Document:

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                                                                  EXHIBIT 10.17

                                                              FEBRUARY 15, 2000

                   MASTER ASSEMBLY AND DISTRIBUTION AGREEMENT

         This AGREEMENT is entered into as of the 19th day of February, 2000,
by and between Toshiba America Business Solutions, Inc., a California, U.S.A.
corporation having its principal place of business at 2 Musick, Irvine,
California 92618-1631 (hereinafter "TOSHIBA"), and T/R SYSTEMS, INC., a
Georgia, U.S.A. corporation having its principal place of business at 1300
Oakbrook Drive, Norcross, Georgia, U. S. A. 30093 (hereinafter "T/R").

                                   RECITALS:

         a.       T/R has designed and developed, and currently assembles,
                  distributes and sells, a proprietary commercial printing
                  system known as the MicroPress(R) Cluster Printing System,
                  which as of the date of this Agreement includes MicroPress(R)
                  Release 5.0.

         b.       T/R has proprietary skills, know-how, technology, inclusive
                  of trade secrets and other know-how, and patent rights
                  applicable to the product architecture, development, design,
                  assembly, manufacturing, connectivity, production and
                  distribution of the MicroPress(R) commercial printing system.

         c.       TOSHIBA desires to license certain rights and properties from
                  T/R so as to permit TOSHIBA to complete the assembly of
                  MicroPress(R) commercial printing systems, and to purchase
                  certain equipment from T/R to incorporate into such products,
                  .with such products to be distributed and sold by TOSHIBA and
                  either marked or identified with trademarks owned, possessed
                  or controlled by TOSHIBA marked or identified with trademarks
                  of a party other than TOSHIBA or for "private label"
                  distribution. This method of distribution shall involve the
                  assembly of Systems by TOSHIBA.

         d.       To accommodate the foregoing agreements, and to effect
                  certain other agreements and undertakings between T/R and
                  TOSHIBA, such parties have entered into this Agreement.

         NOW, THEREFORE, the parties hereby agree as follows:

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         1.       DEFINITIONS.

                  1.1      "Confidential Information" means information of
either party including, but not limited to, technical or non-technical data,
Know-how, trade secrets, skills and processes, from which either party derives
economic value by such information not being generally known to, and not being
readily ascertainable by proper means, by third parties, but excluding any such
information which (i) is publicly available through no fault of the receiving
party; (ii) is in the receiving party's possession free of any obligation of
confidence to T/R at the time it was communicated to the receiving party; (iii)
is received independently from a third party who is free to disclose such
information; or (iv) is demonstrated to have been subsequently and
independently developed by the receiving party without the use of confidential
information of the disclosing party. The parties hereby agree and acknowledge
that the Non-Disclosure Agreement dated August 20, 1999 shall be merged and
integrated into this Agreement. Furthermore, either party may disclose
Confidential Information of the other party to its Affiliates with prior
written consent of the other party, which consent shall not be unreasonably
withheld.

                  1.2      "Completion" means the stage where the connectivity
work of Systems under each project shall be fully performed by T/R in a
mutually agreed schedule and manner. For Completion, T/R will be subject to
inspection at each stage as agreed by the parties. Such inspection will include
appropriate testing. T/R will perform the testing and provide a report which
will be subject to TOSHIBA's approval, which approval may not be unreasonably
withheld.

                  1.3      "Customer" means any Person that acquires Systems
from TOSHIBA for its own use or for sale, lease or other disposition.

                  1.4      "Deliverables has the meaning set forth in Section 4
hereof.

                  1.5      "End User" means a Person that acquires a System
directly from TOSHIBA or indirectly from a Customer of TOSHIBA, and uses the
System for any purpose.

                  1.6      "Improvement" means any and all derivatives,
improvements or betterments of the Licensed Intellectual Property Rights made
by T/R or any other Person, including all intellectual property rights
pertaining thereto, including patent rights, copyright rights, trade secrets,
know-how or similar rights recognized under applicable law, and all technical
information, including, but not limited to computer programming code, including
object code and source code as well as associated procedural code, microcode,
firmware, programmable array logic, algorithms, programs, routines,
subroutines, designs, plans, methods, processes, systems, concepts, ideas,
formulae, flow charts, descriptions, schematics, lay-out drawings, assembly
drawings, printed circuit patterns, specifications, parts lists and inspection
and test procedures, experiments and inventions associated therewith.

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                  1.7      "Know-how" means knowledge, information, inventions
(other than those embodied in the Patent Rights), trade secrets and systems
used in the design, development, manufacture, assembly, servicing or testing of
the MicroPress(R) commercial printing system.

                  1.8      "License" means the license granted by T/R to
TOSHIBA pursuant to this Agreement.

                  1.9      "Licensed Intellectual Property Rights" means the
following rights, knowledge, know-how and similar intellectual property owned
by T/R and used in the design, development, manufacture, assembly, servicing or
testing of the Deliverables, System or any portion thereof:

                           (a)      Patent Rights;

                           (b)      Copyright rights and applications therefor
                                    (including the right to make derivative
                                    works);

                           (c)      Trade secrets;

                           (d)      Know-how and any other proprietary
                                    information; and

                           (e)      All Improvements.

                  1.10     "TOSHIBA Orders" has the meaning set forth in
Section 4 hereof.

                  1.11     "Patent Rights" means all T/R patents (including
applications therefor) pertaining to the Territory, whether now or hereafter
issued, containing a claim or claims in whole or in part covering the design,
development, use or manufacture of the Deliverables, the System or any portion
thereof, and all Improvements thereto that become the subject of a patent
application.

                  1.12     "Person" means any individual, partnership, joint
venture, corporation, trust, unincorporated organization, government,
governmental agency or any other entity.

                  1.13     "Affiliates" means group companies, or corporate
affiliates of either party.

                  1.14     "System" means commercial printing systems to be
assembled by or for TOSHIBA pursuant to the License and to incorporate the
Deliverables, all as more particularly described on Schedule A-1 hereto, or as
used herein as context may require, any portion thereof.

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                  1.15     "Technical Assistance" means the technical
assistance to be provided by T/R to TOSHIBA as provided in Section 3 hereof.

                  1.16     "Territory" shall mean the territory defined by
connectivity project as defined in Schedule A.

         2.       LICENSE.

                  2.1      Grant. Subject to the terms and conditions hereof,
T/R hereby grants to TOSHIBA and TOSHIBA hereby accepts from T/R a license
entitling TOSHIBA during the term of said license to use, on a non-exclusive
basis, the Licensed Intellectual Property Rights in and to the Deliverables to
complete and effect the assembly of the Systems and to distribute, sell or
lease the Systems to Customers for use by End Users located in the Territory.

                  2.2      No Sublicenses. This Agreement does not grant,
license or permit (either expressly or by implication) TOSHIBA to transfer,
assign, sell, give, license, sub-license, or in any way permit the use of the
Licensed Intellectual Property Rights in and to the Deliverables, by or to any
Person, other than (i) any of its Affiliates for the sole purpose of assembling
the Systems, or any components or subassemblies thereof; or (ii) any other
third party under TOSHIBA's supervision for the sole purpose of assembling the
Systems or any components or subassemblies thereof, for supply only to TOSHIBA.
If TOSHIBA becomes aware, or gains reasonable suspicion, of the unauthorized
use or exercise of the Licensed Intellectual Property Rights in and to the
Deliverables by any Person, then TOSHIBA shall forthwith notify T/R in writing
and cooperate with T/R, and at T/R's discretion, to abate or terminate such
unauthorized use or actions. With regard to Section 2.1 and 2.2, Toshiba TEC at
Shuwa-Shiba Park Building A, 2-4-1, Shibakoen, Minato-ku, Tokyo, 105-8524,
Japan, is considered a joint party to this agreement with TOSHIBA.

                  2.3      No Other Licenses. No license or right is granted
under this Agreement by T/R to TOSHIBA by implication, estoppel or otherwise,
except as expressly set forth in this Agreement and TOSHIBA may not use the
corporate names, trademarks, trade names, service marks, or logos of T/R
without the prior written consent of T/R.

                  2.4      Labeling. TOSHIBA shall apply to the Systems
assembled for sale by or for TOSHIBA to Customers a statement reasonably
located and sized, identifying the fact that the Systems are assembled under
license from T/R and, as applicable, are subject to patents or patents pending,
and which shall identify by number any issued patents which are part of the
Patent Rights. Such statement, and its proposed location and size, shall be
submitted to T/R by TOSHIBA in advance of its use for pre-approval by T/R,
which approval may not be unreasonably withheld.

                  2.5      Limitation on Use. TOSHIBA shall not use the Patent
Rights, the Know-how, the Licensed Intellectual Property Rights in and to the
Deliverables or

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any other T/R technology, for any purpose or purposes other than those
expressly permitted under the License.

         3.       TECHNICAL ASSISTANCE. To effectuate the purposes of this
Agreement, upon the reasonable request by TOSHIBA and subject to the terms and
conditions of the License, T/R, employing the Licensed Intellectual Property
Rights in and to the Deliverables into Systems, shall consult with TOSHIBA with
respect to (i) the design and operation of the Systems, inclusive of the
selection and design of print engine therefor; (ii) TOSHIBA's assembling of the
Systems for mass distribution; (iii) TOSHIBA's initiation of assembling for
commercial production of the Systems; (iv) TOSHIBA's outsourcing plans and
operations; (v) TOSHIBA's current and future device connectivity to the System;
and (vi) similar matters related thereto. In addition to consulting, T/R shall
provide standard training for TOSHIBA personnel, upon the reasonable request of
TOSHIBA. Each of T/R and TOSHIBA will appoint and assign a lead technical
liaison to interact and support the technical interface between T/R and
TOSHIBA. The initial connectivity project is specified on Schedule A-1, along
with other particulars concerning same. Additional device connectivity projects
requested by TOSHIBA and agreed to by T/R shall be reflected on further
schedules numbered A-2, A-3 and so forth ( each a connectivity project ).

         4.       DELIVERABLES.

                  4.1      For each System, T/R shall deliver, in accordance
with license/purchase orders made by TOSHIBA ("TOSHIBA Orders"), from time to
time and subject to availability, the following items constituting software and
related technology and communications hardware (and which items are defined
herein as the "Deliverables"):

                           (a)      Technology and Software Packages, which
                                    shall include the software in executable
                                    code and other technology, employing the
                                    Licensed Intellectual Property Rights, and
                                    providing the software and related
                                    technology principally required for
                                    operation of the Systems to be distributed
                                    by TOSHIBA pursuant to this Agreement;

                           (b)      Printlinks communication hardware used in
                                    and constituting a part of the Systems
                                    consisting of boards including print
                                    adaptors and host adaptors; and

                           (c)      MicroPress(R) ClusterServers with
                                    pre-configured software packages and host
                                    adaptors.

The Deliverables shall include, as appropriate, certain English language
documentation related thereto prepared by or for T/R. The Deliverables shall be
delivered F.O.B. T/R's warehouse in Norcross, GA if the Deliverables are to be
shipped to a destination in North America or F.O.B. U.S.A. Port ( i.e.,
Savannah, Georgia or comparable ) for other

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international shipments. All risk of loss shall be conveyed and passed to
TOSHIBA upon delivery of the Deliverables to TOSHIBA or its carrier or other
agent. To the extent any of the Deliverables includes Licensed Intellectual
Property Rights, including without limitation, software, codes, Know-how,
Patent Rights, Licensed Intellectual Property Rights and other such rights, no
title will pass to TOSHIBA but rather such property will be deemed licensed
pursuant to the License. Title will pass to TOSHIBA as to hardware, media and
other items included within the Deliverables which do not constitute nor
comprise Licensed Intellectual Property Rights.

                  4.2      TOSHIBA deliverables means any information or
materials provided by TOSHIBA to T/R under this Agreement or each connectivity
project as defined in Schedule A, which will be delivered to T/R in a manner
otherwise agreed upon by the parties hereto. T/R may use TOSHIBA deliverables
for the sole purpose described in this Agreement. TOSHIBA deliverables are and
shall remain TOSHIBA's property.

         5.       COMPENSATION.

                  5.1      Technology Access Fee. In exchange for T/R's
agreement to grant the License in respect of the Licensed Intellectual Property
Rights in and to the Deliverables, and in part for T/R's agreement to provide
the Technical Assistance pursuant to Section 3 hereof, TOSHIBA shall pay T/R
non-refundable technology access fee as specified on Schedule A-1, in respect
of the initial Connectivity Project, [ * ]. Additional technology access fees
shall be payable in respect of additional Connectivity Projects if any, as
specified in Schedule A applicable thereto.

                  5.2      License Fees and Equipment Purchase Price. For each
Deliverable, the license fees or equipment purchase price amounts, as the case
may be, shall [ * ] provided on T/R's United States End User Price List with
the exception of hardware deliverables such as PC Servers and consoles, which
if required will be at a [ * ], as in effect from time to time, which price
list is subject to change from time to time by T/R. Any change in T/R's
standard United States End User Price List will be effective as to TOSHIBA
Orders received after [ * ] days of the issuance of such revised price list.

                  5.3      Consulting, Training Compensation. As compensation
for the consulting and training required to be provided as Technical Assistance
pursuant to Section 3 hereof, TOSHIBA shall compensate T/R at T/R's standard
rates as in effect from time to time for consulting, and at T/R's standard
rates as in effect from time to time for training. In addition, TOSHIBA shall
reimburse T/R's travel and living expenses

* Confidential information has been omitted and filed separately with the
Commission.

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incurred in connection with such consulting and training. T/R's standard per
diem rates are subject to change from time to time by T/R. One training session
of up to one week will be provided at no charge to TOSHIBA ( other than travel
and living expenses ) at a mutually agreed time and location upon initial
completion of each Connectivity Project. TOSHIBA may subcontract to T/R the
technical training from both its dealers and end-user customers. Classes will
be provided to TOSHIBA dealers and customers at T/R Systems standard daily rate
per student. TOSHIBA may also provide direct access to the T/R Technical
Support Hotline to its dealers and customers, under mutually agreed pricing
terms and conditions.

         6.       PAYMENTS. Payments for technology access fees pursuant to
Section 5.1, for license fees and equipment purchase price amounts in respect
of the Deliverables pursuant to Section 5.2, for consulting and training
pursuant to Section 5.3 and for maintenance pursuant to Section 9 shall be due
and payable by TOSHIBA [ * ] days from the bill of lading date for shipments
and [ * ] days from invoice date for technology access fees or consulting
services. Unless otherwise agreed by T/R in writing, all payments by TOSHIBA
shall be remitted in immediately available U.S. Dollars by wire transfer per
T/R's instructions, and confirmation of each payment shall be made by TOSHIBA
to T/R by facsimile or telegraphic means to T/R's principal place of business.
A late payment charge of one and one-half percent (1.5%) per month shall be
charged upon unpaid balances due for more than [ * ]. All pricing and fees
under this Agreement are exclusive of taxes. Except for taxes based on T/R's
net income, TOSHIBA shall pay any national, federal, state, county, local or
other governmental taxes, fees or duties now or hereafter imposed on the
licensing, export, use or possession of the Licensed Intellectual Property
Rights and the Deliverables or any other transaction contemplated by this
Agreement, as well as any penalties or interest thereon.

