applied by DISTRIBUTOR in
          qualifying dealer Owners and/or General Managers. DISTRIBUTOR shall
          either approve or disapprove the application(s) within ninety (90)
          days of full compliance with all DISTRIBUTOR's requests for
          information. If DISTRIBUTOR approves the application(s), it shall
          offer to enter into a new Toyota Dealer Agreement with Owner's Heir(s)
          in the form then currently in use, subject to such additional
          conditions and for such a term as DISTRIBUTOR deems appropriate.

                                      30
<PAGE>
 
          In the event that DISTRIBUTOR does not approve the designated Heir(s)
          or designated candidate for General Manager, or if the Owner's legal
          representative withdraws his or her notice of the Heir(s) intent to
          succeed as Owner(s), or if the legal representative or any proposed
          owners or General Manager fails to timely provide the required
          information, DISTRIBUTOR may reinstate or issue a notice of
          termination. Nothing in this Section shall constitute a waiver of
          DISTRIBUTOR's right under Section XXI to exercise its right of first
          refusal or option to purchase.

       B. INCAPACITY OF OWNER

          The parties agree that, as used herein, incapacity shall refer to any
          physical or mental ailment that, in DISTRIBUTOR's opinion, adversely
          affects Owner's ability to meet his or her obligations under this
          Agreement. DISTRIBUTOR may terminate this Agreement when an
          incapacitated Owner also is the General Manager identified herein.

          Prior to the effective date of any notice of termination, an
          incapacitated Owner who is also the General Manager, or his or her
          legal representative, may propose a new candidate for the position of
          General Manager. Such proposal shall be in writing and shall suspend
          any pending notice of termination until DISTRIBUTOR advises DEALER of
          its approval or disapproval of the new candidate. Upon receipt of such
          notice, DISTRIBUTOR and DEALER shall follow the qualification
          procedures set forth in subsection (A) above.

      C.  NOMINATION OF SUCCESSOR
          PRIOR TO DEATH OR INCAPACITY OF OWNER

          An Owner owning a majority of DEALER's stock may nominate a candidate
          to assume ownership and/or the position of General Manager of the
          dealership upon his or her death or incapacity.

          As soon as practicable after such nomination, DISTRIBUTOR will request
          such personal and financial information from the nominated Owner
          and/or General Manager candidate as it reasonably and customarily may
          require in evaluating such candidates, DISTRIBUTOR shall apply
          criteria then currently used by DISTRIBUTOR in qualifying Owners
          and/or General Managers of authorized dealers. Upon receipt of all
          requested information, DISTRIBUTOR shall either approve or disapprove
          such candidate. Approval by DISTRIBUTOR will not be unreasonably
          withheld. In the event of the death or incapacity of the nominating
          Owner, DISTRIBUTOR will enter into a new Toyota Dealer Agreement with
          the approved nominee of a length to be determined by DISTRIBUTOR.
          DISTRIBUTOR agrees that DEALER may renominate the candidate

                                      31
<PAGE>
 
          after the expiration of this Agreement, and DISTRIBUTOR will approve
          such nomination provided: (1) DISTRIBUTOR and DEALER have entered into
          a new Toyota Dealer Agreement; and (2) the proposed candidate
          continues to comply with the then current criteria used by DISTRIBUTOR
          in qualifying such candidates. If DISTRIBUTOR does not initially
          qualify the candidate, DISTRIBUTOR agrees to review the reason(s) for
          its decision with Owner. Owner is free at any time to renew its
          nomination. However, in such instances, the candidate must again
          qualify pursuant to the then current criteria. Owner may, by written
          notice, withdraw a nomination at any time, even if DISTRIBUTOR has
          previously qualified said candidate.

XXIII. TERMINATION

       A. VOLUNTARY TERMINATION BY DEALER

          DEALER may voluntarily terminate this Agreement at any time by written
          notice to DISTRIBUTOR. Termination shall be effective thirty (30) days
          after receipt of the notice by DISTRIBUTOR, unless otherwise mutually
          agreed in writing.

