Document:

<PAGE>
                                                                    EXHIBIT 10.5

                              CARSDIRECT.COM, INC.

                              EMPLOYMENT AGREEMENT

     This Agreement is entered into as of June 21, 1999 (the "Effective Date"),
by and between CarsDirect.com, Inc. a Delaware corporation (the "Company"), and
Frederick G. Silny ("Executive").

     WHEREAS, the Company desires to retain the Executive as the Chief Financial
Officer and President of the Company, and Executive desires to perform such
service for the Company, on the terms and conditions as set forth herein;

     NOW, THEREFORE, in consideration of the promises and mutual covenants
herein contained, and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, it is mutually agreed by the
parties as follows:

     1.  Duties and Scope of Employment.
         ------------------------------

         (a)  Position.  Executive shall be employed as Chief Financial Officer
              --------
of the Company.

         (b)  Duties.  During the term of the Executive's employment with the
              ------
Company, the Executive shall devote his full time, skill and attention to his
duties and responsibilities, which the Executive shall perform faithfully,
diligently and competently, and the Executive shall use his best efforts to
further the business of the Company. During the term of this Agreement,
Executive agrees not to actively engage in any other employment, occupation or
consulting activity for any direct or indirect remuneration without the prior
approval of the Board, except that this provision shall not be interpreted to
prohibit Executive from involvement in any charitable or community
activity/organization that he is currently involved in and that does not
materially interfere with his ability to perform his duties under this
Agreement.

     2.  At-Will Employment.  Executive and the Company understand and
         ------------------
acknowledge that Executive's employment with the Company constitutes "at-will"
employment. Executive and the Company acknowledge that this employment
relationship may be terminated at any time with or without notice, with or
without good cause or for any or no cause, at the option either of the Company
or Executive.

     3.  Compensation, Fringe Benefits and Stock Options.
         -----------------------------------------------

     (a)  Base Salary. While employed by the Company pursuant to this
          -----------
Agreement, the Company shall pay the Executive as compensation for his service a
base salary at the annualized rate of $150,000 (the "Base Salary") which
amount shall be reviewed annually at a minimum by the Board. Such salary shall
be paid periodically in accordance with normal Company payroll practices
<PAGE>

and subject to the usual and applicable required withholding. Executive
understands and agrees that neither his job performance nor promotions,
commendations, bonuses or the like from the Company give rise to or in any way
serve as the basis for modification, amendment, or extension, by implication or
otherwise, of this Agreement.

         (b)  Cash Bonus.  In addition to the Base Salary, the Board may, in its
              ----------
discretion, award the Executive, during the Executive's employment with the
Company pursuant to this Agreement, a cash bonus less applicable withholding,
following the Board's review of Executive's employment on an annual basis at a
minimum.

         (c)  Executive Benefits.  During his employment hereunder, Executive
              ------------------
shall be eligible to participate in the employee benefit plans currently and
hereafter maintained by the Company of general applicability to other senior
executives of the Company. The Company reserves the right to cancel or change
the benefit plans and programs it offers to its employees at any time.

         (d)  Stock Options.
              -------------

                (i)  Initial Grant.  Subject to approval by the Board of
                     -------------
Directors of the Company, Executive shall be granted a Nonstatutory Stock Option
(as defined in the Company's 1998 Stock Plan). The Option shall consist of
401,606 shares of the Company's then issued and outstanding shares of Common
Stock at an exercise price equal to the fair market value of the shares on the
date of grant. The Option shall vest as to 5% of the shares immediately upon
grant; 10% 6 months from the Vesting Commencement Date; the remaining unvested
shares shall vest on a pro rata basis per quarter over the next 42 months, so
that 401,606 shares subject to the Option shall be fully vested four years from
the date of grant, subject to Executive continuing to render services to the
Company as an employee. In all other respects, the Option shall be subject to
the terms, definitions and provisions of the Company's 1998 Stock Option Plan
and the Stock Option Agreement by and between Executive and the Company, all of
which documents are incorporated herein by reference.

               (ii) Right to Purchase Additional Shares of Common Stock.
                    ---------------------------------------------------
Subject to approval by the Board of Directors of the Company, Executive shall be
granted a warrant to purchase 50,000 shares of Common Stock of the Company. The
exercise price of the warrant shall be $2.33 per share and the warrant shall be
exercisable from the date on which the Board of Directors of the Company
determines that the fair market value of the Common Stock of the Company is
equal to or greater than $2.33 per share. Subject to approval by the Board of
Directors of the Company, Executive shall also be granted an option to purchase
an additional 50,000 shares of Common Stock of the Company at $2.33 per share,
which warrant shall be exercisable upon the first to occur of (i) the first sale
of Common Stock of the Company to the general public pursuant to a registration
statement filed with and declared effective by the Securities and Exchange
Commission under the Securities Act of 1933, as amended, (ii) a Change of
Control (as defined below); (iii) an Involuntary Termination (as defined below)
of Executive within 12 months of the appointment of a new President or Chief
Executive Officer of the Company or (iv) five years following the date hereof

