Document:

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                                                                  Exhibit 10.25

                          MERGER AGREEMENT AND PLAN OF
                                 REORGANIZATION

                                  BY AND AMONG

                         TRANSFORMATION PROCESSING, INC.

                                       AND

                              eAUTOCLAIMS.COM, INC.

                              Dated April 24, 2000

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                                    EXHIBITS
                                    --------

EXHIBIT NO.     DESCRIPTION
-----------     -----------
5.10            Form of Affiliate Agreement

6.2(c)          Form of Opinion of Johnson, Blakely, Pope, Bokor, Ruppel
                & Burns P.A.

6.3(c)          Form of Opinion of Snow Becker Krauss P.C.

                                       -i-

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                                    SCHEDULES

NUMBER         DESCRIPTION
------         -----------
Schedule 1.6(d)(iii)   Options Issued and Outstanding under the Employee Stock
                       Option Plan of Transformation Processing, Inc. ("TPI")

Schedule 2.3   Options, Warrants, etc. Issued and Outstanding of
               eAutoclaims.com, Inc. (the "Company")

Schedule 2.4   Subsidiaries of Company

Schedule 2.6   Outstanding Taxes, Assessments and Levies of Company

Schedule 2.7   Litigation and Proceedings Against Company

Schedule 2.8   Conflicts, Required Filings and Consents of Company

Schedule 3.4   Subsidiaries of TPI

Schedule 3.6   Outstanding Taxes, Assessments and Levies of TPI

Schedule 3.8   Conflicts, Required Filings and Consents of TPI

Schedule 5.6   List of Affiliates

                                      -ii-

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SCHEDULE 1.6(d)(III)     Options Issued and Outstanding under Employee
                         Stock Option Plan of Transformation Processing, Inc.

                          Warren Strutt 2,000 at $6.75
                          Martin Foest 2,000 at $12.50

                                                30

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SCHEDULE 2.3  COMPANY OPTIONS, WARRANTS, ETC. ISSUED AND OUTSTANDING
              ------------------------------------------------------

The number of authorized shares of Company Common Stock will be increased to
12,555,000 prior to Closing.

11,980,000 shares of Company Common Stock will be issued and outstanding as of
Closing.

575,000 shares of Company Common Stock are reserved for employee stock options.

                                       31

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SCHEDULE 2.4  SUBSIDIARIES OF COMPANY
              -----------------------

The Company has subscription rights to 50% of the authorized shares of
SalvageConnection.com, Inc., a Delaware corporation, none of which shares have
as yet been issued.

                                       32

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SCHEDULE 2.6 OUTSTANDING TAXES, ASSESSMENTS AND LEVIES OF COMPANY
             ----------------------------------------------------

No exceptions.

                                       33

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SCHEDULE 2.7 LITIGATION AND PROCEEDINGS AGAINST COMPANY
             ------------------------------------------

No exceptions.

                                       34

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SCHEDULE 2.8 CONFLICTS, REQUIRED FILINGS AND CONSENTS OF COMPANY
             ---------------------------------------------------

The Company has numerous contracts with other parties, including approximately
1,700 contracts with repair shops. It appears that the Surviving Corporation
will automatically be the successor to the Company's interests under these
contracts as a result of the Merger without the need for execution of any
assignment documents.

The Company is currently negotiating an Asset Purchase/Software Development
Agreement with Offshore Websites, Inc. The terms of this agreement will provide
that a successor in interest to the Company will acquire all of the rights and
obligations of the Company under the agreement.

                                                35

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SCHEDULE 3.4  Subsidiaries of TPI

                    None

                                       36

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SCHEDULE 3.6 Outstanding Taxes, Assessments and Levies of TPI

                None

                                       37

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SCHEDULE 3.8 Conflicts, Required Filings and Consents of TPI

               None

                                       38

<PAGE>

                   MERGER AGREEMENT AND PLAN OF REORGANIZATION

         This MERGER AGREEMENT AND PLAN OF REORGANIZATION (the "Agreement") is
made and entered into as of April 24, 2000, by and among Transformation
Processing, Inc., a Nevada corporation ("TPI"), eAutoclaims.com, Inc., a
Delaware corporation (the "Company") and the shareholders of the Company listed
on the signature page hereto (the "Shareholders").

                                    RECITALS

         A. The Boards of Directors of each of the Company and TPI believe it is
in the best interests of each company and their respective stockholders that TPI
acquire the Company through the statutory merger of the Company with and into
TPI (the "Merger") and, in furtherance thereof, have approved the Merger and the
transactions contemplated hereby upon the terms and subject to the conditions
set forth herein.

         B. Pursuant to the Merger and subject to the terms and conditions of
this Agreement, TPI shall acquire, at the Effective Time (as defined below) from
the Shareholders all of the then issued and outstanding shares of capital stock
and derivative securities of the Company (the "Company Securities") in exchange
for shares of common stock of TPI.

         C. The Company and TPI desire to make certain representations and
warranties and other agreements in connection with the Merger.

         D. The parties intend, by executing this Agreement, to adopt a plan of
reorganization within the meaning of Section 368 of the Internal Revenue Code of
1986, as amended (the "Code").

         NOW, THEREFORE, in consideration of the covenants, promises and
representations and warranties set forth herein, and for other good and valuable
consideration, intending to be legally bound hereby, the parties agree as
follows:

                             ARTICLE 1 - THE MERGER

         1.1 THE MERGER.
             -----------

         At the Effective Time (as defined in Section 1.2), and subject to and
upon the terms and conditions of this Agreement and the applicable provisions of
the Delaware General Corporation Law ("Delaware Law") and the Nevada General
Corporation Law ("Nevada Law"), the Company shall be merged with and into TPI,
the separate corporate existence of the Company shall cease and TPI shall
continue as the surviving corporation. TPI, as the surviving corporation with
the operating business of the Company after the Merger is hereinafter sometimes
referred to as the "Surviving Corporation."

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         1.2 CLOSING DATE; EFFECTIVE TIME.
             -----------------------------

         Unless this Agreement is earlier terminated pursuant to Section 7.1,
the closing of the Merger (the "Closing") will take place as promptly as
practicable, but no later than five (5) business days, following satisfaction or
waiver of the conditions set forth in Article 6, which shall be at the offices
of Snow Becker Krauss P.C., 605 Third Avenue, New York, New York 10158-0125,
unless another place or time is agreed to by TPI and the Company. The date upon
which the Closing actually occurs is herein referred to as the "Closing Date".

         As promptly as practicable following the Closing Date, the parties
hereto shall cause the Merger to be consummated by filing the Certificate of
Merger (or like instrument) with the Secretary of State of the State of Delaware
(the "Certificate of Merger"), in accordance with the relevant provisions of
applicable law and such other certificates of merger or other documents as shall
be necessary to file in the State of Nevada by the Company (the time of
acceptance by the Secretary of State of the State of Delaware of such filing
being referred to herein as the "Effective Time").

         1.3 EFFECT OF THE MERGER
             --------------------

         At the Effective Time, the effect of the Merger shall be as provided in
the applicable provisions of Delaware Law and Nevada Law. Without limiting the
generality of the foregoing, and subject thereto, at the Effective Time all the
property, rights, privileges, powers and franchises of the Company and TPI shall
vest in the Surviving Corporation, and all debts, liabilities and duties of the
Company and TPI shall become the debts, liabilities and duties of the Surviving
Corporation.

         1.4 CERTIFICATE OF INCORPORATION; BYLAWS.
             ------------------------------------

         (a) The Certificate of Incorporation of TPI, as in effect immediately
prior to the Effective Time, shall be the Certificate of Incorporation of the
Surviving Corporation until thereafter amended as provided by law and such
Certificate of Incorporation.

         (b) The By-laws of TPI, as in effect immediately prior to the Effective
Time, shall be the Bylaws of the Surviving Corporation until thereafter amended
as provided by law and such By-laws.

         1.5 DIRECTORS AND OFFICERS: SURVIVING CORPORATION. The initial
directors of the Surviving Corporation will be Jeffrey Dickson (Chairman), Eric
Seidel, Chris Korge, Nick Trovich and an

                                        2

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appointee of Thompson Kernaghan, each to hold office until replaced or otherwise
in accordance with the Certificate of Incorporation and Bylaws of the Surviving
Corporation. The officers of the Company immediately prior to the Effective Time
shall be the officers of the Surviving Corporation, each to hold office until
replaced or otherwise in accordance with the Certificate of Incorporation and
Bylaws of the Surviving Corporation. At the Closing, each of the initial
directors (listed above) of the Surviving Corporation shall receive, pursuant to
the terms of a written option agreement, options to purchase 2,000 shares of
TPI's Common Stock at $2.00 per share.

         1.6 CONVERSION OF SHARES.
             ---------------------

         At the Effective Time, by virtue of the Merger, or otherwise at such
time and subject to such conditions as are set forth herein, and without any
action on the part of TPI, the Company or any holder of any Company Securities:

        (a) All of the shares of common stock of the Company  (including
options to purchase Common Stock, which, for such purposes, shall be treated
on an as exercised basis), after recapitalization as set forth in Section
2.3, will be exchanged for an aggregate of 5,980,000 shares of TPI's Common
Stock,  $.001 par value.  The common share exchange ratio shall be one (1)
shares of the Company's common stock  (including  options to purchase common
stock) for one (1) share of TPI Common Stock.

         1.7 DISSENTING SHARES.
             ------------------

         (a) Notwithstanding any provision of this Agreement to the contrary,
any shares of Company Securities held by a holder who has demanded and perfected
appraisal or dissenters' rights for such shares in accordance with Delaware Law
and who, as of the Effective Time, has not effectively withdrawn or lost such
appraisal or dissenters' rights ("Dissenting Shares"), shall not be exchanged
for TPI Securities pursuant to Section 1.6, but the holder thereof shall only be
entitled to such rights as are granted by Delaware Law.

         (b) Notwithstanding the provisions of subsection 1.7(a), if any holder
of shares of Company Securities who demands appraisal of such shares under
Delaware Law shall effectively withdraw or lose (through failure to perfect or
otherwise) the right to appraisal, then, as of the later of the Effective Time
and the occurrence of such event, such holder's shares shall automatically be,
pursuant to the Merger, exchanged for TPI Securities and cash in lieu of
fractional shares as provided in Section 1.6, without interest thereon, upon
surrender of the certificate representing such shares pursuant to Section 1.8.

         (c) The Company shall give TPI (i) prompt notice of any written demands
for appraisal of any shares of Company Common Stock, withdrawals of such
demands, and any other instruments

                                        3

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 served  pursuant to  Delaware  Law and  received  by the Company in  connection
 therewith,  and (ii) the  opportunity to participate  in all  negotiations  and
 proceedings with respect to demands for appraisal under Delaware Law.

         1.8 SURRENDER OF CERTIFICATES.
             --------------------------

         (a) EXCHANGE AGENT. Prior to the Effective Time, TPI shall designate a
bank or trust company reasonably acceptable to the Company to act as exchange
agent (the "Exchange Agent") in the Merger. TPI shall pay all charges and
expenses of Exchange Agent. The Exchange Agent will be entrusted with exchanging
the Company Common Stock with the TPI Common Stock, as detailed below.

         (b) TPI TO PROVIDE TPI SECURITIES. As of the Effective Time, TPI shall
deposit into an escrow account with the Exchange Agent for the benefit of the
Company's shareholders the aggregate number of shares of Common Stock issuable
pursuant to Section 1.6 in exchange for the outstanding shares of Company Common
Stock.

         (c) EXCHANGE PROCEDURES. Promptly after the Effective Time,
certificates representing the Company Common Stock (the "Certificates" or,
individually, "Certificate") will be surrendered to the Exchange Agent. Upon
surrender of a Certificate to the Exchange Agent or to such other agent or
agents as may be appointed by TPI, the holder of such Certificate shall be
entitled to certificates representing the number of whole shares of Common Stock
and the Certificate so surrendered shall forthwith be owned in the name of TPI.
Until so surrendered, each outstanding Certificate that, prior to the Effective
Time, represented shares of Company Common Stock will be deemed from and after
the Effective Time, for all corporate purposes, to represent solely ownership of
the number of full shares of TPI Securities into which such Company Stock shall
have been so exchanged.

         (d) NO LIABILITY. Notwithstanding anything to the contrary in this
Section 1.8, none of the Exchange Agent, the Surviving Corporation or any party
hereto shall be liable to a holder of TPI Securities or Company Securities for
any amount properly paid to a public official pursuant to any applicable
abandoned property, escheat or similar law.

         1.9 NO FURTHER OWNERSHIP RIGHTS IN COMPANY COMMON STOCK.
             ----------------------------------------------------

         All shares of Common Stock issued pursuant to the Merger in exchange
for shares of Company Common Stock in accordance with the terms hereof shall be
deemed to have been issued in full satisfaction of all rights pertaining to such
shares of Company Common Stock.

                                        4

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         1.10 LOST, STOLEN OR DESTROYED CERTIFICATES.
              ---------------------------------------

         In the event any certificates evidencing shares of Company Common Stock
shall have been lost, stolen or destroyed, the Company shall issue in exchange
for such lost, stolen or destroyed certificates, upon receiving notice from the
holder thereof at least five (5) days before the Effective Time and upon the
making of an affidavit in such form as is acceptable to the Company and the
Exchange Agent of that fact by such holder, new shares of Company Common Stock;
provided, however, that Company, as a condition precedent to the issuance
thereof, shall require the owner of such lost, stolen or destroyed certificates
to deliver a bond in such sum as it may reasonably direct as indemnity against
any claim that may be made with respect to the certificates alleged to have been
lost, stolen or destroyed. Subsequent to the issuance of new shares of Company
Common Stock, such shares shall be surrendered to the Exchange Agent in
accordance with Section 1.8.

         1.11 TAX AND ACCOUNTING CONSEQUENCES.
              --------------------------------

         It is intended by the parties hereto that the Merger shall constitute a
tax-free reorganization within the meaning of Section 368(a)(1)(B) the Code.

         1.12 TAKING OF NECESSARY ACTION; FURTHER ACTION.
              -------------------------------------------

         If, at any time after the Effective Time, any such further action is
necessary or desirable to carry out the purposes of this Agreement and to vest
the Surviving Corporation with full right, title and possession to all assets,
property, rights, privileges, powers and franchises of the Company and TPI, the
officers and directors of the Company and TPI are fully authorized in the name
of their respective corporations or otherwise to take, and will take, all such
lawful and necessary action.

            ARTICLE 2 - REPRESENTATIONS AND WARRANTIES OF THE COMPANY
                              AND THE SHAREHOLDERS

         The Company hereby represents and warrants, jointly and severally with
the Shareholders, to TPI, as follows:

         2.1 ORGANIZATION, STANDING AND POWER.
             ---------------------------------

         The Company is a corporation duly organized, validly existing and in
good standing under the laws of the State of Delaware. The Company has the
corporate power to own its properties and to carry on its business as now being
conducted. The Company has made available true and correct copy of its Articles
of Incorporation and Bylaws, each as amended to date, to TPI.