       B. TERMINATION FOR CAUSE

          1. Immediate Termination

             DEALER and DISTRIBUTOR agree that the following conduct is within
             DEALER's control and is so contrary to the goals, purposes and
             objectives of this Agreement as to warrant its immediate
             termination. Accordingly, DEALER agrees that if it engages in any
             of the following types of conduct, DISTRIBUTOR shall have the right
             to terminate this Agreement immediately:

             a. If DEALER fails to conduct any customary dealership operations
                for seven consecutive business days during DEALER's customary
                business hours, except in the event such closure or cessation of
                operation is caused by some physical event beyond the control of
                DEALER, such as fires, floods, earthquakes, or other acts of
                God;

             b. If DEALER becomes insolvent, or files any petition under
                bankruptcy law, or executes an assignment for the benefit of
                creditors, or appoints a receiver or trustee or mother officer
                having similar powers is appointed for DEALER and is not removed
                within thirty (30) days from his appointment thereto or there is
                any levy under attachment or execution or similar process which
                is not vacated or removed by payment or bonding within ten (10)
                days; 

                                      32
<PAGE>
 
             c. If DEALER, or any Owner or officer or parent company of DEALER,
                is convicted of any felony;

             d. If DEALER or any Owner, officer or General Manager of DEALER
                makes any material misrepresentation to DISTRIBUTOR, including,
                but not limited to, any misrepresentations made by DEALER to
                DISTRIBUTOR in applying for this Agreement or for approval as
                Owner or General Manager of DEALER;

             e. If DEALER fails to obtain or maintain any license, permit or
                authorization necessary for the conduct by DEALER of his or her
                business pursuant to this Agreement, or such license, permit or
                authorization is suspended or revoked; or

             f. If DEALER makes any attempted or actual sale, transfer or
                assignment by DEALER of this Agreement or any of the rights
                granted DEALER hereunder, or upon any attempted or actual
                transfer, assignment or delegation by DEALER of any of the
                responsibilities assumed by it under this Agreement without the
                prior written approval of DISTRIBUTOR.

          2. Termination Upon Sixty Days Notice

             The following conduct violates the terms and conditions of this
             Agreement and, if DEALER engages in such conduct, DISTRIBUTOR shall
             have the right to terminate this Agreement upon sixty (60) days
             notice:

             a. Appointment of a new General Manager without the prior written
                approval of DISTRIBUTOR;

             b. Conducting, directly or indirectly, any Toyota dealership
                operation at any location other than at the Approved
                Location(s);

             c. Failure of DEALER to make any payments to DISTRIBUTOR when due;

             d. Failure of DEALER to establish or maintain during the existence
                of this Agreement the required net working capital or adequate
                flooring line;

             e. Any dispute, disagreement or controversy among Owners, partners,
                managers, officers or stockholders of DEALER that, in the
                reasonable opinion of DISTRIBUTOR, adversely affects the
                ownership, operation, management, business, reputation or
                interests of DEALER or DISTRIBUTOR;

                                      33
<PAGE>
 
             f. Impairment of the reputation or financial standing of DEALER,
                Owner, officer or parent company subsequent to the execution of
                this Agreement;

             g. Refusal to permit DISTRIBUTOR to examine or audit DEALER's
                accounting records as provided herein upon receipt by DEALER
                from DISTRIBUTOR of written notice requesting such permission or
                information;

             h. Failure of DEALER to furnish all required sales or financial
                information and related supporting information in a timely
                manner;

             i. Any civil, criminal or administrative liability found against
                DEALER or any Owner, officer or parent company of DEALER for any
                automotive-related matter which adversely affects the ownership,
                operation, management, reputation, business or interests of
                DEALER, or impairs the goodwill associated with the Toyota
                Marks; or

             j. Breach or violation by DEALER of any other term or provision of
                this Agreement.

          3. Termination for Failure of Performance

             If, upon evaluation of DEALER's performance pursuant to Section
             XIX, herein, DISTRIBUTOR concludes that DEALER has failed to
             perform adequately its sales, service, parts or customer
             satisfaction responsibilities or to provide adequate dealership
             facilities, DISTRIBUTOR shall notify DEALER in writing of such
             failure(s) and will endeavor to review promptly with DEALER the
             nature and extent of such failure(s), and will grant DEALER 180
             days or such other period as may be required by law to correct such
             failure(s). If DEALER fails or refuses to correct such failure(s)
             or has not made substantial progress towards remedying such
             failure(s) at the expiration of such period, DISTRIBUTOR may
             terminate this Agreement upon sixty (60) days notice or such other
             notice as may be required by law. Section XXIII(B)(3) shall not be
             applicable where DEALER has relocated without DISTRIBUTOR's
             approval.

          4. Termination Upon Death or Incapacity
                                                        .
             DISTRIBUTOR may terminate this Agreement in the event of the death
             of an Owner or upon the incapacity of any Owner who is also the
             General Manager identified herein, upon written notice to DEALER
             and/or such Owner's legal representative. Termination upon either
             of these events shall be effective ninety (90) days from the date
             of such notice.

