Document:

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                                                                  EXHIBIT 10.2.3

                                  [HONDA LOGO]

                                AUTOMOBILE DEALER
                                SALES AND SERVICE
                                    AGREEMENT

                         AMERICAN HONDA MOTOR CO., INC.
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                                       A

         This is an agreement between the Honda Automobile Division, American
Honda Motor Co., Inc. (American Honda) and ____________________________________
_____________________________ (Dealer), a(n) _______________ doing business as
________________________________________ ______________________________. By this
agreement, which is made and entered into at _____________________, California,
effective the _____ day of ______________________, 19____, American Honda gives
to Dealer the nonexclusive right to sell and service Honda Products at the
Dealership Location. It is the purpose of this Agreement, including the Honda
Automobile Dealer Sales and Service Agreement Standard Provisions (Standard
Provisions), which are incorporated herein by reference, to set forth the
rights and obligations which Dealer will have as a retail seller of Honda
Products. Achievement of the purposes of this Agreement is premised upon the
mutual understanding and cooperation between American Honda and Dealer.
American Honda and Dealer have each entered into this Agreement in reliance
on the integrity and ability and expressed intention of each to deal fairly
with the consuming public and with each other.

         For consistency and clarity, terms which are used frequently in this
Agreement have been defined in Article 12 of the Standard Provisions.

                                       B

         American Honda grants to Dealer the nonexclusive right to buy Honda
Products and to identify itself as a Honda dealer at the Dealership Location.
Dealer assumes the obligations specified in this Agreement and agrees to sell
and service effectively Honda Products within Dealer's Primary Market Area and
to maintain premises satisfactory to American Honda.

                                       C

         Dealer covenants and agrees that this Agreement is personal to Dealer,
to the Dealer Owner, and to the Dealer Manager, and American Honda has entered
into this Agreement based upon their particular qualifications and attributes
and their continued ownership or participation in Dealership Operations. The
parties therefore recognize that the ability of Dealer to perform this Agreement
satisfactorily and the Agreement itself are both conditioned upon the continued
active involvement in or ownership of Dealer by either:

         (1.) the following person(s) in the percentage(s) shown:
<TABLE>
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                                                                                                PERCENT OF
NAME                            ADDRESS                          TITLE                          OWNERSHIP
<S>                             <C>                              <C>                            <C>

</TABLE>

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         (2.) __________________________________________________________________
              an individual personally owning an interest in Dealer of at least
              25% and who has presented to American Honda a firm and binding
              contract giving to him the right and obligation of acquiring an
              ownership interest in Dealer in excess of 50% within five years of
              the commencement of Dealership Operations and being designated in
              that contract as Dealer operator.

                                        D

         Dealer represents, and American Honda enters into this Agreement in
reliance upon the representation, that _________________________________________
______________ exercises the functions of Dealer Manager and is in complete
charge of Dealership Operations with authority to make all decisions on behalf
of Dealer with respect to Dealership Operations. Dealer agrees that there will
be no change in Dealer Manager without the prior written approval of American
Honda.

                                        E

         American Honda has approved the following premise as the location(s)
for the display of Honda Trademarks and for Dealership Operations.

HONDA NEW VEHICLE
SALES SHOWROOM                                        PARTS AND SERVICE FACILITY

                                                            USED VEHICLE DISPLAY
SALES AND GENERAL OFFICES                                   AND SALES FACILITIES

                                       F

         There shall be no voluntary or involuntary change, direct or indirect,
in the legal or beneficial ownership or executive power or responsibility of
Dealer for the Dealership Operations, specified in Paragraphs C and D hereof,
without the prior written approval of American Honda.

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                                        G

         Dealer agrees to maintain, solely with respect to the Dealership
Operations, minimum net working capital of $               , minimum owner's
equity of  $    *                     , and flooring and a line or lines of
credit in the aggregate amount of $                with banks or financial
institutions approved by American Honda for use in connection with Dealer's
purchases of and carrying of inventory of Honda Products, all of which
American Honda and Dealer agree are required to enable Dealer to perform its
obligations pursuant to this Agreement. If Dealer also carries on another
business or sells other products, Dealer's total net working capital, owner's
equity and lines of credit shall be increased by an appropriate amount.
* Long Term Debt, less Real Estate Mortgages, shall not exceed a ratio of 1:1
when compared to Effective Net Worth which is defined as Total Net Worth less
Total Other Assets.

                                       H

         This Agreement is made for the period beginning
                               and ending                                   ,
unless sooner terminated. Continued dealings between American Honda and Dealer
after the expiration of this Agreement shall not constitute a renewal of this
Agreement for a term, but rather shall be on a day-to-day basis, unless a new
agreement or a renewal of this Agreement is fully executed by both parties.

                                      I

         This Agreement may not be varied, modified or amended except by an
instrument in writing, signed by duly authorized officers of the parties,
referring specifically to this Agreement and the provision being modified,
varied or amended.

                                       J

Neither this Agreement, nor any part thereof or interest therein, may be
transferred or assigned by Dealer, directly or indirectly, voluntarily or by
operation of law, without the prior written consent of American Honda.

<TABLE>
<S>                                                  <C>
__________________________________________________   By ________________________________________________
           (Corporate or Firm Name)                                         (Dealer)
</TABLE>

AMERICAN HONDA MOTOR CO., INC.
HONDA AUTOMOBILE DIVISION                                       (Corporate Seal)

By ________________________________

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                                  [HONDA LOGO]

                                AUTOMOBILE DEALER
                                SALES AND SERVICE
                                    AGREEMENT

                               STANDARD PROVISIONS

<PAGE>

               HONDA AUTOMOBILE DEALER SALES AND SERVICE AGREEMENT
                               STANDARD PROVISIONS

                                TABLE OF CONTENTS
<TABLE>
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                                                                                                                 PAGE
<S>                                                                                                              <C>
1.   THE OBLIGATIONS OF AMERICAN HONDA .........................................................................   1

2.   SALE OF HONDA PRODUCTS TO DEALER ..........................................................................   3

3.   THE OBLIGATIONS OF DEALER .................................................................................   4

4.   WARRANTY ..................................................................................................   6

5.   ADVERTISING AND PROMOTIONAL PROGRAMS ......................................................................   6

6.   TRADEMARKS AND SERVICE MARKS ..............................................................................   7

7.   GENERAL BUSINESS REQUIREMENTS .............................................................................   7

8.   APPOINTMENT OF SUCCESSOR AND REPLACEMENT DEALERS ..........................................................   8

9.   TERMINATION OF AGREEMENT ..................................................................................   9

10.  RIGHTS, OBLIGATIONS AND DEALINGS UPON TERMINATION .........................................................  12

11.  GENERAL PROVISIONS ........................................................................................  15

12.  DEFINITIONS ...............................................................................................  17
</TABLE>

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               HONDA AUTOMOBILE DEALER SALES AND SERVICE AGREEMENT
                               STANDARD PROVISIONS

The following Standard Provisions are, by reference, incorporated in and made a
part of the Honda Automobile Dealer's Sales and Service Agreement. These
Standard Provisions accompany the Honda Dealer's Sales and Service Agreement
which has been executed on behalf of both American Honda and Dealer.

1.       THE OBLIGATIONS OF AMERICAN HONDA

         1.1.     It is the obligation of American Honda to supply to Dealer,
                  and to all authorized dealers, Honda Products in a fair and
                  reasonable manner in order that Dealer may conduct Dealership
                  Operations in a businesslike manner. In fulfilling this
                  obligation, Honda Products may be supplied either on the basis
                  of dealer order or on the basis of allocation, depending on
                  market conditions and availability. There are numerous factors
                  which affect the availability of Honda Products. Among those
                  factors are component availability and production capacity,
                  consumer demand, strikes and other labor troubles, weather and
                  transportation conditions, and government regulations. Because
                  such factors affect individual dealer supply, Amercian Honda
                  necessarily reserves discretion in accepting orders and
                  allocating and distributing Honda Products, and its judgment
                  and decision in such matters will be final.

         1.2.     To assist Dealer in the fulfillment of its obligations under
                  the Agreement, which it has as a retail seller of Honda
                  Products, American Honda agrees to provide Dealer sales,
                  service and parts support.

                  1.2.A.   To assist Dealer in fulfilling its sales
                           responsibility, American Honda agrees to offer
                           general and specialized product information and to
                           provide field sales personnel to advise and counsel
                           Dealer's sales organization on sales-related subjects
                           such as merchandising, training and sales management.

                  1.2.B.   To assist Dealer in fulfilling its service and parts
                           responsibilities, American Honda agrees to offer, or
                           cause to be offered, general and specialized service
                           and parts training courses. Based on the service
                           training needs of Dealer's service personnel, to be
                           determined by American Honda with the assistance of
                           Dealer, Dealer agrees to have members of Dealer's
                           service organization attend such courses. Further,
                           American Honda agrees to make available to Dealer
                           field service personnel capable of advising and
                           counseling Dealer's service personnel on
                           service-related subjects, including product quality,
                           technical adjustments, repairs and replacement of
                           product components, recall, product improvement or
                           product update campaigns which American Honda may
                           conduct, owner complaints, warranty administration,
                           service and parts merchandising, and training and
                           service management.

         1.3.     To assist Dealer in planning, establishing and maintaining the
                  Dealership Premises, American Honda will, at its sole option,
                  make available to Dealer, upon request, sample copies of
                  building layout plans or facility planning recommendations,
                  including sales, service and parts space and the placement,
                  installation and maintenance of recommended signs. In
                  addition, representatives of American Honda will be available
                  to Dealer from time to time to counsel and advise Dealer and
                  its personnel in connection with Dealer's planning and
                  equipping the Dealership Premises.

                                       1
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         1.4.     American Honda agrees to make available to Dealer, at
                  reasonable cost, such sales, service and parts manuals,
                  brochures, special service tools and equipment and other data
                  for Honda Products as American Honda deems necessary for
                  Dealership Operations.

         1.5.     American Honda agrees to maintain a nationwide system of
                  authorized dealers of Honda Products. In order that those
                  authorized dealers may be assured of the benefits of
                  comprehensive advertising of Honda Products, American Honda
                  agrees to establish and maintain general advertising programs
                  in such manner and amount as it may deem appropriate and will
                  make sales promotion and campaign materials available to
                  Dealer.

         1.6.     American Honda agrees to compensate Dealer for the labor and
                  parts used by Dealer in performing its obligations under any
                  American Honda warranty and in connection with any recall,
                  product improvement or product update campaign which American
                  Honda may undertake and require Dealer to perform. Such
                  compensation will be in such reasonable amounts, and pursuant
                  to such requirements and instructions, as American Honda shall
                  establish from time to time, and such compensation shall
                  constitute full and complete payment by Amercian Honda to
                  Dealer for such work.

         1.7.     American Honda agrees to assume the defense of Dealer and to
                  indemnify Dealer against any money judgment, less any offset
                  recovered by Dealer, in any lawsuit naming Dealer as a
                  defendant, where such lawsuit relates to: (a) an alleged
                  breach of any Honda warranty relating to Honda Products; (b)
                  bodily injury or property damage claimed to have been caused
                  by a defect in the design, manufacture or assembly of a Honda
                  Product prior to delivery thereof to Dealer (other than a
                  defect which could have been detected by Dealer in a
                  reasonable inspection); or (c) a misrepresentation or
                  misleading statement of American Honda; provided, however,
                  that if any information discloses the possibility of Dealer
                  error or omission in servicing or otherwise (including but not
                  limited to Dealer not having performed all recalls of which
                  Dealer has notice on the Honda Product involved in the lawsuit
                  if the defect subject to the recall is alleged or contended to
                  be a contributing cause of the breach of warranty, injury or
                  damage which is the subject matter of the lawsuit), or should
                  it appear that the Honda Product involved in such lawsuit had
                  been altered by or for Dealer, or if Dealer has violated any
                  of the provisions of this Paragraph 1.7, then Dealer will
                  immediately obtain its own counsel and defend itself, and
                  American Honda will not be obligated to defend or indemnify
                  Dealer further. Dealer will promptly notify American Honda of
                  any claim which Dealer will assert American Honda might be
                  obligated to defend under this Paragraph 1.7. American Honda
                  will have not less than thirty (30) days to conduct a
                  reasonable investigation to initially determine whether or not
                  American Honda is obligated to defend under this Paragraph
                  1.7. Dealer will take the steps necessary to protect its own
                  interests involved in the lawsuit until American Honda assumes
                  the active defense of Dealer. American Honda will, upon
                  assuming the defense of Dealer, reimburse Dealer for all
                  attorneys' fees or court costs incurred by Dealer from the
                  date of the tender. American Honda, upon assuming Dealer's
                  defense, will have the right to retain and direct counsel of
                  its own choosing, and Dealer will cooperate in all matters
                  during the course of defending the lawsuit. If, upon final
                  judgment in a lawsuit, it is determined that American Honda
                  wrongfully failed or refused to defend Dealer, American Honda
                  will reimburse Dealer for all costs and attorneys' fees
                  incurred by Dealer from the date of the tender of defense.

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2.       SALE OF HONDA PRODUCTS TO DEALER.

         2.1.     To the extent that Honda Products are the subject of dealer
                  order, such orders will be submitted and processed in
                  accordance with procedures established by American Honda. No
                  order will be binding on American Honda, as evidenced by
                  either the issuance of an invoice or shipment of the ordered
                  Honda Products, and any such order may be accepted in whole or
                  in part. All orders by Dealer will be deemed firm orders and
                  binding upon the Dealer, except that at any time prior to
                  acceptance, an order may be canceled by Dealer by giving
                  actual notice to American Honda in writing of the desire by
                  Dealer to cancel such order.

