Document:

<PAGE>

                                                                    EXHIBIT 10.2

                                    AGREEMENT

                            DATED February 28, 2003

                            Pound Sterling45,000,000

                                 CREDIT FACILITY

                                       FOR

                              SYTNER GROUP LIMITED

                                   PROVIDED BY

                         THE ROYAL BANK OF SCOTLAND plc
                               acting as agent for
                          NATIONAL WESTMINSTER BANK Plc

               Produced by The Royal Bank of Scotland Group using
                  [ALLEN AND OVERY GRAPHIC][ NEWCHANGE GRAPHIC]

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                                      INDEX

<TABLE>
<CAPTION>

CLAUSE                                                                                                    Page
------                                                                                                    ----

<S>                                                                                                       <C>
1.       Interpretation......................................................................................1
2.       Facility............................................................................................9
3.       Purpose.............................................................................................9
4.       Conditions precedent................................................................................9
5.       Utilisation.........................................................................................9
6.       Repayment..........................................................................................10
7.       REDUCTION OF TRANCHE A COMMITMENT..................................................................10
8.       Prepayment and cancellation........................................................................11
9.       Interest...........................................................................................13
10.      Terms..............................................................................................14
11.      Security...........................................................................................14
12.      Market disruption..................................................................................14
13.      Taxes..............................................................................................15
14.      Increased Costs....................................................................................16
15.      Mitigation.........................................................................................17
16.      Payments...........................................................................................17
17.      Representations....................................................................................18
18.      Information covenants..............................................................................20
19.      Financial covenants................................................................................22
20.      General covenants..................................................................................29
21.      Default............................................................................................33
22.      Evidence and calculations..........................................................................36
23.      Fees...............................................................................................36
24.      Indemnities and Break Costs........................................................................37
25.      Expenses...........................................................................................38
26.      Amendments and Waivers.............................................................................38
27.      Changes to the Parties.............................................................................39
28.      Disclosure of information..........................................................................39
29.      Set-off............................................................................................40
30.      Severability.......................................................................................40
31.      Notices............................................................................................40
32.      Language...........................................................................................41
33.      Governing law......................................................................................41
34.      Enforcement........................................................................................42

SCHEDULES
---------

1        Conditions precedent documents.....................................................................43
2        Calculation of the Mandatory Cost..................................................................46
3        Existing Security..................................................................................48

</TABLE>

<PAGE>

THIS AGREEMENT is dated 28th February 2003

BETWEEN:

(1)      SYTNER GROUP LIMITED (registered number 02883766) (formerly Sytner
         Group Plc) (the "COMPANY"); and

(2)      THE ROYAL BANK OF SCOTLAND PLC ACTING AS AGENT FOR NATIONAL WESTMINSTER
         BANK PLC as lender (the "Lender").

IT IS AGREED as follows:
1.       INTERPRETATION
1.1      DEFINITIONS

         In this Agreement:

         "AFFILIATE"

         means a Subsidiary or a Holding Company of a person or any other
         Subsidiary of that Holding Company.

         "AVAILABILITY PERIOD"

         means the period from and including the date of this Agreement to and
         including the Final Maturity Date.

         "BREAK COSTS"

         means the amount (if any) which the Lender is entitled to receive under
         this Agreement as compensation if any part of a Loan or overdue amount
         is prepaid.

         "BUSINESS DAY"

         means a day (other than a Saturday or a Sunday) on which banks are open
         for general business in London.

         "COMMITMENT"

         means:

         (I) in respect of Tranche A Pound Sterling10,000,000 (as adjusted under
         Clause 7); and

         (II) in respect of Tranche B Pound Sterling35,000,000.

         in each case to the extent not cancelled, transferred or reduced under
         this Agreement and "COMMITMENT" shall be construed accordingly.

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                                       2

         "DEFAULT"

         means:

         (a) an Event of Default; or

         (b) an event which would be (with the expiry of a grace period, the
         giving of notice or the making of any determination under the Finance
         Documents or any combination of them) an Event of Default.

         "EVENT OF DEFAULT"

         means an event specified as such in this Agreement.

         "EXISTING FACILITIES"

         means the Pound Sterling6,000,000 Revolving Credit Facility and the
         Pound Sterling14,000,000 Term Loan Facility dated 3 December 1997 (as
         subsequently amended on 13 August 1999 and 31 October 2001) granted by
         The Royal Bank of Scotland plc to the Company.

         "EXISTING SECURITY"

         means all existing Security Documents held by the Lender and detailed
         in Schedule 3.

         "FACILITY"

         means the credit facility made available under this Agreement.

         "FACILITY OFFICE"

         means the office(s) through which the Lender will perform its
         obligations under this Agreement.

         "FINAL MATURITY DATE"

         means 31 January 2006.

         "FINANCE DOCUMENT"

         means:

         (a) this Agreement;

         (b) a Security Document; or

         (c) any other document designated as such by the Lender and the
         Company.

         "FINANCIAL INDEBTEDNESS"

         means any indebtedness for or in respect of:

         (a) moneys borrowed;

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                                       3

         (b) any acceptance credit;

         (c) any bond, note, debenture, loan stock or other similar instrument;

         (d) any finance or capital lease;

         (e) receivables sold or discounted (otherwise than on a non-recourse
         basis);

         (f) the acquisition cost of any asset to the extent payable after its
         acquisition or possession by the party liable where the deferred
         payment is arranged primarily as a method of raising finance or
         financing the acquisition of that asset;

         (g) any derivative transaction protecting against or benefiting from
         fluctuations in any rate or price (and, except for non-payment of an
         amount, the then mark to market value of the derivative transaction
         will be used to calculate its amount);

         (h) any other transaction (including any forward sale or purchase
         agreement) which has the commercial effect of a borrowing;

         (i) any counter-indemnity obligation in respect of any guarantee,
         indemnity, bond, letter of credit or any other instrument issued by a
         bank or financial institution; or

         (j) any guarantee, indemnity or similar assurance against financial
         loss of any person in respect of any item referred to in paragraphs (a)
         to (i) above.

         "GROUP"

         means the Parent and its Subsidiaries and "MEMBER OF THE GROUP" and
         "GROUP COMPANY" means any of them.

         "HOLDING COMPANY"

         means a holding company within the meaning of section 736 of the
         Companies Act 1985.

         "INCREASED COST"

         means:

         (a) an additional or increased cost;

         (b) a reduction in the rate of return under a Finance Document or on
         its overall capital; or

         (c) a reduction of an amount due and payable under any Finance
         Document,

         which is incurred or suffered by the Lender or any of its Affiliates
         but only to the extent attributable to the Lender having entered into
         any Finance Document or funding or performing its obligations under any
         Finance Document.

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                                       4

         "LIBOR"

         means for a Term of any Loan or overdue amount the rate quoted by the
         Lender to leading banks in the London interbank market as of 11.00 a.m.
         on the Rate Fixing Day for the offering of deposits in Sterling or
         overdue amount for a period comparable to that Term.

         "LOAN"

         means, unless otherwise stated in this Agreement, the principal amount
         of each borrowing under this Agreement or the principal amount
         outstanding of that borrowing.

         "MANDATORY COST"

         means the cost of complying with certain regulatory requirements,
         expressed as a percentage rate per annum and calculated by the Lender
         under Schedule 2 (Calculation of the Mandatory Cost).

         "MARGIN"

         means the percentage per annum set out in Column 2 below opposite the
         ratio of Consolidated Net Borrowing to Consolidated EBITDA less
         Stocking Interest in column 1 as stated in the latest Compliance
         Certificate provided under Clause 18.2.

<TABLE>
<CAPTION>
                    COLUMN 1                                     COLUMN 2
                    --------                                     --------
<S>                                                             <C>
                  1:1 or below                                     0.85

                  Greater than 1:1                                 1.25

</TABLE>

         "MATERIAL ADVERSE EFFECT"

         means a material adverse effect on:

         (a) the business or financial condition of the Group as a whole;

         (b) the ability of the Company to perform its obligations under any
         Finance Document; or

         (c) the validity or enforceability of any Finance Document.

         "MATERIAL FRANCHISING AGREEMENT"

         means a franchising agreement entered into by any Group Company:

         (i) where the profits attributable to or generated under such
         franchising agreement are equal to or greater than 5 per cent. of the
         aggregate profits of the Group; or

         (ii) where the turnover attributable to or generated under such
         franchising agreement is equal to or greater than 5 per cent. of the
         aggregate turnover of the Group;

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                                       5

         "MATERIAL SUBSIDIARY"

         means the Company, and each Subsidiary of the Company:

         (a) whose profits are equal to or greater than 5 per cent. of the
         aggregate profits of the Group; or

         (b) whose turnover is equal to or greater than 5 per cent. of the
         aggregate turnover of the Group; or

         (c) whose assets have a value equal to or greater than 5 per cent. of
         the aggregate value of all assets owned by the Group.

         "MATURITY DATE"

         means the last day of the Term of a Loan.

         "ORIGINAL FINANCIAL STATEMENTS"

         means the audited consolidated financial statements of the Company for
         the year ended 28 February 2002.

         "PARENT"

         means UAG UK Holdings Limited (company number 4334322).

         "PARTY"

         means a party to this Agreement.

         "RATE FIXING DAY"

         means the first day of a Term for a Loan or such other day as the
         Lender determines is generally treated as the rate fixing day by market
         practice in the relevant interbank market.

         "REQUEST"

         means a request for a Loan, in a form approved by the Lender.

         "REQUIRED SECURITY"

         means the Security Documents detailed in Schedule 4.

         "ROLLOVER LOAN"

         means one or more Loans:

         (a) to be made on the same day that a maturing Loan is due to be
         repaid; and

         (b) the aggregate amount of which is equal to or less than the maturing
         Loan.

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                                       6

         "SECURITY DOCUMENT"

         means the Existing Security, the Required Security and any other
         document in a form approved by the Lender guaranteeing or evidencing or
         creating security over any asset to secure any obligation of the
         Company to the Lender under the Finance Documents.

         "SECURITY INTEREST"

         means any mortgage, pledge, lien, charge, assignment, hypothecation or
         security interest or any other agreement or arrangement having a
         similar effect.

         "STERLING" OR "POUND STERLING"

         means the lawful currency for the time being of the U.K.

         "SUBSIDIARY"

         means:

         (a) a subsidiary within the meaning of section 736 of the Companies Act
         1985; and

         (b) unless the context otherwise requires, a subsidiary undertaking
         within the meaning of section 258 of the Companies Act 1985.

         "TAX"

         means any tax, levy, impost, duty or other charge or withholding of a
         similar nature (including any related penalty or interest).

         "TAX DEDUCTION"

         means a deduction or withholding for or on account of Tax from a
         payment under a Finance Document.

         "TAX PAYMENT"

         means a payment made by the Company to the Lender in any way related to
         a Tax Deduction or under any indemnity given by the Company in respect
         of Tax under any Finance Document.

         "TERM"

         means each period determined under this Agreement by reference to which
         interest on a Loan or an overdue amount is calculated.

         "TRANCHE" means the following Loans to be made under this Agreement
         (which shall be drawn for the purpose as stipulated):

         (a) a Loan up to the aggregate principal amount of Pound
         Sterling10,000,000 for the purpose detailed in Clause 3.1(a) ("TRANCHE
         A"); and

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                                       7

         (b) a Loan of up to the aggregate principal amount of Pound
         Sterling35,000,000 for the purpose detailed in Clause 3.1(b) ("TRANCHE
         B").

         "U.K."

         means the United Kingdom.

         "UTILISATION DATE"

         means each date on which the Facility is utilised.

1.2      CONSTRUCTION

(a) In this Agreement, unless the contrary intention appears, a reference to:

         (i)      an "AMENDMENT" includes a supplement, novation, restatement or
                  re-enactment and "AMENDED" will be construed accordingly;

                  "ASSETS" includes present and future properties, revenues and
                  rights of every description;

                  an "AUTHORISATION" includes an authorisation, consent,
                  approval, resolution, licence, exemption, filing, registration
                  or notarisation;

                  "DISPOSAL" means a sale, transfer, grant, lease or other
                  disposal, whether voluntary or involuntary, and "DISPOSE" will
                  be construed accordingly;

                  "INDEBTEDNESS" includes any obligation (whether incurred as
                  principal or as surety) for the payment or repayment of money;

                  a "PERSON" includes any individual, company, corporation,
                  unincorporated association or body (including a partnership,
                  trust, joint venture or consortium), government, state,
                  agency, organisation or other entity whether or not having
                  separate legal personality;

                  a "REGULATION" includes any regulation, rule, official
                  directive, request or guideline (whether or not having the
                  force of law but, if not having the force of law, being of a
                  type with which any person to which it applies is accustomed
                  to comply) of any governmental, inter-governmental or
                  supranational body, agency, department or regulatory,
                  self-regulatory or other authority or organisation;

         (ii)     a currency is a reference to the lawful currency for the time
                  being of the relevant country;

         (iii)    a Default being "OUTSTANDING" means that it has not been
                  remedied or waived;

         (iv)     a provision of law is a reference to that provision as
                  extended, applied, amended or re-enacted and includes any
                  subordinate legislation;

         (v)      a Clause, a Subclause or a Schedule is a reference to a clause
                  or subclause of, or a schedule to, this Agreement;

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                                       8

         (vi)     a person includes its successors in title, permitted assigns
                  and permitted transferees;

         (vii)    a Finance Document or another document is a reference to that
                  Finance Document or other document as amended; and

         (viii)   a time of day is a reference to London time.

(b)      Unless the contrary intention appears, a reference to a "MONTH" or
         "MONTHS" is a reference to a period starting on one day in a calendar
         month and ending on the numerically corresponding day in the next
         calendar month or the calendar month in which it is to end, except
         that:

         (i)      if the numerically corresponding day is not a Business Day,
                  the period will end on the next Business Day in that month (if
                  there is one) or the preceding Business Day (if there is not);

         (ii)     if there is no numerically corresponding day in that month,
                  that period will end on the last Business Day in that month;
                  and

         (iii)    notwithstanding sub-paragraph (i) above, a period which
                  commences on the last Business Day of a month will end on the
                  last Business Day in the next month or the calendar month in
                  which it is to end, as appropriate.

(c)      Unless expressly provided to the contrary in a Finance Document, a
         person who is not a party to a Finance Document may not enforce any of
         its terms under the Contracts (Rights of Third Parties) Act 1999.

         (i)      Notwithstanding any term of any Finance Document, the consent
                  of any third party is not required for any variation
                  (including any release or compromise of any liability under)
                  or termination of that Finance Document.

(d)      Unless the contrary intention appears:

         (i)      a reference to a Party will not include that Party if it has
                  ceased to be a Party under this Agreement;

         (ii)     a term used in any other Finance Document or in any notice
                  given in connection with any Finance Document has the same
                  meaning in that Finance Document or notice as in this
                  Agreement;

         (iii)    if there is an inconsistency between this Agreement and any
                  other Finance Document, this Agreement will prevail;

         (iv)     any obligations of the Company under the Finance Documents
                  which is not a payment obligation remains in force for so long
                  as any payment obligation is or may be outstanding under the
                  Finance Documents; and

         the headings in this Agreement do not affect its interpretation.

<PAGE>
                                       9

2.       FACILITY

         Subject to the terms of this Agreement, the Lender makes available to
         the Company a revolving credit facility in an aggregate amount equal to
         the Commitment.

3.       PURPOSE

3.1      TRANCHES

         (a)      TRANCHE A

         Tranche A may only be used for the refinancing of Existing Facilities

         (b)      TRANCHE B

         Tranche B may only be used for payment of a dividend to the Parent not
         exceeding Pound Sterling7,500,000, to assist in the funding of
         dealership acquisitions and associated expenditure, Capital Expenditure
         and for ongoing general corporate purposes.

3.2      NO OBLIGATION TO MONITOR

         The Lender is not bound to monitor or verify the utilisation of the
         Facility.

4.       CONDITIONS PRECEDENT

4.1      CONDITIONS PRECEDENT DOCUMENTS

         A Request may not be given until the Lender has notified the Company
         that it has received all of the documents and evidence set out in
         Schedule 1 (Conditions precedent documents) in form and substance
         satisfactory to the Lender. The Lender must give this notification as
         soon as reasonably practicable.

4.2      FURTHER CONDITIONS PRECEDENT

         The obligations of the Lender to participate in any Loan are subject to
         the further conditions precedent that on both the date of the Request
         and the Utilisation Date for that Loan:

         (a)      the representations are correct in all material respects; and

         (b)      no Default or, in the case of a Rollover Loan, no Event of
                  Default is outstanding or would result from the Loan.

5.       UTILISATION

5.1      GIVING OF REQUESTS

(a)      The Company may borrow a Loan by giving to the Lender a duly completed
         Request and provided that the first Request is (i) sufficient in amount
         to repay all outstanding loans under the Existing Facility and (ii)
         accompanied with a written authority authorising the Lender to repay
         and cancel the Existing Facility in full.

<PAGE>
                                       10

(b)      Unless the Lender otherwise agrees, the latest time for receipt by the
         Lender of a duly completed Request is 11.00 a.m. on the Rate Fixing Day
         for the proposed borrowing.

(c)      Each Request is irrevocable.

5.2      COMPLETION OF REQUESTS

         A Request will not be regarded as having been duly completed unless:

         (a)      the Utilisation Date is a Business Day falling within the
                  Availability Period; and

         (b)      the proposed currency, amount and Term comply with this
                  Agreement.

         Only one Loan may be requested in a Request.

5.3      AMOUNT OF LOAN

(a)      Except as provided below, the amount of the Loan must be a minimum of
         Pound Sterling250,000 and an integral multiple of Pound
         Sterling250,000.

(b)      The amount of the Loan may also be the balance of the undrawn
         Commitment or such other amount as the Lender may agree.

5.4      ADVANCE OF LOAN

(a)      The Lender is not obliged to participate in a Loan if, as a result, the
         Loans would exceed the Commitment applicable to the relevant Tranche.

(b)      If the conditions set out in this Agreement have been met, the Lender
         must make the Loan available to the Company on the Utilisation Date.

6.       REPAYMENT

(a)      The Company must repay each Loan made to it in full on its Maturity
         Date.

(b)      Subject to the other terms of this Agreement, any amounts repaid under
         paragraph (a) above may be re-borrowed.

7.       REDUCTION OF TRANCHE A COMMITMENT

         The amount available under Tranche A will reduce as follows:

         With effect from 31 January 2004            by Pound Sterling2m

         With effect from 30 July 2004               by Pound Sterling2m

         With effect from 31 January 2005            by Pound Sterling2m

         With effect from 30 July 2005               by Pound Sterling2m

         With effect from 31 January 2006            by Pound Sterling2m

<PAGE>
                                       11

8.       PREPAYMENT AND CANCELLATION

8.1      MANDATORY PREPAYMENT - ILLEGALITY

(a)      The Lender must notify the Company promptly if it becomes aware that it
         is unlawful in any jurisdiction for the Lender to perform any of its
         obligations under a Finance Document or to fund or maintain any Loan.

(b)      After notification under paragraph (a) above:

         (i)      the Company must repay or prepay the Lender each Loan made to
                  it on the date specified in paragraph (c) below; and

         (ii)     the Commitment will be immediately cancelled.

(c)      The date for repayment or prepayment of a Loan will be:

         (i)      the Business Day following receipt by the Company of notice
                  from the Lender; or

         (ii)     if later, the latest date allowed by the relevant law.

8.2      MANDATORY PREPAYMENT - CHANGE OF CONTROL

(a)      The Company must promptly notify the Lender if it becomes aware of any
         person or group of persons acting in concert gaining control of the
         Company.

(b)      After notification under paragraph (a) above, the Lender may, by notice
         to the Company:

         (i)      cancel the Commitment; and

         (ii)     declare all outstanding Loans, together with accrued interest
                  and all other amounts accrued under the Finance Documents, to
                  be immediately due and payable.

         Any such notice will take effect in accordance with its terms.

(c)      In paragraph (a) above:

         "CONTROL" has the meaning given to it in section 416 of the Income and
         Corporation Taxes Act 1988; and

         "ACTING IN CONCERT" means acting together pursuant to an agreement or
         understanding (whether formal or informal)].

8.3      VOLUNTARY PREPAYMENT

(a)      Subject to clause 8.8(e) the Company may, by giving not less than five
         Business Days' prior notice to the Lender, prepay any Loan at any time
         in whole or in part.

(b)      A prepayment of part of a Loan must be in a minimum amount of Pound
         Sterling250,000 and an integral multiple of Pound Sterling250,000.

<PAGE>
                                       12

8.4      AUTOMATIC CANCELLATION

         The Commitment will be automatically cancelled at the close of business
         on the last day of the Availability Period.

8.5      VOLUNTARY CANCELLATION

(a)      Subject to Clause 8.8(e) the Company may, by giving not less than five
         Business Days' prior notice to the Lender, cancel the unutilised amount
         of the Commitment in whole or in part.

(b)      Subject to Clause 8.8(e) partial cancellation of the Commitment must be
         in a minimum amount of Pound Sterling250,000 and an integral multiple
         of Pound Sterling250,000.

8.6      INVOLUNTARY PREPAYMENT AND CANCELLATION

(a)      If the Company is, or will be, required to pay to the Lender a Tax
         Payment or an Increased Cost, the Company may, while the requirement
         continues, give notice to the Lender requesting prepayment and
         cancellation.

(b)      After notification under paragraph (a) above:

         (i)      Subject to Clause 8.8(e) the Company must repay or prepay each
                  Loan made to it on the date specified in paragraph (c) below;
                  and

         (ii)     the Commitment will be immediately cancelled.

(c)      The date for repayment or prepayment of a Loan will be the last day of
         the Term for that Loan or, if earlier, the date specified by the
         Company in its notification.

8.7      RE-BORROWING OF LOANS

         Any voluntary prepayment of a Loan may be re-borrowed on the terms of
         this Agreement. Any mandatory or involuntary prepayment of a Loan may
         not be re-borrowed.

8.8      MISCELLANEOUS PROVISIONS

(a)      Any notice of prepayment and/or cancellation under this Agreement is
         irrevocable and must specify the relevant date(s) and the affected
         Loans.

(b)      All prepayments under this Agreement must be made with accrued interest
         on the amount prepaid. No premium or penalty is payable in respect of
         any prepayment except for Break Costs.

(c)      No prepayment or cancellation is allowed except in accordance with the
         express terms of this Agreement.

(d)      No amount of the Commitment cancelled under this Agreement may
         subsequently be reinstated.

(e)      Any prepayment and/or cancellation under this Agreement shall firstly
         be applied against Tranche A until such Commitment in respect of
         Tranche A is reduced to nil and thereafter

<PAGE>
                                       13

         shall be applied against Tranche B until such Commitment in respect of
         Tranche B is reduced to nil.

9.       INTEREST

9.1      CALCULATION OF INTEREST

         The rate of interest on each Loan for each Term is the percentage rate
         per annum equal to the aggregate of the applicable:

(a)      Margin;

(b)      LIBOR; and

(c)      Mandatory Cost.

9.2      PAYMENT OF INTEREST

         Except where it is provided to the contrary in this Agreement, the
         Company must pay accrued interest on each Loan made to it on the last
         day of each Term and also, if the Term is longer than six months, on
         the dates falling at six-monthly intervals after the first day of that
         Term.

9.3      INTEREST ON OVERDUE AMOUNTS

(a)      If the Company fails to pay any amount payable by it under the Finance
         Documents, it must immediately on demand by the Lender pay interest on
         the overdue amount from its due date up to the date of actual payment,
         both before, on and after judgment.

(b)      Interest on an overdue amount is payable at a rate determined by the
         Lender to be one per cent. per annum above the rate which would have
         been payable if the overdue amount had, during the period of
         non-payment, constituted a Loan in the currency of the overdue amount.
         For this purpose, the Lender may (acting reasonably):

         (i)      select successive Terms of any duration of up to three months;
                  and

         (ii)     determine the appropriate Rate Fixing Day for that Term.

(c)      Notwithstanding paragraph (b) above, if the overdue amount is a
         principal amount of a Loan and becomes due and payable prior to the
         last day of its current Term, then:

         (i)      the first Term for that overdue amount will be the unexpired
                  portion of that Term; and

         (ii)     the rate of interest on the overdue amount for that first Term
                  will be one per cent. per annum above the rate then payable on
                  that Loan.