                                      34
<PAGE>
 
       C. NOTICE OF TERMINATION

          Any notice of termination under this Agreement shall be in writing and
          shall be mailed to DEALER or its General Manager at DEALER's Approved
          Location by certified mail, return receipt requested, or shall be
          delivered in person to the dealership. Such notice shall be effective
          upon the date of receipt. DISTRIBUTOR need not state all grounds on
          which it relies in its termination of DEALER, and shall have the right
          to amend such notice as appropriate. DISTRIBUTOR's failure to refer to
          any additional grounds for termination shall not constitute a waiver
          of its right later to rely upon such grounds.

       D. CONTINUANCE OF BUSINESS RELATIONS

          Upon receipt of any notice of termination or non-renewal, DEALER
          agrees to conduct itself and its operation until the effective date of
          termination or non-renewal in a manner that will not injure the
          reputation or goodwill of the Toyota Marks or DISTRIBUTOR.

       E. REPURCHASE PROVISIONS

          1. DISTRIBUTOR's Obligations

             Upon the expiration or termination of this Agreement (other than
             pursuant to an approved agreement to sell the dealership business
             or assets or to otherwise transfer the ownership of DEALER),
             DISTRIBUTOR shall repurchase from DEALER the following:

             a. New, unused, never titled, unmodified, undamaged, current model
                year Toyota Motor Vehicles with less than 100 miles, then unsold
                in DEALER's inventory. The prices of such Motor Vehicles shall
                be the same as those at which they were original purchased by
                DEALER, less all prior refunds or other allowances made by
                DISTRIBUTOR to DEALER with respect thereto.

             b. New, unused and undamaged Toyota parts and accessories,
                contained in the original packaging, then unsold in DEALER's
                inventory that are in good and saleable condition. The prices
                for such parts and accessories shall be the prices last 
                established by DISTRIBUTOR for the sale of identical parts or
                accessories to dealers in the area in which DEALER is located.

             c. Special service tools recommended by DISTRIBUTOR and then owned
                by DEALER and that are especially designed for servicing Toyota
                Motor Vehicles. The prices for such special service tools will
                be the price paid by DEALER less appropriate depreciation, or
                such other price as the parties may negotiate.

                                      35
<PAGE>
 
             d. Signs that DISTRIBUTOR has recommended for identification of
                DEALER and are owned by DEALER. The price of such signs shall be
                the price paid by DEALER less appropriate depreciation or such
                other price as the parties may negotiate.

          2. Responsibilities of DEALER

             DISTRIBUTOR's obligations to repurchase the items set forth in this
             Section are contingent upon DEALER fulfilling the following
             obligations:

             a. Within thirty (30) days after the date of expiration or the
                effective date of termination of this Agreement, DEALER shall
                deliver or mail to DISTRIBUTOR a detailed inventory of all items
                referred to in this Section which it requests DISTRIBUTOR to
                repurchase and shall certify that such list is true and
                accurate.

             b. DEALER shall be entitled to request repurchase of only those
                items which it purchased from DISTRIBUTOR, unless DISTRIBUTOR
                agrees otherwise.

             c. Products and special service tools to be repurchased by
                DISTRIBUTOR from DEALER shall be delivered by DEALER to
                DISTRIBUTOR's place of business at DEALER's expense.

             d. DEALER will execute and deliver to DISTRIBUTOR instruments
                satisfactory to DISTRIBUTOR conveying good and marketable title
                to the aforesaid items to DISTRIBUTOR. If such items are subject
                to any lien or charge of any kind, DEALER will procure the
                discharge in satisfaction thereof prior to their repurchase by
                DISTRIBUTOR.

             e. DEALER will remove, at its own expense, all signage beating
                Toyota marks which it owns from DEALER's Approved Location(s)
                before it is eligible for payment for any repurchased items
                pursuant to Section XXIII(E).

          3. Payment by DISTRIBUTOR

             DISTRIBUTOR will pay DEALER for such items as DEALER may request be
             repurchased and that qualify hereunder as soon as practicable upon
             DEALER's compliance with the obligations set forth herein and upon
             computation of any outstanding indebtedness of DEALER to
             DISTRIBUTOR. DISTRIBUTOR shall have the right to offset from any
             amounts due to DEALER hereunder the total sum of DEALER's
             outstanding indebtedness to DISTRIBUTOR.

                                      36
<PAGE>
 
             If DEALER disagrees with DISTRIBUTOR's valuation of any item
             herein, and DEALER and DISTRIBUTOR have not resolved their
             disagreement within sixty (60) days of the effective date of
             termination or expiration of this Agreement, DISTRIBUTOR shall pay
             to DEALER the amount to which it reasonably believes DEALER is
             entitled. DEALER's exclusive remedy to recover any additional sums
             that it believes is due under this Section shall be by resort to
             any existing Alternative Dispute Resolution program established by
             DISTRIBUTOR that is binding on DISTRIBUTOR. If no Alternative
             Dispute Resolution program is then existing, DEALER's exclusive
             remedy shall be by resort to arbitration in accordance with the
             commercial arbitration rules of the American Arbitration
             Association (AAA). The site Of the arbitration shall be the office
             of the AAA in the locality of DISTRIBUTOR's principal place of
             business.