                                        5

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         2.2 AUTHORITY.
             ----------

         The Company has all requisite corporate power and authority to enter
into this Agreement and to consummate the transactions contemplated hereby. The
execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby have been duly authorized by all necessary
corporate action on the part of the Company, subject only to the approval of the
Merger and this Agreement by the Company's shareholders. The Company's Board of
Directors has unanimously approved the Merger and this Agreement. This Agreement
has been duly executed and delivered by the Company and constitutes the valid
and binding obligation of the Company, enforceable in accordance with its terms
except (a) as limited by applicable bankruptcy, insolvency, reorganization,
moratorium and other laws of general application affecting enforcement of
creditors' rights generally, and (b) as limited by laws relating to the
availability of specific performance, injunctive relief or other equitable
remedies.

         2.3 COMPANY CAPITAL STRUCTURE.
             --------------------------

         The authorized securities of the Company consists of 10,000,000 shares
of Company Common Stock, $0.0001 par value and no shares of Preferred Stock. As
of February 7, 2000, 9,750,000 shares of Company Common Stock have been issued
and are outstanding. No shares of Company Common Stock are subject to
outstanding convertible debt securities. The Company will recapitalize its
common stock to convert it outstanding shares of Common Stock into 5,980,000
shares of Common Stock prior to the Effective Date. All outstanding shares of
Company Common Stock are duly authorized, validly issued, fully paid and
non-assessable and are not subject to preemptive rights created by statute, the
Articles of Incorporation or By-laws of the Company or any agreement to which
the Company is a party or by which it is bound. Other than as set forth on
SCHEDULE 2.3 hereto, there are no options, warrants, calls, rights, commitments
or agreements of any character to which the Company is a party or by which it is
bound, obligating the Company to issue, deliver, sell, repurchase or redeem, or
cause to be issued, delivered, sold, repurchased or redeemed, any shares of the
capital stock of the Company or obligating the Company to grant, extend or enter
into any such option, warrant, call, right, commitment or agreement.

         2.4 SUBSIDIARIES.
             -------------

         Except as set forth on SCHEDULE 2.4 hereto, the Company does not have
and has never had any subsidiaries or affiliated companies and does not
otherwise own and has never otherwise owned any shares of capital stock or any
interest in, or control, directly or indirectly, any other corporation,
partnership, association, joint venture or other business entity.

                                        6

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         2.5 COMPANY FINANCIAL STATEMENTS.
             -----------------------------

         As soon as practicable following the date of this Agreement, the
Company shall cause to be delivered to TPI the Company's audited balance sheet
as of December 31, 1999, and the related unaudited statements of operations and
cash flows for January and February 2000 (collectively, the "Company
Financials"). At such time as the Company Financials are delivered, the Company
will represent and warrant to TPI that the Company Financials are correct in all
material respects and have been prepared in accordance with GAAP applied on a
basis consistent throughout the periods indicated and consistent with each
other. The Company Financials will present fairly the financial condition and
operating results of the Company as of the date and during the period indicated
therein.

         2.6 TAXES.
             ------

         All federal, state and other returns and reports required to be filed
by the Company have been duly filed by the Company and except as set forth on
SCHEDULE 2.6 hereto, all material taxes and other assessments and levies
(including all interest and penalties) including, without limitation, income,
franchise, real estate, sales, gross receipts, use and services taxes, and
employment and employee withholding taxes, owed by the Company have been paid in
full by the Company unless being contested in good faith. Except as set forth on
SCHEDULE 2.6, all such taxes and other assessments and levies which the Company
is required by law to have withheld, collected or deposited have been duly
withheld and collected and deposited with the proper governmental authorities or
segregated and set aside for such payment, and if so segregated and set aside,
shall be so paid by the Company as required by law.

         2.7 LITIGATION.
             -----------

         Except as set forth on in SCHEDULE 2.7 hereto, there is no material
action, suit or proceeding of any nature pending or to the best of the Company's
knowledge threatened against the Company, its properties or any of its officers
or directors, in their respective capacities as such.

         2.8 NO CONFLICT; REQUIRED FILINGS AND CONSENTS.
             -------------------------------------------

         (a) Except as set forth on SCHEDULE 2.8 hereto, the execution and
delivery of this Agreement by the Company does not, and the performance of this
Agreement by the Company and the consummation by the Company of the transactions
contemplated hereby will not, (i) conflict with or violate the Articles of
Incorporation or By-laws of the Company, (ii) conflict with or violate any
federal, foreign, state or provincial law, rule, regulation, order, judgment or
decree (collectively, "Laws") applicable to the Company or any of its
subsidiaries or by which its or any of their respective properties are bound or
affected, or (iii) result in any breach of or constitute a default (or an event
that with notice or lapse of time or both would become a default) under, or
impair the Company's or any of its subsidiaries' rights or alter the rights or
obligations of any third party under,

                                        7

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or give to others any rights of termination, amendment, acceleration or
cancellation of, or result in the creation of a lien on any of the properties or
assets of the Company or any of its subsidiaries pursuant to, any note, bond,
mortgage, indenture, contract, agreement, lease, license, permit, franchise or
other instrument or obligation to which the Company or any of its subsidiaries
is a party or by which the Company or any of its subsidiaries or its or any of
their respective properties are bound or affected, except in the case of clauses
(ii) and (iii) for any such conflicts, violations, breaches, defaults or other
occurrences that do not have a Material Adverse Effect, as defined in Section
6.2(a) below.

         (b) The execution and delivery of this Agreement by the Company does
not, and the performance of this Agreement by the Company will not, require any
consent, approval, authorization or permit of, or filing with notification to,
any domestic or foreign governmental or regulatory authority except (i) for the
applicable requirements, if any, of the Securities Act of 1933, as amended (the
"Act"), the Securities Exchange Act of 1934, as amended (the "Exchange Act"),
state securities laws ("Blue Sky Laws"), the pre-merger notification
requirements of the Hart-Scott Rodino Antitrust Improvements Act of 1976, as
amended (the "HSR Act"), the legal requirements of any foreign jurisdiction
requiring notification in connection with the Merger and the transactions
contemplated hereby and the filing and recordation of appropriate merger or
other documents as required by Delaware Law and Nevada Law, and (ii) where the
failure to obtain such consents, approvals, authorizations or permits, or to
make such filings or notifications, either (A) would not prevent or materially
delay consummation of the Merger or otherwise prevent or materially delay the
Company from performing its obligations under this Agreement, or (B) do not have
a Material Adverse Effect.

         2.9 YEAR 2000 COMPLIANCE.
             ---------------------

         The Company has taken reasonable steps to ensure that the Company's
primary computing system and software (i) will operate without substantial
errors relating to date data, including any error relating to, or the product
of, date data which represents or references different centuries or more than
one century; (ii) will be capable of correctly processing, providing, receiving,
and displaying accurate date data, and exchanging accurate date data with all
products with which it is currently exchanging date data; (iii) will not
abnormally end, corrupt data, or produce incorrect or invalid results as a
result of date data, including date data which represents or references
different centuries or more than one century or as a result of multi-century
date calculations, sequencing, or comparisons; (iv) will be capable of date data
century recognition and calculations which accommodate same century and
multi-century formulas and date values and date data interface values that
reflect the century; (v) will correctly recognize leap years, including the year
2000, and will handle all dates in leap years appropriately; and (vi) will
properly interpret, as to century, all date data currently stored or accessible
to it.

                                        8

<PAGE>

         2.10 STATUS OF MATERIAL CONTRACTS
              ----------------------------

         The Company is not in default of, nor is in anticipatory breach of any
of its material contracts with third parties, nor does the Company have any
reason to believe that it will be so in the future.

         2.11 OWNERSHIP OF PROPERTY, INDEMNIFICATION
              --------------------------------------

         The Company owns, and at the Closing shall have, good, valid and
marketable title or valid license to any property, including intellectual
property, that it uses in the operation of its business, free any clear of all
mortgages, liens, pledges, charges or encumbrances, except (i) the lien of
current taxes no yet due and payable and (ii) such imperfections of title, liens
and easements as do not and would not reasonably be expected to have a Material
Adverse Effect on the Company. With regard to any licenses to use property,
including intellectual property, the Company has valid and enforceable license
agreements with the third party owners of the property, and none of such
intellectual property infringes upon the proprietary rights of any third party.
In this regard, the Company agrees to indemnify and hold harmless TPI and the
Surviving Corporation from any liabilities, damages or expenses (including
attorneys' fees) that it might incur by reason of a breach of this warranty.

         2.12 ERISA PLANS
              -----------

         The Company does not have any plans that would be covered by the
federal ERISA law.

         2.13 RESTRICTIONS ON BUSINESS ACTIVITIES
              -----------------------------------

         To the Company's knowledge, there is no agreement, judgment,
injunction, order or decree binding upon the Company which has or could
reasonably be expected to have the effect of prohibiting or materially impairing
any current or future business practice of the Company to compete with any other
person or the conduct of business by the Company as currently conducted or as
proposed to be conducted by the Company.

         2.14 BROKERS' AND FINDER' FEES.
              --------------------------

         The Company has not incurred, nor will the Company incur, directly or
indirectly, any liability for brokerage or finders' fees or agent's commissions
or any similar charges in connection with this Agreement or any transaction
contemplated hereby.

                                                9

<PAGE>

         2.15 GOVERNMENTAL AUTHORIZATION; COMPLIANCE WITH LAWS
              ------------------------------------------------

         The Company has obtained each federal, state, county, local or foreign
governmental consent, license, permit, grant, or other authorization of any
applicable governmental entity or other regulatory agency, (i) pursuant to which
the Company currently operates or holds any interest in any of its properties or
(ii) that is required for the operation of the Company's business or the holding
of any such interest ((i) and (ii) herein collectively referred to as the
"Company Authorizations"), and all of such Company Authorizations are in full
force and effect, except where the failure to obtain or have any such Company
Authorizations could not reasonably be expected to have a Material Adverse
Effect on the Company. The Company is in material compliance with all applicable
laws, statutes, orders, rules and regulations of any applicable governmental
entity or other regulatory agency relating to the Company except where the
failure to do so would not have a Material Adverse Effect and the Company has
not received notice of any violations of any of the above.

                         ARTICLE 3 - REPRESENTATIONS AND
                                WARRANTIES OF TPI

         TPI hereby represents and warrants to the Company and the Shareholders
as follows:

         3.1 ORGANIZATION, STANDING AND POWER.
             ---------------------------------

         TPI is a corporation duly organized, validly existing and in good
standing under the laws of the State of Nevada. TPI has the corporate power to
own its properties and to carry on its business as now being conducted. TPI has
made available true and correct copies of its Certificates of Incorporation and
By-Laws, each as amended, to the Company.

         3.2 AUTHORITY.
             ----------

         Subject only to the requisite stockholders' approval of (a) the
amendment of the Certificate of Incorporation changing the name of TPI, (b) the
election of directors and officers of TPI and Surviving Corporation as outlined
in Section 1.5 hereof, immediately prior to the Effective Time, (c) the Merger
and (d) this Agreement, TPI has all requisite corporate power and authority to
enter into this Agreement and to consummate the transactions contemplated
hereby. The execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby have been duly authorized by all necessary
corporate action on the part of TPI, subject only to the approval of the Merger
and this Agreement by TPI's stockholders. TPI's Board of Directors has
unanimously approved the Merger and this Agreement. This Agreement has been duly
executed and delivered by TPI and constitutes the valid and binding obligations
of TPI, enforceable in accordance with its terms except (a) as limited by
applicable bankruptcy, insolvency, reorganization, moratorium and other laws of
general application affecting enforcement of creditors' rights generally, and
(b) as limited by laws relating to the availability of specific performance,
injunctive relief or other equitable remedies.

                                       10

<PAGE>

         3.3 TPI CAPITAL STRUCTURE.
             ----------------------

         (a) The authorized stock of TPI consists of 50,000,000 shares of TPI
Common Stock, $.001 par value and 5,000,000, shares of Preferred Stock, $.001
par value. As of the date of this Agreement, approximately 4,241,470 shares of
TPI Common Stock and no shares of Preferred Stock are issued and outstanding.
All such shares of stock have been duly authorized and have been validly issued
and are fully paid and non-assessable. No shares of TPI Securities are subject
to outstanding convertible debt securities, other than debentures with a face
amount of $1,907,500 and 905,018 warrants. It is anticipated that, as a part of
the reorganization, these debentures and warrants will be converted into an
aggregate of 4,100,000 shares of TPI Common Stock. Other than as set forth in
this Section 3.3, there are no options, warrants, calls, rights, commitments or
agreements of any character to which TPI is a party or by which it is bound,
obligating TPI to issue, deliver, sell, repurchase or redeem, or cause to be
issued, delivered, sold, repurchased or redeemed, any shares of the capital
stock of TPI or obligating TPI to grant, extend or enter into any such option,
warrant, call, right, commitment or agreement.

         (b) The TPI Common Stock, when issued in accordance with the terms and
provisions of this Agreement, will be duly authorized, validly issued, fully
paid and non-assessable.

         3.4 SUBSIDIARIES.
             -------------

         Except as set forth on SCHEDULE 3.4 hereto, TPI does not have and has
never had any subsidiaries or affiliated companies and does not otherwise own
and has never otherwise owned any shares of capital stock or any interest in, or
control, directly or indirectly, any other corporation, partnership,
association, joint venture or other business entity.

         3.5 TAXES.
             ------

         All federal, state and other returns and reports required to be filed
by TPI have been duly filed by TPI and except as set forth on SCHEDULE 3.6
hereto, all material taxes and other assessments and levies (including all
interest and penalties) including, without limitation, income, franchise, real
estate, sales, gross receipts, use and services taxes, and employment and
employee withholding taxes, owed by TPI have been paid in full by TPI unless
being contested in good faith. Except as set forth on SCHEDULE 3.6, all such
taxes and other assessments and levies which TPI is required by law to have
withheld, collected or deposited have been duly withheld and collected and
deposited with the proper governmental authorities or segregated and set aside
for such payment, and if so segregated and set aside, shall be so paid by TPI as
required by law.

                                       11

<PAGE>

         3.6 LITIGATION.
             -----------

         There is no action, suit or proceeding of any nature pending or to the
best of TPI's knowledge threatened against TPI or any of its subsidiaries, their
respective properties or any of their respective officers or directors, in their
respective capacities as such.

         3.7 NO CONFLICT; REQUIRED FILINGS AND CONSENTS.
             -------------------------------------------

         (a) Except as set forth on SCHEDULE 3.8 hereto, the execution and
delivery of this Agreement by TPI and Merger Sub does not, and the performance
of this Agreement by TPI and the consummation by TPI of the transactions
contemplated hereby will not, (i) conflict with or violate the Certificate of
Incorporation or By-laws of TPI, (ii) conflict with or violate any Laws
applicable to TPI or any of its subsidiaries or by which they or any of their
respective properties are bound or affected, or (iii) result in any breach of or
constitute a default (or an event that with notice or lapse of time or both
would become a default) under, or impair TPI's or any of its subsidiaries'
rights or alter the rights or obligations of any third party under, or give to
others any rights of termination, amendment, acceleration or cancellation of, or
result in the creation of a lien on any of the properties or assets of TPI or
any of its subsidiaries pursuant to, any note, bond, mortgage, indenture,
contract, agreement, lease, license, permit, franchise or other instrument or
obligation to which TPI or any of its subsidiaries is a party or by which TPI or
any of its subsidiaries or its or any of their respective properties are bound
or affected, except in the case of clauses (ii) and (iii) for any such
conflicts, violations, breaches, defaults or other occurrences that do not have
a Material Adverse Effect, as defined in Section 6.2 below.

