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                                                                   EXHIBIT 10.26

                              DRIVEWAY CORPORATION

                           INDEMNIFICATION AGREEMENT

     This Indemnification Agreement ("Agreement") is effective as of March 13,
2000 by and between Driveway Corporation, a Delaware corporation (the
"Corporation"), and _______________ ("Indemnitee").

     WHEREAS, the Corporation desires to attract and retain the services of
highly qualified individuals, such as Indemnitee, to serve the Corporation and
its related entities;

     WHEREAS, in order to induce Indemnitee to continue to provide services to
the Corporation, the Corporation wishes to provide for the indemnification of,
and the advancement of expenses to, Indemnitee to the maximum extent permitted
by law;

     WHEREAS, the Corporation and Indemnitee recognize the continued difficulty
in obtaining liability insurance for the Corporation's directors, officers,
employees, agents and fiduciaries, the significant increases in the cost of such
insurance and the general reductions in the coverage of such insurance;

     WHEREAS, the Corporation and Indemnitee further recognize the substantial
increase in corporate litigation in general, subjecting directors, officers,
employees, agents and fiduciaries to expensive litigation risks at the same time
as the availability and coverage of liability insurance has been severely
limited; and

     WHEREAS, in view of the considerations set forth above, the Corporation
desires that Indemnitee shall be indemnified and advanced expenses by the
Corporation as set forth herein;

     NOW, THEREFORE, the Corporation and Indemnitee hereby agree as set forth
below.

     1.     Certain Definitions.
            -------------------

            (a)    "Change in Control" shall mean, and shall be deemed to have
occurred if, on or after the date of this Agreement, (i) any "person" (as such
term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934,
as amended), other than a trustee or other fiduciary holding securities under an
employee benefit plan of the Corporation acting in such capacity or a
corporation owned directly or indirectly by the stockholders of the Corporation
in substantially the same proportions as their ownership of stock of the
Corporation, becomes the "beneficial owner" (as defined in Rule 13d-3 under said
Act), directly or indirectly, of securities of the Corporation representing more
than 50% of the total voting power represented by the Corporation's then
outstanding Voting Securities, (ii) during any period of two consecutive years,
individuals who at the beginning of such period constitute the Board of
Directors of the Corporation and any new director whose election by the Board of
Directors or nomination for election by the Corporation's stockholders was
approved by a vote of at least two thirds (2/3) of the directors then still in
office who either were directors at the beginning of the period or whose
election or nomination for election
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was previously so approved, cease for any reason to constitute a majority
thereof, or (iii) the stockholders of the Corporation approve a merger or
consolidation of the Corporation with any other corporation other than a merger
or consolidation which would result in the Voting Securities of the Corporation
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into Voting Securities of the
surviving entity) at least 80% of the total voting power represented by the
Voting Securities of the Corporation or such surviving entity outstanding
immediately after such merger or consolidation, or the stockholders of the
Corporation approve a plan of complete liquidation of the Corporation or an
agreement for the sale or disposition by the Corporation of (in one transaction
or a series of related transactions) all or substantially all of the
Corporation's assets.

            (b)    "Claim" shall mean with respect to a Covered Event: any
threatened, pending or completed action, suit, proceeding or alternative dispute
resolution mechanism, or any hearing, inquiry or investigation that Indemnitee
in good faith believes might lead to the institution of any such action, suit,
proceeding or alternative dispute resolution mechanism, whether civil, criminal,
administrative, investigative or other.

            (c)    References to the "Corporation" shall include, in addition to
Driveway Corporation, any constituent corporation (including any constituent of
a constituent) absorbed in a consolidation or merger to which Driveway
Corporation (or any of its wholly owned subsidiaries) is a party which, if its
separate existence had continued, would have had power and authority to
indemnify its directors, officers, employees, agents or fiduciaries, so that if
Indemnitee is or was a director, officer, employee, agent or fiduciary of such
constituent corporation, or is or was serving at the request of such constituent
corporation as a director, officer, employee, agent or fiduciary of another
corporation, partnership, joint venture, employee benefit plan, trust or other
enterprise, Indemnitee shall stand in the same position under the provisions of
this Agreement with respect to the resulting or surviving corporation as
Indemnitee would have with respect to such constituent corporation if its
separate existence had continued.

            (d)    "Covered Event" shall mean any event or occurrence related to
the fact that Indemnitee is or was a director, officer, employee, agent or
fiduciary of the Corporation, or any subsidiary of the Corporation, or is or was
serving at the request of the Corporation as a director, officer, employee,
agent or fiduciary of another corporation, partnership, joint venture, trust or
other enterprise, or by reason of any action or inaction on the part of
Indemnitee while serving in such capacity.

            (e)    "Expenses" shall mean any and all expenses (including
attorneys' fees and all other costs, expenses and obligations incurred in
connection with investigating, defending, being a witness in or participating in
(including on appeal), or preparing to defend, to be a witness in or to
participate in, any action, suit, proceeding, alternative dispute resolution
mechanism, hearing, inquiry or investigation), judgments, fines, penalties and
amounts paid in settlement (if such settlement is approved in advance by the
Corporation, which approval shall not be unreasonably withheld) of any Claim and
any federal, state, local or foreign taxes imposed on the Indemnitee as a result
of the actual or deemed receipt of any payments under this Agreement.

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            (f)    "Expense Advance" shall mean a payment to Indemnitee pursuant
to Section 3 of Expenses in advance of the settlement of or final judgement in
any action, suit, proceeding or alternative dispute resolution mechanism,
hearing, inquiry or investigation which constitutes a Claim.