         7.       TOSHIBA ORDERS.

                  7.1      The terms and conditions of this Agreement shall
apply to all TOSHIBA Orders submitted to T/R and supersede any different or
additional terms contained on TOSHIBA's Orders. TOSHIBA Orders are solely for
the purpose of requesting delivery dates and quantities. All orders are subject
to acceptance by T/R. T/R shall use reasonable efforts to provide for delivery
of accepted TOSHIBA orders.

                  7.2      Order Policy. TOSHIBA shall submit written orders to
T/R. All orders shall specify: (a) the quantities and descriptions of the
Deliverables; and b) requested delivery dates and shipping instructions. Orders
will be placed by the 10th day of the month, sixty (60) days in advance of
required delivery. PrintLink order quantities will include a firm order for the
first month plus a binding forecast for the next two months and a nonbinding
forecast for the fourth month. Other order quantities, to include Servers,
Software and Host Adapters, will include a firm order for the first month and a
binding forecast for the next two months.

                  7.3      The order procedures for "Spare Parts" are subject
to the Spare Parts ordering policies contained in Schedule B.

* Confidential information has been omitted and filed separately with the
Commission.

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         8.       MINIMUM PURCHASES. During the term of this Agreement, TOSHIBA
agrees to license and/or purchase as the case may be Deliverables for Systems
in the per annum quantities specified in Schedule A. Minimum purchase
requirements commence on Completion. In case TOSHIBA fails to realize the
minimum purchase requirements specified in Schedule A, then [ * ] TOSHIBA also
agrees to the activities detailed in Schedule A regarding the launch of the
Product in the TOSHIBA sales channels. Purchase overages for a year can be
carried over to the subsequent year.

         9.       MAINTENANCE. T/R shall provide TOSHIBA (not TOSHIBA Customers
or End Users) with software updates, major software releases and telephone
support for a annual maintenance charge per System. A maintenance charge at an
annual rate of [ * ] percent ([ * ]%) is due and payable quarterly as attested
below in respect of Deliverables purchases (including equipment purchases and
license fees). The maintenance charge is payable on the 15th day of January,
April, July and October in respect of the calendar quarter ending December 31,
March 31, June 30 and September 30, respectively, and such quarterly payment
shall equal [ * ] percent ([ * ]%) of the license fees and equipment purchase
price amounts paid or payable in respect of Deliverables ordered during such
calendar quarter and the same calendar quarter of each of the previous two
years of this Agreement. Such fee is only for maintenance provided in the
quarter the fee is payable. [ * ]

         10.      OWNERSHIP AND PROPRIETARY RIGHTS.

                  10.1     Ownership. T/R represents that it has all rights in
and to copyrights, trade secrets, patent rights and other intellectual property
rights associated with the Licensed Intellectual Property Rights and the
Deliverables as are necessary to license the Licensed Intellectual Property
Rights and license and/or sell the Deliverables, as the case may be, under and
pursuant to this Agreement.

                  10.2     Proprietary Rights. Either party acknowledges that
the Confidential Information constitute valuable trade secrets and confidential
information of the disclosing party. Ownership of all applicable copyrights,
trade secrets, patents and other intellectual property rights in the Licensed
Intellectual Property Rights and the Deliverables shall remain vested in T/R.
Title to all Licensed Intellectual Property Rights shall remain with T/R.
Either party shall not use or disclose the Confidential Information, except as
expressly permitted by this Agreement. TOSHIBA shall not remove T/R's copyright
notices, restricted rights legends or any other notices from the Deliverables
and such notices shall appear on all tapes, diskettes and other tangible media
distributed by TOSHIBA containing the Licensed Intellectual Property Rights or
constituting the

* Confidential information has been omitted and filed separately with the
Commission.

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Deliverables.

                  10.3     Unauthorized Use or Copying. Except as expressly
permitted hereunder, TOSHIBA shall not copy, modify or reproduce the
Deliverables in any way, nor shall it permit third parties to do so. TOSHIBA
shall fully cooperate with T/R in any action relating to enforcement of T/R's
proprietary rights.

                  10.4     End User License. TOSHIBA shall only distribute the
Deliverables to Customers for delivery to End Users in the Territory. TOSHIBA
shall inform the End User of the terms and conditions of the purchase of the
Deliverables and the Licensed Software. The terms and conditions of the
End-User Software License are in Schedule C. TOSHIBA shall make no
representations or warranties on behalf of T/R. TOSHIBA shall make no
representations to Customers or End Users or other third parties regarding the
Deliverables except as set forth in the applicable documentation therefor
provided by T/R. TOSHIBA will be responsible for all conversions, translations
and localizations necessary for use of the Deliverables by End Users in the
various countries included within the Territory, and shall assume and fulfill
any responsibility therefor of T/R imposed by local law or regulation. T/R will
schedule and provide software translation/localization services on a fee basis
for each translation/localization project.

                  10.5     Third Party Software. To the extent the software
included within the Deliverables constitutes software or other technology
rights owned by a third party and licensed to T/R, such software, and its
sublicense to TOSHIBA by T/R hereunder, is subject to all terms and conditions,
including where required, approval rights, of such third party license
agreements.

                  10.6     Security. The software included within the
Deliverables will be protected by a security mechanism known as a "dongle."
TOSHIBA may copy the software for distribution with T/R supplying the "dongle"
for the software for each System. TOSHIBA will ensure that such security
mechanisms remain intact and that such software remains secure from
unauthorized copying, reverse engineering and reverse compiling and
unauthorized distribution. TOSHIBA will use its best efforts to ensure that its
Customers adhere to such security mechanisms.

                  10.7     Indemnification. TOSHIBA agrees to indemnify and
hold harmless T/R from and against any claim, injury, loss or expense,
including attorneys' fees, arising out of (a) the failure of TOSHIBA to comply
with the provisions of Section 10, (b) any misrepresentations of TOSHIBA in
connection with T/R or the Deliverables or (c) any other wrongful conduct of
TOSHIBA or its agents.

         11.      WARRANTY.

                  11.1     T/R warrants to TOSHIBA that the hardware and
equipment included within the Deliverables, with the exception of PrintStations
and MicroScanners sold to TOSHIBA, pursuant to this Agreement will be free of
material defects for a period of [ * ], unless specifically stated differently,
from

* Confidential information has been omitted and filed separately with the
Commission.

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initial delivery. Should any defect in workmanship or material appear within
[ * ], unless specifically stated differently, after initial date of delivery,
T/R will (upon written notification thereof, delivered during the warranty
period, and substantiation by TOSHIBA that the hardware and equipment included
within the Deliverables have been stored, installed, maintained and operated in
accordance with T/R'S requirements and standard industry practice, and that the
defect(s) have not arisen from unauthorized repair, modification, or improper
connection by mechanical or electrical means to any other piece of equipment or
device) correct such defect(s) by suitable repair or replacement at T/R's
facilities, or at the place of business of T/R's designated local
representative, or at T/R's place of business, at T/R's option. T/R warrants to
TOSHIBA only that the PrintStations and MicroScanners sold to TOSHIBA pursuant
to this Agreement will be free of material defects for a period of [ * ];
unless specifically stated differently, from initial delivery.

                  All returns to T/R or its representative must be
pre-authorized in writing and shipped prepaid. T/R assumes no risk of loss or
damage prior to acceptance of delivery. Return shipment will not be prepaid by
T/R if inspection fails to disclose a warranted defect. It is agreed between
the parties that the foregoing shall be TOSHIBA's exclusive remedy for
warranted defects.

                  The sole purpose of this exclusive remedy shall be to provide
TOSHIBA with free repair and replacement of the defective parts in the manner
provided herein, and the hardware and equipment included within the
Deliverables shall not be deemed to have failed of its essential purpose so
long as T/R is willing and able to repair or replace defective parts in the
described manner.

                  THIS WARRANTY IS EXCLUSIVE AND IN LIEU OF (AND T/R DISCLAIMS)
ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR PARTICULAR PURPOSE OR OTHER
WARRANTY WHETHER EXPRESSED OR IMPLIED.

                  Correction of non-conformities, in the manner and for the
time period provided above, shall constitute fulfillment of all liabilities of
T/R to TOSHIBA with respect to, or arising out of, the goods or their use,
whether based on contract, negligence, strict liability or otherwise. TOSHIBA
shall be fully responsible for any warranty claims brought by its End-Users,
and shall hold T/R harmless with regard to same.

                  11.2     Licensed Software Warranty T/R makes no warranties
with regard to the software included within Deliverables, other than the
warranties offered in the End User Software License, including all warranties
of merchantability and fitness for a particular purpose. Except as therein
expressly provided, such software is provided to TOSHIBA on an "as-is" basis.

                  11.3     Product Liability

                           (a)      If any product liability accident occurs
                                    out of or in relation to

* Confidential information has been omitted and filed separately with the
Commission.

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Deliverables or Systems, and there is a reasonable suspicion that such accident
is caused by defect in Deliverables or Systems due to T/R's responsibility;
then T/R shall cooperate with TOSHIBA in the investigation of causes and
defending on such accident.

                           (b)      Should any claim or suit be made or filed
                                    for damages of product liability accident
                                    in relation to Deliverables or Systems as a
                                    result of any defect in Deliverables or
                                    Systems attributable to T/R's
                                    responsibility, T/R shall undertake the
                                    sole and complete defense of any such claim
                                    or suit at its own expense and
                                    responsibility, and indemnify TOSHIBA
                                    against all such damages and costs suffered
                                    or incurred by TOSHIBA. T/R shall
                                    investigate and study the possibility of
                                    recurrence of the product liability
                                    accident due to the same cause and report
                                    the result of such investigation to
                                    TOSHIBA; and T/R shall take proper and
                                    reasonable measures, at its own expenses
                                    and responsibility, to prevent the
                                    recurrence if the recurrence is foreseen as
                                    a result of the investigation. In the
                                    course of defense of claim or suit or
                                    measures of prevention of recurrence, T/R
                                    shall pay attention not to discredit
                                    TOSHIBA's name or trust, and shall consult
                                    with TOSHIBA in determining method of
                                    defense or preventive measures, although
                                    such defense or preventive methods shall be
                                    finally determined by T/R.

                           (c)      Notwithstanding the foregoing, T/R shall
                                    not be liable for any claim suit of product
                                    liability which is based on defect or
                                    failure caused by; 1) any modifications to
                                    the Deliverables or 2) documentation
                                    prepared or made by other party which is
                                    not authorized or designated by TR or 3)
                                    specifications designated by TOSHIBA or 4)
                                    use or combination of Deliverables or
                                    Systems with any hardware or software which
                                    is not intended or designated by T/R.

         12.      LIMITATION OF REMEDIES.

                  12.1     THE SOLE REMEDIES FOR BREACH OF ANY AND ALL
WARRANTIES AND THE SOLE REMEDIES FOR TR'S LIABILITY OF ANY KIND FOR SERVICES
PROVIDED PURSUANT TO THIS AGREEMENT AND ANY OTHER PERFORMANCE BY TR UNDER OR
PURSUANT TO THIS AGREEMENT SHALL BE LIMITED TO THIS AGREEMENT AND THE
ATTACHMENTS HERETO. IN NO EVENT SHALL TR'S LIABILITY TO TOSHIBA FOR DAMAGES OF
ANY NATURE EXCEED THE TOTAL CHARGES PAID FOR THE PRODUCT OR SERVICE UPON WHICH
SUCH LIABILITY IS BASED.

                  12.2     IT IS AGREED THAT EACH PARTY SHALL NOT BE LIABLE FOR
THE OTHER PARTY FOR ANY SPECIAL, INCIDENTAL, INDIRECT OR CONSEQUENTIAL DAMAGES
OR FOR THE LOSS OF PROFIT, REVENUE, PRODUCTS OR SERVICES EVEN IF HE SHALL HAVE
BEEN ADVISED OF THE POSSIBILITY OF SUCH POTENTIAL LOSS OR DAMAGE

                  12.3     TOSHIBA agrees that T/R shall not have any
responsibility for any equipment, service, hardware, software or other items
provided with or incorporated into the Systems by any persons other than T/R.

                  12.4     No action, whether in contract or tort, including
negligence,

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 arising out of the sale of the Deliverables or the performance of services
under this Agreement may be brought by the T/R or TOSHIBA more than [ * ] after
the cause of action arises, except for an action by the T/R for non-payment by
TOSHIBA

         13.      EPIDEMIC FAILURE. If TOSHIBA should discover epidemic
failures (same defects occurring from same cause) in at least [ * ] percent
([ * ]%) of deliverables delivered within a [ * ] month period or [ * ]
percent ([ * ]%) of deliverables delivered within a [ * ] month period,
TOSHIBA shall notify T/R of occurrence of such failure. After receiving such
notification by T/R, T/R shall inspect such failure of Deliverables. As a
result the inspection, in case that both parties recognize that such failure
is epidemic failure, then in addition to remedies in the preceding Section 11,
hereof, T/R shall reimburse all the costs incurred by TOSHIBA in rectifying
such epidemic failures in respect of Deliverables delivered to TOSHIBA within
the prior [ * ] months, including, but not limited to, the cost for callback
of such defective equipment or media from the market, subject to the
limitations of Section 12.

         14.      TOSHIBA'S AFFILIATES. Subsequent to the execution of this
Agreement, if TOSHIBA's Affiliates wish to be granted the License under this
Agreement, T/R agrees to enter into an agreement with such parties in
accordance with the terms and conditions under this Agreement with the
exception of purchase quantities, technical access fees, deliverable prices,
territories and product launch commitments. For the purpose of this Article,
TOSHIBA may disclose T/R's Confidential Information, the summary and sample of
Deliverables and Systems, and the contents and existence of this Agreement to
such parties upon execution of such agreements with T/R provided, however,
TOSHIBA will be jointly and severally liable for T/R with such parties under
this Agreement or any other Agreement executed by such parties.

         15.      TERM AND TERMINATION.

                  15.1     Expiration. This Agreement shall commence on the
date set forth above and shall continue for an initial term of three (3) years.
Thereafter, this Agreement shall be automatically renewed for additional terms
of one (1) year unless either party serves written notice, at least ninety (90)
days prior to the expiration of the initial term or any renewal term, of its
intention not to renew.

                  15.2     T/R Termination. This Agreement may be terminated by
T/R under any of the following conditions:

                           (a)      if one of the parties shall be declared
                                    insolvent or bankrupt;

                           (b)      if a petition is filed in any court and not
                                    dismissed in ninety (90) days to declare
                                    one of the parties bankrupt or for a
                                    reorganization under the Bankruptcy Law or
                                    any similar statute;

                           (c)      if a trustee in Bankruptcy or a receiver or
                                    similar entity is

* Confidential information has been omitted and filed separately with the
Commission.