                                      -2-
<PAGE>

     Acceleration.  Upon the occurrence of (i) a "Change of Control" (as defined
     ------------
below) or (ii) the appointment of a new President or Chief Executive Officer of
the Company, which appointment is followed within twelve (12) months by an
"Involuntary Termination" (as defined below), 50% of the unvested portion of the
Option held by the Executive shall immediately vest and become exercisable in
full. For purposes of this Agreement, "Change of Control" shall mean (i) the
consummation of a merger or consolidation of the Company with any other
corporation, other than a merger or consolidation which would result in the
voting securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving or resulting entity) at least fifty
percent (50%) of the total voting power represented by the voting securities of
the Company or such surviving or resulting entity outstanding immediately after
such merger or consolidation; or (ii) the consummation of the sale or
disposition by the Company of a or substantially all the Company's assets. For
purposes of this Agreement, "Involuntary Termination" shall mean termination of
Executive's employment with the Company immediately following any of the
following: (i) a reduction by the Company of the Executive's base salary as in
effect immediately prior to such reduction; (ii) a material reduction by the
Company in the kind or level of employee benefits to which the Executive is
entitled immediately prior to such reduction with the result that the
Executive's overall benefits package is significantly reduced; (iii) the
material breach by the Company of a material provision of this Agreement which
is not cured or waived by Executive within thirty (30) days following written
notice thereof to the Company; or (iii) any purported termination of the
Executive by the Company which is not effected for "Cause" (as defined below).
For purposes of this Agreement, "Cause" shall mean (i) any act of personal
dishonesty taken by the Executive in connection with the his responsibilities to
the Company which is intended to result in substantial personal enrichment of
the Executive, (ii) Executive's conviction of a felony which the Board
reasonably believes has had or will have a material detrimental effect on the
Company's reputation or business, (iii) a willful act by the Executive which
constitutes misconduct and is injurious to the Company, and (iv) continued
willful violations by the Executive of his obligations to the Company after
there has been delivered to the Executive a written demand for performance from
the Company which describes the basis for the Company's belief that the
Executive has not substantially performed his duties.

     4.  Expenses.  The Company will pay or reimburse Executive for reasonable
         --------
travel, entertainment or other expenses incurred by Executive in the furtherance
of or in connection with the performance of Executive's duties hereunder in
accordance with the Company's established policies.

     5.  Confidential Information.  Executive agrees to continue to maintain the
         ------------------------
confidentiality of all confidential and proprietary information of the Company
and agrees, if he has not done so already, to enter into the CarsDirect.com,
Inc. Confidential Information and Invention Assignment Agreement.

     6.  Assignment.  This Agreement shall be binding upon and inure to the
         ----------
benefit of (a) the heirs, executors and legal representatives of Executive upon
Executive's death and (b) any successor of the Company. Any such successor of
the Company shall be deemed substituted for the Company under the terms of this
Agreement for all purposes. As used herein, "successor" shall include any
person, firm, corporation or other business entity which at any time, whether by
purchase, merger or

                                      -3-
<PAGE>

otherwise, directly or indirectly, acquires all or substantially all of the
assets or business of the Company. None of the rights of Executive to receive
any form of compensation payable pursuant to this Agreement shall be assignable
or transferable except through a testamentary disposition or by the laws of
descent. Any attempted assignment, transfer, conveyance or other disposition
(other than as aforesaid) of any interest in the rights of Executive to receive
any form of compensation hereunder shall be null and void.

     7.  Notices.  All notices, requests, demands and other communications
         -------
called for hereunder shall be in writing and shall be deemed given if delivered
personally, one (1) day after mailing via Federal Express overnight or a similar
overnight delivery service, or three (3) days after being mailed by registered
or certified mail, return receipt requested, prepaid and addressed to the
parties or their successors in interest at the following addresses, or at such
other addresses as the parties may designate by written notice in the manner
aforesaid:

         If to the Company:  CarsDirect.com, Inc.
                             4312 Woodman Avenue, 3rd Floor
                             Sherman Oaks, California 94123

         If to Executive:    Frederick G. Silny
                             2247 W. Silverlake Drive
                             Los Angeles, California 90039

     8.  Severability.  In the event that any provision hereof becomes or
         ------------
is declared by a court of competent jurisdiction to be illegal, unenforceable or
void, this Agreement shall continue in full force and effect without said
provision.