XXIV.  MANAGEMENT OF DISPUTES

       A. ALTERNATIVE DISPUTE RESOLUTION PROGRAMS

          DISTRIBUTOR and DEALER acknowledge that disputes involving the
          performance of this Agreement may from time to time arise that cannot
          be resolved at the DISTRIBUTOR level. In order to minimize the effects
          of such disputes on their business relationship, the parties agree to
          participate in such Alternative Dispute Resolution programs, including
          mediation, as may be established by DISTRIBUTOR in its sole
          discretion.

          It is expressly understood that, unless otherwise specified in this
          Agreement, the results of any Alternative Dispute Resolution program
          will not be binding upon DEALER, but shall be binding upon
          DISTRIBUTOR. The parties' commitment to support and participate in
          Alternative Dispute Resolution programs specifically is not a waiver
          of DEALER's right to later resort to litigation before any judicial or
          administrative forum.

       B. APPLICABLE LAW

          This Agreement shall be governed by and construed according to the
          laws of the state in which DEALER is located.

       C. MUTUAL RELEASE

          Each party hereby releases the other from any and all claims and
          causes of action that it may have against the other for money damages
          arising from any event occurring prior to the date of execution of
          this Agreement, except for any accounts payable by one

                                      37
<PAGE>
 
<PAGE> 

          party to the other as a result of the purchase of any Toyota Products,
          audit adjustments or reimbursement for any services. This release does
          not extend to claims which either party does not know or reasonably
          suspect to exist in its favor at the time of the execution of this
          Agreement.

XXV.   DEFENSE AND INDEMNIFICATION

       A. DEFENSE AND INDEMNIFICATION BY DISTRIBUTOR

          DISTRIBUTOR agrees to assume the defense of DEALER and to indemnify
          and hold harmless DEALER, expressly conditioned and subject to all
          provisions of Section XXV(C), against loss in any lawsuit or claim
          naming DEALER for bodily injury, property damage or breach of warranty
          caused solely by an alleged defect in design, manufacture or assembly
          of a Toyota Product (except for tires not manufactured by FACTORY)
          sold by DISTRIBUTOR to DEALER for resale that has not been altered,
          converted or modified by or for DEALER, provided that the alleged
          defect could not reasonably have been discovered by DEALER during pre-
          delivery inspection or service or installation of Toyota Products,
          less any offset. DISTRIBUTOR agrees to defend, to indemnify and hold
          harmless DEALER for alleged misrepresentations, misleading statements,
          unfair or deceptive trade practices of DISTRIBUTOR, IMPORTER or
          FACTORY or any substantial damage to a Toyota Product purchased by
          DEALER from DISTRIBUTOR which was improperly repaired by DISTRIBUTOR
          unless DEALER has been notified of such damage in writing prior to
          retail delivery of the affected Toyota Product. Notwithstanding any
          provision of this Agreement, DISTRIBUTOR shall not be required to
          defend, to indemnify or hold harmless DEALER against loss resulting
          from any claim, complaint, or action alleging DEALER misconduct,
          including but not limited to, improper or unsatisfactory service or
          repair, or misrepresentations, or any claim of DEALER's unfair or
          deceptive trade practices or any claim of improper environmental or
          work place practices or conditions.

       B. DEFENSE AND INDEMNIFICATION BY DEALER

          DEALER agrees to assume the defense of DISTRIBUTOR, IMPORTER or
          FACTORY and to indemnify and hold them harmless, expressly conditioned
          and subject to all provisions of Section XXV(C), against loss in any
          lawsuit or claim naming DISTRIBUTOR, IMPORTER or FACTORY, or their
          subsidiaries or affiliates, when the claim or lawsuit directly or
          indirectly involves any allegations of: (1) DEALER's alleged failure
          to comply, in whole or in part, with any obligation assumed by DEALER
          pursuant to this Agreement; or (2) DEALER's alleged negligent or
          improper repairing or servicing or installation of a new or used
          Toyota Motor Vehicle or Toyota Product, or any loss related to other
          motor vehicles or equipment, other than Toyota Motor Vehicles or
          Products, as may be