         2.2.     While it is the intent of American Honda to provide Honda
                  Automobiles to Dealer in such quantities and types as are
                  ordered by Dealer, American Honda and Dealer recognize that
                  Honda Automobiles may not always be available in desired
                  quantities. It is therefore understood and agreed that
                  American Honda, at its sole election, will have the right to
                  allocate Honda Automobiles among authorized dealers of Honda
                  Products in a fair and reasonable manner. American Honda will
                  provide to Dealer an explanation, in writing, of any
                  allocation system it may adopt.

         2.3.     American Honda will have the right at any time and from time
                  to time to establish and revise prices and other terms,
                  including payment by Dealer, for its sales of Honda Products
                  to Dealer. Revised prices, terms or provisions will apply to
                  the sale of any Honda Products as of the effective date of the
                  revised prices, terms or provisions, even though a different
                  price or different terms may have been in effect at the time
                  such Honda Products were allocated to or ordered by Dealer.

         2.4.     American Honda will have the right to select the distribution
                  points and the mode of transportation and may pay carriers for
                  all charges in effecting delivery of Honda Products to Dealer.
                  Dealer agrees to pay to American Honda such charges for
                  delivery as American Honda may assess. Subject to the terms of
                  sale which may be established from time to time by American
                  Honda, risk of loss to Honda Products will pass to Dealer upon
                  tender of the Honda Products to Dealer or its authorized
                  agent, and title will pass to Dealer upon receipt by American
                  Honda of payment.

         2.5.     If Dealer should fail or refuse or for any reason be unable to
                  accept delivery of any Honda Products ordered by Dealer, or if
                  Dealer should request diversion of a shipment from American
                  Honda, Dealer will be responsible for and pay to American
                  Honda, promptly on demand, all costs and expenses incurred by
                  American Honda in filling and shipping Dealer's order and by
                  reason of such diversion, including costs of demurrage and
                  storage, plus restocking charges as determined by American
                  Honda. American Honda may direct that such returned Honda
                  Products be delivered to another destination, but the amount
                  charged Dealer for return to such other destination will not
                  be greater than the costs and expenses of returning such Honda
                  Products to their original place of shipment plus any
                  demurrage, storage and restocking charges.

         2.6.     As between American Honda and Dealer, American Honda assumes
                  responsibility for damage to Honda Products caused prior to
                  delivery to Dealer or its authorized agent.

         2.7.     American Honda will not be liable in any manner for delay or
                  failure in supplying any Honda Products where such delay or
                  failure is the result of any event beyond the control of
                  American Honda. Such event may include, but is not limited to,
                  any law or regulation or any acts of God, foreign or civil
                  wars, riots, interruptions of navigation, shipwrecks, fires,
                  strikes, lockouts, or other labor

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                  troubles, embargoes, blockades, demand for, or delay or
                  failure of any supplier to deliver or in making delivery, of
                  Honda Products.

         2.8.     American Honda reserves the right at any time to change or
                  modify, without notice, any specification, design or model of
                  Honda Products. In the event of any change or modification
                  with respect to any Honda Products, Dealer will not be
                  entitled to have such or similar change or modification made
                  with respect to any other Honda Products, except as may be
                  required by applicable law. American Honda may, however, in
                  its sole discretion, make such changes or modifications to all
                  Honda Products in its inventory or control, whether or not
                  invoiced to Dealer. No such change will be considered a model
                  year change unless specified by American Honda.

         2.9.     American Honda may at any time discontinue, without obligation
                  to Dealer or Dealer's customers, the sale of any Honda
                  Products, or models or lines thereof or any other items, goods
                  or services. Further, American Honda will have no obligation,
                  under any circumstances, to accept orders for any Honda
                  Products which are not in current inventory.

3.       THE OBLIGATIONS OF DEALER.

         3.1.     It is the obligation of Dealer to promote and sell, at retail,
                  Honda Products, and to promote and render service, whether or
                  not under warranty, for those products within the Dealer's
                  Primary Market Area.

         3.2.     Dealer's performance of its sales obligations for Honda
                  Products will be evaluated by American Honda on the basis of
                  such reasonable criteria as American Honda may develop from
                  time to time, including, but not limited to, such reasonable
                  sales objectives as American Honda may establish and a
                  comparison of Dealer's sales performance with other authorized
                  dealers of Honda Products.

         3.3.     To enable Dealer to fulfill its obligations satisfactorily,
                  Dealer agrees to establish and maintain an adequate and
                  trained sales and customer relations organization. Dealer
                  further agrees to establish and maintain a complete service
                  and parts organization, including a qualified service manager
                  and a qualified parts manager and a number of competent
                  service and parts personnel adequate to care for the service
                  obligations to be performed by Dealer under the Agreement.

         3.4.     Dealer agrees to acknowledge, investigate and resolve
                  satisfactorily all complaints received from owners of Honda
                  Products in a businesslike manner in order to secure and
                  maintain the goodwill of the public. Any complaint received by
                  Dealer which, in the opinion of Dealer, cannot be readily
                  remedied, shall be promptly reported to American Honda by
                  Dealer.

         3.5.     Dealer agrees that it will not make any misrepresentations or
                  misleading statements regarding the items making up the total
                  selling price of Honda Products or as to the prices or charges
                  relating to such items. With the understanding that Dealer is
                  the sole judge of the price at which it sells Honda Products,
                  dealer recognizes that a retail customer has the right to
                  purchase Honda Automobiles without being required to purchase
                  any optional equipment or accessories which the purchaser does
                  not want or order unless such equipment or accessories are
                  required under applicable laws or regulations.

         3.6.     Dealer agrees to make certain that all Honda Products sold by
                  it have received predelivery services and inspection in
                  accordance with applicable procedures

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                  and directives issued by American Honda. Dealer further agrees
                  that all Honda Products sold by it will be in proper operating
                  condition prior to delivery to any customer. To enable Dealer
                  to fulfill its obligations in this regard, Dealer agrees that
                  an appropriate number of its service personnel will be fully
                  qualified to perform all necessary predelivery service and
                  inspection.

         3.7.     Dealer agrees to comply with, and operate consistent with, all
                  applicable provisions of the National Traffic and Motor
                  Vehicle Safety Act of 1966 and the Federal Clean Air Act, as
                  amended, including such applicable rules and regulations as
                  may be issued thereunder, and all other applicable federal,
                  state and local motor vehicle safety and emission control
                  requirements. In the interests of motor vehicle safety and
                  emission control, American Honda agrees to provide to Dealer,
                  and Dealer to American Honda, 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 the rules and
                  regulations issued thereunder, and all other applicable
                  federal, state and local motor vehicle safety and emission
                  control requirements.

         3.8.     Dealer agrees to conduct a used vehicle operation at or in
                  connection with the Dealership Premises, to the extent
                  reasonably required to enhance the opportunity for sales of
                  Honda Automobiles.

         3.9.     American Honda and Dealer recognize that it may be necessary
                  for American Honda to formulate new or different policies or
                  directives to meet new or changing technology, laws or
                  circumstances. In the operation of Dealer's business and in
                  the sale and promotion of Honda Products, in rendering service
                  and in all other activities of the Dealership Operations,
                  Dealer will follow all reasonable directives, suggestions and
                  policies of American Honda. All written directives,
                  suggestions and policies of American Honda contained in any of
                  its bulletins or manuals, which are in effect as of the date
                  of the Agreement or are issued thereafter, will be deemed a
                  part of the Agreement.

         3.10.    Dealer agrees that it will, at all times, maintain in effect
                  all licenses required for Dealership Operations and for the
                  Dealership Premises.

         3.11.    Dealer agrees that it will comply with all laws, rules,
                  regulations and guides relating to the conduct of its
                  business.

         3.12.    Dealer agrees that it will perform any and all warranty,
                  recall, product improvement or product update service in
                  compliance with instructions and directives issued by American
                  Honda, regardless of where the Honda Product involved was
                  purchased. To protect and maintain the goodwill and reputation
                  of Honda Products and the Honda Trademarks, Dealer agrees that
                  it will not charge any customer for warranty service or any
                  work done in connection with such warranty, recall, product
                  improvement or update or any other service as to which Dealer
                  is reimbursed by American Honda.

         3.13.    Dealer fully understands that the success of its Dealership
                  Operations depends to a great extend upon the amount of net
                  working capital, owner's equity, flooring and lines of credit
                  which Dealer maintains. Accordingly, for the benefit of both
                  American Honda and Dealer, Dealer agrees that it will, at all
                  times, pay for Honda Products promptly and, to do so, maintain
                  its minimum net working capital, owner's equity, flooring and
                  lines of credit in the amounts specified in Paragraph G of the
                  Agreement. American Honda will have the right, reasonably, to
                  specify an increased amount of minimum net working capital,
                  owner's equity, flooring, or lines of credit to be used in
                  Dealership Operations and Dealer agrees promptly to establish
                  and maintain the increased amount. Dealer and

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                  American Honda agree to execute such new documents as American
                  Honda may reasonably require to evidence revised capital
                  requirements.

         3.14.    Dealer agrees to assume the defense of American Honda and to
                  indemnify American Honda against any money judgment, less any
                  offset recovered by American Honda, in any lawsuit naming
                  American Honda as a defendant where such lawsuit relates to:
                  (a) an alleged failure by Dealer to comply, in whole or in
                  part, with any obligation assumed by Dealer pursuant to the
                  Agreement, (b) Dealer's alleged negligent or improper
                  repairing or servicing of Honda Products, or such other motor
                  vehicles or equipment as may be sold or serviced by Dealer,
                  (c) Dealer's alleged breach of any contract between Dealer and
                  Dealer's customer or (d) Dealers alleged misrepresentation or
                  misleading statement, either direct or indirect, to any
                  customer of Dealer. American Honda may, at its sole option and
                  at its expense, participate in defending any such lawsuit.

4.       WARRANTY.

         4.1.     Dealer understands and agrees that the only warranties that
                  will be applicable to Honda Products will be such written
                  warranty or warranties as may be furnished by American Honda.
                  Except for its express liability under such written
                  warranties, American Honda neither assumes nor authorizes any
                  other person or party to assume for it any other obligation or
                  liability in connection with any Honda Product or component
                  thereof.

         4.2.     Dealer agrees that it will expressly incorporate any warranty
                  furnished by American Honda with a Honda Automobile as a part
                  of each order form or other contract for the sale of such
                  Honda Automobile by Dealer to any buyer. Dealer further agrees
                  that it will deliver to the buyer of all Honda Products, at
                  the time of delivery of such Honda Products, copies of such
                  applicable warranties as may be furnished by American Honda.
                  Dealer agrees to abide by and implement in all other respects
                  American Honda's warranty procedures in effect at the time of
                  Dealer's sale.

5.       ADVERTISING AND PROMOTIONAL PROGRAMS.

         5.1.     Dealer agrees to develop and actively utilize programs for the
                  advertisement and promotion of Honda Products and its
                  servicing of such products. Such programs will include the
                  prominent display and use or demonstration of Honda
                  Automobiles. Dealer further agrees to cooperate with all
                  reasonable promotional programs developed by American Honda.

         5.2.     Dealer agrees that it will not advertise, promote or trade in
                  Honda Products or the servicing thereof in such a manner as to
                  injure or be detrimental to the goodwill and reputation of
                  American Honda and the Honda Trademarks. Dealer further agrees
                  that it will not publish or otherwise disseminate any
                  advertisement or announcement or use any form or media of
                  advertising which is objectionable to American Honda. Dealer
                  agrees to discontinue immediately any advertisement or form of
                  advertising deemed objectionable upon request of American
                  Honda.

         5.3.     Subject to applicable federal, state or local ordinances,
                  regulations and statutes, Dealer agrees to erect and maintain,
                  at the Dealership Location, at Dealer's expense, authorized
                  product and service signs of types required by American Honda,
                  as well as such other authorized signs as are necessary to
                  advertise the Dealership Operations effectively and as are
                  required by American Honda.

                                        6

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6.       TRADEMARKS AND SERVICE MARKS.

         6.1.     Dealer agrees that American Honda has the exclusive right to
                  use and to control the use of the Honda Trademarks and but for
                  the right and license granted by Paragraph 6.2 hereof to use
                  and display the Honda Trademarks, Dealer would have no right
                  to use the same.

         6.2.     Dealer is hereby granted the nonexclusive right and license to
                  use and display the Honda Trademarks at the Dealership
                  Premises. Such use or display is limited to that which is
                  necessary in connection with the sale, offering for sale and
                  servicing of Honda Products at retail at the Dealership
                  Location. Dealer agrees that it will promptly discontinue the
                  use of any of the Honda Trademarks or change the manner in
                  which any of the Honda Trademarks is used when requested to do
                  so by American Honda.

         6.3.     American Honda and Dealer recognize that Dealer is free to
                  sell Honda Products to customers wherever they may be located.
                  However, in order that American Honda may establish and
                  maintain an effective network of authorized dealers for the
                  sale and service of Honda Products, Dealer specifically agrees
                  that it will not display Honda Trademarks, or, either directly
                  or indirectly, establish any place or places of business for
                  the conduct of any of its Dealership Operations except at the
                  locations and for the purpose described in Paragraph E of the
                  Agreement without the prior written approval of American
                  Honda. Dealer further agrees that the rights and license
                  granted by Paragraph 6.2 hereof will be automatically canceled
                  upon a change in the location of the Dealership Location
                  unless such change in location was previously approved in
                  writing by American Honda. Dealer further agrees that such
                  right and license terminates with the termination of the
                  Agreement.