         After the expiry of the first Term for that overdue amount, the rate on
         the overdue amount will be calculated in accordance with paragraph (b)
         above.

(d)      Interest (if unpaid) on an overdue amount will be compounded with that
         overdue amount at the end of each of its Terms but will remain
         immediately due and payable.

<PAGE>
                                       14

9.4      NOTIFICATION OF RATES OF INTEREST

         The Lender must promptly notify the Company of the determination of a
         rate of interest under this Agreement.

10.      TERMS

10.1     SELECTION

(a)      Each Loan has one Term only.

(b)      The Company must select the Term for a Loan in the relevant Request.

(c)      Subject to the following provisions of this Clause, each Term for a
         Loan will be one, two, three or six months or any other period agreed
         by the Company and the Lender.

10.2     NO OVERRUNNING THE FINAL MATURITY DATE

         If a Term would otherwise overrun the Final Maturity Date, it will be
         shortened so that it ends on the Final Maturity Date.

10.3     NOTIFICATION

         The Lender must notify the Company of the duration of each Term
         promptly after ascertaining its duration.

11.      SECURITY

         The obligations and liabilities of the Company to the Lender under the
         Facility shall be secured by the interests and rights granted in favour
         of the Lender under the Existing Security, the Required Security and
         any additional Security Documents the Lender may require from time to
         time.

12.      MARKET DISRUPTION

12.1     MARKET DISRUPTION

(a)      If the Lender determines that adequate and fair means do not exist for
         ascertaining LIBOR for a Loan, it must promptly notify the Company.

(b)      After notification under paragraph (a) above, the rate of interest on
         the affected Loan for the relevant Term will be the aggregate of the
         applicable:

         (i)      Margin;

         (ii)     rate notified by the Lender to the Company as soon as
                  practicable to be that which expresses as a percentage rate
                  per annum the cost to the Lender of funding the Loan from
                  whatever source it may reasonably select; and

         (iii)    Mandatory Cost.

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                                       15

12.2     ALTERNATIVE BASIS

(a)      After receipt of any notification under this Clause, if the Lender or
         the Company so requires, the Company and the Lender must enter into
         negotiations for a period of not more than 30 days with a view to
         agreeing an alternative basis for determining the rate of interest
         and/or funding for the affected Loan and any future Loan.

(b)      Any alternative basis agreed will be binding on each Party.

13.      TAXES

13.1     TAX GROSS-UP

(a)      The Company must make all payments to be made by it under the Finance
         Documents without any Tax Deduction, unless a Tax Deduction is required
         by law.

(b)      If the Company is aware that the Company must make a Tax Deduction (or
         that there is a change in the rate or the basis of a Tax Deduction),
         then it must promptly notify the Lender.

(c)      If a Tax Deduction is required by law to be made by the Company, the
         amount of the payment due from the Company will be increased to an
         amount which (after making the Tax Deduction) leaves an amount equal to
         the payment which would have been due if no Tax Deduction had been
         required.

(d)      If the Company is required to make a Tax Deduction, it must make the
         minimum Tax Deduction and must make any payment required in connection
         with that Tax Deduction within the time allowed by law.

(e)      Within 30 days of making either a Tax Deduction or a payment required
         in connection with a Tax Deduction, the Company must deliver to the
         Lender evidence satisfactory to the Lender (acting reasonably) that the
         Tax Deduction has been made or (as applicable) the appropriate payment
         has been paid to the relevant taxing authority.

13.2     TAX INDEMNITY

(a)      Except as provided below, the Company must indemnify the Lender against
         any loss or liability which the Lender (in its absolute discretion)
         determines will be or has been suffered (directly or indirectly) by it
         for or on account of Tax in relation to a payment received or
         receivable (or any payment deemed to be received or receivable) under a
         Finance Document.

(b)      Paragraph (a) above does not apply to any Tax assessed on the Lender
         under the laws of the jurisdiction in which:

         (i)      the Lender is incorporated or, if different, the jurisdiction
                  (or jurisdictions) in which the Lender is treated as resident
                  for tax purposes; or

         (ii)     the Lender's Facility Office is located in respect of amounts
                  received or receivable in that jurisdiction,

         if that Tax is imposed on or calculated by reference to the net income
         received or receivable by the Lender. However, any payment deemed to be
         received or receivable, including any

<PAGE>
                                       16

         amount treated as income but not actually received by the Lender, such
         as a Tax Deduction, will not be treated as net income received or
         receivable for this purpose.

(c)      If the Lender makes, or intends to make, a claim under paragraph (a)
         above, it must promptly notify the Company of the event which will
         give, or has given, rise to the claim.

13.3     STAMP TAXES

         The Company must pay and indemnify the Lender against any stamp duty,
         registration or other similar Tax payable in connection with the entry
         into, performance or enforcement of any Finance Document.

13.4     VALUE ADDED TAXES

(a)      Any amount (including costs and expenses) payable under a Finance
         Document by the Company is exclusive of any Tax (including value added
         tax) which might be chargeable in connection with that amount. If any
         such Tax is chargeable, the Company must pay to the Lender (in addition
         to and at the same time as paying that amount) an amount equal to the
         amount of that Tax.

(b)      The obligation of the Company under paragraph (a) above will be reduced
         to the extent that the Lender is entitled to repayment or a credit in
         respect of the relevant Tax.

14.      INCREASED COSTS

14.1     INCREASED COSTS

         Except as provided below in this Clause, the Company must pay to the
         Lender the amount of any Increased Cost incurred by the Lender or any
         of its Affiliates as a result of:

         (a)      the introduction of, or any change in, or any change in the
                  interpretation or application of, any law or regulation; or

         (b)      compliance with any law or regulation,

         made after the date of this Agreement.

14.2     EXCEPTIONS

         The Company need not make any payment for an Increased Cost to the
         extent that the Increased Cost is:

         (a)      compensated for under another Clause or would have been but
                  for an exception to that Clause;

         (b)      a tax on the overall net income of the Lender or any of its
                  Affiliates; or

         (c)      attributable to the Lender or its Affiliate wilfully failing
                  to comply with any law or regulation.

<PAGE>
                                       17

14.3     CLAIMS

         The Lender must notify the Company promptly of the circumstances giving
         rise to, and the amount of, the claim.

15.      MITIGATION

15.1     MITIGATION

(a)      The Lender must, in consultation with the Company, take all reasonable
         steps to mitigate any circumstances which arise and which result or
         would result in:

         (i)      any Tax Payment or Increased Cost being payable to the Lender;
                  or

         (ii)     the Lender being able to exercise any right of prepayment
                  and/or cancellation under this Agreement by reason of any
                  illegality,

         including transferring its rights and obligations under the Finance
         Documents to an Affiliate or changing its Facility Office.

(b)      The Company must indemnify the Lender for all costs and expenses
         reasonably incurred by it as a result of any step taken by it under
         this Subclause.

(c)      The Lender is not obliged to take any step under this Subclause if, in
         its opinion (acting reasonably), to do so might be prejudicial to it.

15.2     CONDUCT OF BUSINESS BY THE LENDER

         No term of this Agreement will:

         (a)      interfere with the right of the Lender to arrange its affairs
                  (Tax or otherwise) in whatever manner it thinks fit;

         (b)      oblige the Lender to investigate or claim any credit, relief,
                  remission or repayment available to it in respect of Tax or
                  the extent, order and manner of any claim; or

         (c)      oblige the Lender to disclose any information relating to its
                  affairs (Tax or otherwise) or any computation in respect of
                  Tax.

16.      PAYMENTS

16.1     PLACE

         Unless a Finance Document specifies that payments under it are to be
         made in another manner, all payments under a Finance Document must be
         made to the relevant Party to its account at such office or bank as it
         may notify to the other Party for this purpose by not less than five
         Business Days' prior notice.

16.2     FUNDS

         Payments under the Finance Documents to the Lender must be made for
         value on the due date at such times and in such funds as the Lender may
         specify to the Company as being

<PAGE>
                                       18

         customary at the time for the settlement of transactions in the
         relevant currency in the place for payment.

16.3     CURRENCY

         Each amount payable under the Finance Documents is payable in Sterling.

16.4     NO SET-OFF OR COUNTERCLAIM

         All payments made by the Company under the Finance Documents must be
         made without set-off or counterclaim.

16.5     BUSINESS DAYS

(a)      If a payment under the Finance Documents is due on a day which is not a
         Business Day, the due date for that payment will instead be the next
         Business Day in the same calendar month (if there is one) or the
         preceding Business Day (if there is not) or whatever day the Lender
         determines is market practice.

(b)      During any extension of the due date for payment of any principal under
         this Agreement interest is payable on that principal at the rate
         payable on the original due date.

16.6     TIMING OF PAYMENTS

         If a Finance Document does not provide for when a particular payment is
         due, that payment will be due within three Business Days of demand by
         the Lender.

17.      REPRESENTATIONS

17.1     REPRESENTATIONS

         The representations set out in this Clause are made by the Company to
         the Lender.

17.2     STATUS

(a)      It is a limited liability company, duly incorporated and validly
         existing under the laws of its jurisdiction of incorporation.

(b)      It and each of its Subsidiaries has the power to own its assets and
         carry on its business as it is being conducted.

17.3     POWERS AND AUTHORITY

         It has the power to enter into and perform, and has taken all necessary
         action to authorise the entry into and performance of, the Finance
         Documents to which it is or will be a party and the transactions
         contemplated by those Finance Documents.

17.4     LEGAL VALIDITY

         Each Finance Document to which it is a party is its legally binding,
         valid and enforceable obligation.

<PAGE>
                                       19

17.5     NON-CONFLICT

         The entry into and performance by it of, and the transactions
         contemplated by, the Finance Documents do not conflict with:

         (a)      any law or regulation applicable to it;

         (b)      its or any of its Subsidiaries' constitutional documents; or

         (c)      any document which is binding upon it or any of its
                  Subsidiaries or any of its or its Subsidiaries' assets.

17.6     NO DEFAULT

(a)      No Event of Default is outstanding or will result from the execution
         of, or the performance of any transaction contemplated by, any Finance
         Document; and

(b)      no other event is outstanding which constitutes a default under any
         document which is binding on it or any of its Subsidiaries or any of
         its or its Subsidiaries' assets to an extent or in a manner which is
         reasonably likely to have a Material Adverse Effect.

17.7     AUTHORISATIONS

         Except for registration of any Security Document under the Companies
         Act 1985 and the Land Registration Acts 1925-1986, all authorisations
         required by it in connection with the entry into, performance, validity
         and enforceability of, and the transactions contemplated by, the
         Finance Documents have been obtained or effected (as appropriate) and
         are in full force and effect.

17.8     FINANCIAL STATEMENTS

         Its audited consolidated financial statements most recently delivered
         to the Lender (which, at the date of this Agreement, are the Original
         Financial Statements):

         (a)      have been prepared in accordance with accounting principles
                  and practices generally accepted in its jurisdiction of
                  incorporation, consistently applied; and

         (b)      fairly represent its consolidated financial condition as at
                  the date to which they were drawn up,

         except, in each case, as disclosed to the contrary in those financial
         statements.

17.9     NO MATERIAL ADVERSE CHANGE

         In the case of the Company only, as at the date of this Agreement,
         there has been no material adverse change in the consolidated financial
         condition of the Company since the date to which the Original Financial
         Statements were drawn up.

17.10    LITIGATION

         No litigation, arbitration or administrative proceedings are current
         or, to its knowledge, pending or threatened.

<PAGE>
                                       20

17.11    INFORMATION

(a)      All information supplied by it to the Lender in connection with the
         Finance Documents is true and accurate in all material respects as at
         its date or (if appropriate) as at the date (if any) at which it is
         stated to be given; and

(b)      it has not omitted to supply any information which, if disclosed, might
         make the information supplied untrue or misleading in any material
         respect.

17.12    TIMES FOR MAKING REPRESENTATIONS

(a)      The representations set out in this Clause are made by the Company on
         the date of this Agreement.

(b)      Each representation is deemed to be repeated by the Company on the date
         of each Request and the first day of each Term.

(c)      When a representation is repeated, it is applied to the circumstances
         existing at the time of repetition.

18.      INFORMATION COVENANTS

18.1     FINANCIAL STATEMENTS

(a)      The Company must supply or procure such supply (as the case may be) to
         the Lender:

         (i)      the audited consolidated financial statements of the Parent
                  for each of its financial years;

         (ii)     its management financial statements for the three months
                  period of each of its financial years; and

         (iii)    its management financial statements for each month of its
                  financial years.

(b)      All financial statements must be supplied as soon as they are available
         and:

         (i)      in the case of the Parent's audited consolidated financial
                  statements, within 120 days; and

         (ii)     in the case of the Company's management financial statements,
                  within 30 days.

         of the end of the relevant financial period.

18.2     COMPLIANCE CERTIFICATE

(a)      A "COMPLIANCE CERTIFICATE" is a certificate in a form and substance
         satisfactory to the Lender setting out, among other things,
         calculations of the financial covenants.

(b)      The Company must procure that the Parent supplies to the Lender a
         Compliance Certificate with each set of its financial statements sent
         to the Lender in accordance with Clause 18.1 (a)(i) and (ii).

<PAGE>
                                       21

(c)      A Compliance Certificate must be signed by two authorised signatories
         of the Parent and, in the case of a Compliance Certificate supplied
         with its annual audited consolidated financial statements, its
         auditors.

18.3     FORM OF FINANCIAL STATEMENTS

(a)      The Company must ensure that each set of financial statements supplied
         under this Agreement gives (if audited) a true and fair view of, or (if
         unaudited) fairly represents, the financial condition (consolidated or
         otherwise) of the Group as at the date to which those financial
         statements were drawn up.

(b)      The Company must notify or procure that the Parent notifies the Lender
         of any change to the basis on which its audited consolidated financial
         statements are prepared.

(c)      If requested by the Lender, the Company must supply to the Lender:

         (i)      a full description of any change notified under paragraph (b)
                  above; and

         (ii)     sufficient information to enable it to make a proper
                  comparison between the financial position shown by the set of
                  financial statements prepared on the changed basis and its
                  most recent audited consolidated financial statements
                  delivered to Lender under this Agreement.

(d)      If requested by the Lender, the Company must enter into discussions for
         a period of not more than 30 days with a view to agreeing any
         amendments required to be made to this Agreement to place the Company
         and the Lender in the same position as they would have been in if the
         change had not happened.

18.4     INFORMATION - MISCELLANEOUS

         The Company must supply to the Lender:

         (a)      copies of all documents despatched by the Company to its
                  shareholders (or any class of them) or its creditors generally
                  at the same time as they are despatched;

         (b)      promptly upon becoming aware of them, details of any
                  litigation, arbitration or administrative proceedings which
                  are current, threatened or pending and which might, if
                  adversely determined, have a Material Adverse Effect;

         (c)      promptly on request, such further information regarding the
                  financial condition and operations of the Group as the Lender
                  may reasonably request.

         (d)      promptly on request, annual budgets and projections for the
                  Group in a format acceptable to the Lender including forward
                  testing of the Financial Covenants set out in Clause 19.

18.5     NOTIFICATION OF DEFAULT

(a)      The Company must notify the Lender of any Default (and the steps, if
         any, being taken to remedy it) promptly upon becoming aware of its
         occurrence.
<PAGE>
                                       22

(b)      Promptly on request by the Lender, the Company must supply to the
         Lender a certificate, signed by two of its authorised signatories on
         its behalf, certifying that no Default is outstanding or, if a Default
         is outstanding, specifying the Default and the steps, if any, being
         taken to remedy it.

18.6     YEAR END

         The Company must not change its financial year end with the prior
         written consent of the Lender such consent not to be unreasonably
         withheld.

19.      FINANCIAL COVENANTS

19.1     DEFINITIONS

         In this Clause:

         "CAPITAL EXPENDITURE"

         means for a Measurement Period any amount paid to acquire tangible
         fixed assets where such expenditure is capitalised on the balance sheet
         of the Group excluding:-

         (a)      rental payments in respect of finance leases;

         (b)      fixed assets acquired through the acquisition of a business;
                  and

         (c)      maintenance payments which are charged to the profit and loss
                  account.

         "NET CAPITAL EXPENDITURE"

         means Capital Expenditure less asset disposal proceeds (including for
         the avoidance of doubt proceeds from any sale and lease back).

         "CONSOLIDATED EBITA"

         means the profit/loss of the Group on ordinary activities before tax
         and after exceptional items for a Measurement Period but after adding
         back:-

         (a)      Consolidated Interest Payable (net of capitalised interest and
                  dividends on redeemable shares);

         (b)      interest payable by associates and joint ventures;

         (c)      the Group's share of operating losses arising in associates
                  and joint ventures;

         (d)      amortisation of goodwill and intangibles;

         (e)      exceptional losses charged below operating profit;

         (f)      the Group's share of exceptional losses arising in associates
                  and joint ventures not already included in above,

<PAGE>
                                       23

         (g)      interest on any such obligations in respect of any loan to the
                  Parent or any other member of the Group which is subordinated
                  to amounts owing under the Facility;

         and after deducting:-

         (h)      interest receivable and other similar income;

         (i)      income from fixed asset investments;

         (j)      interest receivable by associates and joint ventures;

         (k)      the Group's share of operating profits arising in associates
                  and joint ventures;

         (l)      exceptional gains credited below operating profit; and

         (m)      the Group's share of exceptional gains arising in associates
                  and joint ventures not already included above;

         "CONSOLIDATED EBITDA"

         means, for a Measurement Period, Consolidated EBITA but after adding
         back depreciation.

         "CONSOLIDATED EBITAR"

         means EBITA plus Rental Paid less rental received,

         "CONSOLIDATED GROSS BORROWINGS"

         means at any time the aggregate of all obligations of the Group for the
         repayment of money, whether present or future, actual or contingent
         incurred in respect of:-

         (a)      money borrowed from all sources;

         (b)      any bonds, notes, loan stock, debentures or similar
                  instruments;

         (c)      acceptance credits, bills of exchange or documentary credits;

         (d)      shares issued on the basis that they are or may become
                  redeemable (at redemption value);

         (e)      gross obligations under finance leases;

         (f)      the factoring of debts;

         (g)      guarantees, indemnities or other assurances against financial
                  loss; and

         (h)      amounts raised or obligations incurred in respect of any other
                  transaction which has the commercial effect of borrowing.

         but excluding:

<PAGE>
                                       24

         (i)      any such obligations between Members of the Group;

         (ii)     any such obligations in respect of any loan to the Parent or
                  any other Member of the Group which is subordinated to amounts
                  owing under the Facility; and

         (iii)    any such obligations in respect of Stocking Finance.

         "CONSOLIDATED INTEREST AND RENTAL PAYABLE"

         means, for a Measurement Period, Consolidated Interest Payable plus
         Rental Paid and due to be paid by the Group during a Measurement
         Period.

         "CONSOLIDATED NET BORROWINGS"

         means at any time Consolidated Gross Borrowings less consolidated cash
         at bank and in hand.

<PAGE>
                                       25

         "CONSOLIDATED INTEREST PAYABLE"

         means the aggregate of all interest, commission, fees and charges paid
         and due to be paid by the Group in respect of its Consolidated Gross
         Borrowings during a Measurement Period.

         "CONSOLIDATED NET INTEREST PAYABLE"

         means Consolidated Interest Payable less the aggregate of consolidated
         interest received by the Group on cash at bank and in hand.

         "CONSOLIDATED NET WORTH"

         means Consolidated Shareholder's Funds plus the amount outstanding of
         any loan to the Parent or any other Member of the Group other than from
         a Member of the Group which is subordinated to amounts owing under the
         Facility.

         "CONSOLIDATED SHAREHOLDER'S FUNDS"

         means at any time the aggregate of:

         (a)      the amount paid up or credited as paid up on the issued share
                  capital of the Parent; and

         (b)      the amount standing to the credit of the consolidated capital
                  and revenue reserves of the Group;

         based on the latest published audited consolidated balance sheet of the
         Company (the "LATEST BALANCE SHEET") but adjusted by:

         (i)      adding any amount standing to the credit of the profit and
                  loss account of the Group for the period ending on the date of
                  the latest balance sheet to the extent not included in
                  sub-paragraph (b) above;

         (ii)     deducting any dividend or other distribution declared,
                  recommended or made by any Member of the Group, other than to
                  another Member of the Group;

         (iii)    deducting any amount standing to the debit of the profit and
                  loss account of the Group for the period ending on the date of
                  the latest balance sheet;

         (iv)     reflecting any variation in the amount of the issued share
                  capital of the Parent and the consolidated capital and revenue
                  reserves of the Group after the date of the latest balance
                  sheet;

         (v)      reflecting any variation in the interest of the Parent in any
                  other Member of the Group since the date of the latest balance
                  sheet;

         (vi)     excluding any amount attributable to deferred taxation;

         (vii)    excluding any amount attributable to minority interests;

<PAGE>
                                       26

         (viii)   adding back the amount of any goodwill or other intangible
                  asset that has been amortised through the consolidated profit
                  and loss account of the Parent since the date of the Original
                  Financial Statements; and

         (ix)     including for the avoidance of doubt any amount attributable
                  to goodwill or any other intangible asset.

         "DIVIDENDS"

         means for a Measurement Period all dividends on the Parents's:-

         (a)      ordinary share capital; and

         (b)      preference share capital (other than redeemable preference
                  shares).

         "MEASUREMENT PERIOD"

         means a period of 12 months ending on the last day of a financial
         quarter of the Parent.

         "RENTAL PAID"

         means rental paid on operating leases with an expiry date in excess of
         5 years at the date of measurement.

         "STOCKING INTEREST"

         means interest charged on funding provided for vehicle stock,
         comprising used demonstrators and consignment vehicles.

19.2     INTERPRETATION

         (a)      Except as provided to the contrary in this Agreement, an
                  accounting term used in this Clause is to be construed in
                  accordance with the principles applied in connection with the
                  Original Financial Statements.

         (b)      No item must be credited or deducted more than once in any
                  calculation under this Clause.

19.3     CONSOLIDATED NET WORTH

         The Company must ensure that Consolidated Net Worth is not, at any time
         during the period set out in Column 1 below, less than the amount set
         out in Column 2 below opposite such period:

<TABLE>
<CAPTION>

             COLUMN 1                                                  COLUMN 2
             --------                                                  --------
<S>                                                                  <C>
From 31 December 2002 to 30 December 2003                        Pound Sterling97,500,000

31 December 2003 to 29 June 2005                                 Pound Sterling107,000,000

Thereafter                                                       Pound Sterling120,000,000

</TABLE>

<PAGE>
                                       27

19.4     GEARING

         The Company must ensure that Consolidated Net Borrowings do not, at any
         time during the period set out in Column 1 below, exceed the percentage
         of Consolidated Shareholder's Funds set out in Column 2 below opposite
         such period:

<TABLE>
<CAPTION>

               COLUMN 1                                                           COLUMN 2
               --------                                                           --------
<S>                                                                              <C>
From 31 December 2002 to 30 March 2003                                              60%

From 31 March 2003 to 29 September 2003                                             70%

From 30 September 2003 to 30 December 2003                                          85%

From 31 December 2003 to 29 June 2004                                               80%

From 30 June 2004 to 30 December 2004                                               70%

31 December 2004 to 30 March 2005                                                   65%

Thereafter                                                                          50%

</TABLE>

19.5     INTEREST COVER

         The Company must ensure that the ratio of Consolidated EBITA to
         Consolidated Net Interest Payable is not, at the end of each
         Measurement Period, less than 3.4:1 to the period ending 30 March 2004
         and then 3.65:1 thereafter.

19.7     CAPITAL EXPENDITURE

         The Company must ensure that at the end of each Measurement Period set
         out in Column 1 below Net Capital Expenditure for that Measurement
         Period does not exceed the figure set out in Column 2 below opposite
         such period: (excluding Capital Expenditure funded by UAG International
         Holdings Inc mentioned below)

<TABLE>
<CAPTION>

            COLUMN 1                                               COLUMN 2
            --------                                               --------
<S>                                                      <C>
31 March 2003 until 29 September 2003                      Pound Sterling15,000,000

30 September 2003 until 30 March 2004                      Pound Sterling25,000,000

31 March 2004 until 29 June 2004                           Pound Sterling20,000,000

</TABLE>

<PAGE>
                                       28

<TABLE>
<CAPTION>

            COLUMN 1                                               COLUMN 2
            --------                                               --------
<S>                                                      <C>
30 June 2004 until 29 September 2004                       15,000,000

Thereafter                                                 Pound Sterling11,000,000

</TABLE>

         For each Measurement Period until that ending on 30 March 2004 the
         Company may incur additional Capital Expenditure of Pound
         Sterling10,000,000 provided that and to the extent that either:

         (a)      UAG International Holdings Inc has granted loans to the Parent
                  in excess of Pound Sterling37,000,000; or

         (b)      UAG International Holdings Inc grants to the Company a loan or
                  loans.