            (g)    "Independent Legal Counsel" shall mean an attorney or firm of
attorneys, selected in accordance with the provisions of Section 2(d) hereof,
who shall not have otherwise performed services for the Corporation or
Indemnitee within the last three years (other than with respect to matters
concerning the rights of Indemnitee under this Agreement, or of other
Indemnitees under similar indemnity agreements).

            (h)    References to "other enterprises" shall include employee
benefit plans; references to "fines" shall include any excise taxes assessed on
Indemnitee with respect to an employee benefit plan; and references to "serving
at the request of the Corporation" shall include any service as a director,
officer, employee, agent or fiduciary of the Corporation which imposes duties
on, or involves services by, such director, officer, employee, agent or
fiduciary with respect to an employee benefit plan, its participants or its
beneficiaries; and if Indemnitee acted in good faith and in a manner Indemnitee
reasonably believed to be in the interest of the participants and beneficiaries
of an employee benefit plan, Indemnitee shall be deemed to have acted in a
manner "not opposed to the best interests of the Corporation" as referred to in
this Agreement.

            (i)    "Reviewing Party" shall mean, subject to the provisions of
Section 2(d), any person or body appointed by the Board of Directors in
accordance with applicable law to review the Corporation's obligations hereunder
and under applicable law, which may include a member or members of the
Corporation's Board of Directors, Independent Legal Counsel or any other person
or body not a party to the particular Claim for which Indemnitee is seeking
indemnification.

            (j)    "Section" refers to a section of this Agreement unless
otherwise indicated.

            (k)    "Voting Securities" shall mean any securities of the
Corporation that vote generally in the election of directors.

     2.     Indemnification.
            ---------------

            (a)    Indemnification of Expenses. Subject to the provisions of
                   ---------------------------
Section 2(b) below, the Corporation shall indemnify Indemnitee for Expenses to
the fullest extent permitted by law if Indemnitee was or is or becomes a party
to or witness or other participant in, or is threatened to be made a party to or
witness or other participant in, any Claim (whether by reason of or arising in
part out of a Covered Event), including all interest, assessments and other
charges paid or payable in connection with or in respect of such Expenses.

            (b)    Review of Indemnification Obligations. Notwithstanding the
                   -------------------------------------
foregoing, in the event any Reviewing Party shall have determined (in a written
opinion, in any case in which Independent Legal Counsel is the Reviewing Party)
that Indemnitee is not entitled to be indemnified hereunder under applicable
law, (i) the Corporation shall have no further obligation under

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Section 2(a) to make any payments to Indemnitee not made prior to such
determination by such Reviewing Party, and (ii) the Corporation shall be
entitled to be reimbursed by Indemnitee (who hereby agrees to reimburse the
Corporation) for all Expenses theretofore paid to Indemnitee to which Indemnitee
is not entitled hereunder under applicable law; provided, however, that if
                                                --------  -------
Indemnitee has commenced or thereafter commences legal proceedings in a court of
competent jurisdiction to secure a determination that Indemnitee is entitled to
be indemnified hereunder under applicable law, any determination made by any
Reviewing Party that Indemnitee is not entitled to be indemnified hereunder
under applicable law shall not be binding and Indemnitee shall not be required
to reimburse the Corporation for any Expenses theretofore paid in indemnifying
Indemnitee until a final judicial determination is made with respect thereto (as
to which all rights of appeal therefrom have been exhausted or lapsed).
Indemnitee's obligation to reimburse the Corporation for any Expenses shall be
unsecured and no interest shall be charged thereon.

            (c)    Indemnitee Rights on Unfavorable Determination; Binding
                   -------------------------------------------------------
Effect. If any Reviewing Party determines that Indemnitee substantively is
------
not entitled to be indemnified hereunder in whole or in part under applicable
law, Indemnitee shall have the right to commence litigation seeking an initial
determination by the court or challenging any such determination by such
Reviewing Party or any aspect thereof, including the legal or factual bases
therefor, and, subject to the provisions of Section 15, the Corporation hereby
consents to service of process and to appear in any such proceeding. Absent such
litigation, any determination by any Reviewing Party shall be conclusive and
binding on the Corporation and Indemnitee.

            (d)    Selection of Reviewing Party; Change in Control.  If there
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has not been a Change in Control, any Reviewing Party shall be selected by the
Board of Directors, and if there has been such a Change in Control (other than a
Change in Control which has been approved by a majority of the Corporation's
Board of Directors who were directors immediately prior to such Change in
Control), any Reviewing Party with respect to all matters thereafter arising
concerning the rights of Indemnitee to indemnification of Expenses under this
Agreement or any other agreement or under the Corporation's Certificate of
Incorporation or Bylaws as now or hereafter in effect, or under any other
applicable law, if desired by Indemnitee, shall be Independent Legal Counsel
selected by Indemnitee and approved by the Corporation (which approval shall not
be unreasonably withheld). Such counsel, among other things, shall render its
written opinion to the Corporation and Indemnitee as to whether and to what
extent Indemnitee would be entitled to be indemnified hereunder under applicable
law and the Corporation agrees to abide by such opinion. The Corporation agrees
to pay the reasonable fees of the Independent Legal Counsel referred to above
and to indemnify fully such counsel against any and all expenses (including
attorneys' fees), claims, liabilities and damages arising out of or relating to
this Agreement or its engagement pursuant hereto. Notwithstanding any other
provision of this Agreement, the Corporation shall not be required to pay
Expenses of more than one Independent Legal Counsel in connection with all
matters concerning a single Indemnitee, and such Independent Legal Counsel shall
be the Independent Legal Counsel for any or all other Indemnitees unless (i) the
Corporation otherwise determines or (ii) any Indemnitee shall provide a written
statement setting forth in detail a reasonable objection to such Independent
Legal Counsel representing other Indemnitees.