         6.4.     If Dealer refuses or neglects to keep and perform its
                  obligations assumed under this Article 6 or under paragraph
                  10.3 hereof, Dealer will reimburse American Honda for all
                  costs, attorneys' fees and other expenses incurred by American
                  Honda in connection with any action to require Dealer to
                  comply therewith.

         GENERAL BUSINESS REQUIREMENTS.

         7.1.     It is to the mutual benefit of Dealer and American Honda that
                  uniform accounting systems and practices be maintained by
                  authorized dealers. Accordingly, Dealer agrees to maintain
                  such systems and practices as are required by American Honda.
                  In the event Dealer engages in the sale of any other product,
                  Dealer agrees to maintain and keep separate records and books
                  relating to the sale and servicing of Honda Products.

         7.2.     Dealer agrees to furnish monthly to American Honda, on or
                  before the times designated by American Honda, on forms
                  prescribed by American Honda, a complete and accurate
                  financial and operating statement covering the preceding
                  month and calender-year-to-date operations and showing the
                  true and accurate condition of Dealership Operations.
                  Financial statements and other business information furnished
                  to American Honda will not be submitted to any third party
                  unless authorized by Dealer or required by law, or the
                  information is pertinent to a proceeding in which American
                  Honda and Dealer are parties.

         7.3.     Dealer agrees to keep complete and current records regarding
                  the sale and servicing of Honda Products and to prepare for
                  American Honda such reports, based on those records, as
                  American Honda may reasonably request. In order that policies
                  and procedures relating to the applications for reimbursement
                  for

                                        7

<PAGE>
                  warranty and other applicable work and for other credits or
                  reimbursements may be applied uniformly to all authorized
                  dealers, Dealer agrees to prepare, keep current and retain
                  records in support of requests for reimbursement or credit in
                  accordance with policies and procedures designated by American
                  Honda.

         7.4.     Dealer agrees to permit, during reasonable business hours,
                  American Honda, or its designee, to examine, audit, reproduce
                  and take copies of all reports, accounts and records
                  pertaining to the sale, servicing and inventorying of Honda
                  Products, including, but not limited to, records in support of
                  claims for reimbursement or credit from American Honda, and
                  with the prior approval of Dealer, which approval will not be
                  unreasonably withheld, to interview Dealer employees with
                  respect thereto.

         7.5.     Dealer agrees that Dealership Operations will be conducted in
                  the normal course of business during and for not less than the
                  days of the week and hours of the day customary for automobile
                  dealerships in the Primary Market Area.

         7.6.     Dealer agrees and understands that any retail price which may
                  be suggested by American Honda is merely a suggested price,
                  and Dealer has no obligation to sell any Honda Products at
                  such price. Dealer further understands and agrees that it is
                  the sole judge of the price at which it sells Honda Products
                  and the price it charges others for service, subject only to
                  applicable local, state and federal laws, rules and
                  regulations.

         7.7.     Dealer understands and agrees that it will be responsible for
                  and will pay any and all taxes, whether sales, use or excise,
                  and all other governmental or municipal charges imposed upon
                  the sale of Honda Products by American Honda to Dealer and
                  will maintain accurate records of the same, which records will
                  be available to American Honda, or its designee, during
                  regular business hours for inspection.

         7.8.     Dealer understands and agrees that, while it has
                  responsibility for the promotion and retail sale and servicing
                  of Honda Products within the Primary Market Area, it has no
                  territorial exclusivity. Further, American Honda reserves the
                  right, based upon reasonable criteria, to appoint other
                  authorized dealers of Honda Products in the Primary Market
                  Area.

8.       APPOINTMENT OF SUCCESSOR AND REPLACEMENT DEALERS.

         8.1.     The parties recognize that Honda Products are marketed through
                  a system of authorized dealers developed by American Honda and
                  that customers and American Honda have a vital interest in the
                  preservation and efficient operation of the system. American
                  Honda has the responsibility of continuing to administer the
                  system and of selecting the most suitable dealer candidate in
                  each circumstance. Accordingly, Dealer agrees that American
                  Honda has the right to select each successor and replacement
                  dealer and to approve its owners and principal management and
                  the location of dealership facilities. Further, Dealer agrees
                  to provide written notice to American Honda of any potential
                  change in the involvement, ownership or management specified
                  in Paragraphs C and D of the Agreement. No change affecting
                  such involvement, ownership or management will be made without
                  the prior written approval of American Honda, which approval
                  will not be unreasonably withheld.

         8.2.     Upon Dealer's request, American Honda will execute with Dealer
                  a Successor Addendum designating proposed Dealer operators or
                  owners of a successor

                                        8

<PAGE>

                  dealer to be established if the Agreement expires or is
                  terminated because of death or incapacity. The request must be
                  executed by all persons identified in Paragraph C of the
                  Agreement and all proposed dealer operators or owners and be
                  submitted to American Honda prior to such death or incapacity;
                  provided that such proposed dealer operators or owners must be
                  acceptable to American Honda.

         8.3.     Dealer, but not American Honda, may cancel any executed
                  Successor Addendum. If American Honda notifies Dealer that it
                  does not plan to permit Dealership Operations to continue at
                  the Dealership Location, American Honda shall have no
                  obligation to execute a new Successor Addendum.

         8.4.     If the Agreement expires or is terminated because of death or
                  incapacity and Dealer and American Honda have not executed a
                  Successor Addendum, the remaining owners, successors or heirs
                  may propose a successor dealer entity to continue Dealership
                  Operations at the Dealership Location. Such proposal must be
                  made within thirty days of the event causing expiration or
                  termination by submitting a written proposal to American
                  Honda. Such proposal will be accepted by American Honda if it
                  does not introduce new owners or if the proposed new owners
                  are acceptable to American Honda.

         8.5.     Any successor dealer entity approved by American Honda
                  pursuant to this Article 8 must establish that it can conduct
                  Dealership Operations in an efficient and businesslike manner.
                  Such successor dealer entity will have one year to meet
                  reasonable performance criteria established from time to time
                  by American Honda. In the event such successor dealer entity
                  fails to meet those criteria, such failure will be separate
                  grounds for termination of the Agreement.

9.       TERMINATION OF AGREEMENT.

         9.1.     The Agreement may be terminated, at any time, by mutual
                  agreement of American Honda and Dealer.

         9.2.     Dealer may terminate the Agreement, at any time, by giving
                  American Honda notice of such termination. Such termination
                  shall be effective upon the date specified by Dealer, or if no
                  date is specified, then upon receipt by American Honda of such
                  notice.

         9.3.     American Honda may terminate the Agreement, at any time, by
                  serving on Dealer a written notice of such termination by
                  certified or registered mail to Dealer at the Dealership
                  Premises. Subject to other provisions of the Agreement,
                  termination will be effective ninety (90) days after mailing
                  of such notice to dealer or such longer period as American
                  Honda may specify; provided, however, that termination will be
                  effective ten (10) days after mailing if for an occurrence of
                  any circumstance referred to in Paragraphs 9.4.A, 9.4.B,
                  9.4.J or 9.4.M hereof.

         9.4.     It is recognized that each of the following grounds is within
                  control of Dealer or originates from action taken by Dealer or
                  its employee(s) and is contrary to the spirit and objectives
                  of the Agreement. Therefore, American Honda may terminate the
                  Agreement upon the occurrence of any of the following:

                  9.4.A    Failure by Dealer to secure and continuously maintain
                           any license necessary for the conduct by Dealer of
                           its business pursuant to the Agreement or the
                           termination or expiration without renewal, or
                           suspension or revocation of any such license for any
                           reason whatsoever, whether or not license is
                           reinstated.

                                        9

<PAGE>

                  9.4.B.   Any change, transfer or attempted transfer by
                           Dealer or any Dealer Owner, voluntarily or by
                           operation of law, of the whole or any part of the
                           Agreement or any interest or legal or beneficial
                           ownership therein or any right or obligation
                           thereunder, directly or indirectly, such as, for
                           example only, by way of a sale of an underlying
                           ownership interest in Dealer or the Dealership
                           Premises or a change in the persons having control or
                           managerial authority, without prior written consent
                           of American Honda. Any purported change, transfer or
                           assignment shall be null and void and not binding on
                           American Honda.

                  9.4.C.   Any dispute, disagreement, controversy or personal
                           difficulty between or among Dealer Owners or in
                           the management of Dealer which, in American Honda's
                           opinion, may adversely affect the conduct of Dealer's
                           business, or the presence in the management of Dealer
                           of any person who, in American Honda's opinion, does
                           not have or no longer has requisite qualifications
                           for his position.

                  9.4.D.   Impairment of the reputation or the financial
                           standing of Dealer or of any Dealer Owner subsequent
                           to the execution of the Agreement; or the
                           ascertainment by American Honda of any facts existing
                           at or prior to execution of the Agreement which tend
                           to impair such reputation or financial standings; or
                           the failure of Dealer continuously to meet American
                           Honda's minimum requirements of net working capital,
                           owner's equity or line(s) of credit.

                  9.4.E.   Failure by Dealer to pay, within ten (10) days after
                           written demand from American Honda, any delinquent
                           accounts or other monies due to American Honda from
                           Dealer.

                  9.4.F.   Submission or participation in the submission to
                           American Honda of any false or fraudulent statement,
                           application, report, request for issuance of
                           reimbursement, compensation, refund or credit,
                           including but not limited to any false or fraudulent
                           claim for warranty work, labor rate, set-up
                           reimbursement or warranty coverage.

                  9.4.G.   Use by Dealer of any deceptive or fraudulent
                           practice, whether willful, negligent or otherwise, in
                           the sale of any Honda Product.

                  9.4.H.   Any conviction in any court of original jurisdiction
                           of Dealer or any Dealer Owner or any employee of the
                           Dealership Operations for any crime or violation of
                           any law if, in the opinion of American Honda, such
                           conviction or violation may adversely affect the
                           conduct of the Dealership Operations or tend to be
                           harmful to the goodwill of American Honda or to the
                           reputation of Honda Products or the Honda Trademarks,
                           or the violation or refusal or neglect of Dealer to
                           comply with the provisions of the National Traffic
                           and Motor Vehicle Safety Act of 1966, as amended, or
                           the Clean Air Act, or any rules, regulations or
                           standards under either of said Acts, including but
                           not limited to performance of any product update or
                           recall operation as directed by American Honda.

                  9.4.I.   Dealer's entering into any agreement, combination,
                           understanding or contract, oral or written, with any
                           other corporation, person, firm or other legal entity
                           for the purpose of fixing prices of Honda Products or
                           otherwise violating any law.

                  9.4.J.   Dealer's abandonment of Dealership Premises or
                           failure to maintain Dealership Operations as a going
                           business, open during customary

                                           10

<PAGE>

                           business hours for the days and hours as are
                           customary for automobile dealerships in the Primary
                           Market Area, provided such failure is not due to
                           causes beyond Dealer's control. Failure of the
                           Dealership Premises to remain open for seven (7)
                           consecutive days will constitute, without more, such
                           abandonment.

                  9.4.K.   Death or incapacity of any Dealer Owner or Dealer
                           Manager, subject to the provisions of Article 8.

                  6.4.L.   Failure of Dealer to make improvements, alterations
                           or modifications of its Dealership Premises which are
                           required to meet reasonable facility requirements of
                           American Honda or which Dealer has agreed or
                           represented to American Honda that Dealer will make
                           or do.

                  9.4.M.   The movement of Dealership Premises to a new location
                           or the establishment of an additional location for
                           the sale or service of any Honda Products without the
                           prior written approval of American Honda.

                  9.4.N.   The failure of Dealer to provide adequate
                           representation, promotion, sales or service,
                           including warranty work, of any Honda Products.

                  9.4.O.   Dealer's breach of any provision of the Agreement or
                           Dealer's failure to comply with any contained in the
                           Agreement.

         9.5.     The Agreement will also be terminated upon written notice by
                  American Honda in the event:

                  9.5.A.   Of termination of American Honda's distribution
                           agreement as a Honda Automobile distributor.

                  9.5.B.   Of withdrawal by American Honda from the market in
                           which Dealer is located.

                  9.5.C.   American Honda will, for any reason, discontinue the
                           distribution of Honda Automobiles.

         9.6.     Upon the occurrence of any of the following facts or
                  circumstances, the Agreement will terminate automatically,
                  without notice or other action by American Honda or Dealer;
                  and upon such termination, any dealings between American
                  Honda and dealer will be on a day-to-day basis at the sole
                  option of American Honda and may be discontinued at any time
                  by American Honda:

                  9.6.A.   Insolvency by any definition of Dealer, or

                  9.6.B.   The existence of facts or circumstances which would
                           allow the voluntary commencement by Dealer, or the
                           involuntary commencement against Dealer, of any
                           proceedings under any bankruptcy act or law or under
                           any state insolvency law; or

                  9.6.C.   The appointment of a receiver or other officer having
                           similar powers for Dealer or the Dealership Premises;
                           or

                  9.6.D.   Any levy against Dealer under attachment, garnishment
                           or execution similar process which is not within ten
                           (10) days vacated or removed by payment or bonding.

         9.7.     American Honda may select any applicable provision under which
                  it elects to terminate the Agreement and give notice
                  thereunder, notwithstanding the

                                       11
<PAGE>
                  existence of any other grounds for termination or the failure
                  to refer to such other grounds in the notice of termination.
                  The failure by American Honda to specify additional ground(s)
                  for cancellation in its notice will not preclude American
                  Honda from later establishing that termination is also
                  supported by such additional ground(s).