                                    - 12 -
<PAGE>   13

                                    appointed for one of the parties;

                           (d)      if TOSHIBA does not pay T/R within sixty
                                    (60) days from receipt of a T/R invoice; or

                           (e)      if TOSHIBA commits a material breach of
                                    this Agreement which is not cured by
                                    TOSHIBA within sixty (60) days after notice
                                    of such breach is given by T/R.

                  15.3     TOSHIBA Termination. This Agreement may be
terminated by TOSHIBA upon a material breach by T/R which is not cured by T/R
within sixty (60) days after notice of such breach is given by TOSHIBA.

                           (a)      if one of the parties shall be declared
                                    insolvent or bankrupt;

                           (b)      if a petition is filed in any court and not
                                    dismissed in ninety (90) days to declare
                                    one of the parties bankrupt or for a
                                    reorganization under the Bankruptcy Law or
                                    any similar statute;

                           (c)      if a trustee in Bankruptcy or a receiver or
                                    similar entity is appointed for one of the
                                    parties;

                           (d)      if T/R does not pay TOSHIBA within sixty
                                    (60) days from receipt of a TOSHIBA
                                    invoice; or

                           (e)      if T/R commits a material breach of this
                                    Agreement which is not cured by T/R within
                                    sixty (60) days after notice of such breach
                                    is given by TOSHIBA.

                  15.4     EFFECT OF TERMINATION. Upon expiration or
termination of this Agreement:

                           (a)      T/R may stop accepting any orders from
                                    TOSHIBA, provided that T/R shall return all
                                    Confidential Information, Toshiba
                                    deliverables, promotional materials,
                                    marketing literature, written information
                                    and reports pertaining to the Systems that
                                    have been supplied by TOSHIBA.;

                           (b)      TOSHIBA shall immediately (i) pay to T/R
                                    all amounts remaining due under any
                                    contract or purchase order, (ii) remove
                                    from TOSHIBA's premises all signs
                                    advertising the Systems or the Trademarks,
                                    (iii) cease to engage in advertising or
                                    promotional activities concerning the
                                    Products and the use of Trademarks, (iv)
                                    cease to represent in any manner that
                                    TOSHIBA has been designated by T/R as a
                                    licensee for the Licensed Intellectual
                                    Property Rights, (v) order and promptly pay
                                    for the remaining balance (order
                                    requirements specified in Schedule A less
                                    systems ordered to date during the current
                                    term of the agreement) and (vi) return all
                                    confidential information, promotional
                                    materials, marketing literature, written
                                    information and reports pertaining to the
                                    Deliverables that have been supplied by
                                    T/R. Service manuals and materials required
                                    for on-going support of TOSHIBA customers
                                    may be retained upon written request from

                                    - 13 -
<PAGE>   14

                                    TOSHIBA specifying the specific manuals and
                                    materials to be retained and written
                                    approval by T/R which shall not be
                                    unreasonably withheld. The following
                                    provisions of this Agreement shall survive
                                    its termination: Sections 1.1, 5, 6, 7.3,
                                    10, 11, 12, 15, 16 and 17. In the event
                                    that TOSHIBA has any paid-up inventory of
                                    the Deliverables as of the date of
                                    termination under Section 15.2 or 15.3,
                                    termination of this Agreement shall be
                                    adjourned for a period not to exceed six
                                    (6) months, during which period TOSHIBA may
                                    continue to market and distribute its
                                    inventories of the Deliverables.

                           (c)      Neither party shall, in connection with the
                                    expiration and/or termination of this
                                    Agreement, have the right to claim any
                                    indemnity, reimbursement or compensation
                                    for alleged loss of clientele, goodwill,
                                    loss of profits on anticipated sales or the
                                    like or have any other liability for losses
                                    or damages resulting from the expiration or
                                    termination. Each party acknowledges that
                                    it has decided and will decide on all
                                    investments, expenditures and commitments
                                    in full awareness of the possibility of its
                                    potential losses or damages resulting from
                                    such expiration or termination and being
                                    willing to bear the risk therefor; and

                           (d)      If after the expiration or termination of
                                    this Agreement, TOSHIBA places orders and
                                    T/R accepts such orders by TOSHIBA for
                                    Deliverables thereof at the prices and
                                    terms prevailing under this Agreement or
                                    any other prices and terms, such acts on
                                    the part of T/R shall be fully gratuitous
                                    and shall not obligate T/R to continue any
                                    practice or course of trade not secured by
                                    written obligation. Any such T/R sales
                                    shall not renew this Agreement or waive its
                                    expiration or termination.

                           (e)      T/R shall make available to TOSHIBA the
                                    spare parts or equivalent replacements
                                    during the term of this Agreement and for a
                                    minimum of [ * ] from the earlier of the
                                    date of termination of this Agreement, the
                                    date of discontinuance of the item or the
                                    Deliverables or from delivery of the last
                                    unit of equipment included within
                                    Deliverables hereunder.

                  16.      INDEMNIFICATION.

                           16.1     Intellectual Property. T/R shall, at its
expense, defend any claim against TOSHIBA that use of the Deliverables
infringes a copyright, trade secret or patent right of any third party. T/R
shall pay any direct costs and damages attributable to such claim finally
awarded by a court against TOSHIBA on such claim. T/R shall have no liability
for any such claim if TOSHIBA is in material breach of this Agreement, or if
the claim is based on use of or anything other than an unaltered current
release of the Deliverables available from T/R, alone and not in combination
with any other software, data or hardware, if such infringement would have been
avoided by the use of a current unaltered release of the Deliverables available
from T/R.

                           16.2     Cooperation by TOSHIBA. T/R shall have no
obligations under Section 16.1 of this Agreement unless:

                                    (a)      T/R shall have been promptly
                                             notified of the suit or

* Confidential information has been omitted and filed separately with the
Commission.

                                    - 14 -
<PAGE>   15

                                             claim by TOSHIBA and furnished by
                                             TOSHIBA with a copy of each
                                             communication, notice or other
                                             action relating to said claim;

                                    (b)      T/R shall have the right to assume
                                             sole authority to conduct the
                                             trial or settlement of such claim
                                             or any negotiations related
                                             thereto at T/R's expense; and

                                    (c)      TOSHIBA shall provide reasonable
                                             information and assistance
                                             requested by T/R in connection
                                             with such claim or suit.

         17.      GENERAL.

                  17.1     Force Majeure. T/R shall not be liable for any delay
or failure in performance under this Agreement resulting directly or indirectly
from acts of God, or any causes beyond its reasonable control.

                  17.2     Jurisdiction and Venue. This Agreement shall be
governed by and construed in accordance with the laws of the State of Georgia,
U.S.A., without reference to its conflicts of laws provisions.

                  17.3     Arbitration. Any and all disputes arising under this
Agreement shall be amicably and promptly settled upon consultation between the
parties hereto, but in case of failure to reach such settlement, all disputes
that may arise under or in relation to this Agreement shall be submitted to
arbitration under the Commercial Arbitration Rules of the International Chamber
of Commerce. The cost of arbitration shall be borne equally by the parties. Any
award of the arbitration shall be final and binding upon the parties.

                  17.4     Entire Agreement. This Agreement, including the
Schedules and Exhibits attached hereto, constitutes the entire agreement
between the parties with respect to this subject matter and supersedes all
previous proposals, both oral and written, negotiations, representations,
writings and all other communications between the parties. This Agreement may
not be released, discharged, or modified except by an instrument in writing
signed by the parties. Provided however, the Non Disclosure Agreement concluded
between the parties hereto shall be merged and integrated into the related
Articles under this Agreement.

                  17.5     Independent Contractors. It is expressly agreed that
TOSHIBA and T/R are acting hereunder as independent contractors. Under no
circumstances shall any of the employees of one party be deemed the employees
of the other for any purpose.

                  17.6     Notice. Any notice required to be given by either
party to the other shall be deemed given if in writing and actually delivered
or if deposited in the United States mail in registered or certified form with
return receipt requested, postage

                                    - 15 -
<PAGE>   16

paid, addressed to the notified party at the address set forth herein.

                  17.7     Assignment. This Agreement is not assignable by
Either Party.

                  17.8     Severability. If any provision of this Agreement is
determined by a court of competent jurisdiction to be invalid or unenforceable,
such determination shall not affect the validity or enforceability of any part
or provision of this Agreement.

                  17.9     Waiver. No waiver by any party hereto of any breach
of any provisions hereof shall constitute a waiver of any other term of this
Agreement unless made in writing signed by such party.

                  17.10    Other Distribution. Nothing in this Agreement shall
be deemed to preclude T/R from distributing or licensing Deliverables and the
Licensed Intellectual Property Rights, as it deems appropriate, or from
appointing others to do so, in or outside of the Territory.

         18.      INTERNATIONAL MATTERS.

                  18.1     Export License. TOSHIBA shall be exclusively
responsible for the procurement and renewing of all export or import licenses
required under United States or any foreign law for the export or import of the
Deliverables or the value added products and shall pay all costs and other
expenses in connection with such procurement and renewal.

                  18.2     Export Assurance. Regardless of any disclosure made
by TOSHIBA to T/R of any ultimate destination of a Deliverable or any System
assembled using same, TOSHIBA shall not export or re-export directly or
indirectly the Deliverable or any System assembled using same, without first
obtaining the required written approval or export license, if any, to do so
from the United States Department of Commerce or any other agency of the U.S.
Government having jurisdiction over such transaction. TOSHIBA hereby assures
T/R that it does not intend to nor will it knowingly, without the prior written
consent, if required, of the Office of Export Administration of the U.S.
Department of Commerce, transmit or ship the Deliverable or any System
assembled using same, directly or indirectly, to any country as to which such
export is made unlawful as provided in laws or by regulations issued by the
U.S. Department of Commerce, or other such regulations as may be adopted from
time to time.

                  18.3     Compliance with Local Laws. TOSHIBA shall be
exclusively responsible at its own expense for compliance with all local laws
relating to a Deliverable or any System assembled using same, in the countries
in which TOSHIBA licenses or markets same.

                                    - 16 -
<PAGE>   17

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement by
a duly authorized representative as of the date set forth above.

T/R SYSTEMS, INC.                  TOSHIBA AMERICA BUSINESS SOLUTIONS, INC.

By: /s/  Mike Kohlsdorf            By: /s/
   -------------------------          ------------------------------------------
  Title: President / CEO             Title: VP/GM, Electronic Imaging Division
         -------------------                ------------------------------------

                                    - 17 -
<PAGE>   18

                                 SCHEDULE A- 1

                        DEVICE CONNECTIVITY DEVELOPMENT

Name of Device for Connectivity:  [ * ]

Authorized Territory for Distribution:  United States

Technology Access Fee NRE:  $[ * ]

Language Translation Fee:  Not Applicable (English Version Only)

Minimum Purchase Amount:                    Year 1  $[ * ]
                                            Year 2  $[ * ]
                                            Year 3  $[ * ]

         (MicroPress Cluster Servers, Software and PrintLinks for [ * ])

PRODUCT MARKETING REQUIREMENTS

         1.       TOSHIBA agrees to the following with regard to the launch of
         the product in the TOSHIBA Sales Channels during the initial term of
         this agreement.

                  -        Product Launch investments and activities will be
                           equivalent to a typical TOSHIBA launch for other
                           TOSHIBA digital products.

                  -        Marketing collateral will be developed and available
                           at launch for the deliverables equivalent to other
                           similar classes of TOSHIBA digital products.

                  -        Advertising and promotions programs equivalent to
                           other similar classes of TOSHIBA digital products.

                  -        Compensation programs for TOSHIBA Sales and Sales
                           Management equivalent to or better then other
                           similar classes of TOSHIBA digital products.

                  -        Sales, Service and Training programs equivalent to
                           other similar classes of TOSHIBA digital products.

         2.       Purchase quantities for additional terms of this agreement
         will be mutually agreed in accordance with Section 8.

Estimated Start Date:  [ * ]

Estimated Completion Date:  [ * ]

* Confidential information has been omitted and filed separately with the
Commission.

                                    - 18 -
<PAGE>   19

                              SCHEDULE A-1 (CON'T)

TOSHIBA PROJECT DELIVERABLES:

                  -        Supply of Video Interface

                  -        Technical Resource Availability for Video Interface
                           Clarification

                  -        Joint Development of Acceptance Criteria with T/R
                           Systems

                  -        [ * ] and Set-up to Support Project Plan ( [ * ] )

T/R PROJECT DELIVERABLES:

                  -        Project Scope and Definition
                  -        Project Plan
                  -        [ * ] PrintLink Design and Development
                  -        [ * ] Specific Software Design and Development
                  -        Regulatory Testing ( US Only )
                  -        Quality Assurance Testing
                  -        Packaging for Delivery of [ * ] PrintLink
                  -        Installation Instructions
                  -        Documentation Specific to [ * ] PrintLink and [ * ]
                           Specific Software [ * ]

* Confidential information has been omitted and filed separately with the
Commission.

                                    - 19 -
<PAGE>   20

                                  SCHEDULE A-2

                        DEVICE CONNECTIVITY DEVELOPMENT

Name of  Device for Connectivity:  [ * ]

Authorized Territory for Distribution:  United States

Technology Access Fee NRE:  $[ * ]

Language Translation Fee:  Not Applicable (English Version Only)

PRODUCT MARKETING REQUIREMENTS

         1.       TOSHIBA agrees to the following with regard to the launch of
         the product in the TOSHIBA Sales Channels during the initial term of
         this agreement.

                  -        Product Launch investments and activities will be
                           equivalent to a typical TOSHIBA launch for other
                           TOSHIBA digital products.

                  -        Marketing collateral will be developed and available
                           at launch for the deliverables equivalent to other
                           similar classes of TOSHIBA digital products.

                  -        Advertising and promotions programs equivalent to
                           other similar classes of TOSHIBA digital products.

                  -        Compensation programs for TOSHIBA Sales and Sales
                           Management equivalent to or better then other
                           similar classes of TOSHIBA digital products.

                  -        Sales, Service and Training programs equivalent to
                           other similar classes of TOSHIBA digital products.

         2.       Purchase quantities for additional terms of this agreement
         will be mutually agreed in accordance with Section 8.

Estimated Start Date:  [ * ]

Estimated Completion Date:  [ * ]

* Confidential information has been omitted and filed separately with the
Commission.

                                    - 20 -
<PAGE>   21

                              SCHEDULE A-2 (CON'T)

TOSHIBA PROJECT DELIVERABLES:

                  -        Supply of Video Interface

                  -        Technical Resource Availability for Video Interface
                           Clarification

                  -        Joint Development of Acceptance Criteria with T/R
                           Systems

                  -        [ * ] and Set-up to Support Project Plan

                  -        ([ * ])

T/R PROJECT DELIVERABLES:

                  -        Project Scope and Definition
                  -        Project Plan
                  -        [ * ] PrintLink Design and Development
                  -        [ * ] Specific Software Design and Development
                  -        Regulatory Testing ( US Only )
                  -        Quality Assurance Testing
                  -        Packaging for Delivery of [ * ] PrintLink
                  -        Installation Instructions
                  -        Documentation Specific to [ * ] PrintLink and [ * ]
                           Specific Software [ * ]

* Confidential information has been omitted and filed separately with the
Commission.