19.8     CONSOLIDATED NET BORROWINGS TO CONSOLIDATED EBITDA LESS STOCKING
         INTEREST

         The Company must ensure that the ratio of Consolidated Net Borrowings
         to Consolidated EBITDA less Stocking Interest does not, for each
         Measurement Period ending on the date set out in Column 1 below exceed
         the ratio set out in Column 2 below opposite such period:

<TABLE>
<CAPTION>

                        COLUMN 1                                                  COLUMN 2
                        --------                                                  --------

<S>                                                                             <C>
                      31 March 2003                                                2.0:1

                      30 June 2003                                                 2.0:1

                    30 September 2003                                              2.25:1

                    31 December 2003                                               2.0:1

                      31 March 2004                                                2.0:1

                      30 June 2004                                                 1.6:1

                    30 September 2004                                              1.6:1

                    31 December 2004                                               1.5:1

                       Thereafter                                                  1.5:1

</TABLE>

19.9     FIXED CHARGE

         The Company must ensure that the ratio of Consolidated EBITAR to
         Consolidated Net Interest and Rental Payable is not, at the end of each
         Measurement Period less than 1.95:1 to the period ending 30 March 2004,
         thereafter 2.05:1.

<PAGE>
                                       29

20.      GENERAL COVENANTS

20.1     GENERAL

         The Company agrees to be bound by the covenants set out in this Clause
         relating to it and, where the covenant is expressed to apply to each
         Member of the Group, the Company must ensure that each of its
         Subsidiaries performs that covenant.

20.2     AUTHORISATIONS

         The Company must promptly obtain, maintain and comply with the terms of
         any authorisation required under any law or regulation to enable it to
         perform its obligations under, or for the validity or enforceability
         of, any Finance Document.

20.3     COMPLIANCE WITH LAWS

         Each Member of the Group must comply in all respects with all laws to
         which it is subject where failure to do so is reasonably likely to have
         a Material Adverse Effect.

20.4     PARI PASSU RANKING

         The Company must ensure that its payment obligations under the Finance
         Documents rank at least pari passu with all its other present and
         future unsecured payment obligations, except for obligations
         mandatorily preferred by law applying to companies generally.

20.5     NEGATIVE PLEDGE

(a)      Except as provided below the Company shall not and shall procure that
         no Subsidiary shall create or allow to exist any Security Interest on
         any of its assets.

(b)      Paragraph (a) does not apply to:

         (i)      any Security Interest created under any Finance Document;

         (ii)     any right of set-off or lien, in each case arising by
                  operation of law;

         (iii)    any retention of title to goods supplied to a Member of the
                  Group in the ordinary course of its trading activities;

         (iv)     any right of set-off over credit balances on bank accounts of
                  any Member of the Group created in order to facilitate the
                  operation of those bank accounts and other bank accounts of
                  other Members of the Group arising in the ordinary course of
                  the banking arrangements of the Group;

         (v)      any agreement entered into by a Member of the Group in the
                  ordinary course of its trading activities to sell or otherwise
                  dispose of any asset on terms whereby that asset is or may be
                  leased to or re-acquired or acquired by any Member of the
                  Group;

         (vi)     any Security Interest over an asset of a company which becomes
                  a Subsidiary of the Company (other than by reason of its
                  incorporation) after the date of this Agreement, being an
                  Security Interest which is in existence at the time at which
                  that company

<PAGE>
                                       30

                  becomes such a Subsidiary but only if (i) that Security
                  Interest was not created in contemplation of that company
                  becoming such a Subsidiary, (ii) the principal amount secured
                  by that Security Interest has not been and shall not be
                  increased and (iii) that Security Interest is discharged
                  within 6 months of the date on which that company became such
                  a Subsidiary;

         (vii)    any Security Interest over an asset acquired by a Member of
                  the Group after the date of this Agreement and subject to
                  which that asset is acquired but only if (i) that Security
                  Interest was not created in contemplation of its acquisition
                  by that company, (ii) the amount secured by that Security
                  Interest has not been increased in contemplation of, or since
                  the date of, its acquisition by that company and (iii) that
                  the Security Interest is discharged within 6 months of the
                  date of its acquisition by that company; and

         (viii)   any Security Interest notified to the Lender in writing prior
                  to the date of this Agreement except to the extent the
                  principal amount secured by that Security Interest exceeds the
                  amount stated in that notification.

20.6     DISPOSALS

(a)      Except as provided below, no Member of the Group may, either in a
         single transaction or in a series of transactions and whether related
         or not, dispose of all or any part of its assets.

(b)      Paragraph (a) does not apply to any disposal:

         (i)      in the ordinary course of its trading activities;

         (ii)     where the proceeds of the disposal are used within 3 months of
                  that disposal for the purchase of an asset to replace directly
                  the asset which was the subject of that disposal (including
                  for the avoidance of doubt any sale and leaseback of such
                  asset) disposed;

         (iii)    a disposal of an asset which is obsolete for the purpose for
                  which such an asset is normally utilised; or

         (iv)     where the net proceeds of any disposal are used to reduce or
                  repay the Facility;

         (v)      a disposal with the prior written consent of the Lender; and

         (vi)     a disposal on arm's length terms where the aggregate value of
                  the assets the subject of a disposal by a Member of the Group
                  other than in accordance with paragraphs (i) to (iii) above in
                  any Financial Year of the Company does not exceed Pound
                  Sterling250,000 (for the purposes of this paragraph, the value
                  of any asset shall be the greater of its book value and the
                  consideration received for it).

20.7     FINANCIAL INDEBTEDNESS

(a)      Except as provided below, no Member of the Group may incur any
         Financial Indebtedness.

(b)      Paragraph (a) does not apply to:

<PAGE>
                                       31

         (i)      Financial Indebtedness owed to the Lender including, without
                  limitation, Financial Indebtedness under any Finance Document;

         (ii)     Financial Indebtedness existing at the date of this Agreement
                  between Members of the Group;

         (iii)    any Financial Indebtedness of any person acquired by a Member
                  of the Group which is incurred under arrangements in existence
                  at the date of acquisition, but only for a period of 6 months
                  from the date of acquisition; or any derivative transaction
                  protecting against or benefiting from fluctuations in any rate
                  or price entered into in the ordinary course of business; and

         (iv)     Financial Indebtedness existing at the date of this Agreement
                  and notified to the Lender in writing prior to the date of
                  this Agreement;

20.8     CHANGE OF BUSINESS

         The Company must ensure that no substantial change is made to the
         general nature of the business of the Company or the Group from that
         carried on at the date of this Agreement.

20.9     MERGERS

         The Company may not enter into any amalgamation, demerger, merger or
         reconstruction otherwise than under an intra-Group re-organisation on a
         solvent basis or other transaction agreed by the Lender.

20.10    ACQUISITIONS

(a)      Except as provided below, the Company may not and none of its
         Subsidiaries may make any acquisition or investment.

(b)      Paragraph (a) does not apply to :

         (i)      acquisitions or investments made in the ordinary course of
                  trade;

         (ii)     acquisitions or investments up to an amount of Pound
                  Sterling5,000,000 (including any Capital Expenditure covered
                  by a loan granted by UAG International Holdings Inc under
                  Clause 19.7); and

         (iii)    acquisitions or investments with the prior consent of the
                  Lender such consent not to be unreasonably withheld or
                  delayed. Any request for consent to include projections
                  including forward testing of the Financial Covenants set out
                  in Clause 19.

(c)      If an acquisition is made pursuant to paragraph (b) above, the Company
         shall procure that promptly on such acquisition:

                  (A)      if the acquisition is of a business, the business and
                           assets of the business become subject to an existing
                           Security Document; or

                  (B)      if the acquisition is of shares comprising more than
                           50 per cent. of the issued share capital of a
                           company, subject to any legal prohibition

<PAGE>
                                       32

                           or limitation on the giving of any such guarantee and
                           debenture (or its equivalent under relevant law),
                           that company executes a guarantee and a debenture,
                           being in each case a Security Document, (or the
                           equivalent documents (in a form approved by the
                           Lender) under the laws of the jurisdiction of that
                           company's incorporation) and delivers the same to the
                           Lender together with, in the latter case, a legal
                           opinion (in a form and content satisfactory to the
                           Lender) from lawyers appointed by the Lender;

(d)      In the event that a Member of the Group makes any share acquisition
         then the Company shall procure that United Auto Group UK Limited
         executes a guarantee and a debenture, being in each case a Security
         Document, in form and substance satisfactory to the Lender and that
         United Auto Group UK Limited complies in all respects with sections 151
         to 158 inclusive of the Companies Act 1985.

20.11    LOANS

(a)      Except as provided below, the Company may not and none of its
         Subsidiaries may make any loan or grant credit to or for the benefit of
         any person.

(b)      Paragraph (a) does not apply to:

         (i)      amounts of credit allowed by any Member of the Group in the
                  normal course of its trading activities;

         (ii)     loans made by any Member of the Group to another Member of the
                  Group; or

         (iii)    loans made by a Member of the Group to its employees where
                  such loans do not, when aggregated with all such loans made by
                  all Members of the Group, exceed Pound Sterling300,000 at any
                  time.

20.12    DIVIDENDS

         The Company may not make, pay or declare any dividend in respect of its
         financial year ended 31 December 2002. Dividends in respect of any
         future financial years may not be made without the prior consent of the
         Lender (not to be unreasonably withheld or delayed if the Financial
         Covenants set out in Clause 19 of this Agreement have been complied
         with).

20.13    MATERIAL SUBSIDIARIES

         The Company procures that any Member of the Group that becomes a
         Material Subsidiary shall within 30 days of becoming a Material
         Subsidiary execute, subject to, and to the extent permitted under, all
         applicable laws, any additional Security Documents the Lender may
         require, in a form and content satisfactory to the Lender.

20.14    INSURANCE

         Each Member of the Group must insure its business and assets with
         insurance companies to such an extent and against such risks as
         companies engaged in a similar business normally insure.

<PAGE>
                                       33

20.15    UAG INTERNATIONAL HOLDINGS INC LOAN

         The Parent may not without the prior written consent of the Lender
         (such consent not to be unreasonably withheld or delayed if the
         Financial Covenants set out in Clause 19 of this Agreement have been
         complied with), repay any loan granted to it by UAG International
         Holdings Inc. (including any loan granted under Clause 19.7) unless all
         amounts due under the Facility have been repaid and the Facility has
         been cancelled.

20.16    COMPLIANCE WITH SECTION 151 OF THE COMPANIES ACT 1985

         Each Member of the Group shall comply in all respects with sections 151
         to 158 inclusive of the Companies Act 1985, including in relation to
         the execution of the Security Documents and the payment of amounts due
         under this Agreement.

20.17    RELEASE OR INVESTIGATION OF SECURITY INTERESTS

         The Company shall:

         (a)      procure that deeds of release and/or Forms 403a are provided
                  to the Lender within 60 days of the date of this Agreement in
                  respect of the Security Interests listed in Part A of Schedule
                  5; and

         (b)      investigate the Security Interests listed in Part B of
                  Schedule 5 and report to the Lender within 60 days of the date
                  of this Agreement and following such report within a further
                  30 days the Company shall procure that either:

                  (aa)     the Security Interests are released and Form 403a's
                           are provided to the Lender; or

                  (bb)     deeds of priority in a form and substance
                           satisfactory to the Lender are entered into between
                           the beneficiary of the relevant Security Interest,
                           the Company, the Lender and any other relevant party.

21.      DEFAULT

21.1     EVENTS OF DEFAULT

Each of the events set out in this Clause is an Event of Default.

21.2     NON-PAYMENT

         The Company does not pay on the due date any amount payable by it under
         the Finance Documents in the manner required under the Finance
         Documents, unless the non-payment:

         (a)      is caused by technical or administrative error; and

         (b)      is remedied within three Business Days of the due date.

<PAGE>
                                       34

21.3     BREACH OF OTHER OBLIGATIONS

         (a)      The Company does not comply with any term of Clause 18
                  (General covenants) or Clause 16 (Financial covenants); or the
                  Company does not comply with any other term of the Finance
                  Documents not already referred to in this Clause.

21.4     MISREPRESENTATION

         A representation made or repeated by the Company in any Finance
         Document or in any document delivered by or on behalf of the Company
         under any Finance Document is incorrect in any material respect when
         made or deemed to be repeated.

21.5     CROSS-DEFAULT

         Any of the following occurs in respect of the Company or any of its
         Subsidiaries:

         (a)      any of its Financial Indebtedness is not paid when due (after
                  the expiry of any originally applicable grace period);

         (b)      any of its Financial Indebtedness:

                  (i)      becomes prematurely due and payable;

                  (ii)     is placed on demand; or

         (c)      is capable of being declared by a creditor to be prematurely
                  due and payable or being placed on demand,

         in each case, as a result of an event of default (howsoever described);
         or

         (d)      any commitment for its Financial Indebtedness is cancelled or
                  suspended as a result of an event of default (howsoever
                  described),

         unless the aggregate amount of Financial Indebtedness falling within
         paragraphs (a)-(c) above is less than Pound Sterling250,000 or its
         equivalent.

21.6     INSOLVENCY

         Any of the following occurs in respect of a Member of the Group:

         (a)      it is, or is deemed for the purposes of any law to be, unable
                  to pay its debts as they fall due or insolvent;

         (b)      it admits its inability to pay its debts as they fall due;

         (c)      it suspends making payments on any of its debts or announces
                  an intention to do so;

         (d)      by reason of actual or anticipated financial difficulties, it
                  begins negotiations with any creditor for the rescheduling of
                  any of its indebtedness; or

         (e)      a moratorium is declared in respect of any of its
                  indebtedness.

<PAGE>
                                       35

21.7     INSOLVENCY PROCEEDINGS

         (a)      Except as provided below, any of the following occurs in
                  respect of a Member of the Group:

                  (i)      any step is taken with a view to a composition,
                           assignment or similar arrangement with any of its
                           creditors;

                  (ii)     a meeting of it is convened for the purpose of
                           considering any resolution for (or to petition for)
                           its winding-up, administration or dissolution or any
                           such resolution is passed;

                  (iii)    any person presents a petition for its winding-up,
                           administration or dissolution;

                  (iv)     an order for its winding-up, administration or
                           dissolution is made;

                  (v)      any liquidator, trustee in bankruptcy, judicial
                           custodian, compulsory manager, receiver,
                           administrative receiver, administrator or similar
                           officer is appointed in respect of it or any of its
                           assets;

                  (vi)     its directors or other officers request the
                           appointment of a liquidator, trustee in bankruptcy,
                           judicial custodian, compulsory manager, receiver,
                           administrative receiver, administrator or similar
                           officer; or

                  (vii)    any other analogous step or procedure is taken in any
                           jurisdiction.

21.8     CREDITORS' PROCESS

         Any attachment, sequestration, distress, execution or analogous event
         affects any asset(s) of a Member of the Group having a value of at
         least Pound Sterling150,000 and such process is not discharged within
         14 days.

21.9     CESSATION OF BUSINESS

         A Member of the Group ceases, or threatens to cease, to carry on
         business except:

         (a)      as a result of any disposal allowed under this Agreement.

21.10    EFFECTIVENESS OF FINANCE DOCUMENTS

         (a)      It is or becomes unlawful for the Company or any other Member
                  of the Group to perform any of its obligations under the
                  Finance Documents.

         (b)      Any Finance Document is not effective or is alleged by the
                  Company or any other Member of the Group to be ineffective for
                  any reason.

         (c)      The Company or any other Member of the Group repudiates a
                  Finance Document or evidences an intention to repudiate a
                  Finance Document.

21.11    FRANCHISE AGREEMENTS

<PAGE>
                                       36

         A breach occurs under any a Material Franchising Agreement which has a
         Material Adverse Effect.

21.12    MATERIAL ADVERSE CHANGE

         Any event or series of events occurs which, in the opinion of the
         Lender, would have a Material Adverse Effect.

21.13    ACCELERATION

         If an Event of Default is outstanding, the Lender may, by notice to the
         Company:

         (a)      cancel the Commitment; and/or

         (b)      declare that all or part of any amounts outstanding under the
                  Finance Documents are:

                  (i)      immediately due and payable; and/or

                  (ii)     payable on demand by the Lender.

         Any notice given under this Subclause will take effect in accordance
         with its terms.

22.      EVIDENCE AND CALCULATIONS

22.1     ACCOUNTS

         Accounts maintained by the Lender in connection with this Agreement are
         prima facie evidence of the matters to which they relate for the
         purpose of any litigation or arbitration proceedings.

22.2     CERTIFICATES AND DETERMINATIONS

         Any certification or determination by the Lender of a rate or amount
         under the Finance Documents will be, in the absence of manifest error,
         conclusive evidence of the matters to which it relates.

22.3     CALCULATIONS

         Any interest or fee accruing under this Agreement accrues from day to
         day and is calculated on the basis of the actual number of days elapsed
         and a year of 360 or 365 days or otherwise, depending on what the
         Lender determines is market practice.

23.      FEES

23.1     FRONT-END FEE

         The Company must pay to the Lender on the date of this Agreement a
         front-end fee of Pound Sterling270,000.00.

<PAGE>
                                       37

23.2     COMMITMENT FEE

         (a)      The Company must pay to the Lender a commitment fee computed
                  at the rate of 0.35 per cent. per annum on the undrawn,
                  uncancelled amount of the Commitment.

         (b)      Accrued commitment fee is payable quarterly in arrear. Accrued
                  commitment fee is also payable to the Lender on the date that
                  the Commitment is cancelled in full.

24.      INDEMNITIES AND BREAK COSTS

24.1     INDEMNITIES

         (a)      The Company must indemnify the Lender against any loss or
                  liability which the Lender incurs as a consequence of:

                  (i)      the occurrence of any Event of Default;

                  (ii)     any failure by the Company to pay any amount due
                           under a Finance Document on its due date;

                  (iii)    (other than by reason of negligence or default by the
                           Lender) a Loan not being made after a Request has
                           been delivered for that Loan;

                  (iv)     a Loan (or part of a Loan) not being prepaid in
                           accordance with a notice of prepayment;

                  (v)      investigating any event which the Lender reasonably
                           believes to be a Default; or

                  (vi)     acting or relying on any notice which the Lender
                           reasonably believes to be genuine, correct and
                           appropriately authorised.

         (b)      The Company's liability in each case includes any loss or
                  expense on account of funds borrowed, contracted for or
                  utilised to fund any amount payable under any Finance
                  Document, any amount repaid or prepaid or any Loan.

24.2     BREAK COSTS

         (a)      The Company must pay to the Lender its Break Costs.

         (b)      Break Costs are the amount (if any) determined by the Lender
                  by which:

                  (i)      the interest which the Lender would have received for
                           the period from the date of receipt of any part of
                           its share in a Loan or an overdue amount to the last
                           day of the applicable Term for that Loan or overdue
                           amount if the principal or overdue amount received
                           had been paid on the last day of that Term;

         exceeds

                  (ii)     the amount which the Lender would be able to obtain
                           by placing an amount equal to the amount received by
                           it on deposit with a leading bank in the appropriate

<PAGE>
                                       38

                  interbank market for a period starting on the Business Day
                  following receipt and ending on the last day of the applicable
                  Term.

         (c)      The Lender must supply to the Company details of the amount of
                  any Break Costs claimed by it under this Subclause.

25.      EXPENSES

25.1     INITIAL COSTS

         Each party to this Agreement shall be responsible for the amount of all
         costs and expenses (including legal fees) reasonably incurred by it in
         connection with the negotiation, preparation, printing and execution of
         the Finance Documents.

25.2     SUBSEQUENT COSTS

         The Company must pay to the Lender the amount of all costs and expenses
         (including legal fees) reasonably incurred by it in connection with:

         (a)      the negotiation, preparation, printing and execution of any
                  Finance Document executed after the date of this Agreement;

         (b)      any amendment, waiver or consent requested by or on behalf of
                  the Company or specifically allowed by this Agreement; and

         (c)      the taking and preparation of any additional Security Document
                  required by the Lender under this Agreement.

25.3     ENFORCEMENT COSTS

         The Company must pay to the Lender the amount of all reasonable costs
         and expenses (including legal fees) incurred by it in connection with
         the enforcement of, or the preservation of any rights under, any
         Finance Document.

26.      AMENDMENTS AND WAIVERS

26.1     CHANGE OF CURRENCY

         If a change in any currency of a country occurs (including where there
         is more than one currency or currency unit recognised at the same time
         as the lawful currency of a country), the Finance Documents will be
         amended to the extent the Lender (acting reasonably and after
         consultation with the Company) determines is necessary to reflect the
         change.

26.2     WAIVERS AND REMEDIES CUMULATIVE

         The rights of the Lender under the Finance Documents:

         (a)      may be exercised as often as necessary;

         (b)      are cumulative and not exclusive of its rights under the
                  general law; and

         (c)      may be waived only in writing and specifically.

<PAGE>
                                       39

         Delay in exercising or non-exercise of any right is not a waiver of
         that right.

27.      CHANGES TO THE PARTIES

27.1     ASSIGNMENTS AND TRANSFERS BY THE COMPANY

         The Company may not assign or transfer any of its rights and
         obligations under the Finance Documents without the prior consent of
         the Lender.

27.2     ASSIGNMENTS AND TRANSFERS BY THE LENDER

         (a)      The Lender may at any time assign or transfer (including by
                  way of novation) any of its rights and obligations under this
                  Agreement to another bank or financial institution (the "NEW
                  LENDER").

         (b)      A transfer of obligations will be effective only if the New
                  Lender confirms to the Company in form and substance
                  satisfactory to the Company that it is bound by the terms of
                  this Agreement as the Lender. On the transfer becoming
                  effective in this manner the Lender will be released from its
                  obligations under this Agreement to the extent that they are
                  transferred to the New Lender.

28.      DISCLOSURE OF INFORMATION

         (a)      The Lender must keep confidential any information supplied to
                  it by or on behalf of the Company in connection with the
                  Finance Documents. However, the Lender is entitled to disclose
                  information:

                  (i)      which is publicly available, other than as a result
                           of a breach by the Lender of this Clause;

                  (ii)     in connection with any legal or arbitration
                           proceedings;

                  (iii)    if required to do so under any law or regulation;

                  (iv)     to a governmental, banking, taxation or other
                           regulatory authority;

                  (v)      to its professional advisers;

                  (vi)     to the extent allowed under paragraph (b) below; or

                  (vii)    with the agreement of the Company.

         (b)      The Lender may disclose to an Affiliate or any person with
                  whom it may enter, or has entered into, any kind of transfer,
                  participation or other agreement in relation to this Agreement
                  (a "PARTICIPANT"):

                  (i)      a copy of any Finance Document; and

                  (ii)     any information which the Lender has acquired under
                           or in connection with any Finance Document.

<PAGE>
                                       40

         However, before a participant may receive any confidential information,
         it must agree with the Lender to keep that information confidential on
         the terms of paragraph (a) above.

         This Clause supersedes any previous confidentiality undertaking given
         by the Lender in connection with this Agreement.

29.      SET-OFF

         The Lender may set off any matured obligation owed to it by the Company
         under the Finance Documents (to the extent beneficially owned by the
         Lender) against any obligation (whether or not matured) owed by the
         Lender to the Company, regardless of the place of payment, booking
         branch or currency of either obligation. If the obligations are in
         different currencies, the Lender may convert either obligation at a
         market rate of exchange in its usual course of business for the purpose
         of the set-off.

30.      SEVERABILITY

         If a term of a Finance Document is or becomes illegal, invalid or
         unenforceable in any jurisdiction, that shall not affect:

         (a)      the legality, validity or enforceability in that jurisdiction
                  of any other term of the Finance Documents; or

         (b)      the legality, validity or enforceability in other
                  jurisdictions of that or any other term of the Finance
                  Documents.

