Document:

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                                                                 EXHIBIT 10.2.7

                                 [TOYOTA LOGO]

                               AUTOMOTIVE DEALER
                               SALES AND SERVICE
                                   AGREEMENT
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                             TOYOTA DEALER AGREEMENT

This is an Agreement between __________________________________________________

(DISTRIBUTOR), and ____________________________________________________________

(DEALER), a(n) [ ] individual, [ ] partnership, [ ] corporation. If a

corporation, DEALER is duly incorporated in the State of_______________________

and doing business as ________________________________________________________.

                    PURPOSES AND OBJECTIVES OF THIS AGREEMENT

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

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

Dealer Code________________

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   I. RIGHTS GRANTED TO THE DEALER

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

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

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

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

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

  II. RESPONSIBILITIES ACCEPTED BY THE DEALER

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

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

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

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

      D.  Make all payments to DISTRIBUTOR when due.

III.  TERM OF AGREEMENT

      This Agreement is effective this _____________ day of ______________,
      ______________, and shall continue for a period of ____________________,
      and shall expire on _______________, unless ended earlier by mutual
      agreement or terminated as provided herein. This Agreement may not be
      continued beyond its expiration date except by written consent of
      DISTRIBUTOR and IMPORTER.

                                       2

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IV. OWNERSHIP OF DEALERSHIP

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

            OWNERS'                                           PERCENT OF
             NAMES                   TITLE                    OWNERSHIP

    _______________________   _______________________   _______________________

    _______________________   _______________________   _______________________

    _______________________   _______________________   _______________________

    _______________________   _______________________   _______________________

    _______________________   _______________________   _______________________

    _______________________   _______________________   _______________________

  V. MANAGEMENT OF DEALERSHIP

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

VI.  CHANGE IN MANAGEMENT OR OWNERSHIP

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

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

VII.  APPROVED DEALER LOCATIONS

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

      New Vehicle Sales and Showroom             Used Vehicle Display and Sales

      Sales and General Office                   Body and Paint

      Parts                                      Service

      Other Facilities

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

VIII. PRIMARY MARKET AREA

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

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

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

IX.   STANDARD PROVISIONS

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

 X.   ADDITIONAL PROVISIONS

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

                                        5            Dealer Initials __________

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XI.   EXECUTION OF AGREEMENT

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

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

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

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

XII.  CERTIFICATION

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

      __________________________________________________________________ DEALER
                              (Dealer Entity Name)

      Date: ______________  By:______________________  _________________________
                                     Signature                  Title

      Date: ______________  By:______________________  _________________________
                                     Signature                  Title

      Date: ______________  By:______________________  _________________________
                                     Signature                  Title

      _____________________________________________________________ DISTRIBUTOR
                               (Distributor Name)

      Date: ______________  By:______________________  _________________________
                                     Signature                  Title

      Date: ______________  By:______________________  _________________________
                                     Signature                  Title

                                        6

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

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

Date: ______________  By:____________________________  _________________________
                                  Signature                     Title

                                       7

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                                 [TOYOTA LOGO]

                               DEALER AGREEMENT
                              STANDARD PROVISIONS

<PAGE>
                             TOYOTA DEALER AGREEMENT

                                TABLE OF CONTENTS

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

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

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

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

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

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

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

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

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

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

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

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

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

 XIII.   ACQUISITION, DELIVERY AND INVENTORY OF TOYOTA PRODUCTS

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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                             TOYOTA DEALER AGREEMENT
                               STANDARD PROVISIONS

     The following Standard Provisions are expressly incorporated in and made a
     part of the Toyota Dealer Agreement.

XIII.    ACQUISITION, DELIVERY AND INVENTORY OF TOYOTA PRODUCTS

         A. ACQUISITION OF TOYOTA PRODUCTS

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

         B. AVAILABILITY AND ALLOCATION OF PRODUCT

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

         C. PRICES AND TERMS OF SALE

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

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

         D. MODE, PLACE AND CHARGES FOR DELIVERY OF PRODUCTS

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

         E. INVENTORY DAMAGE CLAIMS AND LIABILITY

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

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

         F. DELAY OR FAILURE OF DELIVERY

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

         G. DIVERSION CHARGES

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

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

         H. CHANGES OF DESIGN, OPTIONS OR SPECIFICATIONS

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

         I. DISCONTINUANCE OF MANUFACTURE OR IMPORTATION

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

         J. MINIMUM VEHICLE INVENTORIES

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

         K. PRODUCT MODIFICATIONS

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

XIV.     DEALER MARKETING OF TOYOTA PRODUCTS

         A. DEALER'S SALES RESPONSIBILITIES

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

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

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

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

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

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

         B. EXPORT PROHIBITION

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

         C. USED VEHICLES

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

         D. ASSISTANCE PROVIDED BY DISTRIBUTOR

            1.  SALES TRAINING ASSISTANCE

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

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            2.  SALES PROMOTION ASSISTANCE

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

            3.  FIELD SALES PERSONNEL ASSISTANCE

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

XV.      DEALER SERVICE OBLIGATIONS

         A. CUSTOMER SERVICE STANDARDS

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

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

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

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

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

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         B. NEW MOTOR VEHICLE PRE-DELIVERY SERVICE

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

         C. WARRANTY AND POLICY SERVICE

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

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

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

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

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

                                       13
<PAGE>

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

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

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

         F. SERVICE CAMPAIGN INSPECTIONS AND CORRECTIONS

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

         G. COMPLIANCE WITH SAFETY AND EMISSION CONTROL REQUIREMENTS

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

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

                                       14
<PAGE>

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

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

         H. COMPLIANCE WITH CONSUMER PROTECTION STATUTES, RULES AND REGULATIONS

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

XVI.     SERVICE AND PARTS OPERATIONS

         A. ORGANIZATION AND STANDARDS

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

                                       15
<PAGE>

         B. SERVICE EQUIPMENT AND SPECIAL TOOLS

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

         C. PARTS INVENTORY

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

         D. ASSISTANCE PROVIDED BY DISTRIBUTOR

            1.  SERVICE TRAINING ASSISTANCE

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

            2.  MANUALS AND MATERIALS

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

            3.  FIELD PERSONNEL ASSISTANCE

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

                                       16
<PAGE>
            warranty administration, service and parts merchandising, and
            personnel/management training.

XVII.    CUSTOMER SATISFACTION RESPONSIBILITIES

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

         Whenever requested by DISTRIBUTOR, DEALER shall:

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

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

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

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

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

XVIII.   DEALERSHIP FACILITIES AND IDENTIFICATION

         A. FACILITIES

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

                                       17

<PAGE>

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

         B. DEALER'S OPERATING HOURS

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

         C. SIGNS

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

         D. USE OF TOYOTA MARKS

            1. USE BY DEALER

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

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

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<PAGE>

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

            2. DISCONTINUANCE OF USE

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

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

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

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

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

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

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

XIX.     EVALUATION OF DEALER'S PERFORMANCE

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

                                       19

<PAGE>

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

         A. SALES PERFORMANCE EVALUATION

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

         B. SERVICE PERFORMANCE EVALUATION

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

         C. PARTS PERFORMANCE EVALUATION

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

         D. CUSTOMER SATISFACTION PERFORMANCE EVALUATION

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

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<PAGE>

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

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

         E. DEALERSHIP FACILITIES EVALUATION

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

XX.      CAPITAL, CREDIT, RECORDS AND UNIFORM SYSTEMS

         A. NET WORKING CAPITAL

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

         B. FLOORING LINE

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

                                       21

<PAGE>

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

         C. PAYMENT TERMS AND SETTLEMENT OF ACCOUNTS

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

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

         D. UNIFORM ACCOUNTING SYSTEM

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

                                       22

<PAGE>

         E. RECORDS MAINTENANCE

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

         F. EXAMINATION OF DEALERSHIP ACCOUNTS AND RECORDS

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

         G. TAXES

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

         H. CONFIDENTIALITY

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

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

                                       23

<PAGE>

         I. INFORMATION COMMUNICATION SYSTEMS

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

         J. SALES REPORTING

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

XXI.    RIGHT OF FIRST REFUSAL OR OPTION TO PURCHASE

         A. RIGHTS GRANTED

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

         B. EXERCISE OF DISTRIBUTOR'S RIGHTS

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

                                       24

<PAGE>

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

         C. RIGHT OF FIRST REFUSAL

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

         D. OPTION TO PURCHASE

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

         E. DEALER'S OBLIGATIONS

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

                                       25

<PAGE>

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

         F. NO APPLICABILITY TO NOMINATED SUCCESSOR

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

XXII.    SUCCESSION RIGHTS UPON DEATH OR INCAPACITY

         A. SUCCESSION TO OWNERSHIP AFTER DEATH OF OWNER

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

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

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<PAGE>

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

         B. INCAPACITY OF OWNER

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

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

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

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

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

                                       27

<PAGE>

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

XXIII.   TERMINATION

         A. VOLUNTARY TERMINATION BY DEALER

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

         B. TERMINATION FOR CAUSE

            1. IMMEDIATE TERMINATION

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

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

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

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<PAGE>

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

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

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

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

            2. TERMINATION UPON SIXTY DAYS NOTICE

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

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

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

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

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

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

                                       29

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

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

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

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

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

            3. TERMINATION FOR FAILURE OF PERFORMANCE

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

            4. TERMINATION UPON DEATH OR INCAPACITY

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

                                       30

<PAGE>

         C. NOTICE OF TERMINATION

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

         D. CONTINUANCE OF BUSINESS RELATIONS

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

         E. REPURCHASE PROVISIONS

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

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

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

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

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<PAGE>

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

            2. RESPONSIBILITIES OF DEALER

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

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

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

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

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

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

            3. PAYMENT BY DISTRIBUTOR

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

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<PAGE>

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

XXIV.    MANAGEMENT OF DISPUTES

         A. ALTERNATIVE DISPUTE RESOLUTION PROGRAMS

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

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

         B. APPLICABLE LAW

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

         C. MUTUAL RELEASE

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

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<PAGE>

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

XXV.     DEFENSE AND INDEMNIFICATION

         A. DEFENSE AND INDEMNIFICATION BY DISTRIBUTOR

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

         B. DEFENSE AND INDEMNIFICATION BY DEALER

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

                                       34

<PAGE>

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

         C. CONDITIONAL DEFENSE AND/OR INDEMNIFICATION

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

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

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

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

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

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<PAGE>

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

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

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

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

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

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

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

XXVI.    GENERAL PROVISIONS

         A. NOTICES

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

                                       36

<PAGE>

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

         B. NO IMPLIED WAIVERS

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

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

         C. SOLE AGREEMENT OF THE PARTIES

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

         D. DEALER NOT AN AGENT OR REPRESENTATIVE

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

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<PAGE>

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

         E. ASSIGNMENT OF RIGHTS OR DELEGATION OF DUTIES

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

         F. NO FRANCHISE FEE

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

         G. SEVERABILITY

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

         H. NEW AND SUPERSEDING DEALER AGREEMENTS

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

         I. BENEFIT

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

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<PAGE>

         J. NO FIDUCIARY RELATIONSHIP

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

         K. NO JOINT EMPLOYMENT

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

         L. CONSENT OF DISTRIBUTOR

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

         M. DISTRIBUTOR'S POLICIES

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

                                       39

<PAGE>

XXVII.   DEFINITIONS

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

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

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

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

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

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

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

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

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

                                       40

<PAGE>

                           TOYOTA PRODUCT ADDENDUM TO
                             TOYOTA DEALER AGREEMENT

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

            Tercel                           Cressida
            Corolla                          Land Cruiser
            Paseo                            Previa
            MR2                              Truck (GVW 1 & 2)
            Camry                            Cab/Chassis (GVW 1 & 2)
            Celica                           4Runner
            Supra

and all parts, accessories and equipment for such vehicles.