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            (e)    Mandatory Payment of Expenses. Notwithstanding any other
                   -----------------------------
provision of this Agreement other than Section 10 hereof, to the extent that
Indemnitee has been successful on the merits or otherwise, including, without
limitation, the dismissal of an action without prejudice, in defense of any
Claim, Indemnitee shall be indemnified against all Expenses incurred by
Indemnitee in connection therewith.

     3.     Expense Advances.
            ----------------

            (a)    Obligation to Make Expense Advances. Upon receipt of a
                   -----------------------------------
written undertaking by or on behalf of the Indemnitee to repay such amounts if
it shall ultimately be determined that the Indemnitee is not entitled to be
indemnified therefore by the Corporation hereunder under applicable law, the
Corporation shall make Expense Advances to Indemnitee.

            (b)    Form of Undertaking. Any obligation to repay any Expense
                   -------------------
Advances hereunder pursuant to a written undertaking by the Indemnitee shall be
     unsecured and no interest shall be charged thereon.

            (c)    Determination of Reasonable Expense Advances. The parties
                   --------------------------------------------
agree that for the purposes of any Expense Advance for which Indemnitee has made
written demand to the Corporation in accordance with this Agreement, all
Expenses included in such Expense Advance that are certified by affidavit of
Indemnitee's counsel as being reasonable shall be presumed conclusively to be
reasonable.

     4.     Procedures for Indemnification and Expense Advances.
            ---------------------------------------------------

            (a)    Timing of Payments. All payments of Expenses (including
                   ------------------
without limitation Expense Advances) by the Corporation to the Indemnitee
pursuant to this Agreement shall be made to the fullest extent permitted by law
as soon as practicable after written demand by Indemnitee therefor is presented
to the Corporation, but in no event later than thirty (30) business days after
such written demand by Indemnitee is presented to the Corporation, except in the
case of Expense Advances, which shall be made no later than ten (10) business
days after such written demand by Indemnitee is presented to the Corporation.

            (b)    Notice/Cooperation by Indemnitee. Indemnitee shall, as a
                   --------------------------------
condition precedent to Indemnitee's right to be indemnified or Indemnitee's
right to receive Expense Advances under this Agreement, give the Corporation
notice in writing as soon as practicable of any Claim made against Indemnitee
for which indemnification will or could be sought under this Agreement. Notice
to the Corporation shall be directed to the Chief Executive Officer of the
Corporation at the address shown on the signature page of this Agreement (or
such other address as the Corporation shall designate in writing to Indemnitee).
In addition, Indemnitee shall give the Corporation such information and
cooperation as it may reasonably require and as shall be within Indemnitee's
power.

            (c)    No Presumptions; Burden of Proof. For purposes of this
                   --------------------------------
Agreement, the termination of any Claim by judgment, order, settlement (whether
with or without court approval) or conviction, or upon a plea of nolo
                                                                 ----
contendere, or its equivalent, shall not create a presumption that
----------

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Indemnitee did not meet any particular standard of conduct or have any
particular belief or that a court has determined that indemnification is not
permitted by this Agreement or applicable law. In addition, neither the failure
of any Reviewing Party to have made a determination as to whether Indemnitee has
met any particular standard of conduct or had any particular belief, nor an
actual determination by any Reviewing Party that Indemnitee has not met such
standard of conduct or did not have such belief, prior to the commencement of
legal proceedings by Indemnitee to secure a judicial determination that
Indemnitee should be indemnified under this Agreement under applicable law,
shall be a defense to Indemnitee's claim or create a presumption that Indemnitee
has not met any particular standard of conduct or did not have any particular
belief. In connection with any determination by any Reviewing Party or otherwise
as to whether the Indemnitee is entitled to be indemnified hereunder under
applicable law, the burden of proof shall be on the Corporation to establish
that Indemnitee is not so entitled.

            (d)    Notice to Insurers. If, at the time of the receipt by the
                   ------------------
Corporation of a notice of a Claim pursuant to Section 4(b) hereof, the
Corporation has liability insurance in effect which may cover such Claim, the
Corporation shall give prompt notice of the commencement of such Claim to the
insurers in accordance with the procedures set forth in the respective policies.
The Corporation shall thereafter take all necessary or desirable action to cause
such insurers to pay, on behalf of the Indemnitee, all amounts payable as a
result of such Claim in accordance with the terms of such policies.

            (e)    Selection of Counsel.  In the event the Corporation shall be
                   --------------------
obligated hereunder to provide indemnification for or make any Expense Advances
with respect to the Expenses of any Claim, the Corporation, if appropriate,
shall be entitled to assume the defense of such Claim with counsel approved by
Indemnitee (which approval shall not be unreasonably withheld) upon the delivery
to Indemnitee of written notice of the Corporation's election to do so. After
delivery of such notice, approval of such counsel by Indemnitee and the
retention of such counsel by the Corporation, the Corporation will not be liable
to Indemnitee under this Agreement for any fees or expenses of separate counsel
subsequently retained by or on behalf of Indemnitee with respect to the same
Claim; provided that, (i) Indemnitee shall have the right to employ Indemnitee's
separate counsel in any such Claim at Indemnitee's expense and (ii) if (A) the
employment of separate counsel by Indemnitee has been previously authorized by
the Corporation, (B) Indemnitee shall have reasonably concluded that there may
be a conflict of interest between the Corporation and Indemnitee in the conduct
of any such defense, or (C) the Corporation shall not continue to retain such
counsel to defend such Claim, then the fees and expenses of Indemnitee's
separate counsel shall be Expenses for which Indemnitee may receive
indemnification or Expense Advances hereunder.