     9.  Entire Agreement.  This Agreement, the Stock Option Plan, the Option
         ----------------
Agreement, and the Company's Confidential Information and Invention Assignment
Agreement represent the entire agreement and understanding between the Company
and Executive concerning Executive's employment relationship with the Company,
and supersede in their entirety any and all prior agreements and understandings
concerning Executive's employment relationship with the Company.

    10.  Arbitration and Equitable Relief.
         --------------------------------

     (a)  Except as provided in Section 10(e) below, Executive agrees that
any dispute or controversy arising out of, relating to, or in connection with
this Agreement, or the interpretation, validity, construction, performance,
breach, or termination thereof shall be settled by arbitration, to the extent
permitted by law, to be held in Los Angeles County, California in accordance
with the National Rules for the Resolution of Employment Disputes then in effect
of the American Arbitration Association (the "Rules"). The arbitrator may grant
injunctions or other relief in such dispute or controversy. The decision of the
arbitrator shall be final, conclusive and binding on the parties to the
arbitration. Judgment may be entered on the arbitrator's decision in any court
having jurisdiction.

                                      -4-
<PAGE>

         (b)  The arbitrator shall apply California law to the merits of any
dispute or claim, without reference to rules of conflict of law. Executive
hereby expressly consents to the personal jurisdiction of the state and federal
courts of Los Angeles County located in California for any action or proceeding
arising from or relating to this Agreement and/or relating to any arbitration in
which the parties are participants.

         (c)  Executive understands that nothing in this Section modifies
Executive's at-will status. Either the Company or Executive can terminate the
employment relationship at any time, with or without cause.

         (d)  EXECUTIVE HAS READ AND UNDERSTANDS SECTION 10, WHICH DISCUSSES
ARBITRATION. EXECUTIVE UNDERSTANDS THAT BY SIGNING THIS AGREEMENT, EXECUTIVE
AGREES TO SUBMIT ANY FUTURE CLAIMS ARISING OUT OF, RELATING TO, OR IN CONNECTION
WITH THIS AGREEMENT, OR THE INTERPRETATION, VALIDITY, CONSTRUCTION, PERFORMANCE,
BREACH, OR TERMINATION THEREOF TO BINDING ARBITRATION TO THE EXTENT PERMITTED BY
LAW, AND THAT THIS ARBITRATION CLAUSE CONSTITUTES A WAIVER OF EXECUTIVE'S RIGHT
TO A JURY TRIAL AND RELATES TO THE RESOLUTION OF ALL DISPUTES RELATING TO ALL
ASPECTS OF THE EMPLOYER/EXECUTIVE RELATIONSHIP, INCLUDING BUT NOT LIMITED TO,
THE FOLLOWING CLAIMS:

              (i)  ANY AND ALL CLAIMS FOR WRONGFUL DISCHARGE OF EMPLOYMENT;
BREACH OF CONTRACT, BOTH EXPRESS AND IMPLIED; BREACH OF THE COVENANT OF GOOD
FAITH AND FAIR DEALING, BOTH EXPRESS AND IMPLIED; NEGLIGENT OR INTENTIONAL
INFLICTION OF EMOTIONAL DISTRESS; NEGLIGENT OR INTENTIONAL MISREPRESENTATION;
NEGLIGENT OR INTENTIONAL INTERFERENCE WITH CONTRACT OR PROSPECTIVE ECONOMIC
ADVANTAGE; AND DEFAMATION;

              (ii)  ANY AND ALL CLAIMS FOR VIOLATION OF ANY FEDERAL STATE OR
MUNICIPAL STATUTE, INCLUDING, BUT NOT LIMITED TO THE CIVIL RIGHTS ACT OF 1991,
THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, THE AMERICANS WITH
DISABILITIES ACT OF 1990, AND THE FAIR LABOR STANDARDS ACT;

              (iii)  ANY AND ALL CLAIMS ARISING OUT OF ANY OTHER LAWS AND
REGULATIONS RELATING TO EMPLOYMENT OR EMPLOYMENT DISCRIMINATION.

         (e)  THE PARTIES MAY APPLY TO ANY COURT OF COMPETENT JURISDICTION FOR A
TEMPORARY RESTRAINING ORDER, PRELIMINARY INJUNCTION, OR OTHER INTERIM OR
CONSERVATORY RELIEF, AS NECESSARY, WITHOUT BREACH OF THIS ARBITRATION AGREEMENT
AND WITHOUT ABRIDGMENT OF THE POWERS OF THE ARBITRATOR.

                                      -5-
<PAGE>

     11.  No Oral Modification, Cancellation or Discharge.  This Agreement may
          -----------------------------------------------
only be amended, canceled or discharged in writing signed by Executive and the
Company.