         9.8.     The acceptance by American Honda of orders from Dealer or the
                  continued sale of Honda Products to Dealer or any other act or
                  course of dealing of American Honda after termination of the
                  Agreement will not be construed as or deemed to be a renewal
                  of the Agreement for any further term or a waiver of such
                  termination. Any dealings after termination will be on a
                  day-to-day basis.

         9.9.     In all cases, Dealer agrees to conduct itself and Dealership
                  Operations until the effective date of termination and after
                  termination or expiration of the Agreement, so as not to
                  injure the reputation or goodwill of the Honda Trademarks or
                  American Honda.

10.      RIGHTS, OBLIGATIONS AND DEALINGS UPON TERMINATION.

         10.1.    Upon the mailing of a written notice of termination or after
                  date of the expiration of the Agreement without renewal,
                  American Honda will have the right to cancel all pending
                  orders of Dealer for Honda Products, special tools and
                  equipment, whether previously accepted by American Honda or
                  not, except as specifically otherwise provided in this Section
                  10. Notwithstanding the foregoing, if American Honda chooses
                  to fill any orders, it will not be obligated to fill any other
                  orders and will not be precluded from changing the terms of
                  any sale.

         10.2.    Not later than the effective date of the termination or
                  expiration of the Agreement, Dealer will cease to hold itself
                  out as being authorized to sell Honda Products and will
                  discontinue selling Honda Products or performing service as an
                  authorized dealer.

         10.3.    In addition to the requirements of Section 10.2, not later
                  than the effective date of the termination or expiration of
                  the Agreement, Dealer will, at its sole expense, discontinue
                  any and all uses of any Honda Trademarks and any words,
                  symbols and marks which are confusingly similar thereto; will
                  remove all signs bearing any Honda Trademark and will destroy
                  all stationery, repair orders, advertising and solicitation
                  materials, and all other printed matter bearing any Honda
                  Trademark or referring directly or indirectly to American
                  Honda or Honda Products in any way which might make it appear
                  to members of the public that Dealer is still an authorized
                  dealer. The foregoing will include, but not be limited to,
                  discontinuing the use of a Honda Trademark as part of Dealer's
                  business and corporate name. Dealer will also deliver to
                  American Honda, at American Honda's place of business, or to a
                  person designated by American Honda, or will destroy the same
                  upon request by American Honda, any and all technical or
                  service literature, advertising and other printed material
                  then in Dealer's possession which relates to Honda Products
                  and which was acquired or obtained by Dealer from American
                  Honda. Dealer will destroy any sign bearing a Honda Trademark
                  which has not been repurchased by American Honda.

         10.4.    In the event the Agreement is terminated pursuant to the
                  provisions of paragraph 9.3 hereof, upon request of American
                  Honda for copying Dealer's records of predelivery service,
                  warranty service, recall or update service or other service of
                  Honda Products. In the event the Agreement is terminated
                  pursuant to the provisions of paragraphs 9.1 or 9.2 hereof,
                  upon the request of

                                       12
<PAGE>

                  American Honda, Dealer will deliver to American Honda copies
                  of such Dealer records.

         10.5.    Dealer may, at any time within five (5) days after the
                  effective date of termination or expiration of the Agreement,
                  notify American Honda in writing of Dealer's desire to have
                  American Honda repurchase from Dealer Honda Products in
                  Dealer's inventory which were purchased from American Honda
                  and which, when American Honda accepts sole possession:

                  10.5.A.  In the case of Honda Automobiles, are new and of the
                           then current model year, as designated by American
                           Honda, unused, undamaged and in first-class resalable
                           condition, regardless of whether or not American
                           Honda has exercised its right of inspection; and

                  10.5.B.  In the case of Honda Parts are new, listed as current
                           in the Parts Price Book, unused, undamaged, in their
                           original package and in first-class resalable
                           condition.

         10.6.    Upon termination or expiration without renewal, upon request
                  of Dealer given no later than five (5) days after the
                  effective date of termination or expiration, American Honda
                  will repurchase all signs which use a Honda Trademark as were
                  authorized in advance by American Honda and all service
                  information and materials, special tools and equipment
                  designed specifically for service of Honda Automobiles and
                  which were purchased from American Honda and are usable on
                  current Honda Products, provided that such signs, information,
                  materials, tools and equipment are less than five (5) years
                  old and are in good working order.

         10.7.    American Honda will repurchase from Dealer Honda Products and
                  signs, information, materials, tools and equipment as
                  aforesaid on the condition that Dealer furnishes an inventory
                  to American Honda within thirty (30) day after the termination
                  or expiration without renewal of the Agreement and complies
                  strictly with all procedures and conditions of repurchase
                  issued by American Honda at the time of repurchase. American
                  Honda will have the right and option to assign to another
                  person or entity the right to purchase such Honda Products.

                  10.7.A.  The price for Honda Products, other than tools,
                           equipment, information, materials and signs, will be
                           the price at which they were originally purchased by
                           Dealer from American Honda or the price last
                           established by American Honda for the sale of
                           identical Honda Products, whichever may be lower, and
                           in either case will be less all prior refunds and
                           allowances made by American Honda with respect
                           thereto, if any. The price for tools, equipment,
                           information, materials and signs will be the price
                           paid by Dealer reduced by straight-line depreciation
                           on the basis of a useful life of five (5) years. In
                           all cases, the price will be reduced by any
                           applicable restocking charge which may be in effect
                           at the time American Honda's receipt of goods to be
                           repurchased.

                  10.7.B.  Dealer agrees to store Honda Products and other items
                           which American Honda desires or is obligated to
                           repurchase until receipt from American Honda of
                           rejection of repurchase or instructions for shipping
                           and return to American Honda. Dealer agrees to
                           strictly follow and abide by all instructions for
                           return as may be issued from time to time by American
                           Honda. All Honda Products will be properly and
                           suitably packaged and containered for safe
                           transportation to American Honda. All damage,
                           regardless of nature or cause, will be the
                           responsibility of Dealer until the Honda Products are
                           inspected and accepted by

                                       13

<PAGE>
                           American Honda for repurchase. Storage of such Honda
                           Products and other items will be at Dealer's expense
                           for a period of ninety (90) days after Dealer
                           requests repurchase and provides an inventory as
                           provided by paragraphs 10.6 and 10.7 hereof.
                           Thereafter, Dealer will be entitled to charge
                           American Honda a reasonable storage charge.

                  10.7.C.  American Honda, or its designee, at such reasonable
                           time and for such a reasonable period of time as
                           American Honda may determine, will have the right to
                           enter the premises where items for repurchase are
                           being held for the purpose of checking the inventory
                           submitted by Dealer or examining, inspecting and
                           inventorying any and all Honda Products. If American
                           Honda agrees to repurchase and Dealer fails to
                           furnish an inventory, Dealer will reimburse American
                           Honda for all costs of American Honda taking an
                           inventory.

                  10.7.D.  Only those Honda Products meeting the requirements of
                           Paragraphs 10.5 and 10.6 hereof are or will be
                           eligible for return to American Honda. American Honda
                           will not be obligated to give Dealer credit for any
                           Honda Products which do not meet those requirements.

                  10.7.E.  Dealer warrants and represents that all Honda
                           Products tendered to American Honda for repurchase
                           will be free of all liens, encumbrances, security
                           interests or attachments at the time repurchase is
                           requested by Dealer. Clear title will be vested in
                           American Honda upon receipt of goods. Dealer will
                           execute and deliver any documents necessary to vest
                           clear title in American Honda, and Dealer will be
                           responsible for complying with all applicable
                           procedures, including but not limited to those
                           relating to bulk transfers.

                  10.7.F.  Dealer will pay all freight and insurance charges
                           from Dealer to the place of delivery designated by
                           American Honda, provided that Dealer will not be
                           liable for any amount greater than the freight and
                           insurance charges from Dealer to American Honda's
                           closest automobile warehouse or parts center as
                           American Honda may designate. Claims for damage or
                           allegedly caused by any carrier will be the sole
                           responsibility of Dealer, and in no event will
                           American Honda be obligated to make a claim against a
                           carrier or be liable to Dealer for damage.

                  10.7.G.  As a condition of repurchase and notwithstanding any
                           other agreement or offer to repurchase, payment for
                           repurchase will first be applied against any
                           obligations or money owed by Dealer to American
                           Honda. All payment due from American Honda to Dealer
                           pursuant to any provisions of the Agreement or in
                           connection with the termination of the Agreement or
                           in connection with the termination of the Agreement
                           will be made by American Honda after receipt of the
                           goods to be repurchased and after all debits and
                           credits have been ascertained and applied to Dealer's
                           accounts, and Dealer has delivered to American Honda
                           the manufacturer's certificate of origin or other
                           document of title for Honda Automobiles tendered to
                           American Honda for repurchase. In the event it be
                           found that a balance is due from Dealer to American
                           Honda, Dealer will pay such sum to American Honda
                           within ten (10) days of written notice of such
                           balance.

                                       14

<PAGE>
11.      GENERAL PROVISIONS.

         11.1.    Dealer acknowledges that only the President or a designated
                  Vice President, Secretary or Assistant Secretary of American
                  Honda is authorized to execute the Agreement, agree to any
                  variation, modification or amendment of any of the provisions
                  thereof, including authorized location, or to make commitments
                  for or on behalf of American Honda. No other employee of
                  American Honda may make any promise or commitment on behalf of
                  American Honda or in any way bind American Honda. Dealer
                  agrees that it will not rely on any statements or purported
                  statements except from personnel as authorized hereinabove.

         11.2.    The Agreement contains the entire agreement between Dealer and
                  American Honda. Dealer acknowledges that no representations or
                  statements other than those expressly set forth therein were
                  made by American Honda or any officer, employee, agent or
                  representative thereof, or were relied upon by Dealer in
                  entering into the Agreement. The Agreement terminates and
                  supersedes, as of the execution thereof, all prior agreements
                  relating to Honda Products, if any.

         11.3.    Dealer hereby waives, abandons and relinquishes any and all
                  claims of any kind and nature whatsoever arising from or out
                  of or in connection with any prior agreement entered into
                  between Dealer and American Honda; provided, however, that
                  nothing herein contained shall be deemed a release or waiver
                  of any claim arising out of prior sales of Honda Products by
                  American Honda to Dealer.

         11.4.    The Agreement is personal to the individuals identified as
                  principals, owner(s), partners or shareholder(s) in Paragraph
                  C. Neither the Agreement, nor any part hereof or any interest
                  therein, may be transferred or assigned by Dealer, in whole or
                  in part, directly or indirectly, voluntarily or by operation
                  of law, without the prior written approval of American Honda.
                  Any attempted transfer assignment will be void and not binding
                  upon American Honda.

         11.5.    All notices, notifications or requests under or pursuant to
                  the provisions of the Agreement will be directed to the
                  address of the principal places of business of the respective
                  parties to the Agreement. If either party cannot effect notice
                  at the place of business of the other because a party has
                  abandoned its place of business or refuses to accept notice,
                  then, and only in such case, notice may be served on American
                  Honda through its designated agent for service of process and
                  upon Dealer through the Department of Motor Vehicles (or its
                  equivalent) in the state where the Dealership Location is
                  authorized by American Honda.

         11.6.    The waiver by either party of any breach or violation of or
                  default under any provision of the Agreement will not be a
                  waiver by such party of any other provision or of any
                  subsequent breach or violation thereof or default thereunder.
                  The failure or delay of either party to take prompt action
                  upon any breach or violation of the Agreement will not be
                  deemed a waiver of the right to take action for such breach,
                  default or violation at any time in the future.

         11.7.    Dealer agrees to keep confidential and not disclose, directly
                  or indirectly, any information which American Honda designates
                  as confidential.

         11.8.    The Agreement is and shall be deemed to have been entered into
                  in California and shall be governed by and construed in
                  accordance with the laws of the State of California.

                                       15

<PAGE>

         11.9.    If any provision of this Agreement should be held invalid or
                  unenforceable for any reason whatsover or to conflict with any
                  applicable law, the 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 altering the tenor of the
                  Agreement, then it will be deemed deleted from the Agreement
                  in such jurisdiction, and in either case, the remainder of the
                  Agreement will be valid and binding.

         11.10.   The terms of the Agreement may not be modified except in
                  writing signed by an authorized officer of the parties.
                  Without limiting the generality of the foregoing, no course of
                  dealing will serve to modify or alter the terms of the
                  Agreement.

         11.11.   Dealer is an independent business. The Agreement does not
                  constitute Dealer the agent or legal representative of
                  American Honda for any purpose whatsoever. Dealer is not
                  granted any expressed or implied right or authority to assume
                  or create any obligation on behalf of or in the name of
                  American Honda or to bind American Honda in any manner or
                  thing whatsover. Dealer has paid no consideration for the
                  Agreement. Neither the Agreement nor any right granted under
                  it is a property right.

         11.12.   The expiration or termination of the Agreement will not
                  extinguish any claims American Honda may have for the
                  collection of money or the enforcement of any obligations
                  which may be in the nature of continuing obligations.

                                       16

<PAGE>

12.      DEFINITIONS.

         12.1.    American Honda means American Honda Motor Co., Inc. a
                  California corporation, and the Honda Automobile Division that
                  markets Honda Automobiles.

         12.2.    Dealer means the person, firm, corporation, partnership or
                  other legal entity that signs the Agreement and each of the
                  persons identified in Paragraph C.

         12.3.    Dealer Manager means the principal manager of Dealer
                  identified in Paragraph D upon whose personal service American
                  Honda relies in entering into the Agreement.