     5.     Additional Indemnification Rights; Nonexclusivity.
            -------------------------------------------------

            (a)    Scope.  The Corporation hereby agrees to indemnify the
                   -----
Indemnitee to the fullest extent permitted by law, notwithstanding that such
indemnification is not specifically authorized by the other provisions of this
Agreement, the Corporation's Certificate of Incorporation, the Corporation's
Bylaws or by statute. In the event of any change after the date of this
Agreement in any applicable law, statute or rule which expands the right of a
Delaware corporation to indemnify a

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member of its board of directors or an officer, employee, agent or fiduciary, it
is the intent of the parties hereto that Indemnitee shall enjoy by this
Agreement the greater benefits afforded by such change. In the event of any
change in any applicable law, statute or rule which narrows the right of a
Delaware corporation to indemnify a member of its board of directors or an
officer, employee, agent or fiduciary, such change, to the extent not otherwise
required by such law, statute or rule to be applied to this Agreement, shall
have no effect on this Agreement or the parties' rights and obligations
hereunder except as set forth in Section 10(a) hereof.

            (b)    Nonexclusivity. The indemnification and the payment of
                   --------------
Expense Advances provided by this Agreement shall be in addition to any rights
to which Indemnitee may be entitled under the Corporation's Certificate of
Incorporation, its Bylaws, any other agreement, any vote of stockholders or
disinterested directors, the General Corporation Law of the State of Delaware,
or otherwise. The indemnification and the payment of Expense Advances provided
under this Agreement shall continue as to Indemnitee for any action taken or not
taken while serving in an indemnified capacity even though subsequent thereto
Indemnitee may have ceased to serve in such capacity.

     6.     No Duplication of Payments.  The Corporation shall not be liable
            --------------------------
under this Agreement to make any payment in connection with any Claim made
against Indemnitee to the extent Indemnitee has otherwise actually received
payment (under any insurance policy, provision of the Corporation's Certificate
of Incorporation, Bylaws or otherwise) of the amounts otherwise payable
hereunder.

     7.     Partial Indemnification. If Indemnitee is entitled under any
            -----------------------
provision of this Agreement to indemnification by the Corporation for some or a
portion of Expenses incurred in connection with any Claim, but not, however, for
all of the total amount thereof, the Corporation shall nevertheless indemnify
Indemnitee for the portion of such Expenses to which Indemnitee is entitled.

     8.     Mutual Acknowledgement. Both the Corporation and Indemnitee
            ----------------------
acknowledge that in certain instances, federal law or applicable public policy
may prohibit the Corporation from indemnifying its directors, officers,
employees, agents or fiduciaries under this Agreement or otherwise. Indemnitee
understands and acknowledges that the Corporation has undertaken or may be
required in the future to undertake with the Securities and Exchange Commission
to submit the question of indemnification to a court in certain circumstances
for a determination of the Corporation's right under public policy to indemnify
Indemnitee.

     9.     Liability Insurance. To the extent the Corporation maintains
            -------------------
liability insurance applicable to directors, officers, employees, agents or
fiduciaries, Indemnitee shall be covered by such policies in such a manner as to
provide Indemnitee the same rights and benefits as are provided to the most
favorably insured of the Corporation's directors, if Indemnitee is a director;
or of the Corporation's officers, if Indemnitee is not a director of the
Corporation but is an officer; or of the Corporation's key employees, agents or
fiduciaries, if Indemnitee is not an officer or director but is a key employee,
agent or fiduciary.

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     10.    Exceptions.  Notwithstanding any other provision of this Agreement,
            ----------
the Corporation shall not be obligated pursuant to the terms of this Agreement:

            (a)    Excluded Action or Omissions. To indemnify or make Expense
                   ----------------------------
Advances to Indemnitee with respect to Claims arising out of acts, omissions or
transactions for which Indemnitee is prohibited from receiving indemnification
under applicable law.

            (b)    Claims Initiated by Indemnitee. To indemnify or make Expense
                   ------------------------------
Advances to Indemnitee with respect to Claims initiated or brought voluntarily
by Indemnitee and not by way of defense, counterclaim or crossclaim, except (i)
with respect to actions or proceedings brought to establish or enforce a right
to indemnification under this Agreement or any other agreement or insurance
policy or under the Corporation's Certificate of Incorporation or Bylaws now or
hereafter in effect relating to Claims for Covered Events, (ii) in specific
cases if the Board of Directors has approved the initiation or bringing of such
Claim, or (iii) as otherwise required under Section 145 of the Delaware General
Corporation Law, regardless of whether Indemnitee ultimately is determined to be
entitled to such indemnification, Expense Advances, or insurance recovery, as
the case may be.

            (c)    Lack of Good Faith. To indemnify Indemnitee for any Expenses
                   ------------------
incurred by the Indemnitee with respect to any action instituted (i) by
Indemnitee to enforce or interpret this Agreement, if a court having
jurisdiction over such action determines as provided in Section 13 that each of
the material assertions made by the Indemnitee as a basis for such action was
not made in good faith or was frivolous, or (ii) by or in the name of the
Corporation to enforce or interpret this Agreement, if a court having
jurisdiction over such action determines as provided in Section 13 that each of
the material defenses asserted by Indemnitee in such action was made in bad
faith or was frivolous.

            (d)    Claims Under Section 16(b). To indemnify Indemnitee for
                   --------------------------
Expenses and the payment of profits arising from the purchase and sale by
Indemnitee of securities in violation of Section 16(b) of the Securities
Exchange Act of 1934, as amended, or any similar successor statute.

     11.    Counterparts.  This Agreement may be executed in one or more
            ------------
counterparts, each of which shall constitute an original.