This Toyota Product Addendum shall remain in effect unless and until superseded
by a new Toyota Product Addendum furnished DEALER by IMPORTER.

<PAGE>

                         PRIMARY MARKET AREA DEFINITION
                       ADDENDUM TO TOYOTA DEALER AGREEMENT

Pursuant to Section VIII of the Toyota Dealer Agreement, the following
documents provide a detailed definition of the Primary Market Area (PMA) that
is currently assigned to _____________________________________________________
____________ (DEALER).

If DEALER's PMA is modified by DISTRIBUTOR, DISTRIBUTOR will provide DEALER
with a revised Addendum which defines the structure of the modified PMA.<PAGE>
                                                                  EXHIBIT 10.2.8

                             [GENERAL MOTORS LOGO]

                               AUTOMOTIVE DEALER
                               SALES AND SERVICE
                                   AGREEMENT
<PAGE>
GMMS 1012
USA 11/2000
                           GENERAL MOTORS CORPORATION
                      DEALER SALES AND SERVICE AGREEMENT(S)

Effective NOVEMBER 01, 2000, General Motors Corporation, a Delaware Corporation,
          -----------------
separately on behalf of its Division(s) identified in the specific Motor Vehicle
Addendum(s) for [ ] Chevrolet Motor Division, [ ] Pontiac-GMC Division (Pontiac
vehicles), [ ] Pontiac-GMC Division (GMC vehicles), [ ] Oldsmobile Division,
[ ] Buick Motor Division, and [ ] Cadillac Motor Car Division ("General
Motors") and ((COMPANY NAME)), [ ] a proprietorship, [ ] a partnership, or
             ----------------
[ ] a ((STATEDLRINC)) corporation, [ ] a limited liability company, or [ ] other
      ---------------
business entity ______, doing business at ((PHYSICALADDRESS)), ((CITY)),
                                          ------------------------------
((ST)), ((ZIP)) ("Dealer"), hereby enter into separate Agreement(s) for each
---------------
Motor Vehicle Line-Make(s) included in the Motor Vehicle Addendum(s)
incorporated into this Agreement, and only for the Line-Make(s) included in the
Motor Vehicle Addendum(s). The Agreement for each Line-Make in independent and
separately enforceable by each party, and the use of this common form is
intended solely to simplify execution of the Agreement(s). The parties agree
as follows:

FIRST:  TERM OF AGREEMENT(S)

This Agreement(s) shall expire on ((EXPIRATIONDATE)) or ninety days after the
                                  ------------------
death or incapacity of a Dealer Operator, whichever occurs first, unless earlier
terminated. Dealer is assured of an opportunity to enter into a new Agreement(s)
at the expiration date if General Motors determines that Dealer has fulfilled
its obligations under this Agreement(s).

SECOND:  STANDARD PROVISIONS AND RELATED ADDENDA

The Standard Provisions and all of the related Addenda are hereby incorporated
as part of this Agreement. The Dealer acknowledges that these documents have
been brought to its attention, and Dealer accepts their form, content and
amendments thereto, in the prescribed manner, from time to time.

THIRD:  DEALER OPERATOR AND DEALER OWNER

Dealer agrees that the following Dealer Operator will provide personal services
in accordance with Article 2 of the Standard Provisions:
((DEALEROPERATOR))
--------------------------------------------------------------------------------

The following Dealer Owner(s) agree that they will comply in all respects with
Article 3 of the Standard Provisions:
N/A
--------------------------------------------------------------------------------

FOURTH:  EXECUTION OF AGREEMENT(S) AND RELATED DOCUMENT(S)

This Agreement(s) and related agreement(s) are valid only if signed:

        (a)   on behalf of Dealer by its duly authorized  representative,  and
              in the case of this Agreement(s),  by its Dealer Operator; and
        (b)   this Agreement(s) as set forth below on behalf of General Motors
              by the Regional General Manager and his authorized representative.
              All related agreements will be signed by the Regional General
              Manager or his authorized representative.

FIFTH:  ADDITIONAL AGREEMENTS AND UNDERSTANDINGS
The following agreement(s) are hereby incorporated by reference into this
Agreement(s):
N/A
---
------
------
------
                                              GENERAL MOTORS CORPORATION
((COMPANY NAME))
----------------
Dealer Firm Name

By:                                        By: /SIG/
    ------------------------------            ---------------------------------
    Dealer Operator and Date                  Regional General Manager

                                           By:
                                              ---------------------------------
                                              Authorized Representative and Date

<PAGE>
                                                                    FINAL 5-5-00

GMMS 1013
11-00 USA

                               STANDARD PROVISIONS

                                     DEALER
                                SALES AND SERVICE
                                    AGREEMENT

                           GENERAL MOTORS CORPORATION

<PAGE>
                                TABLE OF CONTENTS

PURPOSE OF AGREEMENT............................................1

ARTICLE 1.  APPOINTMENT AS AUTHORIZED
DEALER..........................................................1

ARTICLE 2.  DEALER OPERATOR.....................................2

ARTICLE 3.  DEALER OWNER........................................2

ARTICLE 4.  AUTHORIZED LOCATIONS................................2
4.1      Dealer Network Planning................................2
4.2      Area of Primary Responsibility.........................3
4.3      Establishment of Additional Dealers....................3
4.4      Facilities.............................................3
         4.4.1    Location......................................3
         4.4.2    Change in Location or Use of Premises.........4
         4.4.3    Size..........................................4
         4.4.4    Dealership Image and Design...................4
         4.4.5    Dealership Equipment..........................5

ARTICLE 5.  DEALER'S RESPONSIBILITY TO
PROMOTE, SELL, AND SERVICE PRODUCTS.............................5
5.1      Responsibility to Promote and Sell.....................5
         5.1.1    General Responsibilities......................5
         5.1.2    Export Policy - Dealers located in US.........5
         5.1.3    Export Policy - Dealers located in US Virgin
                  Islands and Puerto Rico.......................5
         5.1.4    Sale for Resale...............................6
         5.1.5    Advertising Programs and Promotional Material.6
         5.1.6    Dealer Advertising............................6
5.2      Responsibility to Service..............................6
         5.2.1    Dealer Responsibility for Customer Care.......6
         5.2.2    Dealer Service and Parts Organization.........6
         5.2.3    Dealer and General Motors Information Sharing
                  for Product-related Complaints................7
         5.2.4    Dealer Responsibility for Product-related
                  Complaints....................................7
         5.2.5    Service and Parts Manuals, Bulletins,
                  Technical Bulletins...........................7
5.3      Customer Satisfaction..................................7
5.4      Business Planning......................................7
5.5      Dealer Council.........................................7
5.6      Electronic, Communications, Data Interchange and
         Electronic Transactions................................8

ARTICLE 6.  SALE OF PRODUCTS TO DEALER..........................8
6.1      Sale of Motor Vehicles to Dealer.......................8
6.2      Sale of Parts and Accessories to Dealer................9
6.3      Prices and Other Terms of Sale.........................9
         6.3.1    Motor Vehicles................................9
         6.3.2    Parts and Accessories.........................9
6.4      Inventory..............................................9
         6.4.1    Motor Vehicle Inventory.......................9
         6.4.2    Parts and Accessories.........................9
6.5      Warranties on Products................................10

ARTICLE 7.  SERVICE OF PRODUCTS................................10
7.1      Service for Which General Motors Pays.................10
         7.1.1    New Motor Vehicle Pre-Delivery Inspections
                  and Adjustments..............................10
         7.1.2    Warranty and Special Policy Repairs..........10
         7.1.3    Campaign Inspections and Corrections.........10
         7.1.4    Payment for Pre-Delivery Adjustments, Warranty,
                  Campaign and Transportation Damage Work......11
7.2      Parts and Accessories, and Body Repairs...............11
         7.2.1    Warranty and Policy Repairs..................11
         7.2.2    Representations and Disclosures as to Parts
                  and Accessories..............................11
         7.2.3    Body Repairs.................................11
         7.2.4    Tools and Equipment..........................11

ARTICLE 8.  TRAINING...........................................12

ARTICLE 9.  REVIEW OF DEALER'S SALES PERFORMANCE...............12

ARTICLE 10.  CAPITALIZATION....................................13
10.1     Net Working Capital...................................13
10.2     Wholesale Floorplan...................................13

ARTICLE 11.  ACCOUNTS AND RECORDS..............................13
11.1     Uniform Accounting System.............................13
11.2     Application for Payment...............................13
11.3     Examination of Accounts and Records...................14
11.4     Confidentiality of Dealer Data........................14

ARTICLE 12.  CHANGES IN MANAGEMENT AND OWNERSHIP...............14
12.1     Succession Rights Upon Death or Incapacity............14
         12.1.1   Successor Addendum...........................14
         12.1.2   Absence of Successor Addendum................14
         12.1.3   Successor Dealer Requirements................15
         12.1.4   Term of New Dealer Agreement.................15
         12.1.5   Limitation on Offers.........................15
         12.1.6   Cancellation of Addendum.....................15
12.2     Other Changes in Ownership or Management..............15
         12.2.1   Prior Approval...............................15
         12.2.2   General Motors Review of Proposal............16
         12.2.3   General Motors Response......................16
         12.2.4   Dealer Change in Proposal....................16
         12.2.5   Transfer of Equity under 10 Percent..........16
         12.2.6   Satisfaction of Indebtedness to GM...........16
12.3     Right of First Refusal to Purchase....................16
         12.3.1   Creation and Coverage........................16
         12.3.2   Purchase Price and Other Terms of Sale.......17
         12.3.3   Consummation.................................17
         12.3.4   Assignment...................................17
         12.3.5   Transfer Involving Family Members and Dealer
                  Management...................................17
         12.3.6   Expenses.....................................18

<PAGE>
                                TABLE OF CONTENTS

ARTICLE 13.  BREACHES AND OPPORTUNITY TO REMEDY................18
13.1     Certain Acts or Events................................18
         13.1.1   Change in Dealer Operator without Approval...18
         13.1.2   Any Change in Ownership......................18
         13.1.3   Change in Record or Beneficial Ownership.....18
         13.1.4   Change in Location to Unapproved Location....18
         13.1.5   Unapproved Sale, Transfer or Use of Premises.18
         13.1.6   Dispute Among Owners.........................18
         13.1.7   Refusal to Timely Provide Information to GM..19
         13.1.8   Unfair or Deceptive Advertising Practices....19
         13.1.9   Willful Failure to Comply with Law...........19
         13.1.10  Submission of False Claims...................19
         13.1.11  Failure to Maintain Line of Credit...........19
         13.1.12  Failure to Timely Pay Obligations to GM......19
         13.1.13  Refusal to Permit Access to Records..........19
         13.1.14  Any Other Material Breach....................19
13.2     Failure of Performance by Dealer......................19

ARTICLE 14.  TERMINATION OF AGREEMENT..........................20
14.1     By Dealer.............................................20
14.2     By Agreement..........................................20
14.3     Failure to be Licensed................................20
14.4     Incapacity of Dealer Operator.........................20
14.5     Acts or Events........................................20
         14.5.1   Conviction...................................20
         14.5.2   Insolvency...................................20
         14.5.3   Failure to Conduct Business..................21
         14.5.4   Misrepresentation to GM by Dealer............21
         14.5.5   Submission of False Applications.............21
14.6     Reliance on Any Applicable Termination Provision......21
14.7     Transactions After Termination........................21
         14.7.1   Effect on Orders.............................21
         14.7.2   Termination Deliveries.......................21
         14.7.3   Effect of Transactions After Termination.....22

ARTICLE 15.  TERMINATION ASSISTANCE............................22
15.1     Deferral of Effective Date............................22
15.2     Purchase of Personal Property.........................22
         15.2.1   General Motors Obligations...................22
         15.2.2   Dealer's Responsibilities....................23
         15.2.3   Payment......................................23
         15.2.4   Replacement Dealer...........................23
15.3     Assistance on Premises................................24
         15.3.1   General Motors Obligation....................24
         15.3.2   Owned Premises...............................24
         15.3.3   Leased Premises..............................24
         15.3.4   Rent and Price...............................25
         15.3.5   Limitations on Obligation to Provide
                  Assistance...................................25

ARTICLE 16.  DISPUTE RESOLUTION PROCESS........................25

ARTICLE 17.  GENERAL PROVISIONS................................26
17.1     No Agent or Legal Representative Status...............26
17.2     Responsibility for Operations.........................26
17.3     Taxes.................................................26
17.4     Indemnification by General Motors.....................26
         17.4.1   Breach of GM Warranty........................26
         17.4.2   Failure of Product to Conform with Advertising
                  or Brochures Published by GM.................26
         17.4.3   Failure of Product Due to Plant Repair.......27
17.5     Trademarks and Service Marks..........................27
17.6     Notices...............................................28
17.7     No Implied Waivers....................................28
17.8     Assignment of Rights or Delegation of Duties..........28
17.9     No Third Party Benefit Intended.......................28
17.10    Accounts Payable......................................28
17.11    Sole Agreement of Parties.............................28
17.12    Applicable Law........................................29
17.13    Superseding Dealer Agreements.........................29

GLOSSARY.......................................................30

<PAGE>
                               STANDARD PROVISIONS

The following Standard Provisions are part of General Motors Dealer Sales and
Service Agreement(s) (Form GMMS 1012).