         12.4.    Dealer Owner means the owner(s) of Dealer identified in
                  Paragraph C upon whose personal service American Honda relies
                  in entering into the Agreement.

         12.5.    Dealership Location means the location approved by American
                  Honda for the purpose of conducting Dealership Operations.

         12.6.    Dealership Operations means all operations contemplated by the
                  Agreement. These operations include the sale and service of
                  Honda Products, and any other activities undertaken by Dealer
                  related to Honda Products, including rental and leasing
                  operations, used car sales and body shop operations, and
                  finance and insurance operations, whether conducted directly
                  or indirectly by Dealer.

         12.7.    Dealership Premises means the facilities provided by Dealer at
                  its Dealership Location for the conduct of Dealership
                  Operations as approved by American Honda.

         12.8.    Honda Automobiles means such new passenger cars as are from
                  time to time offered for sale by American Honda to Dealer for
                  resale as part of the Honda automobile line as defined by
                  American Honda.

         12.9.    Honda Parts means parts, accessories and optional equipment
                  marketed by American Honda for use with Honda Automobiles.

         12.10.   Honda Products means Honda Automobiles and Honda Parts.

         12.11.   Honda Trademarks means the various trademarks, service marks,
                  names and designs which American Honda uses or is authorized
                  to use in connection with Honda Products or services relating
                  thereto.

         12.12.   Primary Market Area means the geographical area designated for
                  Dealer by American Honda from time to time.

         12.13.   The Agreement means the Honda Automobile Dealer's Sales and
                  Service Agreement and these Standard Provisions which are
                  incorporated therein by reference.

                                       17<PAGE>
                                                                  EXHIBIT 10.2.4

                                  [LEXUS LOGO]

                               AUTOMOBILE DEALER
                               SALES AND SERVICE
                                   AGREEMENT
<PAGE>
                                   Lexus Agt.

                             LEXUS DEALER AGREEMENT

This is an Agreement between LEXUS, A Division of TOYOTA MOTOR SALES, U.S.A.,
INC., ("LEXUS" or "DISTRIBUTOR") and ______________________ ("DEALER"), a
closely held corporation, incorporated in the State of __________________ and
doing business as ____________________________.

                           LEXUS GOALS AND COMMITMENTS

LEXUS is committed to creating luxury automobiles which are and will be among
the finest ever built anywhere in the world. LEXUS is equally committed to
setting a new standard for extraordinary customer satisfaction throughout the
ownership cycle. To achieve this goal, LEXUS intends to maintain the finest
dealer network in the industry.

This Agreement embodies the LEXUS commitment to promote fairness within a
harmonious and mutually profitable business relationship between LEXUS and
DEALER. The ultimate goal shared by all parties to this Agreement is the
satisfaction of the LEXUS customer.

                              PURPOSES OF AGREEMENT

LEXUS is the exclusive distributor in the continental United States of LEXUS
Products which are manufactured or approved by TOYOTA MOTOR CORPORATION
("FACTORY"). The principal purposes of this Agreement are to set forth and
affirm the commitment of LEXUS and DEALER to the goals of LEXUS; authorize
DEALER to sell and service LEXUS Products; and identify the rights and
responsibilities of LEXUS and DEALER.

I.       TERM OF AGREEMENT

         This Agreement is effective on the date signed by LEXUS and shall
         continue for a period of six years unless ended earlier by mutual
         agreement or terminated as provided herein. This Agreement may not be
         extended except by written consent of LEXUS. Any continuation of
         business relations between the parties following expiration of this
         Agreement shall be on a day-to-day basis and subject to the provisions
         of this Agreement. Such a continuation shall not be deemed a waiver of
         the right of termination nor shall it imply that either party has
         committed to continue to do business with the other at any time in the
         future.

         Upon the expiration of this Agreement, DISTRIBUTOR shall have no
         obligation to renew the Agreement or to extend DEALER a subsequent
         Agreement. However, 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 term to be determined at DISTRIBUTOR'S sole
         discretion.

II.      OWNERSHIP AND OFFICERS

         This is a personal service Agreement and has been entered into by LEXUS
         upon, and in consideration of, DEALER'S representation that only the
         following named persons are the owners and officers of DEALER, and that
         such persons are committed to achieving the purposes, goals and
         commitments of this Agreement:

                                       1

<PAGE>

                                                                PERCENT OF
OWNERS NAMES                     ADDRESS                        OWNERSHIP
________________________         ______________________         _______________
________________________         ______________________         _______________
________________________         ______________________         _______________
________________________         ______________________         _______________

OFFICERS NAMES                   ADDRESS                        TITLE
________________________         ______________________         _______________
________________________         ______________________         _______________
________________________         ______________________         _______________
________________________         ______________________         _______________

III.     MANAGEMENT

         LEXUS and DEALER agree that qualified dealership management and active,
         day-to day owner involvement are critical to the successful operation
         of DEALER. OWNERS agree, and LEXUS enters into this Agreement on the
         condition that at least one OWNER will be involved on a full-time basis
         in the day-to-day operations of the dealership. If no OWNER is involved
         on a full-time basis in DEALER's day-to day operations, the General
         Manager named below shall devote his or her personal services on a
         full-time basis to the general management of the dealership.

         DEALER appoints _________________________ as General Manager. The
         General Manager has full managerial authority to make all operating
         decisions on behalf of DEALER. DEALER shall make no change in the
         dealership's ownership or General Manager without the prior written
         approval of LEXUS.

IV.      APPROVED DEALER LOCATIONS

         In order that DISTRIBUTOR may establish and maintain an effective
         network of authorized LEXUS dealers, DEALER agrees that it shall
         conduct its LEXUS operations only 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 LEXUS Products and the
         display of LEXUS Marks:

         New Vehicle Sales and Showroom           Used Vehicle Display and Sales

                                       2

<PAGE>

         Sales and General Office                        Body and Paint

         Parts and Service                               Other Facilities

         DEALER shall not modify or change the designated usage or function of
         any facility without the prior written consent of LEXUS.

V.       CERTIFICATION

         By their signatures hereto, the parties certify that they have read and
         understood this Agreement, including the Standard Provisions which are
         incorporated herein, and agree to abide and be bound by all of its
         terms and conditions.

                                        _________________________ DEALER
                                        DBA

DATE: __________________ By: _________________________    ______________________
                             SIGNATURE                    TITLE

                                        LEXUS, A Division of
                                        TOYOTA MOTOR SALES, U.S.A., INC.

DATE: __________________ By: _________________________    ______________________
                             SIGNATURE                    TITLE

                                       3

<PAGE>
                             LEXUS DEALER AGREEMENT
                                       AND
                               STANDARD PROVISIONS

                                TABLE OF CONTENTS

I.      TERM OF AGREEMENT................................................... 1
II.     OWNERSHIP AND OFFICERS.............................................. 1
III.    MANAGEMENT.......................................................... 2
IV.     APPROVED DEALER LOCATIONS........................................... 2
V.      CERTIFICATION....................................................... 3

VI.     ACQUISITION, DELIVERY AND INVENTORY OF LEXUS PRODUCTS............... 4
        A. APPOINTMENT OF DEALER............................................ 4
        B. AVAILABILITY AND ALLOCATION OF PRODUCT........................... 4
        C. PRICES AND TERMS OF SALE......................................... 4
        D. MODE, PLACE AND CHARGES FOR DELIVERY OF PRODUCTS................. 4
        E. DAMAGE CLAIMS AGAINST TRANSPORTATION CARRIERS.................... 5
        F. DELAY OR FAILURE OF DELIVERY..................................... 5
        G. DIVERSION CHARGES................................................ 5
        H. CHANGES OF DESIGN, OPTIONS OR SPECIFICATIONS..................... 5
        1. DISCONTINUANCE OF MANUFACTURE OR IMPORTATION..................... 5
        J. MINIMUM VEHICLE INVENTORIES...................................... 6
        K. PRODUCT MODIFICATIONS............................................ 6

VII.    DEALER MARKETING OF LEXUS PRODUCTS.................................. 6
        A. DEALER'S SALES RESPONSIBILITIES.................................. 6
        B. EXPORT POLICY.................................................... 7
        C. LEXUS DEALER ASSOCIATION......................................... 7
        D. USED VEHICLES.................................................... 7
        E. PRIMARY AREA OF RESPONSIBILITY................................... 7
        F. EVALUATION OF DEALER'S SALES AND MARKETING PERFORMANCE........... 7

VIII.   DEALER SERVICE OBLIGATIONS.......................................... 7
        A. CUSTOMER SERVICE STANDARDS....................................... 7
        B. NEW MOTOR VEHICLE PRE-DELIVERY SERVICE........................... 8
        C. WARRANTY AND POLICY SERVICE...................................... 8

IX.     USE OF PARTS AND ACCESSORIES IN NON-WARRANTY SERVICE................ 8
        A. WARRANTY DISCLOSURES AS TO NON-GENUINE PARTS AND
           ACCESSORIES...................................................... 9
        B. ROADSIDE ASSISTANCE PROGRAM...................................... 9
        C. SERVICE CAMPAIGN INSPECTIONS AND CORRECTIONS..................... 9
        D. COMPLIANCE WITH SAFETY AND EMISSION CONTROL
           REQUIREMENTS..................................................... 9
        E. COMPLIANCE WITH CONSUMER PROTECTION STATUTES, RULES
           AND REGULATIONS..................................................10

X.      SERVICE AND PARTS ORGANIZATION......................................10
        A. ORGANIZATION AND STANDARDS.......................................10
        B. SERVICE EQUIPMENT AND SPECIAL TOOLS..............................10

<PAGE>

        C. PARTS STOCKING LEVEL.............................................11
        D. AFTER-HOURS DELIVERY.............................................11
        E. ASSISTANCE PROVIDED BY DISTRIBUTOR...............................11
           1. Service Manuals And Materials.................................11
           2. Field Service Personnel Assistance............................11
        F. EVALUATION OF DEALER'S SERVICE AND PARTS PERFORMANCE.............11

XI.     CUSTOMER SATISFACTION RESPONSIBILITIES..............................12
        A. DEALER'S CUSTOMER SATISFACTION OBLIGATIONS.......................12
           1. DEALER'S Customer Satisfaction Plan...........................12
           2. Employee Training.............................................12
           3. Customer Satisfaction Manager.................................12
           4. Customer Assistance Response System...........................12
        B. EVALUATION OF DEALER'S CUSTOMER SATISFACTION PERFORMANCE.........12

XII.    DEALERSHIP FACILITIES AND IDENTIFICATION............................13
        A. FACILITIES.......................................................13
        B. SERVICE RECEPTION AREA...........................................13
        C. DEALER'S OPERATING HOURS.........................................13
        D. SIGNS............................................................14
        E. EVALUATION OF DEALERSHIP FACILITIES..............................14
        F. USE OF LEXUS MARKS...............................................14
           1. Use By DEALER.................................................14
           2. Discontinuance of Use.........................................14

XIII.   CAPITAL, CREDIT, RECORDS AND UNIFORM SYSTEMS........................15
        A. NET WORKING CAPITAL..............................................15
        B. FLOORING AND LINES OF CREDIT.....................................15
        C. PAYMENT TERMS....................................................15
        D. UNIFORM ACCOUNTING SYSTEM........................................16
        E. RECORDS MAINTENANCE..............................................16
        F. EXAMINATION OF DEALERSHIP ACCOUNTS AND RECORDS...................16
        G. TAXES............................................................16
        H. CONFIDENTIALITY..................................................16
        1. DATA TRANSMISSION SYSTEMS........................................17
        J. SALES REPORTING..................................................17

XIV.    TRANSFERS...........................................................17
        A. SALE OF OWNERSHIP INTEREST IN DEALERSHIP.........................17
        B. RIGHT OF FIRST REFUSAL OR OPTION TO PURCHASE.....................17
           1. Rights Granted................................................17
           2. Exercise of Distributor's Rights..............................18
           3. Right of First Refusal........................................18
           4. Option to Purchase............................................18
           5. Dealer's Obligations..........................................19

XV.     SUCCESSION RIGHTS UPON DEATH OR INCAPACITY..........................19
        A. SUCCESSION TO OWNERSHIP AFTER DEATH OF OWNER.....................19
        B. INCAPACITY OF OWNER..............................................20
        C. NOMINATION OF SUCCESSOR PRIOR TO DEATH OR INCAPACITY OF
           OWNER............................................................20

<PAGE>

XVI.    TERMINATION.........................................................21
        A. VOLUNTARY TERMINATION BY DEALER..................................21
        B. TERMINATION FOR CAUSE............................................21
           1. Immediate Termination.........................................21
           2. Termination Upon Sixty Days Notice............................22
           3. Termination for Failure of Performance........................23
           4. Termination Upon Death or Incapacity..........................23
        C. NOTICE OF TERMINATION............................................23
        D. CONTINUANCE OF BUSINESS RELATIONS................................23
        E. REPURCHASE PROVISIONS............................................23
           1. DISTRIBUTOR'S Obligations.....................................23
           2. Responsibilities of DEALER....................................24
           3. Payment by DISTRIBUTOR........................................25

XVII.   MANAGEMENT OF DISPUTES..............................................25
        A. ALTERNATIVE DISPUTE RESOLUTION PROGRAMS..........................25
        B. APPLICABLE LAW...................................................26
        C. MUTUAL RELEASE...................................................26