                                    - 21 -
<PAGE>   22

                                  ATTACHMENT B

     SPARE PARTS ORDERING POLICIES (SERVERS, MICROSCANNERS AND PRINTLINKS)

The policies and procedures which follow are subject to change upon [ * ] in
writing.

1.       Service Support. T/R shall offer to TOSHIBA spare parts required to
service/repair the Deliverables and provide TOSHIBA with a recommended spare
parts stocking guide which identifies the proper type of parts to be stocked on
an ongoing basis by TOSHIBA. TOSHIBA shall assume full responsibility for
stocking spare parts.

2.       Regular Spare Parts Ordering Procedures. T/R shall, from time to time
during the term of the Agreement, make available to TOSHIBA its most current
list of spare parts for the Deliverables, and the prices then applicable
thereto. In the event of manufacturer production or shipping delays, T/R shall
allocate distribution of such items in a fair, and equitable manner among all
customers, even though this may effectively limit delivery of ordered
quantities.

         (A)      Placement of Orders. TOSHIBA will place regular stocking
spare parts orders by formal purchase orders via TOSHIBA's written purchase
order form to T/R. A separate order must be submitted for each delivery date
and T/R part number must be referenced. Additionally, spare parts order's with
like delivery dates should be combined into a single order. A hard copy of all
TOSHIBA telephone orders must be received by T/R within three (3) days of
placement. T/R will confirm acceptance of such orders within three (3) weeks of
receipt of TOSHIBA's purchase order.

         (B)      Lead - Time. For all parts orders other than emergency parts
orders delivery will generally be made about [ * ] weeks after receipt of
order.

         (C)      Spare Parts Availability. In the event of discontinuance of a
spare part, its subsequent unavailability and need. T/R and TOSHIBA shall
discuss mutually satisfactory solutions which may include provision of
commercially available alternative sources.

         (D)      Spare Parts Pricing. During the term of this Agreement the
prices charged for spare parts will be the same as those offered to T/R's other
customers purchasing similar materials in the same or lesser quantities on
similar terms and conditions.

         (E)      Monthly Regular Stocking Order (Standard/Special Parts)
Limitations. T/R reserves the right to limit the maximum number of units of a
given part to be shipped to TOSHIBA in any one (1) month.

3.       Emergency Spare Parts Support

* Confidential information has been omitted and filed separately with the
Commission.

                                    - 22 -
<PAGE>   23

         (A)      Placement of Orders. TOSHIBA shall place emergency parts
orders via Purchase Orders, Telephone or Facsimile. All "Emergency Orders" must
be so noted at the time of placement and such a legend must appear on all
purchase orders. A separate order referencing T/R's part number must be
submitted for each delivery date. Packing slips will bear both T/R's and
TOSHIBA's part numbers if same appears on TOSHIBA's hard copy purchase order.

                  Until further notice, the telephone number for submitting
facsimile orders is 770-448-3202. Hard copies of or facsimiles of TOSHIBA's
telephone Emergency Orders must be received within twenty four (24) hours. T/R
shall confirm Emergency Orders immediately over telephone if in stock, or it
part number is out of stock, T/R will advise of estimated time of part number
arrival (availability) by facsimile within five (5) working days.

                  It is understood and agreed that emergency parts support will
be provided only when Systems is inoperative at End-User's location and TOSHIBA
has maintained a regular stock of spare parts which is exhausted and TOSHIBA
has no inventory at hand to effect the repair or has an open order for the
spare parts sought on an emergency basis.

                  T/R may decline to honor an emergency spare parts order where
(i) TOSHIBA has failed to maintain the inventory levels recommended in the
Recommended Stocking List or (ii) T/R does not have such spare part in its
inventory; provided however, that in such event, T/R shall advise TOSHIBA
within five (5) Days of the estimated date of delivery of such spare part.
Separate purchase orders must be issued by TOSHIBA for each shipment
destination.

         (B)      Lead-Time. Except when a spare part is not in stock, T/R will
generally ship within [ * ] working days of the receipt of an Emergency Order
or to meet TOSHIBA's due date whichever is later.

         (C)      Handling and Freight Charges. A handling charge equal to
[ * ] percent ([ * ]%) of the regular TOSHIBA price for the part shall be added
to any part shipped from stock, except when the part had been previously ordered
by TOSHIBA and has not been delivered within the time frames set forth in 2.B
above. TOSHIBA shall designate the method of delivery and shall bear the costs
hereof.

         (D)      Emergency Order Limitations. A daily maximum of [ * ] part
numbers, each with no more than [ * ] units may be ordered.

4.       Duration of Spare Parts Support

         T/R shall make available to TOSHIBA the spare parts and consumables
during the term of this Agreement and for a minimum of [ * ] years from the
earlier of the date of termination to the Agreement, the date of discontinuance
of the item or the Deliverables or from delivery of the last unit of equipment
included within Deliverables hereunder. Thereafter, T/R shall give TOSHIBA
ninety (90) days prior written notice of

* Confidential information has been omitted and filed separately with the
Commission.

                                    - 23 -
<PAGE>   24

discontinuance and the opportunity to purchase a reasonable number of such
parts within the said ninety (90) day period.

         T/R shall, from time to time, during the term of the Agreement, make
available to TOSHIBA its most current list of supplies for the Deliverables and
the prices then applicable thereto In the event of manufacturer production or
shipping delays, T/R shall allocate distribution of such items in a fair and
equitable manner among all other customers, even though this may effectively
limit delivery of ordered quantities.

5.       Terms of Payment for Spare Parts and Repairs

         Payment is due [ * ] days after bill of lading date.

         ALL SPARE PARTS PRICES FOR T/R ARE QUOTED ON A F.O.B. NEAREST U.S.
SHIPPING POINT WHERE PARTS ARE THEN AVAILABLE. THEY SHALL BE INVOICED AND
PAYABLE IN U.S. DOLLARS.

6.       Service Documentation

         T/R will supply TOSHIBA, one set of documentation with the initial
delivery of Deliverables. TOSHIBA may purchase reasonable additional quantities
of documentation for TOSHIBA's internal use only at T/R's then prevailing
prices. With reasonable lead-time, T/R shall deliver to TOSHIBA artwork for
reproduce and publish portions of said documentation for incorporation in
TOSHIBA's own User Manual and Field Maintenance Manual(s). Such manual(s) of
TOSHIBA shall bear a copyright notice of TOSHIBA provided, however, that any
copyright interest of TOSHIBA therein shall be subordinate to any existing
copyright interest of T/R or such other author as T/R may designate.

* Confidential information has been omitted and filed separately with the
Commission.

                                    - 24 -
<PAGE>   25

                                  ATTACHMENT C

                   MICROPRESS(TM) SOFTWARE LICENSE AGREEMENT

This Software License Agreement enumerates the terms and conditions upon which
T/R Systems, Inc., grants use of the MicroPress software programs ("Software")
and MicroPress documentation ("Documentation") to the end-user of the
MicroPress digital printing system. T/R Systems, Inc., the owner and licensor
of the Software and Documentation, is referred to as "Licensor", and the
end-user and purchaser of the MicroPress(C) system is referred to as the
"User".

1.       LICENSE. Licensor is the exclusive owner of the Software and
Documentation. Licensor grants to User, and User accepts, a non-exclusive
license to use the Software and Documentation.

User's right to use the MicroPress Software and Documentation under this
Agreement is called the "License." Software means the computer programs
included within the MicroPress digital printing system being sold to User
contemporaneously with delivery of this Agreement (the "Purchased MicroPress").
Documentation means any user manual and other materials provided User relating
to the Software.

2.       AUTHORIZED USER. User alone has the right to use the Software and
Documentation. User may not allow another person or entity to use the Software
or Documentation, except to the extent permitted by Section 4 of this
Agreement.

3.       AUTHORIZED USE. User may use the Software and Documentation only with
the MicroPress digital printing system at User's principle place of business.
User may not use the Software in respect of any other printers or any other
equipment whatsoever.

Without T/R Systems' prior express written consent, User may NOT (a) copy the
Software, (b) copy the Documentation, other than for its internal use; (c)
decompile, disassemble, reverse engineer, or cross-compile the Software or seek
to do any of the foregoing; (d) merge or embed the Software into another
program; or (e) modify or alter the Software or Documentation, or (f) install
the Software on any equipment outside its principal place of business.

4.       ASSIGNMENT. User may assign the License to another person, but ONLY if
(a) prior written approval is obtained from the Company, (b) the assignment is
for the remainder of the License term, (c) User delivers all of the Software
and Documentation to the assignee, (d) the assignee delivers the Software
License Agreement in this form in favor of Licensor, (e) the entire Purchased
MicroPress system is transferred and delivered to the assignee and (f) the
assignee agrees in writing with T/R Systems to be bound by the terms hereof.

When User assigns this License, User's right to use the Software and
Documentation ends. User may not assign the License or direct product of the
Software or

                                    - 25 -
<PAGE>   26

Documentation to persons located in certain countries specified by the United
States Export Administration Act.

5.       TERM. The License is effective for a term coincident with use of the
Purchased MicroPress. Licensor may terminate the License if User violates this
Agreement. User must then return the Software and the Documentation and all
copies thereof to Licensor.

6.       LICENSOR'S RIGHTS. Licensor's Software and Documentation contain
confidential unpublished information protected by copyright, trade secret,
trademark and patent laws. User may not disclose the Software or Documentation
to others, or remove or alter Licensor's ownership and copyright notices on the
Software, Purchased MicroPress or the Documentation. User must prevent any
unauthorized use, copying, or disclosure of the Software and Documentation.
These obligations survive any termination or the License.

7.       INFRINGEMENT. User shall promptly notify Licensor if any party makes a
claim against User that the Software or Documentation infringes its rights. If
User gives Licensor sufficient notice and such claim of infringement is deemed
by Licensor to represent a bona fide claim, Licensor will at its option defend,
settle or compromise such claim. Licensor may at its option make the Software
and Documentation non-infringing, obtain for User the right to use the Software
and Documentation, or give User an appropriate refund based on the depreciated
value of the Software and the Documentation. This is User's sole remedy in the
event of a claim of infringement.

8.       LIMITED WARRANTY AND DISCLAIMER OF OTHER WARRANTIES AND LIABILITIES.
Licensor warrants that the Software will be free of material defects for a
period of [ * ] days immediately following the date of delivery. Without
limiting the generality of the foregoing, Licensor shall not have any
responsibility for any third party products, service, hardware, software or
other items provided with or incorporated into the MicroPress digital printing
system.

EXCEPT FOR THE LIMITED WARRANTY DESCRIBED ABOVE, THERE ARE NO WARRANTIES,
EITHER EXPRESSED OR IMPLIED, FOR THE SOFTWARE OR DOCUMENTATION, WHICH ARE
LICENSED TO USER "AS IS." LICENSOR EXPRESSLY DISCLAIMS ANY WARRANTY AS TO
PERFORMANCE OF THE SOFTWARE OR AS TO RESULTS USER MAY OBTAIN FROM IT. LICENSOR
ALSO EXPRESSLY DISCLAIMS ALL OTHER WARRANTIES, INCLUDING (WITHOUT LIMITATION)
IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

IN NO EVENT SHALL LICENSOR, OR ANYONE ELSE WHO HAS BEEN INVOLVED IN THE
CREATION, PRODUCTION, OR DELIVERY OF THE SOFTWARE OR DOCUMENTATION, BE LIABLE
FOR ANY INDIRECT, SPECIAL, CONSEQUENTIAL OR INCIDENTAL DAMAGES WHETHER ARISING
IN CONTRACT OR IN TORT RESULTING FROM THE USE OF THE SOFTWARE OR DOCUMENTATION
OR ARISING OUT OF ANY BREACH OF ANY WARRANTY.

* Confidential information has been omitted and filed separately with the
Commission.

                                    - 26 -
<PAGE>   27

IN NO EVENT SHALL THE LICENSOR'S LIABILITY TO USER FOR DAMAGES OF ANY NATURE
EXCEED THE TOTAL CHARGES PAID FOR THE SOFTWARE OR DOCUMENTATION BY THE USER.

9.       GENERAL. This Agreement shall be governed by the laws of the State of
Georgia and the United States. If, notwithstanding the foregoing choice of law,
the law of another jurisdiction is applied to this Agreement, then any term of
this Agreement found to be inconsistent with such law shall automatically be
deemed to be revised to the limited extent necessary to comport with such law
without affecting any of the remaining terms. Any waiver by Licensor of a
breach of this Agreement shall not constitute a waiver of any later breach. No
legal action arising out of this Agreement may be commenced by User more than
one year after the cause of action has accrued. In any legal action to enforce
this Agreement, the prevailing party shall be entitled to recover reasonable
expenses and attorneys' fees.

This Agreement represents the entire and complete agreement between the parties
hereto, and supersedes any prior agreement, oral or written, and any other
communications between the parties on the Software and Documentation. This
Agreement will be effective upon delivery of the MicroPress digital printing
system together with the License Software and Documentation.

T/R Systems, Inc.
1300 Oakbrook Drive
Norcross, GA  30093

                                    - 27 -<PAGE>   1
                                                                    EXHIBIT 10.2

                             CONTRIBUTION AGREEMENT

         THIS CONTRIBUTION AGREEMENT (the "Agreement") is entered into as of
this 20th day of August, 1999, among Manheim Auctions, Inc., a Delaware
corporation ("Manheim"), ADP, Inc., a Delaware corporation ("ADP"), Trader
Publishing Company, a Virginia general partnership ("Trader"), AutoConnect,
L.L.C., a Delaware limited liability company (the "Company"), TPI, Inc., a
Delaware corporation ("Cox"), and LTM Company, L.P., a Virginia limited
partnership ("Landmark").

                                    RECITALS:

         A. The Company was formed by Manheim and ADP in 1997 in order to
provide consumer shopping and information services over the Internet to buyers
and sellers of automobiles and other vehicles.

         B. In connection with such formation, Manheim and ADP each made certain
contributions and services commitments to the Company pursuant to an Operating
Agreement dated as of December 18, 1997 (the "Initial Operating Agreement").

         C. Trader provides similar consumer shopping and information services
to buyers and sellers of automobiles and other vehicles and merchandise both
through print publications and over the Internet (such service for buyers and
sellers of Automobiles over the Internet, the "Online Automotive Business").

         D. Cox and Landmark, as the only partners of Trader, desire to cause
Trader to contribute and license to the Company certain assets related to
Trader's Online Automotive Business, become Members of the Company, and for
Trader to enter into certain relationships with respect to its print
publications and other businesses (including its businesses on the Internet).