                              PURPOSE OF AGREEMENT

         The purpose of this Agreement is to promote a relationship between
General Motors and its Dealers which encourages and facilitates cooperation and
mutual effort to satisfy customers, and permits General Motors and its dealers
to fully realize their opportunities for business success. General Motors has
established a network of authorized dealers operating at approved locations to
effectively sell and service its Products and to build and maintain consumer
confidence and satisfaction in Dealer and General Motors. Consequently, General
Motors relies upon each Dealer to provide appropriate skill, capital, equipment,
staff and facilities to properly sell, service, protect the reputation, and
satisfy the customers of General Motors Products in a manner that demonstrates a
caring attitude toward those customers. At the same time, Dealer relies upon
General Motors to provide sales and service support and to continually strive to
enhance the quality and competitiveness of its Products. This mutual dependence
requires a spirit of cooperation, trust and confidence between General Motors
and its dealers. To facilitate attainment of cooperation, trust and confidence,
and to provide General Motors with the benefit of dealer advice regarding many
decisions which affect dealer business operations, General Motors has
established mechanisms to obtain dealer input in the decision making process.

         This Agreement (i) authorizes Dealer to sell and service General Motors
Products and represent itself as a General Motors Dealer; (ii) states the terms
under which Dealer and General Motors agree to do business together; (iii)
states the responsibilities of Dealer and General Motors to each other and to
customers; and (iv) reflects the mutual dependence of the parties in achieving
their business objectives.

                   ARTICLE 1. APPOINTMENT AS AUTHORIZED DEALER

         General Motors appoints Dealer as a non-exclusive dealer of General
Motors Products. Dealer has the right to buy Products and the obligation to
market and service those Products in accordance with this Agreement and related
documents.

                                       1

<PAGE>
                           ARTICLE 2. DEALER OPERATOR

         This is a Personal Services Agreement, entered into in reliance on the
qualifications, integrity and reputation of Dealer Operator identified in
Paragraph Third, and on Dealer's assurance that Dealer Operator will provide
personal services by exercising full managerial authority over Dealership
Operations. Dealer Operator will have an unencumbered ownership interest in
Dealer of at least 15 percent at all times. A Dealer Operator must be a
competent business person, an effective manager, must have demonstrated a caring
attitude toward customers, and should have a successful record as a merchandiser
of automotive products and services or otherwise have demonstrated the ability
to manage a dealership. The experience necessary may vary with the potential
represented by each dealer location. Although this Agreement is entered into in
reliance on the personal services of the Dealer Operator, the Dealer entity
specified in this Agreement is the only party to this Agreement with General
Motors.

                             ARTICLE 3. DEALER OWNER

         General Motors enters into this Agreement in reliance on the
qualifications, integrity and reputation of dealer owner(s) identified in the
Dealer Statement of Ownership. General Motors and Dealer agree each dealer owner
will continue to own, both of record and beneficially, the percentage stated in
the Dealer Statement of Ownership, unless a change is made in accordance with
Article 12.

                         ARTICLE 4. AUTHORIZED LOCATIONS

4.1 DEALER NETWORK PLANNING

         Because General Motors distributes its Products through a network of
authorized dealers operating from approved locations, those dealers must be
appropriate in number, located properly, and have proper facilities to represent
and service General Motors Products competitively and to permit each dealer the
opportunity to achieve a reasonable return on investment if it fulfills its
obligations under its Dealer Agreement. Through such a dealer network, General
Motors can maximize the convenience of customers in purchasing Products and
having them serviced. As a result, customers, dealers, and General Motors all
benefit.

         To maximize the effectiveness of its dealer network, General Motors
agrees to monitor marketing conditions and strive, to the extent practicable, to
have dealers appropriate in number, size and location to achieve the objectives
stated above. Such marketing conditions include General Motors sales and
registration performance, present and future demographic and economic
considerations, competitive dealer networks, the

                                       2

<PAGE>

ability of General Motors existing dealers to achieve the objectives stated
above, the opportunities available to existing dealers, the alignment of
Line-Makes, General Motors dealer network plan, and other appropriate
circumstances.

4.2 AREA OF PRIMARY RESPONSIBILITY

         Dealer is responsible for effectively selling, servicing and otherwise
representing General Motors Products in the Area designated in a Notice of Area
of Primary Responsibility. General Motors retains the right to revise Dealer's
Area of Primary Responsibility at General Motors sole discretion consistent with
dealer network planning objectives. If General Motors determines that marketing
conditions warrant a change in Dealer's Area of Primary Responsibility, it will
advise Dealer in writing of the proposed change, the reasons for it, and will
consider any information the Dealer submits. Dealer must submit such information
in writing within 30 days of receipt of notice of the proposed change. If
General Motors thereafter decides the change is warranted, it will issue a
revised Notice of Area of Primary Responsibility.

4.3 ESTABLISHMENT OF ADDITIONAL DEALERS

         General Motors reserves the right to appoint additional dealers but
General Motors will not exercise this right without first analyzing dealer
network planning considerations with respect to the Line-Make under
consideration. Prior to establishing an additional same Line-Make dealer within
Dealer's Area of Primary Responsibility, General Motors will advise Dealer in
writing and give Dealer thirty days to present relevant information before
General Motors makes a final decision. If requested by Dealer within the thirty
days, General Motors will extend the time for an additional thirty days if
reasonably necessary for Dealer to obtain and submit relevant information.
General Motors will advise Dealer of the final decision concerning the
establishment of an additional dealer, which will be made solely by General
Motors pursuant to its business judgment. Nothing in this Agreement is intended
to require Dealer's consent to the establishment of an additional dealer, nor is
this Agreement intended to give Dealer a right to object to the establishment of
a different Line-Make.

         Neither the appointment of a dealer at or within three miles of a
former dealership location as a replacement for the former dealer nor the
relocation of an existing dealer point will be considered the establishment of
an additional Dealer for purposes of this Article 4.3. Such events are within
the sole discretion of General Motors pursuant to its business judgment.

4.4 FACILITIES

                  4.4.1 LOCATION

         Dealer agrees to conduct Dealership Operations only from the approved
location(s) within its Area of Primary Responsibility. The Location and Premises
Addendum identifies Dealer's approved location(s) and facilities ("Premises").
If more than one location is approved, Dealer agrees to conduct from each
location only those Dealership Operations authorized in the Addendum for such
location.

                                       3

<PAGE>

                  4.4.2 CHANGE IN LOCATION OR USE OF PREMISES

         If Dealer wants to make any change in location(s) or Premises, or in
the uses previously approved for those Premises, Dealer will give General Motors
written notice of the proposed change, together with the reasons for the
proposal, for General Motors evaluation and final decision in light of dealer
network planning considerations. No change in location or in the use of
Premises, including addition of any other vehicle lines, will be made without
General Motors prior written authorization pursuant to its business judgment.

         Before General Motors requires any changes in Premises, it will consult
with Dealer, indicate the rationale for the change, and solicit Dealer's views
on the proposal. If, after such review with Dealer, General Motors determines a
change in Premises or location is appropriate, the Dealer will be allowed a
reasonable time to implement the change. Any such changes will be reflected in a
new Location and Premises Addendum or other written agreement executed by Dealer
and General Motors.

         Nothing herein is intended to require the consent or approval of any
dealer to a proposed relocation of any other dealer.

                  4.4.3 SIZE

         Dealer agrees to provide Premises at its approved location(s) that will
promote the effective performance and conduct of Dealership Operations, and
General Motors image and goodwill. Consistent with General Motors dealer network
planning objectives and General Motors interest in maintaining the stability and
viability of its dealers, Dealer agrees that its facilities will be sized in
accordance with General Motors requirements for that location.

         General Motors agrees to establish and maintain a clearly stated policy
for determining reasonable dealer facility space requirements and to
periodically re-evaluate those requirements to ensure that they continue to be
reasonable.

                  4.4.4 DEALERSHIP IMAGE AND DESIGN

         The appearance of Dealer's Premises is important to the image of Dealer
and General Motors, and can affect the way customers perceive General Motors
Products and its dealers generally. Dealer therefore agrees that its Premises
will be properly equipped and maintained, and that the interior and exterior
retail environment and signs will comply with any reasonable requirements
General Motors may establish to promote and preserve the image of General Motors
and its dealers.

         General Motors will monitor developments in automotive and other retail
industries to ensure that General Motors image and facility requirements are
responsive to changes in the marketing environment.

         General Motors will take into account existing economic and marketing
conditions and consult with the appropriate dealer council in establishing such
requirements.

                                       4

<PAGE>
                  4.4.5 DEALERSHIP EQUIPMENT

         Effective performance of Dealer's responsibilities under this Agreement
requires that the dealership be reasonably equipped to communicate with
customers and General Motors and to properly diagnose and service Products.
Accordingly, Dealer agrees to provide for use in the Dealership Operations any
equipment reasonably designated by General Motors as necessary for Dealer to
perform effectively under this Agreement. General Motors will make such
designations only after having consulted with the appropriate dealer council.

              ARTICLE 5. DEALER'S RESPONSIBILITY TO PROMOTE, SELL,
                              AND SERVICE PRODUCTS

5.1 RESPONSIBILITY TO PROMOTE AND SELL

                  5.1.1 Dealer agrees to effectively, ethically and lawfully
sell and promote the purchase, lease and use of Products by consumers located in
its Area of Primary Responsibility. To achieve this objective, Dealer agrees to:

         (a)      maintain an adequate staff of trained sales personnel;

         (b)      explain to Product purchasers the items which make up the
                  purchase price and provide purchasers with itemized invoices;

         (c)      not charge customers for services for which Dealer is
                  reimbursed by General Motors;

         (d)      include in customer orders only equipment or accessories
                  requested by customer or required by law; and

         (e)      ensure that the customer's purchase and delivery experience
                  are satisfactory.

         If Dealer modifies or sells a modified new Motor Vehicle, or installs
any equipment, accessory, recycled part or part not supplied by General Motors,
or sells any non-General Motors service contract for a Motor Vehicle, Dealer
will disclose this fact on the purchase order and bill of sale, indicating that
the modification, equipment, accessory or part is not warranted by General
Motors or, in the case of a service contract, the coverage is not provided by
General Motors or an affiliate.