     12.    Binding Effect; Successors and Assigns. This Agreement shall be
            --------------------------------------
binding upon and inure to the benefit of and be enforceable by the parties
hereto and their respective successors, assigns (including any direct or
indirect successor by purchase, merger, consolidation or otherwise to all or
substantially all of the business or assets of the Corporation), spouses, heirs
and personal and legal representatives. The Corporation shall require and cause
any successor (whether direct or indirect, and whether by purchase, merger,
consolidation or otherwise) to all, substantially all, or a substantial part, of
the business or assets of the Corporation, by written agreement in form and
substance satisfactory to Indemnitee, expressly to assume and agree to perform
this Agreement in the same manner and to the same extent that the Corporation
would be required to perform if no such succession had taken place. This
Agreement shall continue in effect regardless of whether Indemnitee continues to
serve as a director, officer, employee, agent or fiduciary (as applicable) of
the Corporation or of any other enterprise at the Corporation's request.

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     13.    Expenses Incurred in Action Relating to Enforcement or
            ------------------------------------------------------
Interpretation. In the event that any action is instituted by Indemnitee under
--------------
this Agreement or under any liability insurance policies maintained by the
Corporation to enforce or interpret any of the terms hereof or thereof,
Indemnitee shall be entitled to be indemnified for all Expenses incurred by
Indemnitee with respect to such action (including, without limitation,
attorneys' fees), regardless of whether Indemnitee is ultimately successful in
such action, unless as a part of such action a court having jurisdiction over
such action makes a final judicial determination (as to which all rights of
appeal therefrom have been exhausted or lapsed) that each of the material
assertions made by Indemnitee as a basis for such action was not made in good
faith or was frivolous; provided, however, that until such final judicial
determination is made, Indemnitee shall be entitled under Section 3 to receive
payment of Expense Advances hereunder with respect to such action. In the event
of an action instituted by or in the name of the Corporation under this
Agreement to enforce or interpret any of the terms of this Agreement, Indemnitee
shall be entitled to be indemnified for all Expenses incurred by Indemnitee in
defense of such action (including without limitation costs and expenses incurred
with respect to Indemnitee's counterclaims and cross-claims made in such
action), unless as a part of such action a court having jurisdiction over such
action makes a final judicial determination (as to which all rights of appeal
therefrom have been exhausted or lapsed) that each of the material defenses
asserted by Indemnitee in such action was made in bad faith or was frivolous;
provided, however, that until such final judicial determination is made,
--------  -------
Indemnitee shall be entitled under Section 3 to receive payment of Expense
Advances hereunder with respect to such action.

     14.    Period of Limitations. No legal action shall be brought and no cause
            ---------------------
of action shall be asserted by or in the right of the Corporation against
Indemnitee, Indemnitee's estate, spouse, heirs, executors or personal or legal
representatives after the expiration of two years from the date of accrual of
such cause of action, and any claim or cause of action of the Corporation shall
be extinguished and deemed released unless asserted by the timely filing of a
legal action within such two year period; provided, however, that if any shorter
                                          --------  -------
period of limitations is otherwise applicable to any such cause of action, such
shorter period shall govern.

     15.    Notice. All notices, requests, demands and other communications
            ------
under this Agreement shall be in writing and shall be deemed duly given (i) if
delivered by hand and signed for by the party addressed, on the date of such
delivery, or (ii) if mailed by domestic certified or registered mail with
postage prepaid, on the third business day after the date postmarked. Addresses
for notice to either party are as shown on the signature page of this Agreement,
or as subsequently modified by written notice.

     16.    Consent to Jurisdiction.  The Corporation and Indemnitee each hereby
            -----------------------
irrevocably consent to the jurisdiction of the courts of the State of Delaware
for all purposes in connection with any action or proceeding which arises out of
or relates to this Agreement and agree that any action instituted under this
Agreement shall be commenced, prosecuted and continued only in the Court of
Chancery of the State of Delaware in and for New Castle County, which shall be
the exclusive and only proper forum for adjudicating such a claim.

     17.    Severability.  The provisions of this Agreement shall be severable
            ------------
in the event that any of the provisions hereof (including any provision within a
single section, paragraph or sentence)

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are held by a court of competent jurisdiction to be invalid, void or otherwise
unenforceable, and the remaining provisions shall remain enforceable to the
fullest extent permitted by law. Furthermore, to the fullest extent possible,
the provisions of this Agreement (including without limitation each portion of
this Agreement containing any provision held to be invalid, void or otherwise
unenforceable, that is not itself invalid, void or unenforceable) shall be
construed so as to give effect to the intent manifested by the provision held
invalid, illegal or unenforceable.

     18.    Choice of Law. This Agreement, and all rights, remedies,
            -------------
liabilities, powers and duties of the parties to this Agreement, shall be
governed by and construed in accordance with the laws of the State of Delaware
as applied to contracts between Delaware residents entered into and to be
performed entirely in the State of Delaware without regard to principles of
conflicts of laws.

     19.    Subrogation. In the event of payment under this Agreement, the
            -----------
Corporation shall be subrogated to the extent of such payment to all of the
rights of recovery of Indemnitee, who shall execute all documents required and
shall do all acts that may be necessary to secure such rights and to enable the
Corporation effectively to bring suit to enforce such rights.

     20.    Amendment and Termination. No amendment, modification, termination
            -------------------------
or cancellation of this Agreement shall be effective unless it is in writing
signed by both the parties hereto. No waiver of any of the provisions of this
Agreement shall be deemed to be or shall constitute a waiver of any other
provisions hereof (whether or not similar), nor shall such waiver constitute a
continuing waiver.

     21.    Integration and Entire Agreement. This Agreement sets forth the
            --------------------------------
entire understanding between the parties hereto and supersedes and merges all
previous written and oral negotiations, commitments, understandings and
agreements relating to the subject matter hereof between the parties hereto.