                                      38

<PAGE>
 
          sold, serviced, repaired or installed by DEALER; or (3) DEALER's
          alleged breach of any contract or warranty other than that provided by
          DISTRIBUTOR, IMPORTER or FACTORY; or (4) DEALER's alleged misleading
          statements, misrepresentations, or deceptive or unfair trade
          practices; or (5) any modification, conversion or alteration made by
          or for DEALER to a Toyota Product, except those made pursuant to the
          express written approval and instruction of DISTRIBUTOR, IMPORTER or
          FACTORY; or (6) any and all claims arising out of or in any way
          connected to the hiring, retention or termination of any person by
          DEALER, including but not limited to, claims of employment
          discrimination, age, race or sex discrimination or harassment,
          wrongful discharge or termination, breach of the covenant of good
          faith and fair dealing, breach of contract, interference with
          contractual relations, intentional and/or negligent infliction of
          emotional distress, defamation, negligent hiring, violations of or 
          non-compliance with' the Occupational Safety and Health Act, the Fair
          Labor Standards Act, or the Employment Retirement Income and Security
          Act ("ERISA") or any similar state or local laws.

       C. CONDITIONAL DEFENSE AND/OR INDEMNIFICATION

          The obligations of the DEALER, DISTRIBUTOR, IMPORTER or FACTORY to
          defend, to indemnify and hold harmless are expressly conditioned and
          subject to all of the following terms:

          l. The party initially requesting defense and/or indemnification shall
             make such request in writing and deliver to the other party within
             twenty (20) days of service of any legal process or within twenty
             (20) days of discovery of facts giving rise to indemnification,
             whichever is sooner.

          2. The party requesting defense and/or indemnification covenants,
             represents and warrants that it, its agents or employees have not
             permitted a default judgment to be entered and have not made any
             direct or indirect admissions of liability, and are not aware of
             any credible evidence to support any independent claim of liability
             or lack of unity of interest. Said party further agrees to
             cooperate fully in the defense of such action as may be reasonably
             required.

          3. The party requested to defend and/or indemnify shall have sixty
             (60) days from receipt of a request in writing to conduct an
             investigation or otherwise determine whether or not, or under what
             conditions, it will agree to defend and/or indemnify.

          4. During the pendency of a request for defense and/or
             indemnification, and thereafter, the requesting party shall have a
             continuing duty to avoid undue prejudice to

                                      39
<PAGE>
 
             the other party and to mitigate damages. The party requesting
             indemnification shall protect its own interests until a decision
             has been made to assume the defense and/or provide indemnification.

          5. The party accepting the request for defense and/or indemnification
             shall have the right to engage and direct counsel of its own
             choosing and shall have the obligation to reimburse the requesting
             party for all reasonable costs and expenses, including reasonable
             attorneys' fees, incurred prior to such assumption except where the
             request is made under the circumstances described in XXV(C)(6), and
             subject to the provisions of XXV(C)(9).

          6. If subsequent developments in a case, supported by credible
             evidence, cause a party to reasonably conclude that the allegations
             which initially preclude a request or acceptance of a request for
             defense and/or indemnification are meritless or no longer at issue,
             then the request may be retendered.

          7. No party shall be required to agree to such a subsequent request or
             retender of defense and/or indemnification where that party would
             be unduly prejudiced by such delay. Initial acceptance by any party
             of defense and/or indemnification is not a waiver of the right to
             retender timely.

          8. A party agreeing to defend and/or indemnify may make its written
             agreement conditioned upon the continued existence of the state of
             facts as then known as well as such other reasonable conditions as
             may be dictated by the particular allegations or claims.

          9. Any party withdrawing from its agreement to defend and/or
             indemnify, shall give timely written notice which shall be
             effective upon receipt. The withdrawing party shall be responsible
             for all costs and expenses of defense prior to receipt of notice of
             withdrawal, except for those reasonable costs and expenses,
             including reasonable attorneys' fees, incurred solely for the
             benefit of the other party.

         10. The defense, indemnification and hold harmless obligations of this
             Agreement shall survive the termination of this Agreement.

XXVl.  GENERAL PROVISIONS

       A. NOTICES

          Except as otherwise specifically provided herein, any notice required
          to be given by either party to the other shall be in writing and
          delivered personally to the dealership or by certi-

                                      40
<PAGE>
 
          fied mail, return receipt requested, and shall be effective on
          the date of receipt. Notices to DEALER shall be directed to DEALER or
          its General Manager at DEALER's Approved Location. Notices to
          DISTRIBUTOR shall be directed to the General Manager of DISTRIBUTOR.

       B. NO IMPLIED WAIVERS

          The failure of either party at any time to require performance by the
          other party of any provision herein shall in no way affect the right
          of such party to require such performance at any time thereafter, nor
          shall any waiver by any party of a breach of any provision herein
          constitute a waiver of any succeeding breach of the same or any other
          provision, nor constitute a waiver of the provision itself.