                  5.1.2 Dealer located in the United States is authorized to
sell new Motor Vehicles only to customers located in the United States. Dealer
agrees that it will not sell new Motor Vehicles for resale or principal use
outside the United States. Dealer also agrees not to sell any new Motor Vehicles
which were not originally manufactured for sale and distribution in the United
States. For this section, United States includes the fifty states and the
District of Columbia.

                  5.1.3 Dealer located in Puerto Rico or the US Virgin Islands
is authorized to sell new Motor Vehicles only to customers located in Puerto
Rico or the US Virgin Islands respectively. Dealer in Puerto Rico or the US
Virgin Islands agrees that it will not sell new Motor Vehicles to customers
located outside Puerto Rico or the US Virgin Islands respectively, or

                                       5

<PAGE>

to customers for resale or principal use outside of Puerto Rico or the US Virgin
Islands. Dealer agrees not to sell any new Motor Vehicles which were not
originally manufactured for sale and distribution in Puerto Rico or the US
Virgin Islands respectively.

                  5.1.4 It is General Motors policy not to sell or allocate new
Motor Vehicles to dealers for resale to persons or parties (or their agents)
engaged in the business of reselling, brokering (including but not limited to
buying services) or wholesaling Motor Vehicles. The dealer distribution
organizations that General Motors has established in the United States, Puerto
Rico and US Virgin Islands are best suited for the distribution of Motor
Vehicles in the United States, Puerto Rico and the US Virgin Islands
respectively, and are in the best position to arrange for the proper performance
of Motor Vehicle warranty repairs, safety campaigns and inspections,
pre-delivery inspections, and ongoing maintenance and compliance with government
requirements. Therefore, unless otherwise authorized in writing by General
Motors, Dealer agrees that this Agreement authorizes Dealer to purchase Motor
Vehicles only for resale to customers for personal use or primary business use
other than resale. Dealer is not authorized by this Agreement to directly or
indirectly sell Motor Vehicles to persons or parties (or their agents) engaged
in the business of reselling, brokering (including but not limited to buying
services) or wholesaling of Motor Vehicles. Nothing in this Article 5.1.4 is
intended to restrict Dealer from selling Motor Vehicles to other General Motors
dealers of the same Line-Make in the same country or territory.

                  5.1.5 General Motors will conduct general advertising programs
to promote the sale of Products for the mutual benefit of General Motors and
Dealers. General Motors will make available to Dealer advertising and sales
promotion materials from time to time and advise Dealer of any requirements or
applicable charges.

                  5.1.6 Dealer agrees to advertise and conduct promotional
activities that are lawful and enhance the reputation of Dealer, General Motors
and its Products. Dealer will not advertise or conduct promotional activities in
a misleading or unethical manner, or that is harmful to the reputation of
Dealer, General Motors, or its Products.

5.2 RESPONSIBILITY TO SERVICE

                  5.2.1 Dealer agrees to maximize customer satisfaction by
providing courteous, convenient, prompt, efficient and quality service to owners
of Motor Vehicles, regardless of from whom the Vehicles were purchased. All
service will be performed and administered in a professional manner and in
accordance with all applicable laws and regulations, this Agreement, and the
Service Policies and Procedures Manual, as amended from time to time.

                  5.2.2 Dealer agrees to maintain an adequate service and parts
organization as recommended by General Motors, including a competent, trained
service and parts manager(s), trained service and parts personnel and, where
service volume or other conditions make it advisable, a consumer relations
manager.

                                       6

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                  5.2.3 Dealer and General Motors will each provide the other
with such information and assistance as may reasonably be requested by the other
to facilitate compliance with applicable laws, regulations, investigations and
orders relating to Products.

                  5.2.4 To build and maintain consumer confidence in, and
satisfaction with, Dealer and General Motors, Dealer will comply with General
Motors procedures for the investigation and resolution of Product-related
complaints.

                  5.2.5 General Motors will make available to Dealer current
service and parts manuals, bulletins, and technical data publications relating
to Motor Vehicles.

5.3 CUSTOMER SATISFACTION

         Dealer and General Motors recognize that appropriate care for the
customer will promote customer satisfaction with General Motors Products and its
dealers, which is critically important to our current and future business
success. Dealer therefore agrees to conduct its operations in a manner which
will promote customer satisfaction with the purchase and ownership experience.
General Motors agrees to provide Dealer with reasonable support to assist
Dealer's attainment of customer satisfaction.

         General Motors will provide Dealer with a written report at least
annually pursuant to the procedures then in effect evaluating Dealer's purchase
and delivery customer satisfaction and Dealer's service customer satisfaction.
The report will compare Dealer's performance to other same Line-Make dealers in
the Region. General Motors will provide a written explanation of the customer
satisfaction review process to Dealer.

         General Motors may revise the customer satisfaction evaluation process
from time to time. General Motors will consult with the appropriate dealer
council before making any changes.

5.4 BUSINESS PLANNING

         General Motors has established a business planning process to assist
dealers. Dealer agrees to prepare and implement a reasonable business plan if
requested by General Motors. General Motors agrees to provide Dealer with
information specific to its dealership, and if requested, to assist Dealer in
its business planning as agreed upon by Dealer and General Motors.

5.5 DEALER COUNCIL

         General Motors agrees to establish such dealer councils as appropriate
to foster and maintain a positive business relationship between General Motors
and its dealers, and to obtain dealer input in General Motors decision-making
process. These councils may be established on a national, regional or local
basis, and General Motors will consult with dealers in establishing or changing
such dealer councils. These councils are intended to provide General Motors with
the benefit of dealer advice regarding various decisions which affect dealership
operations.

5.6 ELECTRONIC COMMUNICATIONS, DATA INTERCHANGE, AND ELECTRONIC TRANSACTIONS

         To provide for effective and efficient communication, data interchange
and electronic

                                       7

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transactions between General Motors, its dealers, and its customers, General
Motors may establish reasonable requirements for Dealer's acquisition and use of
certain computer software, computer hardware, and systems in Dealership
Operations, including but not limited to use involving or relating to the
Internet. General Motors will take into consideration factors such as market
conditions, competitive circumstances, and costs in establishing such reasonable
requirements. Dealer agrees to comply with those requirements and all
restrictions and limitations applicable to such computer software, computer
hardware or systems. General Motors will consult with the appropriate dealer
council in establishing such requirements.

         General Motors may provide Dealer from time to time certain customer
information or other information or data. Dealer agrees to use such information
or data only as designated by General Motors, and not to otherwise disclose such
information or data without General Motors written permission, unless otherwise
required by law. This restriction only applies to information and data provided
by General Motors to its dealers, and does not apply to data or information
Dealer obtains from its customers or other sources.

                     ARTICLE 6. SALE OF PRODUCTS TO DEALERS

6.1 SALE OF MOTOR VEHICLES TO DEALER

         General Motors will periodically furnish Dealer one or more Motor
Vehicle Addenda specifying the current model types or series of new Motor
Vehicles which Dealer may purchase under this Agreement. General Motors may
change a Motor Vehicle Addendum by furnishing a superseding one, or may cancel
an Addendum at any time.

         General Motors will endeavor to distribute new Motor Vehicles among its
dealers in a fair and equitable manner. Many factors affect the availability and
distribution of Motor Vehicles to dealers, including component availability and
available production capacity, sales potential in Dealer's Area of Primary
Responsibility, varying consumer demand, weather and transportation conditions,
governmental regulations, and other conditions beyond the control of General
Motors. General Motors reserves to itself discretion in accepting orders and
distributing Motor Vehicles, and its judgments and decisions are final. Upon
written request, General Motors will advise Dealer of the total number of new
Motor Vehicles, by allocation group, sold to dealers in Dealer's Market Area or
Region during the preceding month.

                                       8

<PAGE>

6.2 SALE OF PARTS AND ACCESSORIES TO DEALER

         New, reconditioned or remanufactured automotive parts and accessories
marketed by General Motors and listed in current Dealer Parts and Accessories
Price Schedules or supplements furnished to Dealer are called Parts and
Accessories. Orders for Parts and Accessories will be submitted and processed
according to written or electronic procedures established by General Motors or
other designated suppliers.

6.3 PRICES AND OTHER TERMS OF SALE

                  6.3.1 MOTOR VEHICLES

         Prices, destination charges, and other terms of sale applicable to
purchases of new Motor Vehicles will be those established according to Vehicle
Terms of Sale Bulletins furnished periodically to Dealer.

         Prices, destination charges, and other terms of sale applicable to any
Motor Vehicle may be changed at any time. Except as otherwise provided in
writing or electronically, changes apply to Motor Vehicles not shipped to Dealer
at the time the changes are made effective. Dealer will receive written or
electronic notice of any price increase before any Motor Vehicle to which such
increase applies is shipped, except for initial prices for a new model year or
for any new model or body type. Dealer has the right to cancel or modify the
affected orders by delivering written or electronic notice to General Motors
within 10 days after its receipt of the price increase notice in accordance with
procedures established by General Motors.

         If General Motors offers any incentives to customers or dealers, and
payment is conditioned upon the purchase or lease of a new Motor Vehicle, Dealer
agrees to comply with the then current applicable policies and procedures in the
General Motors Incentive Manual, as amended from time to time.

                  6.3.2 PARTS AND ACCESSORIES

         Prices and other terms of sale applicable to Parts and Accessories are
established by General Motors according to the Parts and Accessories Terms of
Sale Bulletin furnished to Dealer. Prices and other terms of sale applicable to
Parts and Accessories may be changed by General Motors at any time. Such changes
apply to Parts and Accessories not shipped to Dealer at the time changes become
effective.

6.4 INVENTORY

                  6.4.1 MOTOR VEHICLE INVENTORY

         Dealer recognizes that customers expect Dealer to have a reasonable
quantity and variety of current model Motor Vehicles in inventory. Accordingly,
Dealer agrees to purchase and stock and General Motors agrees to make available,
subject to Article 6.1, a mix of models and series of Motor Vehicles identified
in the Motor Vehicle Addendum in quantities adequate to enable Dealer to fulfill
its obligations in its Area of Primary Responsibility.

                  6.4.2 PARTS AND ACCESSORIES

         Dealer agrees to stock sufficient Parts and Accessories made available
by General Motors to perform warranty repairs and policy adjustments and meet
customer demand.

                                       9

<PAGE>

6.5 WARRANTIES ON PRODUCTS

         General Motors warrants new Motor Vehicles and Parts and Accessories
(Products) as explained in documents provided with the Products or in the
Service Policies and Procedures Manual.

         EXCEPT AS OTHERWISE PROVIDED BY LAW, THE WRITTEN GENERAL MOTORS
WARRANTIES ARE THE ONLY WARRANTIES APPLICABLE TO PRODUCTS. WITH RESPECT TO
DEALERS, SUCH WARRANTIES ARE IN LIEU OF ALL OTHER WARRANTIES OR LIABILITIES,
EXPRESS OR IMPLIED, INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS
FOR A PARTICULAR PURPOSE OR ANY LIABILITY FOR COMMERCIAL LOSSES BASED UPON
NEGLIGENCE OR MANUFACTURER'S STRICT LIABILITY EXCEPT AS MAY BE PROVIDED UNDER AN
ESTABLISHED GENERAL MOTORS PROGRAM OR PROCEDURE, GENERAL MOTORS NEITHER ASSUMES
NOR AUTHORIZES ANYONE TO ASSUME FOR IT ANY OTHER OBLIGATION OR LIABILITY IN
CONNECTION WITH PRODUCTS, AND GENERAL MOTORS MAXIMUM LIABILITY IS TO REPAIR OR
REPLACE THE PRODUCT.