         E. Manheim and ADP desire to admit Cox and Landmark as Members pursuant
to the Amended and Restated Limited Liability Company Agreement attached as
Exhibit A (the "Restated LLC Agreement"), and all such Members desire to restate
or establish, as applicable, the services commitments between the Company and
each of Manheim, ADP and Trader.

         In consideration of the mutual covenants contained herein, and other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:

1.       DEFINED TERMS

All capitalized terms that are not defined herein shall have the meanings set
forth in Schedule 1 to this Agreement.

<PAGE>   2

2.       COVENANTS AND UNDERTAKINGS

         2.1. Contribution and License of Assets. Subject to the terms and
conditions set forth in this Agreement, Trader hereby agrees to:

                  (a) Contribution. Contribute, transfer, assign and deliver to
the Company at the Closing, free and clear of any claims, liabilities,
mortgages, liens, pledges, charges or encumbrances of any nature whatsoever, the
following assets related to the Online Automotive Business (the "Contributed
Assets"):

                           (i) The Automotive Data on Trader's Automotive Pages
as of the Closing Date.

                           (ii) All rights, title and interest of Trader under,
and existing goodwill associated with, contracts and insertion orders (the
"Dealer Contracts") to provide web site development, hosting and maintenance
services (the "Dealer Web Site Services") to Automobile dealers. ("Dealer
Contracts" specifically excludes any Excluded General Contract, defined below,
that may relate to Dealer Web Site Services.)

                           (iii) All rights, title and interest, including the
rights to receive fees and other payments, related to, and existing goodwill
associated with, Dealer Web Site Services under the Dealer Contracts which
relate to services rendered after the Closing Date.

                           (iv) A copy of Trader's books and records related to
Dealer Contracts and Dealer Web Site Services.

                           (v) The contracts listed on Schedule 2.1 (certain
data distribution, data hosting, re-sale, advertising (liner/text ads), and
other contracts related to the Automotive Pages) (the "Assigned General
Contracts").

     The foregoing notwithstanding, to the extent that any Assigned General
Contract is not capable of being sold, assigned, transferred, delivered or
subleased without the waiver or consent of any third person (including a
government or governmental unit) and such waiver or consent is not obtained at
or prior to the Closing Date, then this Agreement and any assignment executed
pursuant hereto pertaining to such contract or agreement, to the extent
permitted by law, shall constitute an equitable assignment by Trader to the
Company of all of Trader's rights, benefits, title and interest in and to such
contract or agreement (except to the extent such rights relate to periods prior
to Closing), and where necessary or appropriate, the Company shall be deemed to
be Trader's agent for the purpose of completing, fulfilling and discharging all
of Trader's rights, obligations and liabilities arising after the Closing Date
under such contract or agreement and such contracts and agreements shall
continue to be deemed "Assigned General Contracts" for purposes hereof. The
Company and Trader shall work cooperatively to obtain any necessary third party
waiver or consent to the Assigned General Contracts, with Trader sending the
requisite notices of assignment promptly after Closing.

                  (b) License. Enter into a license agreement in the form
attached to this Agreement as Exhibit B (the "License Agreement") related to the
use of the names, service marks

                                       2
<PAGE>   3

and trademarks "Auto Trader" and "autotrader.com" (the "Trademark License") in
connection with the Company's Business (as defined in the Restated LLC
Agreement) and Trader's rights to the URLs http://www.autotrader.com and
http://www.automart.com (the "Licensed Domain Names") and certain other rights
(collectively with the Trademark License and the license to the Licensed Domain
Names, the "License", and the rights so licensed, the "Licensed Rights").

         2.2. Excluded Assets. Notwithstanding anything contained in this
Agreement to the contrary, Trader shall only be obligated to contribute the
Contributed Assets and license the Licensed Rights, and all other assets and
properties of Trader are specifically excluded from the Contributed Assets and
Licensed Rights, including, without limitation, the contracts listed on Schedule
2.2 (the "Excluded General Contracts" and collectively with the Assigned General
Contracts, the "General Contracts"), cash and any payments due under the Dealer
Contracts or General Contracts relating to any time on or prior to the Closing.

         2.3. Valuation of Contributed Assets and License. The Members
acknowledge and agree that for the purposes of valuing Trader's contribution to
the Company and the initial capital accounts of Cox and Landmark, the fair
market value of the Contributed Assets and the License shall be deemed to be
$43,333,333.

         2.4. Consideration and Issuance. In consideration of the contribution
and delivery of the Contributed Assets contemplated by Section 2.1 and the
consummation of the other transactions contemplated by this Agreement, at
Closing, the Company will issue to each of Cox and Landmark 250,000 Class A
Units of the Company (the "Contribution Units") and the Members will execute and
deliver the Restated LLC Agreement in furtherance of Cox's and Landmark's
admission as Members. On the basis of the capitalization schedule attached as
Schedule 2.4, the Contribution Units shall reflect an aggregate percentage
interest in the Company of 25.84% immediately after the Closing (assuming the
assignment by Cox of 18,634 of its Contribution Units to KPCB Holdings, Inc., as
nominee, pursuant to the Cox/KPCB Assignment, defined below).

         2.5. Assumption of Certain Liabilities and Obligations; Excluded
Liabilities. The Company agrees that from and after the Closing, it shall assume
and pay, discharge and perform (a) all the obligations and liabilities of Trader
to advertisers, insofar as such obligations and liabilities relate to the
provision of advertising on the Automotive Pages after the Closing, (b) all the
obligations and liabilities of Trader under the Dealer Contracts and Assigned
General Contracts arising after the Closing, (c) all trade accounts payable and
accrued expenses related to Trader's Online Automotive Business, insofar as such
payables and expenses relate to the provision of Dealer Web Site Services or
services that would have been provided on the Automotive Pages after the
Closing, and (d) the Accrued Payroll Liabilities of the Transferred Employees.
All other obligations and liabilities of Trader, including, without limitation,
any obligations under the Dealer Contracts and Assigned General Contracts
relating to any time on or prior to the Closing, and any Employee Plan,
Compensation Arrangement, Multi-employer Plan or employment or collective
bargaining agreement of Trader, shall remain and be the obligations and
liabilities solely of Trader. Other than as specified herein, the Company shall
assume no liabilities or obligations of Trader.

                                       3
<PAGE>   4

3.       REPRESENTATIONS AND WARRANTIES OF TRADER

Trader represents and warrants to the Company, Manheim, ADP and their respective
successors and assigns that the statements contained in this Article 3 are
correct and complete as of the date of this Agreement. Whenever a statement is
qualified by "knowledge" of Trader, such knowledge means the actual knowledge of
Trader's executive officers.

         3.1. Organization, Standing and Authority. Trader is a partnership duly
formed and validly existing under the laws of the Commonwealth of Virginia.
Trader has all requisite power and authority (a) to execute, deliver and perform
this Agreement and all Related Agreements; and (b) to consummate the
transactions contemplated hereby and thereby.

         3.2. Authorization and Binding Obligation. All action on the part of
Trader and its Board of Directors and partners necessary for the authorization,
execution, delivery and performance by Trader of this Agreement and all Related
Agreements has been taken. This Agreement has been duly executed and delivered
by Trader, and this Agreement and the Related Agreements constitute or will
constitute, when duly executed and delivered, the valid and legally binding
obligations of Trader, enforceable against it in accordance with their
respective terms, except as enforceability may be limited by bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance and other similar
laws from time to time in effect affecting the enforcement of creditors' rights
generally, and except as enforcement of remedies may be limited by general
equitable principles.

         3.3. Absence of Conflicting Agreements. Subject to obtaining the Trader
Consents by the Closing Date, the execution, delivery and performance of this
Agreement and the Related Agreements by Trader and the consummation of the
transactions contemplated hereby (with or without the giving of notice, the
lapse of time, or both): (a) will not conflict with any provision of the Joint
Venture Agreement of Trader; (b) will not, to Trader's knowledge, conflict with,
result in a breach of, or constitute a default under, any applicable law, rule
or regulation or any applicable judgment, order, ordinance, injunction or decree
of any court or governmental instrumentality; and (c) will not conflict with,
constitute grounds for termination of, result in a breach of, constitute a
default under, or accelerate or permit the acceleration of any performance
required by the terms of, any of the contracts included in the Contributed
Assets or directly related to the Licensed Rights, or, to Trader's knowledge,
any other material agreement, instrument, franchise, certificate, license or
permit to which Trader is a party or may be bound or by which the Contributed
Assets or the Licensed Rights are affected.

         3.4. Contracts. Schedule 3.4 contains a list (including memoranda of
oral contracts) of all the Dealer Contracts and Assigned General Contracts. All
of the Dealer Contracts and Assigned General Contracts are in full force and
effect and are valid and binding upon Trader and enforceable in accordance with
their terms, except as enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium and other similar laws from time to time in effect
affecting the enforcement of creditors' rights generally, and except as
enforcement of remedies may be limited by general equitable principles. There is
not under any Dealer Contract or Assigned General Contract any material default
by Trader, or to the knowledge of Trader, any other party thereto, or any event
which, after notice or lapse of time, or both, would constitute such a default.

                                       4
<PAGE>   5

Each Dealer Contract and Assigned General Contract identified on Schedule 3.4 as
an oral contract, if any, is, to Trader's knowledge, terminable at will by
Trader or its assignee with no penalty, fee or further obligation of any kind
associated with such termination.

         3.5. Consents. Except for the Consents listed in Schedule 3.5, no
consent, approval or authorization of, or declaration to or filing with any
governmental or regulatory authority or any other third party is required to
permit Trader to assign or transfer the Contributed Assets to or to enter into
the License Agreement or to consummate the transactions contemplated hereby.

         3.6. Compliance with Laws. Trader is presently operating and has in the
past operated its business so as to comply in all material respects with all
applicable statutes, ordinances, rules, regulations, laws and orders of any
federal, state or local governmental authority.

         3.7. Employee Benefit Plans. Except for the Accrued Payroll Liabilities
described on Schedule 3.7, Trader does not have any Employee Plans or
Compensation Arrangements as to which the Company will be required to make any
contributions or with respect to which the Company shall have any obligation or
liability whatsoever, after the Closing.

         3.8. Taxes. Trader has filed or will file all requisite federal, state,
local and other Tax Returns, and has paid or will pay all Taxes due under such
Tax Returns, which, if not filed or paid, could result in the imposition of any
lien or encumbrance on or against the Contributed Assets or Licensed Rights. As
of the Closing Date, Trader shall have filed or will file all such Tax Returns
due for all fiscal periods ended on or before the Closing Date (except any such
Tax Returns for which the filing date has been extended in accordance with
normal extension procedures or for which such extension period has not expired),
and shall have paid all Taxes due under such Tax Returns.

         3.9. Claims and Legal Actions. Except as set forth in Schedule 3.9 and
except for any investigations or rule-making proceedings generally affecting the
Internet industry, there is no claim, legal action, counterclaim, suit,
arbitration, governmental investigation or other legal, administrative or tax
proceeding, nor any order, decree or judgment, in progress or pending, or to the
knowledge of Trader, threatened against or relating to any of the Contributed
Assets or Licensed Rights.

         3.10. Title to Contributed Assets. Trader has the valid right to
contribute or provide to the Company the Automotive Data that is included among
the Contributed Assets. The Dealer Contracts to be assigned to the Company
hereunder are all of the contracts through which Trader's Online Automotive
Business has provided Dealer Web Site Services immediately prior to the Closing.

4.       REPRESENTATIONS AND WARRANTIES OF MANHEIM

Manheim represents and warrants to the Company, ADP, Trader and their respective
successors and assigns that the statements contained in this Article 4 are
correct and complete as of the date of this Agreement:

                                       5
<PAGE>   6

         4.1. Organization, Standing and Authority. Manheim is a corporation
duly organized, validly existing and in good standing under the laws of the
State of Delaware. Manheim has all requisite corporate power and authority (a)
to execute, deliver and perform this Agreement and all Related Agreements; and
(b) to consummate the transactions contemplated hereby and thereby.

         4.2. Authorization and Binding Obligation. All corporate action on the
part of Manheim and its Board of Directors and stockholders necessary for the
authorization, execution, delivery and performance by it of this Agreement and
the Related Agreements has been taken. This Agreement has been duly executed and
delivered by Manheim, and this Agreement and the Related Agreements constitute
or will constitute, when duly executed and delivered, the valid and legally
binding obligations of Manheim, enforceable against it in accordance with their
respective terms, except as enforceability may be limited by bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance and other similar
laws from time to time in effect affecting the enforcement of creditors' rights
generally, and except as enforcement of remedies may be limited by general
equitable principles.

         4.3. Absence of Conflicting Agreements. The execution, delivery and
performance of this Agreement and the Related Agreements by Manheim and the
consummation of the transactions contemplated hereby (with or without the giving
of notice, the lapse of time, or both): (a) will not conflict with any provision
of the Certificate of Incorporation or Bylaws of Manheim; (b) will not conflict
with, result in a breach of, or constitute a default under, any applicable law,
rule or regulation or, to the knowledge of Manheim, any applicable judgment,
order, ordinance, injunction or decree of any court or governmental
instrumentality; and (c) will not conflict with, constitute grounds for
termination of, result in a breach of, constitute a default under, or accelerate
or permit the acceleration of any performance required by the terms of, any
material agreement, instrument, franchise, certificate, license or permit to
which Manheim is a party or may be bound.

         4.4. Consents. No consent, approval or authorization of, or declaration
to or filing with any governmental or regulatory third party is required to
permit Manheim to consummate the transactions contemplated hereby.

5.       REPRESENTATIONS AND WARRANTIES OF ADP

ADP represents and warrants to the Company, Manheim, Trader and their respective
successors and assigns that the statements contained in this Article 5 are
correct and complete as of the date of this Agreement:

         5.1. Organization, Standing and Authority. ADP is a corporation duly
organized, validly existing and in good standing under the laws of the State of
Delaware. ADP has all requisite corporate power and authority (a) to execute,
deliver and perform this Agreement and all Related Agreements; and (b) to
consummate the transactions contemplated hereby and thereby.

                                       6
<PAGE>   7

         5.2. Authorization and Binding Obligation. All corporate action on the
part of ADP and its Board of Directors and stockholders necessary for the
authorization, execution, delivery and performance by it of this Agreement and
the Related Agreements has been taken. This Agreement has been duly executed and
delivered by ADP, and this Agreement and the Related Agreements constitute or
will constitute, when duly executed and delivered, the valid and legally binding
obligations of ADP, enforceable against it in accordance with their respective
terms, except as enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance and other similar laws from
time to time in effect affecting the enforcement of creditors' rights generally,
and except as enforcement of remedies may be limited by general equitable
principles.