     12.  Governing Law.  This Agreement shall be governed by the internal
          -------------
substantive laws, but not the choice of law rules, of the State of California.

     13.  Acknowledgment.  Executive acknowledges that he has had the
          --------------
opportunity to discuss this matter with and obtain advice from his private
attorney, has had sufficient time to, and has carefully read and fully
understands all the provisions of this Agreement, and is knowingly and
voluntarily entering into this Agreement,

     IN WITNESS WHEREOF, the undersigned have executed this Agreement on the
respective dates set forth below.

                                    CARSDIRECT.COM, INC.

                                    By:    /s/ Scott Painter
                                       -------------------------------------

                                    Name:      Scott Painter
                                         -----------------------------------

                                    Title:     CEO
                                          ----------------------------------

                                    /s/ Frederick G. Silny
                                    ----------------------------------------
                                    Frederick G. Silny

                                      -6-<PAGE>

                                                                    EXHIBIT 10.6

                             CARSDIRECT.COM, INC.

                             EMPLOYMENT AGREEMENT

             Amended & Restated Effective as of September 30, 1999

     This amended and restated Agreement is entered into as of September 30,
1999 (the "Effective Date"), between and among CarsDirect.com, Inc., a Delaware
corporation (the "Company"), Scott Painter ("Executive") and Bill Gross'
idealab! ("idealab!") (collectively, the "Parties").

     WHEREAS, idealab! and Executive entered into a Consulting Agreement dated
December 29, 1998 (the "Consulting Agreement"); and

     WHEREAS, the Company and Executive have entered into an Employment
Agreement dated as of January 1, 1999 (the "Original Employment Agreement"); and

     WHEREAS, a dispute has arisen regarding the Parties' continuing obligations
and therefore the Parties desire to amend and restate the Original Employment
Agreement as set forth herein (the "Amended and Restated Employment Agreement");

     NOW, THEREFORE, in consideration of the promises and mutual covenants
herein contained, and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, it is mutually agreed by the
parties as follows:

     1.   Duties and Scope of Employment.
          ------------------------------

          (a)  Position. Prior to the CEO Date (as defined herein), Executive
               --------
shall be employed as Chief Executive Officer and President of the Company;
following the CEO Date, Executive shall be employed as Vice Chairman and Co-
Founder of the Company. The "CEO Date" shall be the date upon which a
replacement Chief Executive Officer (Executive's successor) approved by a
majority of the Board of Directors officially begins his/her duties as Chief
Executive Officer of the Company.

          (b)  Duties. During the term of the Executive's employment with the
               ------
Company as Co-Founder, the Executive shall devote his full time, skill and
attention to his duties and responsibilities, which the Executive shall perform
faithfully, diligently and competently, and the Executive shall use his best
efforts to further the business of the Company. While he is employed by the
Company as Co-Founder, Executive agrees not to actively engage in any other
employment, occupation or consulting activity (other than time spent and
responsibilities as a board member and principal of Vision, Inc.) for any direct
or indirect remuneration without the prior approval of the Board.

     2.   At-Will Employment. Executive and the Company understand and
          ------------------
acknowledge that Executive's employment with the Company constitutes "at-will"
employment. Executive and the
<PAGE>

Company acknowledge that this employment relationship may be terminated at any
time with or without notice, with or without good cause or for any or no cause,
at the option either of the Company or Executive.

     3.   Compensation, Fringe Benefits and Stock Options.
          -----------------------------------------------

          (a)  Base Salary. While employed by the Company pursuant to this
               -----------
Amended and Restated Employment Agreement on and after the Effective Date, the
Company shall pay the Executive as compensation for his services a base salary
at the annualized rate of $165,000 (the "Base Salary") which amount shall be
reviewed annually at a minimum by the Board. Such salary shall be paid
periodically in accordance with normal Company payroll practices and subject to
the usual and applicable required withholding. Executive understands and agrees
that neither his job performance nor promotions, commendations, bonuses or the
like from the Company give rise to or in any way serve as the basis for
modification, amendment, or extension, by implication or otherwise, of this
Amended and Restated Employment Agreement.

          (b)  Signing Bonus. On the Effective Date, the Company shall pay
               -------------
Executive $75,000, less applicable withholding, as a signing bonus.