         (b) The execution and delivery of this Agreement and the consummation
of the Merger contemplated thereby, by TPI and Merger Sub do not, and the
performance of this Agreement by TPI will not, require any consent, approval,
authorization or permit of, or filing with notification to, any domestic or
foreign governmental or regulatory authority except (i) for the applicable
requirements, if any, of the Securities Act, the Exchange Act, Blue Sky Laws,
the pre-merger notification requirements of the HSR Act, the legal requirements
of any foreign jurisdiction requiring notification in connection with the Merger
and the transactions contemplated hereby and the filing and recordation of
appropriate merger or other documents as required by the laws of the states of
Delaware and Nevada, and (ii) where the failure to obtain such consents,
approvals, authorizations or permits, or to make such filings or notifications,
either (A) would not prevent or materially delay consummation of the Merger or
otherwise prevent or materially delay TPI from performing its obligations under
this Agreement, or (B) do not have a Material Adverse Effect (as defined below).

                                       12

<PAGE>

         3.8 YEAR 2000 COMPLIANCE.
             ---------------------

         TPI has taken reasonable steps to ensure that TPI's primary computing
system and software (i) will operate without substantial errors relating to date
data, including any error relating to, or the product of, date data which
represents or references different centuries or more than one century; (ii) will
be capable of correctly processing, providing, receiving, and displaying
accurate date data, and exchanging accurate date data with all products with
which it is currently exchanging date data; (iii) will not abnormally end,
corrupt data, or produce incorrect or invalid results as a result of date data,
including date data which represents or references different centuries or more
than one century or as a result of multi-century date calculations, sequencing,
or comparisons; (iv) will be capable of date data century recognition and
calculations which accommodate same century and multi-century formulas and date
values and date data interface values that reflect the century; (v) will
correctly recognize leap years, including the year 2000, and will handle all
dates in leap years appropriately; and (vi) will properly interpret, as to
century, all date data currently stored or accessible to it.

         3.9 STATUS OF MATERIAL CONTRACTS
             ----------------------------

         TPI is not in default of, nor is in anticipatory breach of any of its
material contracts with third parties, not has any reason to believe that it
will be so in the future.

         3.10 OWNERSHIP OF PROPERTY, INDEMNIFICATION
              --------------------------------------

         TPI owns, and at the Closing shall have, good, valid and marketable
title, or valid license, to any property, including intellectual property, that
it uses in the operation of its business, free any clear of all mortgages,
liens, pledges, charges or encumbrances, except (i) the lien of current taxes no
yet due and payable and (ii) such imperfections of title, liens and easements as
do not and would not reasonably be expected to have a Material Adverse Effect on
TPI. With regard to any licenses to use property, including intellectual
property, TPI has valid and enforceable license agreements with the third party
owners of the property and none of such intellectual property infringes upon the
proprietary rights of any third party. In this regard, TPI agrees to indemnify
and hold harmless the Company, the Shareholders and the Surviving Corporation
from any liabilities, damages or expenses (including attorney's fees) that it
might incur by reason of a breach of this warranty.

         3.11 ERISA PLANS
              -----------

         TPI does not have any plans that would be covered by the federal ERISA
law.

         3.12 RESTRICTIONS ON BUSINESS ACTIVITIES
              -----------------------------------

         To TPI's knowledge, there is no agreement, judgment, injunction, order
or decree binding upon TPI which has or could reasonably be expected to have the
effect of prohibiting or materially

                                       13

<PAGE>

impairing  any current or future  business  practice of TPI to compete  with any
other  person or the  conduct of business by TPI as  currently  conducted  or as
proposed to be conducted by TPI.

         3.13 BROKERS' AND FINDER' FEES.
              --------------------------

         TPI has not incurred, nor will TPI incur, directly or indirectly, any
liability for brokerage or finders' fees or agent's commissions or any similar
charges in connection with this Agreement or any transaction contemplated
hereby.

         3.14 GOVERNMENTAL AUTHORIZATION; COMPLIANCE WITH LAWS
              ------------------------------------------------

         TPI has obtained each federal, state, county, local or foreign
governmental consent, license, permit, grant, or other authorization of any
applicable governmental entity or other regulatory agency, (i) pursuant to which
TPI currently operates or holds any interest in any of its properties or (ii)
that is required for the operation of TPI's business or the holding of any such
interest ((i) and (ii) herein collectively referred to as the "TPI
Authorizations"), and all of such TPI Authorizations are in full force and
effect, except where the failure to obtain or have any such TPI Authorizations
could not reasonably be expected to have a Material Adverse Effect on TPI. TPI
is in material compliance with all applicable laws, statutes, orders, rules and
regulations of any applicable governmental entity or other regulatory agency
relating to TPI except where the failure to do so would not have a Material
Adverse Effect and TPI has not received notice of any violations of any of the
above.

            ARTICLE 4 - CONDUCT OF BUSINESS PENDING THE APPROVAL DATE

         4.1 CONDUCT OF BUSINESS BY THE COMPANY AND TPI PENDING THE APPROVAL
             DATE.
             ----------------------------------------------------------------

         Except as otherwise contemplated by this Agreement, after the date
hereof and prior to the Approval Date or earlier termination of this Agreement,
unless the parties shall otherwise agree in writing, the Company and TPI shall
each:

         (a) conduct its business in the ordinary and usual course of business
and consistent with past practice;

         (b) not (i) amend or propose to amend its Certificate of Incorporation
or By-laws, (ii) split, combine or reclassify its outstanding capital stock or
declare, set aside or pay any dividend or distribution payable in cash, stock,
property or otherwise, (iii) spin-off any assets or businesses, (iv) engage in
any transaction for the purpose of effecting a recapitalization of any party or
subsidiary, or (v) engage in any transaction or series of related transactions
which has a similar effect to any of the foregoing;

                                       14

<PAGE>

         (c) not issue, sell, pledge or dispose of, or agree to issue, sell,
pledge or dispose of, any additional shares of, or any options, warrants or
rights of any kind to acquire any shares of capital stock of any class or any
debt or equity securities convertible into or exchangeable for such capital
stock or amend or modify the terms and conditions of any of the foregoing;

         (d) not (i) incur or become contingently liable with respect to any
indebtedness for borrowed money, except in the ordinary course of business, (ii)
redeem, purchase, acquire or offer to purchase or acquire any shares of its
capital stock, other than as required by the governing terms of such securities,
(iii) take or fail to take any action which action or failure to take action
would cause the Company or its shareholders (except to the extent that any
shareholders receive cash in lieu of fractional shares) to recognize gain or
loss for federal income tax purposes as a result of the consummation of the
Merger, (iv) make any acquisition of any assets (except in the ordinary course
of business) or businesses, (v) sell any assets (except in the ordinary course
of business) or businesses, or (vi) enter into any contract, agreement,
commitment or arrangement with respect to any of the foregoing;

         (e) use all reasonable efforts to preserve intact its business
organization and goodwill, keep available the services of its present officers
and key employees, and preserve the goodwill and business relationships with
suppliers, distributors, customers, and others having business relationships
with the Company or TPI and not engage in any action, directly or indirectly,
with the intent to impact adversely the transactions contemplated by this
Agreement;

         (f) not enter into or amend any employment, severance, special pay
arrangement with respect to termination of employment or other similar
arrangements or agreements with any directors or officers;

         (g) not increase the rate of remuneration payable to any of its
directors or officers, except in the customary and usual course of business and
consistent with past practices, or agree to do so;

         (h) not adopt, enter into or amend any bonus, profit sharing,
compensation, stock option, pension, retirement, deferred compensation, health
care, employment or other employee benefit plan, agreement, trust, fund or
arrangement for the benefit or welfare of any employee or retiree, except in the
ordinary and usual course of business, consistent with past practices or as
required to comply with changes in applicable law;

         (i) file with the SEC all forms, statements, reports and documents
(including all exhibits, amendments and supplements thereto) required to be
filed by it pursuant to the Exchange Act; and

                                       15

<PAGE>

         (j) maintain with financially responsible insurance companies insurance
on its tangible assets and its businesses in such amounts and against such risks
and losses as are consistent with past practice.

         4.2 CERTAIN ACTIONS.
             ----------------

         Except with respect to this Agreement and the transactions contemplated
hereby and the discussions with an automobile glass repair network vendor, the
Company and TPI shall not, directly or indirectly, solicit any Acquisition
Proposal. "ACQUISITION PROPOSAL" shall mean any tender offer or exchange offer
or any proposal for a merger, acquisition of all of the stock or assets of, or
other business combination involving the acquisition of, such party or any of
its subsidiaries, or the acquisition of a substantial equity interest in, or a
substantial portion of the assets of, such party or any of its subsidiaries. The
Company and TPI shall not, directly or indirectly, furnish to any third party
any non-public information that it is not legally obligated to furnish,
negotiate with respect to, or enter into any agreement with respect to, any
Acquisition Proposal, but may communicate information about such an Acquisition
Proposal to its stockholders if and to the extent that it is required to do so
in order to comply with its legal obligations. The Company and TPI, as
applicable, shall promptly advise the other parties hereto following the receipt
of any Acquisition Proposal and the details thereof, and advise such other
parties hereto of any developments with respect to such Acquisition Proposal
promptly upon the occurrence thereof. The Company and TPI shall (a) immediately
cease and cause to be terminated any existing activities, discussions or
negotiations with any person or entity conducted heretofore with respect to any
of the foregoing, and (b) direct and use its reasonable efforts to cause all of
its investment bankers, financial advisors, attorneys, accountants, consultants
or other representatives not to engage in any of the foregoing.

                                ARTICLE 5 - ADDITIONAL AGREEMENTS

         5.1 STOCKHOLDERS' MEETINGS.
             -----------------------

         Subject to applicable law, each of the Company and TPI, through its
respective Boards of Directors, shall, in accordance with applicable law and
subject to the fiduciary duties of their respective Boards of Directors under
applicable law as determined by such directors in good faith after consultation
with and based upon the advice of outside counsel obtain the consents and
approvals of their respective Boards of Directors and/or shareholders as
required by law to effect this Merger.

         5.2 ACCESS TO TPI/COMPANY INFORMATION.
             ----------------------------------

         Subject to any applicable contractual confidentiality obligations
(which the Company and TPI shall use their best efforts to cause to be waived),
Company and TPI shall afford each other and their

                                       16

<PAGE>

respective accountants, counsel and other representatives, reasonable access
during normal business hours during the period prior to the Effective Time to
(a) all of their respective properties, books, contracts, agreements and
records, and (b) all other information concerning the business, properties and
personnel (subject to restrictions imposed by applicable law) of Company and
TPI, as applicable, as may be reasonably requested.

         5.3 PUBLIC DISCLOSURE
             -----------------

         No disclosure (whether or not in response to an inquiry) of the
existence or nature of this Agreement shall be made by any party hereto unless
approved in writing by duly authorized officers of both TPI and the Company, or
of any third parties identified in such disclosure, prior to release, provided
that such approval shall not be unreasonably withheld and subject in any event
to Company's and TPI's obligations to comply with applicable securities laws and
NASDAQ or such other stock market regulations as applicable, in order to satisfy
the listing and disclosure requirements of all such exchanges or markets where
TPI's securities are listed.

         5.4 REASONABLE EFFORTS/CONSENTS.
             ----------------------------

         Subject to the terms and conditions provided in this Agreement, each of
the parties hereto shall use its reasonable efforts to take promptly, or cause
to be taken, all actions, and to do promptly, or cause to be done, all things
necessary, proper or advisable under applicable laws and regulations to
consummate and make effective the transactions contemplated hereby to obtain all
necessary waivers, consents and approvals and to effect all necessary
registrations and filings and to remove any injunctions or other impediments or
delays, legal or otherwise, in order to consummate and make effective the
transactions contemplated by this Agreement for the purpose of securing to the
parties hereto the benefits contemplated by this Agreement.

         5.5 NOTIFICATION OF CERTAIN MATTERS.
             --------------------------------

         The Company shall give prompt notice to TPI, and TPI shall give prompt
notice to the Company, of (a) the occurrence or non-occurrence of any event, the
occurrence or non-occurrence of which is likely to cause any representation or
warranty of the Company or TPI respectively, contained in this Agreement to be
untrue or inaccurate in any material respect at or prior to the Effective Time
except as contemplated by this Agreement (including the schedules of the Company
attached hereto), and (b) any failure of the Company or TPI, as the case may be,
to comply with or satisfy any covenant, condition or agreement to be complied
with or satisfied by it hereunder; provided, however, that the delivery of any
notice pursuant to this Section 5.5 shall not limit or otherwise affect any
remedies available to the party receiving such notice.
                                       17

<PAGE>

         5.6 AFFILIATE AGREEMENT.
             --------------------

         SCHEDULE 5.6 hereto sets forth those persons who, in the Company's
reasonable judgment, are "affiliates" of the Company within the meaning of Rule
145 (each such person an "Affiliate") promulgated under the Act ("Rule 145").
The Company shall provide TPI such information and documents as TPI shall
reasonably request for purposes of reviewing such list. The Company has
delivered or shall cause to be delivered to TPI prior to the Approval Date from
the Company's Affiliates an executed affiliate agreement substantially in the
form attached hereto as EXHIBIT 5.6 (the "Affiliate Agreement"). TPI shall be
entitled to place appropriate legends on the certificates evidencing any TPI
Common Stock to be received by Affiliates of the Company pursuant to the terms
of this Agreement, and to issue appropriate stop transfer instructions to the
transfer agent for TPI Common Stock and TPI Securities consistent with the terms
of such Affiliate Agreement.

         5.7 BLUE SKY LAWS.
             -------------

         TPI shall take such steps as may be necessary to comply with the
securities and Blue Sky Laws of all jurisdictions which are applicable to the
issuance of the TPI Securities pursuant hereto. The Company shall use its best
efforts to assist TPI as may be necessary to comply with the securities and Blue
Sky Laws of all jurisdictions which are applicable in connection with the
issuance of TPI Securities pursuant hereto.

         5.8 INDEMNIFICATION AND INSURANCE.
             ------------------------------

         (a) TPI and the Company agree that all rights to indemnification
existing in favor of the present or former directors, officers and employees of
the Company (as such) or any of its subsidiaries or present or former directors
of the Company or any of its subsidiaries serving or who served at the Company's
or any of its subsidiaries' request as a director, officer, employee or agent of
another corporation, partnership, joint venture, trust, employee benefit plan or
other enterprise, as provided in the Company's Articles of Incorporation or
By-laws, or the Certificate of Incorporation or By-laws (or similar governing
documents) of any of the Company's subsidiaries and any indemnification
agreements as in effect as of the date hereof with respect to matters occurring
at or prior to the Effective Time shall survive the Merger and shall continue in
full force and effect and without modification (other than modifications which
would enlarge the indemnification rights) for a period of not less than the
statute of limitations applicable to such matters, and the Surviving Corporation
shall comply fully with its obligations hereunder and thereunder.

         (b) The officers and directors of TPI and the Surviving Corporation
promptly after such person is elected as an officer or director shall amend the
TPI's liability insurance to include the officers and directors of TPI and
Surviving Corporation set forth on SCHEDULE 5.8 hereto.