         5.3. Absence of Conflicting Agreements. The execution, delivery and
performance of this Agreement and the Related Agreements by ADP and the
consummation of the transactions contemplated hereby (with or without the giving
of notice, the lapse of time, or both): (a) will not conflict with any provision
of the Certificate of Incorporation or Bylaws of ADP; (b) will not conflict
with, result in a breach of, or constitute a default under, any applicable law,
rule or regulation or, to the knowledge of ADP, any applicable judgment, order,
ordinance, injunction or decree of any court or governmental instrumentality;
and (c) will not conflict with, constitute grounds for termination of, result in
a breach of, constitute a default under, or accelerate or permit the
acceleration of any performance required by the terms of, any material
agreement, instrument, franchise, certificate, license or permit to which ADP is
a party or may be bound.

         5.4. Consents. No consent, approval or authorization of, or declaration
to or filing with any governmental or regulatory third party is required to
permit ADP to consummate the transactions contemplated hereby.

6.       REPRESENTATIONS AND WARRANTIES OF THE COMPANY

The Company makes the representations and warranties to Trader, Cox, Landmark
and their successors and assigns that are made by the Company to ATC Holdings,
Inc. ("ATCHI") in the separate Unit Purchase Agreement dated as of the date
hereof (the Unit Purchase Agreement") to which ATCHI and the Company are
parties. Each such representation and warranty is incorporated by reference
herein and shall apply as if fully set forth herein, provided that (a) each
reference to Purchase Units shall be deemed in this Agreement to refer to the
Contribution Units, (b) each reference to this "Agreement" and the "Related
Agreements" shall be deemed to be a reference to this Agreement and the Related
Agreements, as each is defined hereunder, (c) each reference to the Subscription
Closing shall be deemed in this Agreement to refer to the Closing, (d) Schedule
4.4 shall be deemed in this Agreement to refer to Schedule 6 to this Agreement
and (e) each other defined term shall be deemed to have the meaning given to it
in the Unit Purchase Agreement and each such representation and warranty shall
be limited as to survivability as provided in the Unit Purchase Agreement.

7.       ADDITIONAL COVENANTS

         7.1. Cooperation. The parties shall cooperate fully with each other and
their respective counsel and accountants in connection with any actions required
to be taken as part of their

                                       7
<PAGE>   8

respective obligations under this Agreement, and the parties shall execute such
other documents as may be reasonably necessary and desirable to the
implementation and consummation of the transactions contemplated hereby and to
fulfill their obligations hereunder.

         7.2. Fees and Expenses. Except as otherwise provided in this Agreement,
each party shall pay its own expenses incurred in connection with the
authorization, preparation, execution and performance of this Agreement,
including all fees and expenses of counsel, accountants, agents and other
representatives.

         7.3. Brokers. Each of the parties represents and warrants to the other
that neither it nor any person or entity acting on its behalf has incurred any
liability for any finders' or brokers' fees or commissions in connection with
the transactions contemplated by this Agreement.

         7.4. Bulk Sales Law. The parties hereto waive compliance with the
requirements, if any, of Article 6 of the Uniform Commercial Code of each state
where Contributed Assets are located.

         7.5. Employee Matters.

                  (a) Prior to Closing, the Company will offer employment to
each of the Trader employees listed on Schedule 7.5(a) (the "Transferred
Employees").

                  (b) Except to the extent mutually agreed to by the Members,
Trader shall retain full responsibility and liability for offering and providing
"continuation coverage" to any "qualified beneficiary" who is covered by a
"group health plan" sponsored, maintained or contributed to by Trader and who
has experienced a "qualifying event" or is receiving such "continuation
coverage" on or prior to the Closing Date. Continuation coverage, qualified
beneficiary, qualifying event and group health plan shall have the meanings
given such terms under Section 4980B of the Code and Section 601 et seq. of
ERISA.

                  (c) Notwithstanding the foregoing, nothing in this Agreement
shall, or shall be deemed to, create any rights in favor of any person not a
party hereto or to constitute an employment agreement or condition of employment
for any employee of Trader or the Company. No provisions of this Section 7.5
shall be construed to create any right with respect to any employee to continued
employment with the Company.

         7.6. Tax Matters. Trader agrees to pay and, notwithstanding any
disclosure of potential tax liabilities made by Trader, to indemnify, reimburse,
and hold harmless the Company, Manheim and ADP and their respective successors
from and against any and all Taxes of Trader payable with respect to, and any
and all claims, liabilities, losses, damages, costs and expenses (including
without limitation court costs and reasonable professional fees incurred in the
investigation, defense or settlement of any claims covered by this indemnity)
(herein referred to as "Indemnifiable Tax Damages"), arising out of or in any
manner incident, relating or attributable to Taxes of Trader payable with
respect to, or Tax Returns required to be filed by Trader and arising in any
taxable year (or other applicable reporting period) ("Reporting Period") of
Trader ending on or before the Closing Date. Trader shall be entitled to any
credits or refunds of Taxes arising

                                       8
<PAGE>   9

in any Reporting Period of Trader ending on or before the Closing Date. The
Company shall cause the amount of any credits or refunds of Taxes to which
Trader is entitled under this Section 7.6, but which are received by or credited
to the Company after the Closing Date, to be paid to Trader within ten business
days following such receipt or crediting, provided that Trader shall reimburse
the Company or its successors to the extent of any required subsequent repayment
of, or reduction in, the amount of such credits or refunds of Taxes so received
or credited.

         7.7. Notice of Assignment of Dealer Contracts. On or before such date
following the Closing as Trader and the Company shall agree, Trader shall send
notices of contract assignment to each of the other parties to the Dealer
Contracts identified on Schedule 3.4. Trader shall consult with the Company
regarding the form and content of such notices of assignment before sending any
such notices.

         7.8. Access to Financial Statements. In the event that the Company
determines that it is required to provide financial statements related to the
contribution of the Contributed Assets in order to comply with federal or state
securities law requirements, Trader shall furnish, or cause to be furnished, to
the Company such access to Trader personnel, accountants and information as the
Company may reasonably request in order to prepare audited financial statements
(including a balance sheet and statements of income and cash flows) related to
the business represented by the Contributed Assets for such fiscal year periods
and unaudited financial statements for all interim periods as may be specified
under applicable provisions of Rules 3-01 and 3-02 of Regulation S-X promulgated
by the Securities and Exchange Commission (the "SEC"). In connection with the
foregoing, Trader agrees to provide the Company and its representatives and
auditors with reasonable access during normal business hours to Trader's
financial and accounting records. In addition, Trader shall direct its
independent certified public accountants to cooperate with the Company for
purposes of compiling all available financial information that is requested by
the Company or the Company's accountants (and to assist the Company in its
efforts to develop such information) and that is required in order to comply
with federal or state securities law requirements. The Company shall pay or
absorb all fees, costs and expenses related to Trader's compliance with the
foregoing covenants including, without limitation, the fees, costs and expenses
of any accountants engaged by the Company to audit the financial statements and
the fees, costs and expenses of Trader's accountants. Notwithstanding anything
to the contrary set forth herein, the Company shall use its best efforts to
limit the necessity for such financial statements and scope thereof (e.g., the
Company shall solicit opinions concerning the applicability of the SEC S-X
rules, the time periods required to be covered, if any, and the propriety of
using limited special purpose reports in lieu of full financial statements) and
to limit the disruption caused to Trader's business by such audit. Trader shall
have no liability to the Company if the SEC declines to permit the Company to
include in its securities filings the statements/reports that are prepared.
Trader also hereby disclaims any liability to third parties arising out of the
Company's use of any such statements/reports in securities filings.

         7.9. Name Change. Immediately after Closing, the Company shall file an
amendment to its Certificate of Formation in order to effect the legal change in
its name to "AutoTrader.com, LLC."

                                       9
<PAGE>   10

         7.10. Excluded General Contracts; Termination. For each Excluded
General Contract where the Company has a pre-existing contractual relationship
with the third party to such contract, the Company and Trader shall jointly
notify such third party that the Excluded General Contract with it has been
excluded from the transaction contemplated hereunder and will be terminated,
replaced and superseded by such party's existing contract with (or a new
contract with) the Company. For each Excluded General Contract where the Company
does not have a pre-existing contractual relationship with the third party,
Trader will notify the third party of the termination of the of the contract;
Trader and the Company will work cooperatively to identify means by which the
liability arising out of such termination can be minimized.

8.       CONDITIONS TO CLOSING

         8.1. Conditions to Obligations of Manheim to Close. The obligation of
Manheim to consummate the Closing of the transactions contemplated by this
Agreement shall be subject to the satisfaction, on or before the Closing Date,
of each and every one of the following conditions, all or any of which may be
waived, in whole or in part, by Manheim; provided, however, that in the event
that any or all of such conditions are waived, such waiver shall be only for
purposes of closing the transactions contemplated hereby, and shall not serve to
waive any claims that the waiving party may have against the other hereunder.

                  (a) Representations and Warranties. All representations and
warranties of Trader, ADP and the Company contained in this Agreement shall be
true and complete in all material respects at and as of the Closing Date as
though such representations and warranties were made at and as of such time.

                  (b) Covenants and Conditions. Trader, ADP and the Company
shall have performed and complied in all material respects with all covenants,
agreements and conditions required by this Agreement to be performed or complied
with by them prior to or on the Closing Date.

                  (c) Consents. Each of the material Consents listed on Schedule
3.5, if any, shall have been duly obtained and delivered to the Company with no
material adverse conditions imposed by such Consent.

                  (d) Deliveries. Trader and ADP shall have made or stand
willing and able to make all the deliveries to the Company set forth in Sections
9.2 and 9.4.

                  (e) Licensed Rights. Trader shall be authorized to enter into
the License Agreement, and no proceeding shall be pending the effect of which
would be to revoke, cancel, fail to renew, suspend or modify adversely any of
the material Licensed Rights.

                  (f) No Action or Other Proceeding Pending. No action,
proceeding, investigation, regulation or legislation shall have been instituted,
threatened or proposed before any court, governmental agency or legislative body
to enjoin, restrain, prohibit or obtain substantial damages in respect of, or
which is related to, or arises out of, this Agreement or the consummation of the
transactions contemplated hereby, if such action, proceeding, investigation,

                                       10
<PAGE>   11

regulation or legislation, in the reasonable judgment of Manheim, would make it
inadvisable to consummate such transactions.

         8.2. Conditions to Obligation of ADP to Close. The obligation of ADP to
consummate the Closing of the transactions contemplated by this Agreement shall
be subject to the satisfaction, on or before the Closing Date, of each and every
one of the following conditions, all or any of which may be waived, in whole or
in part, by ADP; provided, however, that in the event that any or all of such
conditions are waived, such waiver shall be only for purposes of closing the
transactions contemplated hereby, and shall not serve to waive any claims that
the waiving party may have against the other hereunder.

                  (a) Representations and Warranties. All representations and
warranties of Manheim, Trader and the Company contained in this Agreement shall
be true and complete in all material respects at and as of the Closing Date as
though such representations and warranties were made at and as of such time.

                  (b) Covenants and Conditions. Manheim, Trader and the Company
shall have performed and complied in all material respects with all covenants,
agreements and conditions required by this Agreement to be performed or complied
with by them prior to or on the Closing Date.

                  (c) Consents. Each of the material Consents listed on Schedule
3.5, if any, shall have been duly obtained and delivered to the Company with no
material adverse conditions imposed by such Consent.

                  (d) Deliveries. Trader, Manheim and the Company shall have
then made or stand willing and able to make all of the deliveries to the Company
set forth in Sections 9.2, 9.3 and 9.5.

                  (e) Licensed Rights. Trader shall be authorized to enter into
the License Agreement, and no proceeding shall be pending the affect of which
would be to revoke, cancel, fail to renew, suspend, or modify adversely any of
the material Licensed Rights.

                  (f) No Action or Other Proceeding Pending. No action,
proceeding, investigation, regulation or legislation shall have been instituted,
threatened or proposed before any court, governmental agency or legislative body
to enjoin, restrain, prohibit or obtain substantial damages in respect of, or
which is related to, or arises out of, this Agreement or the consummation of the
transactions contemplated hereby, if such action, proceeding, investigation,
regulation or legislation, in the reasonable judgment of ADP, would make it
inadvisable to consummate such transactions.

         8.3. Conditions to Obligation of Trader to Close. The obligation of
Trader to consummate the Closing of the transactions contemplated by this
Agreement shall be subject to the satisfaction, on or before the Closing Date,
of each and every one of the following conditions, all or any of which may be
waived, in whole or in part, by Trader; provided, however, that in the event
that any or all of such conditions are waived, such waiver shall be only for
purposes of

                                       11
<PAGE>   12

closing the transactions contemplated hereby, and shall not serve to waive any
claims that the waiving party may have against the other hereunder.

                  (a) Representations and Warranties. All representations and
warranties of Manheim, ADP and the Company contained in this Agreement shall be
true and complete in all material respects at and as of the Closing Date as
though such representations and warranties were made at and as of such time.

                  (b) Covenants and Conditions. Manheim, ADP and the Company
shall have performed and complied in all material respects with all covenants,
agreements and conditions required by this Agreement to be performed or complied
with by them prior to or on the Closing Date.

                  (c) Deliveries. Manheim, ADP and the Company shall have made
or stand willing and able to make all the deliveries to Trader set forth in
Sections 9.3, 9.4 and 9.5.

                  (d) No Action or Other Proceeding Pending. No action,
proceeding, investigation, regulation or legislation shall have been instituted,
threatened or proposed before any court, governmental agency or legislative body
to enjoin, restrain, prohibit or obtain substantial damages in respect of, or
which is related to, or arises out of, this Agreement or the consummation of the
transactions contemplated hereby, if such action, proceeding, investigation,
regulation or legislation, in the reasonable judgment of Trader, would make it
inadvisable to consummate such transactions.

                  (e) Identification of Continuing Related-Party Agreements. The
Company shall have identified, in the Schedules to the representations and
warranties made under Article 6, all of its existing agreements (whether written
or oral) with Manheim, ADP or their affiliates that will continue after Closing
or with respect to which the Company will have continuing obligations or
liabilities after Closing.

                  (f) KPCB Closing. All conditions to the closing of the
transaction contemplated under that certain Unit Purchase Agreement attached
hereto as Exhibit D-1 among the Company, KPCB Holdings, Inc., as nominee
("KPCB"), and the other parties named therein shall have been satisfied and such
transaction, including the assignment to KPCB by Cox of 18,634 of the
Contribution Units acquired by Cox hereunder (the "Cox/KPCB Assignment"), shall
close contemporaneously with or immediately after the Closing.

         8.4. Conditions to Obligations of the Company to Close.

                  (a) Conditions to Obligations of the Company to Close. The
obligation of the Company to consummate the Closing of the transactions
contemplated by this Agreement shall be subject to the satisfaction, on or
before the Closing Date, of each and every one of the following conditions, all
or any of which may be waived, in whole or in part, by the Company; provided,
however, that in the event that any or all of such conditions are waived, such
waiver shall be only for purposes of closing the transactions contemplated
hereby, and shall not serve to waive any claims that the waiving party may have
against the other hereunder.