31.      NOTICES

31.1     IN WRITING

         (a)      Any communication in connection with a Finance Document must
                  be in writing and, unless otherwise stated, may be given in
                  person, by post or fax.

         (b)      Unless it is agreed to the contrary, any consent or agreement
                  required under a Finance Document must be given in writing.

31.2     CONTACT DETAILS

         (a)      The contact details of the Company for this purpose are:

         Address:        Sytner Group Limited,
                         Woodcote House,
                         Harcourt Way,
                         Meridian Business Park,
                         Leicester
                         LE19 1WE

         Fax number:     01162 893232

         Attention:      Mark Morris

         (b)      The contact details of the Lender for this purpose are:

<PAGE>
                                       41

         Address:          Corporate & Institutional Banking,
                           2nd Floor, 79-83 Colmore Row,
                           Birmingham,
                           B3 2AP

         Fax number:       0121 236 1658

         Attention:        Andrew Baker.

         (c)      The Company or the Lender may change their contact details by
                  giving five Business Days' notice to the other Party.

         (d)      Where a Party nominates a particular department or officer to
                  receive a communication, a communication will not be effective
                  if it fails to specify that department or officer.

31.3     EFFECTIVENESS

         (a)      Except as provided below, any communication in connection with
                  a Finance Document will be deemed to be given as follows:

                  (i)      if delivered in person, at the time of delivery;

                  (ii)     if posted, five days after being deposited in the
                           post, postage prepaid, in a correctly addressed
                           envelope;

                  (iii)    if by fax, when received in legible form.

         (b)      A communication given under paragraph (a) above but received
                  on a non-working day or after business hours in the place of
                  receipt will only be deemed to be given on the next working
                  day in that place.

         (c)      A communication to the Lender will only be effective on actual
                  receipt by it.

32.      LANGUAGE

         (a)      Any notice given in connection with a Finance Document must be
                  in English.

         (b)      Any other document provided in connection with a Finance
                  Document must be:

                  (i)      in English; or

                  (ii)     (unless the Lender otherwise agrees) accompanied by a
                           certified English translation. In this case, the
                           English translation prevails unless the document is a
                           statutory or other official document.

33.      GOVERNING LAW

         This Agreement is governed by English law.

<PAGE>
                                       42

34.      ENFORCEMENT

34.1     JURISDICTION

         (a)      The English courts have exclusive jurisdiction to settle any
                  dispute in connection with any Finance Document.

         (b)      The English courts are the most appropriate and convenient
                  courts to settle any such dispute.

         (c)      This Clause is for the benefit of the Lender only. To the
                  extent allowed by law, the Lender may take:

                  (i)      proceedings in any other court; and

                  (ii)     concurrent proceedings in any number of
                           jurisdictions.

This Agreement has been entered into on the date stated at the beginning of this
Agreement.

<PAGE>
                                       43

                                   SCHEDULE 1

                         CONDITIONS PRECEDENT DOCUMENTS

COMPANY

1.       A certified copy of the certificate of incorporation (and any relative
         certificate of incorporation on change of name) of the Company and each
         of the companies detailed in Schedule 4 which is to grant a Security
         Document.

2.       A certified copy the memorandum and articles of association of the
         Company and each of the companies detailed in Schedule 4 which is to
         grant a Security Document.

3.       A copy of a resolution of the board of directors or a committee of the
         board of directors of the Company and each of the companies detailed in
         Schedule 4 which is to grant a Security Document approving the terms
         of, and the transactions contemplated by, this Agreement and/or the
         Security Documents to which they are to be a party.

4.       A specimen of the signature of each person authorised on behalf of the
         Company and each of the companies detailed in Schedule 4 which is to
         grant a Security Document to execute or witness the execution of any
         Finance Document or to sign or send any document or notice in
         connection with any Finance Document.

5.       A certificate of an authorised signatory of the Company:

         (a)      confirming that utilising the Commitment in full would not
                  breach any limit binding on it; and

         (b)      certifying that each copy document specified in this Schedule
                  is correct, complete and in full force and effect as at a date
                  no earlier than the date of this Agreement.

6.       A certified copy of a letter evidencing the loan arrangements entered
         into between UAG International Holdings Inc. and UAG UK Holdings
         Limited.

7.       Evidence that the Existing Facilities have been, or will be,
         immediately following drawdown under the Facilities, repaid and
         cancelled in full.

8.       Certified copies of special resolutions of the following companies:

                  o        the Parent amending its memorandum of association;

                  o        the Company amending its memorandum and articles of
                           association;

                  o        Ron Stratton & Co Limited amending its articles of
                           association;

                  o        W A Hatfield Limited amending its memorandum and
                           articles of association;

                  o        United Auto Group UK Limited amending its articles of
                           association;

<PAGE>
                                       44

                  o        Guy Salmon Jaguar Limited amending its articles of
                           association;

                  o        Guy Salmon Honda Limited amending its articles of
                           association;

                  o        Ron Stratton (Knutsford) Limited amending its
                           memorandum and articles of association;

                  o        Graypaul Motors Limited amending its articles of
                           association;

                  o        Sytner Sheffield Limited amending its articles of
                           association;

                  o        Sytner of Leicester Limited amending its articles of
                           association;

                  o        Hallamshire Motor Company Limited amending its
                           articles of association;

                  o        Prophets Garage Limited amending its memorandum of
                           association;

                  o        Sytner Holdings Limited amending its articles of
                           association;

                  o        Guy Salmon Highgate Limited amending its articles of
                           association;

                  o        Sandridge Limited amending its articles of
                           association;

                  o        Hughenden Motor Company Limited amending its articles
                           of association;

                  o        Sytner Limited amending its memorandum and articles
                           of association.

9.       Evidence that there are no Security Interests subsisting over any Group
         Company other than Security Interests permitted by Clause 20.5(b),
         those listed in Part A and Part B of Schedule 5 and the following:

         o        Charge over Deposit dated 7 March 2002 granted by the Parent
                  in favour of The Royal Bank of Scotland plc;

         o        Floating Charge dated 2 February 1993 granted by Prophets
                  (Gerrard Cross) Limited in favour of BMW Finance (GB) Limited;

         o        Floating Charge dated 5 March 2002 granted by United Auto
                  Group UK Limited in favour of Daimlerchrysler Services UK
                  Limited;

         o        Floating Charge dated 27 April 2002 granted by United Auto
                  Group UK Limited in favour of Daimlerchrysler Services UK
                  Limited;

         o        Deed of Assignment dated 16 March 2001 granted by Sytner
                  Chelsea Limited in favour of BMW Financial Services (GB)
                  Limited;

         o        Debenture dated 3 January 1996 granted by Goodman (Leeds)
                  Limited in favour of Volkswagen Financial Services (UK)
                  Limited;

<PAGE>
                                       45

         o        Debenture dated 10 November 1997 granted by Graypaul Motors
                  Limited in favour of Lloyds Bowmaker Limited;

         o        Debenture dated 22 Debenture 1987 granted by Sytner Sheffield
                  Limited in favour of BMW Finance (GB) Limited;

         o        Debenture dated 1 September 1993 granted by Sytner of
                  Leicester Limited in favour of BMW Finance (GB) Limited;

         o        Floating Charge dated 31 December 1996 granted by Hallamshire
                  Motor Company Limited in favour of Lombard North Central plc;

         o        Debenture dated 18 January 1988 granted by Prophets Garage
                  Limited in favour of BMW Finance (GB) Limited;

         o        Floating Charge dated 21 September 1992 granted by Prophets
                  Garage Limited in favour of BMW Finance (GB) Limited;

         o        Debenture dated 6 August 1998 granted by Sandridge Limited in
                  favour of Lloyds Bowmaker Limited;

         o        Debenture dated 14 September 1989 granted by Hughenden Motor
                  Company Limited in favour of BMW Finance (GB) Limited;

         o        Floating Charge dated 26 January 2001 granted by Hughenden
                  Motor Company Limited in favour of BMW Finance (GB) Limited;

         o        Debenture dated 11 November 1988 granted by Sytner Limited in
                  favour of BMW Finance (GB) Limited;

         o        General Charge dated 16 August 1993 granted by Sytner Limited
                  in favour of BMW Finance (GB) Limited.

SECURITY DOCUMENTS

The Security Documents listed in Schedule 4 (Required Security) each duly
executed by the parties to it together with, in each case, all documents
deliverable with them..

<PAGE>
                                       46

                                   SCHEDULE 2

                        CALCULATION OF THE MANDATORY COST

1.       GENERAL

         The Mandatory Cost is the rate for the Lender calculated below by the
         Lender on the first day of a Term in accordance with the following
         formula:

         AB + C(B - D) + E x 0.01
         ------------------------ percent. per annum
              100 - (A + C)

         where on the day of application of the formula:

         A        is the percentage of the Lender's eligible liabilities (in
                  excess of any stated minimum) which the Bank of England
                  requires it to hold on a non-interest-bearing deposit account
                  in accordance with its cash ratio requirements;

         B        is LIBOR for that Term;

         C        is the percentage of the Lender's eligible liabilities which
                  the Bank of England requires it to place as a special deposit;

         D        is the interest rate per annum allowed by the Bank of England
                  on a special deposit; and

         E        is the charge payable by the Lender to the Financial Services
                  Authority under the fees regulations (but, for this purpose,
                  ignoring any minimum fee required under the fees regulations)
                  and expressed in pounds per L1 million of the fee base of the
                  Lender.

(b)      For the purposes of this paragraph 2:

         (i)      "ELIGIBLE LIABILITIES" and "SPECIAL DEPOSIT" have the meanings
                  given to them at the time of application of the formula by the
                  Bank of England;

         (ii)     "FEE BASE" has the meaning given to it in the fees
                  regulations; and

         (iii)    "FEES REGULATIONS" means The Financial Services Banking
                  Supervision (Fees) Regulations 2000.

(c)      (i)      In the application of the formulae, A, B, C and D are included
                  as figures and not as percentages, e.g. if A = 0.5% and B =
                  15%, AB is calculated as 0.5 x 15. A negative result obtained
                  by subtracting D from B is taken as zero.

         (ii)     Each rate calculated in accordance with a formula is, if
                  necessary, rounded upward to four decimal places.

<PAGE>
                                       47

2.       CHANGES

         The Lender may, after consultation with the Company, notify the Company
         of any amendment to this Schedule which is required to reflect:

         (a)      any change in law or regulation; or

         (b)      any requirement imposed by the Bank of England, the Financial
                  Services Authority or the European Central Bank (or, in any
                  case, any successor authority).

         Any notification will be, in the absence of manifest error, conclusive
         and binding on all the Parties.

<PAGE>
                                       48

                                   SCHEDULE 3

                                EXISTING SECURITY

         First Legal Charges over the following properties:-

         (a)      Tetner Street, North Side of Hollis Croft and Broad Lane,
                  Sheffield given by Sytner Sheffield Ltd.

         (b)      Union Road, North West of Union Road and Shelton Street,
                  Nottingham, given by Sytner of Nottingham Ltd.

         (c)      Land on North West side of Marsh Road, Bristol (incorporated
                  in Mortgage Debenture) and 127 Westbury Road Bristol, given by
                  Cruickshank Motors Ltd.

         (d)      Concord Garage, The Conneries, Loughborough (incorporated in
                  Mortgage Debenture) given by Graypaul Motors Ltd.

         Second Legal Charges over the following property:-

         (e)      Freehold and Leasehold premises in Valley Road, Hughenden
                  Valley, High Wycombe, given by Hughenden Motors Ltd.

         Unlimited inter-company cross guarantee between the following
         companies:

         Sytner Group Limited
         Sytner Limited
         Sytner of Leicester Limited
         Sytner Sheffield Limited
         Hallamshire Motor Company Limited
         Cruickshank Motors Limited
         Graypaul Motors Limited
         Goodman Leeds Limited
         Hyde Car Centre Limited
         Sandridge Limited
         Sytner Finance Limited
         Guy Salmon Jaguar Limited
         Guy Salmon Honda Limited
         WA Hatfield Limited
         Sytner Holdings Limited (formerly Ixion Motor Group Limited)
         Prophets Garage Limited
         Prophets (Gerrards Cross) Limited
         Sytner Properties Limited
         Yarnolds of Stratford Limited
         Sytner Chelsea Limited
         Hughenden Motor Company Limited

         Mortgage Debentures from the following companies:

         Sytner Group Limited
         Sytner Limited

<PAGE>
                                       49

         Sytner of Leicester Limited
         Sytner Sheffield Limited
         Hallamshire Motor Company Limited
         Cruickshank Motors Limited
         Graypaul Motors Limited
         Goodman Leeds Limited
         Hyde Car Centre Limited
         Sandridge Limited
         Sytner Finance Limited
         Guy Salmon Jaguar Limited
         Guy Salmon Honda Limited
         WA Hatfield Limited
         Sytner Holdings Limited
         Prophets Garage Limited
         Prophets (Gerrards Cross) Limited
         Yarnolds of Stratford Limited
         Guy Salmon Highgate Limited
         Sytner Chelsea Limited
         Hughenden Motor Company Limited

         First fixed charge over the following:

         (a) all sums standing to the credit of the interest bearing blocked
         deposit account in the name of UAG UK Holdings Limited, sort code
         60-80-09, account number 30280486 given by UAG UK Holdings Limited

         (b) all book debts and other debts given by Sytner Limited

<PAGE>
                                       50

                                   SCHEDULE 4

                                REQUIRED SECURITY

1.       An unlimited inter-company cross guarantee between the following
         companies:-

         Ron Stratton & Co Limited

         Ron Stratton (Knutsford) Limited

         United Auto Group UK Limited

         Guy Salmon Honda Limited

2.       A guarantee from UAG UK Holdings Limited in respect of liabilities of
         the Company in a format acceptable to the Lender.

3.       Mortgage Debentures from the following companies

         UAG UK Holdings Limited

         Ron Stratton & Co Limited

         Ron Stratton (Knutsford) Limited

         United Auto Group UK Limited

         Guy Salmon Honda Limited

4.       A Subordination Agreement in respect of the loan to UAG UK Holdings
         Limited from UAG International Holdings Inc in a format acceptable to
         the Lender.

<PAGE>
                                       51

                                   SCHEDULE 5

         PART A

         SECURITY TO BE RELEASED

         Deeds of release and Forms 403a are to be provided to the Lender (in
         accordance with Clause 20.17(a)) in respect of the following:

         o        Legal Charge dated 3 September 1996 granted by Ron Stratton &
                  Co Limited in favour of Esso Petroleum Limited;

         o        Guarantee and Debenture dated 27 February 1998 granted by Ron
                  Stratton & Co Limited in favour of Barclays Bank PLC;

         o        Legal Charge dated 7 July 1999 granted by Ron Stratton & Co
                  Limited in favour of Esso Petroleum Limited;

         o        Guarantee and Debenture dated 27 February 1998 granted by Ron
                  Stratton (Knutsford) Limited in favour of Barclays Bank PLC;

         o        Floating Charge dated 10 November 1997 granted by Graypaul
                  Motors Limited in favour of Lloyds Bowmaker Limited;

         o        Debenture dated 14 December 1935 granted by Sytner Sheffield
                  Limited in favour of CM Walker;

         o        Legal Charge dated 14 December 1994 granted by Sytner Holdings
                  Limited in favour of The Governor and Company of the Bank of
                  Scotland;

         o        Legal Charge dated 12 March 1996 granted by Sandridge Limited
                  in favour of Esso Petroleum Company Limited;

<PAGE>
                                       52

                                                         SCHEDULE 5

         PART B

         SECURITY TO BE INVESTIGATED

         The Company is to investigate the following Security Interests and to
         report back to the Lender in accordance with Clause 20.17(b):

         o        Floating Charge dated 21 September 1992 granted by Prophets
                  (Gerrard Cross) Limited in favour of BMW Finance (GB) Limited;

         o        Floating Charge dated 8 January 1988 granted by Prophets
                  (Gerrard Cross) Limited in favour of BMW Finance (GB) Limited;

         o        Debenture dated 10 November 1997 granted by Graypaul Motors
                  Limited in favour of Lloyds Bowmaker Limited;

         o        Floating Charge dated 29 May 1997 granted by Hyde Car Centre
                  Limited in favour of Lombard North Central plc;

         o        Floating Charge dated 27 April 1993 granted by Sytner Holdings
                  Limited in favour of Lloyds Bowmaker Limited;

         o        Debenture dated 15 December 1995 granted by Sytner Holdings
                  Limited in favour of Saab Finance Limited;

         o        Floating Charge dated 30 December 1997 granted by Sytner
                  Holdings Limited in favour of TGB Finance Limited;

         o        Debenture dated 9 May 1997 granted by Sandridge Limited in
                  favour of Lloyds Bowmaker Limited;

         o        Mortgage Debenture dated 25 July 1997 granted by Sandridge
                  Limited in favour of CJ Financial Services Limited;

<PAGE>
                                       53

                                   SIGNATORIES

COMPANY

SYTNER GROUP LIMITED

By: /s/ Mark Morris

LENDER

THE ROYAL BANK OF SCOTLAND plc

acting as agent for

NATIONAL WESTMINSTER BANK Plc

By: /s/ Jason Necker<PAGE>

                                                                    EXHIBIT 10.3

                             UAG CONNECTICUT I, LLC

                           FIRST AMENDED AND RESTATED
                       LIMITED LIABILITY COMPANY AGREEMENT

                             EFFECTIVE MARCH 1, 2001

<PAGE>

                                TABLE OF CONTENTS

<TABLE>

<S>                                                                                                             <C>
SECTION 1.........................................................................................................2

FORMATION OF THE LIMITED LIABILITY COMPANY........................................................................2

   1.1      FORMATION; FILINGS....................................................................................2
   1.2      NAME..................................................................................................2
   1.3      TERM..................................................................................................2
   1.4      REGISTERED AGENT AND OFFICE...........................................................................2
   1.5      PRINCIPAL PLACE OF BUSINESS...........................................................................3
   1.6      QUALIFICATION IN OTHER JURISDICTIONS..................................................................3

SECTION 2.........................................................................................................3

PURPOSE AND POWERS................................................................................................3

   2.1      BUSINESS PURPOSES.....................................................................................3
   2.2      POWERS OF THE COMPANY.................................................................................3

SECTION 3.........................................................................................................3

MEMBERS...........................................................................................................3

   3.1      POWERS OF MEMBERS.....................................................................................3
   3.2      NO PRIORITY, ETC......................................................................................4
   3.3      MEETINGS OF MEMBERS...................................................................................4
   3.4      ACTIONS OF MEMBERS WITHOUT A MEETING..................................................................5
   3.5      TRADE SECRETS; CONFIDENTIALITY........................................................................5

SECTION 4.........................................................................................................5

MANAGEMENT........................................................................................................5

   4.1      THE BOARD.............................................................................................5
   4.2      OFFICERS..............................................................................................8
   4.3      ACTIONS AND DETERMINATIONS OF THE COMPANY............................................................13

SECTION 5........................................................................................................13

OPERATING POLICIES...............................................................................................13

   5.1      ANNUAL BUSINESS PLAN PROCESS.........................................................................13
   5.2      INSURANCE............................................................................................13
   5.3      FISCAL YEAR..........................................................................................14
   5.4      INITIAL ACCOUNTANTS; CHANGE OF ACCOUNTANTS...........................................................14

SECTION 6........................................................................................................14

CAPITAL CONTRIBUTIONS, UNITS,....................................................................................14

CAPITAL ACCOUNTS AND ADVANCES....................................................................................14

   6.1      CAPITAL CONTRIBUTIONS................................................................................14
   6.2      MEMBER'S UNITS.......................................................................................14
   6.3      STATUS OF CAPITAL CONTRIBUTIONS......................................................................14

</TABLE>

                                        i
<PAGE>

<TABLE>

<S>                                                                                                            <C>
   6.5      NEGATIVE CAPITAL ACCOUNTS............................................................................16
   6.6      LOANS FROM MEMBERS...................................................................................16

SECTION 7........................................................................................................16

ALLOCATIONS OF PROFITS AND LOSSES................................................................................16

   7.1      ALLOCATIONS OF NET PROFIT AND NET LOSS...............................................................16
   7.2      SPECIAL ALLOCATIONS..................................................................................17
   7.4      TRANSFER OR CHANGE IN MEMBER INTERESTS...............................................................19

SECTION 8........................................................................................................19

DISTRIBUTIONS AND WITHHOLDING....................................................................................19

   8.1      DISTRIBUTIONS........................................................................................19
   8.2      LIMITATIONS ON DISTRIBUTION..........................................................................19
   8.3      WITHHOLDING TAXES....................................................................................19
   8.4      TAX DISTRIBUTIONS....................................................................................20
   8.5      ADJUSTED NET CASH DISTRIBUTIONS......................................................................20

SECTION 9........................................................................................................20

TAX MATTERS......................................................................................................20

   9.1      TAX MATTERS MEMBER...................................................................................20
   9.2      RIGHT TO MAKE SECTION 754 ELECTION...................................................................21
   9.3      TAXATION AS PARTNERSHIP..............................................................................21

SECTION 10.......................................................................................................22

BANKING; ACCOUNTING; BOOKS AND RECORDS...........................................................................22

   10.1     BANKING..............................................................................................22
   10.2     MAINTENANCE OF BOOKS AND RECORDS; ACCOUNTS AND ACCOUNTING METHOD; INSPECTION.........................22

SECTION 11.......................................................................................................22

REPORTS TO MEMBERS...............................................................................................22

   11.1     REPORTS TO CURRENT MEMBERS...........................................................................22
   11.2     TAX INFORMATION......................................................................................23
   11.3     ADDITIONAL INFORMATION...............................................................................23

SECTION 12.......................................................................................................24

LIABILITY, EXCULPATION AND INDEMNIFICATION.......................................................................24

   12.1     LIABILITY............................................................................................24
   12.2     EXCULPATION..........................................................................................24
   12.3     INDEMNIFICATION......................................................................................25

SECTION 13.......................................................................................................27

TRANSFER OF UNITS; WITHDRAWAL,...................................................................................27

BANKRUPTCY, DISSOLUTION; CERTAIN ADMISSIONS OF MEMBERS...........................................................27

   13.1     ADMISSION, SUBSTITUTION AND WITHDRAWAL OF MEMBERS; ASSIGNMENT........................................27
   13.2     WITHDRAWAL...........................................................................................28
   13.3     NOTO OPTION TO PURCHASE..............................................................................28

</TABLE>

                                       ii
<PAGE>

<TABLE>

<S>                                                                                                            <C>
SECTION 14.......................................................................................................29

DISSOLUTION AND TERMINATION OF THE COMPANY.......................................................................29

   14.1     EVENTS CAUSING DISSOLUTION...........................................................................29
   14.2     LIQUIDATION..........................................................................................29
   14.3     DISTRIBUTIONS IN CASH OR IN KIND.....................................................................30
   14.4     TIME AND MANNER FOR LIQUIDATION, ETC.................................................................30
   14.5     TERMINATION..........................................................................................31
   14.6     CLAIMS OF THE MEMBERS................................................................................31

SECTION 15.......................................................................................................31

DEFINITIONS......................................................................................................31

   15.1     DEFINITIONS..........................................................................................31

SECTION 16.......................................................................................................37

AMENDMENTS; MERGER OR SALE.......................................................................................37

   16.1     AMENDMENTS GENERALLY.................................................................................37
   16.2     MERGER OR SALE.......................................................................................37

SECTION 17.......................................................................................................38

MISCELLANEOUS PROVISIONS.........................................................................................38

   17.1     NOTICES..............................................................................................38
   17.2     COUNTERPARTS.........................................................................................38
   17.3     TABLE OF CONTENTS AND HEADINGS.......................................................................38
   17.4     SUCCESSORS AND ASSIGNS; ASSIGNMENT...................................................................38
   17.5     SEVERABILITY.........................................................................................38
   17.6     NON-WAIVER...........................................................................................38
   17.7     APPLICABLE LAW.......................................................................................39
   17.8     WAIVER OF JURY TRIAL.................................................................................39
   17.9     SURVIVAL OF CERTAIN PROVISIONS.......................................................................39
   17.10    LIMITATION ON DAMAGES; LEGAL DISPUTES................................................................39
   17.11    WAIVER OF PARTITION..................................................................................39
   17.12    ENTIRE AGREEMENT.....................................................................................39
   17.13    FURTHER ACTIONS......................................................................................40
   17.14    NO PARTNERSHIP.......................................................................................40
      UNITS......................................................................................................41
      Member Information.........................................................................................42

INITIAL DIRECTORS................................................................................................43

INITIAL OFFICERS.................................................................................................43

</TABLE>

                                      iii
<PAGE>

                           FIRST AMENDED AND RESTATED
                       LIMITED LIABILITY COMPANY AGREEMENT
                            OF UAG CONNECTICUT I, LLC

This Limited Liability Company Agreement of UAG CONNECTICUT I, LLC (the
"COMPANY") is effective as of March 1, 2001 by and between UAG CONNECTICUT, LLC,
a Delaware corporation, ("UAG") and NOTO HOLDINGS LLC ("NOTO") (each of the
foregoing parties to this Agreement shall be referred to herein collectively as
the "PARTIES"), and the Persons who become Members of the Company in accordance
with the provisions of this Agreement. Certain capitalized terms used herein
without definition have the meanings specified in Section 15.