                         ARTICLE 7. SERVICE OF PRODUCTS

7.1 SERVICE FOR WHICH GENERAL MOTORS PAYS

                  7.1.1 NEW MOTOR VEHICLE PRE-DELIVERY INSPECTIONS AND
ADJUSTMENTS

         Because new vehicle delivery condition is critical to customer
satisfaction, Dealer agrees to perform specified pre-delivery inspections and
adjustments on each new Motor Vehicle and verify completion according to
procedures identified in the Service Policies and Procedures Manual.

                  7.1.2 WARRANTY AND SPECIAL POLICY REPAIRS

         Dealer agrees to perform (i) required warranty repairs on each
qualified Motor Vehicle at the time of pre-delivery service and when requested
by owner, and (ii) special policy repairs approved by General Motors. When the
vehicle is returned to the owner, Dealer will provide owner a copy and
explanation of the repair document reflecting all services performed.

                  7.1.3 CAMPAIGN INSPECTIONS AND CORRECTIONS

         General Motors will notify Dealer of suspected unsatisfactory
conditions on Products and issue campaign instructions. Dealer agrees to inspect
and correct suspected unsatisfactory conditions on Products in accordance with
the instructions. Dealer will also determine that campaign inspections and
corrections have been made on new and used Motor Vehicles in its inventory prior
to sale, and follow-up on Products on which campaigns are outstanding.

         General Motors may ship, and Dealer agrees to accept, unordered parts
and materials required for

                                       10

<PAGE>

campaigns. Upon campaign completion, Dealer will receive credit for excess parts
and materials so shipped if they are returned or disposed of according to
General Motors instructions.

                  7.1.4 PAYMENT FOR PRE-DELIVERY ADJUSTMENTS, WARRANTY, CAMPAIGN
AND TRANSPORTATION DAMAGE WORK

         For Dealer's performance of services, pre-delivery inspections and
adjustments, warranty repairs, special policy repairs, campaign inspections and
corrections, and transportation damage repairs, General Motors will provide or
pay Dealer for the Parts and other materials required and will pay Dealer a
reasonable amount for labor. Payment will be made according to policies in the
Service Policies and Procedures Manual. Dealer will not impose any charge for
such service on owners or users except where a deductible or pro-rata charge
applies.

7.2 PARTS, ACCESSORIES, AND BODY REPAIRS

                  7.2.1 WARRANTY AND POLICY REPAIRS

         Dealer agrees to use only genuine GM or General Motors approved Parts
and Accessories in performing warranty repairs, special policy repairs, and any
other repairs paid for by General Motors, in accordance with the applicable
provisions of the Service Policies and Procedures Manual.

                  7.2.2 REPRESENTATIONS AND DISCLOSURES AS TO PARTS AND
ACCESSORIES

         In servicing vehicles marketed by General Motors, Dealer agrees to
disclose the use of recycled and non-General Motors parts and accessories as set
forth in Article 5. 1. 1.

                  7.2.3 BODY REPAIRS

         Dealer agrees to provide quality body repair service for Motor
Vehicles. Dealer can provide this service through its own body shop, or by
arrangement with an alternate repair establishment approved by General Motors.

                  7.2.4 TOOLS AND EQUIPMENT

         Dealer agrees to provide and maintain on Dealership Premises essential
service tools as required by General Motors, and such other tools and equipment
as reasonably necessary to fulfill its responsibilities to properly diagnose and
service Products. Dealer also agrees to allow General Motors or its designated
representative to survey or inspect Dealer's tools and equipment to ensure that
they are in good repair and proper calibration to enable Dealer to meet its
service responsibilities. In the event a dispute arises from such a survey or
inspection, General Motors personnel agree to discuss the matter with the Dealer
in order to resolve the dispute.

                                       11
<PAGE>

                               ARTICLE 8. TRAINING

         Properly trained personnel are essential to the success of Dealer and
General Motors, and to providing customers with a satisfactory sales and service
experience. General Motors agrees to make available or recommend to Dealer
product, sales, service and parts, accounting, business management, finance and
insurance, and systems training courses for Dealer personnel. General Motors
will make such training available through training sites, interactive distance
learning, or other appropriate medium as determined by General Motors. General
Motors will assist Dealer in determining training requirements and periodically
will require that Dealer have personnel attend or participate in specific
courses held as conveniently as practicable. Dealer agrees to comply with any
such reasonable training requirements and pay any specified training charges.
General Motors will consult with the appropriate dealer council prior to
determining the training courses or programs from which an individual Dealer's
requirements under this Article may be established. Specific minimum service
training requirements will be described in General Motors Service Policies and
Procedures Manual.

         General Motors will make available personnel to advise and counsel
Dealer personnel on sales, service, parts and accessories, and related subjects.

                 ARTICLE 9. REVIEW OF DEALER'S SALES PERFORMANCE

         General Motors willingness to enter into this Agreement is based in
part on Dealer's commitment to effectively sell and promote the purchase, lease
and use of Products in Dealer's Area of Primary Responsibility. The success of
General Motors and Dealer depends to a substantial degree on Dealer taking
advantage of available sales opportunities.

         Given this Dealer commitment, General Motors will provide Dealer with a
written report at least annually pursuant to the procedures then in effect
evaluating Dealer's sales performance. The report will compare Dealer's retail
sales to retail sales opportunities by segment in Dealer's Area of Primary
Responsibility or Area of Geographical Sales and Service Advantage, whichever is
applicable. General Motors will provide a written explanation of the sales
review process to Dealer. Satisfactory performance of Dealer's sales obligations
under Article 5.1 requires Dealer to achieve a Retail Sales Index equal or
greater than 100. If Dealer's Retail Sales Index is less than 100, Dealer's
sales performance will be rated as provided in the General Motors Sales
Evaluation process. General Motors expects Dealer to pursue available sales
opportunities exceeding this standard. Additionally, General Motors expectations
of its sales and registration performance for a Line-Make in a particular area
may exceed this standard for individual dealer compliance.

                                       12
<PAGE>

         In addition to the Retail Sales Index, General Motors will consider any
other relevant factors in deciding whether to proceed under the provisions of
Article 13.2 to address any failure by Dealer to adequately perform its sales
responsibilities. General Motors will only pursue its rights under Article 13.2
to address any failure by Dealer to adequately perform its sales
responsibilities if General Motors determines that Dealer has materially
breached its sales performance obligations under this Dealer Agreement.

         General Motors may modify the sales evaluation process from time to
time and will consult with the appropriate dealer council before adopting such
modifications.

                           ARTICLE 10. CAPITALIZATION

10.1 NET WORKING CAPITAL

         The Capital Standard Addendum reflects the minimum net working capital
necessary for Dealer to conduct Dealership Operations. Dealer agrees to maintain
at least this level of net working capital. General Motors will issue a new
Addendum if changes in operating conditions or General Motors guidelines
indicate capital needs have changed materially.

10.2 WHOLESALE FLOORPLAN

         To avoid damage to goodwill which could result if Dealer is financially
unable to fulfill its commitments, Dealer agrees to have and maintain a separate
line of credit from a creditworthy financial institution reasonably acceptable
to General Motors and available to finance the Dealer's purchase of new vehicles
in conformance with the policies and procedures established by General Motors.
The amount of the line of credit will be sufficient for Dealer to meet its
obligations under Article 6.4.

                        ARTICLE 11. ACCOUNTS AND RECORDS

11.1 UNIFORM ACCOUNTING SYSTEM

         A uniform accounting system facilitates an evaluation of Dealer
business management practices and the impact of General Motors policies and
practices. General Motors therefore agrees to maintain, and Dealer agrees to use
and maintain records in accordance with a uniform accounting system set forth in
an accounting manual furnished to Dealer. Dealer further agrees to submit to
General Motors data in a manner specified by General Motors and on a timely
basis.

11.2 APPLICATION FOR PAYMENT

         Dealer also agrees to timely submit true and accurate applications or
claims for payments, discounts or allowances; true and correct orders for
Products and reports of sale and delivery; and any other reports or statements
required by General

                                       13
<PAGE>
Motors, in the manner specified by General Motors, and to retain such records
for at least two years.

11.3 EXAMINATION OF ACCOUNTS AND RECORDS

         Dealer agrees to permit any designated representative of General Motors
to access, examine, audit, and take copies of any of the accounts and records
Dealer is to maintain under the accounting manual and this Agreement. Dealer
agrees to make such accounts and records readily available at its facilities
during regular business hours. General Motors agrees to furnish Dealer with a
list of any reproduced records.

11.4 CONFIDENTIALITY OF DEALER DATA

         General Motors agrees not to furnish any personal or financial data
submitted to it by Dealer to any non-affiliated entity unless authorized by
Dealer, required by law, or in connection with judicial or administrative
proceedings, or to proceedings under the Dispute Resolution Process.

                 ARTICLE 12. CHANGES IN MANAGEMENT AND OWNERSHIP

         The parties recognize that customers and authorized dealers, as well as
shareholders and employees of General Motors, have a vital interest in the
continued success and efficient operation of General Motors dealer network.
Accordingly, General Motors has the responsibility of continuing to administer
the network to ensure that dealers are owned and operated by qualified persons
able to meet the requirements of this Agreement.

12.1 SUCCESSION RIGHTS UPON DEATH OR INCAPACITY

                  12.1.1 SUCCESSOR ADDENDUM

         Dealer can apply for a Successor Addendum designating a proposed dealer
operator and/or owners of a successor dealer to be established if this Agreement
expires or is terminated because of death or incapacity. General Motors will
execute the Addendum provided Dealer is meeting its obligations under this
Agreement and under any Dealer Agreement which Dealer may have with General
Motors for the conduct of Dealership Operations at the approved location; and
the proposed dealer operator is, and will continue to be, employed full-time by
Dealer or a comparable automotive dealership, and is already qualified or is
being trained to qualify as a dealer operator; and provided all other proposed
owners are acceptable.

         Upon expiration of this Agreement, General Motors will, upon Dealer's
request, execute a new successor addendum provided a new and superseding dealer
agreement is executed with Dealer, and Dealer, the proposed dealer operator and
dealer owners are then qualified as described above.

                  12.1.2 ABSENCE OF SUCCESSOR ADDENDUM

         If this Agreement expires or is terminated because of death or
incapacity and Dealer and General Motors have not executed a Successor Addendum,
the Dealer Operator or, if there is not a remaining

                                       14

<PAGE>

Dealer Operator, the remaining dealer owners may propose a successor dealer to
continue the operations identified in this Agreement. The proposal must be made
to General Motors in writing at least 30 days prior to the expiration or
termination of this Agreement, including any deferrals. If there are more than
one dealer owners remaining, these persons may only propose a successor dealer
if they can agree on such proposal.

                  12.1.3 SUCCESSOR DEALER REQUIREMENTS

         General Motors will accept a proposal to establish a successor dealer
submitted by a proposed dealer operator under this Article 12.1 provided:

         (a) the proposed successor dealer and the proposed dealer operator are
ready, willing and able to meet the requirements of a new dealer agreement at
the approved location(s).

         (b) General Motors approves the proposed dealer operator and all
proposed owners not previously approved for the existing Dealership Operations.

         (c) all outstanding monetary obligations of Dealer to General Motors
have been satisfied.

                  12.1.4 TERM OF NEW DEALER AGREEMENT

         The dealer agreement offered a successor dealer will be for a
three-year term. General Motors will notify the successor dealer in writing at
least 90 days prior to the expiration date whether the successor dealer has
performed satisfactorily and, if so, that General Motors will offer a new Dealer
Agreement.