XVIII.  DEFENSE AND INDEMNIFICATION.........................................26
        A. DEFENSE AND INDEMNIFICATION BY DISTRIBUTOR.......................26
        B. DEFENSE AND INDEMNIFICATION BY DEALER............................27
        C. CONDITIONAL DEFENSE AND/OR INDEMNIFICATION.......................28
        D. THE EFFECT OF SUBSEQUENT DEVELOPMENTS............................28
        E. TIME TO RESPOND AND RESPONSIBILITIES OF THE PARTIES..............28

XIX.    GENERAL PROVISIONS..................................................29
        A. NOTICES..........................................................29
        B. NO IMPLIED WAIVERS...............................................29
        C. SOLE AGREEMENT OF THE PARTIES....................................29
        D. DEALER NOT AN AGENT OR REPRESENTATIVE............................29
        E. ASSIGNMENT OF RIGHTS OR DELEGATION OF DUTIES.....................29
        F. NO FRANCHISE FEE.................................................30
        G. SEVERABILITY.....................................................30
        H. NEW AND SUPERSEDING DEALER AGREEMENTS............................30
        I. BENEFIT..........................................................30

XX.     DEFINITIONS.........................................................31
        A. DEALER...........................................................31
        B. OWNER............................................................31
        C. GENERAL MANAGER..................................................31
        D. DEALER FACILITIES................................................31
        E. APPROVED LOCATION(S).............................................31
        F. LEXUS MARKS......................................................31
        G  LEXUS MOTOR VEHICLES.............................................31
        H. GENUINE LEXUS PARTS AND ACCESSORIES..............................31
        I. LEXUS PRODUCTS...................................................31

XXI.    ADDITIONAL PROVISIONS...............................................32

<PAGE>

                             LEXUS DEALER AGREEMENT
                               STANDARD PROVISIONS

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

VI.      ACQUISITION, DELIVERY AND INVENTORY OF LEXUS PRODUCTS

         A. APPOINTMENT OF DEALER

            DISTRIBUTOR hereby appoints DEALER and grants unto it the
            non-exclusive right to buy and resell the LEXUS Products identified
            in the LEXUS Product Addendum. DEALER accepts such appointment and
            understands that its appointment as a DEALER does not grant it an
            exclusive right to sell LEXUS Products in any specified geographical
            area.

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

         B. AVAILABILITY AND ALLOCATION OF PRODUCT

            DISTRIBUTOR will allocate LEXUS Products among its dealers in a fair
            and equitable manner. DEALER acknowledges and agrees that
            DISTRIBUTOR may consider, among other things, DEALER'S service
            capacity, customer satisfaction performance, sales performance,
            sales potential and facilities in determining the quantity of
            Product to offer to DEALER. DISTRIBUTOR will, upon DEALER'S request,
            explain the considerations and method used to distribute LEXUS
            Products to DEALER.

         C. PRICES AND TERMS OF SALE

            DISTRIBUTOR, from time to time, shall establish and revise prices
            and other terms for the sale of LEXUS Products to DEALER. Revised
            prices, terms, or provisions shall apply to any LEXUS Product not
            invoiced to DEALER by DISTRIBUTOR at the time the notice of such
            change is given to DEALER (in the case of LEXUS 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.

         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 delivery of LEXUS
            Products to DEALER. DEALER shall pay DISTRIBUTOR such charges as
            DISTRIBUTOR in its sole discretion establishes for such
            transportation services.

                                        4
<PAGE>
                           Lexus Standard Provisions

         E. DAMAGE CLAIMS AGAINST TRANSPORTATION CARRIERS

            DEALER shall promptly notify DISTRIBUTOR of any damage occurring
            during transit and shall, if so directed by DISTRIBUTOR, file
            claims against transportation carrier for damage. DEALER agrees to
            assist DISTRIBUTOR in obtaining recovery against any transportation
            carrier or insuree for loss or damage to LEXUS Products shipped
            hereunder. DISTRIBUTOR shall not be liable for loss or damage to
            LEXUS Products sold hereunder occurring after delivery thereof to
            premises of DEALER

            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
            LEXUS 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, including but not limited to any law or
            regulation of any governmental entity, acts of God, foreign or civil
            wars, riots, interruptions of navigation, shipwrecks, fires, floods,
            storms, strikes, lockouts or other labor troubles, embargoes,
            blockades, or delay or failure of FACTORY to deliver LEXUS Products.

         G. DIVERSION CHARGES

            If after shipment DEALER fails or refuses to accept LEXUS Products
            that it had agreed to purchase, DEALER shall pay all charges
            incurred by DISTRIBUTOR as a result of such diversion. 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 diversion.

            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 diversion point
            established by DISTRIBUTOR.

         H. CHANGES OF DESIGN, OPTIONS OR SPECIFICATIONS

            DISTRIBUTOR may change the design or specifications of any LEXUS
            Product or the options in any LEXUS 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 and/or DISTRIBUTOR may discontinue the manufacture,
            importation or distribution of all or part of any LEXUS Product,
            whether motor vehicle, parts, options, or accessories, including any
            model, series, or body style of any

                                        5
<PAGE>

            LEXUS Motor Vehicle at any time without any obligation or liability
            to DEALER by reason thereof.

         J. MINIMUM VEHICLE INVENTORIES

            DEALER agrees that it shall, at all times, maintain in showroom
            ready condition at least the minimum inventory of LEXUS Motor
            Vehicles as may be established by DISTRIBUTOR from time to time.

         K. PRODUCT MODIFICATIONS

            DEALER agrees that it will not install aftermarket accessories or
            make any modifications to LEXUS vehicles that may impair or
            adversely affect a vehicle's safety, emissions, structural integrity
            or performance.

VII.     DEALER MARKETING OF LEXUS PRODUCTS

         A. DEALER'S SALES RESPONSIBILITIES

            DEALER recognizes that customer satisfaction and the successful
            promotion and sale of LEXUS Products are significantly dependent on
            DEALER'S advertising and sales promotion activities. Therefore,
            DEALER at all times shall:

            1. Use its best efforts to promote, sell and service new and used
               LEXUS Products;

            2. Advertise and merchandise LEXUS Products and use current LEXUS
               showroom displays;

            3. Ensure that its sales personnel meet the educational and
               management standards established by DISTRIBUTOR and have such
               personnel, as are appropriate, attend all sales training courses
               prescribed by DISTRIBUTOR at DEALER'S expense;

            4. Maintain a high standard of ethics in advertising, promoting and
               selling LEXUS Products and avoid engaging in any
               misrepresentation or unfair or deceptive practices. DEALER shall
               discontinue any advertising that DISTRIBUTOR may find to be
               injurious to DISTRIBUTOR'S business or reputation or to the LEXUS
               Marks, or that are likely to be violative of applicable laws or
               regulations;

            5. Advertise in the local classified telephone directories
               identifying itself as an authorized LEXUS DEALER. Such ad(s)
               shall properly display the LEXUS Marks; and

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

                                        6
<PAGE>

         B. EXPORT POLICY

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

         C. LEXUS DEALER ASSOCIATION

            Except where prohibited by law, DEALER will participate in a LEXUS
            Dealer Advertising Association. DEALER agrees to cooperate in the
            establishment of such an association and to fund its fair share of
            advertising and merchandising programs undertaken by the
            association.

         D. USED VEHICLES

            DEALER agrees to display and sell used vehicles at the Approved
            Location(s). DEALER shall maintain for resale an adequate inventory
            of used vehicles.

         E. PRIMARY AREA OF RESPONSIBILITY

            DISTRIBUTOR will assign DEALER a geographic area called a Primary
            Market Area ("PMA"). DEALER'S PMA may be altered or adjusted by
            DISTRIBUTOR at any time. The PMA is a tool used by DISTRIBUTOR to
            evaluate DEALER'S performance of its obligations. DEALER agrees
            that it has no right or interest in any PMA that DISTRIBUTOR, in its
            sole discretion, may designate. As permitted by local law,
            DISTRIBUTOR may add new dealers to, or relocate dealers in or into
            the PMA assigned to DEALER.

         F. EVALUATION OF DEALER'S SALES AND MARKETING PERFORMANCE

            DISTRIBUTOR periodically will evaluate DEALER'S sales and marketing
            performance under this Agreement. DEALER'S evaluation will be based
            on such reasonable criteria as DISTRIBUTOR may establish including,
            without limitation, comparisons of DEALER'S sales with those of
            other LEXUS dealers. DISTRIBUTOR will review such evaluations with
            DEALER and DEALER shall take prompt corrective action, if required,
            to improve its performance.

VIII.    DEALER SERVICE OBLIGATIONS

         A. CUSTOMER SERVICE STANDARDS

            DEALER and DISTRIBUTOR agree that the success and future growth of
            the LEXUS franchise is substantially dependent upon the customers'
            ability to obtain responsive, high-quality vehicle servicing.
            Therefore, DEALER agrees to:

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

                                        7
<PAGE>

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

            3. Ensure that necessary repairs on LEXUS Motor Vehicles are
               accurately diagnosed and professionally performed; and

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

         B. NEW MOTOR VEHICLE PRE-DELIVERY SERVICE

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

         C. WARRANTY AND POLICY SERVICE

            DEALER acknowledges that the only warranties of DISTRIBUTOR or
            FACTORY applicable to LEXUS Products shall be the New Vehicle
            Limited Warranty or such other written warranties that may be
            expressly furnished 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 or FACTORY. Any such additional obligations assumed by
            DEALER shall be the sole responsibility of DEALER.

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

IX.      USE OF PARTS AND ACCESSORIES IN NON-WARRANTY SERVICE

         Subject to the provisions of Sections VI(k) and VIII(c), DEALER has the
         right to sell, install or use for making non-warranty repairs products
         that are not Genuine LEXUS 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 LEXUS vehicles are, or meet the high quality standards
         of, Genuine LEXUS Parts or Acces-

                                        8
<PAGE>

         sories. DEALER agrees that in sales, repairs or servicing where DEALER
         does not use Genuine LEXUS Parts or Accessories, DEALER only will
         utilize such other parts or accessories as:

         1. Will not adversely affect the mechanical operation of the LEXUS
            vehicle being sold, repaired or serviced; and

         2. Are equivalent in quality and design to Genuine LEXUS Parts or
            Accessories.

         DEALER further agrees that it will not offer to sell any parts or
         accessories that for reasons of quality or image are reasonably
         objected to by LEXUS.

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

            In order to avoid confusion and to minimize potential customer
            dissatisfaction, in any non-warranty instance where DEALER sells,
            installs or uses non-Genuine LEXUS Parts or Accessories, DEALER
            shall disclose such fact to the customer and shall advise the
            customer that the item is not included in warranties furnished by
            DISTRIBUTOR or FACTORY. 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.

         B. ROADSIDE ASSISTANCE PROGRAM

            Dealer agrees to participate in the LEXUS Roadside Assistance
            Program as specified by DISTRIBUTOR.

         C. SERVICE CAMPAIGN INSPECTIONS AND CORRECTIONS

            DEALER agrees to perform service campaign inspections and/or
            corrections for owners or users of all LEXUS 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 LEXUS Warranty Policies 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 LEXUS Warranty Policies and Procedures Manual.

         D. 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,

                                        9
<PAGE>
            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 LEXUS Motor Vehicle on which such
            installations are required, shall properly install such devices or
            equipment on such LEXUS Motor Vehicles. 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.

         E. 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 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 repair or replacement laws or other
            consumer laws or regulations.

X.       SERVICE AND PARTS ORGANIZATION

         A. ORGANIZATION AND STANDARDS

            DEALER agrees to organize and maintain a complete service and parts
            organization of the highest quality, including a qualified Service
            Manager, Parts Manager, Diagnostic Specialists, Technicians and a
            sufficient complement of qualified customer relations, service and
            parts personnel as recommended in the LEXUS Dealer Facility Planner.
            DEALER'S personnel will meet the educational, management and
            technical training standards established by DISTRIBUTOR, and will
            attend all service, parts and customer satisfaction training courses
            prescribed by DISTRIBUTOR at DEALER'S expense.

         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.

                                       10
<PAGE>

         C. PARTS STOCKING LEVEL

            DEALER agrees to maintain its parts stock at minimum stocking levels
            established by DISTRIBUTOR. In consideration for DEALER'S
            maintenance of the Dealer Stocking Guide, DISTRIBUTOR grants DEALER
            a one hundred percent (100%) obsolescence parts return policy. For
            non-stocking guide parts, parts orders will accrue a five percent
            (5%) obsolescence eligibility.

         D. AFTER-HOURS DELIVERY

            Dealer agrees to provide DISTRIBUTOR, upon request, access to a
            secure area for after-hours parts or vehicle delivery.

         E. ASSISTANCE PROVIDED BY DISTRIBUTOR

            1. SERVICE MANUALS AND MATERIALS
               DISTRIBUTOR agrees to make available to DEALER copies of such
               service manuals and 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.

            2. FIELD SERVICE PERSONNEL ASSISTANCE

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

         F. EVALUATION OF DEALER'S SERVICE AND PARTS PERFORMANCE

            DISTRIBUTOR will evaluate periodically DEALER'S: (i) service
            performance in areas such as customer satisfaction, warranty
            administration, service repairs, service management, facilities,
            operating procedures, new vehicle pre-delivery service; and (ii)
            parts operations, facilities, tools and equipment. DISTRIBUTOR
            agrees to review such evaluations with DEALER and DEALER agrees to
            take prompt action to improve the service and parts performance to
            satisfactory levels as DISTRIBUTOR may require. Such action shall,
            if requested by DISTRIBUTOR, include an action plan by DEALER for
            improvement of service and parts performance within a specific time
            period approved by DISTRIBUTOR.