WHEREAS, the Company owns various entities that own and operate factory
authorized retail sales and service Mercedes Benz, Porsche and Audi dealerships
and a full service automobile body shop located on or around Commerce Drive, in
Fairfield, Connecticut (collectively the "BUSINESS").

WHEREAS, the Company was formed under the Delaware Act in order to hold the
entities that own and operate the Business; and

WHEREAS, the Parties hereto desire to establish their respective rights and
obligations as Members of such limited liability company effective as of the
date of this Agreement.

WHEREAS, the Parties wish to amend and restate this Agreement as outlined
herein.

NOW, THEREFORE, in consideration of the agreements and obligations set forth
herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Members hereby agree as
follows:

                                       1
<PAGE>

                                    SECTION 1

                   FORMATION OF THE LIMITED LIABILITY COMPANY

1.1      FORMATION; FILINGS.

         (a)      GENERALLY. The Parties agree that the limited liability
                  company formed pursuant to the provisions of the Delaware Act
                  and upon its terms, shall be subject to the conditions, and
                  for the purposes set forth in this Agreement. Each of the
                  Members shall execute or cause to be executed from time to
                  time all other instruments, certificates, notices and
                  documents, and shall do or cause to be done all such filing,
                  recording, publishing and other acts, in each case, as may be
                  necessary or appropriate from time to time to comply with all
                  applicable requirements for the formation and/or operation
                  and, when appropriate, termination of a limited liability
                  company in the State of Delaware and all other jurisdictions
                  where the Company shall desire to conduct its business.

         (b)      UNITS; NAME; CAPITAL CONTRIBUTIONS. The number of Units,
                  Voting Units and Non-Voting Units authorized, issued and
                  outstanding are set forth in Schedule A hereto. The name,
                  mailing address, Capital Contribution, Voting Units and
                  Non-Voting Units held by each Member is listed on Schedule B
                  attached hereto.

1.2      NAME.

         The name of the Company is "UAG CONNECTICUT I, LLC" and its business
         shall be carried on in this name with such variations and changes
         including, but not limited to "MERCEDES BENZ OF FAIRFIELD," "AUDI OF
         FAIRFIELD" and "PORSCHE OF FAIRFIELD" as the Board in its sole judgment
         deems necessary or appropriate to comply with requirements of the
         jurisdictions in which the Company's operations are conducted.

1.3      TERM.

         The term of the Company shall commence on the date of the filing of a
         Certificate of Formation in the office of the Secretary of State of the
         State of Delaware and shall continue until dissolved and liquidated in
         accordance with the provisions of Section 13.

1.4      REGISTERED AGENT AND OFFICE.

         The registered agent and office of the Company in Delaware shall be The
         Corporation Trust Company, Corporation Trust Center, 1209 Orange
         Street, Wilmington, Delaware. The registered agent for service of
         process on the Company in the State of Delaware shall be The
         Corporation Trust Company. At any time, the Managers of the Company may
         designate another registered agent and/or registered office.

                                       2
<PAGE>

1.5      PRINCIPAL PLACE OF BUSINESS.

         The principal place of business of the Company shall be at 165 Commerce
         Drive, Fairfield, Connecticut 06430.

1.6      QUALIFICATION IN OTHER JURISDICTIONS.

         The Board shall take and/or authorize the taking of such action
         necessary to cause the Company to be qualified, formed or registered
         under assumed or fictitious name statutes or similar laws in any
         jurisdiction in which the Company transacts business and in which such
         qualification or registration is required by law or deemed advisable by
         the Company. The President or any duly qualified officer of the
         Company, as an authorized person within the meaning of the Delaware
         Act, shall execute, deliver and file any certificates (and any
         amendments and/or restatements thereof) necessary for the Company to
         qualify to do business in any jurisdiction in which the Company may
         wish to conduct business.

                                    SECTION 2

                               PURPOSE AND POWERS

2.1      BUSINESS PURPOSES.

         The purpose of the Company is to (i) engage for profit in the Business,
         (ii) engage for profit in any and all other activities reasonably
         related to or incidental to the Business, and (iii) engage for profit
         in any other business for which limited liability companies may be
         formed under the Delaware Act, whether or not related or incidental to
         the Business, as may be determined from time to time by the act of the
         Directors constituting fifty and one-tenth percent (50.1%) or more of
         the total vote of the Board.

 2.2     POWERS OF THE COMPANY.

         Subject to obtaining any requisite Board approval required by Sections
         2.1 or 4.2(e), the Company shall have the power and authority to take
         any and all actions necessary, appropriate, proper, advisable,
         incidental or convenient to or for the furtherance of the purposes set
         forth in Section 2.1, to the extent that the same may be lawfully
         exercised by limited liability companies under the Delaware Act.

                                    SECTION 3

                                     MEMBERS

3.1      POWERS OF MEMBERS.

         Except as otherwise expressly provided herein, the Members shall have
         no power to transact any business in the Company's name nor have the
         power to sign documents for or otherwise bind the Company. Subject to
         the provisions of the Delaware Act, the Certificate and this Agreement,
         the Members hereby delegate any and all such powers to

                                       3
<PAGE>

         the Board and the officers to carry out the business affairs of the
         Company on the Members' behalf. Any power not reserved to the Members
         or delegated to the officers of the Company, if any, shall remain with
         the Board.

3.2      NO PRIORITY, ETC.

         Except as otherwise provided herein, no Member shall have priority
         over any other Member either as to the return of the amount of its
         Capital Contribution, if any, to the Company or as to any allocation of
         Net Profit and Net Loss.

3.3      MEETINGS OF MEMBERS.

         (a)      ANNUAL MEETINGS. An annual meeting of the Members for the
                  election of Directors and the transaction of other proper
                  business shall be held once a year at a time designated by the
                  Company.

         (b)      SPECIAL MEETINGS. Special meetings of the Members, for any
                  purpose or purposes, may be called by the Company and shall be
                  called by the Company at the request of Members holding Fifty
                  Percent (50%) or more of the aggregate Units. The business
                  transacted at any special meeting of Members shall be limited
                  to the purposes stated in the notice.

         (c)      PLACE OF MEETING. All meetings of Members shall be held at
                  such place within or outside the State of Delaware as the
                  Company shall designate.

         (d)      NOTICE OF MEETINGS. Notice of all meetings of Members, stating
                  the time, place and purpose of the meeting, shall be given as
                  provided in Section 16.1 at least 10 days and not more than 60
                  days before the meeting. Any adjourned meeting may be
                  adjourned without further notice, provided that any adjourned
                  session or sessions are held within 60 days after the date set
                  for the original meeting. No notice need be given (i) to any
                  Member if a written waiver of notice, executed before or after
                  the meeting by such Member or his attorney thereunto duly
                  authorized, is filed with the records of the meeting, or (ii)
                  to any Member who attends the meeting without protesting prior
                  thereto or at its commencement the lack of notice to him. A
                  waiver of notice need not specify the purposes of the meeting.

         (e)      QUORUM AND VOTING. Members constituting at least 50% of the
                  Voting Units held by all Members must be present in order to
                  constitute a minimum quorum required for the transaction of
                  business at any meeting of Members. Any question brought
                  before any meeting shall be decided by Members who, at the
                  time in question and in the aggregate, hold, or hold proxies
                  with respect to, a majority of the aggregate Units, unless a
                  different vote is specifically provided for by this Agreement.

                                       4
<PAGE>

         (f)      PROXIES. Voting Units of Members may be voted in person or by
                  proxy. A proxy purporting to be executed by or on behalf of a
                  Member shall be deemed valid unless challenged at or prior to
                  its exercise and the burden of proving invalidity shall rest
                  on the challenger.

         (g)      ELECTRONIC COMMUNICATIONS. Members may participate in any
                  meeting of Members by means of conference telephone or similar
                  communications equipment by means of which all persons
                  participating in the meeting can hear each other, and such
                  participation in a meeting shall constitute presence in person
                  at the meeting.

3.4      ACTIONS OF MEMBERS WITHOUT A MEETING.

         Any action required to be taken at any annual or special meeting of
         Members or otherwise, or any action which may be taken at any annual or
         special meeting of such Members or otherwise, may be taken without a
         meeting and without a vote, if (i) at least two days advance notice of
         the intent to take action without a meeting is provided to each Member
         and (ii) a consent in writing, setting forth the action so taken, shall
         be signed by Members having not less than the minimum number of votes
         that would be necessary to authorize or take such action at a meeting.
         The foregoing two day advance notice period shall be deemed waived with
         respect to any Member that returns a signed consent to the Company.
         Prompt notice of the taking of the action without a meeting by less
         than unanimous written consent shall be given to each of those Members
         who have not consented in writing.

3.5      TRADE SECRETS; CONFIDENTIALITY.

         (a)      Each Member, to the extent, if any, that it becomes aware of a
                  trade secret of the Company, agrees that it will not at any
                  time reveal, divulge or otherwise make known any such trade
                  secret of the Company to any Person other than a current
                  officer, employee or affiliate of the Company, or such other
                  person as the Board may designate in writing or, with prior
                  notice to the Company, pursuant to court order or other legal
                  process or the order of any governmental agency or entity.

         (b)      Except as required by applicable law (including reporting
                  requirements under generally accepted accounting principles),
                  each Member shall keep secret all material confidential
                  matters of the Company which are not otherwise in the public
                  domain and will not intentionally disclose them to anyone
                  outside of the Company or any Affiliate of the Company during
                  the term of this Agreement.

                                    SECTION 4

                                   MANAGEMENT

4.1      THE BOARD.

         (a)      GENERAL. The business and affairs of the Company shall be
                  managed by or under the direction of a committee of Managers
                  of the Company (the "BOARD")

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<PAGE>

                  consisting initially of three (e) natural persons designated
                  as directors of the Company ("DIRECTORS") pursuant to the
                  terms of this Agreement. Other than rights and powers
                  expressly reserved to Members by this Agreement or the
                  Delaware Act, the Board shall have full, exclusive and
                  complete discretion to manage and control the business and
                  affairs of the Company, to make all decisions affecting the
                  business and affairs of the Company and to take all such
                  actions as it deems necessary or appropriate to accomplish the
                  purposes of the Company as set forth herein. Each Director is
                  hereby designated a Manager. The Directors shall be appointed
                  or elected as provided in Section 4.1(b). Each Director
                  elected shall hold office until a successor is elected and
                  qualified or until such Director's earlier death, resignation
                  or removal. Directors need not be Members. No appointment or
                  election of a Director shall become effective, however, until
                  the Person named shall have accepted in writing such
                  appointment and agreed in writing to be bound by the terms of
                  this Agreement.

         (b)      INITIAL ELECTION AND APPOINTMENT OF DIRECTORS. UAG shall be
                  entitled to designate two (2) Directors (the "UAG Designees")
                  and Noto shall be entitled to designate one (1) Director (the
                  "Noto Designee"). The initial UAG Designees shall be Robert H.
                  Kurnick, Jr. and James Davidson and the initial Noto Designee
                  shall be Richard S. Koppelman. UAG shall have the power to
                  remove, with or without cause, a UAG Designee and fill any
                  vacancy created by the death, resignation or removal of any
                  UAG Designee. Noto shall have to the power to remove, with or
                  without cause, the Noto Designee and fill any vacancy created
                  by the death, resignation or removal of the Noto Designee.

         (c)      INCREASE OR DECREASE IN SIZE OF BOARD. The size of the Board
                  may be increased or decreased from time to time only by an
                  amendment to this Agreement.

         (d)      RESTRICTIONS ON THE BOARD. The Board shall not: (i) do any act
                  in contravention of any applicable law or regulation, or
                  provision of this Agreement; or (ii) admit any Person as a
                  Member except as permitted in this Agreement and the Delaware
                  Act.

         (e)      MEETINGS OF THE BOARD. The Board may hold meetings, both
                  regular and special, either within or outside the State of
                  Delaware. The first meeting of each newly elected Board shall
                  be held immediately after the annual meeting of Members and at
                  the same place, and no notice of such meeting shall be
                  necessary to the newly elected Directors in order legally to
                  constitute the meeting, provided a quorum shall be present. In
                  the event such meeting is not held at that time and place, the
                  meeting may be held at such time and place as shall be
                  specified in a notice given as hereinafter provided for
                  special meetings of the Board, or as shall be specified in a
                  written waiver signed by all of the Directors. Regular
                  meetings of the Board may be held without notice at such time
                  and at such place as shall from time to time be determined by
                  the Board. Special meetings of the Board may be called by any
                  Member on two days' notice to each Director, either
                  personally, by telephone,

                                       6
<PAGE>

                  by mail, by telegram or by any other means of communication;
                  special meetings shall be called by any Member, the Chairman,
                  or the Secretary in like manner and on five days' notice on
                  the written request of one or more of the Directors. Notice of
                  a meeting need not be given to any Director if a written
                  waiver of notice, executed by such Director before or after
                  the meeting, is filed with the records of the meeting, or to
                  any Director who attends the meeting without protesting prior
                  thereto or at its commencement, the lack of notice. A waiver
                  of notice need not specify the purposes of the meeting.

         (f)      QUORUM. At all meetings of the Board, two Directors shall
                  constitute a quorum for the transaction of business. If a
                  quorum shall not be present at any meeting of the Board, the
                  Directors present at such meeting may adjourn the meeting from
                  time to time, without notice other than announcement at the
                  meeting, until a quorum shall be present. Any action required
                  or permitted to be taken at any meeting of the Board or of any
                  committee thereof may be taken without a meeting, and without
                  a vote, provided that, at least two days advance notice of the
                  intent to take such action without a meeting and without a
                  vote is given to each Director, if a consent in writing,
                  setting forth the action so taken, shall be signed, in the
                  case of action by the Board, by Directors having not less than
                  the minimum number of votes that would be necessary to
                  authorize or take such action at a meeting, and in the case of
                  action by a committee, by all members of such committee.

         (g)      REQUIRED BOARD VOTE. The affirmative vote of a majority of the
                  Directors present at any meeting at which there are sufficient
                  Directors present to constitute a quorum ("MAJORITY BOARD
                  VOTE") shall be the act of the Board, unless another vote is
                  specifically provided by this Agreement.

         (h)      COMMITTEES OF DIRECTORS. The Board may, by resolution passed
                  by a Majority Board Vote, designate one or more additional
                  committees, each committee to consist of one or more of the
                  Directors. Any such committee, to the extent and only to the
                  extent expressly provided in the resolution of the Board,
                  shall have and may exercise all the powers and authority of
                  the Board in the management of the business and affairs of the
                  Company. Each committee shall keep regular minutes of its
                  meetings and report the same to the Board when required.

         (i)      ELECTRONIC COMMUNICATIONS. Members of the Board, or any
                  committee designated by the Board, may participate in a
                  meeting of the Board, or any committee, by means of conference
                  telephone or similar communications equipment by means of
                  which all persons participating in the meeting can hear each
                  other, and such participation in a meeting shall constitute
                  presence in person at the meeting.

         (j)      COMPENSATION OF DIRECTORS. Directors shall not receive
                  remuneration for services as a Director; provided, that
                  Directors shall be entitled to reimbursement

                                       7
<PAGE>

                  of reasonable out-of-pocket expenses incurred in connection
                  with attendance at regular or special meetings of the Board or
                  any committee thereof.

         (k)      DIRECTORS NOT AGENTS. The Directors are not agents of the
                  Company for the purpose of the Company's business and shall
                  not have the power to sign documents for or otherwise bind the
                  Company.

4.2      OFFICERS.

         (a)      GENERAL. The designated officers of the Company shall be a
                  Chairman, a President who shall be the Chief Executive Officer
                  of the Company, a Secretary and a Treasurer and may include
                  one or more Vice Presidents, one or more Assistant
                  Secretaries, one or more Assistant Treasurers, and such other
                  officers as may be appointed in accordance with the provisions
                  of Section 4.2(k) (each, an "OFFICER," and together, the
                  "OFFICERS"). Officers may be, but need not be, Managers.

         (b)      ELECTION, TERM OF OFFICE, QUALIFICATIONS. Officers shall be
                  elected by a Majority Board Vote at any regular or special
                  meeting of the Board, provided that until such elections or
                  appointments have been made, the Officers shall be the natural
                  persons designated on SCHEDULE B annexed hereto. Except as
                  provided in paragraphs (c) and (d) of this Section 4.2, each
                  Officer shall hold office until his or her successor shall
                  have been chosen and qualified. Any two offices may be held by
                  the same Person, but no Officer shall execute, acknowledge or
                  verify any instrument in more than one capacity if such
                  instrument be required by law or this Agreement to be
                  executed, acknowledged or verified by any two or more
                  Officers.

         (c)      RESIGNATIONS AND REMOVALS. Any Officer may resign his or her
                  office at any time by delivering a written resignation to the
                  President or any Director. Unless otherwise specified therein,
                  such resignation shall take effect upon delivery. Executive
                  Officers may be removed from office at any time, with or
                  without cause, by a Majority Board Vote at any regular meeting
                  or any special meeting. All other officers may be removed from
                  offices at any time by the President. Except to the extent
                  expressly provided in a written agreement with the Company, no
                  Officer resigning and no Officer removed shall have any right
                  to any compensation for any period following his resignation
                  or removal or any right to damages on account of such removal.

         (d)      VACANCIES AND NEWLY CREATED OFFICES. If any vacancy shall
                  occur in any office, other than any Executive Officer, by
                  reason of death, resignation, removal, disqualification or
                  other cause, or if any new office shall be created, such
                  vacancies or newly created offices may be filled by the Board
                  at any regular or special meeting or, in the case of any
                  office created pursuant to Section 4.2(k), by any Officer upon
                  whom such power shall have been conferred by the Board. If

                                       8
<PAGE>

                  any vacancy shall occur in the office of any Executive
                  Officer, such vacancy shall be filled by appointment made by a
                  Majority Board Vote.

         (e)      AUTHORITY OF OFFICERS; CERTAIN ACTS REQUIRING OR MAJORITY
                  BOARD VOTE. Subject to the provisions of this Agreement and to
                  the directives and policies of the Board not in conflict with
                  this Agreement, the President and the other Officers of the
                  Company shall have the power, acting individually or jointly,
                  to represent and bind the Company in all matters, in
                  accordance with the scope of their respective duties subject
                  to the following restrictions:

                  (i) The following actions or types of transactions shall not
                  be taken or consummated by the President or any other Officer,
                  employee or agent of the Company except pursuant to
                  resolutions, directions or guidelines adopted by a Majority
                  Board Vote, and such actions and types of transactions shall
                  not constitute action by the Company unless such Majority
                  Board Vote is obtained:

                  (1)      The merger, consolidation, reorganization or other
                           business combination of any kind involving the
                           Company or sale of all or substantially all the
                           assets of the Company.

                  (2)      Amendments to, or the execution or filing of any
                           document or agreement of any kind which would affect
                           the terms of the Certificate.

                  (3)      The issuance or sale, or any agreement to issue or
                           sell, directly or indirectly, to any Person, by the
                           Company any interest of any kind in the Company,
                           including, but not limited to, Units, Voting Units or
                           Non-Voting Units, any rights, options or warrants or
                           other securities to acquire any such interest, or any
                           securities convertible into or exchangeable or
                           exercisable for such interest; provided, however,
                           that any such issuance that could or would entitle
                           such person to the rights of a Member or that would
                           cause (or entitle) such person to receive an interest
                           (other than collateral security interests granted by
                           the Company to secure its obligations) of 5% or more
                           in the assets or profits of the Company shall also
                           require the approval of the Members of the Company in
                           accordance with Section 13.1(b).

                  (4)      Any sale or other transfer of assets of the Company
                           not in the ordinary course of business consistent
                           with past practices (other than as provided in the
                           approved annual Business Plan).

                  (5)      The declaration or payment, directly or indirectly,
                           of any distribution, whether in cash, property or
                           securities or a combination thereof, with respect to
                           any Units or Capital Contribution.

                                       9
<PAGE>

                  (6)      The redemption, purchase, repurchase, retirement or
                           other acquisition for value of any of the interests
                           in, or securities of, the Company.

                  (7)      The dissolution, liquidation, or voluntary bankruptcy
                           of the Company (other than any right of liquidation
                           expressly provided for under this Agreement).

                  (8)      Approval of the annual Business Plan.

                  (9)      Any investment in the equity or debt of another
                           corporation or in any partnership or other enterprise
                           (other than temporary investments of cash in money
                           market instruments).

                  (10)     Acceptance of annual financial statements.

                  (11)     Approval of policies relating to the investment or
                           allocation of surplus funds and creation of reserve
                           accounts.

                  (12)     Any change in the Company's accountants or any change
                           in the Company's material accounting policies, except
                           as required by generally accepted accounting
                           principles.

                  (13)     Subject to Section 4.2(e)(ii) below, the making of
                           any capital expenditure or acquisition of assets by
                           the Company (including by way of merger) other than
                           capital expenditures or acquisitions of assets
                           provided for in the then current approved annual
                           Business Plan (or any permitted deviations from the
                           capital budget which may be allowed by a current
                           approved Business Plan) provided that, any such
                           capital expenditure or acquisition shall be the
                           subject of discussion and debate by the Members prior
                           to it being submitted to the Board for a vote.

                   (14)    Incurring, creating, assuming or guaranteeing any
                           indebtedness by the Company, absolute or contingent
                           of any nature whatsoever (other than indebtedness
                           incurred in the ordinary course of business
                           consistent with past practice or as provided for in a
                           current approved Business Plan).

                  (15)     The extension of any material credit, including the
                           lending of funds by the Company, to another Person,
                           other than in the normal course of business of the
                           Company.

                  (16)     Election of Executive Officers; the establishment or
                           change in any Executive Officer's compensation or
                           benefits of any kind; the establishment or amendment
                           of any employee pension or other benefit programs of
                           any kind; or action taken under any employment
                           agreement.

                                       10
<PAGE>

                  (17)     The institution, termination or settlement by the
                           Company of any litigation where the amount in
                           controversy exceeds $100,000.

                  (18)     The formation of any Subsidiary.

                  (19)     Any change in the Company's name.

                  (ii) The following action or type of transaction shall not be
                  taken or consummated by the President or any other Officer,
                  employee or agent of the Company except pursuant to
                  resolutions, directions or guidelines adopted by a unanimous
                  vote of the Directors, and such action or transaction shall
                  not constitute action by the Company unless such unanimous
                  vote is obtained:

                           The making of any capital expenditure which would
                           cause the net working capital of the Dealership
                           Operating Companies, in the aggregate, to fall below
                           the levels of minimum net working capital as is
                           necessary to satisfy the requirements, in the
                           aggregate, of the Franchise Agreements of the
                           Dealership Operating Companies.

         (F)      CHAIRMAN. The Chairman shall be elected by the Board, but
                  shall have no other duties or powers except as may be
                  determined by the Board from time to time.

         (g)      PRESIDENT. From time to time as appropriate, pursuant to
                  Section 4.2(b) the Board shall elect a president of the
                  Company who (subject to the terms of any applicable employment
                  agreement) shall serve as such until the earlier of his death
                  or resignation or his removal in accordance with the terms of
                  this Agreement (the "PRESIDENT"). The President shall be the
                  chief executive officer of the Company, shall preside at all
                  meetings of the Members, and shall have the responsibility for
                  managing the day-to-day business operations and affairs of the
                  Company and supervising its other Officers, subject to the
                  direction, supervision and control of the Board. In general,
                  the President shall have such other powers and (subject to the
                  terms of any applicable employment agreement) perform such
                  other duties as usually pertain to the office of the
                  President, and as from time to time may be assigned to him by
                  the Board, including, without limitation, the authority to
                  retain and terminate employees of the Company (other than
                  Officers). The powers and duties of the President shall at all
                  times be subject to the provisions of Section 4.2(e).