          (c)  June 30, 2000 IPO and Retention Bonus. If (i) the Company's
               -------------------------------------
initial public offering of its equity securities pursuant to a registration
statement on Form S-1 (or its successor form) has been declared effective by the
Securities and Exchange Commission (an "IPO") on or before June 30, 2000, (ii)
Executive has either (A) remained as a member of the Board of Directors through
June 30, 2000, or (B) has been removed from Board by the Company's stockholders
on or prior to June 30, 2000 without cause pursuant to and within the meaning of
Section 141(k) of the Delaware General Corporation Law (a "Board Removal Without
Cause"), and (iii) Executive executes a release of claims substantially similar
to that contained in Section 16 hereof (a "Release of Claims"), then Executive
shall receive a bonus, payable on June 30, 2000, equal to one times the Base
Salary (as defined in Section 3(a) hereof, i.e., a total of $165,000), less
applicable withholding (the "IPO and Retention Bonus"). Executive shall not be
entitled to any payment hereunder for partial performance, e.g., the IPO occurs
on July 1, 2000 and all the other conditions for payment have been satisfied.

          (d)  Executive Benefits. During his employment hereunder, Executive
               ------------------
shall be eligible to participate in the employee benefit plans currently and
hereafter maintained by the Company of general applicability to other senior
executives of the Company. The Company reserves the right to cancel or change
the benefit plans and programs it offers to its employees at any time.

          (e)  Stock Options.
               -------------

               (i)  Existing Grants. Executive has been granted stock options
                    ---------------
as follows:

                                       2
<PAGE>

                    (A)  First Option. A stock option covering 300,000 shares of
                         ------------
Company common stock with an exercise price equal to $0.001 per share (the
"First Option"). The First Option has a grant date of October 20, 1998 and is
100% vested as of the Effective Date. Executive has exercised the First Option
and the Company agrees to issue certificates representing the shares issued to
Executive upon such exercise promptly following the Effective Date.

                    (B)  Second Option. A stock option covering 500,000 shares
                         -------------
of Company common stock with an exercise price equal to $0.001 per share (the
"Second Option"). The Second Option has a grant date of February 8, 1999 and a
vesting commencement date of January 1, 1999. As amended by this Amended and
Restated Employment Agreement, the Second Option shall become vested as to fifty
percent (50%) of the then unvested shares subject to the Second Option on the
CEO Date, and the remainder of the unvested shares subject to the Second Option
shall vest on a pro rata daily basis for three years commencing on the CEO Date,
so as to be 100% vested on the third anniversary of the CEO Date, subject to
Executive continuing to render services to the Company as an employee or
director on such vesting dates; provided, however, that in the event of a Change
of Control of the Company (as defined below) occurring while Executive is an
employee or director of the Company, the vesting of the Second Option will
accelerate and the Second Option shall become vested as to 50% of the then
unvested shares subject to the Second Option immediately prior to such Change of
Control. "Change of Control" is defined as (i) the consummation of a merger or
consolidation of the Company with any other corporation, other than a merger or
consolidation which would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity) at least fifty percent (50%) of the total voting power
represented by the voting securities of the Company or such surviving entity
outstanding immediately after such merger or consolidation, or (ii) the
consummation of the sale or disposition by the Company of all or substantially
all of the Company's assets.

                    (C)  Third Option. A stock option covering 750,000 shares of
                         ------------
Company common stock with an exercise price equal to $0.35 per share (the "Third
Option" and, together with the First Option and the Second Option, the
"Options"). The Third Option has a grant date of June 23, 1999. As amended by
this Amended and Restated Employment Agreement, the Shares subject to the Third
Option vest daily on a ratable basis over a four year period; provided, however,
that upon the CEO date, the Third Option vesting shall accelerate so that twenty
percent (20%) of the shares originally subject to the Third Option are vested on
the CEO Date and the remaining eighty percent (80%) of the shares originally
subject to the Third Option shall thereafter vest on a pro rata daily basis
through June 23, 2003, so that one hundred percent (100%) of the shares subject
to the Third Option shall be fully vested on June 23, 2003, subject to Executive
continuing to render services to the Company as an employee or director on such
vesting dates.

                                       3
<PAGE>

               (ii)  Other Terms and Conditions. In all other respects, the
                     --------------------------
First, Second and Third Options are subject to the terms, definitions and
provisions of the Company's 1998 Stock Plan and the stock option agreements by
and between Executive and the Company, all of which documents are incorporated
herein by reference and are subject to accelerated vesting as set forth
elsewhere herein.

               (iii) Right to Maintain. On an after the Effective Date,
                     -----------------
Executive shall be deemed a "Qualified Purchaser" under the Company's Third
Amended Investor Rights Agreement, as amended from time to time.