                  12.1.5 LIMITATION ON OFFERS

         Dealer will be notified in writing of the decision on a proposal to
establish a successor dealer submitted under Article 12.1 within 60 days after
General Motors has received from Dealer all applications and information
reasonably requested by General Motors. General Motors may condition its offer
of a dealer agreement on the relocation of dealership operations to an approved
location by successor dealer within a reasonable time. General Motors offer of a
new dealer agreement under this Article 12.1 will automatically expire if not
accepted in writing by the proposed successor dealer within 60 days after it
receives the offer.

                  12.1.6 CANCELLATION OF ADDENDUM

         Dealer may cancel an executed Successor Addendum at any time prior to
the death of a Dealer Operator or the incapacity of Dealer Operator. General
Motors may cancel an executed Successor Addendum only if the proposed dealer
operator is no longer qualified under Article 12. 1. 1.

12.2 OTHER CHANGES IN OWNERSHIP OR MANAGEMENT

         If Dealer proposes a change in Dealer Operator, a change in ownership,
or a transfer of the dealership business or its principal assets to any person
conditioned upon General Motors entering into a Dealer Agreement with that
person, General Motors will consider Dealer's proposal and not arbitrarily
refuse to approve it, subject to the following:

         12.2.1 Dealer agrees to give General Motors prior written notice of any
proposed change or transfer described above. Dealer understands that if any such
change is made prior to General Motors approval of the proposal, termination of
this Agreement will be warranted and General Motors

                                       15

<PAGE>

will have no further obligation to consider Dealer's proposal.

         12.2.2 General Motors agrees to consider Dealer's proposal, taking into
account factors such as (a) the personal, business, and financial qualifications
of the proposed dealer operator and owners, and (b) whether the proposed change
is likely to result in a successful dealership operation with acceptable
management, capitalization, and ownership which will provide satisfactory sales,
service, and facilities at an approved location, while promoting and preserving
competition and customer satisfaction.

         12.2.3 General Motors will notify Dealer in writing of General Motors
decision on Dealer's proposal within 60 days after General Motors has received
from Dealer all applications and information reasonably requested by General
Motors. If General Motors disagrees with the proposal, it will specify its
reasons. General Motors may request that Dealer submit such applications and
information in writing or electronically.

         12.2.4 Any material change in Dealer's proposal, including change in
price, facilities, capitalization, proposed owners, or dealer operator, will be
considered a new proposal, and the time period for General Motors to respond
shall recommence.

         12.2.5 General Motors prior written approval is not required where the
transfer of equity ownership or beneficial interest to an individual is (a) less
than ten percent in a calendar year, and (b) between existing dealer owners
previously approved by General Motors where there is no change in majority
ownership or voting control. Dealer agrees to notify General Motors within 30
days of the date of the change and to execute a new Dealer Statement of
Ownership.

         12.2.6 General Motors is not obligated to approve any proposed changes
in management or ownership under this Article unless Dealer makes arrangements
acceptable to General Motors to satisfy any indebtedness of Dealer to General
Motors and other commitments of Dealer to General Motors.

12.3 RIGHT OF FIRST REFUSAL TO PURCHASE

                  12.3.1 CREATION AND COVERAGE

         If Dealer submits a proposal for a change of ownership under Article
12.2, General Motors will have a right of first refusal to purchase the
dealership assets or stock and such other rights proposed to be transferred
regardless of whether the proposed buyer is qualified to be a dealer. If General
Motors chooses to exercise this right, it will do so in its written response to
Dealer's proposal. General Motors will have a reasonable opportunity to inspect
the assets, including real estate, and corporate records before making its
decision.

                                       16
<PAGE>

                  12.3.2 PURCHASE PRICE AND OTHER TERMS OF SALE

                           (a) BONA FIDE AGREEMENT

         If Dealer has entered into a bona fide written buy/sell agreement, the
purchase price and other terms of sale will be those set forth in such agreement
and any related documents, unless Dealer and General Motors agree to other
terms.

         Upon General Motors request, Dealer agrees to provide all documents
relating to the proposed transfer. If Dealer refuses to provide such
documentation or state in writing that such documents do not exist, it will be
presumed that the agreement is not bona fide.

                           (b) ABSENCE OF BONA FIDE AGREEMENT

         In the absence of a bona fide written buy/sell agreement, the purchase
price of the dealership assets or stock and such other rights as proposed to be
transferred will be determined by good faith negotiations by Dealer and General
Motors. If agreement cannot be reached within a reasonable time, the price and
other terms of sale will be established by arbitration according to the rules of
the American Arbitration Association.

                  12.3.3 CONSUMMATION

         Dealer agrees to transfer the property by Warranty Deed, where
possible, conveying marketable title free and clear of liens and encumbrances.
The Warranty Deed will be in proper form for recording and Dealer will deliver
complete possession of the property when the Deed is delivered. Dealer will also
furnish copies of any easements, licenses or other documents affecting the
property and assign any permits or licenses necessary for the conduct of
Dealership Operations.

                  12.3.4 ASSIGNMENT

         General Motors rights under this section may be assigned to any third
party ("Assignee"). If there is an assignment, General Motors will guarantee
full payment of the purchase price by the Assignee. General Motors shall have
the opportunity to discuss the terms of the buy/sell agreement with the
potential Assignee(s).

         General Motors rights under this Article are binding on and enforceable
against any assignee or successor in interest of Dealer or purchaser of Dealer's
assets or stock and such other rights as proposed to be transferred.

                  12.3.5 TRANSFER INVOLVING FAMILY MEMBERS AND DEALER MANAGEMENT

         When the proposed change of ownership involves a transfer by a dealer
owner solely to a member or members of his or her immediate family, or to a
qualifying member of Dealer's Management, General Motors right of first refusal
will not apply. An "immediate family member" shall be the spouse, child,
grandchild, spouse of a child or grandchild, brother, sister or parent of the
dealer owner. A "qualifying member of Dealer's Management" shall be an
individual who has been employed by Dealer for at least two years and otherwise
qualifies as a dealer operator.

                                       17
<PAGE>
                  12.3.6 EXPENSES

         If General Motors exercises its right of first refusal, General Motors
agrees to pay the proposed owner the reasonable expenses, including reasonable
attorney fees, that do not exceed the usual, customary, and reasonable fees
charged for similar work done for other clients, and that are incurred by the
proposed owner in negotiating and implementing the contract for the proposed
change in Dealer ownership before General Motors gives notice of its exercise of
its right of first refusal. The proposed owner must provide a reasonable
accounting and documentation of such expenses to receive such reimbursement.

                 ARTICLE 13. BREACHES AND OPPORTUNITY TO REMEDY

 13.1    CERTAIN ACTS OR EVENTS

         The following acts or events, which are within the control of Dealer or
originate from action taken by Dealer or its management or owners, are material
breaches of this Agreement. If General Motors learns that any of the acts or
events has occurred, it may notify the Dealer in writing. If notified, Dealer
will be given the opportunity to respond in writing within 30 days of receipt of
the notice, explaining or correcting the situation to General Motors
satisfaction.

                  13.1.1 The removal, resignation, withdrawal, or elimination
from Dealer for any reason of any Dealer Operator or dealer owner without
General Motors prior written approval.

                  13.1.2 Any attempted or actual sale, transfer, or assignment
by Dealer of this Agreement or any of the rights granted Dealer hereunder, or
any attempted or actual transfer, assignment or delegation by Dealer of any of
the responsibilities assumed by it under this Agreement contrary to the terms of
this Agreement.

                  13.1.3 Any change, whether voluntary or involuntary, in the
record or beneficial ownership of Dealer as set forth in the Dealer Statement of
Ownership furnished by Dealer, unless permitted by Article 12.2.5 or pursuant to
General Motors written approval.

                  13.1.4 Any undertaking by Dealer or any of its owners to
conduct, either directly or indirectly, any of the Dealership Operations at any
un-approved location.

                  13.1.5 Any sale, transfer, relinquishment, discontinuance, or
change of use by Dealer of any of the Dealership Premises or other principal
assets required in the conduct of the Dealership Operations, without General
Motors prior written approval.

                  13.1.6 Any dispute among the owners or management personnel of
Dealer which, in General Motors opinion, may adversely affect the Dealership
Operations or the interests of Dealer or General Motors.

                  13.1.7 Refusal by Dealer to timely furnish sales, service or
financial information and related supporting data, or to permit General Motors

                                       18
<PAGE>

examination or audit of Dealer's accounts and records.

                  13.1.8 A finding by a government agency or court of original
jurisdiction or a settlement arising from charges that Dealer, or a predecessor
of Dealer owned or controlled by the same person, had committed a misdemeanor or
unfair or deceptive business practice which, in General Motors opinion, may
adversely affect the reputation or interests of Dealer or General Motors.

                  13.1.9 Willful failure of Dealer to comply with the provisions
of any laws or regulations relating to the sale or service of Products.

                  13.1.10 Submission by Dealer of false applications or reports,
including false orders for Products or reports of delivery or transfer of
Products.

                  13.1.11 Failure of Dealer to maintain the line of credit
required by Article 10.

                  13.1.12 Failure of Dealer to timely pay its obligations to
General Motors.

                  13.1.13 Refusal by Dealer to permit General Motors or any
designated representative of General Motors to access, examine, audit, or take
copies of any of the accounts or records Dealer is to maintain under the
accounting manual and this Agreement.

                  13.1.14 Any other material breach of Dealer's obligations
under this Agreement not otherwise identified in this Article 13 or in Article
14.

         If Dealer's response demonstrates that the breach has been corrected,
or otherwise explains the circumstances to General Motors satisfaction, then
General Motors shall confirm this fact in writing to Dealer. If, however,
Dealer's response does not demonstrate that the breach has been corrected, or
explain the circumstances to General Motors satisfaction, termination is
warranted and General Motors may terminate this Agreement upon written notice to
Dealer. Termination will be effective 60 days following Dealer's receipt of the
notice.

13.2 FAILURE OF PERFORMANCE BY DEALER

         If General Motors determines that Dealer's Premises are not acceptable,
or that Dealer has failed to adequately perform its sales or service
responsibilities, including those responsibilities relating to customer
satisfaction and training, General Motors will review such failure with Dealer.

         As soon as practical thereafter, General Motors will notify Dealer in
writing of the nature of Dealer's failure and of the period of time (which shall
not be less than six months) during which Dealer will have the opportunity to
correct the failure.

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<PAGE>

         If Dealer does correct the failure by the expiration of the period,
General Motors will so advise the Dealer in writing. If, however, Dealer remains
in material breach of its obligations at the expiration of the period, General
Motors may terminate this Agreement by giving Dealer 90 days advance written
notice.

                      ARTICLE 14. TERMINATION OF AGREEMENT

14.1 BY DEALER

         Dealer has the right to terminate this Agreement without cause at any
time upon written notice to General Motors. Termination will be effective 30
days after General Motors receipt of the notice, unless otherwise mutually
agreed in writing.

14.2 BY AGREEMENT

         This Agreement may be terminated at any time by written agreement
between General Motors and Dealer. Termination assistance will apply only as
specified in the written termination agreement.

14.3 FAILURE TO BE LICENSED

         If General Motors or Dealer fails to secure or maintain any license
required for the performance of obligations under this Agreement or such license
is suspended or revoked, either party may terminate this Agreement by giving the
other party fifteen days written notice. Dealer may only conduct Dealership
Operations if permitted by law.

14.4 INCAPACITY OF DEALER OPERATOR

         Because this is a Personal Services Agreement, General Motors may
terminate this Agreement by written notice to Dealer if Dealer Operator is so
physically or mentally incapacitated that the Dealer Operator is unable to
actively exercise full managerial authority. The effective date of termination
will be stated in such written notice and will be not less than three months
after receipt of such notice.