                                       18

<PAGE>

         (c) In the event the Surviving Corporation or TPI or any of their
respective successors or assigns (i) consolidates with or merges into any other
entity and is not the continuing or surviving corporation or entity of such
consolidation or merger, or (ii) transfers all or substantially all of its
properties and assets to any person or entity, proper provisions shall be made
so that the successors and assigns of the Surviving Corporation or TPI, as
appropriate, assume the obligations set forth in this Section 5.8.

                      ARTICLE 6 - CONDITIONS TO THE MERGER

         6.1 CONDITIONS TO OBLIGATIONS OF EACH PARTY TO EFFECT THE MERGER.
             -------------------------------------------------------------

         The respective obligations of each party to this Agreement to effect
the Merger shall be subject to the satisfaction at or prior to the Effective
Time of the following conditions, any of which may be deferred, in writing by
both parties and/or waived:

         (a) NO INJUNCTIONS OR RESTRAINTS; ILLEGALITY. No temporary restraining
order, preliminary or permanent injunction or other order issued by any court of
competent jurisdiction or other legal or regulatory restraint or prohibition
preventing the consummation of the Merger shall be in effect;

         (b) REGULATORY APPROVALS AND THIRD PARTY CONSENTS. All governmental and
third party consents, orders and approvals legally required for the consummation
of the Merger and the transactions contemplated hereby; and

         (c) AUDITED FINANCIAL STATEMENTS. The parties shall have completed and
received audited financial statements of the other party for the period, for the
Company, ending December 31, 1999 and, for TPI the fiscal years ended July 31,
1998 and 1999.

         6.2 ADDITIONAL CONDITIONS TO THE OBLIGATIONS OF TPI.
             ------------------------------------------------

         The obligations of TPI to consummate the Merger and the transactions
contemplated by this Agreement shall be subject to the satisfaction at or prior
to the Effective Time of each of the following conditions, any of which may be
waived, in writing, exclusively by TPI:

         (a) REPRESENTATIONS AND WARRANTIES. The representations and warranties
of the Company contained in this Agreement shall be true and correct in all
material respects on and as of the date made and the Closing Date, except for
changes contemplated by this Agreement (including the schedules of the Company)
and except for those representations and warranties which address matters only
as of a particular date (which shall remain true and correct as of such date),
with the same force and effect as if made on and as of the Effective Time,
except, in all such cases, for such breaches, inaccuracies or omissions of such
representations and warranties which have neither had nor

                                       19

<PAGE>

reasonably would be expected to have a Material Adverse Effect on the Company or
TPI; and TPI shall have received a certificate to such effect signed on behalf
of the Company by the President of the Company. "MATERIAL ADVERSE EFFECT" on a
party shall mean an event, change or occurrence which, individually or together
with any other event, change or occurrence, has a material adverse impact on (i)
the financial position, business, or results of operations of such party and its
subsidiaries, taken as a whole, or (ii) the ability of such party to perform its
obligations under this Agreement or to consummate the Merger or the other
transactions contemplated by this Agreement, provided that "Material Adverse
Effect" shall not be deemed to include the impact of (1) changes in laws of
general applicability or interpretations thereof by courts or governmental
authorities, (2) changes in GAAP, (3) actions and omissions of a party (or any
of its subsidiaries) taken with the prior written consent of the other party in
contemplation of the transactions contemplated hereby, and (4) the direct
effects of compliance with this Agreement on the operating performance of the
parties, including expenses incurred by the parties in consummating the
transactions contemplated by this Agreement;

         (b) AGREEMENTS AND COVENANTS. The Company shall have performed or
complied in all material respects with all agreements and covenants required by
this Agreement to be performed or complied with by it on or prior to the
Effective Time, and TPI shall have received a certificate to such effect signed
by the President of the Company;

         (c) LEGAL OPINION. TPI shall have received a legal opinion from
Johnson, Blakely, Pope, Bokor, Ruppel & Burns P.A., legal counsel to the
Company, in substantially the form attached hereto as EXHIBIT 6.2(C);

         (d) MATERIAL ADVERSE CHANGE. Since December 30, 1999, no event shall
have occurred that would constitute a Material Adverse Effect to the Company;

         (e) DUE DILIGENCE. TPI shall have conducted its due diligence of
Company with results, in the sole discretion of the Board of Directors of TPI,
satisfactory to it;

         (f) ADDITIONAL CERTIFICATES. The Company shall have furnished to TPI
such additional certificates, opinions and other documents as TPI may have
reasonably requested as to any of the conditions set forth in this Section 6.2;

         (g) REVIEW OF FINANCIAL STATEMENTS. TPI and its accountants shall have
completed a review of the audited financial statements of the Company and
believe them to be, in the reasonable opinion of TPI's accountants, to have been
prepared in accordance with generally accepted accounting principles and
suitable or readily adaptable for incorporation in the registrations statements,
prospectuses and annual reports to be filed by TPI with the Securities and
Exchange Commission; and

                                       20

<PAGE>

         (h) COMPANY STOCKHOLDER APPROVAL. The Stockholders' approval of the
Company shall have been obtained.

         6.3 ADDITIONAL CONDITIONS TO OBLIGATIONS OF THE COMPANY AND THE
SHAREHOLDERS.

         The obligations of the Company to consummate the Merger and the
transactions contemplated by this Agreement shall be subject to the satisfaction
at or prior to the Closing, or such time as specified herein, of each of the
following conditions, any of which may be waived, in writing, exclusively by the
Company:

         (a) REPRESENTATIONS AND WARRANTIES. The representations and warranties
of contained in this Agreement shall be true and correct in all material
respects on and as of the date made and the Effective Time, except for changes
contemplated by this Agreement and except for those representations and
warranties which address matters only as of a particular date (which shall
remain true and correct as of such date), with the same force and effect as if
made on and as of the Effective Time, except, in all such cases, for such
breaches, inaccuracies or omissions of such representations and warranties which
have neither had nor reasonably would be expected to have a Material Adverse
Effect on TPI; and the Company shall have received a certificate to such effect
signed on behalf of TPI by the Chief Executive Officer or President of TPI;

         (b) AGREEMENTS AND COVENANTS. TPI shall have performed or complied in
all material respects with all agreements and covenants required by this
Agreement to be performed or complied with by them on or prior to the Effective
Time, and the Company shall have received a certificate to such effect signed by
the Chief Executive Officer or President of TPI;

         (c) LEGAL OPINION. The Company shall have received a legal opinion from
Snow Becker Krauss P.C., counsel to TPI and Merger Sub, in substantially the
form attached hereto as EXHIBIT 6.3(C);

         (d) MATERIAL ADVERSE CHANGE. Since December 31, 1999, no event shall
have occurred that would constitute a Material Adverse Effect to TPI;

         (e) SEC DOCUMENTS. TPI shall have filed with the SEC all documents
required to be filed under the Securities Exchange Act of 1934 in the
appropriate form and with the appropriate information as required under that Act
and such documents shall not have any omissions or misrepresentations of any
material fact contained therein.

         (f) DUE DILIGENCE. The Company shall have conducted its due diligence
of TPI and its subsidiaries with results, in the sole discretion of the Board of
Directors of the Company, satisfactory to it; and

                                       21

<PAGE>

         (g) ADDITIONAL CERTIFICATES. TPI shall have furnished to the Company
such additional certificates, opinions and other documents as the Company may
have reasonably requested as to any of the conditions set forth in this Section
6.3.

         (h) BANKRUPTCY PROCEEDINGS. All bankruptcy proceedings involving TPI
under the Bankruptcy and Insolvency Act of Canada shall have been completed,
including, without limitation, that the appeal period for the order approving
TPI's Proposal under the said act shall have expired with no appeal having been
filed, or any appeal therefrom shall have been dismissed and such dismissal
shall have become final, and all payments to creditors under the said Proposal
shall have been made in full as set forth in said Proposal. In addition, TPI
shall have furnished a copy of the court order and an opinion from its Canadian
counsel confirming the foregoing.

         6.4. CONDITIONS TO OBLIGATIONS OF EACH PARTY TO BE COMPLETED PRIOR TO
OR UPON THE APPROVAL DATE.

         (a) AFFILIATE AGREEMENTS. Each of the parties identified by the Company
as being one of its Affiliates shall have delivered an executed Affiliate
Agreement which shall be in full force and effect.

         (b) TPI SHAREHOLDER APPROVAL. TPI Stockholder Approval of the TPI's
Shareholders shall have been obtained.

         (c) WAIVER. Notwithstanding anything to the contrary herein, any party
may waive compliance of the other party to any condition contained in this
Section 6.4, if such waiver is made by a writing executed by the party and
delivered to the other parties hereto, provided, however, a single or partial
waiver of any condition will not be deemed a waiver of any other part of such
condition or any other condition.

                  ARTICLE 7 - TERMINATION, AMENDMENT AND WAIVER

         7.1 TERMINATION.
             ------------

        This  Agreement may be terminated  and the Merger  abandoned at any time
prior to the Approval Date:

         (a) by mutual consent of the Company and TPI;

         (b) by TPI or the Company if (i) the Effective Time has not occurred by
____________, 2000; (ii) there shall be a final nonappealable order of a federal
or state court in effect preventing consummation of the Merger; (iii) there
shall be any statute, rule, regulation or order enacted,

                                       22

<PAGE>

promulgated or issued or deemed applicable to the Merger by any governmental
entity that would make consummation of the Merger illegal; or (iv) if any of the
conditions precedent to Closing set forth in this Agreement have not been met
and have not been waived in writing by the party whose consent is required.

         (c) by TPI or the Company if there shall be any action taken, or any
statute, rule, regulation or order enacted, promulgated or issued or deemed
applicable to the Merger, by any governmental entity, which would: (i) prohibit
TPI's or the Company's ownership or operation of any material portion of the
business of the Company or TPI; or (ii) compel TPI or the Company to dispose of
or hold separate, as a result of the Merger, any material portion of the
business or assets of the Company or TPI;

         (d) by TPI if it is not in material breach of its obligations under
this Agreement and there has been a material breach of any representation,
warranty, covenant or agreement contained in this Agreement on the part of the
Company and as a result of such breach the conditions set forth in Section
6.2(a) or Section 6.2(b), as the case may be, would not then be satisfied;
provided, however, that if such breach is curable by the Company within ten (10)
days after the giving of written notice by TPI of such breach through the
exercise of the Company's reasonable best efforts, then for so long as the
Company continues to exercise such reasonable best efforts TPI may not terminate
this Agreement under this Section 7.1 (d) unless such breach is not cured within
ten (10) days (but no cure period shall be required for a breach which by its
nature cannot be cured);

         (e) by the Company if it is not in material breach of its obligations
under this Agreement and there has been a material breach of any representation,
warranty, covenant or agreement contained in this Agreement on the part of TPI
or Merger Sub and as a result of such breach the conditions set forth in Section
6.3(a) or Section 6.3(b), as the case may be, would not then be satisfied;
provided, however, that if such breach is curable by TPI or Merger Sub within
ten (10) days after the giving of written notice by the Company of such breach
through the exercise of TPI's or Merger Sub's reasonable best efforts, then for
so long as TPI or Merger Sub continues to exercise such reasonable best efforts
the Company may not terminate this Agreement under this Section 7. 1 (e) unless
such breach is not cured within ten (10) days (but no cure period shall be
required for a breach which by its nature cannot be cured);

         (f) by TPI if the Company fails to obtain the consent required by law
of the Company's shareholders approving the transactions contemplated by this
Agreement,

         (g) by the Company if TPI fails to recommend to its stockholders
through its Board of Directors the approval of the transactions contemplated by
this Agreement, or withdraws such recommendation, or if the required approvals
of the stockholders of TPI contemplated by this

                                       23

<PAGE>

Agreement shall not have been obtained by reason of the failure to obtain the
required vote upon a vote taken at a meeting of stockholders duly convened
therefor or at any adjournment thereof,

         (h) By TPI or the Company, if it is not in initial breach of its
obligations under this Agreement and any of the conditions set forth in Section
6.4 have not been satisfied, or

         Where action is taken to terminate this Agreement pursuant to this
Section 7.1, it shall be sufficient for such action to be authorized by the
Board of Directors (as applicable) of the party taking such action.

        7.2 EFFECT OF TERMINATION. In the event of termination of this Agreement
as provided in Section 7.1,  this  Agreement  shall  forthwith  become void and,
except as set forth  herein,  there shall be no liability or  obligation  on the
part  of TPI,  or the  Company,  or  their  respective  officers,  directors  or
stockholders,  provided  that each party shall remain liable for any breaches of
this  Agreement  prior  to its  termination;  and  provided  further  that,  the
provisions  of this Section 7.2 and  Sections  5.3, 5.5 and 5.9 and Article 8 of
this Agreement shall remain in full force and effect and survive any termination
of this Agreement.

        7.3 AMENDMENT.  Except as is otherwise  required by applicable law, this
Agreement may be amended by the parties  hereto at any time only by execution of
an instrument in writing signed on behalf of each of the parties hereto.

         7.4 EXTENSION, WAIVER.
             -----------------

         At any time prior to the Effective Time, TPI, on the one hand, and the
Company, on the other, may, to the extent legally allowed, (a) extend the time
for the performance of any of the obligations of the other party hereto, (b)
waive any inaccuracies in the representations and warranties made to such party
contained herein or in any document delivered pursuant hereto, and (c) waive
compliance with any of the agreements or conditions for the benefit of such
party contained herein. Any agreement on the part of a party hereto to any such
extension or waiver shall be valid only if set forth in an instrument in writing
signed on behalf of such party. The failure of any party at any time or times to
require performance of any provision hereof shall in no manner affect the right
of such party at a later time to enforce the same or any other provision of this
Agreement. No waiver of any condition or of the breach of any term in this
Agreement in one or more instances shall be deemed to be or construed as a
further or continuing waiver of such condition or breach or a waiver of any
other condition or of the breach of any other term of this Agreement.

                                       24

<PAGE>

                         ARTICLE 8 - GENERAL PROVISIONS

         8.1 SURVIVAL OF REPRESENTATIONS AND WARRANTIES.
             -------------------------------------------

         The representations and warranties set forth in Article 2 and Article 3
shall survive for a period of one year beyond the Effective Time. This Section
8.1 shall not limit any covenant or agreement of the parties hereto which by its
terms contemplates performance after the Effective Time.