          Any continuation of business relations between the parties following
          expiration of this Agreement shall not be deemed a waiver of the
          expiration nor shall it imply that either party has committed to
          continue to do business with the other at any time in the future.
          Should this Agreement be renewed or any other form of agreement be
          offered to DEALER, DISTRIBUTOR reserves the right to offer an
          agreement of a length and upon such additional terms and conditions as
          it deems reasonable.

       C. SOLE AGREEMENT OF THE PARTIES

          There are no prior agreements or understandings, either oral or
          written, between the parties affecting this Agreement or relating to
          the sale or service of Toyota Products, except as otherwise
          specifically provided for or referred to in this Agreement. DEALER
          acknowledges that no representations or statements other than those
          expressly set forth herein were made by DISTRIBUTOR or any officer,
          employee, agent or representative thereof, or were relied upon by
          DEALER in entering into this Agreement. This Agreement cancels and
          supersedes all previous agreements between the parties relating to the
          subject matters covered herein. No change or addition to, or deletion
          of, any portion of this Agreement (except as provided in Section III)
          shall be valid or binding upon the parties hereto unless the same is
          approved in writing by an officer of each of the parties hereto.

       D. DEALER NOT AN AGENT OR REPRESENTATIVE

          DEALER is an independent business. This Agreement is not a property
          right and does not constitute DEALER, Owners or employees of DEALER as
          the agent or legal representatives of DISTRIBUTOR for any purpose
          whatsoever. DEALER, Owners and employees of DEALER or any other
          persons acting on behalf of DEALER are not granted

                                      41
<PAGE>
 
          any express or implied right or authority to assume or create any
          obligation on behalf of or in the name of DISTRIBUTOR or to bind
          DISTRIBUTOR in any manner whatsoever.

       E. ASSIGNMENT OF RIGHTS OR DELEGATION OF DUTIES

          This is a personal service agreement and may not be assigned or sold
          in whole or in part, directly or indirectly, voluntarily or by
          operation of law, without the prior written approval of DISTRIBUTOR.
          Any attempted transfer, assignment or sale without DISTRIBUTOR's prior
          written approval will be void and not binding upon DISTRIBUTOR.

       F. NO FRANCHISE FEE

          DEALER warrants that it has paid no fee, nor has it provided any goods
          or services in lieu of same, to DISTRIBUTOR or any other party in
          consideration of entering into this Agreement. The sole consideration
          for DISTRIBUTOR's entering into this Agreement is DEALER's ability,
          integrity, assurance of personal services and expressed intention to
          deal fairly and equitably with DISTRIBUTOR and the public.

       G. SEVERABILITY

          If any provision of this Agreement should be held invalid or
          unenforceable for any reason whatsoever, or conflicts with any
          applicable law, this Agreement will be considered divisible as to such
          provisions, and such provisions will be deemed mended to comply with
          such law, or if it cannot be so amended without materially affecting
          the tenor of the Agreement, then it will be deemed deleted from this
          Agreement in such jurisdiction, and in either case, the remainder of
          the Agreement will be valid and binding.

       H. NEW AND SUPERSEDING DEALER AGREEMENTS

          In the event any new and superseding form of dealer Agreement is
          offered by DISTRIBUTOR to authorized Toyota dealers generally at any
          time prior to the expiration of the term of this Agreement,
          DISTRIBUTOR may, by written notice to DEALER, replace this Agreement
          with a new agreement in a new and superseding form for a
          term not less than the then unexpired term of this Agreement.

       I. BENEFIT

          This Agreement is entered into by and between DISTRIBUTOR and DEALER
          for their sole and mutual benefit. Neither this Agreement nor any
          specific provision contained in it is intended or shall be construed
          to be for the benefit of any third party.

                                      42
<PAGE>
 
       J. NO FIDUCIARY RELATIONSHIP 

          This Agreement shall not be construed to create a fiduciary
          relationship between DEALER and DISTRIBUTOR.

       K. NO JOINT EMPLOYMENT
 
          DEALER acknowledges that it has assumed obligations under this
          Agreement to use its best efforts to sell and service Toyota Products,
          to increase the future growth in Toyota Product sales through
          increased customer satisfaction and other obligations related to the
          operation of the dealership and recognizes the necessity to employ and
          train qualified personnel to satisfy these commitments. To this end,
          DEALER agrees to employ only qualified persons who will fulfill the
          commitments made by DEALER agrees to employ only qualified persons who
          will fulfill the commitments made by DEALER to DISTRIBUTOR in this
          Agreement. Notwithstanding the foregoing, DEALER retains the sole and
          exclusive right to determine whom to hire and their qualifications, to
          direct, control and supervise DEALER's employees, and to establish all
          terms and conditions of employment of DEALER's employees. All
          supervision, control and direction of DEALER's employees shall be the
          sole and exclusive responsibility of DEALER. DEALER shall at all times
          remain the sole employer of persons employed by DEALER and, to this
          end, DEALER and DISTRIBUTOR agree that no act or omission of DEALER or
          DISTRIBUTOR shall be construed to make or render them joint employer,
          co-employer or alter ego of each other.