     22.    No Construction as Employment Agreement. Nothing contained in this
            ---------------------------------------
Agreement shall be construed as giving Indemnitee any right to be retained in
the employ of the Corporation or any of its subsidiaries or affiliated entities.

                                       10
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Indemnification
Agreement as of the date first above written.

                                    DRIVEWAY CORPORATION

                                    By:
                                       ---------------------------------
                                    Name:      Kent Jarvi
                                    Title:     Chief Financial Officer
                                    Address:   380 Brannan Street
                                               San Francisco, CA 94107

     AGREED TO AND ACCEPTED

     INDEMNITEE:

     -----------------------------
     (signature)

     Name:
          ------------------------
     Address:
             ---------------------

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

                                       11<PAGE>

                                                                   EXHIBIT 10.27
                                                         Employee:
                                                                   ---------

                              Driveway Corporation

                          PROPRIETARY INFORMATION AND
                         INVENTION ASSIGNMENT AGREEMENT

     As a condition of my becoming employed (or my employment being continued)
or my being retained as a consultant (or my consulting relationship being
continued) by Driveway Corporation, a Delaware corporation, or any of its
current or future subsidiaries, affiliates, successors or assigns (collectively,
the "Company"), and in consideration of my employment or consulting relationship
     -------
with the Company and my receipt of the compensation now and hereafter paid to me
by the Company, I agree to the following:

     1.  Employment or Consulting Relationship.  I understand and acknowledge
         -------------------------------------
that this Agreement does not alter, amend or expand upon any rights I may have
to continue in the employ of or in a consulting relationship with, or the
duration of my employment or consulting relationship with, the Company under any
existing agreements between the Company and me or under applicable law.  Any
employment or consulting relationship between the Company and me, whether
commenced prior to or upon the date of this Agreement, shall be referred to
herein as the "Relationship."
               ------------

     2.  At Will Employment.  I understand and acknowledge that my Relationship
         ------------------
with the Company is and shall continue to be at will, as defined under
applicable law, meaning that either I or the Company may terminate the
Relationship at any time for any reason or no reason, without further obligation
or liability.

     3.  Proprietary Information.
         -----------------------

          (a) Company Information.  I agree at all times during the term of the
              -------------------
Relationship and thereafter, to hold in strictest confidence, and not to use,
except for the benefit of the Company, or to disclose to any person, firm or
corporation without written authorization of the President of the Company, any
Proprietary Information of the Company that I obtain or create.  I further agree
not to make copies of such Proprietary Information except as authorized by the
Company.  I understand that "Proprietary Information" means any Company
                             -----------------------
proprietary information, technical data, trade secrets or know-how, including,
but not limited to, research, product plans, products, services, suppliers,
customer lists and customers (including, but not limited to, customers of the
Company on whom I called or with whom I became acquainted during the
Relationship), prices and costs, markets, software, developments, inventions,
processes, formulas, technology, designs, drawings, engineering, hardware
configuration information, marketing, licenses, finances, budgets or other
business information disclosed to me by the Company either directly or
indirectly in writing, orally or by drawings or observation of parts or
equipment or created by me during the period of the Relationship, whether or not
during working hours. I understand that "Proprietary Information" includes, but
                                         -----------------------
is not limited to, information pertaining to any aspects of the Company's
business which is either information not known by actual or potential
competitors of the Company or is proprietary information of the Company or its
customers or suppliers, whether of a technical nature or otherwise.  I further
<PAGE>

understand that Proprietary Information does not include any of the foregoing
items which has become publicly known and made generally available through no
wrongful act of mine or of others who were under confidentiality obligations as
to the item or items involved.

          (b) Former Employer Information.  I represent that my performance of
              ---------------------------
all terms of this Agreement as an employee or consultant of the Company have not
breached and will not breach any agreement to keep in confidence proprietary
information, knowledge or data acquired by me in confidence or trust prior or
subsequent to the commencement of the Relationship, and I will not use in the
course of the Relationship, disclose to the Company, or induce the Company to
use, any inventions, confidential or proprietary information or material
belonging to any previous employer or any other party.

          (c) Third Party Information.  I recognize that the Company has
              -----------------------
received and in the future will receive from third parties their confidential or
proprietary information subject to a duty on the Company's part to maintain the
confidentiality of such information and to use it only for certain limited
purposes.  I agree to hold all such confidential or proprietary information in
the strictest confidence and not to disclose it to any person, firm or
corporation or to use it except as necessary in carrying out my work for the
Company in a manner consistent with the Company's agreement with such third
party.

     4.   Inventions.
          ----------

          (a) Inventions Retained and Licensed.  I have attached hereto, as
              --------------------------------
Exhibit A, a list describing all inventions, original works of authorship,
---------
developments, improvements, and trade secrets that were made by me prior to the
Relationship (collectively referred to as "Prior Inventions"), which belong to
                                           ----------------
me, which relate to the Company's proposed or current business, products or
research and development, and which are not assigned to the Company hereunder;
or, if no such list is attached, I represent that there are no such Prior
Inventions.  If in the course of the Relationship, I incorporate into a Company
product, process or machine a Prior Invention owned by me or in which I have an
interest, the Company is hereby granted and shall have a non-exclusive, royalty-
free, irrevocable, perpetual, worldwide license (with the right to sublicense)
to make, have made, copy, modify, make derivative works of, use, sell and
otherwise distribute such Prior Invention as part of or in connection with such
product, process or machine.