         8.2 NOTICES.
             -------

         All notices and other communications hereunder shall be in writing,
shall be effective when received, and shall in any event be deemed to have been
received (a) when delivered, if delivered personally or by commercial delivery
service, (b) five (5) business days after deposit with U.S. Mail, if mailed by
registered or certified mail (return receipt requested), (c) one (1) business
day after the business day of deposit with Federal Express or similar nationally
recognized overnight courier for next day delivery (or, two (2) business days
after such deposit if deposited for second business day delivery), if delivered
by such means, or (d) one (1) business day after delivery by facsimile
transmission with copy by U.S. Mail, if sent via facsimile plus mail copy (with
acknowledgment of complete transmission), to the parties at the following
addresses (or at such other address for a party as shall be specified by like
notice):

        if to the Company, to:

               eAutoclaims.com, Inc.
               2708 Alt. 19 N., Suite 604
               Palm Harbor, FL 34683
               Attention: Eric Seidel, President
               Telephone:     (727) 781-0414
               Facsimile No.: (727) 781-8425

        with a copy to:

               Johnson, Blakely, Pope, Bokor, Ruppel & Burns, P.A.
               911 Chesnut Street
               Clearwater, Florida 33756
               Attn.: Michael T. Cronin, Esq.
               Telephone:     (727) 461-1818
               Facsimile No.: (727) 441-8617

                                       25

<PAGE>

        if to TPI, to:

               Transformation Processing, Inc.
               c/o Thompson Kernaghan
               365 Bay Street
               Toronto, Ontario M5H 2V2
               Attention: Gregg Badger
               Telephone No.: (416) 860-7683
               Facsimile No.: (416) 860-6352

        with a copy to:

               Snow Becker Krauss P.C.
               605 Third Avenue
               New York, New York 10158
               Attention: Mark Rossow, Esq.
               Telephone No.: (212) 455-0476
               Facsimile No.: (212) 949-7052

         8.3 INTERPRETATION.
             ---------------

         The words "include," "includes" and "including" when used herein shall
be deemed in each case to be followed by the words "without limitation." The
word "agreement" when used herein shall be deemed in each case to mean any
contract, commitment or other agreement, whether oral or written, that is
legally binding. The table of contents and headings contained in this Agreement
are for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement. When reference is made herein to "the business
of" an entity, such reference shall be deemed to include the business of all
direct and indirect subsidiaries of such entity. Reference to the subsidiaries
of an entity shall be deemed to include all direct and indirect subsidiaries of
such entity.

         8.4 COUNTERPARTS.
             -------------

         This Agreement may be executed in one or more counterparts, all of
which shall be considered one and the same agreement and shall become effective
when one or more counterparts have been signed by each of the parties and
delivered to the other party, it being understood that all parties need not sign
the same counterpart.

         8.5 ENTIRE AGREEMENT.
             -----------------

         This Agreement, the Schedules and Exhibits hereto, and the documents
and instruments and other agreements among the parties hereto referenced herein:
(a) constitute the entire agreement among the parties with respect to the
subject matter hereof and supersede all prior agreements and understandings,
both written and oral, among the parties with respect to the subject matter
hereof, and (b) are not intended to confer upon any other person any rights or
remedies hereunder.

                                       26

<PAGE>

         8.6 SEVERABILITY.
             -------------

         In the event that any provision of this Agreement or the application
thereof, becomes or is declared by a court of competent jurisdiction to be
illegal, void or unenforceable, the remainder of this Agreement will continue in
full force and effect and the application of such provision to other persons or
circumstances will be interpreted so as reasonably to effect the intent of the
parties hereto. The parties further agree to replace such void or unenforceable
provision of this Agreement with a valid and enforceable provision that will
achieve, to the extent possible, the economic, business and other purposes of
such void or unenforceable provision.

         8.7 OTHER REMEDIES.
             ---------------

         Except as otherwise provided herein, any and all remedies herein
expressly conferred upon a party will be deemed cumulative with and not
exclusive of any other remedy conferred hereby, or by law or equity upon such
party, and the exercise by a party of any one remedy will not preclude the
exercise of any other remedy.

         8.8 SPECIFIC PERFORMANCE.
             ---------------------

         The parties hereto agree that irreparable damage would occur in the
event that any of the provisions of this Agreement were not performed in
accordance with their specific terms or were otherwise breached. It is
accordingly agreed that the parties shall be entitled to an injunction or
injunctions to prevent breaches of this Agreement and to enforce specifically
the terms and provisions hereof in any court of the United States or any state
having jurisdiction, this being in addition to any other remedy to which they
are entitled at law or in equity.

         8.9 GOVERNING LAW.
             --------------

         This Agreement shall be governed by and construed in accordance with
the laws of the State of New York, regardless of the laws that might otherwise
govern under applicable principles of conflicts of laws thereof, provided that
issues involving the corporate governance of any of the parties hereto shall be
governed by their respective jurisdictions of incorporation. Each of the parties
hereto agrees that process may be served upon them in any manner authorized by
the laws of the State of New York, and that such process may be served outside
the state of New York, for such persons and waives and covenants not to assert
or plead any objection which they might otherwise have to such jurisdiction and
such process.

                                       27

<PAGE>

         8.10 RULES OF CONSTRUCTION.
              ----------------------

         The parties hereto agree that they have been represented by counsel
during the negotiation and execution of this Agreement and, therefore, waive the
application of any law, regulation, holding or rule of construction providing
that ambiguities in an agreement or other document will be construed against the
party drafting such agreement or document.

         8.11 ASSIGNMENT.
              -----------

         No party may assign either this Agreement or any of its rights,
interests, or obligations hereunder without the prior written approval of the
other parties hereto. Subject to the preceding sentence, this Agreement shall be
binding upon and shall inure to the benefit of the parties hereto and their
respective successors and permitted assigns.

         8.12 ABSENCE OF THIRD PARTY BENEFICIARY RIGHTS.
              -----------------------------------------

         No provisions of this Agreement are intended, nor shall be interpreted,
to provide or create any third party beneficiary rights or any other rights of
any kind in any client, customer, affiliate, partner of any party hereto or any
other person or entity unless specifically provided otherwise herein.

         8.13 MEDIATION AND ARBITRATION.
              --------------------------

         If any dispute, controversy or claim arises in connection with the
performance or breach of this Agreement between the parties, a party hereto may,
upon written notice to the other parties, request facilitated negotiations. Such
negotiations shall be assisted by a neutral facilitator acceptable to all
parties and shall require the best efforts of the parties to discuss with each
other in good faith their respective positions and, respecting their different
interests, to finally resolve such dispute.

         A party may disclose any facts to the other parties or to the
facilitator which such party believes, in good faith, to be necessary to resolve
the dispute. All such disclosures shall be deemed in furtherance of settlement
efforts and thus confidential. Except as agreed to by all parties, the
facilitator shall keep confidential all information disclosed during the
negotiations. The facilitator shall not act as a witness for either party in any
subsequent arbitration between the parties. Such facilitated negotiations shall
conclude within sixty days from receipt of the written notice, unless extended
by mutual consent of the parties. The costs incurred by each party in such
negotiations shall be borne by it. Any fees or expenses of the facilitator shall
be borne equally by all parties.

         If any dispute, controversy or claim arises in connection with the
performance or breach of this Agreement which cannot be resolved by facilitated
negotiations, then such dispute, controversy or claim shall be settled by
arbitration in accordance with the laws of the State of New York and the then
current Commercial Arbitration Rules of the American Arbitration Association,
except that no

                                       28

<PAGE>

pre-hearing discovery will be permitted unless specifically authorized by the
arbitration panel. The confidentiality provisions applicable to facilitated
negotiations shall also apply to arbitration.

         The award issued by the arbitration panel may be confirmed in a
judgment by any federal or state court of competent jurisdiction. All reasonable
costs of both parties, as determined by the arbitration panel, including (i) the
fees and expenses of the American Arbitration Association and of the arbitration
panel, and (ii) the costs, including reasonable attorneys' fees, incurred to
confirm the award in court, shall be borne entirely by the non-prevailing party
(to be designated by the arbitration panel in the award) and may not be
allocated between the parties by the arbitration panel.

         8.14 DISCLOSURE.
              -----------

         Disclosure on one schedule, attachment or document provided pursuant to
any paragraph or subparagraph of this Agreement shall be deemed disclosure under
any other applicable paragraph or subparagraph of this Agreement.

         IN WITNESS WHEREOF, the parties hereto have caused this Merger
Agreement and Plan of Reorganization to be signed by their duly authorized
respective officers, all as of the date first written above.

                                                 eAUTOCLAIMS.COM, INC.

                                                 By:   /s/ERIC SEIDEL
                                                      ---------------------
                                                       Eric Seidel
                                                       President

                                                 TRANSFORMATION PROCESSING, INC.

                                                 By:   /s/PAUL MIGHTON
                                                       ---------------------
                                                       Paul Mighton
                                                       President

                                       29<PAGE>

                                                                   EXHIBIT 10.1

This Exhibit contains confidential information which has been omitted and
filed separately with the Security and Exchange Commission pursuant to a
confidential treatment request under rule 24b-2 of the Securities and
Exchange Act of 1934. The confidential information has been replaced with
asterisks.

                    AGREEMENT OF PURCHASE AND SALE OF ASSETS

                                 BY AND BETWEEN

                             CRAGAR INDUSTRIES, INC.

                                       AND

                            CARLISLE TIRE & WHEEL CO.

                                OCTOBER 15, 1999

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>

DESCRIPTION                                                                                            PAGE
-----------                                                                                            ----
<S>                                                                                                    <C>
ARTICLE 1 OVERVIEW.......................................................................................1
ARTICLE 2 THE TRANSACTION................................................................................1
   2.1    Acquired Assets................................................................................1
   2.2    Assets Not Being Acquired......................................................................2
   2.4    Assumed Liabilities............................................................................3
   2.5    Purchase Price.................................................................................3
   2.6    Payment of Purchase Price......................................................................3
   2.7    Intentionally Left Blank.......................................................................3
   2.8    License Agreement..............................................................................3
   2.9    Right of Recision..............................................................................4
   2.10   Collection of Accounts Receivable..............................................................4
   2.11   Employees......................................................................................4
   2.12   Allocation of Purchase Price...................................................................4
   2.13   Transfer Fees and Taxes; Prorations............................................................4
   2.14   Relocation of Assets...........................................................................5
   2.15   Warranty Claims................................................................................5
ARTICLE 3 CONDUCT PENDING THE CLOSING....................................................................5
   3.1    Operation of Business in Ordinary Course.......................................................5
   3.2    No Negotiations................................................................................6
   3.3    Public Announcements...........................................................................6
   3.4    Confidentiality................................................................................6
   3.5    Access to Information..........................................................................6
   3.6    HSR Act........................................................................................7
ARTICLE 4 THE PARTIES' OBLIGATIONS AT THE CLOSING........................................................7
   4.1    The Closing....................................................................................7
   4.2    Seller's Obligations...........................................................................7
   4.3    Buyer's Obligations............................................................................8
   4.4    Conditions to Closing..........................................................................8
ARTICLE 5 REPRESENTATIONS, WARRANTIES AND INDEMNIFICATION................................................9
   5.1    Representations Relating to the Business.......................................................9
   5.2    Representations of Buyer.......................................................................9
   5.3    Nature and Survival of Representations and Warranties..........................................9
   5.4    Indemnification by Seller.....................................................................10
   5.5    Indemnification by Buyer......................................................................10
   5.6    Limits on Indemnification.....................................................................10
   5.7    Procedure for Indemnification.................................................................10
ARTICLE 6 ADDITIONAL AGREEMENTS.........................................................................10
   6.1    Termination...................................................................................11
   6.2    Effect of Termination.........................................................................11
   6.3    Transaction Expenses..........................................................................11
   6.4    Notices.......................................................................................11
   6.5    Governing Law and Attorneys' Fees.............................................................12
   6.6    Arbitration...................................................................................12
   6.7    Assignment....................................................................................12
   6.8    Intent to be Binding..........................................................................12
</TABLE>

<PAGE>
<TABLE>
<S>                                                                                                    <C>
   6.9    Waiver of Provisions..........................................................................13
</TABLE>

Schedule 1        Inventory - as of October 15, 1999
Schedule 2        Equipment - as of February 19, 1999
Schedule 3        Equipment - supplemental list
Schedule 4        Customer Orders
Schedule 5        Vendor Orders
Schedule 6        Contracts
Schedule 7        Product Warranties

Exhibit A         Definitions
Exhibit B         Representations and Warranties of Seller
Exhibit C         Representations and Warranties of Buyer
Exhibit D         Procedure for Indemnification
Exhibit E         Exclusive Field of Use License Agreement

                                       ii

<PAGE>

                    AGREEMENT OF PURCHASE AND SALE OF ASSETS

         This Agreement is made as of October 15, 1999, by and between Carlisle
Tire & Wheel Co. (defined to include any subsidiaries, affiliates, partnerships,
shareholders, or other related parties), a Delaware corporation (the "BUYER"),
and Cragar Industries, Inc., a Delaware corporation (the "SELLER").

                                    ARTICLE 1
                                    OVERVIEW

         1.1 Seller engages in the business of, among others, manufacturing and
selling vehicle wheels with steel outer rims and related accessories (the "SOR
WHEEL BUSINESS").

         1.2 For purposes of this Agreement, certain capitalized terms have the
meanings ascribed to them in EXHIBIT A. Other terms are defined in the body of
this Agreement.

                                    ARTICLE 2
                                 THE TRANSACTION

         2.1 ACQUIRED ASSETS. Seller agrees to sell and deliver to Buyer the
following assets of the SOR Wheel Business (the "ACQUIRED ASSETS"):

                  (a) INVENTORY. All inventories selected by Buyer of supplies,
packaging, raw materials, purchased parts and components, work-in-process and
finished goods of Seller related to the SOR Wheel Business, including, but not
limited to, all such items at Seller's facility or ordered but not yet received
by Seller as of the Closing Date (collectively, "INVENTORY"). A list of the
Inventory to be purchased, which was generated by the computer records of the
Seller, but has not been verified by a physical count is on SCHEDULE 1;

                  (b) EQUIPMENT. All machinery, equipment, tooling, dies, molds,
perishable tools, fixtures, chucks, shop tools, furniture, test benches,
harnesses, hardware, spare parts, and other tangible personal property owned by
or in the possession of Seller and related to the SOR Wheel Business, whether or
not located at the Seller's facility or in the custody of any of Seller's
suppliers selected by Buyer (collectively, the "EQUIPMENT"). A list of certain
Equipment appraised as of February 19, 1999 is listed on SCHEDULE 2, and a
supplemental list of all other Equipment to be purchased is attached as SCHEDULE
3;

                  (c) CUSTOMER ORDERS. All of Seller's rights under each
uncompleted customer order related to the SOR Wheel Business as of the Closing
Date (collectively,

                                       1
<PAGE>

the "CUSTOMER ORDERS"). A list of Customer Orders to be purchased is attached
as SCHEDULE 4;

                  (d) VENDOR ORDERS. All of Seller's rights under each
uncompleted vendor orders related to the SOR Wheel Business (collectively,
the "VENDOR ORDERS"). A list of Vendor Order to be purchased is attached as
SCHEDULE 5; and

                  (e) CONTRACTS. All of Seller's rights under the executory
contracts related to the SOR Wheel Business listed in Schedule 6;

                  (f) WARRANTY RIGHTS. All rights of Seller under express or
implied warranties from the suppliers of Seller with respect to any of the
Acquired Assets to the extent such rights may be assigned to Buyer;

                  (g) INFORMATION. All operational information, together with
originals or copies of all books, records and accounts, engineering data,
design data, drawings, manuals, correspondence, records, customer lists,
marketing information, promotional material, catalogs, brochures and any
other information which has been reduced to writing relating to or arising
out of the SOR Wheel Business.