                                       11
<PAGE>

XI.      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 LEXUS name should be synonymous with the highest level of
         customer satisfaction.

         A. DEALER'S CUSTOMER SATISFACTION OBLIGATIONS

            DEALER will be responsible for satisfying LEXUS customers in all
            matters except those that are directly related to product design
            and manufacturing or are otherwise out of DEALER'S control. DEALER
            will take all reasonable steps to ensure that each customer is
            completely satisfied with his or her LEXUS Products and the services
            and practices of DEALER. DEALER will not engage in any practice or
            method of operation if its nature or quality may impair the
            reputation of LEXUS or LEXUS Products and it has been reasonably
            objected to by DISTRIBUTOR.

            1. DEALER'S CUSTOMER SATISFACTION PLAN

               DEALER shall provide a detailed plan of DEALER'S customer
               satisfaction program to DISTRIBUTOR and shall implement such
               program on a continuous basis. This plan shall include an
               ongoing system for emphasizing customer satisfaction to all
               DEALER'S employees, for training DEALER employees and for
               conveying to customers that DEALER is committed to the highest
               possible level of customer satisfaction.

            2. EMPLOYEE TRAINING

               DEALER agrees to participate and to have its employees
               participate in LEXUS customer satisfaction training as required
               by DISTRIBUTOR, at DEALER'S expense.

            3. CUSTOMER SATISFACTION MANAGER

               If requested by DISTRIBUTOR, DEALER agrees to employ a full-time
               Customer Satisfaction Manager with the necessary authority to
               make all decisions regarding customer satisfaction and to resolve
               all customer problems.

            4. CUSTOMER ASSISTANCE RESPONSE SYSTEM

               DEALER agrees to implement a system, approved by DISTRIBUTOR,
               that will respond immediately to requests for customer assistance
               from DISTRIBUTOR.

         B. EVALUATION OF DEALER'S CUSTOMER SATISFACTION PERFORMANCE

            DISTRIBUTOR periodically will evaluate DEALER'S customer
            satisfaction performance based on the following considerations and
            efforts by DEALER.

            1. DISTRIBUTOR will provide DEALER with Owner Satisfaction Index
               ("OSI") reports or such other equivalent data as will permit
               DEALER to assess its performance and maintain the highest level
               of customer satisfaction.

                                       12
<PAGE>

               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 and implement specific action plans to
               improve results in the event that DEALER is below the average for
               other LEXUS dealers. The plans are to be reviewed with
               DISTRIBUTOR on a basis that DISTRIBUTOR deems appropriate. DEALER
               will use its best efforts to 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.

XII.     DEALERSHIP EACH AND IDENTIFICATION

         A. FACILITIES

            1. In order for DISTRIBUTOR to establish an effective network of
               authorized LEXUS 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 and identification required by
               DISTRIBUTOR. DEALER'S facility shall meet the minimum facility
               standards established by LEXUS.

            2. To assist DEALER in planning, building, remodeling, or
               maintaining dealership facilities, DISTRIBUTOR will provide
               DEALER a LEXUS Dealer Facility Planner and will identify sources
               from which DEALER may purchase facility consultation and planning
               services, and architectural materials and furnishings that meet
               LEXUS standards and guidelines. DISTRIBUTOR will also make
               available to DEALER, upon request, sample copies of building
               layout plans, facility planning recommendations, and an
               applicable identification program covering the placement,
               installation and maintenance of required signs. In addition,
               representatives of DISTRIBUTOR will be available to DEALER from
               time to time to counsel and advise DEALER and dealership
               personnel in connection with DEALER'S planning and equipping the
               dealership premises.

         B. SERVICE RECEPTION AREA

            DEALER agrees to maintain a service reception area that meets all
            requirements set forth in the LEXUS Dealer Facility Planner, that
            is consistent with the LEXUS image and that will promote a high
            level of customer satisfaction.

         C. DEALER'S OPERATING HOURS

            DEALER agrees to keep its dealership operations open for business
            during all 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.

                                       13
<PAGE>

         D. SIGNS

            Subject to applicable governmental statutes, ordinances and
            regulations, DEALER agrees to erect, display and maintain, at
            Approved Location(s) only and at DEALER'S sole expense, such
            standard authorized product and service signs as specified by
            DISTRIBUTOR.

         E. EVALUATION OF DEALERSHIP FACILITIES

            DISTRIBUTOR periodically will evaluate DEALER'S facilities. In
            making such evaluations, DISTRIBUTOR may consider, among other
            things: the actual building and land provided by DEALER for the
            performance of its responsibilities under this Agreement; compliance
            with DISTRIBUTOR'S current requirements for dealership operations;
            the appearance, condition, layout and signage of the dealership
            facilities; and such other factors as in DISTRIBUTOR'S opinion may
            relate to DEALER'S performance of its responsibilities under this
            Agreement. DISTRIBUTOR will discuss such evaluations with DEALER and
            DEALER shall take prompt action to comply with DISTRIBUTOR'S
            recommendations and minimum facility standards.

         F. USE OF LEXUS MARKS

            1. USE BY DEALER

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

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

            2. DISCONTINUANCE OF USE

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

               a. Discontinue the use of the word LEXUS and the LEXUS 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 LEXUS or bearing any
                  LEXUS Mark;

               b. Discontinue the use of the word LEXUS or the LEXUS 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;

                                       14
<PAGE>

               c. Remove all product signs bearing said word(s) or LEXUS Marks
                  at DEALER'S sole cost and expense;

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

               e. Refrain from any action, including without limitation, any
                  advertising, stating or implying that it is authorized to sell
                  or distribute LEXUS Products.

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

XIII.    CAPITAL, CREDIT, RECORDS AND UNIFORM SYSTEMS

         A. NET WORKING CAPITAL

            DEALER agrees to establish and maintain actual net working capital
            in an amount not less than the minimum net working capital
            specified by DISTRIBUTOR. DISTRIBUTOR will have the right to
            increase the minimum net working capital required, and DEALER
            agrees promptly to establish and maintain the increased amount.

         B. FLOORING AND LINES OF CREDIT

            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.

            DISTRIBUTOR may increase the required amounts of flooring or lines
            of credit, and DEALER agrees promptly to establish and maintain the
            increased amount.

            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

            All monies or accounts due DEALER from DISTRIBUTOR will be
            considered net of DEALER'S indebtedness to DISTRIBUTOR. 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. Any amounts owed by DEALER to DISTRIBUTOR that are not paid
            when due shall bear interest as established by DISTRIBUTOR and
            permitted by law. Payments by DEALER to DISTRIBUTOR shall be made in
            such a manner as prescribed by DISTRIBUTOR and shall be applied
            against DEALER'S indebtedness in accordance with DISTRIBUTOR'S
            policies and practices.

                                       15
<PAGE>

         D. UNIFORM ACCOUNTING SYSTEM

            DEALER agrees to maintain its financial books and records in
            accordance with the LEXUS Accounting Manual, as amended from time
            to time by DISTRIBUTOR. In addition, DEALER shall furnish to
            DISTRIBUTOR complete and accurate financial or operating
            information, including without limitation, a financial and/or
            operating statement covering the current month and calendar
            year-to-date operations and showing the true and accurate condition
            of DEALER'S business. DEALER shall promptly furnish to DISTRIBUTOR
            copies of any adjusted financial and/or operating statements,
            including any and all adjusted, year-end statements prepared for
            tax or any other purposes. All such information shall be furnished
            by DEALER to DISTRIBUTOR via DISTRIBUTOR'S electronic communications
            network and in such a format and at such times as prescribed by
            DISTRIBUTOR.

         E. RECORDS MAINTENANCE

            DEALER agrees to keep complete, accurate and current records
            regarding its sale, leasing and servicing of LEXUS Products for a
            minimum of five (5) years, exclusive 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 LEXUS Warranty Policies and Procedures Manual.

         F. EXAMINATION OF DEALERSHIP ACCOUNTS AND RECORDS

            DISTRIBUTOR shall have the right at all reasonable times and 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 reporting, service and repair of LEXUS Products
            by DEALER.

         G. TAXES

            DEALER shall be responsible for and duly pay all sales taxes, use
            taxes, excise taxes and other governmental or municipal charges
            imposed, levied or based upon the purchase or sale of LEXUS
            Products by DEALER, and shall maintain accurate records of the same.

         H. CONFIDENTIALITY

            DISTRIBUTOR agrees that it shall not provide any financial data or
            documents submitted to it by DEALER to any third party unless
            authorized by DEALER, required by law, 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.

                                       16
<PAGE>
        I. DATA TRANSMISSION SYSTEMS

           DISTRIBUTOR has established a national, private, centralized database
           of information about all LEXUS vehicles and customers. In order to
           provide the highest level of service and support and to facilitate
           accurate and timely reporting of relevant DEALER operational and
           financial data, DEALER shall provide information to DISTRIBUTOR as
           specified by DISTRIBUTOR from time to time, including, but not
           limited to, customer service, sales, parts inventory and accounting
           information. All information shall be submitted by DEALER via the
           LEXUS electronic communications network. DEALER will acquire, install
           and maintain at its expense the necessary equipment and systems
           compatible with the LEXUS electronic communications network.
           DISTRIBUTOR will recommend to DEALER an independent source for
           purchasing the required equipment and systems. DEALER, however, may
           purchase equipment from any source, provided the equipment meets the
           LEXUS electronic communications network specifications.

        J. SALES REPORTING

           DEALER agrees to accurately report to DISTRIBUTOR, with such relevant
           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 as DISTRIBUTOR may reasonably
           require from time to time.

XIV. TRANSFERS

        A. SALE OF OWNERSHIP INTEREST IN DEALERSHIP

           This is a personal services Agreement based upon the personal skills,
           service, qualifications and commitment of DEALER'S OWNERS and General
           Manager. For this reason, and because DISTRIBUTOR has entered into
           this Agreement in reliance upon DEALER'S, OWNERS' and General
           Manager's qualifications, DEALER agrees to obtain DISTRIBUTOR'S prior
           written approval of any proposed change in its ownership, General
           Manager or any proposed disposition of DEALER'S principal assets.

           DISTRIBUTOR shall not be obligated to renew this Agreement or to
           execute a new Agreement to a proposed transferee unless DEALER first
           makes arrangements acceptable to DISTRIBUTOR to satisfy any
           outstanding indebtedness to DISTRIBUTOR.

        B. RIGHT OF FIRST REFUSAL OR OPTION TO PURCHASE

           1. 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

                                       17

<PAGE>

              interest or realty. DISTRIBUTOR'S exercise of its right or option
              under this Section supercedes DEALER'S right 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 assignee or successor in interest of DEALER or
              purchaser of DEALER'S assets.

           2. EXERCISE OF DISTRIBUTOR'S RIGHTS

              DISTRIBUTOR shall have thirty (30) days from the following events
              within which to exercise its option to purchase or right of first
              refusal: (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 notice from DEALER of the
              death of the majority owner of DEALER; or (iii) DISTRIBUTOR'S
              disapproving of any application submitted by an OWNER'S heirs
              pursuant to Section XIV. DISTRIBUTOR'S exercise of its right of
              first refusal under this Section neither shall be dependent upon
              nor require its prior refusal to approve the proposed transfer.

           3. RIGHT OF FIRST REFUSAL

              If DEALER has entered into a bona fide written buy/sell agreement
              for its dealership business 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 buy/sell
              agreement, and to cancel 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 under-
              standings between the parties to the buy/sell agreement. Refusal
              to provide such documentation or to state that no such documents
              exist shall create the presumption that the buy/sell agreement is
              not a bona fide agreement.

           4. OPTION TO PURCHASE

              In the event of the death of a majority OWNER or if DEALER submits
              a proposal which DISTRIBUTOR determines is not bona fide or in
              good faith, DISTRIBUTOR has the option to purchase the principal
              assets of DEALER utilizing the dealership business, including real
              estate and leasehold interest, and to cancel this Agreement and
              the rights granted DEALER. The purchase price of the dealership
              assets will be determined by good faith negotiations between the
              parties. If an agreement cannot be reached, the purchase price
              will be exclusively determined by binding 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

                                       18

<PAGE>

              Arbitration Association in the locality of DISTRIBUTOR'S
              principal place of business.

           5. DEALER'S OBLIGATIONS

              Upon DISTRIBUTOR'S exercise of its right or option and tender of
              performance under the buy/sell agreement or upon whatever terms
              may be expressed in the buy/sell agreement, DEALER shall forthwith
              transfer the affected real property by warranty deed conveying
              marketable title free and clear of all liens, claims, mortgages,
              encumbrances, tenancies and occupancies. The warranty deed 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 use of or appurtenant to the
              property or the conduct of such dealer operations. DEALER also
              agrees to execute and deliver to DISTRIBUTOR instruments
              satisfactory to DISTRIBUTOR conveying title to all personal
              property, including 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.

XV. 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 XVI(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 LEXUS Dealer

                                       19

<PAGE>

           Agreement with OWNER'S Heir(s) in the form then currently in use,
           subject to such additional conditions and for such term as
           DISTRIBUTOR deems appropriate.

           In the event that DISTRIBUTOR does not approve the designated Heir(s)
           or designated candidate for 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 waive DISTRIBUTOR'S right
           to exercise its Option to Purchase set forth in Section XIV herein.

        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 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. If DISTRIBUTOR initially approves the candidate, said
           approval shall remain in effect for the duration of the current
           Agreement. DISTRIBUTOR agrees that DEALER may renominate the
           candidate after the expiration of this Agreement, and DISTRIBUTOR
           will approve such nomination provided: (i) DISTRIBUTOR and DEALER
           have entered into a new LEXUS Dealer Agreement; and (ii) 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

                                       20

<PAGE>

           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.