                                       12
<PAGE>   13

                  (b) Representations and Warranties. All representations and
warranties of Trader and ADP contained in this Agreement shall be true and
complete in all material respects at and as of the Closing Date as though such
representations and warranties were made at and as of such time.

                  (c) Covenants and Conditions. Trader and ADP shall have
performed and complied in all material respects with all covenants, agreements
and conditions required by this Agreement to be performed or complied with by
them prior to or on the Closing Date.

                  (d) Consents. Each of the material Consents listed on Schedule
3.5 shall have been duly obtained and delivered to the Company with no material
adverse conditions imposed by such Consent.

                  (e) Deliveries. Trader and ADP shall have made or stand
willing and able to make all the deliveries to the Company set forth in Sections
9.2 and 9.4.

                  (f) Licensed Rights. Trader shall be authorized to enter into
the License Agreement, and no proceeding shall be pending the effect of which
would be to revoke, cancel, fail to renew, suspend or modify adversely any of
the material Licensed Rights.

                  (g) No Action or Other Proceeding Pending. No action,
proceeding, investigation, regulation or legislation shall have been instituted,
threatened or proposed before any court, governmental agency or legislative body
to enjoin, restrain, prohibit or obtain substantial damages in respect of, or
which is related to, or arises out of, this Agreement or the consummation of the
transactions contemplated hereby, if such action, proceeding, investigation,
regulation or legislation, in the reasonable judgment of the Company, would make
it inadvisable to consummate such transactions.

9.       CLOSING AND CLOSING DELIVERIES

         9.1. Closing. The Closing shall occur on August __, 1999 or such other
date as the parties shall mutually agree (the "Closing Date"), but in no event
later than _______________, 1999 and shall be held at the offices of Dow, Lohnes
& Albertson, PLLC, 1200 New Hampshire Avenue, N.W., Suite 800, Washington, D.C.
20036, commencing at 9:00 a.m. local time, or at such other time and place as
the Members may mutually agree. Notwithstanding the actual time the following
deliveries are made on the Closing Date, the parties hereto agree that the
Closing shall be effective and deemed for all purposes to have occurred as of
11:59 p.m. local time on the Closing Date.

         9.2. Deliveries by Trader. Prior to or on the Closing Date, Trader
shall deliver to Manheim, ADP and the Company the following, in form and
substance reasonably satisfactory to Manheim, ADP and their counsel:

                  (a) Transfer Documents. Duly executed transfer documents which
shall be sufficient to deliver good title to, or the valid right to use, the
Contributed Assets in the name of the Company free and clear of any claims,
liabilities, mortgages, liens, pledges, charges or encumbrances of any nature
whatsoever.

                                       13
<PAGE>   14

                  (b) Officer's Certificate. A certificate dated as of the
Closing Date, executed by the President or Vice President of Trader, certifying
that: (i) the representations and warranties of Trader contained in this
Agreement are true and complete in all material respects (except for changes
contemplated by this Agreement); and (ii) Trader has performed all of its
obligations and complied with all of its covenants set forth in this Agreement
to be performed or complied with by it in all material respects on or prior to
the Closing Date.

                  (c) License Agreement. A duly executed License Agreement.

                  (d) Data Contribution Agreement. A duly executed Data
Contribution Agreement between Trader and the Company in the form attached as
Exhibit C.

                  (e) Restated LLC Agreement. A duly executed Restated LLC
Agreement with all exhibits thereto, including the Certificate of Incorporation,
Bylaws, Stockholders' Agreement and the Registration Rights Agreement (the "LLC
Agreement Exhibits").

         9.3. Deliveries by Manheim. Prior to or on the Closing Date, Manheim
shall deliver to Trader, ADP and the Company the following, in form and
substance reasonably satisfactory to Trader, ADP and their counsel:

                  (a) Officer's Certificate. A certificate dated as of the
Closing Date, executed by the President or Vice President of Manheim, certifying
that: (i) the representations and warranties of Manheim contained in this
Agreement are true and complete in all material respects (except for changes
contemplated by this Agreement); and (ii) Manheim has performed all of its
obligations and complied with all of its covenants set forth in this Agreement
to be performed or complied with by it in all material respects on or prior to
the Closing Date.

                  (b) Manheim Data Contribution Agreement. A duly executed
Manheim Data Contribution Agreement in the form attached as Exhibit E.

                  (c) Unit Purchase Agreement. A duly executed Unit Purchase
Agreement.

                  (d) Restated LLC Agreement. A duly executed Restated LLC
Agreement with the LLC Agreement Exhibits attached.

                  (e) Manheim/Trader Letter Agreements. A duly executed
Manheim/Trader letter agreement in the form attached as Exhibit F and a second
Manheim/Trader letter agreement in the form attached as Exhibit F-1.

         9.4. Deliveries by ADP. Prior to or on the Closing Date, ADP shall
deliver to Trader, Manheim and the Company the following, in the form and
substance reasonably satisfactory to Manheim, Trader and their counsel:

                  (a) Officer's Certificate. A certificate dated as of the
Closing Date, executed by the President or Vice President of ADP, certifying
that: (i) the representations and warranties of ADP contained in this Agreement
are true and complete in all material respects (except for changes contemplated
by this Agreement); and (ii) ADP has performed all of its obligations and

                                       14
<PAGE>   15

complied with all of its covenants set forth in this Agreement to be performed
or complied with by it in all material respects on or prior to the Closing Date.

                  (b) Service Agreement. A duly executed ADP Data Contribution
Agreement in the form attached as Exhibit G.

                  (c) Unit Purchase Agreement. A duly executed Unit Purchase
Agreement.

                  (d) Restated LLC Agreement. A duly executed Restated LLC
Agreement with the LLC Agreement Exhibits attached.

         9.5. Deliveries by the Company. Prior to or on the Closing Date, the
Company shall deliver to Trader the following, in the form and substance
reasonably satisfactory to Trader and its counsel:

                  (a) Officer's Certificate. A certificate dated as of the
Closing Date, executed by the President or Vice President of the Company,
certifying that: (i) the representations and warranties of the Company contained
in this Agreement are true and complete in all material respects (except for
changes contemplated by this Agreement); and (ii) the Company has performed all
of its obligations and complied with all of its covenants set forth in this
Agreement to be performed or complied with by it in all material respects on or
prior to the Closing Date.

                  (b) License Agreement. A duly executed License Agreement.

                  (c) Data Contribution Agreement. A duly executed ADP Data
Contribution Agreement, Trader Data Contribution Agreement, and Manheim Data
Contribution Agreement.

                  (d) Unit Purchase Agreement. A duly executed Unit Purchase
Agreement to ATCHI in the form attached as Exhibit D.

                  (e) Restated LLC Agreement. A duly executed Restated LLC
Agreement with the LLC Agreement Exhibits attached.

10.      TERMINATION

         10.1. Method of Termination. This Agreement constitutes the binding and
irrevocable agreement of the parties to consummate the transactions contemplated
hereby, subject to and in accordance with the terms hereof, the consideration
for which is (i) the covenants, representations and warranties set forth in this
Agreement; and (ii) expenditures and obligations incurred and to be incurred by
each of the parties hereto, in respect of this Agreement, and this Agreement may
be terminated or abandoned only as follows:

                  (a) By the mutual consent of each of the parties hereto; or

                  (b) By any party, if any of the conditions set forth in
Section 8 to which the obligations of such party are subject, have not been
fulfilled in all material respects or waived in

                                       15
<PAGE>   16

writing, unless such fulfillment has been frustrated or made impossible by any
act or failure to act of the party seeking to terminate this Agreement.

         10.2. Rights Upon Termination.

                  (a) In the event of a termination of this Agreement pursuant
to Section 10.1(a), each party shall pay the costs and expenses incurred by it
in connection with this Agreement, and no party (or any of its officers,
directors, employees, agents, representatives or stockholders) shall be liable
to any other party for any costs, expenses, damage or loss of anticipated
profits hereunder.

                  (b) In the event of a termination of this Agreement pursuant
to Section 10.1(b) and if a party shall be in breach of any material provision
of this Agreement, each other party not so in breach of this Agreement shall
have all rights and remedies available at law or in equity.

11.      SURVIVAL OF REPRESENTATIONS AND WARRANTIES AND
         INDEMNIFICATION

         11.1. Representations and Warranties. All representations, warranties
and covenants contained in this Agreement and the Related Agreements shall be
deemed continuing representations, warranties and covenants and shall survive
the Closing Date; provided that the representations and warranties shall survive
until the earlier of (a) the first anniversary of the Closing Date or (b) the
date upon which the Securities and Exchange Commission first declares effective
any registration statement with respect to any class of securities of the
Company (or its corporate successor). The indemnification described in Sections
11.2 through 11.5 shall be the exclusive remedy of the parties for the matters
addressed therein.

         11.2. Indemnification by Trader. Trader agrees to indemnify and hold
harmless the Company, Manheim and ADP against and with respect to:

                  (a) Any and all losses, liabilities or damages incurred or
suffered by the Company, Manheim or ADP or any of their affiliates,
shareholders, partners, members, directors, officers, employees or
representatives, arising out of, based on or resulting from any untrue
representation, breach of warranty or nonfulfillment of any covenant by Trader
contained herein or in any certificate, document or instrument delivered by
Trader to the Company, Manheim or ADP hereunder;

                  (b) Any and all obligations of Trader not assumed by the
Company pursuant to the terms hereof;

                  (c) Any and all losses, liabilities or damages incurred or
suffered by the Company, Manheim or ADP, or any of their affiliates,
shareholders, directors, officers, employees or representatives, arising out of,
based on or resulting from Trader's ownership of the Contributed Assets or
Licensed Rights prior to the Closing Date, and any and all liabilities arising
under the Dealer Contracts or the General Contracts which relate to events or
matters arising or occurring prior to the Closing Date, whether or not disclosed
in the Schedules hereto;

                                       16
<PAGE>   17

                  (d) Any and all actions, suits, proceedings, claims, demands,
assessments, judgments, costs and expenses, including reasonable legal fees and
expenses, incident to any of the foregoing or incurred in investigating or
attempting to avoid the same or to oppose the imposition thereof, or in
enforcing this indemnity.

         11.3. Indemnification by Manheim. Manheim agrees to indemnify and hold
harmless the Company, ADP and Trader against and with respect to:

                  (a) Any and all losses, liabilities or damages incurred or
suffered by the Company, ADP or Trader, or any of their affiliates,
shareholders, partners, members, directors, officers, employees or
representatives, arising out of, based on or resulting from any untrue
representation, breach of warranty or nonfulfillment of any covenant by Manheim
contained herein or in any certificate, document or instrument delivered by
Manheim to the Company, ADP or Trader hereunder;

                  (b) Any and all actions, suits, proceedings, claims, demands,
assessments, judgments, costs and expenses, including reasonable legal fees and
expenses, incident to any of the foregoing or incurred in investigating or
attempting to avoid the same or to oppose the imposition thereof, or in
enforcing this indemnity.

         11.4. Indemnification by ADP. ADP agrees to indemnify and hold harmless
the Company, Manheim and Trader against and with respect to:

                  (a) Any and all losses, liabilities or damages incurred or
suffered by the Company, Manheim or Trader, or any of their affiliates,
shareholders, partners, members, directors, officers, employees or
representatives, arising out of, based on or resulting from any untrue
representation, breach of warranty or nonfulfillment of any covenant by ADP
contained herein or in any certificate, document or instrument delivered by ADP
to the Company, Manheim or Trader hereunder;

                  (b) Any and all actions, suits, proceedings, claims, demands,
assessments, judgments, costs and expenses, including reasonable legal fees and
expenses, incident to any of the foregoing or incurred in investigating or
attempting to avoid the same or to oppose the imposition thereof, or in
enforcing this indemnity.

         11.5. Indemnification by the Company. The Company agrees to indemnify
and hold harmless Trader, Manheim and ADP against and with respect to:

                  (a) Any and all losses, liabilities or damages incurred or
suffered by Trader, Manheim or ADP, or any of their affiliates, shareholders,
partners, members, directors, officers, employees or representatives, arising
out of, based on or resulting from any untrue representation, breach of warranty
or nonfulfillment of any covenant by the Company contained herein or in any
certificate, document or instrument delivered by the Company to the Trader,
Manheim or ADP hereunder;

                  (b) Any and all actions, suits, proceedings, claims, demands,
assessments, judgments, costs and expenses, including reasonable legal fees and
expenses, incident to any of

                                       17
<PAGE>   18

the foregoing or incurred in investigating or attempting to avoid the same or to
oppose the imposition thereof, or in enforcing this indemnity;

                  (c) Any and all losses, liabilities or damages incurred or
suffered by Trader as a result of or related to (i) the termination of the
Excluded General Contracts, (ii) the breach of such Excluded General Contracts
(but only to the extent such breaches relate to Trader's inability to perform
its obligations from and after Closing), and (iii) the Company's inability or
failure to assume, pay, discharge and/or perform the obligations and liabilities
accruing (or the performance of which is due) under the Assigned General
Contracts after the Closing.

         11.6. Procedure for Indemnification. The procedure for indemnification
shall be as follows:

                  (a) The party claiming indemnification (the "Claimant") shall
give notice to the party from whom indemnification is claimed (the "Indemnifying
Party") of any claim, whether between the parties or brought by a third party,
specifying (i) the factual basis for such claim; and (ii) the amount of the
claim, if ascertainable. If the claim relates to an action, suit or proceeding
filed by a third party against Claimant, such notice shall be given promptly by
Claimant to the Indemnifying Party after written notice of such action, suit or
proceeding is received by Claimant. Nothing in this Agreement shall be construed
to limit the indemnities contained in this Section 11 to matters involving third
party claims or disputes.

                  (b) Following receipt of notice from the Claimant of a claim,
the Indemnifying Party shall have 30 days to make such investigation of the
claim as the Indemnifying Party deems necessary or desirable. For the purposes
of such investigation, the Claimant agrees to make available to the Indemnifying
Party and/or its authorized representative(s) the information relied upon by the
Claimant to substantiate the claim. If the Claimant and the Indemnifying Party
agree at or prior to the expiration of said 30-day period (or any mutually
agreed upon extension thereof) to the validity and amount of such claim, the
Indemnifying Party shall immediately pay to the Claimant the full amount of the
claim. If the Claimant and the Indemnifying Party do not agree within said
period (or any mutually agreed upon extension thereof), the Claimant may seek
appropriate legal remedy.

                  (c) With respect to any claim by a third party as to which the
Claimant is entitled to indemnification hereunder, the Indemnifying Party shall
have the right at its own expense, to participate in or assume control of the
defense of such claim, and the Claimant shall cooperate fully with the
Indemnifying Party, subject to reimbursement for actual out-of-pocket expenses
incurred by the Claimant as the result of a request by the Indemnifying Party.
If the Indemnifying Party elects to assume control of the defense of any
third-party claim, the Claimant shall have the right to participate in the
defense of such claim at its own expense. If the Indemnifying Party does not
elect to assume control or otherwise participate in the defense of any third
party claim, it shall be bound by the results obtained by the Claimant with
respect to such claim.