         2.2 ASSETS NOT BEING ACQUIRED. The following assets are expressly
excluded from the assets to be delivered to Buyer (the "EXCLUDED ASSETS"):

                  (a) the minute books, corporate tax returns, and other
documents relating to the organizational existence of Seller as a corporation;

                  (b) any cash, loans and marketable securities of Seller;

                  (c) any of Seller's assets or properties unrelated to the
SOR Wheel Business including, without limitation, the Seller's business
relating to the manufacture, assembly, and marketing of vehicle wheels made
with aluminum outer rims, motorcycle wheels made from any material and
one-piece aluminum vehicle wheels and related accessories.

                  (d) any tax refunds paid or payable to Seller;

                  (e) all customer and vendor orders which Buyer elects not
to acquire and are not listed on SCHEDULE 4 or SCHEDULE 5;

                  (f) all deposits;

                  (g) all other assets not listed on Schedules 1 through 5
attached here to; and

                                       2

<PAGE>

                  (h) Unless otherwise set forth in this Agreement, all
liabilities associated with employees of Seller.

         2.4 ASSUMED LIABILITIES. Except as provided in SECTION 2.15, and
except for the Customer Orders and Vendor Orders acquired by Buyer, Buyer
will not assume any liabilities of Seller and nothing contained in this
Agreement shall be construed as an assumption by Buyer of, any liabilities,
obligations or undertakings of any nature whatsoever, whether fixed or
contingent, known or unknown, disclosed or undisclosed, and Seller shall be
responsible for all of the liabilities, obligations and undertakings not
specifically assumed by Buyer (collectively, the "Retained Liabilities").
Seller agrees to pay, perform or discharge the Retained Liabilities in
accordance with their respective terms. Seller and Buyer will mutually
cooperate in order to consummate assignment of the Customer Orders and Vendor
Orders to Buyer, and Buyer will assume all liabilities and obligations under
the Customer Orders and Vendor Orders which relate to events occurring after
the Closing date.

         2.5 PURCHASE PRICE. In addition to the payments to be made by Buyer
under the License Agreement, Buyer will pay to Seller the sum of the
following amounts ("PURCHASE PRICE"):

                  (a) an amount equal to 95% of Seller's standard cost of the
Inventory for the list on SCHEDULE 1;

                  (b) an amount equal to one hundred thousand dollars
($100,000.00) for the Equipment listed on SCHEDULE 2; and

                  (c) an amount equal to three hundred, fifty thousand
dollars ($350,000.00) for the Equipment listed on SCHEDULE 3.

         2.6 PAYMENT OF PURCHASE PRICE.  Buyer will pay the Purchase Price,  in
immediately  available  funds, as follows:

                  (a) Buyer shall pay for the Inventory upon terms of
immediately available funds at the Closing Date, subject to a physical count on
the Closing Date, or upon removal from the Seller's facility if movement takes
place prior to the Closing Date;

                  (b) Buyer shall pay for the Equipment at the Closing Date;

         2.7      [Intentionally Left Blank]

         2.8 LICENSE AGREEMENT. Buyer and Seller further agree that as of the
Closing Date Buyer will enter into a License Agreement with Seller for use of
the "Cragar" name and other intangible assets as set forth in Exhibit E.

                                       3

<PAGE>

         2.9 RIGHT OF RECISION. If Buyer at any time defaults under the License
Agreement (and such default is not cured within the period specified in the
License Agreement), then Seller may, at its sole discretion, repurchase any and
all (at Seller's sole discretion) of the Acquired Assets upon the same terms and
at the Purchase Price provided herein.

         2.10     COLLECTION OF ACCOUNTS RECEIVABLE.

                  (a) Seller will retain the title to all accounts and notes
receivable of Seller related to the SOR Wheel Business as of the Closing Date
(the "RETAINED ACCOUNTS"). If any customer makes any payments to Buyer for the
Retained Accounts, then Buyer will immediately advance such funds to Seller.
Seller will provide to Buyer on a weekly basis a listing of those Retained
Accounts which have past due amounts owing to the Seller. Buyer agrees it will
work with Seller and make all commercially reasonable efforts to assist
Seller in collecting past due amounts owing to Seller.

                  (b) Buyer will be entitled to all accounts and notes
receivable related to the SOR Wheel Business which relate to periods following
the Closing Date (the "POST-CLOSING ACCOUNTS"). If any customer issues to Seller
a credit or takes a credit upon payment on Retained Accounts which should be
applied to the Post-Closing Accounts, then Buyer will immediately reimburse such
funds to Seller. If any customer makes any payments to Seller for the
Post-Closing Accounts, then Seller will immediately advance such funds to Buyer.

         2.11 EMPLOYEES. Seller will be responsible for any severance and/or
other payments, including accrued vacation and sick time, sick pay, and other
compensation, benefits, and perquisites, incurred in connection with the
termination of any of its employees. Seller will cooperate with Buyer and make
reasonable efforts to make available to Buyer the non-exclusive services of
Michael Hartzmark, Michael Miller, and Tony Cortes (collectively, the
"TRANSITION EMPLOYEES"). Seller agrees to pay the salary and benefits for the
Transition Employees for a period of up to 90 days following the Closing;
PROVIDED, HOWEVER, that Buyer will pay for all travel costs incurred by the
Transition Employees. Notwithstanding the foregoing, Seller shall not be liable
to Buyer if any of the Transition Employees refuse at any time to work for Buyer
or are otherwise unavailable.

         2.12 ALLOCATION OF PURCHASE PRICE. Promptly following the Closing,
Buyer and Seller will mutually determine the manner in which the Purchase Price
will be allocated among the Acquired Assets, and Seller and Buyer agree to
report the allocation on Internal Revenue Service Form 8594, Asset Acquisition
Statement, which they will file with their respective federal income tax returns
for the tax year that includes the Closing Date.

         2.13 TRANSFER FEES AND TAXES; PRORATIONS. Buyer will pay all transfer
and assumption fees and expenses and sales and use taxes arising out of the
transfer of the Acquired Assets. Seller will pay its portion, prorated as of the
Closing date, of state

                                       4

<PAGE>

and local real and personal property taxes relating to the Acquired Assets.
Seller will also be responsible for any Tax in respect of the Business or the
Acquired Assets related to any period prior to the Closing date.

         2.14 RELOCATION OF ASSETS. All Acquired Assets which are at Seller's
facility will be relocated at Buyer's expense as soon as is reasonably practical
after the Closing Date. Buyer and its agents will be given complete and
unrestricted access to and use of such facilities and premises for that purpose.
Buyer may occupy and use the leased facility for up to six months following the
Closing Date or until Seller rejects the Lease or Seller's plan of sublease,
whichever occurs first. Thereafter, if Buyer wishes to continue to use any of
such facilities, Buyer will be responsible for making arrangements therefor with
the owner(s) of such facilities. For its use of such facilities, Buyer will pay
rent to Seller equal to the monthly rent payable by Seller to the owner of such
facilities, except that the first month of Buyer's use of the leased facility
will be rent free. Buyer shall bear the costs of utility services incurred at
facilities during its occupancy of such facilities. Buyer shall repair or cause
to be repaired, at its expense, all damage caused by its agents in removing such
assets.

         2.15 WARRANTY CLAIMS. Buyer will be responsible for all product
warranty returns for all products manufactured or sold by Buyer after the
Closing Date. Buyer will be responsible for replacing or repairing at Buyer's
cost all defective SOR Wheel Business products manufactured by Seller before
the Closing Date or by Buyer after the Closing Date within the limitations of
Buyer's normal business practices for such Products; PROVIDED, HOWEVER, that,
Buyer shall not be required to pay for all warranty claims which relate to
products manufactured by Seller prior to the Closing Date which are in excess
of (i) $50,000 during the first six month period following the Closing Date,
(ii) $50,000 during the second six month period following the Closing Date,
(iii) $25,000 during the third six month period following the Closing Date, (iv)
$25,000 during the fourth sixth month period following the Closing Date, and
(v) $25,000 during the third twelve month period following the Closing Date.
Buyer shall be required to pay for warranty claims which relate to products
manufactured by Seller prior to the Closing Date beginning in the fourth year
following the Closing Date. Buyer shall notify Seller of warranty claims which
are the responsibility of the Seller and Seller shall have the opportunity to
accept or reject such claims.

                                    ARTICLE 3
                           CONDUCT PENDING THE CLOSING

         3.1 OPERATION OF BUSINESS IN ORDINARY COURSE. Prior to the Closing,
Seller will conduct its SOR Wheel Business and affairs only in the ordinary
course and consistent with its prior practice including, but not limited to:

                                       5

<PAGE>

                  (a) using its reasonable best efforts to maintain its SOR
Wheel Business and sales representatives, customers, assets, suppliers,
licenses and operations in accordance with past custom and practice;

                  (b) not entering into any transaction related to the SOR
Wheel Business other than in the ordinary course of business, or any
transaction with affiliated persons or entities; and

                  (c) not (i) incurring any debt other than in the ordinary
course of business and in amounts consistent with past practices; (ii) making
any loans; or (iii) increasing the compensation, incentive arrangements or
other benefits of any employee other than in the ordinary course of business
consistent with past practices.

Seller shall notify Buyer of any material adverse change in the ordinary
course of Seller's business, of any governmental or third party complaints,
investigations, or hearings (or communications indicating that any may be
contemplated), or of any breach by Seller of any agreement, representation or
warranty hereunder.

         3.2 NO NEGOTIATIONS. Neither Seller nor any of its Representatives
will, directly or indirectly, solicit or participate in any negotiations
regarding any proposal or offer from any person or entity (including any of
its or their officers or employees) relating to any material transaction,
business combination, or sale of the SOR Wheel Business or the Acquired
Assets (other than the sale of assets in the ordinary course). Seller will
promptly notify Buyer if any person contacts Seller or inquires about any
such proposal or offer.

         3.3 PUBLIC ANNOUNCEMENTS. The parties will not issue any press
release or public announcement, including announcements to employees or
customers, with respect to this Agreement without the prior written consent
(which consent will not be withheld unreasonably) of Buyer or Seller, as the
case may be.

         3.4 CONFIDENTIALITY. All information concerning a party provided to
the other party, other than publicly available information, will be kept in
strict confidence by such other party and will only be used to evaluate the
other party in conjunction with the transaction contemplated by this
Agreement. If this Agreement is terminated, all documents or other media
containing such information will be returned to the appropriate party.
Subject to the limitations above, nothing herein precludes a party from
developing or offering products or services competitive with those of the
other party, so long as Buyer's rights under the License Agreement are not
infringed upon. The parties may disclose information to their Representatives
so long as they agree to keep such information confidential.

         3.5      ACCESS TO INFORMATION.

                  (a) Buyer and its Representatives will have the opportunity
to make a complete due diligence review of the books, records, business, and
affairs of Seller,

                                       6

<PAGE>

including, the Acquired Assets and the leased premises. To facilitate the due
diligence review, Seller will provide to Buyer and its Representatives complete
access to all of Seller's records and documents, will provide Buyer with
personal, bank, and professional references, and will make available for
consultation customers, employees, suppliers, and distribution channels.

         3.6 HSR ACT. To the extent required by law, Seller and Buyer shall each
file with the FTC and the DOJ any notifications required to be filed by their
respective "ultimate parent entities" under the HSR Act, with respect to the
transactions contemplated herein. Each party shall be responsible for all
expenses incurred in the preparation of their respective HSR Act filings and the
filing fees to be paid in connection with the HSR Act filings. The parties shall
use their reasonable best efforts to make such filings promptly, to respond to
any requests for additional information made by either the FTC or DOJ, and to
cause the waiting periods under the HSR Act to terminate or expire at the
earliest possible date.

                                    ARTICLE 4
                     THE PARTIES' OBLIGATIONS AT THE CLOSING

         4.1 THE CLOSING. The closing ("CLOSING") of these transactions will
be held within five business days of the date Seller obtains any and all
consents required to consummate the transaction contemplated herein, but in
no event later than January 15, 2000, unless both parties agree to extend the
date, and at a time and place as the parties mutually agree.

         4.2 SELLER'S OBLIGATIONS. At the Closing, Seller will deliver the
following:

                  (a) physical possession, as possible, of the Acquired Assets
in accordance with SECTION 2.1;

                  (b) releases of all liens, encumbrances and security interests
in respect of the Acquired Assets and evidences of all payoffs;

                  (c) all needed third-party consents, including but not limited
to holders of Seller's outstanding common and preferred stock, Board of
Directors, Seller's Senior Lender (Bank of America Commercial Funding Commercial
Finance), other secured lenders and consents required to transfer the contracts;

                  (d) the License Agreement referred to in Section 2.8;

                  (e) an executed Bill of Sale, satisfactory to Buyer and
Seller, which conveys to Buyer legal title to all of the Acquired Assets;

                  (f) certified resolutions of the Seller's Board of Directors
and shareholders approving this Agreement;

                                       7

<PAGE>

                  (g) certificates from the state taxing authorities as evidence
that all sales and use tax liabilities of Seller accruing before the Closing
Date have been fully satisfied; and

                  (h) opinion of Seller's counsel satisfactory to Buyer.

         4.3   BUYER'S OBLIGATIONS.  At the Closing, Buyer will deliver the
following:

                  (a) Payment of the Purchase Price in accordance with SECTION
2.6;

                  (b) certified resolutions of the Board of Directors of Buyer
necessary to approve this Agreement;

                  (c) all needed third-party consents; and

                  (d) the License Agreement referred to in SECTION 2.8.

         4.4   Conditions to Closing

                  (a) The obligation of Buyer to consummate the transaction
contemplated by this Agreement shall be subject to the fulfillment, or the
waiver by Buyer, on or prior to the Closing Date, of the following conditions:

                       I.           SELLER'S OBLIGATIONS.  Delivery by Seller of
                                    all items set forth in Section 4.2.
                       II.          REPRESENTATIONS AND WARRANTIES TRUE AT THE
                                    CLOSING DATE. The representations and
                                    warranties of Seller contained in this
                                    Agreement shall be deemed to have been made
                                    on and as of the Closing Date and shall then
                                    be true and correct in all material
                                    respects.
                       III.         LITIGATION. No claim, action, suit,
                                    investigation or other proceeding shall be
                                    pending or threatened by any third party
                                    (including any governmental agency) before
                                    any court or administrative agency
                                    challenging or otherwise relating to the
                                    transactions provided for in this Agreement
                                    or which may adversely affect Seller's
                                    ability to fulfill its obligations under
                                    this Agreement and the License Agreement.
                       IV.          HSR ACT. Any applicable waiting period (and
                                    any extension thereof) under the HSR Act
                                    relating to the transactions contemplated
                                    hereby shall have expired or been terminated

                  (b) The obligation of Seller to consummate the transaction
contemplated by this Agreement shall be subject to the fulfillment, or the
waiver by Seller, on or prior to the Closing Date, of the following conditions:

                                       8

<PAGE>

                        I.          BUYERS'S OBLIGATIONS.  Delivery by Buyer of
                                    all items set forth in Section 4.3.
                        II.         REPRESENTATIONS AND WARRANTIES TRUE AT THE
                                    CLOSING DATE. The representations and
                                    warranties of Buyer contained in this
                                    Agreement shall be deemed to have been made
                                    on and as of the Closing Date and shall then
                                    be true and correct in all material
                                    respects.
                        III.        LITIGATION. No claim, action, suit,
                                    investigation or other proceeding shall be
                                    pending or threatened by any third party
                                    (including any governmental agency) before
                                    any court or administrative agency
                                    challenging or otherwise relating to the
                                    transactions provided for in this Agreement
                                    or which may adversely affect Buyer's
                                    ability to fulfill its obligations under
                                    this Agreement and the License Agreement.
                        IV.         HSR ACT. Any applicable waiting period (and
                                    any extension thereof) under the HSR Act
                                    relating to the transactions contemplated
                                    hereby shall have expired or been terminated
                        V.          Approvals. Seller shall have received all
                                    required approvals related to this Agreement
                                    and the License Agreement and the
                                    transaction contemplated therein from its
                                    Board of Directors, Shareholders and all
                                    necessary third parties.