XVI. 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, except in the
                 event such closure or cessation of operation is caused by some
                 physical event beyond the control of the DEALER, such as
                 strikes, civil war, riots, 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;

              c. If DEALER, or any OWNER or Officer 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; or

              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.

                                       21

<PAGE>

           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. 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 without the prior written approval of
                 DISTRIBUTOR;

              b. Any unreasonable removal of the General Manager;

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

              d. The conducting, directly or indirectly, of any LEXUS dealer
                 operation other than at the Approved Location(s);

              e. Failure of DEALER to pay DISTRIBUTOR for any LEXUS Products;

              f. Failure of DEALER to establish or maintain during the existence
                 of this Agreement the required net working capital or adequate
                 flooring and lines of credit;

              g. Any dispute, disagreement or controversy among 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;

              h. Retention by DEALER of any General Manager, who, in
                 DISTRIBUTOR'S reasonable opinion, is not competent or, if
                 previously approved by DISTRIBUTOR, no longer possesses the
                 requisite qualifications for the position, or who has acted in
                 a manner contrary to the continued best interest of both DEALER
                 and DISTRIBUTOR;

              i. Impairment of the reputation or financial standing of DEALER
                 subsequent to the execution of this Agreement;

              j. 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;

              k. Failure of DEALER to timely furnish accurate sales or financial
                 information and related supporting data;

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

              m. Any civil or administrative liability found against DEALER or
                 any OWNER or Officer of DEALER for any automotive-related
                 matter which in DISTRIBUTOR'S opinion tends to seriously and
                 adversely affect the

                                       22

<PAGE>

                 ownership, operation, management, reputation, business or
                 interests of DEALER, or to impair the goodwill associated with
                 the LEXUS Marks.

           3. TERMINATION FOR FAILURE OF PERFORMANCE

              If, upon evaluation of DEALER'S performance pursuant to
              paragraphs VII(F), X(F), XI(B) or XII(E) herein, DISTRIBUTOR
              concludes that DEALER has failed to perform adequately its sales,
              service 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.

           4. TERMINATION UPON DEATH OR INCAPACITY

              Subject to certain exceptions identified in Section XV,
              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 such OWNER'S legal representative. Termination, upon either
              of these events shall be effective ninety (90) days from the date
              of such notice.

        C. NOTICE OF TERMINATION

           Any notice of termination under this Agreement shall be in writing
           and shall be mailed to the person(s) designated to receive such
           notice, via certified mail, or shall be delivered in person. Such
           notice shall be effective upon the date of receipt. DISTRIBUTOR shall
           state the 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 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 nonrenewal in a manner that will not injure the
           reputation or goodwill of the LEXUS Marks or DISTRIBUTOR.

        E. REPURCHASE PROVISIONS

           1. DISTRIBUTOR'S OBLIGATIONS

              Upon the expiration or termination of this Agreement, DISTRIBUTOR
              shall have the right to cancel any and all shipments of LEXUS
              Products scheduled for delivery to DEALER, and DISTRIBUTOR shall
              repurchase from DEALER the following:

                                       23

<PAGE>

              a. New, unused, unmodified and undamaged LEXUS Motor Vehicles
                 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 LEXUS parts and accessories 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
                 LEXUS 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.

              d. Signs that DISTRIBUTOR has recommended for identification of
                 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
                 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. If DEALER
                 fails to do so, DISTRIBUTOR may transfer such items and deduct
                 the cost therefor from the repurchase price.

              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. DEALER will comply with the requirements of
                 any state or federal laws that relate to the repurchase
                 including bulk sales or transfer laws.

                                       24

<PAGE>

              e. DEALER will remove, at its own expense, all signage from
                 DEALER'S approved locations including all LEXUS Marks before it
                 is eligible for payment hereunder.

           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.

              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
              an Alternative Dispute Resolution program, including arbitration,
              that is binding on both parties.

XVII.   MANAGEMENT OF DISPUTES

        A. ALTERNATIVE DISPUTES RESOLUTION PROGRAMS

           1. DISTRIBUTOR and DEALER acknowledge that disputes involving the
              performance of this Agreement may from time to time arise. In
              order to minimize the effects of such disputes on their business
              relationship, the parties agree to participate in such
              Alternative Dispute Resolution programs as may be established by
              DISTRIBUTOR.

           2. Such Alternative Dispute Resolution programs may be
              established to resolve disputes in matters including, but not
              limited to, sales reporting and/or sales credit disputes, product
              allocation disputes, DEALER liability for repair/replace claims,
              warranty and service campaign reimbursement, sales contests and
              merchandising incentive programs, and accounts of debt between
              the parties.

           3. In all disputes between DEALER and DISTRIBUTOR, the parties shall
              first resort to such Alternative Dispute Resolution programs,
              including mediation, as may have been established by
              DISTRIBUTOR.

           4. 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 or DISTRIBUTOR.

                                       25

<PAGE>

           5. The parties' commitment to support and participate in
              non-binding Alternative Dispute Resolution programs specifically
              is not a waiver of DEALER'S or DISTRIBUTOR'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 party to the other as a result of the purchase of any LEXUS
           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.

XVIII.  DEFENSE AND INDEMNIFICATION

        A. DEFENSE AND INDEMNIFICATION BY DISTRIBUTOR

           DISTRIBUTOR agrees to assume the defense of DEALER and to indemnify
           and hold DEALER harmless in any lawsuit naming DEALER as a defendant
           and involving any LEXUS Product when the lawsuit also involves
           allegations of:

           1. Breach of warranty provided by DISTRIBUTOR, bodily injury or
              property damage arising out of an occurrence allegedly caused
              solely by a defect or failure to warn of a defect in design,
              manufacture or assembly of a LEXUS Product (except for tires not
              manufactured by FACTORY), provided that the defect could not
              reasonably have been discovered by DEALER during the pre-delivery
              service of the LEXUS Product;

           2. Any misrepresentation or misleading statement or unfair or
              deceptive trade practice of DISTRIBUTOR; or

           3. Any damage to a LEXUS Product purchased by DEALER from DISTRIBUTOR
              that was repaired by DISTRIBUTOR and where DEALER had not been
              notified of such damage in writing prior to the delivery of the
              subject vehicle, part or accessory to a retail Customer; and

              Provided:

           4. That DEALER delivers to DISTRIBUTOR in a manner to be designated
              by DISTRIBUTOR, within twenty (20) days of the service of any
              summons or complaint, copies of such documents and requests in
              writing a defense and/or indemnification therein (except as
              provided in Paragraph (D) below;

                                       26

<PAGE>

           5. That the complaint does not involve allegations of DEALER
              misconduct, including but not limited to, improper or
              unsatisfactory service or repair, misrepresentation, or any claim
              of DEALER'S unfair or deceptive trade practice;

           6. That the LEXUS Product which is the subject of the lawsuit was not
              altered by or for DEALER;

           7. That DEALER agrees to cooperate fully in the defense of such
              action as DISTRIBUTOR may reasonably require; and

           8. That DEALER agrees that DISTRIBUTOR may offset any recovery on
              DEALER'S behalf against any indemnification that may be required
              hereunder.

        B. DEFENSE AND INDEMNIFICATION BY DEALER

           DEALER agrees to assume the defense of DISTRIBUTOR or FACTORY and to
           indemnify and hold them harmless in any lawsuit naming DISTRIBUTOR or
           FACTORY as a defendant when the lawsuit involves allegations of:

           1. DEALER'S alleged failure to comply, in whole or in part, with any
              obligations assumed by DEALER pursuant to this Agreement;

           2. DEALER'S alleged negligent or improper repairing or servicing of
              a new or used LEXUS Motor Vehicle or equipment, or such other
              motor vehicles or equipment as may be sold or serviced by DEALER;

           3. DEALER'S alleged breach of any contract or warranty other than
              that provided by DISTRIBUTOR or FACTORY;

           4. DEALER'S alleged misleading statements, misrepresentations, or
              deceptive or unfair trade practices;

           5. Any modification or alteration made by or on behalf of DEALER to a
              LEXUS Product, except those made pursuant to the express
              instruction or with the express approval of DISTRIBUTOR; and

              Provided:

           6. That DISTRIBUTOR delivers to DEALER, within twenty (20) days of
              the service of any summons or complaint, copies of such documents,
              and requests in writing a defense and/or indemnification therein
              (except as provided in Paragraph (D) below);

           7. That DISTRIBUTOR agrees to cooperate fully in the defense of such
              action as DEALER may reasonably require; and,

           8. That the complaint does not involve allegations of liability
              premised upon separate DISTRIBUTOR'S conduct or omissions.

                                       27

<PAGE>

        C. CONDITIONAL DEFENSE AND/OR INDEMNIFICATION

           In agreeing to defend and/or indemnify each other, DEALER and
           DISTRIBUTOR may make their agreement conditional on the continued
           existence of the state of facts as then known to such party and may
           provide for the withdrawal of such defense and/or indemnification at
           such time as facts arise which, if known at the time of the original
           request for a defense and/or indemnification, would have caused
           either DEALER or DISTRIBUTOR to refuse such request.

           The party withdrawing from its agreement to defend and/or indemnify
           shall give timely notice of its intent to withdraw. Such notice
           shall be in writing and shall be effective upon receipt. The
           withdrawing party shall be responsible for all costs and expenses of
           defense up to the date of receipt of its notice of withdrawal.

        D. THE EFFECT OF SUBSEQUENT DEVELOPMENTS

           In the event that subsequent developments in a case make clear that
           the allegations which initially preclude a request or an acceptance
           of a request for a defense and/or indemnification are no longer at
           issue therein or are without foundation, any party having a right to
           a defense and/or indemnification hereunder may tender such request
           for a defense and indemnification to the other party. Neither DEALER
           nor DISTRIBUTOR shall be required to agree to such subsequent request
           for a defense and/or indemnification where that party would be unduly
           prejudiced by such delay.

        E. TIME TO RESPOND AND RESPONSIBILITIES OF THE PARTIES

           DEALER and DISTRIBUTOR shall have sixty (60) days from the receipt of
           a request for a defense and/or indemnification to conduct an
           investigation to determine whether or not, or under what conditions,
           it may agree to defend and/or indemnify pursuant to this Section.

           If local rules require a response to the complaint in the
           lawsuit prior to the time provided hereunder for a response to such
           request, the requesting party shall take all steps necessary,
           including obtaining counsel, to protect its own interest in the
           lawsuit until DEALER or DISTRIBUTOR assumes the requested defense
           and/or indemnification. In the event that DEALER or DISTRIBUTOR
           agrees to assume the defense and/or indemnification of a lawsuit, it
           shall have the right to engage and direct counsel of its own choosing
           and, except in cases where the request is made pursuant to Paragraph
           (D) above, shall have the obligation to reimburse the requesting
           party for all reasonable costs and expense, including actual
           attorneys' fees, incurred prior to such assumption.

                                       28

<PAGE>

XIX.    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 or by certified mail, return receipt requested,
           and shall be effective from the date of mailing. 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 DEALER'S LEXUS Area Office.

        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.

        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 LEXUS 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 therein 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.

        D. DEALER NOT AN AGENT OR REPRESENTATIVE

           DEALER is an independent business. This Agreement is not a property
           right and does not constitute DEALER the agent or legal
           representative of DISTRIBUTOR or FACTORY for any purpose whatsoever.
           DEALER is not granted any express or implied right or authority to
           assume or create any obligation on behalf of or in the name of
           DISTRIBUTOR or FACTORY or to bind DISTRIBUTOR or FACTORY in any
           manner whatsoever.

        E. ASSIGNMENT OF RIGHTS OR DELEGATION OF DUTIES

           This is a personal services 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.

                                       29

<PAGE>

        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 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 initial 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 LEXUS 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.

                                       30

<PAGE>

XX.     DEFINITIONS

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

        A. DEALER: The entity that executes the Dealer Agreement and is
           authorized by DISTRIBUTOR to sell and service LEXUS Products.

        B. OWNER: The persons identified in Section 11 hereof.

        C. GENERAL MANAGER: The person identified in Section III hereof.

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

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

        F. LEXUS MARKS: The various LEXUS trademarks, service marks, names,
           logos and designs that DEALER is authorized by DISTRIBUTOR to use in
           the sale and servicing of LEXUS Products.

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

        H. GENUINE LEXUS PARTS AND ACCESSORIES: All LEXUS 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 LEXUS Motor Vehicles and sold by DISTRIBUTOR to
           DEALER for resale.

        I. LEXUS PRODUCTS: All LEXUS Motor Vehicles, Parts and Accessories
           that DISTRIBUTOR, in its sole discretion, sells to DEALER for resale.
           The term "LEXUS PRODUCTS" specifically excludes any motor vehicle,
           part or accessory imported into the United States by any individual
           or company other than DISTRIBUTOR

                                       31

<PAGE>

XXI.    ADDITIONAL PROVISIONS

        In consideration of DISTRIBUTOR'S agreement to appoint DEALER as an
        authorized LEXUS dealer, DEALER-further agrees:

                                       32

<PAGE>

                                      LEXUS

                                PRODUCT ADDENDUM

LEXUS hereby grants DEALER the non-exclusive right to buy and resell the LEXUS
Motor Vehicles as defined in the LEXUS Dealer Agreement and identified below:

                                     GS 300
                                     ES 300
                                     LS 400
                                     SC 300
                                     SC 400

and all Genuine Lexus Parts and Accessories for such vehicles.

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

                                       33

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