               (iv)  Termination as Co-Founder Without Cause. In the event
                     ---------------------------------------
Executive is terminated as Co-Founder without Cause (as defined below), then,
subject to Executive executing a new Release of Claims, the Company shall make
continued payments of Base Salary, less applicable withholding, to Executive for
nine months following the date of such termination. For purposes of this
paragraph (but not for purposes of a Board Removal Without Cause under Sections
3(c) and 3(e)(v) hereof, which shall be made with reference to Section 141(k) of
the Delaware General Corporation Law), "Cause" shall mean (i) a material act of
dishonesty made by Executive in connection with Executive's fiduciary
responsibilities as an employee and which materially affects the Company, (ii)
Executive's conviction of, or plea of nolo contendere to, a felony, or (iii)
                                      ---- ----------
Executive's failure to perform his material employment duties if such failure is
not remedied within ninety (90) days following receipt by Executive of written
notice from the Board specifying the facts relating to the failure. A change of
Executive's title as Co-Founder (but not as Vice-Chairman) or material
modification of Executive's duties as Co-Founder (but not as Vice-Chairman)
shall be deemed for purposes of this section to be a termination without Cause.

               (v)   Board Removal Without Cause Prior to an IPO; Failure to
                     -------------------------------------------------------
Nominate to Board Following IPO. In the event Executive is (i) subject to a
-------------------------------
Board Removal Without Cause prior to an IPO, or (ii) if, following an IPO, the
Board fails to nominate Executive for re-election to the Board at any annual
meeting of the Company's stockholders upon which Executive's tenure as a Board
member would otherwise expire (except if Executive has voluntarily resigned from
the Board or elects not to stand for re-election), then, subject to Executive
executing a new Release of Claims, the Company agrees to accelerate the vesting
and exercisability of Executive's then outstanding unvested Options, so that
fifty percent (50%) of the unvested shares subject to each such Option shall be
fully vested and exercisable.

     4.   Loan. Executive has received a $75,000 loan from the Company at a 6%
          ----
simple interest rate (the "Loan"). The Loan has a repayment term of two years
and is secured by 75,000 shares of Common Stock of the Company (the "Escrow
Shares"). In the event that the Executive voluntarily terminates his employment
with the Company or is terminated for "Cause" (as defined below), the Loan shall
become immediately payable.

                                       4
<PAGE>

     5.   Expenses. The Company will pay or reimburse Executive for reasonable
          --------
travel, entertainment or other expenses incurred by Executive in the furtherance
of or in connection with the performance of Executive's duties hereunder in
accordance with the Company's established policies.

     6.   Confidential Information. Executive agrees to continue to maintain the
          ------------------------
confidentiality of all confidential and proprietary information of the Company
and agrees, if he has not done so already, to enter into the CarsDirect.com,
Inc. Employment, Confidential Information and Inventions Assignment Agreement.

     7.   Assignment. This Amended and Restated Employment Agreement shall be
          ----------
binding upon and inure to the benefit of (a) the heirs, executors and legal
representatives of Executive upon Executive's death and (b) any successor of the
Company. Any such successor of the Company shall be deemed substituted for the
Company under the terms of this Amended and Restated Employment Agreement for
all purposes. As used herein, "successor" shall include any person, firm,
corporation or other business entity which at any time, whether by purchase,
merger or otherwise, directly or indirectly, acquires all or substantially all
of the assets or business of the Company. None of the rights of Executive to
receive any form of compensation payable pursuant to this Amended and Restated
Employment Agreement shall be assignable or transferable except through a
testamentary disposition or by the laws of descent. Any attempted assignment,
transfer, conveyance or other disposition (other than as aforesaid) of any
interest in the rights of Executive to receive any form of compensation
hereunder shall be null and void.

     8.   Notices. All notices, requests, demands and other communications
          -------
called for hereunder shall be in writing and shall be deemed given if delivered
personally, one (1) day after mailing via Federal Express overnight or a similar
overnight delivery service, or three (3) days after being mailed by registered
or certified mail, return receipt requested, prepaid and addressed to the
parties or their successors in interest at the following addresses, or at such
other addresses as the parties may designate by written notice in the manner
aforesaid:

               If to the Company:       CarsDirect.com, Inc.
                                        4312 Woodman Avenue
                                        Sherman Oaks, California 91423
                                        Attn: General Counsel
                                        ----

               If to idealab!:          Bill Gross' idealab!
                                        130 West Union Street
                                        Pasadena, California 91103
                                        Attn: General Counsel
                                        ----

               If to Executive:         Scott Painter
                                        10048 Cielo Drive
                                        Beverly Hills, California 90210

                                       5
<PAGE>

     9.   Severability. In the event that any provision hereof becomes or is
          ------------
declared by a court of competent jurisdiction to be illegal, unenforceable or
void, this Amended and Restated Employment Agreement shall continue in full
force and effect without said provision.