       L. CONSENT OF DISTRIBUTOR

          Any time that this Agreement provides that DEALER must obtain
          DISTRIBUTOR'S consent to any proposed conduct or change, DEALER must
          provide all information requested by DISTRIBUTOR concerning the
          proposal, and DISTRIBUTOR shall have a reasonable amount of time in
          which to evaluate the proposal.

       M. DISTRIBUTOR'S POLICIES

          This Agreement, from time to time, refers to certain policies and
          standards. DEALER acknowledges that these policies and standards are
          prepared by DISTRIBUTOR in its sole discretion based upon
          DISTRIBUTOR's evaluation of the marketplace. DISTRIBUTOR may
          reasonably amend its policies and standards as the marketplace changes
          from time to time.

                                      43
<PAGE>
 
XXVII. DEFINITIONS

       As used in this Agreement, the parties agree that the following terms
       shall be defined as exclusively set forth below.

       A. OWNER: The persons identified in Section IV hereof.

       B. GENERAL MANAGER: The person identified in Section V hereof.

       C. DEALER FACILITIES: The buildings, improvements, fixtures, and
          equipment situated at the Approved Location(s).

       D. APPROVED LOCATION(S): The location(s) and any facilities thereon,
          designated in Section VII that DISTRIBUTOR has approved for the
          dealership operation(s) specified therein.

       E. TOYOTA MARKS: The various Toyota trademarks, service marks, names,
          logos and designs that DEALER is authorized by DISTRIBUTOR to use in
          the sale and servicing of Toyota Products as specified in the current
          Toyota Brand Graphic Standards Manual.

       F. TOYOTA PRODUCTS: All Toyota Motor Vehicles, parts, accessories and
          equipment which IMPORTER, in its sole discretion, sells to DISTRIBUTOR
          for resale to authorized Toyota dealers.

       G. TOYOTA MOTOR VEHICLES: All motor vehicles identified in the current
          Toyota Product Addendum that DISTRIBUTOR sells to DEALER for resale.

       H. GENUINE TOYOTA PARTS AND ACCESSORIES: All Toyota brand Parts and
          Accessories manufactured by or on behalf of DISTRIBUTOR or FACTORY, or
          other parts and accessories specifically approved by FACTORY for use
          in servicing Toyota Motor Vehicles and sold by DISTRIBUTOR to DEALER
          for resale.

                                      44
<PAGE>
 
                          TOYOTA PRODUCT ADDENDUM TO
                            TOYOTA DEALER AGREEMENT

Pursuant to Paragraph I(A) of the Toyota Dealer Agreement, DISTRIBUTOR hereby
grants DEALER the non-exclusive right to buy and resell the Toyota Products as
defined in the Toyota Dealer Agreement and identified below:

                       (Internal combustion models only)

                    Avalon                 Land Cruiser
                    Camry                  RAV4
                    Celica                 4Runner
                    Corolla                Sienna
                    Paseo                  Solara
                    Supra                  Tacoma Truck
                    Tercel                 T100 Truck

and all parts, accessories and equipment for such vehicles.

This Toyota Product Addendum shall remain in effect unless and until superseded
by a new Toyota Product Addendum furnished DEALER by IMPORTER.
<PAGE>
 
                        PRIMARY MARKET AREA DEFINITION
                      ADDENDUM TO TOYOTA DEALER AGREEMENT
                                        
Pursuant to Section VIII of the Toyota Dealer Agreement, the following documents
provide a detailed definition of the Primary Market Area (PMA) that is currently
assigned to FAA Concord T, Inc., dba CONCORD TOYOTA  (DEALER).
            ---------------------------------------  

If DEALER's PMA is modified by DISTRIBUTOR, DISTRIBUTOR will provide DEALER with
a revised Addendum which defines the structure of the modified PMA.
<PAGE>
 










                     [MAP OF AREA GRAPHIC APPEARS HERE]









--------------------------------------------------------------------------------
CNCRD-WL M                                                  [SCALE APPEARS HERE]
PMA Shaded/Census Tracts outlined in Black

DATE: 09/21/98

<PAGE>
 
 