         (h)      VICE PRESIDENT. From time to time as appropriate, pursuant to
                  Section 4.2(b), the Board may elect one or more vice
                  presidents of the Company (each a "VICE PRESIDENT") who
                  (subject to the terms of any applicable employment agreement)
                  shall serve as such until the earlier of such persons death or
                  resignation or his removal in accordance with the terms of
                  this Agreement. A Vice President shall have such duties as may
                  be prescribed by the Board or the President, under whose
                  supervision the Vice President shall be.

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<PAGE>

         (i)      THE SECRETARY AND ASSISTANT SECRETARY. The Secretary shall
                  attend all meetings of the Board and all meetings of the
                  Members and record all the proceedings of the meetings and all
                  actions of the Members, the Board and the committees of the
                  Board in a book to be kept for that purpose and shall perform
                  like duties for the standing committees when required. The
                  Secretary shall give, or cause to be given, notice of all
                  meetings of the Members and special meetings of the Board, and
                  shall perform such other duties as may be prescribed by the
                  Board or the President, under whose supervision the Secretary
                  shall be. The Assistant Secretary, or if there be more than
                  one, the Assistant Secretaries in the order determined by the
                  Board (or if there be no such determination, then in order of
                  their election) shall, in the absence of the Secretary or in
                  the event of the Secretary's inability to act, perform the
                  duties and exercise the powers of the Secretary and shall
                  perform such other duties and have such other powers as the
                  Board may from time to time prescribe.

         (j)      THE TREASURER AND ASSISTANT TREASURER. The Treasurer shall
                  have the custody of the Company's funds and securities and
                  shall keep full and accurate accounts of receipts and
                  disbursements in books belonging to the Company and shall
                  deposit all moneys and other valuable effects in the name and
                  to the credit of the Company in such depositories as may be
                  designated by the Board. The Treasurer shall disburse the
                  funds of the Company as may be ordered by the Board, taking
                  proper vouchers for such disbursements, and shall render to
                  the President, under whose supervision the Treasurer shall be,
                  and the Board, at its regular meetings, or when the Board so
                  requires, an account of all of the Treasurer's transactions
                  and of the financial condition of the Company. The Assistant
                  Treasurer, or if there shall be more than one, the Assistant
                  Treasurers in the order determined by the Board (or if there
                  be no such determination, then in the order of their
                  election), shall, in the absence of the Treasurer or in the
                  event of the Treasurer's inability to act, perform the duties
                  and exercise the powers of the Treasurer and shall perform
                  such other duties and have such other powers as the Board may
                  from time to time prescribe.

         (k)      SUBORDINATE OFFICERS. The Board from time to time may appoint
                  such other subordinate Officers, or agents as it may deem
                  advisable, each of whom shall have such title, hold office for
                  such period, have such authority and perform such duties as
                  the Board may determine in its sole discretion subject always
                  to the direction and control of the President. The Board from
                  time to time may delegate to one or more Officers or agents
                  the power to appoint any such subordinate Officers or agents
                  and prescribe their respective rights, terms of office,
                  authorities and duties.

         (L)      OFFICERS AS AGENTS. The Officers, to the extent of their
                  powers set forth in this Agreement, are agents of the Company
                  for the purpose of the Company's business, and the actions of
                  the Officers taken in accordance with such powers shall bind
                  the Company.

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<PAGE>

4.3      ACTIONS AND DETERMINATIONS OF THE COMPANY.

         Whenever this Agreement provides that a determination shall be made or
         an action shall be taken by the Company, such determination or act may
         be made or taken by the Board or, pursuant to this Agreement or with
         the required authorization of the Board, by any committee of the Board
         or any Officer acting under the supervision of the Board.

                                    SECTION 5

                               OPERATING POLICIES

5.1      ANNUAL BUSINESS PLAN PROCESS.

         The President shall prepare and submit, or cause to have prepared and
         submitted, to the Board for its approval (i) a business plan (the
         "INITIAL BUSINESS PLAN") on or before March 1, 2001, and (ii) updated
         business plans at least sixty (60) days prior to the beginning of each
         new Fiscal Year (each such business plan, a "BUSINESS PLAN") covering
         the period of the new Fiscal Year (except for the Initial Business
         Plan, which shall cover the current Fiscal Year) (such one year period,
         the "BUSINESS PLAN PERIOD"). Each such Business Plan shall set forth,
         for each of the years covered by the Business Plan Period, the
         Company's expense budgets, and a detailed financial plan relating to
         such new Fiscal Year for the Company.

         (a)      Not more than thirty (30) days following its receipt of an
                  annual Business Plan, the Board shall identify any additional
                  information, clarification and/or modification required for
                  its approval, and the President shall provide such to the
                  Board as soon as practicable. Any approval granted by the
                  Board shall apply only to the first year of any Business Plan
                  Period and, in the event that the annual Business Plan for the
                  next fiscal year is not approved by the close of the then
                  current Fiscal Year, the then existing Business Plan shall
                  continue as the approved Business Plan for a period of not
                  more than 90 days following the close of the then current
                  Fiscal Year.

         (b)      The President shall prepare and present, or have prepared and
                  presented, at each regular meeting of the Board, or at any
                  special meeting called for this purpose, a review of the
                  Company's year-to-date progress in comparison to the approved
                  Business Plan.

5.2      INSURANCE.

         The Company will maintain insurance at levels and of types consistent
         with what would be deemed commercially reasonable for a company engaged
         in business activities substantially similar to that of the Business.

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<PAGE>

5.3      FISCAL YEAR.

         The fiscal year of the Company (the "FISCAL YEAR") shall end on the
         31st day of December in each year. The Company shall have the same
         fiscal year for income tax and for financial accounting purposes. To
         the extent permissible under applicable law, the Fiscal Year may be
         changed by a Majority Board Vote.

5.4      INITIAL ACCOUNTANTS; CHANGE OF ACCOUNTANTS.

         The Company's independent public accountant as of the Closing shall be
         Deloitte & Touche LLP. The Company's independent public accountant may
         be changed at any time by a Majority Board Vote.

                                    SECTION 6

                          CAPITAL CONTRIBUTIONS, UNITS,
                          CAPITAL ACCOUNTS AND ADVANCES

6.1      CAPITAL CONTRIBUTIONS.

         The value of each Member's initial capital contribution to the Company
         shall equal the amount set forth opposite the Member's name on SCHEDULE
         B attached hereto.

6.2      MEMBER'S UNITS.

         Units held by a Member shall for all purposes be personal property. A
         Member has no interest in specific Company property.

6.3      STATUS OF CAPITAL CONTRIBUTIONS.

         (a)      Except as otherwise expressly provided herein, no Member shall
                  have the right to withdraw capital from the Company or to
                  receive any distribution or return of such Member's Capital
                  Contributions.

         (b)      No Member shall receive any interest, salary or drawing with
                  respect to its Capital Contributions, if any, or its Capital
                  Account or for services rendered on behalf of the Company or
                  otherwise in its capacity as a Member, except as otherwise
                  specifically provided in this Agreement.

         (c)      The Members shall be liable only to make their initial Capital
                  Contributions pursuant to Section 6.1, and no Member shall be
                  required to lend any funds to the Company or to make any
                  additional Capital Contributions to the Company except as
                  otherwise set forth herein.

6.4      CAPITAL ACCOUNTS.

         A separate capital account (each a "CAPITAL ACCOUNT") for each Member
         shall be established on the books and records of the Company and such
         Capital Accounts shall be maintained for each Member in accordance with
         the following provisions:

                                       14
<PAGE>

         (a)      To each Member's Capital Account there shall be credited such
                  Member's Capital Contributions, such Member's distributive
                  share of Net Profit and items in the nature of income or gain
                  which are specially allocated to such Member pursuant to
                  Section 6.4(f) and Section 7.2 hereof, and the amount of any
                  Company liabilities assumed by such Member or which are
                  secured by any Company property distributed to such Member.

         (b)      To each Member's Capital Account there shall be debited the
                  amount of cash and the Gross Asset Value of any Company
                  property distributed to such Member pursuant to any provision
                  of the Agreement (including amounts distributed to a Member
                  but required to be paid on such Member's behalf directly to a
                  creditor or another party pursuant to a separate agreement),
                  such Member's distributive share of Net Loss and any items in
                  the nature of expenses or losses which are specially allocated
                  pursuant to Section 6.4(f) and Section 7.2 hereof, and the
                  amount of any liabilities of such Member assumed by the
                  Company or which are secured by any property contributed by
                  such Member to the Company.

         (c)      In the event all or a portion of the Units held by a Member
                  are transferred in accordance with the terms of the Agreement,
                  the transferee shall succeed to the Capital Account of the
                  transferor to the extent it relates to the transferred Units.

         (d)      In determining the amount of any liability for purposes of
                  Sections 6.4(a) and 6.4(b) hereof, there shall be taken into
                  account Code Section 752 and any other applicable provisions
                  of the Code and Treasury Regulations.

         (e)      Immediately prior to the occurrence of an event specified in
                  Treasury Regulation Section 1.704(b)-1(b)(2)(iv)(f)(5)(i) or
                  (ii), the Capital Accounts of the Members shall be adjusted
                  (consistent with the provisions hereof and Treasury
                  Regulations under Section 704 of the Code) upward or downward
                  to reflect any unrealized gain or unrealized loss attributable
                  to property of the Company, as if such unrealized gain or
                  unrealized loss had been recognized upon an actual sale of
                  each asset immediately prior to such event and had been
                  allocated first to equalize the Capital Accounts of the
                  Members in proportion to their relative Non-Voting Percentage
                  Interest, and then to all the Members in accordance with their
                  Non-Voting Percentage Interest. In determining such unrealized
                  gain or unrealized loss, the fair market value of the property
                  of the Company as of any date of determination shall be
                  reasonably determined by Majority Board Vote. This Section
                  6.4(e) provision is intended to meet the requirements of
                  Treas. Reg. 1.704-1(b)(2)(iv)(f).

          (f)     This Section 6.4 and other provisions of this Agreement
                  relating to the maintenance of Capital Accounts are intended
                  to comply with Treasury Regulations Section 1.704-1(b), and
                  shall be interpreted and applied in a manner consistent with
                  such Treasury Regulations. Notwithstanding that a particular
                  adjustment is not set forth in this Section 6.4, the Capital
                  Accounts of the

                                       15
<PAGE>
         Members shall be adjusted as required by, and in accordance with, the
         capital account maintenance rules of Treasury Regulations Section
         1.704-1(b).

6.5      NEGATIVE CAPITAL ACCOUNTS.
         No Member shall be required to make up an Adjusted Capital Account
         Deficit nor pay to any Member the amount of any such deficit in any
         such account.

6.6      LOANS FROM MEMBERS.
         Loans by a Member to the Company shall not be considered Capital
         Contributions. If any Member shall advance funds to the Company in
         excess of the amounts required hereunder to be contributed by such
         Member to the capital of the Company, the making of such advances shall
         not result in any increase in the amount of the Capital Account of such
         Member. The amounts of any such advances shall be a debt of the Company
         to such Member and shall be payable or collectible only out of the
         Company assets in accordance with the terms and conditions upon which
         such advances are made. The repayment of loans from a Member to the
         Company upon liquidation shall be subject to the order of priority set
         forth in Section 13.2.

                                    SECTION 7

                        ALLOCATIONS OF PROFITS AND LOSSES

7.1      ALLOCATIONS OF NET PROFIT AND NET LOSS.

         (a)      After giving effect to the special allocations set forth in
                  Section 6.4(e) and Section 7.2 hereof, Net Profit of the
                  Company for any Fiscal Year shall be allocated to each Member
                  by multiplying the Net Profit of the Company for any Fiscal
                  Year by a fraction, the numerator of which shall be the
                  cumulative Net Losses allocated to the Member pursuant to
                  Section 7.1(b) for all prior fiscal years and the denominator
                  which shall be cumulative Net Losses allocated to all Members
                  pursuant to Section 7.1(b) for all prior Fiscal Years. The
                  balance of the Net Profits, if any, shall be allocated among
                  the Members in proportion to their Non-Voting Percentage
                  Interest.

         (b)      After giving effect to the special allocations set forth in
                  Section 6.4(f) and Section 7.2 hereof, Net Losses of the
                  Company for any Fiscal Year shall be allocated among the
                  Members in proportion to their Non-Voting Percentage Interest.

         (c)      Notwithstanding the foregoing provisions of Section 7.1(b),
                  the Net Losses allocated pursuant to Section 7.1(b) shall not
                  exceed the maximum amount of Net Losses that can be so
                  allocated without causing any Member to have an Adjusted
                  Capital Account Deficit at the end of any Fiscal Year. In the
                  event some but not all of the Members would have Adjusted
                  Capital Account Deficits as a consequence of an allocation of
                  Net Losses pursuant to Section 7.1(b) hereof, the

                                       16
<PAGE>

                  limitation set forth in this Section 7.1(c) shall be applied
                  on a Member by Member basis so as to allocate the maximum
                  permissible Net Loss amounts to each Member under Treasury
                  Regulations Section 1.704-1(b)(2)(ii)(d). All Net Loss amounts
                  in excess of the limitation set forth in this Section 7.1(c)
                  shall be allocated to the Members in proportion to their
                  Non-Voting Percentage Interest

7.2      SPECIAL ALLOCATIONS.

         (a)      Any allocation pursuant to Section 7.1 will be subject to the
                  following adjustments and special allocations which shall be
                  made in the following order of priority and prior to any
                  allocation under Section 7.1:

                  (i)      MINIMUM GAIN CHARGEBACK. Notwithstanding any other
                           provision of this Section 7.2, if there is a net
                           decrease in Company Minimum Gain or Member Minimum
                           Gain during any Fiscal Year, prior to any other
                           allocation pursuant hereto, items of Company income
                           and gain for such Fiscal Year (and, if necessary,
                           subsequent Fiscal Years) shall be specially allocated
                           between the Members in accordance with Treasury
                           Regulations Sections 1.704-2(f) and (i). The items to
                           be so allocated shall be determined in accordance
                           with Treasury Regulations Section 1.704-2(f)(6) and
                           1.704-2(j)(2)(i) through (iii).

                  (ii)     QUALIFIED INCOME OFFSET. If any Member unexpectedly
                           receives any adjustments, allocations or
                           distributions described in Treasury Regulations
                           Sections 1.704-1(b)(2)(ii)(d)(4), (5) or (6), items
                           of Company income and gain shall be specially
                           allocated to each such Member in an amount and manner
                           sufficient to eliminate, to the extent required by
                           the Treasury Regulations, the Adjusted Capital
                           Account Deficit of such Member as quickly as
                           possible, provided that an allocation pursuant to
                           this Section 7.2(a)(ii) shall be made only if and to
                           the extent that such Member would have an Adjusted
                           Capital Account Deficit after all other allocations
                           provided for in this Section 7.2(a) have been
                           tentatively made as if this Section 7.2(a)(ii) were
                           not in the Agreement.

                  (iii)    SPECIAL INCOME ALLOCATION. If any Member has an
                           Adjusted Capital Account Deficit in its Capital
                           Account at the end of any Fiscal Year or portion
                           thereof that is in excess of the sum of (I) the
                           amount such Member is obligated to restore pursuant
                           to any provision of this Agreement, and (II) the
                           amount such Member is deemed to be obligated to
                           restore pursuant to the penultimate sentences of
                           Treasury Regulations Sections 1.704-2(g)(1) and
                           1.704-2(i)(5) of the Regulations, each such Member
                           shall be specially allocated items of Company income
                           and gain in the amount of such excess as quickly as
                           possible, provided that an allocation pursuant to
                           this Section 7.2(a)(iii) shall be made only if and to
                           the extent that such Member would have an Adjusted
                           Capital Account Deficit in excess of such sum after
                           all

                                       17
<PAGE>

                           other allocations provided for in this Section 7.2(a)
                           have been made as if this Section 7.2(a)(iii) were
                           not in the Agreement.

                  (iv)     NON-RECOURSE DEDUCTIONS. Non-recourse Deductions, if
                           any, for any Fiscal Year shall be allocated (as
                           nearly as possible) under Treasury Regulations
                           Section 1.704-2(e) among the Members in proportion to
                           their Non-Voting Percentage Interest.

                  (v)      MEMBER NONRECOURSE DEDUCTIONS. In accordance with the
                           principles set forth in Treasury Regulations Section
                           1.704-2(i), any Member Nonrecourse Deductions for any
                           Fiscal Year shall be allocated to the Members in
                           accordance with the ratios in which they potentially
                           bear the economic risk of loss with respect to such
                           Member Nonrecourse Debt.

                  (vi)     SECTION 754 ADJUSTMENTS. To the extent an adjustment
                           to the adjusted tax basis of any Company asset
                           pursuant to Section 734(b) or 743(b) of the Code is
                           required pursuant to Treasury Regulations Section
                           1.704-1(b)(2)(iv)(m) to be taken into account in
                           determining Capital Accounts as a result of a
                           distribution to a Member in complete liquidation of
                           its interest, the amount of such adjustment to the
                           Capital Accounts shall be treated as an item of gain
                           (if the adjustment increases the basis of the asset),
                           or loss (if the adjustment decreases such basis), and
                           such item of gain or loss shall be specially
                           allocated in a manner consistent with the manner in
                           which the Capital Accounts of the Members are
                           required to be adjusted pursuant to such Section of
                           the Regulations.

         (b)      CURATIVE ALLOCATIONS. It is the intent of the parties that, to
                  the extent possible, all allocations pursuant to Sections
                  7.2(a)(i) through 7.2(a)(vi) (the "REGULATORY ALLOCATIONS")
                  shall be offset either with other Regulatory Allocations or
                  with special allocations of other items of Company income,
                  gain, loss or deduction pursuant to this Section 7.2(b).
                  Therefore, notwithstanding any other provision of this
                  Agreement (other than Sections 7.2(a)(i) through 7.2(a)(vi)),
                  the Board shall make such offsetting special allocations of
                  Company income, gain, loss or deductions as are appropriate so
                  that after such offsetting allocations are made, each Members
                  Capital Account balance is, to the extent possible, equal to
                  the Capital Account balance such Member would have had if
                  Sections 7.2(a)(i) through 7.2(a)(vi) were not part of this
                  Agreement and all Company items were allocated pursuant to
                  Section 7.1 of this Agreement.

7.3      TAX ALLOCATIONS.

         Items of income, gain, loss, deduction and credit of the Company shall,
         for each Fiscal Year, be allocated, for U.S. federal, state and local
         income tax purposes, among the Members in the same manner as the items
         of income, gain, loss, deduction and credit were allocated to such
         Members pursuant to Section 6.4(e), Section 7.1 and Section 7.2

                                       18
<PAGE>

         hereof. Notwithstanding the foregoing, in accordance with Code Section
         704(c) and the Treasury Regulations thereunder, items of income, gain,
         loss and deduction with respect to any property contributed to the
         capital of the Company shall, solely for tax purposes, be allocated
         among the Members so as to take account of any variation between the
         adjusted tax basis of such property at the time of contribution to the
         Company for federal income tax purposes and its Gross Asset Value at
         the time of contribution using the "remedial allocation method" set
         forth in Treasury Regulation 1.704-3(d). In the event the Gross Asset
         Value of any Company asset is adjusted in accordance with the
         definition of Gross Asset Value hereof, subsequent allocations of items
         of income, gain, loss, and deductions with respect to such asset shall
         take account of any variation between the adjusted tax basis of such
         asset for federal income tax purposes and its adjusted Gross Asset
         Value in a manner consistent with the principles of Code Section 704(c)
         and the Treasury Regulations thereunder. Allocations pursuant to this
         Section 7.3 are solely for purposes of U.S. federal, state, and local
         income taxes and shall not affect, or in any way be taken into account
         in computing, any Member's Capital Account or share of Net Profit or
         Net Loss, other items, or distributions pursuant to any provision of
         this Agreement.

7.4      TRANSFER OR CHANGE IN MEMBER INTERESTS.

         If the respective Units held by the existing Members in the Company
         change or if a Unit is transferred to any other person or entity, then,
         for the Fiscal Year of transfer, all income, gains, losses, deductions,
         tax credits and other tax incidents resulting from the operations of
         the Company shall be allocated, as between the transferor and the
         transferee, by taking into account their varying interests in
         accordance with Section 706 of the Code.

                                    SECTION 8

                          DISTRIBUTIONS AND WITHHOLDING

8.1      DISTRIBUTIONS.

         The Company shall not make any distributions to its Members except as
         determined by the Board in accordance with Section 4.2(e) or except as
         otherwise provided herein. Except as otherwise expressly provided
         herein, all Distributions shall be made to Members pro rata in
         accordance with their respective Non-Voting Percentage Interest.

8.2      LIMITATIONS ON DISTRIBUTION.

         Notwithstanding any provision to the contrary contained in this
         Agreement, the Company shall not make a distribution to any Member on
         account of its interest in the Company if such distribution would
         violate Section 18-607 of the Delaware Act.

8.3      WITHHOLDING TAXES.

         If the Company is required to withhold any portion of any amounts
         distributed or allocated to a Member by applicable U.S. federal, state,
         local or foreign tax laws, the Company may withhold such amounts and
         make such payments to taxing authorities as are necessary to ensure
         compliance with such tax laws. Any funds withheld by reason of

                                       19
<PAGE>

         this Section 8.3 shall nonetheless be deemed distributed to the Member
         in question for all purposes under this Agreement. If the Company did
         not withhold from actual distributions any amounts it was required to
         withhold, the Company may, at its option, (i) require the Member to
         which the withholding was credited to reimburse the Company for such
         withholding; or (ii) reduce any subsequent distributions to such Member
         by the amount of such withholding. The obligation of a Member to
         reimburse the Company for taxes that were required to be withheld shall
         continue after such Member transfers or liquidates its interest in the
         Company. Each Member agrees to furnish the Company with any
         representations and forms as shall reasonably be requested by the
         Company to assist in determining the extent of, and in fulfilling, any
         withholding obligations it may have.

8.4      TAX DISTRIBUTIONS.

         At a minimum, the Company shall make annual cash distributions each
         year to each Member in an amount determined by multiplying (i) such
         Member's taxable income resulting from the pass through allocations of
         the Company's income and gain to such Member by (ii) the highest rate
         applicable to any of the Members under applicable state and federal
         income tax laws.

8.5      ADJUSTED NET CASH DISTRIBUTIONS.

         The Company shall distribute the amounts as determined by Section 8.4
         above on an annual basis. In addition the Company shall distribute not
         less than Fifty Percent (50%) of the Adjusted Net Cash on, at a
         minimum, a quarterly basis to the Members in proportion to their
         Non-Voting Percentage Interest.

                                    SECTION 9

                                   TAX MATTERS

9.1      TAX MATTERS MEMBER.

         (a)      UAG is hereby designated as the initial "Tax Matters Member"
                  ("TMM") of the Company under Section 6231 of the Code and the
                  Treasury Regulations thereunder. Each Member hereby consents
                  to such designation and agrees that upon the request of the
                  Company it will execute, certify, acknowledge, deliver, swear
                  to, file and record at the appropriate public offices such
                  documents as may be necessary or appropriate to evidence such
                  consent. Upon the resignation or bankruptcy of UAG, or upon
                  the failure of UAG to carry out the responsibilities of a TMM
                  in a timely fashion, a successor to serve in such capacity
                  shall be designated by vote of Members holding a majority of
                  the interests in the Company. The TMM may employ experienced
                  tax counsel to represent the Company in connection with any
                  audit or investigation of the Company by the Internal Revenue
                  Service ("IRS"), and in connection with all subsequent
                  administrative and judicial proceedings arising out of such
                  audit. The fees and expenses of such counsel shall be a
                  Company expense and shall be paid by the Company. Such counsel
                  shall be responsible for representing the Company; it

                                       20
<PAGE>

                  shall be the responsibility of the Members, at their own
                  expense, to employ tax counsel to represent their respective
                  separate interests. The TMM shall keep the Members informed of
                  all administrative and judicial proceedings as required by
                  Code Section 6223(g) and shall furnish to each Member a copy
                  of each notice or other communication received by the TMM from
                  the IRS except such notice or communication sent directly to
                  the Members by the IRS. All expenses incurred by the TMM in
                  serving in such capacity shall be Company expenses and shall
                  be paid by the Company.