     10.  Entire Agreement. This Amended and Restated Employment Agreement, the
          ----------------
Stock Option Plan, the First, Second and Third Option agreements, and the
Company's Employment, Confidential Information and Invention Assignment
Agreement represent the entire agreement and understanding between the Company
and Executive concerning Executive's employment relationship with the Company,
and supersede in their entirety any and all prior agreements and understandings
concerning Executive's employment relationship with the Company, including the
Original Employment Agreement. To the extent this Amended and Restated
Employment Agreement is inconsistent or conflicts with any other agreement
entered into between Executive and the Company, including the First, Second and
Third Option agreements, this Amended and Restated Employment Agreement shall
control.

     11.  Arbitration and Equitable Relief.
          --------------------------------

          (a)  Except as provided in Section 11(e) below, Executive agrees that
any dispute or controversy arising out of, relating to, or in connection with
this Amended and Restated Employment Agreement, or the interpretation, validity,
construction, performance, breach, or termination thereof shall be settled by
arbitration, to the extent permitted by law, to be held in Los Angeles County,
California in accordance with the National Rules for the Resolution of
Employment Disputes then in effect of the American Arbitration Association (the
"Rules"). The arbitrator may grant injunctions or other relief in such dispute
or controversy. The decision of the arbitrator shall be final, conclusive and
binding on the parties to the arbitration. Judgment may be entered on the
arbitrator's decision in any court having jurisdiction.

          (b)  The arbitrator shall apply California law to the merits of any
dispute or claim, without reference to rules of conflict of law. Executive
hereby expressly consents to the personal jurisdiction of the state and federal
courts of Los Angeles County located in California for any action or proceeding
arising from or relating to this Amended and Restated Employment Agreement
and/or relating to any arbitration in which the parties are participants.

          (c)  Executive understands that nothing in this Section modifies
Executive's at-will status. Either the Company or Executive can terminate the
employment relationship at any time, with or without cause.

          (d)  EXECUTIVE HAS READ AND UNDERSTANDS SECTION 11, WHICH DISCUSSES
ARBITRATION. EXECUTIVE UNDERSTANDS THAT BY SIGNING THIS AMENDED AND RESTATED
EMPLOYMENT AGREEMENT, EXECUTIVE AGREES TO SUBMIT ANY FUTURE CLAIMS ARISING OUT
OF, RELATING TO, OR IN CONNECTION WITH THIS AMENDED AND RESTATED EMPLOYMENT
AGREEMENT, OR THE INTERPRETATION, VALIDITY, CONSTRUCTION, PERFORMANCE, BREACH,

                                       6
<PAGE>

OR TERMINATION THEREOF TO BINDING ARBITRATION TO THE EXTENT PERMITTED BY LAW,
AND THAT THIS ARBITRATION CLAUSE CONSTITUTES A WAIVER OF EXECUTIVE'S RIGHT TO A
JURY TRIAL AND RELATES TO THE RESOLUTION OF ALL DISPUTES RELATING TO ALL ASPECTS
OF THE EMPLOYER/EXECUTIVE RELATIONSHIP, INCLUDING BUT NOT LIMITED TO, THE
FOLLOWING CLAIMS:

                    (i)   ANY AND ALL CLAIMS FOR WRONGFUL DISCHARGE OF
EMPLOYMENT; BREACH OF CONTRACT, BOTH EXPRESS AND IMPLIED; BREACH OF THE COVENANT
OF GOOD FAITH AND FAIR DEALING, BOTH EXPRESS AND IMPLIED; NEGLIGENT OR
INTENTIONAL INFLICTION OF EMOTIONAL DISTRESS; NEGLIGENT OR INTENTIONAL
MISREPRESENTATION; NEGLIGENT OR INTENTIONAL INTERFERENCE WITH CONTRACT OR
PROSPECTIVE ECONOMIC ADVANTAGE; AND DEFAMATION;

                    (ii)  ANY AND ALL CLAIMS FOR VIOLATION OF ANY FEDERAL, STATE
OR MUNICIPAL STATUTE, INCLUDING, BUT NOT LIMITED TO THE CIVIL RIGHTS ACT OF
1991, THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, THE AMERICANS WITH
DISABILITIES ACT OF 1990, AND THE FAIR LABOR STANDARDS ACT;

                    (iii) ANY AND ALL CLAIMS ARISING OUT OF ANY OTHER LAWS AND
REGULATIONS RELATING TO EMPLOYMENT OR EMPLOYMENT DISCRIMINATION.

          (e)  THE PARTIES MAY APPLY TO ANY COURT OF COMPETENT JURISDICTION FOR
A TEMPORARY RESTRAINING ORDER, PRELIMINARY INJUNCTION, OR OTHER INTERIM OR
CONSERVATORY RELIEF, AS NECESSARY, WITHOUT BREACH OF THIS ARBITRATION AGREEMENT
AND WITHOUT ABRIDGMENT OF THE POWERS OF THE ARBITRATOR.