                     [MAP OF AREA GRAPHIC APPEARS HERE]









--------------------------------------------------------------------------------
CNCRD-WL M--CONCORD TOYOTA SALES                            [SCALE APPEARS HERE]
PMA Shaded/ZIP codes outlined in Blue     

DATE: 09/21/98


<PAGE>
 
 
 










                     [MAP OF AREA GRAPHIC APPEARS HERE]









--------------------------------------------------------------------------------
CNCRD-WL M--CONCORD TOYOTA SALES                            [SCALE APPEARS HERE]
PMA Shaded/ZIP codes outlined in Blue     

DATE: 09/21/98



<PAGE>
 
DEFINITION:  A-ORIGINAL DATE:     9/21/98

PMA 0109020018000001 CONCORD TOYOTA SALES       ZIP    /   ZIP*
  94519 94520 p94522 p94524 p94527 p94529     
  94518(77%) 94521(80%) 94523(70%) 94530(5%)  94547(8%) 94553(90%)
  94565(4%) 94596(3%) 94708(48%) 94803(11%)

DEFINITION:  A-ORIGINAL DATE:     9/21/98

PMA 0109020018000001 CONCORD TOYOTA SALES      Tract   /  Tract
  6-13-3150 3150.99 3160 3170 3180 3190 3100.01 3200.02 3200.99
  3211.01 3211.02 3211.03 3212 3220 3230 3240 3270 3280 3290 3300
  3310 3320 3331 3332 3340.01 3340.02 3340.03 3350 3361 3362 3371
  3372 3381 3552 3560.02

<PAGE>
 
                                                                    EXHIBIT 4-8

                                 TOYOTA DEALER
                     MINIMUM NET WORKING CAPITAL AGREEMENT

THIS AGREEMENT, made as of the 1st day of October, 1998 by and between
                               ---        -------
FAA Concord T Inc. dba CONCORD TOYOTA 
------------------------------------- 
            (Dealer)

a(an)     Individual      Partnership  X  Corporation, 
      ---             ---             ---

located at 1090 Concord Avenue     Concord, California
           --------------------------------------------
               (Street)               (City, State)

Dealer Code Number 04176 (hereinafter called "DEALER") and
                   -----
TOYOTA MOTOR SALES, USA, INC.
SUCCESSOR TO TOYOTA MOTOR DISTRIBUTORS, INC. (hereinafter called "DISTRIBUTOR").
--------------------------------------------
              (Distributor)


DEALER and DISTRIBUTOR have entered into a Toyota Dealer Agreement dated
October 1, 1998 and net working capital requirements have been established in an
---------------
effort to ensure that there is sufficient capital available for the growth of a
dealer. The net working capital requirements are the established minimums. The
term "net working capital" shall mean the difference between current assets and
current liabilities plus the current portion of long-term debt.


DEALER and DISTRIBUTOR mutually agree as follows:

  1. That it is considered necessary for the proper operation of DEALER's
     business that DEALER should have, maintain and actually employ in its
     business $2,381,575 of net working capital.
              ----------

  2.  X  That as of the 30 day of September, 1998 DEALER meets or exceeds the
     ---                --        ---------
         Net Working Capital requirement as documented on DEALER's         , 
                                                                   --------
         1998, Year-To-Date Financial Statement or Pro Forma dated August 19, 
         1998.                                                     ----------
         ----

                                       OR


  3.     That as of the     day of             , DEALER is deficient
     ---                ---        ------------
         $           in Net Working Capital, as documented on DEALER's
           ---------
                           , 1998 Year-To-Date Financial Statement.
         -----------------

  4. If, because of changed conditions, it should become necessary to revise the
     minimum amount of net working capital deemed to be necessary to conduct
     DEALER's business properly, DISTRIBUTOR shall have the right to revise
     DEALER's minimum net working capital requirement to be used in dealership's
     operation and DEALER agrees to meet the new standard within a reasonable
     period of time.

  5. This Agreement is incorporated in and made a part of the aforesaid Toyota
     Dealer Agreement and any subsequent Toyota Dealer Agreement entered into
     between DEALER and DISTRIBUTOR.
<PAGE>
DEALER:                                  DISTRIBUTOR:

             FAA Concord T Inc.                  Toyota Motor Sales USA, Inc.
         ----------------------------            ----------------------------
             DEALER ENTITY NAME                        DISTRIBUTOR NAME


             /s/ Thomas A. Price                         /s/ J. Lentz
         ----------------------------            ----------------------------
          SIGNATURE Thomas A. Price                   SIGNATURE J. Lentz


                  President                             General Manager
         ----------------------------            ----------------------------
                    TITLE                                    TITLE