                                    ARTICLE 5
                 REPRESENTATIONS, WARRANTIES AND INDEMNIFICATION

         5.1 REPRESENTATIONS RELATING TO THE SOR BUSINESS. Concurrently with the
signing of this Agreement, Seller has prepared a Disclosure Letter which
discloses certain information to Buyer. Seller acknowledges that Buyer is
relying on the accuracy of the representations and warranties contained in
EXHIBIT B. Accordingly, Seller warrants to Buyer that, except for those matters
which have been disclosed to Buyer in the Disclosure Letter, each of the
representations and warranties contained in EXHIBIT B are true and correct (in
all material respects) on the date of this Agreement, and will again be true and
correct (in all material respects) on the Closing Date.

         5.2 REPRESENTATIONS OF BUYER. Buyer acknowledges that Seller is relying
on the accuracy of the representations and warranties contained in EXHIBIT C.
Accordingly, Buyer warrants to Seller that each of the representations and
warranties contained in EXHIBIT C are true and correct (in all material
respects) on the date of this Agreement, and will again be true and correct (in
all material respects) on the Closing Date.

         5.3 NATURE AND SURVIVAL OF REPRESENTATIONS AND WARRANTIES. Each
statement and agreement made by any of the parties in this Agreement or in any
document or other

                                       9

<PAGE>

instrument delivered by or on behalf any of the parties pursuant to this
Agreement will survive for a period of two (2) years following the Closing of
this Agreement.

         5.4 INDEMNIFICATION BY SELLER. Seller agrees to indemnify and hold
Buyer harmless from and against any Loss incurred by Buyer in connection with or
alleged to result from the following:

                  (a) a breach by Seller of any representation or warranty made
pursuant to SECTION 5.1 above or otherwise in this Agreement;

                  (b) a breach by Seller of any of its other obligations or
covenants contained in this Agreement;

                  (c) a failure of Seller to pay, perform or discharge any
Retained Liability.

         5.5 INDEMNIFICATION BY BUYER. Buyer agrees to indemnify, defend and
hold Seller harmless from and against any Loss incurred by Seller in connection
with or alleged to result from the following:

                  (a) a breach by Buyer of any representation or warranty made
pursuant to SECTION 5.2 above or otherwise in this Agreement;

                  (b) a breach by Buyer of any of its obligations or covenants
contained in this Agreement;

                  (c) Buyer's failure to discharge the Customer Orders and
Vendor Orders following the Closing Date; and

                  (d) any liability arising from the actions of the Transition
Employees while under the supervision or control of Buyer.

         5.6 LIMITS ON INDEMNIFICATION. In order to limit certain transaction
expenses, the parties acknowledge and agree that neither party may seek
indemnification under this Article 5 unless the aggregate claims exceed
$10,000 and that no claim by either party may exceed $2,000,000. This
limitation on indemnification shall not apply to any loss incurred by Buyer
as a result of Seller's failure to perform or discharge any Retained
Liabilities.

         5.7 PROCEDURE FOR INDEMNIFICATION. The party that is entitled to be
indemnified hereunder shall follow the procedures set forth in EXHIBIT D.

                                    ARTICLE 6
                              ADDITIONAL AGREEMENTS

                                       10

<PAGE>

         6.1 TERMINATION. This Agreement may be terminated at any time prior to
the Closing:

                  (a) by mutual written consent of Buyer and Seller;

                  (b) by either Buyer or Seller if the other party breaches any
of its material representations, warranties, or covenants contained in this
Agreement and, if the breach is curable, the breach is not cured within five (5)
business days after notice; or

                  (c) by either Buyer or Seller if the Closing does not occur
within five business days of the date Seller obtains any and all consents
required to consummate the transaction contemplated herein, but in any event
no later than January 15, 2000 (except that no party shall have the right to
terminate this Agreement unilaterally if the event giving rise to the
non-occurrence of the Closing is primarily attributable to that party or to
any affiliated party).

         6.2 EFFECT OF TERMINATION. If this Agreement is terminated as provided
above, this Agreement will become void and none of the parties or their
Representatives will have any further liability or obligation except as set
forth in SECTION 3.5 of this Agreement, and except for liability arising from a
breach of this Agreement.

         6.3 TRANSACTION EXPENSES. Except as expressly provided herein, each
party shall bear its own expenses, including without limitation, all fees of
counsel, consultants, and accountants incident to this Agreement.

         6.4 NOTICES. All notices, and other communications hereunder will be in
writing and deemed to have been given when (i) delivered by hand, (ii) sent by
telecopier (with receipt confirmed), provided that a copy is mailed by
registered mail, postage pre-paid return receipt requested, or (iii) when
actually received by the addressee, in each case to the following:

                  If to Seller:               Cragar Industries, Inc.
                                              4636 North 43rd Avenue
                                              Phoenix, Arizona 85031
                                              Phone: (623) 247-1300, ex. 508
                                              FAX: (623) 846-0684
                                              Attn:  Michael Hartzmark

                  With a copy to:             Snell & Wilmer L.L.P.
                                              One Arizona Center
                                              Phoenix, Arizona 85004-0001
                                              Phone: (602) 382-6363
                                              FAX:  (602) 382-6070

                                       11

<PAGE>

                                              Attn:  Richard Stagg, Esq.

                  If to Buyer       :         Carlisle Tire & Wheel
                                              23 Windham Blvd.
                                              Aiken, SC 29805
                                              Phone:  803-643-2900
                                              FAX:  803-643-2919
                                              Attn:  President

                  With a copy to:             Carlisle Companies Incorporated
                                              250 S. Clinton St., Suite 201
                                              Syracuse, NY 13202
                                              Phone:  315-474-2500
                                              FAX: 315-474-2008
                                              Attn: Vice-President,
                                              Secretary & General Counsel

         6.5 GOVERNING LAW AND ATTORNEYS' FEES. The validity, construction, and
enforceability of this Agreement shall be governed in all respects by the laws
of the State of Arizona, without regard to its conflict of laws rules

         6.6 ARBITRATION. Any controversy relating to this Agreement or relating
to the breach hereof shall be settled by arbitration conducted in Phoenix,
Arizona in accordance with the Commercial Arbitration Rules of the American
Arbitration Association then in effect. The award rendered by the arbitrator(s)
shall be final and judgment upon the award rendered by the arbitrator(s) may be
entered upon it in any court having jurisdiction thereof. The arbitrator(s)
shall possess the powers to issue mandatory orders and restraining orders in
connection with such arbitration. The expenses of the arbitration shall be borne
by the losing party unless otherwise allocated by the arbitrator(s). The
agreement to arbitrate shall be specifically enforceable under the prevailing
arbitration law. During the continuance of any arbitration proceedings, the
parties shall continue to perform their respective obligations under this
Agreement. Nothing herein shall preclude the Seller or any affiliate or
successor from seeking equitable relief, including injunction or specific
performance, in any court having jurisdiction, in connection with the
non-compete agreement.

         6.7 ASSIGNMENT. This Agreement will not be assigned by operation of law
or otherwise, except that this Agreement may be assigned by operation of law to
any corporation or entity with or into which Seller may be merged or
consolidated or to which Seller transfers all or substantially all of its
assets, and such corporation or entity assumes this Agreement and all
obligations and undertakings of Seller hereunder.

         6.8 INTENT TO BE BINDING. The Schedules and Exhibits referred to herein
are incorporated herein by reference as if fully set forth in the text of this
Agreement. This Agreement may be executed in any number of counterparts, and
each counterpart constitutes an original instrument, but all such separate
counterparts constitute one and the same agreement. This Agreement may not be
amended except by an instrument in

                                       12

<PAGE>

writing approved by Buyer and Seller. If any term, provision, covenant, or
restriction of this Agreement is held by a court to be invalid or unenforceable,
the remainder of the terms, provisions, covenants, and restrictions of this
Agreement will remain in full force and effect and will in no way be affected or
invalidated and the court will modify this Agreement or, in the absence thereof,
the parties agree to negotiate in good faith to modify this Agreement to
preserve each party's anticipated benefits under this Agreement.

         6.9 WAIVER OF PROVISIONS. The terms, covenants, representations,
warranties, and conditions of this Agreement may be waived only by a written
instrument executed by the party waiving compliance. The failure of any party at
any time to require performance of any provisions hereof will, in no manner,
affect the right at a later date to enforce the same. No waiver by any party of
any condition, or breach of any provision, term, covenant, representation, or
warranty contained in this Agreement, whether by conduct or otherwise, in any
one or more instances, will be deemed to be or construed as a further or
continuing waiver of any such condition or of the breach of any other provision,
term, covenant, representation, or warranty of this Agreement.

                                      13

<PAGE>

         Buyer and Seller have executed this Agreement on the date first written
above. By signing below, each individual represents that he or she is a duly
elected officer of the company and is authorized to sign in that capacity.

                                CRAGAR INDUSTRIES, INC., a Delaware corporation

                                By:
                                    ------------------------------------
                                Name:
                                      ----------------------------------
                                Title:
                                       ---------------------------------

                                CARLISLE TIRE & WHEEL CO.
                                a Delaware corporation

                                By:
                                    ------------------------------------
                                Name:
                                      ----------------------------------
                                Title:
                                       ---------------------------------

                                      14

<PAGE>

                                  Schedule 1
                       Inventory-as of October 15, 1999
                                     [*]

[*] Redacted Information.

<PAGE>

                                  Schedule 2
                       Equipment-as of February 19, 1999
                                     [*]

[*] Redacted Information.

<PAGE>

                                  Schedule 3
                          Equipment-Supplemental List
                                     [*]

[*] Redacted Information.

<PAGE>

                                  Schedule 4
                                Customer Orders
                                      [*]

[*] Redacted Information

<PAGE>

                                  Schedule 5
                                Vendors Orders
                                      [*]

[*] Redacted Information

<PAGE>

                                  Schedule 6
                                  Contracts-
                                     NONE

<PAGE>

                                  Schedule 7
                              Product Warranties
                                      [*]

[*] Redacted Information

<PAGE>

                                                                       EXHIBIT A

                                   DEFINITIONS

         1.       Definitions.  For purposes of this Agreement, the following
terms have the following meanings.

         "ACCOUNTS RECEIVABLE" means all selected accounts and notes receivable
of Seller related to the SOR Wheel Business as of the Closing Date which are
Current Receivables (i.e., bona fide accounts receivable resulting from sales
and shipments of SOR Wheel Business products to credit worthy customers of
Seller within sixty days immediately preceding the Closing Date and are not
heavily concentrated accounts or contra accounts which are deemed unacceptable
by Bank of America Commercial Funding Commercial Finance), Future Receivables
(i.e. bona fide accounts receivable resulting from sales and shipments of SOR
Wheel Business products to customers of Seller within ninety days immediately
preceding the Closing Date in which Seller agreed at the time of sales that the
customer need not pay for the products for up to ninety days following the
sale), or other bona fide accounts receivable.

         "APPLICABLE LAWS" means all laws and regulations of foreign, federal,
state, and local governments and all agencies regulating or otherwise affecting
the SOR Wheel Business or the Acquired Assets, including, without limitation,
employee health and safety, the discharge of pollutants or wastes, and employee
benefit plans.

         "CONTRACT" means any (i) agreement or indenture relating to the
borrowing of money in excess of $5,000 relating to the SOR Wheel Business or
Acquired Assets or to mortgaging, pledging, or otherwise placing a lien on
any of the Acquired Assets; (ii) guaranty of any obligation for borrowed
money secured by lien on Acquired Assets, other than endorsements made for
collection; (iii) lease or agreement under which it is lessor or lessee of,
or permits any third party to hold or operate, any Acquired Assets; or (iv)
other agreement material to the SOR Wheel Business.

         "GAAP" means generally accepted United States accounting principles,
applied on a basis consistent with the basis on which the Balance Sheet and the
other financial statements were prepared.

         "HSR ACT" means the Hart-Scott-Rodino Antitrust Improvements Act of
1976 or any successor law, and regulations and rules issued pursuant to that Act
or any successor law.

         "INDEMNIFIED PARTY" means the party which is entitled to be indemnified
under this Agreement.

         "INDEMNIFYING PARTY" means the party required to indemnify under this
Agreement.

                                       A-1

<PAGE>

                                                                      EXHIBIT A

         "INSIDERS" means an officer, director, or shareholder of Seller or
Buyer, as the case may be, or any member of the immediate family of any such
officer, director, or shareholder, or any entity in which any of such persons
owns any beneficial interest, other than a publicly held corporation whose stock
is traded on a national securities exchange or in the over-the-counter market
and less than 1% of the stock of which is beneficially owned by any of such
shareholders.

         "LOSS" mean all costs, expenses, losses, damages, fines, penalties,
liabilities, lost profits or other losses (including, without limitation,
interest which may be imposed in connection therewith, court costs, litigation
expenses, and reasonable attorneys' and accounting fees).

         "REPRESENTATIVE" means any officer, director, principal, attorney,
agent, employee or other representative.

         "SUBSIDIARY" means any corporation of which securities having a
majority of the ordinary voting power in electing directors are owned by Seller,
or Buyer, as the case may be, directly or through another Subsidiary.

         "TAX" means any federal, state, local, foreign or other tax, levy,
impost, fee, assessment or other government charge, including without limitation
(i) income, estimated income, business, occupation, franchise, property,
payroll, personal property, sales, transfer, use, employment, commercial rent,
occupancy, franchise or withholding taxes, and (ii) any premium, interest,
penalties and additions in connection therewith.

                                       A-2

<PAGE>

                                                                      EXHIBIT B

                    REPRESENTATIONS AND WARRANTIES OF SELLER

         Seller represents and warrants to Buyer as follows:

         1. ORGANIZATION AND QUALIFICATION. Seller is a corporation duly
organized, validly existing, and in good standing under the laws of the State of
Delaware, and has the requisite corporate power and authority to own and operate
its properties and to carry on its business as now conducted. Seller is duly
qualified to do business and is in good standing in the states of Arizona and
Delaware, the only jurisdictions where the failure to be so qualified would have
a material adverse effect on its business, properties, or ability to conduct the
business currently conducted by it.

         2. AUTHORITY RELATIVE TO THIS AGREEMENT. Seller has the requisite
corporate power and authority to enter into this Agreement and to carry out its
obligations hereunder. The execution and delivery of this Agreement by Seller
and the consummation by Seller of these transactions has been duly authorized by
the Board of Directors of Seller. This Agreement has been duly executed and
delivered by Seller, and constitutes a valid and binding obligation of Seller,
enforceable in accordance with its terms.