     12.  No Oral Modification, Cancellation or Discharge. This Amended and
          -----------------------------------------------
Restated Employment Agreement may only be amended, canceled or discharged in
writing signed by Executive and the Company.

     13.  Governing Law. This Amended and Restated Employment Agreement shall be
          -------------
governed by the internal substantive laws, but not the choice of law rules, of
the State of California.

     14.  Corporate Action. The Company represents and warrants to Executive
          ----------------
that all necessary corporate action has been taken by the Company to execute,
deliver and perform this Amended and Restated Employment Agreement by the
Company.

                                       7
<PAGE>

     15.  Consulting Agreement. Idealab! and Executive acknowledge and agree
          --------------------
that idealab! has fully performed its obligations pursuant to the Consulting
Agreement and that the Consulting Agreement has terminated as of the Effective
Date. Executive acknowledges that amounts previously paid by idealab! constitute
its full and final payment obligations according to the Consulting Agreement,
and that Executive is not entitled to further compensation from idealab!

     16.  Release. Executive, in consideration for the mutual promises between
          -------
the parties, hereby fully and unconditionally releases and forever discharges
Company and idealab! and any parent, subsidiary or affiliated entity, and all
persons acting by, through, under or in concert with them, and their respective
successors and assigns, from and against any and all claims, contentions, debts,
liabilities, demands, promises, agreements, costs, expenses (including but not
limited to attorneys' fees), damages, losses, suits, liens, actions or causes of
action, of whatever kind or nature, whether in law or equity and whether now
known or unknown, based on, arising out of, or in connection with Executive's
employment or consultation with Company or idealab!, except for claims resulting
from alleged breaches of the Amended and Restated Employment Agreement arising
after the date hereof.

               (a)  Waiver of Civil Code Section 1542. This release is intended
                    ---------------------------------
to cover all claims or possible claims held by Executive, including but not
limited to those claims, demands, liabilities or causes of action arising out of
or related to Executive's employment or consultation with Company or idealab!,
whether the same are known, unknown, or hereinafter discovered or ascertained.
Executive acknowledges that he has been advised by legal counsel and is familiar
with the provisions of California Civil Code Section 1542, which provides as
follows:

     A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT
     KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE,
     WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE
     DEBTOR.

Executive, being aware of said Code Section, hereby expressly, knowingly and
intentionally waives any rights he may have thereunder, as well as under any
other statute or common law principles of similar effect.

          (b)  No Admission of Liability. This Amended and Restated Employment
               -------------------------
Agreement is a compromise of disputed claims and does not in any way constitute
an admission by Company or idealab! of any liability or responsibility, past,
present or future, for the matters released by and through this Amended and
Restated Employment Agreement.

     17.  Confidentiality. Executive agrees that the terms of this Amended and
          ---------------
Restated Employment Agreement will remain confidential, and that he shall not
disclose the contents or terms of the Amended and Restated Employment Agreement
to any other person or entity, except to accountants, financial advisors,
attorneys and governmental agencies on a need-to-know basis and in order to
comply with applicable tax laws.

                                       8
<PAGE>

     18.  Non-Solicitation; Non-Disparagement. In consideration for the benefits
          -----------------------------------
Executive is to receive herein Executive agrees that he (i) will not, at any
time during the one year following his termination date, directly or indirectly
solicit any individuals to leave the Company's or idealab!'s employ for any
reason or interfere in any other manner with the employment relationships at the
time existing between the Company or idealab! and their current or prospective
employees, and (ii) will not disparage, criticize, defame or slander the
Company, idealab! or their employees.

     19.  Further Assurances. Each of the Company and Executive agrees to take
          -------------------
promptly all actions necessary, proper or advisable or as the other may
reasonably request to fully carry out the intent and purpose of this Amended and
Restated Employment Agreement.

     20.  Representation by Counsel. Each of the Parties hereto acknowledge that
          -------------------------
they have been represented by independent counsel of their choice throughout all
negotiations which preceded the execution of this Amended and Restated
Employment Agreement, and that this Amended and Restated Employment Agreement
has been executed with the consent and on the advice of such independent legal
counsel.

     IN WITNESS WHEREOF, the undersigned have executed this Amended and Restated
Employment Agreement, effective as of the Effective Date.

                                       9
<PAGE>

                                                  CARSDIRECT.COM, INC.

                                                  By: _______________________

                                                  Name: _____________________

                                                  Title: ____________________

                                                  BILL GROSS' IDEALAB!

                                                  ________________________
                                                  Marcia Goodstein
                                                  Chief Operating Officer

                                                  EXECUTIVE

                                                  ________________________
                                                  Scott Painter

                                       10

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