         (b)      Notwithstanding the foregoing, prior to taking any of the
                  following actions the Company shall provide notice to the
                  Members and shall provide the Members with a reasonable period
                  of time in which to review and approve such action (which
                  approval shall not be unreasonably withheld):

                  (i)      Any written correspondence or filings and any
                           settlements in connection with any income tax audit
                           of the Company or any other tax audit involving
                           material taxes of the Company, including
                           administrative settlement and judicial review.

                  (ii)     Except as set forth in Section 9.1(a) and Section
                           9.2, the making of any tax election.

                  (iii)    Any adjustment to the capital accounts of the Members
                           in connection with Section 6.4(e) and Section 6.4(f).

                  (iv)     Approval of any income tax return of the Company and
                           any other tax return of the Company which reflects
                           the tax treatment of any item arising in connection
                           with actions described in Section 4.2(e)(i)(1),(4),
                           (5), (6) or (7) or 4.2(e)(ii) (2), (5) or (7).

                  (v)      Any allocation made pursuant to Section 7.2, and any
                           decision to revise, alter or otherwise modify the
                           methods of allocation set forth in Section 7 hereof.

9.2      RIGHT TO MAKE SECTION 754 ELECTION.

         The TMM may make an election under Section 754 of the Code to the
         extent requested by any Member. Each Member shall, upon request of the
         TMM, at such Member's cost, promptly supply the TMM information
         reasonably necessary to give effect to such election.

9.3      TAXATION AS PARTNERSHIP.

         The Company shall be treated as a partnership for United States federal
         and state income tax purposes and the Members agree not to take any
         action inconsistent with the Company's classification as a partnership
         for United States federal and State income tax purposes. By executing
         this Agreement, each of the Members hereby consents to, and the

                                       21
<PAGE>

         TMM shall, take any action necessary, including, without limitation,
         the execution of any forms and documents, for the Company to be treated
         as a partnership for United States federal and state income tax
         purposes.

                                   SECTION 10

                     BANKING; ACCOUNTING; BOOKS AND RECORDS

10.1     BANKING.

         All funds of the Company may be deposited in such bank, brokerage or
         money market accounts as shall be established by the Company.
         Withdrawals from and checks drawn on any such account shall be made
         upon the President's signature and/or such other signature or
         signatures as the Board may designate.

10.2     MAINTENANCE OF BOOKS AND RECORDS; ACCOUNTS AND ACCOUNTING METHOD;
         INSPECTION.

         (a)      the Company shall keep or cause to be kept at the address of
                  the Company (or at such other place as the Company shall
                  advise the Members in writing) full and accurate accounts of
                  the transactions of the Company in proper books and records of
                  account which shall set forth all information required by the
                  Delaware Act. Such books and records shall be maintained on
                  the basis of United States generally accepted accounting
                  principles, to the extent that such principles are not
                  inconsistent with the other provisions of this Agreement. Such
                  books and records shall be available, upon reasonable notice
                  to the Company, for inspection and copying at reasonable times
                  during business hours by a Member or its duly authorized
                  agents or representatives for any purpose reasonably related
                  to such Member's interest as a member in the Company.

         (b)      Employees, agents and representatives of UAG shall have full
                  access to the plants and properties of the Company and its
                  Subsidiaries for the purpose of inspecting such plants and
                  properties and the operations thereon during normal business
                  hours, in a manner that does not unduly disrupt the business
                  or operations of the Company and upon the prior written notice
                  to the President of the Company of any such inspection.

                                   SECTION 11

                               REPORTS TO MEMBERS

11.1     REPORTS TO CURRENT MEMBERS.

         (a)      The Company shall use its good faith efforts to prepare and
                  mail to each Member, within 90 days after the end of each
                  Fiscal Year and 45 days after the end of each quarter thereof
                  other than the last quarter of the Fiscal Year, a financial
                  report (upon request of UAG, audited in the case of a report
                  sent as of the end of a Fiscal Year and unaudited in the case
                  of a report sent as of the end of a quarter) setting

                                       22
<PAGE>

                  forth as of the end of such Fiscal Year or quarter (i) the
                  assets and liabilities of the Company as of the end of such
                  Fiscal Year or quarter, (ii) the income or loss of the Company
                  for such Fiscal Year or quarter and (iii) the changes in cash
                  flow during such Fiscal Year or quarter.

         (b)      The Company shall use its good faith efforts to prepare and
                  mail to each Member, within 100 days after the end of each
                  Fiscal Year a financial report setting forth as of the end of
                  such Fiscal Year such Member's closing Capital Account as of
                  the end of such Fiscal Year, together with a reconciliation of
                  the changes from the previous report.

11.2     TAX INFORMATION.

         (a)      No later than April 10, June 10, September 10 and December 10
                  of each Fiscal Year, the Company shall deliver to each Person
                  that was a Member at any time during the quarter in which or
                  immediately preceding which such date occurs a statement of
                  such Person's distributive share, if any, of items of income,
                  gain, loss, deduction and credit of the Company for such
                  quarter and such other information as may be reasonably
                  necessary for such Person to make its estimated tax payments.

         (b)      As soon as practicable after the end of the Fiscal Year, but
                  in no event later than 45 days after the end of the Fiscal
                  Year, the Company shall deliver to each Person that was a
                  Member at any time during such Fiscal Year a final statement
                  of such Person's reasonably determined distributive share, if
                  any, of items of income, gain, loss, deduction and credit of
                  the Company for such Fiscal Year and such other information as
                  may be reasonably necessary for such Person to complete its
                  tax returns (including copies of any tax returns that have
                  been filed by the Company).

         (c)      The Company shall provide each Member with a copy of any tax
                  return described in Section 9.1(b)(iv) hereof for such
                  Member's review at least twenty (20) business days before the
                  due date of such tax return.

11.3     ADDITIONAL INFORMATION.

         Upon the request of any Member, the Company shall, at the request of a
         Member, furnish such additional information about the Company and
         distributions from the Company reasonably related to such Member's
         interest in the Company. Without limiting the foregoing sentence, the
         Company agrees to use its good faith efforts to make available to any
         Member which accounts for its interest on the equity method (whether or
         not the Company is publicly reporting), such financial information as
         may be reasonably required by such Member, it being understood that
         such information will be the type of financial information that the
         Company would file with the Securities and Exchange Commission if the
         Company were subject to the periodic reporting requirements of the
         Exchange Act of 1934, as amended. The Company agrees to use its good
         faith efforts to provide such information to any such Member at a date
         which will allow such Member a reasonable

                                       23
<PAGE>

         period of time in which to incorporate such information into any
         filings to be made by such Member.

                                   SECTION 12

                   LIABILITY, EXCULPATION AND INDEMNIFICATION

12.1     LIABILITY.

         Except as otherwise provided herein or by the Delaware Act, the debts,
         obligations and liabilities of the Company, whether arising in
         contract, tort or otherwise, shall be solely the debts, obligations and
         liabilities of the Company, and no Covered Person shall be obligated
         personally for any such debt, obligation or liability of the Company
         solely by reason of being a Covered Person.

12.2     EXCULPATION.

         (a)      GENERALLY. No Covered Person shall be liable to the Company or
                  any Member for any act or omission taken or suffered by such
                  Covered Person in good faith and in the reasonable belief that
                  such act or omission is in or is not contrary to the best
                  interests of the Company and is within the scope of authority
                  granted to such Covered Person by this Agreement, provided
                  that such act or omission is not in material violation of this
                  Agreement and does not constitute Disabling Conduct by the
                  Covered Person. No Member shall be liable to the Company or
                  any Member for any action taken by any other Member.

         (b)      RELIANCE GENERALLY. A Covered Person shall incur no liability
                  in acting upon any signature or writing reasonably believed by
                  it to be genuine, and may rely on a certificate signed by an
                  executive officer of any Person in order to ascertain any fact
                  with respect to such Person or within such Person's knowledge
                  and may rely on an opinion of counsel selected by such Covered
                  Person with respect to legal matters, except to the extent
                  that such liability resulted from the Covered Person having
                  engaged in Disabling Conduct. Each Covered Person may act
                  directly or through its agents or attorneys. Each Covered
                  Person may consult with counsel, appraisers, engineers,
                  accountants and other skilled Persons of its choosing, and
                  shall not be liable for anything done, suffered or omitted in
                  good faith in reasonable reliance upon the advice of any of
                  such Persons, except to the extent that such Covered Person
                  engaged in Disabling Conduct. No Covered Person shall be
                  liable to the Company or any Member for any error of judgment
                  made in good faith by a responsible officer or officers of the
                  Covered Person, except to the extent that such liability
                  resulted from the Covered Person having engaged in Disabling
                  Conduct. Except as otherwise provided in this Section 12.2, no
                  Covered Person shall be liable to the Company or any Member
                  for any mistake of fact or judgment by the Covered Person in
                  conducting the affairs of the Company or otherwise acting in
                  respect of and within the scope of this Agreement, except to
                  the extent that such liability resulted from the Covered
                  Person having engaged in Disabling Conduct. No Covered Person
                  shall be liable for the return to any

                                       24
<PAGE>

                  Member of all or any portion of any Member's Capital Account
                  or Capital Contributions, except to the extent that such
                  liability resulted from the Covered Person having engaged in
                  Disabling Conduct.

         (c)      RELIANCE ON THIS AGREEMENT. To the extent that, at law or in
                  equity, a Covered Person has duties (including fiduciary
                  duties) and liabilities relating thereto to the Company or to
                  the Members, any Covered Person acting under this Agreement or
                  otherwise shall not be liable to the Company or to any Member
                  for its good faith reliance on the provisions of this
                  Agreement. The provisions of this Agreement, to the extent
                  that they restrict the duties and liabilities of a Covered
                  Person otherwise existing at law or in equity, are agreed by
                  the Members to replace such other duties and liabilities of
                  such Covered Person.

         (d)      STANDARD OF CARE. Whenever in this Agreement a Person is
                  permitted or required to make a decision (i) except the
                  Directors in connection with the discharge of their duties as
                  Members of the Board in its "sole and absolute discretion,"
                  "sole discretion," "discretion" or under a grant of similar
                  authority or latitude, the Person shall be entitled to
                  consider such interests and factors as it desires, including
                  its own interests, and shall have no duty or obligation to
                  give any consideration to any interest of or factors affecting
                  any other Member, the Company or any other Person, or (ii) in
                  its "good faith" or under another express standard, the Person
                  shall act under such express standard and shall not be subject
                  to any other or different standard imposed by this Agreement
                  or other applicable law.

12.3     INDEMNIFICATION.

         (a)      INDEMNIFICATION GENERALLY. The Company shall and hereby does,
                  to the fullest extent permitted by applicable law, indemnify,
                  hold harmless and release each Covered Person from and against
                  all claims, demands, liabilities, costs, expenses, damages,
                  losses, suits, proceedings and actions, whether judicial,
                  administrative, investigative or otherwise, of whatever
                  nature, known or unknown, liquidated or unliquidated
                  ("CLAIMS"), that may accrue to or be incurred by any Covered
                  Person, or in which any Covered Person may become involved, as
                  a party or otherwise, or with which any Covered Person may be
                  threatened, relating to or arising out of the business and
                  affairs of, or activities undertaken in connection with, the
                  Company, or otherwise relating to or arising out of this
                  Agreement, including, but not limited to, amounts paid in
                  satisfaction of judgments, in compromise or as fines or
                  penalties and counsel fees and expenses incurred in connection
                  with the preparation for or defense or disposition of any
                  investigation, action, suit, arbitration or other proceeding
                  (a "PROCEEDING"), whether civil or criminal (all of such
                  Claims and amounts covered by this Section 12.3. and all
                  expenses referred to in Section 12.3(c), are referred to as
                  "DAMAGES"), except to the extent that it shall have been
                  determined ultimately that such Damages arose from Disabling
                  Conduct of such Covered Person or that such Covered Person

                                       25
<PAGE>

                  committed a material breach of this Agreement. The termination
                  of any Proceeding by settlement shall not, of itself, create a
                  presumption that any Damages relating to such settlement arose
                  from a material violation of this Agreement by, or Disabling
                  Conduct of, any Covered Person.

         (b)      NO DIRECT MEMBER INDEMNITY. Members shall not be required
                  directly to indemnify any Covered Person.

         (c)      EXPENSES, ETC. Expenses incurred by a Covered Person in
                  defense or settlement of any Claim that may be subject to a
                  right of indemnification hereunder may be advanced by the
                  Company prior to the final disposition thereof upon receipt of
                  an agreement by or on behalf of the Covered Person to repay
                  such amount if it shall be determined ultimately that the
                  Covered Person is not entitled to be indemnified hereunder.
                  The right of any Covered Person to the indemnification
                  provided herein shall be cumulative with, and in addition to,
                  any and all rights to which such Covered Person may otherwise
                  be entitled by contract or as a matter of law or equity and
                  shall extend to such Covered Person's successors, assigns and
                  legal representatives.

         (d)      NOTICES OF CLAIMS, ETC. Promptly after receipt by a Covered
                  Person of notice of the commencement of any Proceeding, such
                  Covered Person shall, if a claim for indemnification in
                  respect thereof is to be made against the Company, give
                  written notice to the Company of the commencement of such
                  Proceeding, provided that the failure of any Covered Person to
                  give notice as provided herein shall not relieve the Company
                  of its obligations under this Section 12.3 except to the
                  extent that the Company is actually prejudiced by such failure
                  to give notice. In case any such Proceeding is brought against
                  a Covered Person (other than a derivative suit in right of the
                  Company), the Company will be entitled to participate in and
                  to assume the defense thereof to the extent that the Company
                  may wish, with counsel reasonably satisfactory to such Covered
                  Person. After notice from the Company to such Covered Person
                  of the Company's election to assume the defense thereof (and
                  corresponding expenses), the Company will not be liable for
                  expenses subsequently incurred by such Covered Person in
                  connection with the defense thereof. The Company will not
                  consent to entry of any judgment or enter into any settlement
                  that does not include as an unconditional term thereof the
                  giving by the claimant or plaintiff to such Covered Person of
                  a release from all liability in respect to such Claim.

         (e)      NO WAIVER. Nothing contained in this Section 12.3 shall
                  constitute a waiver by any Member of any right that it may
                  have against any party under United States federal or state
                  securities laws.

                                       26
<PAGE>

                                   SECTION 13

                         TRANSFER OF UNITS; WITHDRAWAL,
             BANKRUPTCY, DISSOLUTION; CERTAIN ADMISSIONS OF MEMBERS

13.1     ADMISSION, SUBSTITUTION AND WITHDRAWAL OF MEMBERS; ASSIGNMENT.

         (a)      GENERAL. Except as set forth in this Section 13, no Person may
                  be admitted to, and no Member may withdraw from, the Company
                  prior to the dissolution and winding up of the Company. No
                  Member shall sell, transfer, assign, convey, pledge, mortgage,
                  encumber, hypothecate or otherwise dispose of all or any part
                  of its interest in the Company (a "TRANSFER") without first
                  complying with the provisions of this Section 13.1.

         (b)      ADMISSION OF NEW MEMBERS AND ISSUANCE OF INTERESTS No person
                  shall be admitted as a new Member and the Company shall not
                  authorize the issuance of interest in the Company of any kind
                  that could or would entitle the recipient thereof to the
                  rights of a Member or that would cause (or entitle) such
                  person to receive an interest (other than collateral security
                  interests granted by the Company to secure its obligations) in
                  the assets or profits of the Company unless approved by a
                  Majority Board Vote as defined in Section 4.1(g).

         (c)      CONDITIONS TO TRANSFER. Any purported Transfer by a Member
                  pursuant to the terms of this Section 13 shall be subject to
                  the satisfaction of the following conditions:

                  (i)      the transferring Member or transferee shall undertake
                           to pay all reasonable expenses incurred by the
                           Company in connection therewith;

                  (ii)     the Company shall received from the transferring
                           Member a legal opinion, in form and substance
                           reasonably satisfactory to the nontransferring
                           Members, to the effect that the transfer will not
                           result (directly or indirectly) in (A) a termination
                           of the Company under any Section of the Code that
                           would require the non-transferring Members to
                           recognize gain under Section 731 of the Code, or (B)
                           treatment of the Company as an entity other than a
                           partnership for purposes of the Code; and

                  (iii)    the Company shall receive from the Person to whom
                           such Transfer is to be made (A) such documents,
                           instruments and certificates as may be requested by
                           the Company, pursuant to which such transferee shall
                           agree to be bound by this Agreement, (B) such other
                           documents, opinions, instruments and certificates as
                           the Company shall reasonably request and (C) a
                           counterpart of this Agreement executed by or on
                           behalf of such Person; and

                                       27
<PAGE>

         (d)      COOPERATION BY THE COMPANY. The Company shall provide
                  reasonable assistance to any Member at such Member's request
                  seeking to sell its Units in compliance with this Agreement,
                  provided that the Company shall not be required to provide any
                  confidential information to any prospective purchaser who has
                  not executed a confidentiality agreement in form reasonably
                  satisfactory to the Company. Any costs to the Company of
                  providing such assistance shall be paid by the Member seeking
                  to sell its Units.

         (e)      PROHIBITED TRANSFERS. No attempted Transfer shall be
                  recognized by the Company unless effected in accordance with
                  and as permitted by this Agreement.

         (f)      RIGHT OF FIRST REFUSAL. UAG shall have a right of first
                  refusal to purchase all of the Noto interest on the terms that
                  Noto offers such interest to a third party. UAG shall have
                  twenty (20) days after receipt of written notice from Noto
                  that it intends to sell its interest to exercise this right of
                  first refusal. If UAG fails to exercise its right, any
                  attempted Transfer of the Noto interest to a third party must
                  still meet the requirements of this Agreement to become
                  effective.

13.2     WITHDRAWAL.

         No Member shall have the right to withdraw from the Company and no
         Member shall take any action to accomplish its voluntary dissolution.

13.3     NOTO OPTION TO PURCHASE.

         For a period commencing as of the effective date of this Agreement and
         expiring on the twentieth (20th) anniversary of the effective date,
         Noto shall have the option to purchase up to, but no more than, Fifty
         Three Thousand Eight Hundred and Forty (53,840) Voting Units from UAG
         for the purchase price of Sixty Eight and 42/100 dollars ($68.42)per
         Voting Unit (the "Noto Option"). Noto may exercise this option in one
         or more installments. The intent of the Parties is that Noto shall have
         the option to purchase up to, but no more than, Twenty Percent (20%) of
         the Voting Units of the Company. If, prior to an exercise of the Noto
         Option, the Members make additional capital contributions to the
         Company and Noto contributes a percentage that is less than its
         Non-Voting Percentage Interest, then upon an exercise of the Noto
         Option, the option price shall be adjusted to include the differential
         between the amount of the actual capital contribution made by Noto and
         the amount of the capital contribution which would have been made by
         Noto had it contributed a percentage equal to its Non-Voting Percentage
         Interest. Noto shall exercise this option upon five (5) days written
         notice to UAG and the Company. Upon the exercise of the option provided
         for herein, Schedule B attached hereto shall be amended as soon as
         practicable to reflect the results of such election.

                                       28
<PAGE>

                                   SECTION 14

                   DISSOLUTION AND TERMINATION OF THE COMPANY

14.1     EVENTS CAUSING DISSOLUTION.

         (a)      DISSOLUTION EVENTS. There will be a dissolution of the Company
                  and its affairs shall be wound up upon the first to occur of
                  any of the following events:

                  (i)      the written consent of all Members;

                  (ii)     the death, retirement, resignation, expulsion,
                           bankruptcy or dissolution (any of the foregoing, a
                           "WITHDRAWAL") of any Member (in such capacity, the
                           "WITHDRAWING MEMBER") unless, within ninety days
                           after the occurrence of such an event Members holding
                           a majority of the Units of all of the remaining
                           Members agree in writing to continue the business of
                           the Company and to the appointment, if necessary or
                           desired, effective as of the date of such event, of
                           one or more new Members; or

                  (iii)    the entry of a decree of judicial dissolution under
                           Section 18-802 of the Delaware Act.

         (b)      If the remaining Members decide to continue the Company
                  pursuant only to Section 14.1(a)(ii), the Company shall inform
                  the Withdrawing Member of such decision by written notice
                  delivered within ninety (90) days of the occurrence of the
                  Withdrawal. If the Members so elect to continue the Company,
                  the Withdrawing Member shall no longer be a Member of the
                  Company and the Company (and/or the other Members) shall make
                  payment in cash in liquidation of the Withdrawing Member's
                  interest in the Company. Any such payment shall be equal to
                  the Withdrawing Member's capital account minus any costs, fees
                  or expenses of the Company and the non-withdrawing members
                  related to the Withdrawal.

14.2     LIQUIDATION.

         Upon dissolution of the Company, the Person or Persons approved as
         provided in Section 14.4(b) to carry out the winding up of the Company
         (in such capacity, the "LIQUIDATING TRUSTEE") and shall proceed,
         subject to the provisions herein, to liquidate the Company and apply
         the proceeds of such liquidation, or at the discretion of the Members
         to distribute Company assets, in the following order of priority:

         (a)      First, to creditors (including creditors that are also
                  Members) in satisfaction of debts and liabilities of the
                  Company, whether by payment or the making of reasonable
                  provision for payment (including any loans or advances that
                  may have been made by any of the Members to the Company), and
                  the expenses of liquidation, whether by payment or the making
                  of reasonable provision for payments, any such reasonable
                  reserves (which may be funded by a liquidating

                                       29
<PAGE>

                  trust) to be established by the Liquidating Trustee, as the
                  case may be, in amounts deemed by it to be reasonably
                  necessary for the payment of the Company's expenses,
                  liabilities and other obligations (whether fixed or
                  contingent); and

         (b)      Second, to the Members in proportion to, and to the extent of,
                  each Member's Capital Account, as such Capital Account has
                  been adjusted pursuant to Section 6.4, any remainder to be
                  distributed among the Members in accordance with their
                  respective Voting Percentage Interest; provided that, prior to
                  such distribution, Noto shall be entitled to exercise the
                  option referenced in Section 13.3, if such option is in
                  effect, in order to increase his Voting Percentage Interest up
                  to, but no more than Twenty Percent (20%)

14.3     DISTRIBUTIONS IN CASH OR IN KIND.

         (a)      Upon the dissolution of the Company, the Liquidating Trustee
                  shall use its good faith efforts to liquidate all of the
                  Company assets in an orderly manner and apply the proceeds of
                  such liquidation as set forth in Section 14.2, or if in the
                  good faith business judgment of the Liquidating Trustee a
                  Company asset should not be liquidated, the Liquidating
                  Trustee shall allocate, on the basis of the Value of any
                  Company assets not sold or otherwise disposed of, any
                  unrealized gain or loss based on such Value to the Members'
                  Capital Accounts as though the assets in question had been
                  sold on the date of distribution and, after giving effect to
                  any such adjustment, distribute said assets in accordance with
                  Section 14.2, provided that the Liquidating Trustee will in
                  good faith attempt to liquidate sufficient Company assets to
                  satisfy in cash (or make reasonable provision for) the debts
                  and liabilities referred to in paragraph First of Section
                  14.2.

14.4     TIME AND MANNER FOR LIQUIDATION, ETC.

         (a)      A reasonable time period shall be allowed for the orderly
                  winding up and liquidation of the assets of the Company and
                  the discharge of liabilities to creditors so as to enable the
                  Liquidating Trustee to seek to minimize potential losses upon
                  such liquidation. The provisions of this Agreement shall
                  remain in full force and effect during the period of winding
                  up and until the filing of a certificate of cancellation of
                  the Company with the Secretary of State of the State of
                  Delaware.

         (b)      In the event of a liquidation of the Company, the Members
                  shall jointly approve the Person to act as Liquidating Trustee
                  and shall be entitled to direct the manner and timing under
                  which such Liquidating Trustee shall proceed to liquidate the
                  Company. All Members shall be promptly informed of any
                  directions given by another Member to the Liquidating Trustee
                  and of the progress of the liquidation.

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<PAGE>

14.5     TERMINATION.

         Upon completion of the foregoing, the Liquidating Trustee shall
         execute, acknowledge and cause to be filed a certificate of
         cancellation of the Company with the Secretary of State of the State of
         Delaware.