                                       18
<PAGE>   19

                  (d) If a claim, whether between the parties or by a third
party, requires immediate action, the parties will make every effort to reach a
decision with respect thereto as expeditiously as possible.

                  (e) The indemnification rights provided in Sections 11.2 and
11.3 shall extend to the affiliates, shareholders, partners, directors,
officers, employees and representatives of the Claimant, although, for the
purpose of the procedures set forth in this Section 11.6, any indemnification
claims by such parties shall be made by and through the Claimant.

         11.7. Investigation. Any investigation made at any time by or on behalf
of any party hereto shall not diminish in any respect whatsoever such party's
right to rely on the representations, warranties, covenants and agreements made
by or on behalf of any other party herein or pursuant to this Agreement.

12.      MISCELLANEOUS

         12.1. Further Assurances. Each party hereto shall execute and deliver
all such other documents and do all such other acts and things as may be
reasonably necessary to more fully effectuate this Agreement and the
transactions contemplated hereby.

         12.2. Notices. All notices and other communications hereunder shall be
(a) in writing; (b) delivered by telecopy, by commercial overnight or same-day
delivery service with all delivery costs paid by sender, or by registered or
certified mail with postage prepaid, return receipt requested; (c) deemed given
on the date and at the time shown on the telecopy confirmation of receipt (if
delivered by telecopy), on the date and at the time (if recorded) of delivery by
the commercial delivery service, as shown in the records thereof (if delivered
by commercial overnight or same-day delivery service), or on the date shown on
the return receipt (if delivered by registered or certified mail); and (d)
addressed to the parties at their addresses specified on the signature page to
this Agreement (or at such other address for a party as shall be specified by
like notice).

         12.3. Waiver. Any waiver of any terms or conditions of this Agreement
shall be in writing and shall not operate as a waiver of any other breach of
such terms or conditions or any other term or condition, nor shall any failure
to enforce any provision of this Agreement operate as a waiver of such provision
or of any other provision of this Agreement.

         12.4. Captions; Partial Invalidity. The captions, section numbers and
index appearing in this Agreement are inserted only as a matter of convenience
and in no way define, limit, construe or describe the scope or intent of such
sections or articles of this Agreement, nor in any way affect this Agreement.

         12.5. Counterparts. This Agreement may be executed in counterparts each
of which shall be deemed an original and all of which together shall constitute
one and the same instrument, and in pleading or proving any provision of this
Agreement, it shall not be necessary to produce more than one complete set of
such counterparts. Any counterpart of this Agreement which has

                                       19
<PAGE>   20

attached to it separate signature pages, which together contain the signatures
of all parties hereto, shall for all purposes be deemed a fully executed
original.

         12.6. Reproductions. This Agreement and all other documents,
instruments and agreements in the possession of the parties which relate hereto
or thereto may be reproduced by the parties, and any such reproduction shall be
admissible in evidence, with the same effect as the original itself, in any
judicial or other administrative proceeding, whether the original is in
existence. No party will object to the admission in evidence of any such
reproduction, unless the objecting party reasonably believes that the
reproduction does not accurately reflect the contents of the original and
objects on that basis.

         12.7. Variations of Pronouns; Number; Gender. All pronouns and all
variations thereof shall be deemed to refer to the masculine, feminine or
neuter, singular or plural, as the identity of the person or persons or entity
may require. Whenever used herein the singular number shall include the plural,
the plural shall include the singular, and the use of any gender shall include
all genders.

         12.8. Governing Law; Construction. This Agreement shall be governed by
and construed in accordance with the substantive laws of the State of Delaware
without regard to its conflict of laws provisions. The parties acknowledge and
agree that they have been represented by counsel and that each of the parties
has participated in the drafting of this Agreement. Accordingly, it is the
intention and agreement of the parties that the language, terms and conditions
of this Agreement are not to be construed in any way against or in favor of any
party hereto by reason of the responsibilities in connection with the
preparation of this Agreement.

         12.9. Third Parties. None of the provisions of this Agreement shall be
for the benefit of, or enforceable by, any employee or creditor of any party
hereto, nor any other person not a party hereto.

         12.10. Entire Agreement. This Agreement and all of the Related
Agreements and exhibits attached hereto shall constitute the entire agreement of
the parties hereto; all prior agreements between the parties, whether written or
oral, are merged herein and shall be of no force and effect; and there are no
restrictions, agreements, representations, warranties, arrangements, or
undertakings, oral or written, between or among the parties relating to the
transactions contemplated hereby which are not fully expressed or referred to
herein. This Agreement cannot be changed, modified or discharged orally, but
only by an agreement in writing, signed by the party against whom enforcement of
the change, modification or discharge is sought.

         12.11. Benefit and Binding Effect. None of the parties hereto may
assign the rights under or delegate any duties under this Agreement without the
prior written consent of the other parties hereto. This Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective
successors and permitted assigns.

         12.12. Time of the Essence. Time shall be of the essence in
interpreting the provisions of this Agreement.

                                       20
<PAGE>   21

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       21
<PAGE>   22

         IN WITNESS WHEREOF, this Agreement has been executed by the parties
hereto as of the date first above written.

                                    COMPANY:

                                    AUTOCONNECT, L.L.C.

                                    By: /s/ Dennis Berry
                                       ---------------------------------------
                                    Name: Dennis Berry
                                         -------------------------------------
                                    Title: Member of Management Committee
                                          ------------------------------------

                                    Address for Notices:

                                    1400 Lake Hearn Drive, N.E.
                                    Atlanta, Georgia  30319
                                    Attention: Victor A. Perry, III
                                              --------------------------------
                                    Facsimile: (404) 843-7412
                                             ---------------------------------

                                    MANHEIM:

                                    MANHEIM AUCTIONS, INC.

                                    By: /s/ Dennis Berry
                                       ---------------------------------------
                                    Name: Dennis Berry
                                         -------------------------------------
                                    Title: President
                                          ------------------------------------

                                    Address for Notices:

                                    1400 Lake Hearn Drive, N.E.
                                    Atlanta, Georgia  30319
                                    Attention: G. Dennis Berry
                                              --------------------------------
                                    Facsimile: (404) 843-5755
                                              --------------------------------

                                    ADP:

                                    ADP, INC.

                                    By: /s/ Allan Stejskal
                                       ---------------------------------------
                                    Name: Allan Stejskal
                                         -------------------------------------
                                    Title: Vice President Dealer Services
                                          ------------------------------------

                                       22
<PAGE>   23

                                    Address for Notices:

                                    1950 Hassell Road
                                    Hoffman Estates, Illinois  60195
                                    Attention: President
                                              --------------------------------
                                    Facsimile: (847) 781-9873
                                              --------------------------------

                                    TRADER:

                                    TRADER PUBLISHING COMPANY

                                    By: /s/ Conrad M. Hall
                                       ---------------------------------------
                                    Name: Conrad M. Hall
                                         -------------------------------------
                                    Title: President
                                          ------------------------------------

                                    Address for Notices:

                                    100 West Plume Street
                                    Norfolk, Virginia  23510
                                    Attention:  Conrad M. Hall
                                    Facsimile:  (757) 640-4001
                                                     -------------------------

                                    COX:

                                    TPI, INC.

                                    By: /s/ Jay Smith
                                       ---------------------------------------
                                    Name: Jay Smith
                                         -------------------------------------
                                    Title: President
                                          ------------------------------------

                                    Address for Notices:

                                    1400 Lake Hearn Drive, N.E.
                                    Atlanta, Georgia  30319
                                    Attention: Jay Smith
                                              --------------------------------
                                    Facsimile: (404) 843-7928
                                              --------------------------------

                                       23
<PAGE>   24

                                    LANDMARK:

                                    LTM COMPANY, L.P.
                                    By:  LTM Holdings, Inc., General Partner
                                       ---------------------------------------

                                    By:   /s/ Guy R. Fridell, III
                                       ---------------------------------------
                                    Name:  Guy R. Fridell, III
                                       ---------------------------------------
                                    Title:  Vice President
                                          ------------------------------------

                                    Address for Notices:

                                    150 W. Brambleton Avenue
                                    Norfolk, Virginia 23510
                                    Attention:  Guy R. Friddell, III
                                    Facsimile:  (757) 664-2164

                                       24
<PAGE>   25

                             EXHIBITS AND SCHEDULES

Exhibit A         Restated LLC Agreement
Exhibit B         Form of License Agreement
Exhibit C         Form of Trader Data Contribution Agreement
Exhibit D         Form of ATCHI Unit Purchase Agreement
Exhibit D-1       Form of KPCB Unit Purchase Agreement
Exhibit E         Form of Manheim Data Contribution Agreement
Exhibit F         Form of Manheim/Trader Letter Agreement
Exhibit F-1       Form of additional Manheim/Trader Letter Agreement
Exhibit G         Form of ADP Data Contribution Agreement

                                       25
<PAGE>   26

                                   SCHEDULE 1
                                  DEFINED TERMS

                  "ACCRUED PAYROLL LIABILITIES" means the accrued payroll
liabilities of Trader with respect to the Transferred Employees which are
described on Schedule 3.7.

                  "ADP" means ADP, Inc., a Delaware corporation.

                  "AGREEMENT" means this Contribution Agreement, as it may be
amended, modified, or supplemented from time to time in accordance with its
terms.

                  "AUTOMOBILES" has the meaning given such term under the Data
Contribution Agreement.

                  "AUTOMOTIVE DATA" has the meaning given such term under the
Data Contribution Agreement with respect to Trader's data (but shall exclude
data that is received from third parties and is subject to contractual
restrictions that prevent Trader from providing it to the Company).

                  "AUTOMOTIVE PAGES" means Trader's Web pages/sites which are
related predominantly to Automotive Data.

                  "CLAIMANT" has the meaning given in Section 11.4(a).

                  "CLOSING" means the consummation of the transactions
contemplated by this Agreement in accordance with the provisions of Article 9.

                  "CLOSING DATE" means the date of the Closing specified in
Section 9.1.

                  "CODE" means the Internal Revenue Code of 1986, as amended,
and the regulations thereunder, or any subsequent legislative enactment thereof,
as in effect from time to time.

                  "COMPANY" means AutoConnect, L.L.C., a Delaware limited
liability company.

                  "COMPENSATION ARRANGEMENT" means any plan or compensation
arrangement other than an Employee Plan, whether written or unwritten, which
provides to employees, former employees, officers, independent contractors,
directors and partners of Trader or any entity related to it (under the terms of
Sections 414(b), (c), (m) or (o) of the Code) any compensation or other
benefits, whether deferred or not, in excess of base salary or wages and
excluding overtime pay, including, but not limited to, any bonus or incentive
plan, stock rights plan, deferred compensation arrangement, life insurance,
stock purchase plan, severance pay plan and any other perquisites and employee
fringe benefit plan in connection with services rendered to or for the Business.

                                       26
<PAGE>   27

                  "CONSENTS" means the Consents required in connection with the
transfer and assignment of the Contributed Assets to the Company.

                  "CONTRIBUTED ASSETS" means all of the tangible and intangible
assets that are to be contributed to the Company pursuant to Section 2.1(a).

                  "CONTRIBUTION UNITS" has the meaning given in Section 2.4.

                  "COX" means TPI, Inc., a Delaware corporation.

                  "DATA CONTRIBUTION AGREEMENT" has the meaning given in Section
9.2.

                  "DEALER CONTRACTS" has the meaning given in Section 2.1(a).

                  "DEALER WEB SITE SERVICES" has the meaning given in Section
2.1(a).

                  "EMPLOYEE PLAN" means any pension, retirement, profit-sharing,
deferred compensation, vacation, severance, bonus, incentive, medical, vision,
dental, disability, life insurance or any other employee benefit plan as defined
in Section 3(3) of ERISA to which Trader or any entity related to any of Trader
(under the terms of Sections 414(b), (c), (m) or (o) of the Code) contributes or
to which any of such entities sponsors, maintains or otherwise is bound.

                  "ERISA" means the Employee Retirement Income Security Act of
1974, as amended, and the regulations thereunder, as in effect from time to
time.

                  "GENERAL CONTRACTS" has the meaning given in Section 2.1(a).

                  "INDEMNIFIABLE TAX DAMAGES" has the meaning given in Section
7.6.

                  "INDEMNIFYING PARTY" has the meaning given in Section 11.5(a).

                  "INITIAL OPERATING AGREEMENT" has the meaning given in the
Recitals.

                  "LANDMARK" means LTM Company, L.P., a Virginia limited
partnership.

                  "LICENSE AGREEMENT" has the meaning given in Section 2.1.

                  "LICENSE" has the meaning given in Section 2.1(b).

                  "LICENSED DOMAIN NAMES" has the meaning given in Section
2.1(b).

                  "LICENSED RIGHTS" has the meaning given in Section 2.1(b).

                  "MANHEIM" has the meaning given in the Restated LLC Agreement.

                                       27
<PAGE>   28

                  "MEMBERS" has the meaning given in the Restated LLC Agreement.

                  "MULTI-EMPLOYER PLAN" means a plan, as defined in ERISA
Section 3(37), to which Trader or any entity related to it (under the terms of
Sections 414(b), (c), (m) or (o) of the Code) contributes or is required to
contribute.

                  "NSI" means Network Solutions, Inc.

                  "ONLINE AUTOMOTIVE BUSINESS" has the meaning given in the
Recitals.

                  "RELATED AGREEMENTS" means this Agreement, the Operating
Agreement, the License Agreement, the ADP Data Contribution Agreement, Manheim
Data Contribution Agreement and the Trader Data Contribution Agreement, the Unit
Purchase Agreements, the Manheim/Trader Letter Agreements and all other
agreements, documents, instruments and certificates to be executed and delivered
pursuant hereto or in connection herewith.

                  "REPORTING PERIOD" has the meaning given in Section 7.6.

                  "RESTATED LLC AGREEMENT" means the Restated LLC Agreement of
the Company among the Members to be entered into at the Closing, as it may be
amended, modified, or supplemented from time to time in accordance with its
terms.

                  "TAX" (and, with correlative meaning, "TAXES") means all
federal, state, local or foreign income, gross receipts, windfall profits,
severance, property, production, sales, use, license, excise, franchise,
capital, transfer, employment, withholding and other taxes and assessments,
together with any interest, additions or penalties with respect thereto and any
interest in respect of such additions or penalties.

                  "TAX RETURNS" means all federal, state, local and foreign
income and franchise Tax returns and Tax reports (including any attached
schedules) and other Tax statements and other similar filings required to be
filed, including any information return, claim for refund, amended return, or
declaration of estimated Tax.

                  "TRADEMARK LICENSE" has the meaning given in Section 2.1(b).

                  "TRADER" means Trader Publishing Company, a Virginia general
partnership.

                  "TRANSFERRED EMPLOYEES" has the meaning given in Section
7.5(a).

                  "UNIT PURCHASE AGREEMENT" has the meaning given in Section
9.2.

                                       28

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