14.5 ACTS OR EVENTS

         If General Motors learns that any of the following has occurred, it may
terminate this Agreement by giving Dealer written notice of termination.
Termination will be effective on the date specified in the notice.

                  14.5.1 Conviction in a court of original jurisdiction of
Dealer, or a predecessor of Dealer owned or controlled by the same person, or
any Dealer Operator or dealer owner of any felony.

                  14.5.2 Insolvency of Dealer; or filing by or against Dealer of
a petition in bankruptcy; or filing of a proceeding for the appointment of a
receiver or trustee for Dealer, provided such filing or appointment is not
dismissed or vacated within thirty days; or execution by Dealer of an assignment
for the benefit of creditors or any foreclosure or other due process of law
whereby a third party acquires rights to the operation, ownership or assets of
Dealer.

                  14.5.3 Failure of Dealer to conduct customary sales and
service operations during

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<PAGE>

customary business hours for seven consecutive business days.

                  14.5.4 Any misrepresentation to General Motors by Dealer or by
any Dealer Operator or owner in applying for this Agreement, or in identifying
the Dealer Operator, or record or beneficial ownership of Dealer.

                  14.5.5 Submission by Dealer of false applications or claims
for any payment, credit, discount, or allowance, including false applications in
connection with incentive activities, where the false information was submitted
to generate a payment to Dealer for a claim which would not otherwise have
qualified for payment.

         Termination for failure to correct other breaches will be according to
the procedures outlined in Article 13.

14.6 RELIANCE ON ANY APPLICABLE TERMINATION PROVISION

         The terminating party may select the provision under which it elects to
terminate without reference in its notice to any other provision that may also
be applicable. The terminating party subsequently also may assert other grounds
for termination.

14.7 TRANSACTIONS AFTER TERMINATION

                  14.7.1 EFFECT ON ORDERS

         If Dealer and General Motors do not enter into a new Dealer Agreement
when this Agreement expires or is terminated, all of Dealer's outstanding orders
for Products will be automatically canceled except as provided in this Article
14.7.

         Termination of this Agreement will not release Dealer or General Motors
from the obligation to pay any amounts owing the other, nor release Dealer from
the obligation to pay for Special Vehicles if General Motors has begun
processing such orders prior to the effective date of termination.

                  14.7.2 TERMINATION DELIVERIES

         If this Agreement is voluntarily terminated by Dealer or expires or is
terminated because of the death or incapacity of a Dealer Operator or death of a
Dealer Owner, without a termination or expiration deferral, General Motors will
use its best efforts consistent with its distribution procedures to furnish
Dealer with Motor Vehicles to fill Dealer's bona fide retail sold orders with
customers as of the effective date of termination or expiration, not to exceed,
however, the total number of Motor Vehicles invoiced to Dealer for retail sale
during the three months immediately preceding the effective date of termination.

                                       21
<PAGE>

                  14.7.3 EFFECT OF TRANSACTIONS AFTER TERMINATION

         Neither the sale of Products to Dealer nor any other act by General
Motors or Dealer after termination of this Agreement will be construed as a
waiver of the termination.

                       ARTICLE 15. TERMINATION ASSISTANCE

15.1 DEFERRAL OF EFFECTIVE DATE

         If this Agreement is scheduled to expire or terminate because of the
death or incapacity of a Dealer Operator or the death of a Dealer Owner and
Dealer requests an extension of the effective date of expiration or termination
thirty days prior to such date, General Motors will defer the effective date for
up to a total of eighteen months after such death or incapacity occurs to assist
Dealer in winding up its Dealership Operations.

15.2 PURCHASE OF PERSONAL PROPERTY

                  15.2.1 GENERAL MOTORS OBLIGATIONS

         If this Agreement: a) expires or is terminated by Dealer, and General
Motors does not offer Dealer or a replacement dealer a new dealer agreement, or
b) is terminated by General Motors for cause under the Dealer Agreement, General
Motors will offer to purchase the following items of personal property (herein
called Eligible Items) from Dealer at the prices indicated:

         (a) New and unused Motor Vehicles of the current model year purchased
by Dealer from General Motors at a price equal to the net prices and charges
that were paid to General Motors;

         (b) Any signs owned by Dealer of a type recommended in writing by
General Motors and bearing any Marks at a price agreed upon by General Motors
and Dealer. If General Motors and Dealer cannot agree on a price, they will
select a third party who will set the price;

         (c) Any essential tools recommended by General Motors and designed
specifically for service of Motor Vehicles that General Motors offered for sale
during the three years preceding termination at prices established in accordance
with the applicable pricing formula in the Service Policies and Procedures
Manual; and

         (d) Unused and undamaged Parts and Accessories that (i) are still in
the original, re-salable merchandising packages and in unbroken lots (in the
case of sheet metal, a comparable substitute for the original package may be
used); (ii) are listed for sale in the then current Dealer Parts and Accessories
Price Schedules (except those items marked NOT ELIGIBLE Parts and Accessories);
and (iii) were purchased by Dealer either directly from General Motors or from
an outgoing dealer as a part of Dealer's initial Parts and Accessories
inventory. Prices will be those dealer prices in effect at the time General
Motors receives the Parts and Accessories, less any applicable allowances
whether or not any such allowances were made to Dealer when Dealer purchased the
Parts and Accessories. In addition, an allowance of five percent of dealer price
for packing costs and reimbursement for transportation charges to the
destination specified by General Motors will be credited to Dealer's account.

                  15.2.2 DEALER'S RESPONSIBILITIES

                                       22
<PAGE>

         General Motors obligation to purchase Eligible Items is subject to
Dealer fulfilling its responsibility under this subsection.

         Within fifteen days following the effective date of termination or
expiration of this Agreement, Dealer will furnish General Motors with a list of
vehicle identification numbers and such other information as General Motors may
request pertaining to eligible Motor Vehicles. Dealer will deliver the eligible
Motor Vehicles to a destination determined by General Motors that will be in a
reasonable proximity to Dealer's Premises.

         Within two months following the effective date of termination or
expiration of this Agreement, Dealer will mail or deliver to General Motors a
complete and separate list of each of the Eligible Items other than Motor
Vehicles. Dealer will retain the Eligible Items until receipt of written
shipping instructions from General Motors. Within thirty days after receipt of
instructions, Dealer will ship the Eligible Items, transportation charges
prepaid, to the destinations specified in the instructions.

         Dealer will take action and execute and deliver such instruments as
necessary to (a) convey to General Motors good and marketable title to all
Eligible Items to be purchased, (b) comply with the requirements of any
applicable state law relating to bulk sales or transfer, and (c) satisfy and
discharge any liens or encumbrances on Eligible Items prior to their delivery to
General Motors.

                  15.2.3 PAYMENT

         Subject to Article 17.10, General Motors will pay for the Eligible
Items as soon as practicable following their delivery to the specified
destinations. Payment may be made directly to anyone having a security or
ownership interest in the Eligible Items.

         If General Motors has not paid Dealer for the Eligible Items within two
months after delivery, and if Dealer has fulfilled its termination obligations
under this Agreement, General Motors will, at Dealer's written request, estimate
the purchase price of the unpaid Eligible Items and all other amounts owed
Dealer by General Motors. After deducting the amounts estimated to be owing
General Motors and its subsidiaries by Dealer, General Motors will pay Dealer 75
percent of the net amount owed Dealer and will pay the balance, if any, as soon
as practicable thereafter.

                  15.2.4 REPLACEMENT DEALER

         If Dealer intends to terminate its Dealer Agreement and General Motors
has approved a replacement dealer, the Dealer or replacement dealer may submit
electronically to General Motors prior to the closing a listing of the Dealer's
parts inventory, and General Motors will advise the Dealer or replacement dealer
within thirty days what parts General Motors is willing to repurchase under
General Motors policies and procedures then in effect upon Dealer's termination
of its Dealer Agreement. General Motors will assist the replacement dealer in
establishing an appropriate Motor Vehicle inventory as provided in Article
6.4.1.

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<PAGE>

15.3 ASSISTANCE ON PREMISES

                  15.3.1 GENERAL MOTORS OBLIGATION

         Subject to Article 17.10, General Motors agrees to give Dealer
assistance in disposing of the Premises as provided below if (i) this Agreement
expires for any reason or is terminated by General Motors under Articles 13.2 or
14.4 and (ii) Dealer is not offered a new Dealer Agreement. Such assistance
shall be given only on Premises that are described in the Location and Premises
Addendum and only if:

         (a) they are used solely for Dealership Operations (or similar
dealership operations under other agreements with General Motors which will be
terminated simultaneously with this Agreement); and

         (b) they are not substantially in excess of space requirements at the
time of termination or, if they are substantially in excess, they became
excessive because of a reduction in the requirements applicable to Dealer's
facilities.

         Any Dealer request for such assistance must be in writing and received
by General Motors within thirty days of the expiration or termination of this
Agreement.

         Premises that consist of more than one parcel of property or more than
one building, each of which is separately usable, distinct and apart from the
whole or any other part with appropriate ingress or egress, shall be considered
separately under this Article 15.3.

                  15.3.2 OWNED PREMISES

         General Motors will provide assistance on owned Premises by either (a)
locating a purchaser who will offer to purchase the Premises at a reasonable
price, or (b) locating a lessee who will offer to lease the Premises. If General
Motors does not locate a purchaser or lessee within a reasonable time, General
Motors will itself either purchase or, at its option, lease the Premises for a
reasonable term at a reasonable rent. If the cause of termination or expiration
is a death or the incapacity of the Dealer Operator, General Motors may instead
pay Dealer a sum equal to a reasonable rent for a period of twelve months
immediately following the effective date of termination or expiration of this
Agreement.

                  15.3.3 LEASED PREMISES

   General Motors will provide assistance on leased Premises by either:

         (a) locating a tenant(s), satisfactory to lessor, who will sublet for
the balance of the lease or assume it; or

         (b) arranging with the lessor for the cancellation of the lease without
penalty to Dealer; or

         (c) reimbursing Dealer for the lesser of the rent specified in the
lease or settlement agreement or a reasonable rent for a period equal to the
lesser of twelve months from the effective date or termination or expiration of
the balance of the lease term.

         Upon request, Dealer will use its best efforts to effect a settlement
of the lease with the lessor subject to General Motors prior approval of the
terms. General Motors is not obligated to reimburse Dealer for rent for any
month during which the Premises are occupied by Dealer or anyone else, after the
first month following the effective date of termination or expiration.

                  15.3.4 RENT AND PRICE

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<PAGE>

         General Motors and Dealer will fix the amount of a reasonable rent and
a reasonable price for the Premises by agreement at the time Dealer requests
assistance. The factors to be considered in fixing those amounts are:

         (a) the adequacy and desirability of the Premises for a dealership
operation; and

         (b) the fair market value of the Premises. If General Motors and Dealer
cannot agree, the fair market value will be determined by the median appraisal
of three qualified real estate appraisers, of whom Dealer and General Motors
will each select one and the two selected will select the third. The cost of
appraisals will be shared equally by Dealer and General Motors.

                  15.3.5 LIMITATIONS ON OBLIGATION TO PROVIDE ASSISTANCE

         General Motors will not be obligated to provide assistance on Premises
if Dealer:

         (a) fails to accept a bona fide offer from a prospective purchaser,
sub-lessee or assignee;

         (b) refuses to execute a settlement agreement with the lessor if the
agreement would be without cost to Dealer;

         (c) refuses to use its best efforts to effect a settlement when
requested by General Motors; or

         (d) refuses to permit General Motors to examine Dealer's books and
records if necessary to verify claims of Dealer under this Article.

         Any amount payable by General Motors as rental reimbursement or
reasonable rent shall be proportionately reduced if the Premises are leased or
sold to another party during the period for which such amount is payable.
Payment of rental reimbursement or reasonable rent is waived by Dealer if it
does not file its claim therefor within two months after the expiration of the
period covered by the payment. Upon request, Dealer will support its claim with
satisfactory evidence of its accuracy and reasonableness.