         3. NO CONFLICTS. Except as set forth in the Disclosure Letter, the
Seller is not subject to, or obligated under, any provision of (a) its Articles
of Incorporation, Bylaws, or other organizational documents, (b) any agreement,
arrangement, or understanding, (c) any license, franchise, or permit, or (d) any
Applicable Law which would be breached or violated, or in respect of which a
right of termination or acceleration would arise, or pursuant to which any
encumbrance on any of its assets would be created, by its execution, delivery,
and performance of this Agreement and the consummation by it of the transactions
contemplated hereby.

         4. NO CONSENTS. Except for the consent of the Board of Directors, the
holders of Seller's common and preferred stock, Junior Secured Lenders and Bank
of America Commercial Funding Commercial Finance, no authorization, consent, or
approval of, or filing with, any public body, court, or authority is necessary
on the part of Seller for the consummation by Seller of the transactions
contemplated by this Agreement.

         5. FINANCIAL STATEMENTS. Seller has provided to Buyer for the 1997 and
1998 year-end audited financial statements in the form of Seller's 10-KSB
Reports and the Seller's most recent financial statements in the form of
Seller's 10-QSB Report. All of these financial statements have been prepared in
accordance with GAAP applied on a consistent basis throughout the periods
involved and fairly present the financial position of Seller as of the dates
thereof and the results of its operations and cash flows for the periods then
ended.

         6. SELLER'S SEC REPORTING. Seller files periodic reports pursuant to
the Securities Exchange Act of 1934 (the "SEC REPORTS"). Since December 1997,
Seller has

                                       B-1

<PAGE>

                                                                      EXHIBIT B

duly filed all SEC Reports required to be filed, and no such report, as of the
date filed, contained any untrue statement of material fact or omitted to state
any material fact required to be stated therein or necessary to make the
statements in such report, in light of the circumstances under which they were
made, not misleading. The financial statements included in such SEC Reports were
prepared in accordance with generally accepted accounting principles applied on
a consistent basis throughout the periods involved and present fairly the
consolidated financial position, results of operation, and cash flows of Seller
and its consolidated subsidiaries as of the dates and for the periods indicated,
subject, in the case of unaudited interim statements, to normal year-end
adjustments and the absence of complete footnote disclosure.

         7. COMPLIANCE WITH LAWS. Seller and its officers, directors, agents,
and employees have complied in all material respects with all Applicable Laws
related to the SOR Wheel Business and Acquired Assets, and no claims have been
filed against Seller alleging a material violation of any such Applicable Law,
except as set forth in the Disclosure Letter.

         8. LITIGATION. Except as set forth in the Disclosure Letter, there are
no suits, claims, actions, arbitrations, investigations, or proceedings entered
against, now pending, or threatened against Seller before any court,
arbitration, administrative or regulatory body, or any governmental agency which
may result in any judgment, order, award, decree, liability, or other
determination which will or could reasonably be expected to have any material
adverse effect upon Seller's ability to fulfill its obligations under this
Agreement and the License Agreement,, the Acquired Assets, or the SOR Wheel
Business. Seller is not subject to any continuing court or administrative order,
writ, injunction, or decree applicable to it or the SOR Wheel Business, or to
its property or employees, and Seller is not in material default with respect to
any order, writ, injunction, or decree of any court or federal, state,
municipal, or other governmental department, commission, board, agency, or
instrumentality which will or could reasonably be expected to have any effect
upon Seller, the Acquired Assets, or the SOR Wheel Business.

         9.       GOOD TITLE TO AND CONDITION OF THE ACQUIRED ASSETS.

                  a. The Inventory listed on SCHEDULE 1 is carried on Seller's
         books and records at a value determined in accordance with GAAP.

                  b. Seller owns the Acquired Assets free and clear of all
         liens, encumbrances and security interests, except as disclosed in the
         Disclosure Letter, or leases such equipment under valid leases, all of
         which are listed in the Disclosure Letter. Seller is not in default
         under any such obligations, and no circumstances exist which could
         result in such default, under any of such equipment leases, nor to
         Seller's knowledge is any other party to any of such equipment leases
         in default.

         10.      OTHER CONTRACTS AND COMMITMENTS.

                                       B-2

<PAGE>

                                                                      EXHIBIT B

                  a. Seller has furnished Buyer with a true and correct copy of
         each written Contract, and a written description of each oral Contract
         referred to in the Disclosure Letter, together with all amendments,
         waivers, or other changes thereto.

                  b. Except as specifically disclosed in the Disclosure Letter:
         (i) no supplier has indicated that it will stop or decrease the rate of
         business done with Seller, except for changes in the ordinary course of
         the SOR Wheel Business; (ii) Seller has performed in all material
         respects the obligations required to be performed by it in connection
         with the Contracts and Seller has not been advised of or received any
         claim of default under any Contract required to be disclosed hereunder;
         (iii) Seller has no present expectation or intention of not fully
         performing any obligation pursuant to any Contract; and (iv) to
         Seller's knowledge there has been no breach and there is no anticipated
         breach by any other party to any Contract.

         11. SOLVENCY; BULK SALES. Seller is solvent and able to pay its
outstanding debts as they mature. Seller will not be rendered insolvent by the
transfer of the Acquired Assets pursuant to this Agreement, and the transfer of
the Acquired Assets is not fraudulent to any creditor or equity interest holder
of Seller. There is no state bulk sales or bulk transfer law applicable to the
sale of the Acquired Assets to Buyer.

         12. TAX MATTERS. Seller has filed all federal, foreign, state, county,
and local income, excise, property, sales, employment-related wages and
benefits, and other tax returns which are required to be filed by it or them, as
the case may be, in respect of Seller, the SOR Wheel Business or the Acquired
Assets, and all such returns are true and correct; all taxes due and payable by
Seller in respect of Seller, the SOR Wheel Business or the Acquired Assets have
been paid; Seller's provisions for taxes on the most recent balance sheet and
any other financial statements delivered hereunder are sufficient for all
accrued and unpaid taxes as of the dates of such balance sheets; Seller has paid
all taxes due and payable by it or which it is obligated to withhold from
amounts owing to any employee, creditor, or third party; Seller has not waived
any statute of limitations in respect of taxes or agreed to any extension of
time with respect to a tax assessment or deficiency; the assessment of any
additional taxes relating to or for periods for which returns have been filed is
not expected; and Seller has not received notice of any unresolved questions or
claims concerning its tax liability.

         13. BROKERS' FEES. Seller has not dealt with any broker, finder, or
other person entitled to any brokerage commissions, finders' fees, or similar
compensation in connection with the transactions contemplated by this Agreement.

         14. PRODUCT WARRANTIES. Schedule 7 to this Agreement contains a
description of all product warranties relating to products sold by Seller in the
SOR Wheel Business, including the length of each warranty, the obligation of
Seller thereunder and a three-year

                                       B-3

<PAGE>

                                                                      EXHIBIT B

history of warranty claims made against Seller with respect to the SOR Wheel
Business. Except as set forth on Schedule 7 to this Agreement, Seller has made
no express warranties with respect to SOR products sold or distributed by Seller
and no warranties have been made by Seller or authorized personnel of Seller.
Except as disclosed in the Disclosure Letter, no SOR Products sold or
manufactured by Seller in the SOR Wheel Business have at any time been subject
to any voluntary or governmental recall (whether federal, state, local or
foreign), and Seller knows of no presently existing circumstances that would
constitute a valid basis therefor.

         15. NO OTHER AGREEMENT TO SELL THE ASSETS OR BUSINESS. Seller has no
legal obligation, absolute or contingent, to any other person or firm to sell
the Acquired Assets or SOR Wheel Business (other than the sale of inventory in
the ordinary course of business), or to effect any merger, consolidation or
other reorganization, directly or indirectly, of Seller or to enter into any
agreement with respect thereto.

         16. Disclosure. Seller has not withheld from Buyer any material facts
relating to the Acquired Assets or the SOR Wheel Business, financial condition
or prospects of the SOR Wheel Business. No representation or warranty of Seller
in the Agreement or in any letter, certificate, schedule, statement or other
document furnished or to be furnished pursuant to this Agreement or in
connection with the transaction contemplated by this Agreement contains or will
omit to state any material fact required to be stated herein or therein or
necessary to make the statements herein therein not misleading.

                                       B-4

<PAGE>

                                                                      EXHIBIT C

                     REPRESENTATIONS AND WARRANTIES OF BUYER

         Buyer represents and warrants to Seller each of the following:

         1. ORGANIZATION AND QUALIFICATION. Buyer is a corporation duly
organized, validly existing, and in good standing under the laws of the State of
Delaware, and has the requisite corporate power and authority to own and operate
its properties and to carry on its business as now conducted in every
jurisdiction where the failure to do so would have a material adverse effect on
its business, properties, or ability to conduct the business currently conducted
by it.

         2. AUTHORITY RELATIVE TO THIS AGREEMENT. Buyer has the requisite
corporate power and authority to enter into this Agreement and to carry out its
obligations hereunder. The execution and delivery of this Agreement by Buyer and
the consummation by Buyer of the transactions contemplated hereby have been duly
authorized by Buyer, and no other corporate proceedings on the part of Buyer are
necessary to authorize this Agreement and such transactions. This Agreement has
been duly executed and delivered by Buyer and constitutes a valid and binding
obligation of Buyer, enforceable in accordance with its terms, except as the
enforceability thereof may be limited by bankruptcy, insolvency, reorganization,
or other similar laws relating to the enforcement of creditors' rights generally
and by general principles of equity.

         3. NO CONFLICTS. Buyer is not subject to, or obligated under, any
provision of (a) its Certificate of Incorporation or Bylaws, (b) any material
agreement, arrangement, or understanding, (c) any material license, franchise,
or permit, or (d) any law, regulation, order, judgment, or decree, which would
be breached or violated, or in respect of which a right of termination or
acceleration would arise, or pursuant to which any encumbrance on any of its or
any of its subsidiaries' material assets would be created, by its execution,
delivery, and performance of this Agreement and the consummation by it of the
transactions contemplated hereby.

         4. NO CONSENTS. Except with respect to filing under the HSR Act, no
authorization, consent, or approval of, or filing with, any public body, court,
or authority is necessary on the part of Buyer for the consummation by Buyer of
the transactions contemplated by this Agreement.

         5. COMPLIANCE WITH LAWS. Buyer and its officers, directors, agents, and
employees have complied in all material respects with all Applicable Laws
related to Buyer's business, and no claims have been filed against Buyer
alleging a material violation of any Applicable Law, except as set forth in the
Disclosure Letter.

         6. LITIGATION. Except as set forth in the Disclosure Letter, there are
no suits, claims, actions, arbitrations, investigations, or proceedings entered
against, now pending, or threatened against Buyer before any court, arbitration,
administrative or regulatory body, or any governmental agency which may result
in any judgment, order, award, decree, liability, or other determination which
will or could reasonably be expected to

                                       C-1

<PAGE>

                                                                      EXHIBIT C

have any material adverse effect upon Buyer's ability to fulfill its obligations
under this Agreement or the License Agreement, the Acquired Assets, or the SOR
Wheel Business. Buyer is not subject to any continuing court or administrative
order, writ, injunction, or decree applicable to it or the SOR Wheel Business,
or to its property or employees, and Buyer is not in material default with
respect to any order, writ, injunction, or decree of any court or federal,
state, municipal, or other governmental department, commission, board, agency,
or instrumentality.

         7. BUYER'S REVIEW OF SELLER AND COMPANY INFORMATION. Buyer acknowledges
that it has reviewed Seller's SEC Reports, and has had an opportunity to ask
questions of and to receive answers from Seller regarding these reports and the
affairs and prospects of Seller in general, and desires no further information
pertaining to Seller.

         8. NO RESTRICTIONS ON BUSINESS ACTIVITIES. There is no agreement
(noncompete or otherwise), commitment, judgment, injunction, order, or decree to
which Buyer is a party or otherwise binding on Buyer or its property which has
or reasonably could be expected to have the effect of prohibiting or impairing
any business practice of Buyer, any acquisition of property (tangible or
intangible) by Buyer, or the conduct of the SOR Wheel Business.

         9. DISCLOSURE.` There is no fact which has not been disclosed to Seller
which materially adversely affects or could reasonably be anticipated to
materially adversely affect the Buyer's ability to fulfill its obligations under
this Agreement. No representation or warranty of Buyer in the Agreement or in
any letter, certificate, schedule, statement or other document furnished or to
be furnished pursuant to this Agreement or in connection with the transaction
contemplated by this Agreement contains or will omit to state any material fact
required to be stated herein or therein or necessary to make the statements
herein therein not misleading

                                       C-2

<PAGE>

                                                                      EXHIBIT D

                          PROCEDURE FOR INDEMNIFICATION

         1. The Indemnified Party will promptly give notice hereunder to the
Indemnifying Party after obtaining written notice of any claim as to which
recovery may be sought against the Indemnifying Party.

         2. If the indemnity claim arises from the claim of a third party, the
Indemnified Party will permit the Indemnifying Party to assume the defense of
any such claim and any litigation resulting from such claim. If the Indemnifying
Party assumes the defense of a third-party claim, the obligations of the
Indemnifying Party as to such claim will include taking all steps necessary in
the defense or settlement of such claim or litigation and holding the
Indemnified Party harmless from and against any and all damages caused by or
arising out of any settlement approved by the Indemnifying Party or any judgment
in connection with such claim or litigation. The Indemnifying Party shall not,
in the defense of such claim or any litigation resulting therefrom, consent to
entry of any judgment (other than a judgment of dismissal on the merits without
costs) except with the written consent of the Indemnified Party, or enter into
any settlement (except with the written consent of the Indemnified Party) which
does not include as an unconditional term thereof the giving by the claimant or
the plaintiff to the Indemnified Party a release from all liability in respect
of such claim or litigation. The Indemnified Party may, with counsel of its
choice and at its expense, participate in the defense of any such claim or
litigation.

         3. If the Indemnifying Party does not assume the defense of any such
claim by a third-party or resulting litigation after receipt of notice from the
Indemnified Party, the Indemnified Party may defend against such claim or
litigation in such manner as it deems appropriate, and unless the Indemnifying
Party deposits with the Indemnified Party a sum equivalent to the total amount
demanded in such claim or litigation plus the Indemnified Party's estimate of
the costs of defending the same, the Indemnified Party may settle such claim or
litigation on such terms as it may deem appropriate and the Indemnifying Party
will promptly reimburse the Indemnified Party for the amount of such settlement
and for all damages incurred by the Indemnified Party in connection with the
defense against or settlement of such claim or litigation. If the Indemnifying
Party fails to notify an Indemnified Party of its election to defend any such
claim or action by a third party within 15 days after the Indemnifying Party
received notice of such claim or action, then the Indemnifying Party will be
deemed to have waived its right to defend such claim or action.

         4. The Indemnifying Party will promptly reimburse the Indemnified Party
for the amount of any judgment rendered with respect to any claim by a
third-party in such litigation and for all damage incurred by the Indemnified
Party in connection with the defense against such claim or litigation, whether
or not resulting from or arising out of the act of a third-party.

         5. The right to indemnification hereunder will not be affected by any
failure of an Indemnified Party to give such notice, or delay by an Indemnified
Party in giving such notice, unless, and then only to the extent that, the
rights and remedies of the Indemnifying Party will have been prejudiced as a
result of the failure to give, or delay in giving, such notice.

                                       D-1

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