14.6     CLAIMS OF THE MEMBERS.

         The Members and former Members shall, other than for a breach of this
         Agreement, gross negligence or willful misconduct, look solely to the
         Company's assets for the return of their Capital Contributions, and if
         the assets of the Company remaining after payment of or due provision
         for all debts, liabilities and obligations of the Company are
         insufficient to return such Capital Contributions, the Members and
         former Members shall have no recourse against any Member, any Manager
         or any Member's or Manager's Affiliates.

                                   SECTION 15

                                   DEFINITIONS

15.1     DEFINITIONS.

         Unless the context otherwise requires, the terms defined in this
         Section 15.1 shall, for the purposes of this Agreement, have the
         meanings herein specified.

         "ADJUSTED CAPITAL ACCOUNT DEFICIT" shall mean, with respect to any
         Member, the deficit balance, if any, in such Member's Capital Account
         as of the end of the relevant Fiscal Year after giving effect to the
         following adjustments: (a) credit to such Capital Account any amounts
         that such Member is obligated to restore pursuant to the penultimate
         sentences of Treasury Regulations Sections 1.704-2(g)(1) and
         1.704-2(i)(5); and (b) debit to such Capital Account the items
         described in Treasury Regulations Sections 1.704-1(b)(2)(ii)(d)(4), (5)
         and (6). This definition of Adjusted Capital Account Deficit is
         intended to comply with the provisions of Section 1.704-1(b)(2)(ii)(d)
         of the Treasury Regulations and shall be interpreted consistently
         therewith.

         "ADJUSTED NET CASH" means an amount that is reasonably determined by
         the Chief Financial Officer of United Auto Group, Inc. and the
         President of the Company.

         "AFFILIATE" of any entity or Person shall mean any other entity or
         person Controlling, Controlled by, or under Common Control with, such
         entity or Person.

         "AGREEMENT" shall mean this Limited Liability Company Agreement, as
         amended, modified, supplemented or restated from time to time.

         "ASSOCIATE" shall have the meaning ascribed to such term in Rule 12b-2
         of the Securities Exchange Act of 1934, as amended.

                                       31
<PAGE>

         "BUSINESS" is defined in the Recitals to this Agreement.

         "BUSINESS DAY" shall mean any day on which banks located in New York
         City are not required or authorized by law to remain closed.

         "CAPITAL ACCOUNT" shall mean, with respect to any Member, the account
         maintained for such Member in accordance with the provisions of Section
         6.4.

         "CAPITAL CONTRIBUTION" shall mean, with respect to any Member, the
         amount of money and the Gross Asset Value of property contributed by
         such Member to the Company pursuant to Article VI hereof and as set
         forth on Schedule B.

         "CERTIFICATE" shall mean the Company's Certificate of Formation and any
         and all amendments thereto and restatements thereof filed on behalf of
         the Company with the office of the Secretary of State of the State of
         Delaware pursuant to the Delaware Act.

         "CLAIMS" shall have the meaning set forth in Section 12.3(a).

         "CODE" shall mean the Internal Revenue Code of 1986, as amended.

         "COMPANY MINIMUM GAIN" shall have the meaning of "partnership minimum
         gain" set forth in Treasury Regulations Sections 1.704-2(b)(2) and
         1.704-2(d).

         "CONTROL" (including the terms "Controlling", "Controlled by" and
         "under common Control with") means the possession, directly or
         indirectly, or the power to direct or cause the direction of the
         management and policies of a Person, whether through the ownership of
         securities, by contract or otherwise.

         "COVERED PERSON" shall mean a Member, a Manager, a Director, an
         Officer, any Person that directly or indirectly, through one or more
         intermediaries, controls, is controlled by, or is under common control
         with the Company, a Member or a Manager; any officers, directors,
         shareholders, controlling Persons, partners, employees, representatives
         or agents of a Member or a Manager, or their respective Affiliates; or
         any officer, employee or agent of the Company or its Affiliates; or any
         Person who was, at the time of the act or omission in question, such a
         Person.

         "DAMAGES" shall have the meaning set forth in Section 12.3(a).

         "DEALERSHIP OPERATING COMPANIES" shall mean UAG Fairfield CM, LLC, UAG
         Fairfield CA, LLC and UAG Fairfield CP, LLC and all their successors.

         "DELAWARE ACT" shall mean the Delaware Limited Liability Company Act, 6
         Del. C. " 18-101, et seq., as amended from time to time.

                                       32
<PAGE>

         "DEPRECIATION" shall mean, for each Fiscal Year, an amount equal to the
         depreciation, amortization, or other cost recovery deduction allowable
         with respect to an asset for such Fiscal Year, except that if the Gross
         Asset Value of an asset differs from its adjusted basis for federal
         income tax purposes at the beginning of such Fiscal Year, Depreciation
         shall be an amount which bears the same ratio to such beginning Gross
         Asset Value as the federal income tax depreciation, amortization, or
         other cost recovery deduction for such Fiscal Year bears to such
         beginning adjusted tax basis; provided, however, that if the adjusted
         basis for federal income tax purposes of an asset at the beginning of
         such Fiscal Year is zero, Depreciation shall be determined with
         reference to such beginning Gross Asset Value using any reasonable
         method selected by the Member.

         "DIRECTORS" shall have the meaning set forth in Section 4.1(a).

         "DISABLING CONDUCT" shall mean conduct that constitutes fraud, a
         willful violation of this Agreement or law, gross negligence or
         reckless disregard of duty in the conduct of the duties of the Person
         referred to which results in a material loss to the Company.

         "EXECUTIVE OFFICER" shall mean the President of the Company and all
         officers and employees of the Company who directly report to, or are
         directly supervised by, the President.

         "FINANCIAL STATEMENTS" with respect to the Company shall mean the
         financial statements of the Company that reflect the assets,
         liabilities, retained capital, operations and cash flows of the
         Company.

         "FISCAL YEAR" shall have the meaning set forth in Section 5.4.

         "FRANCHISE AGREEMENTS" means, with respect to the Dealership Operating
         Companies, the agreements entered into with each respective
         manufacturer which serve to establish the rights and obligations of the
         Dealership Operating Companies and manufacturers to each other with
         respect to the sale and service of new motor vehicles.

         "GROSS ASSET VALUE" means, with respect to any asset, the asset's
         adjusted basis for federal income tax purposes, except as follows:

                  (a)      The initial Gross Asset Value of any asset
                           contributed by a Member to the Company shall be the
                           fair market value of such asset at the time it is
                           accepted by the Company, unreduced by any liability
                           secured by such asset, as determined by the Members.

                  (b)      The Gross Asset Values of all Company assets shall be
                           adjusted to equal their respective fair market
                           values, unreduced by any liabilities secured by such
                           assets, as determined by the Members as of the
                           following times: (i) the acquisition of an additional
                           interest in the Company by any new or existing Member
                           in exchange for more than a de minimis Capital

                                       33
<PAGE>

                           Contribution; (ii) the distribution by the Company to
                           a Member of more than a de minimis amount of Property
                           as consideration for an interest in the Company; and
                           (iii) the liquidation of the Company within the
                           meaning of Treasury Regulations Section
                           1.704-1(b)(2)(ii)(g).

                  (c)      The Gross Asset Values of any Company asset
                           distributed to any Member shall be adjusted to equal
                           the fair market value of such asset, unreduced by any
                           liability secured by such asset, on the date of
                           distribution as determined by the Members.

                  (d)      The Gross Asset Values of the Company assets shall be
                           increased (or decreased) to reflect any adjustments
                           to the adjusted basis of such assets pursuant to Code
                           Section 734(b) or Code Section 743(b); but only to
                           the extent that such adjustments are taken into
                           account in determining Capital Accounts pursuant to
                           Treasury Regulations Section 1.704-1(b)(2)(iv)(m) and
                           paragraph (vi) of the definition of "Net Profits" and
                           "Net Losses".

                           If the Gross Asset Value of an asset has been
                           determined or adjusted pursuant to paragraphs (a),
                           (b) or (d) of this definition, such Gross Asset Value
                           shall thereafter be adjusted by the Depreciation
                           taken into account with respect to such asset for
                           purposes of computing Net Profits and Net Losses.

         "LIQUIDATING TRUSTEE" shall have the meaning set forth in Section 14.2.

         "MAJORITY IN INTEREST OF THE MEMBERS" shall mean the written consent,
         or vote at a duly called meeting of Members, of Members holding a
         majority of Units held by all Members.

         "MANAGER" shall mean a "manager" (within the meaning of the Delaware
         Act) of the Company.

         "MEMBER" shall mean any Person named as a member of the Company on
         Schedule A hereto or admitted subsequently as an additional Member
         pursuant to the provisions of this Agreement, in such Person's capacity
         as a member of the Company, and "Members" shall mean two or more of
         such Persons when acting in their capacities as members of the Company.

         "MEMBER MINIMUM GAIN" shall mean a Member's share of Company Minimum
         Gain as set forth in Treasury Regulations Section 1.704-2(g) and member
         nonrecourse debt minimum gain as described in Treasury Regulations
         Section 1.704-2(i).

         "MEMBER NONRECOURSE DEBT" shall have the meaning of "partner
         nonrecourse debt" as set forth in Treasury Regulations Section
         1.704-2(b)(4).

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<PAGE>

         "MEMBER NONRECOURSE DEDUCTIONS" shall have the meaning of "partner
         nonrecourse deductions" set forth in Treasury Regulations Section
         1.704-2(i).

         "NONRECOURSE DEDUCTIONS" shall have the meaning set forth in Treasury
         Regulations Section 1.704-2(b)(1).

         "NET PROFIT" or "NET LOSS" shall mean, for each Fiscal Year, an amount
         equal to the Company's taxable income or loss for such Fiscal Year,
         determined in accordance with Code Section 703(a) (for this purpose,
         all items of income, gain, loss, or deduction required to be stated
         separately pursuant to Code Section 703(a)(1) shall be included in
         taxable income or loss), with the following adjustments:

                  (a)      any income of the Company that is exempt from federal
                           income tax and not otherwise taken into account in
                           computing Net Profits or Net Losses pursuant to this
                           definition shall be added to such taxable income or
                           loss;

                  (b)      any expenditures of the Company described in Code
                           Section 705(a)(2)(B) or treated as Code Section
                           705(a)(2)(B) expenditures pursuant to Treasury
                           Regulations Section 1.704-1(b)(2)(iv)(i), and not
                           otherwise taken into account in computing Net Profits
                           or Net Losses pursuant to this definition shall be
                           subtracted from such taxable income or loss;

                  (c)      in the event the Gross Asset Value of any Company
                           asset is adjusted pursuant to paragraphs (b) or (c)
                           of the definition of "Gross Asset Value," the amount
                           of such adjustment shall be taken into account as
                           gain or loss from the disposition of such asset for
                           purposes of computing Net Profits or Net Losses;

                  (d)      gain or loss resulting from any disposition of
                           property with respect to which gain or loss is
                           recognized for federal income tax purposes shall be
                           computed by reference to the Gross Asset Value of
                           property disposed of, notwithstanding that the
                           adjusted tax basis of such property differs from its
                           Gross Asset Value;

                   (e)     in lieu of depreciation, amortization, and other cost
                           recovery deductions taken into account in computing
                           such taxable income or loss there shall be taken into
                           account Depreciation with respect to each asset of
                           the Company for such Fiscal Year, computed in
                           accordance with the definition of "Depreciation"
                           above;

                  (f)      to the extent an adjustment to the adjusted tax basis
                           of any Company asset pursuant to Code Section 734(b)
                           or Code Section 743(b) is required pursuant to
                           Treasury Regulations 1.704-1(b)(2)(iv)(m)(4) to be
                           taken into account in determining Capital Accounts as
                           a result of a distribution other than in complete
                           liquidation of a Member's Interest, the amount of
                           such

                                       35
<PAGE>

                           adjustment shall be treated as an item of gain (if
                           the adjustment increases the basis of the asset) or
                           loss (if the adjustment decreases the basis of the
                           asset) from the disposition of the asset and shall be
                           taken into account for purposes of computing Net
                           Profits or Net Losses; and

                  (g)      notwithstanding any other provision of this
                           definition, any items which are specially allocated
                           pursuant to Section 7.2(a) of this Agreement shall
                           not be taken into account in computing Net Profits or
                           Net Losses.

                  The amounts of the items of Company income, gain, loss, or
                  deduction available to be specially allocated pursuant to
                  Sections 7.2(a) hereof shall be determined by applying rules
                  analogous to those set forth in paragraphs (a) through (f)
                  above.

         "NON-VOTING PERCENTAGE INTEREST" shall mean the percentage of the total
         Non-Voting Units held by a Member.

         "NON-VOTING UNITS" shall mean the class of Units for which the holder
         thereof is not entitled to vote for or against matters submitted to a
         vote of the Members in accordance with this Agreement.

         "OFFICER" shall have the meaning set forth in Section 4.2(a).

         "PERIOD" shall mean, for the first period, the period commencing on the
         date of this Agreement and ending on the next Adjustment Date. All
         succeeding Periods shall commence on the day after an Adjustment Date
         and end on the next Adjustment Date.

         "PERSON" shall mean any individual, corporation, association,
         partnership (general or limited), joint venture, trust, joint-stock
         company, estate, limited liability company, unincorporated organization
         or other legal entity or organization.

         "PROCEEDING" shall have the meaning set forth in Section 12.3(a).

         "SECRETARY" shall mean the person or persons duly appointed as
         Secretary of the Company.

         "SUBSIDIARY" of any Person shall mean a corporation or other entity a
         majority of whose capital stock with voting power or the majority
         ownership interest of which is at the time owned or controlled,
         directly or indirectly, by such Person.

         "TMM" shall have the meaning set forth in Section 9.1(a).

         "TRANSFER" shall have the meaning set forth in Section 13.1(a).

         "TREASURER" shall mean the person or persons duly appointed as
         Treasurer of the Company.

                                       36
<PAGE>

         "TREASURY REGULATIONS" shall mean the Income Tax Regulations, including
         Temporary Regulations, promulgated under the Code, as the same may be
         amended hereafter from time to time (including corresponding provisions
         of succeeding Income Tax Regulations).

         "UNITS" shall mean the total limited liability company interests of the
         Company, which shall be comprised of Voting Units and Non-Voting Units
         in accordance with this Agreement. The number of Units, Voting Units
         and Non-Voting Units authorized to be issued and outstanding is
         specified in Schedule A, as amended from time to time in accordance
         with this Agreement.

         "VOTING UNITS" shall mean the class of Units for which the holder
         thereof is entitled to vote for or against matters submitted to a vote
         of the Members in accordance with this Agreement.

         "VOTING PERCENTAGE INTEREST" shall mean the percentage of the total
         Voting Units held by a Member.

         "WITHHELD AMOUNT" shall have the meaning set forth in Section 7.4(c).

                                   SECTION 16

                           AMENDMENTS; MERGER OR SALE

16.1     AMENDMENTS GENERALLY.

         Notwithstanding any other provision of this Agreement, the terms of
         this Agreement shall not be amended except in a writing signed by all
         Members, provided that, without the consent of any of the Members, the
         Company:

         (i)      may enter into agreements with Persons who are transferees of
                  the interests in the Company of Members, pursuant to the terms
                  of this Agreement, providing in substance that such Persons
                  will be bound by this Agreement; and

         (ii)     may amend this Agreement as may be required to implement (A)
                  transfers of interests of Members or (B) any admission of new
                  Members.

16.2     MERGER OR SALE.

         The Company may merge with, or consolidate into, a Delaware limited
         liability company or another business entity (as defined in Section
         18-209(a) of the Delaware Act) or may sell all or substantially all of
         its assets only upon the approval of the Company and all Members of the
         Company.

                                       37
<PAGE>

                                   SECTION 17

                            MISCELLANEOUS PROVISIONS

17.1     NOTICES.

         Each notice relating to this Agreement shall be in writing and shall be
         delivered (a) in person, by registered or certified mail, private
         courier or (b) by telecopy or other facsimile transmission, confirmed
         by telephone to an executive officer of the recipient. In addition, all
         notices to any Member shall be addressed to such Member at their
         respective addresses set forth on Schedule A or at such other address
         as the Member may have designated by notice in writing. Any Member may
         designate a new address by notice to that effect given to the Company.
         The Company may designate a new address by notice to that effect given
         to each Member. Unless otherwise specifically provided in this
         Agreement, a notice given in accordance with the foregoing clause (a)
         shall be deemed to have been effectively given when mailed by
         registered or certified mail, return receipt requested, to the proper
         address, or when delivered in person. Any notice to the Company or to a
         Member by telecopy or other facsimile transmission shall be deemed to
         be given when sent and confirmed by telephone in accordance with the
         foregoing clause (b).

17.2     COUNTERPARTS.

         This Agreement may be executed in any number of counterparts, each of
         which shall be deemed an original and all of which taken together shall
         constitute a single agreement.

17.3     TABLE OF CONTENTS AND HEADINGS.

         The table of contents and the headings and subheadings of the sections
         of this Agreement are inserted for convenience and identification only
         and are in no way intended to describe, interpret, define or limit the
         scope, extent or intent of this Agreement or any provision thereof.

17.4     SUCCESSORS AND ASSIGNS; ASSIGNMENT.

         This Agreement shall inure to the benefit of the Members and the
         Covered Persons, and shall be binding upon the parties, and their
         respective successors and permitted assigns.

17.5     SEVERABILITY.

         Every provision of this Agreement is intended to be severable. If any
         term or provision of this Agreement is illegal or invalid for any
         reason whatsoever, such term or provision will be enforced to the
         maximum extent permitted by law and, in any event, such illegality or
         invalidity shall not affect the validity of the remainder of the
         Agreement.

17.6     NON-WAIVER.

         No provision of this Agreement shall be deemed to have been waived
         except if the giving of such waiver is contained in a written notice
         given to the party claiming such waiver and no such waiver shall be
         deemed to be a waiver of any other or further obligation or liability
         of the party or parties in whose favor the waiver was given.

                                       38
<PAGE>

17.7     APPLICABLE LAW.

         This agreement and the rights and obligations of the parties hereunder
         shall be interpreted and enforced in accordance with and governed by
         the laws of the state of Delaware, and all rights and remedies shall be
         governed by such laws without regard to principles of conflict of laws.

17.8     WAIVER OF JURY TRIAL.

         Each party to this Agreement waives to the fullest extent permitted by
         applicable law any right it may have to a trial by jury in respect of
         any action, suit or proceeding arising out of or relating to this
         Agreement.

17.9     SURVIVAL OF CERTAIN PROVISIONS.

         The obligations of each Member pursuant to Sections 6.5 and 12.3 shall
         survive the termination or expiration of this Agreement and the
         winding-up, liquidation and dissolution of the Company.

17.10    LIMITATION ON DAMAGES; LEGAL DISPUTES.

         (a)      In no event will any party to this Agreement be liable to any
                  other party for special, indirect, punitive or incidental
                  damages, or any other consequential damages except for lost
                  profits and lost savings, even if such party has been advised
                  of the possibility of such damages resulting from the breach
                  by it of any of its obligations hereunder or from the use of
                  any confidential or other information.

         (b)      Subject to the limitations of subsection (a), immediately
                  above, the rights and remedies of the parties under this
                  Agreement are cumulative and are not exclusive of any rights
                  or remedies which the parties would otherwise have for
                  equitable relief, including the remedies of specific
                  performance and injunction.

17.11    WAIVER OF PARTITION.

         Except as may otherwise be provided by law in connection with the
         winding-up, liquidation and dissolution of the Company, each Member
         hereby irrevocably waives any and all rights that it may have to
         maintain an action for partition of any of the Company's property.

17.12    ENTIRE AGREEMENT.

         This Agreement and the Transaction Agreement and agreements executed in
         connection therewith constitute the entire agreement among the Members
         with respect to the subject matter hereof, and supersede any prior
         agreement or understanding among them with respect to such subject
         matter.

                                       39
<PAGE>

17.13    FURTHER ACTIONS.

         Each Member shall execute and deliver such other certificates,
         agreements and documents, and take such other actions, as may
         reasonably be requested by the Company in connection with the formation
         of the Company and the achievement of its purposes, including, without
         limitation all such agreements, certificates, tax statements and other
         documents as may be required to be filed in respect of the Company.

17.14    NO PARTNERSHIP.

         Nothing contained in this Agreement shall be deemed or construed to
         make any Member partners or joint venturers with each other, for any
         purposes other than for federal and state tax purposes. The only
         business association to be formed by the Members will be the Company,
         which will be a limited liability company under Delaware law, to be
         organized pursuant to this Agreement. The Company shall not be a
         general partnership, a limited partnership or a joint venture, and no
         Member shall be considered a partner or joint venturer of or with any
         other Member for any purposes other than for federal and state tax
         purposes.
         Units

IN WITNESS WHEREOF, the undersigned have duly executed this Limited Liability
Company Agreement of UAG CONNECTICUT I, LLC on the 1st day of April, 2003 and
made effective as of March 1, 2001.

                                 UAG CONNECTICUT, LLC

                                 BY:  /S/ ROBERT H. KURNICK, JR.
                                      NAME:  ROBERT H. KURNICK, JR.
                                      TITLE: ASSISTANT SECRETARY

                                 NOTO HOLDINGS LLC

                                 BY:  /S/ LUCIO A. NOTO
                                      NAME:  LUCIO A. NOTO
                                      TITLE:  MEMBER

                                       40
<PAGE>

                                                                      SCHEDULE A

                                      UNITS

o        Number of Units authorized, issued and outstanding:
                                                 five hundred thousand (500,000)

o        Number of Voting Units authorized, issued and outstanding:
                                                 four hundred thousand (400,000)

o        Number of Non-Voting Units authorized, issued and outstanding:
                                                  one hundred thousand (100,000)

                                       41
<PAGE>
                                                                      Schedule B

                               MEMBER INFORMATION

<TABLE>
<CAPTION>
                                                                           Voting                               Non-Voting
                                         Capital           Voting         Percentage          Non-Voting        Percentage
           Name/Address                Contribution         Units          Interest             Units            Interest
----------------------------------- ------------------- -------------- ------------------- ---------------- -------------------
<S>                                    <C>                 <C>               <C>               <C>                 <C>
UAG Connecticut, LLC
2555 Telegraph Road                    $25,578,000         373,840           93.46%            80,000              80%
Bloomfield Hills, MI
48302-0954
----------------------------------- ------------------- -------------- ------------------- ---------------- -------------------
Noto Holdings LLC
342 West Putnam Ave                                                          6.54%             20,000              20%
Greenwich, CT                          1,791,000(1)        26,160
06830
----------------------------------- ------------------- -------------- ------------------- ---------------- -------------------
TOTAL                                  $ 27,369,000        400,000            100%             100,000             100%
----------------------------------- ------------------- -------------- ------------------- ---------------- -------------------
</TABLE>

(1) $1,003,800 contributed in cash at closing and $788,000 credited from
earnings that would otherwise have been distributed had the transaction closed
on March 1, 2001.

                                       42
<PAGE>
                                                                      SCHEDULE C

                                INITIAL DIRECTORS

<TABLE>
<S>                                                             <C>
Robert H. Kurnick, Jr.
-------------------------------------------------------------- -----------------------------------------------------------
James R. Davidson
-------------------------------------------------------------- -----------------------------------------------------------
Richard S. Koppelman
-------------------------------------------------------------- -----------------------------------------------------------
</TABLE>
                                INITIAL DIRECTORS
<TABLE>
<S>                                                             <C>
Chairman                                                       Samuel X. DiFeo
-------------------------------------------------------------- -----------------------------------------------------------
President                                                      A. Andrew Shapiro
-------------------------------------------------------------- -----------------------------------------------------------
Vice President                                                 R. Whitfield Ramonat
-------------------------------------------------------------- -----------------------------------------------------------
Secretary/Treasurer                                            Scott Carlsson
-------------------------------------------------------------- -----------------------------------------------------------
Assistant Treasurer                                            James R. Davidson
-------------------------------------------------------------- -----------------------------------------------------------
Assistant Secretary                                            Robert H. Kurnick, Jr.
-------------------------------------------------------------- -----------------------------------------------------------
Assistant Secretary                                            Maggie Feher
-------------------------------------------------------------- -----------------------------------------------------------
</TABLE>

                                       43

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