                     ARTICLE 16. DISPUTE RESOLUTION PROCESS

         Dealer and General Motors recognize that it is desirable to resolve
disputes in a fair, prompt, and cost efficient manner. Therefore, except for the
matters specified below, and except as otherwise specifically agreed upon in
writing between Dealer and General Motors, Dealer and General Motors agree to
mediate any dispute arising under this Agreement or applicable law using the
General Motors Dispute Resolution Process then in effect, a copy of which has
been provided to Dealer, before using other remedies available under federal,
state or local law. The matters ineligible for mediation include: (i)
terminations due to insolvency, a dealer's failure to conduct customary sales
and service operations during customary business hours for at least seven
consecutive business days, license revocation, fraud or felony convictions, (ii)
disputes requiring participation by a third party who does not agree to
participate in the mediation, and (iii) disputes of General Motors Policies or
Procedures as applied to dealers generally. Dealer or General Motors may file
simultaneously with a court or administrative

                                       25
<PAGE>

agency if necessary to retain its rights under applicable law. Mediation under
the General Motors Dispute Resolution Process is mandatory, but mediation is not
binding on the parties unless the parties agree upon a solution. If a dispute is
not resolved through mediation, Dealer and General Motors may agree to resolve
this dispute through voluntary binding arbitration available under the General
Motors Dispute Resolution Process.

         The General Motors Dispute Resolution Process is set forth in a
separate booklet, and this Process will be administered by a Joint
Mediation/Arbitration Committee composed of dealers and General Motors
representatives. General Motors may amend the Process from time to time, but
will consult with the Joint Mediation/Arbitration Committee before making any
changes.

                         ARTICLE 17. GENERAL PROVISIONS

17.1 NO AGENT OR LEGAL REPRESENTATIVE STATUS

         This Agreement does not make either party the agent or legal
representative of the other for any purpose, nor does it grant either party
authority to assume or create any obligation on behalf of or in the name of the
others. No fiduciary obligations are created by this Agreement.

17.2 RESPONSIBILITY FOR OPERATIONS

         Except as provided in this Agreement, Dealer is solely responsible for
all expenditures, liabilities and obligations incurred or assumed by Dealer for
the establishment and conduct of its operations.

17.3 TAXES

         Dealer is responsible for all local, state, federal, or other
applicable taxes and tax returns related to its dealership business and will
hold General Motors harmless from any related claims or demands made by any
taxing authority.

17.4 INDEMNIFICATION BY GENERAL MOTORS

         General Motors will assume the defense of Dealer and indemnify Dealer
against any judgment for monetary damages or rescission of contract, less any
offset recovered by Dealer, in any lawsuit naming Dealer as a defendant relating
to any Product that has not been altered when the lawsuit concerns:

                  17.4.1 Breach of the General Motors warranty related to the
Product, bodily injury or property damage claimed to have been caused solely by
a defect in the design, manufacture, or assembly of a Product by General Motors
(other than a defect which should have been detected by Dealer in a reasonable
inspection of the Product);

                  17.4.2 Failure of the Product to conform to the description
set forth in advertisements or product brochures distributed by General Motors
because of changes in standard equipment or material component parts unless
Dealer received notice of the changes prior to retail delivery of the affected
Product by Dealer; or

                                       26
<PAGE>

                  17.4.3 Any substantial damage to a Product purchased by Dealer
from General Motors which has been repaired by General Motors unless Dealer has
been notified of the repair prior to retail delivery of the affected Product.

         If General Motors reasonably concludes that allegations other than
those set forth in 17.4.1, 17.4.2, or 17.4.3 above are being pursued in the
lawsuit, General Motors shall have the right to decline to accept the defense or
indemnify dealer or, after accepting the defense, to transfer the defense back
to Dealer and withdraw its agreement to indemnify Dealer.

         Procedures for requesting indemnification, administrative details, and
limitations are contained in the Service Policies and Procedures Manual under
"Indemnification." The obligations assumed by General Motors are limited to
those specifically described in this Article and in the Service Policies and
Procedures Manual and are conditioned upon compliance by Dealer with the
procedures described in the Manual. This Article shall not affect any right
either party may have to seek indemnification or contribution under any other
contract or by law and such rights are hereby expressly preserved.

17.5 TRADEMARKS AND SERVICE MARKS

         General Motors or affiliated companies are the exclusive owners or
licensees of the various trademarks, service marks, names and designs (Marks)
used in connection with Products and services.

         Dealer is granted the non-exclusive right to display Marks in the form
and manner approved by General Motors in the conduct of its dealership business.
Dealer agrees to permit any designated representative of General Motors upon the
Premises during regular business hours to inspect Products or services in
connection with Marks.

         Dealer will not apply to register any Marks either alone or as part of
another mark, and will not take any action which may adversely affect the
validity of the Marks or the goodwill associated with them. Dealer will not
apply to register any name which includes a Mark as an internet domain name
without General Motors prior written approval.

         Dealer agrees to purchase and sell goods bearing Marks only from
parties authorized or licensed by General Motors.

         Marks may be used as part of the Dealer's name with General Motors
written approval. Dealer agrees to change or discontinue the use of any Marks
upon General Motors request.

         Dealer agrees that no company owned by or affiliated with Dealer or any
of its owners may use any Mark to identify a business without General Motors
written permission.

         Upon termination of this Agreement, Dealer agrees to immediately
discontinue, at its expense, all use of Marks. Thereafter, Dealer will not use,
either directly or indirectly, any Marks or any other confusingly similar marks
in a manner that General Motors determines is likely to cause confusion or
mistake or deceive the public.

                                       27
<PAGE>

         Dealer will reimburse General Motors for all legal fees and other
expenses incurred in connection with action to require Dealer to comply with
this Article 17.5.

17.6 NOTICES

         Any notice required to be given by either party to the other in
connection with this Agreement will be in writing and delivered personally or by
first class or express mail or by facsimile, or electronically as provided in
this Agreement. Notices to Dealer will be directed to Dealer or its
representatives at Dealer's principal place of business and, except for
indemnification requests made pursuant to Article 17.4, notices by Dealer will
be directed to the appropriate Regional General Manager of General Motors.

17.7 NO IMPLIED WAIVERS

         The delay or failure of either party to require performance by the
other party or the waiver by either party of a breach of any provision of this
Agreement will not affect the right to subsequently require such performance.

17.8 ASSIGNMENT OF RIGHTS OR DELEGATION OF DUTIES

         Dealer has not paid any fee for this Agreement. Neither this Agreement
nor any right granted by this Agreement is a property right.

         Except as provided in Article 12, neither this Agreement nor the rights
or obligations of Dealer may be sold, assigned, delegated, encumbered or
otherwise transferred by Dealer.

         General Motors may assign this Agreement and any rights, or delegate
any obligations, under this Agreement to any affiliated or successor company,
and will provide Dealer written notice of such assignment or delegation. Such
assignment or delegation shall not relieve General Motors of liability for the
performance of its obligations under this Agreement.

17.9 NO THIRD PARTY BENEFIT INTENDED

         This Agreement is not enforceable by any third parties and is not
intended to convey any rights or benefits to anyone who is not a party to this
Agreement.

17.10 ACCOUNTS PAYABLE

         All monies or accounts due Dealer are net of Dealer's indebtedness to
General Motors and its subsidiaries. In addition, General Motors may deduct any
amounts due or to become due from Dealer to General Motors or its subsidiaries,
or any amounts held by General Motors, from any sums or accounts due or to
become due from General Motors, or its subsidiaries.

17.11 SOLE AGREEMENT OF PARTIES

         Except as provided in this Agreement or in any other unexpired written
agreements executed by both parties, General Motors has made no promises to
Dealer, Dealer Operator, or dealer owner and there are no other agreements or
understandings, either oral or written, between the parties affecting this
Agreement or relating to any of the subject matters covered by this Agreement.

                                       28
<PAGE>

         Except as otherwise provided herein, this Agreement cancels and
supersedes all previous agreements between the parties that relate to any
matters covered herein, except as to any monies which may be owing between the
parties and any other unexpired written agreements executed by both parties.

         No agreement between General Motors and Dealer which relates to matters
covered herein, and no change in, addition to (except the filling in of blank
lines) or erasure of any printed portion of this Agreement, will be binding
unless permitted under the terms of this Agreement or related documents, or
approved in a written agreement executed as provided in this Agreement.

17.12 APPLICABLE LAW

         This agreement is governed by the laws of the State of Michigan.
However, if performance under this Agreement is illegal under a valid law of any
jurisdiction where such performance is to take place, performance will be
modified to the minimum extent necessary to comply with such law if it was
effective as of the effective date of this Agreement.

17.13 SUPERSEDING DEALER AGREEMENTS

         If General Motors offers a superseding form of dealer agreement or an
amendment to the dealer agreement to General Motors dealers generally at any
time prior to expiration of this Agreement, General Motors may terminate this
Agreement by ninety days prior written notice to Dealer, provided General Motors
offers Dealer a dealer agreement in the superseding form for a term of not less
than the un-expired term of this Agreement.

         Unless otherwise agreed in writing, the rights and obligations of
Dealer that may otherwise become applicable upon termination or expiration of
the term of this Agreement shall not be applicable if General Motors and Dealer
execute a superseding dealer agreement, and the matured rights and obligations
of the parties hereunder shall continue under the new agreement.

         Dealer's performance under any prior agreement may be considered in an
evaluation of Dealer's performance under this or any succeeding agreement.

                                       29
<PAGE>

                                    GLOSSARY

AREA OF PRIMARY RESPONSIBILITY -- The geographic area designated by General
Motors from time to time in a Notice of Area of Primary Responsibility.

DEALER -- The corporation, partnership, proprietorship, limited liability
corporation, or limited liability partnership that signs the Dealer Agreement
with General Motors.

DEALER AGREEMENT -- The Dealer Sales and Service Agreement, including the
Agreement proper that is executed, the Standard Provisions, and all of the
related Addenda.

DEALERSHIP OPERATIONS -- All operations contemplated by the Dealer Agreement.
These operations include the sale and service of Products and any other
activities undertaken by Dealer related to Products, including rental and
leasing operations, used vehicle sales and body shop operations, finance and
insurance operations, any electronic commerce, and any service of other General
Motors motor vehicles authorized by General Motors, whether conducted directly
or indirectly by Dealer.

GENERAL MOTORS -- General Motors Corporation.

INCENTIVES MANUAL -- The Manual issued periodically which details certain
policies and procedures related to dealer or customer incentives or promotions.

LINE-MAKE -- A brand of General Motors Motor Vehicles, or a brand used to badge
motor vehicles for another manufacturer. For this Dealer Agreement, the General
Motors brands are Chevrolet Passenger Vehicles and Light Duty Trucks, Chevrolet
Medium Duty Trucks, Pontiac Motor Vehicles, Oldsmobile Motor Vehicles, Buick
Motor Vehicles, Cadillac Motor Vehicles, GMC Light Duty Trucks, and GMC Medium
Duty Trucks.

PRODUCTS -- Motor Vehicles, Parts and Accessories.

MOTOR VEHICLES -- All current model types or series of new motor vehicles
specified in any Motor Vehicle Addendum incorporated into this Agreement and all
past General Motors motor vehicles marketed through Motor Vehicle Dealers.

SERVICE POLICIES AND PROCEDURES MANUAL -- The Manual issued periodically which
details certain administrative and performance requirements for Dealer service
under the Dealer Agreement.

SPECIAL VEHICLES -- Motor Vehicles that have limited marketability because they
differ from standard specifications or incorporate special equipment.

                                       30

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