          (b) Assignment of Inventions.  I agree that I will promptly make full
              ------------------------
written disclosure to the Company, will hold in trust for the sole right and
benefit of the Company, and hereby assign, and agree to assign, to the Company,
or its designee, all my right, title and interest throughout the world in and to
any and all inventions, original works of authorship, developments, concepts,
know-how, improvements or trade secrets, whether or not patentable or
registrable under copyright or similar laws, that I may solely or jointly
conceive or develop or reduce to practice, or cause to be conceived or developed
or reduced to practice, during the period of time of the Relationship
(collectively referred to as "Inventions"), except as provided in Section 4(e)
                              ----------
below.  I further acknowledge that all inventions, original works of authorship,
developments, concepts, know-how, improvements or trade secrets which are made
by me (solely or jointly with others) within the scope of and during the period
of the Relationship are "works made for hire" (to the greatest extent permitted
                         -------------------
by applicable law) and are compensated by my

                                      -2-
<PAGE>

salary (if I am an employee) or by such amounts paid to me under any applicable
consulting agreement or consulting arrangements (if I am a consultant), unless
regulated otherwise by mandatory law.

          (c) Maintenance of Records.  I agree to keep and maintain adequate and
              ----------------------
current written records of all Inventions made by me (solely or jointly with
others) during the term of the Relationship.  The records may be in the form of
notes, sketches, drawings, flow charts, electronic data or recordings,
laboratory notebooks, and any other format.  The records will be available to
and remain the sole property of the Company at all times.  I agree not to remove
such records from the Company's place of business except as expressly permitted
by Company policy which may, from time to time, be revised at the sole election
of the Company.

          (d) Patent and Copyright Registrations.  I agree to assist the
              ----------------------------------
Company, or its designee, at the Company's expense, in every proper way to
secure the Company's rights in the Inventions and any copyrights, patents,
trademarks, mask work rights, moral rights, or other intellectual property
rights relating thereto in any and all countries, including the disclosure to
the Company of all pertinent information and data with respect thereto, the
execution of all applications, specifications, oaths, assignments and all other
instruments which the Company shall deem necessary in order to apply for, obtain
maintain and transfer such rights and in order to assign and convey to the
Company, its successors, assigns and nominees the sole and exclusive rights,
title and interest in and to such Inventions, and any copyrights, patents, mask
work rights or other intellectual property rights relating thereto.  I further
agree that my obligation to execute or cause to be executed, when it is in my
power to do so, any such instrument or papers shall continue after the
termination of this Agreement.  If the Company is unable because of my mental or
physical incapacity or unavailability or for any other reason to secure my
signature to apply for or to pursue any application for any United States or
foreign patents or copyright registrations covering Inventions or original works
of authorship assigned to the Company as above, then I hereby irrevocably
designate and appoint the Company and its duly authorized officers and agents as
my agent and attorney in fact, to act for and in my behalf and stead to execute
and file any such applications and to do all other lawfully permitted acts to
further the application for, prosecution, issuance, maintenance or transfer of
letters patent or copyright registrations thereon with the same legal force and
effect as if executed by me.  I hereby waive and irrevocably quitclaim to the
Company any and all claims, of any nature whatsoever, which I now or hereafter
have for infringement of any and all proprietary rights assigned to the Company.

          (e) Exception to Assignments.  I understand that the provisions of
              ------------------------
this Agreement requiring assignment of Inventions to the Company do not apply to
any invention which qualifies fully under the provisions of California Labor
Code Section 2870 (attached hereto as Exhibit B).  I will advise the Company
                                      ---------
promptly in writing of any inventions that I believe meet such provisions and
that are not disclosed on Exhibit A.
                          ---------

     5.   Returning Company Documents.  I agree that, at the time of termination
          ---------------------------
of the Relationship, I will deliver to the Company (and will not keep in my
possession, recreate or deliver to anyone else) any and all devices, records,
data, notes, reports, proposals, lists, correspondence, specifications,
drawings, blueprints, sketches, laboratory notebooks, materials,

                                      -3-
<PAGE>

flow charts, equipment, other documents or property, or reproductions of any
aforementioned items developed by me pursuant to the Relationship or otherwise
belonging to the Company, its successors or assigns. I further agree that to any
property situated on the Company's premises and owned by the Company, including
disks and other storage media, filing cabinets or other work areas, is subject
to inspection by Company personnel at any time with or without notice. In the
event of the termination of the Relationship, I agree to sign and deliver the
"Termination Certificate" attached hereto as Exhibit C.
------------------------                     ---------

     6.  Notification to Other Parties.
         -----------------------------

          (a) Employees.  In the event that I leave the employ of the Company, I
              ---------
hereby consent to notification by the Company to my new employer about my rights
and obligations under this Agreement.

          (b) Consultants. I hereby grant consent to notification by the Company
              -----------
to any other parties besides the Company with whom I maintain a consulting
relationship, including parties with whom such relationship commences after the
effective date of this Agreement, about my rights and obligations under this
Agreement.

     7.   Solicitation of Employees, Consultants and Other Parties.
          --------------------------------------------------------
I agree that during the term of the Relationship, and for a period of twenty-
four (24) months immediately following the termination of the Relationship for
any reason, whether with or without cause, I shall not either directly or
indirectly solicit, induce, recruit or encourage any of the Company's employees
or consultants to terminate their relationship with the Company, or take away
such employees or consultants, or attempt to solicit, induce, recruit, encourage
or take away employees or consultants of the Company, either for myself or for
any other person or entity. Further, for a period of twenty-four (24) months
following termination of the Relationship for any reason, with or without cause,
I shall not solicit any licensor to or customer of the Company or licensee of
the Company's products, in each case, that are known to me, with respect to any
business, products or services that are competitive to the products or services
offered by the Company or under development as of the date of termination of the
Relationship.

     8.  Representations and Covenants.
         -----------------------------

          (a) Facilitation of Agreement. I agree to execute promptly any proper
              -------------------------
oath or verify any proper document required to carry out the terms of this
Agreement upon the Company's written request to do so.

          (b) Conflicts. I represent that my performance of all the terms of
              ---------
this Agreement will not breach any agreement to keep in confidence proprietary
information acquired by me in confidence or in trust prior to commencement of
the Relationship. I have not entered into, and I agree I will not enter into,
any oral or written agreement in conflict with any of the provisions of this
Agreement.

                                      -4-
<PAGE>

          (c) Voluntary Execution. I certify and acknowledge that I have
              -------------------
carefully read all of the provisions of this Agreement and that I understand and
will fully and faithfully comply with such provisions.

     9.   General Provisions.
          ------------------

          (a) Governing Law.  The validity, interpretation, construction and
              -------------
performance of this Agreement shall be governed by the laws of the State of
California, without giving effect to the principles of conflict of laws.

          (b) Entire Agreement.  This Agreement sets forth the entire agreement
              ----------------
and understanding between the Company and me relating to the subject matter
herein and merges all prior discussions between us.  No modification or
amendment to this Agreement, nor any waiver of any rights under this Agreement,
will be effective unless in writing signed by the party to be charged.  Any
subsequent change or changes in my duties, obligations, rights or compensation
will not affect the validity or scope of this Agreement.

          (c) Severability.  If one or more of the provisions in this Agreement
              ------------
are deemed void by law, then the remaining provisions will continue in full
force and effect.

          (d) Successors and Assigns.  This Agreement will be binding upon my
              ----------------------
heirs, executors, administrators and other legal representatives and will be for
the benefit of the Company, its successors, and its assigns.

          (e) Survival.  The provisions of this Agreement shall survive the
              --------
termination of the Relationship and the assignment of this Agreement by the
Company to any successor in interest or other assignee.

          (f) Advice of Counsel.  I ACKNOWLEDGE THAT, IN EXECUTING THIS
              -----------------
AGREEMENT, I HAVE HAD THE OPPORTUNITY TO SEEK THE ADVICE OF LEGAL COUNSEL, AND I
HAVE READ AND UNDERSTOOD ALL OF THE TERMS AND PROVISIONS OF THIS AGREEMENT.
THIS AGREEMENT SHALL NOT BE CONSTRUED AGAINST ANY PARTY BY REASON OF THE
DRAFTING OR PREPARATION HEREOF.

                            [Signature Page Follows]

                                      -5-
<PAGE>

     The parties have executed this Agreement on the respective dates set forth
below:

COMPANY:                              EMPLOYEE OR CONSULTANT:

DRIVEWAY CORPORATION                   ________________________, an Individual:

By:
   -----------------------            --------------------------------
                                      Signature

Title:
      --------------------

Date:                                 Date:
     ---------------------                 ---------------------------

Address:                              Address:

380 Brannan Street                    Street:_______________________________
San Francisco, California  94103             _______________________________

                                      -6-
<PAGE>

                                   EXHIBIT A
                                   ---------

                            LIST OF PRIOR INVENTIONS
                        AND ORIGINAL WORKS OF AUTHORSHIP
                            EXCLUDED FROM SECTION 4

<TABLE>
<CAPTION>
                                                    Identifying Number
Title                          Date                 of Brief Description
-----                          ----                 --------------------
<S>                            <C>                  <C>

</TABLE>

___ No inventions or improvements

___ Additional Sheets Attached

Signature of Employee/Consultant:
                                 ---------------------

Print Name of Employee/Consultant:
                                  --------------------
Date:
     ----------------------------
<PAGE>

                                   EXHIBIT B
                                   ---------

Section 2870 of the California Labor Code is as follows:

     (a)   Any provision in an employment agreement which provides that an
employee shall assign, or offer to assign, any of his or her rights in an
invention to his or her employer shall not apply to an invention that the
employee developed entirely on his or her own time without using the employer's
equipment, supplies, facilities, or trade secret information except for those
inventions that either:

          (1)  Relate at the time of conception or reduction to practice of the
invention to the employer's business, or actual or demonstrably anticipated
research or development of the employer; or

          (2)  Result from any work performed by the employee for the employer.

     (b)   To the extent a provision in an employment agreement purports to
require an employee to assign an invention otherwise excluded from being
required to be assigned under subdivision (a), the provision is against the
public policy of this state and is unenforceable.
<PAGE>

                                   EXHIBIT C
                                   ---------

                            TERMINATION CERTIFICATE

     This is to certify that I do not have in my possession, nor have I failed
to return, any devices, records, data, notes, reports, proposals, lists,
correspondence, specifications, drawings, blueprints, sketches, materials,
equipment, other documents or property, or reproductions of any aforementioned
items belonging to Driveway Corporation, its subsidiaries, affiliates,
successors or assigns (together the "Company").
                                     -------

     I further certify that I have complied with all the terms of the Company's
Proprietary Information and Invention Assignment Agreement signed by me,
including the reporting of any inventions and original works of authorship (as
defined therein), conceived or made by me (solely or jointly with others)
covered by that agreement.

     I further agree that, in compliance with the Proprietary Information and
Invention Assignment Agreement, I will preserve as confidential all trade
secrets, confidential knowledge, data or other proprietary information relating
to products, processes, know-how, designs, formulas, developmental or
experimental work, computer programs, data bases, other original works of
authorship, customer lists, business plans, financial information or other
subject matter pertaining to any business of the Company or any of its
employees, clients, consultants or licensees.

     I further agree that for twenty-four (24) months from this date, I will not
hire any employees or consultants of the Company and I will not solicit, induce,
recruit or encourage any of the Company's employees or consultants to leave
their employment, nor will I solicit any of the Company's licensors, customers
or licensees to terminate any relationship with the Company.

Date:
     -------------------------

                               -----------------------------------
                               (Signature)

                               -----------------------------------
                               (Type/Print Name)

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